Cash America International, Inc. (NYSE: CSH) reported that its net income for the second quarter ended June 30, 2009 was $16,607,000 (54 cents per share) and that it exceeded the top of its previously released expectations of its earnings per share for the second quarter of 2009. Lower losses on cash advance loans and rising pawn loan demand led to the improvement in earnings compared to expectations. Management had also projected that its earnings in the second quarter of 2009 would be below the prior year primarily due to regulatory changes impacting earnings in certain cash advance markets which contributed significant earnings in the prior year and because many of the Company’s customers would be without the economic stimulus checks issued by the Federal Government in the second quarter of 2008. The second quarter 2008 earnings were $20,137,000 (67 cents per share).
Total revenue during the second quarter of 2009 was $252.4 million, up slightly from $248.0 million in the second quarter of 2008, due to a 25% increase in finance and service charges on pawn loan balances year over year which offset lower levels of cash advance fees compared to the second quarter of 2008. Although revenue from merchandise disposition activities in the second quarter of 2009 achieved a nominal increase over the second quarter of 2008, lower gross profit margins contributed to a slight decrease in consolidated net revenue, which was consistent with expectations.
Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “The recovery of pawn loan balances during the second quarter contributed to the Company exceeding our initial expectations. In addition, our efforts to moderate bad debt expense through more careful underwriting instituted late in 2008 led to lower losses on loans in our cash advance portfolio through the first half of fiscal 2009. Both of these factors are positive elements as we enter the final six months of 2009. We are also encouraged by increases in loan volume in our storefront cash advance business which has been challenged by lower yields due to regulatory changes in 2008 and 2009. It appears that we will have the opportunity to benefit from sustained loan demand to contribute to a successful second half of the year.”
For the first six months of fiscal year 2009, total revenue increased 4% to $520.5 million compared to $498.9 million for the same period in 2008. Cash America posted net income of $40,518,000 ($1.33 per share) for the first six months of fiscal year 2009 compared to $45,948,000 ($1.53 per share) for the same period in 2008.
Cash America will host a conference call to discuss the second quarter results on Thursday, July 23, at 7:45 AM CDT. A live web cast of the call will be available on the Investor Relations section of the Company’s corporate web site (http://www.cashamerica.com). To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. A replay will be available on the Company’s web site for 90 days following the conference call.
Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid at the close of business on August 19, 2009 to shareholders of record on August 5, 2009.
Outlook for the Third Quarter of 2009 and Related Fiscal Year
Management believes that the opportunities for growth in revenue and earnings will be largely associated with the customer demand for the credit products provided by the Company, which take the form of pawn loans and short-term cash advances, and consumer spending on retail sales of unredeemed collateral. Other elements expected to affect the growth in revenue include the regulatory governance of loan products and the development and growth of new markets for the Company’s online distribution channel for cash advance products, as well as the continued growth of its pawn operations in Mexico. As the Company enters the third quarter of 2009, management anticipates that demand for the Company’s lending products will continue to be strong. Management believes that the revenue challenges facing the cash advance product, including the regulatory changes impacting markets that were profitable in 2008, such as Pennsylvania, Florida, Minnesota and Ohio, will become less of a factor in year over year comparisons in the second half of the year if loan demand increases for the cash advance product. Based on its views and on the preceding factors management expects the third quarter 2009 net income per share to be between 70 and 75 cents per share compared to 63 cents per share in the third quarter of 2008. In addition, management has decided to modify its full year 2009 estimates to a range of between $3.00 and $3.15 per share, compared to $2.70 per share in fiscal 2008.
About the Company
As of June 30, 2009, Cash America International, Inc. had 1,023 total locations offering specialty financial services to consumers, including 647 pawn lending locations (including 15 unconsolidated franchised units), consisting of 501 locations operating in 22 states in the United States under the names Cash America Pawn and SuperPawn, and 146 pawn lending locations, of which the Company is a majority owner, operating in 18 jurisdictions in central and southern Mexico under the name “Prenda Fácil.” In addition, the Company owns 248 cash advance storefront locations operating in six states in the United States under the names Cash America Payday Advance and Cashland, and 123 franchised and five company-owned check cashing centers operating in 16 states in the United States under the name “Mr. Payroll.” Additionally, as of June 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, as well as 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 two other jurisdictions in the United States.
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, 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, 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 | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Consolidated Operations: | ||||||||||||
| Total revenue | $ | 252,381 | $ | 247,979 | $ | 520,473 | $ | 498,913 | ||||
| Net revenue | 180,847 | 181,238 | 366,437 | 360,656 | ||||||||
| Total operating expenses | 148,647 | 145,344 | 290,758 | 280,290 | ||||||||
| Income from operations | $ | 32,200 | $ | 35,894 | $ | 75,679 | $ | 80,366 | ||||
