| | |
| Additional Information: | | For Immediate Release |
| Thomas A. Bessant, Jr. | | |
| (817) 335-1100 | | |
CASH AMERICA REPORTS 76% INCREASE IN EARNINGS FROM CONTINUING OPERATIONS
FOR THE THIRD QUARTER AND DECLARES REGULAR DIVIDEND
Fort Worth, Texas (October 21, 2004) — - Cash America International, Inc. (NYSE: PWN) announced today that net income for the third quarter of 2004 was $23,664,000 (80 cents per share) which includes the impact of the gain on sale of its European businesses in early September, which has been classified as discontinued operations. The after tax income from discontinued operations was $16,483,000, which is comprised of $1,794,000 (6 cents per share) of earnings from discontinued operations in the third quarter and a gain of $14,689,000 (50 cents per share) on the sale. Earnings from continuing operations in the third quarter of 2004 were $7,181,000 (24 cents per share) which, when added to the after-tax earnings from the discontinued European businesses in the quarter, produced pro forma net earnings of $8,975,000 (30 cents per share) near the top of the Company’s published estimate for the quarter of between 28 and 31 cents per share. The income from continuing operations for the three months ended September 30, 2004 of $7,181,000 is 76% higher than the $4,085,000 (15 cents per share) posted for comparable continuing operations for the same period in 2003.
The earnings gains were the result of revenue growth from the Company’s combined total of service charges and fees on pawn loans plus cash advance fees, which were up 36% to $54.8 million for the third quarter of 2004 compared to $40.2 million last year. Total revenue for the three-month period in 2004 was up 16% to $110.5 million. Cash America completed the acquisition of Cashland in 2003 during the third quarter providing two months of revenue and earnings in the prior year figures included above.
Cash America announced the sale of its two European pawn businesses in early September so that it could focus its efforts exclusively on opportunities for earnings growth and expansion in the United States where it is the largest pawn lender and rapidly becoming one of the largest companies serving the cash advance market. At the same time Cash America announced the sale of its European businesses it also reported that it had signed an agreement to purchase the assets of a privately-owned chain of 41 pawn locations in four western states, based in Las Vegas, Nevada, which operates under the trade name of SuperPawn.
Commenting on the results for the third quarter, Daniel R. Feehan, President and Chief Executive Officer said, “Earnings from the quarter were largely due to the strong growth in lending assets in both pawn and cash advances. We are pleased that the additional unit growth over the last twelve months is providing a solid base for revenue growth which should maintain the momentum of earnings expansion into the coming quarters.”
Cash America will conduct a conference call to discuss its third quarter earnings Thursday, October 21, 2004 at 3:45 PM CST. A live web cast of the call will be available on the Company’s corporate web site in the Investor Relations section (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 November 3, 2004, and will be paid at the close of business on November 17, 2004. This cash dividend is not related to the special cash dividend recently declared by the board of directors of $0.30 (30 cents per share) in conjunction with the Company’s sale of its European businesses for shareholders of record on December 1, 2004 to be paid at the close of business on December 15, 2004.
Further, the Company indicated that it is in the process of responding to comment letters from the SEC’s Division of Corporation Finance on the classification of certain items in its previously filed Consolidated Statements of Cash Flows relating to the forfeiture of pawned merchandise. The Company anticipates that these discussions will likely result in the amendment of the Company’s Consolidated Statements of Cash Flows to address solely these items, and which would not impact any of the other aspects of the previously reported financial results or conditions shown on the Consolidated Statement of Operations or Consolidated Balance Sheets.
Forward-Looking Information
The elimination of the foreign source revenue and earnings to the consolidated Company will decrease earnings until the cash proceeds from the transaction are reinvested in comparable earning assets. Management has identified and entered into an opportunity to redeploy the proceeds from the sale into its announced acquisition of SuperPawn. The sensitivity of the final closing date of the acquisition of the SuperPawn chain, brought about by uncertain timing of regulatory approvals, leads management to adjust fourth quarter results for the elimination of the foreign business with no offsetting benefit of SuperPawn earnings at this time. Partially mitigating this effect is the current trends in pawn loans and cash advance balances, which have shown better than expected growth in 2004. Management’s perspective of full year 2004 earnings per share is comprised of two elements. First, the earnings of continuing operations and second, the results of the eight months of its European business (excluding the gain on sale), which have now been classified as discontinued operations. The combination of these two elements for the full year of 2004 creates a range of expected earnings per share of between $1.37 to $1.41 per share, with 22 cents per share represented by the earnings of the European businesses and the remaining $1.15 to $1.19 per share represented by the continuing operations for the U.S. business. This compares to 78 cents per share in earnings from continuing operations in fiscal 2003, excluding the impact of the gain on sale of a non-operating asset in 2003 of 5 cents per share, and $1.08 per share when including 30 cents per share from what is now classified as discontinued operations. In the near term, management expects earnings per share from continuing operations for the fourth quarter of 2004 to be between 43 and 47 cents per share compared to 32 cents per share in earnings from continuing operations in the fourth quarter of 2003.
