EX-99.1 2 a5457497-ex991.txt EXHIBIT 99.1 EXHIBIT 99.1 Cash America Announces Increase in Second Quarter Net Income and Declares Dividend FORT WORTH, Texas--(BUSINESS WIRE)--July 26, 2007--Cash America International, Inc. (NYSE:CSH) reported net income for the second quarter ended June 30, 2007 of $13,209,000 (43 cents per share) compared to $10,913,000 (36 cents per share) for the same period in 2006. Included in the 2006 second quarter earnings, was a $1.4 million after-tax gain (5 cents per share) on the early termination of a store lease. The net income for the second quarter of 2007 included a credit for state and local taxes of $666,000, net of federal income taxes, as a result of a one-time deferred tax benefit created by a change in Texas law during the quarter. Total revenue for the second quarter of 2007 was up 43% to $213.9 million compared to $149.9 million in the prior year period, an increase of $64.0 million. Driving this growth in total revenue was a 121% growth in cash advance fees. Cash advance fees were up $47.5 million, to $86.9 million in the second quarter 2007 up from $39.4 million in the same period in 2006. The strong growth in the cash advance segment was attained by the continued growth of the online distribution channel, new store growth and the continued maturation of cash advance locations more than a year old. Revenue from pawn loans and the sale of merchandise also contributed to the significant gain in total revenue as sales rose 18% and service charges on pawn loans increased 8% in the second quarter of 2007 compared to the prior year. Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America, said, "We continued to see strong growth in revenue during the second quarter of 2007. All aspects of our business experienced increases in revenue led by our expanded balances of cash advance loans which posted the largest portion of the year over year gains in revenue." Mr. Feehan continued, "Consolidated same store net revenue rose 8% reflecting continued gains from our bricks and mortar locations. Same store net revenue in cash advance locations increased 11% year over year for the quarter and our same store net revenue in pawn locations grew 6% in the second quarter compared to the prior year." For the first six months of fiscal year 2007, Cash America generated net income of $32,443,000 ($1.06 per share) compared to $26,301,000 (86 cents per share) in the same period for the prior year. Included in the first half of 2006 is an after-tax gain of $1.4 million (5 cents per share) as described above. The increase in year over year net income for the first six months of 2007 was achieved on a 40% increase in total revenue, which reached $436.8 million in the six months ended June 30, 2007 compared to $312.9 million for the same period in the prior year. Cash America will host a conference call to discuss the second quarter results on Thursday, July 26th at 3:45 PM CDT. A live web cast of the call will be available on the Investor Relations section of the Company's corporate web site (http://www.cashamerica.com). To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. A replay will be available on the Company's web site for 90 days following the conference call. Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid to shareholders of record on August 8, 2007 and will be paid at the close of business on August 22, 2007. Outlook for the Third Quarter of 2007 and Related 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 213 gross additional pawn and cash advance locations opened or acquired during the last 36 months, the regulatory governance of loan products and the development and profitable growth of the Company's online distribution channel for cash advance products. As it enters the third quarter of 2007, management anticipates that demand for the Company's products will remain strong. Based on its views and on the preceding factors management expects that the third quarter 2007 net income per share will be between 52 and 58 cents per share compared to 42 cents per share in the third quarter 2006. Expectations for the remainder of fiscal 2007 will be impacted by earning asset levels in later periods based on customer demand for credit products. At this time, management confirms its previously announced expectation for the full year 2007 earnings per share of between $2.45 and $2.55 compared to $1.95 per share in fiscal 2006. These full year results exclude the $1.4 million after-tax gain in the second quarter of 2006 (5 cents per share after-tax). Cash America International, Inc. is a provider of specialty financial services to individuals in the United States with 928 total locations. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 492 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 296 locations that offer this service under the brand names Cash America Payday Advance and Cashland. Short-term cash advances are also offered over the Internet to customers in the United States and the United Kingdom at http://www.cashnetusa.com and http://www.quickquid.co.uk, respectively. In addition, check cashing services are provided through its 140 franchised and Company-owned "Mr. Payroll" check cashing centers. For additional information regarding the Company and the services it provides, visit the Company's websites located at: http://www.cashamerica.com http://www.cashnetusa.com http://www.cashlandloans.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 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 foreign currency exchange rates, 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 Six Months Ended June 30, June 30, ------------------ ----------------- 2007 2006 2007 2006 --------- -------- -------- -------- Consolidated Operations: Total revenue $ 213,881 $149,928 $436,753 $312,883 Net revenue $ 161,097 $107,042 $322,044 $217,255 Total operating expenses $ 138,063 $ 89,959 $265,012 $173,873 Income from operations $ 23,034 $ 17,083 $ 57,032 $ 43,382 Income before income taxes $ 19,491 $ 17,340 $ 50,203 $ 41,646 Net Income $ 13,209 $ 10,913 $ 32,443 $ 26,301 Earnings per share: Basic $ 0.44 $ 0.37 $ 1.09 $ 0.89 Diluted $ 0.43 $ 0.36 $ 1.06 $ 0.86 Weighted average shares: Basic 29,833 29,732 29,852 29,623 Diluted 30,557 30,569 30,579 30,484 CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) June 30, December 31, ------------------- 2007 2006 2006 --------- --------- ------------ (Unaudited) Assets Current assets: Cash and cash equivalents $ 26,207 $ 17,733 $ 25,723 Pawn loans 131,528 124,514 127,384 Cash advances, net 77,948 39,005 79,975 Merchandise held for disposition, net 83,522 68,787 87,060 Finance and service charges receivable 24,362 21,273 25,377 Other receivables and prepaid expenses 15,740 14,507 16,128 Deferred tax assets 21,722 12,103 16,324 --------- --------- ------------ Total current assets 381,029 297,922 377,971 Property and equipment, net 135,256 103,943 119,261 Goodwill 253,477 175,574 238,499 Intangible assets, net 25,538 21,984 27,477 Other assets 13,024 12,235 13,036 --------- --------- ------------ Total assets $808,324 $611,658 $ 776,244 ========= ========= ============ Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ 68,058 $ 38,303 $ 91,217 Customer deposits 8,388 7,080 7,464 Income taxes currently payable 994 1,989 2,691 Current portion of long-term debt 16,786 16,786 16,786 --------- --------- ------------ Total current liabilities 94,226 64,158 118,158 Deferred tax liabilities 13,368 11,314 12,770 Other liabilities 1,589 1,585 1,625 Long-term debt 232,896 128,515 202,963 --------- --------- ------------ Total liabilities 342,079 205,572 335,516 --------- --------- ------------ Stockholders' equity: Common stock, $.10 par value per share, 80,000,000 shares authorized, 30,235,164 shares issued 3,024 3,024 3,024 Additional paid-in capital 162,620 159,260 161,683 Retained earnings 318,328 254,802 287,962 Accumulated other comprehensive income 8 66 20 Notes receivable secured by common stock (18) (382) (18) Treasury shares, at cost (683,754 shares, 679,143 shares and 565,840 shares at June 30, 2007 and 2006, and December 31, 2006, respectively) (17,717) (10,684) (11,943) --------- --------- ------------ Total stockholders' equity 466,245 406,086 440,728 --------- --------- ------------ Total liabilities and stockholders' equity $808,324 $611,658 $ 776,244 ========= ========= ============ CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, ------------------- ------------------- 2007 2006 2007 2006 --------- --------- --------- --------- (Unaudited) Revenue Finance and service