Cash America International 8-K Results of Operations and Financial Condition

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (Date of Earliest Event Reported):

July 22, 2010

CASH AMERICA INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

Texas	1-9733	75-2018239
(State of incorporation)	(Commission File No.)	(IRS Employer Identification No.)

1600 West 7th Street

 Fort Worth, Texas 76102

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:  (817) 335-1100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o           Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 22, 2010, Cash America International, Inc. (the “Company”) reported that during the second quarter of 2010 the Company renamed its Internet Services Division as the E-commerce Division and realigned its operating segments into two reportable segments: retail services and e-commerce.  The retail services segment covers all of the operations of the Company’s Retail Services Division, which is comprised of both domestic and foreign storefront locations that offer pawn lending, consumer loans (formerly referred to as cash advances), check cashing and other ancillary services, and the e-commerce segment covers all of the operations of the Company’s E-commerce Division, which is comprised of the Company’s domestic and foreign online channel (which c overs the Company’s internet lending activities, as well as online gold buying activities and other ancillary services) and the Company’s micro line of credit (“MLOC”) services channel (formerly referred to as card services).  The segment realignment was in response to a number of changing factors within the Company’s business.  First, the Company’s business strategy at retail services locations now emphasizes a broad array of products such as pawn loans, gold buying, and consumer loans in most locations, such that the previously reported delineation of pawn and consumer loan-centric locations became obsolete.  Second, the Company’s management performance assessment, allocation of resources, and operating decisions have migrated to a two segment structure with one Division President overseeing retail services activities and another Division President overseeing e-commerce activities.  Third, the Company’s e-commerce produ cts have expanded and now include activities such as the MLOC services and online gold buying.  Financial information for prior years reflects the current segment structure. Certain amounts in the consolidated financial statements have been reclassified to reflect the current segment structure.  These reclassifications have no impact on consolidated results previously reported.

The Company allocates corporate administrative expenses to each operating segment based on personnel expenses at each segment.   In the e-commerce segment, certain administrative expenses are allocated between the domestic and foreign components based on the amount of loans written for each geographic location.  For comparison purposes, all prior periods in the tables below reflect the current classification of administrative and operating expenses.

1

The following tables set forth the Company’s operating segment disclosures by quarter and for the respective year-to-date periods of 2010, 2009 and 2008 under the revised segment structure:

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated
Three Months Ended June 30, 2010
Revenue
Pawn loan fees and service charges	$	51,080	$	8,427	$	59,507	$	-	$	-	$	-	$	59,507
Proceeds from disposition of merchandise		113,850		-		113,850		-		-		-		113,850
Consumer loan fees		26,782		-		26,782		67,277		21,806		89,083		115,865
Other		2,616		41		2,657		202		-		202		2,859
Total revenue		194,328		8,468		202,796		67,479		21,806		89,285		292,081
Cost of revenue – disposed merchandise		70,417		-		70,417		-		-		-		70,417
Net revenue		123,911		8,468		132,379		67,479		21,806		89,285		221,664
Expenses
Operations		72,955		4,665		77,620		16,634		7,677		24,311		101,931
Consumer loan loss provision		5,019		-		5,019		29,466		10,449		39,915		44,934
Administration		10,926		2,194		13,120		8,948		3,378		12,326		25,446
Depreciation and amortization		6,954		1,231		8,185		1,959		71		2,030		10,215
Total expenses		95,854		8,090		103,944		57,007		21,575		78,582		182,526
Income (loss) from operations	$	28,057	$	378	$	28,435	$	10,472	$	231	$	10,703	$	39,138
As of June 30, 2010
Total assets	$	800,774	$	119,137	$	919,911	$	332,809	$	47,767	$	380,576	$	1,300,487
Goodwill					$	303,476			$		$	210,282	$	513,758

