EX-99.1 2 exhibit1.htm EX-99.1 EX-99.1

EX 99.1

NEWS RELEASE

Contact: Dollar Financial Corp

Financial Dynamics

Mark McCall/Julie Prozeller (212) 850-5600

FOR IMMEDIATE RELEASE

DOLLAR FINANCIAL CORP ANNOUNCES RECORD FISCAL 2008 THIRD QUARTER RESULTS
TOTAL REVENUE INCREASED 26.4 PERCENT OR $28.2 MILLION, DRIVEN BY GROWTH IN BOTH THE U.S. AND
INTERNATIONAL BUSINESSES; COMPANY EXPANDS INTO THE EURO-ZONE IN THE REPUBLIC OF IRELAND

BERWYN, Pennsylvania, May 5, 2008 – Dollar Financial Corp (NASDAQ:DLLR — News), a leading international financial services company serving under-banked consumers, today announced record results for the fiscal third quarter ended March 31, 2008.

Fiscal 2008 third quarter highlights:

    Consolidated revenue was $135.3 million, an increase of 26.4% or $28.2 million compared to the prior year period.

    The consolidated loan loss provision, as a percentage of gross consumer lending revenue, improved to 19.1% compared to 21.8% for the fiscal 2008 second quarter and 20.8% for the fiscal 2007 third quarter.

    Store and regional margin increased 22.1% or $9.3 million compared to the prior year period.

    Consolidated Adjusted EBITDA was $38.3 million, an increase of 23.2% or $7.2 million compared to the prior year.

    Pre-tax income was $22.6 million, an increase of 19.7% or $3.7 million compared to the prior year period.

    Net income was $13.8 million compared to $11.7 million for the prior year’s quarter, representing an increase of 18.3%, and fully-diluted earnings per share was $0.56 compared to $0.48 for the prior year.

    The Company acquired 15 stores and opened 14 de novo stores across the U.S., Canadian and U.K. markets.

    The Company continued its focus on pawn lending in its U.K. stores, which primarily consists of loans on collateralized gold jewelry, building the product line to what the Company believes to be the third largest pawn operation, in terms of pawn broking revenue, in the U.K.

Commenting on the results for the quarter, Jeff Weiss, the Company’s Chairman and Chief Executive Officer, stated, “We are pleased with the strong results for the third quarter driven by growth in both our domestic and international markets. Consolidated revenue for the third quarter grew by 26.4% or $28.2 million, while net income increased by 18.3%. Moreover, our U.S. business unit realized year-over-year revenue growth of 29.0%, principally driven by the acquisitions in Southeast Florida and the Midwestern states. We are very pleased with the performance of these two acquisitions, which have thus far exceeded our expectations.”

Mr. Weiss continued, “During the quarter, we continued to execute on our multi-country, multi-product, and multi-channel growth strategy by increasing our global store footprint by 29 stores, consisting of 14 de novo stores along with the acquisition of 15 additional stores collectively in the U.S., Canadian, and U.K. markets. Additionally, on April 3, 2008, we opened our first store in the Euro-Zone in the Republic of Ireland. We are excited about the growth potential of this new market, which has both excellent customer demographics with no significant competition. We expect to expand further into the Irish market through both additional de novo store openings and opportunistic acquisitions of smaller store chains in the coming months.”

Mr. Weiss continued, “The past few months have been very volatile with regard to the financial markets and, as many commentators have noted, the effect of this turbulence is now being felt in the economy. While we do not expect to be completely immune from the economic turbulence, our customers primarily work service sector jobs, which according to recent employment data have fared better than other areas of the economy. Internationally, the Canadian and U.K. economies, while still growing, seem to be slowing down somewhat. In the U.S., based principally upon what we read and hear, a recession has either started or is unavoidable. Much of the financial difficulty in the U.S. appears to revolve around the housing market. While we would expect the effect of the decline in the housing market to ripple through the overall economy at varying degrees, fewer than 25% of our customers own their own homes and as such should be impacted to a lesser degree. We continue to remind our investors that our consumer loan products are very short-term in nature and if we see evidence of economic weakness in any of our markets, we can quickly curtail our lending practices and reduce our overall risk exposure. During this quarter, we did just that, and as a result, our consolidated loan loss provision as a percentage of gross consumer lending revenue for the quarter was 19.1%, which declined sequentially from 21.8% in the second quarter of fiscal 2008 and year-over-year from 20.8% for the fiscal 2007 third quarter.”

