Exhibit 99.1
Cash America Reports a 31% Increase in
Third Quarter Net Income Per Share from Continuing Operations and
Declares Regular Dividend
FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 25, 2007--Cash America
International, Inc. (NYSE:CSH) announced today that net income for the
third quarter of 2007 was $20,616,000 (68 cents per share). The third
quarter results include a pre-tax gain of $6.3 million (13 cents per
share after taxes) from the Company's sale of its notes receivable and
its rights to acquire a minority ownership position in an overseas
pawn lending business, Svensk Pantbelaning. Excluding the gain from
the sale, the Company generated a 31% increase in earnings per share
as net income increased to $16,560,000 (55 cents per share) during the
third quarter 2007 compared to $12,941,000 (42 cents per share)
reported in the same period of 2006.
Total revenue increased 40% during the third quarter 2007 to
$231.5 million, up from $165.9 million during the same period in 2006.
The primary contributor to the increase in total revenue was a 97%
increase in cash advance fees, which were $95.4 million during the
third quarter 2007, compared to $48.4 million during the same period
in 2006. The growth in cash advance fees is predominantly attributed
to the continued expansion of the number of customers accessing credit
using the Company's online distribution channel for the product. Also
contributing to the increase in total revenue was a 14% increase in
revenue related to pawn lending operations, including a 23% increase
in sales from the disposition of merchandise and a 5% increase in fees
and service charges on pawn loans.
For the first nine months of fiscal year 2007, Cash America
produced a 30% increase in net income excluding one-time gains, of
$49,003,000 ($1.61 per share) compared to $37,833,000 ($1.24 per
share) in the same period of the prior year. The 2006 year-to-date net
income excludes a $1.4 million (5 cents per share) after-tax gain on
proceeds from a lease contract that was terminated during the second
quarter of that year. Driving the year-over-year net income gain was a
40% increase in total revenue to $668.3 million for the nine-month
period ended September 2007 up from $478.8 million for the same period
in 2006.
Commenting on the results for the third quarter, Daniel R. Feehan,
President and Chief Executive Officer, said, "We are pleased to see
the strong year-over-year growth in revenue in each of our businesses
during the third quarter. In addition, during the quarter we began to
experience a slight improvement in sequential loss rates on our cash
advance loan portfolio as the mix of first time customers using our
online platform moderated as a percent of total customers. This
natural progression allowed us to begin to demonstrate the opportunity
for the growth in earnings and marginal profitability that we
anticipated from this distribution platform. We are pleased to see
continued growth in this service alternative for our cash advance
customers. In addition, we enjoyed another successful quarter from our
pawn lending activities led by a 20% increase in gross profit from the
disposition of merchandise on strong sales activities during the
period."
Cash America will conduct a conference call to discuss its third
quarter earnings Thursday, October 25, 2007 at 3:45 PM CDT. 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 to shareholders of record on November 7, 2007,
and will be paid at the close of business on November 21, 2007.
Outlook for the Fourth Quarter of 2007 and Related Fiscal Year
Expectations for the remainder of fiscal 2007 will be impacted by
earning asset levels based on customer demand for credit products and
by customer demand for the sale of merchandise in pawn locations.
Other elements expected to affect the growth in revenue include the
ongoing maturation of the 169 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. Based on its views and expectations related to the preceding
factors management expects that the fourth quarter 2007 net income per
share will be between 84 and 94 cents per share compared to 71 cents
per share in the fourth quarter 2006. Therefore, management's
expectation for the full year 2007 earnings per share will be between
$2.45 and $2.55 compared to $1.95 per share in fiscal 2006. These full
year results exclude the pre-tax gain of $6.3 million (13 cents per
share after taxes) in the third quarter 2007 and the $1.4 million
after-tax gain (5 cents per share) in the second quarter of 2006.
In addition, management is initiating its preliminary expectations
for fiscal year 2008 with an anticipated range of earnings per share
of 2.85 to $3.05.
