FORT WORTH, Texas--(BUSINESS WIRE)--July 24, 2014--Cash America International, Inc. (NYSE: CSH) reported today that its net income for the second quarter ended June 30, 2014 was $20,971,000 (72 cents per share), which compares to the second quarter 2013 net income of $25,132,000 (81 cents per share). Included in the results for the second quarter ended June 30, 2014 is $15.0 million in charges related to the early extinguishment of debt related to the prepayment of long-term notes during the period. Excluding the after-tax impact of the early extinguishment of debt costs of $9.5 million (32 cents per share), net income attributable to the Company adjusted for this expense, a non-GAAP measure, would have increased 21% to $30.4 million for the three months ended June 30, 2014, and net income per share adjusted for this expense, a non-GAAP measure, would have been $1.04 per share, representing a 28% increase in earnings per share from the same period in 2013. Net income per share adjusted for this expense for the second quarter of 2014 exceeded the Company’s published guidance range of 85 cents per share to 95 cents per share announced on April 24, 2014.

Total revenue for the second quarter ended June 30, 2014 was $455.1 million compared to $410.4 million in the second quarter of 2013. Net revenue, which is total revenue less cost of merchandise sold and loan loss provision expense, was up 13% to $275.9 million for the three-month period ended June 30, 2014 compared to the prior year, primarily due to growth in the Company’s E-Commerce Segment. The E-Commerce Segment posted higher total revenue levels and lower loan losses as a percentage of revenue leading to a 27% increase in net revenue, which reached $134.6 million for the second quarter ended June 30, 2014 compared to $106.0 million during the same period in 2013. The E-Commerce Segment generated income from operations of $58.1 million in the second quarter of 2014, representing an increase of 60% compared to the same period in 2013.

The Company’s Retail Services Segment posted its first year-over-year increase in net revenue in two years as net revenue increased 3% to $141.1 million for the three months ended June 30, 2014. The increase in net revenue was supported by an 11% increase in revenue from pawn loans, which ended the month of June 2014 with a balance outstanding of $263.7 million, up 14.9% from the end of June 2013. Same store pawn loan balances in the Company’s U.S. lending locations were up 4.5% on June 30, 2014 compared to the same period in 2013.

Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, “The second quarter’s results exceeded our expectations due to much lower loan loss rates in our unsecured consumer loan products during the period, which led to strong gains in operating income from our E-Commerce Segment. In addition, our pawn lending activities experienced renewed demand leading to a healthy increase in overall pawn loans and the first domestic same store pawn loan balance increase since early 2012.”

For the first six months of fiscal year 2014, total revenue increased 8% to $948.2 million compared to $878.5 million for the same period in 2013, and net revenue for the same comparison period was up 11%, reaching $570.9 million in 2014 versus $516.1 million in 2013. The Company reported net income of $66,708,000 ($2.27 per share) for the first six months of fiscal year 2014, which includes the $10.4 million of after-tax expenses related to the early extinguishment of debt (36 cents per share) discussed above. Net income attributable to the Company as adjusted for these expenses, a non-GAAP measure, would have increased to $77.1 million for the six-month period ended June 30, 2014 and net income per share as adjusted for these expenses, a non-GAAP measure, would have been $2.63 per share, up 18% compared to $69,058,000 ($2.23 per share) from the same six month period in 2013.

Cash America will host a conference call to discuss the second quarter results on Thursday, July 24, at 7:00 AM CDT. A live webcast of the call will be available on the Investor Relations section of the Company’s corporate website (http://www.cashamerica.com). To listen to the live call, please go to the website at least fifteen minutes early to register, download, and install any necessary audio software. A replay will be available on the Company’s website 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 20, 2014 to shareholders of record on August 6, 2014.

Management believes that the opportunities for growth in revenue and earnings will be largely associated with customer demand for the credit products provided by the Company, which take the form of pawn loans, 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. Management expects that changes to its U.K. business practices that it has adopted in response to new regulatory requirements in the United Kingdom will significantly reduce loan volumes, balances and revenue levels in that market for the remainder of the year and potentially into 2015, although the decrease could be offset by higher balances from domestic consumer loan products, among other things. Other elements that could affect the growth in revenue include the regulatory governance of the consumer loan products and the continued development and growth of new lending products offered by the Company’s E-Commerce Segment. In addition, the Company’s wholly-owned subsidiary, Enova International, Inc., completed a $500 million long-term note offering during the second quarter of 2014 that has significantly increased the Company’s interest expense as the proceeds were used to pay-off long-term notes at lower interest rates. Management estimates that the after tax additional interest expense burden will amount to 13 cents per share per quarter.

Based on its views and on the preceding factors, management expects the third quarter 2014 net income per share to be between 70 cents and 80 cents per share compared to $1.52 per share in the third quarter of 2013, which included a tax benefit of $33.2 million ($1.09 per share) related to the reorganization of its Mexico-based pawn operations and an $18 million pre-tax expense (37 cents per share after taxes) associated with a negotiated settlement of a class-action lawsuit. These two items combined to create a net after-tax benefit to income of $21.9 million (72 cents per share) for the three months ended September 30, 2013. Adjusted earnings per share for the third quarter of 2013, excluding the net effect of these two items, was 80 cents per share.

Based on the Company’s results through the first half of 2014, which produced adjusted earnings per share of $2.64, a non-GAAP measure, and excludes the first quarter after-tax impact of $1.1 million in expenses primarily related to the early extinguishment of debt (4 cents per share) and the second quarter $9.5 million (32 cents per share) discussed above, management expects its fiscal year 2014 earnings per share to be in a range of between $4.20 and $4.40 per share. This guidance range compares to actual full year 2013 earnings per share of $4.66, which includes a tax benefit related to the disposition of assets and reorganization of its Mexico-based pawn lending business of $33.2 million ($1.09 per share), which was partially offset by unusual expense items of $14.4 million (47 cents per share) related to a litigation settlement during the third quarter of 2013, the closure of consumer lending locations, a regulatory penalty, an adjustment to the remaining expected liability for the voluntary refund to customers in Ohio and expenses for the early extinguishment of debt. Combining these amounts generates the net benefit of unusual items in 2013 of $18.8 million (62 cents per share). Adjusting for the full year effects of the net benefit in 2013 would result in adjusted net income attributable to the Company, a non-GAAP measure, of $123.7 million ($4.04 per share).

The “Adjusted Earnings and Adjusted Earnings Per Share” section included in the attachments to this press release contains a discussion of the reasons why the Company’s management believes that presentation of the non-GAAP financial measures discussed above provide useful information to investors regarding the Company’s financial condition and results of operations.

