EXHIBIT 99.1
(CASH AMERICA INTERNATIONAL, INC. LOGO)
ADDITIONAL INFORMATION: FOR IMMEDIATE RELEASE
Thomas A. Bessant, Jr.
(817) 335-1100
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CASH AMERICA ANNOUNCES 30% INCREASE IN FIRST QUARTER NET INCOME AND
RAISES FULL YEAR 2003 GUIDANCE
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Fort Worth, Texas (April 24, 2003) - - Cash America International, Inc. (NYSE:
PWN) reported today that net income for the first quarter, ended March 31, 2003
was up 30% from the same period in 2002. Net income for the first three months
of 2003 was $6,769,000 (27 cents per share) compared to $5,203,000 (21 cents per
share) in 2002. The year over year rise in earnings was due to growth in service
charges and fees from the Company's lending activities, which increased total
revenue 5% to $105,505,000 in 2003 from $100,720,000 in 2002. Combined finance
and service charges on pawn loans and cash advance fees increased 17% in the
first quarter. Earnings also benefited from higher profit margins on the
disposition of merchandise, which contributed to a 13% increase in the Company's
net revenue in 2003 over the prior year's first quarter.
The results for the first quarter are consistent with the Company's announcement
earlier in the month that earnings for the quarter would exceed management's
initial expectations of between 24 and 25 cents per share. Commenting on the
results for the first quarter, Daniel R. Feehan, President and Chief Executive
Officer said, "We outperformed our goals for net revenue in the period because
our lending activities continue to post strong results. Complementing the
healthy growth and performance in pawn loans and cash advances were increased
profits from the sale of merchandise."
Cash America will conduct a conference call to discuss its first quarter
earnings on Thursday, April 24, 2003, at 3:45 PM CST. A live web cast of the
call will be available on the home page of the Company's corporate web site
(www.cashamerica.com). To listen to the live call, please go to the web site at
least fifteen minutes early to register, download, and install any necessary
audio software.
Forward-Looking Information
As the Company enters the second quarter of fiscal 2003 it has higher levels of
both pawn loans and short term cash advances than at the end of the same period
of 2002. These higher asset levels provide earnings momentum that should
continue as long as this trend is sustained. At this time management believes
that the current economic environment and the higher prevailing market value of
gold will allow for the growth in pawn loan balances to satisfy higher customer
demand for pawn loans. Management believes these trends and increases in the
short term cash advance balances in response to consumer demand for this
alternative product will result in sustained earnings growth for the Company in
fiscal 2003. Based on these assumptions, management has revised and increased
its forecasted earnings from continuing operations for fiscal 2003 to be between
89 and 94 cents per share. This compares to 75 cents per share for fiscal 2002.
The expected earnings for 2003 will continue to track the normal seasonal
business cycle of the Company with heavier concentrations in the first and
fourth quarters.
In the near term, management expects earnings from continuing operations for the
second quarter of fiscal 2003 to be between 13 and 14 cents per share compared
to 11 cents per share in the first quarter of 2002.
Cash America International, Inc. is a provider of specialty financial services
to individuals in the United States, United Kingdom and Sweden. Cash America is
the largest provider of secured non-recourse loans, commonly referred to as pawn
loans, to individuals through 462 locations in 17 states and two foreign
countries. As an alternative to a pawn loan, the Company also offers unsecured
short term cash advances in many of its U.S. and U.K. locations. In addition,
the Company provides check cashing services through its 139 franchised and
Company-owned "Mr. Payroll" check cashing centers.
* * more * *
This release contains forward-looking statements about the business, financial
condition and prospects of Cash America International, Inc. and its subsidiaries
("the Company"). The actual results of the Company could differ materially from
those indicated by the forward-looking statements because of various risks and
uncertainties including, without limitation, changes in demand for the Company's
services, the actions of third parties who offer products and services at the
Company's locations, changes in competition, the ability of the Company to open
new operating units in accordance with its plans, economic conditions, real
estate market fluctuations, interest rate fluctuations, changes in the capital
markets, changes in tax and other laws and governmental rules and regulations
applicable to the Company's business, and other risks indicated in the Company's
filings with the Securities and Exchange Commission. These risks and
uncertainties are beyond the ability of the Company to control, and, in many
cases, the Company cannot predict all of the risks and uncertainties that could
cause its actual results to differ materially from those indicated by the
forward-looking statements. When used in this release, terms such as "believes",
"estimates", "plans", "expects", "anticipates" and similar expressions as they
relate to the Company or its management are intended to identify forward-looking
statements. The Company disclaims any intention or obligation to update or
revise any forward-looking statements to reflect events or circumstances
occurring after the date of this release.
