-----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, TpWyfRFJL5NZrAjQCPd6LvEQNvSE3ymnN/te34XcZU39YwlkGC8aqNO5GIS6uEsY pvjBEuyX7U8ocTmC3YZPYA== 0001157523-07-000639.txt : 20070126 0001157523-07-000639.hdr.sgml : 20070126 20070125182312 ACCESSION NUMBER: 0001157523-07-000639 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070125 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070126 DATE AS OF CHANGE: 20070125 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: 07554213 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 a5319063.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): January 25, 2007 CASH AMERICA INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Texas 1-9733 75-2018239 (State of incorporation) (Commission File No.) (IRS Employer 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 January 25, 2007, Cash America International, Inc. (the "Company") announced its consolidated financial results for the fourth quarter ended December 31, 2006 and announced that it was increasing its quarterly dividend from $.025 to $.035 per share. A copy of the Company's earnings news release is furnished as Exhibit 99.1 to this report; a copy of the Company's dividend announcement is furnished as Exhibit 99.2. Each is incorporated herein by reference. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS (c) Exhibits - The following exhibits ar furnished pursuant to the disclosures included under Item 2.02 of this report on Form 8-K. 99.1 Earnings news release dated January 25, 2007, issued by Cash America International, Inc. 99.2 Dividend news release dated January 25, 2007, 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: January 25, 2007 By: /s/ J. Curtis Linscott ---------------------------- J. Curtis Linscott Executive Vice President, General Counsel & Secretary EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Earnings news release dated January 25, 2007, issued by Cash America International, Inc. 99.2 Dividend news release dated January 25, 2007, issued by Cash America International, Inc. EX-99.1 2 a5319063ex991.txt CASH AMERICA INTERNATIONAL, INC. EXHIBIT 99.1 Exhibit 99.1 Cash America Completes 2006 with an Increase in Fourth Quarter Earnings of 32% FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 25, 2007--Cash America International, Inc. (NYSE:CSH) announced today that income from continuing operations for the fourth quarter ended December 31, 2006 increased 32% to $21,698,000 (71 cents per share) compared to $16,456,000 (55 cents per share) for the same period in 2005. Total revenue for the fourth quarter 2006 increased 26% to $215.4 million, up from $171.0 million during the same period in 2005. The year-over-year gain in total revenue was largely attributable to an 80% increase in short-term cash advance fees to $71,870,000 in the fourth quarter 2006 compared to $39,954,000 during the same period in 2005. Higher balances of cash advances extended to customers and the inclusion of CashNetUSA which was acquired on September 15, 2006 contributed to the significant rise in revenue from cash advance fees. Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, "Our Company continues to see increased levels of customer demand for both our pawn loans and cash advance services. The increase in these asset levels is driving the revenue of the Company higher and we are beginning to see the benefits as our operating income rose 32% in the fourth quarter over last year's fourth quarter. Consolidated net revenue from same stores increased 8.3% in the fourth quarter of 2006 compared to the same quarter last year, led by a 24% increase in same store net revenue in our cash advance segment, which combined with a same store net revenue increase of 6% in our pawn segment to produce the consolidated results." Total revenue for the fiscal year ended December 31, 2006, was $693.2 million, up 17% from $594.3 million in 2005. Cash America finished fiscal year 2006 with 36% increase in income from continuing operations to $60,940,000 ($2.00 per share) for the twelve-month period compared to $44,821,000 ($1.48 per share) in fiscal 2005. Included in the 2006 total was an after-tax gain of 5 cents per share related to the early termination of a store lease in the second quarter. Excluding the 5 cent gain, income from continuing operations was up 33% to $59,531,000 ($1.95 cents per share) from the previous year. Cash America will host a conference call to discuss the fourth quarter results