CHICAGO--(BUSINESS WIRE)--Aug. 3, 1999--
Payday Check Advance Inc. Announces 203% Revenue Increase for 1st
Q 1999; New Store Growth was Up 180%
Sonoma Financial Corporation/VictorMaxx Technologies, Inc. (OTCBB:VMAX) today announced unaudited results for first quarter 1999. The Company's subsidiary Payday Check Advance Inc. reported 1ST Quarter revenues of approximately $554,929 for March 31, 1999 an increase of 203% and a loss of $38,691 thousand compared to $272,364 and a profit of $79,594 for the same period ending March 31, 1998. Payday Check Advance Inc. experienced new store growth of 180% for the quarter, the Company opened 9 new stores for the 1ST Quarter of 1999 compared to 5 new stores in 1998.
Sonoma Financial Corporation on a consolidated basis had revenues of $554,929 and reported a loss of $79,831 for 1ST Quarter 1999. For the same period 1998 the Company and had revenues of $272,364 and a profit of $38,882. The Company realized a loss due to the opening of 16 new stores over a period of 148 days. Sonoma Financial Corp. divested itself of all unrelated "payday advance" business in 1998 and has a sole focus on the payday advance industry.
"The Company has doubled the number of stores in less than six months, resulting in a modest loss. Many of these 16 stores are now operated profitably," commented Frank Anthony Contaldo, CEO of Sonoma Financial Corp.
The Company's management has a focused business strategy directed at the short-term consumer lending sector of the financial services industry, referred to as payday advances. A payday advance is a method of receiving a small amount of cash for a short time period against the customer's next paycheck. Qualified customers read, understand and sign an agreement that discloses transaction terms and conditions. They write a personal check for the amount of the advance plus a fee, and immediately receive cash in the value of the check less the fee. The payday advance is a responsible, dignified choice for our customers' short term cash needs.
(Selected Financial Data--Interim unaudited)
Sonoma Financial Corporation/VictorMaxx Technologies, Inc. and
Payday Check Advance Inc./Payday Express
(Consolidated data)
Payday Check Advance Inc. Sonoma Financial Corporation
Three Months Ended Three Months Ended
March 31, March 31,(Combined)
1999 1998 1999 1998
--------------------------------------------------------
Revenues $554,930 $272,364 $554,930 $272,364
Net Income <$ 38,691> $ 79,594 <$ 79,831> $ 38,882
Sonoma Financial Corporation is a financial services company that owns and operates a chain of stores devoted to providing low documentation, short term consumer loans. The company intends to become the national leader in the "Payday Loan" market by strategically opening new stores, penetrating new markets and by chain acquisition. Sonoma Financial is currently the only publicly traded company with a sole focus on 'payday advances'. Ace (NASDAQ:AACE) and First Cash Financial Services (NASDAQ:FCFS), have proven the viability of the concept in other markets, but are not specifically focused in this area. A complete investor package is available at http://www.virtualir.com/vmax .
