Cash America International 8K Cash America Announces Fourth Quarter Results and Declares Dividend | SEC 23 Jan 14

Exhibit 99.1

Cash America Announces Fourth Quarter Results and Declares Dividend

FORT WORTH, Texas--(BUSINESS WIRE)--January 23, 2014--Cash America International, Inc. (NYSE: CSH) reported today that its fourth quarter ended December 31, 2013 net income attributable to the Company was $27,284,000 (91 cents per share), which included the after-tax impact of unusual expense items of $2.8 million (10 cents per share). This compares to $24,480,000 (79 cents per share) for the fourth quarter ended 2012, which included the after-tax impact of unusual expense items of $15.4 million (50 cents per share).

The $2.8 million of after-tax expenses for unusual items in the 2013 fourth quarter included costs related to the closure of 28 locations in Texas, which offered unsecured consumer loans as the primary source of revenue, a regulatory penalty incurred during the period, an adjustment to the remaining expected liability for the voluntary refund to customers in Ohio and expenses related to the early extinguishment of debt. Excluding the effect of these expenses, fourth quarter 2013 adjusted net income attributable to the Company, a non-GAAP measure, would have been $30.1 million ($1.01 per share). During the prior year fourth quarter of 2012, the Company incurred unusual expense items related to a voluntary refund to customers in Ohio and the reorganization of its Mexico-based pawn lending business, including the closure of 115 locations in Mexico, which totaled $15.4 million after taxes (50 cents per share). Excluding these expenses, adjusted net income attributable to the Company, a non-GAAP measure, for the fourth quarter of 2012 would have been $39,887,000 ($1.29 per share).

Consolidated net revenue of the Company in the fourth quarter of 2013 was up 2% to $271.6 million compared to $267.1 million in the fourth quarter of 2012. The increase in net revenue was due to a 10% increase in net consumer loan fees after loan loss provision expense and a 6% increase in revenue from secured loans during the quarter, the combination of which offset the anticipated decrease in net proceeds from the sale of merchandise.

Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America, said, “As we expected, the retail selling environment during the fourth quarter was very competitive, but we were able to move merchandise during the period while benefiting from increased revenue from our loan products. We also completed the previously announced acquisition of a 34-store chain of pawn lending locations during the fourth quarter, which helped us achieve adjusted earnings that were in line with our expectations as we entered the quarter.”

Total revenue for the fiscal year ended December 31, 2013 was $1.8 billion, which compares to $1.8 billion during the twelve-month period in 2012. Net income attributable to the Company for the twelve months ended December 31, 2013 was $142,528,000 ($4.66 per share), which includes a net benefit from unusual items during the year of $18.8 million (a benefit of 62 cents per share). In 2013, the Company recorded a tax benefit related to the disposition of assets and reorganization of its Mexico-based pawn lending business of $33.2 million ($1.09 per share), which was partially offset by unusual expense items of $14.4 million (47 cents per share) related to a litigation settlement during the third quarter of 2013, the closure of consumer lending locations mentioned above, a regulatory penalty, an adjustment to the remaining expected liability for the voluntary refund to customers in Ohio and expenses for the early extinguishment of debt. Combining these amounts generates the net benefit of unusual items in 2013 of $18.8 million. Adjusting for the full year effects of the net benefit in 2013 would result in adjusted net income attributable to the Company, a non-GAAP measure, of $123.7 million ($4.04 per share).

In 2012, the Company reported full year net income of $107,470,000 ($3.42 per share), which included unusual expense items totaling $36.3 million ($1.15 per share) related to the reorganization of its Mexico-based pawn lending business, a voluntary refund to customers in Ohio and the withdrawal of a proposed securities offering. Excluding these unusual items in 2012, adjusted net income attributable to the Company, a non-GAAP measure, would have been $143.8 million ($4.57 per share) for the twelve-month period ended December 31, 2012.

Cash America will conduct a conference call to discuss its fourth quarter earnings on Thursday, January 23, 2014, at 7:00 AM CST. A live web cast of the call will be available on the Company’s corporate web site in the Investor Relations section (www.cashamerica.com). To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software.

Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid at the close of business on February 19, 2014 to shareholders of record on February 5, 2014.

Outlook for the First Quarter of 2014 and the 2014 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 primarily take the form of pawn loans and consumer loans. Other elements expected to affect the growth in revenue include the potential impact of the regulatory governance of consumer loan products, the ability to profitably liquidate merchandise primarily from unredeemed pawn loans, the continued development of the Mexican pawn operations and the rate of growth of the Company’s e-commerce segment. Based on the preceding factors management estimates that the first quarter of fiscal 2014 will be between $1.15 and $1.25 in earnings per share compared to $1.40 in the first quarter of 2013. At this time management leaves its previously reported expectations for its fiscal year 2014 earnings per share unchanged at between $4.20 to $4.40 per share, which compares to actual full year 2013 earnings per share of $4.66 that includes the after-tax net benefit of unusual items discussed above of $18.8 million (a net benefit of 62 cents per share). Excluding the net benefit for unusual items in 2013, adjusted net income attributable to the Company per share, a non-GAAP measure, for the full year was $4.04, for the comparison period.

About the Company

As of December 31, 2013, Cash America International, Inc. (the “Company”) operated 1,006 total locations offering specialty financial services to consumers, which included the following:

869 lending locations in 22 states in the United States primarily under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance,” and “Cashland;”
47 pawn lending locations in central and southern Mexico under the name “Cash America casa de empeño;” and
90 check cashing centers (all of which are unconsolidated franchised check cashing centers) operating in 14 states in the United States under the name “Mr. Payroll.”

Additionally, as of December 31, 2013, the Company offered consumer loans over the Internet to customers:

in 32 states in the United States at http://www.cashnetusa.com and http://www.netcredit.com;
in the United Kingdom at http://www.quickquid.co.uk, and http://www.poundstopocket.co.uk;
in Australia at http://www.dollarsdirect.com.au; and
in Canada at http://www.dollarsdirect.ca.