on Thursday, January 25th at 3:45 p.m. CST. A live webcast 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 15 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. Outlook for the First Quarter of 2007 and the 2007 Fiscal Year Management believes that the opportunities for sustained 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. Other elements expected to affect the growth in revenue include the ongoing maturation of the 233 additional pawn and cash advance locations opened or acquired during the last 36 months, the regulatory governance of consumer loan products and the integration of CashNetUSA. As it enters the first quarter of 2007, management anticipates that demand for the Company's products will remain strong, but also believes that trends in tax refunds received by the Company's customers during the first quarter will have a meaningful impact on the first quarter results. Typically the Company's customers who receive refunds use those proceeds to pay past due cash advance obligations, to redeem pawned merchandise and to purchase merchandise at the Company's locations. Based on its views and on the preceding factors management expects that the first quarter 2007 net income per share will be between 60 and 64 cents per share compared to 51 cents per share in the first quarter 2006. Expectations for the remainder of fiscal 2007 will be affected by the magnitude of personal income tax refunds for many of the Company's customers and the subsequent recovery of earning asset levels in later periods based on customer demand for credit products. At this time, management is increasing the lower end of its previously reported expectations for full fiscal year 2007 earnings per share producing a new expected range of $2.45 and $2.55, compared to $1.95 per share from continuing operations in fiscal 2006. The fiscal 2006 comparable full year income from continuing operations excludes 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 of fiscal 2006. Cash America International, Inc. is a provider of specialty financial services to individuals in the United States with 918 total locations. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 487 locations in 22 states under the brand names Cash America Pawn and SuperPawn. The Company also offers short-term cash advances in many of its locations including 295 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 136 franchised and Company-owned "Mr. Payroll" check cashing centers. For additional information, visit the Company's website located at http://www.cashamerica.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, 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 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 Year Ended December 31, December 31, ------------------- ------------------- 2006 2005 2006 2005 --------- --------- --------- --------- Consolidated Operations: Total revenue $215,393 $171,015 $693,214 $594,346 Net revenue $152,373 $114,973 $488,285 $410,547 Total operating expenses $115,080 $ 86,623 $384,266 $329,835 Income from operations $ 37,293 $ 28,350 $104,019 $ 80,712 Income from continuing operations before income taxes $ 33,838 $ 25,775 $ 96,168 $ 70,882 Income from Continuing Operations $ 21,698 $ 16,456 $ 60,940 $ 44,821 Income from Discontinued Operations (1) $ - $ 197 $ - $ 197 Net Income $ 21,698 $ 16,653 $ 60,940 $ 45,018 Earnings per share: Basic - Income from continuing operations $ 0.73 $ 0.56 $ 2.05 $ 1.53 Net income $ 0.73 $ 0.57 $ 2.05 $ 1.54 Diluted - Income from continuing operations $ 0.71 $ 0.55 $ 2.00 $ 1.48 Net income $ 0.71 $ 0.55 $ 2.00 $ 1.49 Weighted average shares: Basic 29,750 29,252 29,676 29,262 Diluted 30,561 30,169 30,532 30,206 - ----------------------- (1) The 2005 income from discontinued operations represents the tax benefits resulting from final tax adjustments to the 2004 foreign operations in tax returns. The foreign pawn lending operations in United Kingdom and Sweden were sold on September 7, 2004. CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) December 31, ------------------- 2006 2005 --------- --------- Assets Current assets: Cash and cash equivalents $ 25,723 $ 18,852 Pawn loans 127,384 115,280 Cash advances, net 79,975 40,704 Merchandise held for disposition, net 87,060 72,683 Finance and service charges receivable 25,377 22,048 Other receivables and prepaid expenses 16,128 13,406 Deferred tax assets 16,324 11,274 --------- --------- Total current assets 377,971 294,247 