CHICAGO--(BUSINESS WIRE)--Aug. 3, 1999-- Sonoma Financial Corporation/VictorMaxx Technologies, Inc. (OTCBB:VMAX - news) today announced unaudited results for first quarter 1999. The Company's subsidiary Payday Check Advance Inc. reported 1ST Quarter revenues of approximately $554,929 for March 31, 1999 an increase of 203% and a loss of $38,691 thousand compared to $272,364 and a profit of $79,594 for the same period ending March 31, 1998. Payday Check Advance Inc. experienced new store growth of 180% for the quarter, the Company opened 9 new stores for the 1ST Quarter of 1999 compared to 5 new stores in 1998.
Sonoma Financial Corporation on a consolidated basis had revenues of $554,929 and reported a loss of $79,831 for 1ST Quarter 1999. For the same period 1998 the Company and had revenues of $272,364 and a profit of $38,882. The Company realized a loss due to the opening of 16 new stores over a period of 148 days. Sonoma Financial Corp. divested itself of all unrelated ''payday advance'' business in 1998 and has a sole focus on the payday advance industry.
''The Company has doubled the number of stores in less than six months, resulting in a modest loss. Many of these 16 stores are now operated profitably,'' commented Frank Anthony Contaldo, CEO of Sonoma Financial Corp.
The Company's management has a focused 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.
That was disappointing. Any bright side to this? How long are we going to expand into unprofitability. Sorry, just a little puzzled, stock seems to be holding up well though. |
