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CHICAGO--(BUSINESS WIRE)--July 21, 1999--

Payday Check Advance, Inc.'s Chain of Stores

Increased 11 Fold in 1998

Sonoma Financial Corporation/VictorMaxx Technologies, Inc. (OTCBB: VMAX) today announced record revenues and income for the twelve months ended December 31, 1998 for its Subsidiary, Payday Check Advance Inc. During the year ended December 31, 1998, the Subsidiary's revenues rose 809% to approximately $1.6 million compared with revenues of $197,000 for year ended 1997. Net income increased 623% to $311,703, verses a profit of $50,000 for the same period. The number of stores increased 11,500% for the year.

The company's investor information can be viewed at http://www.virtualir.com/vmax

1998 was the Company's first full year of operation following the completed merger between VictorMaxx Technologies, Inc. and Sonoma Financial Corp. Once the merger was completed, the Company's management implemented a business strategy directed at the short-term consumer lending sector of the financial services industry, referred to as payday advances. A payday advance is a method of receiving a small amount of cash for a short time period against the customer's next paycheck. Qualified customers read, understand and sign an agreement that discloses transaction terms and conditions. They write a personal check for the amount of the advance plus a fee, and immediately receive cash in the value of the check less the fee. The payday advance is a responsible, dignified choice for our customers' short-term cash needs.

Payday Check Advance began the year with two Payday Advance stores and ended 1998 with twenty-three Payday Advance stores open and operating. The Company opened eight stores between September and December; as a result they had marginal contributions to 1998 revenues and earnings. The Subsidiary processed 41,000 payday advance transactions totaling $12.7 million.

Frank Anthony Contaldo, CEO of Sonoma Financial Corp. commented that, "We were pleased with new store growth, increased earnings and profitability for 1998. Sonoma developed an operational model that centralized management's control enabling any number of new stores to come online. The Company has executed an aggressive expansion plan utilizing this technology. These very positive operating results reflect our focus to increasing shareholders' value through profitable store growth and chain acquisition."

       Payday Check Advance, Inc. -- Year End Financial Highlights
                            (In thousands)

            1998 (unaudited)   1997 (unaudited)      Percent

Revenue        $  1,594            $  197              +809%
Net income     $    311            $   50              +623%
EBITA          $    197            $   32              +615%

These results represent the year-end operating results for Sonoma Financial's subsidiary Payday Check Advance, Inc. When evaluating an investment decision in Sonoma Financial/VictorMaxx Technologies Inc. (OTCBB:VMAX) refer to its previously released 1998 operation results.

Sonoma Financial Corporation is a financial services company that owns and operates a chain of stores devoted to providing low documentation, short-term consumer loans. The company intends to become the national leader in the "Payday Loan" market by strategically opening new stores, penetrating new markets and by chain acquisition. Sonoma Financial is currently the only publicly traded company with a sole focus on `payday advances'. Ace (NASDAQ:AACE) and First Cash Financial Services (NASDAQ:FCFS), have proven the viability of the concept in other markets, but are not specifically focused in this area. A complete investor package is available at http://www.virtualir.com/vmax.

Safe Harbor Disclaimer: This release may contain certain forward-looking statements regarding the Company's expected performance for future periods, and actual results for such periods may materially differ. Such forward-looking statements involve certain risks and uncertainties, including but not limited to risks of changing market conditions in the overall economy and the industry, consumer demand, additional financing requirements, the opening of new stores, the success of the Company's acquisition strategy and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission.

COPYRIGHT 1999 Business Wire
COPYRIGHT 2000 Gale Group


 
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