For additional information regarding the Company and the services it provides, visit the Company’s websites located at:


http://www.cashamerica.com				http://www.poundstopocket.co.uk
http://www.enova.com				http://www.dollarsdirect.com.au
http://www.cashnetusa.com				http://www.dollarsdirect.ca
http://www.netcredit.com				http://www.goldpromise.com
http://www.cashlandloans.com				http://www.mrpayroll.com
http://www.quickquid.co.uk

Non-GAAP Measures

A reconciliation of adjusted net income attributable to the Company and adjusted net income attributable to the Company on a per share basis, which are non-GAAP measures, for the three- and twelve-month periods ended December 31, 2013 and December 31, 2012 discussed above is included in the attachments for this press release in the “Adjusted Earnings and Adjusted Earnings Per Share” table.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements about the business, financial condition, operations and prospects of 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: the effect of or changes in domestic and foreign pawn, consumer credit, tax and other laws and governmental rules and regulations applicable to the Company's business or changes in the interpretation or enforcement thereof; the regulatory and examination authority of the Consumer Financial Protection Bureau in the U.S. and the UK Financial Conduct Authority, which will become the Company’s primary regulator in the UK in 2014; public perception of the Company’s business, including its consumer loan business and its business practices; changes in the political, regulatory or economic environment in foreign countries where the Company operates or in the future may operate; the Company’s ability to process or collect consumer loans through the Automated Clearing House system; fluctuations, including a sustained decrease, in the price of gold or deterioration in economic conditions; the effect of any current or future litigation proceedings or any judicial decisions or rule-making that affect the Company, its products or its arbitration agreements; the actions of third parties who provide, acquire or offer products and services to, from or for the Company; changes in demand for the Company’s services, the Company’s ability to attract and retain qualified executive officers; a prolonged interruption in the Company’s operations of its facilities, systems and business functions, including its information technology and other business systems; the ability of the Company to open new locations in accordance with its plans or to successfully integrate newly acquired businesses into the Company’s operations; changes in competition; interest rate and foreign currency exchange rate fluctuations; changes in the capital markets; changes in the Company’s ability to satisfy its debt obligations or to refinance existing debt obligations or obtain new capital to finance growth; security breaches, cyber attacks or fraudulent activity; compliance with laws and regulations applicable to international operations; the implementation of new, or changes in the interpretation of existing, accounting principles or financial reporting requirements; 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
(dollars in thousands, except per share data)
(Unaudited)
	Three Months Ended					Year Ended
	December 31,					December 31,
	2013		2012			2013		2012
Consolidated Operations:
Total revenue	$	480,346	$	491,604	$	1,797,226	$	1,800,430
Net revenue		271,649		267,088		1,035,358		1,005,957
Total expenses		215,219		217,600		823,575		790,042

Income from Operations	$	56,430	$	49,488	$	211,783	$	215,915

Income before income taxes		45,311		41,160		173,590		186,320

Net Income	$	27,284	$	23,991	$	142,836	$	101,664

Net loss (income) attributable to the noncontrolling interest	$	-	$	489	$	(308)	$	5,806

Net Income Attributable to Cash America International, Inc.	$	27,284	$	24,480	$	142,528	$	107,470

Earnings per share:
Net Income attributable to Cash America International, Inc. common shareholders:
Basic	$	0.96	$	0.84	$	4.97	$	3.64
Diluted	$	0.91	$	0.79	$	4.66	$	3.42

Weighted average common shares outstanding:
Basic		28,391		29,262		28,657		29,514
Diluted		29,968		30,884		30,613		31,452


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
(Unaudited)

	December 31,
		2013		2012

Assets
Current assets:
Cash and cash equivalents	$	69,238	$	63,134
Restricted cash		8,000		-
Pawn loans		261,148		244,640
Consumer loans, net		358,841		289,418
Merchandise held for disposition, net		208,899		167,409
Pawn loan fees and service charges receivable		53,438		48,991
Income taxes receivable		9,535		-
Prepaid expenses and other assets		33,655		35,605
Deferred tax assets		38,800		48,992
Total current assets		1,041,554		898,189
Property and equipment, net		261,223		261,771
Goodwill		705,579		608,216
Intangible assets, net		52,256		36,473
Other assets		21,129		13,609
Total assets	$	2,081,741	$	1,818,258

Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	142,078	$	126,664
Customer deposits		14,803		11,420
Income taxes currently payable		-		5,922
Current portion of long-term debt		22,606		43,617
Total current liabilities		179,487		187,623
Deferred tax liabilities		101,417		101,711
Noncurrent income tax payable		-		2,703
Other liabilities		1,031		888
Long-term debt		717,383		534,713
Total liabilities	$	999,318	$	827,638

Equity:
Cash America International, Inc. equity:
Common stock, $0.10 par value per share, 80,000,000 shares authorized, 30,235,164 shares issued and outstanding		3,024		3,024
Additional paid-in capital		150,833		157,613
Retained earnings		1,017,981		879,434
Accumulated other comprehensive income		4,649		3,128
Treasury shares, at cost (2,224,902 shares and 1,351,712 shares at December 31, 2013 and 2012, respectively)		(94,064)		(51,304)
Total Cash America International, Inc. shareholders' equity		1,082,423		991,895
Noncontrolling interest		-		(1,275)
Total equity		1,082,423		990,620
Total liabilities and equity	$	2,081,741	$	1,818,258


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (dollars in thousands, except per share data) (Unaudited)

		Three Months Ended				Year Ended
		December 31,				December 31,
		2013		2012		2013		2012
Revenue
Pawn loan fees and service charges	$	83,859	$	79,479	$	311,799	$	300,929
Proceeds from disposition of merchandise		156,530		185,935		595,439		703,767
Consumer loan fees		237,984		222,864		878,183		781,520
Other		1,973		3,326		11,805		14,214
Total Revenue		480,346		491,604		1,797,226		1,800,430
Cost of Revenue
Disposed merchandise		109,216		127,301		410,613		478,179
Consumer loan loss provision		99,481		97,215		351,255		316,294
Total Cost of Revenue		208,697		224,516		761,868		794,473

Net Revenue		271,649		267,088		1,035,358		1,005,957
Expenses
Operations and administration		196,262		199,054		750,304		714,614
Depreciation and amortization		18,957		18,546		73,271		75,428
Total Expenses		215,219		217,600		823,575		790,042
Income from Operations		56,430		49,488		211,783		215,915
Interest expense		(10,709)		(8,066)		(36,317)		(29,131)
Interest income		3		65		72		144
Foreign currency transaction loss		(152)		(241)		(1,205)		(313)
Loss on extinguishment of debt		(261)		-		(607)		-
Equity in loss of unconsolidated subsidiary		-		(86)		(136)		(295)
Income before Income Taxes		45,311		41,160		173,590		186,320
Provision for income taxes		18,027		17,169		30,754		84,656
Net Income		27,284		23,991		142,836		101,664
Net loss (income) attributable to the noncontrolling interest		-		489		(308)		5,806
Net Income Attributable to Cash America International, Inc.	$	27,284	$	24,480	$	142,528	$	107,470
Earnings Per Share:
Net Income attributable to Cash America International, Inc. common shareholders:
Basic	$	0.96	$	0.84	$	4.97	$	3.64
Diluted	$	0.91	$	0.79	$	4.66	$	3.42
Weighted average common shares outstanding:
Basic		28,391		29,262		28,657		29,514
Diluted		29,968		30,884		30,613		31,452
Dividends declared per common share	$	0.035	$	0.035	$	0.140	$	0.140


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES PAWN LENDING ACTIVITIES – FINANCIAL AND OPERATING DATA
(dollars in thousands, except where otherwise noted)

The following tables outline certain data related to pawn loan activities of Cash America International, Inc. (the “Company”) as of and for the three months and years ended December 31, 2013 and 2012 (dollars in thousands).

