EXHIBIT 99.1
ADDITIONAL INFORMATION: FOR IMMEDIATE RELEASE
Thomas A. Bessant, Jr.
(817) 335-1100
********************************************************************************
CASH AMERICA ANNOUNCES SECOND QUARTER RESULTS
AND RAISES FULL YEAR 2003 EARNINGS GUIDANCE
********************************************************************************
Fort Worth, Texas (July 24, 2003) -- Cash America International, Inc. (NYSE:
PWN) reported today that net income for the second quarter ended June 30, 2003
was $5,651,000 (23 cents per share) which includes an after tax gain on the sale
of a non-operating asset of $1.1 million (5 cents per share). Excluding the
gain, net income in the second quarter of 2003 would have been $4,507,000 (18
cents per share) compared to income from continuing operations of $2,682,000 (11
cents per share) in the second quarter of 2002, representing an increase of 68%
year over year. Net income in the second quarter of 2002 was $3,482,000 (14
cents per share) due to an $800,000 gain from discontinued operations recognized
in the 2002 quarter. The net income for the second quarter of 2003 is at the top
end of the Company's upward revision of estimated earnings per share announced
on July 1, 2003 of between 17 and 18 cents per share excluding the gain on sale
of asset.
The 68% increase in comparable earnings in the second quarter was due to a 4%
increase in total revenue to $94,417,000 in the 2003 period from $90,987,000 in
2002 on the strength of a 17% increase in combined service charges and fees on
higher average balances of pawn loans and cash advances. The Company's
consolidated pawn loan balance finished the quarter 14% above the same date last
year. In addition, the Company's profit on the disposition of merchandise in the
quarter increased 9% from the prior year as a result of higher gross margins on
goods sold. The aggregate effect of the increase in service charges and fees
combined with the higher profit on the disposition of merchandise to produce a
$7.2 million, 14% increase, in net revenue for the three month period.
Commenting on the results for the second quarter, Daniel R. Feehan, President
and Chief Executive Officer said, "Our earnings in the second quarter reflect
the positive effects of higher levels of earning assets of both pawn loans and
cash advances due to increases in customer demand. Also benefiting the quarter
was the consistent execution of our operating strategy of expanding profit
margin on the sale of merchandise."
For the six month period ending June 30, 2003, Cash America reported that net
income, excluding the gain on sale of assets, increased 43% to $11,276,000 (45
cents per share) from the 2002 income from continuing operations of $7,885,000
(32 cents per share) for the same period. Total revenue for the first six months
of 2003 was $200 million compared to $192 million in the prior year.
Cash America will conduct a conference call to discuss its second quarter
earnings on Thursday, July 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 third 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 per share for fiscal 2003 from 89 to 94 cents per share
to be between 98 cents and $1.01 per share. This compares to 75 cents per share
for fiscal 2002. The expected earnings for 2003 do not include the potential
effect of the Company's previously announced proposed acquisition of Cashland,
Inc. which it expects to complete during the third quarter of 2003.
In the near term, management expects that earnings per share for the third
quarter of fiscal 2003 to be between 18 and 19 cents per share compared to 13
cents per share in the third 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 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.