Property and equipment, net 119,261 94,856 Goodwill 239,650 174,987 Intangible assets, net 27,477 23,391 Other assets 13,036 11,167 --------- --------- Total assets $777,395 $598,648 ========= ========= Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ 92,368 $ 37,217 Customer deposits 7,464 6,239 Income taxes currently payable 2,691 1,449 Current portion of long-term debt 16,786 16,786 --------- --------- Total current liabilities 119,309 61,691 Deferred tax liabilities 12,770 11,344 Other liabilities 1,625 1,689 Long-term debt 202,963 149,208 --------- --------- Total liabilities 336,667 223,932 --------- --------- Stockholders' equity: Common stock, 30,235,164 shares issued 3,024 3,024 Additional paid-in capital 161,683 156,557 Retained earnings 287,962 229,975 Accumulated other comprehensive income (loss) 20 (5) Notes receivable secured by common stock (18) (2,488) Treasury shares, at cost (11,943) (12,347) --------- --------- Total stockholders' equity 440,728 374,716 --------- --------- Total liabilities and stockholders' equity $777,395 $598,648 ========= ========= CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) Three Months Ended Year Ended December 31, December 31, ------------------- ------------------- 2006 2005 2006 2005 --------- --------- --------- --------- (Unaudited) Revenue Finance and service charges $ 40,425 $ 37,296 $149,472 $139,772 Proceeds from disposition of merchandise 100,313 91,401 335,552 301,502 Cash advance fees 71,870 39,954 195,105 142,068 Check cashing fees, royalties and other 2,785 2,364 13,085 11,004 --------- --------- --------- --------- Total Revenue 215,393 171,015 693,214 594,346 Cost of Revenue Disposed merchandise 63,020 56,042 204,929 183,799 --------- --------- --------- --------- Net Revenue 152,373 114,973 488,285 410,547 --------- --------- --------- --------- Expenses Operations 68,707 58,061 245,885 220,357 Cash advance loss provision 26,825 10,929 59,563 42,834 Administration 12,038 11,303 51,506 43,227 Depreciation and amortization 7,510 6,330 27,312 23,417 --------- --------- --------- --------- Total Expenses 115,080 86,623 384,266 329,835 --------- --------- --------- --------- Income from Operations 37,293 28,350 104,019 80,712 Interest expense (3,935) (2,996) (11,945) (10,610) Interest income 429 387 1,631 1,614 Foreign currency transaction gain (loss) 51 34 296 (834) Gain from termination of contract - - 2,167 - --------- --------- --------- --------- Income from Continuing Operations before Income Taxes 33,838 25,775 96,168 70,882 Provision for income taxes 12,140 9,319 35,228 26,061 --------- --------- --------- --------- Income from Continuing Operations 21,698 16,456 60,940 44,821 Income from discontinued operations - 197 - 197 --------- --------- --------- --------- Net Income $ 21,698 $ 16,653 $ 60,940 $ 45,018 ========= ========= ========= ========= Earnings Per Share: Basic - Income from continuing operations $ 0.73 $ 0.56 $ 2.05 $ 1.53 Income from discontinued operations $ - $ 0.01 $ - $ 0.01 Net income $ 0.73 $ 0.57 $ 2.05 $ 1.54 Diluted - Income from continuing operations $ 0.71 $ 0.55 $ 2.00 $ 1.48 Income from discontinued operations $ - $ 0.01 $ - $ 0.01 Net income $ 0.71 $ 0.55 $ 2.00 $ 1.49 Weighted average common shares outstanding: Basic 29,750 29,252 29,676 29,262 Diluted 30,561 30,169 30,532 30,206 Dividends declared per common share $ 0.025 $ 0.025 $ 0.100 $ 0.100 CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA -- CONTINUING OPERATIONS ($ in thousands unless noted otherwise) Three Months Ended Year Ended December 31, December 31, ------------------- ------------------- 2006 2005 2006 2005 --------- --------- --------- --------- PAWN LENDING OPERATIONS: Pawn loans Annualized yield on pawn loans 122.7 % 123.7 % 123.6 % 124.8 % Total amount of pawn loans written and renewed $116,876 $108,424 $474,046 $438,955 Average pawn loan balance outstanding $130,713 $119,655 $120,930 $112,031 Average pawn loan balance per average location in operation $ 279 $ 263 $ 262 $ 251 Ending pawn loan balance per location in operation $ 268 $ 253 $ 268 $ 253 Average pawn loan amount at end of period (not in thousands) $ 107 $ 95 $ 107 $ 95 Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise 37.2 % 38.7 % 38.9 % 39.0 % Average annualized merchandise turnover 2.8x 2.9x 2.7 x 2.7 x Average balance of merchandise held for disposition per average location in operation $ 188 $ 166 $ 165 $ 151 Ending balance of merchandise held for disposition