Exhibit 99.1
| Additional Information: Thomas A. Bessant, Jr. (817) 335-1100 | For Immediate Release |
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CASH AMERICA ANNOUNCES SECOND QUARTER NET INCOME
AND DECLARES DIVIDEND
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Fort Worth, Texas (July 22, 2004) — - Cash America International, Inc. (NYSE: PWN) reported today that net income increased 63% in the second quarter ended June 30, 2004, compared to net income excluding a gain on the sale of asset in the same period in 2003. Net income for the three-month period in 2004 was $7,339,000 (25 cents per share) compared to $4,507,000 (18 cents per share) in 2003 excluding the after tax effect of a $1,144,000 gain (5 cents per share) on the sale of a non-operating asset in 2003. The resulting earnings per share in the second quarter of 2004 were at the top end of management’s previously published expectations of between 22 and 25 cents per share for the quarter.
Total revenue increased 23% to $115.8 million in the second quarter 2004 as aggregate finance and service charges on loans plus fees from short-term cash advances amounted to $56.1 million, an increase of 52% from the same period in 2003 when total revenue was $94.4 million. The significant increase in the combination of these two lending related revenue items was due to the continued increase in the balances of both pawn loans and cash advances.
Commenting on the results for the second quarter, Daniel R. Feehan, President and Chief Executive Officer said, “We are seeing growing levels of revenue from higher demand for both our lending products and from customers seeking value-oriented retail opportunities within our store base. We have been expanding our number of locations to meet customer demand. We are well on our way to meeting our objective of adding between 60 and 70 new lending locations in 2004.” Through the end of June, Cash America has established 30 lending locations and over the last twelve months has added 66 locations and completed a 121-store acquisition. Mr. Feehan added, “While we are pleased with initial growth and early progress from new locations, we also enjoyed a same store net revenue increase of 9.5%, which was a significant part of the strong overall performance in the quarter.”
For the first six months of fiscal 2004, net income increased 66% to $18,729,000 (64 cents per share) compared to $11,276,000 (45 cents per share) in 2003 excluding the gain on sale of asset of $1,144,000 (5 cents per share). Total revenue for the first half of 2004 was 24% higher than prior year ending at $247.7 million compared to $199.9 million in 2003.
Cash America will conduct a conference call to discuss its second quarter earnings Thursday, July 22, at 3:45 PM CST. A live web cast of the call will be available on the home page of the Company’s corporate web site (www.cashamerica.com). To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software.
Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.0175 (1.75 cents) per share cash dividend on common stock outstanding. The dividend will be paid to shareholders of record on August 4, 2004, and will be paid at the close of business on August 18, 2004.
Forward-Looking Information
Continued earnings growth is due to higher levels of lending assets and the addition of new lending locations. Both pawn loans and cash advances ended the second quarter of 2004 at higher balances than the same point last year and management believes that the current economic environment is favorable for continued growth in both pawn loans and short-term cash advances. In addition, management anticipates it will generate higher asset balances from new unit openings during 2003 and 2004. Also, during the first seven months of 2004, the Company will include the results of Cashland, an acquisition of 121 locations completed in the third quarter of 2003 for the first time. Based on these assumptions, management has revised and increased its forecasted earnings per share for fiscal 2004 to be between $1.40 and $1.46 per share. This compares to $1.08 per share in earnings for fiscal 2003, excluding the impact of the sale of a non-operating asset in the
second quarter of 2003 of 5 cents per share. Results for the calendar year 2004 will be concentrated in the seasonally high first and fourth quarters of the year as a result of anticipated normal business cycles. In the near term, management expects that earnings per share for the third quarter of fiscal 2004 to be between 28 and 31cents per share compared to 22 cents per share in the third quarter of 2003.
Cash America International, Inc. is a provider of specialty financial services to individuals in the United States, United Kingdom and Sweden with 791 total locations. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 472 locations in 17 states and two foreign countries under the brand names Cash America Pawn in the U.S., Harvey & Thompson in the U.K. and Svensk Pantbelåning in Sweden. The Company also offers short-term cash advances in many of its U.S. locations including 28 locations that offer only this service under the brand name Cash America Payday Advance. In addition, the Company provides short-term cash advances and check cashing through its 153 “Cashland” consumer finance centers, and check cashing services through its 138 franchised and Company-owned “Mr. Payroll” check cashing centers.