As of June 30, 2014, Cash America International, Inc. (the “Company”) operated 1,004 total locations offering specialty financial services to consumers, which included the following:

Additionally, as of June 30, 2014, the Company offered consumer loans over the Internet to customers:

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

http://www.cashamerica.com			http://www.dollarsdirect.com.au
http://www.enova.com			http://www.dollarsdirect.ca
http://www.cashnetusa.com			http://www.quickquidflexcredit.co.uk
http://www.netcredit.com			http://www.onstride.co.uk
http://www.cashlandloans.com			http://www.simplic.com.br
http://www.quickquid.co.uk			http://www.mrpayroll.com
http://www.poundstopocket.co.uk

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

This release contains forward-looking statements about the business, financial condition, operations and prospects of 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: the effect of, compliance with or changes in domestic and foreign pawn, consumer credit, tax and other laws and governmental rules and regulations applicable to the Company's business or changes in the interpretation or enforcement thereof; the regulatory and examination authority of the Consumer Financial Protection Bureau in the U.S. and the UK Financial Conduct Authority, including the effect of and compliance with a consent order the Company entered into with the Consumer Financial Protection Bureau in November 2013 and changes to the Company’s UK business practices as a result of adapting the Company’s business in response to the requirements of the Financial Conduct Authority; changes in the political, regulatory or economic environment in foreign countries where the Company operates or in the future may operate; risks related to the potential separation of the Company’s online lending business that comprises its e-commerce division, Enova International, Inc.; the Company’s ability to process or collect consumer loans through the Automated Clearing House system; the actions of third parties who provide, acquire or offer products and services to, from or for the Company; public and regulatory perception of the Company’s business, including its consumer loan business and its business practices; the effect of any current or future litigation proceedings or any judicial decisions or rule-making that affect the Company, its products or its arbitration agreements; fluctuations, including a sustained decrease, in the price of gold or deterioration in economic conditions; a prolonged interruption in the Company’s operations of its facilities, systems and business functions, including its information technology and other business systems; changes in demand for the Company’s services and changes in competition; the Company’s ability to maintain an allowance or liability for estimated losses on consumer loans that are adequate to absorb credit losses; the Company’s ability to attract and retain qualified executive officers; the ability of the Company to open new locations in accordance with its plans or to successfully integrate newly acquired businesses into the Company’s operations; interest rate and foreign currency exchange rate fluctuations; changes in the capital markets, including the debt and equity markets; changes in the Company’s ability to satisfy its debt obligations or to refinance existing debt obligations or obtain new capital to finance growth; security breaches, cyber-attacks or fraudulent activity; 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 (dollars in thousands, except per share data) (Unaudited)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2014		2013			2014		2013
Consolidated Operations:
Total revenue	$	455,090	$	410,380		$	948,190	$	878,508
Net revenue	275,891		244,190			570,927		516,131
Total expenses	214,472		194,942			425,319		389,297

Income from Operations	$	61,419	$	49,248		$	145,608	$	126,834
Income before income taxes	33,404		40,390			105,888		110,106

Net Income	$	20,971	$	25,444		$	66,708	$	69,366

Net income attributable to the noncontrolling interest	$	—	$	(312	)	$	—	$	(308	)

Net Income Attributable to Cash America International, Inc.	$	20,971	$	25,132		$	66,708	$	69,058

Earnings per share:
Net Income attributable to Cash America International, Inc. common shareholders:
Basic	$	0.73	$	0.88		$	2.33	$	2.39
Diluted	$	0.72	$	0.81		$	2.27	$	2.23

Weighted average common shares outstanding:
Basic	28,823		28,721			28,616		28,910
Diluted	29,256		30,845			29,365		31,023


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

	June 30,						December 31,
	2014			2013			2013
Assets
Current assets:
Cash and cash equivalents	$	192,915		$	124,459		$	67,228
Restricted cash	60			—			8,000
Pawn loans	263,668			229,574			261,148
Consumer loans, net	337,961			287,127			358,841
Merchandise held for disposition, net	198,919			155,112			208,899
Pawn loan fees and service charges receivable	51,986			45,566			53,438
Income taxes receivable	17			25,495			9,535
Prepaid expenses and other assets	42,545			30,985			33,655
Deferred tax assets	34,779			43,628			38,800
Total current assets	1,122,850			941,946			1,039,544
Property and equipment, net	255,407			250,842			261,223
Goodwill	706,037			608,242			705,579
Intangible assets, net	49,135			34,067			52,256
Other assets	35,457			21,571			21,129
Total assets	$	2,168,886		$	1,856,668		$	2,079,731
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	120,417		$	115,591		$	140,068
Customer deposits	18,295			12,962			14,803
Income taxes currently payable	—			—			—
Current portion of long-term debt	—			22,606			22,606
Total current liabilities	138,712			151,159			177,477
Deferred tax liabilities	113,157			103,759			101,417
Noncurrent income tax payable	—			36,834			—
Other liabilities	1,268			1,609			1,031
Long-term debt	793,863			547,218			717,383
Total liabilities	$	1,047,000		$	840,579		$	997,308
Equity:
Cash America International, Inc. equity:
Common stock, $0.10 par value per share, 80,000,000 shares authorized, 30,235,164 shares issued and outstanding	3,024			3,024			3,024
Additional paid-in capital	86,184			156,349			150,833
Retained earnings	1,082,725			946,483			1,017,981
Accumulated other comprehensive income (loss)	7,998			(362		)	4,649
Treasury shares, at cost (1,382,602 shares, 2,107,082 shares and 2,224,902 shares as of June 30, 2014 and 2013, and as of December 31, 2013, respectively)	(58,045		)	(89,405		)	(94,064		)
Total equity	1,121,886			1,016,089			1,082,423
Total liabilities and equity	$	2,168,886		$	1,856,668		$	2,079,731


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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Revenue
Pawn loan fees and service charges	$	80,990		$	72,728		$	161,177		$	148,642
Proceeds from disposition of merchandise	146,772			131,532			323,227			310,249
Consumer loan fees	225,339			202,431			459,521			412,636
Other	1,989			3,689			4,265			6,981
Total Revenue	455,090			410,380			948,190			878,508
Cost of Revenue
Disposed merchandise	104,510			88,961			229,074			210,296
Consumer loan loss provision	74,689			77,229			148,189			152,081
Total Cost of Revenue	179,199			166,190			377,263			362,377
Net Revenue	275,891			244,190			570,927			516,131
Expenses
Operations and administration	194,975			176,942			386,561			353,766
Depreciation and amortization	19,497			18,000			38,758			35,531
Total Expenses	214,472			194,942			425,319			389,297
Income from Operations	61,419			49,248			145,608			126,834
Interest expense	(12,828		)	(8,903		)	(22,896		)	(16,348		)
Interest income	8			5			18			68
Foreign currency transaction (loss) gain	(179		)	65			(280		)	(312		)
Loss on extinguishment of debt	(15,016		)	—			(16,562		)	—
Equity in loss of unconsolidated subsidiary	—			(25		)	—			(136		)
Income before Income Taxes	33,404			40,390			105,888			110,106
Provision for income taxes	12,433			14,946			39,180			40,740
Net Income	20,971			25,444			66,708			69,366
Net income attributable to the noncontrolling interest	—			(312		)	—			(308		)
Net Income Attributable to Cash America International, Inc.	$	20,971		$	25,132		$	66,708		$	69,058
Earnings Per Share:
Net Income attributable to Cash America International, Inc. common shareholders:
Basic	$	0.73		$	0.88		$	2.33		$	2.39
Diluted	$	0.72		$	0.81		$	2.27		$	2.23
Weighted average common shares outstanding:
Basic	28,823			28,721			28,616			28,910
Diluted	29,256			30,845			29,365			31,023
Dividends declared per common share	$	0.035		$	0.035		$	0.070		$	0.070


