Exhibit 99.1
Cash America First Quarter Net Income Increases 34% And Declares Dividend
FORT WORTH, Texas--(BUSINESS WIRE)--April 22, 2010--Cash America International, Inc. (NYSE: CSH) announced today that net income attributable to the Company for the first quarter ended March 31, 2010 increased 34% to $32,033,000 ($1.01 per share) compared to net income of $23,911,000 (79 cents per share) for the same period in 2009. Earnings per share for the first three months of 2010 exceeded the high end of management’s publicly released expectation of 94 cents per share for the first quarter, as reported in the Company’s press release dated January 28, 2010. Increased total revenue, led by better than expected results from the Company’s cash advance operating segment and strong performance by its U.S. pawn lending business, produced the higher first quarter results.
Consolidated total revenue increased 17% to $313.1 million for the three-month period ended March 31, 2010 compared to $268.1 million in the same period in 2009. Revenue from the Company’s cash advance segment increased 40% to $108.7 million during the first quarter of 2010, compared to $77.6 million during the same period in 2009 led by strong demand for the Company’s loan products. While the cash advance segment experienced a significant increase in new customer loan volume and total revenue, loss rates for the Company’s consolidated cash advance product remained relatively flat compared to the first quarter last year at 5.2% of combined cash advances written during the first quarter of 2010 compared to 5.1% during the same period in 2009. Also contributing to the growth in consolidated revenue was a 9% increase in the disposition of merchandise in the quarter, and a 10% increase in finance and service charges on pawn loans both led by the Company’s dominant business of U.S. pawn related activities.
Commenting on the first quarter results, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “The performance of all our lending businesses contributed to the successful first quarter results. We were particularly pleased to see the continued progress of our storefront cash advance locations as those stores are now offering a full array of financial products and services, including pawn loans and gold buying. During the first quarter of 2010 we began testing retail sales in these locations as well.”
Cash America will host a conference call to discuss the first quarter results on Thursday, April 22nd at 7:00 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 prior to the call 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 shares outstanding. The dividend will be paid at the close of business on May 19, 2010 to shareholders of record on May 5, 2010.
Outlook for the Second Quarter of 2010 and the 2010 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. During the first quarter of 2010, the typical seasonal decline in loan balances was greater than expected, partly because of an increase in the amount of Federal Income Tax refunds received by many of our customers. Typically, customers use a portion of these refunds to pay back existing loans and for the purchase of merchandise. During the second quarter, loan balances typically recover due to seasonal factors, and the rate of this increase has a significant influence on second quarter results. Other elements expected to affect the growth in revenue include the potential impact of the regulatory governance of loan products, the continued growth and development of the Mexican pawn operations and the development and expansion of the Company’s online and card based distribution channels for its cash advance products. While the Company intends to maintain its current underwriting standards, higher loan demand for the cash advance product could lead to higher loan losses associated with the difficult consumer economic environment. Based on its views and on the preceding factors, management expects that the second quarter 2010 earnings per share will be between 63 and 69 cents per share compared to 54 cents per share in the second quarter 2009. Management updates and raises its previously reported expectations for its fiscal year 2010 earnings per share to a range of between $3.55 and $3.70 which compares to actual full year 2009 earnings per share of $3.17.
Management has removed cash advance related revenue and associated earnings for two markets which impacts the full year estimated results, specifically Arizona, as of July 1, 2010 and Maryland, as of October 1, 2010. In both of these markets, changes in legislation will make the economics of the cash advance product unfavorable. While the Company intends to evaluate alternative products in those states to continue to serve customers in need of short-term credit, at this time management feels there is too much uncertainty to retain the revenue and earnings in its forward looking estimates.
About the Company
As of March 31, 2010, Cash America International, Inc. had 1,048 total locations offering specialty financial services to consumers, including 686 pawn lending locations (including nine unconsolidated franchised locations) consisting of 502 locations operating in 22 states in the United States under the names “Cash America Pawn” and “SuperPawn” and 184 pawn lending locations, of which the Company is a majority owner, operating in 21 states in central and southern Mexico under the name “Prenda Fácil.” In addition, as of March 31, 2010, the Company had 238 cash advance storefront locations operating in six states in the United States under the names “Cash America Payday Advance” and “Cashland” and 119 unconsolidated franchised and five Company-owned check cashing centers operating in 16 states in the United States under the name “Mr. Payroll.” Additionally, as of March 31, 2010, the Company offered short-term cash advances over the Internet to customers in 33 states in the United States at http://www.cashnetusa.com, in the United Kingdom at http://www.quickquid.co.uk, in Australia at http://www.dollarsdirect.com.au, and in Canada at http://www.dollarsdirect.ca. The Company also owns a card services business that processes cash advances on behalf of a third-party lender with balances outstanding in all 50 states and four other United States jurisdictions (Guam, Puerto Rico, Virgin Islands and Washington D.C.) as of March 31, 2010.