* * *
CASH AMERICA INTERNATIONAL, INC.
HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS
(In thousands, except per share data)
<Table>
<Caption>
Three Months Ended March 31,
--------------------------------
2003 2002
-------------- --------------
CONSOLIDATED OPERATIONS:
Total revenue $ 105,505 $ 100,720
Net revenue 63,951 56,839
Total operating expenses 50,986 46,429
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INCOME FROM OPERATIONS 12,965 10,410
-------------- --------------
Income before income taxes 10,789 8,131
-------------- --------------
NET INCOME $ 6,769 $ 5,203
============== ==============
Net income per share:
Basic $ 0.28 $ 0.21
Diluted $ 0.27 $ 0.21
Weighted average shares - Basic 24,242 24,521
Weighted average shares - Diluted 24,784 24,862
-------------- --------------
LENDING OPERATIONS FINANCIAL AND OPERATIONAL DATA:
PAWN OPERATIONS AS OF-- 3/31/2003 3/31/2002
-------------- --------------
Domestic pawn loans outstanding $ 69,921 $ 65,127
Foreign pawn loans outstanding 51,660 40,476
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Total loans outstanding $ 121,581 $ 105,603
Total merchandise held for disposition, net $ 49,216 $ 55,101
Amounts per owned lending location --
Domestic only:
Loans outstanding $ 179 $ 162
Merchandise held for disposition $ 111 $ 128
Consolidated:
Loans outstanding $ 268 $ 230
Merchandise held for disposition $ 109 $ 120
Number of pawnshop locations (not in thousands)--
Company owned 453 459
Franchised 9 13
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Total locations 462 472
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SMALL CONSUMER CASH ADVANCES ("CASH ADVANCES")--
2003 2002
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Activity during the three months ended March 31,-- (A)
Total amount of cash advances written $ 38,211 $ 21,687
Number of cash advances written (not in thousands) 129,737 76,472
Average cash advance amount written (not in thousands) $ 295 $ 284
Average number of locations offering cash advances (not in thousands) 390 390
Balances As of March 31,--
Combined cash advances outstanding (A) $ 9,213 $ 5,219
============== ==============
Company-owned cash advances: (B)
Cash advances and fees outstanding $ 8,511 $ 1,753
Less: Allowance for losses (1,363) (495)
-------------- --------------
Net cash advances and fees outstanding $ 7,148 $ 1,258
============== ==============
</Table>
(A) Includes cash advances made by the Company and cash advances made by
third-party financial institutions.
(B) Amounts recorded in the company's consolidated financial statements.
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<Table>
<Caption>
(UNAUDITED)
March 31, December 31,
2003 2002 2002
--------- --------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 5,256 $ 7,293 $ 3,951
Pawn loans 121,581 105,603 127,388
Cash advances, net 7,148 1,258 2,210
Merchandise held for disposition, net 49,216 55,101 54,444
Finance and service charges receivable 19,371 17,403 21,096
Other receivables and prepaid expenses 7,492 6,416 8,671
Deferred tax assets 4,759 7,437 5,392
Net current assets of discontinued operations -- 3,175 --
--------- --------- ------------
Total current assets 214,823 203,686 223,152
Property and equipment, net 66,929 67,302 67,254
Goodwill 80,658 77,058 79,833
Other assets 3,518 5,559 6,239
Deferred tax assets -- 1,470 --
Net non-current assets of discontinued operations -- 5,424 --
--------- --------- ------------
Total assets $ 365,928 $ 360,499 $ 376,478
========= ========= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 20,783 $ 17,182 $ 24,297
Customer deposits 4,455 4,542 4,050
Reserve for disposal of discontinued operations 503 7,722 623
Income taxes currently payable 3,693 2,752 2,086
Current portion of long-term debt 12,571 8,671 12,571
--------- --------- ------------
Total current liabilities 42,005 40,869 43,627
Deferred tax liabilities 4,874 1,699 4,385
Long-term debt 121,764 146,388 136,131
--------- --------- ------------
Stockholders' equity:
Common stock, $.10 par value per
share, 80,000,000 shares authorized 3,024 3,024 3,024
Paid in surplus 127,819 127,821 127,819
Retained earnings 119,743 100,088 113,278
Accumulated other comprehensive loss (3,208) (11,630) (2,718)
Notes receivable - stockholders (5,864) (5,890) (5,864)
--------- --------- ------------
241,514 213,413 235,539
Less -- shares held in treasury, at cost (44,229) (41,870) (43,204)
--------- --------- ------------
Total stockholders' equity 197,285 171,543 192,335
--------- --------- ------------