This release contains forward-looking statements about the business, financial condition and prospects of Cash America International, Inc. and its subsidiaries (“the Company”). The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including, without limitation, changes in demand for the Company’s services, the actions of third parties who offer products and services at the Company’s locations, changes in competition, the ability of the Company to open new operating units in accordance with its plans, economic conditions, real estate market fluctuations, interest rate fluctuations, changes in the capital markets, changes in tax and other laws and governmental rules and regulations applicable to the Company’s business, and other risks indicated in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties are beyond the ability of the Company to control, and, in many cases, the Company cannot predict all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, terms such as “believes”, “estimates”, “plans”, “expects”, “anticipates” and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date of this release.
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS
(in thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
Consolidated Operations: | ||||||||||||||||
| Total revenue | $ | 115,773 | $ | 94,417 | $ | 247,683 | $ | 199,922 | ||||||||
| Net revenue | 80,726 | 59,030 | 167,567 | 122,981 | ||||||||||||
| Total operating expenses | 67,219 | 49,953 | 134,125 | 100,939 | ||||||||||||
Income from operations | $ | 13,507 | $ | 9,077 | $ | 33,442 | $ | 22,042 | ||||||||
| Income before income taxes | 11,333 | 7,964 | 29,019 | 18,753 | ||||||||||||
Net income | 7,339 | 5,651 | 18,729 | 12,420 | ||||||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.26 | $ | 0.23 | $ | 0.66 | $ | 0.51 | ||||||||
| Diluted | $ | 0.25 | $ | 0.22 | $ | 0.64 | $ | 0.50 | ||||||||
| Weighted average shares: | ||||||||||||||||
| Basic | 28,254 | 24,189 | 28,247 | 24,215 | ||||||||||||
| Diluted | 29,443 | 25,128 | 29,448 | 24,940 | ||||||||||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| June 30, | December 31, | |||||||||||
| 2004 | 2003 | 2003 | ||||||||||
| (Unaudited) | ||||||||||||
Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 11,482 | $ | 7,697 | $ | 14,547 | ||||||
| Pawn loans | 148,702 | 136,897 | 141,871 | |||||||||
| Cash advances, net | 27,663 | 8,463 | 28,346 | |||||||||
| Merchandise held for disposition, net | 54,995 | 50,947 | 56,120 | |||||||||
| Finance and service charges receivable | 23,821 | 21,316 | 23,568 | |||||||||
| Other receivables and prepaid expenses | 12,121 | 9,030 | 10,628 | |||||||||
| Income taxes recoverable | — | — | 3,208 | |||||||||
| Deferred tax assets | 7,820 | 6,169 | 6,868 | |||||||||
| Total current assets | 286,604 | 240,519 | 285,156 | |||||||||
| Property and equipment, net | 82,898 | 67,896 | 78,977 | |||||||||
| Goodwill | 123,229 | 81,432 | 117,963 | |||||||||
| Other assets | 6,142 | 2,814 | 7,436 | |||||||||
| Total assets | $ | 498,873 | $ | 392,661 | $ | 489,532 | ||||||
Liabilities and Stockholders’ Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable and accrued expenses | $ | 33,270 | $ | 25,401 | $ | 39,167 | ||||||
| Customer deposits | 4,899 | 4,381 | 4,102 | |||||||||
| Income taxes currently payable | 2,521 | 1,683 | 1,386 | |||||||||
| Current portion of long-term debt | 8,286 | 8,286 | 8,286 | |||||||||
| Total current liabilities | 48,976 | 39,751 | 52,941 | |||||||||