For additional information regarding the Company and the services it provides, visit the Company’s websites located at:
http://www.cashamerica.com | | http://www.quickquid.co.uk |
http://www.enovafinancial.com | | http://www.dollarsdirect.com.au |
http://www.cashnetusa.com | | http://www.dollarsdirect.ca |
http://www.cashlandloans.com | | http://www.strikegoldnow.com |
http://www.primaryinnovations.net | | http://www.mrpayroll.com |
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 pawn, consumer credit, tax and other laws and governmental rules and regulations applicable to the Company's business, 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 to or for the Company, fluctuations in the price of gold, changes in competition, the ability of the Company to open new operating units in accordance with its plans, changes in economic conditions, real estate market fluctuations, interest rate fluctuations, changes in foreign currency exchange rates, changes in the capital markets, the ability to successfully integrate newly acquired businesses into the Company’s operations, the loss of services of any of the Company’s executive officers, the effect of any current or future litigation proceedings on the Company, acts of God, war or terrorism, pandemics and other events, the effect of any of such changes on the Company’s business or the markets in which it operates and other risks and uncertainties 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, nor can the Company predict, in many cases, 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,” “should,” “could,” “would,” “plans,” “expects,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations 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, |
| 2010 | | 2009 |
| Consolidated Operations: | | | | | |
| Total revenue | $ | 313,062 | | $ | 268,099 |
| Net revenue | | 223,117 | | | 185,597 |
| Total operating expenses | | 166,678 | | | 142,118 |
| | | | | |
| Income from operations | $ | 56,439 | | $ | 43,479 |
| | | | | |
| Income before income taxes | | 50,853 | | | 38,289 |
| | | | | |
| Net Income | $ | 32,051 | | $ | 24,226 |
| | | | | |
| Less: Net income attributable to the noncontrolling interest | | (18) | | | (315) |
| | | | | |
| Net Income Attributable to Cash America International, Inc. | $ | 32,033 | | $ | 23,911 |
| | | | | |
| Earnings per share: | | | | | |
| | | | | |
| Net Income attributable to Cash America International, Inc. common stockholders: |
| | | | | |
| Basic | $ | 1.08 | | $ | 0.80 |
| Diluted | $ | 1.01 | | $ | 0.79 |
| | | | | |
| Weighted average shares: | | | | | |
| Basic | | 29,687 | | | 29,770 |
| Diluted | | 31,735 | | | 30,419 |
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS |
| (in thousands, except per share data) |
| | | | | | | | |
| | March 31, | | December 31, |
| | 2010 | | | 2009 | | 2009 |
| | (Unaudited) | | | |
| | | | | | | | |
| Assets | | | | | | | | |
| Current assets: | | | | | | | | |
| Cash and cash equivalents | $ | 40,286 | | $ | 25,676 | | $ | 46,004 |
| Pawn loans | | 158,347 | | | 148,147 | | | 188,312 |
| Cash advances, net | | 99,021 | | | 75,880 | | | 108,789 |
| Merchandise held for disposition, net | | 97,870 | | | 99,799 | | | 113,824 |
| Pawn finance and service charges receivable | | 30,597 | | | 28,709 | | | 36,544 |
| Prepaid expenses and other assets | | 39,592 | | | 18,745 | | | 32,129 |
| Deferred tax assets | | 20,386 | | | 19,301 | | | 21,536 |
| Total current assets | | 486,099 | | | 416,257 | | | 547,138 |
| Property and equipment, net | | 192,592 | | | 186,622 | | | 193,737 |
| Goodwill | | 509,004 | | | 489,779 | | | 493,492 |
| Intangible assets, net | | 27,187 | | | 31,456 | | | 27,793 |
| Other assets | | 7,442 | | | 5,498 | | | 7,495 |
| Total assets | $ | 1,222,324 | | $ | 1,129,612 | | $ | 1,269,655 |
| | | | | | | | |
| Liabilities and Equity | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable and accrued expenses | $ | 71,408 | | $ | 69,288 | | $ | 87,368 |
| Accrued supplemental acquisition payment | | 11,365 | | | 7,700 | | | 2,291 |
| Customer deposits | | 9,731 | | | 10,133 | | | 8,837 |
| Income taxes currently payable | | 14,673 | | | 3,687 | | | 8,699 |
| Current portion of long-term debt | | 25,493 | | | 18,714 | | | 25,493 |
| Total current liabilities | | 132,670 | | | 109,522 | | | 132,688 |
| Deferred tax liabilities | | 44,877 | | | 31,042 | | | 42,590 |
| Noncurrent income tax payable | | 2,191 | | | 2,968 | | | 2,009 |
| Other liabilities | | 7,148 | | | 3,942 | | | 5,479 |
| Long-term debt | | 313,794 | | | 380,902 | | | 403,690 |
| Total liabilities | | 500,680 | | $ | 528,376 | | $ | 586,456 |
| | | | | | | | |
| Equity: | | | | | | | | |
| Cash America International, Inc. 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 | | 163,796 | | | 158,216 | | | 166,761 |
| Retained earnings | | 563,803 | | | 463,131 | | | 532,805 |
| Accumulated other comprehensive loss | | 5,807 | | | (6,107) | | | 1,181 |
| Treasury shares, at cost (725,531 shares, 753,207 shares and | | | | | | | | |
| 933,082 shares at March 31, 2010 and 2009 | | | | | | | | |
| at December 31, 2009, respectively | | (21,429) | | | (21,919) | | | (26,836) |
| Total Cash America International, Inc. stockholders’ equity | | 715,001 | | | 596,345 | | | 676,935 |
| Noncontrolling interest | | 6,643 | | | 4,891 | | | 6,264 |
| Total equity | | 721,644 | | | 601,236 | | | 683,199 |
| Total liabilities and equity | $ | 1,222,324 | | $ | 1,129,612 | | $ | 1,269,655 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) |
| | |
| | Three Months Ended |
| | March 31, |
| | 2010 | | | 2009 |
| | (Unaudited) |
| | | | | |
| Revenue | | | | | |
| Finance and service charges | $ | 58,281 | | $ | 52,959 |
| Proceeds from disposition of merchandise | | 141,883 | | | 129,760 |
| Cash advance fees | | 108,442 | | | 80,308 |
| Check cashing fees, royalties and other | | 4,456 | | | 5,072 |
| Total Revenue | | 313,062 | | | 268,099 |
| Cost of Revenue | | | | | |
| Disposed merchandise | | 89,945 | | | 82,502 |
| Net Revenue | | 223,117 | | | 185,597 |
| Expenses | | | | | |