Total liabilities and stockholders' equity $ 365,928 $ 360,499 $ 376,478
========= ========= ============
</Table>
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
<Table>
<Caption>
(UNAUDITED)
---------------------------
Three Months Ended
March 31,
2003 2002
------------ ------------
REVENUE
Finance and service charges $ 31,455 $ 28,820
Proceeds from disposition of merchandise 66,119 67,034
Cash advance fees 6,466 3,562
Check cashing royalties and fees 1,465 1,304
------------ ------------
TOTAL REVENUE 105,505 100,720
------------ ------------
COSTS OF REVENUE
Disposed merchandise 41,554 43,881
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NET REVENUE 63,951 56,839
============ ============
OPERATING EXPENSES
Lending operations 36,540 34,006
Cash advance loss provision 1,332 901
Check cashing operations 430 439
Administration 8,995 7,497
Depreciation and amortization 3,689 3,586
------------ ------------
Total operating expenses 50,986 46,429
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INCOME FROM OPERATIONS 12,965 10,410
Interest expense, net 2,176 2,243
Loss from derivative valuation fluctuations -- 36
------------ ------------
Income before income taxes 10,789 8,131
Provision for income taxes 4,020 2,928
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NET INCOME $ 6,769 $ 5,203
============ ============
Net income per share:
Basic $ 0.28 $ 0.21
Diluted 0.27 0.21
------------ ------------
Weighted average common shares outstanding:
Basic 24,242 24,521
Diluted 24,784 24,862
============ ============
</Table>
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(In thousands)
<Table>
<Caption>
(UNAUDITED)
----------------------------------------------------------------
2003
----------------------------------------------------------------
Lending
------------------------------------
United Check
States Foreign Total Cashing Consolidated
---------- ---------- ---------- ---------- ------------
REVENUE
Finance and service charges $ 24,709 $ 6,746 $ 31,455 $ -- $ 31,455
Proceeds from disposition of merchandise 63,062 3,057 66,119 -- 66,119
Cash advance fees 6,466 -- 6,466 -- 6,466
Check cashing royalties and fees -- 382 382 1,083 1,465
---------- ---------- ---------- ---------- ------------
TOTAL REVENUE 94,237 10,185 104,422 1,083 105,505
---------- ---------- ---------- ---------- ------------
COSTS OF REVENUE
Disposed merchandise 39,503 2,051 41,554 -- 41,554
---------- ---------- ---------- ---------- ------------
NET REVENUE 54,734 8,134 62,868 1,083 63,951
========== ========== ========== ========== ============
OPERATING EXPENSES
Lending operations 32,905 3,635 36,540 -- 36,540
Cash advance loss provision 1,332 -- 1,332 -- 1,332
Check cashing operations -- -- -- 430 430
Administration 7,736 1,084 8,820 175 8,995
Depreciation and amortization 2,882 685 3,567 122 3,689
---------- ---------- ---------- ---------- ------------
Total operating expenses 44,855 5,404 50,259 727 50,986
---------- ---------- ---------- ---------- ------------
INCOME FROM OPERATIONS $ 9,879 $ 2,730 $ 12,609 $ 356 $ 12,965
========== ========== ========== ========== ============
</Table>
<Table>
<Caption>
2002
----------------------------------------------------------------
Lending
------------------------------------
United Check
States Foreign Total Cashing Consolidated
---------- ---------- ---------- ---------- ------------
REVENUE
Finance and service charges $ 23,315 $ 5,505 $ 28,820 $ -- $ 28,820
Proceeds from disposition of merchandise 64,557 2,477 67,034 -- 67,034
Cash advance fees 3,562 -- 3,562 -- 3,562
Check cashing royalties and fees -- 184 184 1,120 1,304
---------- ---------- ---------- ---------- ------------
TOTAL REVENUE 91,434 8,166 99,600 1,120 100,720
---------- ---------- ---------- ---------- ------------
COSTS OF REVENUE
Disposed merchandise 42,076 1,805 43,881 -- 43,881
---------- ---------- ---------- ---------- ------------
NET REVENUE 49,358 6,361 55,719 1,120 56,839
========== ========== ========== ========== ============
OPERATING EXPENSES
Lending operations 31,270 2,736 34,006 -- 34,006
Cash advance loss provision 901 -- 901 -- 901
Check cashing operations -- -- -- 439 439
Administration 6,348 962 7,310 187 7,497
Depreciation and amortization 2,870 564 3,434 152 3,586
---------- ---------- ---------- ---------- ------------
Total operating expenses 41,389 4,262 45,651 778 46,429
---------- ---------- ---------- ---------- ------------
INCOME FROM OPERATIONS $ 7,969 $ 2,099 $ 10,068 $ 342 $ 10,410
========== ========== ========== ========== ============
</Table>