FORT WORTH, Texas, Jan 17, 2012 (BUSINESS WIRE) –
Cash America International, Inc.
/quotes/zigman/221568/quotes/nls/csh CSH
+4.33%
announced today that it
anticipates earnings per share for the fiscal year ended December 31,
2011 will be approximately $4.25 per share, up 16% compared to the
fiscal 2010 earnings per share of $3.67. The Company’s estimated results
for its full year 2011 earnings per share is below its July 21, 2011
published expected range of between $4.28 and $4.48 per share. The
Company’s outlook for earnings expectations has not been updated since
July 2011 due to the filing of a Registration Statement on Form S-1 with
the Securities and Exchange Commission by the Company’s wholly-owned
subsidiary that comprises its E-commerce segment, Enova International,
Inc., on September 15, 2011 in connection with a proposed initial public
offering of Enova common stock by the Company and Enova. The
Registration Statement has not yet become effective.
The Company expects revenue growth to exceed 25% for the fourth quarter
of 2011 compared to the prior-year fourth quarter, representing the
largest year-over-year quarterly increase during 2011. The revenue
increase is due to growth in asset balances of both pawn and consumer
loans, as well as a significant increase in revenue from the disposition
of merchandise during the quarter. The Company experienced increases in
demand from non-U.S. customers for both its short-term loan products and
its longer-term installment loan products offered through its online
channel, which led to a significant increase in asset balances and a
commensurate increase in loan loss provision during the fourth quarter
of 2011. While revenue associated with all online consumer loans
increased over 40% during the fourth quarter of 2011 compared to the
prior-year fourth quarter, the requirement to immediately establish a
reserve for loan losses and absorb all marketing and customer
acquisition costs constrained marginal profitability gains. Higher than
expected store level operating costs during the holiday selling period
and lower than expected gross profit margin on the retail disposition of
merchandise further constrained profitability growth in the quarter. In
addition, the Company incurred a variety of one-time and unusual
operating expenses during the fourth quarter associated with the
proposed Enova initial public offering and other expense items from the
closing of an acquisition.
Cash America will conduct a conference call to discuss its fourth
quarter earnings on Thursday, January 26, 2012 at 7:00 AM CST. A live
webcast 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.
About the Company
As of December 31, 2011, Cash America International, Inc. operated 1,084
total locations offering specialty financial services to consumers,
which include 784 lending locations (including one unconsolidated
franchised location) operating in 23 states in the United States under
the names “Cash America Pawn,” “SuperPawn,” “Maxit,” “Pawn X-Change,”
“Cash America Payday Advance,” and “Cashland,” and 190 pawn lending
locations, of which the Company is a majority owner, operating in 21
jurisdictions in central and southern Mexico under the name “Prenda
Facil.” The Company also operated 104 unconsolidated franchised and six
Company-owned check cashing centers operating in 18 states in the United
States under the name “Mr. Payroll” as of December 31, 2011.
Additionally, as of December 31, 2011, the Company offered consumer
loans 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
http://www.poundstopocket.co.uk ,
in Australia at
http://www.dollarsdirect.com.au ,
and in Canada at
http://www.dollarsdirect.ca .
For additional information regarding the Company and the services it
provides, visit the Company’s websites located at:
http://www.cashamerica.com
http://www.enova.com
http://www.cashnetusa.com
http://www.cashlandloans.com
http://www.quickquid.co.uk
http://www.poundstopocket.co.uk
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This release contains forward-looking statements about the business,
financial condition and prospects of Cash America International, Inc.
and its subsidiaries (the "Company"). The actual results of the Company
could differ materially from those indicated by the forward-looking
statements because of various risks and uncertainties including, without
limitation, changes in pawn, consumer loan, tax and other domestic and
foreign laws and governmental rules and regulations applicable to the
Company's business, changes in demand for the Company's services,
acceptance by consumers, legislators or regulators of the negative
characterization by the media and consumer activists with respect to
certain of the Company's loan products, the continued acceptance of the
online distribution channel by the Company's online loan customers, the
actions of third parties who provide, acquire or offer products and
services to, from or for the Company, fluctuations in the price of gold,
changes in competition, the ability of the Company to open new locations
or complete acquisitions 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, changes in the Company's ability to satisfy its debt
obligations or to refinance existing debt obligations or obtain new
capital to finance growth, the ability to successfully integrate newly
acquired businesses into the Company's operations, the loss of services
of any of the Company's executive officers, a prolonged interruption in
the Company's operations of its facilities, systems and business
functions, including its information technology and other business
systems, the effect of any current or future litigation proceedings on
the Company, 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, risks related to the Company's previously-announced proposed
initial public offering of common stock of its wholly-owned subsidiary,
Enova International, Inc. ("Enova"), 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.
The Registration Statement on Form S-1 that was filed with the
Securities and Exchange Commission by the Company's wholly-owned
subsidiary, Enova, has not yet become effective. The completion of the
offering of common stock of Enova is subject to numerous conditions,
including market conditions, and the Company can provide no assurance
that it will be successfully completed. The securities offered under
Enova's Registration Statement may not be sold, nor may offers to buy be
accepted prior to the time that the Registration Statement becomes
effective. The information contained in this press release shall not
constitute an offer to sell or a solicitation of an offer to buy these
securities.
SOURCE: Cash America International, Inc.
Cash America International, Inc.
Thomas A. Bessant, Jr., 817-335-1100
Copyright Business Wire 2012
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