Cash America International, Inc. (NYSE: CSH) announced today that net income attributable to the Company for the third quarter of 2009 increased 19% to $22,478,000 (73 cents per share) compared to the third quarter of 2008 which was $18,925,000 (63 cents per share).
Total revenue increased 10% during the third quarter 2009 to $276.1 million, up from $252.2 million during the same period in 2008. Contributing to the rise in total revenue was a 28% increase in finance and service charges from pawn loans and an increase of 9% in the proceeds from the sale of merchandise during the quarter. This was driven by continued customer demand for pawn lending products and the addition of Prenda Fácil in December 2008, the Company’s Mexico based pawn lending operation. Excluding Prenda Fácil, the Company reported an 11% increase in finance and service charges from pawn loans during the quarter. Consolidated pawn loan balances increased year-over-year by 20% during the third quarter 2009. Excluding the addition of Prenda Fácil, pawn loan balances were up 6% during the period. Consolidated income from operations rose 14% to $41.4 million during the third quarter 2009, up from $36.2 million during the same period in 2008. This is partially due to lower loan losses on cash advances written. Loan losses as a percent of cash advance fees decreased to 38.4% in the third quarter of 2009 compared to 42.5% in the third quarter of 2008.
For the nine-month period ended September 30, 2009, Cash America produced net income of $62,995,000 ($2.06 per share) compared to $64,873,000 ($2.16 per share) for the same period in 2008. The decrease in net income was due to a 4% decrease in cash advance fees during the nine-month period which is largely related to the absence of or significantly reduced profitability in certain cash advance markets in 2009 that generated revenue and earnings for the Company in 2008. Total revenue increased 6% to $796.6 million for the nine-month period ended September 30, 2009, up from $751.1 million for the same period in 2008.
Commenting on the results for the third quarter, Daniel R. Feehan, President and Chief Executive Officer said, “We have restored the year over year quarterly earnings growth that challenged us in the first half of 2009 due to changes in certain markets for our cash advance product. Our pawn lending activities have continued to produce earnings growth throughout 2009 and in the third quarter we were able to add year over year growth in our cash advance business segment as our storefront business posted a successful third quarter.” Mr. Feehan added, “We are proud to have posted this earnings growth while adding 158 net new pawn lending locations, including 113 acquired locations and 49 start-up locations while closing 4 locations, in an effort to expand the concentration of our pawn lending activities over the last twelve months.”
Cash America will conduct a conference call to discuss its third quarter earnings Thursday, October 22, 2009 at 7:45 AM 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 at the close of business on November 18, 2009 to shareholders of record on November 4, 2009.
Outlook for the Fourth Quarter of 2009 and 2010 Fiscal Year
Expectations for the remainder of fiscal 2009 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 lending locations. The fourth quarter represents an important period of retail sales for the Company, and results will be affected by consumer sentiments during the period. Based on its views and expectations related to the preceding factors management expects that the fourth quarter 2009 net income per share will be between 94 cents and $1.02 per share compared to 54 cents per share in the fourth quarter of 2008. The fourth quarter of 2008 included 20 cents of one-time charges, which included severance and related expenses for the closing of 42 cash advance locations, the restructuring and elimination of senior management positions, referendum initiatives related to the November 4, 2008 election in the state of Ohio and new product transition costs in certain cash advance markets . Therefore, management’s expectation for the full year 2009 earnings per share will be between $3.00 and $3.08 compared to $2.70 per share in fiscal 2008.
In addition, management is initiating its preliminary expectations for fiscal year 2010. Based on its current views of the coming year, management establishes its initial anticipated range of earnings per share of $3.45 to $3.60 for fiscal 2010.
About the Company
As of September 30, 2009, Cash America International, Inc. had 1,034 total locations offering specialty financial services to consumers, including 660 pawn lending locations (including 15 unconsolidated franchised locations), consisting of 503 locations operating in 22 states in the United States under the names “Cash America Pawn” and “SuperPawn” and 157 pawn lending locations, of which the Company is a majority owner, operating in 19 jurisdictions in central and southern Mexico under the name “Prenda Fácil.” In addition, as of September 30, 2009, the Company had 248 cash advance storefront locations operating in six states in the United States under the names “Cash America Payday Advance” and “Cashland” and 121 unconsolidated franchised and five Company-owned check cashing centers operating in 16 states in the United States under the name “Mr. Payroll.” Additionally, as of September 30, 2009, the Company offered short-term cash advances over the Internet to customers in 32 states in the United States at http://www.cashnetusa.com, in the United Kingdom at http://www.quickquid.co.uk and in Australia at http://www.dollarsdirect.com.au. The Company also owns a card services business that processes cash advances on behalf of a third-party lender with balances outstanding in all 50 states and one other United States territory as of September 30, 2009.
For additional information regarding the Company and the services it provides, visit the Company’s websites located at:
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 pawn, consumer credit, tax and other laws and governmental rules and regulations applicable to the Company's business, 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 to or for the Company, fluctuations in the price of gold, changes in competition, the ability of the Company to open new operating units in accordance with its plans, changes in economic conditions, real estate market fluctuations, interest rate fluctuations, changes in foreign currency exchange rates, changes in the capital markets, the ability to successfully integrate newly acquired businesses into the Company’s operations, the loss of services of any of our executive officers, the effect of any current or future litigation proceedings on the Company, acts of God, war or terrorism, pandemics and other events, the effect of any of such changes on the Company’s business or the markets in which we operate and other risks and uncertainties 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,” “should,” “could,” “would,” “plans,” “expects,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations 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, | |||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||
| Consolidated Operations: | ||||||||||||||
| Total revenue | $ | 276,124 | $ | 252,150 | $ | 796,596 | $ | 751,063 | ||||||
| Net revenue | 200,582 | 184,117 | 567,018 | 544,773 | ||||||||||
| Total operating expenses | 159,152 | 147,926 | 449,910 | 428,216 | ||||||||||
| Income from operations | $ | 41,430 | $ | 36,191 | $ | 117,108 | $ | 116,557 | ||||||
| Income before income taxes | 35,851 | 32,007 | 101,524 | 105,695 | ||||||||||
| Net Income | $ | 22,748 | $ | 18,925 | $ | 63,792 | $ | 64,873 | ||||||
| Less: Net income attributable to the noncontrolling interest | (270 | ) | - | $ | (797 | ) | $ | - | ||||||
| Net Income Attributable to Cash America International, Inc. | $ | 22,478 | $ | 18,925 | $ | 62,995 | $ | 64,873 | ||||||
| Earnings per share: | ||||||||||||||
| Net Income attributable to Cash America International, Inc. common stockholders: | ||||||||||||||
| Basic | $ | 0.76 | $ | 0.65 | $ | 2.12 | $ | 2.21 | ||||||
| Diluted | $ | 0.73 | $ | 0.63 | $ | 2.06 | $ | 2.16 | ||||||
| Weighted average shares: | ||||||||||||||
| Basic | 29,702 | 29,266 | 29,757 | 29,321 | ||||||||||
| Diluted | 30,698 | 30,035 | 30,524 | 30,082 | ||||||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) | ||||||||||||
| September 30, | December 31, | |||||||||||
| 2009 | 2008 | 2008 | ||||||||||
| (Unaudited) | ||||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 28,532 | $ | 29,754 | $ | 30,005 | ||||||
| Pawn loans | 190,478 | 158,226 | 168,747 | |||||||||
| Cash advances, net | 93,472 | 87,034 | 83,850 | |||||||||
| Merchandise held for disposition, net | 116,890 | 111,053 | 109,493 | |||||||||
| Finance and service charges receivable | 36,228 | 29,658 | 33,063 | |||||||||
| Income taxes recoverable | - | 1,306 | 2,606 | |||||||||
| Other receivables and prepaid expenses | 21,155 | 13,658 | 15,480 | |||||||||
| Deferred tax assets | 23,894 | 22,088 | 22,037 | |||||||||
| Total current assets | 510,649 | 452,777 | 465,281 | |||||||||
| Property and equipment, net | 188,363 | 181,524 | 185,887 | |||||||||
| Goodwill | 493,384 | 420,840 | 494,192 | |||||||||
| Intangible assets, net | 28,787 | 21,634 | 35,428 | |||||||||
| Other assets | 7,829 | 3,501 | 5,722 | |||||||||
| Total assets | $ | 1,229,012 | $ | 1,080,276 | $ | 1,186,510 | ||||||
| Liabilities and Equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable and accrued expenses | $ | 73,804 | $ | 66,414 | $ | 79,759 | ||||||
| Accrued supplemental acquisition payment | - | 69,499 | 47,064 | |||||||||
| Customer deposits | 9,547 | 8,754 | 8,814 | |||||||||
| Income taxes currently payable | 5,258 | - | - | |||||||||
| Current portion of long-term debt | 17,512 | 8,500 | 15,810 | |||||||||
| Total current liabilities | 106,121 | 153,167 | 151,447 | |||||||||
| Deferred tax liabilities | 40,103 | 25,826 | 27,575 | |||||||||
| Noncurrent income tax payable | 4,051 | - | 3,050 | |||||||||
| Other liabilities | 3,929 | 2,202 | 2,359 | |||||||||
| Long-term debt | 429,096 | 343,692 | 422,344 | |||||||||
| Total liabilities | 583,300 | $ | 524,887 | $ | 606,775 | |||||||
| Equity: | ||||||||||||
| Cash America International, Inc. 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 | 166,278 | 163,678 | 160,007 | |||||||||
| Retained earnings | 500,150 | 424,999 | 440,252 | |||||||||
| Accumulated other comprehensive loss | (1,607 | ) | (59 | ) | (3,964 | ) | ||||||
Treasury shares, at cost (965,371 shares, 1,218,075 shares and 818,772 shares at September 30, 2009 and 2008 at December 31, 2008, respectively | (27,759 | ) | (36,253 | ) | (24,278 | ) | ||||||
| Total Cash America International, Inc. stockholders’ equity | 640,086 | 555,389 | 575,041 | |||||||||
| Noncontrolling interest | 5,626 | - | 4,694 | |||||||||
| Total equity | 645,712 | 555,389 | 579,735 | |||||||||
| Total liabilities and equity | $ | 1,229,012 | $ | 1,080,276 | $ | 1,186,510 | ||||||
| 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, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| (Unaudited) | ||||||||||||||||
| Revenue | ||||||||||||||||
| Finance and service charges | $ | 59,920 | $ | 46,977 | $ | 167,159 | $ | 133,788 | ||||||||
| Proceeds from disposition of merchandise | 114,786 | 105,517 | 354,719 | 330,189 | ||||||||||||
| Cash advance fees | 98,209 | 96,301 | 263,119 | 274,610 | ||||||||||||
| Check cashing fees, royalties and other | 3,209 | 3,355 | 11,599 | 12,476 | ||||||||||||
| Total Revenue | 276,124 | 252,150 | 796,596 | 751,063 | ||||||||||||
| Cost of Revenue | ||||||||||||||||
| Disposed merchandise | 75,542 | 68,033 | 229,578 | 206,290 | ||||||||||||
| Net Revenue | 200,582 | 184,117 | 567,018 | 544,773 | ||||||||||||
| Expenses | ||||||||||||||||
| Operations | 89,368 | 82,319 | 261,284 | 243,553 | ||||||||||||
| Cash advance loss provision | 37,690 | 40,950 | 91,642 | 102,817 | ||||||||||||
| Administration | 21,875 | 15,359 | 66,031 | 53,890 | ||||||||||||
| Depreciation and amortization | 10,219 | 9,298 | 30,953 | 27,956 | ||||||||||||
| Total Expenses | 159,152 | 147,926 | 449,910 | 428,216 | ||||||||||||
| Income from Operations | 41,430 | 36,191 | 117,108 | 116,557 | ||||||||||||
| Interest expense | (5,436 | ) | (4,292 | ) | (15,591 | ) | (11,005 | ) | ||||||||
| Interest income | 7 | 113 | 26 | 220 | ||||||||||||
| Foreign currency transaction gain (loss) | (150 | ) | (5 | ) | (19 | ) | (77 | ) | ||||||||
| Income before Income Taxes | 35,851 | 32,007 | 101,524 | 105,695 | ||||||||||||
| Provision for income taxes | 13,103 | 13,082 | 37,732 | 40,822 | ||||||||||||
| Net Income | 22,748 | 18,925 | 63,792 | 64,873 | ||||||||||||
| Less: Net income attributable to the noncontrolling interest | (270 | ) | - | (797 | ) | - | ||||||||||
| Net Income Attributable to Cash America International, Inc. | $ | 22,478 | $ | 18,925 | $ | 62,995 | $ | 64,873 | ||||||||
| Earnings Per Share: | ||||||||||||||||
| Net Income attributable to Cash America International, Inc. common stockholders: | ||||||||||||||||