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

The following tables outline certain data related to pawn loan activities of Cash America International, Inc. and its subsidiaries (the “Company”) as of and for the three and six months ended June 30, 2014 and 2013 (dollars in thousands):

	As of June 30,
	2014			2013			Change			% Change
Ending pawn loan balances
Domestic retail services	$	257,647		$	224,622		$	33,025		14.7	%
Foreign retail services	6,021			4,952			1,069			21.6	%
Consolidated pawn loan balances	$	263,668		$	229,574		$	34,094		14.9	%
Ending merchandise balance, net
Domestic retail services	$	192,745		$	149,244		$	43,501		29.1	%
Foreign retail services	6,174			5,868			306			5.2	%
Consolidated merchandise balance, net	$	198,919		$	155,112		$	43,807		28.2	%
	Three Months Ended June 30,
	2014			2013			Change			% Change
Pawn loan fees and service charges
Domestic retail services	$	78,911		$	70,802		$	8,109		11.5	%
Foreign retail services	2,079			1,926			153			7.9	%
Consolidated pawn loan fees and service charges	$	80,990		$	72,728		$	8,262		11.4	%
Average pawn loan balance outstanding
Domestic retail services	$	235,187		$	211,195		$	23,992		11.4	%
Foreign retail services	5,683			5,237			446			8.5	%
Consolidated average pawn loans outstanding	$	240,870		$	216,432		$	24,438		11.3	%
Amount of pawn loans written and renewed
Domestic retail services	$	271,226		$	234,327		$	36,899		15.7	%
Foreign retail services	15,909			15,166			743			4.9	%
Consolidated amount of pawn loans written and renewed	$	287,135		$	249,493		$	37,642		15.1	%
Average amount per pawn loan (in ones)
Domestic retail services	$	123		$	126		$	(3	)	(2.4	)%
Foreign retail services	$	88		$	89		$	(1	)	(1.1	)%
Consolidated average amount per pawn loan (in ones)	$	120		$	123		$	(3	)	(2.4	)%
Annualized yield on pawn loans
Domestic retail services	134.6		%	134.5		%
Foreign retail services	146.7		%	147.5		%
Consolidated annualized yield on pawn loans	134.9		%	134.8		%
Gross profit margin on disposition of merchandise
Domestic retail services	29.0		%	32.9		%
Foreign retail services	23.0		%	16.4		%
Gross profit margin on disposition of merchandise	28.8		%	32.4		%
Merchandise turnover
Domestic retail services	2.2			2.4
Foreign retail services	2.4			2.6
Consolidated merchandise turnover	2.2			2.4


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

	Six Months Ended June 30,
	2014			2013			Change			% Change
Pawn loan fees and service charges
Domestic retail services	$	157,378		$	144,976		$	12,402		8.6	%
Foreign retail services	3,799			3,666			133			3.6	%
Consolidated pawn loan fees and service charges	$	161,177		$	148,642		$	12,535		8.4	%
Average pawn loan balance outstanding
Domestic retail services	$	239,089		$	219,709		$	19,380		8.8	%
Foreign retail services	5,175			4,858			317			6.5	%
Consolidated average pawn loans outstanding	$	244,264		$	224,567		$	19,697		8.8	%
Amount of pawn loans written and renewed
Domestic retail services	$	503,786		$	449,703		$	54,083		12.0	%
Foreign retail services	28,895			28,259			636			2.3	%
Consolidated amount of pawn loans written and renewed	$	532,681		$	477,962		$	54,719		11.4	%
Average amount per pawn loan (in ones)
Domestic retail services	$	124		$	128		$	(4	)	(3.1	)%
Foreign retail services	$	88		$	87		$	1		1.1	%
Consolidated average amount per pawn loan (in ones)	$	121		$	124		$	(3	)	(2.4	)%
Annualized yield on pawn loans
Domestic retail services	132.7		%	133.1		%
Foreign retail services	148.0		%	152.2		%
Consolidated annualized yield on pawn loans	133.1		%	133.5		%
Gross profit margin on disposition of merchandise
Domestic retail services	29.3		%	32.6		%
Foreign retail services	22.9		%	18.3		%
Gross profit margin on disposition of merchandise	29.1		%	32.2		%
Merchandise turnover
Domestic retail services	2.3			2.7
Foreign retail services	2.5			2.6
Consolidated merchandise turnover	2.3			2.7


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES MERCHANDISE DISPOSITION, GROSS PROFIT AND INVENTORY OPERATING DATA (dollars 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, which is generally the principal amount loaned on an item or the amount paid for purchased merchandise. The following tables summarize the proceeds from the disposition of merchandise and the related profit for the three and six months ended June 30, 2014 and 2013 (dollars in thousands):

	Three Months Ended June 30,
	2014									2013
	Retail			Commercial			Total			Retail			Commercial			Total
Proceeds from disposition	$	117,951		$	28,821		$	146,772		$	89,836		$	41,696		$	131,532
Gross profit on disposition	$	38,681		$	3,581		$	42,262		$	33,385		$	9,186		$	42,571
Gross profit margin	32.8		%	12.4		%	28.8		%	37.2		%	22.0		%	32.4		%
Percentage of total gross profit	91.5		%	8.5		%	100.0		%	78.4		%	21.6		%	100.0		%


The table below summarizes the age of merchandise held for disposition related to the Company’s pawn lending operations before valuation allowance of $2.1 million and $0.9 million as of June 30, 2014 and 2013, respectively (dollars in thousands):

	As of June 30,
	2014				2013
	Amount		%		Amount		%
Jewelry - held for one year or less	$	107,905	53.7	%	$	90,105	57.8	%
Other merchandise - held for one year or less	80,050		39.8	%	56,398		36.1	%
Total merchandise held for one year or less	187,955		93.5	%	146,503		93.9	%
Jewelry - held for more than one year	5,480		2.7	%	3,856		2.4	%
Other merchandise - held for more than one year	7,593		3.8	%	5,702		3.7	%
Total merchandise held for more than one year	13,073		6.5	%	9,558		6.1	%
Merchandise held for disposition, gross	$	201,028	100.0	%	$	156,061	100.0	%
Merchandise held for disposition, net of allowance	$	198,919			$	155,112


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

The following tables set forth interest and fees on consumer loans by product type and segment, and the related loan loss provision for the three and six months ended June 30, 2014 and 2013 (dollars in thousands):

	Three Months Ended June 30,
	2014												2013
	Short-term loans			Line of credit accounts			Installment loans			Total			Short-term loans			Line of credit accounts			Installment loans			Total
Retail services	$	20,440		$	—		$	3,460		$	23,900		$	23,529		$	—		$	3,118		$	26,647
E-commerce
Domestic	41,392			36,066			31,293			108,751			42,398			26,465			18,639			87,502
Foreign	24,316			38,828			29,544			92,688			60,633			1,818			25,831			88,282
Total E-commerce	65,708			74,894			60,837			201,439			103,031			28,283			44,470			175,784
Consumer loan fees	$	86,148		$	74,894		$	64,297		$	225,339		$	126,560		$	28,283		$	47,588		$	202,431
Less: consumer loan loss provision	25,621			21,786			27,282			74,689			42,931			9,919			24,379			77,229
Consumer loan fees, net loss provision	$	60,527		$	53,108		$	37,015		$	150,650		$	83,629		$	18,364		$	23,209		$	125,202
Year-over-year change - $	$	(23,102	)	$	34,744		$	13,806		$	25,448		$	(3,750	)	$	9,279		$	11,348		$	16,877
Year-over-year change - %	(27.6		)%	189.2		%	59.5		%	20.3		%	(4.3		)%	102.1		%	95.7		%	15.6		%
Consumer loan loss provision as a % of consumer loan fees	29.7		%	29.1		%	42.4		%	33.1		%	33.9		%	35.1		%	51.2		%	38.2		%

