EXHIBIT 99.1
Cash America Announces Increase in Second Quarter
Net Income and Declares Dividend
FORT WORTH, Texas--(BUSINESS WIRE)--July 26, 2007--Cash America
International, Inc. (NYSE:CSH) reported net income for the second
quarter ended June 30, 2007 of $13,209,000 (43 cents per share)
compared to $10,913,000 (36 cents per share) for the same period in
2006. Included in the 2006 second quarter earnings, was a $1.4 million
after-tax gain (5 cents per share) on the early termination of a store
lease. The net income for the second quarter of 2007 included a credit
for state and local taxes of $666,000, net of federal income taxes, as
a result of a one-time deferred tax benefit created by a change in
Texas law during the quarter.
Total revenue for the second quarter of 2007 was up 43% to $213.9
million compared to $149.9 million in the prior year period, an
increase of $64.0 million. Driving this growth in total revenue was a
121% growth in cash advance fees. Cash advance fees were up $47.5
million, to $86.9 million in the second quarter 2007 up from $39.4
million in the same period in 2006. The strong growth in the cash
advance segment was attained by the continued growth of the online
distribution channel, new store growth and the continued maturation of
cash advance locations more than a year old. Revenue from pawn loans
and the sale of merchandise also contributed to the significant gain
in total revenue as sales rose 18% and service charges on pawn loans
increased 8% in the second quarter of 2007 compared to the prior year.
Commenting on the results of the quarter, Daniel R. Feehan,
President and Chief Executive Officer of Cash America, said, "We
continued to see strong growth in revenue during the second quarter of
2007. All aspects of our business experienced increases in revenue led
by our expanded balances of cash advance loans which posted the
largest portion of the year over year gains in revenue." Mr. Feehan
continued, "Consolidated same store net revenue rose 8% reflecting
continued gains from our bricks and mortar locations. Same store net
revenue in cash advance locations increased 11% year over year for the
quarter and our same store net revenue in pawn locations grew 6% in
the second quarter compared to the prior year."
For the first six months of fiscal year 2007, Cash America
generated net income of $32,443,000 ($1.06 per share) compared to
$26,301,000 (86 cents per share) in the same period for the prior
year. Included in the first half of 2006 is an after-tax gain of $1.4
million (5 cents per share) as described above. The increase in year
over year net income for the first six months of 2007 was achieved on
a 40% increase in total revenue, which reached $436.8 million in the
six months ended June 30, 2007 compared to $312.9 million for the same
period in the prior year.
Cash America will host a conference call to discuss the second
quarter results on Thursday, July 26th at 3:45 PM CDT. A live web cast
of the call will be available on the Investor Relations section of the
Company's corporate web site (http://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.
A replay will be available on the Company's web site for 90 days
following the conference call.
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 to shareholders of record on August 8, 2007 and
will be paid at the close of business on August 22, 2007.
Outlook for the Third Quarter of 2007 and Related 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 take the
form of pawn loans and short-term cash advances. Other elements
expected to affect the growth in revenue include the ongoing
maturation of the 213 gross additional pawn and cash advance locations
opened or acquired during the last 36 months, the regulatory
governance of loan products and the development and profitable growth
of the Company's online distribution channel for cash advance
products. As it enters the third quarter of 2007, management
anticipates that demand for the Company's products will remain strong.
Based on its views and on the preceding factors management expects
that the third quarter 2007 net income per share will be between 52
and 58 cents per share compared to 42 cents per share in the third
quarter 2006.
Expectations for the remainder of fiscal 2007 will be impacted by
earning asset levels in later periods based on customer demand for
credit products. At this time, management confirms its previously
announced expectation for the full year 2007 earnings per share of
between $2.45 and $2.55 compared to $1.95 per share in fiscal 2006.
These full year results exclude the $1.4 million after-tax gain in the
second quarter of 2006 (5 cents per share after-tax).
