FORT WORTH, Texas--(BUSINESS WIRE)--July 22, 2010--Cash America International, Inc. (NYSE: CSH) reported that its net income for the second quarter ended June 30, 2010 was up 26% to $20,889,000 (66 cents per share), which compares to the second quarter 2009 net income of $16,607,000 (54 cents per share). Contributing to the increase in earnings was volume growth in the Company’s e-commerce lending segment combined with another quarter of increased earnings and expanded profitability from its pawn lending activities in the United States.

Total revenue during the second quarter of 2010 was $292.1 million, up 16% from $252.4 million in the second quarter of 2009, due in part to a 37% increase in consumer loan fees during the period. Also contributing to the increase in total revenue was a 10% increase in pawn loan fees and service charges and a 3% increase in merchandise sales during the second quarter of 2010 as compared to the same period in 2009. The increase in merchandise sales was achieved with higher gross profit margins, leading to a 12% increase in profit from the sale of merchandise which positively affected earnings for the period.

Revenue from the Company’s consumer loan portfolio, reduced by loan loss provision increased 28%, to $70.9 million in the second quarter of 2010 compared to the prior year as consumer loans written in the quarter were up 35% and consumer loan balances were higher throughout the period. These increases combined with the increase in gross profit on the disposition of merchandise and increased revenue from pawn loans drove consolidated net revenue, net of loan losses, up 17%, to $176.7 million, which led to a 22% increase in income from operations in the second quarter of 2010 compared to the same period in 2009.

Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “Our Company has seen strong operating income growth in the retail services segment, primarily driven by our domestic pawn business, which is rebuilding loan balances following an abnormally high level of pawn redemptions in the first quarter of 2010. Additionally, consumer loan volumes in our e-commerce segment, both domestic and foreign, continue to significantly outpace growth of consumer loan volume in our U.S. storefronts and are building asset levels that should aid future earnings growth.”

For the first six months of fiscal year 2010, total revenue increased 16% to $605.1 million compared to $520.5 million for the same period in 2009. Income from operations through the second quarter of 2010 increased 26% to $95.6 million and Cash America posted a 31% increase in net income to $52,922,000 ($1.67 per share) for the first six months of fiscal year 2010 compared to $40,518,000 ($1.33 per share) for the same period in 2009.

During the second quarter of 2010, the Company renamed its Internet Services Division as the e-commerce Division and realigned its operating segments into two reportable segments: retail services and e-commerce. The retail services segment covers all of the operations of the Company’s Retail Services Division, which is comprised of both domestic and foreign storefront locations that offer pawn lending, consumer loans (formerly referred to as cash advances), check cashing and other ancillary services, and the e-commerce segment covers all of the operations of the Company’s e-commerce Division, which is comprised of the Company’s domestic and foreign online businesses and the Company’s micro line of credit services business (formerly referred to as card services). Certain amounts in the consolidated financial statements for the three and six months ended June 30, 2009 have been reclassified to conform to reflect the current segment structure. These reclassifications have no impact on consolidated results previously reported.

Cash America will host a conference call to discuss the second quarter results on Thursday, July 22, at 7:00 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 following the call.

Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid at the close of business on August 18, 2010 to shareholders of record on August 4, 2010.

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 consumer loans and the disposition of unredeemed collateral by way of consumer spending on retail sales and the commercial sale of refined gold and diamonds. Other elements expected to affect the growth in revenue include the regulatory governance of consumer loan products and the development and growth of new markets for the Company’s e-commerce distribution platforms for consumer lending products, as well as growth of its pawn operations in Mexico. As the Company enters the third quarter of 2010, management anticipates that demand for the Company’s lending products will continue on a similar pace to the one we have experienced in the second quarter of 2010. Based on its views and on the preceding factors management expects the third quarter 2010 net income per share to be between 82 and 88 cents per share compared to 73 cents per share in the third quarter of 2009. In addition, management increases its previously reported expectations for its fiscal year 2010 to a range of between $3.65 and $3.75 per share, compared to $3.17 per share in fiscal 2009.