Mr. Weiss continued, “We believe that we are in a period of reduced visibility, both in the broader economy and the markets we serve. As a result, for the foreseeable future, we will maintain a conservative stance in terms of both credit risk and cost management. However, we have ample liquidity with no near-term debt repayment obligations, which should allow us to continue to invest in the future growth of our Company through the development of new products, additional de novo store openings and the continued acquisition of well managed store chains.”

For the fiscal 2008 third quarter ended March 31, 2008, consolidated check cashing revenue was $51.5 million representing an increase of 20.7%, or $8.8 million, year-over-year. The U.S. business segment, which includes the contributions from the recent acquisitions in Southeast Florida and the Midwestern states, realized growth of 33.1%, while the Canadian business grew by 18.1% over the previous year’s period. Additionally, check cashing fees in the U.K. increased by 9.9% over the prior year. On a consolidated basis, the face amount of the average check cashed increased 11.5% to $541 for the quarter compared to $485 for the prior year period, and the average fee per check cashed increased by 6.1% to $19.96.

Consolidated consumer lending revenue was $73.3 million for the third quarter, representing an increase of 21.8% or $13.1 million compared to the prior year period. Consumer lending revenue in the U.K. increased by 40.5%, while the U.S. consumer lending business increased by 18.1%. Along with strong growth in the single-payment loan product for the quarter, the U.K. consumer lending business benefited from an increase in pawn lending activities, which primarily consist of loans on collateralized gold jewelry. The recent increase in the price of gold has enabled the U.K. subsidiary to increase the amount loaned on pawned gold stock and has also increased the resale and smelting value of the collateral jewelry. The Company’s pawn business represents the third largest pawn operation in the United Kingdom.

With nearly all of the Canadian provinces engaged in either drafting their respective payday loan legislation or formulating product regulations and rate structure, the Company previously announced its intention to significantly diminish the magnitude and tone of its marketing and advertising campaigns until there is more certainty as to the timing of new regulation to be enacted in each province. The Company believes that the reduction of its marketing campaigns, combined with increased media coverage highlighting new potential regulations, has lead to an increased level of confusion among customers with respect to the cost and availability of small consumer loans in Canada. Additionally, a significant focus of our Canadian management team has increasingly been directed and applied in support of the industry-wide effort to establish sensible provincial regulation, in order to secure a solid foundation for the future of the industry. However, in spite of all of these conflicting influences and priorities, consumer lending revenue in Canada still grew by 16.8% over the previous year’s quarter, and total Canadian revenues grew by 19.7% over the prior year’s quarter.

Total Company funded loan originations were $481.4 million for the quarter, representing an increase of 39.5%, or $136.4 million, compared to the prior year period. Company funded loan originations in Canada increased by 10.4% or $21.2 million and in the U.K., loan originations increased by 45.9% or $32.3 million. U.S. loan originations for the quarter increased by 118.7% or $82.9 million compared to the prior year’s quarter, driven primarily by the continuing transition of a portion of the U.S. loan portfolio from bank-funded to Company funded loans, as well as the recent store acquisitions in Southeast Florida and the Midwestern states.

Money transfer fees for the quarter increased significantly by 35.0% year-over-year, driven by growth in all of the Company’s geographic markets. Other revenue increased by 51.5% for the quarter, due to strong growth in the Canadian income tax product and other ancillary products across the U.S., Canada, and United Kingdom.

The Company’s store and regional margin of $51.2 million for the quarter represented an increase of 22.1% or $9.3 million over the prior year’s quarter. Corporate expenses, as a percentage of total revenue, increased to 13.4% as compared to the previous year’s quarter of 12.9%, reflecting a continuing investment in increased regulatory and lobbying costs, and additional investment in management and infrastructure to support the Company’s global de novo store growth, and the management and integration of recent acquisitions.

Income before income taxes increased $3.7 million, or 19.7% to $22.6 million, while net income was $13.8 million for the quarter compared to $11.7 million for the previous year. Fully-diluted earnings per share were $0.56 for the quarter compared to $0.48 per share for the prior year’s quarter.