Cash America International, Inc. is a provider of specialty
financial services to individuals in the United States with 928 total
locations. Cash America is the largest provider of secured
non-recourse loans to individuals, commonly referred to as pawn loans,
through 492 locations in 22 states under the brand names Cash America
Pawn and SuperPawn. The Company also offers short-term cash advances
in many of its locations including 296 locations that offer this
service under the brand names Cash America Payday Advance and
Cashland. Short-term cash advances are also offered over the Internet
to customers in the United States and the United Kingdom at
http://www.cashnetusa.com and http://www.quickquid.co.uk,
respectively. In addition, check cashing services are provided through
its 140 franchised and Company-owned "Mr. Payroll" check cashing
centers.
For additional information regarding the Company and the services
it provides, visit the Company's websites located at:
http://www.cashamerica.com
http://www.cashnetusa.com
http://www.cashlandloans.com
http://www.quickquid.co.uk
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
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, fluctuations in the price of
gold, 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 foreign currency exchange rates, changes in the capital markets,
changes in tax and other laws and governmental rules and regulations
applicable to the Company's business, the ability to successfully
integrate newly acquired businesses into the Company's operations 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, 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," "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)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -----------------
2007 2006 2007 2006
--------- -------- -------- --------
Consolidated Operations:
Total revenue $ 213,881 $149,928 $436,753 $312,883
Net revenue $ 161,097 $107,042 $322,044 $217,255
Total operating expenses $ 138,063 $ 89,959 $265,012 $173,873
Income from operations $ 23,034 $ 17,083 $ 57,032 $ 43,382
Income before income taxes $ 19,491 $ 17,340 $ 50,203 $ 41,646
Net Income $ 13,209 $ 10,913 $ 32,443 $ 26,301
Earnings per share:
Basic $ 0.44 $ 0.37 $ 1.09 $ 0.89
Diluted $ 0.43 $ 0.36 $ 1.06 $ 0.86
Weighted average shares:
Basic 29,833 29,732 29,852 29,623
Diluted 30,557 30,569 30,579 30,484
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
June 30, December 31,
-------------------
2007 2006 2006
--------- --------- ------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 26,207 $ 17,733 $ 25,723
Pawn loans 131,528 124,514 127,384
Cash advances, net 77,948 39,005 79,975
Merchandise held for disposition,
net 83,522 68,787 87,060
Finance and service charges
receivable 24,362 21,273 25,377
Other receivables and prepaid
expenses 15,740 14,507 16,128
Deferred tax assets 21,722 12,103 16,324
--------- --------- ------------
Total current assets 381,029 297,922 377,971
Property and equipment, net 135,256 103,943 119,261
Goodwill 253,477 175,574 238,499
Intangible assets, net 25,538 21,984 27,477
Other assets 13,024 12,235 13,036
--------- --------- ------------
Total assets $808,324 $611,658 $ 776,244
========= ========= ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued
expenses $ 68,058 $ 38,303 $ 91,217
Customer deposits 8,388 7,080 7,464
Income taxes currently payable 994 1,989 2,691
Current portion of long-term debt 16,786 16,786 16,786
--------- --------- ------------
Total current liabilities 94,226 64,158 118,158
Deferred tax liabilities 13,368 11,314 12,770
Other liabilities 1,589 1,585 1,625
Long-term debt 232,896 128,515 202,963
--------- --------- ------------
Total liabilities 342,079 205,572 335,516
--------- --------- ------------
Stockholders' equity:
Common stock, $.10 par value per
share, 80,000,000 shares
authorized, 30,235,164 shares
issued 3,024 3,024 3,024
Additional paid-in capital 162,620 159,260 161,683
Retained earnings 318,328 254,802 287,962
Accumulated other comprehensive
income 8 66 20
Notes receivable secured by common
stock (18) (382) (18)
Treasury shares, at cost (683,754
shares, 679,143 shares and
565,840 shares at June 30, 2007
and 2006, and December 31, 2006,
