Cash America International, Inc. (NYSE: CSH) reported today that its
fourth quarter ended December 31, 2013 net income attributable to the
Company was $27,284,000 (91 cents per share), which included the
after-tax impact of unusual expense items of $2.8 million (10 cents per
share). This compares to $24,480,000 (79 cents per share) for the fourth
quarter ended 2012, which included the after-tax impact of unusual
expense items of $15.4 million (50 cents per share).
The $2.8 million of after-tax expenses for unusual items in the 2013
fourth quarter included costs related to the closure of 28 locations in
Texas, which offered unsecured consumer loans as the primary source of
revenue, a regulatory penalty incurred during the period, an adjustment
to the remaining expected liability for the voluntary refund to
customers in Ohio and expenses related to the early extinguishment of
debt. Excluding the effect of these expenses, fourth quarter 2013
adjusted net income attributable to the Company, a non-GAAP measure,
would have been $30.1 million ($1.01 per share). During the prior year
fourth quarter of 2012, the Company incurred unusual expense items
related to a voluntary refund to customers in Ohio and the
reorganization of its Mexico-based pawn lending business, including the
closure of 115 locations in Mexico, which totaled $15.4 million after
taxes (50 cents per share). Excluding these expenses, adjusted net
income attributable to the Company, a non-GAAP measure, for the fourth
quarter of 2012 would have been $39,887,000 ($1.29 per share).
Consolidated net revenue of the Company in the fourth quarter of 2013
was up 2% to $271.6 million compared to $267.1 million in the fourth
quarter of 2012. The increase in net revenue was due to a 10% increase
in net consumer loan fees after loan loss provision expense and a 6%
increase in revenue from secured loans during the quarter, the
combination of which offset the anticipated decrease in net proceeds
from the sale of merchandise.
Commenting on the results of the quarter, Daniel R. Feehan, President
and Chief Executive Officer of Cash America, said, “As we expected, the
retail selling environment during the fourth quarter was very
competitive, but we were able to move merchandise during the period
while benefiting from increased revenue from our loan products. We also
completed the previously announced acquisition of a 34-store chain of
pawn lending locations during the fourth quarter, which helped us
achieve adjusted earnings that were in line with our expectations as we
entered the quarter.”
Total revenue for the fiscal year ended December 31, 2013 was $1.8
billion, which compares to $1.8 billion during the twelve-month period
in 2012. Net income attributable to the Company for the twelve months
ended December 31, 2013 was $142,528,000 ($4.66 per share), which
includes a net benefit from unusual items during the year of $18.8
million (a benefit of 62 cents per share). In 2013, the Company recorded
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
mentioned above, 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.
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).
In 2012, the Company reported full year net income of $107,470,000
($3.42 per share), which included unusual expense items totaling $36.3
million ($1.15 per share) related to the reorganization of its
Mexico-based pawn lending business, a voluntary refund to customers in
Ohio and the withdrawal of a proposed securities offering. Excluding
these unusual items in 2012, adjusted net income attributable to the
Company, a non-GAAP measure, would have been $143.8 million ($4.57 per
share) for the twelve-month period ended December 31, 2012.
Cash America will conduct a conference call to discuss its fourth
quarter earnings on Thursday, January 23, 2014, 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 19, 2014 to shareholders of
record on February 5, 2014.
Outlook for the First Quarter of 2014 and the
2014 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 consumer loans. Other elements expected to
affect the growth in revenue include the potential impact of the
regulatory governance of consumer loan products, the ability to
profitably liquidate merchandise primarily from unredeemed pawn loans,
the continued development of the Mexican pawn operations and the rate of
growth of the Company’s e-commerce segment. Based on the preceding
factors management estimates that the first quarter of fiscal 2014 will
be between $1.15 and $1.25 in earnings per share compared to $1.40 in
the first quarter of 2013. At this time management leaves its previously
reported expectations for its fiscal year 2014 earnings per share
unchanged at between $4.20 to $4.40 per share, which compares to actual
full year 2013 earnings per share of $4.66 that includes the after-tax
net benefit of unusual items discussed above of $18.8 million (a net
benefit of 62 cents per share). Excluding the net benefit for unusual
items in 2013, adjusted net income attributable to the Company per
share, a non-GAAP measure, for the full year was $4.04, for the
comparison period.
About the Company
As of December 31, 2013, Cash America International, Inc. (the
“Company”) operated 1,006 total locations offering specialty financial
services to consumers, which included the following:
-
869 lending locations in 22 states in the United States primarily
under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday
Advance,” and “Cashland;”
-
47 pawn lending locations in central and southern Mexico under the
name “Cash America casa de empeño;” and
-
90 check cashing centers (all of which are unconsolidated franchised
check cashing centers) operating in 14 states in the United States
under the name “Mr. Payroll.”
Additionally, as of December 31, 2013, 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:
Non-GAAP Measures
A reconciliation of adjusted net income attributable to the Company and
adjusted net income attributable to the Company on a per share basis,
which are non-GAAP measures, for the three- and twelve-month periods
ended December 31, 2013 and December 31, 2012 discussed above is
included in the attachments for this press release in the “Adjusted
Earnings and Adjusted Earnings Per Share” table.
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 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, which will become the
Company’s primary regulator in the UK in 2014; public perception of the
Company’s business, including its consumer loan business and its
business practices; changes in the political, regulatory or economic
environment in foreign countries where the Company operates or in the
future may operate; the Company’s ability to process or collect consumer
loans through the Automated Clearing House system; fluctuations,
including a sustained decrease, in the price of gold or deterioration in
economic conditions; 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; the actions of
third parties who provide, acquire or offer products and services to,
from or for the Company; changes in demand for the Company’s services,
the Company’s ability to attract and retain qualified executive
officers; a prolonged interruption in the Company’s operations of its
facilities, systems and business functions, including its information
technology and other business systems; 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;
changes in competition; interest rate and foreign currency exchange rate
fluctuations; changes in the capital 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; compliance with laws and
regulations applicable to international operations; the implementation
of new, or changes in the interpretation of existing, accounting
principles or financial reporting requirements; 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
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Consolidated Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
|
|
$
|
480,346
|
|
|
$
|
491,604
|
|
$
|
1,797,226
|
|
$
|
1,800,430
|
Net revenue
|
|
|
|
271,649
|
|
|
|
267,088
|
|
|
1,035,358
|
|
|
1,005,957
|
Total expenses
|
|
|
|
215,219
|
|
|
|
217,600
|
|
|
823,575
|
|
|
790,042
|
|
|
|
|
Income from Operations
|
|
|
$
|
56,430
|
|
|
$
|
49,488
|
|
$
|
211,783
|
|
$
|
215,915
|
|
|
|
|
Income before income taxes
|
|
|
|
45,311
|
|
|
|
41,160
|
|
|
173,590
|
|
|
186,320
|
|
|
|
|
Net Income
|
|
|
$
|
27,284
|
|
|
$
|
23,991
|
|
$
|
142,836
|
|
$
|
101,664
|
|
|
|
|
Net loss (income) attributable to the noncontrolling interest
|
|
|
$
|
-
|
|
|
$
|
489
|
|
$
|
(308)
|
|
$
|
5,806
|
|
|
|
|
Net Income Attributable to Cash America International, Inc.