Preliminary estimates for fiscal year of 2005 are based on management’s current expectation that the acquisition of SuperPawn will be completed and that asset levels in the remainder of the U.S. will continue to grow. Based on these considerations management confirms its initial range of estimated earnings per share of between $1.62 and $1.72 for fiscal 2005. This estimate would be negatively affected if the SuperPawn acquisition fails to close or closes much later than January 1, 2005.
Cash America International, Inc. is a provider of specialty financial services to individuals in the United States with 764 total locations. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 404 locations in 17 states under the brand name Cash America Pawn. The Company also offers short-term cash advances in many of its U.S. locations including 68 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 162 “Cashland” consumer finance centers, and check cashing services through its 130 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.
* * *
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30,
| | September 30,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
Consolidated Operations: | | | | | | | | | | | | | | | | |
| Total revenue | | $ | 110,536 | | | $ | 95,038 | | | $ | 328,697 | | | $ | 272,663 | |
| Net revenue | | | 76,948 | | | | 61,439 | | | | 222,942 | | | | 167,577 | |
| Total operating expenses | | | 63,665 | | | | 52,803 | | | | 183,222 | | | | 142,594 | |
Income from operations | | $ | 13,283 | | | $ | 8,636 | | | $ | 39,720 | | | $ | 24,983 | |
| Income from continuing operations before income taxes | | $ | 11,328 | | | $ | 6,410 | | | | 33,659 | | | $ | 19,805 | |
Income from Continuing Operations | | $ | 7,181 | | | $ | 4,085 | | | $ | 21,249 | | | $ | 12,827 | |
Income from Discontinued Operations | | $ | 1,794 | | | $ | 1,957 | | | $ | 6,455 | | | $ | 5,635 | |
Gain on Disposition of Discontinued Operations | | $ | 14,689 | | | $ | — | | | $ | 14,689 | | | $ | — | |
Net income | | $ | 23,664 | | | $ | 6,042 | | | $ | 42,393 | | | $ | 18,462 | |
| Net income per share: | | | | | | | | | | | | | | | | |
| Basic — | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.25 | | | $ | 0.16 | | | $ | 0.75 | | | $ | 0.52 | |
| Net income | | $ | 0.83 | | | $ | 0.23 | | | $ | 1.50 | | | $ | 0.75 | |
| Diluted — | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.24 | | | $ | 0.15 | | | $ | 0.72 | | | $ | 0.50 | |
| Net income | | $ | 0.80 | | | $ | 0.22 | | | $ | 1.44 | | | $ | 0.72 | |
| Weighted average shares: | | | | | | | | | | | | | | | | |
| Basic | | | 28,347 | | | | 25,791 | | | | 28,281 | | | | 24,746 | |
| Diluted | | | 29,522 | | | | 27,197 | | | | 29,473 | | | | 25,806 | |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME AND DILUTED EARNINGS PER SHARE
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30,
| | September 30,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
| Income from continuing operations | | $ | 7,181 | | | $ | 4,085 | | | $ | 21,249 | | | $ | 12,827 | |
| Income from discontinued operations | | | 1,794 | (1) | | | 1,957 | | | | 6,455 | (2) | | | 5,635 | |
| | | |
| | | |
| | | |
| | | |
| |
| | | | 8,975 | | | | 6,042 | | | | 27,704 | | | | 18,462 | |
| Gain on disposition of discontinued operations | | | 14,689 | | | | — | | | | 14,689 | | | | — | |
| | | |
| | | |
| | | |
| | | |
| |
| Net income | | $ | 23,664 | | | $ | 6,042 | | | $ | 42,393 | | | $ | 18,462 | |
| | | |
| | | |
| | | |
| | | |
| |
| Diluted earnings per share: | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.24 | | | $ | 0.15 | | | $ | 0.72 | | | $ | 0.50 | |
