Exhibit 99.1
Cash America Announces a 37% Increase in First Quarter Net Income Per Share and Declares Dividend
FORT WORTH, Texas--(BUSINESS WIRE)--Cash America International, Inc. (NYSE: CSH) announced today that net income for the first quarter ended March 31, 2008 increased 34% to $25,811,000 leading to a 37% increase in earnings per share (86 cents per share) compared to net income of $19,234,000 (63 cents per share) for the same period in 2007. Earnings per share for the first three months of 2008 exceeded management’s updated guidance of 80 to 82 cents per share as revised in a Company press release dated March 24, 2008, up from the initial announced guidance of 70 to 75 cents per share. Increased total revenue, led by fees related to pawn loans and cash advances, contributed to the higher than anticipated growth in income. Earnings benefited further from an improvement in the credit quality of the Company’s cash advance loan portfolio, which led to a decrease in the expense for loan losses in the first quarter of 2008 compared to the same period in 2007.
Total revenue increased 13% to $250.9 million for the three-month period ended March 31, 2008 compared to $222.9 million in the year ago period. Revenue from the Company’s pawn segment, which includes finance and service charges on pawn loans and proceeds from the sale of merchandise, increased 14% to $170.3 million from $149.6 million in year-over-year first quarter comparisons. The cash advance segment posted a 10% growth in revenue to $79.6 million from $72.1 million in the 2008 first quarter compared to the prior year.
Commenting on the first quarter results, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “Our Company’s first quarter results provide us with a solid start to the new fiscal year. We are pleased to report that the increase in the marginal profitability of our cash advance portfolio generated much higher levels of earnings as losses as a percent of fees moderated significantly while revenue continued to grow. Our pawn lending activities continue to perform well as loan demand has led to sustained growth in the portfolio. Pawn loan balances outstanding finished the first quarter up 11% from the prior year, well ahead of the pace at fiscal year end. Complementing the strength in the pawn loan portfolio is the success we have enjoyed in the sale of merchandise which produced an 18% increase in gross profit in the first quarter compared to the same period last year.”
Cash America will host a conference call to discuss the first quarter results on Thursday, April 24th at 7:45 AM CDT. A live web cast of the call will be available on the Investor Relations section 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. A replay will be available on the Company’s web site for 90 days following the conference call.
Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid at the close of business on May 21, 2008 to shareholders of record on May 7, 2008.
Outlook for the Second Quarter of 2008 and the 2008 Fiscal Year
Management believes that the opportunities for sustained growth in revenue and earnings will be largely associated with the customer demand for the credit products provided by the Company, which take the form of pawn loans and short-term cash advances. Other elements expected to affect the growth in revenue include the potential impact of the economic stimulus package on loan volumes and retail sales, the regulatory governance of loan products and the continued development and profitable growth of the Company’s online distribution channel for its cash advance products. As it enters the second quarter of 2008, management anticipates that demand for the Company’s products will remain strong. Based on its views and on the preceding factors, management expects that the second quarter 2008 net income per share will be between 51 and 54 cents per share compared to 43 cents per share in the second quarter 2007.
Management is also increasing its previously announced expectation for the full year 2008 earnings per share to between $3.00 and $3.15 per share compared to $2.48 per share in fiscal 2007. The 2007 full year earnings per share excludes an after-tax gain of 13 cents per share from a pre-tax gain of $6.3 million from the Company’s third quarter 2007 sale of notes receivable issued in connection with the sale of its overseas pawn lending business in 2004.
Cash America International, Inc. is a provider of specialty financial services to individuals in the United States with 939 total locations. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 499 locations in 23 states under the brand names Cash America Pawn and SuperPawn. The Company also offers short-term cash advances in many of its locations including 304 locations that offer this service under the brand names Cash America Payday Advance and Cashland. Short-term cash advances are also offered over the Internet to customers in 33 states in the United States and in the United Kingdom at http://www.cashnetusa.com and http://www.quickquid.co.uk, respectively. In addition, check cashing services are provided through its 136 franchised and Company-owned “Mr. Payroll” check cashing centers.