Guidance
The Company is reaffirming its previously issued guidance for fiscal year 2008 of revenue between $510.0 million and $530.0 million, Adjusted EBITDA of between $145.0 million and $152.0 million, income before income taxes of between $91.0 million and $96.0 million, and earnings per share of between $2.15 and $2.30.

The reconciliation between Adjusted EBITDA and income before income taxes is consistent with the historical reconciliation which is presented at the end of this news release.

Investors Conference Call
Dollar Financial Corp will be holding an investor’s conference call on Monday, May 5, 2008 at 5:00 pm ET to discuss the Company’s results for the 2008 fiscal third quarter. Investors can participate in the conference by dialing 888-200-2794 (U.S. and Canada) or 973-935-8766 (International); use the confirmation code “Dollar”. Hosting the call will be Jeff Weiss, Chairman and CEO, Don Gayhardt, President, and Randy Underwood, Executive Vice President and CFO. For your convenience, the conference call can be replayed in its entirety beginning from two hours after the end of the call through May 12, 2008. If you wish to listen to the replay of this conference call, please dial 706-645-9291 and enter passcode “43991517”.

The conference call will also be broadcast live through a link on the Investor Relations page on the Dollar Financial web site at http://www.dfg.com. Please go to the web site at least 15 minutes prior to the call to register, download and install any necessary audio software.

About Dollar Financial Corp
Dollar Financial Corp is a leading international financial services company serving under-banked consumers. Its customers are typically service sector individuals who require basic financial services but, for reasons of convenience and accessibility, purchase some or all of their financial services from the Company rather than from banks and other financial institutions. To meet the needs of these customers, the Company provides a range of consumer financial products and services primarily consisting of check cashing, short-term consumer loans, Western Union money order and money transfer products, reloadable VISA® and MasterCard® branded debit cards, electronic tax filing, bill payment services, and legal document processing services.

At March 31, 2008, the Company’s global store network consisted of 1,454 stores, including 1,111 company-operated financial services stores and 343 franchised and agent locations in 32 states, Canada and the United Kingdom. The financial services store network is the largest network of its kind in each of Canada and the United Kingdom and the second-largest network of its kind in the United States. The Company’s customers, many of whom receive income on an irregular basis or from multiple employers, are drawn to the convenient neighborhood locations, extended operating hours and high-quality customer service. The Company’s financial products and services, principally check cashing and short-term consumer loan programs, provide immediate access to cash for living expenses or other needs. For more information, please visit the Company’s website at www.dfg.com.

Forward Looking Statement
This news release contains forward looking statements, including statements regarding the following: the Company’s future results, growth, guidance and operating strategy; the global economy; the developing regulatory environment in Canada; the impact of future development strategy, new stores and acquisitions; and of the performance of new products and services. These forward looking statements involve risks and uncertainties, including uncertainties related to the effects of changes in the value of the U.S. dollar compared to foreign currencies, risks related to the regulatory environment, current and potential future litigation, the integration and performance of acquired stores, the performance of new stores, the implementation and results of restructuring initiatives, the impact of debt financing transactions, the results of certain ongoing income tax appeals, and the effects of new products and services on the Company’s business, results of operations, financial condition, prospects and guidance. There can be no assurance that the Company will attain its expected results, successfully integrate any of its acquisitions, attain its published guidance metrics, or that ongoing and potential future litigation or that the various FDIC, Federal, state, Canadian or foreign legislative or regulatory activities affecting the Company or the banks with which the Company does business will not negatively impact the Company’s operations. A more complete description of these and other risks, uncertainties and assumptions is included in the Company’s filings with the Securities and Exchange Commission, including those described under the heading “Risk Factors” in Form S-3 for the Company’s Senior Convertible Note offering filed with the SEC on September 20, 2007 and its fiscal 2007 annual report on Form-10K. You should not place any undue reliance on any forward-looking statements. We disclaim any obligation to update any such factors or to publicly announce results of any revisions to any of the forward-looking statements contained herein to reflect future events or developments.