| Operations | | 96,378 | | | 85,522 |
| Cash advance loss provision | | 33,893 | | | 24,774 |
| Administration | | 25,689 | | | 21,481 |
| Depreciation and amortization | | 10,718 | | | 10,341 |
| Total Expenses | | 166,678 | | | 142,118 |
| Income from Operations | | 56,439 | | | 43,479 |
| Interest expense | | (5,457) | | | (5,069) |
| Interest income | | 8 | | | 15 |
| Foreign currency transaction gain (loss) | | (137) | | | (136) |
| Income before Income Taxes | | 50,853 | | | 38,289 |
| Provision for income taxes | | 18,802 | | | 14,063 |
| Net Income | | 32,051 | | | 24,226 |
| Less: Net income attributable to the noncontrolling interest | | (18) | | | (315) |
| Net Income Attributable to Cash America International, Inc. | $ | 32,033 | | $ | 23,911 |
| Earnings Per Share: | | | | | |
| Net Income attributable to Cash America International, Inc. common stockholders: | | | | | |
| Basic | $ | 1.08 | | $ | 0.80 |
| Diluted | $ | 1.01 | | $ | 0.79 |
| Weighted average common shares outstanding: | | | | | |
| Basic | | 29,687 | | | 29,770 |
| Diluted | | 31,735 | | | 30,419 |
| Dividends declared per common share | $ | 0.035 | | $ | 0.035 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
| | | | | | | |
| | | Three Months Ended |
| | | March 31, |
| | | 2010 | | | 2009 |
| Location statistics | | | | | |
| | | | | | |
| Pawn segment locations in operation – (e) | | | | | |
| Beginning of period, owned | | 667 | | | 598 |
| Acquired | | 3 | | | 1 |
| Start-ups | | 10 | | | 14 |
| Combined or closed | | (3) | | | - |
| End of period, owned | | 677 | | | 613 |
| Franchise locations at end of period (a) | | 9 | | | 15 |
| Total pawn lending locations at end of period (a) (e) | | 686 | | | 628 |
| Average number of owned pawn lending locations (e) | | 670 | | | 605 |
| | | | | | |
| Cash advance segment locations in operation (excludes internet lending and card services) – | | | | | |
| Beginning of period | | 246 | | | 248 |
| Combined or closed | | (8) | | | - |
| End of period | | 238 | | | 248 |
| Average number of cash advance storefront locations | | 243 | | | 248 |
| | | | | | |
| Check cashing segment locations – | | | | | |
| Company-owned locations at end of period | | 5 | | | 5 |
| Franchised locations at end of period (a) | | 119 | | | 123 |
| Total check cashing centers in operation at end of period (a) | | 124 | | | 128 |
| Combined total of all locations at end of period (a) | | 1,048 | | | 1,004 |
| | | | | | |
| Services offered by location | | | | | |
| | | | | | |
| Pawn lending – | | | | | |
| Pawn lending segment: | | | | | |
| Domestic | | 493 | | | 486 |
| Foreign (e) | | 184 | | | 127 |
| Franchise – domestic (a) | | 9 | | | 15 |
| Combined pawn lending segment (a) (e) | | 686 | | | 628 |
| Cash advance segment – storefront operations | | 147 | | | 85 |
| Total locations offering pawn lending (a) (e) | | 833 | | | 713 |
| | | | | | |
| Cash advances – | | | | | |
| Cash advance segment – storefront operations | | 238 | | | 248 |
| Pawn lending segment – domestic | | 436 | | | 431 |
| Total locations offering cash advances | | 674 | | | 679 |
| | | | | | |
| Check cashing – | | | | | |
| Check cashing segment | | | | | |
| Company-owned locations | | 5 | | | 5 |
| Franchised locations (a) | | 119 | | | 123 |
| Total check cashing segment (a) | | 124 | | | 128 |
| Cash advance segment – storefront operations | | 238 | | | 248 |
| Pawn lending segment – domestic | | 362 | | | 369 |
| Total locations offering check cashing (a) | | 724 | | | 745 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
| | | | | | | | |
| | | Three Months Ended | |
| | | March 31, | |
| | | 2010 | | | 2009 | |
| Pawn lending activities(f) | | | | | | |
| Annualized yield on pawn loans - | | | | | | |
| Pawn lending segment: | | | | | | |
| Domestic | | 140.1 | | % | 135.7 | % |
| Foreign (e) | | 131.5 | | % | 158.5 | % |
| Combined pawn lending segment (e) | | 138.9 | | % | 138.1 | % |
| Cash advance segment – storefront operations | | 78.0 | | % | 104.5 | % |
| Combined annualized yield on pawn loans (e) | | 138.3 | | % | 138.1 | % |
| Amount of pawn loans written and renewed - | | | | | | |
| Pawn lending segment: | | | | | | |
| Domestic | $ | 140,729 | | $ | 136,032 | |
| Foreign (e) | | 21,030 | | | 23,809 | |
| Combined pawn lending segment (e) | $ | 161,759 | | $ | 159,841 | |
| Cash advance segment – storefront operations | | 1,307 | | | 72 | |
| Combined amount of pawn loans written and renewed (e) | $ | 163,066 | | $ | 159,913 | |
| Average pawn loan balance outstanding - | | | | | | |
| Pawn lending segment: | | | | | | |
| Domestic | $ | 146,233 | | $ | 138,938 | |
| Foreign (e) | | 22,871 | | | 16,541 | |
| Combined pawn lending segment (e) | $ | 169,104 | | $ | 155,479 | |
| Cash advance segment – storefront operations | | 1,830 | | | 18 | |
| Combined average pawn loan balance outstanding (e) | $ | 170,934 | | $ | 155,497 | |
| Ending pawn loan balance - | | | | | | |
| Pawn lending segment: | | | | | | |
| Domestic | $ | 133,752 | | $ | 130,558 | |
| Foreign (e) | | 22,827 | | | 17,518 | |
| Combined pawn lending segment (e) | $ | 156,579 | | $ | 148,076 | |
| Cash advance segment – storefront operations | | 1,768 | | | 71 | |
| Combined ending pawn loan balance (e) | $ | 158,347 | | $ | 148,147 | |
| Ending pawn loan balance per location offering pawn loans - | | | | | | |
| Pawn lending segment : | | | | | | |
| Domestic | $ | 271 | | $ | 269 | |
| Foreign (e) | $ | 124 | | $ | 138 | |
| Combined pawn lending segment (e) | $ | 231 | | $ | 242 | |
| Cash advance segment - storefront operations | $ | 12 | | $ | 1 | |
| Combined ending pawn loan balance per location offering pawn loans (e) | $ | 192 | | $ | 212 | |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
| | | | | | | | |
| | | Three Months Ended | |
| | | March 31, | |
| | | 2010 | | | 2009 | |
| Average pawn loan amount at end of period (not in thousands) - | | | | | | |
| Pawn lending segment: | | | | | | |
| Domestic | $ | 125 | | $ | 122 | |
| Foreign (e) | $ | 115 | | $ | 93 | |
| Combined pawn lending segment (e) | $ | 124 | | $ | 118 | |