	Six Months Ended June 30,
	2014												2013
	Short-term loans			Line of credit accounts			Installment loans			Total			Short-term loans			Line of credit accounts			Installment loans			Total
Retail services	$	42,437		$	—		$	7,222		$	49,659		$	48,736		$	—		$	6,233		$	54,969
E-commerce
Domestic	85,786			71,082			60,931			217,799			89,994			49,699			38,450			178,143
Foreign	52,899			76,848			62,316			192,063			128,045			1,818			49,661			179,524
Total E-commerce	138,685			147,930			123,247			409,862			218,039			51,517			88,111			357,667
Consumer loan fees	$	181,122		$	147,930		$	130,469		$	459,521		$	266,775		$	51,517		$	94,344		$	412,636
Less: consumer loan loss provision	47,382			45,161			55,646			148,189			88,097			16,472			47,512			152,081
Consumer loan fees, net loss provision	$	133,740		$	102,769		$	74,823		$	311,332		$	178,678		$	35,045		$	46,832		$	260,555
Year-over-year change - $	$	(44,938	)	$	67,724		$	27,991		$	50,777		$	(797	)	$	17,730		$	24,840		$	41,773
Year-over-year change - %	(25.2		)%	193.2		%	59.8		%	19.5		%	(0.4		)%	102.4		%	113.0		%	19.1		%
Consumer loan loss provision as a % of consumer loan fees	26.2		%	30.5		%	42.7		%	32.2		%	33.0		%	32.0		%	50.4		%	36.9		%

In addition to reporting consumer loans owned by the Company and consumer loans guaranteed by the Company, which are either generally accepted accounting principles (“GAAP”) items or disclosures required by GAAP, the Company has provided combined consumer loans, which is a non-GAAP measure. In addition, the Company has reported consumer loans written and renewed, which is statistical data that is not included in the Company’s financial statements. The Company also reports allowances and liabilities for estimated losses on consumer loans individually and on a combined basis, which are GAAP measures that are included in the Company’s financial statements.


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

Management believes these measures provide investors with important information needed to evaluate the magnitude of potential loan losses and the opportunity for revenue performance of the consumer loan portfolio on an aggregate basis. The comparison of the aggregate amounts from period to period is more meaningful than comparing only the residual amount on the Company’s balance sheet since both revenue and the loss provision for loans are impacted by the aggregate amount of loans owned by the Company and those guaranteed by the Company as reflected in its financial statements.

The following tables summarize selected data related to the Company’s consumer loan activities as of and for the three months ended June 30, 2014 and 2013.

The following table shows short-term loans and related loan loss activity, which is based on the volume of loans written and renewed, for the three months ended June 30, 2014 and 2013.
	Three Months Ended
	June 30,
	2014			2013
Short-term consumer loans:
Consumer loan loss provision	$	25,621		$	42,931
Charge-offs (net of recoveries)	24,507			42,541
Allowance and liability for losses	23,700			44,507
Combined consumer loans and fees receivable, gross^(a)	141,775			208,912
Short-term loans:
Consumer loan loss provision as a % of combined consumer loans written and renewed^(b)	5.1		%	6.3		%
Charge-offs (net of recoveries) as a % of combined consumer loans written and renewed^(b)	4.9		%	6.3		%
Consumer loan loss provision as a % of consumer loan fees	29.7		%	33.9		%
Allowance and liability for losses as a % of combined consumer loans and fees receivable, gross^(a)	16.7		%	21.3		%

(a) Non-GAAP measure.
(b) The disclosure regarding the amount of short-term consumer loans written and renewed is statistical data that is not included in the Company’s financial statements.


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

The following table shows line of credit accounts and related loan loss activity, which is based on average amount of consumer loan balance, for the three months ended June 30, 2014 and 2013.

	Three Months Ended
	June 30,
	2014			2013
Line of credit accounts:
Consumer loan loss provision	$	21,786		$	9,919
Charge-offs (net of recoveries)	26,877			7,334
Allowance and liability for losses	21,578			10,649
Average consumer loan balance^(a)	120,707			47,513
Line of credit accounts:
Consumer loan loss provision as a % of average consumer loan balance^(a)	18.0		%	20.9		%
Charge-offs (net of recoveries) as a % of average consumer loan balance^(a)	22.3		%	15.4		%
Consumer loan loss provision as a % of consumer loan fees	29.1		%	35.1		%
Allowance for losses as a % of average consumer loan balance^(a)	17.9		%	22.4		%
(a) The average consumer loan balance for line of credit accounts is the simple average of the beginning and ending consumer loan balance for the quarter for line of credit accounts.


The following table shows installment loans and related loan loss activity, which is based on average amount of combined consumer loan balance, for the three months ended June 30, 2014 and 2013.

	Three Months Ended
	June 30,
	2014			2013
Installment loans:
Consumer loan loss provision	$	27,282		$	24,379
Charge-offs (net of recoveries)	28,107			24,206
Allowance and liability for losses	30,085			27,754
Installment loan average loan balance:^(a)
Company owned	$	181,358		$	133,773
Guaranteed by the Company^(b)	8,840			9,631
Combined average consumer loan balance^(c)	$	190,198		$	143,404
Installment loans:
Consumer loan loss provision as a % of combined average consumer loan balance^(a)(c)	14.3		%	17.0		%
Charge-offs (net of recoveries) as a % of combined average consumer loan balance^(a)(c)	14.8		%	16.9		%
Consumer loan loss provision as a % of consumer loan fees	42.4		%	51.2		%
Allowance and liability for losses as a % of combined average consumer loan balance^(a)(c)	15.8		%	19.4		%
(a) The combined average consumer loan balance for installment loans is the simple average of the beginning and ending combined consumer loan balance for the quarter for installment loans.
(b) Represents loans originated by third-party lenders through the CSO programs, which are not included in the Company's financial statements.
(c) Non-GAAP measure.