| Income before income taxes | 27,385 | 32,698 | 65,674 | 73,688 | ||||||||
| Net Income | $ | 16,819 | $ | 20,137 | $ | 41,045 | $ | 45,948 | ||||
| Less: Net income attributable to the noncontrolling interest | (212) | - | $ | (527) | $ | - | ||||||
| Net Income Attributable to Cash America International, Inc. | $ | 16,607 | $ | 20,137 | $ | 40,518 | $ | 45,948 | ||||
| Earnings per share: | ||||||||||||
| Net Income attributable to Cash America International, Inc. common stockholders: | ||||||||||||
| Basic | $ | 0.56 | $ | 0.69 | $ | 1.36 | $ | 1.57 | ||||
| Diluted | $ | 0.54 | $ | 0.67 | $ | 1.33 | $ | 1.53 | ||||
| Weighted average shares: | ||||||||||||
| Basic | 29,804 | 29,326 | 29,785 | 29,348 | ||||||||
| Diluted | 30,515 | 30,094 | 30,467 | 30,103 | ||||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||
| (in thousands, except per share data) | |||||||||||||
| June 30, | December 31, | ||||||||||||
| 2009 | 2008 | 2008 | |||||||||||
| (Unaudited) | |||||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 26,323 | $ | 29,963 | $ | 30,005 | |||||||
| Pawn loans | 176,313 | 142,211 | 168,747 | ||||||||||
| Cash advances, net | 89,810 | 85,492 | 83,850 | ||||||||||
| Merchandise held for disposition, net | 102,164 | 96,807 | 109,493 | ||||||||||
| Finance and service charges receivable | 33,314 | 27,009 | 33,063 | ||||||||||
| Income taxes recoverable | - | - | 2,606 | ||||||||||
| Other receivables and prepaid expenses | 17,169 | 14,297 | 15,480 | ||||||||||
| Deferred tax assets | 21,644 | 22,271 | 22,037 | ||||||||||
| Total current assets | 466,737 | 418,050 | 465,281 | ||||||||||
| Property and equipment, net | 187,343 | 172,785 | 185,887 | ||||||||||
| Goodwill | 493,848 | 403,886 | 494,192 | ||||||||||
| Intangible assets, net | 30,454 | 21,423 | 35,428 | ||||||||||
| Other assets | 8,243 | 7,545 | 5,722 | ||||||||||
| Total assets | $ | 1,186,625 | $ | 1,023,689 | $ | 1,186,510 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable and accrued expenses | $ | 66,534 | $ | 62,908 | $ | 79,759 | |||||||
| Accrued supplemental acquisition payment | - | 56,000 | 47,064 | ||||||||||
| Customer deposits | 9,778 | 8,673 | 8,814 | ||||||||||
| Income taxes currently payable | 1,324 | 2,284 | - | ||||||||||
| Current portion of long-term debt | 14,306 | 8,500 | 15,810 | ||||||||||
| Total current liabilities | 91,942 | 138,365 | 151,447 | ||||||||||
| Deferred tax liabilities | 38,763 | 23,421 | 27,575 | ||||||||||
| Noncurrent income tax payable | 4,059 | - | 3,050 | ||||||||||
| Other liabilities | 3,602 | 2,025 | 2,359 | ||||||||||
| Long-term debt | 415,491 | 323,146 | 422,344 | ||||||||||
| Total liabilities | 553,857 | 486,957 | 606,775 | ||||||||||
| Stockholders’ 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 | 168,197 | 162,977 | 160,007 | ||||||||||
| Retained earnings | 478,706 | 407,086 | 440,252 | ||||||||||
| Accumulated other comprehensive loss | 608 | (1 | ) | (3,964 | ) | ||||||||
Treasury shares, at cost (815,842 shares, 1,222,742 shares and 818,772 shares at June 30, 2009 and 2008 at December 31, 2008, respectively | (23,256 | ) | (36,354 | ) | (24,278 | ) | |||||||
| Total Cash America International, Inc. stockholders’ equity | 627,279 | 536,732 | 575,041 | ||||||||||
| Noncontrolling interest | 5,489 | - | 4,694 | ||||||||||
| Total stockholders' equity | 632,768 | 536,732 | 579,735 | ||||||||||
| Total liabilities and stockholders’ equity | $ | 1,186,625 | $ | 1,023,689 | $ | 1,186,510 | |||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||||||
| (Unaudited) | |||||||||||||||||
| Revenue | |||||||||||||||||
| Finance and service charges | $ | 54,280 | $ | 43,390 | $ | 107,239 | $ | 86,811 | |||||||||
| Proceeds from disposition of merchandise | 110,173 | 108,089 | 239,933 | 224,672 | |||||||||||||
| Cash advance fees | 84,602 | 92,849 | 164,910 | 178,309 | |||||||||||||
| Check cashing fees, royalties and other | 3,326 | 3,651 | 8,391 | 9,121 | |||||||||||||
| Total Revenue | 252,381 | 247,979 | 520,473 | 498,913 | |||||||||||||
| Cost of Revenue | |||||||||||||||||
| Disposed merchandise | 71,534 | 66,741 | 154,036 | 138,257 | |||||||||||||
| Net Revenue | 180,847 | 181,238 | 366,437 | 360,656 | |||||||||||||
| Expenses | |||||||||||||||||
| Operations | 86,882 | 80,529 | 172,413 | 161,254 | |||||||||||||
| Cash advance loss provision | 29,178 | 34,733 | 53,952 | 61,867 | |||||||||||||
| Administration | 22,194 | 20,555 | 43,659 | 38,511 | |||||||||||||
| Depreciation and amortization | 10,393 | 9,527 | 20,734 | 18,658 | |||||||||||||
| Total Expenses | 148,647 | 145,344 | 290,758 | 280,290 | |||||||||||||
| Income from Operations | 32,200 | 35,894 | 75,679 | 80,366 | |||||||||||||
| Interest expense | (5,086 | ) | (3,204 | ) | (10,155 | ) | (6,713 | ) | |||||||||
| Interest income | 4 | 76 | 19 | 107 | |||||||||||||
| Foreign currency transaction gain (loss) | 267 | (68 | ) | 131 | (72 | ) | |||||||||||
| Income before Income Taxes | 27,385 | 32,698 | 65,674 | 73,688 | |||||||||||||
| Provision for income taxes | 10,566 | 12,561 | 24,629 | 27,740 | |||||||||||||
| Net Income | 16,819 | 20,137 | 41,045 | 45,948 | |||||||||||||
| Less: Net income attributable to the noncontrolling interest | (212 | ) | - | (527 | ) | - | |||||||||||
| Net Income Attributable to Cash America International, Inc. | $ | 16,607 | $ | 20,137 | $ | 40,518 | $ | 45,948 | |||||||||
| Earnings Per Share: | |||||||||||||||||
| Net Income attributable to Cash America International, Inc. common stockholders: | |||||||||||||||||
| Basic | $ | 0.56 | $ | 0.69 | $ | 1.36 | $ | 1.57 | |||||||||
| Diluted | $ | 0.54 | $ | 0.67 | $ | 1.33 | $ | 1.53 | |||||||||
| Weighted average common shares outstanding: | |||||||||||||||||
| Basic | 29,804 | 29,326 | 29,785 | 29,348 | |||||||||||||
| Diluted | 30,515 | 30,094 | 30,467 | 30,103 | |||||||||||||
| Dividends declared per common share | $ | 0.035 | $ | 0.035 | $ | 0.070 | $ | 0.070 | |||||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||
| FINANCIAL AND OPERATING DATA | ||||||||||
($ in thousands unless otherwise noted) | ||||||||||
| Three Months Ended | Six months ended | |||||||||
| June 30, | June 30, | |||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||
