-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KKo8QRAfBz0XpDTG91ZWQp2marNUdLa/TwdK6Ewm4aYWF78WunLhKlsWfWQRfnMI FrNtUC7BPGa8B8hDAm/RgQ== 0001157523-06-010434.txt : 20061026 0001157523-06-010434.hdr.sgml : 20061026 20061026170134 ACCESSION NUMBER: 0001157523-06-010434 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061026 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061026 DATE AS OF CHANGE: 20061026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CASH AMERICA INTERNATIONAL INC CENTRAL INDEX KEY: 0000807884 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS RETAIL [5900] IRS NUMBER: 752018239 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09733 FILM NUMBER: 061166521 BUSINESS ADDRESS: STREET 1: 1600 W 7TH ST CITY: FT WORTH STATE: TX ZIP: 76102 BUSINESS PHONE: 8173351100 MAIL ADDRESS: STREET 1: 1600 WEST 7TH STREET CITY: FORT WORTH STATE: TX ZIP: 76102 FORMER COMPANY: FORMER CONFORMED NAME: CASH AMERICA INVESTMENTS INC /TX/ DATE OF NAME CHANGE: 19920520 8-K 1 a5259810.txt CASH AMERICA INTERNATIONAL, INC. 8-K - -------------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): October 26, 2006 CASH AMERICA INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Texas 1-9733 75-2018239 (State of (Commission (IRS Employer incorporation) File No.) Identification No.) 1600 West 7th Street Fort Worth, Texas 76102 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (817) 335-1100 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) - -------------------------------------------------------------------------------- ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION On October 26, 2006, Cash America International, Inc. (the "Company") announced its consolidated financial results for the third quarter ended September 30, 2006. A copy of the Company's earnings news release is furnished as Exhibit 99.1 to this report on Form 8-K and is incorporated herein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits - The following exhibit is furnished pursuant to the disclosures included under Item 2.02 of this report on Form 8-K. 99.1 Copy of earnings news release dated October 26, 2006, issued by Cash America International, Inc. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CASH AMERICA INTERNATIONAL, INC. Date: October 26, 2006 By: /s/ J. Curtis Linscott ----------------------------------- J. Curtis Linscott Vice President, General Counsel & Secretary EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Earnings news release dated October 26, 2006, issued by Cash America International, Inc. EX-99.1 2 a5259810ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Cash America Reports Third Quarter Net Earnings up 35% and Declares Dividend FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 26, 2006--Cash America International, Inc. (NYSE:CSH) announced today that net income for the third quarter ended September 30, 2006 increased 35% to $12,941,000 (42 cents per share) compared to $9,563,000 (32 cents per share) for the same period in 2005. Earnings per share exceeded the Company's published expectations for the quarter of between 38 cents and 41 cents. The third quarter 2006 results represent the twentieth consecutive quarter that Cash America has reported an increase in net income above 20%. The increase in earnings was led by a 14% increase in total revenue during the period, up from $144.8 million in the third quarter of 2005 to $165.6 million during the third quarter of 2006. Total revenue improvements included a 20% increase in cash advance fees, which rose from $40.4 million in the third quarter of 2005 to $48.4 million during the same period in 2006. A larger component to the increase in total revenue came from continued strong demand for the Company's pawn related activities. Revenue from finance and service charges on pawn loans combined with merchandise sales was up 12% from a total of $102.0 million during the third quarter of 2005 to $114.3 million in the third quarter of 2006. Consolidated net revenue, defined as total revenue reduced for the cost of merchandise sold during the period, rose 15% on the strength of slightly higher gross profit margins. Consolidated same store net revenue was up 7.2% in the third quarter of 2006 compared to the prior year period. Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, "The higher levels of both pawn loans and short-term cash advances has led to another strong quarter due to top line revenue growth. Our pawn loan balances finished the quarter up 9% over the same period last year and the active balance of short-term cash advances, customer obligations which have not reached their due date, was up 51% from last year's third quarter, partially aided by the inclusion of CashNetUSA which was acquired on September 15, 2006. The characteristics of our loans and merchandise available for sale provide the Company with positive momentum for the fourth quarter of 2006." For the first nine months of fiscal year 2006, Cash America produced an increase in net income of 38% to $39,242,000 ($1.29 per share) compared to $28,365,000 (94 cents per share) in the same period of the prior year. The 2006 year-to-date net income includes a $1.4 million (5 cents per share) after-tax gain on proceeds from a lease contract termination during the second quarter. Excluding this gain, net income for the first nine months of 2006 is $37,833,000 ($1.24 per share), up 33% compared to the same period in 2005. Driving the year-over-year net income increase was an increase of 13% in total revenue to $477.8 million for the nine-month period ended September 2006 up from $423.3 million for the same period in 2005. Cash America will host a conference call to discuss the third quarter results on Thursday, October 26th at 3:45 p.m. CDT. A live web cast of the call will be available on the Investor Relations section of the Company's corporate web site (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 $0.025 (2.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid to shareholders of record on November 8, 2006 and will be paid at the close of business on November 22, 2006. Outlook for the Fourth Quarter of 2006 and Fiscal Year 2007 Management believes that continued growth in earnings will be largely a function of sustained increases in demand for its loan products, which generally lead to higher asset balances and revenue. Other elements expected to affect the growth in revenue include the ongoing maturation of the 136 additional lending locations opened or acquired during the last 24 months, the regulatory governance of consumer loan products and the integration of CashNetUSA. As it enters the fourth quarter of 2006, management anticipates that demand for the Company's products will remain strong and is confirming its previously reported top-end expectation for full year 2006 earnings per share of $1.98 and narrowing the bottom-end to $1.92, compared to $1.48 per share from continuing operations in fiscal 2005. This range implies a fourth quarter 2006 range of between 68 cents and 74 cents per share, compared to 55 cents per share in the fourth quarter of 2005. The 2006 full year estimates do not include the $1.4 million after tax gain (5 cents per share) related to the early termination of a store lease reported in the second quarter. In addition, Cash America is confirming its recently released expectations for fiscal year 2007 consolidated earnings per share of between $2.40 and $2.55, which was reported on September 18, 2006. Cash America International, Inc. is a provider of specialty financial services to individuals in the United States with 905 total locations. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 474 locations in 23 states under the brand names Cash America Pawn and SuperPawn. The Company also offers short-term cash advances in many of its locations including 293 locations that offer this service under the brand names Cash America Payday Advance and Cashland. Short-term cash advances are also offered to customers via the Internet distribution channel of CashNetUSA located at http://www.cashnetusa.com. In addition, check cashing services are provided through its 138 franchised and Company-owned "Mr. Payroll" check cashing centers. For additional information, visit the Company's websites located at http://www.cashamerica.com and http://www.cashnetusa.com. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 This release contains forward-looking statements about the business, financial condition and prospects of Cash America International, Inc. and its subsidiaries ("the Company"). The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including, without limitation, changes in demand for the Company's services, the actions of third parties who offer products and services at the Company's locations, 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 the capital markets, changes in tax and other laws and governmental rules and regulations applicable to the Company's business, the ability to successfully integrate newly acquired businesses into the Company's operations and other risks indicated in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, terms such as "believes," "estimates," "plans," "expects," "anticipates" and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date of this release. CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------- 2006 2005 2006 2005 --------- --------- --------- --------- Consolidated Operations: Total revenue $165,596 $144,773 $477,821 $423,331 Net revenue $119,315 $103,910 $335,912 $295,574 Total expenses $95,971 $86,356 $269,186 $243,212 Income from operations $23,344 $17,554 $66,726 $52,362 Net Income $12,941 $9,563 $39,242 $28,365 Earnings per share: Basic $0.44 $0.33 $1.32 $0.97 Diluted $0.42 $0.32 $1.29 $0.94 Weighted average shares: Basic 29,707 29,309 29,652 29,329 Diluted 30,548 30,142 30,515 30,218 CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) September 30, December 31, ------------------- 2006 2005 2005 --------- --------- ------------ (Unaudited) Assets Current assets: Cash and cash equivalents $30,241 $19,492 $18,852 Pawn loans 133,734 122,916 115,280 Cash advances, net 70,253 39,712 40,704 Merchandise held for disposition, net 83,179 73,827 72,683 Finance and service charges receivable 23,846 21,305 22,048 Other receivables and prepaid expenses 11,539 11,923 13,406 Deferred tax assets 14,657 13,364 11,274 --------- --------- ------------ Total current assets 367,449 302,539 294,247 Property and equipment, net 110,983 93,184 94,856 Goodwill 193,379 173,313 174,987 Intangible assets, net 27,078 24,119 23,391 Other assets 12,296 10,816 11,167 --------- --------- ------------ Total assets $711,185 $603,971 $598,648 ========= ========= ============ Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $52,045 $32,401 $37,217 Customer deposits 7,470 6,579 6,239 Income taxes currently payable 2,456 885 1,449 Current portion of long-term debt 16,786 16,786 16,786 --------- --------- ------------ Total current liabilities 78,757 56,651 61,691 Deferred tax liabilities 11,688 10,757 11,344 Other liabilities 1,578 1,445 1,689 Long-term debt 200,617 177,219 149,208 --------- --------- ------------ Total liabilities 292,640 246,072 223,932 --------- --------- ------------ Stockholders' equity: Common stock, 30,235,164 shares issued 3,024 3,024 3,024 Additional paid-in capital 160,234 156,022 156,557 Retained earnings 267,004 214,052 229,975 Accumulated other comprehensive income (loss) 21 -- (5) Notes receivable secured by common stock (382) (2,488) (2,488) Treasury shares (11,356) (12,711) (12,347) --------- --------- ------------ Total stockholders' equity 418,545 357,899 374,716 --------- --------- ------------ Total liabilities and stockholders' equity $711,185 $603,971 $598,648 ========= ========= ============ CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------- 2006 2005 2006 2005 --------- -------- --------- --------- (Unaudited) Revenue Finance and service charges $39,404 $35,980 $109,047 $102,476 Proceeds from disposition of merchandise 74,848 66,027 235,239 210,101 Cash advance fees 48,401 40,428 123,235 102,114 Check cashing fees, royalties and other 2,943 2,338 10,300 8,640 --------- -------- --------- --------- Total Revenue 165,596 144,773 477,821 423,331 Cost of Revenue Disposed merchandise 46,281 40,863 141,909 127,757 --------- -------- --------- --------- Net Revenue 119,315 103,910 335,912 295,574 --------- -------- --------- --------- Expenses Operations 58,263 54,596 177,178 162,296 Cash advance loss provision 17,503 15,502 32,738 31,905 Administration 13,259 10,411 39,468 31,924 Depreciation and amortization 6,946 5,847 19,802 17,087 --------- -------- --------- --------- Total Expenses 95,971 86,356 269,186 243,212 --------- -------- --------- --------- Income from Operations 23,344 17,554 66,726 52,362 Interest expense (3,162) (2,787) (8,010) (7,614) Interest income 435 402 1,202 1,227 Foreign currency transaction gain (loss) 67 47 245 (868) Gain from termination of contract -- -- 2,167 -- --------- -------- --------- --------- Income from Operations before Income Taxes 20,684 15,216 62,330 45,107 Provision for income taxes 7,743 5,653 23,088 16,742 --------- -------- --------- --------- Net Income $12,941 $9,563 $39,242 $28,365 ========= ======== ========= ========= Earnings Per Share: Basic $0.44 $0.33 $1.32 $0.97 Diluted $0.42 $0.32 $1.29 $0.94 Weighted average common shares outstanding: Basic 29,707 29,309 29,652 29,329 Diluted 30,548 30,142 30,515 30,218 Dividends declared per common share $0.025 $0.025 $0.075 $0.075 CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA ($ in thousands unless noted otherwise) Three Months Ended Nine Months Ended September 30, September 30, --------------------- --------------------- 2006 2005 2006 2005 ----------- --------- ---------- ---------- PAWN LENDING OPERATIONS: Pawn loans Annualized yield on pawn loans 119.3 % 118.7 % 123.3 % 124.5 % Total amount of pawn loans written and renewed $129,269 $118,353 $357,170 $330,531 Average pawn loan balance outstanding $131,089 $120,230 $118,297 $110,070 Average pawn loan balance per average location in operation $284 $268 $258 $248 Ending pawn loan balance per location in operation $289 $271 $289 $271 Average pawn loan amount at end of period (not in thousands) $100 $92 $100 $92 Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise 38.2 % 38.1 % 39.7 % 39.2 % Average annualized merchandise turnover 2.4x 2.4x 2.6x 2.6x Average balance of merchandise held for disposition per average location in operation $167 $153 $157 $146 Ending balance of merchandise held for disposition per location in operation $180 $163 $180 $163 Pawnshop locations in operation - Beginning of period, owned 457 445 456 441 Acquired 5 4 7 6 Start-ups 1 4 2 7 Combined or closed -- -- (2) (1) ----------- --------- ---------- ---------- End of period, owned 463 453 463 453 Franchise locations at end of period 11 11 11 11 ----------- --------- ---------- ---------- Total pawnshop locations at end of period 474 464 474 464 =========== ========= ========== ========== Average number of owned pawnshop locations 462 448 459 444 =========== ========= ========== ========== Cash advances Total amount of cash advances written (a) $76,040 $76,543 $200,786 $201,474 Number of cash advances written (not in thousands) (a) 190,692 218,594 510,196 598,514 Average amount per cash advance (not in thousands) (a) $399 $350 $394 $337 Combined cash advances outstanding (a) $19,253 $20,217 $19,253 $20,217 Cash advances outstanding per location at end of period (a) $46 $47 $46 $47 Cash advances outstanding before allowance for losses (b) $8,780 $11,024 $8,780 $11,024 Locations offering cash advances at end of period 421 434 421 434 =========== ========= ========== ========== Average number of locations offering cash advances 420 431 427 429 =========== ========= ========== ========== CASH ADVANCE OPERATIONS: Total amount of cash advances written (a) $219,267 $189,127 $551,189 $467,362 Number of cash advances written (not in thousands) (a) 589,138 504,999 1,480,025 1,290,460 Average amount per cash advance (not in thousands) (a) $372 $375 $372 $362 Combined cash advances outstanding (a) $78,479 $44,148 $78,479 $44,148 Cash advances outstanding before allowance for losses (b) $72,562 $38,690 $72,562 $38,690 Cash advance locations in operation - Beginning of period 291 271 286 253 Acquired -- -- -- 1 Start-ups 2 8 10 27 Combined or closed -- -- (3) (2) ----------- --------- ---------- ---------- End of period 293 279 293 279 =========== ========= ========== ========== Average number of cash advance locations 292 275 289 267 =========== ========= ========== ========== CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (Continued) ($ in thousands unless noted otherwise) Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------- 2006 2005 2006 2005 --------- --------- --------- --------- CHECK