1

DOLLAR FINANCIAL CORP
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)

                 
    June 30,   March 31,
    2007   2008
 
               
Assets:
               
Cash and cash equivalents
  $ 294,518     $ 207,268  
Restricted cash
    1,014        
Loans receivable, net:
               
Loans receivable
    90,552       115,019  
Less: Allowance for loan losses
    (8,623 )     (13,097 )
 
               
Loans receivable, net
    81,929       101,922  
Other consumer lending receivables , net
    11,367       11,368  
Prepaid expenses and other receivables
    22,483       29,181  
Deferred tax assets, net
    4,545       14,652  
Property and equipment, net
    55,031       65,255  
Goodwill and other intangibles, net
    341,681       469,459  
Debt issuance costs and other assets, net
    21,051       21,194  
 
               
Total Assets
  $ 833,619     $ 920,299  
 
               
 
               
Liabilities:
               
Accounts Payable
  $ 39,808     $ 49,856  
Income taxes payable
    11,293       11,884  
Accrued expenses and other liabilities
    46,912       81,279  
Deferred tax liabilities
    12,713       19,703  
Revolving credit facilities
          3,971  
Long-term debt
    576,910       578,993  
 
               
Total Liabilities
    687,636       745,686  
 
               
 
               
Shareholders’ Equity:
               
Common Stock
    24       24  
Additional paid-in-capital
    251,460       254,453  
Accumulated deficit
    (147,123 )     (108,276 )
Accumulated other comprehensive income
    41,622       28,412  
 
               
Total shareholders’ equity
    145,983       174,613  
 
               
Total Liabilities and Shareholders’ Equity
  $ 833,619     $ 920,299  
 
               

2

DOLLAR FINANCIAL CORP
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per share amounts)

                                 
    Three Months Ended   Nine Months Ended
    March 31,   March 31,
    2007   2008   2007   2008
 
                               
 
                               
Check cashing
  $ 42,683     $ 51,503     $ 122,590     $ 146,025  
Consumer lending:
                               
Fees from consumer lending
    60,195       73,316       165,819       215,419  
Provision for loan losses and adjustment
                               
to servicing revenue
    (12,542 )     (14,023 )     (32,646 )     (44,899 )
 
                               
Consumer lending, net
    47,653       59,293       133,173       170,520  
Money transfer fees
    5,128       6,921       15,232       19,960  
Other
    11,598       17,573       29,878       40,486  
 
                               
Total revenues
    107,062       135,290       300,873       376,991  
 
                               
 
                               
 
                               
Salaries and benefits
    33,661       42,778       94,756       116,661  
Occupancy
    8,225       11,359       23,808       30,790  
Depreciation
    2,571       3,597       6,782       9,620  
Returned checks, net and cash shortages
    3,899       4,973       11,296       14,226  
Telephone and telecommunication
    1,717       1,917       4,734       5,367  
Advertising
    2,088       2,602       7,546       7,426  
Bank charges and armored carrier services
    2,833       3,611       7,670       9,954  
Other
    10,153       13,287       30,806       35,739  
 
                               
Total store and regional expenses
    65,147       84,124       187,398       229,783  
 
                               
Store and regional Margin
    41,915       51,166       113,475       147,208  
 
                               
 
                               
Corporate and other expenses:
                               
Corporate expenses
    13,840       18,116       40,077       53,578  
Other depreciation and amortization
    855       854       2,531       2,663  
Interest expense, net
    8,082       9,771       23,071       26,837  
Debt financing costs
                38,403       97  
Goodwill impairment and other charges
                24,464        
Proceeds from litigation settlement
                (3,256 )      
Other expenses
    228       (206 )     407       (1,008 )
 
                               
Income before income taxes
    18,910       22,631       (12,222 )     65,041  
Income tax provision
    7,218       8,802       30,262       26,194  
 
                               
Net income (loss)
  $ 11,692     $ 13,829       ($42,484 )   $ 38,847  
 
                               
 
                               
Net Income (loss) per share
                               
Basic
  $ 0.49     $ 0.57       ($1.81 )   $ 1.61  
Diluted
  $ 0.48     $ 0.56       ($1.81 )   $ 1.57  
 
                               
Weighted average shares outstanding
                               
Basic
    23,696,488       24,120,797       23,486,816       24,087,467  
Diluted
    24,530,853       24,710,850       23,486,816       24,763,251  