| Deferred tax liabilities | 8,536 | 5,390 | 7,704 | |||||||||
| Long-term debt | 146,705 | 140,591 | 152,394 | |||||||||
| Stockholders’ equity: | ||||||||||||
| Common stock, $.10 par value per share, 80,000,000 shares authorized, 30,235,164 shares issued | 3,024 | 3,024 | 3,024 | |||||||||
| Additional paid-in capital | 143,252 | 127,977 | 141,867 | |||||||||
| Retained earnings | 159,382 | 124,971 | 141,642 | |||||||||
| Accumulated other comprehensive income | 8,085 | 660 | 7,995 | |||||||||
| Notes receivable secured by common stock | (2,488 | ) | (5,774 | ) | (2,488 | ) | ||||||
| Treasury shares, at cost (1,987,207 shares, 5,994,700 shares and 2,040,180 shares at June 30, 2004 and 2003, and December 31, 2003, respectively | (16,599 | ) | (43,929 | ) | (15,547 | ) | ||||||
| Total stockholders’ equity | 294,656 | 206,929 | 276,493 | |||||||||
| Total liabilities and stockholders’ equity | $ | 498,873 | $ | 392,661 | $ | 489,532 | ||||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| (Unaudited) | ||||||||||||||||
Revenue | ||||||||||||||||
| Finance and service charges | $ | 34,055 | $ | 30,601 | $ | 69,555 | $ | 62,056 | ||||||||
| Proceeds from disposition of merchandise | 56,982 | 56,176 | 129,697 | 122,295 | ||||||||||||
| Cash advance fees | 22,061 | 6,394 | 41,717 | 12,860 | ||||||||||||
| Check cashing royalties and fees | 2,675 | 1,246 | 6,714 | 2,711 | ||||||||||||
Total Revenue | 115,773 | 94,417 | 247,683 | 199,922 | ||||||||||||
Cost of Revenue | ||||||||||||||||
| Disposed merchandise | 35,047 | 35,387 | 80,116 | 76,941 | ||||||||||||
Net Revenue | 80,726 | 59,030 | 167,567 | 122,981 | ||||||||||||
Expenses | ||||||||||||||||
| Operations | 45,879 | 36,241 | 92,443 | 73,211 | ||||||||||||
| Cash advance loss provision | 5,375 | 1,692 | 8,419 | 3,024 | ||||||||||||
| Administration | 11,205 | 8,413 | 23,851 | 17,408 | ||||||||||||
| Depreciation and amortization | 4,760 | 3,607 | 9,412 | 7,296 | ||||||||||||
Total Expenses | 67,219 | 49,953 | 134,125 | 100,939 | ||||||||||||
Income from Operations | 13,507 | 9,077 | 33,442 | 22,042 | ||||||||||||
| Interest expense, net | 2,174 | 2,126 | 4,423 | 4,302 | ||||||||||||
| Gain from disposal of asset | — | (1,013 | ) | — | (1,013 | ) | ||||||||||
Income before Income Taxes | 11,333 | 7,964 | 29,019 | 18,753 | ||||||||||||
| Provision for income taxes | 3,994 | 2,313 | 10,290 | 6,333 | ||||||||||||
Net Income | $ | 7,339 | $ | 5,651 | $ | 18,729 | $ | 12,420 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 026 | $ | 023 | $ | 066 | $ | 051 | ||||||||
| Diluted | $ | 025 | $ | 022 | $ | 064 | $ | 050 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 28,254 | 24,189 | 28,247 | 24,215 | ||||||||||||
| Diluted | 29,443 | 25,128 | 29,448 | 24,940 | ||||||||||||
| Dividends declared per common share | $ | 00175 | $ | 00175 | $ | 0035 | $ | 0030 | ||||||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA
($ in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
PAWN LENDING OPERATIONS: | ||||||||||||||||
Pawn loans | ||||||||||||||||
| Annualized yield on pawn loans | 96.6 | % | 94.4 | % | 99.7 | % | 98.1 | % | ||||||||
| Total amount of pawn loans written | $ | 122,303 | $ | 113,548 | $ | 235,973 | $ | 216,819 | ||||||||
| Average pawn loan balance outstanding | $ | 141,728 | $ | 129,991 | $ | 140,290 | $ | 127,579 | ||||||||
| Average pawn loan balance per average location in operation | $ | 305 | $ | 288 | $ | 302 | $ | 282 | ||||||||