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated
Three Months Ended March 31, 2010
Revenue
Pawn loan fees and service charges	$	50,862	$	7,419	$	58,281	$	-	$	-	$	-	$	58,281
Proceeds from disposition of merchandise		141,883		-		141,883		-		-		-		141,883
Consumer loan fees		27,544		-		27,544		62,634		18,264		80,898		108,442
Other		4,107		33		4,140		316		-		316		4,456
Total revenue		224,396		7,452		231,848		62,950		18,264		81,214		313,062
Cost of revenue – disposed merchandise		89,945		-		89,945		-		-		-		89,945
Net revenue		134,451		7,452		141,903		62,950		18,264		81,214		223,117
Expenses
Operations		73,098		3,743		76,841		13,779		5,899		19,678		96,519
Consumer loan loss provision		2,986		-		2,986		23,413		7,494		30,907		33,893
Administration		12,456		1,979		14,435		8,252		2,861		11,113		25,548
Depreciation and amortization		7,544		1,143		8,687		1,972		59		2,031		10,718
Total expenses		96,084		6,865		102,949		47,416		16,313		63,729		166,678
Income (loss) from operations	$	38,367	$	587	$	38,954	$	15,534	$	1,951	$	17,485	$	56,439
As of March 31, 2010
Total assets	$	757,879	$	122,077	$	879,956	$	305,870	$	36,498	$	342,368	$	1,222,324
Goodwill					$	303,966			$		$	205,038	$	509,004

2

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated
Six Months Ended June 30, 2010
Revenue
Pawn loan fees and service charges	$	101,942	$	15,846	$	117,788	$	-	$	-	$	-	$	117,788
Proceeds from disposition of merchandise		255,733		-		255,733		-		-		-		255,733
Consumer loan fees		54,326		-		54,326		129,911		40,070		169,981		224,307
Other		6,723		74		6,797		518		-		518		7,315
Total revenue		418,724		15,920		434,644		130,429		40,070		170,499		605,143
Cost of revenue – disposed merchandise		160,362		-		160,362		-		-		-		160,362
Net revenue		258,362		15,920		274,282		130,429		40,070		170,499		444,781
Expenses
Operations		146,053		8,408		154,461		30,413		13,576		43,989		198,450
Consumer loan loss provision		8,005		-		8,005		52,879		17,943		70,822		78,827
Administration		23,382		4,173		27,555		17,200		6,239		23,439		50,994
Depreciation and amortization		14,498		2,374		16,872		3,931		130		4,061		20,933
Total expenses		191,938		14,955		206,893		104,423		37,888		142,311		349,204
Income (loss) from operations	$	66,424	$	965	$	67,389	$	26,006	$	2,182	$	28,188	$	95,577
As of June 30, 2010
Total assets	$	800,774	$	119,137	$	919,911	$	332,809	$	47,767	$	380,576	$	1,300,487
Goodwill					$	303,476			$		$	210,282	$	513,758

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated
Three Months Ended December 31, 2009
Revenue
Pawn loan fees and service charges	$	54,607	$	9,412	$	64,019	$	-	$	-	$	-	$	64,019
Proceeds from disposition of merchandise		148,017		-		148,017		-		-		-		148,017
Consumer loan fees		32,336		-		32,336		60,909		15,492		76,401		108,737
Other		2,622		80		2,702		222		-		222		2,924
Total revenue		237,582		9,492		247,074		61,131		15,492		76,623		323,697
Cost of revenue – disposed merchandise		94,699		-		94,699		-		-		-		94,699
Net revenue		142,883		9,492		152,375		61,131		15,492		76,623		228,998
Expenses
Operations		74,111		3,975		78,086		15,964		4,796		20,760		98,846
Consumer loan loss provision		6,010		-		6,010		25,748		7,416		33,164		39,174
Administration		10,382		1,945		12,327		8,325		1,146		9,471		21,798
Depreciation and amortization		7,701		1,134		8,835		1,781		20		1,801		10,636
Total expenses		98,204		7,054		105,258		51,818		13,378		65,196		170,454
Income (loss) from operations	$	44,679	$	2,438	$	47,117	$	9,313	$	2,114	$	11,427	$	58,544
As of December 31, 2009
Total assets	$	815,518	$	118,478	$	933,996	$	307,336	$	28,323	$	335,659	$	1,269,655
Goodwill					$	296,409			$		$	197,083	$	493,492