Cash America International, Inc. is a provider of specialty
financial services to individuals in the United States with 936 total
locations. Cash America is the largest provider of secured
non-recourse loans to individuals, commonly referred to as pawn loans,
through 495 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 301 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 31 states 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 continued acceptance of the online
distribution channel by the Company's cash advance customers, 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 businesses, 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 Nine Months Ended
September 30, September 30,
----------------- -----------------
2007 2006 2007 2006
-------- -------- -------- --------
Consolidated Operations:
Total revenue $231,512 $165,917 $668,265 $478,800
Net revenue $173,819 $119,636 $495,863 $336,891
Total operating expenses $143,022 $ 96,292 $408,034 $270,165
Income from operations $ 30,797 $ 23,344 $ 87,829 $ 66,726
Income before income taxes $ 32,829 $ 20,684 $ 83,032 $ 62,330
Net Income $ 20,616 $ 12,941 $ 53,059 $ 39,242
Earnings per share:
Basic $ 0.70 $ 0.44 $ 1.78 $ 1.32
Diluted $ 0.68 $ 0.42 $ 1.74 $ 1.29
Weighted average shares:
Basic 29,535 29,707 29,745 29,652
Diluted 30,235 30,548 30,464 30,515
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
December
September 30, 31,
-------------------
2007 2006 2006
--------- --------- ---------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 26,412 $ 30,241 $ 25,723
Pawn loans 136,722 133,734 127,384
Cash advances, net 82,785 70,253 79,975
Merchandise held for disposition,
net 98,751 83,179 87,060
Finance and service charges
receivable 25,528 23,846 25,377
Other receivables and prepaid
expenses 15,349 11,539 16,128
Deferred tax assets 22,455 14,657 16,324
--------- --------- ---------
Total current assets 408,002 367,449 377,971
Property and equipment, net 147,813 110,983 119,261
Goodwill 283,554 193,379 238,499
Intangible assets, net 24,569 27,078 27,477
Other assets 3,017 12,296 13,036
--------- --------- ---------
Total assets $866,955 $711,185 $776,244
========= ========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued
expenses $104,784 $ 52,045 $ 91,217
Customer deposits 8,211 7,470 7,464
Income taxes currently payable 16 2,456 2,691
Current portion of long-term debt 12,786 16,786 16,786
--------- --------- ---------
Total current liabilities 125,797 78,757 118,158
Deferred tax liabilities 15,854 11,688 12,770
Other liabilities 1,621 1,578 1,625
Long-term debt 251,427 200,617 202,963
--------- --------- ---------
Total liabilities 394,699 292,640 335,516
--------- --------- ---------
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 162,837 160,234 161,683
Retained earnings 337,909 267,004 287,962
Accumulated other comprehensive
income (loss) (4) 21 20
Notes receivable secured by common
stock -- (382) (18)
Treasury shares, at cost (1,088,493
shares, 682,800 shares and 565,840
shares at September 30, 2007 and
2006, and December 31, 2006,
respectively) (31,510) (11,356) (11,943)
--------- --------- ---------
Total stockholders' equity 472,256 418,545 440,728
--------- --------- ---------
Total liabilities and
stockholders' equity $866,955 $711,185 $776,244
========= ========= =========
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
(Unaudited)
Revenue
Finance and service charges $ 41,386 $ 39,404 $117,011 $109,047
Proceeds from disposition of
merchandise 91,366 74,426 277,342 234,172
Cash advance fees 95,417 48,401 260,880 123,235
Check cashing fees,
royalties and other 3,343 3,686 13,032 12,346
--------- --------- --------- ---------
Total Revenue 231,512 165,917 668,265 478,800
Cost of Revenue
Disposed merchandise 57,693 46,281 172,402 141,909
