FORT WORTH, Texas--(BUSINESS WIRE)--January 27, 2011--Cash America International, Inc. (NYSE: CSH) reported today that its fourth quarter ended December 31, 2010 net income attributable to the Company increased to $34,705,000 ($1.10 per share) compared to $33,683,000 ($1.09 per share) for the fourth quarter of 2009. Included in the results for the fourth quarter are approximately $3.2 million ($2.0 million net of tax), of expense items from the closing of locations and related costs at the Company’s Mexico subsidiary, Prenda Fácil, and unusual expenses associated with the abrupt interruption of the MLOC loan product early in the fourth quarter. Excluding these unusual expense items would increase fourth quarter 2010 non-GAAP net earnings of the Company to $36,704,000 ($1.17 per share).

Consolidated total revenue of the Company increased 14% in the fourth quarter of 2010 to $368.8 million, up from $323.7 million in the same period in 2009. Revenue from the Company’s loan products driven by higher balances outstanding contributed the largest portion of the increase. Pawn loan balances ended the period up 16% and the consolidated balances from consumer loans ended the period up 28% contributing to the growth in total revenue during the fourth quarter. Merchandise sales rose 10% in the fourth quarter of 2010 compared to the same period in 2009 adding to the top line revenue growth for the period. Consumer loan fees increased 21%, to $131.8 million in the fourth quarter of 2010 compared to the prior year, as the Company’s E-commerce segment recorded a 33% increase in revenues led by a doubling of revenue in its foreign online lending business.

The Company completed the acquisition of substantially all of the assets of Maxit Financial, LLC (“Maxit”), a 39 store chain of pawn lending locations based in Seattle, Washington, during the fourth quarter of 2010. Expenses associated with the acquisition of approximately $1.3 million ($0.9 million net of tax) were incurred during the fourth quarter, which limited the incremental contribution of these stores to the consolidated results of the Company. These additional expense items are not included in the $3.2 million of charges mentioned in the first paragraph.

Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “While we incurred some unusual expense items during the quarter which restrained the growth in earnings, these items were overshadowed by the significant growth in lending assets during the period. The Company continues to experience success in our foreign online lending activities as loan growth is contributing to revenue expansion. Also, we view the addition of the large chain of pawn lending locations in the Pacific Northwest to be an important strategic asset for many years to come. Both of these items and the growth from our core lending businesses position us well as we enter 2011.”

Cash America finished fiscal year 2010 with a 20% increase in net income, to $115,538,000 ($3.67 per share), compared to $96,678,000 ($3.17 per share) for the same twelve month period of 2009. Total revenue for the fiscal year ended December 31, 2010, increased 15% to $1.29 billion, up from $1.12 billion during the same period in 2009.

Cash America will conduct a conference call to discuss its fourth quarter earnings on Thursday, January 27, 2011, at 7:00 AM CST. A live web cast of the call will be available on the Company’s corporate web site in the Investor Relations section (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.

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 February 23, 2011 to shareholders of record on February 9, 2011.

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 primarily take the form of pawn loans and short-term consumer loans. Other elements expected to affect the growth in revenue include the potential impact of the regulatory governance of loan products, the continued growth and development of the Mexican pawn operations and the development and expansion of the Company’s online distribution channel. Management believes that demand for its credit products will continue to expand during 2011. First quarter 2011 results could be influenced by the timing of Federal income tax refunds to the Company’s customers. At this point management assumes that refunds will differ from fiscal 2010, when tax refunds were higher from Federal stimulus programs. Based on the preceding factors management believes that the first quarter of 2011 could produce less earnings growth but that the second quarter would then be positioned with higher levels of earning assets to compensate for this event. In addition, the Company will begin 2011 without certain consumer loan markets and the MLOC program which both added incremental profitability in the first quarter of 2010. Therefore, management estimates that the first quarter of fiscal 2011 will be between $1.05 and $1.10 in earnings per share compared to $1.01 in the first quarter of 2010. At this time management confirms its previously reported expectations for its fiscal year 2011 earnings per share to a range of between $4.11 to $4.22 which compares to actual full year 2010 earnings per share of $3.67.

