(CASH AMERICA INTERNATIONAL LOGO)
ADDITIONAL INFORMATION: FOR IMMEDIATE RELEASE
Thomas A. Bessant, Jr.
(817) 335-1100
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CASH AMERICA TO ACQUIRE 118 STORE CONSUMER FINANCE CHAIN
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Fort Worth, Texas (July 1, 2003) - - Cash America International, Inc. (NYSE:
PWN), the "Company", announced today that it has executed a purchase agreement
for the future acquisition of Cashland, Inc. Cashland operates a chain of 118
consumer finance centers offering short-term cash advances, check cashing, money
transfer and similar services. Based in Dayton, Ohio, Cashland has expanded its
presence throughout the State through new store openings since its founding in
1987. The Company reported the initial valuation of the acquisition to be
approximately $53 million, with the closing expected to take place in the next
60 days, subject to customary due diligence, approvals of regulatory agencies
and financing.
Upon completion of the transaction, Cash America will expand its position as the
publicly owned market leader providing small short-term loans that will reach
consumers through almost 600 lending locations in 17 states and two foreign
countries by year end 2003. Cash America is best known for its offering of
non-recourse loans to consumers, commonly referred to as pawn loans, which are
currently provided in 473 locations. During fiscal 2000 the Company began
offering short-term cash advances in many of its lending locations. The positive
customer response to the product led the Company to expand the offering into
virtually all of its locations by the end of 2001. The addition of the
complementary short-term cash advance product combined with the growth of pawn
lending activities led to increases in both revenue and earnings of Cash America
in subsequent periods.
"The acquisition of Cashland forwards Cash America's strategic initiative of
expanding our reach into new markets with new customers and new financial
services. Cashland is the largest provider of short-term cash advances in Ohio,
one of the most well established markets for such products in the United States.
Cashland's management team has a proven track record of successful unit
expansion and profitability with its dominant short-term cash advance product.
We expect this management team to continue leading Cashland's growth in future
periods through the addition of newly opened locations in Ohio as well as other
states. Cashland, like Cash America, is focused on the highest standards of
customer service while satisfying the consumer's need for short-term capital,"
said Daniel R. Feehan, Chief Executive Officer of Cash America International,
Inc.
The terms of the transaction provide for the initial purchase of assets for $53
million, which will be comprised of cash and shares of Cash America stock. The
terms of the transaction include the potential for additional consideration to
be paid to the sellers based on future earnings performance.
In a separate press release issued today, Cash America reported that it has
raised its estimated range for net earnings per share for the second quarter,
ended June 30, 2003. Management's revised upward estimate of second quarter
earnings is not associated with the potential acquisition of Cashland.
Cash America will conduct a conference call to discuss the acquisition of
Cashland on Wednesday, July 2, 2003, at 7:30 AM 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.
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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 to individuals, commonly
referred to as pawn loans, through 473 locations in 17 states and two foreign
countries, and the Company also offers 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.
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.
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