Cash America Earnings Exceed Expectations in the Second Quarter and Dividend Declared

FORT WORTH, Texas--(BUSINESS WIRE)--July 23, 2009--Cash America International, Inc. (NYSE: CSH) reported that its net income for the second quarter ended June 30, 2009 was $16,607,000 (54 cents per share) and that it exceeded the top of its previously released expectations of its earnings per share for the second quarter of 2009. Lower losses on cash advance loans and rising pawn loan demand led to the improvement in earnings compared to expectations. Management had also projected that its earnings in the second quarter of 2009 would be below the prior year primarily due to regulatory changes impacting earnings in certain cash advance markets which contributed significant earnings in the prior year and because many of the Company’s customers would be without the economic stimulus checks issued by the Federal Government in the second quarter of 2008. The second quarter 2008 earnings were $20,137,000 (67 cents per share).

Total revenue during the second quarter of 2009 was $252.4 million, up slightly from $248.0 million in the second quarter of 2008, due to a 25% increase in finance and service charges on pawn loan balances year over year which offset lower levels of cash advance fees compared to the second quarter of 2008. Although revenue from merchandise disposition activities in the second quarter of 2009 achieved a nominal increase over the second quarter of 2008, lower gross profit margins contributed to a slight decrease in consolidated net revenue, which was consistent with expectations.

Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “The recovery of pawn loan balances during the second quarter contributed to the Company exceeding our initial expectations. In addition, our efforts to moderate bad debt expense through more careful underwriting instituted late in 2008 led to lower losses on loans in our cash advance portfolio through the first half of fiscal 2009. Both of these factors are positive elements as we enter the final six months of 2009. We are also encouraged by increases in loan volume in our storefront cash advance business which has been challenged by lower yields due to regulatory changes in 2008 and 2009. It appears that we will have the opportunity to benefit from sustained loan demand to contribute to a successful second half of the year.”

For the first six months of fiscal year 2009, total revenue increased 4% to $520.5 million compared to $498.9 million for the same period in 2008. Cash America posted net income of $40,518,000 ($1.33 per share) for the first six months of fiscal year 2009 compared to $45,948,000 ($1.53 per share) for the same period in 2008.

Cash America will host a conference call to discuss the second quarter results on Thursday, July 23, at 7:45 AM CDT. A live web cast of the call will be available on the Investor Relations section of the Company’s corporate web site (http://www.cashamerica.com). To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. A replay will be available on the Company’s web site for 90 days following the conference call.

Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid at the close of business on August 19, 2009 to shareholders of record on August 5, 2009.

Management believes that the opportunities for growth in revenue and earnings will be largely associated with the customer demand for the credit products provided by the Company, which take the form of pawn loans and short-term cash advances, and consumer spending on retail sales of unredeemed collateral. Other elements expected to affect the growth in revenue include the regulatory governance of loan products and the development and growth of new markets for the Company’s online distribution channel for cash advance products, as well as the continued growth of its pawn operations in Mexico. As the Company enters the third quarter of 2009, management anticipates that demand for the Company’s lending products will continue to be strong. Management believes that the revenue challenges facing the cash advance product, including the regulatory changes impacting markets that were profitable in 2008, such as Pennsylvania, Florida, Minnesota and Ohio, will become less of a factor in year over year comparisons in the second half of the year if loan demand increases for the cash advance product. Based on its views and on the preceding factors management expects the third quarter 2009 net income per share to be between 70 and 75 cents per share compared to 63 cents per share in the third quarter of 2008. In addition, management has decided to modify its full year 2009 estimates to a range of between $3.00 and $3.15 per share, compared to $2.70 per share in fiscal 2008.

As of June 30, 2009, Cash America International, Inc. had 1,023 total locations offering specialty financial services to consumers, including 647 pawn lending locations (including 15 unconsolidated franchised units), consisting of 501 locations operating in 22 states in the United States under the names Cash America Pawn and SuperPawn, and 146 pawn lending locations, of which the Company is a majority owner, operating in 18 jurisdictions in central and southern Mexico under the name “Prenda Fácil.” In addition, the Company owns 248 cash advance storefront locations operating in six states in the United States under the names Cash America Payday Advance and Cashland, and 123 franchised and five company-owned check cashing centers operating in 16 states in the United States under the name “Mr. Payroll.” Additionally, as of June 30, 2009, the Company offered short-term cash advances over the Internet to customers in 32 states in the United States at http://www.cashnetusa.com, as well as in the United Kingdom at http://www.quickquid.co.uk and in Australia at http://www.dollarsdirect.com.au. The Company also owns a card services business that processes cash advances on behalf of a third-party lender with balances outstanding in all 50 states and two other jurisdictions in the United States.