| Basic | $ | 0.76 | $ | 0.65 | $ | 2.12 | $ | 2.21 | ||||||||
| Diluted | $ | 0.73 | $ | 0.63 | $ | 2.06 | $ | 2.16 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 29,702 | 29,266 | 29,757 | 29,321 | ||||||||||||
| Diluted | 30,698 | 30,035 | 30,524 | 30,082 | ||||||||||||
| Dividends declared per common share | $ | 0.035 | $ | 0.035 | $ | 0.105 | $ | 0.105 | ||||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except per share data) | ||||||||||||
| Three Months Ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Location statistics | ||||||||||||
| Pawn segment locations in operation – (e) | ||||||||||||
| Beginning of period, owned | 632 | 487 | 598 | 485 | ||||||||
| Acquired | - | - | 1 | 1 | ||||||||
| Start-ups | 16 | - | 49 | 1 | ||||||||
| Combined or closed | (3 | ) | - | (3 | ) | - | ||||||
| End of period, owned | 645 | 487 | 645 | 487 | ||||||||
| Franchise locations at end of period (a) | 15 | 15 | 15 | 15 | ||||||||
| Total pawn lending location locations at end of period (a) (e) | 660 | 502 | 660 | 502 | ||||||||
| Average number of owned pawn lending location locations (a) (e) | 641 | 487 | 622 | 486 | ||||||||
| Cash advance segment locations in operation (excludes online lending and card services) – | ||||||||||||
| Beginning of period | 248 | 292 | 248 | 304 | ||||||||
| Combined or closed | - | (2 | ) | - | (14 | ) | ||||||
| End of period | 248 | 290 | 248 | 290 | ||||||||
| Average number of cash advance locations | 248 | 291 | 248 | 298 | ||||||||
| Check cashing segment locations – | ||||||||||||
| Company-owned locations at end of period | 5 | 5 | 5 | 5 | ||||||||
| Franchised locations at end of period (a) | 121 | 129 | 121 | 129 | ||||||||
| Total check cashing centers in operation at end of period (a) | 126 | 134 | 126 | 134 | ||||||||
| Combined total of all locations at end of period (a) | 1034 | 926 | 1034 | 926 | ||||||||
| Services offered by locations | ||||||||||||
| Pawn lending – | ||||||||||||
| Pawn lending segment: | ||||||||||||
| Domestic | 488 | 487 | 488 | 487 | ||||||||
| Foreign (e) | 157 | - | 157 | - | ||||||||
| Franchise – domestic (a) | 15 | 15 | 15 | 15 | ||||||||
| Combined pawn lending segment (e) | 660 | 502 | 660 | 502 | ||||||||
| Cash advance segment – storefront operations | 116 | - | 116 | - | ||||||||
| Total locations offering pawn lending (a) (e) | 776 | 502 | 776 | 502 | ||||||||
| Cash advances – | ||||||||||||
| Cash advance segment – storefront operations | 248 | 290 | 248 | 290 | ||||||||
| Pawn lending segment – domestic | 432 | 432 | 432 | 432 | ||||||||
| Total locations offering cash advances | 680 | 722 | 680 | 722 | ||||||||
| Check cashing – | ||||||||||||
| Check cashing segment | ||||||||||||
| Company-owned locations | 5 | 5 | 5 | 5 | ||||||||
| Franchised locations (a) | 121 | 129 | 121 | 129 | ||||||||
| Total check cashing segment (a) | 126 | 134 | 126 | 134 | ||||||||
| Cash advance segment – storefront operations | 248 | 290 | 248 | 290 | ||||||||
| Pawn lending segment – domestic | 383 | 399 | 383 | 399 | ||||||||
| Total locations offering check cashing (a) | 757 | 823 | 757 | 823 | ||||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Market coverage | ||||||||||||||||
| Market coverage for pawn lending segment at end of period | ||||||||||||||||
States in the U.S. | 22 | 22 | 22 | 22 | ||||||||||||
| Foreign countries (e) | 1 | - | 1 | - | ||||||||||||
| Market coverage for cash advance segment at end of period (c) | ||||||||||||||||
| States and other U.S. territories | ||||||||||||||||
| Storefront | 6 | 7 | 6 | 7 | ||||||||||||
| Online | 32 | 33 | 32 | 33 | ||||||||||||
| Card services | 51 | 51 | 51 | 51 | ||||||||||||
| Foreign countries | ||||||||||||||||
| Online | 2 | 1 | 2 | 1 | ||||||||||||
| Pawn Lending Activities(f) | ||||||||||||||||
| Annualized yield on pawn loans - | ||||||||||||||||
| Pawn lending segment: | ||||||||||||||||
| Domestic | 127.7 | % | 123.9 | % | 131.1 | % | 128.2 | % | ||||||||
| Foreign (e) | 141.0 | % | - | % | 147.8 | % | - | % | ||||||||
| Combined pawn lending segment (e) | 129.2 | % | 123.9 | % | 133.0 | % | 128.2 | % | ||||||||
| Cash advance segment – storefront operations | 74.9 | % | - | % | 85.0 | % | - | % | ||||||||
| Combined annualized yield on pawn loans (e) | 128.9 | % | 123.9 | % | 132.8 | % | 128.2 | % | ||||||||
| Amount of pawn loans written and renewed - | ||||||||||||||||
| Pawn lending segment: | ||||||||||||||||
| Domestic | $ | 170,059 | $ | 161,225 | $ | 465,179 | $ | 442,553 | ||||||||
| Foreign (e) | 29,633 | - | 72,776 | - | ||||||||||||
| Combined pawn lending segment (e) | $ | 199,692 | $ | 161,225 | $ | 537,955 | $ | 442,553 | ||||||||
| Cash advance segment – storefront operations | 1,421 | - | 2,654 | - | ||||||||||||
| Combined amount of pawn loans written and renewed (e) | $ | 201,113 | $ | 161,225 | $ | 540,609 | $ | 442,553 | ||||||||
| Average pawn loan balance outstanding - | ||||||||||||||||
| Pawn lending segment: | ||||||||||||||||
| Domestic | $ | 162,100 | $ | 150,792 | $ | 148,796 | $ | 139,363 | ||||||||
| Foreign (e) | 21,140 | - | 18,893 | - | ||||||||||||
| Combined pawn lending segment (e) | $ | 183,240 | $ | 150,792 | $ | 167,689 | $ | 139,363 | ||||||||
| Cash advance segment – storefront operations | 1,312 | - | 637 | - | ||||||||||||
| Combined average pawn loan balance outstanding (e) | $ | 184,552 | $ | 150,792 | $ | 168,326 | $ | 139,363 | ||||||||
| Ending pawn loan balance - | ||||||||||||||||
| Pawn lending segment: | ||||||||||||||||
| Domestic | $ | 166,481 | $ | 158,226 | $ | 166,481 | $ | 158,226 | ||||||||
| Foreign (e) | 22,429 | - | 22,429 | - | ||||||||||||
| Combined pawn lending segment (e) | $ | 188,910 | $ | 158,226 | $ | 188,910 | $ | 158,226 | ||||||||
| Cash advance segment – storefront operations | 1,568 | - | 1,568 | - | ||||||||||||
| Combined ending pawn loan balance per location offering pawn loans (e) | $ | 190,478 | $ | 158,226 | $ | 190,478 | $ | 158,226 | ||||||||
| Ending pawn loan balance per location offering pawn loans -- | ||||||||||||||||
| Pawn lending segment : | ||||||||||||||||
| Domestic | $ | 341 | $ | 325 | $ | 341 | $ | 325 | ||||||||
| Foreign (e) | $ | 143 | $ | - | $ | 143 | $ | - | ||||||||
| Combined pawn lending segment (e) | $ | 293 | $ | 325 | $ | 293 | $ | 325 | ||||||||
| Cash advance segment - storefront operations | $ | 14 | $ | - | $ | 14 | $ | - | ||||||||
| Combined ending pawn loan balance per location offering pawn loans (e) | $ | 250 | $ | 325 | $ | 250 | $ | 325 | ||||||||
| 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, | |||||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||||||