As of December 31, 2010, Cash America International, Inc. had 1,081 total locations offering specialty financial services to consumers, which include 779 lending locations (including nine unconsolidated franchised locations) operating in 28 states in the United States under the names “Cash America Pawn,” “SuperPawn,” “Maxit,” “Pawn X-Change,” “Cash America Payday Advance,” and “Cashland,” and 180 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.” The Company also operated 116 unconsolidated franchised and six Company-owned check cashing centers operating in 17 states in the United States under the name “Mr. Payroll” as of December 31, 2010. Additionally, as of December 31, 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.

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

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.goldpromise.com
http://www.primaryinnovations.net		http://www.mrpayroll.com

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

This release contains forward-looking statements about the business, financial condition and prospects of Cash America International, Inc. and its subsidiaries (the “Company”). The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including, without limitation, changes in pawn, consumer loan, tax and other domestic and foreign 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 provide, acquire or offer products and services to, from 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, changes in 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, acts of God, war or terrorism, pandemics and other events, the effect of any of such changes on the Company’s business or the markets in which it 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)
(Unaudited)
	Three Months Ended							Year Ended
	December 31,							December 31,
	2010			2009				2010		2009


Consolidated Operations:
Total revenue	$	368,831		$	323,697		$	1,293,339	$	1,120,390
Net revenue		264,233			228,998			954,583		796,113
Total operating expenses		203,043			170,454			747,451		620,461

Income from operations	$	61,190		$	58,544		$	207,132	$	175,652

Income before income taxes		54,925			53,192			184,513		154,716

Net Income	$	34,801		$	34,144		$	115,244	$	97,936

Net (income) loss attributable to the noncontrolling interest		(96	)		(461	)	$	294	$	(1,258	)

Net Income Attributable to Cash America International, Inc.	$	34,705		$	33,683		$	115,538	$	96,678

Earnings per share:

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

Basic	$	1.17		$	1.14		$	3.90	$	3.26
Diluted	$	1.10		$	1.09		$	3.67	$	3.17

Weighted average shares:
Basic		29,759			29,475			29,640		29,639
Diluted		31,655			31,013			31,521		30,503

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

	December 31,
		2010		2009

Assets
Current assets:
Cash and cash equivalents	$	38,324		$	46,004
Pawn loans		218,408			188,312
Consumer loans, net		139,377			108,789
Merchandise held for disposition, net		124,399			113,824
Pawn loan fees and service charges receivable		41,216			36,544
Prepaid expenses and other assets		31,717			32,129
Deferred tax assets		28,016			21,536
Total current assets		621,457			547,138
Property and equipment, net		222,320			193,737
Goodwill		543,324			493,492
Intangible assets, net		31,188			27,793
Other assets		8,124			7,495
Total assets	$	1,426,413		$	1,269,655

Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	89,126		$	87,368
Accrued supplemental acquisition payment		-			2,291
Customer deposits		9,146			8,837
Income taxes currently payable		888			8,699
Current portion of long-term debt		24,433			25,493
Total current liabilities		123,593			132,688
Deferred tax liabilities		56,792			42,590
Noncurrent income tax payable		2,408			2,009
Other liabilities		8,618			5,479
Long-term debt		432,271			403,690
Total liabilities	$	623,682		$	586,456

Equity:
Cash America International, Inc. equity:
Common stock, $0.10 par value per share, 80,000,000 shares authorized, 30,235,164 shares issued		3,024			3,024
Additional paid-in capital		165,658			166,761
Retained earnings		644,208			532,805
Accumulated other comprehensive income		4,797			1,181
Treasury shares, at cost (685,315 shares and 933,082 shares at December 31, 2010 and 2009, respectively)		(21,283	)		(26,836	)
Total Cash America International, Inc. shareholders' equity		796,404			676,935
Noncontrolling interest		6,327			6,264
Total equity		802,731			683,199
Total liabilities and equity	$	1,426,413		$	1,269,655

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

	Three Months Ended						Year Ended
	December 31,						December 31,
		2010			2009			2010			2009