	As of December 31,
	2013		2012		Change		% Change
Ending pawn loan balances
Domestic retail services	$	256,772	$	240,573	$	16,199	6.7	%
Foreign retail services		4,376		4,067		309	7.6	%
Consolidated pawn loan balances	$	261,148	$	244,640	$	16,508	6.7	%

Ending merchandise balance, net
Domestic retail services	$	203,823	$	161,655	$	42,168	26.1	%
Foreign retail services		5,076		5,754		(678)	(11.8)	%
Consolidated merchandise balance, net	$	208,899	$	167,409	$	41,490	24.8	%

	Three Months Ended December 31,
	2013		2012		Change		% Change
Pawn loan fees and service charges
Domestic retail services	$	82,003	$	77,354	$	4,649	6.0	%
Foreign retail services		1,856		2,125		(269)	(12.7)	%
Consolidated pawn loan fees and service charges	$	83,859	$	79,479	$	4,380	5.5	%

Average pawn loan balance outstanding
Domestic retail services	$	249,777	$	240,545	$	9,232	3.8	%
Foreign retail services		5,100		7,775		(2,675)	(34.4)	%
Consolidated average pawn loans outstanding	$	254,877	$	248,320	$	6,557	2.6	%

Amount of pawn loans written and renewed
Domestic retail services	$	250,783	$	241,215	$	9,568	4.0	%
Foreign retail services		13,817		19,386		(5,569)	(28.7)	%
Consolidated amount of pawn loans written and renewed	$	264,600	$	260,601	$	3,999	1.5	%

Average amount per pawn loan (in ones)
Domestic retail services	$	127	$	133	$	(6)	(4.5)	%
Foreign retail services	$	89	$	84	$	5	6.0	%
Consolidated average amount per pawn loan (in ones)	$	124	$	127	$	(3)	(2.4)	%

Annualized yield on pawn loans
Domestic retail services		130.3%		127.9%
Foreign retail services		144.4%		108.7%
Consolidated annualized yield on pawn loans		130.5%		127.3%

Gross profit margin on disposition of merchandise
Domestic retail services		31.3%		32.6%
Foreign retail services		2.2%		13.5%
Gross profit margin on disposition of merchandise		30.2%		31.5%

Merchandise turnover
Domestic retail services		2.1		2.8
Foreign retail services		3.5		4.3
Consolidated merchandise turnover		2.1		2.9


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES PAWN LENDING ACTIVITIES – FINANCIAL AND OPERATING DATA
(dollars in thousands, except where otherwise noted)

	Year Ended December 31,
	2013		2012		Change		% Change
Pawn loan fees and service charges
Domestic retail services	$	304,511	$	288,161	$	16,350	5.7	%
Foreign retail services		7,288		12,768		(5,480)	(42.9)	%
Consolidated pawn loan fees and service charges	$	311,799	$	300,929	$	10,870	3.6	%

Average pawn loan balance outstanding
Domestic retail services	$	233,166	$	225,066	$	8,100	3.6	%
Foreign retail services		4,943		12,055		(7,112)	(59.0)	%
Consolidated average pawn loans outstanding	$	238,109	$	237,121	$	988	0.4	%

Amount of pawn loans written and renewed
Domestic retail services	$	958,542	$	916,215	$	42,327	4.6	%
Foreign retail services		56,120		124,263		(68,143)	(54.8)	%
Consolidated amount of pawn loans written and renewed	$	1,014,662	$	1,040,478	$	(25,816)	(2.5)	%

Average amount per pawn loan (in ones)
Domestic retail services	$	127	$	131	$	(4)	(3.1)	%
Foreign retail services	$	87	$	88	$	(1)	(1.1)	%
Consolidated average amount per pawn loan (in ones)	$	124	$	124	$	-	-	%

Annualized yield on pawn loans
Domestic retail services		130.6%		128.0%
Foreign retail services		147.4%		105.9%
Consolidated annualized yield on pawn loans		130.9%		126.9%

Gross profit margin on disposition of merchandise
Domestic retail services		31.6%		33.5%
Foreign retail services		13.3%		12.0%
Gross profit margin on disposition of merchandise		31.0%		32.1%

Merchandise turnover
Domestic retail services		2.3		2.9
Foreign retail services		2.8		3.9
Consolidated merchandise turnover		2.4		3.0


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES MERCHANDISE DISPOSITION, GROSS PROFIT AND INVENTORY OPERATING DATA
(dollars in thousands)

Profit from the disposition of merchandise represents the proceeds received from the disposition of merchandise in excess of the cost of disposed merchandise, which is the Company's cost basis in the pawn loan or the amount paid for purchased merchandise. The following tables summarize the proceeds from the disposition of merchandise and the related profit for the three months and years ended December 31, 2013 and 2012 (dollars in thousands).

	Three Months Ended December 31,
	2013									2012
	Retail			Commercial			Total			Retail			Commercial			Total
Proceeds from disposition	$	131,229		$	25,301		$	156,530		$	113,964		$	71,971		$	185,935
Gross profit on disposition	$	42,930		$	4,384		$	47,314		$	40,625		$	18,009		$	58,634
Gross profit margin		32.7	%		17.3	%		30.2	%		35.6	%		25.0	%		31.5	%
Percentage of total gross profit		90.7	%		9.3	%		100.0	%		69.3	%		30.7	%		100.0	%

	Year Ended December 31,
	2013									2012
	Retail			Commercial			Total			Retail			Commercial			Total
Proceeds from disposition	$	427,644		$	167,795		$	595,439		$	391,566		$	312,201		$	703,767
Gross profit on disposition	$	151,757		$	33,069		$	184,826		$	144,095		$	81,493		$	225,588
Gross profit margin		35.5	%		19.7	%		31.0	%		36.8	%		26.1	%		32.1	%
Percentage of total gross profit		82.1	%		17.9	%		100.0	%		63.9	%		36.1	%		100.0	%


The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.9 million as of both December 31, 2013 and 2012 (dollars in thousands).

	As of December 31,
	2013			2012
	Amount		%	Amount		%
Jewelry – held for one year or less	$	116,256	55.4	$	99,466	59.1
Other merchandise – held for one year or less		79,851	38.1		59,914	35.6
Total merchandise held for one year or less		196,107	93.5		159,380	94.7
Jewelry – held for more than one year		6,734	3.2		3,283	2.0
Other merchandise – held for more than one year		7,007	3.3		5,597	3.3
Total merchandise held for more than one year		13,741	6.5		8,880	5.3
Total merchandise held for disposition	$	209,848	100.0	$	168,260	100.0


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA
(dollars in thousands, except where otherwise noted)

The following tables set forth consumer loan fees by segment, adjusted for the deduction of the loan loss provision for the three months and years ended December 31, 2013 and 2012 (dollars in thousands).