For additional information regarding the Company and the services it provides, visit the Company’s websites located at:
http://www.cashamerica.com | http://www.cashnetusa.com | ||||
| http://www.cashlandloans.com | http://www.quickquid.co.uk |
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
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 continued acceptance of the online distribution channel by the Company’s cash advance customers, the actions of third parties who offer products and services at the Company’s locations, changes in tax and other laws and governmental rules and regulations applicable to the Company’s business, fluctuations in the price of gold, 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 foreign currency exchange rates, changes in the capital markets, changes in tax and other laws and governmental rules and regulations applicable to the Company's businesses, the ability to successfully integrate newly acquired businesses into the Company’s operations and other risks indicated in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties are beyond Company’s control, and 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 | ||||||||
| March 31, | ||||||||
| 2008 | 2007 | |||||||
| Consolidated Operations: | ||||||||
| Total revenue | $ | 250,934 | $ | 222,872 | ||||
| Net revenue | 179,418 | 160,947 | ||||||
| Total operating expenses | 134,946 | 126,949 | ||||||
| Income from operations | $ | 44,472 | $ | 33,998 | ||||
| Income before income taxes | 40,990 | 30,712 | ||||||
| Net Income | $ | 25,811 | $ | 19,234 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 0.88 | $ | 0.64 | ||||
| Diluted | $ | 0.86 | $ | 0.63 | ||||
| Weighted average shares: | ||||||||
| Basic | 29,376 | 29,873 | ||||||
| Diluted | 29,995 | 30,602 | ||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | |||||||||||||||
| March 31, | December 31, | ||||||||||||||
| 2008 | 2007 | 2007 | |||||||||||||
| (Unaudited) | |||||||||||||||
| Assets | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and cash equivalents | $ | 22,637 | $ | 25,728 | $ | 22,725 | |||||||||
| Pawn loans | 124,775 | 112,009 | 137,319 | ||||||||||||
| Cash advances, net | 74,179 | 67,384 | 88,148 | ||||||||||||
| Merchandise held for disposition, net | 93,027 | 80,798 | 98,134 | ||||||||||||
| Finance and service charges receivable | 24,496 | 22,338 | 26,963 | ||||||||||||
| Other receivables and prepaid expenses | 17,944 | 19,058 | 16,292 | ||||||||||||
| Deferred tax assets | 19,198 | 17,609 | 20,204 | ||||||||||||
| Total current assets | 376,256 | 344,924 | 409,785 | ||||||||||||
| Property and equipment, net | 168,586 | 124,752 | 161,676 | ||||||||||||
| Goodwill | 347,434 | 238,836 | 306,221 | ||||||||||||
| Intangible assets, net | 22,424 | 26,564 | 23,484 | ||||||||||||
| Other assets | 5,185 | 12,810 | 3,478 | ||||||||||||
| Total assets | $ | 919,885 | $ | 747,886 | $ | 904,644 | |||||||||
| Liabilities and Stockholders’ Equity | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable and accrued expenses | $ | 60,921 | $ | 57,169 | $ | 65,399 | |||||||||
| Accrued supplemental acquisition payment | 63,213 | - | 22,000 | ||||||||||||
| Customer deposits | 8,682 | 8,358 | 7,856 | ||||||||||||
| Income taxes currently payable | 12,196 | 12,000 | 3,755 | ||||||||||||
| Current portion of long-term debt | 8,500 | 16,786 | 8,500 | ||||||||||||
| Total current liabilities | 153,512 | 94,313 | 107,510 | ||||||||||||
| Deferred tax liabilities | 20,482 | 13,483 | 18,584 | ||||||||||||
| Other liabilities | 1,806 | 1,573 | 1,671 | ||||||||||||
| Long-term debt | 224,970 | 181,330 | 280,277 | ||||||||||||
| Total liabilities | 400,770 | 290,699 | 408,042 | ||||||||||||
| 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 | 162,240 | 161,858 | 163,581 | ||||||||||||