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. AND SUBSIDIARIES
HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
<Table>
<Caption>
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2003 2002 2003 2002
-------- -------- -------- --------
CONSOLIDATED OPERATIONS:
Total revenue ............................. $ 94,417 $ 90,987 $199,922 $191,707
Net revenue ............................... 59,030 51,802 122,981 108,641
Total operating expenses .................. 49,953 45,526 100,939 91,955
- ----------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS .................... 9,077 6,276 22,042 16,686
- ----------------------------------------------------------------------------------------------
Income before income taxes ................ 7,964 4,170 18,753 12,301
- ----------------------------------------------------------------------------------------------
INCOME FROM CONTINUING OPERATIONS ......... 5,651 2,682 12,420 7,885
- ----------------------------------------------------------------------------------------------
NET INCOME ................................ $ 5,651 $ 3,482 $ 12,420 $ 8,685
==============================================================================================
Net income per share:
Basic -
Income from continuing operations ...... $ 0.23 $ 0.11 $ 0.51 $ 0.32
Net income ............................. $ 0.23 $ 0.14 $ 0.51 $ 0.35
Diluted -
Income from continuing operations ...... $ 0.22 $ 0.11 $ 0.50 $ 0.32
Net income ............................. $ 0.22 $ 0.14 $ 0.50 $ 0.35
Weighted average shares - Basic .............. 24,189 24,447 24,215 24,483
Weighted average shares - Diluted ............ 25,128 24,916 24,940 24,888
==============================================================================================
</Table>
LENDING OPERATIONS FINANCIAL AND OPERATIONAL DATA:
<Table>
<Caption>
As of June 30,
--------------------
2003 2002
-------- --------
PAWN OPERATIONS -
Domestic pawn loans outstanding ......................... $ 81,388 $ 75,664
Foreign pawn loans outstanding .......................... 55,509 44,911
-------- --------
Total loans outstanding ................................. $136,897 $120,575
Total merchandise held for disposition, net ............. $ 50,947 $ 49,958
Amounts per owned lending location - Domestic only:
Loans outstanding ............................... $ 209 $ 190
Merchandise held for disposition ................ $ 116 117
Consolidated:
Loans outstanding ............................... $ 302 $ 266
Merchandise held for disposition ................ $ 112 $ 110
Number of pawnshop locations (not in thousands) -
Company owned ........................................ 453 454
Franchised ........................................... 9 13
-------- --------
462 467
-------- --------
</Table>
<Table>
<Caption>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
SMALL CONSUMER CASH ADVANCES ("CASH ADVANCES") -
Total amount of cash advances written .............. $ 43,552 $26,347 $ 81,762 $ 48,035
Number of cash advances written
(not in thousands) .............................. 148,507 94,037 278,244 170,509
Average cash advance amount written
(not in thousands) .............................. $ 293 $ 280 $ 294 $ 282
Average number of locations offering cash
advances (not in thousands) ..................... 391 391 391 391
</Table>
<Table>
<Caption>
As of June 30,
----------------------
2003 2002
--------- ---------
Combined cash advances outstanding (A) ....................................... $ 11,704 $ 7,489
Company-owned cash advances (B):
Cash advances and fees outstanding ........................................... $ 10,400 $ 2,754
Less: Allowance for losses .................................................. (1,937) (1,324)
--------- ---------
Net cash advances and fees outstanding .................................... $ 8,463 $ 1,430
========= =========
</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>
June 30,
----------------------- December 31,
2003 2002 2002
--------- --------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents ............................................... $ 7,697 $ 6,691 $ 3,951
Pawn loans .............................................................. 136,897 120,575 127,388
Cash advances, net ...................................................... 8,463 1,430 2,210
Merchandise held for disposition, net ................................... 50,947 49,958 54,444
Finance and service charges receivable .................................. 21,316 18,864 21,096
Other receivables and prepaid expenses .................................. 9,030 6,479 8,671
Income taxes recoverable ................................................ -- 2,270 --
Deferred tax assets ..................................................... 6,169 5,031 5,392
--------- --------- ---------
Total current assets ................................................. 240,519 211,298 223,152
Property and equipment, net ................................................ 67,896 67,816 67,254
Goodwill ................................................................... 81,432 78,127 79,833
Other assets ............................................................... 2,814 5,079 6,239
--------- --------- ---------
Total assets ......................................................... $ 392,661 $ 362,320 $ 376,478
========= ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses ................................... $ 25,401 $ 19,663 $ 24,920
Customer deposits ....................................................... 4,381 4,336 4,050
Income taxes currently payable .......................................... 1,683 943 2,086
Current portion of long-term debt ....................................... 8,286 8,671 12,571
--------- --------- ---------
Total current liabilities ............................................ 39,751 33,613 43,627
Deferred tax liabilities ................................................... 5,390 2,337 4,385
Long-term debt ............................................................. 140,591 146,683 136,131
Stockholders' equity:
Common stock, $.10 par value per share, 80,000,000 shares authorized .... 3,024 3,024 3,024
Additional paid-in capital .............................................. 127,977 127,820 127,819
Retained earnings ....................................................... 124,971 103,263 113,278
Accumulated other comprehensive loss .................................... 660 (6,288) (2,718)
Notes receivable secured by common stock ................................ (5,774) (6,047) (5,864)
Treasury shares at cost ................................................. (43,929) (42,085) (43,204)
--------- --------- ---------
Total stockholders' equity ........................................... 206,929 179,687 192,335
--------- --------- ---------
Total liabilities and stockholders' equity ........................... $ 392,661 $ 362,320 $ 376,478
========= ========= =========
</Table>
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
<Table>
<Caption>
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
(Unaudited)
REVENUE
Finance and service charges ............................. $ 30,601 $ 27,456 $ 62,056 $ 56,276
Proceeds from disposition of merchandise ................ 56,176 58,279 122,295 125,313
Cash advance fees ....................................... 6,394 4,184 12,860 7,746
Check cashing royalties and fees ........................ 1,246 1,068 2,711 2,372
--------- --------- --------- ---------
TOTAL REVENUE .............................................. 94,417 90,987 199,922 191,707
COST OF REVENUE
Disposed merchandise .................................... 35,387 39,185 76,941 83,066
--------- --------- --------- ---------
NET REVENUE ................................................ 59,030 51,802 122,981 108,641
--------- --------- --------- ---------
EXPENSES
Operations .............................................. 36,241 33,312 73,211 67,757
Cash advance loss provision ............................. 1,692 1,568 3,024 2,469
Administration .......................................... 8,413 6,962 17,408 14,459
Depreciation and amortization ........................... 3,607 3,684 7,296 7,270
--------- --------- --------- ---------
TOTAL EXPENSES ............................................. 49,953 45,526 100,939 91,955
--------- --------- --------- ---------
INCOME FROM OPERATIONS ..................................... 9,077 6,276 22,042 16,686
Interest expense, net ................................... 2,126 2,070 4,302 4,313
Loss from derivative valuation fluctuations ............. -- 36 -- 72
Gain from disposal of asset ............................. (1,013) -- (1,013) --
--------- --------- --------- ---------
Income from continuing operations before income taxes ...... 7,964 4,170 18,753 12,301
Provision for income taxes .............................. 2,313 1,488 6,333 4,416
--------- --------- --------- ---------
INCOME FROM CONTINUING OPERATIONS .......................... 5,651 2,682 12,420 7,885
Gain from discontinued operations ....................... -- 800 -- 800
--------- --------- --------- ---------
NET INCOME ................................................. $ 5,651 $ 3,482 $ 12,420 $ 8,685
========= ========= ========= =========
Net income per share:
Basic -
Income from continuing operations .................... $ 0.23 $ 0.11 $ 0.51 $ 0.32
Gain from discontinued operations .................... $ -- $ 0.03 $ -- $ 0.03
Net income ........................................... $ 0.23 $ 0.14 $ 0.51 $ 0.35
Diluted -
Income from continuing operations .................... $ 0.22 $ 0.11 $ 0.50 $ 0.32
Gain from discontinued operations .................... $ -- $ 0.03 $ -- $ 0.03
Net income ........................................... $ 0.22 $ 0.14 $ 0.50 $ 0.35
Weighted average common shares outstanding:
Basic ................................................... 24,189 24,447 24,215 24,483
Diluted ................................................. 25,128 24,916 24,940 24,888
</Table>
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(in thousands)
<Table>
<Caption>
Lending
---------------------------------
United Check
States Foreign Total Cashing Consolidated
------- ------- ------- ------- ------------
(Unaudited)
THREE MONTHS ENDED JUNE 30, 2003:
REVENUE
Finance and service charges ................... $23,439 $ 7,162 $30,601 $ -- $30,601
Proceeds from disposition of merchandise ...... 51,644 4,532 56,176 -- 56,176
Cash advance fees ............................. 6,394 -- 6,394 -- 6,394
Check cashing royalties and fees .............. -- 418 418 828 1,246