--------- --------- --------- ---------
Net Revenue 173,819 119,636 495,863 336,891
Expenses
Operations 74,695 58,263 221,672 177,178
Cash advance loss provision 43,612 17,503 118,688 32,738
Administration 16,450 13,580 43,976 40,447
Depreciation and
amortization 8,265 6,946 23,698 19,802
--------- --------- --------- ---------
Total Expenses 143,022 96,292 408,034 270,165
--------- --------- --------- ---------
Income from Operations 30,797 23,344 87,829 66,726
Interest expense (4,378) (3,162) (12,119) (8,010)
Interest income 145 435 999 1,202
Foreign currency transaction
gain 5 67 63 245
Gain from termination of
contract -- -- -- 2,167
Gain on sale of foreign
notes 6,260 -- 6,260 --
--------- --------- --------- ---------
Income before Income Taxes 32,829 20,684 83,032 62,330
Provision for income taxes 12,213 7,743 29,973 23,088
--------- --------- --------- ---------
Net Income $ 20,616 $ 12,941 $ 53,059 $ 39,242
========= ========= ========= =========
Earnings Per Share:
Basic $ 0.70 $ 0.44 $ 1.78 $ 1.32
Diluted $ 0.68 $ 0.42 $ 1.74 $ 1.29
Weighted average common shares
outstanding:
Basic 29,535 29,707 29,745 29,652
Diluted 30,235 30,548 30,464 30,515
Dividends declared per common
share $ 0.035 $ 0.025 $ 0.105 $ 0.075
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA
($ in thousands unless otherwise noted)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- -------------------
2007 2006 2007 2006
----------- --------- --------- ---------
PAWN LENDING OPERATIONS:
Pawn loans
Annualized yield on pawn
loans 121.4% 119.3% 124.1% 123.3%
Total amount of pawn
loans written and
renewed $138,100 $129,269 $378,058 $357,170
Average pawn loan
balance outstanding $135,205 $131,089 $126,043 $118,297
Average pawn loan
balance per average
location in operation $ 281 $ 284 $ 263 $ 258
Ending pawn loan balance
per location in
operation $ 283 $ 289 $ 283 $ 289
Average pawn loan amount
at end of period (not
in thousands) $ 102 $ 100 $ 105 $ 100
Profit margin on
disposition of
merchandise as a
percentage of proceeds
from disposition of
merchandise 36.9% 37.8% 37.8% 39.4%
Average annualized
merchandise turnover 2.5x 2.4x 2.7x 2.6x
Average balance of
merchandise held for
disposition per average
location in operation $ 192 $ 167 $ 182 $ 157
Ending balance of
merchandise held for
disposition per
location in operation $ 204 $ 180 $ 204 $ 180
Pawnshop locations in
operation -
Beginning of period,
owned 480 457 475 456
Acquired 2 5 5 7
Start-ups 1 1 4 2
Combined or closed -- -- (1) (2)
----------- --------- --------- ---------
End of period, owned 483 463 483 463
Franchise locations at
end of period 12 11 12 11
----------- --------- --------- ---------
Total pawnshop
locations at end of
period 495 474 495 474
=========== ========= ========= =========
Average number of owned
pawnshop locations 482 462 479 459
=========== ========= ========= =========
Cash advances (a)
Pawn locations offering
cash advances at end of
period 429 417 429 417
Average number of pawn
locations offering cash
advances 427 416 425 423
Amount of cash advances
written at pawn
locations:
Funded by the Company $ 16,652 $ 18,978 $ 48,899 $ 49,113
Funded by third-party
lenders (b) (d) 49,634 57,062 141,510 151,673
----------- --------- --------- ---------
Aggregate amount of cash
advances written at
pawn locations(b) (f) $ 66,286 $ 76,040 $190,409 $200,786
=========== ========= ========= =========
Number of cash advances
written at pawn
locations (not in
thousands):
By the Company 54,821 61,516 160,253 154,545
By third-party lenders
(b) (d) 105,873 129,176 308,729 355,651
----------- --------- --------- ---------
Aggregate number of cash
advances written at
pawn locations(b) (f) 160,694 190,692 468,982 510,196
=========== ========= ========= =========
Cash advance customer