| Cash advance segment – storefront operations | $ | 118 | | $ | 96 | |
| Combined average pawn loan amount at end of period (e) | $ | 124 | | $ | 118 | |
| | | | | | | |
| Disposition of merchandise – domestic – (g) | | | | | | |
| Profit margin on disposition of merchandise | | | | | | |
| Pawn lending segment – domestic | | 36.5 | | % | 36.5 | % |
| Cash advance segment – storefront operations | | 39.9 | | % | 33.2 | % |
| Combined profit margin on disposition of merchandise | | 36.6 | | % | 36.4 | % |
| Average annualized merchandise turnover | | | | | | |
| Pawn lending segment – domestic | | 3.3 | | x | 3.1 | x |
| Cash advance segment – storefront operations | | 15.7 | | x | 24.0 | x |
| Combined average annualized merchandise turnover | | 3.4 | | x | 3.2 | x |
| Disposition of merchandise - pawn lending segment – domestic -(g) | | | | | | |
| | | | | | | |
| Average balance of merchandise held for disposition per average | $ | 218 | | $ | 216 | |
| location in operation | | | | | | |
| Ending balance of merchandise held for disposition per location in | $ | 197 | | $ | 205 | |
| operation | | | | | | |
| | | | | | | |
| Cash advance activities(f) | | | | | | |
| | | | | | | |
| Amount of cash advances written –(a) (c) | | | | | | |
| Funded by the Company | | | | | | |
| | | | | | | |
| Cash advance segment - storefront | $ | 146,813 | | $ | 137,757 | |
| Cash advance segment - internet lending | | 184,654 | | | 157,709 | |
| Total cash advance segment | $ | 331,467 | | $ | 295,466 | |
| Pawn lending segment - domestic | | 13,658 | | | 13,880 | |
| Combined funded by the Company | $ | 345,125 | | $ | 309,346 | |
| | | | | | | |
| Funded by third-party lenders (a) (b) | | | | | | |
| | | | | | | |
| Cash advance segment - storefront | $ | 20,562 | | $ | 20,114 | |
| Cash advance segment - internet lending | | 177,481 | | | 107,918 | |
| Cash advance segment - card services | | 82,877 | | | 19,787 | |
| Total cash advance segment | $ | 280,920 | | $ | 147,819 | |
| Pawn lending segment - domestic | | 27,508 | | | 30,764 | |
| Combined funded by third-party lenders (a) (b) | $ | 308,428 | | $ | 178,583 | |
| | | | | | | |
| Aggregate amount of cash advances written - (a) (c) | | | | | | |
| | | | | | | |
| Cash advance segment - storefront | $ | 167,375 | | $ | 157,871 | |
| Cash advance segment - internet lending | | 362,135 | | | 265,627 | |
| Cash advance segment - card services | | 82,877 | | | 19,787 | |
| Total cash advance segment | $ | 612,387 | | $ | 443,285 | |
| Pawn lending segment - domestic | | 41,166 | | | 44,644 | |
| Combined aggregate amount of cash advances written(a) (c) | $ | 653,553 | | $ | 487,929 | |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
| | | | | | |
| | | | | Three Months Ended |
| | | | | March 31, |
| | | | | 2010 | | | 2009 |
| Number of cash advances written (not in thousands) –(a) (c) | | | | | | | |
| Funded by the Company | | | | | | | |
| | | | | | | | |
| Cash advance segment - storefront | | | | 324,277 | | | 309,849 |
| Cash advance segment - internet lending | | | | 448,305 | | | 390,023 |
| Total cash advance segment | | | | 772,582 | | | 699,872 |
| Pawn lending segment – domestic | | | | 40,775 | | | 41,835 |
| Combined by the Company | | | | 813,357 | | | 741,707 |
| Funded by third-party lenders (a) (b) | | | | | | | |
| | | | | | | | |
| Cash advance segment - storefront | | | | 32,804 | | | 33,978 |
| Cash advance segment - internet lending | | | | 251,837 | | | 146,576 |
| Cash advance segment - card services | | | | 425,763 | | | 125,160 |
| Total cash advance segment | | | | 710,404 | | | 305,714 |
| Pawn lending segment - domestic | | | | 50,167 | | | 56,882 |
| Combined by third-party lenders (a) (b) | | | | 760,571 | | | 362,596 |
| Aggregate number of cash advances written - (a) (c) | | | | | | | |
| | | | | | | | |
| Cash advance segment - storefront | | | | 357,081 | | | 343,827 |
| Cash advance segment - internet lending | | | | 700,142 | | | 536,599 |
| Cash advance segment - card services | | | | 425,763 | | | 125,160 |
| Total cash advance segment | | | | 1,482,986 | | | 1,005,586 |
| Pawn lending segment - domestic | | | | 90,942 | | | 98,717 |
| Combined aggregate number of cash advances written (a) (c) | | | | 1,573,928 | | | 1,104,303 |
| Cash advance customer balances (gross):(a) (c) | | | | | | | |
| Owned by Company (d) | | | | | | | |
| | | | | | | | |
| Cash advance segment - storefront | | | $ | 33,607 | | $ | 31,066 |
| Cash advance segment - internet lending | | | | 71,142 | | | 51,866 |
| Cash advance segment - card services | | | | 15,032 | | | 4,740 |
| Total cash advance segment | | | $ | 119,781 | | $ | 87,672 |
| Pawn lending segment - domestic | | | | 5,063 | | | 5,486 |
| Combined owned by the Company(d) | | | $ | 124,844 | | $ | 93,158 |
| Owned by third-party lenders (a) (b) | | | | | | | |
| | | | | | | | |
| Cash advance segment - storefront | | | $ | 3,382 | | $ | 3,228 |
| Cash advance segment - internet lending | | | | 32,548 | | | 19,649 |
| Cash advance segment - card services | | | | 1,670 | | | 458 |
| Total cash advance segment | | | $ | 37,600 | | $ | 23,335 |
| Pawn lending segment - domestic | | | | 5,069 | | | 5,465 |
| Combined owned by third-party lenders (a) (b) | | | $ | 42,669 | | $ | 28,800 |
| Aggregate cash advance customer balances (gross) - (a) (c) | | | | | | | |
| | | | | | | | |
| Cash advance segment - storefront | | | $ | 36,989 | | $ | 34,294 |
| Cash advance segment - internet lending | | | | 103,690 | | | 71,515 |
| Cash advance segment - card services | | | | 16,702 | | | 5,198 |
| Total cash advance segment | | | $ | 157,381 | | $ | 111,007 |
| Pawn lending segment - domestic | | | | 10,132 | | | 10,951 |
| Combined aggregate cash advance customer balances (gross) (a) (c) | | | $ | 167,513 | | $ | 121,958 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
| | | | |
| | | Three Months Ended |
| | | March 31, |
| | | 2010 | | | 2009 |
| | | | | | |
| Average amount per cash advance written (not in thousands) - (a) (c) | | | | | |
| Funded by the Company | | | | | |
| | | | | | |