| Average pawn loan amount at end of period (not in thousands) | $ | 112 | $ | 107 | $ | 112 | $ | 107 | ||||||||
| Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise | 38.5 | % | 37.0 | % | 38.2 | % | 37.1 | % | ||||||||
| Average annualized merchandise turnover | 2.7 | x | 2.9 | x | 3.0 | x | 3.1 | x | ||||||||
| Average balance of merchandise held for disposition per average location in operation | $ | 112 | $ | 110 | $ | 114 | $ | 112 | ||||||||
| Pawnshop locations in operation — | ||||||||||||||||
| Beginning of period, owned | 465 | 453 | 467 | 455 | ||||||||||||
| Acquired | — | — | — | 3 | ||||||||||||
| Start-ups | 1 | 1 | 1 | 2 | ||||||||||||
| Combined or closed | — | (1 | ) | (2 | ) | (7 | ) | |||||||||
| End of period, owned | 466 | 453 | 466 | 453 | ||||||||||||
| Franchise locations at end of period | 6 | 9 | 6 | 9 | ||||||||||||
| Total pawnshop locations at end of period | 472 | 462 | 472 | 462 | ||||||||||||
| Average number of owned pawnshop locations in operation | 465 | 452 | 465 | 453 | ||||||||||||
Cash advances | ||||||||||||||||
Total amount of cash advances written(a) | $ | 50,469 | $ | 42,307 | $ | 95,108 | $ | 80,105 | ||||||||
Number of cash advances written (not in thousands)(a) | 156,786 | 144,675 | 295,740 | 273,187 | ||||||||||||
Average amount per cash advance (not in thousands)(a) | $ | 322 | $ | 292 | $ | 322 | $ | 293 | ||||||||
Combined cash advances outstanding(a) | $ | 14,663 | $ | 11,320 | $ | 14,663 | $ | 11,320 | ||||||||
Cash advances outstanding per location at end of period(a) | $ | 38 | $ | 30 | $ | 38 | $ | 30 | ||||||||
Cash advances outstanding before allowance for losses(b) | $ | 9,859 | $ | 10,069 | $ | 9,859 | $ | 10,069 | ||||||||
| Locations offering cash advances at end of period | 388 | 383 | 388 | 383 | ||||||||||||
| Average number of locations offering cash advances | 388 | 383 | 388 | 385 | ||||||||||||
CASH ADVANCE OPERATIONS(c): | ||||||||||||||||
| Total amount of cash advances written | $ | 93,801 | $ | 1,245 | $ | 171,551 | $ | 1,657 | ||||||||
| Number of cash advances written (not in thousands) | 277,017 | 3,832 | 505,941 | 5,057 | ||||||||||||
| Average amount per cash advance (not in thousands) | $ | 339 | $ | 325 | $ | 339 | $ | 328 | ||||||||
Combined cash advances outstanding(a) | $ | 23,783 | $ | 384 | $ | 23,783 | $ | 384 | ||||||||
Cash advances outstanding per location at end of period(a) | $ | 131 | $ | 35 | $ | 131 | $ | 35 | ||||||||
Cash advances outstanding before allowance for losses(b) | $ | 22,769 | $ | 331 | $ | 22,769 | $ | 331 | ||||||||
| Cash advance locations in operations — | ||||||||||||||||
| Beginning of period | 164 | 5 | 154 | 2 | ||||||||||||
| Start-ups | 19 | 6 | 29 | 9 | ||||||||||||
| Combined or closed | (2 | ) | — | (2 | ) | — | ||||||||||
| End of period | 181 | 11 | 181 | 11 | ||||||||||||
| Average number of locations in operation for period | 171 | 8 | 165 | 6 | ||||||||||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATE (Continued)
($ in thousands)
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2004 | 2003 | 2004 | 2003 | ||||||||||||||
CHECK CASHING OPERATIONS (Mr. Payroll): | |||||||||||||||||
| Face amount of checks cashed. | $ | 261,680 | $ | 257,066 | $ | 583,867 | $ | 565,594 | |||||||||
| Gross fees collected | $ | 3,561 | $ | 3,527 | $ | 8,360 | $ | 8,138 | |||||||||
| Fees as a percentage of checks cashed | 1.4 | % | 1.4 | % | 1.4 | % | 1.4 | % | |||||||||