3

Pro forma Net Income Reconciliation

Pro forma Net Income is not an item prepared in accordance with GAAP. Pro forma Net Income is net income adjusted to exclude one-time charges as described below. Dollar presents Pro forma Net Income as an indication of the Company’s financial performance excluding one-time charges so as to show comparative results of its operations. Not all companies calculate Pro forma Net Income in the same fashion, and therefore these amounts as presented may not be comparable to other similarly titled measures of other companies. The table below reconciles income before income taxes as reported on Dollar’s Unaudited Consolidated Statements of Operations to Pro forma Net Income (dollars in thousands):

DOLLAR FINANCIAL CORP
PRO FORMA NET INCOME
(EXCLUDING ONE-TIME CHARGES)
(In thousands except share and per share amounts)

                                 
    Three Months Ended   Nine Months Ended
    March 31,   March 31,
    2007   2008   2007   2008
 
                               
Income before income taxes — as reported
  $ 18,910     $ 22,631     $ (12,222 )   $ 65,041  
 
                               
One-time Charges:
                               
Loss on store closings
    176       176       641       369  
Debt refinancing costs
                38,403       97  
Goodwill impairment and other charges
                24,464        
Proceeds from litigation settlement
                (3,256 )      
 
                               
Pro forma income before income taxes
    19,086       22,807       48,030       65,507  
Pro forma income taxes (38% effective tax rate)
    7,253       8,667       18,251       24,893  
 
                               
 
                               
Pro forma net income
  $ 11,833     $ 14,140     $ 29,779     $ 40,614  
 
                               
 
                               
Weighted average fully-diluted shares outstanding
    24,530,853       24,710,850       24,229,208       24,763,251  
 
                               
 
                               
GAAP fully-diluted earnings (loss) per share
  $ 0.48     $ 0.56     $ (1.81 )   $ 1.57  
 
                               
 
                               
Pro forma fully-diluted earnings per share
  $ 0.48     $ 0.57     $ 1.23     $ 1.64  
 
                               

4

Adjusted EBITDA Reconciliation

Adjusted EBITDA is not an item prepared in accordance with GAAP. Adjusted EBITDA is earnings before interest expense, income tax provision, depreciation, amortization, charges related to non-qualified stock options and restricted shares, and other items described below. Dollar presents Adjusted EBITDA as an indication of operating performance and its ability to service its debt and capital expenditure requirements. Adjusted EBITDA does not indicate whether Dollar’s cash flow will be sufficient to fund all of its cash needs. Adjusted EBITDA should not be considered in isolation or as a substitute for net income, cash flows from operating activities, or other measures of operating performance or liquidity determined in accordance with GAAP. Dollar believes that Adjusted EBITDA amounts should be considered by prospective investors because Dollar uses them as one means of analyzing its ability to service its debt and capital expenditure requirements, and Dollar understands that they are used by some investors as one measure of a Company’s historical ability to service its debt and capital expenditure requirements. Not all companies calculate Adjusted EBITDA in the same fashion, and therefore these amounts as presented may not be comparable to other similarly titled measures of other companies. The table below reconciles income before income taxes as reported on Dollar’s Unaudited Consolidated Statements of Operations to Adjusted EBITDA (dollars in thousands):

                                 
    Three Months Ended   Nine Months Ended
    March 31,   March 31,
    2007   2008   2007   2008
 
                               
Income before income taxes
  $ 18,910     $ 22,631     $ (12,222 )   $ 65,041  
 
                               
Add:
                               
Depreciation and amortization
    3,426       4,451       9,313       12,283  
Interest expense
    8,082       9,771       23,071       26,837  
Foreign currency (gain) loss
    (230 )     195       487       435  
Stock compensation expense
    538       1,066       1,606       2,778  
Loss on store closings & other
    361       179       865       485  
Debt financing costs
                38,403       97  
Goodwill impairment and other charges
                24,464        
Proceeds from litigation settlement
                (3,256 )      
 
                               
Adjusted EBITDA
  $ 31,087     $ 38,293     $ 82,731     $ 107,956  
 
                               
 
                               

5

Dollar Financial Corp
Unaudited Store Data

                                 
    Three Months Ended   Nine Months Ended
    March 31,   March 31,
    2007   2008   2007   2008
Beginning Company-Operated Stores
                               
U.S.
    356       470     351   350
Canada
    340       397     242   360
U.K.
    189       221     172   192
 
                               
Total Beginning Company-Operated Stores
    885       1,088       765       902  
 
                               
 