As of June 30, 2010, Cash America International, Inc. had 1,062 total locations offering specialty financial services to consumers, which include 737 lending locations (including nine unconsolidated franchised locations) operating in 28 states in the United States under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance,” and “Cashland,” 200 pawn lending locations, of which the Company is a majority owner, operating in 21 jurisdictions in central and southern Mexico under the name “Prenda Fácil.” In addition, the Company operated 120 unconsolidated 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, 2010, the Company offered short-term loans over the Internet to customers in 33 states in the United States at http://www.cashnetusa.com, in the United Kingdom at http://www.quickquid.co.uk, in Australia at http://www.dollarsdirect.com.au, and in Canada at http://www.dollarsdirect.ca. The Company also owns a micro-line of credit services business that processes short-term loans on behalf of a third-party lender with balances outstanding in all 50 states and four other United States jurisdictions as of June 30, 2010.

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

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 online loan 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 locations 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 the Company’s 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 the Company operates and other risks and uncertainties indicated in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date of this release.


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

	Three Months Ended							Six Months Ended
	June 30,							June 30,
	2010			2009				2010			2009
					(Unaudited)

Consolidated Operations:
Total revenue	$	292,081		$	252,381		$	605,143		$	520,473
Net revenue		221,664			180,847			444,781			366,437
Total operating expenses		182,526			148,647			349,204			290,758

Income from operations	$	39,138		$	32,200		$	95,577		$	75,679

Income before income taxes		33,846			27,385			84,699			65,674

Net Income	$	20,911		$	16,819		$	52,962		$	41,045

Less: Net income attributable to the noncontrolling interest		(22	)		(212	)	$	(40	)	$	(527	)

Net Income Attributable to Cash America International, Inc.	$	20,889		$	16,607		$	52,922		$	40,518

Earnings per share:

Net Income attributable to Cash America International, Inc. common stockholders:

Basic	$	0.70		$	0.56		$	1.78		$	1.36
Diluted	$	0.66		$	0.54		$	1.67		$	1.33

Weighted average shares:
Basic		29,655			29,804			29,671			29,785
Diluted		31,665			30,515			31,701			30,467


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

		June 30,					December 31,
		2010			2009		2009
		(Unaudited)

Assets
Current assets:
Cash and cash equivalents	$	46,708		$	26,323		$	46,004
Pawn loans		184,104			176,313			188,312
Consumer loans, net		115,295			89,810			108,789
Merchandise held for disposition, net		100,215			102,164			113,824
Pawn loan fees service charges receivable		35,077			33,314			36,544
Prepaid expenses and other assets		50,639			17,169			32,129
Deferred tax assets		25,035			21,644			21,536
Total current assets		557,073			466,737			547,138
Property and equipment, net		196,559			187,343			193,737
Goodwill		513,758			493,848			493,492
Intangible assets, net		25,853			30,454			27,793
Other assets		7,244			8,243			7,495
Total assets	$	1,300,487		$	1,186,625		$	1,269,655

Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	75,058		$	66,534		$	87,368
Accrued supplemental acquisition payment		18,858			-			2,291
Customer deposits		9,535			9,778			8,837
Income taxes currently payable		9,150			1,324			8,699
Current portion of long-term debt		25,493			14,306			25,493
Total current liabilities		138,094			91,942			132,688
Deferred tax liabilities		46,016			38,763			42,590
Noncurrent income tax payable		2,166			4,059			2,009
Other liabilities		7,591			3,602			5,479
Long-term debt		374,044			415,491			403,690
Total liabilities		567,911		$	553,857		$	586,456

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		164,770			168,197			166,761
Retained earnings		583,660			478,706			532,805
Accumulated other comprehensive income		1,785			608			1,181
Treasury shares, at cost (881,003 shares, 815,842 shares and 933,082 shares at June 30, 2010 and 2009, and at December 31, 2009, respectively)

		(27,031	)		(23,256	)		(26,836	)
Total Cash America International, Inc. stockholders’ equity		726,208			627,279			676,935
Noncontrolling interest		6,368			5,489			6,264
Total equity		732,576			632,768			683,199
Total liabilities and equity	$	1,300,487		$	1,186,625		$	1,269,655


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,
		2010			2009			2010			2009
		(Unaudited)