per location in operation $ 183 $ 159 $ 183 $ 159 Pawnshop locations in operation - Beginning of period, owned 463 453 456 441 Acquired 12 3 19 9 Start-ups - - 2 7 Combined or closed - - (2) (1) --------- --------- --------- --------- End of period, owned 475 456 475 456 Franchise locations at end of period 12 8 12 8 --------- --------- --------- --------- Total pawnshop locations at end of period 487 464 487 464 ========= ========= ========= ========= Average number of owned pawnshop locations 469 455 462 447 ========= ========= ========= ========= Cash advances (b) Pawn locations offering cash advances at end of period 425 441 425 441 Average number of pawn locations offering cash advances 422 436 425 430 Amount of cash advances written at pawn locations: Funded by the Company $ 17,839 $ 17,773 $ 66,952 $ 64,184 Funded by third-party lenders (a) (d) 56,059 56,128 207,732 211,191 --------- --------- --------- --------- Aggregate amount of cash advances written at pawn locations(a) (f) $ 73,898 $ 73,901 $274,684 $275,375 ========= ========= ========= ========= Number of cash advances written at pawn locations (not in thousands): By the Company 58,922 41,889 213,467 223,639 By third-party lenders (a) (d) 124,998 157,678 480,649 574,442 --------- --------- --------- --------- Aggregate number of cash advances written at pawn locations(a) (f) 183,920 199,567 694,116 798,081 ========= ========= ========= ========= Cash advance customer balances due at pawn locations (gross): Owned by Company (c) $ 8,448 $ 9,657 $ 8,448 $ 9,657 Owned by third-party lenders (a) 11,202 9,697 11,202 9,697 --------- --------- --------- --------- Aggregate cash advance customer balances due at pawn locations (gross) (a) (f) $ 19,650 $ 19,354 $ 19,650 $ 19,354 ========= ========= ========= ========= CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA -- CONTINUING OPERATIONS (Continued) ($ in thousands unless noted otherwise) Three Months Ended Year Ended December 31, December 31, --------------------- ----------------------- 2006 2005 2006 2005 ----------- --------- ----------- ----------- CASH ADVANCE OPERATIONS (e): Amount of cash advances written: Funded by the Company $ 303,041 $149,818 $ 750,234 $ 509,732 Funded by third-party lenders (a) (d) 48,850 37,780 152,845 145,228 ----------- --------- ----------- ----------- Aggregate amount of cash advances written (a) (f) $ 351,891 $187,598 $ 903,079 $ 654,960 =========== ========= =========== =========== Number of cash advances written (not in thousands): By the Company 821,265 419,308 2,097,176 1,442,816 By third-party lenders (a) (d) 94,717 80,820 298,831 347,772 ----------- --------- ----------- ----------- Aggregate number of cash advances written (a) (f) 915,982 500,128 2,396,007 1,790,588 =========== ========= =========== =========== Cash advance customer balances due (gross): Owned by the Company (c) $ 91,040 $ 37,706 $ 91,404 $ 37,706 Owned by third-party lenders (a) 13,485 7,215 13,485 7,215 ----------- --------- ----------- ----------- Aggregate cash advance customer balances due (gross) (a) (f) $ 104,525 $ 44,921 $ 104,525 $ 44,921 =========== ========= =========== =========== Cash advance locations in operation: Beginning of period 293 279 286 253 Acquired - - - 1 Start-ups 2 7 12 34 Combined or closed - - (3) (2) ----------- --------- ----------- ----------- End of period 295 286 295 286 =========== ========= =========== =========== Average number of cash advance locations 295 283 290 271 =========== ========= =========== =========== CONSOLIDATED CASH ADVANCE PRODUCT SUMMARY (a) (b) (e): Amount of cash advances written: Funded by the Company $ 320,880 $167,591 $ 817,186 $ 573,916 Funded by third-party lenders (a) (d) 104,909 93,908 360,577 356,419 ----------- --------- ----------- ----------- Aggregate amount of cash advances written (a) (f) $ 425,789 $261,499 $1,177,763 $ 930,335 =========== ========= =========== =========== Number of cash advances written (not in thousands): By the Company 880,187 461,197 2,310,643 1,666,455 By third-party lenders (a) (d) 219,715 238,498 779,480 922,214 ----------- --------- ----------- ----------- Aggregate number of cash advances written (a) (f) 1,099,902 699,695 3,090,123 2,588,669 =========== ========= =========== =========== Average amount per cash advance written (not in thousands): Funded by the Company $ 365 $ 363 $ 354 $ 344 Funded by third-party lenders (a) (d) 477 394 463 386 ----------- --------- ----------- ----------- Aggregate