Cash America Announces First Quarter Results and Declares Dividend

Apr 26, 2001, 01:00 ET from Cash America International, Inc.

    FORT WORTH, Texas, April 26 /PRNewswire/ -- Cash America International,
 Inc. (NYSE:   PWN) announced today that net income in the first quarter of
 fiscal 2001 was $2,675,000 (11 cents per share) including the impact of a
 pretax charge of $472,000 due to the adoption of a new accounting standard for
 the valuation of financial derivatives.  Excluding the impact of this non-cash
 charge, the Company's consolidated net earnings per share would have been
 12 cents per share, in line with published analysts' estimates for the
 quarter.  In the prior year, the Company reported a consolidated net loss in
 the first quarter of $4,637,000 (18 cents per share) as a result of losses
 associated with its ownership interest in an automated check cashing company,
 innoVentry Corp.  Cash America's primary business of lending operations
 generated a 12% increase in net earnings in the first quarter of 2001.  Net
 income from lending activities for the first three months of 2001 was
 $4,236,000 (17 cents per share), excluding the impact of the charge related to
 new derivative accounting, compared to $3,868,000 (15 cents per share) in the
 first quarter of fiscal 2000.  Consolidated net revenue for the three months
 ended March 31, 2001 was up 4% to $55,380,000 compared to $53,338,000 for the
 same period in 2000.
     Commenting on the results of the quarter, Cash America Chief Executive
 Officer, Daniel R. Feehan, remarked that, "The Company's increase in earnings
 from lending operations was particularly satisfying because of the improved
 business dynamics of our core lending activities.  We enjoyed continued
 improvements in loan yields, profit on the disposition of merchandise and
 merchandise turnover levels in the quarter.  In addition, we have experienced
 higher demand for loans as evidenced by a 3% increase in loan balances in our
 domestic locations year over year.  This is the first significant increase in
 loan balances since early 1999.  Partially offsetting the earnings growth in
 the first quarter were unfavorable changes in exchange rates which reduced the
 contribution from foreign lending businesses and start-up losses associated
 with our new short term cash advance product, also known as "payday loans."
 Since the end of June 2000, we have introduced this new product into over
 270 additional lending locations of Cash America.  While the costs associated
 with this accelerated roll-out have reduced income in the last two quarters,
 short term cash advances are now available in 352 Cash America locations as we
 enter the traditionally strong second and third quarter borrowing seasons."
     Cash America will conduct a conference call to discuss its first quarter
 earnings on Thursday, April 26, 2001, at 3:45 PM CST.  A live web cast of the
 call will be available on the home page of the Company's corporate web site
 (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 $0.0125 (1.25 cents) per
 share cash dividend on common stock outstanding.  The dividend will be paid to
 shareholders of record on May 9, 2001, and will be paid at the close of
 business on May 25, 2001.
 