	Three Months Ended December 31,
	2013										2012
	Retail Services			E-Commerce			Total				Retail Services			E-Commerce			Total
Interest and fees on short-term loans	$	25,145		$	79,157		$	104,302			$	28,803		$	120,539		$	149,342
Interest and fees on line of credit accounts		-			68,475			68,475				-			27,558			27,558
Interest and fees on installment loans		3,593			61,614			65,207				3,693			42,271			45,964
Consumer loan fees	$	28,738		$	209,246		$	237,984			$	32,496		$	190,368		$	222,864
Consumer loan loss provision		9,432			90,049			99,481				10,095			87,120			97,215
Consumer loan fees, net of loss provision	$	19,306		$	119,197		$	138,503			$	22,401		$	103,248		$	125,649

Year-over-year change - $	$	(3,095)		$	15,949		$	12,854			$	(2,410)		$	28,418		$	26,008
Year-over-year change - %		(13.8)	%		15.4	%		10.2	%			(9.7)	%		38.0	%		26.1	%
Consumer loan loss provision as a % of consumer loan fees		32.8	%		43.0	%		41.8	%	��		31.1	%		45.8	%		43.6	%

	Year Ended December 31,
	2013										2012
	Retail Services			E-Commerce			Total				Retail Services			E-Commerce			Total
Interest and fees on short-term loans	$	100,146		$	389,706		$	489,852			$	109,972		$	459,793		$	569,765
Interest and fees on line of credit accounts		-			170,496			170,496				-			73,572			73,572
Interest and fees on installment loans		13,065			204,770			217,835				11,920			126,263			138,183
Consumer loan fees	$	113,211		$	764,972		$	878,183			$	121,892		$	659,628		$	781,520
Consumer loan loss provision		33,359			317,896			351,255				29,225			287,069			316,294
Consumer loan fees, net of loss provision	$	79,852		$	447,076		$	526,928			$	92,667		$	372,559		$	465,226

Year-over-year change - $	$	(12,815)		$	74,517		$	61,702			$	(2,524)		$	94,792		$	92,268
Year-over-year change - %		(13.8)	%		20.0	%		13.3	%			(2.7)	%		34.1	%		24.7	%
Consumer loan loss provision as a % of consumer loan fees		29.5	%		41.6	%		40.0	%			24.0	%		43.5	%		40.5	%

In addition to reporting consumer loans owned by the Company and consumer loans guaranteed by the Company, which are either generally accepted accounting principles (“GAAP”) items or disclosures required by GAAP, the Company has provided combined consumer loans, which is a non-GAAP measure. In addition, the Company has reported consumer loans written and renewed, which is statistical data that is not included in the Company’s financial statements. The Company also reports allowances and liabilities for estimated losses on consumer loans individually and on a combined basis, which are GAAP measures that are included in the Company’s financial statements.

Management believes these measures provide investors with important information needed to evaluate the magnitude of potential loan losses and the opportunity for revenue performance of the consumer loan portfolio on an aggregate basis. The comparison of the aggregate amounts from period to period is more meaningful than comparing only the residual amount on the Company’s balance sheet since both revenue and the loss provision for loans are impacted by the aggregate amount of loans owned by the Company and those guaranteed by the Company as reflected in its financial statements.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA
(dollars in thousands, except where otherwise noted)

The following tables summarize selected data related to the Company’s consumer loan activities as of and for the three months and years ended December 31, 2013 and 2012.

The following table shows short-term loans and related loan loss activity, which is based on the volume of loans written and renewed, for the three months ended December 31, 2013 and 2012.

	Three Months Ended
	December 31,
	2013	2012
Short-term loans:
Combined consumer loan loss provision as a % of combined consumer loans written and renewed^(a)	5.5%	6.8%
Charge-offs (net of recoveries) as a % of combined consumer loans written and renewed^(a)	7.2%	6.6%
Combined consumer loan loss provision as a % of consumer loan fees	32.2%	37.3%
Allowance and liability for losses as a % of combined consumer loans and fees receivable, gross^(b)	15.1%	19.2%

^(a) The disclosure regarding the amount of consumer loans written and renewed is statistical data that is not included in the Company's financial statements.
^(b) Non-GAAP measure.


The following table shows line of credit accounts and installment loans and related loan loss activity, which is based on average amount of consumer loan balance, for the three months ended December 31, 2013 and 2012.

	Three Months Ended
	December 31,
	2013	2012
Line of credit accounts:
Combined consumer loan loss provision as a % of combined average consumer loan balance^(a)(b)	29.0%	40.7%
Charge-offs (net of recoveries) as a % of combined average consumer loan balance^(a)(b)	22.0%	33.4%
Combined consumer loan loss provision as a % of consumer loan fees	47.7%	60.0%
Allowance and liability for losses as a % of combined average consumer loan balance^(a)	26.4%	27.3%

Installment loans:
Combined consumer loan loss provision as a % of combined average consumer loan balance^(a)(b)	17.2%	18.9%
Charge-offs (net of recoveries) as a % of combined average consumer loan balance^(a)(b)	16.9%	17.7%
Combined consumer loan loss provision as a % of consumer loan fees	50.9%	54.2%
Allowance and liability for losses as a % of combined average consumer loan balance^(a)	17.8%	22.1%

^(a)Non-GAAP measure.
^(b)The average consumer loan balance is the simple average of the beginning and ending consumer loan balance.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (dollars in thousands, except where otherwise noted)

	Three Months Ended
	December 31,
	2013		2012
Short-term loans:
Combined consumer loan loss provision	$	33,567	$	55,751
Charge-offs (net of recoveries)		43,862		53,722
Allowance and liability for losses		26,747		48,916

Line of credit accounts:
Combined consumer loan loss provision	$	32,694	$	16,534
Charge-offs (net of recoveries)		24,844		13,590
Allowance and liability for losses		29,784		11,107
Company owned average consumer loan balance		112,704		40,652

Installment loans:
Combined consumer loan loss provision	$	33,220	$	24,930
Charge-offs (net of recoveries)		32,615		23,385
Allowance and liability for losses		34,415		29,178

Average consumer loan balance:
Company owned	$	181,637	$	124,060
Guaranteed by the Company		11,457		8,051
Combined average consumer loan balance^(a)	$	193,094	$	132,111
^(a)Non-GAAP measure.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSUMER LOAN FINANCIAL AND OPERATING DATA
(dollars in thousands, except where otherwise noted)

The following table summarizes consumer loan balances outstanding as of December 31, 2013 and 2012 (dollars in thousands):