charges $ 37,194 $ 34,588 $ 75,625 $ 69,643 Proceeds from disposition of merchandise 85,808 72,622 185,976 159,746 Cash advance fees 86,947 39,395 165,463 74,834 Check cashing fees, royalties and other 3,932 3,323 9,689 8,660 --------- --------- --------- --------- Total Revenue 213,881 149,928 436,753 312,883 Cost of Revenue Disposed merchandise 52,784 42,886 114,709 95,628 --------- --------- --------- --------- Net Revenue 161,097 107,042 322,044 217,255 --------- --------- --------- --------- Expenses Operations 74,611 59,642 146,977 118,915 Cash advance loss provision 42,328 10,798 75,076 15,235 Administration 13,225 13,016 27,526 26,867 Depreciation and amortization 7,899 6,503 15,433 12,856 --------- --------- --------- --------- Total Expenses 138,063 89,959 265,012 173,873 --------- --------- --------- --------- Income from Operations 23,034 17,083 57,032 43,382 Interest expense (3,996) (2,412) (7,744) (4,848) Interest income 439 389 857 767 Foreign currency transaction gain 14 113 58 178 Gain from termination of contract -- 2,167 -- 2,167 --------- --------- --------- --------- Income before Income Taxes 19,491 17,340 50,203 41,646 Provision for income taxes 6,282 6,427 17,760 15,345 --------- --------- --------- --------- Net Income $ 13,209 $ 10,913 $ 32,443 $ 26,301 ========= ========= ========= ========= Earnings Per Share: Basic $ 0.44 $ 0.37 $ 1.09 $ 0.89 Diluted $ 0.43 $ 0.36 $ 1.06 $ 0.86 Weighted average common shares outstanding: Basic 29,833 29,732 29,852 29,623 Diluted 30,557 30,569 30,579 30,484 Dividends declared per common share $ 0.035 $ 0.025 $ 0.070 $ 0.050 CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES FINANCIAL AND OPERATING DATA ($ in thousands unless otherwise noted) Three Months Ended Six Months Ended June 30, June 30, ------------------- ------------------- 2007 2006 2007 2006 --------- --------- --------- --------- PAWN LENDING OPERATIONS: Pawn loans Annualized yield on pawn loans 121.7% 121.5% 125.4% 125.5% Total amount of pawn loans written and renewed $129,334 $123,974 $239,956 $227,901 Average pawn loan balance outstanding $122,546 $114,186 $121,591 $111,875 Average pawn loan balance per average location in operation $ 256 $ 249 $ 254 $ 245 Ending pawn loan balance per location in operation $ 274 $ 272 $ 274 $ 272 Average pawn loan amount at end of period (not in thousands) $ 105 $ 96 $ 105 $ 96 Profit margin on disposition of merchandise as a percentage of proceeds from disposition of merchandise 38.5% 40.9% 38.3% 40.1% Average annualized merchandise turnover 2.6x 2.6x 2.8x 2.8x Average balance of merchandise held for disposition per average location in operation $ 170 $ 145 $ 175 $ 150 Ending balance of merchandise held for disposition per location in operation $ 174 $ 151 $ 174 $ 151 Pawnshop locations in operation - Beginning of period, owned 477 458 475 456 Acquired 2 -- 3 2 Start-ups 2 -- 3 1 Combined or closed (1) (1) (1) (2) --------- --------- --------- --------- End of period, owned 480 457 480 457 Franchise locations at end of period 12 10 12 10 --------- --------- --------- --------- Total pawnshop locations at end of period 492 467 492 467 ========= ========= ========= ========= Average number of owned pawnshop locations 479 458 478 457 ========= ========= ========= ========= Cash advances (a) Pawn locations offering cash advances at end of period 429 415 429 415 Average number of pawn locations offering cash advances 427 427 426 430 Amount of cash advances written at pawn locations: Funded by the Company $ 16,761 $ 15,827 $ 32,247 $ 30,135 Funded by third-party lenders (b) (d) 46,891 49,907 91,876 94,611 --------- --------- --------- --------- Aggregate amount of cash advances written at pawn locations(b) (f) $ 63,652 $ 65,734 $124,123 $124,746 ========= ========= ========= ========= Number of cash advances written at pawn locations (not in thousands): By the Company 55,164 49,889 105,432 93,029 By third-party lenders (b) (d) 104,730 118,488 202,856 226,475 --------- --------- --------- --------- Aggregate number of cash advances written at pawn locations(b) (f) 159,894 168,377 308,288 319,504 ========= ========= ========= ========= Cash advance customer balances due at pawn locations (gross): Owned by Company (c) $ 8,137 $ 7,585 $ 8,137 $ 7,585 Owned by third-party