| Income from discontinued operations | | | 0.06 | | | | 0.07 | | | | 0.22 | | | | 0.22 | |
| | | |
| | | |
| | | |
| | | |
| |
| | | | 0.30 | | | | 0.22 | | | | 0.94 | | | | 0.72 | |
| Gain on disposition of discontinued operations | | | 0.50 | | | | — | | | | 0.50 | | | | — | |
| | | |
| | | |
| | | |
| | | |
| |
| Net income | | $ | 0.80 | | | $ | 0.22 | | | $ | 1.44 | | | $ | 0.72 | |
| | | |
| | | |
| | | |
| | | |
| |
| | | (1) Includes period from July 1, 2004 through September 7, 2004 (the date of sale). |
| |
| | | (2) Includes period from January 1, 2004 through September 7, 2004 (the date of sale). |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| | | | | | | | | | | | | |
| | | September 30,
| | December 31,
|
| | | 2004
| | 2003
| | 2003
|
| | | (Unaudited) |
Assets | | | | | | | | | | | | |
| Current assets: | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 13,712 | | | $ | 9,080 | | | $ | 11,959 | |
| Pawn loans | | | 88,243 | | | | 83,617 | | | | 81,154 | |
| Cash advances, net | | | 34,050 | | | | 22,721 | | | | 28,346 | |
| Merchandise held for disposition, net | | | 57,554 | | | | 52,608 | | | | 49,432 | |
| Finance and service charges receivable | | | 16,399 | | | | 14,949 | | | | 15,667 | |
| Other receivables and prepaid expenses | | | 9,990 | | | | 5,246 | | | | 6,612 | |
| Income taxes recoverable | | | — | | | | 5,270 | | | | 2,853 | |
| Deferred tax assets | | | 8,226 | | | | 7,346 | | | | 6,868 | |
| Current assets of discontinued operations | | | — | | | | 77,722 | | | | 82,265 | |
| | | |
| | | |
| | | |
| |
| Total current assets | | | 228,174 | | | | 278,559 | | | | 285,156 | |
| Property and equipment, net | | | 75,776 | | | | 65,771 | | | | 67,852 | |
| Goodwill | | | 115,469 | | | | 97,229 | | | | 99,084 | |
| Other assets | | | 15,163 | | | | 7,634 | | | | 7,312 | |
| Non-current assets of discontinued operations | | | — | | | | 28,077 | | | | 30,128 | |
| | | |
| | | |
| | | |
| |
| Total assets | | $ | 434,582 | | | $ | 477,270 | | | $ | 489,532 | |
| | | |
| | | |
| | | |
| |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | |
| Current liabilities: | | | | | | | | | | | | |
| Accounts payable and accrued expenses | | $ | 30,106 | | | $ | 27,866 | | | $ | 35,811 | |
| Customer deposits | | | 5,215 | | | | 4,614 | | | | 4,102 | |
| Dividends payable | | | 8,582 | | | | — | | | | — | |
| Income taxes currently payable | | | 5,709 | | | | — | | | | — | |
| Current portion of long-term debt | | | 16,786 | | | | 8,286 | | | | 8,286 | |
| Current liabilities of discontinued operations | | | — | | | | 4,084 | | | | 4,742 | |
| | | |
| | | |
| | | |
| |
| Total current liabilities | | | 66,398 | | | | 44,850 | | | | 52,941 | |
| Deferred tax liabilities | | | 5,602 | | | | 3,633 | | | | 5,052 | |
| Long-term debt | | | 57,357 | | | | 155,064 | | | | 139,754 | |
| Non-current liabilities of discontinued operations | | | — | | | | 17,979 | | | | 15,292 | |
| 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 | | | 144,948 | | | | 140,645 | | | | 141,867 | |
| Retained earnings | | | 173,969 | | | | 130,560 | | | | 141,642 | |
| Accumulated other comprehensive income | | | — | | | | 1,743 | | | | 7,995 | |
| Notes receivable secured by common stock | | | (2,488 | ) | | | (3,023 | ) | | | (2,488 | ) |
| Treasury shares, at cost (1,695,392 shares, 2,306,930 shares and 2,040,180 shares at September, 30, 2004 and 2003, and December 31, 2003, respectively) | | | (14,228 | ) | | | (17,205 | ) | | | (15,547 | ) |
| | | |
| | | |
| | | |
| |
| Total stockholders’ equity | | | 305,225 | | | | 255,744 | | | | 276,493 | |
| | | |