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

The following table summarizes consumer loan balances outstanding as of June 30, 2014 and 2013 (dollars in thousands):

	As of June 30,
	2014									2013
	Company Owned^(a)			Guaranteed by the Company^(a)			Combined^(b)			Company Owned^(a)			Guaranteed by the Company^(a)			Combined^(b)
Ending consumer loan balances:
Retail Services
Short-term loans	$	42,744		$	3,976		$	46,720		$	45,324		$	5,338		$	50,662
Installment loans	7,643			8,565			16,208			9,819			10,131			19,950
Total Retail Services, gross	50,387			12,541			62,928			55,143			15,469			70,612
E-Commerce
Domestic
Short-term loans	30,545			34,914			65,459			31,594			35,115			66,709
Line of credit accounts	64,490			—			64,490			47,368			—			47,368
Installment loans	100,009			—			100,009			44,509			—			44,509
Total Domestic, gross	195,044			34,914			229,958			123,471			35,115			158,586
Foreign
Short-term loans	29,596			—			29,596			91,240			301			91,541
Line of credit accounts	57,919			—			57,919			10,703			—			10,703
Installment loans	77,202			—			77,202			86,433			—			86,433
Total Foreign, gross	164,717			—			164,717			188,376			301			188,677
Total E-Commerce, gross	359,761			34,914			394,675			311,847			35,416			347,263
Total ending loan balance, gross	410,148			47,455			457,603			366,990			50,885			417,875
Less: Allowance and liabilities for losses	(72,187		)	(3,176		)	(75,363		)	(79,863		)	(3,047		)	(82,910		)
Total ending loan balance, net	$	337,961		$	44,279		$	382,240		$	287,127		$	47,838		$	334,965
Allowance and liability for losses as a % of consumer loan balances, gross	17.6		%	6.7		%	16.5		%	21.8		%	6.0		%	19.8		%
(a) GAAP measure. The consumer loan balances guaranteed by the Company represent loans originated by third-party lenders through the Company’s credit services organization programs (the “CSO programs”), so these balances are not recorded in the Company’s financial statements. However, the Company has established a liability for estimated losses in support of its guarantee of these loans, which is reflected in the table above and included in its consolidated balance sheets.
(b) Except for allowance and liability for estimated losses, amounts represent non-GAAP measures.


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

The following tables summarize the consumer loans written and renewed for the three and six months ended June 30, 2014 and 2013 (dollars in thousands, except where otherwise noted):

	Three Months Ended June 30,
	2014						2013
	Company Owned^(a)		Guaranteed by the Company^(a)(b)		Combined^(a)		Company Owned^(a)		Guaranteed by the Company^(a)(b)		Combined^(a)
Amount of consumer loans written and renewed (dollars in thousands):
Retail Services
Short-term loans	$	157,268	$	16,878	$	174,146	$	167,896	$	26,446	$	194,342
Installment loans	2,526		6,763		9,289		2,051		5,274		7,325
Total Retail Services	159,794		23,641		183,435		169,947		31,720		201,667
E-Commerce
Domestic
Short-term loans	73,493		157,905		231,398		71,507		163,236		234,743
Line of credit accounts	49,708		—		49,708		37,649		—		37,649
Installment loans	58,058		—		58,058		31,385		—		31,385
Total Domestic	181,259		157,905		339,164		140,541		163,236		303,777
Foreign
Short-term loans	95,250		—		95,250		249,953		739		250,692
Line of credit accounts	76,241		—		76,241		13,484		—		13,484
Installment loans	56,047		—		56,047		64,665		—		64,665
Total Foreign	227,538		—		227,538		328,102		739		328,841
Total E-Commerce	408,797		157,905		566,702		468,643		163,975		632,618
Total amount of consumer loans written and renewed	$	568,591	$	181,546	$	750,137	$	638,590	$	195,695	$	834,285
Number of consumer loans written and renewed (in ones):
Retail Services
Short-term loans	331,032		31,482		362,514		354,546		51,763		406,309
Installment loans	1,833		5,180		7,013		1,798		928		2,726
Total Retail Services	332,865		36,662		369,527		356,344		52,691		409,035
E-Commerce
Domestic
Short-term loans	219,274		229,007		448,281		242,617		227,956		470,573
Line of credit accounts	198,956		—		198,956		139,550		—		139,550
Installment loans	37,751		—		37,751		30,229		—		30,229
Total Domestic	455,981		229,007		684,988		412,396		227,956		640,352
Foreign
Short-term loans	187,561		—		187,561		454,293		919		455,212
Line of credit accounts	255,171		—		255,171		30,748		—		30,748
Installment loans	44,200		—		44,200		56,679		—		56,679
Total Foreign	486,932		—		486,932		541,720		919		542,639
Total E-Commerce	942,913		229,007		1,171,920		954,116		228,875		1,182,991
Total number of consumer loans written and renewed	1,275,778		265,669		1,541,447		1,310,460		281,566		1,592,026
(a) The disclosure regarding the amount and number of consumer loans written and renewed is statistical data that is not included in the Company’s financial statements.
(b) Loans guaranteed by the Company represent loans originated by third-party lenders through the CSO programs.


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

	Six Months Ended June 30,
	2014						2013
	Company Owned^(a)		Guaranteed by the Company^(a)(b)		Combined^(a)		Company Owned^(a)		Guaranteed by the Company^(a)(b)		Combined^(a)
Amount of consumer loans written and renewed (dollars in thousands):
Retail Services
Short-term loans	$	316,728	$	35,242	$	351,970	$	339,816	$	54,772	$	394,588
Installment loans	4,351		11,201		15,552		3,497		8,986		12,483
Total Retail Services	321,079		46,443		367,522		343,313		63,758		407,071
E-Commerce
Domestic
Short-term loans	144,949		320,633		465,582		144,135		337,502		481,637
Line of credit accounts	90,321		—		90,321		66,455		—		66,455
Installment loans	98,369		—		98,369		56,056		—		56,056
Total Domestic	333,639		320,633		654,272		266,646		337,502		604,148
Foreign
Short-term loans	210,432		—		210,432		516,280		13,971		530,251
Line of credit accounts	151,237		—		151,237		13,484		—		13,484
Installment loans	128,459		—		128,459		105,250		—		105,250
Total Foreign	490,128		—		490,128		635,014		13,971		648,985
Total E-Commerce	823,767		320,633		1,144,400		901,660		351,473		1,253,133
Total amount of consumer loans written and renewed	$	1,144,846	$	367,076	$	1,511,922	$	1,244,973	$	415,231	$	1,660,204
Number of consumer loans written and renewed (in ones):
Retail Services
Short-term loans	659,497		64,970		724,467		709,859		105,752		815,611
Installment loans	3,327		8,221		11,548		3,194		1,562		4,756
Total Retail Services	662,824		73,191		736,015		713,053		107,314		820,367
E-Commerce
Domestic
Short-term loans	433,505		461,249		894,754		485,865		463,178		949,043
Line of credit accounts	370,061		—		370,061		251,201		—		251,201
Installment loans	67,779		—		67,779		53,414		—		53,414
Total Domestic	871,345		461,249		1,332,594		790,480		463,178		1,253,658
Foreign
Short-term loans	402,432		—		402,432		921,197		18,235		939,432
Line of credit accounts	499,408		—		499,408		30,748		—		30,748
Installment loans	104,301		—		104,301		89,754		—		89,754
Total Foreign	1,006,141		—		1,006,141		1,041,699		18,235		1,059,934
Total E-Commerce	1,877,486		461,249		2,338,735		1,832,179		481,413		2,313,592
Total number of consumer loans written and renewed	2,540,310		534,440		3,074,750		2,545,232		588,727		3,133,959
(a) The disclosure regarding the amount and number of consumer loans written and renewed is statistical data that is not included in the Company’s financial statements.
(b) Loans guaranteed by the Company represent loans originated by third-party lenders through the CSO programs.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

INCOME FROM OPERATIONS BY OPERATING SEGMENT

(dollars in thousands)

The following tables contain operating segment data for the three and six months ended June 30, 2014 and 2013 (dollars in thousands).