| Average check cashed (not in thousands) | $ | 347 | $ | 340 | $ | 385 | $ | 374 | |||||||||
| Centers in operation at end of period | 138 | 139 | 138 | 139 | |||||||||||||
| Average centers in operation for period | 138 | 140 | 137 | 137 | |||||||||||||
| (a) | Includes cash advances made by the Company and cash advances made by third-party banks offered at the Company’s locations. | |
| (b) | Amounts recorded in the Company’s consolidated financial statements. | |
| (c) | Includes Cashland and Cash America Payday Advance locations. |
CONSOLIDATED CASH ADVANCES OUTSTANDING
($ in thousands)
| June 30, | ||||||||
| 2004 | 2003 | |||||||
Originated by the Company | ||||||||
| Active cash advances and fees receivable | $ | 19,422 | $ | 1,329 | ||||
| Cash advances and fees in collection | 4,860 | 367 | ||||||
Total originated by the Company | 24,282 | 1,696 | ||||||
Originated by banks | ||||||||
| Active cash advances and fees receivable | 10,934 | 7,532 | ||||||
| Cash advances and fees in collection | 3,230 | 2,476 | ||||||
Total originated by banks | 14,164 | 10,008 | ||||||
Combined gross portfolio | 38,446 | 11,704 | ||||||
| Less: Elimination of cash advances owned by banks | 5,373 | 908 | ||||||
| Less: Discount on cash advances assigned by banks | 445 | 396 | ||||||
| Company cash advances and fees receivable, gross | 32,628 | 10,400 | ||||||
| Less: Allowance for losses | 4,965 | 1,937 | ||||||
Cash advances and fees receivable, net | $ | 27,663 | $ | 8,463 | ||||
Allowance for losses as a % of combined gross portfolio | 12.9 | % | 16.5 | % | ||||
CONSOLIDATED ALLOWANCE FOR LOSSES ON CASH ADVANCES
($ in thousands)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||||||
| Balance at beginning of period | $ | 2,689 | $ | 1,363 | $ | 3,448 | $ | 1,748 | ||||||||
| Cash advance loss provision | 5,375 | 1,692 | 8,419 | 3,024 | ||||||||||||
| Charge-offs | (4,880 | ) | (1,941 | ) | (10,759 | ) | (4,404 | ) | ||||||||
| Recoveries | 1,781 | 823 | 3,857 | 1,569 | ||||||||||||
| Balance at end of period | $ | 4,965 | $ | 1,937 | $ | 4,965 | $ | 1,937 | ||||||||
| Cash advance loss provision as a % of combined advances written | 3.7 | % | 3.9 | % | 3.2 | % | 3.7 | % | ||||||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED JUNE 30, 2004 AND 2003
(in thousands)
| (Unaudited) | ||||||||||||||||||||
| Pawn Lending | ||||||||||||||||||||
| United | Cash | Check | ||||||||||||||||||
| States | Foreign | Advance(a) | Cashing(b) | Consolidated | ||||||||||||||||
Three Months Ended June 30, 2004: | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
| Finance and service charges | $ | 25,355 | $ | 8,700 | $ | — | $ | — | $ | 34,055 | ||||||||||
| Proceeds from disposition of merchandise | 51,695 | 5,287 | — | — | 56,982 | |||||||||||||||
| Cash advance fees | 7,509 | — | 14,552 | — | 22,061 | |||||||||||||||
| Check cashing royalties and fees | — | 643 | 1,172 | 860 | 2,675 | |||||||||||||||
Total revenue | 84,559 | 14,630 | 15,724 | 860 | 115,773 | |||||||||||||||
| Cost of revenue — disposed merchandise. | 31,338 | 3,709 | — | — | 35,047 | |||||||||||||||
Net revenue | 53,221 | 10,921 | 15,724 | 860 | 80,726 | |||||||||||||||
Expenses | ||||||||||||||||||||
| Operations | 32,376 | 4,987 | 8,175 | 341 | 45,879 | |||||||||||||||
| Cash advance loss provision | 2,064 | — | 3,311 | — | 5,375 | |||||||||||||||
| Administration | 7,270 | 1,622 | 2,026 | 287 | 11,205 | |||||||||||||||
| Depreciation and amortization | 2,882 | 696 | 1,058 | 124 | 4,760 | |||||||||||||||