| Average pawn loan amount at end of period (not in thousands) - | ||||||||||||||||||||
| Pawn lending segment: | ||||||||||||||||||||
| Domestic | $ | 119 | $ | 121 | $ | 119 | $ | 121 | ||||||||||||
| Foreign (e) | $ | 103 | $ | - | $ | 103 | $ | - | ||||||||||||
| Combined pawn lending segment (e) | $ | 117 | $ | 121 | $ | 117 | $ | 121 | ||||||||||||
| Cash advance segment – storefront operations | $ | 104 | $ | - | $ | 104 | $ | - | ||||||||||||
| Combined average pawn loan amount at end of period (e) | $ | 117 | $ | 121 | $ | 117 | $ | 121 | ||||||||||||
| Disposition of merchandise – domestic – | ||||||||||||||||||||
| Profit margin on disposition of merchandise | ||||||||||||||||||||
| Pawn lending segment – domestic | 34.1 | % | 35.5 | % | 35.3 | % | 37.5 | % | ||||||||||||
| Cash advance segment – storefront operations | 36.7 | % | - | % | 35.5 | % | - | % | ||||||||||||
| Combined profit margin on disposition of merchandise | 34.2 | % | 35.5 | % | 35.3 | % | 37.5 | % | ||||||||||||
| Disposition of merchandise - pawn lending segment – domestic - | ||||||||||||||||||||
| Average annualized merchandise turnover | 2.6 | x | 2.6 | x | 2.8 | x | 2.8 | x | ||||||||||||
Average balance of merchandise held for disposition per average location in operation | $ | 226 | $ | 213 | $ | 217 | $ | 204 | ||||||||||||
Ending balance of merchandise held for disposition per location in operation | $ | 238 | $ | 228 | $ | 238 | $ | 228 | ||||||||||||
| Cash advance activities(f) | ||||||||||||||||||||
| Amount of cash advances written –(a) (c) | ||||||||||||||||||||
| Funded by the Company | ||||||||||||||||||||
| Cash advance segment: | ||||||||||||||||||||
| Storefront | $ | 171,470 | $ | 146,504 | $ | 460,016 | $ | 449,571 | ||||||||||||
| Internet lending | 174,492 | 202,706 | 510,038 | 551,222 | ||||||||||||||||
| Total cash advance segment | $ | 345,962 | $ | 349,210 | $ | 970,054 | $ | 1,000,793 | ||||||||||||
| Pawn lending segment - domestic | 15,958 | 15,100 | 43,924 | 43,229 | ||||||||||||||||
| Combined funded by the Company | $ | 361,920 | $ | 364,310 | $ | 1,013,978 | $ | 1,044,022 | ||||||||||||
| Funded by third-party lenders (a) (b) | ||||||||||||||||||||
| Cash advance segment: | ||||||||||||||||||||
| Storefront | $ | 24,197 | $ | 21,600 | $ | 64,810 | $ | 71,585 | ||||||||||||
| Internet lending | 163,446 | 113,997 | 385,799 | 327,725 | ||||||||||||||||
| Card services | 30,457 | - | 76,123 | - | ||||||||||||||||
| Total cash advance segment | $ | 218,100 | $ | 135,597 | $ | 526,732 | $ | 399,310 | ||||||||||||
| Pawn lending segment - domestic | 34,356 | 35,534 | 95,488 | 111,309 | ||||||||||||||||
| Combined funded by third-party lenders (a) (b) | $ | 252,456 | $ | 171,131 | $ | 622,220 | $ | 510,619 | ||||||||||||
| Aggregate amount of cash advances written - (a) (c) | ||||||||||||||||||||
| Cash advance segment: | ||||||||||||||||||||
| Storefront | $ | 195,667 | $ | 168,104 | $ | 524,826 | $ | 521,156 | ||||||||||||
| Internet lending | 337,938 | 316,703 | 895,837 | 878,947 | ||||||||||||||||
| Card services | 30,457 | - | 76,123 | - | ||||||||||||||||
| Total cash advance segment | $ | 564,062 | $ | 484,807 | $ | 1,496,786 | $ | 1,400,103 | ||||||||||||
| Pawn lending segment - domestic | 50,314 | 50,634 | 139,412 | 154,538 | ||||||||||||||||
| Combined aggregate amount of cash advances written(a) (c) | $ | 614,376 | $ | 535,441 | $ | 1,636,198 | $ | 1,554,641 | ||||||||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except per share data) | ||||||||||||
| Three Months Ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Number of cash advances written (not in thousands) – | ||||||||||||
| Funded by the Company | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | 387,635 | 422,009 | 1,038,877 | 1,267,211 | ||||||||
| Internet lending | 445,928 | 487,572 | 1,270,268 | 1,318,454 | ||||||||
| Total cash advance segment | 833,563 | 909,581 | 2,309,145 | 2,585,665 | ||||||||
| Pawn lending segment – domestic | 48,927 | 46,777 | 134,051 | 137,518 | ||||||||
| Combined by the Company | 882,490 | 956,358 | 2,443,196 | 2,723,183 | ||||||||
| Funded by third-party lenders (a) (b) | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | 40,559 | 37,867 | 109,031 | 127,651 | ||||||||
| Internet lending | 237,104 | 168,553 | 540,332 | 493,134 | ||||||||
| Card services | 216,535 | - | 516,236 | - | ||||||||
| Total cash advance segment | 494,198 | 206,420 | 1,165,599 | 620,785 | ||||||||
| Pawn lending segment - domestic | 64,325 | 75,031 | 178,450 | 236,729 | ||||||||
| Combined by third-party lenders (a) (b) | 558,523 | 281,451 | 1,344,049 | 857,514 | ||||||||
| Aggregate number of cash advances written - (a) (c) | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | 428,194 | 459,876 | 1,147,908 | 1,394,862 | ||||||||
| Internet lending | 683,032 | 656,125 | 1,810,600 | 1,811,588 | ||||||||
| Card services | 216,535 | - | 516,236 | - | ||||||||
| Total cash advance segment | 1,327,761 | 1,116,001 | 3,474,744 | 3,206,450 | ||||||||
| Pawn lending segment - domestic | 113,252 | 121,808 | 312,501 | 374,247 | ||||||||
| Combined aggregate number of cash advances written (a) (c) | 1,441,013 | 1,237,809 | 3,787,245 | 3,580,697 | ||||||||
| Cash advance customer balances (gross): | ||||||||||||
| Owned by Company (d) | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | $ | 42,581 | $ | 40,295 | $ | 42,581 | $ | 40,295 | ||||
| Internet lending | 62,207 | 64,944 | 62,207 | 64,944 | ||||||||
| Card services | 6,448 | - | 6,448 | - | ||||||||
| Total cash advance segment | $ | 111,236 | $ | 105,239 | $ | 111,236 | $ | 105,239 | ||||
| Pawn lending segment - domestic | 6,924 | 7,096 | 6,924 | 7,096 | ||||||||
| Combined owned by the Company(d) | $ | 118,160 | $ | 112,335 | $ | 118,160 | $ | 112,335 | ||||
| Owned by third-party lenders (a) (b) | ||||||||||||
| Cash advance segment : | ||||||||||||
| Storefront | $ | 4,373 | $ | 4,462 | $ | 4,373 | $ | 4,462 | ||||
| Internet lending | 31,568 | 19,960 | 31,568 | 19,960 | ||||||||
| Card services | 649 | - | 649 | - | ||||||||
| Total cash advance segment | $ | 36,590 | $ | 24,422 | $ | 36,590 | $ | 24,422 | ||||
| Pawn lending segment - domestic | 6,827 | 6,594 | 6,827 | 6,594 | ||||||||
| Combined owned by third-party lenders (a) (b) | $ | 43,417 | $ | 31,016 | $ | 43,417 | $ | 31,016 | ||||
| Aggregate cash advance customer balances (gross) - (a) (c) | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | $ | 46,954 | $ | 44,757 | $ | 46,954 | $ | 44,757 | ||||
| Internet lending | 93,775 | 84,904 | 93,775 | 84,904 | ||||||||