| | | |
| | | |
| |
| Total liabilities and stockholders’ equity | | $ | 434,582 | | | $ | 477,270 | | | $ | 489,532 | |
| | | |
| | | |
| | | |
| |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30,
| | September 30,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
| | | (Unaudited) |
Revenue | | | | | | | | | | | | | | | | |
| Finance and service charges | | $ | 28,070 | | | $ | 25,720 | | | $ | 80,297 | | | $ | 73,868 | |
| Proceeds from disposition of merchandise | | | 53,814 | | | | 53,456 | | | | 172,557 | | | | 168,162 | |
| Cash advance fees | | | 26,723 | | | | 14,513 | | | | 68,440 | | | | 27,373 | |
| Check cashing royalties and fees | | | 1,929 | | | | 1,349 | | | | 7,403 | | | | 3,260 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Revenue | | | 110,536 | | | | 95,038 | | | | 328,697 | | | | 272,663 | |
Cost of Revenue | | | | | | | | | | | | | | | | |
| Disposed merchandise | | | 33,588 | | | | 33,599 | | | | 105,755 | | | | 105,086 | |
| | | |
| | | |
| | | |
| | | |
| |
Net Revenue | | | 76,948 | | | | 61,439 | | | | 222,942 | | | | 167,577 | |
| | | |
| | | |
| | | |
| | | |
| |
Expenses | | | | | | | | | | | | | | | | |
| Operations | | | 42,700 | | | | 36,718 | | | | 125,160 | | | | 102,346 | |
| Cash advance loss provision | | | 7,021 | | | | 4,077 | | | | 15,440 | | | | 7,101 | |
| Administration | | | 9,617 | | | | 8,535 | | | | 30,307 | | | | 23,711 | |
| Depreciation and amortization | | | 4,327 | | | | 3,473 | | | | 12,315 | | | | 9,436 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Expenses | | | 63,665 | | | | 52,803 | | | | 183,222 | | | | 142,594 | |
| | | |
| | | |
| | | |
| | | |
| |
Income from Operations | | | 13,283 | | | | 8,636 | | | | 39,720 | | | | 24,983 | |
| Interest expense, net | | | 1,955 | | | | 2,226 | | | | 6,061 | | | | 6,191 | |
| Gain from disposal of asset | | | — | | | | — | | | | — | | | | (1,013 | ) |
| | | |
| | | |
| | | |
| | | |
| |
Income from Continuing Operations before | | | | | | | | | | | | | | | | |
Income Taxes | | | 11,328 | | | | 6,410 | | | | 33,659 | | | | 19,805 | |
| Provision for income taxes | | | 4,147 | | | | 2,325 | | | | 12,410 | | | | 6,978 | |
| | | |
| | | |
| | | |
| | | |
| |
Income from Continuing Operations | | | 7,181 | | | | 4,085 | | | | 21,249 | | | | 12,827 | |
| | | |
| | | |
| | | |
| | | |
| |
Discontinued Operations | | | | | | | | | | | | | | | | |
| Income from discontinued operations (including gain on disposal of $18,902 for the 2004 periods) | | | 21,475 | | | | 2,912 | | | | 28,163 | | | | 8,270 | |
| Provision for income taxes (including taxes of $4,213 on disposal gain for the 2004 periods) | | | 4,992 | | | | 955 | | | | 7,019 | | | | 2,635 | |
| | | |
| | | |
| | | |
| | | |
| |
| Income from discontinued operations | | | 16,483 | | | | 1,957 | | | | 21,144 | | | | 5,635 | |
| | | |
| | | |
| | | |
| | | |
| |
Net Income | | $ | 23,664 | | | $ | 6,042 | | | $ | 42,393 | | | $ | 18,462 | |
| | | |
| | | |
| | | |
| | | |
| |
| Net income per share: | | | | | | | | | | | | | | | | |
| Basic — | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.25 | | | $ | 0.16 | | | $ | 0.75 | | | $ | 0.52 | |
| Income from discontinued operations | | | 0.58 | | | | 0.08 | | | | 0.75 | | | | 0.23 | |
| Net income | | $ | 0.83 | | | $ | 0.23 | | | $ | 1.50 | | | $ | 0.75 | |
| Diluted — | | | | | | | | | | | | | | | | |
| Income from continuing operations | | $ | 0.24 | | | $ | 0.15 | | | $ | 0.72 | | | $ | 0.50 | |
| Income from discontinued operations | | | 0.56 | | | | 0.07 | | | | 0.72 | | | | 0.22 | |
| Net income | | $ | 0.80 | | | $ | 0.22 | | | $ | 1.44 | | | $ | 0.72 | |