                               
De novo Store Builds
                               
U.S.
    3       0       4       2  
Canada
    8       8       24       38  
U.K.
    0       6       12       14  
 
                               
Total
    11       14       40       54  
 
                               
 
                               
Acquired Stores
                               
U.S.
    1       2       24       126  
Canada
    0       13       82       21  
U.K.
    1       0       6       22  
 
                               
Total
    2       15       112       169  
 
                               
 
                               
Closed Stores
                               
U.S.
    8       6       27       12  
Canada
    0       0       0       1  
U.K.
    0       0       0       1  
 
                               
Total
    8       6       27       14  
 
                               
 
                               
Ending Company-Operated Stores
                               
U.S.
    352       466       352       466  
Canada
    348       418       348       418  
U.K.
    190       227       190       227  
 
                               
Total Ending Company-Operated Stores
    890       1,111       890       1,111  
 
                               
 
                               
Ending Franchise Stores
                               
U.S.
    117       97       117       97  
Canada
    51       60       51       60  
U.K.
    217       186       217       186  
 
                               
Total Ending Franchise Stores
    385       343       385       343  
 
                               
 
                               
Total Ending Store Count
    1,275       1,454       1,275       1,454  
 
                               

6

Dollar Financial Corp.
Unaudited Selected Statistical Data

                                 
    Three Months Ended   Nine Months Ended
    March 31,   March 31,
    2007   2008   2007   2008
 
                               
Check Cashing Data (Consolidated)
                               
Face amount of checks cashed (in millions)
  $ 1,099     $ 1,395     $ 3,203     $ 3,860  
Number of checks cashed (in thousands)
    2,267       2,580       6,708       7,215  
Face amount of average check
  $ 485     $ 541     $ 477     $ 535  
Average fee per check cashed
  $ 18.82     $ 19.96     $ 18.28     $ 20.24  
Net write-offs of returned checks (in thousands)
  $ 3,115     $ 3,780     $ 9,448     $ 11,608  
Net write offs as a percentage of check cashing revenue
    7.3 %     7.3 %     7.7 %     7.9 %
 
                               
Consumer Loan Data — Originations (in thousands)
                               
U.S. company-funded consumer loan originations
  $ 69,835     $ 152,725     $ 203,635     $ 377,974  
Canadian company-funded consumer loan originations
    204,887       226,111       547,194       723,003  
U.K. company-funded consumer loan originations
    70,295       102,588       190,641       279,752  
 
                               
Total company-funded consumer loan originations
  $ 345,017     $ 418,424     $ 941,470     $ 1,380,729  
 
                               
 
                               
Consumer Loan Data — Net Revenues (in thousands)
                               
U.S. servicing revenues
  $ 7,768     $ 574     $ 24,857     $ 2,003  
U.S. company-funded consumer loan revenues
    10,903       21,471       32,205       55,754  
Canadian company-funded consumer loan revenues
    29,827       34,839       77,107       111,265  
U.K. company-funded consumer loan revenues
    11,697       16,432       31,650       46,397  
Provision for loan losses and adjustments to servicing revenues
    (12,542 )     (14,023 )     (32,646 )     (44,899 )
 
                               
Total consumer lending revenues, net
  $ 47,653     $ 59,293     $ 133,173     $ 170,520  
 
                               
 
                               
Consumer Loan Net Charge-offs (in thousands)
                               
Gross charge-offs of company-funded consumer loans
  $ 44,632     $ 55,297     $ 112,719     $ 161,235  
Recoveries of company-funded consumer loans
    36,829       42,504       94,884       124,813  
 
                               
Net charge-offs on company-funded consumer loans
  $ 7,803     $ 12,793     $ 17,835     $ 36,422  
 
                               
 
                               
 
                               
Gross charge-offs of company-funded consumer loans as a
                               
percentage of total company-funded consumer loan originations
    12.9 %     11.5 %     12.0 %     11.7 %
 
                               
Recoveries of company-funded consumer loans as a percentage
                               
of total company-funded consumer loan originations
    10.6 %     8.8 %     10.1 %     9.1 %
 
                               
Net charge-offs on company-funded consumer loans as a
                               
percentage of total company-funded consumer loan originations
    2.3 %     2.7 %     1.9 %     2.6 %

7