| Retained earnings | 387,970 | 306,157 | 363,180 | ||||||||||||
| Accumulated other comprehensive (loss) income | (1 | ) | 9 | 16 | |||||||||||
| Notes receivable secured by common stock | - | (18 | ) | - | |||||||||||
Treasury shares, at cost (1,161,482 shares, 592,192 shares and 1,136,203 shares at March 31, 2008 and 2007, and December 31, 2007, respectively) | (34,118 | ) | (13,843 | ) | (33,199 | ) | |||||||||
| Total stockholders’ equity | 519,115 | 457,187 | 496,602 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 919,885 | $ | 747,886 | $ | 904,644 | |||||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2008 | 2007 | |||||||
| (Unaudited) | ||||||||
| Revenue | ||||||||
| Finance and service charges | $ | 43,421 | $ | 38,431 | ||||
| Proceeds from disposition of merchandise | 116,583 | 100,168 | ||||||
| Cash advance fees | 85,460 | 78,516 | ||||||
| Check cashing fees, royalties and other | 5,470 | 5,757 | ||||||
| Total Revenue | 250,934 | 222,872 | ||||||
| Cost of Revenue | ||||||||
| Disposed merchandise | 71,516 | 61,925 | ||||||
| Net Revenue | 179,418 | 160,947 | ||||||
| Expenses | ||||||||
| Operations | 79,722 | 72,868 | ||||||
| Cash advance loss provision | 27,134 | 32,748 | ||||||
| Administration | 18,959 | 13,799 | ||||||
| Depreciation and amortization | 9,131 | 7,534 | ||||||
| Total Expenses | 134,946 | 126,949 | ||||||
| Income from Operations | 44,472 | 33,998 | ||||||
| Interest expense | (3,509) | (3,748) | ||||||
| Interest income | 31 | 418 | ||||||
| Foreign currency transaction (loss) gain | (4) | 44 | ||||||
| Income before Income Taxes | 40,990 | 30,712 | ||||||
| Provision for income taxes | 15,179 | 11,478 | ||||||
| Net Income | $ | 25,811 | $ | 19,234 | ||||
| Earnings Per Share: | ||||||||
| Basic | $ | 0.88 | $ | 0.64 | ||||
| Diluted | $ | 0.86 | $ | 0.63 | ||||
| Weighted average common shares outstanding: | ||||||||
| Basic | 29,376 | 29,873 | ||||||
| Diluted | 29,995 | 30,602 | ||||||
| Dividends declared per common share | $ | 0.035 | $ | 0.035 | ||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA ($ in thousands unless otherwise noted) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2008 | 2007 | |||||||||
| PAWN LENDING OPERATIONS: | ||||||||||
| Pawn loans | ||||||||||
| Annualized yield on pawn loans | 135.0 | % | 131.8 | % | ||||||
| Total amount of pawn loans written and renewed | $ | 131,981 | $ | 110,622 | ||||||
| Average pawn loan balance outstanding | $ | 129,349 | $ | 118,242 | ||||||
| Average pawn loan balance per average location in operation | $ | 267 | $ | 248 | ||||||
| Ending pawn loan balance per location in operation | $ | 257 | $ | 235 | ||||||
| Average pawn loan amount at end of period (not in thousands) | $ | 117 | $ | 106 | ||||||
Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise | 38.7 | % | 38.2 | % | ||||||
| Average annualized merchandise turnover | 3.0x | 3.0x | ||||||||
Average balance of merchandise held for disposition per average location in operation | $ | 199 | $ | 178 | ||||||
Ending balance of merchandise held for disposition per location in operation | $ | 192 | $ | 169 | ||||||
| Pawnshop locations in operation – | ||||||||||
| Beginning of period, owned | 485 | 475 | ||||||||
| Acquired | - | 1 | ||||||||
| Start-ups | - | 1 | ||||||||
| End of period, owned | 485 | 477 | ||||||||
| Franchise locations at end of period | 14 | 12 | ||||||||
| Total pawnshop locations at end of period | 499 | 489 | ||||||||
| Average number of owned pawnshop locations | 485 | 477 | ||||||||
| Cash advances (b) | ||||||||||
| Pawn locations offering cash advances at end of period | 430 | 424 | ||||||||
| Average number of pawn locations offering cash advances | 431 | 423 | ||||||||
