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Cash America Announces Third Quarter Results and Dividend Declared


Attachment:

  Cash America Announces Third Quarter Results and Dividend Declared

Business Wire

FORT WORTH, Texas -- October 24, 2013

Cash America International, Inc. (NYSE: CSH) announced today that reported net
income attributable to the Company for the third quarter ended September 30,
2013 was $46,186,000 ($1.52 per share) compared to the third quarter of 2012
net income of $11,703,000 (37 cents per share). Both the current period third
quarter financial results and the prior year third quarter financial results
include significant unusual items. In the third quarter of 2013, the Company
recognized a tax benefit of $33.2 million ($1.09 per share) related to the
reorganization of its Mexico-based pawn operations, which was completed in the
first quarter of 2013. In addition, the Company incurred an $18 million
pre-tax expense (37 cents per share after taxes) associated with a negotiated
settlement of a class-action lawsuit. These two items combined to create a net
benefit to after tax income of $21.9 million (72 cents per share) for the
period ended September 30, 2013. The third quarter of 2012 included unusual
items of $18.5 million in after-tax costs (59 cents per share) associated with
the Company’s reorganization of its Mexico-based pawn operations and $1.9
million after taxes (6 cents per share) related to the write-off of deferred
costs and transition expenses associated with the withdrawal of the proposed
initial public offering of its wholly-owned subsidiary, Enova International,
Inc., during that period. These two items combined to create a total expense
after taxes of $20.4 million (65 cents per share) for the period ended
September 30, 2012.

Excluding the impact of the 2013 unusual items mentioned above, third quarter
2013 adjusted earnings, a non-GAAP measure, would have been $24.3 million (80
cents per share), which is in line with management’s publicly released
earnings per share guidance of between 75 cents per share and 85 cents per
share as reported in the Company’s press release dated July 25, 2013.
Excluding the impact of the 2012 unusual expenses mentioned above, third
quarter 2012 adjusted earnings, a non-GAAP measure, would have been $32.1
million ($1.02 per share).

Consolidated total revenue during the third quarter of 2013 was $437.8 million
compared to $439.7 million during the same period in 2012. The Company’s
E-Commerce segment reported a 14% increase in total revenue, which reached
$198.4 million for the three months ended September 30, 2013. Commenting on
the results for the third quarter, Daniel R. Feehan, President and Chief
Executive Officer said, “The growth in our consumer loan products during the
third quarter provided revenue growth to our E-Commerce business to compensate
for the challenges in our retail services business, which continued to
experience soft growth in pawn loans and lower levels of profit from the
disposition of merchandise.”

For the nine-month period ended September 30, 2013, the Company reported net
income of $115,244,000 ($3.73 per share) compared to $82,990,000 ($2.62 per
share) for the same period in 2012. Excluding the unusual items discussed
above, adjusted net earnings, a non-GAAP measure, would have been $93.4
million ($3.02 per share) for the nine-month period ended September 30, 2013.
This compares to adjusted net earnings, a non-GAAP measure, of $103.9 million
($3.28 per share) for the nine-month period ended September 30, 2012, when
adding back the unusual items discussed above for the 2012 period. Total
revenue was $1.3 billion for both the nine-month periods ended September 30,
2013 and 2012.

Cash America will host a conference call to discuss the third quarter results
on Thursday, October 24, at 7:00 AM CDT. A live webcast of the call will be
available on the Investor Relations section of the Company’s corporate website
(http://www.cashamerica.com). To listen to the live call, please go to the
website at least fifteen minutes early to register, download, and install any
necessary audio software. A replay will be available on the Company’s website
following the 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 November 20, 2013 to shareholders of record on November
6, 2013.

Outlook for the Fourth Quarter of 2013 and 2014 Fiscal Year

Management believes that the opportunities for growth in revenue and earnings
will be largely associated with customer demand for the credit products
provided by the Company, which take the form of pawn loans and consumer loans
and the disposition of unredeemed collateral by way of consumer spending on
retail sales and the commercial sale of refined gold and diamonds. The fourth
quarter, during the seasonally important holiday selling season, represents an
important period of retail sales for the Company, and results will be affected
by consumer sentiments during the period. There are various other elements
that could affect the growth in revenue, such as the regulation of consumer
loan products, the development and growth of additional markets for the
Company’s e-commerce segment for consumer lending products, and the
development and growth of the Company’s Mexico-based pawn operations. As the
Company enters the fourth quarter of 2013, management anticipates that demand
for the Company’s consumer loan products will continue on a similar pace to
the one it has experienced during the first nine months of 2013, with a
continued heavier weighting to the consumer loan portfolio and longer term
installment and line of credit products. Demand for the Company’s pawn lending
products continued to prove challenging in the second and third quarters of
2013, and management expects growth in the Company’s pawn lending business,
but its expectations for the balance of 2013 and into 2014 remain below
historical growth rates in the pawn lending business.

Based on management’s views and on the preceding factors, management expects
the fourth quarter 2013 net income per share to be between 95 cents and $1.05
per share compared to $1.29 per share in the fourth quarter of 2012, which
does not include the unusual costs and other charges incurred in the fourth
quarter of 2012 associated with the Company’s reorganization of its
Mexico-based pawn operations of $7.0 million after taxes (23 cents per share)
and the after-tax impact of the Company’s voluntary refund to certain Ohio
customers of $8.4 million (27 cents per share) in the period. The combined
amount of the Mexico charges and the refund expense amounted to $15.4 million
after taxes (50 cents per share) in the fourth quarter of 2012.