| Card services | 7,097 | - | 7,097 | - | ||||||||
| Total cash advance segment | $ | 147,826 | $ | 129,661 | $ | 147,826 | $ | 129,661 | ||||
| Pawn lending segment - domestic | 13,751 | 13,690 | 13,751 | 13,690 | ||||||||
| Combined aggregate cash advance customer balances (gross) (a) (c) | $ | 161,577 | $ | 143,351 | $ | 161,577 | $ | 143,351 | ||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Average amount per cash advance written (not in thousands) - | ||||||||||||||||
| Funded by the Company | ||||||||||||||||
| Cash advance segment: | ||||||||||||||||
| Storefront | $ | 442 | $ | 347 | $ | 443 | $ | 355 | ||||||||
| Internet lending | $ | 391 | $ | 416 | $ | 402 | $ | 418 | ||||||||
| Total cash advance segment | $ | 415 | $ | 384 | $ | 420 | $ | 387 | ||||||||
| Pawn lending segment - domestic | $ | 326 | $ | 323 | $ | 328 | $ | 314 | ||||||||
| Combined by the Company | $ | 410 | $ | 381 | $ | 415 | $ | 383 | ||||||||
| Funded by third-party lenders (a) (b) | ||||||||||||||||
| Cash advance segment | ||||||||||||||||
| Storefront | $ | 597 | $ | 570 | $ | 594 | $ | 561 | ||||||||
| Internet lending | $ | 689 | $ | 676 | $ | 714 | $ | 665 | ||||||||
| Card services | $ | 141 | $ | - | $ | 147 | $ | - | ||||||||
| Total cash advance segment | $ | 441 | $ | 657 | $ | 452 | $ | 643 | ||||||||
| Pawn lending segment - domestic | $ | 534 | $ | 474 | $ | 535 | $ | 470 | ||||||||
| Combined by third-party lenders (a) (b) | $ | 452 | $ | 608 | $ | 463 | $ | 595 | ||||||||
| Aggregate average amount per cash advance written -(a) (c) | ||||||||||||||||
| Cash advance segment: | ||||||||||||||||
| Storefront | $ | 457 | $ | 366 | $ | 457 | $ | 374 | ||||||||
| Internet lending | $ | 495 | $ | 483 | $ | 495 | $ | 485 | ||||||||
| Card services | $ | 141 | $ | - | $ | 147 | $ | - | ||||||||
| Total cash advance segment | $ | 425 | $ | 434 | $ | 431 | $ | 437 | ||||||||
| Pawn lending segment - domestic | $ | 444 | $ | 416 | $ | 446 | $ | 413 | ||||||||
| Combined aggregate average amount per cash advance written(a) (c) | $ | 426 | $ | 433 | $ | 432 | $ | 434 | ||||||||
| Check cashing | ||||||||||||||||
| Face amount of checks cashed - | ||||||||||||||||
| Company-owned locations: | ||||||||||||||||
| Check cashing segment | $ | 5,175 | $ | 7,106 | $ | 17,348 | $ | 22,322 | ||||||||
| Cash advance segment | 29,026 | 40,497 | 120,727 | 151,688 | ||||||||||||
| Pawn lending segment | 4,918 | 7,222 | 18,307 | 27,483 | ||||||||||||
| Combined company-owned locations | 39,119 | 54,825 | 156,382 | 201,493 | ||||||||||||
| Franchised locations - check cashing segment (a) | 229,314 | 295,791 | 790,671 | 968,000 | ||||||||||||
| Combined face amount of checks cashed (a) | $ | 268,433 | $ | 350,616 | $ | 947,053 | $ | 1,169,493 | ||||||||
| Fees collected from customers - | ||||||||||||||||
| Company-owned locations: | ||||||||||||||||
| Check cashing segment | $ | 61 | $ | 89 | $ | 244 | $ | 313 | ||||||||
| Cash advance segment | 687 | 957 | 3,012 | 4,072 | ||||||||||||
| Pawn lending segment | 81 | 122 | 336 | 506 | ||||||||||||
| Combined company-owned locations | 829 | 1,168 | 3,592 | 4,891 | ||||||||||||
| Franchised locations - check cashing segment (a) | 3,150 | 4,073 | 11,288 | 13,740 | ||||||||||||
| Combined fees collected from customers (a) | $ | 3,979 | $ | 5,241 | $ | 14,880 | $ | 18,631 | ||||||||
| Fees as a percentage of checks cashed - | ||||||||||||||||
| Company-owned locations: | ||||||||||||||||
| Check cashing segment | 1.2 | % | 1.3 | % | 1.4 | % | 1.4 | % | ||||||||
| Cash advance segment | 2.4 | 2.4 | 2.5 | 2.7 | ||||||||||||
| Pawn lending segment | 1.6 | 1.7 | 1.8 | 1.8 | ||||||||||||
| Combined company-owned locations | 2.1 | 2.1 | 2.3 | 2.4 | ||||||||||||
| Franchised locations - check cashing segment(a) | 1.4 | 1.4 | 1.4 | 1.4 | ||||||||||||
| Combined fees as a percentage of checks cashed (a) | 1.5 | % | 1.5 | % | 1.6 | % | 1.6 | % | ||||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (in thousands, except per share data) | ||||||||||||
| Three Months Ended | Nine months ended | |||||||||||
| September 30, | September 30, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Average check cashed (not in thousands) – | ||||||||||||
| Company-owned locations: | ||||||||||||
| Check cashing segment | $ | 404 | $ | 400 | $ | 423 | $ | 405 | ||||
| Cash advance segment | $ | 510 | $ | 463 | $ | 581 | $ | 516 | ||||
| Pawn lending segment | $ | 335 | $ | 412 | $ | 410 | $ | 474 | ||||
| Combined company-owned locations | $ | 463 | $ | 447 | $ | 533 | $ | 495 | ||||
| Franchised locations – check cashing segment (a) | $ | 412 | $ | 437 | $ | 457 | $ | 465 | ||||
| Combined average check cashed(a) | $ | 418 | $ | 436 | $ | 461 | $ | 464 | ||||
(a) Non-generally accepted accounting principles in the United States (“non-GAAP”) presentation. For informational purposes and to provide a greater understanding of the Company’s businesses. Management believes that information provided with this level of detail is meaningful and useful in understanding the activities and business metrics of the Company’s operations. The non-GAAP financial measure is provided immediately following its most comparable generally accepted accounting principles (“GAAP”) amount and can be reconciled to its most comparable GAAP amount through the presentation of the financial information above.
(b) Includes (i) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders through a CSO Program offered in certain states in the Company’s storefront and online distribution channels, and (ii) line of credit advances issued by a third-party lender utilizing the Company’s card services distribution channel to process these cash advances under a line of credit offered by such lender on certain stored-value and payroll cards issued by such lender. In its card services distribution channel, the Company acquires a participation interest in the receivables generated by the third party lender; and cash advance fees associated with the Company’s card services activities include revenue from the Company’s participation interest in the line of credit receivables generated by the third party lender, as well as marketing, processing and other miscellaneous fee income. (Note: The Company did not commence business in the card services distribution channel until the third quarter of 2008).
(c) Includes cash advances written by the Company as well as the cash advance products described in footnote (b) above.
(d) Amounts recorded in the Company’s consolidated financial statements.
(e) Includes Prenda Fácil locations.
(f) Excludes franchised locations.