|
|
|
$
|
27,284
|
|
|
$
|
24,480
|
|
$
|
142,528
|
|
$
|
107,470
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to Cash America International, Inc. common
shareholders:
|
|
|
|
Basic
|
|
|
$
|
0.96
|
|
|
$
|
0.84
|
|
$
|
4.97
|
|
$
|
3.64
|
Diluted
|
|
|
$
|
0.91
|
|
|
$
|
0.79
|
|
$
|
4.66
|
|
$
|
3.42
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
28,391
|
|
|
|
29,262
|
|
|
28,657
|
|
|
29,514
|
Diluted
|
|
|
|
29,968
|
|
|
|
30,884
|
|
|
30,613
|
|
|
31,452
|
|
|
|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|
(dollars in thousands, except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
69,238
|
|
$
|
63,134
|
|
Restricted cash
|
|
|
8,000
|
|
|
-
|
|
Pawn loans
|
|
|
261,148
|
|
|
244,640
|
|
Consumer loans, net
|
|
|
358,841
|
|
|
289,418
|
|
Merchandise held for disposition, net
|
|
|
208,899
|
|
|
167,409
|
|
Pawn loan fees and service charges receivable
|
|
|
53,438
|
|
|
48,991
|
|
Income taxes receivable
|
|
|
9,535
|
|
|
-
|
|
Prepaid expenses and other assets
|
|
|
33,655
|
|
|
35,605
|
|
Deferred tax assets
|
|
|
38,800
|
|
|
48,992
|
|
Total current assets
|
|
|
1,041,554
|
|
|
898,189
|
|
Property and equipment, net
|
|
|
261,223
|
|
|
261,771
|
|
Goodwill
|
|
|
705,579
|
|
|
608,216
|
|
Intangible assets, net
|
|
|
52,256
|
|
|
36,473
|
|
Other assets
|
|
|
21,129
|
|
|
13,609
|
|
Total assets
|
|
$
|
2,081,741
|
|
$
|
1,818,258
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
$
|
142,078
|
|
$
|
126,664
|
|
Customer deposits
|
|
|
14,803
|
|
|
11,420
|
|
Income taxes currently payable
|
|
|
-
|
|
|
5,922
|
|
Current portion of long-term debt
|
|
|
22,606
|
|
|
43,617
|
|
Total current liabilities
|
|
|
179,487
|
|
|
187,623
|
|
Deferred tax liabilities
|
|
|
101,417
|
|
|
101,711
|
|
Noncurrent income tax payable
|
|
|
-
|
|
|
2,703
|
|
Other liabilities
|
|
|
1,031
|
|
|
888
|
|
Long-term debt
|
|
|
717,383
|
|
|
534,713
|
|
Total liabilities
|
|
$
|
999,318
|
|
$
|
827,638
|
|
|
|
|
|
|
|
|
|
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
|
|
Additional paid-in capital
|
|
|
150,833
|
|
|
157,613
|
|
Retained earnings
|
|
|
1,017,981
|
|
|
879,434
|
|
Accumulated other comprehensive income
|
|
|
4,649
|
|
|
3,128
|
|
Treasury shares, at cost (2,224,902 shares and 1,351,712 shares at
December 31, 2013 and 2012, respectively)
|
|
|
(94,064)
|
|
|
(51,304)
|
|
Total Cash America International, Inc. shareholders' equity
|
|
|
1,082,423
|
|
|
991,895
|
|
Noncontrolling interest
|
|
|
-
|
|
|
(1,275)
|
|
Total equity
|
|
|
1,082,423
|
|
|
990,620
|
|
Total liabilities and equity
|
|
$
|
2,081,741
|
|
$
|
1,818,258
|
|
|
|
|
|
|
|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share data)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Pawn loan fees and service charges
|
|
$
|
83,859
|
|
$
|
79,479
|
|
$
|
311,799
|
|
$
|
300,929
|
Proceeds from disposition of merchandise
|
|
|
156,530
|
|
|
185,935
|
|
|
595,439
|
|
|
703,767
|
Consumer loan fees
|
|
|
237,984
|
|
|
222,864
|
|
|
878,183
|
|
|
781,520
|
Other
|
|
|
1,973
|
|
|
3,326
|
|
|
11,805
|
|
|
14,214
|
Total Revenue
|
|
|
480,346
|
|
|
491,604
|
|
|
1,797,226
|
|
|
1,800,430
|
Cost of Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposed merchandise
|
|
|
109,216
|
|
|
127,301
|
|
|
410,613
|
|
|
478,179
|
Consumer loan loss provision
|
|
|
99,481
|
|
|
97,215
|
|
|
351,255
|
|
|
316,294
|
Total Cost of Revenue
|
|
|
208,697
|
|
|
224,516
|
|
|
761,868
|
|
|
794,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue
|
|
|
271,649
|
|
|
267,088
|
|
|
1,035,358
|
|
|
1,005,957
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and administration
|
|
|
196,262
|
|
|
199,054
|
|
|
750,304
|
|
|
714,614
|
Depreciation and amortization
|
|
|
18,957
|
|
|
18,546
|
|
|
73,271
|
|
|
75,428
|
Total Expenses
|
|
|
215,219
|
|
|
217,600
|
|
|
823,575
|
|
|
790,042
|
Income from Operations
|
|
|
56,430
|
|
|
49,488
|
|
|
211,783
|
|
|
215,915
|
Interest expense
|
|
|
(10,709)
|
|
|
(8,066)
|
|
|
(36,317)
|
|
|
(29,131)
|
Interest income
|
|
|
3
|
|
|
65
|
|
|
72
|
|
|
144
|
Foreign currency transaction loss
|
|
|
(152)
|
|
|
(241)
|
|
|
(1,205)
|
|
|
(313)
|
Loss on extinguishment of debt
|
|
|
(261)
|
|
|
-
|
|
|
(607)
|
|
|
-
|
Equity in loss of unconsolidated subsidiary
|
|
|
-
|
|
|
(86)
|
|
|
(136)
|
|
|
(295)
|
Income before Income Taxes
|
|
|
45,311
|
|
|
41,160
|
|
|
173,590
|
|
|
186,320
|
Provision for income taxes
|
|
|
18,027
|
|
|
17,169
|
|
|
30,754
|
|
|
84,656
|
Net Income
|
|
|
27,284
|
|
|
23,991
|
|
|
142,836
|
|
|
101,664
|
Net loss (income) attributable to the noncontrolling interest
|
|
|
-
|
|
|
489
|
|
|
(308)
|
|
|
5,806
|
Net Income Attributable to Cash America International, Inc.
|
|
$
|
27,284
|
|
$
|
24,480
|
|
$
|
142,528
|
|
$
|
107,470
|
Earnings Per Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributable to Cash America International, Inc. common
shareholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.96
|
|
$
|
0.84
|
|
$
|
4.97
|
|
$
|
3.64
|
Diluted
|
|
$
|
0.91
|
|
$
|
0.79
|
|
$
|
4.66
|
|
$
|
3.42
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,391
|
|
|
29,262
|
|
|
28,657
|
|
|
29,514
|
Diluted
|
|
|
29,968
|
|
|
30,884
|
|
|
30,613
|
|
|
31,452
|
Dividends declared per common share
|
|
$
|
0.035
|
|
$
|
0.035
|
|
$
|
0.140
|
|
$
|
0.140
|
|
|
|
|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
PAWN LENDING ACTIVITIES – FINANCIAL AND OPERATING DATA
|
(dollars in thousands, except where otherwise noted)
|
|
The following tables outline certain data related to pawn loan
activities of Cash America International, Inc. (the “Company”) as
of and for the three months and years ended December 31, 2013 and
2012 (dollars in thousands).
|
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
2013
|
|
2012
|
|
Change
|
|
% Change
|
Ending pawn loan balances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
256,772
|
|
$
|
240,573
|
|
$
|
16,199
|
|
6.7
|
%
|
Foreign retail services
|
|
|
|
4,376
|
|
|
4,067
|
|
|
309
|
|
7.6
|
%
|
Consolidated pawn loan balances
|
|
|
$
|
261,148
|
|
$
|
244,640
|
|
$
|
16,508
|
|
6.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending merchandise balance, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
203,823
|
|
$
|
161,655
|
|
$
|
42,168
|
|
26.1
|
%
|
Foreign retail services
|
|
|
|
5,076
|
|
|
5,754
|
|
|
(678)
|
|
(11.8)
|
%
|
Consolidated merchandise balance, net
|
|
|
$
|
208,899
|
|
$
|
167,409
|
|
$
|
41,490
|
|
24.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2013
|
|
2012
|
|
Change
|
|
% Change
|
Pawn loan fees and service charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
82,003
|
|
$
|
77,354
|
|
$
|
4,649
|
|
6.0
|
%
|
Foreign retail services
|
|
|
|
1,856
|
|
|
2,125
|
|
|
(269)
|
|
(12.7)
|
%
|
Consolidated pawn loan fees and service charges
|
|
|
$
|
83,859
|
|
$
|
79,479
|
|
$
|
4,380
|
|
5.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average pawn loan balance outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
249,777
|
|
$
|
240,545
|
|
$
|
9,232
|
|
3.8
|
%
|
Foreign retail services
|
|
|
|
5,100
|
|
|
7,775
|
|
|
(2,675)
|
|
(34.4)
|
%
|
Consolidated average pawn loans outstanding
|
|
|
$
|
254,877
|
|
$
|
248,320
|
|
$
|
6,557
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of pawn loans written and renewed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
250,783
|
|
$
|
241,215
|
|
$
|
9,568
|
|
4.0
|
%
|
Foreign retail services
|
|
|
|
13,817
|
|
|
19,386
|
|
|
(5,569)
|
|
(28.7)
|
%
|
Consolidated amount of pawn loans written and renewed
|
|
|
$
|
264,600
|
|
$
|
260,601
|
|
$
|
3,999
|
|
1.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average amount per pawn loan (in ones)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
127
|
|
$
|
133
|
|
$
|
(6)
|
|
(4.5)
|
%
|
Foreign retail services
|
|
|
$
|
89
|
|
$
|
84
|
|
$
|
5
|
|
6.0
|
%
|
Consolidated average amount per pawn loan (in ones)
|
|
|
$
|
124
|
|
$
|
127
|
|
$
|
(3)
|
|
(2.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized yield on pawn loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
|
130.3%
|
|
|
127.9%
|
|
|
|
|
|
|
Foreign retail services
|
|
|
|
144.4%
|
|
|
108.7%
|
|
|
|
|
|
|
Consolidated annualized yield on pawn loans
|
|
|
|
130.5%
|
|
|
127.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin on disposition of merchandise
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
|
31.3%
|
|
|
32.6%
|
|
|
|
|
|
|
Foreign retail services
|
|
|
|
2.2%
|
|
|
13.5%
|
|
|
|
|
|
|
Gross profit margin on disposition of merchandise
|
|
|
|
30.2%
|
|
|