------- ------- ------- ------- -------
TOTAL REVENUE .................................... 81,477 12,112 93,589 828 94,417
Cost of revenue - disposed merchandise ........... 31,984 3,403 35,387 -- 35,387
------- ------- ------- ------- -------
NET REVENUE ...................................... 49,493 8,709 58,202 828 59,030
------- ------- ------- ------- -------
EXPENSES
Operations .................................... 31,916 3,948 35,864 377 36,241
Cash advance loss provision ................... 1,692 -- 1,692 -- 1,692
Administration ................................ 7,082 1,148 8,230 183 8,413
Depreciation and amortization ................. 2,837 648 3,485 122 3,607
------- ------- ------- ------- -------
TOTAL EXPENSES ................................... 43,527 5,744 49,271 682 49,953
------- ------- ------- ------- -------
INCOME FROM OPERATIONS ........................... $ 5,966 $ 2,965 $ 8,931 $ 146 $ 9,077
======= ======= ======= ======= =======
THREE MONTHS ENDED JUNE 30, 2002:
REVENUE
Finance and service charges ................... $21,688 $ 5,768 $27,456 $ -- $27,456
Proceeds from disposition of merchandise ...... 55,093 3,186 58,279 -- 58,279
Cash advance fees ............................. 4,184 -- 4,184 -- 4,184
Check cashing royalties and fees .............. -- 242 242 826 1,068
------- ------- ------- ------- -------
TOTAL REVENUE .................................... 80,965 9,196 90,161 826 90,987
Cost of revenue - disposed merchandise ........... 36,728 2,457 39,185 -- 39,185
------- ------- ------- ------- -------
NET REVENUE ...................................... 44,237 6,739 50,976 826 51,802
------- ------- ------- ------- -------
EXPENSES
Operations .................................... 30,154 2,830 32,984 328 33,312
Cash advance loss provision ................... 1,568 -- 1,568 -- 1,568
Administration ................................ 5,810 1,008 6,818 144 6,962
Depreciation and amortization ................. 2,923 605 3,528 156 3,684
------- ------- ------- ------- -------
TOTAL EXPENSES ................................... 40,455 4,443 44,898 628 45,526
------- ------- ------- ------- -------
INCOME FROM OPERATIONS ........................... $ 3,782 $ 2,296 $ 6,078 $ 198 $ 6,276
======= ======= ======= ======= =======
</Table>
CASH AMERICA INTERNATIONAL, INC AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(in thousands)
<Table>
<Caption>
Lending
-----------------------------------
United Check
States Foreign Total Cashing Consolidated
-------- ------- -------- ------- ------------
(Unaudited)
SIX MONTHS ENDED JUNE 30, 2003:
REVENUE
Finance and service charges ................... $ 48,148 $13,908 $ 62,056 $ -- $ 62,056
Proceeds from disposition of merchandise ...... 114,706 7,589 122,295 -- 122,295
Cash advance fees ............................. 12,860 -- 12,860 -- 12,860
Check cashing royalties and fees .............. -- 800 800 1,911 2,711
-------- ------- -------- ------ --------
TOTAL REVENUE .................................... 175,714 22,297 198,011 1,911 199,922
Cost of revenue - disposed merchandise ........... 71,487 5,454 76,941 -- 76,941
-------- ------- -------- ------ --------
NET REVENUE ...................................... 104,227 16,843 121,070 1,911 122,981
-------- ------- -------- ------ --------
EXPENSES
Operations .................................... 64,821 7,583 72,404 807 73,211
Cash advance loss provision ................... 3,024 -- 3,024 -- 3,024
Administration ................................ 14,818 2,232 17,050 358 17,408
Depreciation and amortization ................. 5,719 1,333 7,052 244 7,296
-------- ------- -------- ------ --------
TOTAL EXPENSES ................................... 88,382 11,148 99,530 1,409 100,939
-------- ------- -------- ------ --------
INCOME FROM OPERATIONS ........................... $ 15,845 $ 5,695 $ 21,540 $ 502 $ 22,042
======== ======= ======== ====== ========
SIX MONTHS ENDED JUNE 30, 2002:
REVENUE
Finance and service charges ................... $ 45,003 $11,273 $ 56,276 $ -- $ 56,276
Proceeds from disposition of merchandise ...... 119,650 5,663 125,313 -- 125,313
Cash advance fees ............................. 7,746 -- 7,746 -- 7,746
Check cashing royalties and fees .............. -- 426 426 1,946 2,372
-------- ------- -------- ------ --------
TOTAL REVENUE .................................... 172,399 17,362 189,761 1,946 191,707
Cost of revenue - disposed merchandise ........... 78,804 4,262 83,066 -- 83,066
-------- ------- -------- ------ --------
NET REVENUE ...................................... 93,595 13,100 106,695 1,946 108,641
-------- ------- -------- ------ --------
EXPENSES
Operations .................................... 61,424 5,566 66,990 767 67,757
Cash advance loss provision ................... 2,469 -- 2,469 -- 2,469
Administration ................................ 12,158 1,970 14,128 331 14,459
Depreciation and amortization ................. 5,793 1,169 6,962 308 7,270
-------- ------- -------- ------ --------
TOTAL EXPENSES ................................... 81,844 8,705 90,549 1,406 91,955
-------- ------- -------- ------ --------
INCOME FROM OPERATIONS ........................... $ 11,751 $ 4,395 $ 16,146 $ 540 $ 16,686
======== ======= ======== ====== ========
</Table>