Revenue
Pawn loan fees and service charges	$	59,507		$	54,280		$	117,788		$	107,239
Proceeds from disposition of merchandise		113,850			110,173			255,733			239,933
Consumer loan fees		115,865			84,602			224,307			164,910
Other		2,859			3,326			7,315			8,391
Total Revenue		292,081			252,381			605,143			520,473
Cost of Revenue
Disposed merchandise		70,417			71,534			160,362			154,036
Net Revenue		221,664			180,847			444,781			366,437
Expenses
Operations		101,931			86,395			198,450			171,917
Consumer loan loss provision		44,934			29,178			78,827			53,952
Administration		25,446			22,681			50,994			44,155
Depreciation and amortization		10,215			10,393			20,933			20,734
Total Expenses		182,526			148,647			349,204			290,758
Income from Operations		39,138			32,200			95,577			75,679
Interest expense		(5,406	)		(5,086	)		(10,863	)		(10,155	)
Interest income		151			4			159			19
Foreign currency transaction (loss) gain		(37	)		267			(174	)		131
Income before Income Taxes		33,846			27,385			84,699			65,674
Provision for income taxes		12,935			10,566			31,737			24,629
Net Income		20,911			16,819			52,962			41,045
Less: Net income attributable to the noncontrolling interest		(22	)		(212	)		(40	)		(527	)
Net Income Attributable to Cash America International, Inc.	$	20,889		$	16,607		$	52,922		$	40,518
Earnings Per Share:
Net Income attributable to Cash America International, Inc. common stockholders:
Basic	$	0.70		$	0.56		$	1.78		$	1.36
Diluted	$	0.66		$	0.54		$	1.67		$	1.33
Weighted average common shares outstanding:
Basic		29,655			29,804			29,671			29,785
Diluted		31,665			30,515			31,701			30,467
Dividends declared per common share	$	0.035		$	0.035		$	0.070		$	0.070


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES PAWN OPERATIONS – FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)

The following table outlines certain data related to the Company’s pawn loan activities as of and for the three and six months ended June 30, 2010 and 2009.

		As of June 30,
		2010														2009
Ending pawn loan balances		$	162,104				$	22,000				$	184,104			$	155,585				$	20,728				$	176,313
Ending merchandise balance, net		$	100,215				$	-				$	100,215			$	102,164				$	-				$	102,164

		Three Months Ended June 30,
		2010														2009
		Domestic				Foreign					Total					Domestic				Foreign					Total
Average pawn loan balance outstanding		$	148,998				$	23,039				$	172,037			$	142,770				$	19,113				$	161,883
Amount of pawn loans written and renewed		$	167,939				$	24,950				$	192,889			$	160,249				$	19,305				$	179,554
Annualized yield on pawn loans			137.5		%			146.7		%			138.7		%		133.1		%			145.3		%			134.5	%
Gross profit margin on disposition of merchandise			38.1		%			-					38.1		%		35.1		%			-					35.1	%
Merchandise turnover			2.9					-					2.9				2.8					-					2.8
	Six Months Ended June 30,
	2010															2009
	Domestic					Foreign					Total					Domestic				Foreign					Total
Average pawn loan balance outstanding	$		150,389			$	22,973				$	173,362				$	142,325			$	17,871				$	160,196
Amount of pawn loans written and renewed	$		309,974			$	45,979				$	355,953				$	296,353			$	26,226				$	322,579
Annualized yield on pawn loans			136.7	%			139.1		%			137.0		%			133.0	%			151.1		%			135.0		%
Gross profit margin on disposed merchandise			37.3	%			-					37.3		%			35.8	%			-					35.8		%
Merchandise turnover			3.1				-					3.1					3.0				-					3.0


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES MERCHANDISE DISPOSITION, GROSS PROFIT AND INVENTORY OPERATING DATA (in thousands)

Profit from the disposition of merchandise represents the proceeds received from the disposition of merchandise in excess of the cost of disposed merchandise. Retail sales include the sale of merchandise direct to consumers through any of the Company’s retail services locations. Commercial sales include the sale of refined gold, platinum and diamonds to refiners, brokers or manufacturers. The following table summarizes the proceeds from the disposition of merchandise and the related profit for the three and six months ended June 30, 2010 and 2009.