Based on the Company’s results through the first nine months of 2013,
management expects its fiscal year 2013 earnings per share to be in a range of
between $4.68 and $4.78 per share ($3.96 and $4.06 per share on a non-GAAP
adjusted basis, adjusted for the third quarter unusual items discussed above
of 72 cents per share) compared to $3.42 per share ($4.57 per share on a
non-GAAP adjusted basis when adding back the unusual items for the full year
in 2012 of 81 cents per share related to Mexico reorganization charges, 27
cents per share related to the Ohio refund expense and 7 cents per share
related to expenses associated with the withdrawal of the proposed initial
public offering of Enova International, Inc.) for the twelve-month period of
2012.

In addition, management is initiating its expectations for fiscal year 2014.
Based on its current views of the coming year, management establishes its
initial anticipated range of earnings per share of between $4.20 to $4.40 for
fiscal 2014.

About the Company

As of September 30, 2013, Cash America International, Inc. operated 995 total
locations offering specialty financial services to consumers, which included
the following:

  * 860 lending locations in 22 states in the United States primarily under
    the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance,”
    and “Cashland;”
  * 47 pawn lending locations in central and southern Mexico under the name
    “Cash America casa de empeño;” and
  * 88 check cashing centers (all of which are unconsolidated franchised check
    cashing centers) operating in 13 states in the United States under the
    name “Mr. Payroll.”

Additionally, as of September 30, 2013, the Company offered consumer loans
over the Internet to customers:

  * in 32 states in the United States at http://www.cashnetusa.com and
    http://www.netcredit.com;
  * in the United Kingdom at http://www.quickquid.co.uk, and
    http://www.poundstopocket.co.uk;
  * in Australia at http://www.dollarsdirect.com.au; and
  * in Canada at http://www.dollarsdirect.ca.

For additional information regarding the Company and the services it provides,
visit the Company’s websites located at:

http://www.cashamerica.com     http://www.poundstopocket.co.uk
http://www.enova.com           http://www.dollarsdirect.com.au
http://www.cashnetusa.com      http://www.dollarsdirect.ca
http://www.netcredit.com       http://www.goldpromise.com
http://www.cashlandloans.com   http://www.mrpayroll.com
http://www.quickquid.co.uk

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995

This release contains forward-looking statements about the business, financial
condition, operations and prospects of 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: the effect of or changes in domestic and foreign pawn, consumer
credit, tax and other laws and governmental rules and regulations applicable
to the Company's business or changes in the interpretation or enforcement
thereof; the regulatory and examination authority of the Consumer Financial
Protection Bureau in the U.S. and the Financial Conduct Authority in the UK;
public perception of the Company’s business, including its consumer loan
business and its business practices; changes in the political, regulatory or
economic environment in foreign countries where the Company operates or in the
future may operate; fluctuations, including a sustained decrease, in the price
of gold or deterioration in economic conditions; the effect of any current or
future litigation proceedings or any judicial decisions or rule-making that
affect the Company, its products or its arbitration agreements; the actions of
third parties who provide, acquire or offer products and services to, from or
for the Company; changes in demand for the Company’s services, the Company’s
ability to attract and retain qualified executive officers; a prolonged
interruption in the Company’s operations of its facilities, systems and
business functions, including its information technology and other business
systems; the ability of the Company to open new locations in accordance with
its plans or to successfully integrate newly acquired businesses into the
Company’s operations; changes in competition; interest rate and foreign
currency exchange rate fluctuations; changes in the capital markets; changes
in the Company’s ability to satisfy its debt obligations or to refinance
existing debt obligations or obtain new capital to finance growth; security
breaches, cyber attacks or fraudulent activity; compliance with laws and
regulations applicable to international operations; the implementation of new,
or changes in the interpretation of existing, accounting principles or
financial reporting requirements; 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 it operates; 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
(dollars in thousands, except per share data)
(Unaudited)
                           Three Months Ended      Nine Months Ended
                           September 30,           September 30,
                           2013        2012        2013            2012
 
Consolidated Operations:
Total revenue              $ 437,801   $ 439,694   $ 1,316,880     $ 1,308,826
Net revenue                  247,007     248,477     763,709         738,869
Total expenses               218,488     208,289     608,356         572,442
 
Income from Operations     $ 28,519    $ 40,188    $ 155,353       $ 166,427
 
Income before income         18,173      33,046      128,279         145,160
taxes
 
Net Income                 $ 46,186    $ 7,930     $ 115,552       $ 77,673
 
Net (income) loss
attributable to the          -           3,773       (308      )     5,317
noncontrolling interest
 
Net Income Attributable
to Cash America            $ 46,186    $ 11,703    $ 115,244       $ 82,990
International, Inc.
 
Earnings per share:
Net Income attributable to Cash America International, Inc.

common shareholders:
Basic                      $ 1.62      $ 0.40      $ 4.01          $ 2.80
Diluted                    $ 1.52      $ 0.37      $ 3.73          $ 2.62
 
Weighted average common
shares outstanding:
Basic                        28,426      29,536      28,747          29,599
Diluted                      30,379      31,375      30,857          31,643
                                                                      

 
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share data)
(Unaudited)
                                 September 30,                   December 31,
                                 2013            2012            2012
                                                                    
Assets
Current assets:
Cash and cash equivalents        $ 84,096        $ 78,663        $ 63,134
Pawn loans                         253,678         254,077         244,640
Consumer loans, net                328,281         256,825         289,418
Merchandise held for               193,115         171,285         167,409
disposition, net
Pawn loan fees and service         50,090          48,771          48,991
charges receivable
Income taxes receivable            10,931          684             -
Prepaid expenses and other         28,840          36,912          35,605
assets
Deferred tax assets                46,429          39,826          48,992     
Total current assets               995,460         887,043         898,189
Property and equipment, net        257,787         258,214         261,771
Goodwill                           670,037         599,337         608,216
Intangible assets, net             46,860          34,877          36,473
Other assets                       21,185          12,936          13,609     
Total assets                     $ 1,991,329     $ 1,792,407     $ 1,818,258  
                                                                    