Retail Services

E-Commerce

Domestic

Foreign

Total

Domestic

Foreign

Admin

Total

Corporate

Consolidated

Three Months Ended June 30, 2014

Revenue

Pawn loan fees and service charges

78,911

2,079

80,990

—

80,990

Proceeds from disposition of merchandise

142,447

4,325

146,772

—

146,772

Consumer loan fees

23,900

—

23,900

108,751

92,688

—

201,439

—

225,339

Other

1,718

1,763

—

183

1,989

Total revenue

246,976

6,449

253,425

108,786

92,696

—

201,482

183

455,090

Cost of revenue

Disposed merchandise

101,177

3,333

104,510

—

104,510

Consumer loan loss provision

7,849

—

7,849

38,729

28,111

—

66,840

—

74,689

Total cost of revenue

109,026

3,333

112,359

38,729

28,111

—

66,840

—

179,199

Net revenue

137,950

3,116

141,066

70,057

64,585

—

134,642

183

275,891

Expenses

Operations and administration

100,189

3,386

103,575

25,816

24,061

22,387

72,264

19,136

194,975

Depreciation and amortization

10,122

421

10,543

2,054

559

1,703

4,316

4,638

19,497

Total expenses

110,311

3,807

114,118

27,870

24,620

24,090

76,580

23,774

214,472

Income (loss) from operations

27,639

(691

)

26,948

42,187

39,965

(24,090

)

58,062

(23,591

)

61,419

As of June 30, 2014

Total assets

952,990

121,193

1,074,183

462,039

205,249

14,779

682,067

412,636

2,168,886

Goodwill

495,672

210,365

706,037


	Retail Services							E-Commerce
	Domestic		Foreign			Total		Domestic		Foreign		Admin			Total		Corporate			Consolidated
Three Months Ended June 30, 2013
Revenue
Pawn loan fees and service charges	$	70,802	$	1,926		$	72,728	$	—	$	—	$	—		$	—	$	—		$	72,728
Proceeds from disposition of merchandise	127,214		4,318			131,532		—		—		—			—		—			131,532
Consumer loan fees	26,647		—			26,647		87,502		88,282		—			175,784		—			202,431
Other	1,918		258			2,176		361		16		—			377		1,136			3,689
Total revenue	226,581		6,502			233,083		87,863		88,298		—			176,161		1,136			410,380
Cost of revenue
Disposed merchandise	85,352		3,609			88,961		—		—		—			—		—			88,961
Consumer loan loss provision	7,112		—			7,112		33,343		36,774		—			70,117		—			77,229
Total cost of revenue	92,464		3,609			96,073		33,343		36,774		—			70,117		—			166,190
Net revenue	134,117		2,893			137,010		54,520		51,524		—			106,044		1,136			244,190
Expenses
Operations and administration	89,487		2,998			92,485		21,838		26,284		16,985			65,107		19,350			176,942
Depreciation and amortization	8,900		430			9,330		2,532		835		1,218			4,585		4,085			18,000
Total expenses	98,387		3,428			101,815		24,370		27,119		18,203			69,692		23,435			194,942
Income (loss) from operations	$	35,730	$	(535	)	$	35,195	$	30,150	$	24,405	$	(18,203	)	$	36,352	$	(22,299	)	$	49,248
As of June 30, 2013
Total assets	$	1,023,015	$	123,601		$	1,146,616	$	374,720	$	190,612	$	11,909		$	577,241	$	132,811		$	1,856,668
Goodwill						$	397,876								$	210,366				$	608,242

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

INCOME FROM OPERATIONS BY OPERATING SEGMENT

(dollars in thousands)

Retail Services

E-Commerce

Domestic

Foreign

Total

Domestic

Foreign

Admin

Total

Corporate

Consolidated

Six Months Ended June 30, 2014

Revenue

Pawn loan fees and service charges

157,378

3,799

161,177

—

161,177

Proceeds from disposition of merchandise

314,617

8,610

323,227

—

323,227

Consumer loan fees

49,659

—

49,659

217,799

192,063

—

409,862

—

459,521

Other

3,720

130

3,850

—

330

4,265

Total revenue

525,374

12,539

537,913

217,873

192,074

—

409,947

330

948,190

Cost of revenue

Disposed merchandise

222,435

6,639

229,074

—

229,074

Consumer loan loss provision

15,447

—

15,447

67,364

65,378

—

132,742

—

148,189

Total cost of revenue

237,882

6,639

244,521

67,364

65,378

—

132,742

—

377,263

Net revenue

287,492

5,900

293,392

150,509

126,696

—

277,205

330

570,927

Expenses

Operations and administration

201,342

6,635

207,977

49,224

49,181

42,026

140,431

38,153

386,561

Depreciation and amortization

20,426

824

21,250

3,959

1,082

3,393

8,434

9,074

38,758

Total expenses

221,768

7,459

229,227

53,183

50,263

45,419

148,865

47,227

425,319

Income (loss) from operations

65,724

(1,559

)

64,165

97,326

76,433

(45,419

)

128,340

(46,897

)

145,608


	Retail Services							E-Commerce
	Domestic		Foreign			Total		Domestic		Foreign		Admin			Total		Corporate			Consolidated
Six Months Ended June 30, 2013
Revenue
Pawn loan fees and service charges	$	144,976	$	3,666		$	148,642	$	—	$	—	$	—		$	—	$	—		$	148,642
Proceeds from disposition of merchandise	301,364		8,885			310,249		—		—		—			—		—			310,249
Consumer loan fees	54,969		—			54,969		178,143		179,524		—			357,667		—			412,636
Other	4,418		351			4,769		802		23		—			825		1,387			6,981
Total revenue	505,727		12,902			518,629		178,945		179,547		—			358,492		1,387			878,508
Cost of revenue
Disposed merchandise	203,039		7,257			210,296		—		—		—			—		—			210,296
Consumer loan loss provision	13,890		—			13,890		63,166		75,025		—			138,191		—			152,081
Total cost of revenue	216,929		7,257			224,186		63,166		75,025		—			138,191		—			362,377
Net revenue	288,798		5,645			294,443		115,779		104,522		—			220,301		1,387			516,131
Expenses
Operations and administration	180,189		6,601			186,790		43,243		50,931		36,515			130,689		36,287			353,766
Depreciation and amortization	17,701		829			18,530		4,960		1,395		2,673			9,028		7,973			35,531
Total expenses	197,890		7,430			205,320		48,203		52,326		39,188			139,717		44,260			389,297
Income (loss) from operations	$	90,908	$	(1,785	)	$	89,123	$	67,576	$	52,196	$	(39,188	)	$	80,584	$	(42,873	)	$	126,834

Corporate operations primarily include corporate expenses for both of the Company’s segments, such as legal, occupancy, executive oversight, insurance and risk management, public and government relations, internal audit, treasury, payroll, compliance and licensing, finance, accounting, tax and information systems (except for online lending systems, which are included in the e-commerce segment). Corporate income includes miscellaneous income not directly attributable to the Company’s segments. Corporate assets primarily include corporate property and equipment, nonqualified savings plan assets, marketable securities, foreign exchange forward contracts and prepaid insurance.