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

This release contains forward-looking statements about the business, financial condition and prospects of Cash America International, Inc. and its subsidiaries (the “Company”). The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including, without limitation, changes in pawn, consumer credit, tax and other laws and governmental rules and regulations applicable to the Company's business, changes in demand for the Company's services, the continued acceptance of the online distribution channel by the Company’s cash advance customers, the actions of third parties who offer products and services to or for the Company, fluctuations in the price of gold, changes in competition, the ability of the Company to open new operating units in accordance with its plans, economic conditions, real estate market fluctuations, interest rate fluctuations, changes in foreign currency exchange rates, changes in the capital markets, the ability to successfully integrate newly acquired businesses into the Company’s operations, the loss of services of any of our executive officers, the effect of any current or future litigation proceedings on the Company, the effect of any of such changes on the Company’s business or the markets in which we operate and other risks and uncertainties indicated in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date of this release.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)

	June 30,						December 31,
	2009			2008			2008
	(Unaudited)

Assets
Current assets:
Cash and cash equivalents	$	26,323		$	29,963		$	30,005
Pawn loans		176,313			142,211			168,747
Cash advances, net		89,810			85,492			83,850
Merchandise held for disposition, net		102,164			96,807			109,493
Finance and service charges receivable		33,314			27,009			33,063
Income taxes recoverable		-			-			2,606
Other receivables and prepaid expenses		17,169			14,297			15,480
Deferred tax assets		21,644			22,271			22,037
Total current assets		466,737			418,050			465,281
Property and equipment, net		187,343			172,785			185,887
Goodwill		493,848			403,886			494,192
Intangible assets, net		30,454			21,423			35,428
Other assets		8,243			7,545			5,722
Total assets	$	1,186,625		$	1,023,689		$	1,186,510

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	66,534		$	62,908		$	79,759
Accrued supplemental acquisition payment		-			56,000			47,064
Customer deposits		9,778			8,673			8,814
Income taxes currently payable		1,324			2,284			-
Current portion of long-term debt		14,306			8,500			15,810
Total current liabilities		91,942			138,365			151,447
Deferred tax liabilities		38,763			23,421			27,575
Noncurrent income tax payable		4,059			-			3,050
Other liabilities		3,602			2,025			2,359
Long-term debt		415,491			323,146			422,344
Total liabilities		553,857			486,957			606,775

Stockholders’ equity:
Cash America International, Inc. equity:
Common stock, $.10 par value per share, 80,000,000 shares authorized, 30,235,164 shares issued		3,024			3,024			3,024
Additional paid-in capital		168,197			162,977			160,007
Retained earnings		478,706			407,086			440,252
Accumulated other comprehensive loss		608			(1	)		(3,964	)
Treasury shares, at cost (815,842 shares, 1,222,742 shares and 818,772 shares at June 30, 2009 and 2008 at December 31, 2008, respectively		(23,256	)		(36,354	)		(24,278	)
Total Cash America International, Inc. stockholders’ equity		627,279			536,732			575,041
Noncontrolling interest		5,489			-			4,694
Total stockholders' equity		632,768			536,732			579,735
Total liabilities and stockholders’ equity	$	1,186,625		$	1,023,689		$	1,186,510

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2009		2008				2009		2008
		(Unaudited)

Revenue
Finance and service charges	$	54,280		$	43,390		$	107,239		$	86,811
Proceeds from disposition of merchandise		110,173			108,089			239,933			224,672
Cash advance fees		84,602			92,849			164,910			178,309
Check cashing fees, royalties and other		3,326			3,651			8,391			9,121
Total Revenue		252,381			247,979			520,473			498,913
Cost of Revenue
Disposed merchandise		71,534			66,741			154,036			138,257
Net Revenue		180,847			181,238			366,437			360,656
Expenses
Operations		86,882			80,529			172,413			161,254
Cash advance loss provision		29,178			34,733			53,952			61,867
Administration		22,194			20,555			43,659			38,511
Depreciation and amortization		10,393			9,527			20,734			18,658
Total Expenses		148,647			145,344			290,758			280,290
Income from Operations		32,200			35,894			75,679			80,366
Interest expense		(5,086	)		(3,204	)		(10,155	)		(6,713	)
Interest income		4			76			19			107
Foreign currency transaction gain (loss)		267			(68	)		131			(72	)
Income before Income Taxes		27,385			32,698			65,674			73,688
Provision for income taxes		10,566			12,561			24,629			27,740
Net Income		16,819			20,137			41,045			45,948
Less: Net income attributable to the noncontrolling interest		(212	)		-			(527	)		-
Net Income Attributable to Cash America International, Inc.	$	16,607		$	20,137		$	40,518		$	45,948
Earnings Per Share:
Net Income attributable to Cash America International, Inc. common stockholders:
Basic	$	0.56		$	0.69		$	1.36		$	1.57
Diluted	$	0.54		$	0.67		$	1.33		$	1.53
Weighted average common shares outstanding:
Basic		29,804			29,326			29,785			29,348
Diluted		30,515			30,094			30,467			30,103
Dividends declared per common share	$	0.035		$	0.035		$	0.070		$	0.070

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA
($ in thousands unless otherwise noted)

	Three Months Ended			Six months ended
	June 30,			June 30,
	2009	2008		2009	2008
Location statistics

Pawn segment locations in operation – ^(f)
Beginning of period, owned	613	485		598	485
Acquired	-	1		1	1
Start-ups	19	1		33	1
End of period, owned	632	487		632	487
Franchise locations at end of period ^(a)	15	14		15	14
Total pawn lending locations at end of period ^{(a) (f)}	647	501		647	501
Average number of owned pawn lending locations ^{(a) (f)}	622	486		613	485