Total expenses | 44,592 | 7,305 | 14,570 | 752 | 67,219 | |||||||||||||||
Income from operations | $ | 8,629 | $ | 3,616 | $ | 1,154 | $ | 108 | $ | 13,507 | ||||||||||
As of June 30, 2004: | ||||||||||||||||||||
| Total assets | $ | 300,338 | $ | 114,833 | $ | 76,201 | $ | 7,501 | $ | 498,873 | ||||||||||
Three Months Ended June 30, 2003: | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
| Finance and service charges | $ | 23,439 | $ | 7,162 | $ | — | $ | — | $ | 30,601 | ||||||||||
| Proceeds from disposition of merchandise | 51,644 | 4,532 | — | — | 56,176 | |||||||||||||||
| Cash advance fees | 6,227 | — | 167 | — | 6,394 | |||||||||||||||
| Check cashing royalties and fees | — | 418 | — | 828 | 1,246 | |||||||||||||||
Total revenue | 81,310 | 12,112 | 167 | 828 | 94,417 | |||||||||||||||
| Cost of revenue — disposed merchandise | 31,984 | 3,403 | — | — | 35,387 | |||||||||||||||
Net revenue | 49,326 | 8,709 | 167 | 828 | 59,030 | |||||||||||||||
Expenses Operations | 31,642 | 3,948 | 274 | 377 | 36,241 | |||||||||||||||
| Cash advance loss provision | 1,618 | — | 74 | — | 1,692 | |||||||||||||||
| Administration | 6,995 | 1,148 | 87 | 183 | 8,413 | |||||||||||||||
| Depreciation and amortization | 2,817 | 648 | 20 | 122 | 3,607 | |||||||||||||||
| — | ||||||||||||||||||||
Total expenses | 43,072 | 5,744 | 455 | 682 | 49,953 | |||||||||||||||
Income (loss) from operations | $ | 6,254 | $ | 2,965 | $ | (288 | ) | $ | 146 | $ | 9,077 | |||||||||
As of June 30, 2003: | ||||||||||||||||||||
| Total assets | $ | 282,131 | $ | 101,175 | $ | 1,302 | $ | 8,053 | $ | 392,661 | ||||||||||
| (a) | Includes Cashland for periods after August 1, 2003 and Cash America Payday Advance locations. | |
| (b) | Mr. Payroll only. |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
SIX MONTHS ENDED JUNE 30, 2004 AND 2003
(in thousands)
| (Unaudited) | ||||||||||||||||||||
| Pawn Lending | ||||||||||||||||||||
| United | Cash | Check | ||||||||||||||||||
| States | Foreign | Advance(a) | Cashing(b) | Consolidated | ||||||||||||||||
Six Months Ended June 30, 2004: | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
| Finance and service charges | $ | 52,227 | $ | 17,328 | $ | — | $ | — | $ | 69,555 | ||||||||||
| Proceeds from disposition of merchandise | 118,743 | 10,954 | — | — | 129,697 | |||||||||||||||
| Cash advance fees | 14,628 | — | 27,089 | — | 41,717 | |||||||||||||||
| Check cashing royalties and fees | — | 1,240 | 3,492 | 1,982 | 6,714 | |||||||||||||||
Total revenue | 185,598 | 29,522 | 30,581 | 1,982 | 247,683 | |||||||||||||||
| Cost of revenue — disposed merchandise. | 72,167 | 7,949 | — | — | 80,116 | |||||||||||||||
Net revenue | 113,431 | 21,573 | 30,581 | 1,982 | 167,567 | |||||||||||||||
Expenses | ||||||||||||||||||||
| Operations | 66,312 | 9,983 | 15,427 | 721 | 92,443 | |||||||||||||||
| Cash advance loss provision | 3,420 | — | 4,999 | — | 8,419 | |||||||||||||||
| Administration | 16,351 | 3,161 | 3,844 | 495 | 23,851 | |||||||||||||||
| Depreciation and amortization | 5,749 | 1,424 | 2,001 | 238 | 9,412 | |||||||||||||||
Total expenses | 91,832 | 14,568 | 26,271 | 1,454 | 134,125 | |||||||||||||||
Income from operations | $ | 21,599 | $ | 7,005 | $ | 4,310 | $ | 528 | $ | 33,442 | ||||||||||
Six Months Ended June 30, 2003: | ||||||||||||||||||||
Revenue | ||||||||||||||||||||
| Finance and service charges | $ | 48,148 | $ | 13,908 | $ | — | $ | — | $ | 62,056 | ||||||||||