| Location statistics | ||||||||||
| Pawn segment locations in operation – (f) | ||||||||||
| Beginning of period, owned | 613 | 485 | 598 | 485 | ||||||
| Acquired | - | 1 | 1 | 1 | ||||||
| Start-ups | 19 | 1 | 33 | 1 | ||||||
| End of period, owned | 632 | 487 | 632 | 487 | ||||||
| Franchise locations at end of period (a) | 15 | 14 | 15 | 14 | ||||||
| Total pawn lending locations at end of period (a) (f) | 647 | 501 | 647 | 501 | ||||||
| Average number of owned pawn lending locations (a) (f) | 622 | 486 | 613 | 485 | ||||||
| Cash advance segment locations in operation (excludes online lending and card services) – | ||||||||||
| Beginning of period | 248 | 304 | 248 | 304 | ||||||
| Combined or closed | - | (12 | ) | - | (12 | ) | ||||
| End of period | 248 | 292 | 248 | 292 | ||||||
| Average number of cash advance locations | 248 | 300 | 248 | 301 | ||||||
| Check cashing segment locations – | ||||||||||
| Company-owned locations at end of period | 5 | 5 | 5 | 5 | ||||||
| Franchised locations at end of period (a) | 123 | 130 | 123 | 130 | ||||||
| Total check cashing centers in operation at end of period (a) | 128 | 135 | 128 | 135 | ||||||
| Combined total of all locations at end of period (a) | 1,023 | 928 | 1,023 | 928 | ||||||
| Services offered by locations | ||||||||||
| Pawn lending – | ||||||||||
| Pawn lending segment: | ||||||||||
| Domestic | 486 | 487 | 486 | 487 | ||||||
| Foreign (f) | 146 | - | 146 | - | ||||||
| Franchise – domestic (a) | 15 | 14 | 15 | 14 | ||||||
| Combined pawn lending segment (f) | 647 | 501 | 647 | 501 | ||||||
| Cash advance segment – storefront operations | 111 | - | 111 | - | ||||||
| Total locations offering pawn lending (a) (f) | 758 | 501 | 758 | 501 | ||||||
| Cash advances – | ||||||||||
| Cash advance segment – storefront operations | 248 | 292 | 248 | 292 | ||||||
| Pawn lending segment – domestic | 431 | 432 | 431 | 432 | ||||||
| Total locations offering cash advances | 679 | 724 | 679 | 724 | ||||||
| Check cashing – | ||||||||||
| Check cashing segment | ||||||||||
| Company-owned locations | 5 | 5 | 5 | 5 | ||||||
| Franchised locations (a) | 123 | 130 | 123 | 130 | ||||||
| Total check cashing segment (a) | 128 | 135 | 128 | 135 | ||||||
| Cash advance segment – storefront operations | 248 | 292 | 248 | 292 | ||||||
| Pawn lending segment – domestic | 381 | 387 | 381 | 387 | ||||||
| Total locations offering check cashing (a) | 757 | 814 | 757 | 814 | ||||||
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
FINANCIAL AND OPERATING DATA | ||||||||||||||||
($ in thousands unless otherwise noted) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 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 (f) | 1 | - | 1 | - | ||||||||||||
| Market coverage for cash advance segment at end of period | ||||||||||||||||
| States and other jurisdictions in the U.S. | ||||||||||||||||
| Storefront | 6 | 7 | 6 | 7 | ||||||||||||
| Online | 32 | 33 | 32 | 33 | ||||||||||||
| Card services | 52 | - | 52 | - | ||||||||||||
| Foreign countries | ||||||||||||||||
| Online | 2 | 1 | 2 | 1 | ||||||||||||
| Pawn Lending Activities | ||||||||||||||||
| Annualized yield on pawn loans - | ||||||||||||||||
| Pawn lending segment: | ||||||||||||||||
| Domestic | 133.2 | % | 129.3 | % | 133.1 | % | 131.0 | % | ||||||||
| Foreign (f) | 145.3 | % | - | % | 151.1 | % | - | % | ||||||||
| Combined pawn lending segment (f) | 134.6 | % | 129.3 | % | 135.1 | % | 131.0 | % | ||||||||
| Cash advance segment – storefront operations | 114.8 | % | - | % | 104.2 | % | - | % | ||||||||
| Combined annualized yield on pawn loans (f) | 134.5 | % | 129.3 | % | 135.0 | % | 131.0 | % | ||||||||
| Amount of pawn loans written and renewed - | ||||||||||||||||
| Pawn lending segment: | ||||||||||||||||
| Domestic | $ | 159,088 | $ | 149,347 | $ | 295,120 | $ | 281,328 | ||||||||
| Foreign (f) | 19,305 | - | 26,226 | - | ||||||||||||
| Combined pawn lending segment (f) | $ | 178,393 | $ | 149,347 | $ | 321,346 | $ | 281,328 | ||||||||
| Cash advance segment – storefront operations | 1,161 | - | 1,233 | - | ||||||||||||
| Combined amount of pawn loans written and renewed (f) | $ | 179,554 | $ | 149,347 | $ | 322,579 | $ | 281,328 | ||||||||
| Average pawn loan balance outstanding - | ||||||||||||||||
| Pawn lending segment: | ||||||||||||||||
| Domestic | $ | 142,239 | $ | 135,014 | $ | 142,021 | $ | 133,239 | ||||||||
| Foreign (f) | 19,113 | - | 17,871 | - | ||||||||||||
| Combined pawn lending segment (f) | $ | 161,352 | $ | 135,014 | $ | 159,892 | $ | 133,239 | ||||||||
| Cash advance segment – storefront operations | 531 | - | 304 | - | ||||||||||||
| Combined average pawn loan balance outstanding (f) | $ | 161,883 | $ | 135,014 | $ | 160,196 | $ | 133,239 | ||||||||
| Ending pawn loan balance - | ||||||||||||||||
| Pawn lending segment: | ||||||||||||||||
| Domestic | $ | 154,583 | $ | 142,211 | $ | 154,583 | $ | 142,211 | ||||||||
| Foreign (f) | 20,728 | - | 20,728 | - | ||||||||||||
| Combined pawn lending segment (f) | $ | 175,311 | $ | 142,211 | $ | 175,311 | $ | 142,211 | ||||||||
| Cash advance segment – storefront operations | 1,002 | - | 1,002 | - | ||||||||||||
| Combined ending pawn loan balance per location offering pawn loans (f) | $ | 176,313 | $ | 142,211 | $ | 176,313 | $ | 142,211 | ||||||||
| Ending pawn loan balance per location offering pawn loans -- | ||||||||||||||||
| Pawn lending segment : | ||||||||||||||||
| Domestic | $ | 318 | $ | 292 | $ | 318 | $ | 292 | ||||||||
| Foreign (f) | $ | 142 | $ | - | $ | 142 | $ | - | ||||||||
| Combined pawn lending segment (f) | $ | 277 | $ | 292 | $ | 277 | $ | 292 | ||||||||
| Cash advance segment - storefront operations | $ | 9 | $ | - | $ | 9 | $ | - | ||||||||
| Combined ending pawn loan balance per location offering pawn loans (f) | $ | 237 | $ | 292 | $ | 237 | $ | 292 | ||||||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||
| FINANCIAL AND OPERATING DATA | |||||||||||||
($ in thousands unless otherwise noted) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||
| Average pawn loan amount at end of period (not in thousands) - | |||||||||||||
| Pawn lending segment: | |||||||||||||
| Domestic | $ | 120 | $ | 119 | $ | 120 | $ | 119 | |||||
| Foreign (f) | $ | 102 | $ | - | $ | 102 | $ | - | |||||
