Local payday lender will delist from Nasdaq; stock price plummets

Category: Short-term Lending
Published: Saturday, 30 January 2016
Written by Super User

The delisting announcement comes two months after QC Holdings posted bad news in its third-quarter earnings report. The company posted a loss of $1.49 million in the third quarter, down from profit of $226,000 during the same period a year earlier. Revenue was down 12.4 percent in the past year to $34.48 million.

The decline is attributable to competitive pressures as customers explore alternative loan products and distribution channels, the company wrote.

QC Holdings faces increasing pressure as more states create laws reining in interest rates on short-term lending. The federal government also created the Consumer Financial Protection Bureau, which is creating new rules and adding compliance costs for the business from the federal level.

The company also frequently faces lawsuits. Corporate expenses were up 19.6 percent in the third quarter, mainly due to the company setting aside $1.5 million to pay a tentative legal settlement.

MORE INFORMATION: View a real-time stock quote for QCCO

James reports about banking, financial services and law.

Klassen: Feeders still vulnerable in financial market turbulence

Category: Short-term Lending
Published: Thursday, 28 January 2016
Written by Super User

Retail beef prices are down 10-15 per cent from last years high and the market is recouping some demand from the cash-strapped high-debt-level Canadian consumer. The Bank of Canada left its short-term lending rate unchanged because banks havent passed on previous rate cuts to consumers. Wholesale beef and cattle prices quickly adjust to changes in the currency but Canadian consumers are coping with higher costs on all imported goods. At the same time, US beef is struggling to find homes offshore, so the currency effect is actually a double edged sword longer term for Canadian beef demand. The recession in Canada is in the initial phase and 75 per cent of beef production is consumed domestically, so be wary of expecting a significant recovery in fed and feeder cattle prices.

Jerry Klassen is manager of the Canadian office for Swiss-based grain trader GAP SA Grains and Produits. He is also president and founder of Resilient Capital, which specializes in proprietary commodity futures trading and commodity market analysis. Jerry owns farmland in Manitoba and Saskatchewan but grew up on a mixed farm/feedlot operation in southern Alberta, which keeps him close to the grassroots level of grain and cattle production. Jerry is a graduate of the University of Alberta. He can be reached at 204-504-8339.

QC Holdings (QCCO) to Delist From Nasdaq

Category: Short-term Lending
Published: Wednesday, 27 January 2016
Written by Super User
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QC Holdings, Inc. (NASDAQ: QCCO) announced today that it has notified the NASDAQ Stock Market ("NASDAQ") of its intention to voluntarily delist its common stock from the NASDAQ Capital Market. The Company intends to cease trading on NASDAQ at the close of business on February 11, 2016. The Company's obligation to file current and periodic reports with the Securities and Exchange Commission ("SEC") will be terminated the same day upon the filing of the requisite notification with the SEC. The Company is eligible to deregister its common stock because it has fewer than 300 stockholders of record.

Following delisting and deregistering, the Company presently intends to provide annual information regarding its performance upon stockholder request. The Companys shares may be quoted in the Pink Sheets (www.pinksheets.com), an electronic quotation service for over-the-counter securities. However, there can be no assurance that any market maker or broker will continue to make a market in the Companys shares.

The Companys board of directors determined, after careful consideration, that voluntarily delisting and deregistering is in the overall best interests of the Company and its stockholders. Factors that the board of directors considered include the cost savings that will occur as a result of the elimination of the Company's obligation to file reports with the SEC, the avoidance of additional accounting, audit, legal and other costs and managements attention devoted to compliance with the requirements of the Sarbanes-Oxley Act of 2002, the historically low daily trading volume in the Company's shares, and the benefit of allowing management to focus on the long-term development of our core business.

About QC Holdings, Inc.Headquartered in Overland Park, Kansas, QC Holdings, Inc. is a leading provider of consumer loans in the United States and Canada. In the United States, QC offers various products, including single-pay, installment and title loans, check cashing, debit cards and money transfer services, through 394 branches in 22 states at December 31, 2015. In Canada, the company, through its subsidiary Direct Credit Holdings Inc., is engaged in short-term, consumer Internet lending in various provinces. During fiscal 2014, the company advanced nearly $750 million to customers and reported total revenues of $153 million.

Forward Looking Statement Disclaimer: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the company's current expectations and are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those forward-looking statements. These risks include (1) changes in laws or regulations or governmental interpretations of existing laws and regulations governing consumer protection or short-term lending practices, (2) uncertainties relating to the interpretation, application and promulgation of regulations under the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the impact of proposed rulemaking by the Consumer Financial Protection Bureau (CFPB), (3) ballot referendum initiatives by industry opponents to cap the rates and fees that can be charged to customers, (4) uncertainties related to the examination process by the CFPB and indirect rulemaking through the examination process, (5) litigation or regulatory action directed towards us or the short-term consumer loan industry, (6) volatility in our earnings, primarily as a result of fluctuations in loan loss experience and closures of branches, (7) risks associated with our dependence on cash management banking services and the Automated Clearing House for loan collections, (8) negative media reports and public perception of the short-term consumer loan industry and the impact on federal and state legislatures and federal and state regulators, (9) changes in our key management personnel, (10) risks associated with owning and managing non-US businesses, (11) uncertainties associated with delisting and deregistering the Company's common stock, and (12) the other risks detailed under Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014 filed with the Securities and Exchange Commission. QC will not update any forward-looking statements made in this press release to reflect future events or developments.

Investor Relations Contact:
Douglas E. Nickerson (913-234-5154)
Chief Financial Officer

Source: QC Holdings

Myers: It's A Great Time To Sell In Los Alamos

Category: Short-term Lending
Published: Wednesday, 27 January 2016
Written by Super User
Scott Robinson, Gateway Mortgage

Scott Robinson from Gateway Mortgage shares more on this topic.

It is very exciting to see the housing trends moving up in Los Alamos. In 2015, we saw plenty of enthusiasm and the prospects for a continued upward trend are positive, he said. Recently, mortgage rates overall have been flat. Most experts agree that the recent international struggleshave negated the positive growth seen in the US economy, resulting in flat rate movement.

In 2016, if the economy continues its slow but positive growth, and if international conflicts simmer down, we anticipate rates to move upward, he said. The recent increase in the short-term lending rates by the Feds is a signal that they believe we have stabilized and now our economy can stand some increased borrowing costs without dampening growth.

None of the experts who I have observed foresee any significant rate drops in the near future, assuming no major catastrophic events occur, Robinson said. Let's keep the momentum going forward by selling or purchasing a home soon. In the end, Kelly and I expect to see continued movement in the real estate market in Los Alamos, and welcome the opportunity to help Sellers list their homes and Buyers purchase their homes.