lenders (b) 9,183 10,157 9,183 10,157 --------- --------- --------- --------- Aggregate cash advance customer balances due at pawn locations (gross) (b) (f) $ 17,320 $ 17,742 $ 17,320 $ 17,742 ========= ========= ========= ========= CASH AMERICA INTERNATIONAL, INC., AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (Continued) ($ in thousands unless otherwise noted) Three Months Ended Six Months Ended June 30, June 30, -------------------- ----------------------- 2007 2006 2007 2006 ----------- -------- ----------- ----------- CASH ADVANCE OPERATIONS (e): Amount of cash advances written: Funded by the Company $ 326,945 $141,244 $ 613,195 $ 262,826 Funded by third-party lenders (b) (d) 113,354 35,760 210,457 69,096 ----------- -------- ----------- ----------- Aggregate amount of cash advances written (b) (f) $ 440,299 $177,004 $ 823,652 $ 331,922 =========== ======== =========== =========== Number of cash advances written (not in thousands): By the Company 883,613 408,379 1,641,879 752,871 By third-party lenders (b) (d) 207,928 70,505 386,028 138,016 ----------- -------- ----------- ----------- Aggregate number of cash advances written (b) (f) 1,091,541 478,884 2,027,907 890,887 =========== ======== =========== =========== Cash advance customer balances due (gross): Owned by the Company (c) $ 101,984 $ 38,961 $ 101,984 $ 38,961 Owned by third-party lenders (b) 20,272 6,979 20,272 6,979 ----------- -------- ----------- ----------- Aggregate cash advance customer balances due (gross) (b) (f) $ 122,256 $ 45,940 $ 122,256 $ 45,940 =========== ======== =========== =========== Cash advance locations in operation (excluding online lending) - Beginning of period 296 286 295 286 Start-ups 1 5 3 8 Combined or closed (1) -- (2) (3) ----------- -------- ----------- ----------- End of period 296 291 296 291 =========== ======== =========== =========== Average number of cash advance locations 296 287 295 288 =========== ======== =========== =========== Number of states with online lending at end of period 30 -- 30 -- CONSOLIDATED CASH ADVANCE PRODUCT SUMMARY (a) (b) (e): Amount of cash advances written: Funded by the Company $ 343,706 $157,071 $ 645,442 $ 292,961 Funded by third-party lenders (b) (d) 160,245 85,667 302,333 163,707 ----------- -------- ----------- ----------- Aggregate amount of cash advances written (b) (f) $ 503,951 $242,738 $ 947,775 $ 456,668 =========== ======== =========== =========== Number of cash advances written (not in thousands): By the Company 938,777 458,268 1,747,311 845,900 By third-party lenders (b) (d) 312,658 188,993 588,884 364,491 ----------- -------- ----------- ----------- Aggregate number of cash advances written (b) (f) 1,251,435 647,261 2,336,195 1,210,391 =========== ======== =========== =========== Average amount per cash advance written (not in thousands): Funded by the Company $ 366 $ 343 $ 369 $ 346 Funded by third-party lenders (b) (d) 513 453 513 449 ----------- -------- ----------- ----------- Aggregate average amount per cash advance (b) (f) $ 403 $ 375 $ 406 $ 377 =========== ======== =========== =========== Cash advance customer balances due (gross): Owned by the Company (c) $ 110,121 $ 46,546 $ 110,121 $ 46,546 Owned by third-party lenders (b) 29,455 17,136 29,455 17,136 ----------- -------- ----------- ----------- Aggregate cash advance customer balances due (gross) (b) (f) $ 139,576 $ 63,682 $ 139,576 $ 63,682 =========== ======== =========== =========== Total locations offering cash advances at end of period (excluding online lending) 725 706 725 706 Average total locations offering cash advances (excluding online lending) 723 714 721 718 Number of states with online lending at end of period 30 -- 30 -- CASH AMERICA INTERNATIONAL, INC., AND SUBSIDIARIES FINANCIAL AND OPERATING DATA (Continued) ($ in thousands unless otherwise noted) Three Months Ended Six Months Ended June 30, June 30, ------------------- ------------------- 2007 2006 2007 2006 --------- --------- --------- --------- CHECK CASHING OPERATIONS (Mr. Payroll): Centers in operation at end of year (not in thousands): Company-owned locations 5 5 5 5 Franchised locations (b) 135 133 135 133 --------- --------- --------- --------- Combined centers in operations at end of year (b) 140 138 140 138 ========= ========= ========= ========= Revenue