Cash advance segment locations in operation (excludes online lending and card services) –
Beginning of period	248	304		248	304
Combined or closed	-	(12	)	-	(12	)
End of period	248	292		248	292
Average number of cash advance locations	248	300		248	301

Check cashing segment locations –
Company-owned locations at end of period	5	5		5	5
Franchised locations at end of period ^(a)	123	130		123	130
Total check cashing centers in operation at end of period ^(a)	128	135		128	135
Combined total of all locations at end of period ^(a)	1,023	928		1,023	928

Services offered by locations

Pawn lending –
Pawn lending segment:
Domestic	486	487		486	487
Foreign ^(f)	146	-		146	-
Franchise – domestic ^(a)	15	14		15	14
Combined pawn lending segment ^(f)	647	501		647	501
Cash advance segment – storefront operations	111	-		111	-
Total locations offering pawn lending ^{(a) (f)}	758	501		758	501

Cash advances –
Cash advance segment – storefront operations	248	292		248	292
Pawn lending segment – domestic	431	432		431	432
Total locations offering cash advances	679	724		679	724

Check cashing –
Check cashing segment
Company-owned locations	5	5		5	5
Franchised locations ^(a)	123	130		123	130
Total check cashing segment ^(a)	128	135		128	135
Cash advance segment – storefront operations	248	292		248	292
Pawn lending segment – domestic	381	387		381	387
Total locations offering check cashing ^(a)	757	814		757	814

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA
($ in thousands unless otherwise noted)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2009			2008			2009			2008
Market coverage
Market coverage for pawn lending segment at end of period
States in the U.S.		22			22			22			22
Foreign countries ^(f)		1			-			1			-
Market coverage for cash advance segment at end of period
States and other jurisdictions in the U.S.
Storefront		6			7			6			7
Online		32			33			32			33
Card services		52			-			52			-
Foreign countries
Online		2			1			2			1
Pawn Lending Activities
Annualized yield on pawn loans -
Pawn lending segment:
Domestic		133.2	%		129.3	%		133.1	%		131.0	%
Foreign ^(f)		145.3	%		-	%		151.1	%		-	%
Combined pawn lending segment ^(f)		134.6	%		129.3	%		135.1	%		131.0	%
Cash advance segment – storefront operations		114.8	%		-	%		104.2	%		-	%
Combined annualized yield on pawn loans ^(f)		134.5	%		129.3	%		135.0	%		131.0	%
Amount of pawn loans written and renewed -
Pawn lending segment:
Domestic	$	159,088		$	149,347		$	295,120		$	281,328
Foreign ^(f)		19,305			-			26,226			-
Combined pawn lending segment ^(f)	$	178,393		$	149,347		$	321,346		$	281,328
Cash advance segment – storefront operations		1,161			-			1,233			-
Combined amount of pawn loans written and renewed ^(f)	$	179,554		$	149,347		$	322,579		$	281,328
Average pawn loan balance outstanding -
Pawn lending segment:
Domestic	$	142,239		$	135,014		$	142,021		$	133,239
Foreign ^(f)		19,113			-			17,871			-
Combined pawn lending segment ^(f)	$	161,352		$	135,014		$	159,892		$	133,239
Cash advance segment – storefront operations		531			-			304			-
Combined average pawn loan balance outstanding ^(f)	$	161,883		$	135,014		$	160,196		$	133,239
Ending pawn loan balance -
Pawn lending segment:
Domestic	$	154,583		$	142,211		$	154,583		$	142,211
Foreign ^(f)		20,728			-			20,728			-
Combined pawn lending segment ^(f)	$	175,311		$	142,211		$	175,311		$	142,211
Cash advance segment – storefront operations		1,002			-			1,002			-
Combined ending pawn loan balance per location offering pawn loans ^(f)	$	176,313		$	142,211		$	176,313		$	142,211
Ending pawn loan balance per location offering pawn loans --
Pawn lending segment :
Domestic	$	318		$	292		$	318		$	292
Foreign ^(f)	$	142		$	-		$	142		$	-
Combined pawn lending segment ^(f)	$	277		$	292		$	277		$	292
Cash advance segment - storefront operations	$	9		$	-		$	9		$	-
Combined ending pawn loan balance per location offering pawn loans ^(f)	$	237		$	292		$	237		$	292

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA
($ in thousands unless otherwise noted)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2009			2008			2009			2008
Average pawn loan amount at end of period (not in thousands) -
Pawn lending segment:
Domestic	$	120		$	119		$	120		$	119
Foreign ^(f)	$	102		$	-		$	102		$	-
Combined pawn lending segment ^(f)	$	117		$	119		$	117		$	119
Cash advance segment – storefront operations	$	100		$	-		$	100		$	-
Combined average pawn loan amount at end of period ^(f)	$	117		$	119		$	117		$	119

Disposition of merchandise – domestic –
Profit margin on disposition of merchandise
Pawn lending segment – domestic		35.1	%		38.3	%		35.8	%		38.5	%
Cash advance segment – storefront operations		34.9			-			34.2			-
Combined profit margin on disposition of merchandise		35.1	%		38.3	%		35.8	%		38.5	%