	As of December 31,
	2013						2012
	Company Owned^(a)		Guaranteed by the Company^(a)		Combined^(b)		Company Owned^(a)		Guaranteed by the Company^(a)		Combined^(b)
Ending consumer loan balances:
Retail Services
Short-term loans	$	49,856	$	4,900	$	54,756	$	52,171	$	7,134	$	59,305
Installment loans		9,787		12,639		22,426		11,246		9,395		20,641
Total Retail Services, gross		59,643		17,539		77,182		63,417		16,529		79,946
E-Commerce
Domestic
Short-term loans		33,494		41,411		74,905		38,227		44,261		82,488
Line of credit accounts		66,247		-		66,247		42,700		-		42,700
Installment loans		76,770		-		76,770		45,996		-		45,996
Total Domestic, gross		176,511		41,411		217,922		126,923		44,261		171,184

Foreign
Short-term loans		47,886		-		47,886		108,899		3,946		112,845
Line of credit accounts		59,555		-		59,555		-		-		-
Installment loans		103,112		-		103,112		75,882		-		75,882
Total Foreign, gross		210,553		-		210,553		184,781		3,946		188,727
Total E-Commerce, gross		387,064		41,411		428,475		311,704		48,207		359,911

Total ending loan balance, gross		446,707		58,950		505,657		375,121		64,736		439,857
Less: Allowance and liabilities for losses		(87,866)		(3,080)		(90,946)		(85,703)		(3,498)		(89,201)
Total ending loan balance, net	$	358,841	$	55,870	$	414,711	$	289,418	$	61,238	$	350,656
Allowance and liability for losses as a % of consumer loan balances, gross		19.7%		5.2%		18.0%		22.8%		5.4%		20.3%

^(a)GAAP measure. The consumer loan balances guaranteed by the Company represent loans originated by third-party lenders through the Company's credit services organization programs (the “CSO programs”), so these balances are not recorded in the Company’s financial statements. However, the Company has established a liability for estimated losses in support of its guarantee of these loans, which is reflected in the table above and included in its financial statements.
^(b)Except for allowance and liability for estimated losses, amounts represent non-GAAP measures.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSUMER LOAN FINANCIAL AND OPERATING DATA
(dollars in thousands, except where otherwise noted)

The following tables summarize the consumer loans written and renewed for the three months and years ended December 31, 2013 and 2012 (dollars in thousands, except where otherwise noted).

	Three Months Ended December 31,
	2013						2012
	Company Owned^(a)		Guaranteed by the Company^(a)(b)		Combined^(a)		Company Owned^(a)		Guaranteed by the Company^(a)(b)		Combined^(a)
Amount of consumer loans written and renewed (dollars in thousands):
Retail Services
Short-term loans	$	187,199	$	21,337	$	208,536	$	198,645	$	36,216	$	234,861
Installment loans		1,966		7,863		9,829		2,033		7,289		9,322
Total Retail Services		189,165		29,200		218,365		200,678		43,505		244,183
E-Commerce
Domestic
Short-term loans		79,447		188,628		268,075		83,447		206,169		289,616
Line of credit accounts		50,262		-		50,262		33,681		-		33,681
Installment loans		50,769		-		50,769		32,244		-		32,244
Total Domestic		180,478		188,628		369,106		149,372		206,169		355,541

Foreign
Short-term loans		132,135		-		132,135		271,652		19,868		291,520
Line of credit accounts		75,614		-		75,614		-		-		-
Installment loans		87,917		-		87,917		41,319		-		41,319
Total Foreign		295,666		-		295,666		312,971		19,868		332,839
Total E-Commerce		476,144		188,628		664,772		462,343		226,037		688,380

Total amount of consumer loans written and renewed	$	665,309	$	217,828	$	883,137	$	663,021	$	269,542	$	932,563
Number of consumer loans written and renewed (in ones):
Retail Services
Short-term loans		390,255		40,651		430,906		414,714		68,508		483,222
Installment loans		1,713		4,515		6,228		1,836		1,339		3,175
Total Retail Services		391,968		45,166		437,134		416,550		69,847		486,397
E-Commerce
Domestic
Short-term loans		242,621		271,392		514,013		277,756		279,905		557,661
Line of credit accounts		195,868		-		195,868		126,292		-		126,292
Installment loans		40,844		-		40,844		30,017		-		30,017
Total Domestic		479,333		271,392		750,725		434,065		279,905		713,970

Foreign
Short-term loans		244,835		-		244,835		455,579		25,985		481,564
Line of credit accounts		228,744		-		228,744		-		-		-
Installment loans		73,379		-		73,379		34,711		-		34,711
Total Foreign		546,958		-		546,958		490,290		25,985		516,275
Total E-Commerce		1,026,291		271,392		1,297,683		924,355		305,890		1,230,245

Total number of consumer loans written and renewed		1,418,259		316,558		1,734,817		1,340,905		375,737		1,716,642
^(a)The disclosure regarding the amount and number of consumer loans written and renewed is statistical data that is not included in the Company’s financial statements.
^(b)Loans guaranteed by the Company represent loans originated by third-party lenders through the CSO programs.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSUMER LOAN FINANCIAL AND OPERATING DATA
(dollars in thousands, except where otherwise noted)

	Year Ended December 31,
	2013						2012
	Company Owned^(a)		Guaranteed by the Company^(a)(b)		Combined^(a)		Guaranteed by the Company^(a)		Guaranteed by the Company^(a)(b)		Guaranteed by the Company^(a)
Amount of consumer loans written and renewed (dollars in thousands):
Retail Services
Short-term loans	$	712,253	$	104,236	$	816,489	$	743,575	$	145,221	$	888,796
Installment loans		7,488		21,734		29,222		7,723		17,902		25,625
Total Retail Services		719,741		125,970		845,711		751,298		163,123		914,421
E-Commerce
Domestic
Short-term loans		302,353		708,828		1,011,181		331,754		747,533		1,079,287
Line of credit accounts		163,805		-		163,805		116,360		-		116,360
Installment loans		155,068		-		155,068		89,598		-		89,598
Total Domestic		621,226		708,828		1,330,054		537,712		747,533		1,285,245

Foreign
Short-term loans		820,243		14,572		834,815		1,010,334		72,592		1,082,926
Line of credit accounts		147,844		-		147,844		-		-		-
Installment loans		283,615		-		283,615		133,109		-		133,109
Total Foreign		1,251,702		14,572		1,266,274		1,143,443		72,592		1,216,035
Total E-Commerce		1,872,928		723,400		2,596,328		1,681,155		820,125		2,501,280

