Frontera Announces January 2009 Revenues
23 Februar 2009 - 5:08PM
PR Newswire (US)
SAN DIEGO, Feb. 23 /PRNewswire-FirstCall/ -- Frontera Investment,
Inc. (OTC:FRNV) announced today that its January 2009 revenues
increased 41% to $708,000 compared to $501,000 in January 2008. The
Company operated five full service stores and two embedded stores
this January and operated three full service stores and two
embedded stores the previous January. Earnings before interest,
taxes, depreciation and amortization ("Ebitda") for the five full
service stores increased 306% to $70,500, or $14,100 per store this
January compared to $17,400, or $5,800 per store for the three full
service stores in January 2008. January 2009 store Ebitda increased
234% to $64,000 for all stores compared to $19,200 in January 2008.
Frontera launched its gold pawn lending in July 2007 and introduced
its direct gold buying product in December 2008. The Company earns
a pawn fee on the loans and holds the gold in inventory until
maturity, or four months, or until redeemed by the customer. Gold
held on defaulted loans is sold as scrap, historically at a profit.
When gold jewelry is purchased, there is a required 30 day hold
period before it can be sold. This shorter hold period allows the
Company to generate more income on the same dollars invested as the
fees are similar. All new stores will be located in areas where
gold lending/buying is an approved use. Michael Herman, Chairman,
stated, "Our business plan and store model were developed
recognizing the difficult economic climate we are facing today and
the unique needs of our customers. Because of our proven business
model, we are experiencing revenue growth and increased store
profitability, with our newly opened stores maturing faster than
expected. Our propriety business process and robust technology
platform has allowed us to increase revenues and per store
operating profits by offering great customer service and new
products while losses from cash shrink, loan defaults and check
losses are minimized. None of this would be possible without our
loyal and expanding customer base which benefits from our
competitively priced and diversified product offerings and our
focus on customer service." The Company opened its first full
service embedded store within ARCO AM/PM Travel Centers on October
24, 2008 in Mecca, California. Frontera is relocating its Lake
Elsinore, California embedded store on February 28, 2009 to a new
location nearby permitted for all Frontera products and services.
As previously reported, 5 additional stores are in the pipeline
which will open with the next six months. 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; ability to raise capital to support it
growth strategy; 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/
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