| Amount of cash advances written at pawn locations: | ||||||||||
| Funded by the Company | $ | 13,947 | $ | 15,486 | ||||||
Funded by third-party lenders (a)(d) | 37,996 | 44,985 | ||||||||
Aggregate amount of cash advances written at pawn locations(a)(f) | $ | 51,943 | $ | 60,471 | ||||||
| Number of cash advances written at pawn locations (not in thousands): | ||||||||||
| By the Company | 45,146 | 50,268 | ||||||||
By third-party lenders (a)(d) | 80,389 | 98,126 | ||||||||
Aggregate number of cash advances written at pawn locations (a)(f) | 125,535 | 148,394 | ||||||||
| Cash advance customer balances due at pawn locations (gross): | ||||||||||
Owned by Company (c) | $ | 6,852 | $ | 6,439 | ||||||
Owned by third-party lenders (a)(d) | 6,788 | 7,800 | ||||||||
Aggregate cash advance customer balances due at pawn locations (gross) (a)(f) | $ | 13,640 | $ | 14,239 | ||||||
CASH ADVANCE OPERATIONS (e): | ||||||||||
| Storefront operations: | ||||||||||
| Amount of cash advances written: | ||||||||||
| Funded by the Company | $ | 153,062 | $ | 157,756 | ||||||
Funded by third-party lenders (a)(d) | 25,564 | 27,079 | ||||||||
Aggregate amount of cash advances written (a)(f) | $ | 178,626 | $ | 184,835 | ||||||
| Number of cash advances written (not in thousands): | ||||||||||
| By the Company | 418,597 | 428,951 | ||||||||
By third-party lenders (a)(d) | 45,709 | 50,363 | ||||||||
Aggregate number of cash advances written (a)(f) | 464,306 | 479,314 | ||||||||
| Cash advance customer balances due (gross): | ||||||||||
Owned by the Company (c) | $ | 39,181 | $ | 40,277 | ||||||
Owned by third-party lenders (a)(d) | 4,114 | 4,229 | ||||||||
Aggregate cash advance customer balances due (gross) (a)(f) | $ | 43,295 | $ | 44,506 | ||||||
| Cash advance locations in operation (excluding online lending) – | ||||||||||
| Beginning of period | 304 | 295 | ||||||||
| Start-ups | - | 2 | ||||||||
| Combined or closed | - | (1 | ) | |||||||
| End of period | 304 | 296 | ||||||||
| Average number of cash advance locations | 304 | 295 | ||||||||
| Internet lending operations: | ||||||||||
| Amount of cash advances written: | ||||||||||
| Funded by the Company | $ | 159,921 | $ | 128,494 | ||||||
Funded by third-party lenders (a)(d) | 98,543 | 70,024 | ||||||||
Aggregate amount of cash advances written (a)(f) | $ | 258,464 | $ | 198,518 | ||||||
| Number of cash advances written (not in thousands): | ||||||||||
| By the Company | 389,416 | 329,315 | ||||||||
By third-party lenders (a)(d) | 148,947 | 127,737 | ||||||||
Aggregate number of cash advances written (a)(f) | 538,363 | 457,052 | ||||||||
| Cash advance customer balances due (gross): | ||||||||||
Owned by the Company (c) | $ | 48,961 | $ | 43,809 | ||||||
Owned by third-party lenders (a)(d) | 18,567 | 12,993 | ||||||||
Aggregate cash advance customer balances due (gross) (a)(f) | $ | 67,528 | $ | 56,802 | ||||||
| Number of states with online lending at end of period | 33 | 30 | ||||||||
| Number of foreign countries with online lending at end of period | 1 | - | ||||||||
| Combined Storefront and Internet lending operations: | ||||||||||
| Amount of cash advances written: | ||||||||||
| Funded by the Company | $ | 312,983 | $ | 286,250 | ||||||
Funded by third-party lenders (a)(d) | 124,107 | 97,103 | ||||||||
Aggregate amount of cash advances written (a)(f) | $ | 437,090 | $ | 383,353 | ||||||
| Number of cash advances written (not in thousands): | ||||||||||
| By the Company | 808,013 | 758,266 | ||||||||
By third-party lenders (a)(d) | 194,656 | 178,100 | ||||||||
Aggregate number of cash advances written (a)(f) | 1,002,669 | 936,366 | ||||||||
| Cash advance customer balances due (gross): | ||||||||||
Owned by the Company (c) | $ | 88,142 | $ | 84,086 | ||||||