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (in thousands, except per share data) | ||||||
| 2009 | 2008 | |||||
| Funded by the Company (a) | ||||||
| Active cash advances and fees receivable | $ | 77,216 | $ | 73,097 | ||
| Cash advances and fees in collection | 19,550 | 25,857 | ||||
| Total funded by the Company (a) | 96,766 | 98,954 | ||||
| Funded by third-party lenders(b) (c) | ||||||
| Active cash advances and fees receivable | 48,463 | 31,072 | ||||
| Cash advances and fees in collection | 16,348 | 13,325 | ||||
| Total funded by third-party lenders(b) (c) | 64,811 | 44,397 | ||||
| Combined gross portfolio of cash advances and fees receivable(b) (d) | 161,577 | 143,351 | ||||
| Less: Elimination of cash advances owned by third-party lenders | 43,417 | 31,016 | ||||
| Company-owned cash advances and fees receivable, gross | 118,160 | 112,335 | ||||
| Less: Allowance for losses | 24,688 | 25,301 | ||||
| Cash advances and fees receivable, net | $ | 93,472 | $ | 87,034 | ||
| Three months ended | Nine months ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Allowance for losses for Company-owned cash advances | ||||||||||||||||
| Balance at beginning of period | $ | 22,163 | $ | 27,401 | $ | 21,495 | $ | 25,676 | ||||||||
| Cash advance loss provision | 36,933 | 41,301 | 90,961 | 102,688 | ||||||||||||
| Charge-offs | (38,749 | ) | (47,762 | ) | (101,890 | ) | (123,443 | ) | ||||||||
| Recoveries | 4,341 | 4,360 | 14,122 | 20,380 | ||||||||||||
| Balance at end of period | $ | 24,688 | $ | 25,301 | $ | 24,688 | $ | 25,301 | ||||||||
| Accrual for third-party lender-owned cash advances | ||||||||||||||||
| Balance at beginning of period | $ | 2,059 | $ | 2,309 | $ | 2,135 | $ | 1,828 | ||||||||
| (Decrease) increase in loss provision | 757 | (352 | ) | 681 | 129 | |||||||||||
| Balance at end of period | $ | 2,816 | $ | 1,957 | $ | 2,816 | $ | 1,957 | ||||||||
| Combined statistics (d) | ||||||||||||||||
| Combined cash advance loss provision | $ | 37,690 | $ | 40,950 | $ | 91,642 | $ | 102,817 | ||||||||
| Charge-offs (net of recoveries) | 34,408 | 43,402 | 87,768 | 103,063 | ||||||||||||
Combined cash advance loss provision as a % of combined cash advances written (b) | 6.1 | % | 7.6 | % | 5.6 | % | 6.6 | % | ||||||||
Charge-offs (net of recoveries) as a % of combined cash advances written (b) | 5.6 | % | 8.1 | % | 5.4 | % | 6.6 | % | ||||||||
Combined allowance for losses and accrued third-party lender losses as a % of combined gross portfolio (b) | 17.0 | % | 19.0 | % | 17.0 | % | 19.0 | % | ||||||||
(a) Cash advances written by the Company in its pawn and cash advance locations and through the internet distribution channel.
(b) Non-GAAP presentation. For informational purposes and to provide a greater understanding of the Company’s businesses. Management believes that information provided with this level of detail is meaningful and useful in understanding the activities and business metrics of the Company’s operations. Management evaluates the cash advance portfolio on an aggregate basis including the loss provision for the Company-owned and the third-party lender-owned portfolio that the Company guarantees. The non-GAAP financial measure is provided immediately following its most comparable GAAP amount and can be reconciled to its most comparable GAAP amount through the presentation of the financial information above.
(c) Cash advances written by third-party lenders that were marketed, processed, or arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn and cash advance locations and through the internet and card services distribution channels. (Note: The Company did not commence business in the card services distribution channel until the third quarter of 2008.)
(d) Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders that were marketed, processed or 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 and card services distribution channels. (Note: The Company did not commence business in the card services distribution channel until the third quarter of 2008.)
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (in thousands, except per share data) | ||||||||||||
| Pawn Lending (1) | Cash Advance (2) | Check Cashing | Consolidated | |||||||||
Three Months Ended September 30, 2009 | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 59,673 | $ | 247 | $ | - | $ | 59,920 | ||||
| Proceeds from disposition of merchandise | 110,302 | 4,484 | - | 114,786 | ||||||||
| Cash advance fees | 8,334 | 89,875 | - | 98,209 | ||||||||
| Check cashing fees, royalties and other | 1,030 | 1,584 | 595 | 3,209 | ||||||||
| Total revenue | 179,339 | 96,190 | 595 | 276,124 | ||||||||
| Cost of revenue – disposed merchandise | 72,704 | 2,838 | - | 75,542 | ||||||||
| Net revenue | 106,635 | 93,352 | 595 | 200,582 | ||||||||
| Expenses | ||||||||||||
| Operations | 57,732 | 31,380 | 256 | 89,368 | ||||||||
| Cash advance loss provision | 2,352 | 35,338 | - | 37,690 | ||||||||
| Administration | 9,869 | 11,751 | 255 | 21,875 | ||||||||
| Depreciation and amortization | 7,049 | 3,129 | 41 | 10,219 | ||||||||
| Total expenses | 77,002 | 81,598 | 552 | 159,152 | ||||||||
| Income from operations | $ | 29,633 | $ | 11,754 | $ | 43 | $ | 41,430 | ||||
As of September 30, 2009 | ||||||||||||
| Total assets | $ | 778,621 | $ | 443,900 | $ | 6,491 | $ | 1,229,012 | ||||
| Goodwill | $ | 208,819 | $ | 279,255 | $ | 5,310 | $ | 493,384 | ||||
| Pawn Lending (1) | Cash Advance (2) | Check Cashing | Consolidated | |||||||||
Three Months Ended September 30, 2008 | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 46,977 | $ | - | $ | - | $ | 46,977 | ||||
| Proceeds from disposition of merchandise | 105,517 | - | - | 105,517 | ||||||||
| Cash advance fees | 8,584 | 87,717 | - | 96,301 | ||||||||
| Check cashing fees, royalties and other | 967 | 1,610 | 778 | 3,355 | ||||||||
| Total revenue | 162,045 | 89,327 | 778 | 252,150 | ||||||||
| Cost of revenue – disposed merchandise | 68,033 | - | - | 68,033 | ||||||||
| Net revenue | 94,012 | 89,327 | 778 | 184,117 | ||||||||
| Expenses | ||||||||||||
| Operations | 53,000 | 29,014 | 305 | 82,319 | ||||||||
| Cash advance loss provision | 2,725 | 38,225 | - | 40,950 | ||||||||
| Administration | 5,527 | 9,556 | 276 | 15,359 | ||||||||
| Depreciation and amortization | 5,995 | 3,246 | 57 | 9,298 | ||||||||
| Total expenses | 67,247 | 80,041 | 638 | 147,926 | ||||||||
| Income from operations | $ | 26,765 | $ | 9,286 | $ | 140 | $ | 36,191 | ||||
As of September 30, 2008 | ||||||||||||
| Total assets | $ | 625,192 | $ | 448,057 | $ | 7,027 | $ | 1,080,276 | ||||