balances due at pawn
locations (gross):
Owned by Company (c) $ 8,803 $ 8,779 $ 8,803 $ 8,779
Owned by third-party
lenders (b) (d) 9,179 10,474 9,179 10,474
----------- --------- --------- ---------
Aggregate cash advance
customer balances due
at pawn locations
(gross) (b) (f) $ 17,982 $ 19,253 $ 17,982 $ 19,253
=========== ========= ========= ---------
CASH AMERICA INTERNATIONAL, INC., AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA (Continued)
($ in thousands unless otherwise noted)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------------
2007 2006 2007 2006
--------- -------- ----------- -----------
CASH ADVANCE OPERATIONS
(e):
Storefront operations:
Amount of cash advances
written:
Funded by the Company $187,302 $168,743 $ 522,719 $ 431,569
Funded by third-party
lenders (b) (d) 30,212 34,899 84,884 103,995
--------- -------- ----------- -----------
Aggregate amount of
cash advances written
(b) (f) $217,514 $203,642 $ 607,603 $ 535,564
========= ======== =========== ===========
Number of cash advances
written (not in
thousands):
By the Company 513,135 482,560 1,438,490 1,235,431
By third-party
lenders (b) (d) 55,090 66,098 159,427 204,114
--------- -------- ----------- -----------
Aggregate number of
cash advances written
(b) (f) 568,225 548,658 1,597,917 1,439,545
========= ======== =========== ===========
Cash advance customer
balances due (gross):
Owned by the Company
(c) $ 51,316 $ 46,642 $ 51,316 $ 46,642
Owned by third-party
lenders (b) (d) 5,259 5,916 5,259 5,916
--------- -------- ----------- -----------
Aggregate cash advance
customer balances due
(gross) (b) (f) $ 56,575 $ 52,558 $ 56,575 $ 52,558
========= ======== =========== ===========
Cash advance locations
in operation
(excluding online
lending) -
Beginning of period 296 291 295 286
Start-ups 7 2 10 10
Combined or closed (2) -- (4) (3)
--------- -------- ----------- -----------
End of period 301 293 301 293
========= ======== =========== ===========
Average number of
cash advance
locations 299 292 297 289
========= ======== =========== ===========
Internet lending
operations:
Amount of cash advances
written:
Funded by the Company $157,887 $ 15,625 $ 435,665 $ 15,625
Funded by third-party
lenders (b) (d) 96,096 -- 251,880 --
--------- -------- ----------- -----------
Aggregate amount of
cash advances written
(b) (f) $253,983 $ 15,625 $ 687,545 $ 15,625
========= ======== =========== ===========
Number of cash advances
written (not in
thousands):
By the Company 400,942 40,480 1,117,466 40,480
By third-party
lenders (b) (d) 159,711 -- 441,402 --
--------- -------- ----------- -----------
Aggregate number of
cash advances written
(b) (f) 560,653 40,480 1,558,868 40,480
========= ======== =========== ===========
Cash advance customer
balances due (gross):
Owned by the Company
(c) $ 53,591 $ 25,921 $ 53,591 $ 25,921
Owned by third-party
lenders (b) (d) 16,631 -- 16,631 --
--------- -------- ----------- -----------
Aggregate cash advance
customer balances due
(gross) (b) (f) $ 70,222 $ 25,921 $ 70,222 $ 25,921
========= ======== =========== ===========
Number of states with
online lending at end
of period 31 27 31 27
Number of countries
with online lending at
end of period 2 1 2 1
CASH AMERICA INTERNATIONAL, INC., AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA (Continued)
($ in thousands unless otherwise noted)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- ---------------------
2007 2006 2007 2006
---------- -------- ---------- ----------
Combined Storefront and
Internet lending
operations:
Amount of cash advances
written:
Funded by the Company $ 345,189 $184,368 $ 958,384 $ 447,194
Funded by third-party
lenders (b) (d) 126,308 34,899 336,764 103,995
---------- -------- ---------- ----------
Aggregate amount of cash