| Combined pawn lending segment (f) | $ | 117 | $ | 119 | $ | 117 | $ | 119 | |||||
| Cash advance segment – storefront operations | $ | 100 | $ | - | $ | 100 | $ | - | |||||
| Combined average pawn loan amount at end of period (f) | $ | 117 | $ | 119 | $ | 117 | $ | 119 | |||||
| Disposition of merchandise – domestic – | |||||||||||||
| Profit margin on disposition of merchandise | |||||||||||||
| Pawn lending segment – domestic | 35.1 | % | 38.3 | % | 35.8 | % | 38.5 | % | |||||
| Cash advance segment – storefront operations | 34.9 | - | 34.2 | - | |||||||||
| Combined profit margin on disposition of merchandise | 35.1 | % | 38.3 | % | 35.8 | % | 38.5 | % | |||||
| Disposition of merchandise - pawn lending segment – domestic - | |||||||||||||
| Average annualized merchandise turnover | 2.8 | x | 2.8 | x | 3.0 | x | 2.9 | x | |||||
| Average balance of merchandise held for disposition per average | $ | 204 | $ | 194 | $ | 211 | $ | 198 | |||||
| location in operation | |||||||||||||
| Ending balance of merchandise held for disposition per location in | $ | 209 | $ | 199 | $ | 209 | $ | 199 | |||||
| operation | |||||||||||||
| Cash advance activities | |||||||||||||
| Amount of cash advances written -- | |||||||||||||
| Funded by the Company | |||||||||||||
| Cash advance segment: | |||||||||||||
| Storefront | $ | 150,788 | $ | 150,004 | $ | 288,545 | $ | 303,066 | |||||
| Internet lending | 176,082 | 188,595 | 335,546 | 348,516 | |||||||||
| Total cash advance segment | $ | 326,870 | $ | 338,599 | $ | 624,091 | $ | 651,582 | |||||
| Pawn lending segment - domestic | 14,086 | 14,182 | 27,966 | 28,129 | |||||||||
| Combined funded by the Company | $ | 340,956 | $ | 352,781 | $ | 652,057 | $ | 679,711 | |||||
| Funded by third-party lenders (a) (b) (e) | |||||||||||||
| Cash advance segment: | |||||||||||||
| Storefront | $ | 20,499 | $ | 25,113 | $ | 40,613 | $ | 50,677 | |||||
| Internet lending | 116,190 | 115,185 | 222,353 | 213,728 | |||||||||
| Card services (e) | 25,878 | - | 45,665 | - | |||||||||
| Total cash advance segment | $ | 162,567 | $ | 140,298 | $ | 308,631 | $ | 264,405 | |||||
| Pawn lending segment - domestic | 30,368 | 37,779 | 61,132 | 75,775 | |||||||||
| Combined funded by third-party lenders (a) (b) (e) | $ | 192,935 | $ | 178,077 | $ | 369,763 | $ | 340,180 | |||||
| Aggregate amount of cash advances written - (a) (c) | |||||||||||||
| Cash advance segment: | |||||||||||||
| Storefront | $ | 171,287 | $ | 175,117 | $ | 329,158 | $ | 353,743 | |||||
| Internet lending | 292,272 | 303,780 | 557,899 | 562,244 | |||||||||
| Card services (e) | 25,878 | - | 45,665 | - | |||||||||
| Total cash advance segment | $ | 489,437 | $ | 478,897 | $ | 932,722 | $ | 915,987 | |||||
| Pawn lending segment - domestic | 44,454 | 51,961 | 89,098 | 103,904 | |||||||||
Combined aggregate amount of cash advances written(a) (c) | $ | 533,891 | $ | 530,858 | $ | 1,021,820 | $ | 1,019,891 | |||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||
| FINANCIAL AND OPERATING DATA | ||||||||||||
($ in thousands unless otherwise noted) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30, | June 30, | |||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||
| Number of cash advances written (not in thousands) – | ||||||||||||
| Funded by the Company | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | 341,393 | 426,605 | 651,253 | 845,202 | ||||||||
| Internet lending | 431,162 | 441,466 | 824,340 | 830,882 | ||||||||
| Total cash advance segment | 772,555 | 868,071 | 1,475,593 | 1,676,084 | ||||||||
| Pawn lending segment – domestic | 43,289 | 45,595 | 85,124 | 90,741 | ||||||||
| Combined by the Company | 815,844 | 913,666 | 1,560,717 | 1,766,825 | ||||||||
| Funded by third-party lenders (a) (b) (e) | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | 34,494 | 45,347 | 68,472 | 91,056 | ||||||||
| Internet lending | 159,807 | 175,634 | 303,228 | 324,581 | ||||||||
| Card services (e) | 174,541 | - | 299,701 | - | ||||||||
| Total cash advance segment | 368,842 | 220,981 | 671,401 | 415,637 | ||||||||
| Pawn lending segment - domestic | 57,243 | 81,309 | 114,125 | 161,698 | ||||||||
| Combined by third-party lenders (a) (b) (e) | 426,085 | 302,290 | 785,526 | 577,335 | ||||||||
| Aggregate number of cash advances written - (a) (c) | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | 375,887 | 471,952 | 719,725 | 936,258 | ||||||||
| Internet lending | 590,969 | 617,100 | 1,127,568 | 1,155,463 | ||||||||
| Card services (e) | 174,541 | - | 299,701 | - | ||||||||
| Total cash advance segment | 1,141,397 | 1,089,052 | 2,146,994 | 2,091,721 | ||||||||
| Pawn lending segment - domestic | 100,532 | 126,904 | 199,249 | 252,439 | ||||||||
| Combined aggregate number of cash advances written (a) (c) | 1,241,929 | 1,215,956 | 2,346,243 | 2,344,160 | ||||||||
| Cash advance customer balances (gross): | ||||||||||||
| Owned by Company (d) | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | $ | 39,740 | $ | 41,470 | $ | 39,740 | $ | 41,470 | ||||
| Internet lending | 60,855 | 64,207 | 60,855 | 64,207 | ||||||||
| Card services (e) | 5,245 | - | 5,245 | - | ||||||||
| Total cash advance segment | $ | 105,840 | $ | 105,677 | $ | 105,840 | $ | 105,677 | ||||
| Pawn lending segment - domestic | 6,133 | 7,216 | 6,133 | 7,216 | ||||||||
| Combined owned by the Company (d) (e) | $ | 111,973 | $ | 112,893 | $ | 111,973 | $ | 112,893 | ||||
| Owned by third-party lenders (a) (b) | ||||||||||||
| Cash advance segment : | ||||||||||||
| Storefront | $ | 3,912 | $ | 4,368 | $ | 3,912 | $ | 4,368 | ||||
| Internet lending | 23,497 | 21,187 | 23,497 | 21,187 | ||||||||
| Card services (e) | 686 | - | 686 | - | ||||||||
| Total cash advance segment | $ | 28,095 | $ | 25,555 | $ | 28,095 | $ | 25,555 | ||||
| Pawn lending segment - domestic | 6,277 | 7,205 | 6,277 | 7,205 | ||||||||
| Combined owned by third-party lenders (a) (b) | $ | 34,372 | $ | 32,760 | $ | 34,372 | $ | 32,760 | ||||
| Aggregate cash advance customer balances (gross) - (a) (c) | ||||||||||||
| Cash advance segment: | ||||||||||||
| Storefront | $ | 43,652 | $ | 45,838 | $ | 43,652 | $ | 45,838 | ||||
| Internet lending | 84,352 | 85,394 | 84,352 | 85,394 | ||||||||