Liabilities and Equity
Current liabilities:
Accounts payable and accrued     $ 137,473       $ 109,986       $ 126,664
expenses
Customer deposits                  15,123          12,944          11,420
Income taxes currently payable     -               -               5,922
Current portion of long-term       22,606          44,205          43,617     
debt
Total current liabilities          175,202         167,135         187,623
Deferred tax liabilities           96,286          102,048         101,711
Noncurrent income tax payable      -               2,697           2,703
Other liabilities                  1,287           1,007           888
Long-term debt                     660,243         545,258         534,713    
Total liabilities                $ 933,018       $ 818,145       $ 827,638    
                                                                    
Equity:
Cash America International,
Inc. equity:
Common stock, $0.10 par value
per share, 80,000,000 shares       3,024           3,024           3,024
authorized, 30,235,164 shares
issued and outstanding
Additional paid-in capital         152,872         157,874         157,613
Retained earnings                  991,682         855,972         879,434
Accumulated other                  2,614           4,366           3,128
comprehensive income
Treasury shares, at cost
(2,164,873 shares, 1,214,646
shares and 1,351,712 shares as     (91,881   )     (46,175   )     (51,304   )
of September 30, 2013 and
2012, and as of December 31,
2012, respectively)
Total Cash America
International, Inc.                1,058,311       975,061         991,895
shareholders' equity
Noncontrolling interest            -               (799      )     (1,275    )
Total equity                       1,058,311       974,262         990,620    
Total liabilities and equity     $ 1,991,329     $ 1,792,407     $ 1,818,258  
                                                                    

                                                
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)

(Unaudited)
                                                  
                     Three Months Ended          Nine Months Ended
                     September 30,               September 30,
                     2013          2012          2013            2012
                                                                    
Revenue
Pawn loan fees and   $ 79,298      $ 76,500      $ 227,940       $ 221,450
service charges
Proceeds from
disposition of         128,660       153,493       438,909         517,832
merchandise
Consumer loan fees     227,563       205,094       640,199         558,656
Other                  2,280         4,607         9,832           10,888     
Total Revenue          437,801       439,694       1,316,880       1,308,826  
Cost of Revenue
Disposed               91,101        106,918       301,397         350,878
merchandise
Consumer loan loss     99,693        84,299        251,774         219,079    
provision
Total Cost of          190,794       191,217       553,171         569,957    
Revenue
                                                                    
Net Revenue            247,007       248,477       763,709         738,869    
Expenses
Operations and         199,705       181,215       554,042         515,560
administration
Depreciation and       18,783        27,074        54,314          56,882     
amortization
Total Expenses         218,488       208,289       608,356         572,442    
Income from            28,519        40,188        155,353         166,427
Operations
Interest expense       (9,260  )     (7,196  )     (25,608   )     (21,065   )
Interest income        1             22            69              79
Foreign currency
transaction (loss)     (741    )     93            (1,053    )     (72       )
gain
Loss on
extinguishment of      (346    )     -             (346      )     -
debt
Equity in loss of
unconsolidated         -             (61     )     (136      )     (209      )
subsidiary
Income before          18,173        33,046        128,279         145,160
Income Taxes
(Benefit)
provision for          (28,013 )     25,116        12,727          67,487     
income taxes
Net Income             46,186        7,930         115,552         77,673
Net loss (income)
attributable to        -             3,773         (308      )     5,317      
the noncontrolling
interest
Net Income
Attributable to
Cash America         $ 46,186      $ 11,703      $ 115,244       $ 82,990     
International,
Inc.
Earnings Per
Share:
Net Income
attributable to
Cash America
International,
Inc. common
shareholders:
Basic                $ 1.62        $ 0.40        $ 4.01          $ 2.80
Diluted              $ 1.52        $ 0.37        $ 3.73          $ 2.62
Weighted average
common shares
outstanding:
Basic                  28,426        29,536        28,747          29,599
Diluted                30,379        31,375        30,857          31,643
Dividends declared   $ 0.035       $ 0.035       $ 0.105         $ 0.105
per common share
                                                                              

               
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

PAWN LENDING ACTIVITIES – FINANCIAL AND OPERATING DATA
                  
The following tables outline certain data related to the pawn loan activities
of Cash America International, Inc. and its subsidiaries (the “Company”) as of
and for the three and nine months ended September 30, 2013 and 2012 (dollars
in thousands).
                  
                 As of September 30,
                 2013              2012              Change          % Change
Ending pawn
loan balances
Domestic
retail           $  248,427        $  241,261        $  7,166        3.0     %
services
Foreign
retail              5,251             12,816            (7,565   )   (59.0 ) %
services
Consolidated
pawn loan        $  253,678        $  254,077        $  (399     )   (0.2  ) %
balances
                                                                              
Ending
merchandise
balance, net
Domestic
retail           $  186,878        $  160,075        $  26,803       16.7    %
services
Foreign
retail              6,237             11,210            (4,973   )   (44.4 ) %
services
Consolidated
merchandise      $  193,115        $  171,285        $  21,830       12.7    %
balance, net
 