respectively) (17,717) (10,684) (11,943)
--------- --------- ------------
Total stockholders' equity 466,245 406,086 440,728
--------- --------- ------------
Total liabilities and
stockholders' equity $808,324 $611,658 $ 776,244
========= ========= ============
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
(Unaudited)
Revenue
Finance and service charges $ 37,194 $ 34,588 $ 75,625 $ 69,643
Proceeds from disposition of
merchandise 85,808 72,622 185,976 159,746
Cash advance fees 86,947 39,395 165,463 74,834
Check cashing fees, royalties
and other 3,932 3,323 9,689 8,660
--------- --------- --------- ---------
Total Revenue 213,881 149,928 436,753 312,883
Cost of Revenue
Disposed merchandise 52,784 42,886 114,709 95,628
--------- --------- --------- ---------
Net Revenue 161,097 107,042 322,044 217,255
--------- --------- --------- ---------
Expenses
Operations 74,611 59,642 146,977 118,915
Cash advance loss provision 42,328 10,798 75,076 15,235
Administration 13,225 13,016 27,526 26,867
Depreciation and amortization 7,899 6,503 15,433 12,856
--------- --------- --------- ---------
Total Expenses 138,063 89,959 265,012 173,873
--------- --------- --------- ---------
Income from Operations 23,034 17,083 57,032 43,382
Interest expense (3,996) (2,412) (7,744) (4,848)
Interest income 439 389 857 767
Foreign currency transaction
gain 14 113 58 178
Gain from termination of
contract -- 2,167 -- 2,167
--------- --------- --------- ---------
Income before Income Taxes 19,491 17,340 50,203 41,646
Provision for income taxes 6,282 6,427 17,760 15,345
--------- --------- --------- ---------
Net Income $ 13,209 $ 10,913 $ 32,443 $ 26,301
========= ========= ========= =========
Earnings Per Share:
Basic $ 0.44 $ 0.37 $ 1.09 $ 0.89
Diluted $ 0.43 $ 0.36 $ 1.06 $ 0.86
Weighted average common shares
outstanding:
Basic 29,833 29,732 29,852 29,623
Diluted 30,557 30,569 30,579 30,484
Dividends declared per common
share $ 0.035 $ 0.025 $ 0.070 $ 0.050
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA
($ in thousands unless otherwise noted)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
PAWN LENDING OPERATIONS:
Pawn loans
Annualized yield on pawn
loans 121.7% 121.5% 125.4% 125.5%
Total amount of pawn loans
written and renewed $129,334 $123,974 $239,956 $227,901
Average pawn loan balance
outstanding $122,546 $114,186 $121,591 $111,875
Average pawn loan balance
per average location in
operation $ 256 $ 249 $ 254 $ 245
Ending pawn loan balance
per location in operation $ 274 $ 272 $ 274 $ 272
Average pawn loan amount at
end of period (not in
thousands) $ 105 $ 96 $ 105 $ 96
Profit margin on
disposition of merchandise
as a percentage of
proceeds from disposition
of merchandise 38.5% 40.9% 38.3% 40.1%
Average annualized
merchandise turnover 2.6x 2.6x 2.8x 2.8x
Average balance of
merchandise held for
disposition per average
location in operation $ 170 $ 145 $ 175 $ 150
Ending balance of
merchandise held for
disposition per location
in operation $ 174 $ 151 $ 174 $ 151
Pawnshop locations in
operation -
Beginning of period,
owned 477 458 475 456
Acquired 2 -- 3 2
Start-ups 2 -- 3 1
Combined or closed (1) (1) (1) (2)
--------- --------- --------- ---------
End of period, owned 480 457 480 457
Franchise locations at
end of period 12 10 12 10
--------- --------- --------- ---------
Total pawnshop locations
at end of period 492 467 492 467
========= ========= ========= =========
Average number of owned
pawnshop locations 479 458 478 457
========= ========= ========= =========
Cash advances (a)
Pawn locations offering
cash advances at end of
period 429 415 429 415
Average number of pawn
locations offering cash
advances 427 427 426 430
Amount of cash advances
written at pawn locations:
Funded by the Company $ 16,761 $ 15,827 $ 32,247 $ 30,135
Funded by third-party
lenders (b) (d) 46,891 49,907 91,876 94,611
--------- --------- --------- ---------
Aggregate amount of cash
advances written at pawn
locations(b) (f) $ 63,652 $ 65,734 $124,123 $124,746
========= ========= ========= =========
Number of cash advances
written at pawn locations
(not in thousands):
By the Company 55,164 49,889 105,432 93,029
By third-party lenders
(b) (d) 104,730 118,488 202,856 226,475