| Card services (e) | 5,931 | - | 5,931 | - | ||||||||
| Total cash advance segment | $ | 133,935 | $ | 131,232 | $ | 133,935 | $ | 131,232 | ||||
| Pawn lending segment - domestic | 12,410 | 14,421 | 12,410 | 14,421 | ||||||||
| Combined aggregate cash advance customer balances (gross) (a) (c) | $ | 146,345 | $ | 145,653 | $ | 146,345 | $ | 145,653 | ||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||
| FINANCIAL AND OPERATING DATA | ||||||||||||||||
($ in thousands unless otherwise noted) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Average amount per cash advance written (not in thousands) - | ||||||||||||||||
| Funded by the Company | ||||||||||||||||
| Cash advance segment: | ||||||||||||||||
| Storefront | $ | 442 | $ | 352 | $ | 443 | $ | 359 | ||||||||
| Internet lending | $ | 408 | $ | 427 | $ | 407 | $ | 419 | ||||||||
| Total cash advance segment | $ | 423 | $ | 390 | $ | 423 | $ | 389 | ||||||||
| Pawn lending segment - domestic | $ | 325 | $ | 311 | $ | 329 | $ | 310 | ||||||||
| Combined by the Company | $ | 418 | $ | 386 | $ | 418 | $ | 385 | ||||||||
| Funded by third-party lenders (a) (b) | ||||||||||||||||
| Cash advance segment | ||||||||||||||||
| Storefront | $ | 594 | $ | 554 | $ | 593 | $ | 557 | ||||||||
| Internet lending | $ | 727 | $ | 656 | $ | 733 | $ | 658 | ||||||||
| Card services | $ | 148 | $ | - | $ | 152 | $ | - | ||||||||
| Total cash advance segment | $ | 441 | $ | 635 | $ | 460 | $ | 636 | ||||||||
| Pawn lending segment - domestic | $ | 531 | $ | 465 | $ | 536 | $ | 469 | ||||||||
| Combined by third-party lenders (a) (b) | $ | 453 | $ | 589 | $ | 471 | $ | 589 | ||||||||
| Aggregate average amount per cash advance written - (a) (c) | ||||||||||||||||
| Cash advance segment: | ||||||||||||||||
| Storefront | $ | 456 | $ | 371 | $ | 457 | $ | 378 | ||||||||
| Internet lending | $ | 495 | $ | 492 | $ | 495 | $ | 487 | ||||||||
| Card services (e) | $ | 148 | $ | - | $ | 152 | $ | - | ||||||||
| Total cash advance segment | $ | 429 | $ | 440 | $ | 434 | $ | 438 | ||||||||
| Pawn lending segment - domestic | $ | 442 | $ | 409 | $ | 447 | $ | 412 | ||||||||
| Combined aggregate average amount per cash advance written (a) (c) | $ | 430 | $ | 437 | $ | 436 | $ | 435 | ||||||||
| Check cashing | ||||||||||||||||
| Face amount of checks cashed - | ||||||||||||||||
| Company-owned locations: | ||||||||||||||||
| Check cashing segment | $ | 5,470 | $ | 7,542 | $ | 12,173 | $ | 15,216 | ||||||||
| Cash advance segment | 29,562 | 45,402 | 91,701 | 111,191 | ||||||||||||
| Pawn lending segment | 5,311 | 8,405 | 13,388 | 20,261 | ||||||||||||
| Combined company-owned locations | 40,343 | 61,349 | 117,262 | 146,668 | ||||||||||||
| Franchised locations - check cashing segment (a) | 237,459 | 310,073 | 561,357 | 672,209 | ||||||||||||
| Combined face amount of checks cashed (a) | $ | 277,802 | $ | 371,422 | $ | 678,619 | $ | 818,877 | ||||||||
| Fees collected from customers - | ||||||||||||||||
| Company-owned locations: | ||||||||||||||||
| Check cashing segment | $ | 71 | $ | 102 | $ | 183 | $ | 224 | ||||||||
| Cash advance segment | 734 | 1,099 | 2,326 | 3,115 | ||||||||||||
| Pawn lending segment | 90 | 146 | 256 | 383 | ||||||||||||
| Combined company-owned locations | 895 | 1,347 | 2,765 | 3,722 | ||||||||||||
| Franchised locations - check cashing segment (a) | 3,322 | 4,297 | 8,138 | 9,667 | ||||||||||||
| Combined fees collected from customers (a) | $ | 4,217 | $ | 5,644 | $ | 10,903 | $ | 13,389 | ||||||||
| Fees as a percentage of checks cashed - | ||||||||||||||||
| Company-owned locations: | ||||||||||||||||
| Check cashing segment | 1.3 | % | 1.4 | % | 1.5 | % | 1.5 | % | ||||||||
| Cash advance segment | 2.5 | 2.4 | 2.5 | 2.8 | ||||||||||||
| Pawn lending segment | 1.7 | 1.7 | 1.9 | 1.9 | ||||||||||||
| Combined company-owned locations | 2.2 | 2.2 | 2.4 | 2.5 | ||||||||||||
| 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 unless otherwise noted) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||
| Average check cashed (not in thousands) – | |||||||||||||
| Company-owned locations: | |||||||||||||
| Check cashing segment | $ | 400 | $ | 400 | $ | 432 | $ | 408 | |||||
| Cash advance segment | 486 | $ | 463 | 608 | $ | 538 | |||||||
| Pawn lending segment | 369 | $ | 439 | 447 | $ | 501 | |||||||
| Combined company-owned locations | 454 | $ | 451 | 561 | $ | 516 | |||||||
Franchised locations – check cashing segment(a) | 411 | $ | 440 | 479 | $ | 478 | |||||||
Combined average check cashed(a) | $ | 417 | $ | 439 | $ | 481 | $ | 477 | |||||
(a) | Non-generally accepted accounting principles accepted in the United States (“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 GAAP amount and can be reconciled to its most comparable GAAP amount through the presentation of the financial information above. | |
| (b) | Cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders. | |
(c) | Includes (i) cash advances written by the Company, (ii) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, and (iii) cash advances described in footnote (e) below. | |
| (d) | Amounts recorded in the Company’s consolidated financial statements. | |
(e) | Cash advances issued by a third-party lender utilizing the Company as a processor to process these cash advances under a line of credit offered on certain stored-value and payroll cards issued by such lender. The Company acquires a participation interest in the cash advance receivables generated through this program. Cash advance fees associated with the Company’s card services activities include revenue from the Company’s participation interest in the 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). | |
| (f) | Includes Prenda Fácil locations, in which the Company owns an 80% interest. | |
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
| CONSOLIDATED CASH ADVANCES OUTSTANDING AND RELATED ALLOWANCE FOR LOSSES | ||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||
| June 30, | ||||||||||||||||||||||
| 2009 | 2008 | |||||||||||||||||||||
| Funded by the Company (a) | ||||||||||||||||||||||
| Active cash advances and fees receivable | $ | 76,404 | $ | 71,590 | ||||||||||||||||||
| Cash advances and fees in collection | 19,174 | 29,184 | ||||||||||||||||||||