During the first quarter of 2014, the Company changed the presentation of financial information within its e-commerce segment to report certain administrative and depreciation and amortization expenses within that segment separately from its domestic and foreign operating components. Administrative expenses in the e-commerce segment, which were previously allocated between the domestic and foreign components based on the amount of loans written and renewed, are included under the “Admin” heading within the e-commerce segment information in the tables above. Depreciation and amortization related to the e-commerce administrative function is also included in this category. For comparison purposes, amounts for prior years have been conformed to the current presentation.


CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES LOCATION INFORMATION

Retail Services Segment

The following table sets forth the number of domestic and foreign Company-owned and franchised locations in the Company’s retail services segment offering pawn lending, consumer lending, and other services as of June 30, 2014 and 2013. The Company’s domestic retail services locations operate under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance,” “Cashland” and “Mr. Payroll.” In addition, some recently acquired domestic retail services locations operate under various names that are expected to be changed to “Cash America Pawn.” The Company’s foreign retail services locations operate under the name “Cash America casa de empeño.”

	As of June 30,
	2014			2013
	Domestic(a)	Foreign	Total	Domestic(a)	Foreign	Total
Retail services locations offering:
Both pawn and consumer lending	576	—	576	581	—	581
Pawn lending only	256	47	303	169	47	216
Consumer lending only	37	—	37	77	—	77
Other^(b)	88	—	88	90	—	90
Total retail services	957	47	1,004	917	47	964

(a) Except as described in (b) below, includes locations that operated in 22 states in the United States as of June 30, 2014 and 2013, respectively.
(b) As of June 30, 2014 and 2013, includes 88 and 90 unconsolidated franchised check cashing locations, respectively, that operated in 12 and 14 states in the United States, respectively.

As of June 30, 2014 and 2013, the Company’s e-commerce segment provided services in 33 and 32 states, respectively, in the United States and in four foreign countries:

On June 30, 2014, the Company launched a pilot program in Brazil where it arranges loans that are made by a third-party lender in accordance with applicable laws and provides certain guarantees for payment of defaulted loans in the pilot program.

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

Management provides non-GAAP financial information for informational purposes and to enhance understanding of the Company’s consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, its 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.

In addition to reporting financial results in accordance with GAAP, the Company has provided adjusted net income, adjusted diluted net income per share attributable to the Company, adjusted earnings and adjusted earnings per share (collectively, the “Adjusted Earnings Measures”), which are non-GAAP measures. Management believes that the presentation of these measures provides investors with greater transparency and facilitates comparison of operating results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization methods, which provides a more complete understanding of the Company’s financial performance, competitive position and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures, such as the Adjusted Earnings Measures, to assess operating performance and that such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. In addition, management believes that the adjustments shown below, especially the loss on the early extinguishment of a portion of the Company’s debt (the “Debt Extinguishment”) and the charges related to the Company's settlement of a litigation matter in 2013 (the “2013 Litigation Settlement”) are useful to investors in order to allow them to compare the Company’s financial results for the current quarter and current six-month period with the prior year quarter and prior year six-month period, respectively. The computation of Adjusted Earnings Measures as presented below may differ from the computation of similarly-titled measures provided by other companies.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES NON-GAAP DISCLOSURE ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE

The following table provides a reconciliation for the three and six months ended June 30, 2014 and 2013, respectively, between net income attributable to the Company and diluted earnings per share calculated in accordance with GAAP to the Adjusted Earnings Measures, which are shown net of tax (dollars in thousands, except per share data):


	Three Months Ended June 30,									Six Months Ended June 30,
	2014				2013					2014				2013
	$		Per Diluted Share^(a)		$			Per Diluted Share^(a)		$		Per Diluted Share^(a)		$		Per Diluted Share^(a)
Net income and diluted net income per share attributable to Cash America International, Inc.	$	20,971	$	0.72	$	25,132		$	0.81	$	66,708	$	2.27	$	69,058	$	2.23
Adjustments (net of tax):
Loss on Debt Extinguishment^(b)	9,460		0.32		—			—		10,434		0.36		—		—
2013 Litigation Settlement^(c)	236		0.01		—			—		400		0.01		—		—
Adjusted net income and adjusted diluted net income per share attributable to the Company	30,667		1.05		25,132			0.81		77,542		2.64		69,058		2.23
Other adjustments (net of tax):
Intangible asset amortization	1,045		0.04		828			0.03		2,092		0.07		1,661		0.05
Non-cash equity-based compensation	1,040		0.04		770			0.03		1,982		0.06		1,758		0.05
Non-cash interest and debt issuance cost amortization	789		0.03		1,094			0.04		1,554		0.05		1,925		0.06
Foreign currency transaction loss (gain)	113		—		(41		)	—		176		0.01		197		0.01
Adjusted earnings and adjusted earnings per share	$	33,654	$	1.16	$	27,783		$	0.91	$	83,346	$	2.83	$	74,599	$	2.40
(a) Diluted shares are calculated by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period.
(b) For the three months ended June 30, 2014, represents charges related to the Debt Extinguishment of $15.0 million, net of tax benefit of $5.5 million. For the six months ended June 30, 2014, represents $16.6 million of charges, net of tax benefit of $6.1 million.
(c) For the three months ended June 30, 2014, represents charges related to the 2013 Litigation Settlement of $0.4 million, net of tax benefit of $0.2 million. For the six months ended June 30, 2014, represents $0.6 million of charges, net of tax benefit of $0.2 million.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

NON-GAAP DISCLOSURE

ADJUSTED EBITDA

Adjusted EBITDA

The table below shows adjusted EBITDA, a non-GAAP measure that the Company defines as earnings excluding depreciation, amortization, interest, foreign currency transaction gains or losses, loss on extinguishment of debt, equity in earnings or loss of unconsolidated subsidiary, taxes and including the net income or loss attributable to noncontrolling interests. Management believes adjusted EBITDA is used by investors to analyze operating performance and evaluate the Company’s ability to incur and service debt and its capacity for making capital expenditures. Adjusted EBITDA is also useful to investors to help assess the Company’s estimated enterprise value. In addition, management believes that the adjustments shown below, especially the adjustments for the closure of 36 consumer lending-only retail services locations in Texas during the second half of 2013 (the “Texas Consumer Loan Store Closures”), the penalty paid to the Consumer Financial Protection Bureau (“CFPB”) in connection with the issuance of a consent order by the CFPB (the “Regulatory Penalty”), charges related to the 2013 Litigation Settlement, the withdrawal in July 2012 of the proposed initial public offering by the Company’s wholly-owned subsidiary, Enova International, Inc. (“Enova IPO”), an income tax benefit related to the change of tax basis in the stock of one of the Company's subsidiaries in connection with the Mexico Reorganization (as defined below) (the “Creazione Deduction”), the reorganization of the Company's Mexico-based pawn operations during 2012 (the “Mexico Reorganization”) and a voluntary program to reimburse Ohio customers in connection with legal collections proceedings initiated by the Company in Ohio (the “Ohio Reimbursement Program”), including a decrease in the Company's remaining liability related to the Ohio Reimbursement Program during 2013 after the assessment of the claims made to date and related matters (the “Ohio Adjustment”), are useful to investors in order to allow them to compare the Company’s financial results during the periods shown without the effect of each of these income and expense items. The computation of adjusted EBITDA as presented below may differ from the computation of similarly-titled measures provided by other companies. The following table provides a reconciliation between Net Income attributable to Cash America International, Inc., which is the nearest GAAP measure presented in the Company’s financial statements, to Adjusted EBITDA (dollars in thousands):