                 Three Months Ended September 30,
                 2013              2012              Change          % Change
Pawn loan
fees and
service
charges
Domestic
retail           $  77,532         $  73,209         $  4,323        5.9     %
services
Foreign
retail              1,766             3,291             (1,525   )   (46.3 ) %
services
Consolidated
pawn loan
fees and         $  79,298         $  76,500         $  2,798        3.7     %
service
charges
                                                                              
Average pawn
loan balance
outstanding
Domestic
retail           $  241,785        $  232,027        $  9,758        4.2     %
services
Foreign
retail              5,012             11,870            (6,858   )   (57.8 ) %
services
Consolidated
average pawn     $  246,797        $  243,897        $  2,900        1.2     %
loans
outstanding
                                                                              
Amount of
pawn loans
written and
renewed
Domestic
retail           $  258,055        $  238,191        $  19,864       8.3     %
services
Foreign
retail              14,043            35,240            (21,197  )   (60.2 ) %
services
Consolidated
amount of
pawn loans       $  272,098        $  273,431        $  (1,333   )   (0.5  ) %
written and
renewed
                                                                              
Average
amount per
pawn loan (in
ones)
Domestic
retail           $  125            $  131            $  (6       )   (4.6  ) %
services
Foreign
retail           $  86             $  84             $  2            2.4     %
services
Consolidated
average
amount per       $  122            $  122            $  -            -       %
pawn loan (in
ones)
                                                                              
Annualized
yield on pawn
loans
Domestic
retail              127.2    %        125.5    %
services
Foreign
retail              139.8    %        110.3    %
services
Consolidated
annualized          127.5    %        124.8    %                              
yield on pawn
loans
                                                                              
Gross profit
margin on
disposition
of
merchandise
Domestic
retail              29.6     %        31.7     %
services
Foreign
retail              17.1     %        14.5     %
services
Gross profit
margin on
disposition         29.2     %        30.3     %                              
of
merchandise
                                                                              
Merchandise
turnover
Domestic
retail              2.1               2.6
services
Foreign
retail              2.3               3.7
services
Consolidated
merchandise         2.1               2.7                                     
turnover
                                                                              

                                                                    
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

PAWN LENDING ACTIVITIES – FINANCIAL AND OPERATING DATA
                                                                              
                           Nine Months Ended September 30,
                           2013          2012          Change        % Change
Pawn loan fees and
service charges
Domestic retail services   $ 222,508     $ 210,807     $ 11,701      5.6     %
Foreign retail services      5,432         10,643        (5,211  )   (49.0 ) %
Consolidated pawn loan     $ 227,940     $ 221,450     $ 6,490       2.9     %
fees and service charges
                                                                              
Average pawn loan
balance outstanding
Domestic retail services   $ 228,048     $ 220,494     $ 7,554       3.4     %
Foreign retail services      4,910         13,843        (8,933  )   (64.5 ) %
Consolidated average       $ 232,958     $ 234,337     $ (1,379  )   (0.6  ) %
pawn loans outstanding
                                                                              
Amount of pawn loans
written and renewed
Domestic retail services   $ 707,758     $ 675,000     $ 32,758      4.9     %
Foreign retail services      42,303        104,877       (62,574 )   (59.7 ) %
Consolidated amount of
pawn loans written and     $ 750,061     $ 779,877     $ (29,816 )   (3.8  ) %
renewed
                                                                              
Average amount per pawn
loan (in ones)
Domestic retail services   $ 127         $ 130         $ (3      )   (2.3  ) %
Foreign retail services    $ 87          $ 89          $ (2      )   (2.2  ) %
Consolidated average
amount per pawn loan (in   $ 124         $ 122         $ 2           1.6     %
ones)
                                                                              
Annualized yield on pawn
loans
Domestic retail services     130.5   %     127.7   %
Foreign retail services      147.9   %     102.7   %
Consolidated annualized      130.8   %     126.2   %                          
yield on pawn loans
                                                                              
Gross profit margin on
disposition of
merchandise
Domestic retail services     31.7    %     33.8    %
Foreign retail services      17.9    %     11.5    %
Gross profit margin on
disposition of               31.3    %     32.2    %                          
merchandise
                                                                              
Merchandise turnover
Domestic retail services     2.5           3.0
Foreign retail services      2.5           3.8
Consolidated merchandise     2.5           3.0                                
turnover
                                                                              

             
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

MERCHANDISE DISPOSITION, GROSS PROFIT AND OPERATING DATA
               
Profit from the disposition of merchandise represents the proceeds received from the
disposition of merchandise in excess of the cost of disposed merchandise, which is the
Company's cost basis in the pawn loan or the amount paid for purchased merchandise. The
following tables summarize the proceeds from the disposition of merchandise and the related
profit for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands).
               
              Three Months Ended September 30,
              2013                                      2012
              Retail        Commercial    Total         Retail        Commercial    Total
Proceeds
from          $ 94,169      $ 34,491      $ 128,660     $ 81,947      $ 71,546      $ 153,493
disposition
Gross
profit on     $ 33,452      $ 4,107       $ 37,559      $ 30,023      $ 16,552      $ 46,575
disposition
Gross
profit          35.5    %     11.9    %     29.2    %     36.6    %     23.1    %     30.3    %
margin
Percentage
of total        89.1    %     10.9    %     100.0   %     64.5    %     35.5    %     100.0   %
gross
profit
               
              Nine Months Ended September 30,
              2013                                      2012
              Retail        Commercial    Total         Retail        Commercial    Total
Proceeds
from          $ 296,415     $ 142,494     $ 438,909     $ 277,602     $ 240,230     $ 517,832
disposition
Gross
profit on     $ 108,827     $ 28,685      $ 137,512     $ 103,470     $ 63,484      $ 166,954
disposition
Gross
profit          36.7    %     20.1    %     31.3    %     37.3    %     26.4    %     32.2    %
margin
Percentage
of total        79.1    %     20.9    %     100.0   %     62.0    %     38.0    %     100.0   %
gross
profit
                                                                                               

                      
The following table summarizes the age of merchandise held for disposition
before valuation allowance of $0.9 million and $0.7 million as of September
30, 2013 and 2012, respectively (dollars in thousands).
                          