		Three Months Ended June 30,
		2010													2009

			Retail					Commercial			Total					Retail				Commercial				Total
Proceeds from disposition		$	64,029				$	49,821		$	113,850				$	62,402			$	47,771			$	110,173
Gross profit on disposition		$	26,413				$	17,020		$	43,433				$	25,729			$	12,910			$	38,639
Gross profit margin			41.3		%			34.2	%		38.1		%			41.2		%		27.0		%		35.1		%
Percentage of total gross profit			60.8		%			39.2	%		100.0		%			66.6		%		33.4		%		100.0		%
	Six Months Ended June 30,
	2010															2009

		Retail					Commercial					Total					Retail				Commercial				Total
Proceeds from disposition	$	150,172				$	105,561				$	255,733				$	142,485			$	97,448			$	239,933
Gross profit on disposition	$	59,903				$	35,468				$	95,371				$	57,877			$	28,020			$	85,897
Gross profit margin		39.9		%			33.6			%		37.3		%			40.6		%		28.8		%		35.8		%
Percentage of total gross profit		62.8		%			37.2			%		100.0		%			67.4		%		32.6		%		100.0		%

The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.7 million at June 30, 2010 and 2009 (dollars in thousands).


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)

		As of June 30,
	2010							2009

		Company Owned	Guaranteed by the Company^(a)(b)				Total^(a)(b)		Company Owned	Guaranteed by the Company^(a)(b)				Total^(a)(b)
Ending consumer loan balances:
Retail Services	$	45,008		$	9,536	$	54,544	$	45,873		$	10,189	$	56,062
Internet Lending		88,818			41,477		130,295		60,855			23,497		84,352
MLOC^(c)		18,192			-		18,192		5,245			-		5,245
Total ending loan balance, gross	$	152,018		$	51,013	$	203,031	$	111,973		$	33,686	$	145,659
Less: Allowance for losses		(36,723)			(3,325)		(40,048)		(22,163)			(2,059)		(24,222)
Total ending loan balance, net	$	115,295		$	47,688	$	162,983	$	89,810		$	31,627	$	121,437

		Three Months Ended June 30,
	2010							2009
		Company Owned	Guaranteed by the Company^(a)(b)				Total^(a)(b)		Company Owned	Guaranteed by the Company^(a)(b)				Total^(a)(b)
Amount of consumer loans written:
Retail Services	$	168,919		$	48,147	$	217,066	$	164,874		$	50,867	$	215,741
Internet Lending		208,849			200,239		409,088		176,082			116,190		292,272
MLOC^(c)		92,309			-		92,309		23,290			-		23,290
Total consumer loans written	$	470,077		$	248,386	$	718,463	$	364,246		$	167,057	$	531,303

Average amount per consumer loan:
Retail Services	$	434		$	569	$	458	$	429		$	554	$	453
Internet Lending		407			673		505		408			727		495
MLOC^(c)		198			-		198		148			-		148
Combined	$	344		$	650	$	411	$	374		$	664	$	428

		Six Months Ended June 30,
	2010								2009
		Company Owned	Guaranteed by the Company^(a)(b)				Total^(a)(b)		Company Owned	Guaranteed by the Company^(a)(b)				Total^(a)(b)
Amount of consumer loans written:
Retail Services	$	329,375		$	96,217	$	425,592	$	316,511		$	101,745	$	418,256
Internet Lending		393,503			377,720		771,223		335,546			222,353		557,899
MLOC^(c)		166,898			-		166,898		41,099			-		41,099
Total consumer loans written	$	889,776		$	473,937	$	1,363,713	$	693,156		$	324,098	$	1,017,254

Average amount per consumer loan:
Retail Services	$	437		$	574	$	462	$	430		$	557	$	455
Internet Lending		410			687		511		407			733		495
MLOC^(c)		197			-		197		152			-		152
Combined	$	347		$	661	$	416	$	379		$	667	$	434

(a) Non-Generally Accepted Accounting Principles (“GAAP”) presentation. Management evaluates the consumer loan portfolio on an aggregate basis including the loss provision for the Company-owned and the third-party lender-owned portfolio that the Company guarantees. The non-GAAP financial measure is provided immediately following its most comparable GAAP amount and can be reconciled to its most comparable Generally Accepted Accounting Principles amount through the presentation of the financial information above.

(b) Consumer loans written by third-party lenders that were processed or arranged by the Company on behalf of the third-party lenders at the Company’s retail services locations and through the Company’s internet lending activities in its online channel.