advances written (b) (f) $ 471,497 $219,267 $1,295,148 $ 551,189
========== ======== ========== ==========
Number of cash advances
written (not in
thousands):
By the Company 914,077 523,040 2,555,956 1,275,911
By third-party lenders
(b) (d) 214,801 66,098 600,829 204,114
---------- -------- ---------- ----------
Aggregate number of cash
advances written (b) (f) 1,128,878 589,138 3,156,785 1,480,025
========== ======== ========== ==========
Cash advance customer
balances due (gross):
Owned by the Company (c) $ 104,907 $ 72,563 $ 104,907 $ 72,563
Owned by third-party
lenders (b) (d) 21,890 5,916 21,890 5,916
---------- -------- ---------- ----------
Aggregate cash advance
customer balances due
(gross) (b) (f) $ 126,797 $ 78,479 $ 126,797 $ 78,479
========== ======== ========== ==========
CONSOLIDATED CASH ADVANCE
PRODUCT SUMMARY (a) (b)
(e):
Amount of cash advances
written:
Funded by the Company $ 361,841 $203,346 $1,007,283 $ 496,307
Funded by third-party
lenders (b) (d) 175,942 91,961 478,274 255,668
---------- -------- ---------- ----------
Aggregate amount of cash
advances written (b) (f) $ 537,783 $295,307 $1,485,557 $ 751,975
========== ======== ========== ==========
Number of cash advances
written (not in
thousands):
By the Company 968,898 584,556 2,716,209 1,430,456
By third-party lenders
(b) (d) 320,674 195,274 909,558 559,765
---------- -------- ---------- ----------
Aggregate number of cash
advances written (b) (f) 1,289,572 779,830 3,625,767 1,990,221
========== ======== ========== ==========
Average amount per cash
advance written (not in
thousands):
Funded by the Company $ 373 $ 348 $ 371 $ 347
Funded by third-party
lenders (b) (d) 549 471 526 474
---------- -------- ---------- ----------
Aggregate average amount
per cash advance (b) (f) $ 417 $ 379 $ 410 $ 382
========== ======== ========== ==========
Cash advance customer
balances due (gross):
Owned by the Company (c) $ 113,710 $ 81,342 $ 113,710 $ 81,342
Owned by third-party
lenders (b) (d) 31,069 16,390 31,069 16,390
---------- -------- ---------- ----------
Aggregate cash advance
customer balances due
(gross) (b) (f) $ 144,779 $ 97,732 $ 144,779 $ 97,732
========== ======== ========== ==========
Total locations offering
cash advances at end of
period (excluding online
lending) 730 710 730 710
Average total locations
offering cash advances
(excluding online
lending) 726 708 722 712
Number of states with
online lending at end of
period 31 27 31 27
Number of countries with
online lending at end of
period 2 1 2 1
CASH AMERICA INTERNATIONAL, INC., AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA (Continued)
($ in thousands unless otherwise noted)
Three Months Ended Nine Months Ended
September 30, September 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 $ 106 $ 126 $ 379 $ 442
Revenue from franchise
royalties and other 561 582 1,902 1,949
----------- --------- --------- ---------
Total revenue (c) $ 667 $ 708 $ 2,281 $ 2,391
=========== ========= ========= =========
Face amount of checks
cashed:
Company-owned locations $ 7,902 $ 9,196 $ 25,724 $ 29,191
Franchised locations (b) 291,255 302,366 958,277 968,963
----------- --------- --------- ---------
Combined face amount of
checks cashed (b) $299,157 $311,562 $984,001 $998,154
=========== ========= ========= =========
Fees collected from
customers:
Company-owned locations
(c) $ 106 $ 124 $ 379 $ 442
Franchised locations (b) 3,968 4,140 13,544 13,774
----------- --------- --------- ---------
Combined fees collected
from customers (b) $ 4,074 $ 4,264 $ 13,923 $ 14,216
=========== ========= ========= =========
Fees as a percentage of
checks cashed:
Company-owned locations 1.3% 1.4% 1.5% 1.5%
Franchised locations (b) 1.4 1.4 1.4 1.4
----------- --------- --------- ---------
Combined fees as a
percentage of checks
