Business
Frontera Announces January 2009 Revenues
Frontera Announces January 2009 Revenues.
About this update from Frontera Investment Inc
[{"type":"text","content":"Frontera Announces January 2009 Revenues 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 M...