| Total funded by the Company (a) | 95,578 | 100,774 | ||||||||||||||||||||
| Funded by third-party lenders (b) (c) | ||||||||||||||||||||||
| Active cash advances and fees receivable | 38,131 | 32,760 | ||||||||||||||||||||
| Cash advances and fees in collection | 12,636 | 12,119 | ||||||||||||||||||||
| Total funded by third-party lenders (b) (c) | 50,767 | 44,879 | ||||||||||||||||||||
| Combined gross portfolio of cash advances and fees receivable (b) (d) | 146,345 | 145,653 | ||||||||||||||||||||
| Less: Elimination of cash advances owned by third-party lenders | 34,372 | 32,760 | ||||||||||||||||||||
| Company-owned cash advances and fees receivable, gross | 111,973 | 112,893 | ||||||||||||||||||||
| Less: Allowance for losses | 22,163 | 27,401 | ||||||||||||||||||||
| Cash advances and fees receivable, net | $ | 89,810 | $ | 85,492 | ||||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||||||||
| June 30, | June 30, | |||||||||||||||||||||
| 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
Allowance for losses for Company-owned cash advances | ||||||||||||||||||||||
| Balance at beginning of period | $ | 17,278 | $ | 20,815 | $ | 21,495 | $ | 25,676 | ||||||||||||||
| Cash advance loss provision | 28,641 | 34,412 | 54,028 | 61,386 | ||||||||||||||||||
| Charge-offs | (28,215 | ) | (34,859 | ) | (63,141 | ) | (75,681 | ) | ||||||||||||||
| Recoveries | 4,459 | 7,033 | 9,781 | 16,020 | ||||||||||||||||||
| Balance at end of period | $ | 22,163 | $ | 27,401 | $ | 22,163 | $ | 27,401 | ||||||||||||||
| Accrual for third-party lender-owned cash advances | ||||||||||||||||||||||
| Balance at beginning of period | $ | 1,522 | $ | 1,988 | $ | 2,135 | $ | 1,828 | ||||||||||||||
| (Decrease) increase in loss provision | 537 | 321 | (76 | ) | 481 | |||||||||||||||||
| Balance at end of period | $ | 2,059 | $ | 2,309 | $ | 2,059 | $ | 2,309 | ||||||||||||||
| Combined statistics (d) | ||||||||||||||||||||||
| Combined cash advance loss provision | $ | 29,178 | $ | 34,733 | $ | 53,952 | $ | 61,867 | ||||||||||||||
| Charge-offs (net of recoveries) | 23,756 | 27,826 | 53,360 | 59,661 | ||||||||||||||||||
Combined cash advance loss provision as a % of combined cash advances written (b) | 5.5 | % | 6.5 | % | 5.3 | % | 6.1 | % | ||||||||||||||
Charge-offs (net of recoveries) as a % of combined cash advances written (b) | 4.4 | % | 5.2 | % | 5.2 | % | 5.8 | % | ||||||||||||||
Combined allowance for losses and accrued third-party lender losses as a % of combined gross portfolio (b) | 16.6 | % | 20.4 | % | 16.6 | % | 20.4 | % | ||||||||||||||
| (a) | Cash advances written by the Company for its own account in pawn locations, 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. Each 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 arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn locations, cash advance locations and through the internet distribution channel. | |
| (d) | Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn and cash advance locations and through the Company’s internet distribution channel. |
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||
| INCOME FROM OPERATIONS BY OPERATING SEGMENT | ||||||||||||
| THREE MONTHS ENDED JUNE 30, 2009 AND 2008 | ||||||||||||
(in thousands) | ||||||||||||
| Pawn | Cash | Check | ||||||||||
Lending (1) | Advance (2) | Cashing | Consolidated | |||||||||
Three Months Ended June 30, 2009 | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 54,128 | $ | 152 | $ | - | $ | 54,280 | ||||
| Proceeds from disposition of merchandise | 107,857 | 2,316 | - | 110,173 | ||||||||
| Cash advance fees | 7,229 | 77,373 | - | 84,602 | ||||||||
| Check cashing fees, royalties and other | 917 | 1,755 | 654 | 3,326 | ||||||||
| Total revenue | 170,131 | 81,596 | 654 | 252,381 | ||||||||
| Cost of revenue – disposed merchandise | 70,026 | 1,508 | - | 71,534 | ||||||||
| Net revenue | 100,105 | 80,088 | 654 | 180,847 | ||||||||
| Expenses | ||||||||||||
| Operations | 58,089 | 28,514 | 279 | 86,882 | ||||||||
| Cash advance loss provision | 1,494 | 27,684 | - | 29,178 | ||||||||
| Administration | 10,963 | 10,984 | 247 | 22,194 | ||||||||
| Depreciation and amortization | 7,109 | 3,221 | 63 | 10,393 | ||||||||
| Total expenses | 77,655 | 70,403 | 589 | 148,647 | ||||||||
| Income from operations | $ | 22,450 | $ | 9,685 | $ | 65 | $ | 32,200 | ||||
As of June 30, 2009 | ||||||||||||
| Total assets | $ | 746,926 | $ | 433,242 | $ | 6,457 | $ | 1,186,625 | ||||
| Goodwill | $ | 209,283 | $ | 279,255 | $ | 5,310 | $ | 493,848 | ||||
| Pawn | Cash | |||||||||||
Lending (1) | Advance (2) | Check Cashing | Consolidated | |||||||||
Three Months Ended June 30, 2008 | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 43,390 | $ | - | $ | - | $ | 43,390 | ||||
| Proceeds from disposition of merchandise | 108,089 | - | - | 108,089 | ||||||||
| Cash advance fees | 8,645 | 84,204 | - | 92,849 | ||||||||
| Check cashing fees, royalties and other | 985 | 1,828 | 838 | 3,651 | ||||||||
| Total revenue | 161,109 | 86,032 | 838 | 247,979 | ||||||||
| Cost of revenue – disposed merchandise | 66,741 | - | - | 66,741 | ||||||||
| Net revenue | 94,368 | 86,032 | 838 | 181,238 | ||||||||
| Expenses | ||||||||||||
| Operations | 52,493 | 27,727 | 309 | 80,529 | ||||||||
| Cash advance loss provision | 2,677 | 32,056 | - | 34,733 | ||||||||
| Administration | 10,882 | 9,338 | 335 | 20,555 | ||||||||
| Depreciation and amortization | 5,939 | 3,527 | 61 | 9,527 | ||||||||
| Total expenses | 71,991 | 72,648 | 705 | 145,344 | ||||||||
| Income from operations | $ | 22,377 | $ | 13,384 | $ | 133 | $ | 35,894 | ||||
As of June 30, 2008 | ||||||||||||
| Total assets | $ | 610,568 | $ | 406,255 | $ | 6,866 | $ | 1,023,689 | ||||
| Goodwill | $ | 144,003 | $ | 254,573 | $ | 5,310 | $ | 403,886 | ||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||
| INCOME FROM OPERATIONS BY OPERATING SEGMENT | ||||||||||||
| SIX MONTHS ENDED JUNE 30, 2009 AND 2008 | ||||||||||||
(in thousands) | ||||||||||||
| Pawn | Cash | Check | ||||||||||
Lending (1) | Advance (2) | Cashing | Consolidated | |||||||||
Six Months Ended June 30, 2009 | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 107,082 | $ | 157 | $ | - | $ | 107,239 | ||||