--------- --------- --------- ---------
Aggregate number of cash
advances written at pawn
locations(b) (f) 159,894 168,377 308,288 319,504
========= ========= ========= =========
Cash advance customer
balances due at pawn
locations (gross):
Owned by Company (c) $ 8,137 $ 7,585 $ 8,137 $ 7,585
Owned by third-party
lenders (b) 9,183 10,157 9,183 10,157
--------- --------- --------- ---------
Aggregate cash advance
customer balances due at
pawn locations (gross) (b)
(f) $ 17,320 $ 17,742 $ 17,320 $ 17,742
========= ========= ========= =========
CASH AMERICA INTERNATIONAL, INC., AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA (Continued)
($ in thousands unless otherwise noted)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- -----------------------
2007 2006 2007 2006
----------- -------- ----------- -----------
CASH ADVANCE OPERATIONS
(e):
Amount of cash advances
written:
Funded by the Company $ 326,945 $141,244 $ 613,195 $ 262,826
Funded by third-party
lenders (b) (d) 113,354 35,760 210,457 69,096
----------- -------- ----------- -----------
Aggregate amount of cash
advances written (b)
(f) $ 440,299 $177,004 $ 823,652 $ 331,922
=========== ======== =========== ===========
Number of cash advances
written (not in
thousands):
By the Company 883,613 408,379 1,641,879 752,871
By third-party lenders
(b) (d) 207,928 70,505 386,028 138,016
----------- -------- ----------- -----------
Aggregate number of cash
advances written (b)
(f) 1,091,541 478,884 2,027,907 890,887
=========== ======== =========== ===========
Cash advance customer
balances due (gross):
Owned by the Company
(c) $ 101,984 $ 38,961 $ 101,984 $ 38,961
Owned by third-party
lenders (b) 20,272 6,979 20,272 6,979
----------- -------- ----------- -----------
Aggregate cash advance
customer balances due
(gross) (b) (f) $ 122,256 $ 45,940 $ 122,256 $ 45,940
=========== ======== =========== ===========
Cash advance locations
in operation (excluding
online lending) -
Beginning of period 296 286 295 286
Start-ups 1 5 3 8
Combined or closed (1) -- (2) (3)
----------- -------- ----------- -----------
End of period 296 291 296 291
=========== ======== =========== ===========
Average number of cash
advance locations 296 287 295 288
=========== ======== =========== ===========
Number of states with
online lending at end
of period 30 -- 30 --
CONSOLIDATED CASH ADVANCE
PRODUCT SUMMARY (a) (b)
(e):
Amount of cash advances
written:
Funded by the Company $ 343,706 $157,071 $ 645,442 $ 292,961
Funded by third-party
lenders (b) (d) 160,245 85,667 302,333 163,707
----------- -------- ----------- -----------
Aggregate amount of cash
advances written (b)
(f) $ 503,951 $242,738 $ 947,775 $ 456,668
=========== ======== =========== ===========
Number of cash advances
written (not in
thousands):
By the Company 938,777 458,268 1,747,311 845,900
By third-party lenders
(b) (d) 312,658 188,993 588,884 364,491
----------- -------- ----------- -----------
Aggregate number of cash
advances written (b)
(f) 1,251,435 647,261 2,336,195 1,210,391
=========== ======== =========== ===========
Average amount per cash
advance written (not in
thousands):
Funded by the Company $ 366 $ 343 $ 369 $ 346
Funded by third-party
lenders (b) (d) 513 453 513 449
----------- -------- ----------- -----------
Aggregate average amount
per cash advance (b)
(f) $ 403 $ 375 $ 406 $ 377
=========== ======== =========== ===========
Cash advance customer
balances due (gross):
Owned by the Company
(c) $ 110,121 $ 46,546 $ 110,121 $ 46,546
Owned by third-party
lenders (b) 29,455 17,136 29,455 17,136
----------- -------- ----------- -----------
Aggregate cash advance
customer balances due
(gross) (b) (f) $ 139,576 $ 63,682 $ 139,576 $ 63,682
=========== ======== =========== ===========
Total locations offering
cash advances at end of
period (excluding
online lending) 725 706 725 706
Average total locations
offering cash advances
(excluding online
lending) 723 714 721 718
Number of states with
online lending at end
of period 30 -- 30 --
CASH AMERICA INTERNATIONAL, INC., AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA (Continued)
($ in thousands unless otherwise noted)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
CHECK CASHING OPERATIONS (Mr.