3

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated
Three Months Ended September 30, 2009	��
Revenue
Pawn loan fees and service charges	$	52,428	$	7,492	$	59,920	$	-	$	-	$	-	$	59,920
Proceeds from disposition of merchandise		114,786		-		114,786		-		-		-		114,786
Consumer loan fees		31,619		-		31,619		54,897		11,693		66,590		98,209
Other		2,777		195		2,972		296		-		296		3,268
Total revenue		201,610		7,687		209,297		55,193		11,693		66,886		276,183
Cost of revenue – disposed merchandise		75,542		-		75,542		-		-		-		75,542
Net revenue		126,068		7,687		133,755		55,193		11,693		66,886		200,641
Expenses
Operations		68,833		3,131		71,964		13,119		4,285		17,404		89,368
Consumer loan loss provision		7,190		-		7,190		25,007		5,493		30,500		37,690
Administration		10,649		1,879		12,528		8,550		856		9,406		21,934
Depreciation and amortization		7,352		966		8,318		1,892		9		1,901		10,219
Total expenses		94,024		5,976		100,000		48,568		10,643		59,211		159,211
Income (loss) from operations	$	32,044	$	1,711	$	33,755	$	6,625	$	1,050	$	7,675	$	41,430
As of September 30, 2009
Total assets	$	816,025	$	114,039	$	930,064	$	278,256	$	20,692	$	298,948	$	1,229,012
Goodwill					$	297,906			$		$	195,478	$	493,384

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated
Three Months Ended June 30, 2009
Revenue
Pawn loan fees and service charges	$	47,373	$	6,907	$	54,280	$	-	$	-	$	-	$	54,280
Proceeds from disposition of merchandise		110,173		-		110,173		-		-		-		110,173
Consumer loan fees		27,330		-		27,330		49,715		7,557		57,272		84,602
Other		2,871		65		2,936		390		-		390		3,326
Total revenue		187,747		6,972		194,719		50,105		7,557		57,662		252,381
Cost of revenue – disposed merchandise		71,534		-		71,534		-		-		-		71,534
Net revenue		116,213		6,972		123,185		50,105		7,557		57,662		180,847
Expenses
Operations		70,071		3,127		73,198		10,186		3,011		13,197		86,395
Consumer loan loss provision		4,558		-		4,558		21,026		3,594		24,620		29,178
Administration		12,147		1,574		13,721		8,065		895		8,960		22,681
Depreciation and amortization		7,621		903		8,524		1,860		9		1,869		10,393
Total expenses		94,397		5,604		100,001		41,137		7,509		48,646		148,647
Income (loss) from operations	$	21,816	$	1,368	$	23,184	$	8,968	$	48	$	9,016	$	32,200
As of June 30, 2009
Total assets	$	782,367	$	111,207	$	893,574	$	277,243	$	15,808	$	293,051	$	1,186,625
Goodwill					$	298,370			$		$	195,478	$	493,848

4

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign			Total		Consolidated
Three Months Ended March 31, 2009
Revenue
Pawn loan fees and service charges	$	46,496	$	6,463	$	52,959	$	-	$	-		$	-	$	52,959
Proceeds from disposition of merchandise		129,760		-		129,760		-		-			-		129,760
Consumer loan fees		26,712		-		26,712		47,840		5,756			53,596		80,308
Other		4,786		69		4,855		210		-			210		5,065
Total revenue		207,754		6,532		214,286		48,050		5,756			53,806		268,092
Cost of revenue – disposed merchandise		82,502		-		82,502		-		-			-		82,502
Net revenue		125,252		6,532		131,784		48,050		5,756			53,806		185,590
Expenses
Operations		70,888		2,411		73,299		10,145		2,078			12,223		85,522
Consumer loan loss provision		3,884		-		3,884		17,796		3,094			20,890		24,774
Administration		12,631		1,480		14,111		6,410		953			7,363		21,474
Depreciation and amortization		7,787		828		8,615		1,717		9			1,726		10,341
Total expenses		95,190		4,719		99,909		36,068		6,134			42,202		142,111
Income (loss) from operations	$	30,062	$	1,813	$	31,875	$	11,982	$	(378	)	$	11,604	$	43,479
As of March 31, 2009
Total assets	$	744,003	$	103,487	$	847,490	$	270,720	$	11,402		$	282,122	$	1,129,612
Goodwill					$	294,301			$			$	195,478	$	489,779