     Forward-Looking Information
     Factors impacting fiscal 2001 will include the relative success of the
 Company's new short term cash advance product, known as payday loans, and the
 growth in pawn loan demand.  Management will pursue marketing and development
 activities to enhance loan balances and promote payday loans in fiscal 2001.
 Another factor that would impact the Company's results would be the sustained
 strength of the U. S. dollar relative to the English pound and the Swedish
 kronor.  Concerns over continued unfavorable currency adjustments,
 particularly in the second quarter of fiscal 2001, combined with slow loan
 growth in the Company's two European subsidiaries cause management to project
 a potential reduction in earnings contribution from European subsidiaries in
 2001.  Offsetting this effect will be the continued improvement in U. S.
 lending activities in 2001 based on improved business metrics such as higher
 loan yields, improved profit margins on disposed merchandise, higher turnover
 levels on disposed merchandise and a superior mix in the ratio of loans as a
 percent of earning assets.  Management believes that lending activities could
 produce between 64 cents and 70 cents per share in fiscal 2001, with the
 variables discussed above influencing whether results will be at the low or
 high end of the range.  Non-lending activities in fiscal 2001 could reduce
 earnings from lending activities 15 cents to 20 cents per share.
     In the near term, management believes that earnings per share from lending
 activities in the second quarter of fiscal 2001 will be 8 cents to 9 cents per
 share.  Non-lending activities could reduce earnings from lending activities
 by 5 cents per share in the second quarter of fiscal 2001.
     Cash America International, Inc. is a diversified provider of specialty
 finance services to individuals in the United States, United Kingdom and
 Sweden.  Cash America is the largest provider of secured non-recourse loans to
 individuals commonly referred to as pawn loans, through 476 locations in
 18 states and two foreign countries.  In addition, the Company provides check
 cashing services through its 132 franchised and Company-owned "Mr. Payroll"
 manned check cashing centers and rental services through its wholly owned
 subsidiary, Rent-A-Tire, Inc. which operates 43 locations in Texas, Oklahoma,
 Arizona and Louisiana.
     This release contains statements about the business, financial condition
 and prospects of Cash America International, Inc. and its subsidiaries ("the
 Company") that are forward-looking, as that term is defined by the Private
 Securities Litigation Reform Act of 1995 or by the Securities and Exchange
 Commission in its rules.  The Company intends that all forward-looking
 statements be subject to the safe harbors created by these laws and rules.
 When used in this release, the words "believes," "estimates," "plans,"
 "expects," "anticipates" and similar expressions as they relate to the Company
 or its management are intended to identify forward-looking statements.  All
 forward-looking statements are based on current expectations regarding
 important risk factors.  These risks and uncertainties are beyond the ability
 of the Company to control, and, in many cases, the Company cannot predict all
 of the risks and uncertainties that could cause its actual results to differ
 materially from those expressed in the forward-looking statements.
 Accordingly, actual results may differ materially from those expressed in the
 forward-looking statements, and the making of such statements should not be
 regarded as a representation by the Company or any other person that the
 results expressed in the statements will be achieved.  Important risk factors
 include, but are not limited to, the following: changes in demand for the
 Company's services, changes in competition, the ability of the Company to open
 new operating units in accordance with its plans, economic conditions, real
 estate market fluctuations, interest rate fluctuations, changes in the capital
 markets, changes in tax and other laws and governmental rules and regulations
 applicable to the Company's business, and other risks indicated in the
 Company's filings with the Securities and Exchange Commission.  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.
 
     Contact:  Thomas A. Bessant, Jr. of Cash America International, Inc.,
 817-335-1100.
 
 
                        Cash America International, Inc.
                Highlights Of Consolidated Results Of Operations
                     (In thousands, except per share data)
 
                                                  Three Months Ended March 31,
                                                      2001           2000
 
     Consolidated Operations:
       Total revenue                               $   98,961     $   96,996
       Net revenue                                     55,380         53,338
       Total operating expenses                        47,594         45,581
       Income from operations                           7,786          7,757
       Interest expense, net                            2,838          3,299
       Income before unusual items and income taxes     4,948          4,458
       Loss from derivative valuation fluctuations        472            ---
       Loss from unconsolidated subsidiary                ---          7,341
       Net income (loss)                           $    2,675     $   (4,637)
 
 
       Net income (loss) per share - Basic         $     0.11     $    (0.18)
       Net income (loss) per share - Diluted             0.11          (0.18)
 
       Weighted average shares - Basic                 24,653         25,282
       Weighted average shares - Diluted               24,719         25,282
 
 
     Segment Results:
       Lending operations-
         Total revenue                             $   92,557     $   92,292
         Net revenue                                   51,129         49,816
         Total operating expenses                      42,778         41,504
         Income from operations                         8,351          8,312
 
       Rental operations-
         Total revenue                                  5,405          3,741
         Net revenue                                    3,252          2,559
         Total operating expenses                       4,101          3,370
         (Loss) from operations                          (849)          (811)
 
       Check cashing operations-
         Total revenue                                    999            963
         Net revenue                                      999            963
         Total operating expenses                         715            707
         Income from operations                           284            256
 
 
                        Cash America International, Inc.
                Highlights Of Consolidated Results Of Operations
                     (In thousands, except per share data)
 
