Frontera Announces Third Quarter 2008 Financial Results and New Stores
12 November 2008 - 9:00PM
PR Newswire (US)
SAN DIEGO, Nov. 12 /PRNewswire-FirstCall/ -- Frontera Investment,
Inc. (Pink Sheets: FRNV) announced today that it has posted its
third quarter 2008 financial statements to Pink Sheets Issuer
Services that can be located at http://www.pinksheets.com/. The
financial statements can also be found on Frontera's website at
http://www.fronterainvestment.com/. Frontera announced third
quarter revenues ended September 30, 2008 grew 10% to $1.84 million
from $1.67 million in Q2'08. The Company entered 2008 with five
stores generating EBITDA totaling $21,000 per month, or a run rate
of $252,000 annually. By September 2008, these five store plus two
stores acquired in 2008 generated EBITDA totaling $68,000 per
month; or a run rate of $816,000 annually. The Company's gold pawn
lending product that launched in Q3'07 passed the $500,000 loan
balance on November 2, 2008 and is now yielding a 60% ($300,000)
annualized return. Even in this difficult economic climate,
revenues have increased at existing stores and loss rates on checks
and loans are nearly one-half the industry average. Gil Partida,
CEO, said that Frontera's new store in Ventura County California
that was acquired on September 1, 2008 is expected to cash $40
million in checks and $10 million in money transfers annually,
making this Frontera's highest volume store. The Company also
entered into three new store leases, including two stores embedded
within ARCO AM/PM Travel Centers, one of which opened October 24,
2008 in Mecca California and a second to open in December 2008 in
Perris California. Frontera's Lake Elsinore California location,
embedded within a McDonalds', is to be relocated nearby within the
third lease in early 2009. Frontera closed its remaining embedded
McDonalds' store that was operating in Oceanside California in
October 2008. In addition, Frontera entered into escrow for a third
store in Ventura County California that the organization expects to
close no later than July 1, 2009 that may become its largest volume
store projected to cash $50 million in checks and $12 million money
transfers annually. The Hispanic market is currently estimated at
40 million consumers, over half do not use any form of banking
service. About 35 percent of the total US households are un-banked
or use alternative financial services companies. Frontera currently
operates seven stores in California. Forward-Looking Statements:
Such forward-looking statements are subject to a number of risks,
assumptions and uncertainties that could cause the Company's actual
results to differ materially from those projected in such
forward-looking statements. These risks, assumptions and
uncertainties include: the ability to complete expansion within
currently estimated time frames and budgets; the ability to compete
effectively in a rapidly evolving and price competitive
marketplace; changes in business strategy; and the successful
integration of newly acquired businesses. DATASOURCE: Frontera
Investment, Inc. CONTACT: Allan C. Youngberg, CFO of Frontera
Investment, Inc., +1-858-549-7061, Web site:
http://www.fronterainvestment.com/ http://www.pinksheets.com/
Copyright