| Proceeds from disposition of merchandise | 114,706 | 7,589 | — | — | 122,295 | |||||||||||||||
| Cash advance fees | 12,638 | — | 222 | — | 12,860 | |||||||||||||||
| Check cashing royalties and fees | — | 800 | — | 1,911 | 2,711 | |||||||||||||||
Total revenue | 175,492 | 22,297 | 222 | 1,911 | 199,922 | |||||||||||||||
| Cost of revenue — disposed merchandise. | 71,487 | 5,454 | — | — | 76,941 | |||||||||||||||
Net revenue | 104,005 | 16,843 | 222 | 1,911 | 122,981 | |||||||||||||||
Expenses | ||||||||||||||||||||
| Operations | 64,426 | 7,583 | 395 | 807 | 73,211 | |||||||||||||||
| Cash advance loss provision | 2,937 | — | 87 | — | 3,024 | |||||||||||||||
| Administration | 14,696 | 2,232 | 122 | 358 | 17,408 | |||||||||||||||
| Depreciation and amortization | 5,690 | 1,333 | 29 | 244 | 7,296 | |||||||||||||||
| — | ||||||||||||||||||||
Total expenses | 87,749 | 11,148 | 633 | 1,409 | 100,939 | |||||||||||||||
Income (loss) from operations | $ | 16,256 | $ | 5,695 | $ | (411 | ) | $ | 502 | $ | 22,042 | |||||||||
| (a) | Includes Cashland for periods after August 1, 2003 and Cash America Payday Advance locations. | |
| (b) | Mr. Payroll only. |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
OTHER FINANCIAL AND OPERATING DATA
($ in thousands)
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2004 | 2003 | |||||||
U.S. PAWN LENDING OPERATIONS: | ||||||||
| Annualized yield on pawn loans | 127.2 | % | 123.9 | % | ||||
| Total amount of pawn loans written | $ | 87,349 | $ | 82,014 | ||||
| Average pawn loan balance outstanding | $ | 80,203 | $ | 75,904 | ||||
| Average pawn loan balance per average location in operation | $ | 203 | $ | 195 | ||||
| Ending pawn loan balance per location in operation | $ | 221 | $ | 209 | ||||
| Average pawn loan amount at end of period (not in thousands) | $ | 84 | $ | 81 | ||||
| Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise | 39.4 | % | 38.1 | % | ||||
| Average annualized merchandise turnover 2.8x | 2.8 | x | 2.9 | x | ||||
| Average balance of merchandise held for disposition per average location in operation | $ | 113 | $ | 112 | ||||
| Ending balance of merchandise held for disposition per location in operation | $ | 119 | $ | 116 | ||||
| Pawnshop locations in operation — Beginning of period, owned | 396 | 391 | ||||||
| Combined or closed | — | (1 | ) | |||||
| End of period, owned | 396 | 390 | ||||||
| Franchised locations at end of period | 6 | 9 | ||||||
| Total pawnshop locations at end of period | 402 | 399 | ||||||
| Average number of owned pawnshop locations in operation | 396 | 390 | ||||||
FOREIGN PAWN LENDING OPERATIONS: | ||||||||
| Annualized yield on pawn loans: | ||||||||
| In U.S. dollars | 56.9 | % | 53.1 | % | ||||
| In local currency — United Kingdom | 59.4 | % | 57.7 | % | ||||
| Sweden | 53.1 | % | 45.8 | % | ||||
| Total amount of pawn loans written | $ | 34,954 | $ | 31,534 | ||||
| Average pawn loan balance outstanding | $ | 61,525 | $ | 54,087 | ||||
| Average pawn loan balance per average location in operation | $ | 892 | $ | 872 | ||||
| Ending pawn loan balance per location in operation | $ | 875 | $ | 881 | ||||
| Average pawn loan amount at end of period (not in thousands) | $ | 222 | $ | 201 | ||||
| Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise | 29.8 | % | 24.9 | % | ||||
| Average annualized merchandise turnover | 2.0 | x | 2.4 | x | ||||
| Average balance of merchandise held for disposition per average location in operation | $ | 106 | $ | 93 | ||||