Total amount of consumer loans written and renewed	$	2,592,669	$	849,370	$	3,442,039	$	2,432,453	$	983,248	$	3,415,701
Number of consumer loans written and renewed (in ones):
Retail Services
Short-term loans		1,490,507		201,400		1,691,907		1,574,163		269,144		1,843,307
Installment loans		6,735		7,060		13,795		7,088		2,845		9,933
Total Retail Services		1,497,242		208,460		1,705,702		1,581,251		271,989		1,853,240
E-Commerce
Domestic
Short-term loans		979,890		998,220		1,978,110		1,062,105		1,021,057		2,083,162
Line of credit accounts		618,979		-		618,979		417,171		-		417,171
Installment loans		134,350		-		134,350		87,272		-		87,272
Total Domestic		1,733,219		998,220		2,731,439		1,566,548		1,021,057		2,587,605

Foreign
Short-term loans		1,491,931		19,106		1,511,037		1,815,420		95,630		1,911,050
Line of credit accounts		423,692		-		423,692		-		-		-
Installment loans		239,631		-		239,631		115,250		-		115,250
Total Foreign		2,155,254		19,106		2,174,360		1,930,670		95,630		2,026,300
Total E-Commerce		3,888,473		1,017,326		4,905,799		3,497,218		1,116,687		4,613,905

Total number of consumer loans written and renewed		5,385,715		1,225,786		6,611,501		5,078,469		1,388,676		6,467,145

^(a)The disclosure regarding the amount and number of consumer loans written and renewed is statistical data that is not included in the Company’s financial statements.
^(b)Loans guaranteed by the Company represent loans originated by third-party lenders through the CSO programs.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
(dollars in thousands)


The following tables contain operating segment data for the three months and years ended December 31, 2013 and 2012 (dollars in thousands).

	Retail Services								E-Commerce
	Domestic			Foreign			Total		Domestic		Foreign		Total		Corporate		Consolidated

Three Months Ended December 31, 2013
Revenue
Pawn loan fees and service charges	$	82,003		$	1,856		$	83,859	$	-	$	-	$	-	$	-	$	83,859
Proceeds from disposition of merchandise		150,991			5,539			156,530		-		-		-		-		156,530
Consumer loan fees		28,738			-			28,738		111,375		97,871		209,246		-		237,984
Other		1,669			88			1,757		44		10		54		162		1,973
Total revenue		263,401			7,483			270,884		111,419		97,881		209,300		162		480,346
Cost of revenue
Disposed merchandise		103,801			5,415			109,216		-		-		-		-		109,216
Consumer loan loss provision		9,432			-			9,432		46,900		43,149		90,049		-		99,481
Total cost of revenue		113,233			5,415			118,648		46,900		43,149		90,049		-		208,697

Net revenue		150,168			2,068			152,236		64,519		54,732		119,251		162		271,649
Expenses
Operations and administration		96,620			3,445			100,065		43,720		33,679		77,399		18,798		196,262
Depreciation and amortization		10,064			404			10,468		3,650		507		4,157		4,332		18,957
Total expenses		106,684			3,849			110,533		47,370		34,186		81,556		23,130		215,219
Income (loss) from operations	$	43,484		$	(1,781)		$	41,703	$	17,149	$	20,546	$	37,695	$	(22,968)	$	56,430
As of December 31, 2013
Total assets	$	1,177,684		$	119,448		$	1,297,132	$	431,285	$	217,415	$	648,700	$	135,909	$	2,081,741
Goodwill							$	495,214					$	210,365			$	705,579

		Retail Services							E-Commerce
		Domestic			Foreign		Total		Domestic		Foreign		Total		Corporate		Consolidated

Three Months Ended December 31, 2012
Revenue
Pawn loan fees and service charges		$	77,354		$	2,125	$	79,479	$	-	$	-	$	-	$	-	$	79,479
Proceeds from disposition of merchandise			175,546			10,389		185,935		-		-		-		-		185,935
Consumer loan fees			32,496			-		32,496		100,484		89,884		190,368		-		222,864
Other			1,943			697		2,640		499		14		513		173		3,326
Total revenue			287,339			13,211		300,550		100,983		89,898		190,881		173		491,604
Cost of revenue
Disposed merchandise			118,311			8,990		127,301		-		-		-		-		127,301
Consumer loan loss provision			10,095			-		10,095		47,532		39,588		87,120		-		97,215
Total cost of revenue			128,406			8,990		137,396		47,532		39,588		87,120		-		224,516
Net revenue			158,933			4,221		163,154		53,451		50,310		103,761		173		267,088
Expenses
Operations and administration			104,837			14,066		118,903		33,216		32,604		65,820		14,331		199,054
Depreciation and amortization			8,524			2,121		10,645		3,611		380		3,991		3,910		18,546
Total expenses			113,361			16,187		129,548		36,827		32,984		69,811		18,241		217,600
Income (loss) from operations		$	45,572		$	(11,966)	$	33,606	$	16,624	$	17,326	$	33,950	$	(18,068)	$	49,488
As of December 31, 2012
Total assets		$	1,031,431		$	85,607	$	1,117,038	$	391,068	$	179,554	$	570,622	$	130,598	$	1,818,258
Goodwill							$	397,845					$	210,371			$	608,216


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
(dollars in thousands)

	Retail Services						E-Commerce
	Domestic		Foreign		Total		Domestic		Foreign		Total		Corporate		Consolidated

Year Ended December 31, 2013
Revenue
Pawn loan fees and service charges	$	304,511	$	7,288	$	311,799	$	-	$	-	$	-	$	-	$	311,799
Proceeds from disposition of merchandise		576,707		18,732		595,439		-		-		-		-		595,439
Consumer loan fees		113,211		-		113,211		394,472		370,500		764,972		-		878,183
Other		7,818		1,076		8,894		1,095		102		1,197		1,714		11,805
Total revenue		1,002,247		27,096		1,029,343		395,567		370,602		766,169		1,714		1,797,226
Cost of revenue
Disposed merchandise		394,370		16,243		410,613		-		-		-		-		410,613
Consumer loan loss provision		33,359		-		33,359		159,291		158,605		317,896		-		351,255
Total cost of revenue		427,729		16,243		443,972		159,291		158,605		317,896		-		761,868

Net revenue		574,518		10,853		585,371		236,276		211,997		448,273		1,714		1,035,358
Expenses
Operations and administration		388,029		13,448		401,477		143,626		134,879		278,505		70,322		750,304
Depreciation and amortization		37,643		1,997		39,640		14,535		2,608		17,143		16,488		73,271
Total expenses		425,672		15,445		441,117		158,161		137,487		295,648		86,810		823,575
Income (loss) from operations	$	148,846	$	(4,592)	$	144,254	$	78,115	$	74,510	$	152,625	$	(85,096)	$	211,783

	Retail Services						E-Commerce
	Domestic		Foreign		Total		Domestic		Foreign		Total		Corporate		Consolidated