Owned by third-party lenders (a)(d) | 22,681 | 17,222 | ||||||||
Aggregate cash advance customer balances due (gross) (a)(f) | $ | 110,823 | $ | 101,308 | ||||||
CONSOLIDATED CASH ADVANCE PRODUCT SUMMARY (a)(b)(e): | ||||||||||
| Amount of cash advances written: | ||||||||||
| Funded by the Company | $ | 326,930 | $ | 301,736 | ||||||
Funded by third-party lenders (a)(d) | 162,103 | 142,088 | ||||||||
Aggregate amount of cash advances written (a)(f) | $ | 489,033 | $ | 443,824 | ||||||
| Number of cash advances written (not in thousands): | ||||||||||
| By the Company | 853,159 | 808,534 | ||||||||
By third-party lenders (a)(d) | 275,045 | 276,226 | ||||||||
Aggregate number of cash advances written (a)(f) | 1,128,204 | 1,084,760 | ||||||||
| Average amount per cash advance written (not in thousands): | ||||||||||
| By the Company | $ | 383 | $ | 373 | ||||||
By third-party lenders (a)(d) | 589 | 514 | ||||||||
Aggregate number of cash advances written (a)(f) | $ | 433 | $ | 409 | ||||||
| Cash advance customer balances due (gross): | ||||||||||
Owned by the Company (c) | $ | 94,994 | $ | 90,525 | ||||||
Owned by third-party lenders (a)(d) | 29,469 | 25,022 | ||||||||
Aggregate cash advance customer balances due (gross) (a)(f) | $ | 124,463 | $ | 115,547 | ||||||
Total locations offering cash advances at end of period (excluding online lending) | 734 | 720 | ||||||||
| Average total locations offering cash advances (excluding online lending) | 735 | 718 | ||||||||
| Number of states with online lending at end of period | 33 | 30 | ||||||||
| Number of foreign countries with online lending at end of period | 1 | - | ||||||||
| CHECK CASHING OPERATIONS (Mr. Payroll): | ||||||||||
| Centers in operation at end of year (not in thousands): | ||||||||||
| Company-owned locations | 5 | 5 | ||||||||
Franchised locations (a) | 131 | 135 | ||||||||
Combined centers in operations at end of year (a) | 136 | 140 | ||||||||
| Revenue from Company-owned locations | $ | 122 | $ | 161 | ||||||
| Revenue from franchise royalties and other | 898 | 979 | ||||||||
Total revenue (c) | $ | 1,020 | $ | 1,140 | ||||||
| Face amount of checks cashed: | ||||||||||
| Company-owned locations | $ | 7,674 | $ | 9,610 | ||||||
Franchised locations (a) | 362,136 | 367,221 | ||||||||
Combined face amount of checks cashed (a) | $ | 369,810 | $ | 376,831 | ||||||
| Fees collected from customers: | ||||||||||
Company-owned locations (c) | $ | 122 | $ | 161 | ||||||
Franchised locations (a) | 5,370 | 5,446 | ||||||||
Combined fees collected from customers (a) | $ | 5,492 | $ | 5,607 | ||||||
| Fees as a percentage of checks cashed: | ||||||||||
| Company-owned locations | 1.6 | % | 1.7 | % | ||||||
Franchised locations (a) | 1.5 | 1.5 | ||||||||
Combined fees as a percentage of checks cashed (a) | 1.5 | % | 1.5 | % | ||||||
| Average check cashed (not in thousands): | ||||||||||
| Company-owned locations | $ | 416 | $ | 428 | ||||||
Franchised locations (a) | 517 | 494 | ||||||||
Combined average check cashed (a) | $ | 514 | $ | 492 | ||||||
(a) Non-GAAP presentation. For informational purposes and to provide a greater understanding of the Company’s businesses. Management believes that information provided with this level of detail is meaningful and useful in understanding the activities and business metrics of the Company’s operations. | |
(b) Includes cash advance activities at the Company’s pawn lending locations. | |
(c) Amounts recorded in the Company’s consolidated financial statements. | |
(d) Cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn locations, cash advance locations and through the internet distribution channel.
| |
(e) Includes cash advance activities at the Company’s cash advance storefront locations and through the Company’s internet distribution channel.