     Lending Operations Financial And Operational Data:
       Pawn operations as of--                   3/31/2001      3/31/2000
         Domestic loans outstanding             $   67,800     $   65,908
         Foreign loans outstanding              $   39,693     $   49,999
         Total loans outstanding                $  107,493     $  115,907
 
         Total merchandise held for
          disposition, net                      $   52,308     $   56,572
 
         Amounts per owned lending location
          (see location data below)--
           Consolidated:
             Loans outstanding                  $      234     $      250
             Merchandise held for disposition   $      114     $      122
           Domestic:
             Loans outstanding                  $      167     $      160
             Merchandise held for disposition   $      123     $      129
 
     Small Consumer Cash Advances
      ("Payday Loans"):                  Company        Third        Combined
     As of March 31, 2001--             Owned (A)     Party (B)     Amounts (C)
       Gross loans outstanding          $   666       $   855         $ 1,521
       Less loan loss reserve           $  (249)      $  (164)        $  (413)
         Net loans outstanding          $   417       $   691         $ 1,108
       Total amount of loans written
        during the three months         $ 2,813       $ 3,040         $ 5,853
       Number of loans written during
        the three months (not
        in thousands)                    13,714        13,325          27,039
       Average loan amount written
        during the three months
        (not in thousands)              $   205       $   228         $   216
       Number of locations offering
        payday loans                         82           310             392
       Loan loss reserve percentage
        of gross loans outstanding        37.4%         19.2%           27.2%
 
     (A)  Amounts recorded in the company's consolidated financial statements.
     (B)  Third party financial institution amounts not recorded in the
          company's consolidated financial statements.
     (C)  Combined amounts shown for reference only.
 
     Number Of Locations (Not In
      Thousands) As Of:            3/31/2001      3/31/2000      12/31/2000
       Lending operations--
         Company owned                   460            464             463
         Franchised                       16             15              16
           Total locations               476            479             479
 
         Other operations--
           Rental owned                   43             27              34
           Rental managed                ---             14               9
             Total rental locations       43             41              43
 
           Manned check cashing owned      7             10               7
           Manned check cashing
            franchised                   125            126             125
             Total manned check
              cashing locations          132            136             132
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X79654553
 
 

SOURCE Cash America International, Inc.
    FORT WORTH, Texas, April 26 /PRNewswire/ -- Cash America International,
 Inc. (NYSE:   PWN) announced today that net income in the first quarter of
 fiscal 2001 was $2,675,000 (11 cents per share) including the impact of a
 pretax charge of $472,000 due to the adoption of a new accounting standard for
 the valuation of financial derivatives.  Excluding the impact of this non-cash
 charge, the Company's consolidated net earnings per share would have been
 12 cents per share, in line with published analysts' estimates for the
 quarter.  In the prior year, the Company reported a consolidated net loss in
 the first quarter of $4,637,000 (18 cents per share) as a result of losses
 associated with its ownership interest in an automated check cashing company,
 innoVentry Corp.  Cash America's primary business of lending operations
 generated a 12% increase in net earnings in the first quarter of 2001.  Net
 income from lending activities for the first three months of 2001 was
 $4,236,000 (17 cents per share), excluding the impact of the charge related to
 new derivative accounting, compared to $3,868,000 (15 cents per share) in the
 first quarter of fiscal 2000.  Consolidated net revenue for the three months
 ended March 31, 2001 was up 4% to $55,380,000 compared to $53,338,000 for the
 same period in 2000.
     Commenting on the results of the quarter, Cash America Chief Executive
 Officer, Daniel R. Feehan, remarked that, "The Company's increase in earnings
 from lending operations was particularly satisfying because of the improved
 business dynamics of our core lending activities.  We enjoyed continued
 improvements in loan yields, profit on the disposition of merchandise and
 merchandise turnover levels in the quarter.  In addition, we have experienced
 higher demand for loans as evidenced by a 3% increase in loan balances in our
 domestic locations year over year.  This is the first significant increase in
 loan balances since early 1999.  Partially offsetting the earnings growth in
 the first quarter were unfavorable changes in exchange rates which reduced the
 contribution from foreign lending businesses and start-up losses associated
 with our new short term cash advance product, also known as "payday loans."
 Since the end of June 2000, we have introduced this new product into over
 270 additional lending locations of Cash America.  While the costs associated
 with this accelerated roll-out have reduced income in the last two quarters,
 short term cash advances are now available in 352 Cash America locations as we
 enter the traditionally strong second and third quarter borrowing seasons."
     Cash America will conduct a conference call to discuss its first quarter
 earnings on Thursday, April 26, 2001, at 3:45 PM CST.  A live web cast of the
 call will be available on the home page of the Company's corporate web site
 (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 $0.0125 (1.25 cents) per
 share cash dividend on common stock outstanding.  The dividend will be paid to
 shareholders of record on May 9, 2001, and will be paid at the close of
 business on May 25, 2001.
 