Disposition of merchandise - pawn lending segment – domestic -
Average annualized merchandise turnover		2.8	x		2.8	x		3.0	x		2.9	x
Average balance of merchandise held for disposition per average	$	204		$	194		$	211		$	198
location in operation	$	204		$	194		$	211		$	198
Ending balance of merchandise held for disposition per location in	$	209		$	199		$	209		$	199
operation	$	209		$	199		$	209		$	199

Cash advance activities

Amount of cash advances written --
Funded by the Company
Cash advance segment:
Storefront	$	150,788		$	150,004		$	288,545		$	303,066
Internet lending		176,082			188,595			335,546			348,516
Total cash advance segment	$	326,870		$	338,599		$	624,091		$	651,582
Pawn lending segment - domestic		14,086			14,182			27,966			28,129
Combined funded by the Company	$	340,956		$	352,781		$	652,057		$	679,711

Funded by third-party lenders ^{(a) (b) (e)}
Cash advance segment:
Storefront	$	20,499		$	25,113		$	40,613		$	50,677
Internet lending		116,190			115,185			222,353			213,728
Card services ^(e)		25,878			-			45,665			-
Total cash advance segment	$	162,567		$	140,298		$	308,631		$	264,405
Pawn lending segment - domestic		30,368			37,779			61,132			75,775
Combined funded by third-party lenders ^{(a) (b) (e)}	$	192,935		$	178,077		$	369,763		$	340,180

Aggregate amount of cash advances written - ^{(a) (c)}
Cash advance segment:
Storefront	$	171,287		$	175,117		$	329,158		$	353,743
Internet lending		292,272			303,780			557,899			562,244
Card services ^(e)		25,878			-			45,665			-
Total cash advance segment	$	489,437		$	478,897		$	932,722		$	915,987
Pawn lending segment - domestic		44,454			51,961			89,098			103,904
Combined aggregate amount of cash advances written^{(a) (c)}	$	533,891		$	530,858		$	1,021,820		$	1,019,891

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA
($ in thousands unless otherwise noted)

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2009		2008		2009		2008
Number of cash advances written (not in thousands) –
Funded by the Company
Cash advance segment:
Storefront		341,393		426,605		651,253		845,202
Internet lending		431,162		441,466		824,340		830,882
Total cash advance segment		772,555		868,071		1,475,593		1,676,084
Pawn lending segment – domestic		43,289		45,595		85,124		90,741
Combined by the Company		815,844		913,666		1,560,717		1,766,825
Funded by third-party lenders ^{(a) (b) (e)}
Cash advance segment:
Storefront		34,494		45,347		68,472		91,056
Internet lending		159,807		175,634		303,228		324,581
Card services ^(e)		174,541		-		299,701		-
Total cash advance segment		368,842		220,981		671,401		415,637
Pawn lending segment - domestic		57,243		81,309		114,125		161,698
Combined by third-party lenders ^{(a) (b) (e)}		426,085		302,290		785,526		577,335
Aggregate number of cash advances written - ^{(a) (c)}
Cash advance segment:
Storefront		375,887		471,952		719,725		936,258
Internet lending		590,969		617,100		1,127,568		1,155,463
Card services ^(e)		174,541		-		299,701		-
Total cash advance segment		1,141,397		1,089,052		2,146,994		2,091,721
Pawn lending segment - domestic		100,532		126,904		199,249		252,439
Combined aggregate number of cash advances written ^{(a) (c)}		1,241,929		1,215,956		2,346,243		2,344,160
Cash advance customer balances (gross):
Owned by Company ^(d)
Cash advance segment:
Storefront	$	39,740	$	41,470	$	39,740	$	41,470
Internet lending		60,855		64,207		60,855		64,207
Card services ^(e)		5,245		-		5,245		-
Total cash advance segment	$	105,840	$	105,677	$	105,840	$	105,677
Pawn lending segment - domestic		6,133		7,216		6,133		7,216
Combined owned by the Company ^{(d) (e)}	$	111,973	$	112,893	$	111,973	$	112,893
Owned by third-party lenders ^{(a) (b)}
Cash advance segment :
Storefront	$	3,912	$	4,368	$	3,912	$	4,368
Internet lending		23,497		21,187		23,497		21,187
Card services ^(e)		686		-		686		-
Total cash advance segment	$	28,095	$	25,555	$	28,095	$	25,555
Pawn lending segment - domestic		6,277		7,205		6,277		7,205
Combined owned by third-party lenders ^{(a) (b)}	$	34,372	$	32,760	$	34,372	$	32,760
Aggregate cash advance customer balances (gross) - ^{(a) (c)}
Cash advance segment:
Storefront	$	43,652	$	45,838	$	43,652	$	45,838
Internet lending		84,352		85,394		84,352		85,394
Card services ^(e)		5,931		-		5,931		-
Total cash advance segment	$	133,935	$	131,232	$	133,935	$	131,232
Pawn lending segment - domestic		12,410		14,421		12,410		14,421
Combined aggregate cash advance customer balances (gross) ^{(a) (c)}	$	146,345	$	145,653	$	146,345	$	145,653

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
FINANCIAL AND OPERATING DATA
($ in thousands unless otherwise noted)

		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2009			2008			2009			2008

Average amount per cash advance written (not in thousands) -
Funded by the Company
Cash advance segment:
Storefront	$	442		$	352		$	443		$	359
Internet lending	$	408		$	427		$	407		$	419
Total cash advance segment	$	423		$	390		$	423		$	389
Pawn lending segment - domestic	$	325		$	311		$	329		$	310
Combined by the Company	$	418		$	386		$	418		$	385