cashed (b) 1.4% % 1.4% 1.4% 1.4%
=========== ========= ========= =========
Average check cashed (not
in thousands):
Company-owned locations $ 375 $ 379 $ 396 $ 400
Franchised locations (b) 416 402 442 426
----------- --------- --------- ---------
Combined average check
cashed (b) $ 415 $ 401 $ 441 $ 425
=========== ========= ========= =========
(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
storefront 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)
September 30,
----------------
2007 2006
-------- -------
Funded by the Company (b)
Active cash advances and fees receivable $ 69,005 $54,741
Cash advances and fees in collection 28,817 20,146
-------- -------
Total funded by the Company (b) 97,822 74,887
-------- -------
Funded by third-party lenders (a) (c)
Active cash advances and fees receivable 31,069 17,072
Cash advances and fees in collection 15,888 5,773
-------- -------
Total funded by third-party lenders (a) (c) 46,957 22,845
-------- -------
Combined gross portfolio (a) (d) 144,779 97,732
Less: Elimination of cash advances owned by third-
party lenders 31,069 16,390
-------- -------
Company-owned cash advances and fees receivable,
gross 113,710 81,342
Less: Allowance for losses 30,925 11,089
-------- -------
Cash advances and fees receivable, net $ 82,785 $70,253
======== =======
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- --------------------
2007 2006 2007 2006
--------- --------- ---------- ---------
Allowance for company-owned
cash advances
Balance at beginning of
period $ 32,173 $ 7,541 $ 19,513 $ 6,309
Cash advance loss
provision 43,604 17,641 118,011 32,859
Charge-offs (48,283) (16,266) (117,133) (35,924)
Recoveries 3,431 2,173 10,534 7,845
--------- --------- ---------- ---------
Balance at end of period $ 30,925 $ 11,089 $ 30,925 $ 11,089
========= ========= ========== =========
Accrual for third-party
lender-owned cash advances
Balance at beginning of
period $ 1,824 $ 891 $ 1,155 $ 874
Increase (decrease) in loss
provision 8 (138) 677 (121)
--------- --------- ---------- ---------
Balance at end of period $ 1,832 $ 753 $ 1,832 $ 753
========= ========= ========== =========
Combined statistics (d)
Combined cash advance loss
provision $ 43,612 $ 17,503 $ 118,688 $ 32,738
========= ========= ========== =========
Combined cash advance loss
provision as a % of
combined cash advances
written (a) 8.1% 5.9% 8.0% 4.4%
========= ========= ========== =========
Charge-offs (net of
recoveries) as a % of
combined cash advances
written (a) 8.3% 4.8% 7.2% 3.7%
========= ========= ========== =========
Combined allowance for
losses and accrued third-
party lender losses as a %
of combined gross
portfolio (a) 22.6% 12.1% 22.6% 12.1%
========= ========= ========== =========
(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 SEPTEMBER 30, 2007 AND 2006
(in thousands)
Cash
Pawn Advance Check
Lending (1) Cashing Consolidated
-------- -------- -------- ------------
Three Months Ended September
30, 2007:
- ------------------------------
Revenue
Finance and service charges $ 41,386 $ -- $ -- $ 41,386
Proceeds from disposition of
merchandise 91,366 -- -- 91,366
Cash advance fees 11,301 84,116 -- 95,417
Check cashing fees,
royalties and other 698 1,826 819 3,343
-------- -------- -------- ------------
Total revenue 144,751 85,942 819 231,512
Cost of revenue - disposed
merchandise 57,693 -- -- 57,693
-------- -------- -------- ------------
Net revenue 87,058 85,942 819 173,819
-------- -------- -------- ------------
Expenses
Operations 46,955 27,461 279 74,695
Cash advance loss provision 4,973 38,639 -- 43,612
Administration 9,587 6,632 231 16,450
Depreciation and
amortization 5,272 2,901 92 8,265
-------- -------- -------- ------------
Total expenses 66,787 75,633 602 143,022
-------- -------- -------- ------------