Payroll):
Centers in operation at end
of year (not in thousands):
Company-owned locations 5 5 5 5
Franchised locations (b) 135 133 135 133
--------- --------- --------- ---------
Combined centers in
operations at end of year
(b) 140 138 140 138
========= ========= ========= =========
Revenue from Company-owned
locations $ 113 $ 135 $ 274 $ 316
Revenue from franchise
royalties and other 745 738 1,724 1,708
--------- --------- --------- ---------
Total revenue (c) $ 858 $ 873 $ 1,998 $ 2,024
========= ========= ========= =========
Face amount of checks cashed:
Company-owned locations $ 8,212 $ 9,502 $ 17,822 $ 19,995
Franchised locations (b) 299,800 300,910 667,021 666,597
--------- --------- --------- ---------
Combined face amount of check
cashed (b) $308,012 $310,412 $684,843 $686,592
========= ========= ========= =========
Fees collected from
customers:
Company-owned locations (c)$ 113 $ 135 $ 274 $ 316
Franchised locations (b) 4,130 4,145 9,576 9,634
--------- --------- --------- ---------
Combined fees collected from
customers (b) $ 4,243 $ 4,280 $ 9,850 $ 9,950
========= ========= ========= =========
Fees as a percentage of check
cashed:
Company-owned locations 1.4% 1.4% 1.5% 1.6%
Franchised locations (b) 1.4 1.4 1.4 1.4
--------- --------- --------- ---------
Combined fees as a percentage
of check cashed (b) 1.4% 1.4% 1.4% 1.4%
========= ========= ========= =========
Average check cashed (not in
thousands):
Company-owned locations $ 383 $ 383 $ 406 $ 410
Franchised locations (b) 413 397 454 438
--------- --------- --------- ---------
Combined average check cashed
(b) $ 412 $ 397 $ 453 $ 437
========= ========= ========= =========
(a) Includes cash advance activities at the Company's pawn lending
locations.
(b) Non-GAAP presentation. For informational purposes and to provide a
greater understanding of the Company's businesses. Management
believes information provided with this level of detail is meaningful
and useful in understanding the activities and business metrics of
the Company's operations.
(c) Amounts recorded in the Company's consolidated financial
statements.
(d) Cash advances written by third-party lenders that were arranged by
the Company on behalf of the third-party lenders.
(e) Includes cash advance activities at the Company's cash advance
locations and through the Company's Internet distribution channel.
(f) Includes (i) cash advances written by the Company, and (ii) cash
advances written by third-party lenders that were arranged by the
Company on behalf of the third-party lenders.
