Xponential Inc (fka XPOI)

[Stock]

Check this message in a bottle lol

Revenue Growth Makes Debt Manageable
31-May-11 10:09 am

Xponential has alot of debt including notes that must be refinanced by 2014, a bank line of credit at Pawn Mart, Pref A stock and Pref B stock (which I am treating as debt). The company's strategy for managing their debt appears to be to make the debt manageable by growing their Pawn Mart business. Over the last few years they have invested to refurbish and modernize Pawn Mart locations. They acquired 2 new locations which are being converted to Pawn Marts a few months ago(see news release at pawn mart web site) and began a local TV add campaign (see pawn mart web site). Based on the revenue growth over the past few years this strategy seems to be succeeding.

Here are the revenue numbers from Xponential's webt site:

http://www.xponential.us/investors.php


Fiscal 2007 ending June 2007: 19.2 mil
Fiscal 2008: 21.4 mil
Fiscal 2009: 25.9 mil
Fiscal 2010: 30.0 mil

The Dec 2010 financials show that revenues were up 9.4% for the first 6 months of fiscal 2011 so I'm projecting fiscal 2011 revenues of about 32.8 mil. Operating earnings are also up.

Mr. Panick

P.S. To the folks on investors hub: I only post in yahoo, but please feel free to continue reposting my analysis in your forum. I am an independent trader / investor. Obviously, I don't work for the company given some of the criticisms I've made of CPFH management. XPOI is effectively the parent company of CPFH even though it's investment is shown on an unconsolidated basis on XPOI's balance sheet.