| Proceeds from disposition of merchandise | 235,859 | 4,074 | - | 239,933 | ||||||||
| Cash advance fees | 14,807 | 150,103 | - | 164,910 | ||||||||
| Check cashing fees, royalties and other | 1,953 | 4,852 | 1,586 | 8,391 | ||||||||
| Total revenue | 359,701 | 159,186 | 1,586 | 520,473 | ||||||||
| Cost of revenue – disposed merchandise | 151,355 | 2,681 | - | 154,036 | ||||||||
| Net revenue | 208,346 | 156,505 | 1,586 | 366,437 | ||||||||
| Expenses | ||||||||||||
| Operations | 115,685 | 56,114 | 614 | 172,413 | ||||||||
| Cash advance loss provision | 2,716 | 51,236 | - | 53,952 | ||||||||
| Administration | 22,713 | 20,457 | 489 | 43,659 | ||||||||
| Depreciation and amortization | 14,206 | 6,382 | 146 | 20,734 | ||||||||
| Total expenses | 155,320 | 134,189 | 1,249 | 290,758 | ||||||||
| Income from operations | $ | 53,026 | $ | 22,316 | $ | 337 | $ | 75,679 | ||||
| Pawn | Cash | Check | ||||||||||
Lending (1) | Advance (2) | Cashing | Consolidated | |||||||||
Six Months Ended June 30, 2008 | ||||||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 86,811 | $ | - | $ | - | $ | 86,811 | ||||
| Proceeds from disposition of merchandise | 224,672 | - | - | 224,672 | ||||||||
| Cash advance fees | 17,930 | 160,379 | - | 178,309 | ||||||||
| Check cashing fees, royalties and other | 1,998 | 5,265 | 1,858 | 9,121 | ||||||||
| Total revenue | 331,411 | 165,644 | 1,858 | 498,913 | ||||||||
| Cost of revenue – disposed merchandise | 138,257 | - | - | 138,257 | ||||||||
| Net revenue | 193,154 | 165,644 | 1,858 | 360,656 | ||||||||
| Expenses | ||||||||||||
| Operations | 106,404 | 54,158 | 692 | 161,254 | ||||||||
| Cash advance loss provision | 4,942 | 56,925 | - | 61,867 | ||||||||
| Administration | 21,554 | 16,409 | 548 | 38,511 | ||||||||
| Depreciation and amortization | 11,530 | 7,003 | 125 | 18,658 | ||||||||
| Total expenses | 144,430 | 134,495 | 1,365 | 280,290 | ||||||||
| Income from operations | $ | 48,724 | $ | 31,149 | $ | 493 | $ | 80,366 | ||||
(1) | The Pawn Lending segment is composed of the Company’s domestic pawn lending operations and its foreign pawn lending operations in Mexico operating under the name “Prenda Fácil”. The following tables summarize the results from each channel’s contributions to the Pawn Lending segment for the three and six months ended June 30, 2009 and 2008 (the average exchange rate of MXP to USD was 13.308 and 13.926 for the three and six month periods): | |
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||
| INCOME FROM OPERATIONS BY OPERATING SEGMENT | |||||||||
| THREE MONTHS ENDED JUNE 30, 2009 AND 2008 | |||||||||
(in thousands) | |||||||||
| Total Pawn | |||||||||
| Domestic | Foreign | Lending | |||||||
Three Months Ended June 30, 2009 | |||||||||
| Revenue | |||||||||
| Finance and service charges | $ | 47,221 | $ | 6,907 | $ | 54,128 | |||
| Proceeds from disposition of merchandise | 107,857 | - | 107,857 | ||||||
| Cash advance fees | 7,229 | - | 7,229 | ||||||
| Check cashing fees, royalties and other | 852 | 65 | 917 | ||||||
| Total revenue | 163,159 | 6,972 | 170,131 | ||||||
| Cost of revenue – disposed merchandise | 70,026 | - | 70,026 | ||||||
| Net revenue | 93,133 | 6,972 | 100,105 | ||||||
| Expenses | |||||||||
| Operations | 54,962 | 3,127 | 58,089 | ||||||
| Cash advance loss provision | 1,494 | - | 1,494 | ||||||
| Administration | 9,389 | 1,574 | 10,963 | ||||||
| Depreciation and amortization | 6,206 | 903 | 7,109 | ||||||
| Total expenses | 72,051 | 5,604 | 77,655 | ||||||
| Income from operations | $ | 21,082 | $ | 1,368 | $ | 22,450 | |||
| Total Pawn | |||||||||
| Domestic | Foreign | Lending | |||||||
Three Months Ended June 30, 2008 | |||||||||
| Revenue | |||||||||
| Finance and service charges | $ | 43,390 | $ | - | $ | 43,390 | |||
| Proceeds from disposition of merchandise | 108,089 | - | 108,089 | ||||||
| Cash advance fees | 8,645 | - | 8,645 | ||||||
| Check cashing fees, royalties and other | 985 | - | 985 | ||||||
| Total revenue | 161,109 | - | 161,109 | ||||||
| Cost of revenue – disposed merchandise | 66,741 | - | 66,741 | ||||||
| Net revenue | 94,368 | - | 94,368 | ||||||
| Expenses | |||||||||
| Operations | 52,493 | - | 52,493 | ||||||
| Cash advance loss provision | 2,677 | - | 2,677 | ||||||
| Administration | 10,882 | - | 10,882 | ||||||
| Depreciation and amortization | 5,939 | - | 5,939 | ||||||
| Total expenses | 71,991 | - | 71,991 | ||||||
| Income from operations | $ | 22,377 | $ | - | $ | 22,377 | |||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||
| INCOME FROM OPERATIONS BY OPERATING SEGMENT | |||||||||
| SIX MONTHS ENDED JUNE 30, 2009 AND 2008 | |||||||||
(in thousands) | |||||||||
| Total Pawn | |||||||||
| Domestic | Foreign | Lending | |||||||
Six Months Ended June 30, 2009 | |||||||||
| Revenue | |||||||||
| Finance and service charges | $ | 93,712 | $ | 13,370 | $ | 107,082 | |||
| Proceeds from disposition of merchandise | 235,859 | - | 235,859 | ||||||
| Cash advance fees | 14,807 | - | 14,807 | ||||||
| Check cashing fees, royalties and other | 1,819 | 134 | 1,953 | ||||||
| Total revenue | 346,197 | 13,504 | 359,701 | ||||||
| Cost of revenue – disposed merchandise | 151,355 | - | 151,355 | ||||||
| Net revenue | 194,842 | 13,504 | 208,346 | ||||||
| Expenses | |||||||||
| Operations | 110,147 | 5,538 | 115,685 | ||||||
| Cash advance loss provision | 2,716 | - | 2,716 | ||||||
| Administration | 19,659 | 3,054 | 22,713 | ||||||
| Depreciation and amortization | 12,475 | 1,731 | 14,206 | ||||||
| Total expenses | 144,997 | 10,323 | 155,320 | ||||||
| Income from operations | $ | 49,845 | $ | 3,181 | $ | 53,026 | |||
| Total Pawn | |||||||||
| Domestic | Foreign | Lending | |||||||
Six Months Ended June 30, 2008 | |||||||||
| Revenue | |||||||||
| Finance and service charges | $ | 86,811 | $ | - | $ | 86,811 | |||
| Proceeds from disposition of merchandise | 224,672 | - | 224,672 | ||||||
| Cash advance fees | 17,930 | - | 17,930 | ||||||
| Check cashing fees, royalties and other | 1,998 | - | 1,998 | ||||||
| Total revenue | 331,411 | - | 331,411 | ||||||
| Cost of revenue – disposed merchandise | 138,257 | - | 138,257 | ||||||
| Net revenue | 193,154 | - | 193,154 | ||||||
| Expenses | |||||||||
| Operations | 106,404 | - | 106,404 | ||||||