| Cash advance segment - storefront | $ | 453 | | $ | 445 |
| Cash advance segment - internet lending | $ | 412 | | $ | 404 |
| Total cash advance segment | $ | 429 | | $ | 422 |
| Pawn lending segment - domestic | $ | 335 | | $ | 332 |
| Combined by the Company | $ | 424 | | $ | 417 |
| | | | | | |
| Funded by third-party lenders (a) (b) | | | | | |
| | | | | | |
| Cash advance segment - storefront | $ | 627 | | $ | 592 |
| Cash advance segment - internet lending | $ | 705 | | $ | 736 |
| Cash advance segment - card services | $ | 195 | | $ | 158 |
| Total cash advance segment | $ | 395 | | $ | 484 |
| Pawn lending segment - domestic | $ | 548 | | $ | 541 |
| Combined by third-party lenders (a) (b) | $ | 406 | | $ | 493 |
| | | | | | |
| Aggregate average amount per cash advance written -(a) (c) | | | | | |
| | | | | | |
| Cash advance segment - storefront | $ | 469 | | $ | 459 |
| Cash advance segment - internet lending | $ | 517 | | $ | 495 |
| Cash advance segment - card services | $ | 195 | | $ | 158 |
| Total cash advance segment | $ | 413 | | $ | 441 |
| Pawn lending segment - domestic | $ | 453 | | $ | 452 |
| Combined aggregate average amount per cash advance written(a) (c) | $ | 415 | | $ | 442 |
| | | | | | |
| Check cashing activities | | | | | |
| | | | | | |
| Face amount of checks cashed - (a) | | | | | |
| Company-owned locations: | | | | | |
| Check cashing segment | $ | 7,342 | | $ | 6,703 |
| Cash advance segment | | 39,887 | | | 62,139 |
| Pawn lending segment | | 7,273 | | | 8,077 |
| Combined company-owned locations | | 54,502 | | | 76,919 |
| Franchised locations - check cashing segment (a) | | 297,593 | | | 323,898 |
| Combined face amount of checks cashed (a) | $ | 352,095 | | $ | 400,817 |
| | | | | | |
| Fees collected from customers - (a) | | | | | |
| Company-owned locations: | | | | | |
| Check cashing segment | $ | 92 | | $ | 110 |
| Cash advance segment | | 1,215 | | | 1,592 |
| Pawn lending segment | | 146 | | | 166 |
| Combined company-owned locations | | 1,453 | | | 1,868 |
| Franchised locations - check cashing segment (a) | | 4,408 | | | 4,816 |
| Combined fees collected from customers (a) | $ | 5,861 | | $ | 6,684 |
| | | | | | |
| Fees as a percentage of checks cashed - (a) | | | | | |
| Company-owned locations: | | | | | |
| Check cashing segment | | 1.3 | | % | 1.5 |
| Cash advance segment | | 3.0 | | | 2.6 |
| Pawn lending segment | | 2.0 | | | 2.1 |
| Combined company-owned locations | | 2.7 | | | 2.4 |
| Franchised locations - check cashing segment(a) | | 1.5 | | | 1.5 |
| Combined fees as a percentage of checks cashed (a) | | 1.7 | | % | 1.7 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
| | | | |
| | | | Three Months Ended |
| | | | March 31, |
| | | | 2010 | | | 2009 |
| Average check cashed (not in thousands) –(a) | | | | | | |
| Company-owned locations: | | | | | | |
| Check cashing segment | | $ | 437 | | $ | 461 |
| Cash advance segment | | $ | 717 | | $ | 691 |
| Pawn lending segment | | $ | 511 | | $ | 520 |
| Combined company-owned locations | | $ | 629 | | $ | 641 |
| Franchised locations – check cashing segment (a) | | $ | 551 | | $ | 544 |
| Combined average check cashed(a) | | $ | 562 | | $ | 560 |
| |
(a) | Non –generally accepted accounting principles (“Non-GAAP”) presentation. The Non-GAAP financial measure is provided immediately following its most comparable generally accepted accounting principles (“GAAP”) amount and can be reconciled to its most comparable GAAP amount through the presentation of the financial information above. |
(b) | Includes (i) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders through the CSO program offered in certain states in the Company’s storefront and internet channels, and (ii) line of credit advances issued by a third-party lender utilizing the Company or other parties to process these cash advances under a line of credit offered by such lender on certain stored-value and payroll cards issued by such lender. In its card services channel, the Company acquires a participation interest in the receivables originated by the third party lender, and cash advance fees associated with the Company’s card services activities include revenue from the Company’s participation interest in the line of credit receivables originated by the third party lender, as well as processing and other miscellaneous fee income. |
(c) | Includes cash advances written by the Company as well as the cash advance products described in footnote (b) above. |
(d) | Amounts recorded in the Company’s consolidated financial statements. |
(e) | Includes all Prenda Fácil locations, of which the Company is a majority owner due to the Prenda Fácil acquisition, from the date of acquisition on December 16, 2008. All amounts shown are translated from Mexican pesos into U.S. dollars at the exchange rates in effect for the three months ended or at March 31, 2010, as applicable. |
(f) | Excludes franchised locations. |
(g) | Excludes Prenda Fácil pawn lending locations because the collateral underlying unredeemed loans is not owned by the Company. |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED CASH ADVANCES OUTSTANDING AND RELATED ALLOWANCE FOR LOSSES (in thousands) |
| | | | |
| | | Balance at March 31, |
| | | 2010 | | 2009 |
| | | | | |
| Funded by the Company (a) | | | | |
| Active cash advances and fees receivable | $ | 78,836 | $ | 64,362 |
| Cash advances and fees in collection | | 17,558 | | 15,075 |
| Total funded by the Company (a) | | 96,394 | | 79,437 |
| Funded by third-party lenders(b) (c) | | | | |
| Active cash advances and fees receivable | | 55,489 | | 32,117 |
| Cash advances and fees in collection | | 15,630 | | 10,404 |
| Total funded by third-party lenders(b) (c) | | 71,119 | | 42,521 |
| Combined gross portfolio of cash advances and fees receivable(b) (d) | | 167,513 | | 121,958 |
| Less: Elimination of cash advances owned by third-party lenders | | 42,669 | | 28,800 |
| Company-owned cash advances and fees receivable, gross | | 124,844 | | 93,158 |
| Less: Allowance for losses | | 25,823 | | 17,278 |
| Cash advances and fees receivable, net | $ | 99,021 | $ | 75,880 |