	Trailing 12 Months Ended
	June 30,
	2014			2013
Net income attributable to Cash America International, Inc.	$	140,178		$	105,241
Adjustments:
Texas Consumer Loan Store Closures^(a)	1,373			—
Regulatory Penalty^(b)	5,000			—
2013 Litigation settlement^(c)	18,635			—
Charges related to withdrawn proposed Enova IPO^(d)				3,112
Charges related to Mexico Reorganization^(e)				28,873
Charges related to Ohio Adjustment and Ohio Reimbursement Program^(f)	(5,000		)	13,400
Depreciation and amortization expenses^(g)	76,319			68,587
Interest expense, net	42,843			31,455
Foreign currency transaction loss	1,173			460
Loss on Debt Extinguishment^(h)	17,169			—
Equity in loss of unconsolidated subsidiary	—			283
Provision for income taxes⁽ⁱ⁾	29,194			75,864
Net loss attributable to the noncontrolling interest^(j)	—			(3,954		)
Adjusted EBITDA	$	326,884		$	323,321
Adjusted EBITDA margin calculated as follows:
Total revenue	$	1,866,337		$	1,809,806
Adjusted EBITDA	$	326,884		$	323,321
Adjusted EBITDA as a percentage of total revenue	17.5		%	17.9		%
(a) Represents charges related to the Texas Consumer Loan Store Closures of $1.4 million, before tax benefit of $0.5 million.
(b) Represents charges for the Regulatory Penalty, which is nondeductible for tax purposes.
(c) Represents charges related to the 2013 Litigation Settlement of $18.6 million, before tax benefit of $6.9 million.
(d) Represents charges directly related to the withdrawn Enova IPO, before tax benefit of $1.1 million.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

NON-GAAP DISCLOSURE

ADJUSTED EBITDA

(e) Represents charges related to the Mexico Reorganization, before tax benefit of $1.2 million and noncontrolling interest of $2.3 million. Includes $12.6 million and $7.2 million of depreciation and amortization expenses and charges for the recognition of a deferred tax asset valuation allowance, respectively, as noted in (g) and (i) below.

(f) For the trailing 12 months ended June 30, 2014, represents the Ohio Adjustment of $5.0 million, before tax provision of $1.8 million. For the trailing 12 months ended June 30, 2013, represents charges related to the Ohio Reimbursement Program, before tax benefit of $5.0 million.

(g) For the trailing 12 months ended June 30, 2014, excludes $0.2 million of depreciation and amortization expenses, which are included in the Texas Consumer Loan Store Closures. For the trailing 12 months ended June 30, 2013, excludes $12.6 million of depreciation and amortization expenses which are included in “Charges related to the Mexico Reorganization”.

(h) For the trailing 12 months ended June 30, 2014, represents charges of $17.2 million, before tax benefit of $6.4 million, related to the Debt Extinguishment.

(i) For the trailing 12 months ended June 30, 2014, includes income benefit of $33.2 million related to the Creazione Deduction. For the trailing 12 months ended June 30, 2013, excludes a $7.2 million charge for the recognition of a deferred tax asset valuation allowance, which is included in “Charges related to the Mexico Reorganization” in the table above and includes an income tax benefit related to the Mexico Reorganization of $1.2 million.

(j) For the trailing twelve months ended June 30, 2013, includes $2.3 million of noncontrolling interests related to the Mexico Reorganization.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES NON-GAAP DISCLOSURE ADJUSTED EBITDA

In addition, management believes that the adjusted EBITDA shown by segment and for the Company's corporate operations are useful to investors in order to allow them to compare the Company’s financial results during the periods shown without the effect of each of the applicable income and expense items discussed above. The following table provides a reconciliation between Income (loss) from operations, which is the nearest GAAP measure presented for the Company’s segments in the notes to the Company’s financial statements, to Adjusted EBITDA (dollars in thousands):

	Trailing 12 Months Ended June 30,
	2014											2013
	Retail Services			E-Commerce		Corporate			Consolidated			Retail Services		E-Commerce		Corporate			Consolidated
Income (loss) from operations	$	119,296		$	198,371	$	(87,110	)	$	230,557		$	152,227	$	144,506	$	(80,223	)	$	216,510
Depreciation and amortization expenses^(a)	42,181			16,549		17,589			76,319			36,683		16,398		15,506			68,587
Adjustments:
Texas Consumer Loan Store Closures	1,373			—		—			1,373			—		—		—			—
Regulatory Penalty	2,500			2,500					5,000			—		—		—			—
2013 Litigation Settlement	18,635			—		—			18,635			—		—		—			—
Charges related to withdrawn Enova IPO	—			—		—			—			—		3,112		—			3,112
Charges related to the Mexico Reorganization^(b)	—			—		—			—			21,712		—		—			21,712
Charges related to Ohio Adjustment and Ohio Reimbursement^(c)	(5,000		)	—		—			(5,000		)	13,400		—		—			13,400
Adjusted EBITDA	$	178,985		$	217,420	$	(69,521	)	$	326,884		$	224,022	$	164,016	$	(64,717	)	$	323,321

(a) For the trailing 12 months ended June 30, 2014, excludes $0.2 million of depreciation and amortization expenses, which are included in the Texas Consumer Loan Store Closures. For the trailing 12 months ended June 30, 2013, excludes $12.6 million of depreciation and amortization expenses which are included in “Charges related to the Mexico Reorganization.”
(b) Includes $12.6 million of depreciation and amortization expenses as noted in (a) above.
(c) For the trailing 12 months ended June 30, 2014, represents the Ohio Adjustment. For the trailing 12 months ended June 30, 2013, represents charges related to the Ohio Reimbursement Program.


	Six Months Ended June 30,
	2014									2013
	Retail Services		E-Commerce		Corporate			Consolidated		Retail Services		E-Commerce		Corporate			Consolidated
Income (loss) from operations	$	64,165	$	128,340	$	(46,897	)	$	145,608	$	89,123	$	80,584	$	(42,873	)	$	126,834
Depreciation and amortization expenses	21,250		8,434		9,074			38,758		18,530		9,028		7,973			35,531
Adjustments:
2013 Litigation Settlement(a)	635		—		—			635		—		—		—			—
Adjusted EBITDA	$	86,050	$	136,774	$	(37,823	)	$	185,001	$	107,653	$	89,612	$	(34,900	)	$	162,365

(a) Represents charges related to the 2013 Litigation Settlement during the six months ended June 30, 2014.

Texas	1-9733	75-2018239
(State of incorporation)	(Commission File No.)	(IRS Employer Identification No.)

(d)	Exhibits

	Exhibit No.	Description
	99.1	Cash America International, Inc. press release dated July 24, 2014

			CASH AMERICA INTERNATIONAL, INC.


Date:	July 24, 2014	By:	/s/ J. Curtis Linscott
			J. Curtis Linscott
			Executive Vice President,
			General Counsel & Secretary

Exhibit No.	Description
99.1	Cash America International, Inc. press release dated July 24, 2014