(c) For the micro line of credit (“MLOC”) services channel, the Company purchases a participation interest in receivables originated by a third-party lender; consumer loans written includes only the amount of the Company’s participation interest in these loans.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)

	Three Months Ended							Six Months Ended
	June 30,							June 30,
		2010			2009			2010			2009

Allowance for losses for Company-owned consumer loans:


Balance at beginning of period	$	25,823		$	17,278		$	27,350		$	21,495
Consumer loan loss provision		43,902			28,641			78,446			54,028
Charge-offs		(38,591	)		(28,215	)		(82,833	)		(63,141	)
Recoveries		5,589			4,459			13,760			9,781

Balance at end of period	$	36,723		$	22,163		$	36,723		$	22,163

Accrual for third-party lender-owned consumer loans:
Accrual for third-party lender-owned consumer loans:

Balance at beginning of period	$	2,293		$	1,522		$	2,944		$	2,135
Increase (decrease) in loss provision		1,032			537			381			(76	)

Balance at end of period	$	3,325		$	2,059		$	3,325		$	2,059

Combined consumer loan loss provision as a % of combined consumer loans written ^(a)
		6.3	%		5.5	%		5.8	%		5.3	%
Charge-offs (net of recoveries) as a % of combined consumer loans written (a)
		4.6	%		4.5	%		5.1	%		5.2	%
Combined allowance for losses and accrued third-party lender losses as a % of combined gross portfolio (a)
		19.7	%		16.6	%		19.7	%		16.6	%

(a) Non-GAAP presentation. Management evaluates the consumer loan portfolio on an aggregate basis including its evaluation of the loss provision for the Company-owned portfolio and the third-party lender-owned portfolio that the Company guarantees. Includes (i) consumer loans written by the Company, and (ii) consumer loans written by third-party lenders that were processed or arranged by the Company on behalf of the third-party lenders through the CSO program, all at the Company’s retail services locations and through the Company’s online channel, and (iii) the Company's participation interests in consumer loans written by a third-party lender that are purchased by the Company through the Company’s MLOC services channel. For the MLOC services channel, consumer loans written includes only the amount of the Company’s participation interest in these loans.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT (in thousands)

The following tables set forth income from operations for the Company’s operating segments, which are retail services and e-commerce, as of and for the three and six months ended June 30, 2010 and 2009.

		Retail Services⁽¹⁾						E-Commerce⁽²⁾
		Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated

Three Months Ended June 30, 2010
Revenue
Pawn loan fees and service charges	$	51,080	$	8,427	$	59,507	$	-	$	-	$	-	$	59,507
Proceeds from disposition of merchandise		113,850		-		113,850		-		-		-		113,850
Consumer loan fees		26,782		-		26,782		67,277		21,806		89,083		115,865
Other		2,616		41		2,657		202		-		202		2,859
Total revenue		194,328		8,468		202,796		67,479		21,806		89,285		292,081
Cost of revenue – disposed merchandise		70,417		-		70,417		-		-		-		70,417
Net revenue		123,911		8,468		132,379		67,479		21,806		89,285		221,664
Expenses
Operations		72,955		4,665		77,620		16,634		7,677		24,311		101,931
Consumer loan loss provision		5,019		-		5,019		29,466		10,449		39,915		44,934
Administration		10,926		2,194		13,120		8,948		3,378		12,326		25,446
Depreciation and amortization		6,954		1,231		8,185		1,959		71		2,030		10,215
Total expenses		95,854		8,090		103,944		57,007		21,575		78,582		182,526
Income (loss) from operations	$	28,057	$	378	$	28,435	$	10,472	$	231	$	10,703	$	39,138

As of June 30, 2010
Total assets	$	800,774	$	119,137	$	919,911	$	332,809	$	47,767	$	380,576	$	1,300,487
Goodwill					$	303,476					$	210,282	$	513,758

		Retail Services⁽¹⁾						E-Commerce⁽²⁾
		Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated

Three Months Ended June 30, 2009
Revenue
Pawn loan fees and service charges	$	47,373	$	6,907	$	54,280	$	-	$	-	$	-	$	54,280
Proceeds from disposition of merchandise		110,173		-		110,173		-		-		-		110,173
Consumer loan fees		27,330		-		27,330		49,715		7,557		57,272		84,602
Other		2,871		65		2,936		390		-		390		3,326
Total revenue		187,747		6,972		194,719		50,105		7,557		57,662		252,381
Cost of revenue – disposed merchandise		71,534		-		71,534		-		-		-		71,534
Net revenue		116,213		6,972		123,185		50,105		7,557		57,662		180,847
Expenses
Operations		70,071		3,127		73,198		10,186		3,011		13,197		86,395
Consumer loan loss provision		4,558		-		4,558		21,026		3,594		24,620		29,178
Administration		12,147		1,574		13,721		8,065		895		8,960		22,681
Depreciation and amortization		7,621		903		8,524		1,860		9		1,869		10,393
Total expenses		94,397		5,604		100,001		41,137		7,509		48,646		148,647
Income (loss) from operations	$	21,816	$	1,368	$	23,184	$	8,968	$	48	$	9,016	$	32,200