CASHING OPERATIONS (Mr. Payroll Corp)(c) Face amount of checks cashed $311,562 $294,868 $998,154 $909,491 Gross fees collected $4,264 $3,950 $14,216 $12,720 Fees as a percentage of checks cashed 1.4 % 1.3 % 1.4 % 1.4 % Average check cashed (not in thousands) $401 $375 $425 $387 Centers in operation at end of period 138 137 138 137 ========= ========= ========= ========= Average number of check cashing centers 138 136 139 135 ========= ========= ========= ========= (a) Includes cash advances made by the Company and cash advances made by third-party lenders offered at the Company's locations. (b) Amounts recorded in the Company's consolidated financial statements. (c) Includes franchised and company-owned locations. CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED CASH ADVANCES OUTSTANDING AND RELATED ALLOWANCE FOR LOSSES (in thousands) September 30, ----------------- 2006 2005 -------- -------- Originated by the Company Active cash advances and fees receivable $54,741 $31,372 Cash advances and fees in collection 20,146 10,680 -------- -------- Total originated by the Company 74,887 42,052 -------- -------- Originated by third-party lenders Active cash advances and fees receivable 17,072 16,116 Cash advances and fees in collection 5,773 6,197 -------- -------- Total originated by third-party lenders 22,845 22,313 -------- -------- Combined gross portfolio 97,732 64,365 Less: Elimination of cash advances owned by third- party lenders 16,390 14,177 Less: Discount on cash advances assigned by third- party lenders -- 474 -------- -------- Company-owned cash advances and fees receivable, gross 81,342 49,714 Less: Allowance for losses 11,089 10,002 -------- -------- Cash advances and fees receivable, net $70,253 $39,712 ======== ======== Three Months Ended Nine Months Ended September 30, September 30, ------------------- ----------------- 2006 2005 2006 2005 ---------- -------- -------- -------- Allowance for company-owned cash advances Balance at beginning of period $7,541 $7,720 $6,309 $4,358 Cash advance loss provision 17,641 15,282 32,859 31,420 Charge-offs (16,266) (14,990) (35,924) (32,691) Recoveries 2,173 1,990 7,845 6,915 ---------- -------- -------- -------- Balance at end of period $11,089 $10,002 $11,089 $10,002 ========== ======== ======== ======== Accrual for third-party lender- owned cash advances Balance at beginning of period $891 $607 $874 $342 (Decrease) increase in loss provision (138) 220 (121) 485 ---------- -------- -------- -------- Balance at end of period $753 $827 $753 $827 ========== ======== ======== ======== Combined statistics Combined cash advance loss provision $17,503 $15,502 $32,738 $31,905 ========== ======== ======== ======== Combined cash advance loss provision as a % of combined cash advances written 5.9 % 5.8 % 4.4 % 4.8 % ========== ======== ======== ======== Charge-offs (net of recoveries) as a % of combined cash advances written 4.8 % 4.9 % 3.7 % 3.9 % ========== ======== ======== ======== Combined allowance for losses and accrued third-party lenders losses as a % of combined gross portfolio 12.1 % 16.8 % 12.1 % 16.8 % ========== ======== ======== ======== CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 (in thousands) Pawn Cash Check Lending Advance Cashing Consolidated --------- --------- ------- ------------ Three Months Ended September 30, 2006: - ----------------------------- Revenue Finance and service charges $39,404 $-- $-- $39,404 Proceeds from disposition of merchandise 74,848 -- -- 74,848 Cash advance fees 11,963 36,438 -- 48,401 Check cashing fees, royalties and other -- 1,887 1,056 2,943 --------- --------- ------- ------------ Total revenue 126,215 38,325 1,056 165,596 Cost of revenue - disposed merchandise 46,281 -- -- 46,281 --------- --------- ------- ------------ Net revenue 79,934 38,325 1,056 119,315 --------- --------- ------- ------------ Expenses Operations 43,148 14,788 327 58,263 Cash advance loss provision 5,934 11,569 -- 17,503 Administration 7,843 5,118 298 13,259 Depreciation and amortization 4,748 2,107 91 6,946 --------- --------- ------- ------------ Total expenses 61,673 33,582 716 95,971 --------- --------- ------- ------------ Income from operations $18,261 $4,743 $340 $23,344 ========= ========= ======= ============ As of September 30, 2006: - ----------------------------- Total assets $529,258 $174,621 $7,306 $711,185 ========= ========= ======= ============ Three Months Ended September 30, 2005: - ----------------------------- Revenue Finance and service charges $35,980 $-- $-- $35,980 Proceeds from disposition of merchandise 66,027 -- -- 66,027 Cash advance fees 11,341 29,087 -- 40,428 Check cashing fees, royalties and other -- 1,393 945 2,338 --------- --------- ------- ------------ Total revenue 113,348 30,480 945 144,773 Cost of revenue - disposed merchandise 40,863 -- -- 40,863 --------- --------- ------- ------------ Net revenue 72,485 30,480 945 103,910 --------- --------- ------- ------------ Expenses Operations 41,130 13,123 343 54,596 Cash advance loss provision 5,201 10,301 -- 15,502 Administration 6,116 4,017 278 10,411 Depreciation and amortization 3,957 1,811 79 5,847 --------- --------- ------- ------------ Total expenses 56,404 29,252 700 86,356 --------- --------- ------- ------------ Income from operations $16,081 $1,228 $245 $17,554 ========= ========= ======= ============ As of September 30, 2005: - ----------------------------- Total assets $482,134 $114,835 $7,002 $603,971 ========= ========= ======= ============ Note: To more accurately estimate the administrative expenses associated with each operating segment, the Company began in the second quarter of 2006 to allocate the aggregate administrative expenses on a different basis. Management believes that the current methodology creates a more balanced allocation among the segments based on the time, resources and activities associated with the administrative activities of each operating segment. All prior periods have been revised to reflect this change in the allocation of administrative burden. There is no change to the consolidated performance of the Company for any period. There are no other changes to the segment results other than to the administrative expense allocation. CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005 (in thousands) Nine Months Ended September 30, 2006: - ---------------------------------- Revenue Finance and service charges $109,047 $-- $-- $109,047 Proceeds from disposition of merchandise 235,239 -- -- 235,239 Cash advance fees 31,893 91,342 -- 123,235 Check cashing fees, royalties and other -- 7,220 3,080 10,300 --------- -------- ------ --------- Total revenue 376,179 98,562 3,080 477,821 Cost of revenue - disposed merchandise 141,909 -- -- 141,909 --------- -------- ------ --------- Net revenue 234,270 98,562 3,080 335,912 --------- -------- ------ --------- Expenses Operations 132,164 44,033 981 177,178 Cash advance loss provision 11,541 21,197 -- 32,738 Administration 23,417 14,872 1,179 39,468 Depreciation and amortization 13,568 5,973 261 19,802 --------- -------- ------ --------- Total expenses 180,690 86,075 2,421 269,186 --------- -------- ------ --------- Income from operations $53,580 $12,487 $659 $66,726 ========= ======== ====== ========= Nine Months Ended September 30, 2005: - ---------------------------------- Revenue Finance and service charges $102,476 $-- $-- $102,476 Proceeds from disposition of merchandise 210,101 -- -- 210,101 Cash advance fees 30,371 71,743 -- 102,114 Check cashing fees, royalties and other -- 5,721 2,919 8,640 --------- -------- ------ --------- Total revenue 342,948 77,464 2,919 423,331 Cost of revenue - disposed merchandise 127,757 -- -- 127,757 --------- -------- ------ --------- Net revenue 215,191 77,464 2,919 295,574 --------- -------- ------ --------- Expenses Operations 123,046 38,199 1,051 162,296 Cash advance loss provision 11,469 20,436 -- 31,905 Administration 19,032 12,041 851 31,924 Depreciation and amortization 11,566 5,279 242 17,087 --------- -------- ------ --------- Total expenses 165,113 75,955 2,144 243,212 --------- -------- ------ --------- Income from operations $50,078 $1,509 $775 $52,362 ========= ======== ====== ========= See Note above regarding the revised methodology of allocating the aggregate administrative expenses to the operating segments. CONTACT: Cash America International, Inc., Fort Worth Thomas A. Bessant, Jr., 817-335-1100 -----END PRIVACY-ENHANCED MESSAGE-----