Year Ended December 31, 2012
Revenue
Pawn loan fees and service charges	$	288,161	$	12,768	$	300,929	$	-	$	-	$	-	$	-	$	300,929
Proceeds from disposition of merchandise		657,104		46,663		703,767		-		-		-		-		703,767
Consumer loan fees		121,892		-		121,892		332,752		326,876		659,628		-		781,520
Other		9,028		1,209		10,237		1,326		33		1,359		2,618		14,214
Total revenue		1,076,185		60,640		1,136,825		334,078		326,909		660,987		2,618		1,800,430
Cost of revenue
Disposed merchandise		437,099		41,080		478,179		-		-		-		-		478,179
Consumer loan loss provision		29,225		-		29,225		143,006		144,063		287,069		-		316,294
Total cost of revenue		466,324		41,080		507,404		143,006		144,063		287,069		-		794,473

Net revenue		609,861		19,560		629,421		191,072		182,846		373,918		2,618		1,005,957
Expenses
Operations and administration		369,174		44,287		413,461		116,202		118,156		234,358		66,795		714,614
Depreciation and amortization		30,978		16,634		47,612		11,987		1,285		13,272		14,544		75,428
Total expenses		400,152		60,921		461,073		128,189		119,441		247,630		81,339		790,042
Income (loss) from operations	$	209,709	$	(41,361)	$	168,348	$	62,883	$	63,405	$	126,288	$	(78,721)	$	215,915

Corporate operations primarily include corporate expenses, such as legal, occupancy, and other costs related to corporate service functions, such as executive oversight, insurance and risk management, public and government relations, internal audit, treasury, payroll, compliance and licensing, finance, accounting, tax and information systems (except for online lending systems, which are included in the e-commerce segment). Corporate income includes miscellaneous income not directly attributable to the Company’s segments. Corporate assets primarily include: corporate property and equipment, nonqualified savings plan assets, marketable securities, foreign exchange forward contracts and prepaid insurance.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
LOCATION INFORMATION
Retail Services Segment

The following table sets forth the number of domestic and foreign Company-owned and franchised locations in the Company’s retail services segment offering pawn lending, consumer lending, and other services as of December 31, 2013 and 2012. The Company’s domestic retail services locations operate under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance,” “Cashland” and “Mr. Payroll.” In addition, some recently acquired domestic retail services locations operate under various names that are expected to be changed to “Cash America Pawn” during 2014. The Company’s foreign retail services locations operate under the name “Cash America casa de empeño”.









	As of December 31,
	2013			2012
	Domestic^(a)	Foreign	Total	Domestic^(a)	Foreign	Total
Retail services locations offering:
Both pawn and consumer lending	582	-	582	581	-	581
Pawn lending only	247	47	294	167	47	214
Consumer lending only	40	-	40	83	-	83
Other ^(b)	90	-	90	91	-	91
Total retail services	959	47	1,006	922	47	969
^(a)Except as described in (b) below, includes locations that operate in 22 states in the United States as of December 31, 2013 and 2012, respectively.
^(b)As of December 31, 2013 and 2012, includes 90 and 91 unconsolidated franchised check cashing locations, respectively. As of December 31, 2013 and 2012, includes locations that operate in 14 and 15 states in the United States, respectively.

E-Commerce Segment

As of December 31, 2013 and 2012, the Company’s e-commerce segment operated in 32 states in the United States and in three other foreign countries:

in the United States at http://www.cashnetusa.com and http://www.netcredit.com,
in the United Kingdom at http://www.quickquid.co.uk and http://www.poundstopocket.co.uk,
in Australia at http://www.dollarsdirect.com.au, and
in Canada at http://www.dollarsdirect.ca.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NON-GAAP DISCLOSURE
ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE

Non-GAAP Disclosure

In addition to the financial information prepared in conformity with GAAP, the Company provides historical non-GAAP financial information. Management 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 its GAAP results, provide a more complete understanding of factors and trends affecting its 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 or superior to, its 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.

Adjusted Earnings and Adjusted Earnings Per Share

In addition to reporting financial results in accordance with GAAP, the Company has provided adjusted net income and diluted earnings per share attributable to the Company, adjusted earnings and adjusted earnings per share (collectively, the “Adjusted Earnings Measures”), which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which provides a more complete understanding of the Company’s financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as the Adjusted Earnings Measures, to assess operating performance and that such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, management believes that the adjustments shown below, especially the adjustments for events that occurred during the three months and years ended December 31, 2013 and 2012, such as the closure of 36 consumer lending-only retail services locations in Texas during the second half of 2013 (“Texas Consumer Loan Store Closures”), charges related to extinguishment of a portion of the Company’s convertible senior notes (“Debt Extinguishment”), the penalty paid to the Consumer Financial Protection Bureau (“CFPB”) in connection with the issuance of a consent order by the CFPB (“Regulatory Penalty”), the charges related to the Company’s settlement of litigation matter in 2013 (“2013 Litigation Settlement”), an income tax benefit related to the change of tax basis in the stock of one of its subsidiaries in connection with the Mexico Reorganization (as defined below) (“Creazione Deduction”), the withdrawal in July 2012 of the proposed initial public offering of the Company's wholly-owned subsidiary, Enova International, Inc. (“Enova IPO”), the reorganization of the Company's Mexico-based pawn operations during 2012 (“Mexico Reorganization”) and the voluntary reimbursements to Ohio customers during 2012 (“Ohio Reimbursements”) are useful to investors in order to allow them to compare the Company’s financial results for the current quarter with the previous periods shown.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NON-GAAP DISCLOSURE
ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE

The following table provides a reconciliation for the three months and years ended December 31, 2013 and 2012, respectively, between net income attributable to the Company and diluted earnings per share calculated in accordance with GAAP to the Adjusted Earnings Measures, which are shown net of tax (dollars in thousands, except per share data):

	Three Months Ended								Year Ended
	December 31,								December 31,
	2013				2012					2013				2012
	$		Per Diluted Share^(a)		$		Per Diluted Share^(a)		$		Per Diluted Share^(a)		$		Per Diluted Share^(a)
Net income and diluted earnings per share attributable to Cash America International, Inc.	$	27,284	$	0.91	$	24,480	$	0.79	$	142,528	$	4.66	$	107,470	$	3.42
Adjustments (net of tax):
Texas Consumer Loan Store Closures^(b)		865		0.03		-		-		865		0.03		-		-
Loss on Debt Extinguishment^(c)		164		0.01		-		-		382		0.01		-		-
Regulatory Penalty^(d)		5,000		0.17		-		-		5,000		0.16		-		-
2013 Litigation Settlement^(e)		-		-		-		-		11,340		0.37		-		-
Tax benefit related to Creazione Deduction^(f)		-		-		-		-		(33,201)		(1.09)		-		-
Charges related to withdrawn proposed Enova IPO^(g)		-		-		-		-		-		-		2,424		0.07
Charges related to the Mexico Reorganization^(h)		-		-		6,965		0.23		-		-		25,421		0.81
Charges related to Ohio Reimbursements⁽ⁱ⁾		(3,209)		(0.11)		8,442		0.27		(3,209)		(0.10)		8,442		0.27
Adjusted net income and diluted earnings per share attributable to the Company		30,104		1.01		39,887		1.29		123,705		4.04		143,757		4.57
Other adjustments (net of tax):
Intangible asset amortization		907		0.03		740		0.03		3,582		0.12		2,791		0.09
Non-cash equity-based compensation		636		0.02		515		0.02		3,092		0.10		3,007		0.10
Convertible debt non-cash interest and issuance cost amortization		596		0.02		612		0.02		2,493		0.09		2,386		0.07
Foreign currency transaction loss		96		-		151		-		759		0.02		196		0.01
Adjusted earnings and adjusted earnings per share	$	32,339	$	1.08	$	41,905	$	1.36	$	133,631	$	4.37	$	152,137	$	4.84