average amount per cash advance (a) (f) $ 387 $ 374 $ 381 $ 359 =========== ========= =========== =========== Cash advance customer balances due (gross): Owned by the Company (c) $ 99,488 $ 47,363 $ 99,488 $ 47,363 Owned by third-party lenders (a) 24,687 16,912 24,687 16,912 ----------- --------- ----------- ----------- Aggregate cash advance customer balances due (gross) (a) (f) $ 124,175 $ 64,275 $ 124,175 $ 64,275 =========== ========= =========== =========== Total locations offering cash advances at end of year 720 727 720 727 Average total locations offering cash advances 715 701 715 701 CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA -- CONTINUING OPERATIONS (Continued) ($ in thousands unless noted otherwise) Three Months Ended Year Ended December 31, December 31, ------------------- ----------------------- 2006 2005 2006 2005 --------- --------- ----------- ----------- CHECK CASHING OPERATIONS (Mr. Payroll): Centers in operation at end of year: Company-owned locations 5 5 5 5 Franchised locations (a) 131 131 131 131 --------- --------- ----------- ----------- Combined centers in operations at end of year (a) 136 136 136 136 ========= ========= =========== =========== Revenue from Company- owned locations $ 127 $ 132 $ 569 $ 565 Revenue from franchise royalties and other 718 768 3,356 3,254 --------- --------- ----------- ----------- Total revenue (c) $ 845 $ 900 $ 3,925 $ 3,819 ========= ========= =========== =========== Face amount of checks cashed: Company-owned locations $ 9,254 $ 9,713 $ 38,446 $ 38,699 Franchised locations (a) 300,762 301,177 1,269,724 1,181,682 --------- --------- ----------- ----------- Combined face amount of check cashed (a) $310,016 $310,890 1,308,170 $1,220,381 ========= ========= =========== =========== Fees collected from customers: Company-owned locations (c) $ 127 $ 132 $ 569 $ 565 Franchised locations (a) 4,115 4,112 17,889 16,399 --------- --------- ----------- ----------- Combined fees collected from customers (a) $ 4,242 $ 4,244 $ 18,458 $ 16,964 ========= ========= =========== =========== Fees as a percentage of check cashed: Company-owned locations 1.4 % 1.4 % 1.5 % 1.5 % Franchised locations (a) 1.4 1.4 1.4 1.4 --------- --------- ----------- ----------- Combined fees as a percentage of check cashed (a) 1.4 % 1.4 % 1.4 % 1.4 % ========= ========= =========== =========== Average check cashed (not in thousands): Company-owned locations $ 371 $ 375 $ 393 $ 386 Franchised locations (a) 405 383 421 386 --------- --------- ----------- ----------- Combined average check cashed (a) $ 404 $ 382 $ 420 $ 386 ========= ========= =========== =========== - ----------------------- (a) Non-GAAP presentation. For informational purposes and to provide a greater understanding of the Company's businesses. Management believes information provided with this level of detail is meaningful and useful in understanding the activities and business metrics of the Company's operations. (b) Includes cash advance activities at the Company's pawn lending locations. (c) Amounts recorded in the Company's consolidated financial statements. (d) Cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders. (e) Includes cash advance activities at the Company's cash advance locations and through the Company's Internet distribution channel. (f) Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders. CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED CASH ADVANCES OUTSTANDING AND RELATED ALLOWANCE FOR LOSSES (in thousands) December 31, ------------------ 2006 2005 --------- -------- Funded by the Company (b) Active cash advances and fees receivable $ 69,489 $32,207 Cash advances and fees in collection 24,499 7,510 --------- -------- Total funded by the Company (b) 93,988 39,717 --------- -------- Funded by third-party lenders (a) (c) Active cash advances and fees receivable 24,721 19,548 Cash advances and fees in collection 5,466 5,010 --------- -------- Total funded by third-party lenders (a) (c) 30,187 24,558 --------- -------- Combined gross portfolio (a) (c) 124,175 64,275 Less: Elimination of cash advances owned by third-party lenders 24,687 16,912 Less: Discount on cash advances assigned by third-party lenders - 350 --------- -------- Company-owned cash advances and fees receivable, gross 99,488 47,013 Less: Allowance for losses 19,513 6,309 --------- -------- Cash advances and fees receivable, net $ 79,975 $40,704 ========= ======== Three Months Ended Year Ended December 31, December 