| |
(f) Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn and cash advance locations and through the Company’s internet distribution channel. | |
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED CASH ADVANCES OUTSTANDING AND RELATED ALLOWANCE FOR LOSSES (in thousands) | ||||||||||
| March 31, | ||||||||||
| 2008 | 2007 | |||||||||
| Funded by the Company (a) | ||||||||||
| Active cash advances and fees receivable | $ | 63,952 | $ | 57,077 | ||||||
| Cash advances and fees in collection | 21,104 | 21,436 | ||||||||
| Total funded by the Company (a) | 85,056 | 78,513 | ||||||||
Funded by third-party lenders (b)(c) | ||||||||||
| Active cash advances and fees receivable | 29,469 | 25,022 | ||||||||
| Cash advances and fees in collection | 9,938 | 12,012 | ||||||||
Total funded by third-party lenders (b)(c) | 39,407 | 37,034 | ||||||||
Combined gross portfolio (b)(d) | 124,463 | 115,547 | ||||||||
| Less: Elimination of cash advances owned by third-party lenders | 29,469 | 25,022 | ||||||||
| Company-owned cash advances and fees receivable, gross | 94,994 | 90,525 | ||||||||
| Less: Allowance for losses | 20,815 | 23,141 | ||||||||
| Cash advances and fees receivable, net | $ | 74,179 | $ | 67,384 | ||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2008 | 2007 | |||||||||
| Allowance for company-owned cash advances | ||||||||||
| Balance at beginning of period | $ | 25,676 | $ | 19,513 | ||||||
| Cash advance loss provision | 26,974 | 32,648 | ||||||||
| Charge-offs | (40,822 | ) | (32,511 | ) | ||||||
| Recoveries | 8,987 | 3,491 | ||||||||
| Balance at end of period | $ | 20,815 | $ | 23,141 | ||||||
| Accrual for third-party lender-owned cash advances | ||||||||||
| Balance at beginning of period | $ | 1,828 | $ | 1,153 | ||||||
Increase in loss provision | 160 | 100 | ||||||||
| Balance at end of period | $ | 1,988 | $ | 1,253 | ||||||
| Combined statistics (d) | ||||||||||
| Combined cash advance loss provision | $ | 27,134 | $ | 32,748 | ||||||
Combined cash advance loss provision as a % of combined cash advances written (b) | 5.5 | % | 7.4 | % | ||||||
Charge-offs (net of recoveries) as a % of combined cash advances written (b) | 6.5 | % | 6.5 | % | ||||||
Combined allowance for losses and accrued third-party lender losses as a % of combined gross portfolio (b) | 18.3 | % | 21.1 | % | ||||||
(a) Cash advances written by the Company for its own account in pawn locations, cash advance locations, and through the internet distribution channel. |
(b) Non-GAAP presentation. For informational purposes and to provide a greater understanding of the Company’s businesses. Management believes that information provided with this level of detail is meaningful and useful in understanding the activities and business metrics of the Company’s operations. |
(c) Cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn locations, cash advance locations and through the internet distribution channel. |
(d) Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn and cash advance locations and through the Company’s internet distribution channel. |
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED MARCH 31, 2008 AND 2007 (in thousands) | ||||||||||||
Pawn | Cash | Check | Consolidated | |||||||||
Three months ended March 31, 2008: | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 43,421 | $ | - | $ | - | $ | 43,421 | ||||
| Proceeds from disposition of merchandise | 116,583 | - | - | 116,583 | ||||||||
| Cash advance fees | 9,285 | 76,175 | - | 85,460 | ||||||||
| Check cashing fees, royalties and other | 1,013 | 3,437 | 1,020 | 5,470 | ||||||||
| Total revenue | 170,302 | 79,612 | 1,020 | 250,934 | ||||||||
| Cost of revenue – disposed merchandise | 71,516 | - | - | 71,516 | ||||||||
| Net revenue | 98,786 | 79,612 | 1,020 | 179,418 | ||||||||
| Expenses | ||||||||||||
| Operations | 52,908 | 26,431 | 383 | 79,722 | ||||||||