from Company-owned locations $ 113 $ 135 $ 274 $ 316 Revenue from franchise royalties and other 745 738 1,724 1,708 --------- --------- --------- --------- Total revenue (c) $ 858 $ 873 $ 1,998 $ 2,024 ========= ========= ========= ========= Face amount of checks cashed: Company-owned locations $ 8,212 $ 9,502 $ 17,822 $ 19,995 Franchised locations (b) 299,800 300,910 667,021 666,597 --------- --------- --------- --------- Combined face amount of check cashed (b) $308,012 $310,412 $684,843 $686,592 ========= ========= ========= ========= Fees collected from customers: Company-owned locations (c)$ 113 $ 135 $ 274 $ 316 Franchised locations (b) 4,130 4,145 9,576 9,634 --------- --------- --------- --------- Combined fees collected from customers (b) $ 4,243 $ 4,280 $ 9,850 $ 9,950 ========= ========= ========= ========= Fees as a percentage of check cashed: Company-owned locations 1.4% 1.4% 1.5% 1.6% Franchised locations (b) 1.4 1.4 1.4 1.4 --------- --------- --------- --------- Combined fees as a percentage of check cashed (b) 1.4% 1.4% 1.4% 1.4% ========= ========= ========= ========= Average check cashed (not in thousands): Company-owned locations $ 383 $ 383 $ 406 $ 410 Franchised locations (b) 413 397 454 438 --------- --------- --------- --------- Combined average check cashed (b) $ 412 $ 397 $ 453 $ 437 ========= ========= ========= ========= (a) Includes cash advance activities at the Company's pawn lending locations. (b) 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. (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) June 30, ---------------- 2007 2006 -------- ------- Funded by the Company (b) Active cash advances and fees receivable $ 68,438 $32,016 Cash advances and fees in collection 27,167 7,615 -------- ------- Total funded by the Company (b) 95,605 39,631 -------- ------- Funded by third-party lenders (a) (c) Active cash advances and fees receivable 29,461 18,143 Cash advances and fees in collection 14,510 5,908 -------- ------- Total funded by third-party lenders (a) (c) 43,971 24,051 -------- ------- Combined gross portfolio (a) (d) 139,576 63,682 Less: Elimination of cash advances owned by third- party lenders 29,455 17,136 -------- ------- Company-owned cash advances and fees receivable, gross 110,121 46,546 Less: Allowance for losses 32,173 7,541 -------- ------- Cash advances and fees receivable, net $ 77,948 $39,005 ======== ======= Three Months Ended Six Months Ended June 30, June 30, ------------------ ------------------- 2007 2006 2007 2006 --------- -------- --------- --------- Allowance for company-owned cash advances Balance at beginning of period$ 23,141 $ 3,541 $ 19,513 $ 6,309 Cash advance loss provision 41,758 10,512 74,406 15,218 Charge-offs (36,338) (8,612) (68,850) (19,657) Recoveries 3,612 2,100 7,104 5,671 --------- -------- --------- --------- Balance at end of period $ 32,173 $ 7,541 $ 32,173 $ 7,541 ========= ======== ========= ========= Accrual for third-party lender- owned cash advances Balance at beginning of period$ 1,253 $ 605 $ 1,153 $ 874 Increase in loss provision 570 286 670 17 --------- -------- --------- --------- Balance at end of period $ 1,823 $ 891 $ 1,823 $ 891 ========= ======== ========= ========= Combined statistics (d) Combined cash advance loss provision $ 42,328 $10,798 $ 75,076 $ 15,235 ========= ======== ========= ========= Combined cash advance loss provision as a % of combined cash advances written (a) 8.4% 4.5% 7.9% 3.3% ========= ======== ========= ========= Charge-offs (net of recoveries) as a % of combined cash advances written (a) 6.5% 2.7% 6.5% 3.1% ========= ======== ========= ========= Combined allowance for losses and accrued third-party lender losses as a % of combined gross portfolio (a) 24.4% 13.2% 24.4% 13.2% ========= ======== ========= ========= (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 OPERATIONS BY OPERATING SEGMENT THREE MONTHS ENDED JUNE 30, 2007 AND 2006 (in thousands) Pawn Cash Check Lending Advance Cashing Consolidated -------- -------- ------- ------------ Three Months Ended June 30, 2007: -------------------------------- Revenue Finance and service charges $ 37,194 $-- $-- $ 37,194 Proceeds from disposition of merchandise 85,808 -- -- 85,808 Cash advance fees 9,990 76,957 -- 86,947 Check cashing