31.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandise turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
|
2.1
|
|
|
2.8
|
|
|
|
|
|
|
Foreign retail services
|
|
|
|
3.5
|
|
|
4.3
|
|
|
|
|
|
|
Consolidated merchandise turnover
|
|
|
|
2.1
|
|
|
2.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
PAWN LENDING ACTIVITIES – FINANCIAL AND OPERATING DATA
|
(dollars in thousands, except where otherwise noted)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2013
|
|
2012
|
|
Change
|
|
% Change
|
Pawn loan fees and service charges
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
304,511
|
|
$
|
288,161
|
|
$
|
16,350
|
|
5.7
|
%
|
Foreign retail services
|
|
|
|
7,288
|
|
|
12,768
|
|
|
(5,480)
|
|
(42.9)
|
%
|
Consolidated pawn loan fees and service charges
|
|
|
$
|
311,799
|
|
$
|
300,929
|
|
$
|
10,870
|
|
3.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average pawn loan balance outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
233,166
|
|
$
|
225,066
|
|
$
|
8,100
|
|
3.6
|
%
|
Foreign retail services
|
|
|
|
4,943
|
|
|
12,055
|
|
|
(7,112)
|
|
(59.0)
|
%
|
Consolidated average pawn loans outstanding
|
|
|
$
|
238,109
|
|
$
|
237,121
|
|
$
|
988
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amount of pawn loans written and renewed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
958,542
|
|
$
|
916,215
|
|
$
|
42,327
|
|
4.6
|
%
|
Foreign retail services
|
|
|
|
56,120
|
|
|
124,263
|
|
|
(68,143)
|
|
(54.8)
|
%
|
Consolidated amount of pawn loans written and renewed
|
|
|
$
|
1,014,662
|
|
$
|
1,040,478
|
|
$
|
(25,816)
|
|
(2.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average amount per pawn loan (in ones)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
$
|
127
|
|
$
|
131
|
|
$
|
(4)
|
|
(3.1)
|
%
|
Foreign retail services
|
|
|
$
|
87
|
|
$
|
88
|
|
$
|
(1)
|
|
(1.1)
|
%
|
Consolidated average amount per pawn loan (in ones)
|
|
|
$
|
124
|
|
$
|
124
|
|
$
|
-
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized yield on pawn loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
|
130.6%
|
|
|
128.0%
|
|
|
|
|
|
|
Foreign retail services
|
|
|
|
147.4%
|
|
|
105.9%
|
|
|
|
|
|
|
Consolidated annualized yield on pawn loans
|
|
|
|
130.9%
|
|
|
126.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit margin on disposition of merchandise
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
|
31.6%
|
|
|
33.5%
|
|
|
|
|
|
|
Foreign retail services
|
|
|
|
13.3%
|
|
|
12.0%
|
|
|
|
|
|
|
Gross profit margin on disposition of merchandise
|
|
|
|
31.0%
|
|
|
32.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merchandise turnover
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic retail services
|
|
|
|
2.3
|
|
|
2.9
|
|
|
|
|
|
|
Foreign retail services
|
|
|
|
2.8
|
|
|
3.9
|
|
|
|
|
|
|
Consolidated merchandise turnover
|
|
|
|
2.4
|
|
|
3.0
|
|
|
|
|
|
|
|
|
|
|
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 the Company's cost basis in the
pawn loan 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 months and years
ended December 31, 2013 and 2012 (dollars in thousands).
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
Retail
|
|
Commercial
|
|
Total
|
|
Retail
|
|
Commercial
|
|
Total
|
Proceeds from disposition
|
|
|
$
|
131,229
|
|
|
$
|
25,301
|
|
|
$
|
156,530
|
|
|
$
|
113,964
|
|
|
$
|
71,971
|
|
|
$
|
185,935
|
|
Gross profit on disposition
|
|
|
$
|
42,930
|
|
|
$
|
4,384
|
|
|
$
|
47,314
|
|
|
$
|
40,625
|
|
|
$
|
18,009
|
|
|
$
|
58,634
|
|
Gross profit margin
|
|
|
|
32.7
|
%
|
|
|
17.3
|
%
|
|
|
30.2
|
%
|
|
|
35.6
|
%
|
|
|
25.0
|
%
|
|
|
31.5
|
%
|
Percentage of total gross profit
|
|
|
|
90.7
|
%
|
|
|
9.3
|
%
|
|
|
100.0
|
%
|
|
|
69.3
|
%
|
|
|
30.7
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
Retail
|
|
Commercial
|
|
Total
|
|
Retail
|
|
Commercial
|
|
Total
|
Proceeds from disposition
|
|
|
$
|
427,644
|
|
|
$
|
167,795
|
|
|
$
|
595,439
|
|
|
$
|
391,566
|
|
|
$
|
312,201
|
|
|
$
|
703,767
|
|
Gross profit on disposition
|
|
|
$
|
151,757
|
|
|
$
|
33,069
|
|
|
$
|
184,826
|
|
|
$
|
144,095
|
|
|
$
|
81,493
|
|
|
$
|
225,588
|
|
Gross profit margin
|
|
|
|
35.5
|
%
|
|
|
19.7
|
%
|
|
|
31.0
|
%
|
|
|
36.8
|
%
|
|
|
26.1
|
%
|
|
|
32.1
|
%
|
Percentage of total gross profit
|
|
|
|
82.1
|
%
|
|
|
17.9
|
%
|
|
|
100.0
|
%
|
|
|
63.9
|
%
|
|
|
36.1
|
%
|
|
|
100.0
|
%
|
|
|
|
|
|
The table below summarizes the age of merchandise held
for disposition before valuation allowance of $0.9 million as of
both December 31, 2013 and 2012 (dollars in thousands).
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
Amount
|
|
%
|
|
|
Amount
|
|
%
|
Jewelry – held for one year or less
|
|
|
$
|
116,256
|
|
55.4
|
|
|
$
|
99,466
|
|
59.1
|
Other merchandise – held for one year or less
|
|
|
|
79,851
|
|
38.1
|
|
|
|
59,914
|
|
35.6
|
Total merchandise held for one year or less
|
|
|
|
196,107
|
|
93.5
|
|
|
|
159,380
|
|
94.7
|
Jewelry – held for more than one year
|
|
|
|
6,734
|
|
3.2
|
|
|
|
3,283
|
|
2.0
|
Other merchandise – held for more than one year
|
|
|
|
7,007
|
|
3.3
|
|
|
|
5,597
|
|
3.3
|
Total merchandise held for more than one year
|
|
|
|
13,741
|
|
6.5
|
|
|
|
8,880
|
|
5.3
|
Total merchandise held for disposition
|
|
|
$
|
209,848
|
|
100.0
|
|
|
$
|
168,260
|
|
100.0
|
|
|
|
|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSUMER LOAN FINANCIAL AND OPERATING DATA
|
(dollars in thousands, except where otherwise noted)
|
|
The following tables set forth consumer loan fees by segment,
adjusted for the deduction of the loan loss provision for the
three months and years ended December 31, 2013 and 2012 (dollars
in thousands).
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
Retail Services
|
|
E-Commerce
|
|
Total
|
|
Retail Services
|
|
E-Commerce
|
|
Total
|
Interest and fees on short-term loans
|
|
|
$
|
25,145
|
|
|
$
|
79,157
|
|
|
$
|
104,302
|
|
|
$
|
28,803
|
|
|
$
|
120,539
|
|
|
$
|
149,342
|
|
Interest and fees on line of credit accounts
|
|
|
|
-
|
|
|
|
68,475
|
|
|
|
68,475
|
|
|
|
-
|
|
|
|
27,558
|
|
|
|
27,558
|
|
Interest and fees on installment loans
|
|
|
|
3,593
|
|
|
|
61,614
|
|
|
|
65,207
|
|
|
|
3,693
|
|
|
|
42,271
|
|
|
|
45,964
|
|
Consumer loan fees
|
|
|
$
|
28,738
|
|
|
$
|
209,246
|
|
|
$
|
237,984
|
|
|
$
|
32,496
|
|
|
$
|
190,368
|
|
|
$
|
222,864
|
|
Consumer loan loss provision
|
|
|
|
9,432
|
|
|
|
90,049
|
|
|
|
99,481
|
|
|
|
10,095
|
|
|
|
87,120
|
|
|
|
97,215
|
|
Consumer loan fees, net of loss provision
|
|
|
$
|
19,306
|
|
|
$
|
119,197
|
|
|
$
|
138,503
|
|
|
$
|
22,401
|
|
|
$
|
103,248
|
|
|
$
|
125,649
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change - $
|
|
|
$
|
(3,095)
|
|
|
$
|
15,949
|
|
|
$
|
12,854
|
|
|
$
|
(2,410)
|
|
|
$
|
28,418
|
|
|
$
|
26,008
|
|
Year-over-year change - %
|
|
|
|
(13.8)
|
%
|
|
|
15.4
|
%
|
|
|
10.2
|
%
|
|
|
(9.7)
|
%
|
|
|
38.0
|
%
|
|
|
26.1
|
%
|
Consumer loan loss provision as a % of consumer loan fees
|
|
|
|
32.8
|
%
|
|
|
43.0
|
%
|
|
|
41.8
|
%
|
|
|
31.1
|
%
|
|
|
45.8
|
%
|
|
|
43.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
Retail Services
|
|
E-Commerce
|
|
Total
|
|
Retail Services
|
|
E-Commerce
|
|
Total
|
Interest and fees on short-term loans
|
|
|
$
|
100,146
|
|
|
$
|
389,706
|
|
|
$
|
489,852
|
|
|
$
|
109,972
|
|
|
$
|
459,793
|
|
|
$
|
569,765
|
|
Interest and fees on line of credit accounts
|
|
|
|
-
|
|
|
|
170,496
|
|
|
|
170,496
|
|
|
|
-
|
|
|
|
73,572
|
|
|
|
73,572
|
|
Interest and fees on installment loans
|
|
|
|
13,065
|
|
|
|
204,770
|
|
|
|
217,835
|
|
|
|
11,920
|
|
|
|
126,263
|
|
|
|
138,183
|
|
Consumer loan fees
|
|
|
$
|
113,211
|
|
|
$
|
764,972
|
|
|
$
|
878,183
|
|
|
$
|
121,892
|
|
|
$
|
659,628
|
|
|
$
|
781,520
|
|
Consumer loan loss provision
|
|
|
|
33,359
|
|
|
|
317,896
|
|
|
|
351,255
|
|
|
|
29,225
|
|
|
|
287,069
|
|
|
|
316,294
|
|
Consumer loan fees, net of loss provision
|
|
|
$
|
79,852
|
|
|
$
|
447,076
|
|
|
$
|
526,928
|
|
|
$
|
92,667
|
|
|
$
|
372,559
|
|
|
$
|
465,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-over-year change - $
|
|
|
$
|
(12,815)
|
|
|
$
|
74,517
|
|
|
$
|
61,702
|
|
|
$
|
(2,524)
|
|
|
$
|
94,792
|
|
|
$
|
92,268
|
|
Year-over-year change - %
|
|
|
|
(13.8)
|
%
|
|
|
20.0
|
%
|
|
|
13.3
|
%
|
|
|
(2.7)
|
%
|
|
|
34.1
|
%
|
|
|
24.7
|
%
|
Consumer loan loss provision as a % of consumer loan fees
|
|
|
|
29.5
|
%
|
|
|
41.6
|
%
|
|
|
40.0
|
%
|
|
|
24.0
|
%
|
|
|
43.5
|
%
|
|
|
40.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
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.