| Weighted average common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 28,347 | | | | 25,791 | | | | 28,281 | | | | 24,746 | |
| Diluted | | | 29,522 | | | | 27,197 | | | | 29,473 | | | | 25,806 | |
| Dividends declared per common share | | $ | 0.3175 | | | $ | 0.0175 | | | $ | 0.3525 | | | $ | 0.0475 | |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA — CONTINUING OPERATIONS
($ in thousands)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30,
| | September 30,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
PAWN LENDING OPERATIONS: | | | | | | | | | | | | | | | | |
Pawn loans | | | | | | | | | | | | | | | | |
| Annualized yield on pawn loans | | | 125.9 | % | | | 123.2 | % | | | 131.3 | % | | | 127.4 | % |
| Total amount of pawn loans written and renewed | | $ | 86,853 | | | $ | 81,601 | | | $ | 250,766 | | | $ | 235,688 | |
| Average pawn loan balance outstanding | | $ | 88,693 | | | $ | 82,862 | | | $ | 81,716 | | | $ | 77,529 | |
| Average pawn loan balance per average location in operation | | $ | 223 | | | $ | 211 | | | $ | 206 | | | $ | 197 | |
| Average pawn loan amount at end of period (not in thousands) | | $ | 85 | | | $ | 83 | | | $ | 85 | | | $ | 83 | |
| Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise | | | 37.6 | % | | | 37.2 | % | | | 38.7 | % | | | 37.5 | % |
| Average annualized merchandise turnover | | | 2.5x | | | | 2.7x | | | | 2.9x | | | | 3.0x | |
| Average balance of merchandise held for disposition per average location in operation | | $ | 133 | | | $ | 125 | | | $ | 123 | | | $ | 119 | |
| Pawnshop locations in operation — | | | | | | | | | | | | | | | | |
| Beginning of period, owned | | | 396 | | | | 390 | | | | 398 | | | | 396 | |
| Acquired | | | — | | | | 6 | | | | — | | | | 6 | |
| Start-ups | | | 2 | | | | — | | | | 2 | | | | — | |
| Combined or closed | | | — | | | | — | | | | (2 | ) | | | (6 | ) |
| End of period, owned | | | 398 | | | | 396 | | | | 398 | | | | 396 | |
| Franchise locations at end of period | | | 6 | | | | 9 | | | | 6 | | | | 9 | |
| Total pawnshop locations at end of period | | | 404 | | | | 405 | | | | 404 | | | | 405 | |
| Average number of owned pawnshop locations in operation | | | 397 | | | | 393 | | | | 396 | | | | 393 | |
Cash advances | | | | | | | | | | | | | | | | |
Total amount of cash advances written(a) | | $ | 59,486 | | | $ | 45,463 | | | $ | 154,594 | | | $ | 125,570 | |
Number of cash advances written (not in thousands)(a) | | | 180,552 | | | | 154,185 | | | | 476,292 | | | | 427,372 | |
Average amount per cash advance (not in thousands)(a) | | $ | 329 | | | $ | 295 | | | $ | 325 | | | $ | 294 | |
Combined cash advances outstanding(a) | | $ | 16,063 | | | $ | 11,894 | | | $ | 16,063 | | | $ | 11,894 | |
Cash advances outstanding per location at end of period(a) | | $ | 41 | | | $ | 31 | | | $ | 41 | | | $ | 31 | |
Cash advances outstanding before allowance for losses(b) | | $ | 10,820 | | | $ | 10,528 | | | $ | 10,820 | | | $ | 10,528 | |
| Locations offering cash advances at end of period | | | 390 | | | | 383 | | | | 390 | | | | 383 | |
| Average number of locations offering cash advances | | | 389 | | | | 383 | | | | 388 | | | | 384 | |
CASH ADVANCE OPERATIONS(c): | | | | | | | | | | | | | | | | |
Total amount of cash advances written(a) | | $ | 114,477 | | | $ | 46,951 | | | $ | 286,028 | | | $ | 48,607 | |
Number of cash advances written (not in thousands)(a) | | | 338,755 | | | | 141,305 | | | | 844,696 | | | | 146,362 | |
Average amount per cash advance (not in thousands)(a) | | $ | 338 | | | $ | 332 | | | $ | 339 | | | $ | 332 | |