Funded by third-party lenders ^{(a) (b)}
Cash advance segment
Storefront	$	594		$	554		$	593		$	557
Internet lending	$	727		$	656		$	733		$	658
Card services	$	148		$	-		$	152		$	-
Total cash advance segment	$	441		$	635		$	460		$	636
Pawn lending segment - domestic	$	531		$	465		$	536		$	469
Combined by third-party lenders ^{(a) (b)}	$	453		$	589		$	471		$	589

Aggregate average amount per cash advance written - ^{(a) (c)}
Cash advance segment:
Storefront	$	456		$	371		$	457		$	378
Internet lending	$	495		$	492		$	495		$	487
Card services ^(e)	$	148		$	-		$	152		$	-
Total cash advance segment	$	429		$	440		$	434		$	438
Pawn lending segment - domestic	$	442		$	409		$	447		$	412
Combined aggregate average amount per cash advance written ^{(a) (c)}	$	430		$	437		$	436		$	435

Check cashing

Face amount of checks cashed -
Company-owned locations:
Check cashing segment	$	5,470		$	7,542		$	12,173		$	15,216
Cash advance segment		29,562			45,402			91,701			111,191
Pawn lending segment		5,311			8,405			13,388			20,261
Combined company-owned locations		40,343			61,349			117,262			146,668
Franchised locations - check cashing segment ^(a)		237,459			310,073			561,357			672,209
Combined face amount of checks cashed ^(a)	$	277,802		$	371,422		$	678,619		$	818,877

Fees collected from customers -
Company-owned locations:
Check cashing segment	$	71		$	102		$	183		$	224
Cash advance segment		734			1,099			2,326			3,115
Pawn lending segment		90			146			256			383
Combined company-owned locations		895			1,347			2,765			3,722
Franchised locations - check cashing segment ^(a)		3,322			4,297			8,138			9,667
Combined fees collected from customers ^(a)	$	4,217		$	5,644		$	10,903		$	13,389

Fees as a percentage of checks cashed -
Company-owned locations:
Check cashing segment		1.3	%		1.4	%		1.5	%		1.5	%
Cash advance segment		2.5			2.4			2.5			2.8
Pawn lending segment		1.7			1.7			1.9			1.9
Combined company-owned locations		2.2			2.2			2.4			2.5
Franchised locations - check cashing segment ^(a)		1.4			1.4			1.4			1.4
Combined fees as a percentage of checks cashed ^(a)		1.5	%		1.5	%		1.6	%		1.6	%

^(a)		Non-generally accepted accounting principles accepted in the United States (“GAAP”) presentation. For informational purposes and to provide a greater understanding of the Company’s businesses. Management believes that information provided with this level of detail is meaningful and useful in understanding the activities and business metrics of the Company’s operations. The non-GAAP financial measure is provided immediately following its most comparable GAAP amount and can be reconciled to its most comparable GAAP amount through the presentation of the financial information above.
^(b)		Cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders.
^(c)		Includes (i) cash advances written by the Company, (ii) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, and (iii) cash advances described in footnote (e) below.
^(d)		Amounts recorded in the Company’s consolidated financial statements.
^(e)		Cash advances issued by a third-party lender utilizing the Company as a processor to process these cash advances under a line of credit offered on certain stored-value and payroll cards issued by such lender. The Company acquires a participation interest in the cash advance receivables generated through this program. Cash advance fees associated with the Company’s card services activities include revenue from the Company’s participation interest in the receivables generated by the third party lender, as well as marketing, processing and other miscellaneous fee income. (Note: the Company did not commence business in the card services distribution channel until the third quarter of 2008).
^(f)		Includes Prenda Fácil locations, in which the Company owns an 80% interest.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED CASH ADVANCES OUTSTANDING AND RELATED ALLOWANCE FOR LOSSES
(in thousands)

			June 30,
			2009								2008

Funded by the Company ^(a)
Active cash advances and fees receivable			$	76,404							$		71,590
Cash advances and fees in collection				19,174									29,184
Total funded by the Company ^(a)				95,578									100,774
Funded by third-party lenders ^{(b) (c)}
Active cash advances and fees receivable				38,131									32,760
Cash advances and fees in collection				12,636									12,119
Total funded by third-party lenders ^{(b) (c)}				50,767									44,879
Combined gross portfolio of cash advances and fees receivable ^{(b) (d)}				146,345									145,653
Less: Elimination of cash advances owned by third-party lenders				34,372									32,760
Company-owned cash advances and fees receivable, gross				111,973									112,893
Less: Allowance for losses				22,163									27,401
Cash advances and fees receivable, net			$	89,810							$		85,492

	Three months ended								Six months ended
	June 30,								June 30,
	2009					2008			2009					2008

Allowance for losses for Company-owned cash advances
Balance at beginning of period	$	17,278				$	20,815		$	21,495				$	25,676
Cash advance loss provision		28,641					34,412			54,028					61,386
Charge-offs		(28,215			)		(34,859	)		(63,141		)			(75,681	)
Recoveries		4,459					7,033			9,781					16,020