31, ------------------- ------------------- 2006 2005 2006 2005 --------- --------- --------- --------- Allowance for company-owned cash advances Balance at beginning of period $ 11,089 $ 10,002 $ 6,309 $ 4,358 Cash advance loss provision 26,425 10,882 59,284 42,302 Charge-offs (20,351) (17,454) (56,276) (50,145) Recoveries 2,350 2,879 10,196 9,794 --------- --------- --------- --------- Balance at end of period $ 19,513 $ 6,309 $ 19,513 $ 6,309 ========= ========= ========= ========= Accrual for third-party lender-owned cash advances Balance at beginning of period $ 753 $ 827 $ 874 $ 342 (Decrease) increase in loss provision 400 47 279 532 --------- --------- --------- --------- Balance at end of period $ 1,153 $ 874 $ 1,153 $ 874 ========= ========= ========= ========= Combined statistics (d) Combined cash advance loss provision $ 26,825 $ 10,929 $ 59,563 $ 42,834 ========= ========= ========= ========= Combined cash advance loss provision as a % of combined cash advances written (a) 6.3 % 4.2 % 5.1 % 4.6 % ========= ========= ========= ========= Charge-offs (net of recoveries) as a % of combined cash advances written (a) 4.2 % 5.6 % 3.9 % 4.3 % ========= ========= ========= ========= Combined allowance for losses and accrued third- party lender losses as a % of combined gross portfolio (a) 16.6 % 11.2 % 16.6 % 11.2 % ========= ========= ========= ========= - --------------------------- (a) Non-GAAP presentation. For informational purposes and to provide a greater understanding of the Company's businesses. Management believes information provided with this level of detail is meaningful and useful in understanding the activities and business metrics of the Company's operations. (b) Cash advances written by the Company in its pawn and cash advance locations and through the Company's Internet distribution channel. (c) Cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, all at the Company's pawn and cash advance locations and through the Company's Internet distribution channel. (d) Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, all at the Company's pawn and cash advance locations and through the Company's Internet distribution channel. CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM CONTINUING OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED DECEMBER 31, 2006 AND 2005 (in thousands) Pawn Cash Check Lending Advance Cashing Consolidated --------- --------- ---------- ------------ Three Months Ended December 31, 2006: - -------------------------- Revenue Finance and service charges $ 40,425 $ - $ - $ 40,425 Proceeds from disposition of merchandise 100,313 - - 100,313 Cash advance fees 11,783 60,087 - 71,870 Check cashing fees, royalties and other - 1,940 845 2,785 --------- --------- ---------- ------------ Total revenue 152,521 62,027 845 215,393 Cost of revenue - disposed merchandise 63,020 - - 63,020 --------- --------- ---------- ------------ Net revenue 89,501 62,027 845 152,373 --------- --------- ---------- ------------ Expenses Operations 45,979 22,405 323 68,707 Cash advance loss provision 3,836 22,989 - 26,825 Administration 5,103 6,622 313 12,038 Depreciation and amortization 5,011 2,384 115 7,510 --------- --------- ---------- ------------ Total expenses 59,929 54,400 751 115,080 --------- --------- ---------- ------------ Income from operations $ 29,572 $ 7,627 $ 94 $ 37,293 ========= ========= ========== ============ As of December 31, 2006: - -------------------------- Total assets $545,593 $224,282 $ 7,520 $ 777,395 ========= ========= ========== ============ Three Months Ended December 31, 2005: - -------------------------- Revenue Finance and service charges $ 37,296 $ - $ - $ 37,296 Proceeds from disposition of merchandise 91,401 - - 91,401 Cash advance fees 11,034 28,920 - 39,954 Check cashing fees, royalties and other - 1,464 900 2,364 --------- --------- ---------- ------------ Total revenue 139,731 30,384 900 171,015 Cost of revenue - disposed merchandise 56,042 - - 56,042 --------- --------- ---------- ------------ Net revenue 83,689 30,384 900 114,973 --------- --------- ---------- ------------ Expenses Operations 44,226 13,507 328 58,061 Cash advance loss provision 4,194 6,735 - 10,929 Administration 6,719 4,284 300 11,303 Depreciation and amortization 4,220 2,020 90 6,330 --------- --------- ---------- ------------ Total expenses 59,359 26,546 718 86,623 --------- --------- ---------- ------------ Income from operations $ 24,330 $ 3,838 $ 182 $ 28,350 ========= ========= ========== ============ As of December 31, 2005: - -------------------------- Total assets $475,527 $115,778 $ 7,343 $ 598,648 ========= ========= ========== ============ CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM CONTINUING OPERATIONS BY OPERATING SEGMENT YEAR ENDED DECEMBER 31, 2006 AND 2005 (in thousands) Pawn Cash Check Lending Advance Cashing Consolidated --------- --------- ------- ------------ Year Ended December 31, 2006: - ----------------------------- Revenue Finance and service charges $149,472 $ - $ - $ 149,472 Proceeds from disposition of merchandise 335,552 - - 335,552 Cash advance fees 43,676 151,429 - 195,105 Check cashing fees, royalties and other - 9,160 3,925 13,085 --------- --------- ------- ------------ Total revenue 528,700 160,589 3,925 693,214 Cost of revenue - disposed merchandise 204,929 - - 204,929 --------- --------- ------- ------------ Net revenue 323,771 160,589 3,925 488,285 --------- --------- ------- ------------ Expenses Operations 178,143 66,438 1,304 245,885 Cash advance loss provision 15,377 44,186 - 59,563 Administration 28,520 21,494 1,492 51,506 Depreciation and amortization 18,579 8,357 376 27,312 --------- --------- ------- ------------ Total expenses 240,619 140,475 3,172 384,266 --------- --------- ------- ------------ Income from operations $ 83,152 $ 20,114 $ 753 $ 104,019 ========= ========= ======= ============ Year Ended December 31, 2005: - ----------------------------- Revenue Finance and service charges $139,772 $ - $ - $ 139,772 Proceeds from disposition of merchandise 301,502 - - 301,502 Cash advance fees 41,405 100,663 - 142,068 Check cashing fees, royalties and other - 7,185 3,819 11,004 --------- --------- ------- ------------ Total revenue 482,679 107,848 3,819 594,346 Cost of revenue - disposed merchandise 183,799 - - 183,799 --------- --------- ------- ------------ Net revenue 298,880 107,848 3,819 410,547 --------- --------- ------- ------------ Expenses Operations 167,272 51,706 1,379 220,357 Cash advance loss provision 15,663 27,171 - 42,834 Administration 25,751 16,325 1,151 43,227 Depreciation and amortization 15,786 7,299 332 23,417 --------- --------- ------- ------------ Total expenses 224,472 102,501 2,862 329,835 --------- --------- ------- ------------ Income from operations $ 74,408 $ 5,347 $ 957 $ 80,712 ========= ========= ======= ============ CONTACT: Cash America International, Inc. Thomas A. Bessant, Jr., 817-335-1100 EX-99.2 3 a5319063ex992.txt CASH AMERICA INTERNATIONAL, INC. EXHIBIT 99.2 Exhibit 99.2 Cash America Declares an Increase in Quarterly Dividend FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 25, 2007--Cash America International, Inc. (NYSE:CSH) reported today that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid to shareholders of record on February 7, 2007 and will be paid at the close of business on February 21, 2007. The newly declared dividend represents a 40% increase in the Company's previous quarterly dividend of $0.025 (2.5 cents) per share paid each quarter since the first quarter of 2005. The Company has consistently paid a quarterly dividend since 1989. The announcement of the increase in dividend comes on the same day that the Company reported that income from continuing operations was up 36% for fiscal year 2006 on a 17% increase in total revenue. Commenting on the board's decision, Daniel R. Feehan, President and Chief Executive Officer said, "We are pleased to provide our shareholders with this increase in dividend, which reflects the benefits of the sustained improvement in the Company's performance over the last year." Cash America International, Inc. is a provider of specialty financial services to individuals in the United States with 918 total locations. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 487 locations in 22 states under the brand names Cash America Pawn and SuperPawn. The Company also offers short-term cash advances in many of its locations including 295 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 136 franchised and Company-owned "Mr. Payroll" check cashing centers. For additional information, visit the Company's website located at http://www.cashamerica.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, 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 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. CONTACT: Cash America International, Inc., Fort Worth Thomas A. Bessant, Jr., 817-335-1100 -----END PRIVACY-ENHANCED MESSAGE-----