Combined cash advances outstanding(a) | | $ | 29,551 | | | $ | 16,134 | | | $ | 29,551 | | | $ | 16,134 | |
Cash advances outstanding per location at end of period(a) | | $ | 128 | | | $ | 111 | | | $ | 128 | | | $ | 111 | |
Cash advances outstanding before allowance for losses(b) | | $ | 28,106 | | | $ | 16,028 | | | $ | 28,106 | | | $ | 16,028 | |
| Cash advance locations in operations — | | | | | | | | | | | | | | | | |
| Beginning of period | | | 181 | | | | 11 | | | | 154 | | | | 2 | |
| Acquired | | | 32 | | | | 121 | | | | 32 | | | | 121 | |
| Start-ups | | | 20 | | | | 13 | | | | 49 | | | | 22 | |
| Combined or closed | | | (3 | ) | | | — | | | | (5 | ) | | | — | |
| End of period | | | 230 | | | | 145 | | | | 230 | | | | 145 | |
| Average number of locations in operation | | | 198 | | | | 138 | | | | 177 | | | | 133 | |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA — CONTINUING OPERATIONS (Continued)
($ in thousands)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30,
| | September 30,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
CHECK CASHING OPERATIONS (Mr. Payroll)(d): | | | | | | | | | | | | | | | | |
| Face amount of checks cashed | | $ | 275,930 | | | $ | 262,163 | | | $ | 859,797 | | | $ | 827,757 | |
| Gross fees collected | | $ | 3,615 | | | $ | 3,558 | | | $ | 11,975 | | | $ | 11,695 | |
| Fees as a percentage of checks cashed | | | 1.3 | % | | | 1.4 | % | | | 1.4 | % | | | 1.4 | % |
| Average check cashed (not in thousands) | | $ | 364 | | | $ | 347 | | | $ | 378 | | | $ | 365 | |
| Centers in operation at end of period | | | 130 | | | | 134 | | | | 130 | | | | 134 | |
| Average centers in operation for period | | | 135 | | | | 137 | | | | 136 | | | | 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. |
| |
| (d) | | Includes franchised and company-owned locations. |
CONSOLIDATED CASH ADVANCES OUTSTANDING
($ in thousands)
| | | | | | | | | |
| | | September 30,
|
| | | 2004
| | 2003
|
Originated by the Company | | | | | | | | |
| Active cash advances and fees receivable | | $ | 23,553 | | | $ | 13,501 | |
| Cash advances and fees in collection | | | 5,651 | | | | 3,807 | |
| | | |
| | | |
| |
Total originated by the Company | | | 29,204 | | | | 17,308 | |
| | | |
| | | |
| |
Originated by banks | | | | | | | | |
| Active cash advances and fees receivable | | | 12,522 | | | | 8,144 | |
| Cash advances and fees in collection | | | 3,887 | | | | 2,576 | |
| | | |
| | | |
| |
Total originated by banks | | | 16,409 | | | | 10,720 | |
| | | |
| | | |
| |
Combined gross portfolio | | | 45,613 | | | | 28,028 | |
| Less: Elimination of cash advances owned by banks | | | 6,134 | | | | 995 | |
| Less: Discount on cash advances assigned by banks | | | 553 | | | | 477 | |
| | | |
| | | |
| |
| Company cash advances and fees receivable, gross | | | 38,926 | | | | 26,556 | |
| Less: Allowance for losses | | | 4,876 | | | | 3,835 | |
| | | |
| | | |
| |
Cash advances and fees receivable, net | | $ | 34,050 | | | $ | 22,721 | |
| | | |
| | | |
| |
Allowance for losses as a % of combined gross portfolio | | | 10.7 | % | | | 13.7 | % |
| | | |
| | | |
| |
CONSOLIDATED ALLOWANCE FOR LOSSES ON CASH ADVANCES
($ in thousands)
| | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Nine Months Ended |
| | | September 30,
| | September 30,
|
| | | 2004
| | 2003
| | 2004
| | 2003
|
| Balance at beginning of period | | $ | 4,965 | | | $ | 1,937 | | | $ | 3,448 | | | $ | 1,748 | |
| Cash advance loss provision | | | 7,021 | | | | 4,077 | | | | 15,440 | | | | 7,101 | |
| Charge-offs | | | (8,937 | ) | | | (2,871 | ) | | | (19,696 | ) | | | (7,275 | ) |
| Recoveries | | | 1,827 | | | | 692 | | | | 5,684 | | | | 2,261 | |