Revenue
Pawn loan fees and service charges	$	71,558		$	64,019		$	253,314		$	231,178
Proceeds from disposition of merchandise		162,147			148,017			534,878			502,736
Consumer loan fees		131,773			108,737			490,952			371,856
Other		3,353			2,924			14,195			14,620
Total Revenue		368,831			323,697			1,293,339			1,120,390
Cost of Revenue
Disposed merchandise		104,598			94,699			338,756			324,277
Net Revenue		264,233			228,998			954,583			796,113
Expenses
Operations		115,355			98,843			419,616			360,127
Consumer loan loss provision		52,431			39,174			182,394			130,816
Administration		22,685			21,801			101,518			87,929
Depreciation and amortization		12,572			10,636			43,923			41,589
Total Expenses		203,043			170,454			747,451			620,461
Income from Operations		61,190			58,544			207,132			175,652
Interest expense		(5,835	)		(5,216	)		(22,345	)		(20,807	)
Interest income		8			3			325			29
Foreign currency transaction loss		(363	)		(139	)		(463	)		(158	)
Equity in loss of unconsolidated subsidiary		(75	)		-			(136	)		-
Income before Income Taxes		54,925			53,192			184,513			154,716
Provision for income taxes		20,124			19,048			69,269			56,780
Net Income		34,801			34,144			115,244			97,936
Less: Net (income) loss attributable to the noncontrolling interest		(96	)		(461	)		294			(1,258	)
Net Income Attributable to Cash America International, Inc.	$	34,705		$	33,683		$	115,538		$	96,678
Earnings Per Share:
Net Income attributable to Cash America International, Inc. common shareholders:
Basic	$	1.17		$	1.14		$	3.90		$	3.26
Diluted	$	1.10		$	1.09		$	3.67		$	3.17
Weighted average common shares outstanding:
Basic		29,759			29,475			29,640			29,639
Diluted		31,655			31,013			31,521			30,503
Dividends declared per common share	$	0.035		$	0.035		$	0.140		$	0.140

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES PAWN LENDING ACTIVITIES – 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 months and years ended December 31, 2010 and 2009.

	As of December 31,
	2010										2009
	Domestic			Foreign				Total			Domestic			Foreign				Total
Ending pawn loan balances	$	197,301		$	21,107			$	218,408		$	164,327		$	23,985			$	188,312
Ending merchandise balance, net	$	124,399		$	-		^(a)	$	124,399		$	113,824		$	-		^(a)	$	113,824

	Three Months Ended December 31,
	2010										2009
	Domestic			Foreign				Total			Domestic			Foreign				Total
Pawn loan fees and service charges	$	62,755		$	8,803			$	71,558		$	54,607		$	9,412			$	64,019
Average pawn loan balance outstanding	$	190,642		$	21,246			$	211,888		$	165,030		$	24,187			$	189,217
Amount of pawn loans written and renewed	$	197,874		$	23,348			$	221,222		$	161,363		$	33,794			$	195,157
Annualized yield on pawn loans		130.6	%		164.4	%			134.0	%		131.3	%		154.4	%			134.2	%
Gross profit margin on disposition of merchandise		35.5	%		-		^(a)		35.5	%		36.0	%		-		^(a)		36.0	%
Merchandise turnover		3.2			-		^(a)		3.2			3.2			-		^(a)		3.2

	Year Ended December 31,
	2010										2009
	Domestic			Foreign				Total			Domestic			Foreign				Total
Pawn loan fees and service charges	$	221,335		$	31,979			$	253,314		$	200,904		$	30,274			$	231,178
Average pawn loan balance outstanding	$	166,163		$	22,111			$	188,274		$	152,800		$	20,250			$	173,050
Amount of pawn loans written and renewed	$	689,476		$	89,746			$	779,222		$	629,196		$	106,569			$	735,765
Annualized yield on pawn loans		133.2	%		144.6	%			134.5	%		131.5	%		149.6	%			133.6	%
Gross profit margin on disposition of merchandise		36.7	%		-		^(a)		36.7	%		35.5	%		-		^(a)		35.5	%
Merchandise turnover		3.0			-		^(a)		3.0			2.9			-		^(a)		2.9

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 jewelry and general merchandise direct to consumers through any of the Company’s retail services locations or the internet. 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 months and years ended December 31, 2010 and 2009.

