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Cash America Announces Third Quarter Earnings Up 19% and Dividend Declared
Thursday, October 22, 2009 6:52 AM


(Source: Business Wire)trackingCash America International, Inc. (NYSE: CSH) announced today that net income attributable to the Company for the third quarter of 2009 increased 19% to $22,478,000 (73 cents per share) compared to the third quarter of 2008 which was $18,925,000 (63 cents per share).

Total revenue increased 10% during the third quarter 2009 to $276.1 million, up from $252.2 million during the same period in 2008. Contributing to the rise in total revenue was a 28% increase in finance and service charges from pawn loans and an increase of 9% in the proceeds from the sale of merchandise during the quarter. This was driven by continued customer demand for pawn lending products and the addition of Prenda Fácil in December 2008, the Company's Mexico based pawn lending operation. Excluding Prenda Fácil, the Company reported an 11% increase in finance and service charges from pawn loans during the quarter. Consolidated pawn loan balances increased year-over-year by 20% during the third quarter 2009. Excluding the addition of Prenda Fácil, pawn loan balances were up 6% during the period. Consolidated income from operations rose 14% to $41.4 million during the third quarter 2009, up from $36.2 million during the same period in 2008. This is partially due to lower loan losses on cash advances written. Loan losses as a percent of cash advance fees decreased to 38.4% in the third quarter of 2009 compared to 42.5% in the third quarter of 2008.

For the nine-month period ended September 30, 2009, Cash America produced net income of $62,995,000 ($2.06 per share) compared to $64,873,000 ($2.16 per share) for the same period in 2008. The decrease in net income was due to a 4% decrease in cash advance fees during the nine-month period which is largely related to the absence of or significantly reduced profitability in certain cash advance markets in 2009 that generated revenue and earnings for the Company in 2008. Total revenue increased 6% to $796.6 million for the nine-month period ended September 30, 2009, up from $751.1 million for the same period in 2008.

Commenting on the results for the third quarter, Daniel R. Feehan, President and Chief Executive Officer said, "We have restored the year over year quarterly earnings growth that challenged us in the first half of 2009 due to changes in certain markets for our cash advance product. Our pawn lending activities have continued to produce earnings growth throughout 2009 and in the third quarter we were able to add year over year growth in our cash advance business segment as our storefront business posted a successful third quarter." Mr. Feehan added, "We are proud to have posted this earnings growth while adding 158 net new pawn lending locations, including 113 acquired locations and 49 start-up locations while closing 4 locations, in an effort to expand the concentration of our pawn lending activities over the last twelve months."

Cash America will conduct a conference call to discuss its third quarter earnings Thursday, October 22, 2009 at 7:45 AM CDT. 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 November 18, 2009 to shareholders of record on November 4, 2009.

Outlook for the Fourth Quarter of 2009 and 2010 Fiscal Year

Expectations for the remainder of fiscal 2009 will be impacted by earning asset levels based on customer demand for credit products and by customer demand for the sale of merchandise in pawn lending locations. The fourth quarter represents an important period of retail sales for the Company, and results will be affected by consumer sentiments during the period. Based on its views and expectations related to the preceding factors management expects that the fourth quarter 2009 net income per share will be between 94 cents and $1.02 per share compared to 54 cents per share in the fourth quarter of 2008. The fourth quarter of 2008 included 20 cents of one-time charges, which included severance and related expenses for the closing of 42 cash advance locations, the restructuring and elimination of senior management positions, referendum initiatives related to the November 4, 2008 election in the state of Ohio and new product transition costs in certain cash advance markets . Therefore, management's expectation for the full year 2009 earnings per share will be between $3.00 and $3.08 compared to $2.70 per share in fiscal 2008.

In addition, management is initiating its preliminary expectations for fiscal year 2010. Based on its current views of the coming year, management establishes its initial anticipated range of earnings per share of $3.45 to $3.60 for fiscal 2010.

About the Company

As of September 30, 2009, Cash America International, Inc. had 1,034 total locations offering specialty financial services to consumers, including 660 pawn lending locations (including 15 unconsolidated franchised locations), consisting of 503 locations operating in 22 states in the United States under the names "Cash America Pawn" and "SuperPawn" and 157 pawn lending locations, of which the Company is a majority owner, operating in 19 jurisdictions in central and southern Mexico under the name "Prenda Fácil." In addition, as of September 30, 2009, the Company had 248 cash advance storefront locations operating in six states in the United States under the names "Cash America Payday Advance" and "Cashland" and 121 unconsolidated franchised and five Company-owned check cashing centers operating in 16 states in the United States under the name "Mr. Payroll." Additionally, as of September 30, 2009, the Company offered short-term cash advances over the Internet to customers in 32 states in the United States at http://www.cashnetusa.com, in the United Kingdom at http://www.quickquid.co.uk and in Australia at http://www.dollarsdirect.com.au. The Company also owns a card services business that processes cash advances on behalf of a third-party lender with balances outstanding in all 50 states and one other United States territory as of September 30, 2009.

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

  http://www.cashamerica.com      http://www.cashnetusa.com       
  http://www.quickquid.co.uk      http://www.dollarsdirect.com.au 
  http://www.strikegoldnow.com    http://www.cashlandloans.com    


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

This release contains forward-looking statements about the business, financial condition and prospects of Cash America International, Inc. and its subsidiaries (the "Company"). The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including, without limitation, changes in pawn, consumer credit, tax and other laws and governmental rules and regulations applicable to the Company's business, changes in demand for the Company's services, the continued acceptance of the online distribution channel by the Company's cash advance customers, the actions of third parties who offer products and services to or for the Company, fluctuations in the price of gold, changes in competition, the ability of the Company to open new operating units 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 our 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 we operate 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 SUBSIDIARIESHIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS(in thousands, except per share data)     
                                                                                                                                            
                                                                                    Three Months Ended           Nine Months Ended          
                                                                                    September 30,                September 30,              
                                                                                    2009            2008         2009            2008       
 Consolidated Operations:                                                                                                                   
 Total revenue                                                                      $  276,124      $  252,150   $  796,596      $  751,063 
 Net revenue                                                                           200,582         184,117      567,018         544,773 
 Total operating expenses                                                              159,152         147,926      449,910         428,216 
                                                                                                                                            
 Income from operations                                                             $  41,430       $  36,191    $  117,108      $  116,557 
                                                                                                                                            
 Income before income taxes                                                            35,851          32,007       101,524         105,695 
                                                                                                                                            
 Net Income                                                                         $  22,748       $  18,925    $  63,792       $  64,873  
                                                                                                                                            
 Less: Net income attributable to the noncontrolling interest                          (270     )      -         $  (797     )   $  -       
                                                                                                                                            
 Net Income Attributable to Cash America International, Inc.                        $  22,478       $  18,925    $  62,995       $  64,873  
                                                                                                                                            
 Earnings per share:                                                                                                                        
                                                                                                                                            
 Net Income attributable to Cash America International, Inc. common stockholders:                                                           
                                                                                                                                            
 Basic                                                                              $  0.76         $  0.65      $  2.12         $  2.21    
 Diluted                                                                            $  0.73         $  0.63      $  2.06         $  2.16    
                                                                                                                                            
 Weighted average shares:                                                                                                                   
 Basic                                                                                 29,702          29,266       29,757          29,321  
 Diluted                                                                               30,698          30,035       30,524          30,082  


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 CASH AMERICA INTERNATIONAL, INC.


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