FORT WORTH, Texas--(BUSINESS WIRE)--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.
Outlook for the First Quarter of 2011 and the 2011 Fiscal Year
Management believes that the opportunities for sustained growth in revenue and earnings will be largely associated with the customer demand for the credit products provided by the Company, which 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.
About the Company
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:
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 | ||||||||||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS |
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| (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 | |||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited) |
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| 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 | ||||||||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES PAWN LENDING ACTIVITIES – FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
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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. |
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| 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 | ||||||||||||||||||||
| (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. | |
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES MERCHANDISE DISPOSITION, GROSS PROFIT AND INVENTORY OPERATING DATA (in thousands)
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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. |
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| 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 | % | |||||||||||
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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). |
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| 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 | |||||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
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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): |
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| 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 | ||||||||||||||||||||||||||||||||||
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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 | % | ||||||||||||||||||||||||
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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 | ||||||||||||||||||||||||||||||||||
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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 | % | ||||||||||||||||||||||||
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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 | % | ||||||||||||||||||||||||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
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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. |
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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. |
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| 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 | ||||||||||||
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(a) GAAP measure.
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(b) Non-GAAP measure. |
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
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| 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: |
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| 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: |
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| 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 | % | |||||||||||||||||||||||
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Charge-offs (net of recoveries) as a % of combined consumer loans written (a)
|
8.1 | % | 5.2 | % | 5.9 | % | 5.3 | % | |||||||||||||||||||||||
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Combined consumer loan loss provision as a % of consumer loan fees (a)
|
39.8 | % | 36.0 | % | 37.2 | % | 35.2 | % | |||||||||||||||||||||||
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(a) Non-GAAP measure. |
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT (in thousands)
|
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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. |
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| 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 | ||||||||||||||||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT (in thousands) |
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| 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. |
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(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. |
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|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES ADJUSTED EARNINGS PER SHARE
|
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|
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): |
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| 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. |
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| 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 | ||||||||||||||||||||||||||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES LOCATION INFORMATION
|
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|
Retail Services Segment |
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|
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. |
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| 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. |
E-Commerce Segment
As of December 31, 2010, the Company’s e-commerce operating segment offered consumer 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,
- in Canada at http://www.dollarsdirect.ca, and
- MLOC - The e-commerce segment also includes the Company’s MLOC services channel, which processed MLOC advances on behalf of a third-party lender during 2010 and had a participation interest in MLOC receivables that were outstanding in all 50 states and two other U.S. jurisdictions during the year ended December 31, 2010. The MLOC services channel has most recently generated its earnings through loan processing services the Company provided for MetaBank related to the iAdvance MLOC product the bank made available on certain stored-value debit cards the bank issues, as well as from fees generated from participation interests the Company acquired in the receivables originated by the bank in connection with the iAdvance program. MetaBank has announced that it discontinued offering its iAdvance program as of October 13, 2010.
|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES OTHER FINANCIAL DATA
|
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|
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): |
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| 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% | ||||||
Non-GAAP Disclosure
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.