Business
Frontera Investment, Inc. Announces July Revenues
Frontera Investment, Inc. Announces July Revenues.
About this update from Frontera Investment Inc
[{"type":"text","content":"August 13, 2009 – Frontera Investment, Inc., (OTC-FRNV) has announced an increase of 37 percent, or $799,100, in revenue for its ten stores in operation for July 2009, up from $583,000 for its six stores in operation for July 2008. Revenues for the seven months ended July 31, 2009 increased 35% to $5,194,000 from $3,846,000. Earnings before interest, taxes, depreciation and amortization (EBITDA) for July 2009 increased 122 percent to $71,000, or $7,100 per store for the ten stores, up from $32,000, or $5,337 per store, for Frontera’s six stores the previous July. Allan Youngberg, CFO of Frontera Investment, Inc. said \"The four new stores accounted for 67% of the revenue increase year to date and the balance was from existing store growth.” Mr. Youngberg added, “The year to date increase at existing stores came primarily from a tenfold increase in revenues from the disposal of gold from defaulted gold pawn loans and gold buying and a 149% increase in fees derived from gold secured pawn transactions.\" 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 estimated time frames and budgets; the ability to compete effectively in a rapidly evolving and price competitive marketplace; ability to raise capital to support its growth...