                         As of September 30,
                         2013                          2012
                         Amount            %           Amount           %
Jewelry - held for       $   105,583       54.4        $   101,464      59.0
one year or less
Other merchandise -
held for one year or         76,235        39.3            62,268       36.2
less
Total merchandise
held for one year or         181,818       93.7            163,732      95.2
less
Jewelry - held for           5,701         2.9             2,827        1.6
more than one year
Other merchandise -
held for more than           6,544         3.4             5,437        3.2
one year
Total merchandise
held for more than           12,245        6.3             8,264        4.8
one year
Total merchandise        $   194,063       100.0       $   171,996      100.0
held for disposition
                                                                         

                
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSUMER LOAN FINANCIAL AND OPERATING DATA
                  
The following tables set forth consumer loan fees by segment, adjusted for the deduction of the loan
loss provision for the three and nine months ended September 30, 2013 and 2012 (dollars in
thousands, except where otherwise noted).
                  
                 Three Months Ended September 30,
                 2013                                       2012
                 Retail         E-Commerce    Total         Retail         E-Commerce    Total
                 Services                                   Services
Interest and
fees on          $ 26,265       $ 92,510      $ 118,775     $ 28,364       $ 117,493     $ 145,857
short-term
loans
Interest and
fees on line       -              50,504        50,504        -              20,077        20,077
of credit
accounts
Interest and
fees on            3,239          55,045        58,284        3,081          36,079        39,160   
installment
loans
Consumer loan    $ 29,504       $ 198,059     $ 227,563     $ 31,445       $ 173,649     $ 205,094
fees
Consumer loan      10,037         89,656        99,693        8,061          76,238        84,299   
loss provision
Consumer loan
fees, net of     $ 19,467       $ 108,403     $ 127,870     $ 23,384       $ 97,411      $ 120,795  
loss provision
                                                                                                    
Year-over-year   $ (3,917 )     $ 10,992      $ 7,075       $ (1,780 )     $ 20,170      $ 18,390
change - $
Year-over-year     (16.8  ) %     11.3    %     5.9     %     (7.1   ) %     26.1    %     18.0    %
change - %
Consumer loan
loss provision
as a % of          34.0     %     45.3    %     43.8    %     25.6     %     43.9    %     41.1    %
consumer loan
fees
                                                                                                    
                 Nine Months Ended September 30,
                 2013                                       2012
                 Retail         E-Commerce    Total         Retail         E-Commerce    Total
                 Services                                   Services
Interest and
fees on          $ 74,999       $ 310,549     $ 385,548     $ 81,169       $ 339,270     $ 420,439
short-term
loans
Interest and
fees on line       -              102,021       102,021       -              45,998        45,998
of credit
accounts
Interest and
fees on            9,474          143,156       152,630       8,227          83,992        92,219   
installment
loans
Consumer loan    $ 84,473       $ 555,726     $ 640,199     $ 89,396       $ 469,260     $ 558,656
fees
Consumer loan      23,927         227,847       251,774       19,130         199,949       219,079  
loss provision
Consumer loan
fees, net of     $ 60,546       $ 327,879     $ 388,425     $ 70,266       $ 269,311     $ 339,577  
loss provision
                                                                                                    
Year-over-year   $ (9,720 )     $ 58,568      $ 48,848      $ (114   )     $ 66,374      $ 66,260
change - $
Year-over-year     (13.8  ) %     21.7    %     14.4    %     (0.2   ) %     32.7    %     24.2    %
change - %
Consumer loan
loss provision
as a % of          28.3     %     41.0    %     39.3    %     21.4     %     42.6    %     39.2    %
consumer loan
fees
                                                                                                    

In addition to reporting consumer loans owned by the Company and consumer
loans guaranteed by the Company, which are either generally accepted
accounting principles (“GAAP”) items or disclosures required by GAAP, the
Company has provided combined consumer loans, which is a non-GAAP measure. In
addition, the Company has reported consumer loans written and renewed, which
is statistical data that is not included in the Company’s financial
statements. The Company also reports allowances and liabilities for estimated
losses on consumer loans individually and on a combined basis, which are GAAP
measures that are included in the Company’s financial statements.

Management believes these measures, including ratios calculated using these
measures, provide investors with important information needed to evaluate the
magnitude of potential loan losses and the opportunity for revenue performance
of the consumer loan portfolio on an aggregate basis. Management believes the
comparison of the aggregate amounts from period to period is more meaningful
than comparing only the residual amount on the Company’s balance sheet since
both revenue and the consumer loan loss provision are impacted by the
aggregate amount of loans owned by the Company and those guaranteed by the
Company as reflected in its financial statements.