| | | Three months ended |
| | | March 31, |
| | | 2010 | | | 2009 |
| | | | | | |
| Allowance for losses for Company-owned cash advances | | | | | |
| | | | | | |
| Balance at beginning of period | | $ | 27,350 | | $ | 21,495 |
| Cash advance loss provision | | | 34,544 | | | 25,387 |
| Charge-offs | | | (44,242) | | | (34,926) |
| Recoveries | | | 8,171 | | | 5,322 |
| | | | | | |
| Balance at end of period | | $ | 25,823 | | $ | 17,278 |
| | | | | | |
| Accrual for third-party lender-owned cash advances | | | | | | |
| | | | | | |
| Balance at beginning of period | | $ | 2,944 | | $ | 2,135 |
| (Decrease) increase in loss provision | | | (651) | | | (613) |
| | | | | | |
| Balance at end of period | | $ | 2,293 | | $ | 1,522 |
| Combined cash advance loss provision | | $ | 33,893 | | $ | 24,774 |
| Charge-offs (net of recoveries) | | | 36,071 | | | 29,604 |
| Combined cash advance loss provision as a % of combined | | | | | | |
| cash advances written (b) | | | 5.2% | | | 5.1% |
| Charge-offs (net of recoveries) as a % of combined cash | | | | | | |
| advances written (b) | | | 5.5% | | | 6.1% |
| Combined allowance for losses and accrued third-party | | | | | | |
| lender losses as a % of combined gross portfolio (b) | | | 16.8% | | | 15.4% |
| (a) | Cash advances written by the Company in its pawn and cash advance locations and through the internet distribution channel. |
| (b) | Non-GAAP presentation. Management evaluates the cash advance portfolio on an aggregate basis including the loss provision for the Company-owned and the third-party lender-owned portfolio that the Company guarantees. The non-GAAP financial measure is provided immediately following its most comparable GAAP amount and can be reconciled to its most comparable GAAP amount through the presentation of the financial information above. |
| (c) | Cash advances written by third-party lenders that were marketed, processed, or arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn and cash advance locations and through the internet and card services channels. |
| (d) | Includes cash advances written by the Company, as well as the cash advance products described in footnote (c) above. |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (in thousands) |
| | | | | | | | | | | | |
| | | Pawn Lending (1) | | | Cash Advance (2) | | | Check Cashing | | | Consolidated |
| | | | | | | | | | | | |
| Three Months Ended March 31, 2010 | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | |
| Finance and service charges | | $ | 57,931 | | $ | 350 | | $ | - | | $ | 58,281 |
| Proceeds from disposition of merchandise | | | 137,540 | | | 4,343 | | | - | | | 141,883 |
| Cash advance fees | | | 7,022 | | | 101,420 | | | - | | | 108,442 |
| Check cashing fees, royalties and other | | | 1,016 | | | 2,616 | | | 824 | | | 4,456 |
| Total revenue | | | 203,509 | | | 108,729 | | | 824 | | | 313,062 |
| Cost of revenue – disposed merchandise | | | 87,335 | | | 2,610 | | | - | | | 89,945 |
| Net revenue | | | 116,174 | | | 106,119 | | | 824 | | | 223,117 |
| Expenses | | | | | | | | | | | | |
| Operations | | | 61,831 | | | 34,247 | | | 300 | | | 96,378 |
| Cash advance loss provision | | | 1,027 | | | 32,866 | | | - | | | 33,893 |
| Administration | | | 12,066 | | | 13,410 | | | 213 | | | 25,689 |
| Depreciation and amortization | | | 7,327 | | | 3,354 | | | 37 | | | 10,718 |
| Total expenses | | | 82,251 | | | 83,877 | | | 550 | | | 166,678 |
| Income from operations | | $ | 33,923 | | $ | 22,242 | | $ | 274 | | $ | 56,439 |
| As of March 31, 2010 | | | | | | | | | | | | |
| Total assets | | $ | 735,922 | | $ | 479,864 | | $ | 6,538 | | $ | 1,222,324 |
| Goodwill | | $ | 210,782 | | $ | 292,912 | | $ | 5,310 | | $ | 509,004 |
| | | | | | | | | | | | |
| | | Pawn Lending (1) | | | Cash Advance (2) | | | Check Cashing | | | Consolidated |
| | | | | | | | | | | | |
| Three Months Ended March 31, 2009 | | | | | | | | | | | | |
| Revenue | | | | | | | | | | | | |
| Finance and service charges | | $ | 52,954 | | $ | 5 | | $ | - | | $ | 52,959 |
| Proceeds from disposition of merchandise | | | 128,002 | | | 1,758 | | | - | | | 129,760 |
| Cash advance fees | | | 7,578 | | | 72,730 | | | - | | | 80,308 |
| Check cashing fees, royalties and other | | | 1,043 | | | 3,097 | | | 932 | | | 5,072 |
| Total revenue | | | 189,577 | | | 77,590 | | | 932 | | | 268,099 |
| Cost of revenue – disposed merchandise | | | 81,329 | | | 1,173 | | | - | | | 82,502 |
| Net revenue | | | 108,248 | | | 76,417 | | | 932 | | | 185,597 |
| Expenses | | | | | | | | | | | | |
| Operations | | | 57,596 | | | 27,591 | | | 335 | | | 85,522 |
| Cash advance loss provision | | | 1,222 | | | 23,552 | | | - | | | 24,774 |
| Administration | | | 11,757 | | | 9,482 | | | 242 | | | 21,481 |
| Depreciation and amortization | | | 7,097 | | | 3,161 | | | 83 | | | 10,341 |
| Total expenses | | | 77,672 | | | 63,786 | | | 660 | | | 142,118 |
| Income from operations | | $ | 30,576 | | $ | 12,631 | | $ | 272 | | $ | 43,479 |
| As of March 31, 2009 | | | | | | | | | | | | |
| Total assets | | $ | 708,295 | | $ | 414,502 | | $ | 6,815 | | $ | 1,129,612 |
| Goodwill | | $ | 205,214 | | $ | 279,255 | | $ | 5,310 | | $ | 489,779 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (in thousands) |
(1) The pawn lending segment is composed of the Company’s domestic pawn lending operations and Prenda Fácil. The following table summarizes the results from each channel’s contributions to the pawn lending segment for the three months ended March 31, 2010 and 2009. The average exchange rate of MXN (Mexican pesos) to USD was 12.875 for the three months ended March 31, 2010 and 14.291 for the three months ended March 31, 2009: |
| | | | | | |
| | Domestic | | Foreign | | Total Pawn Lending |
| | | | | | |
| Three Months Ended March 31, 2010 | | | | | | |
| Revenue | | | | | | |
| Finance and service charges | $ | 50,512 | $ | 7,419 | $ | 57,931 |
| Proceeds from disposition of merchandise | | 137,540 | | - | | 137,540 |
| Cash advance fees | | 7,022 | | - | | 7,022 |