| | | |
| | | |
| | | |
| | | |
| |
| Balance at end of period | | $ | 4,876 | | | $ | 3,835 | | | $ | 4,876 | | | $ | 3,835 | |
| | | |
| | | |
| | | |
| | | |
| |
| Cash advance loss provision as a % of combined cash advances written | | | 4.0 | % | | | 4.4 | % | | | 3.5 | % | | | 4.1 | % |
| | | |
| | | |
| | | |
| | | |
| |
| Charge-offs (net of recoveries) as a % of combined cash advances written | | | 4.1 | % | | | 2.4 | % | | | 3.2 | % | | | 2.9 | % |
| | | |
| | | |
| | | |
| | | |
| |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM CONTINUING OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(in thousands)
| | | | | | | | | | | | | | | | | |
| | | (Unaudited)
|
| | | Pawn | | Cash | | Check | | |
| | | Lending
| | Advance
| | Cashing
| | Consolidated
|
| Three Months Ended September 30, 2004: | | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | | |
| Finance and service charges | | $ | 28,070 | | | $ | — | | | $ | — | | | $ | 28,070 | |
| Proceeds from disposition of merchandise | | | 53,814 | | | | — | | | | — | | | | 53,814 | |
| Cash advance fees | | | 8,822 | | | | 17,901 | | | | — | | | | 26,723 | |
| Check cashing royalties and fees | | | — | | | | 1,143 | | | | 786 | | | | 1,929 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Revenue | | | 90,706 | | | | 19,044 | | | | 786 | | | | 110,536 | |
| Cost of revenue — disposed merchandise | | | 33,588 | | | | — | | | | — | | | | 33,588 | |
| | | |
| | | |
| | | |
| | | |
| |
Net Revenue | | | 57,118 | | | | 19,044 | | | | 786 | | | | 76,948 | |
| | | |
| | | |
| | | |
| | | |
| |
Expenses | | | | | | | | | | | | | | | | |
| Operations | | | 32,971 | | | | 9,397 | | | | 332 | | | | 42,700 | |
| Cash advance loss provision | | | 2,601 | | | | 4,420 | | | | — | | | | 7,021 | |
| Administration | | | 6,962 | | | | 2,426 | | | | 229 | | | | 9,617 | |
| Depreciation and amortization | | | 2,978 | | | | 1,226 | | | | 123 | | | | 4,327 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Expenses | | | 45,512 | | | | 17,469 | | | | 684 | | | | 63,665 | |
| | | |
| | | |
| | | |
| | | |
| |
Income from Operations | | $ | 11,606 | | | $ | 1,575 | | | $ | 102 | | | $ | 13,283 | |
| | | |
| | | |
| | | |
| | | |
| |
As of September 30, 2004: | | | | | | | | | | | | | | | | |
| Total assets | | $ | 329,067 | | | $ | 98,144 | | | $ | 7,371 | | | $ | 434,582 | |
| | | |
| | | |
| | | |
| | | |
| |
Three Months Ended September 30, 2003: | | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | | |
| Finance and service charges | | $ | 25,720 | | | $ | — | | | $ | — | | | $ | 25,720 | |
| Proceeds from disposition of merchandise | | | 53,456 | | | | — | | | | — | | | | 53,456 | |
| Cash advance fees | | | 7,069 | | | | 7,444 | | | | — | | | | 14,513 | |
| Check cashing royalties and fees | | | — | | | | 525 | | | | 824 | | | | 1,349 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Revenue | | | 86,245 | | | | 7,969 | | | | 824 | | | | 95,038 | |
| Cost of revenue — disposed merchandise | | | 33,599 | | | | — | | | | — | | | | 33,599 | |
| | | |
| | | |
| | | |
| | | |
| |
Net Revenue | | | 52,646 | | | | 7,969 | | | | 824 | | | | 61,439 | |
| | | |
| | | |
| | | |
| | | |
| |
Expenses | | | | | | | | | | | | | | | | |
| Operations | | | 32,325 | | | | 3,989 | | | | 404 | | | | 36,718 | |
| Cash advance loss provision | | | 2,118 | | | | 1,959 | | | | — | | | | 4,077 | |
| Administration | | | 7,465 | | | | 863 | | | | 207 | | | | 8,535 | |
| Depreciation and amortization | | | 2,833 | | | | 505 | | | | 135 | | | | 3,473 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Expenses | | | 44,741 | | | | 7,316 | | | | 746 | | | | 52,803 | |