Income from operations $ 20,271 $ 10,309 $ 217 $ 30,797
======== ======== ======== ============
As of September 30, 2007:
- ------------------------------
Total assets $582,072 $277,986 $6,897 $866,955
======== ======== ======== ============
Goodwill $143,665 $134,579 $5,310 $283,554
======== ======== ======== ============
Three Months Ended September
30, 2006:
- ------------------------------
Revenue
Finance and service charges $ 39,404 $ -- $ -- $ 39,404
Proceeds from disposition of
merchandise 74,426 -- -- 74,426
Cash advance fees 11,963 36,438 -- 48,401
Check cashing fees,
royalties and other 743 1,887 1,056 3,686
-------- -------- -------- ------------
Total revenue 126,536 38,325 1,056 165,917
Cost of revenue - disposed
merchandise 46,281 -- -- 46,281
-------- -------- -------- ------------
Net revenue 80,255 38,325 1,056 119,636
-------- -------- -------- ------------
Expenses
Operations 43,148 14,788 327 58,263
Cash advance loss provision 5,934 11,569 -- 17,503
Administration 8,164 5,118 298 13,580
Depreciation and
amortization 4,748 2,107 91 6,946
-------- -------- -------- ------------
Total expenses 61,994 33,582 716 96,292
-------- -------- -------- ------------
Income from operations $ 18,261 $ 4,743 $ 340 $ 23,344
======== ======== ======== ============
As of September 30, 2006:
- ------------------------------
Total assets $529,258 $174,621 $7,306 $711,185
======== ======== ======== ============
Goodwill $132,142 $ 55,927 $5,310 $193,379
======== ======== ======== ============
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(in thousands)
Cash
Nine Months Ended September Pawn Advance Check
30, 2007: Lending (1) Cashing Consolidated
- ------------------------------ -------- -------- -------- ------------
Revenue
Finance and service charges $117,011 $ -- $ -- $117,011
Proceeds from disposition of
merchandise 277,342 -- -- 277,342
Cash advance fees 31,411 229,469 -- 260,880
Check cashing fees,
royalties and other 2,438 7,777 2,817 13,032
-------- -------- -------- ------------
Total revenue 428,202 237,246 2,817 668,265
Cost of revenue - disposed
merchandise 172,402 -- -- 172,402
-------- -------- -------- ------------
Net revenue 255,800 237,246 2,817 495,863
-------- -------- -------- ------------
Expenses
Operations 140,654 80,074 944 221,672
Cash advance loss provision 11,542 107,146 -- 118,688
Administration 25,894 17,326 756 43,976
Depreciation and
amortization 15,406 7,998 294 23,698
-------- -------- -------- ------------
Total expenses 193,496 212,544 1,994 408,034
-------- -------- -------- ------------
Income from operations $ 62,304 $ 24,702 $ 823 $ 87,829
======== ======== ======== ============
Nine Months Ended September
30, 2006:
- ------------------------------
Revenue
Finance and service charges $109,047 $ -- $ -- $109,047
Proceeds from disposition of
merchandise 234,172 -- -- 234,172
Cash advance fees 31,893 91,342 -- 123,235
Check cashing fees,
royalties and other 2,046 7,220 3,080 12,346
-------- -------- -------- ------------
Total revenue 377,158 98,562 3,080 478,800
Cost of revenue - disposed
merchandise 141,909 -- -- 141,909
-------- -------- -------- ------------
Net revenue 235,249 98,562 3,080 336,891
-------- -------- -------- ------------
Expenses
Operations 132,164 44,033 981 177,178
Cash advance loss provision 11,541 21,197 -- 32,738
Administration 24,396 14,872 1,179 40,447
Depreciation and
amortization 13,568 5,973 261 19,802
-------- -------- -------- ------------
Total expenses 181,669 86,075 2,421 270,165
-------- -------- -------- ------------
Income from operations $ 53,580 $ 12,487 $ 659 $ 66,726
======== ======== ======== ============
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(in thousands)
(1) The Cash Advance segment is comprised of two distribution channels
