Business
Frontera Announces June and Second Quarter 2009 Revenues
Frontera Announces June and Second Quarter 2009 Revenues.
About this update from Frontera Investment Inc
[{"type":"text","content":"July 21, 2009 – Frontera Investment, Inc., (OTC-FRNV) has announced an increase of 37.5 percent, or $767,300, in revenue for its ten stores in operation for June 2009, up from $558,200 for its six stores in operation for June 2008. Second quarter 2009 revenues ending June 30, 2009 increased 33% to $2,257,900 compared to $1,698,200 for the second quarter 2008. Earnings before interest, taxes, depreciation, and amortization (EBITDA) from store operations for the second quarter 2009 increased 178% to $237,700 up from $85,500 for the second quarter 2008. \"The performance of our five mature stores, which have either been acquired or have been open for more than a year, are ahead of estimate with the average store EBITDA annualizing at over $200,000 per store on an annualized run rate,\" Gil Partida, CEO of Frontera Investment, Inc., said. \"In addition to the terrific performance of these mature stores, the newer stores are doing well, but will negatively impact total average store EBITDA until they reach maturity.\" The newer stores, which opened during the previous eight months, should break even in nine months and are slated to reach maturity within two years, according to Partida. 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, which currently operates 10 stores in California, opened its tenth and latest full-service store, in Vista, California, on July 8. The company is currently in the process of raising capital to acquire and open two additional stores in Southern California during calendar year 2009. 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 e...