As of June 30, 2009
Total assets	$	782,367	$	111,207	$	893,574	$	277,243	$	15,808	$	293,051	$	1,186,625
Goodwill					$	298,370					$	195,478	$	493,848


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT (in thousands)


				Retail Services⁽¹⁾						E-Commerce⁽²⁾
				Domestic		Foreign		Total		Domestic		Foreign			Total		Consolidated

Six Months Ended June 30, 2010
Revenue
Pawn loan fees and service charges			$	101,942	$	15,846	$	117,788	$	-	$	-		$	-	$	117,788
Proceeds from disposition of merchandise				255,733		-		255,733		-		-			-		255,733
Consumer loan fees				54,326		-		54,326		129,911		40,070			169,981		224,307
Other				6,723		74		6,797		518		-			518		7,315
Total revenue				418,724		15,920		434,644		130,429		40,070			170,499		605,143
Cost of revenue – disposed merchandise				160,362		-		160,362		-		-			-		160,362
Net revenue				258,362		15,920		274,282		130,429		40,070			170,499		444,781
Expenses
Operations				146,053		8,408		154,461		30,413		13,576			43,989		198,450
Consumer loan loss provision				8,005		-		8,005		52,879		17,943			70,822		78,827
Administration				23,382		4,173		27,555		17,200		6,239			23,439		50,994
Depreciation and amortization				14,498		2,374		16,872		3,931		130			4,061		20,933
Total expenses				191,938		14,955		206,893		104,423		37,888			142,311		349,204
Income from operations			$	66,424	$	965	$	67,389	$	26,006	$	2,182		$	28,188	$	95,577

As of June 30, 2010
Total assets			$	800,774	$	119,137	$	919,911	$	332,809	$	47,767		$	380,576	$	1,300,487
Goodwill							$	303,476						$	210,282	$	513,758

				Retail Services⁽¹⁾						E-Commerce⁽²⁾
				Domestic		Foreign		Total		Domestic		Foreign			Total		Consolidated

Six Months Ended June 30, 2009
Revenue
Pawn loan fees and service charges			$	93,869	$	13,370	$	107,239	$	-	$	-		$	-	$	107,239
Proceeds from disposition of merchandise				239,933		-		239,933		-		-			-		239,933
Consumer loan fees				54,042		-		54,042		97,555		13,313			110,868		164,910
Other				7,657		134		7,791		600		-			600		8,391
Total revenue				395,501		13,504		409,005		98,155		13,313			111,468		520,473
Cost of revenue – disposed merchandise				154,036		-		154,036		-		-			-		154,036
Net revenue				241,465		13,504		254,969		98,155		13,313			111,468		366,437
Expenses
Operations				140,959		5,538		146,497		20,331		5,089			25,420		171,917
Consumer loan loss provision				8,442		-		8,442		38,822		6,688			45,510		53,952
Administration				24,778		3,054		27,832		14,475		1,848			16,323		44,155
Depreciation and amortization				15,408		1,731		17,139		3,577		18			3,595		20,734
Total expenses				189,587		10,323		199,910		77,205		13,643			90,848		290,758
Income (loss) from operations			$	51,878	$	3,181	$	55,059	$	20,950	$	(330	)	$	20,620	$	75,679

As of June 30, 2009
Total assets			$	782,367	$	111,207	$	893,574	$	277,243	$	15,808		$	293,051	$	1,186,625
Goodwill							$	298,370	$					$	195,478	$	493,848


(1	)	The retail services segment is composed of the Company’s domestic and foreign storefront operations.
(2	)	The e-commerce segment is composed of the Company’s online channel, which has domestic and foreign operations, and the Company’s MLOC services channel.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES ADJUSTED EARNINGS PER SHARE