	Three Months Ended December 31,
	2010									2009

		Retail			Commercial			Total			Retail			Commercial			Total
Proceeds from disposition	$	91,548		$	70,599		$	162,147		$	80,625		$	67,392		$	148,017
Gross profit on disposition	$	35,710		$	21,839		$	57,549		$	31,408		$	21,910		$	53,318
Gross profit margin		39.0	%		30.9	%		35.5	%		39.0	%		32.5	%		36.0	%
Percentage of total gross profit		62.1	%		37.9	%		100.0	%		58.9	%		41.1	%		100.0	%
	Year Ended December 31,
	2010									2009

		Retail			Commercial			Total			Retail			Commercial			Total
Proceeds from disposition	$	306,300		$	228,578		$	534,878		$	283,208		$	219,528		$	502,736
Gross profit on disposition	$	121,819		$	74,303		$	196,122		$	112,417		$	66,042		$	178,459
Gross profit margin		39.8	%		32.5	%		36.7	%		39.7	%		30.1	%		35.5	%
Percentage of total gross profit		62.1	%		37.9	%		100.0	%		63.0	%		37.0	%		100.0	%

The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.7 million at December 31, 2010 and 2009 (dollars in thousands).

	Balance at December 31,
	2010			2009
		Amount	%		Amount	%

Merchandise held for one year or less –
Jewelry	$	79,566	63.6	$	70,834	61.9
Other merchandise		39,809	31.8		35,328	30.8

Total merchandise held for one year or less		119,375	95.4		106,162	92.7
Merchandise held for more than one year –
Jewelry		2,685	2.2		4,938	4.3
Other merchandise		3,039	2.4		3,424	3.0

Total merchandise held for more than one year		5,724	4.6		8,362	7.3

Total merchandise held for disposition	$	125,099	100.0	$	114,524	100.0

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

The following table sets forth consumer loan fees by channel and segment, adjusted for the deduction of the loan loss provision for the three months and years ended December 31, 2010 and 2009 (dollars in thousands):

	Three Months Ended December 31,
	2010															2009
	Retail Services Segment			Internet Lending			MLOC			Total E-Commerce Segment			Total Company			Retail Services Segment			Internet Lending			MLOC			Total E-Commerce Segment			Total Company
Consumer Loan Fees	$	30,397		$	99,302		$	2,074		$	101,376		$	131,773		$	32,336		$	70,907		$	5,494		$	76,401		$	108,737
Loan Loss Provision		4,466			45,368			2,597			47,965			52,431			6,010			31,389			1,775			33,164			39,174
Loss Adjusted Consumer Loan Fees	$	25,931		$	53,934		$	(523	)	$	53,411		$	79,342		$	26,326		$	39,518		$	3,719		$	43,237		$	69,563
Year over year change - $	$	(395	)	$	14,416		$	(4,242	)	$	10,174		$	9,779		$	3,150		$	11,277		$	3,049		$	14,326		$	17,476
Year over year change - %		(1.5	)%		36.5	%		(114.1	)%		23.5	%		14.1	%		13.6	%		39.9	%		455.1	%		49.6	%		33.6	%
Loan loss provision as % of consumer loan fees		14.7	%		45.7	%		125.2	%		47.3	%		39.8	%		18.6	%		44.3	%		32.3	%		43.4	%		36.0	%

	Year Ended December 31,
	2010															2009
	Retail Services Segment			Internet Lending			MLOC			Total E-Commerce Segment			Total Company			Retail Services Segment			Internet Lending			MLOC			Total E-Commerce Segment			Total Company
Consumer Loan Fees	$	113,973		$	349,336		$	27,643		$	376,979		$	490,952		$	117,997		$	241,268		$	12,591		$	253,859		$	371,856
Loan Loss Provision		17,437			151,716			13,241			164,957			182,394			21,642			104,454			4,720			109,174			130,816
Loss Adjusted Consumer Loan Fees	$	96,536		$	197,620		$	14,402		$	212,022		$	308,558		$	96,355		$	136,814		$	7,871		$	144,685		$	241,040
Year over year change - $	$	181		$	60,806		$	6,531		$	67,337		$	67,518		$	(11,226	)	$	21,684		$	6,702		$	28,386		$	17,160
Year over year change - %		0.2	%		44.4	%		83.0	%		46.5	%		28.0	%		(10.4	)%		18.8	%		573.3	%		24.4	%		7.7	%
Loan loss provision as % of consumer loan fees		15.3	%		43.4	%		47.9	%		43.8	%		37.2	%		18.3	%		43.3	%		37.5	%		43.0	%		35.2	%