     Forward-Looking Information
     Factors impacting fiscal 2001 will include the relative success of the
 Company's new short term cash advance product, known as payday loans, and the
 growth in pawn loan demand.  Management will pursue marketing and development
 activities to enhance loan balances and promote payday loans in fiscal 2001.
 Another factor that would impact the Company's results would be the sustained
 strength of the U. S. dollar relative to the English pound and the Swedish
 kronor.  Concerns over continued unfavorable currency adjustments,
 particularly in the second quarter of fiscal 2001, combined with slow loan
 growth in the Company's two European subsidiaries cause management to project
 a potential reduction in earnings contribution from European subsidiaries in
 2001.  Offsetting this effect will be the continued improvement in U. S.
 lending activities in 2001 based on improved business metrics such as higher
 loan yields, improved profit margins on disposed merchandise, higher turnover
 levels on disposed merchandise and a superior mix in the ratio of loans as a
 percent of earning assets.  Management believes that lending activities could
 produce between 64 cents and 70 cents per share in fiscal 2001, with the
 variables discussed above influencing whether results will be at the low or
 high end of the range.  Non-lending activities in fiscal 2001 could reduce
 earnings from lending activities 15 cents to 20 cents per share.
     In the near term, management believes that earnings per share from lending
 activities in the second quarter of fiscal 2001 will be 8 cents to 9 cents per
 share.  Non-lending activities could reduce earnings from lending activities
 by 5 cents per share in the second quarter of fiscal 2001.
     Cash America International, Inc. is a diversified provider of specialty
 finance services to individuals in the United States, United Kingdom and
 Sweden.  Cash America is the largest provider of secured non-recourse loans to
 individuals commonly referred to as pawn loans, through 476 locations in
 18 states and two foreign countries.  In addition, the Company provides check
 cashing services through its 132 franchised and Company-owned "Mr. Payroll"
 manned check cashing centers and rental services through its wholly owned
 subsidiary, Rent-A-Tire, Inc. which operates 43 locations in Texas, Oklahoma,
 Arizona and Louisiana.
     This release contains statements about the business, financial condition
 and prospects of Cash America International, Inc. and its subsidiaries ("the
 Company") that are forward-looking, as that term is defined by the Private
 Securities Litigation Reform Act of 1995 or by the Securities and Exchange
 Commission in its rules.  The Company intends that all forward-looking
 statements be subject to the safe harbors created by these laws and rules.
 When used in this release, the words "believes," "estimates," "plans,"
 "expects," "anticipates" and similar expressions as they relate to the Company
 or its management are intended to identify forward-looking statements.  All
 forward-looking statements are based on current expectations regarding
 important risk factors.  These risks and uncertainties are beyond the ability
 of the Company to control, and, in many cases, the Company cannot predict all
 of the risks and uncertainties that could cause its actual results to differ
 materially from those expressed in the forward-looking statements.
 Accordingly, actual results may differ materially from those expressed in the
 forward-looking statements, and the making of such statements should not be
 regarded as a representation by the Company or any other person that the
 results expressed in the statements will be achieved.  Important risk factors
 include, but are not limited to, the following: changes in demand for the
 Company's services, changes in competition, the ability of the Company to open
 new operating units in accordance with its plans, economic conditions, real
 estate market fluctuations, interest rate fluctuations, changes in the capital
 markets, changes in tax and other laws and governmental rules and regulations
 applicable to the Company's business, and other risks indicated in the
 Company's filings with the Securities and Exchange Commission.  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.
 