                                       
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSUMER LOAN FINANCIAL AND OPERATING DATA
                                             
The following tables summarize selected data related to the Company’s consumer
loan activities as of and for the three and nine months ended September 30,
2013 and 2012 (dollars in thousands, except where otherwise noted).
                                             
The following table shows short-term loans and related loan loss activity,
which is based on the volume of loans written and renewed, for the three
months ended September 30, 2013 and 2012.
                                             
                                            Three Months Ended
                                            September 30,
                                            2013                 2012
Short-term loans:
Combined consumer loan loss provision
as a % of combined consumer loans           6.5      %           6.6      %
written and renewed^(a)
Charge-offs (net of recoveries) as a
% of combined consumer loans written        7.6      %           6.7      %
and renewed^(a)
Combined consumer loan loss provision       35.2     %           35.3     %
as a % of consumer loan fees
Allowance and liability for losses as
a % of combined consumer loans and          18.8     %           19.0     %
fees receivable, gross^(b)
 
^(a) The disclosure regarding the amount of consumer loans written and renewed
is statistical data that is not included in the Company's financial
statements.
^(b) Non-GAAP measure.
                      

                                           
The following table shows line of credit accounts and installment loans and
related loan loss activity, which is based on the average amount of consumer
loan balances, for the three months ended September 30, 2013 and 2012.
                                                 
                                                Three Months Ended
                                                September 30,
                                                2013              2012
Line of credit accounts:
Combined consumer loan loss provision as
a % of combined average consumer loan           31.9    %         27.9    %
balance^(a)(b)
Charge-offs (net of recoveries) as a % of
combined average consumer loan                  17.6    %         19.5    %
balance^(a)(b)
Combined consumer loan loss provision as        49.8    %         48.1    %
a % of consumer loan fees
Allowance and liability for losses as a %
of combined average consumer loan               22.0    %         21.1    %
balance^(a)
 
Installment loans:
Combined consumer loan loss provision as
a % of combined average consumer loan           20.8    %         22.7    %
balance^(a)(b)
Charge-offs (net of recoveries) as a % of
combined average consumer loan                  17.0    %         15.5    %
balance^(a)(b)
Combined consumer loan loss provision as        56.2    %         59.2    %
a % of consumer loan fees
Allowance and liability for losses as a %
of combined average consumer loan               20.3    %         25.1    %
balance^(a)
^(a) Non-GAAP measure.
^(b) The average consumer loan balance is a simple average of the beginning
and ending consumer loan balance.
 

             
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSUMER LOAN FINANCIAL AND OPERATING DATA
               
The following table summarizes consumer loan balances outstanding as of September 30, 2013 and
2012 (dollars in thousands):
               
              As of September 30,
              2013                                       2012
              Company       Guaranteed                   Company       Guaranteed
              Owned^(a)     by the        Combined^(b)   Owned^(a)     by the        Combined^(b)
                            Company^(a)                                Company^(a)
Ending
consumer
loan
balances:
Retail
Services
Short-term    $ 47,824      $  4,681      $  52,505      $ 49,079      $  6,904      $  55,983
loans
Installment     9,945          10,275        20,220        9,899          6,707         16,606   
loans
Total
Retail          57,769         14,956        72,725        58,978         13,611        72,589   
Services,
gross
E-Commerce
Domestic
Short-term      33,926         35,107        69,033        36,832         37,952        74,784
loans
Line of
credit          59,341         -             59,341        38,603         -             38,603
accounts
Installment     62,460         -             62,460        38,986         -             38,986   
loans
Total
Domestic,       155,727        35,107        190,834       114,421        37,952        152,373  
gross
 
Foreign
Short-term      63,276         22            63,298        96,561         3,708         100,269
loans
Line of
credit          40,265         -             40,265        -              -             -
accounts
Installment     101,200        -             101,200       66,111         -             66,111   
loans
Total
Foreign,        204,741        22            204,763       162,672        3,708         166,380  
gross
Total
E-Commerce,     360,468        35,129        395,597       277,093        41,660        318,753  
gross
 
Total
ending loan     418,237        50,085        468,322       336,071        55,271        391,342
balance,
gross
Less:
Allowance
and             (89,956 )      (2,830 )      (92,786 )     (79,246 )      (3,437 )      (82,683 )
liabilities
for losses
Total
ending loan   $ 328,281     $  47,255     $  375,536     $ 256,825     $  51,834     $  308,659  
balance,
net
Allowance
and
liability
for losses
as a % of       21.5    %      5.7    %      19.8    %     23.6    %      6.2    %      21.1    %
consumer
loan
balances,
gross^(c)
 
^(a) GAAP measure. The consumer loan balances guaranteed by the Company represent loans
originated by third-party lenders through the Company's credit services organization programs
(the “CSO programs”), so these balances are not recorded in the Company’s financial statements.
However, the Company has established a liability for estimated losses in support of its guarantee
of these loans, which is reflected in the table above and included in its financial statements.
^(b) Except for allowance and liability for estimated losses, amounts represent non-GAAP
measures.
^(c) Non-GAAP measure.
         

 
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSUMER LOAN FINANCIAL AND OPERATING DATA
 
The following tables summarize the consumer loans written and renewed for the three and nine months
ended September 30, 2013 and 2012 (dollars in thousands, except where otherwise noted).
             
              Three Months Ended September 30,
              2013                                          2012
              Company       Guaranteed                      Company       Guaranteed
              Owned^(a)     by the           Combined^(a)   Owned^(a)     by the           Combined^(a)
                            Company^(a)(b)                                Company^(a)(b)
Amount of
consumer
loans
written and
renewed
(dollars in
thousands):
Retail
Services
Short-term    $ 185,238     $    28,127      $  213,365     $ 191,332     $    36,343      $  227,675
loans
Installment     2,025            4,885          6,910         2,026            4,457          6,483
loans
Total
Retail          187,263          33,012         220,275       193,358          40,800         234,158
Services
E-Commerce
Domestic
Short-term      78,771           182,698        261,469       81,619           197,962        279,581
loans
Line of
credit          47,088           -              47,088        35,166           -              35,166
accounts
Installment     48,243           -              48,243        29,987           -              29,987
loans
Total           174,102          182,698        356,800       146,772          197,962        344,734
Domestic
 