Balance at end of period	$	22,163				$	27,401		$	22,163				$	27,401

Accrual for third-party lender-owned cash advances

Balance at beginning of period	$	1,522				$	1,988		$	2,135				$	1,828
(Decrease) increase in loss provision		537					321			(76		)			481

Balance at end of period	$	2,059				$	2,309		$	2,059				$	2,309

Combined statistics ^(d)

Combined cash advance loss provision	$	29,178				$	34,733		$	53,952				$	61,867
Charge-offs (net of recoveries)		23,756					27,826			53,360					59,661
Combined cash advance loss provision as a % of combined cash advances written ^(b)		5.5			%		6.5	%		5.3		%			6.1	%
Charge-offs (net of recoveries) as a % of combined cash advances written ^(b)		4.4			%		5.2	%		5.2		%			5.8	%
Combined allowance for losses and accrued third-party lender losses as a % of combined gross portfolio ^(b)		16.6			%		20.4	%		16.6		%			20.4	%

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED JUNE 30, 2009 AND 2008
(in thousands)

		Pawn		Cash		Check
		Lending ⁽¹⁾		Advance ⁽²⁾		Cashing		Consolidated

Three Months Ended June 30, 2009
Revenue
Finance and service charges	$	54,128	$	152	$	-	$	54,280
Proceeds from disposition of merchandise		107,857		2,316		-		110,173
Cash advance fees		7,229		77,373		-		84,602
Check cashing fees, royalties and other		917		1,755		654		3,326
Total revenue		170,131		81,596		654		252,381
Cost of revenue – disposed merchandise		70,026		1,508		-		71,534
Net revenue		100,105		80,088		654		180,847
Expenses
Operations		58,089		28,514		279		86,882
Cash advance loss provision		1,494		27,684		-		29,178
Administration		10,963		10,984		247		22,194
Depreciation and amortization		7,109		3,221		63		10,393
Total expenses		77,655		70,403		589		148,647
Income from operations	$	22,450	$	9,685	$	65	$	32,200

As of June 30, 2009
Total assets	$	746,926	$	433,242	$	6,457	$	1,186,625
Goodwill	$	209,283	$	279,255	$	5,310	$	493,848


		Pawn		Cash
		Lending ⁽¹⁾		Advance ⁽²⁾		Check Cashing		Consolidated

Three Months Ended June 30, 2008
Revenue
Finance and service charges	$	43,390	$	-	$	-	$	43,390
Proceeds from disposition of merchandise		108,089		-		-		108,089
Cash advance fees		8,645		84,204		-		92,849
Check cashing fees, royalties and other		985		1,828		838		3,651
Total revenue		161,109		86,032		838		247,979
Cost of revenue – disposed merchandise		66,741		-		-		66,741
Net revenue		94,368		86,032		838		181,238
Expenses
Operations		52,493		27,727		309		80,529
Cash advance loss provision		2,677		32,056		-		34,733
Administration		10,882		9,338		335		20,555
Depreciation and amortization		5,939		3,527		61		9,527
Total expenses		71,991		72,648		705		145,344
Income from operations	$	22,377	$	13,384	$	133	$	35,894

As of June 30, 2008
Total assets	$	610,568	$	406,255	$	6,866	$	1,023,689
Goodwill	$	144,003	$	254,573	$	5,310	$	403,886

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(in thousands)

		Pawn		Cash		Check
		Lending ⁽¹⁾		Advance ⁽²⁾		Cashing		Consolidated
Six Months Ended June 30, 2009
Revenue
Finance and service charges	$	107,082	$	157	$	-	$	107,239
Proceeds from disposition of merchandise		235,859		4,074		-		239,933
Cash advance fees		14,807		150,103		-		164,910
Check cashing fees, royalties and other		1,953		4,852		1,586		8,391
Total revenue		359,701		159,186		1,586		520,473

Cost of revenue – disposed merchandise		151,355		2,681		-		154,036
Net revenue		208,346		156,505		1,586		366,437
Expenses
Operations		115,685		56,114		614		172,413
Cash advance loss provision		2,716		51,236		-		53,952
Administration		22,713		20,457		489		43,659
Depreciation and amortization		14,206		6,382		146		20,734
Total expenses		155,320		134,189		1,249		290,758
Income from operations	$	53,026	$	22,316	$	337	$	75,679


		Pawn		Cash		Check
		Lending ⁽¹⁾		Advance ⁽²⁾		Cashing		Consolidated

Six Months Ended June 30, 2008
Revenue
Finance and service charges	$	86,811	$	-	$	-	$	86,811
Proceeds from disposition of merchandise		224,672		-		-		224,672
Cash advance fees		17,930		160,379		-		178,309
Check cashing fees, royalties and other		1,998		5,265		1,858		9,121
Total revenue		331,411		165,644		1,858		498,913
Cost of revenue – disposed merchandise		138,257		-		-		138,257
Net revenue		193,154		165,644		1,858		360,656
Expenses
Operations		106,404		54,158		692		161,254
Cash advance loss provision		4,942		56,925		-		61,867
Administration		21,554		16,409		548		38,511
Depreciation and amortization		11,530		7,003		125		18,658
Total expenses		144,430		134,495		1,365		280,290
Income from operations	$	48,724	$	31,149	$	493	$	80,366