|
|
|
|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSUMER LOAN FINANCIAL AND OPERATING DATA
|
(dollars in thousands, except where otherwise noted)
|
|
The following tables summarize selected data related to the
Company’s consumer loan activities as of and for the three months
and years ended December 31, 2013 and 2012.
|
|
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 December 31, 2013 and 2012.
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
Short-term loans:
|
|
|
|
|
|
Combined consumer loan loss provision as a % of combined consumer
loans written and renewed(a)
|
|
|
5.5%
|
|
6.8%
|
Charge-offs (net of recoveries) as a % of combined consumer loans
written and renewed(a)
|
|
|
7.2%
|
|
6.6%
|
Combined consumer loan loss provision as a % of consumer loan fees
|
|
|
32.2%
|
|
37.3%
|
Allowance and liability for losses as a % of combined
consumer loans and fees receivable, gross(b)
|
|
|
15.1%
|
|
19.2%
|
|
|
|
|
|
|
(a) The disclosure regarding the amount of consumer
loans written and renewed is statistical data that is not included
in the Company's financial statements.
|
(b) Non-GAAP measure.
|
|
|
|
|
The following table shows line of credit accounts and installment
loans and related loan loss activity, which is based on average
amount of consumer loan balance, for the three months ended
December 31, 2013 and 2012.
|
|
|
|
Three Months Ended
|
|
|
December 31,
|
|
|
2013
|
|
2012
|
Line of credit accounts:
|
|
|
|
|
Combined consumer loan loss provision as a % of combined average
consumer loan balance(a)(b)
|
|
29.0%
|
|
40.7%
|
Charge-offs (net of recoveries) as a % of combined average
consumer loan balance(a)(b)
|
|
22.0%
|
|
33.4%
|
Combined consumer loan loss provision as a % of consumer loan fees
|
|
47.7%
|
|
60.0%
|
Allowance and liability for losses as a % of combined average
consumer loan balance(a)
|
|
26.4%
|
|
27.3%
|
|
Installment loans:
|
|
|
|
|
Combined consumer loan loss provision as a % of combined average
consumer loan balance(a)(b)
|
|
17.2%
|
|
18.9%
|
Charge-offs (net of recoveries) as a % of combined average
consumer loan balance(a)(b)
|
|
16.9%
|
|
17.7%
|
Combined consumer loan loss provision as a % of consumer loan fees
|
|
50.9%
|
|
54.2%
|
Allowance and liability for losses as a % of combined average
consumer loan balance(a)
|
|
17.8%
|
|
22.1%
|
|
(a)Non-GAAP measure.
|
(b)The average consumer loan balance is the simple
average of the beginning and ending consumer loan balance.
|
|
|
|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSUMER LOAN FINANCIAL AND OPERATING DATA
(dollars in thousands, except where otherwise noted)
|
|
|
|
|
|
Three Months Ended
|
|
|
December 31,
|
|
|
2013
|
|
2012
|
Short-term loans:
|
|
|
|
|
|
|
Combined consumer loan loss provision
|
|
$
|
33,567
|
|
$
|
55,751
|
Charge-offs (net of recoveries)
|
|
|
43,862
|
|
|
53,722
|
Allowance and liability for losses
|
|
|
26,747
|
|
|
48,916
|
|
|
|
Line of credit accounts:
|
|
|
|
|
|
|
Combined consumer loan loss provision
|
|
$
|
32,694
|
|
$
|
16,534
|
Charge-offs (net of recoveries)
|
|
|
24,844
|
|
|
13,590
|
Allowance and liability for losses
|
|
|
29,784
|
|
|
11,107
|
Company owned average consumer loan balance
|
|
|
112,704
|
|
|
40,652
|
|
|
|
|
|
|
|
Installment loans:
|
|
|
|
|
|
|
Combined consumer loan loss provision
|
|
$
|
33,220
|
|
$
|
24,930
|
Charge-offs (net of recoveries)
|
|
|
32,615
|
|
|
23,385
|
Allowance and liability for losses
|
|
|
34,415
|
|
|
29,178
|
|
|
|
Average consumer loan balance:
|
|
|
|
|
|
|
Company owned
|
|
$
|
181,637
|
|
$
|
124,060
|
Guaranteed by the Company
|
|
|
11,457
|
|
|
8,051
|
Combined average consumer loan balance(a)
|
|
$
|
193,094
|
|
$
|
132,111
|
(a)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 December 31, 2013 and 2012 (dollars in thousands):
|
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
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
|
|
|
$
|
49,856
|
|
|
$
|
4,900
|
|
|
$
|
54,756
|
|
|
$
|
52,171
|
|
|
$
|
7,134
|
|
|
$
|
59,305
|
Installment loans
|
|
|
|
9,787
|
|
|
|
12,639
|
|
|
|
22,426
|
|
|
|
11,246
|
|
|
|
9,395
|
|
|
|
20,641
|
Total Retail Services, gross
|
|
|
|
59,643
|
|
|
|
17,539
|
|
|
|
77,182
|
|
|
|
63,417
|
|
|
|
16,529
|
|
|
|
79,946
|
E-Commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
|
33,494
|
|
|
|
41,411
|
|
|
|
74,905
|
|
|
|
38,227
|
|
|
|
44,261
|
|
|
|
82,488
|
Line of credit accounts
|
|
|
|
66,247
|
|
|
|
-
|
|
|
|
66,247
|
|
|
|
42,700
|
|
|
|
-
|
|
|
|
42,700
|
Installment loans
|
|
|
|
76,770
|
|
|
|
-
|
|
|
|
76,770
|
|
|
|
45,996
|
|
|
|
-
|
|
|
|
45,996
|
Total Domestic, gross
|
|
|
|
176,511
|
|
|
|
41,411
|
|
|
|
217,922
|
|
|
|
126,923
|
|
|
|
44,261
|
|
|
|
171,184
|
|
|
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
|
47,886
|
|
|
|
-
|
|
|
|
47,886
|
|
|
|
108,899
|
|
|
|
3,946
|
|
|
|
112,845
|
Line of credit accounts
|
|
|
|
59,555
|
|
|
|
-
|
|
|
|
59,555
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Installment loans
|
|
|
|
103,112
|
|
|
|
-
|
|
|
|
103,112
|
|
|
|
75,882
|
|
|
|
-
|
|
|
|
75,882
|
Total Foreign, gross
|
|
|
|
210,553
|
|
|
|
-
|
|
|
|
210,553
|
|
|
|
184,781
|
|
|
|
3,946
|
|
|
|
188,727
|
Total E-Commerce, gross
|
|
|
|
387,064
|
|
|
|
41,411
|
|
|
|
428,475
|
|
|
|
311,704
|
|
|
|
48,207
|
|
|
|
359,911
|
|
|
|
|
Total ending loan balance, gross
|
|
|
|
446,707
|
|
|
|
58,950
|
|
|
|
505,657
|
|
|
|
375,121
|
|
|
|
64,736
|
|
|
|
439,857
|
Less: Allowance and liabilities for losses
|
|
|
|
(87,866)
|
|
|
|
(3,080)
|
|
|
|
(90,946)
|
|
|
|
(85,703)
|
|
|
|
(3,498)
|
|
|
|
(89,201)
|
Total ending loan balance, net
|
|
|
$
|
358,841
|
|
|
$
|
55,870
|
|
|
$
|
414,711
|
|
|
$
|
289,418
|
|
|
$
|
61,238
|
|
|
$
|
350,656
|
Allowance and liability for losses as a % of consumer loan balances,
gross
|
|
|
|
19.7%
|
|
|
|
5.2%
|
|
|
|
18.0%
|
|
|
|
22.8%
|
|
|
|
5.4%
|
|
|
|
20.3%
|
|
|
|
|
|
(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 financial statements.
|
(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 months and years ended December 31, 2013 and
2012 (dollars in thousands, except where otherwise noted).
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
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
|
|
|
$
|
187,199
|
|
|
$
|
21,337
|
|
|
$
|
208,536
|
|
|
$
|
198,645
|
|
|
$
|
36,216
|
|
|
$
|
234,861
|
Installment loans
|
|
|
|
1,966
|
|
|
|
7,863
|
|
|
|
9,829
|
|
|
|
2,033
|
|
|
|
7,289
|
|
|
|
9,322
|
Total Retail Services
|
|
|
|
189,165
|
|
|
|
29,200
|
|
|
|
218,365
|
|
|
|
200,678
|
|
|
|
43,505
|
|
|
|
244,183
|
E-Commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
|
79,447
|
|
|
|
188,628
|
|
|
|
268,075
|
|
|
|
83,447
|
|
|
|
206,169
|
|
|
|
289,616
|
Line of credit accounts
|
|
|
|
50,262
|
|
|
|
-
|
|
|
|
50,262
|
|
|
|
33,681
|
|
|
|
-
|
|
|
|
33,681
|
Installment loans
|
|
|
|
50,769
|
|
|
|
-
|
|
|
|
50,769
|
|
|
|
32,244
|
|
|
|
-
|
|
|
|
32,244
|
Total Domestic
|
|
|
|
180,478
|
|
|
|
188,628
|
|
|
|
369,106
|
|
|
|
149,372
|
|
|
|
206,169
|
|
|
|
355,541
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
|
132,135
|
|
|
|
-
|
|
|
|
132,135
|
|
|
|
271,652
|
|
|
|
19,868
|
|
|
|
291,520
|
Line of credit accounts
|
|
|
|
75,614
|
|
|
|
-
|
|
|
|
75,614
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Installment loans
|
|
|
|
87,917
|
|
|
|
-
|
|
|
|
87,917
|
|
|
|
41,319
|
|
|
|
-
|
|
|
|
41,319
|
Total Foreign
|
|
|
|
295,666
|
|
|
|
-
|
|
|
|
295,666
|
|
|
|
312,971
|
|
|
|
19,868
|
|
|
|
332,839
|
Total E-Commerce
|
|
|
|
476,144
|
|
|
|
188,628
|
|
|
|
664,772
|
|
|
|
462,343
|
|
|
|
226,037
|
|
|
|
688,380
|
|
Total amount of consumer loans written and renewed
|
|
|
$
|
665,309
|
|
|
$
|
217,828
|
|
|
$
|
883,137
|
|
|
$
|
663,021
|
|
|
$
|
269,542
|
|
|
$
|
932,563
|
Number of consumer loans written
and renewed (in ones):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
|
390,255
|
|
|
|
40,651
|
|
|
|
430,906
|
|
|
|
414,714
|
|
|
|
68,508
|
|
|
|
483,222
|
Installment loans
|
|
|
|
1,713
|
|
|
|
4,515
|
|
|
|
6,228
|
|
|
|
1,836
|
|
|
|
1,339
|
|
|
|
3,175
|
Total Retail Services
|
|
|
|
391,968
|
|
|
|
45,166
|
|
|
|
437,134
|
|
|
|
416,550
|
|
|
|
69,847
|
|
|
|
486,397
|
E-Commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
|
242,621
|
|
|
|
271,392
|
|
|
|
514,013
|
|
|
|
277,756
|
|
|
|
279,905
|
|
|
|
557,661
|
Line of credit accounts
|
|
|
|
195,868
|
|
|
|
-
|
|
|
|
195,868
|
|
|
|
126,292
|
|
|
|
-
|
|
|
|
126,292
|
Installment loans
|
|
|
|
40,844
|
|
|
|
-
|
|
|
|
40,844
|
|
|
|
30,017
|
|
|
|
-
|
|
|
|
30,017
|
Total Domestic
|
|
|
|
479,333
|
|
|
|
271,392
|
|
|
|
750,725
|
|
|
|
434,065
|
|
|
|
279,905
|
|
|
|
713,970
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
|
244,835
|
|
|
|
-
|
|
|
|
244,835
|
|
|
|
455,579
|
|
|
|
25,985
|
|
|
|
481,564
|
Line of credit accounts
|
|
|
|
228,744
|
|
|
|
-
|
|
|
|
228,744
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Installment loans
|
|
|
|
73,379
|
|
|
|
-
|
|
|
|
73,379
|
|
|
|
34,711
|
|
|
|
-
|
|
|
|
34,711
|
Total Foreign
|
|
|
|
546,958
|
|
|
|
-
|
|
|
|
546,958
|
|
|
|
490,290
|
|
|
|
25,985
|
|
|
|
516,275
|
Total E-Commerce
|
|
|
|
1,026,291
|
|
|
|
271,392
|
|
|
|
1,297,683
|
|
|
|
924,355
|
|
|
|
305,890
|
|
|
|
1,230,245
|
|
Total number of consumer loans written
and renewed
|
|
|
|
1,418,259
|
|
|
|
316,558
|
|
|
|
1,734,817
|
|
|
|
1,340,905
|
|
|
|
375,737
|
|
|
|
1,716,642
|
(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)
|
|
|
|
|
|
Year Ended December 31,
|
|
|
2013
|
|
|
2012
|
|
|
Company Owned(a)
|
|
|
Guaranteed by the Company(a)(b)
|
|
|
Combined(a)
|
|
|
Guaranteed by the Company(a)
|
|
|
Guaranteed by the Company(a)(b)
|
|
|
Guaranteed by the Company(a)
|
Amount of consumer loans written
and renewed (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
$
|
712,253
|
|
|
$
|
104,236
|
|
|
$
|
816,489
|
|
|
$
|
743,575
|
|
|
$
|
145,221
|
|
|
$
|
888,796
|
Installment loans
|
|
|
7,488
|
|
|
|
21,734
|
|
|
|
29,222
|
|
|
|
7,723
|
|
|
|
17,902
|
|
|
|
25,625
|
Total Retail Services
|
|
|
719,741
|
|
|
|
125,970
|
|
|
|
845,711
|
|
|
|
751,298
|
|
|
|
163,123
|
|
|
|
914,421
|
E-Commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
302,353
|
|
|
|
708,828
|
|
|
|
1,011,181
|
|
|
|
331,754
|
|
|
|
747,533
|
|
|
|
1,079,287
|
Line of credit accounts
|
|
|
163,805
|
|
|
|
-
|
|
|
|
163,805
|
|
|
|
116,360
|
|
|
|
-
|
|
|
|
116,360
|
Installment loans
|
|
|
155,068
|
|
|
|
-
|
|
|
|
155,068
|
|
|
|
89,598
|
|
|
|
-
|
|
|
|
89,598
|
Total Domestic
|
|
|
621,226
|
|
|
|
708,828
|
|
|
|
1,330,054
|
|
|
|
537,712
|
|
|
|
747,533
|
|
|
|
1,285,245
|
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
820,243
|
|
|
|
14,572
|
|
|
|
834,815
|
|
|
|
1,010,334
|
|
|
|
72,592
|
|
|
|
1,082,926
|
Line of credit accounts
|
|
|
147,844
|
|
|
|
-
|
|
|
|
147,844
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Installment loans
|
|
|
283,615
|
|
|
|
-
|
|
|
|
283,615
|
|
|
|
133,109
|
|
|
|
-
|
|
|
|
133,109
|
Total Foreign
|
|
|
1,251,702
|
|
|
|
14,572
|
|
|
|
1,266,274
|
|
|
|
1,143,443
|
|
|
|
72,592
|
|
|
|
1,216,035
|
Total E-Commerce
|
|
|
1,872,928
|
|
|
|
723,400
|
|
|
|
2,596,328
|
|
|
|
1,681,155
|
|
|
|
820,125
|
|
|
|
2,501,280
|
|
|
Total amount of consumer loans written and renewed
|
|
$
|
2,592,669
|
|
|
$
|
849,370
|
|
|
$
|
3,442,039
|
|
|
$
|
2,432,453
|
|
|
$
|
983,248
|
|
|
$
|
3,415,701
|
Number of consumer loans written
and renewed (in ones):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
1,490,507
|
|
|
|
201,400
|
|
|
|
1,691,907
|
|
|
|
1,574,163
|
|
|
|
269,144
|
|
|
|
1,843,307
|
Installment loans
|
|
|
6,735
|
|
|
|
7,060
|
|
|
|
13,795
|
|
|
|
7,088
|
|
|
|
2,845
|
|
|
|
9,933
|
Total Retail Services
|
|
|
1,497,242
|
|
|
|
208,460
|
|
|
|
1,705,702
|
|
|
|
1,581,251
|
|
|
|
271,989
|
|
|
|
1,853,240
|
E-Commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
979,890
|
|
|
|
998,220
|
|
|
|
1,978,110
|
|
|
|
1,062,105
|
|
|
|
1,021,057
|
|
|
|
2,083,162
|
Line of credit accounts
|
|
|
618,979
|
|
|
|
-
|
|
|
|
618,979
|
|
|
|
417,171
|
|
|
|
-
|
|
|
|
417,171
|
Installment loans
|
|
|
134,350
|
|
|
|
-
|
|
|
|
134,350
|
|
|
|
87,272
|
|
|
|
-
|
|
|
|
87,272
|
Total Domestic
|
|
|
1,733,219
|
|
|
|
998,220
|
|
|
|
2,731,439
|
|
|
|
1,566,548
|
|
|
|
1,021,057
|
|
|
|
2,587,605
|
|
|
Foreign
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term loans
|
|
|
1,491,931
|
|
|
|
19,106
|
|
|
|
1,511,037
|
|
|
|
1,815,420
|
|
|
|
95,630
|
|
|
|
1,911,050
|
Line of credit accounts
|
|
|
423,692
|
|
|
|
-
|
|
|
|
423,692
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Installment loans
|
|
|
239,631
|
|
|
|
-
|
|
|
|
239,631
|
|
|
|
115,250
|
|
|
|
-
|
|
|
|
115,250
|
Total Foreign
|
|
|
2,155,254
|
|
|
|
19,106
|
|
|
|
2,174,360
|
|
|
|
1,930,670
|
|
|
|
95,630
|
|
|
|
2,026,300
|
Total E-Commerce
|
|
|
3,888,473
|
|
|
|
1,017,326
|
|
|
|
4,905,799
|
|
|
|