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

In addition to reporting financial results in accordance with generally accepted accounting principles (“GAAP”) in the United States, the Company has provided combined consumer loans and combined consumer loans written, which are non-GAAP measures. Combined consumer loans and combined consumer loans written include (i) consumer loans written by the Company, which are GAAP measures, (ii) consumer loans written by third-party lenders through the CSO program, which are non-GAAP measures and (iii) the Company's participation interests in consumer loans written by a third-party lender’s micro line of credit (“ MLOC”) product, which are GAAP measures.

Management believes these measures are useful in evaluating the consumer loan portfolio on an aggregate basis, including its evaluation of the loss provision for the Company-owned portfolio and third-party lender-owned portfolios that the Company guarantees. The following table summarizes selected data related to the Company’s consumer loan activities as of December 31, 2010 and 2009 and for the three months and years ended December 31, 2010 and 2009.
	As of December 31,
	2010									2009
	Company Owned^(a)			Guaranteed by the Company^(b)			Combined^(b)			Company Owned^(a)			Guaranteed by the Company^(b)			Combined^(b)
Ending consumer loan balances:
Retail Services	$	51,953		$	9,819		$	61,772		$	51,986		$	11,688		$	63,674
Internet Lending		124,867			38,949			163,816			72,600			38,174			110,774
MLOC		1,510			-			1,510			11,553			-			11,553
Total ending loan balance, gross	$	178,330		$	48,768		$	227,098		$	136,139		$	49,862		$	186,001
Less: Allowance for losses		(38,953	)		(2,838	)		(41,791	)		(27,350	)		(2,944	)		(30,294	)
Total ending loan balance, net	$	139,377		$	45,930		$	185,307		$	108,789		$	46,918		$	155,707

	Three Months Ended December 31,
	2010									2009
	Company Owned^(a)			Guaranteed by the Company^(b)			Total^(b)			Company Owned^(a)			Guaranteed by the Company^(b)			Total^(b)
Amount of consumer loans written:
Retail Services	$	192,135		$	51,067		$	243,202		$	202,127		$	60,351		$	262,478
Internet Lending		273,189			193,223			466,412			186,783			195,940			382,723
MLOC		14,636			-			14,636			57,947			-			57,947
Total consumer loans written	$	479,960		$	244,290		$	724,250		$	446,857		$	256,291		$	703,148

Average amount per consumer loan:
Retail Services	$	445		$	567		$	466		$	436		$	565		$	460
Internet Lending		434			673			509			405			686			513
MLOC		198			-			198			170			-			170
Combined	$	423		$	648		$	479		$	353		$	653		$	424

(a) GAAP measure.
(b) Non-GAAP measure.

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

		Year Ended December 31,
		2010											2009
		Company Owned^(a)		Guaranteed by the Company^(b)			Combined^(b)						Company Owned^(a)					Guaranteed by the Company^(b)			Combined^(b)
Amount of consumer loans written:
Retail Services		$	703,161	$	199,155		$			902,316			$	706,066				$	220,650		$	926,716
Internet Lending			911,002		806,749					1,717,751				696,821					581,740			1,278,561
MLOC			289,009		-					289,009				126,457					-			126,457
Total consumer loans written		$	1,903,172	$	1,005,904		$			2,909,076			$	1,529,344				$	802,390		$	2,331,734