| Cash advance loss provision | 2,265 | 24,869 | - | 27,134 | ||||||||
| Administration | 11,675 | 7,071 | 213 | 18,959 | ||||||||
| Depreciation and amortization | 5,591 | 3,476 | 64 | 9,131 | ||||||||
| Total expenses | 72,439 | 61,847 | 660 | 134,946 | ||||||||
| Income from operations | $ | 26,347 | $ | 17,765 | $ | 360 | $ | 44,472 | ||||
As of March 31, 2008: | ||||||||||||
| Total assets | $ | 581,817 | $ | 331,449 | $ | 6,619 | $ | 919,885 | ||||
| Goodwill | $ | 143,556 | $ | 198,568 | $ | 5,310 | $ | 347,434 | ||||
Three months ended March 31, 2007: | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 38,431 | $ | - | $ | - | $ | 38,431 | ||||
| Proceeds from disposition of merchandise | 100,168 | - | - | 100,168 | ||||||||
| Cash advance fees | 10,120 | 68,396 | - | 78,516 | ||||||||
| Check cashing fees, royalties and other | 930 | 3,687 | 1,140 | 5,757 | ||||||||
| Total revenue | 149,649 | 72,083 | 1,140 | 222,872 | ||||||||
| Cost of revenue – disposed merchandise | 61,925 | - | - | 61,925 | ||||||||
| Net revenue | 87,724 | 72,083 | 1,140 | 160,947 | ||||||||
| Expenses | ||||||||||||
| Operations | 47,618 | 24,943 | 307 | 72,868 | ||||||||
| Cash advance loss provision | 2,844 | 29,904 | - | 32,748 | ||||||||
| Administration | 8,820 | 4,702 | 277 | 13,799 | ||||||||
| Depreciation and amortization | 5,007 | 2,426 | 101 | 7,534 | ||||||||
| Total expenses | 64,289 | 61,975 | 685 | 126,949 | ||||||||
| Income from operations | $ | 23,435 | $ | 10,108 | $ | 455 | $ | 33,998 | ||||
As of March 31, 2007: | ||||||||||||
| Total assets | $ | 526,088 | $ | 214,648 | $ | 7,150 | $ | 747,886 | ||||
| Goodwill | $ | 142,052 | $ | 91,474 | $ | 5,310 | $ | 238,836 | ||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED MARCH 31, 2008 AND 2007 (in thousands) | ||||||||||||
(1) The Cash Advance segment is comprised of two distribution channels for the same product, a multi-unit, “storefront” platform of 304 units and an on-line, internet based lending platform. The following table summarizes the results from each channel’s contributions to the Cash Advance segment as of March 31, 2008 and 2007: | ||||||||||||
Storefront | Internet | Total Cash | ||||||||||
Three months ended March 31, 2008: | ||||||||||||
| Revenue | ||||||||||||
| Cash advance fees | $ | 28,693 | $ | 47,482 | $ | 76,175 | ||||||
| Check cashing fees, royalties and other | 3,437 | - | 3,437 | |||||||||
| Total revenue | 32,130 | 47,482 | 79,612 | |||||||||
| Expenses | ||||||||||||
| Operations | 16,881 | 9,550 | 26,431 | |||||||||
| Cash advance loss provision | 4,346 | 20,523 | 24,869 | |||||||||
| Administration | 2,402 | 4,669 | 7,071 | |||||||||
| Depreciation and amortization | 2,425 | 1,051 | 3,476 | |||||||||
| Total expenses | 26,054 | 35,793 | 61,847 | |||||||||
| Income from operations | $ | 6,076 | $ | 11,689 | $ | 17,765 | ||||||
Three months ended March 31, 2008: | ||||||||||||
| Total assets | $ | 110,511 | $ | 220,938 | $ | 331,449 | ||||||
| Goodwill | $ | 44,618 | $ | 153,950 | $ | 198,568 | ||||||
Three months ended March 31, 2007: | ||||||||||||
| Revenue | ||||||||||||
| Cash advance fees | $ | 29,741 | $ | 38,655 | $ | 68,396 | ||||||
| Check cashing fees, royalties and other | 3,685 | 2 | 3,687 | |||||||||
| Total revenue | 33,426 | 38,657 | 72,083 | |||||||||
| Expenses | ||||||||||||
| Operations | 15,910 | 9,033 | 24,943 | |||||||||
| Cash advance loss provision | 7,232 | 22,672 | 29,904 | |||||||||
| Administration | 2,305 | 2,397 | 4,702 | |||||||||
| Depreciation and amortization | 1,883 | 543 | 2,426 | |||||||||
| Total expenses | 27,330 | 34,645 | 61,975 | |||||||||
| Income from operations | $ | 6,096 | $ | 4,012 | $ | 10,108 | ||||||
As of March 31, 2007: | ||||||||||||
| Total assets | $ | 116,527 | $ | 98,121 | $ | 214,648 | ||||||
| Goodwill | $ | 44,618 | $ | 46,856 | $ | 91,474 | ||||||
CONTACT:
Cash America International, Inc.
Thomas A. Bessant, Jr., 817-335-1100