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED JUNE 30, 2009 AND 2008
(in thousands)
						Total Pawn
		Domestic		Foreign		Lending

Three Months Ended June 30, 2009
Revenue
Finance and service charges	$	47,221	$	6,907	$	54,128
Proceeds from disposition of merchandise		107,857		-		107,857
Cash advance fees		7,229		-		7,229
Check cashing fees, royalties and other		852		65		917
Total revenue		163,159		6,972		170,131
Cost of revenue – disposed merchandise		70,026		-		70,026
Net revenue		93,133		6,972		100,105
Expenses
Operations		54,962		3,127		58,089
Cash advance loss provision		1,494		-		1,494
Administration		9,389		1,574		10,963
Depreciation and amortization		6,206		903		7,109
Total expenses		72,051		5,604		77,655
Income from operations	$	21,082	$	1,368	$	22,450


						Total Pawn
		Domestic		Foreign		Lending

Three Months Ended June 30, 2008
Revenue
Finance and service charges	$	43,390	$	-	$	43,390
Proceeds from disposition of merchandise		108,089		-		108,089
Cash advance fees		8,645		-		8,645
Check cashing fees, royalties and other		985		-		985
Total revenue		161,109		-		161,109
Cost of revenue – disposed merchandise		66,741		-		66,741
Net revenue		94,368		-		94,368
Expenses
Operations		52,493		-		52,493
Cash advance loss provision		2,677		-		2,677
Administration		10,882		-		10,882
Depreciation and amortization		5,939		-		5,939
Total expenses		71,991		-		71,991
Income from operations	$	22,377	$	-	$	22,377

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(in thousands)

						Total Pawn
		Domestic		Foreign		Lending

Six Months Ended June 30, 2009
Revenue
Finance and service charges	$	93,712	$	13,370	$	107,082
Proceeds from disposition of merchandise		235,859		-		235,859
Cash advance fees		14,807		-		14,807
Check cashing fees, royalties and other		1,819		134		1,953
Total revenue		346,197		13,504		359,701
Cost of revenue – disposed merchandise		151,355		-		151,355
Net revenue		194,842		13,504		208,346
Expenses
Operations		110,147		5,538		115,685
Cash advance loss provision		2,716		-		2,716
Administration		19,659		3,054		22,713
Depreciation and amortization		12,475		1,731		14,206
Total expenses		144,997		10,323		155,320
Income from operations	$	49,845	$	3,181	$	53,026


						Total Pawn
		Domestic		Foreign		Lending

Six Months Ended June 30, 2008
Revenue
Finance and service charges	$	86,811	$	-	$	86,811
Proceeds from disposition of merchandise		224,672		-		224,672
Cash advance fees		17,930		-		17,930
Check cashing fees, royalties and other		1,998		-		1,998
Total revenue		331,411		-		331,411
Cost of revenue – disposed merchandise		138,257		-		138,257
Net revenue		193,154		-		193,154
Expenses
Operations		106,404		-		106,404
Cash advance loss provision		4,942		-		4,942
Administration		21,554		-		21,554
Depreciation and amortization		11,530		-		11,530
Total expenses		144,430		-		144,430
Income from operations	$	48,724	$	-	$	48,724

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
THREE MONTHS ENDED JUNE 30, 2009 AND 2008
(in thousands)

⁽²⁾The Cash Advance segment is composed of three distribution channels - a multi-unit “storefront” platform, an online, internet based lending platform, and a card services business. The following tables summarize the results from each channel’s contributions to the Cash Advance segment for the three and six months ended June 30, 2009 and 2008:

				Internet		Card		Total Cash
Three Months Ended June 30, 2009		Storefront		Lending		Services		Advance
Revenue
Finance and service charges	$	152	$	-	$	-	$	152
Proceeds from disposition of merchandise		2,316		-		-		2,316
Cash advance fees		20,101		54,854		2,418		77,373
Check cashing fees, royalties and other		1,365		388		2		1,755
Total revenue		23,934		55,242		2,420		81,596
Cost of revenue – disposed merchandise		1,508		-		-		1,508
Net revenue		22,426		55,242		2,420		80,088
Expenses
Operations		14,830		12,893		791		28,514
Cash advance loss provision		3,064		23,519		1,101		27,684
Administration		2,511		8,283		190		10,984
Depreciation and amortization		1,352		1,735		134		3,221
Total expenses		21,757		46,430		2,216		70,403
Income from operations	$	669	$	8,812	$	204	$	9,685

				Internet		Card		Total Cash
Three Months Ended June 30, 2008		Storefront		Lending		Services		Advance
Revenue
Cash advance fees	$	27,427	$	56,777	$	-	$	84,204
Check cashing fees, royalties and other		1,824		4		-		1,828
Total revenue		29,251		56,781		-		86,032
Expenses
Operations		16,993		10,734		-		27,727
Cash advance loss provision		6,664		25,392		-		32,056
Administration		2,939		6,399		-		9,338
Depreciation and amortization		2,380		1,147		-		3,527
Total expenses		28,976		43,672		-		72,648
Income from operations	$	275	$	13,109	$	-	$	13,384