Average amount per consumer loan:
Retail Services		$	438	$	574		$			462			$	431				$	560		$	456
Internet Lending			418		679					510				403					704			500
MLOC			197		-					197				157					-			157
Combined		$	363	$	655		$			429			$	366				$	658		$	432
(a)	GAAP measure.
(b)	Non-GAAP measure.
				Three Months Ended								Year Ended
				December 31,								December 31,
				2010				2009				2010				2009

Allowance for losses for Company-owned consumer loans:

Balance at beginning of period				$	45,586			$	24,688			$	27,350			$	21,495
Consumer loan loss provision					52,383				39,046				182,500				130,007
Charge-offs					(65,843	)			(42,405		)		(197,611		)		(144,295			)
Recoveries					6,827				6,021				26,714				20,143
Balance at end of period				$	38,953			$	27,350			$	38,953			$	27,350

Accrual for third-party lender-owned consumer loans:

Balance at beginning of period				$	2,790			$	2,816			$	2,944			$	2,135
Increase (decrease) in loss provision					48				128				(106		)		809

Balance at end of period				$	2,838			$	2,944			$	2,838			$	2,944
Consumer loan loss provision as a % of combined consumer loans written ^(a)					7.2	%			5.6		%		6.3		%		5.6			%
Charge-offs (net of recoveries) as a % of combined consumer loans written ^(a)					8.1	%			5.2		%		5.9		%		5.3			%
Combined consumer loan loss provision as a % of consumer loan fees ^(a)					39.8	%			36.0		%		37.2		%		35.2			%

(a) Non-GAAP measure.

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 months and years ended December 31, 2010 and 2009.


		Retail Services^(a)						E-Commerce^(b)
		Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated

Three Months Ended December 31, 2010
Revenue
Pawn loan fees and service charges	$	62,755	$	8,803	$	71,558	$	-	$	-	$	-	$	71,558
Proceeds from disposition of merchandise		162,147		-		162,147		-		-		-		162,147
Consumer loan fees		30,397		-		30,397		67,402		33,974		101,376		131,773
Other		2,647		162		2,809		465		79		544		3,353
Total revenue		257,946		8,965		266,911		67,867		34,053		101,920		368,831
Cost of revenue – disposed merchandise		104,598		-		104,598		-		-		-		104,598
Net revenue		153,348		8,965		162,313		67,867		34,053		101,920		264,233
Expenses
Operations		81,829		4,709		86,538		18,421		10,396		28,817		115,355
Consumer loan loss provision		4,466		-		4,466		30,934		17,031		47,965		52,431
Administration		9,437		1,795		11,232		8,144		3,309		11,453		22,685
Depreciation and amortization		8,301		1,847		10,148		2,348		76		2,424		12,572
Total expenses		104,033		8,351		112,384		59,847		30,812		90,659		203,043
Income from operations	$	49,315	$	614	$	49,929	$	8,020	$	3,241	$	11,261	$	61,190
As of December 31, 2010
Total assets	$	928,923	$	123,044	$	1,051,967	$	312,642	$	61,804	$	374,446	$	1,426,413
Goodwill					$	333,042					$	210,282	$	543,324

		Retail Services^(a)						E-Commerce^(b)
		Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated

Three Months Ended December 31, 2009
Revenue
Pawn loan fees and service charges	$	54,607	$	9,412	$	64,019	$	-	$	-	$	-	$	64,019
Proceeds from disposition of merchandise		148,017		-		148,017		-		-		-		148,017
Consumer loan fees		32,336		-		32,336		60,909		15,492		76,401		108,737
Other		2,622		80		2,702		222		-		222		2,924
Total revenue		237,582		9,492		247,074		61,131		15,492		76,623		323,697
Cost of revenue – disposed merchandise		94,699		-		94,699		-		-		-		94,699
Net revenue		142,883		9,492		152,375		61,131		15,492		76,623		228,998
Expenses
Operations		74,111		3,975		78,086		15,961		4,796		20,757		98,843
Consumer loan loss provision		6,010		-		6,010		25,748		7,416		33,164		39,174
Administration		10,382		1,945		12,327		8,329		1,145		9,474		21,801
Depreciation and amortization		7,701		1,134		8,835		1,781		20		1,801		10,636
Total expenses		98,204		7,054		105,258		51,819		13,377		65,196		170,454
Income from operations	$	44,679	$	2,438	$	47,117	$	9,312	$	2,115	$	11,427	$	58,544
As of December 31, 2009
Total assets	$	815,518	$	118,478	$	933,996	$	307,336	$	28,323	$	335,659	$	1,269,655
Goodwill					$	296,409					$	197,083	$	493,492

