(Source: Business Wire)

Cash 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.