fees, royalties and other 810 2,264 858 3,932 -------- -------- ------- ------------ Total revenue 133,802 79,221 858 213,881 Cost of revenue - disposed merchandise 52,784 -- -- 52,784 -------- -------- ------- ------------ Net revenue 81,018 79,221 858 161,097 -------- -------- ------- ------------ Expenses Operations 46,583 27,670 358 74,611 Cash advance loss provision 3,725 38,603 -- 42,328 Administration 6,985 5,992 248 13,225 Depreciation and amortization 5,127 2,671 101 7,899 -------- -------- ------- ------------ Total expenses 62,420 74,936 707 138,063 -------- -------- ------- ------------ Income from operations $ 18,598 $ 4,285 $ 151 $ 23,034 ======== ======== ======= ============ As of June 30, 2007: -------------------------------- Total assets $557,180 $244,149 $6,995 $808,324 ======== ======== ======= ============ Goodwill $142,590 $105,577 $5,310 $253,477 ======== ======== ======= ============ Three Months Ended June 30, 2006: -------------------------------- Revenue Finance and service charges $ 34,588 $ -- $ -- $ 34,588 Proceeds from disposition of merchandise 72,622 -- -- 72,622 Cash advance fees 10,282 29,113 -- 39,395 Check cashing fees, royalties and other 616 1,834 873 3,323 -------- -------- ------- ------------ Total revenue 118,108 30,947 873 149,928 Cost of revenue - disposed merchandise 42,886 -- -- 42,886 -------- -------- ------- ------------ Net revenue 75,222 30,947 873 107,042 -------- -------- ------- ------------ Expenses Operations 44,799 14,523 320 59,642 Cash advance loss provision 3,724 7,074 -- 10,798 Administration 7,762 4,686 568 13,016 Depreciation and amortization 4,478 1,936 89 6,503 -------- -------- ------- ------------ Total expenses 60,763 28,219 977 89,959 -------- -------- ------- ------------ Income (loss) from operations $ 14,459 $ 2,728 $ (104) $ 17,083 ======== ======== ======= ============ As of June 30, 2006: -------------------------------- Total assets $489,686 $114,546 $7,426 $611,658 ======== ======== ======= ============ Goodwill $125,646 $ 44,618 $5,310 $175,574 ======== ======== ======= ============ CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT SIX MONTHS ENDED JUNE 30, 2007 AND 2006 (in thousands) Pawn Cash Check Lending Advance Cashing Consolidated -------- -------- ------- ------------ Six Months Ended June 30, 2007: -------------------------------- Revenue Finance and service charges $ 75,625 $ -- $ -- $ 75,625 Proceeds from disposition of merchandise 185,976 -- -- 185,976 Cash advance fees 20,110 145,353 -- 165,463 Check cashing fees, royalties and other 1,740 5,951 1,998 9,689 -------- -------- ------- ------------ Total revenue 283,451 151,304 1,998 436,753 Cost of revenue - disposed merchandise 114,709 -- -- 114,709 -------- -------- ------- ------------ Net revenue 168,742 151,304 1,998 322,044 -------- -------- ------- ------------ Expenses Operations 93,699 52,613 665 146,977 Cash advance loss provision 6,569 68,507 -- 75,076 Administration 16,307 10,694 525 27,526 Depreciation and amortization 10,134 5,097 202 15,433 -------- -------- ------- ------------ Total expenses 126,709 136,911 1,392 265,012 -------- -------- ------- ------------ Income from operations $ 42,033 $ 14,393 $ 606 $ 57,032 ======== ======== ======= ============ Six Months Ended June 30, 2006: -------------------------------- Revenue Finance and service charges $ 69,643 $ -- $ -- $ 69,643 Proceeds from disposition of merchandise 159,746 -- -- 159,746 Cash advance fees 19,930 54,904 -- 74,834 Check cashing fees, royalties and other 1,303 5,333 2,024 8,660 -------- -------- ------- ------------ Total revenue 250,622 60,237 2,024 312,883 Cost of revenue - disposed merchandise 95,628 -- -- 95,628 -------- -------- ------- ------------ Net revenue 154,994 60,237 2,024 217,255 -------- -------- ------- ------------ Expenses Operations 89,016 29,245 654 118,915 Cash advance loss provision 5,607 9,628 -- 15,235 Administration 16,232 9,754 881 26,867 Depreciation and amortization 8,820 3,866 170 12,856 -------- -------- ------- ------------ Total expenses 119,675 52,493 1,705 173,873 -------- -------- ------- ------------ Income from operations $ 35,319 $ 7,744 $ 319 $ 43,382 ======== ======== ======= ============ CONTACT: Cash America International, Inc. Thomas A. Bessant, Jr., 817-335-1100