| Ending balance of merchandise held for disposition per location in operation | $ | 110 | $ | 93 | ||||
| Pawnshop locations in operation — Beginning of period, owned | 69 | 62 | ||||||
| Acquired | — | — | ||||||
| Start-ups | 1 | 1 | ||||||
| End of period, owned | 70 | 63 | ||||||
| Average number of owned pawnshop locations in operation | 69 | 62 | ||||||
| Currency translation rates: | ||||||||
| Harvey & Thompson, Ltd. (U.S. dollar per British pound) — Balance sheet data — end of period | 1.8194 | 1.6559 | ||||||
| Statements of operations data — average rate for the period | 1.8096 | 1.6210 | ||||||
| Svensk Pantbelåning (U.S. dollar per Swedish kronor) — Balance sheet data — end of period | 0.133101 | 0.125301 | ||||||
| Statements of operations data — average rate for the period | 0.131973 | 0.124353 | ||||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
OTHER FINANCIAL AND OPERATING DATA (Continued)
($ in thousands)
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2004 | 2003 | |||||||
U.S. PAWN LENDING OPERATIONS: | ||||||||
| Annualized yield on pawn loans | 133.7 | % | 129.4 | % | ||||
| Total amount of pawn loans written | $ | 163,913 | $ | 154,087 | ||||
| Average pawn loan balance outstanding | $ | 78,546 | $ | 75,032 | ||||
| Average pawn loan balance per average location in operation | $ | 198 | $ | 191 | ||||
| Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise | 39.2 | % | 37.7 | % | ||||
| Average annualized merchandise turnover | 3.2 | x | 3.2 | % | ||||
| Average balance of merchandise held for disposition per average location in operation | $ | 116 | $ | 116 | ||||
| Pawnshop locations in operation — | ||||||||
| Beginning of period, owned | 398 | 396 | ||||||
| Combined or closed | (2 | ) | (6 | ) | ||||
| End of period, owned | 396 | 390 | ||||||
| Franchised locations at end of period | 6 | 9 | ||||||
| Total pawnshop locations at end of period | 402 | 399 | ||||||
| Average number of owned pawnshop locations in operation | 396 | 392 | ||||||
FOREIGN PAWN LENDING OPERATIONS: | ||||||||
| Annualized yield on pawn loans: | ||||||||
| In U.S. dollars | 56.4 | % | 53.4 | % | ||||
| In local currency — | ||||||||
| United Kingdom | 60.8 | % | 57.7 | % | ||||
| Sweden | 48.7 | % | 46.8 | % | ||||
| Total amount of pawn loans written | $ | 72,060 | $ | 62,732 | ||||
| Average pawn loan balance outstanding | $ | 61,744 | $ | 52,547 | ||||
| Average pawn loan balance per average location in operation | $ | 895 | $ | 861 | ||||
| Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise | 27.4 | % | 28.1 | % | ||||
| Average annualized merchandise turnover | 2.3 | x | 2.0 | x | ||||
| Average balance of merchandise held for disposition per average location in operation | $ | 103 | $ | 90 | ||||
| Pawnshop locations in operation — | ||||||||
| Beginning of period, owned | 69 | 59 | ||||||
| Acquired | — | 3 | ||||||
| Start-ups | 1 | 2 | ||||||
| Combined or closed | — | (1 | ) | |||||
| End of period, owned | 70 | 63 | ||||||
| Average number of owned pawnshop locations in operation | 69 | 61 | ||||||
| Currency translation rates: | ||||||||
| Harvey & Thompson, Ltd. (U.S. dollar per British pound) — | ||||||||
| Statements of operations data — average rate for the period | 1.8219 | 1.6116 | ||||||
| Svensk Pantbelåning (U.S. dollar per Swedish kronor) — | ||||||||
| Statements of operations data — average rate for the period | 0.133574 | 0.120430 | ||||||