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

		Retail Services^(a)						E-Commerce^(b)
		Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated

Year Ended December 31, 2010
Revenue
Pawn loan fees and service charges	$	221,335	$	31,979	$	253,314	$	-	$	-	$	-	$	253,314
Proceeds from disposition of merchandise		534,878		-		534,878		-		-		-		534,878
Consumer loan fees		113,973		-		113,973		275,036		101,943		376,979		490,952
Other		12,554		303		12,857		1,259		79		1,338		14,195
Total revenue		882,740		32,282		915,022		276,295		102,022		378,317		1,293,339
Cost of revenue – disposed merchandise		338,756		-		338,756		-		-		-		338,756
Net revenue		543,984		32,282		576,266		276,295		102,022		378,317		954,583
Expenses
Operations		301,399		17,195		318,594		68,541		32,481		101,022		419,616
Consumer loan loss provision		17,437		-		17,437		116,246		48,711		164,957		182,394
Administration		44,008		8,100		52,108		37,077		12,333		49,410		101,518
Depreciation and amortization		29,839		5,525		35,364		8,283		276		8,559		43,923
Total expenses		392,683		30,820		423,503		230,147		93,801		323,948		747,451
Income from operations	$	151,301	$	1,462	$	152,763	$	46,148	$	8,221	$	54,369	$	207,132
As of December 31, 2010
Total assets	$	928,923	$	123,044	$	1,051,967	$	312,642	$	61,804	$	374,446	$	1,426,413
Goodwill					$	333,042					$	210,282	$	543,324

		Retail Services^(a)						E-Commerce^(b)
		Domestic		Foreign		Total		Domestic		Foreign		Total		Consolidated

Year Ended December 31, 2009
Revenue
Pawn loan fees and service charges	$	200,904	$	30,274	$	231,178	$	-	$	-	$	-	$	231,178
Proceeds from disposition of merchandise		502,736		-		502,736		-		-		-		502,736
Consumer loan fees		117,997		-		117,997		213,361		40,498		253,859		371,856
Other		13,093		409		13,502		1,118		-		1,118		14,620
Total revenue		834,730		30,683		865,413		214,479		40,498		254,977		1,120,390
Cost of revenue – disposed merchandise		324,277		-		324,277		-		-		-		324,277
Net revenue		510,453		30,683		541,136		214,479		40,498		254,977		796,113
Expenses
Operations		283,903		12,644		296,547		49,410		14,170		63,580		360,127
Consumer loan loss provision		21,642		-		21,642		89,577		19,597		109,174		130,816
Administration		45,847		6,878		52,725		31,386		3,818		35,204		87,929
Depreciation and amortization		30,461		3,831		34,292		7,250		47		7,297		41,589
Total expenses		381,853		23,353		405,206		177,623		37,632		215,255		620,461
Income from operations	$	128,600	$	7,330	$	135,930	$	36,856	$	2,866	$	39,722	$	175,652
As of December 31, 2009
Total assets	$	815,518	$	118,478	$	933,996	$	307,336	$	28,323	$	335,659	$	1,269,655
Goodwill					$	296,409					$	197,083	$	493,492

^(a) The retail services segment is composed of the Company’s domestic and foreign storefront operations.
^(b)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 December 31,											Year Ended December 31,
		2010						2009				2010						2009

As reported net income^(a)	$	34,705		$	1.10		$	33,683		$	1.09	$	115,538		$	3.67		$	96,678		$	3.17

Adjustments:
Intangible asset amortization, net of tax		933			0.03			850			0.03		2,993			0.09			3,805			0.12
Non-cash equity-based compensation, net of tax		608			0.02			551			0.02		2,384			0.08			2,032			0.07
Convertible debt non-cash interest and amortization of issuance costs, net of tax		542			0.01			514			0.02		2,088			0.06			1,238			0.04
Foreign exchange loss, net of tax		230			0.01			89			-		289			0.01			100			-
Adjusted earnings	$	37,018		$	1.17		$	35,687		$	1.16	$	123,292		$	3.91		$	103,853		$	3.40
^(a)Includes certain expenses related to the interruption of the MLOC loan product and the closure of retail services locations in Mexico incurred by the Company during the three months and year ended December 31, 2010. The table below provides a reconciliation of as reported net income attributable to the Company (in the table above) by line item as reported in the consolidated statements of income, to Non-GAAP net earnings of the Company.