Foreign
Short-term      171,828          601            172,429       251,787          17,676         269,463
loans
Line of
credit          58,746           -              58,746        -                -              -
accounts
Installment     90,448           -              90,448        35,380           -              35,380
loans
Total           321,022          601            321,623       287,167          17,676         304,843
Foreign
Total           495,124          183,299        678,423       433,939          215,638        649,577
E-Commerce
 
Total
amount of
consumer      $ 682,387     $    216,311     $  898,698     $ 627,297     $    256,438     $  883,735
loans
written and
renewed
 
Number of
consumer
loans
written and
renewed (in
ones):
Retail
Services
Short-term      390,393          54,997         445,390       408,886          68,960         477,846
loans
Installment     1,828            983            2,811         1,772            662            2,434
loans
Total
Retail          392,221          55,980         448,201       410,658          69,622         480,280
Services
E-Commerce
Domestic
Short-term      251,404          263,650        515,054       268,856          271,250        540,106
loans
Line of
credit          171,910          -              171,910       119,794          -              119,794
accounts
Installment     40,092           -              40,092        31,444           -              31,444
loans
Total           463,406          263,650        727,056       420,094          271,250        691,344
Domestic
 
Foreign
Short-term      325,899          871            326,770       434,578          23,146         457,724
loans
Line of
credit          164,200          -              164,200       -                -              -
accounts
Installment     76,498           -              76,498        30,336           -              30,336
loans
Total           566,597          871            567,468       464,914          23,146         488,060
Foreign
Total           1,030,003        264,521        1,294,524     885,008          294,396        1,179,404
E-Commerce
 
Total
number of
consumer        1,422,224        320,501        1,742,725     1,295,666        364,018        1,659,684
loans
written and
renewed
 
^(a) The disclosure regarding the amount and number of consumer loans written and renewed is
statistical data that is not included in the Company’s financial statements.
^(b) Loans guaranteed by the Company represent loans originated by third-party lenders through the CSO
programs.
        

             
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

CONSUMER LOAN FINANCIAL AND OPERATING DATA
               
              Nine Months Ended September 30,
              2013                                          2012
              Company       Guaranteed                      Company       Guaranteed
              Owned^(a)     by the           Combined^(a)   Owned^(a)     by the           Combined^(a)
                            Company^(a)(b)                                Company^(a)(b)
Amount of
consumer
loans
written and
renewed
(dollars in
thousands):
Retail
Services
Short-term    $ 525,054     $    82,899      $  607,953     $ 544,930     $   109,005      $  653,935
loans
Installment     5,522            13,871         19,393        5,690           10,613          16,303
loans
Total
Retail          530,576          96,770         627,346       550,620         119,618         670,238
Services
E-Commerce
Domestic
Short-term      222,906          520,200        743,106       248,307         541,364         789,671
loans
Line of
credit          113,543          -              113,543       82,679          -               82,679
accounts
Installment     104,299          -              104,299       57,354          -               57,354
loans
Total           440,748          520,200        960,948       388,340         541,364         929,704
Domestic
 
Foreign
Short-term      688,108          14,572         702,680       738,682         52,724          791,406
loans
Line of
credit          72,230           -              72,230        -               -               -
accounts
Installment     195,698          -              195,698       91,790          -               91,790
loans
Total           956,036          14,572         970,608       830,472         52,724          883,196
Foreign
Total           1,396,784        534,772        1,931,556     1,218,812       594,088         1,812,900
E-Commerce
 
Total
amount of
consumer      $ 1,927,360   $    631,542     $  2,558,902   $ 1,769,432   $   713,706      $  2,483,138
loans
written and
renewed:
 
Number of
consumer
loans
written and
renewed (in
ones):
Retail
Services
Short-term      1,100,252        160,749        1,261,001     1,159,449       200,636         1,360,085
loans
Installment     5,022            2,545          7,567         5,252           1,506           6,758
loans
Total
Retail          1,105,274        163,294        1,268,568     1,164,701       202,142         1,366,843
Services
E-Commerce
Domestic
Short-term      737,269          726,828        1,464,097     784,349         741,152         1,525,501
loans
Line of
credit          423,111          -              423,111       290,879         -               290,879
accounts
Installment     93,506           -              93,506        57,255          -               57,255
loans
Total           1,253,886        726,828        1,980,714     1,132,483       741,152         1,873,635
Domestic
 
Foreign
Short-term      1,247,096        19,106         1,266,202     1,359,841       69,645          1,429,486
loans
Line of
credit          194,948          -              194,948       -               -               -
accounts
Installment     166,252          -              166,252       80,539          -               80,539
loans
Total           1,608,296        19,106         1,627,402     1,440,380       69,645          1,510,025
Foreign
Total           2,862,182        745,934        3,608,116     2,572,863       810,797         3,383,660
E-Commerce
 
Total
number of
consumer        3,967,456        909,228        4,876,684     3,737,564       1,012,939       4,750,503
loans
written and
renewed
 
^(a) The disclosure regarding the amount and number of consumer loans written and renewed is
statistical data that is not included in the Company’s financial statements.
^(b) Loans guaranteed by the Company represent loans originated by third-party lenders through the CSO
programs.
        