Adjusted Earnings Per Share In addition to reporting financial results in accordance with GAAP, the Company has provided adjusted earnings and adjusted earnings per share, which are non-GAAP measures. Management believes these measures are useful to help investors better understand the Company’s financial performance, competitive position and prospects for the future. These non-GAAP measures are used by management in evaluating the Company’s results of operations. The following table provides reconciliation between net income attributable to the Company and diluted earnings per share calculated in accordance with GAAP to adjusted earnings and adjusted earnings per share, respectively (dollars in thousands except per share data):

	Three Months Ended											Six Months Ended
	June 30,											June 30,
		2010			2009						2010				2009
	$		Per Share		$			Per Share			$		Per Share		$			Per Share

Net income attributable to Cash America International, Inc.	$	20,889	$	0.66	$	16,607		$	0.54		$	52,922	$	1.67	$	40,518		$	1.33

Adjustments:
Intangible asset amortization, net of tax		664		0.02		957			0.03			1,417		0.04		1,988			0.07
Non-cash equity-based compensation, net of tax		602		0.02		510			0.02			1,178		0.04		987			0.03
Convertible debt non-cash interest and issuance cost amortization, net of tax		512		0.02		223			0.01			1,027		0.04		228			-
Foreign exchange loss (gain), net of tax		23		-		(164	)		(0.01	)		109		-		(82	)		-
Adjusted earnings	$	22,690	$	0.72	$	18,133		$	0.59		$	56,653	$	1.79	$	43,639		$	1.43


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES LOCATION INFORMATION

Retail Services Segment The following table sets forth the number of domestic and foreign locations in the Company’s retail services segment offering pawn lending, consumer lending, and other services as of June 30, 2010 and 2009.

	As of June 30,
	2010					2009
	Domestic^(a)	Foreign^(c)(d)		^(b)Total		Domestic^(a)	Foreign^(c)	Total
Retail services locations offering:
Both pawn and consumer lending	573		-		573	542	-	542
Pawn lending only	76		200		276	70	146	216
Consumer lending only	88		-		88	137	-	137
Other^(e)	125		-		125	128	-	128
Total retail services	862		200		1,062	877	146	1,023
^(a)Includes locations that operate under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance” and “Cashland.” Includes nine unconsolidated franchised pawn locations.

^(b)Includes locations that operate in 28 states in the United States.

^(c)Includes locations that operate in central and southern Mexico under the name “Prenda Fácil” (referred to as “Prenda Fácil”), of which the Company is a majority owner.

^(d)Includes locations that operate in 21 jurisdictions in Mexico.

^(e)Includes check cashing locations operating in the United States under the name “Mr. Payroll.” This amount represents five consolidated Company-owned check cashing locations operating in one state and includes 120 unconsolidated franchised locations operating in 17 states.

As of June 30, 2010, the Company’s e-commerce operating segment offered consumer loans over the internet to customers in:

The e-commerce segment also includes the Company’s MLOC services channel, which processes MLOC advances on behalf of a third-party lender and had a participation interest in MLOC receivables that were outstanding in all 50 states and four other U.S. jurisdictions.

In addition to the financial information prepared in conformity with GAAP, the Company provides historical non-GAAP financial information. 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 the Company’s business that, when viewed with the Company’s GAAP results, provide a more complete understanding of factors and trends affecting the Company’s 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.

	Balance at June 30,
	2010				2009
		Amount	%			Amount	%

Merchandise held for 1 year or less –
Jewelry	$	65,112	64.5	%	$	66,882	65.0	%
Other merchandise		28,525	28.3			27,948	27.2

Total merchandise held for 1 year or less		93,637	92.8			94,830	92.2
Merchandise held for more than 1 year –
Jewelry		4,294	4.3			5,080	4.9
Other merchandise		2,984	3.0			2,954	2.9

Total merchandise held for more than 1 year		7,278	7.2			8,034	7.8

Total merchandise held for disposition	$	100,915	100.0	%	$	102,864	100.0	%

http://www.cashamerica.com					http://www.quickquid.co.uk
http://www.enovafinancial.com					http://www.dollarsdirect.com.au
http://www.cashnetusa.com					http://www.dollarsdirect.ca
http://www.cashlandloans.com					http://www.strikegoldnow.com
http://www.primaryinnovations.net					http://www.mrpayroll.com