	Three Months Ended												Year Ended
	December 31, 2010												December 31, 2010
		MLOC			Foreign Retail Services			Total					MLOC			Foreign Retail Services			Total
As reported net income							$	34,705										$	115,538

Operating expenses	$	250		$	300			550				$	250		$	422			672
Consumer loan loss provision		2,100			-			2,100					2,100			-			2,100
Depreciation expense		-			503			503					-			503			503
Income tax provision		(860	)		(294	)		(1,154	)				(881	)		(347	)		(1,228	)
Total adjustments	$	1,490		$	509		$	1,999				$	1,469		$	578		$	2,047
Non-GAAP net earnings of the Company							$	36,704										$	117,585

Earnings per share, as reported							$	1.10										$	3.67
Non-GAAP Adjustments	$	0.05		$	0.02		$	0.07				$	0.05		$	0.02		$	0.07
Non-GAAP earnings per share of the Company							$	1.17										$	3.74

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 December 31, 2010 and 2009.

	As of December 31,
	2010			2009
	Domestic^(a)(b)	Foreign^(c)(d)	Total	Domestic^(a)	Foreign^(c)	Total
Retail services locations offering:
Both pawn and consumer lending ^(e)	567	-	567	584	-	584
Pawn lending only	124	180	304	66	176	242
Consumer lending only	88	-	88	96	-	96
Other ^(f)	122	-	122	126	-	126
Total retail services	901	180	1,081	872	176	1,048

^(a)		Except as noted in footnote (f) below, includes locations that operate under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance,” “Cashland,” “Maxit” and “Pawn X-Change.”
^(b)		Except as noted in footnote (f) below, 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,” of which the Company is a majority owner.
^(d)		Includes locations that operate in 21 jurisdictions in Mexico.
^(e)		As of December 31, 2010 and 2009, includes 425 and 434 locations, respectively, that primarily engage in pawn lending activities (of which nine are unconsolidated franchised pawn lending locations) and 142 and 150 locations, respectively, that primarily engage in consumer loan activities.
^(f)		Includes check cashing locations operating in the United States under the name “Mr. Payroll.” As of December 31, 2010, includes six consolidated Company-owned check cashing locations operating in one state and 116 unconsolidated franchised locations operating in 17 states.

As of December 31, 2010, the Company’s e-commerce operating segment offered consumer loans over the internet to customers in:

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES OTHER FINANCIAL DATA

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is a non-GAAP measure that is commonly used by investors to assess a company's leverage capacity, liquidity and financial performance. The following table provides a reconciliation of net income attributable to the Company calculated in accordance with GAAP to EBITDA (dollars in thousands):

	Year Ended
	December 31,
	2010			2009
Net Income attributable to Cash America International Inc.		$	115,538		$	96,678

Adjustments:
Provision for income taxes			69,269			56,780
Depreciation expenses			39,134			35,578
Amortization expenses			4,789			6,011
Interest expense, net			22,020			20,778
Earnings from continuing operations before interest, taxes, depreciation and amortization		$	250,750		$	215,825

EBITDA margin calculated as follows:

Net revenue		$	954,583		$	796,113

Earnings from continuing operations before interest, taxes, depreciation and amortization			250,750			215,825

EBITDA as a percentage of net revenue			26.3%			27.1%

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.


^(a)	With respect to the Company’s foreign pawn lending activities, collateral underlying unredeemed pawn loans is not owned by the Company; therefore, proceeds from disposition are recorded as pawn loan fees and service charges in the Company’s consolidated statements of operations.