| Cash advance loss provision | 4,942 | - | 4,942 | ||||||
| Administration | 21,554 | - | 21,554 | ||||||
| Depreciation and amortization | 11,530 | - | 11,530 | ||||||
| Total expenses | 144,430 | - | 144,430 | ||||||
| Income from operations | $ | 48,724 | $ | - | $ | 48,724 | |||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||
| INCOME FROM OPERATIONS BY OPERATING SEGMENT | ||||||||||||
| THREE MONTHS ENDED JUNE 30, 2009 AND 2008 | ||||||||||||
(in thousands) | ||||||||||||
(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 tables summarize the results from each channel’s contributions to the Cash Advance segment for the three and six months ended June 30, 2009 and 2008: | ||||||||||||
| Internet | Card | Total Cash | ||||||||||
| Three Months Ended June 30, 2009 | Storefront | Lending | Services | Advance | ||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 152 | $ | - | $ | - | $ | 152 | ||||
| Proceeds from disposition of merchandise | 2,316 | - | - | 2,316 | ||||||||
| Cash advance fees | 20,101 | 54,854 | 2,418 | 77,373 | ||||||||
| Check cashing fees, royalties and other | 1,365 | 388 | 2 | 1,755 | ||||||||
| Total revenue | 23,934 | 55,242 | 2,420 | 81,596 | ||||||||
| Cost of revenue – disposed merchandise | 1,508 | - | - | 1,508 | ||||||||
| Net revenue | 22,426 | 55,242 | 2,420 | 80,088 | ||||||||
| Expenses | ||||||||||||
| Operations | 14,830 | 12,893 | 791 | 28,514 | ||||||||
| Cash advance loss provision | 3,064 | 23,519 | 1,101 | 27,684 | ||||||||
| Administration | 2,511 | 8,283 | 190 | 10,984 | ||||||||
| Depreciation and amortization | 1,352 | 1,735 | 134 | 3,221 | ||||||||
| Total expenses | 21,757 | 46,430 | 2,216 | 70,403 | ||||||||
| Income from operations | $ | 669 | $ | 8,812 | $ | 204 | $ | 9,685 | ||||
| Internet | Card | Total Cash | ||||||||||
| Three Months Ended June 30, 2008 | Storefront | Lending | Services | Advance | ||||||||
| Revenue | ||||||||||||
| Cash advance fees | $ | 27,427 | $ | 56,777 | $ | - | $ | 84,204 | ||||
| Check cashing fees, royalties and other | 1,824 | 4 | - | 1,828 | ||||||||
| Total revenue | 29,251 | 56,781 | - | 86,032 | ||||||||
| Expenses | ||||||||||||
| Operations | 16,993 | 10,734 | - | 27,727 | ||||||||
| Cash advance loss provision | 6,664 | 25,392 | - | 32,056 | ||||||||
| Administration | 2,939 | 6,399 | - | 9,338 | ||||||||
| Depreciation and amortization | 2,380 | 1,147 | - | 3,527 | ||||||||
| Total expenses | 28,976 | 43,672 | - | 72,648 | ||||||||
| Income from operations | $ | 275 | $ | 13,109 | $ | - | $ | 13,384 | ||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||
| INCOME FROM OPERATIONS BY OPERATING SEGMENT | ||||||||||||
| SIX MONTHS ENDED JUNE 30, 2009 AND 2008 | ||||||||||||
(in thousands) | ||||||||||||
| Internet | Card | Total Cash | ||||||||||
| Six Months Ended June 30, 2009 | Storefront | Lending | Services | Advance | ||||||||
| Revenue | ||||||||||||
| Finance and service charges | $ | 157 | $ | - | $ | - | $ | 157 | ||||
| Proceeds from disposition of merchandise | 4,074 | - | - | 4,074 | ||||||||
| Cash advance fees | 39,235 | 106,610 | 4,258 | 150,103 | ||||||||
| Check cashing fees, royalties and other | 4,252 | 596 | 4 | 4,852 | ||||||||
| Total revenue | 47,718 | 107,206 | 4,262 | 159,186 | ||||||||
| Cost of revenue – disposed merchandise | 2,681 | - | - | 2,681 | ||||||||
| Net revenue | 45,037 | 107,206 | 4,262 | 156,505 | ||||||||
| Expenses | ||||||||||||
| Operations | 30,198 | 24,194 | 1,722 | 56,114 | ||||||||
| Cash advance loss provision | 5,726 | 43,671 | 1,839 | 51,236 | ||||||||
| Administration | 4,630 | 15,540 | 287 | 20,457 | ||||||||
| Depreciation and amortization | 2,787 | 3,345 | 250 | 6,382 | ||||||||
| Total expenses | 43,341 | 86,750 | 4,098 | 134,189 | ||||||||
| Income from operations | $ | 1,696 | $ | 20,456 | $ | 164 | $ | 22,316 | ||||
| Internet | Card | Total Cash | ||||||||||
| Six Months Ended June 30, 2008 | Storefront | Lending | Services | Advance | ||||||||
| Revenue | ||||||||||||
| Cash advance fees | $ | 56,120 | $ | 104,259 | $ | - | $ | 160,379 | ||||
| Check cashing fees, royalties and other | 5,261 | 4 | - | 5,265 | ||||||||
| Total revenue | 61,381 | 104,263 | - | 165,644 | ||||||||
| Expenses | ||||||||||||
| Operations | 33,874 | 20,284 | - | 54,158 | ||||||||
| Cash advance loss provision | 11,010 | 45,915 | - | 56,925 | ||||||||
| Administration | 5,341 | 11,068 | - | 16,409 | ||||||||
| Depreciation and amortization | 4,805 | 2,198 | - | 7,003 | ||||||||
| Total expenses | 55,030 | 79,465 | - | 134,495 | ||||||||
| Income from operations | $ | 6,351 | $ | 24,798 | $ | - | $ | 31,149 | ||||
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | ||||||||||||
| INVENTORY AND GROSS PROFIT OPERATING DATA | ||||||||||||
| THREE MONTHS ENDED JUNE 30, 2009 AND 2008 | ||||||||||||
The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.7 million and $1.9 million, respectively, at June 30, 2009 and 2008 (dollars in thousands). | ||||||||||||
| 2009 | 2008 | |||||||||||
| Amount | % | Amount | % | |||||||||
| Merchandise held for 1 year or less – | ||||||||||||
| Jewelry | $ | 66,882 | 65.0 | % | $ | 64,917 | 65.8 | % | ||||
| Other merchandise | 27,948 | 27.2 | 25,539 | 25.8 | ||||||||
| Total merchandise held for 1 year or less | 94,830 | 92.2 | 90,456 | 91.6 | ||||||||
| Merchandise held for more than 1 year – | ||||||||||||
| Jewelry | 5,080 | 4.9 | 5,232 | 5.3 | ||||||||
| Other merchandise | 2,954 | 2.9 | 3,019 | 3.1 | ||||||||
| Total merchandise held for more than 1 year | 8,034 | 7.8 | 8,251 | 8.4 | ||||||||
| Total merchandise held for disposition | $ | 102,864 | 100.0 | % | $ | 98,707 | 100.0 | % | ||||
Non-GAAP Disclosure
In addition to the financial information prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), the Company provides historical non GAAP financial information. Each non-GAAP financial measure included in the Company’s consolidated financial statements has been indicated by footnote. Each non-GAAP financial measure is provided immediately following its most comparable GAAP amount.
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 our business that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our 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