3,497,218
|
|
|
|
1,116,687
|
|
|
|
4,613,905
|
|
|
Total number of consumer loans written
and renewed
|
|
|
5,385,715
|
|
|
|
1,225,786
|
|
|
|
6,611,501
|
|
|
|
5,078,469
|
|
|
|
1,388,676
|
|
|
|
6,467,145
|
|
|
|
(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
months and years ended December 31, 2013 and 2012 (dollars in
thousands).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Services
|
|
|
E-Commerce
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
Foreign
|
|
|
Total
|
|
|
Domestic
|
|
|
Foreign
|
|
|
Total
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pawn loan fees and service charges
|
|
$
|
82,003
|
|
|
$
|
1,856
|
|
|
$
|
83,859
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
83,859
|
Proceeds from disposition of merchandise
|
|
|
150,991
|
|
|
|
5,539
|
|
|
|
156,530
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
156,530
|
Consumer loan fees
|
|
|
28,738
|
|
|
|
-
|
|
|
|
28,738
|
|
|
|
111,375
|
|
|
|
97,871
|
|
|
|
209,246
|
|
|
|
-
|
|
|
|
237,984
|
Other
|
|
|
1,669
|
|
|
|
88
|
|
|
|
1,757
|
|
|
|
44
|
|
|
|
10
|
|
|
|
54
|
|
|
|
162
|
|
|
|
1,973
|
Total revenue
|
|
|
263,401
|
|
|
|
7,483
|
|
|
|
270,884
|
|
|
|
111,419
|
|
|
|
97,881
|
|
|
|
209,300
|
|
|
|
162
|
|
|
|
480,346
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposed merchandise
|
|
|
103,801
|
|
|
|
5,415
|
|
|
|
109,216
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
109,216
|
Consumer loan loss provision
|
|
|
9,432
|
|
|
|
-
|
|
|
|
9,432
|
|
|
|
46,900
|
|
|
|
43,149
|
|
|
|
90,049
|
|
|
|
-
|
|
|
|
99,481
|
Total cost of revenue
|
|
|
113,233
|
|
|
|
5,415
|
|
|
|
118,648
|
|
|
|
46,900
|
|
|
|
43,149
|
|
|
|
90,049
|
|
|
|
-
|
|
|
|
208,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
150,168
|
|
|
|
2,068
|
|
|
|
152,236
|
|
|
|
64,519
|
|
|
|
54,732
|
|
|
|
119,251
|
|
|
|
162
|
|
|
|
271,649
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and administration
|
|
|
96,620
|
|
|
|
3,445
|
|
|
|
100,065
|
|
|
|
43,720
|
|
|
|
33,679
|
|
|
|
77,399
|
|
|
|
18,798
|
|
|
|
196,262
|
Depreciation and amortization
|
|
|
10,064
|
|
|
|
404
|
|
|
|
10,468
|
|
|
|
3,650
|
|
|
|
507
|
|
|
|
4,157
|
|
|
|
4,332
|
|
|
|
18,957
|
Total expenses
|
|
|
106,684
|
|
|
|
3,849
|
|
|
|
110,533
|
|
|
|
47,370
|
|
|
|
34,186
|
|
|
|
81,556
|
|
|
|
23,130
|
|
|
|
215,219
|
Income (loss) from operations
|
|
$
|
43,484
|
|
|
$
|
(1,781)
|
|
|
$
|
41,703
|
|
|
$
|
17,149
|
|
|
$
|
20,546
|
|
|
$
|
37,695
|
|
|
$
|
(22,968)
|
|
|
$
|
56,430
|
As of December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,177,684
|
|
|
$
|
119,448
|
|
|
$
|
1,297,132
|
|
|
$
|
431,285
|
|
|
$
|
217,415
|
|
|
$
|
648,700
|
|
|
$
|
135,909
|
|
|
$
|
2,081,741
|
Goodwill
|
|
|
|
|
|
|
|
|
|
$
|
495,214
|
|
|
|
|
|
|
|
|
|
|
$
|
210,365
|
|
|
|
|
|
|
$
|
705,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Services
|
|
|
E-Commerce
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
Foreign
|
|
Total
|
|
|
Domestic
|
|
|
Foreign
|
|
|
Total
|
|
|
Corporate
|
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pawn loan fees and service charges
|
|
|
$
|
77,354
|
|
$
|
2,125
|
|
$
|
79,479
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
79,479
|
Proceeds from disposition of merchandise
|
|
|
|
175,546
|
|
|
10,389
|
|
|
185,935
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
185,935
|
Consumer loan fees
|
|
|
|
32,496
|
|
|
-
|
|
|
32,496
|
|
|
|
100,484
|
|
|
|
89,884
|
|
|
|
190,368
|
|
|
|
-
|
|
|
|
222,864
|
Other
|
|
|
|
1,943
|
|
|
697
|
|
|
2,640
|
|
|
|
499
|
|
|
|
14
|
|
|
|
513
|
|
|
|
173
|
|
|
|
3,326
|
Total revenue
|
|
|
|
287,339
|
|
|
13,211
|
|
|
300,550
|
|
|
|
100,983
|
|
|
|
89,898
|
|
|
|
190,881
|
|
|
|
173
|
|
|
|
491,604
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposed merchandise
|
|
|
|
118,311
|
|
|
8,990
|
|
|
127,301
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
127,301
|
Consumer loan loss provision
|
|
|
|
10,095
|
|
|
-
|
|
|
10,095
|
|
|
|
47,532
|
|
|
|
39,588
|
|
|
|
87,120
|
|
|
|
-
|
|
|
|
97,215
|
Total cost of revenue
|
|
|
|
128,406
|
|
|
8,990
|
|
|
137,396
|
|
|
|
47,532
|
|
|
|
39,588
|
|
|
|
87,120
|
|
|
|
-
|
|
|
|
224,516
|
Net revenue
|
|
|
|
158,933
|
|
|
4,221
|
|
|
163,154
|
|
|
|
53,451
|
|
|
|
50,310
|
|
|
|
103,761
|
|
|
|
173
|
|
|
|
267,088
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and administration
|
|
|
|
104,837
|
|
|
14,066
|
|
|
118,903
|
|
|
|
33,216
|
|
|
|
32,604
|
|
|
|
65,820
|
|
|
|
14,331
|
|
|
|
199,054
|
Depreciation and amortization
|
|
|
|
8,524
|
|
|
2,121
|
|
|
10,645
|
|
|
|
3,611
|
|
|
|
380
|
|
|
|
3,991
|
|
|
|
3,910
|
|
|
|
18,546
|
Total expenses
|
|
|
|
113,361
|
|
|
16,187
|
|
|
129,548
|
|
|
|
36,827
|
|
|
|
32,984
|
|
|
|
69,811
|
|
|
|
18,241
|
|
|
|
217,600
|
Income (loss) from operations
|
|
|
$
|
45,572
|
|
$
|
(11,966)
|
|
$
|
33,606
|
|
|
$
|
16,624
|
|
|
$
|
17,326
|
|
|
$
|
33,950
|
|
|
$
|
(18,068)
|
|
|
$
|
49,488
|
As of December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
1,031,431
|
|
$
|
85,607
|
|
$
|
1,117,038
|
|
|
$
|
391,068
|
|
|
$
|
179,554
|
|
|
$
|
570,622
|
|
|
$
|
130,598
|
|
|
$
|
1,818,258
|
Goodwill
|
|
|
|
|
|
|
|
|
$
|
397,845
|
|
|
|
|
|
|
|
|
|
|
$
|
210,371
|
|
|
|
|
|
|
$
|
608,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
|
INCOME FROM OPERATIONS BY OPERATING SEGMENT
|
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Services
|
|
E-Commerce
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
Foreign
|
|
Total
|
|
Domestic
|
|
Foreign
|
|
Total
|
|
Corporate
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pawn loan fees and service charges
|
|
|
$
|
304,511
|
|
$
|
7,288
|
|
$
|
311,799
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
311,799
|
Proceeds from disposition of merchandise
|
|
|
|
576,707
|
|
|
18,732
|
|
|
595,439
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
595,439
|
Consumer loan fees
|
|
|
|
113,211
|
|
|
-
|
|
|
113,211
|
|
|
394,472
|
|
|
370,500
|
|
|
764,972
|
|
|
-
|
|
|
878,183
|
Other
|
|
|
|
7,818
|
|
|
1,076
|
|
|
8,894
|
|
|
1,095
|
|
|
102
|
|
|
1,197
|
|
|
1,714
|
|
|
11,805
|
Total revenue
|
|
|
|
1,002,247
|
|
|
27,096
|
|
|
1,029,343
|
|
|
395,567
|
|
|
370,602
|
|
|
766,169
|
|
|
1,714
|
|
|
1,797,226
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposed merchandise
|
|
|
|
394,370
|
|
|
16,243
|
|
|
410,613
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
410,613
|
Consumer loan loss provision
|
|
|
|
33,359
|
|
|
-
|
|
|
33,359
|
|
|
159,291
|
|
|
158,605
|
|
|
317,896
|
|
|
-
|
|
|
351,255
|
Total cost of revenue
|
|
|
|
427,729
|
|
|
16,243
|
|
|
443,972
|
|
|
159,291
|
|
|
158,605
|
|
|
317,896
|
|
|
-
|
|
|
761,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
574,518
|
|
|
10,853
|
|
|