| Check cashing fees, royalties and other | | 983 | | 33 | | 1,016 |
| Total revenue | | 196,057 | | 7,452 | | 203,509 |
| Cost of revenue – disposed merchandise | | 87,335 | | - | | 87,335 |
| Net revenue | | 108,722 | | 7,452 | | 116,174 |
| Expenses | | | | | | |
| Operations | | 58,088 | | 3,743 | | 61,831 |
| Cash advance loss provision | | 1,027 | | - | | 1,027 |
| Administration | | 10,087 | | 1,979 | | 12,066 |
| Depreciation and amortization | | 6,184 | | 1,143 | | 7,327 |
| Total expenses | | 75,386 | | 6,865 | | 82,251 |
| Income from operations | $ | 33,336 | $ | 587 | $ | 33,923 |
| | | | | | |
| | Domestic | | Foreign | | Total Pawn Lending |
| | | | | | |
| Three Months Ended March 31, 2009 | | | | | | |
| Revenue | | | | | | |
| Finance and service charges | $ | 46,491 | $ | 6,463 | $ | 52,954 |
| Proceeds from disposition of merchandise | | 128,002 | | - | | 128,002 |
| Cash advance fees | | 7,578 | | - | | 7,578 |
| Check cashing fees, royalties and other | | 974 | | 69 | | 1,043 |
| Total revenue | | 183,045 | | 6,532 | | 189,577 |
| Cost of revenue – disposed merchandise | | 81,329 | | - | | 81,329 |
| Net revenue | | 101,716 | | 6,532 | | 108,248 |
| Expenses | | | | | | |
| Operations | | 55,185 | | 2,411 | | 57,596 |
| Cash advance loss provision | | 1,222 | | - | | 1,222 |
| Administration | | 10,277 | | 1,480 | | 11,757 |
| Depreciation and amortization | | 6,269 | | 828 | | 7,097 |
| Total expenses | | 72,953 | | 4,719 | | 77,672 |
| Income from operations | $ | 28,763 | $ | 1,813 | $ | 30,576 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (in thousands) |
(2) The cash advance segment is composed of three channels - a multi-unit “storefront” channel, an online, internet based lending channel, and a card services channel. The following table summarizes the results from each channel’s contributions to the cash advance segment for the three months ended March 31, 2010 and 2009: |
| | | | | | | | | | | | |
| Three Months Ended March 31, 2010 | | | Storefront | | | Internet Lending | | | Card Services | | | Total Cash Advance |
| Revenue | | | | | | | | | | | | |
| Finance and service charges | | $ | 350 | | $ | - | | $ | - | | $ | 350 |
| Proceeds from disposition of merchandise | | | 4,343 | | | - | | | - | | | 4,343 |
| Cash advance fees | | | 20,522 | | | 73,925 | | | 6,973 | | | 101,420 |
| Check cashing fees, royalties and other | | | 2,300 | | | 313 | | | 3 | | | 2,616 |
| Total revenue | | | 27,515 | | | 74,238 | | | 6,976 | | | 108,729 |
| Cost of revenue – disposed merchandise | | | 2,610 | | | - | | | - | | | 2,610 |
| Net revenue | | | 24,905 | | | 74,238 | | | 6,976 | | | 106,119 |
| Expenses | | | | | | | | | | | | |
| Operations | | | 14,710 | | | 18,712 | | | 825 | | | 34,247 |
| Cash advance loss provision | | | 1,959 | | | 28,684 | | | 2,223 | | | 32,866 |
| Administration | | | 2,156 | | | 11,073 | | | 181 | | | 13,410 |
| Depreciation and amortization | | | 1,323 | | | 1,827 | | | 204 | | | 3,354 |
| Total expenses | | | 20,148 | | | 60,296 | | | 3,433 | | | 83,877 |
| Income from operations | | $ | 4,757 | | $ | 13,942 | | $ | 3,543 | | $ | 22,242 |
| | | | | | | | | | | | |
| Three Months Ended March 31, 2009 | | | Storefront | | | Internet Lending | | | Card Services | | | Total Cash Advance |
| Revenue | | | | | | | | | | | | |
| Finance and service charges | | $ | 5 | | $ | - | | $ | - | | $ | 5 |
| Proceeds from disposition of merchandise | | | 1,758 | | | - | | | - | | | 1,758 |
| Cash advance fees | | | 19,134 | | | 51,756 | | | 1,840 | | | 72,730 |
| Check cashing fees, royalties and other | | | 2,887 | | | 208 | | | 2 | | | 3,097 |
| Total revenue | | | 23,784 | | | 51,964 | | | 1,842 | | | 77,590 |
| Cost of revenue – disposed merchandise | | | 1,173 | | | - | | | - | | | 1,173 |
| Net revenue | | | 22,611 | | | 51,964 | | | 1,842 | | | 76,417 |
| Expenses | | | | | | | | | | | | |
| Operations | | | 15,368 | | | 11,292 | | | 931 | | | 27,591 |
| Cash advance loss provision | | | 2,662 | | | 20,152 | | | 738 | | | 23,552 |
| Administration | | | 2,119 | | | 7,266 | | | 97 | | | 9,482 |
| Depreciation and amortization | | | 1,435 | | | 1,610 | | | 116 | | | 3,161 |
| Total expenses | | | 21,584 | | | 40,320 | | | 1,882 | | | 63,786 |
| Income from operations | | $ | 1,027 | | $ | 11,644 | | $ | (40) | | $ | 12,631 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (in thousands) |
The Company’s cash advance segment is composed of domestic operations, consisting of cash advance storefront locations and internet lending operations, and foreign operations, consisting of internet lending operations in the United Kingdom, Australia and Canada. The following table summarizes the results from each component’s contributions to the Internet Lending channel for the three months ended March 31, 2010 and 2009: |
| | | | | | | | | |
| | | Domestic | | | Foreign | | | Total Cash Advance Segment |
| | | | | | | | | |
| Three Months Ended March 31, 2010 | | | | | | | | | |
| Revenue | | | | | | | | | |
| Finance and service charges | | $ | 350 | | $ | - | | $ | 350 |
| Proceeds from disposition of merchandise | | | 4,343 | | | - | | | 4,343 |
| Cash advance fees | | | 83,156 | | | 18,264 | | | 101,420 |
| Check cashing fees, royalties and other | | | 2,616 | | | - | | | 2,616 |
| Total revenue | | | 90,465 | | | 18,264 | | | 108,729 |
| Cost of revenue – disposed merchandise | | | 2,610 | | | - | | | 2,610 |
| Net revenue | | | 87,855 | | | 18,264 | | | 106,119 |
| Expenses | | | | | | | | | |
| Operations | | | 28,348 | | | 5,899 | | | 34,247 |
| Cash advance loss provision | | | 25,372 | | | 7,494 | | | 32,866 |
| Administration | | | 10,163 | | | 3,247 | | | 13,410 |
| Depreciation and amortization | | | 3,295 | | | 59 | | | 3,354 |
| Total expenses | | | 67,178 | | | 16,699 | | | 83,877 |
| Income from operations | | $ | 20,677 | | $ | 1,565 | | $ | 22,242 |
| | | | | | | | | |
| | | Domestic | | | Foreign | | | Total Cash Advance Segment |
| | | | | | | | | |
| Three Months Ended March 31, 2009 | | | | | | | | | |
| Revenue | | | | | | | | | |
| Finance and service charges | | $ | 5 | | $ | - | | $ | 5 |
