Business
Frontera Announces 2010 Results and Florida Store Opening
Frontera Announces 2010 Results and Florida Store Opening.
About this update from Frontera Investment Inc
[{"type":"text","content":"SAN DIEGO, Calif. – February 17, 2011 – Frontera Investment, Inc., (OTC-FRNV) today announced that 2010 revenues increased 29% to $5,067,941; store Ebitda increased 29% to $1,301,610 and net Ebitda (net of corporate expenses) increased to $449,644 from a loss of $72,135 for 2009. On a comparable store basis (stores open all year 2009 and 2010 – 5 stores) the favorable trend over prior year is even more substantial. Revenues increased 29% in 2010 to $4,176,487 and store Ebitda increased 46% to $1,344,772. The increase in comparable store revenues and store Ebitda is primarily the result of growth in revenues and gross profit margin from the sale of gold from the Company’s gold jewelry buying and pawn lending services. Also contributing to the improvement was a reduction in bad check losses. Bad check losses in 2010 totaled $43,762 on total check volume of $59,796,000, or 7.3 basis points, an improvement of 21% over 2009 check loss rate of 9.3 basis points on check volume of 67,700,000. Check losses in the industry average 15 basis points. The improvement in Company Ebitda was attributable to improved store Ebitda as reported above plus a reduction in corporate expenses. In 2010, corporate expenses decreased 21.1% to $851,966 from $1,079,665 for 2009. On January 17, 2011, a full service Frontera store was opened in Davie Florida and is operated through a Florida limited liability company (LLC) which is owned 50% by the Company and 50% by a private investor group. A second store is planned for opening in the second quarter of this year. Both stores are leased. Frontera Investment Inc.’s primary target market, the Hispanic market, is currently estimated at 40 million customers. Over half of those consumers do not use any form of banking service. In addition, of all the households in the United States, approximately 35 percent either do not use a banking service or they use alternative financial services, positioning Frontera Investment, Inc. as a prime option for consumers in those markets. Frontera currently operates ten stores in California and one store in Florida. The company continues to explore opportunities for additional capital to further expand its store base. ...