^(a) Diluted shares are calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period.
^(b) Represents charges related to the Texas Consumer Loan Store Closures of $1.4 million, net of tax benefit of $0.5 million.
^(c)Represents charges related to the Debt Extinguishment. For the three months ended December 31, 2013, represents $0.3 million of charges, net of tax benefit of $0.1 million. For the year ended December 31, 2013, represents $0.6 million of charges, net of tax benefit of $0.2 million.
^(d)Represents the amount paid in connection with the Regulatory Penalty, which is nondeductible for tax purposes.
^(e)Represents charges related to the 2013 Litigation Settlement of $18.0 million, net of tax benefit of $6.7 million.
^(f) Represents an income tax benefit related to the Creazione Deduction.
^(g) Represents charges directly related to the withdrawn proposed Enova IPO. For the year ended December 31, 2012, represents $3.9 million of charges, net of tax benefit of $1.5 million.
^(h)Represents charges related to the Mexico Reorganization. For the three months ended December 31, 2012, represents $7.0 million of charges. For the year ended December 31, 2012, represents $28.9 million of charges, net of tax benefit of $1.2 million and noncontrolling interest of $2.3 million.
⁽ⁱ⁾ Represents charges related to the Ohio Reimbursements. For the three months and year ended December 31, 2012, represents $13.4 million of charges, net of tax benefit of $5.0 million. For the three months and year ended December 31, 2013, the Company adjusted its estimate of the expected remaining liability by $5.0 million, net of tax provision of $1.8 million.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NON-GAAP DISCLOSURE
ADJUSTED EBITDA

Adjusted EBITDA

The table below shows adjusted EBITDA, a non-GAAP measure that the Company defines as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, loss on extinguishment of debt, equity in earnings or loss of unconsolidated subsidiary, taxes and including the net income or loss attributable to noncontrolling interests. Management believes adjusted EBITDA is used by investors to analyze operating performance and evaluate the Company’s ability to incur and service debt and its capacity for making capital expenditures. Adjusted EBITDA is also useful to investors to help assess the Company’s liquidity and estimated enterprise value. In addition, management believes that the adjustments shown below, especially the adjustments for the Texas Consumer Loan Store Closures, the 2013 Litigation Settlement, the Creazione Deduction, and the charges related to events that occurred during 2012, such as the Mexico Reorganization, the withdrawal of the proposed Enova IPO, and the charges related to the Ohio Reimbursements, are useful to investors in order to allow them to compare the Company’s financial results across the periods shown. The computation of adjusted EBITDA as presented below may differ from the computation of similarly-titled measures provided by other companies (dollars in thousands):

	Year Ended December 31,
	2013			2012
Net income attributable to Cash America International, Inc.		$	142,528		$	107,470
Adjustments:
Texas Consumer Loan Store Closures^(a)			1,373
Regulatory Penalty^(b)			5,000
2013 Litigation Settlement^(c)			18,000
Charges related to withdrawn proposed Enova IPO^(d)			-			3,879
Charges related to Mexico Reorganization^(e)			-			28,873
Charges related to Ohio Reimbursements^(f)			(5,000)			13,400
Depreciation and amortization expenses^(g)			73,092			62,864
Interest expense, net			36,245			28,987
Foreign currency transaction loss			1,205			313
Loss on extinguishment of debt			607			-
Equity in loss of unconsolidated subsidiary			136			295
Provision for income taxes^(h)			30,754			77,495
Net income (loss) attributable to the noncontrolling interest			308			(5,806)	⁽ⁱ⁾
Adjusted EBITDA		$	304,248		$	317,770

Adjusted EBITDA margin calculated as follows:
Total revenue		$	1,797,226		$	1,800,430
Adjusted EBITDA			304,248			317,770
Adjusted EBITDA as a percentage of total revenue			16.9%			17.6%

^(a) Represents charges related to the Texas Consumer Loan Store Closures of $1.4 million, before tax benefit of $0.5 million.
^(b) Represents the amount paid in connection with the Regulatory Penalty, which is nondeductible for tax purposes.
^(c)Represents charges related to the 2013 Litigation Settlement of $18.0 million, before tax benefit of $6.7 million.
^(d)Represents charges directly related to the withdrawn Enova IPO, before tax benefit of $1.5 million.
^(e) Represents charges related to the Mexico Reorganization, before a tax benefit of $1.2 million and noncontrolling interest of $2.3 million. Includes $12.6 million and $7.2 million of depreciation and amortization expenses and charges for the recognition of a deferred tax asset valuation allowance, respectively, as noted in (g) and (h) below.
^(f) For the year ended December 31, 2012, represents charges related to the Ohio Reimbursements, before tax benefit of $5.0 million. For the year ended December 31, 2013, the Company adjusted its estimate of the expected remaining liability by $5.0 million, before tax provision of $1.8 million.
^(g) Excludes $0.2 million and $12.6 million of depreciation and amortization expenses for the years ended December 31, 2013 and 2012, respectively, which are included in “Texas Consumer Loan Store Closures” and “Charges related to the Mexico Reorganization” for the respective periods.
^(h) For the year ended December 31, 2013, includes an income tax benefit of $33.2 million related to the Creazione Deduction and an income tax provision of $1.8 million related to the change in estimate for the Ohio Reimbursements. For the year ended December 31, 2012, excludes a $7.2 million charge for the recognition of a deferred tax asset valuation allowance which is included in “Charges related to the Mexico Reorganization” in the table above and includes an income tax benefit related to the Mexico Reorganization of $1.2 million.
⁽ⁱ⁾Includes $2.3 million of noncontrolling interests related to the Mexico Reorganization.

CONTACT:
Cash America International, Inc.
Thomas A. Bessant, Jr., 817-335-1100

Cash America International Inactive 8-KCash America Announces Fourth Quarter Results and Declares Dividend