FRONTERA INVESTMENT, INC.
Frontera Announces Q3 2010 Results and Florida Expansion Plans
SAN DIEGO, Calif. – October 25, 2010 – Frontera Investment, Inc., (OTC-FRNV) today announced a third quarter increase in revenues of 13% to $1,145,285; store Ebitda increase of 16% to $245,226 and net Ebitda (after corporate expenses, but excluding non operating expense charges) increase to $42,058 from a loss of $47,039 over the prior year third quarter. For the nine month ended September 30, 2010, revenues increased 42% to $3,872,504; store Ebitda increased 53% to $1,021,991 and net Ebitda increased to $393,476 from a loss of $167,374 over the prior year period.
On a comparable store basis (stores open the same periods) the favorable trend over prior year is even more substantial. For the third quarter, revenues increased 21% to $1,101,625 and store Ebitda increased 43% to $267,099. For the nine months, revenues increased 39% to $3,190,865 and store Ebitda increased 76% to $1,075,611. For the third quarter, corporate expenses decreased 23% to $209,566 from $258,706 and for the nine months decreased 29% to $647,719 from $834,209.
The company posted a pretax loss of $110,656 for the three months ended September 30, 2010 compared to a pretax loss of $168,274 for the same period last year and a pretax loss of $37,199 for the nine months ended September 30, 2010 compared to a pretax loss of $511,532 for the same period last year.
On September 14, 2010 the Company entered into an agreement with a private equity investor for the purpose of owning and operating two new stores in Florida. Leases for the new stores have been executed and opening of both stores planned for early January 2011. The venture partner will contribute $600,000 to open the two stores and Frontera will share 50/50 in the profits and losses from the operations of the stores. The venture partner will also be paid an 8% per annum distribution on its investment.
Frontera is a leading financial service provider offering alternatives for millions of consumers in the United States that today do not use any form of banking service. Frontera’s primary focus is the Hispanic market which is currently estimated at more than 40 million customers. More than half of these consumers do not use any form of banking service at all. In addition, approximately 35 percent of all households in the United States (both Hispanic and non-Hispanic) either do not use a banking service or they use alternative financial services, positioning Frontera as a prime option for these consumers.
Frontera provides its financial services to these fast growing un-banked and under-banked markets through a revolutionary one-stop shopping concept. Frontera combines a full service, high volume, low cost method of providing branded check cashing, money transfer and lending products through a customized proprietary and highly differentiated technology platform. The company operates 10 stores in California.
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 strategy; changes in business strategy; and the successful integration of newly acquired stores.
Please forward any inquiries to:
IR@fronterainvestment.com or call 858-549-7061