     Contact:  Thomas A. Bessant, Jr. of Cash America International, Inc.,
 817-335-1100.
 
 
                        Cash America International, Inc.
                Highlights Of Consolidated Results Of Operations
                     (In thousands, except per share data)
 
                                                  Three Months Ended March 31,
                                                      2001           2000
 
     Consolidated Operations:
       Total revenue                               $   98,961     $   96,996
       Net revenue                                     55,380         53,338
       Total operating expenses                        47,594         45,581
       Income from operations                           7,786          7,757
       Interest expense, net                            2,838          3,299
       Income before unusual items and income taxes     4,948          4,458
       Loss from derivative valuation fluctuations        472            ---
       Loss from unconsolidated subsidiary                ---          7,341
       Net income (loss)                           $    2,675     $   (4,637)
 
 
       Net income (loss) per share - Basic         $     0.11     $    (0.18)
       Net income (loss) per share - Diluted             0.11          (0.18)
 
       Weighted average shares - Basic                 24,653         25,282
       Weighted average shares - Diluted               24,719         25,282
 
 
     Segment Results:
       Lending operations-
         Total revenue                             $   92,557     $   92,292
         Net revenue                                   51,129         49,816
         Total operating expenses                      42,778         41,504
         Income from operations                         8,351          8,312
 
       Rental operations-
         Total revenue                                  5,405          3,741
         Net revenue                                    3,252          2,559
         Total operating expenses                       4,101          3,370
         (Loss) from operations                          (849)          (811)
 
       Check cashing operations-
         Total revenue                                    999            963
         Net revenue                                      999            963
         Total operating expenses                         715            707
         Income from operations                           284            256
 
 
                        Cash America International, Inc.
                Highlights Of Consolidated Results Of Operations
                     (In thousands, except per share data)
 
     Lending Operations Financial And Operational Data:
       Pawn operations as of--                   3/31/2001      3/31/2000
         Domestic loans outstanding             $   67,800     $   65,908
         Foreign loans outstanding              $   39,693     $   49,999
         Total loans outstanding                $  107,493     $  115,907
 
         Total merchandise held for
          disposition, net                      $   52,308     $   56,572
 
         Amounts per owned lending location
          (see location data below)--
           Consolidated:
             Loans outstanding                  $      234     $      250
             Merchandise held for disposition   $      114     $      122
           Domestic:
             Loans outstanding                  $      167     $      160
             Merchandise held for disposition   $      123     $      129
 
     Small Consumer Cash Advances
      ("Payday Loans"):                  Company        Third        Combined
     As of March 31, 2001--             Owned (A)     Party (B)     Amounts (C)
       Gross loans outstanding          $   666       $   855         $ 1,521
       Less loan loss reserve           $  (249)      $  (164)        $  (413)
         Net loans outstanding          $   417       $   691         $ 1,108
       Total amount of loans written
        during the three months         $ 2,813       $ 3,040         $ 5,853
       Number of loans written during
        the three months (not
        in thousands)                    13,714        13,325          27,039
       Average loan amount written
        during the three months
        (not in thousands)              $   205       $   228         $   216
       Number of locations offering
        payday loans                         82           310             392
       Loan loss reserve percentage
        of gross loans outstanding        37.4%         19.2%           27.2%
 
     (A)  Amounts recorded in the company's consolidated financial statements.
     (B)  Third party financial institution amounts not recorded in the
          company's consolidated financial statements.
     (C)  Combined amounts shown for reference only.
 
     Number Of Locations (Not In
      Thousands) As Of:            3/31/2001      3/31/2000      12/31/2000
       Lending operations--
         Company owned                   460            464             463
         Franchised                       16             15              16
           Total locations               476            479             479
 
         Other operations--
           Rental owned                   43             27              34
           Rental managed                ---             14               9
             Total rental locations       43             41              43
 
           Manned check cashing owned      7             10               7
           Manned check cashing
            franchised                   125            126             125
             Total manned check
              cashing locations          132            136             132
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X79654553
 
 SOURCE  Cash America International, Inc.