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated
Year Ended December 31, 2009
Revenue
Pawn loan fees and service charges	$	200,904	$	30,274	$	231,178	$	-	$	-	$	-	$	231,178
Proceeds from disposition of merchandise		502,736		-		502,736		-		-		-		502,736
Consumer loan fees		117,997		-		117,997		213,361		40,498		253,859		371,856
Other		13,056		409		13,465		1,118		-		1,118		14,583
Total revenue		834,693		30,683		865,376		214,479		40,498		254,977		1,120,353
Cost of revenue – disposed merchandise		324,277		-		324,277		-		-		-		324,277
Net revenue		510,416		30,683		541,099		214,479		40,498		254,977		796,076
Expenses
Operations		283,903		12,644		296,547		49,414		14,170		63,584		360,131
Consumer loan loss provision		21,642		-		21,642		89,577		19,597		109,174		130,816
Administration		45,810		6,878		52,688		31,350		3,850		35,200		87,888
Depreciation and amortization		30,461		3,831		34,292		7,250		47		7,297		41,589
Total expenses		381,816		23,353		405,169		177,591		37,664		215,255		620,424
Income (loss) from operations	$	128,600	$	7,330	$	135,930	$	36,888	$	2,834	$	39,722	$	175,652
As of December 31, 2009
Total assets	$	815,518	$	118,478	$	933,996	$	307,336	$	28,323	$	335,659	$	1,269,655
Goodwill					$	296,409			$		$	197,083	$	493,492

5

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic			Foreign			Total			Consolidated
Three Months Ended December 31, 2008
Revenue
Pawn loan fees and service charges	$	49,884	$	1,323	$	51,207	$	-		$	-		$	-		$	51,207
Proceeds from disposition of merchandise		135,466		-		135,466		-			-			-			135,466
Consumer loan fees		31,641		-		31,641		52,898			5,454			58,352			89,993
Other		3,296		7		3,303		(53	)		-			(53	)		3,250
Total revenue		220,287		1,330		221,617		52,845			5,454			58,299			279,916
Cost of revenue – disposed merchandise		89,070		-		89,070		-			-			-			89,070
Net revenue		131,217		1,330		132,547		52,845			5,454			58,299			190,846
Expenses
Operations		73,834		425		74,259		10,871			2,060			12,931			87,190
Consumer loan loss provision		8,465		-		8,465		25,524			3,917			29,441			37,906
Administration		15,144		340		15,484		6,121			301			6,422			21,906
Depreciation and amortization		9,966		56		10,022		1,664			9			1,673			11,695
Total expenses		107,409		821		108,230		44,180			6,287			50,467			158,697
Income (loss) from operations	$	23,808	$	509	$	24,317	$	8,665		$	(833	)	$	7,832		$	32,149
As of December 31, 2008
Total assets	$	810,985	$	99,319	$	910,304	$	266,576		$	9,630		$	276,206		$	1,186,510
Goodwill					$	295,481				$			$	198,711		$	494,192

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign			Total		Consolidated
Three Months Ended September 30, 2008
Revenue
Pawn loan fees and service charges	$	46,977	$	-	$	46,977	$	-	$	-		$	-	$	46,977
Proceeds from disposition of merchandise		105,517		-		105,517		-		-			-		105,517
Consumer loan fees		35,443		-		35,443		53,436		7,422			60,858		96,301
Other		3,335		-		3,335		57		-			57		3,392
Total revenue		191,272		-		191,272		53,493		7,422			60,915		252,187
Cost of revenue – disposed merchandise		68,033		-		68,033		-		-			-		68,033
Net revenue		123,239		-		123,239		53,493		7,422			60,915		184,154
Expenses
Operations		71,068		-		71,068		9,872		1,380			11,252		82,320
Consumer loan loss provision		9,136		-		9,136		25,073		6,741			31,814		40,950
Administration		8,491		-		8,491		6,559		345			6,904		15,395
Depreciation and amortization		7,935		-		7,935		1,354		9			1,363		9,298
Total expenses		96,630		-		96,630		42,858		8,475			51,333		147,963
Income (loss) from operations	$	26,609	$	-	$	26,609	$	10,635	$	(1,053	)	$	9,582	$	36,191
As of September 30, 2008
Total assets	$	816,867	$	-	$	816,867	$	252,551	$	10,858		$	263,409	$	1,080,276
Goodwill					$	230,768			$			$	190,072	$	420,840