| Goodwill | $ | 143,998 | $ | 271,532 | $ | 5,310 | $ | 420,840 | ||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (in thousands, except per share data) | ||||||||||||
| Pawn Lending (1) | Cash Advance (2) | Check Cashing | Consolidated | |||||||||
Nine Months Ended September 30, 2009 | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 166,755 | $ | 404 | $ | - | $ | 167,159 | ||||
| Proceeds from disposition of merchandise | 346,161 | 8,558 | - | 354,719 | ||||||||
| Cash advance fees | 23,141 | 239,978 | - | 263,119 | ||||||||
| Check cashing fees, royalties and other | 2,982 | 6,436 | 2,181 | 11,599 | ||||||||
| Total revenue | 539,039 | 255,376 | 2,181 | 796,596 | ||||||||
| Cost of revenue – disposed merchandise | 224,059 | 5,519 | - | 229,578 | ||||||||
| Net revenue | 314,980 | 249,857 | 2,181 | 567,018 | ||||||||
| Expenses | ||||||||||||
| Operations | 173,417 | 86,997 | 870 | 261,284 | ||||||||
| Cash advance loss provision | 5,068 | 86,574 | - | 91,642 | ||||||||
| Administration | 32,582 | 32,705 | 744 | 66,031 | ||||||||
| Depreciation and amortization | 21,255 | 9,511 | 187 | 30,953 | ||||||||
| Total expenses | 232,322 | 215,787 | 1,801 | 449,910 | ||||||||
| Income from operations | $ | 82,658 | $ | 34,070 | $ | 380 | $ | 117,108 | ||||
| Pawn Lending (1) | Cash Advance (2) | Check Cashing | Consolidated | |||||||||
Nine Months Ended September 30, 2008 | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 133,788 | $ | - | $ | - | $ | 133,788 | ||||
| Proceeds from disposition of merchandise | 330,189 | - | - | 330,189 | ||||||||
| Cash advance fees | 26,514 | 248,096 | - | 274,610 | ||||||||
| Check cashing fees, royalties and other | 2,969 | 6,871 | 2,636 | 12,476 | ||||||||
| Total revenue | 493,460 | 254,967 | 2,636 | 751,063 | ||||||||
| Cost of revenue – disposed merchandise | 206,290 | - | - | 206,290 | ||||||||
| Net revenue | 287,170 | 254,967 | 2,636 | 544,773 | ||||||||
| Expenses | ||||||||||||
| Operations | 159,408 | 83,148 | 997 | 243,553 | ||||||||
| Cash advance loss provision | 7,667 | 95,150 | - | 102,817 | ||||||||
| Administration | 27,081 | 25,985 | 824 | 53,890 | ||||||||
| Depreciation and amortization | 17,525 | 10,249 | 182 | 27,956 | ||||||||
| Total expenses | 211,681 | 214,532 | 2,003 | 428,216 | ||||||||
| Income from operations | $ | 75,489 | $ | 40,435 | $ | 633 | $ | 116,557 | ||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (in thousands, except per share data) | |||||||||
(1) The Pawn Lending segment is composed of the Company’s domestic pawn lending operations and Prenda Fácil. The following table summarizes the results from each channel’s contributions to the Pawn Lending segment for the three and nine months ended September 30, 2009 and 2008 (the average exchange rate of MXN (Mexican pesos) to USD was 13.330 and 14.178 for the three and nine month periods, respectively): | |||||||||
| Domestic | Foreign | Total Pawn Lending | |||||||
Three Months Ended September 30, 2009 | |||||||||
| Revenue | |||||||||
| Finance and service charges | $ | 52,181 | $ | 7,492 | $ | 59,673 | |||
| Proceeds from disposition of merchandise | 110,302 | - | 110,302 | ||||||
| Cash advance fees | 8,334 | - | 8,334 | ||||||
| Check cashing fees, royalties and other | 835 | 195 | 1,030 | ||||||
| Total revenue | 171,652 | 7,687 | 179,339 | ||||||
| Cost of revenue – disposed merchandise | 72,704 | - | 72,704 | ||||||
| Net revenue | 98,948 | 7,687 | 106,635 | ||||||
| Expenses | |||||||||
| Operations | 54,601 | 3,131 | 57,732 | ||||||
| Cash advance loss provision | 2,352 | - | 2,352 | ||||||
| Administration | 7,990 | 1,879 | 9,869 | ||||||
| Depreciation and amortization | 6,083 | 966 | 7,049 | ||||||
| Total expenses | 71,026 | 5,976 | 77,002 | ||||||
| Income from operations | $ | 27,922 | $ | 1,711 | $ | 29,633 | |||
| Domestic | Foreign | Total Pawn Lending | |||||||
Three Months Ended September 30, 2008 | |||||||||
| Revenue | |||||||||
| Finance and service charges | $ | 46,977 | $ | - | $ | 46,977 | |||
| Proceeds from disposition of merchandise | 105,517 | - | 105,517 | ||||||
| Cash advance fees | 8,584 | - | 8,584 | ||||||
| Check cashing fees, royalties and other | 967 | - | 967 | ||||||
| Total revenue | 162,045 | - | 162,045 | ||||||
| Cost of revenue – disposed merchandise | 68,033 | - | 68,033 | ||||||
| Net revenue | 94,012 | - | 94,012 | ||||||
| Expenses | |||||||||
| Operations | 53,000 | - | 53,000 | ||||||
| Cash advance loss provision | 2,725 | - | 2,725 | ||||||
| Administration | 5,527 | - | 5,527 | ||||||
| Depreciation and amortization | 5,995 | - | 5,995 | ||||||
| Total expenses | 67,247 | - | 67,247 | ||||||
| Income from operations | $ | 26,765 | $ | - | $ | 26,765 | |||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (in thousands, except per share data) | |||||||||
| Domestic | Foreign | Total Pawn Lending | |||||||
Nine Months Ended September 30, 2009 | |||||||||
| Revenue | |||||||||
| Finance and service charges | $ | 145,893 | $ | 20,862 | $ | 166,755 | |||
| Proceeds from disposition of merchandise | 346,161 | - | 346,161 | ||||||
| Cash advance fees | 23,141 | - | 23,141 | ||||||
| Check cashing fees, royalties and other | 2,653 | 329 | 2,982 | ||||||
| Total revenue | 517,848 | 21,191 | 539,039 | ||||||
| Cost of revenue – disposed merchandise | 224,059 | - | 224,059 | ||||||
| Net revenue | 293,789 | 21,191 | 314,980 | ||||||
| Expenses | |||||||||
| Operations | 164,748 | 8,669 | 173,417 | ||||||
| Cash advance loss provision | 5,068 | - | 5,068 | ||||||
| Administration | 27,649 | 4,933 | 32,582 | ||||||
| Depreciation and amortization | 18,558 | 2,697 | 21,255 | ||||||
| Total expenses | 216,023 | 16,299 | 232,322 | ||||||
| Income from operations | $ | 77,766 | $ | 4,892 | $ | 82,658 | |||
| Domestic | Foreign | Total Pawn Lending | |||||||
Nine Months Ended September 30, 2008 | |||||||||
| Revenue | |||||||||
| Finance and service charges | $ | 133,788 | $ | - | $ | 133,788 | |||
| Proceeds from disposition of merchandise | 330,189 | - | 330,189 | ||||||
| Cash advance fees | 26,514 | - | 26,514 | ||||||
| Check cashing fees, royalties and other | 2,969 | - | 2,969 | ||||||
| Total revenue | 493,460 | - | 493,460 | ||||||
| Cost of revenue – disposed merchandise | 206,290 | - | 206,290 | ||||||
| Net revenue | 287,170 | - | 287,170 | ||||||
| Expenses | |||||||||
| Operations | 159,408 | - | 159,408 | ||||||
| Cash advance loss provision | 7,667 | - | 7,667 | ||||||
| Administration | 27,081 | - | 27,081 | ||||||
| Depreciation and amortization | 17,525 | - | 17,525 | ||||||