for the same product, a multi-unit, "storefront" platform of 301
units and an on-line, internet based lending platform. The amounts
for the three and nine months ended September 30, 2006 include 15
days of activity, as the internet based lending platform was
purchased on September 15, 2006. The following table summarizes the
results from each channel's contributions to the Cash Advance segment
as of September 30, 2007:
Total
Internet Cash
Three Months Ended September 30, 2007: Storefront Lending Advance
- ----------------------------------------- ---------- -------- --------
Revenue
Cash advance fees $ 34,249 $ 49,867 $ 84,116
Check cashing fees, royalties and other 1,826 -- 1,826
---------- -------- --------
Total revenue 36,075 49,867 85,942
Expenses
Operations 17,194 10,267 27,461
Cash advance loss provision 11,585 27,054 38,639
Administration 2,780 3,852 6,632
Depreciation and amortization 2,072 829 2,901
---------- -------- --------
Total expenses 33,631 42,002 75,633
---------- -------- --------
Income from operations $ 2,444 $ 7,865 $ 10,309
========== ======== ========
As of September 30, 2007:
- -----------------------------------------
Total assets $122,673 $155,313 $277,986
========== ======== ========
Goodwill $ 44,618 $ 89,961 $134,579
========== ======== ========
Total
Internet Cash
-------- --------
Three Months Ended September 30, 2006: Storefront Lending Advance
- ----------------------------------------- ---------- -------- --------
Revenue
Cash advance fees $ 32,815 $ 3,623 $ 36,438
Check cashing fees, royalties and other 1,887 -- 1,887
---------- -------- --------
Total revenue 34,702 3,623 38,325
---------- -------- --------
Expenses
Operations 14,193 595 14,788
Cash advance loss provision 10,332 1,237 11,569
Administration 4,928 190 5,118
Depreciation and amortization 1,947 160 2,107
---------- -------- --------
Total expenses 31,400 2,182 33,582
---------- -------- --------
Income from operations $ 3,302 $ 1,441 $ 4,743
========== ======== ========
As of September 30, 2006:
- -----------------------------------------
Total assets $122,232 $ 52,389 $174,621
========== ======== ========
Goodwill $ 44,618 $ 11,309 $ 55,927
========== ======== ========
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
NINE MONTHS ENDED SEPTEMBER 30, 2007 AND 2006
(in thousands)
Total
Internet Cash
Nine Months Ended September 30, 2007: Storefront Lending Advance
- ----------------------------------------- ---------- -------- --------
Revenue
Cash advance fees $ 95,240 $134,229 $229,469
Check cashing fees, royalties and other 7,772 5 7,777
---------- -------- --------
Total revenue 103,012 134,234 237,246
---------- -------- --------
Expenses
Operations 50,539 29,535 80,074
Cash advance loss provision 28,716 78,430 107,146
Administration 7,935 9,391 17,326
Depreciation and amortization 5,924 2,074 7,998
---------- -------- --------
Total expenses 93,114 119,430 212,544
---------- -------- --------
Income from operations $ 9,898 $ 14,804 $ 24,702
========== ======== ========
Total
Internet Cash
Nine Months Ended September 30, 2006: Storefront Lending Advance
- ----------------------------------------- ---------- -------- --------
Revenue
Cash advance fees $ 87,719 $ 3,623 $ 91,342
Check cashing fees, royalties and other 7,220 -- 7,220
---------- -------- --------
Total revenue 94,939 3,623 98,562
---------- -------- --------
Expenses
Operations 43,438 595 44,033
Cash advance loss provision 19,960 1,237 21,197
Administration 14,682 190 14,872
Depreciation and amortization 5,813 160 5,973
---------- -------- --------
Total expenses 83,893 2,182 86,075
---------- -------- --------
Income from operations $ 11,046 $ 1,441 $ 12,487
========== ======== ========
CONTACT: Cash America International, Inc.
Thomas A. Bessant, Jr., 817-335-1100