| Proceeds from disposition of merchandise | | | 1,758 | | | - | | | 1,758 |
| Cash advance fees | | | 66,974 | | | 5,756 | | | 72,730 |
| Check cashing fees, royalties and other | | | 3,097 | | | - | | | 3,097 |
| Total revenue | | | 71,834 | | | 5,756 | | | 77,590 |
| Cost of revenue – disposed merchandise | | | 1,173 | | | - | | | 1,173 |
| Net revenue | | | 70,661 | | | 5,756 | | | 76,417 |
| Expenses | | | | | | | | | |
| Operations | | | 25,513 | | | 2,078 | | | 27,591 |
| Cash advance loss provision | | | 20,458 | | | 3,094 | | | 23,552 |
| Administration | | | 8,492 | | | 990 | | | 9,482 |
| Depreciation and amortization | | | 3,152 | | | 9 | | | 3,161 |
| Total expenses | | | 57,615 | | | 6,171 | | | 63,786 |
| Income from operations | | $ | 13,046 | | $ | (415) | | $ | 12,631 |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INVENTORY DATA THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (in thousands) |
| |
The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.7 million at March 31, 2010 and 2009 (dollars in thousands). |
| | |
| Balance at March 31, | |
| 2010 | | | 2009 | |
| | Amount | | % | | | | Amount | | % | |
| | | | | | | | | | | |
| Merchandise held for 1 year or less – | | | | | | | | | | | |
| Jewelry | $ | 64,268 | | 65.2 | % | | $ | 67,967 | | 67.6 | % |
| Other merchandise | | 26,933 | | 27.3 | | | | 24,477 | | 24.4 | |
| | | | | | | | | | | |
| Total merchandise held for 1 year or less | | 91,201 | | 92.5 | | | | 92,444 | | 92.0 | |
| Merchandise held for more than 1 year – | | | | | | | | | | | |
| Jewelry | | 4,449 | | 4.5 | | | | 5,192 | | 5.2 | |
| Other merchandise | | 2,920 | | 3.0 | | | | 2,863 | | 2.8 | |
| | | | | | | | | | | |
| Total merchandise held for more than 1 year | | 7,369 | | 7.5 | | | | 8,055 | | 8.0 | |
| | | | | | | | | | | |
| Total merchandise held for disposition | $ | 98,570 | | 100.0 | % | | $ | 100,499 | | 100.0 | % |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES MERCHANDISE DISPOSITION AND GROSS PROFIT OPERATING DATA THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (in thousands) |
| |
The following table summarizes the proceeds from the disposition of merchandise and the related profit for the three months ended March 31, 2010 and 2009: |
| |
| Three Months Ended March 31, |
| 2010 | | 2009 |
| | Merchan- | | | Refined | | | | | | | Merchan- | | | Refined | | | | |
| | dise | | | Gold | | | Total | | | | dise | | | Gold | | | Total | |
| Proceeds from disposition | $ | 86,143 | | $ | 55,740 | | $ | 141,883 | | | $ | 80,145 | | $ | 49,615 | | $ | 129,760 | |
| Profit on disposition | $ | 33,490 | | $ | 18,448 | | $ | 51,938 | | | $ | 31,610 | | $ | 15,648 | | $ | 47,258 | |
| Profit margin | | 38.9 | % | | 33.1 | % | | 36.6 | % | | | 39.4 | % | | 31.5 | % | | 36.4 | % |
| Percentage of total profit | | 64.5 | % | | 35.5 | % | | 100.0 | % | | | 66.9 | % | | 33.1 | % | | 100.0 | % |
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CASH EARNINGS PER SHARE
THREE MONTHS ENDED MARCH 31, 2010 AND 2009
(in thousands, except per share data)
Cash Earnings Per Share
The Company provides adjusted cash earnings and adjusted cash earnings per share, which are non-GAAP measures, to provide investors with an indication of the Company’s ability to generate cash earnings through ongoing operations. Adjusted cash earnings and adjusted cash earnings per share show the impact of equity-based compensation, amortization of intangibles and amortization of discount and issuance costs on convertible debt, net of taxes, all of which are non-cash items. The Company does consider the dilutive impact to its shareholders when awarding equity-based compensation and values such awards accordingly. The use of adjusted cash earnings has limitations since it does not include all expenses related to the Company’s employees. Specifically, if the Company did not pay out a portion of its compensation in the form of equity-based compensation, the Company’s cash salary expense would be higher, and adjusted cash earnings would be lower. Equity-based compensation programs are an important element of the Company’s compensation structure, and all forms of equity-based awards are valued and included, as appropriate, in results of operations. The following table provides a reconciliation between net income attributable to Cash America International, Inc. and diluted earnings per share calculated in accordance with GAAP to adjusted cash earnings and adjusted cash earnings per share, respectively:
| |
| Three Months Ended |
| March 31, |
| | 2010 | | 2009 |
| $ | | Per Share | | $ | | Per Share |
| | | | | | | | | | | |
| Net income attributable to Cash America International, Inc. | $ | 32,033 | | $ | 1.01 | | $ | 23,911 | | $ | 0.79 |
| | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | |
| Intangible asset amortization, net of tax | | 752 | | | 0.02 | | | 1,027 | | | 0.03 |
| Non-cash equity-based compensation, net of tax | | 574 | | | 0.02 | | | 473 | | | 0.02 |
Convertible debt non-cash interest and amortization of issuance costs, net of tax | | 513 | | | 0.02 | | | - | | | - |
| Foreign exchange (gain) loss, net of tax | | 86 | | | - | | | 86 | | | - |
| Adjusted cash earnings | $ | 33,958 | | $ | 1.07 | | $ | 25,497 | | $ | 0.84 |
NON-GAAP DISCLOSURE
In addition to the financial information prepared in conformity with GAAP, the Company provides historical non-GAAP financial information. Management uses the non-GAAP financial measures for internal managerial purposes and believes that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of the Company’s operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with the Company’s GAAP results, provide a more complete understanding of factors and trends affecting the Company’s business.
Management provides non-GAAP financial information for informational purposes and to enhance understanding of the Company’s GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of, the Company’s financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.
CONTACT:
Cash America International, Inc.
Thomas A. Bessant, Jr., 817-335-1100