585,371
|
|
|
236,276
|
|
|
211,997
|
|
|
448,273
|
|
|
1,714
|
|
|
1,035,358
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and administration
|
|
|
|
388,029
|
|
|
13,448
|
|
|
401,477
|
|
|
143,626
|
|
|
134,879
|
|
|
278,505
|
|
|
70,322
|
|
|
750,304
|
Depreciation and amortization
|
|
|
|
37,643
|
|
|
1,997
|
|
|
39,640
|
|
|
14,535
|
|
|
2,608
|
|
|
17,143
|
|
|
16,488
|
|
|
73,271
|
Total expenses
|
|
|
|
425,672
|
|
|
15,445
|
|
|
441,117
|
|
|
158,161
|
|
|
137,487
|
|
|
295,648
|
|
|
86,810
|
|
|
823,575
|
Income (loss) from operations
|
|
|
$
|
148,846
|
|
$
|
(4,592)
|
|
$
|
144,254
|
|
$
|
78,115
|
|
$
|
74,510
|
|
$
|
152,625
|
|
$
|
(85,096)
|
|
$
|
211,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail Services
|
|
E-Commerce
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
Foreign
|
|
Total
|
|
Domestic
|
|
Foreign
|
|
Total
|
|
Corporate
|
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pawn loan fees and service charges
|
|
|
$
|
288,161
|
|
$
|
12,768
|
|
$
|
300,929
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
-
|
|
$
|
300,929
|
Proceeds from disposition of merchandise
|
|
|
|
657,104
|
|
|
46,663
|
|
|
703,767
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
703,767
|
Consumer loan fees
|
|
|
|
121,892
|
|
|
-
|
|
|
121,892
|
|
|
332,752
|
|
|
326,876
|
|
|
659,628
|
|
|
-
|
|
|
781,520
|
Other
|
|
|
|
9,028
|
|
|
1,209
|
|
|
10,237
|
|
|
1,326
|
|
|
33
|
|
|
1,359
|
|
|
2,618
|
|
|
14,214
|
Total revenue
|
|
|
|
1,076,185
|
|
|
60,640
|
|
|
1,136,825
|
|
|
334,078
|
|
|
326,909
|
|
|
660,987
|
|
|
2,618
|
|
|
1,800,430
|
Cost of revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposed merchandise
|
|
|
|
437,099
|
|
|
41,080
|
|
|
478,179
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
478,179
|
Consumer loan loss provision
|
|
|
|
29,225
|
|
|
-
|
|
|
29,225
|
|
|
143,006
|
|
|
144,063
|
|
|
287,069
|
|
|
-
|
|
|
316,294
|
Total cost of revenue
|
|
|
|
466,324
|
|
|
41,080
|
|
|
507,404
|
|
|
143,006
|
|
|
144,063
|
|
|
287,069
|
|
|
-
|
|
|
794,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
|
|
609,861
|
|
|
19,560
|
|
|
629,421
|
|
|
191,072
|
|
|
182,846
|
|
|
373,918
|
|
|
2,618
|
|
|
1,005,957
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations and administration
|
|
|
|
369,174
|
|
|
44,287
|
|
|
413,461
|
|
|
116,202
|
|
|
118,156
|
|
|
234,358
|
|
|
66,795
|
|
|
714,614
|
Depreciation and amortization
|
|
|
|
30,978
|
|
|
16,634
|
|
|
47,612
|
|
|
11,987
|
|
|
1,285
|
|
|
13,272
|
|
|
14,544
|
|
|
75,428
|
Total expenses
|
|
|
|
400,152
|
|
|
60,921
|
|
|
461,073
|
|
|
128,189
|
|
|
119,441
|
|
|
247,630
|
|
|
81,339
|
|
|
790,042
|
Income (loss) from operations
|
|
|
$
|
209,709
|
|
$
|
(41,361)
|
|
$
|
168,348
|
|
$
|
62,883
|
|
$
|
63,405
|
|
$
|
126,288
|
|
$
|
(78,721)
|
|
$
|
215,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate operations primarily include corporate expenses, such as
legal, occupancy, and other costs related to corporate service
functions, such as 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.
|
|
|
|
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 December 31, 2013 and 2012. 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” during
2014. The Company’s foreign retail services locations operate
under the name “Cash America casa de empeño”.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
Domestic(a)
|
|
Foreign
|
|
Total
|
|
|
|
Domestic(a)
|
|
Foreign
|
|
Total
|
|
Retail services locations offering:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Both pawn and consumer lending
|
|
582
|
|
-
|
|
582
|
|
|
|
581
|
|
-
|
|
581
|
|
Pawn lending only
|
|
247
|
|
47
|
|
294
|
|
|
|
167
|
|
47
|
|
214
|
|
Consumer lending only
|
|
40
|
|
-
|
|
40
|
|
|
|
83
|
|
-
|
|
83
|
|
Other (b)
|
|
90
|
|
-
|
|
90
|
|
|
|
91
|
|
-
|
|
91
|
|
Total retail services
|
|
959
|
|
47
|
|
1,006
|
|
|
|
922
|
|
47
|
|
969
|
|
(a)Except as described in (b) below, includes locations
that operate in 22 states in the United States as of December 31,
2013 and 2012, respectively.
|
|
(b)As of December 31, 2013 and 2012, includes 90 and 91
unconsolidated franchised check cashing locations, respectively. As
of December 31, 2013 and 2012, includes locations that operate in 14
and 15 states in the United States, respectively.
|
|
|
|
E-Commerce Segment
As of December 31, 2013 and 2012, the Company’s e-commerce segment
operated in 32 states in the United States and in three other foreign
countries:
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NON-GAAP
DISCLOSURE
ADJUSTED EARNINGS AND ADJUSTED EARNINGS PER SHARE
Non-GAAP Disclosure
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 GAAP 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.
Adjusted Earnings and Adjusted Earnings Per Share
In addition to reporting financial results in accordance with GAAP, the
Company has provided adjusted net income and diluted earnings 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 adjustments for events that
occurred during the three months and years ended December 31, 2013 and
2012, such as the closure of 36 consumer lending-only retail services
locations in Texas during the second half of 2013 (“Texas Consumer Loan
Store Closures”), charges related to extinguishment of a portion of the
Company’s convertible senior notes (“Debt Extinguishment”), the penalty
paid to the Consumer Financial Protection Bureau (“CFPB”) in connection
with the issuance of a consent order by the CFPB (“Regulatory Penalty”),
the charges related to the Company’s settlement of litigation matter in
2013 (“2013 Litigation Settlement”), an income tax benefit related to
the change of tax basis in the stock of one of its subsidiaries in
connection with the Mexico Reorganization (as defined below) (“Creazione
Deduction”), the withdrawal in July 2012 of the proposed initial public
offering of the Company's wholly-owned subsidiary, Enova International,
Inc. (“Enova IPO”), the reorganization of the Company's Mexico-based
pawn operations during 2012 (“Mexico Reorganization”) and the voluntary
reimbursements to Ohio customers during 2012 (“Ohio Reimbursements”) are
useful to investors in order to allow them to compare the Company’s
financial results for the current quarter with the previous periods
shown.
|
|
|
|
|
|
|
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 months
and years ended December 31, 2013 and 2012, 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
|
|
|
Year Ended
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
$
|
|
|
Per Diluted
Share(a)
|
|
|
$
|
|
|
Per Diluted
Share(a)
|
|
|
$
|
|
|
Per Diluted
Share(a)
|
|
|
$
|
|
|
Per Diluted
Share(a)
|
Net income and diluted earnings per share attributable to Cash
America International, Inc.