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INCOME FROM OPERATIONS BY OPERATING SEGMENT
SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(in thousands)

				Internet		Card		Total Cash
Six Months Ended June 30, 2009		Storefront		Lending		Services		Advance
Revenue
Finance and service charges	$	157	$	-	$	-	$	157
Proceeds from disposition of merchandise		4,074		-		-		4,074
Cash advance fees		39,235		106,610		4,258		150,103
Check cashing fees, royalties and other		4,252		596		4		4,852
Total revenue		47,718		107,206		4,262		159,186

Cost of revenue – disposed merchandise		2,681		-		-		2,681
Net revenue		45,037		107,206		4,262		156,505
Expenses
Operations		30,198		24,194		1,722		56,114
Cash advance loss provision		5,726		43,671		1,839		51,236
Administration		4,630		15,540		287		20,457
Depreciation and amortization		2,787		3,345		250		6,382
Total expenses		43,341		86,750		4,098		134,189
Income from operations	$	1,696	$	20,456	$	164	$	22,316

				Internet		Card		Total Cash
Six Months Ended June 30, 2008		Storefront		Lending		Services		Advance
Revenue
Cash advance fees	$	56,120	$	104,259	$	-	$	160,379
Check cashing fees, royalties and other		5,261		4		-		5,265
Total revenue		61,381		104,263		-		165,644
Expenses
Operations		33,874		20,284		-		54,158
Cash advance loss provision		11,010		45,915		-		56,925
Administration		5,341		11,068		-		16,409
Depreciation and amortization		4,805		2,198		-		7,003
Total expenses		55,030		79,465		-		134,495
Income from operations	$	6,351	$	24,798	$	-	$	31,149

In addition to the financial information prepared in conformity with accounting principles generally accepted in the United States (“GAAP”), the Company provides historical non GAAP financial information. Each non-GAAP financial measure included in the Company’s consolidated financial statements has been indicated by footnote. Each non-GAAP financial measure is provided immediately following its most comparable GAAP amount.

Management uses the non-GAAP financial measures for internal managerial purposes and believes that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of the Company’s operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of our business that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business.

Management provides non-GAAP financial information for informational purposes and to enhance understanding of the Company’s GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of, the Company’s financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
INVENTORY AND GROSS PROFIT OPERATING DATA
THREE MONTHS ENDED JUNE 30, 2009 AND 2008

The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.7 million and $1.9 million, respectively, at June 30, 2009 and 2008 (dollars in thousands).

	2009				2008
		Amount	%			Amount	%

Merchandise held for 1 year or less –
Jewelry	$	66,882	65.0	%	$	64,917	65.8	%
Other merchandise		27,948	27.2			25,539	25.8

Total merchandise held for 1 year or less		94,830	92.2			90,456	91.6
Merchandise held for more than 1 year –
Jewelry		5,080	4.9			5,232	5.3
Other merchandise		2,954	2.9			3,019	3.1

Total merchandise held for more than 1 year		8,034	7.8			8,251	8.4

Total merchandise held for disposition	$	102,864	100.0	%	$	98,707	100.0	%

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.quickquid.co.uk	http://www.dollarsdirect.com.au
	http://www.strikegoldnow.com	http://www.cashlandloans.com

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS
(in thousands, except per share data)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2009		2008			2009		2008
Consolidated Operations:
Total revenue	$	252,381	$	247,979	$	520,473	$	498,913
Net revenue		180,847		181,238		366,437		360,656
Total operating expenses		148,647		145,344		290,758		280,290
Income from operations	$	32,200	$	35,894	$	75,679	$	80,366
Income before income taxes		27,385		32,698		65,674		73,688
Net Income	$	16,819	$	20,137	$	41,045	$	45,948
Less: Net income attributable to the noncontrolling interest		(212)		-	$	(527)	$	-
Net Income Attributable to Cash America International, Inc.	$	16,607	$	20,137	$	40,518	$	45,948

Earnings per share:
Net Income attributable to Cash America International, Inc. common stockholders:
Basic	$	0.56	$	0.69	$	1.36	$	1.57
Diluted	$	0.54	$	0.67	$	1.33	$	1.53
Weighted average shares:
Basic		29,804		29,326		29,785		29,348
Diluted		30,515		30,094		30,467		30,103

^(a)		Cash advances written by the Company for its own account in pawn locations, cash advance locations, and through the internet distribution channel.
^(b)		Non-GAAP presentation. For informational purposes and to provide a greater understanding of the Company’s businesses. Management believes that information provided with this level of detail is meaningful and useful in understanding the activities and business metrics of the Company’s operations. Each non-GAAP financial measure is provided immediately following its most comparable GAAP amount and can be reconciled to its most comparable GAAP amount through the presentation of the financial information above.
^(c)		Cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn locations, cash advance locations and through the internet distribution channel.
^(d)		Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn and cash advance locations and through the Company’s internet distribution channel.

⁽¹⁾		The Pawn Lending segment is composed of the Company’s domestic pawn lending operations and its foreign pawn lending operations in Mexico operating under the name “Prenda Fácil”. The following tables summarize the results from each channel’s contributions to the Pawn Lending segment for the three and six months ended June 30, 2009 and 2008 (the average exchange rate of MXP to USD was 13.308 and 13.926 for the three and six month periods):