6

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign			Total		Consolidated
Three Months Ended June 30, 2008
Revenue
Pawn loan fees and service charges	$	43,390	$	-	$	43,390	$	-	$	-		$	-	$	43,390
Proceeds from disposition of merchandise		108,089		-		108,089		-		-			-		108,089
Consumer loan fees		36,072		-		36,072		49,672		7,105			56,777		92,849
Other		3,736		-		3,736		4		-			4		3,740
Total revenue		191,287		-		191,287		49,676		7,105			56,781		248,068
Cost of revenue – disposed merchandise		66,741		-		66,741		-		-			-		66,741
Net revenue		124,546		-		124,546		49,676		7,105			56,781		181,327
Expenses
Operations		69,795		-		69,795		8,536		2,178			10,714		80,509
Consumer loan loss provision		9,341		-		9,341		20,005		5,387			25,392		34,733
Administration		14,245		-		14,245		6,065		354			6,419		20,664
Depreciation and amortization		8,380		-		8,380		1,136		11			1,147		9,527
Total expenses		101,761		-		101,761		35,742		7,930			43,672		145,433
Income (loss) from operations	$	22,785	$	-	$	22,785	$	13,934	$	(825	)	$	13,109	$	35,894
As of June 30, 2008
Total assets	$	764,714	$	-	$	764,714	$	245,444	$	13,531		$	258,975	$	1,023,689
Goodwill					$	225,685			$			$	178,201	$	403,886

	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign			Total		Consolidated
Three Months Ended March 31, 2008
Revenue
Pawn loan fees and service charges	$	43,421	$	-	$	43,421	$	-	$	-		$	-	$	43,421
Proceeds from disposition of merchandise		116,583		-		116,583		-		-			-		116,583
Consumer loan fees		37,978		-		37,978		44,249		3,233			47,482		85,460
Other		5,859		-		5,859		-		-			-		5,859
Total revenue		203,841		-		203,841		44,249		3,233			47,482		251,323
Cost of revenue – disposed merchandise		71,516		-		71,516		-		-			-		71,516
Net revenue		132,325		-		132,325		44,249		3,233			47,482		179,807
Expenses
Operations		71,175		-		71,175		8,615		935			9,550		80,725
Consumer loan loss provision		6,611		-		6,611		18,307		2,216			20,523		27,134
Administration		13,676		-		13,676		4,571		98			4,669		18,345
Depreciation and amortization		8,080		-		8,080		1,042		9			1,051		9,131
Total expenses		99,542		-		99,542		32,535		3,258			35,793		135,335
Income (loss) from operations	$	32,783	$	-	$	32,783	$	11,714	$	(25	)	$	11,689	$	44,472
As of March 31, 2008
Total assets	$	713,900	$	-	$	713,900	$	198,496	$	7,489		$	205,985	$	919,885
Goodwill					$	208,437			$			$	138,997	$	347,434

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	Retail Services(1)						E-Commerce(2)
	Domestic		Foreign		Total		Domestic		Foreign			Total		Consolidated
Year Ended December 31, 2008
Revenue
Pawn loan fees and service charges	$	183,672	$	1,323	$	184,995	$	-	$	-		$	-	$	184,995
Proceeds from disposition of merchandise		465,655		-		465,655		-		-			-		465,655
Consumer loan fees		141,134		-		141,134		200,255		23,214			223,469		364,603
Other		16,226		7		16,233		8		-			8		16,241
Total revenue		806,687		1,330		808,017		200,263		23,214			223,477		1,031,494
Cost of revenue – disposed merchandise		295,360		-		295,360		-		-			-		295,360
Net revenue		511,327		1,330		512,657		200,263		23,214			223,477		736,134
Expenses
Operations		285,872		425		286,297		37,894		6,553			44,447		330,744
Consumer loan loss provision		33,553		-		33,553		88,909		18,261			107,170		140,723
Administration		51,556		340		51,896		23,316		1,098			24,414		76,310
Depreciation and amortization		34,361		56		34,417		5,196		38			5,234		39,651
Total expenses		405,342		821		406,163		155,315		25,950			181,265		587,428
Income (loss) from operations	$	105,985	$	509	$	106,494	$	44,948	$	(2,736	)	$	42,212	$	148,706
As of December 31, 2008
Total assets	$	810,985	$	99,319	$	910,304	$	266,576	$	9,630		$	276,206	$	1,186,510
Goodwill					$	295,481			$			$	198,711	$	494,192

(1)	The retail services segment is composed of the Company’s domestic and foreign storefront operations.
(2)	The e-commerce segment is composed of the Company’s online channel, which has domestic and foreign operations, and the Company’s MLOC services channel.

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The information in this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, nor shall it be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CASH AMERICA INTERNATIONAL, INC.
Date: July 22, 2010	By:	/s/ J. Curtis Linscott
		J. Curtis Linscott
		Executive Vice President, General Counsel & Secretary

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