|
|
|
$
|
27,284
|
|
|
$
|
0.91
|
|
|
$
|
24,480
|
|
|
$
|
0.79
|
|
|
$
|
142,528
|
|
|
$
|
4.66
|
|
|
$
|
107,470
|
|
|
$
|
3.42
|
Adjustments (net of tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas Consumer Loan Store Closures(b)
|
|
|
|
865
|
|
|
|
0.03
|
|
|
|
-
|
|
|
|
-
|
|
|
|
865
|
|
|
|
0.03
|
|
|
|
-
|
|
|
|
-
|
Loss on Debt Extinguishment(c)
|
|
|
|
164
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
-
|
|
|
|
382
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
-
|
Regulatory Penalty(d)
|
|
|
|
5,000
|
|
|
|
0.17
|
|
|
|
-
|
|
|
|
-
|
|
|
|
5,000
|
|
|
|
0.16
|
|
|
|
-
|
|
|
|
-
|
2013 Litigation Settlement(e)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,340
|
|
|
|
0.37
|
|
|
|
-
|
|
|
|
-
|
Tax benefit related to Creazione Deduction(f)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(33,201)
|
|
|
|
(1.09)
|
|
|
|
-
|
|
|
|
-
|
Charges related to withdrawn proposed Enova IPO(g)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,424
|
|
|
|
0.07
|
Charges related to the Mexico Reorganization(h)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
6,965
|
|
|
|
0.23
|
|
|
|
-
|
|
|
|
-
|
|
|
|
25,421
|
|
|
|
0.81
|
Charges related to Ohio Reimbursements(i)
|
|
|
|
(3,209)
|
|
|
|
(0.11)
|
|
|
|
8,442
|
|
|
|
0.27
|
|
|
|
(3,209)
|
|
|
|
(0.10)
|
|
|
|
8,442
|
|
|
|
0.27
|
Adjusted net income and diluted earnings per share attributable to
the Company
|
|
|
|
30,104
|
|
|
|
1.01
|
|
|
|
39,887
|
|
|
|
1.29
|
|
|
|
123,705
|
|
|
|
4.04
|
|
|
|
143,757
|
|
|
|
4.57
|
Other adjustments (net of tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible asset amortization
|
|
|
|
907
|
|
|
|
0.03
|
|
|
|
740
|
|
|
|
0.03
|
|
|
|
3,582
|
|
|
|
0.12
|
|
|
|
2,791
|
|
|
|
0.09
|
Non-cash equity-based compensation
|
|
|
|
636
|
|
|
|
0.02
|
|
|
|
515
|
|
|
|
0.02
|
|
|
|
3,092
|
|
|
|
0.10
|
|
|
|
3,007
|
|
|
|
0.10
|
Convertible debt non-cash interest and issuance cost amortization
|
|
|
|
596
|
|
|
|
0.02
|
|
|
|
612
|
|
|
|
0.02
|
|
|
|
2,493
|
|
|
|
0.09
|
|
|
|
2,386
|
|
|
|
0.07
|
Foreign currency transaction loss
|
|
|
|
96
|
|
|
|
-
|
|
|
|
151
|
|
|
|
-
|
|
|
|
759
|
|
|
|
0.02
|
|
|
|
196
|
|
|
|
0.01
|
Adjusted earnings and adjusted earnings per share
|
|
|
$
|
32,339
|
|
|
$
|
1.08
|
|
|
$
|
41,905
|
|
|
$
|
1.36
|
|
|
$
|
133,631
|
|
|
$
|
4.37
|
|
|
$
|
152,137
|
|
|
$
|
4.84
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Represents charges related to the Texas Consumer
Loan Store Closures of $1.4 million, net of tax benefit of $0.5
million.
|
(c) Represents charges related to the Debt
Extinguishment. For the three months ended December 31, 2013,
represents $0.3 million of charges, net of tax benefit of $0.1
million. For the year ended December 31, 2013, represents $0.6
million of charges, net of tax benefit of $0.2 million.
|
(d) Represents the amount paid in connection with the
Regulatory Penalty, which is nondeductible for tax purposes.
|
(e) Represents charges related to the 2013 Litigation
Settlement of $18.0 million, net of tax benefit of $6.7 million.
|
(f) Represents an income tax benefit related to the
Creazione Deduction.
|
(g) Represents charges directly related to the
withdrawn proposed Enova IPO. For the year ended December 31,
2012, represents $3.9 million of charges, net of tax benefit of
$1.5 million.
|
(h) Represents charges related to the Mexico
Reorganization. For the three months ended December 31, 2012,
represents $7.0 million of charges. For the year ended December
31, 2012, represents $28.9 million of charges, net of tax benefit
of $1.2 million and noncontrolling interest of $2.3 million.
|
(i) Represents charges related to the Ohio
Reimbursements. For the three months and year ended December 31,
2012, represents $13.4 million of charges, net of tax benefit of
$5.0 million. For the three months and year ended December 31,
2013, the Company adjusted its estimate of the expected remaining
liability by $5.0 million, net of tax provision of $1.8 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 liquidity and estimated enterprise value. In addition,
management believes that the adjustments shown below, especially the
adjustments for the Texas Consumer Loan Store Closures, the 2013
Litigation Settlement, the Creazione Deduction, and the charges related
to events that occurred during 2012, such as the Mexico Reorganization,
the withdrawal of the proposed Enova IPO, and the charges related to the
Ohio Reimbursements, are useful to investors in order to allow them to
compare the Company’s financial results across the periods shown. The
computation of adjusted EBITDA as presented below may differ from the
computation of similarly-titled measures provided by other companies
(dollars in thousands):
|
Year Ended December 31,
|
|
|
2013
|
|
2012
|
|
Net income attributable to Cash America International, Inc.
|
|
$
|
142,528
|
|
|
$
|
107,470
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Texas Consumer Loan Store Closures(a)
|
|
|
1,373
|
|
|
|
|
|
Regulatory Penalty(b)
|
|
|
5,000
|
|
|
|
|
|
2013 Litigation Settlement(c)
|
|
|
18,000
|
|
|
|
|
|
Charges related to withdrawn proposed Enova IPO(d)
|
|
|
-
|
|
|
|
3,879
|
|
Charges related to Mexico Reorganization(e)
|
|
|
-
|
|
|
|
28,873
|
|
Charges related to Ohio Reimbursements(f)
|
|
|
(5,000)
|
|
|
|
13,400
|
|
Depreciation and amortization expenses(g)
|
|
|
73,092
|
|
|
|
62,864
|
|
Interest expense, net
|
|
|
36,245
|
|
|
|
28,987
|
|
Foreign currency transaction loss
|
|
|
1,205
|
|
|
|
313
|
|
Loss on extinguishment of debt
|
|
|
607
|
|
|
|
-
|
|
Equity in loss of unconsolidated subsidiary
|
|
|
136
|
|
|
|
295
|
|
Provision for income taxes(h)
|
|
|
30,754
|
|
|
|
77,495
|
|
Net income (loss) attributable to the noncontrolling interest
|
|
|
308
|
|
|
|
(5,806)
|
(i)
|
Adjusted EBITDA
|
|
$
|
304,248
|
|
|
$
|
317,770
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin calculated as follows:
|
|
|
|
|
|
|
|
|
Total revenue
|
|
$
|
1,797,226
|
|
|
$
|
1,800,430
|
|
Adjusted EBITDA
|
|
|
304,248
|
|
|
|
317,770
|
|
Adjusted EBITDA as a percentage of total revenue
|
|
|
16.9%
|
|
|
|
17.6%
|
|
|
|
|
|
|
|
|
|
|
(a) Represents charges related to the Texas Consumer
Loan Store Closures of $1.4 million, before tax benefit of $0.5
million.
|
(b) Represents the amount paid in connection with the
Regulatory Penalty, which is nondeductible for tax purposes.
|
(c) Represents charges related to the 2013 Litigation
Settlement of $18.0 million, before tax benefit of $6.7 million.
|
(d) Represents charges directly related to the
withdrawn Enova IPO, before tax benefit of $1.5 million.
|
(e) Represents charges related to the Mexico
Reorganization, before a 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 (h) below.
|
(f) For the year ended December 31, 2012, represents
charges related to the Ohio Reimbursements, before tax benefit of
$5.0 million. For the year ended December 31, 2013, the Company
adjusted its estimate of the expected remaining liability by $5.0
million, before tax provision of $1.8 million.
|
(g) Excludes $0.2 million and $12.6 million of
depreciation and amortization expenses for the years ended
December 31, 2013 and 2012, respectively, which are included in
“Texas Consumer Loan Store Closures” and “Charges related to the
Mexico Reorganization” for the respective periods.
|
(h) For the year ended December 31, 2013, includes an
income tax benefit of $33.2 million related to the Creazione
Deduction and an income tax provision of $1.8 million related to
the change in estimate for the Ohio Reimbursements. For the year
ended December 31, 2012, 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.
|
(i) Includes $2.3 million of noncontrolling interests
related to the Mexico Reorganization.
|
Copyright Business Wire 2014