                                                                                                                              
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

INCOME FROM OPERATIONS BY OPERATING SEGMENT
                                                                                                                                      
The following tables contain operating segment data for the three and nine months ended September 30, 2013 and 2012 by segment, for the
Company’s corporate operations and on a consolidated basis (dollars in thousands).
                                                                                                                                      
                 Retail Services                                 E-Commerce
                 Domestic      Foreign             Total         Domestic       Foreign        Total          Corporate           Consolidated
                                                                                                                                      
Three Months
Ended
September 30,
2013
Revenue
Pawn loan fees
and service      $ 77,532      $ 1,766             $ 79,298      $ -            $ -            $ -            $ -                 $  79,298
charges
Proceeds from
disposition of     124,352       4,308               128,660       -              -              -              -                    128,660
merchandise
Consumer loan      29,504        -                   29,504        104,954        93,105         198,059        -                    227,563
fees
Other              1,731         66                  1,797         249            69             318            165                  2,280
Total revenue      233,119       6,140               239,259       105,203        93,174         198,377        165                  437,801
Cost of
revenue
Disposed           87,530        3,571               91,101        -              -              -              -                    91,101
merchandise
Consumer loan      10,037        -                   10,037        49,225         40,431         89,656         -                    99,693
loss provision
Total cost of      97,567        3,571               101,138       49,225         40,431         89,656         -                    190,794
revenue
                                                                                                                                      
Net revenue        135,552       2,569               138,121       55,978         52,743         108,721        165                  247,007
Expenses
Operations and     111,220       2,831               114,051       38,662         31,755         70,417         15,237               199,705
administration
Depreciation
and                9,878         764                 10,642        3,252          706            3,958          4,183                18,783
amortization
Total expenses     121,098       3,595               124,693       41,914         32,461         74,375         19,420               218,488
Income (loss)
from             $ 14,454      $ (1,026     )      $ 13,428      $ 14,064       $ 20,282       $ 34,346       $ (19,255    )      $  28,519
operations
As of
September 30,
2013
Total assets     $ 1,102,152   $ 120,131           $ 1,222,283   $ 420,914      $ 216,341      $ 637,255      $ 131,791           $  1,991,329
Goodwill                                           $ 459,669                                   $ 210,368                          $  670,037
                                                                                                                                      
                                                                                                                                      
                   Retail Services                                 E-Commerce
                   Domestic      Foreign           Total           Domestic       Foreign        Total          Corporate         Consolidated
                                                                                                                                      
Three Months
Ended
September 30,
2012
Revenue
Pawn loan fees
and service      $ 73,209        $     3,291       $ 76,500        $    -         $    -         $    -         $     -           $  76,500
charges
Proceeds from
disposition of     141,088             12,405        153,493            -              -              -               -              153,493
merchandise
Consumer loan      31,445              -             31,445             89,342         84,307         173,649         -              205,094
fees
Other              1,938               252           2,190              374            14             388             2,029          4,607
Total revenue      247,680             15,948        263,628            89,716         84,321         174,037         2,029          439,694
Cost of
revenue
Disposed           96,315              10,603        106,918            -              -              -               -              106,918
merchandise
Consumer loan      8,061               -             8,061              42,877         33,361         76,238          -              84,299
loss provision
Total cost of      104,376             10,603        114,979            42,877         33,361         76,238          -              191,217
revenue
Net revenue        143,304             5,345         148,649            46,839         50,960         97,799          2,029          248,477
Expenses
Operations and     84,874              14,205        99,079             33,397         31,051         64,448          17,688         181,215
administration
Depreciation
and                7,808               12,264        20,072             3,037          342            3,379           3,623          27,074
amortization
Total expenses     92,682              26,469        119,151            36,434         31,393         67,827          21,311         208,289
Income (loss)
from             $ 50,622        $     (21,124 )   $ 29,498        $    10,405    $    19,567    $    29,972    $     (19,282 )   $  40,188
operations
As of
September 30,
2012
Total assets     $ 993,598       $     111,610     $ 1,105,208     $    382,459   $    174,665   $    557,124   $     130,075     $  1,792,407
Goodwill                                           $ 388,965                                     $    210,372                     $  599,337
                                                                                                                                      

<td class="bwpadl0 bwnowrap *Story too large*
                                                                                                      
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

INCOME FROM OPERATIONS BY OPERATING SEGMENT

 (dollars in thousands)
                                                                                                           
                 Retail Services                      E-Commerce
                 Domestic    Foreign      Total       Domestic    Foreign     Total       Corporate    Consolidated
                                                                                                           
Nine Months
Ended
September 30,
2013
Revenue
Pawn loan fees
and service      $ 222,508   $ 5,432      $ 227,940   $ -         $ -         $ -         $ -          $  227,940
charges
Proceeds from
disposition of     425,716     13,193       438,909     -           -           -           -             438,909
merchandise
Consumer loan      84,473      -            84,473      283,097     272,629     555,726     -             640,199
fees
Other              6,149       988          7,137       1,051       92          1,143       1,552         9,832
Total revenue      738,846     19,613       758,459     284,148     272,721     556,869     1,552         1,316,880
Cost of
revenue
Disposed           290,569     10,828       301,397     -           -           -           -             301,397
merchandise
Consumer loan      23,927      -            23,927      112,391     115,456     227,847     -             251,774
loss provision
Total cost of      314,496     10,828       325,324     112,391     115,456     227,847     -             553,171
revenue
                                                                                                           
Net revenue        424,350     8,785        433,135     171,757     157,265     329,022     1,552         763,709
Expenses
Operations and     291,409     10,003       301,412     99,906      101,200     201,106     51,524        554,042
administration
Depreciation
and                27,579      1,593        29,172      10,885      2,101       12,986      12,156        54,314
amortization
Total expenses     318,988     11,596       330,584     110,791     103,301     214,092     63,680        608,356
Income (loss)
from             $ 105,362   $ (2,811 )  
operations

[TRUNCATED]
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