| Total expenses | 211,681 | - | 211,681 | ||||||
| Income from operations | $ | 75,489 | $ | - | $ | 75,489 | |||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (in thousands, except per share data) | |||||||||||||||
(2) The Cash Advance segment is composed of three distribution channels - a multi-unit “storefront” platform, an online, internet based lending platform, and a card services business. The following table summarizes the results from each channel’s contributions to the Cash Advance segment for the three and nine months ended September 30, 2009 and 2008: | |||||||||||||||
| Three Months Ended September 30, 2009 | Storefront | Internet Lending | Card Services | Total Cash Advance | |||||||||||
| Revenue | |||||||||||||||
| Finance and service charges | $ | 247 | $ | - | $ | - | $ | 247 | |||||||
| Proceeds from disposition of merchandise | 4,484 | - | - | 4,484 | |||||||||||
| Cash advance fees | 23,285 | 63,751 | 2,839 | 89,875 | |||||||||||
| Check cashing fees, royalties and other | 1,288 | 294 | 2 | 1,584 | |||||||||||
| Total revenue | 29,304 | 64,045 | 2,841 | 96,190 | |||||||||||
| Cost of revenue – disposed merchandise | 2,838 | - | - | 2,838 | |||||||||||
| Net revenue | 26,466 | 64,045 | 2,841 | 93,352 | |||||||||||
| Expenses | |||||||||||||||
| Operations | 13,976 | 16,594 | 810 | 31,380 | |||||||||||
| Cash advance loss provision | 4,838 | 29,394 | 1,106 | 35,338 | |||||||||||
| Administration | 2,345 | 9,259 | 147 | 11,751 | |||||||||||
| Depreciation and amortization | 1,228 | 1,744 | 157 | 3,129 | |||||||||||
| Total expenses | 22,387 | 56,991 | 2,220 | 81,598 | |||||||||||
| Income from operations | $ | 4,079 | $ | 7,054 | $ | 621 | $ | 11,754 | |||||||
Three Months Ended September 30, 2008 | Storefront | Internet Lending | Card Services | Total Cash Advance | |||||||||||
| Revenue | |||||||||||||||
| Cash advance fees | $ | 26,859 | $ | 60,031 | $ | 827 | $ | 87,717 | |||||||
| Check cashing fees, royalties and other | 1,553 | 55 | 2 | 1,610 | |||||||||||
| Total revenue | 28,412 | 60,086 | 829 | 89,327 | |||||||||||
| Expenses | |||||||||||||||
| Operations | 17,763 | 10,427 | 824 | 29,014 | |||||||||||
| Cash advance loss provision | 6,411 | 31,486 | 328 | 38,225 | |||||||||||
| Administration | 2,651 | 6,805 | 100 | 9,556 | |||||||||||
| Depreciation and amortization | 1,883 | 1,363 | - | 3,246 | |||||||||||
| Total expenses | 28,708 | 50,081 | 1,252 | 80,041 | |||||||||||
| Income from operations | $ | (296 | ) | $ | 10,005 | $ | (423 | ) | $ | 9,286 | |||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (in thousands, except per share data) | ||||||||||||||
| Nine Months Ended September 30, 2009 | Storefront | Internet Lending | Card Services | Total Cash Advance | ||||||||||
| Revenue | ||||||||||||||
| Finance and service charges | $ | 404 | $ | - | $ | - | $ | 404 | ||||||
| Proceeds from disposition of merchandise | 8,558 | - | - | 8,558 | ||||||||||
| Cash advance fees | 62,520 | 170,361 | 7,097 | 239,978 | ||||||||||
| Check cashing fees, royalties and other | 5,540 | 890 | 6 | 6,436 | ||||||||||
| Total revenue | 77,022 | 171,251 | 7,103 | 255,376 | ||||||||||
| Cost of revenue – disposed merchandise | 5,519 | - | - | 5,519 | ||||||||||
| Net revenue | 71,503 | 171,251 | 7,103 | 249,857 | ||||||||||
| Expenses | ||||||||||||||
| Operations | 44,174 | 40,291 | 2,532 | 86,997 | ||||||||||
| Cash advance loss provision | 10,564 | 73,065 | 2,945 | 86,574 | ||||||||||
| Administration | 6,975 | 25,296 | 434 | 32,705 | ||||||||||
| Depreciation and amortization | 4,015 | 5,089 | 407 | 9,511 | ||||||||||
| Total expenses | 65,728 | 143,741 | 6,318 | 215,787 | ||||||||||
| Income from operations | $ | 5,775 | $ | 27,510 | $ | 785 | $ | 34,070 | ||||||
| Nine Months Ended September 30, 2008 | Storefront | Internet Lending | Card Services | Total Cash Advance | ||||||||||
| Revenue | ||||||||||||||
| Cash advance fees | $ | 82,979 | $ | 164,290 | $ | 827 | $ | 248,096 | ||||||
| Check cashing fees, royalties and other | 6,810 | 59 | 2 | 6,871 | ||||||||||
| Total revenue | 89,789 | 164,349 | 829 | 254,967 | ||||||||||
| Expenses | ||||||||||||||
| Operations | 51,637 | 30,691 | 820 | 83,148 | ||||||||||
| Cash advance loss provision | 17,421 | 77,401 | 328 | 95,150 | ||||||||||
| Administration | 7,992 | 17,893 | 100 | 25,985 | ||||||||||
| Depreciation and amortization | 6,688 | 3,561 | - | 10,249 | ||||||||||
| Total expenses | 83,738 | 129,546 | 1,248 | 214,532 | ||||||||||
| Income from operations | $ | 6,051 | $ | 34,803 | $ | (419 | ) | $ | 40,435 | |||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INVENTORY AND GROSS PROFIT OPERATING DATA THREE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008 (in thousands, except per share data) | ||||||||||||
The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.7 million and $1.9 million, respectively, at September 30, 2009 and 2008 (dollars in thousands). | ||||||||||||
| 2009 | 2008 | |||||||||||
| Amount | % | Amount | % | |||||||||
| Merchandise held for 1 year or less – | ||||||||||||
| Jewelry | $ | 73,108 | 62.2 | % | $ | 75,718 | 67.0 | % | ||||
| Other merchandise | 36,014 | 30.6 | 28,784 | 25.5 | ||||||||
| Total merchandise held for 1 year or less | 109,122 | 92.8 | 104,502 | 92.5 | ||||||||
| Merchandise held for more than 1 year – | ||||||||||||
| Jewelry | 5,207 | 4.4 | 5,222 | 4.6 | ||||||||
| Other merchandise | 3,260 | 2.8 | 3,224 | 2.9 | ||||||||
| Total merchandise held for more than 1 year | 8,467 | 7.2 | 8,446 | 7.5 | ||||||||
| Total merchandise held for disposition | $ | 117,589 | 100.0 | % | $ | 112,948 | 100.0 | % | ||||
NON-GAAP DISCLOSURE
In addition to the financial information prepared in conformity with GAAP, the Company provides historical non-GAAP financial information. Each non-GAAP financial measure included in the Company’s Management Discussion and Analysis has been indicated by footnote.
Management uses the non-GAAP financial measures for internal managerial purposes and believes that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of the Company’s operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with the Company’s GAAP results, provide a more complete understanding of factors and trends affecting the Company’s business.
Management provides non-GAAP financial information for informational purposes and to enhance understanding of the Company’s GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of, the Company’s financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.
Contacts:
Thomas A. Bessant, Jr.,
817-335-1100