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED CASH ADVANCES OUTSTANDING AND RELATED ALLOWANCE FOR
LOSSES
(in thousands)
June 30,
----------------
2007 2006
-------- -------
Funded by the Company (b)
Active cash advances and fees receivable $ 68,438 $32,016
Cash advances and fees in collection 27,167 7,615
-------- -------
Total funded by the Company (b) 95,605 39,631
-------- -------
Funded by third-party lenders (a) (c)
Active cash advances and fees receivable 29,461 18,143
Cash advances and fees in collection 14,510 5,908
-------- -------
Total funded by third-party lenders (a) (c) 43,971 24,051
-------- -------
Combined gross portfolio (a) (d) 139,576 63,682
Less: Elimination of cash advances owned by third-
party lenders 29,455 17,136
-------- -------
Company-owned cash advances and fees receivable, gross 110,121 46,546
Less: Allowance for losses 32,173 7,541
-------- -------
Cash advances and fees receivable, net $ 77,948 $39,005
======== =======
Three Months Ended Six Months Ended
June 30, June 30,
------------------ -------------------
2007 2006 2007 2006
--------- -------- --------- ---------
Allowance for company-owned cash
advances
Balance at beginning of period$ 23,141 $ 3,541 $ 19,513 $ 6,309
Cash advance loss provision 41,758 10,512 74,406 15,218
Charge-offs (36,338) (8,612) (68,850) (19,657)
Recoveries 3,612 2,100 7,104 5,671
--------- -------- --------- ---------
Balance at end of period $ 32,173 $ 7,541 $ 32,173 $ 7,541
========= ======== ========= =========
Accrual for third-party lender-
owned cash advances
Balance at beginning of period$ 1,253 $ 605 $ 1,153 $ 874
Increase in loss provision 570 286 670 17
--------- -------- --------- ---------
Balance at end of period $ 1,823 $ 891 $ 1,823 $ 891
========= ======== ========= =========
Combined statistics (d)
Combined cash advance loss
provision $ 42,328 $10,798 $ 75,076 $ 15,235
========= ======== ========= =========
Combined cash advance loss
provision as a % of combined
cash advances written (a) 8.4% 4.5% 7.9% 3.3%
========= ======== ========= =========
Charge-offs (net of
recoveries) as a % of
combined cash advances
written (a) 6.5% 2.7% 6.5% 3.1%
========= ======== ========= =========
Combined allowance for losses
and accrued third-party
lender losses as a % of
combined gross portfolio (a) 24.4% 13.2% 24.4% 13.2%
========= ======== ========= =========
(a) Non-GAAP presentation. For informational purposes and to provide a
greater understanding of the Company's businesses. Management
believes information provided with this level of detail is meaningful
and useful in understanding the activities and business metrics of
the Company's operations.
(b) Cash advances written by the Company in its pawn and cash advance
locations and through the Company's Internet distribution channel.
(c) Cash advances written by third-party lenders that were arranged by
the Company on behalf of the third-party lenders, all at the
Company's pawn and cash advance locations and through the Company's
Internet distribution channel.
(d) Includes (i) cash advances written by the Company, and (ii) cash
advances written by third-party lenders that were arranged by the
Company on behalf of the third-party lenders, all at the Company's
pawn and cash advance locations and through the Company's Internet
distribution channel.
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED JUNE 30, 2007 AND 2006
(in thousands)
Pawn Cash Check
Lending Advance Cashing Consolidated
-------- -------- ------- ------------
Three Months Ended June 30,
2007:
- --------------------------------
Revenue
Finance and service charges $ 37,194 $-- $-- $ 37,194
Proceeds from disposition of
merchandise 85,808 -- -- 85,808
Cash advance fees 9,990 76,957 -- 86,947
Check cashing fees, royalties
and other 810 2,264 858 3,932
-------- -------- ------- ------------
Total revenue 133,802 79,221 858 213,881
Cost of revenue - disposed
merchandise 52,784 -- -- 52,784
-------- -------- ------- ------------
Net revenue 81,018 79,221 858 161,097