| | | |
| | | |
| | | |
| | | |
| |
Income from Operations | | $ | 7,905 | | | $ | 653 | | | $ | 78 | | | $ | 8,636 | |
| | | |
| | | |
| | | |
| | | |
| |
As of September 30, 2003: | | | | | | | | | | | | | | | | |
| Total assets | | $ | 302,884 | | | $ | 60,844 | | | $ | 7,743 | | | $ | 371,471 | |
| | | |
| | | |
| | | |
| | | |
| |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM CONTINUING OPERATIONS BY OPERATING SEGMENT
NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
(in thousands)
| | | | | | | | | | | | | | | | | |
| | | (Unaudited)
|
| | | Pawn | | Cash | | Check | | |
| | | Lending
| | Advance
| | Cashing
| | Consolidated
|
Nine Months Ended September 30, 2004:
| | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | | |
| Finance and service charges | | $ | 80,297 | | | $ | — | | | $ | — | | | $ | 80,297 | |
| Proceeds from disposition of merchandise | | | 172,557 | | | | — | | | | — | | | | 172,557 | |
| Cash advance fees | | | 23,450 | | | | 44,990 | | | | — | | | | 68,440 | |
| Check cashing royalties and fees | | | — | | | | 4,635 | | | | 2,768 | | | | 7,403 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Revenue | | | 276,304 | | | | 49,625 | | | | 2,768 | | | | 328,697 | |
| Cost of revenue — disposed merchandise | | | 105,755 | | | | — | | | | — | | | | 105,755 | |
| | | |
| | | |
| | | |
| | | |
| |
Net Revenue | | | 170,549 | | | | 49,625 | | | | 2,768 | | | | 222,942 | |
| | | |
| | | |
| | | |
| | | |
| |
Expenses | | | | | | | | | | | | | | | | |
| Operations | | | 99,283 | | | | 24,824 | | | | 1,053 | | | | 125,160 | |
| Cash advance loss provision | | | 6,021 | | | | 9,419 | | | | — | | | | 15,440 | |
| Administration | | | 23,313 | | | | 6,270 | | | | 724 | | | | 30,307 | |
| Depreciation and amortization | | | 8,727 | | | | 3,227 | | | | 361 | | | | 12,315 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Expenses | | | 137,344 | | | | 43,740 | | | | 2,138 | | | | 183,222 | |
| | | |
| | | |
| | | |
| | | |
| |
Income from Operations | | $ | 33,205 | | | $ | 5,885 | | | $ | 630 | | | $ | 39,720 | |
| | | | | | | | | | | | | | | | | |
Nine Months Ended September 30, 2003: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Revenue | | | | | | | | | | | | | | | | |
| Finance and service charges | | $ | 73,868 | | | $ | — | | | $ | — | | | $ | 73,868 | |
| Proceeds from disposition of merchandise | | | 168,162 | | | | — | | | | — | | | | 168,162 | |
| Cash advance fees | | | 19,707 | | | | 7,666 | | | | — | | | | 27,373 | |
| Check cashing royalties and fees | | | — | | | | 525 | | | | 2,735 | | | | 3,260 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Revenue | | | 261,737 | | | | 8,191 | | | | 2,735 | | | | 272,663 | |
| Cost of revenue — disposed merchandise | | | 105,086 | | | | — | | | | — | | | | 105,086 | |
| | | |
| | | |
| | | |
| | | |
| |
Net Revenue | | | 156,651 | | | | 8,191 | | | | 2,735 | | | | 167,577 | |
| | | |
| | | |
| | | |
| | | |
| |
Expenses | | | | | | | | | | | | | | | | |
| Operations | | | 96,751 | | | | 4,384 | | | | 1,211 | | | | 102,346 | |
| Cash advance loss provision | | | 5,055 | | | | 2,046 | | | | — | | | | 7,101 | |
| Administration | | | 22,161 | | | | 985 | | | | 565 | | | | 23,711 | |
| Depreciation and amortization | | | 8,523 | | | | 534 | | | | 379 | | | | 9,436 | |
| | | |
| | | |
| | | |
| | | |
| |
Total Expenses | | | 132,490 | | | | 7,949 | | | | 2,155 | | | | 142,594 | |
| | | |
| | | |
| | | |
| | | |
| |
Income from Operations | | $ | 24,161 | | | $ | 242 | | | $ | 580 | | | $ | 24,983 | |
| | | |
| | | |
| | | |
| | | |
| |