-------- -------- ------- ------------
Expenses
Operations 46,583 27,670 358 74,611
Cash advance loss provision 3,725 38,603 -- 42,328
Administration 6,985 5,992 248 13,225
Depreciation and amortization 5,127 2,671 101 7,899
-------- -------- ------- ------------
Total expenses 62,420 74,936 707 138,063
-------- -------- ------- ------------
Income from operations $ 18,598 $ 4,285 $ 151 $ 23,034
======== ======== ======= ============
As of June 30, 2007:
- --------------------------------
Total assets $557,180 $244,149 $6,995 $808,324
======== ======== ======= ============
Goodwill $142,590 $105,577 $5,310 $253,477
======== ======== ======= ============
Three Months Ended June 30,
2006:
- --------------------------------
Revenue
Finance and service charges $ 34,588 $ -- $ -- $ 34,588
Proceeds from disposition of
merchandise 72,622 -- -- 72,622
Cash advance fees 10,282 29,113 -- 39,395
Check cashing fees, royalties
and other 616 1,834 873 3,323
-------- -------- ------- ------------
Total revenue 118,108 30,947 873 149,928
Cost of revenue - disposed
merchandise 42,886 -- -- 42,886
-------- -------- ------- ------------
Net revenue 75,222 30,947 873 107,042
-------- -------- ------- ------------
Expenses
Operations 44,799 14,523 320 59,642
Cash advance loss provision 3,724 7,074 -- 10,798
Administration 7,762 4,686 568 13,016
Depreciation and amortization 4,478 1,936 89 6,503
-------- -------- ------- ------------
Total expenses 60,763 28,219 977 89,959
-------- -------- ------- ------------
Income (loss) from operations $ 14,459 $ 2,728 $ (104) $ 17,083
======== ======== ======= ============
As of June 30, 2006:
- --------------------------------
Total assets $489,686 $114,546 $7,426 $611,658
======== ======== ======= ============
Goodwill $125,646 $ 44,618 $5,310 $175,574
======== ======== ======= ============
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
SIX MONTHS ENDED JUNE 30, 2007 AND 2006
(in thousands)
Pawn Cash Check
Lending Advance Cashing Consolidated
-------- -------- ------- ------------
Six Months Ended June 30, 2007:
- --------------------------------
Revenue
Finance and service charges $ 75,625 $ -- $ -- $ 75,625
Proceeds from disposition of
merchandise 185,976 -- -- 185,976
Cash advance fees 20,110 145,353 -- 165,463
Check cashing fees, royalties
and other 1,740 5,951 1,998 9,689
-------- -------- ------- ------------
Total revenue 283,451 151,304 1,998 436,753
Cost of revenue - disposed
merchandise 114,709 -- -- 114,709
-------- -------- ------- ------------
Net revenue 168,742 151,304 1,998 322,044
-------- -------- ------- ------------
Expenses
Operations 93,699 52,613 665 146,977
Cash advance loss provision 6,569 68,507 -- 75,076
Administration 16,307 10,694 525 27,526
Depreciation and amortization 10,134 5,097 202 15,433
-------- -------- ------- ------------
Total expenses 126,709 136,911 1,392 265,012
-------- -------- ------- ------------
Income from operations $ 42,033 $ 14,393 $ 606 $ 57,032
======== ======== ======= ============
Six Months Ended June 30, 2006:
- --------------------------------
Revenue
Finance and service charges $ 69,643 $ -- $ -- $ 69,643
Proceeds from disposition of
merchandise 159,746 -- -- 159,746
Cash advance fees 19,930 54,904 -- 74,834
Check cashing fees, royalties
and other 1,303 5,333 2,024 8,660
-------- -------- ------- ------------
Total revenue 250,622 60,237 2,024 312,883
Cost of revenue - disposed
merchandise 95,628 -- -- 95,628
-------- -------- ------- ------------
Net revenue 154,994 60,237 2,024 217,255
-------- -------- ------- ------------
Expenses
Operations 89,016 29,245 654 118,915
Cash advance loss provision 5,607 9,628 -- 15,235
Administration 16,232 9,754 881 26,867
Depreciation and amortization 8,820 3,866 170 12,856
-------- -------- ------- ------------
Total expenses 119,675 52,493 1,705 173,873
-------- -------- ------- ------------
Income from operations $ 35,319 $ 7,744 $ 319 $ 43,382
======== ======== ======= ============
CONTACT: Cash America International, Inc.
Thomas A. Bessant, Jr., 817-335-1100