Cash America International, Inc. (NYSE: CSH) announced today
that net income for the second quarter of 2016 was $2,098,000 (8
cents per share) compared to net income of $2,071,000 (8 cents per
share) for the second quarter of 2015. Included in the second
quarter of 2016 results are $3.7 million of expenses before taxes
related to the proposed merger with First Cash Financial Services,
Inc., which is $2.3 million, or $0.10 per share, after taxes.
Adjusted net income, a non-GAAP measure, for the second quarter of
2016 was $4,417,000 (18 cents per share), which is at the high end
of the Company’s published guidance of expected net income per
share of between 12 cents and 18 cents per share as provided in its
press release dated April 28, 2016. Included in the reported net
income for the second quarter of 2015 is a net benefit of $0.5
million, which is $0.3 million, or 2 cents per share, after taxes
from a gain on the disposition of equity securities and a loss on
the early extinguishment of debt. Excluding this additional income
from the reported results for the second quarter of 2015, adjusted
net income, a non-GAAP measure, was $1.7 million (6 cents per
share) which compares to adjusted net income per share of $4.4
million (18 cents per share) for the second quarter of 2016 for an
increase of 200%.
Consolidated total revenue increased 2% to $241.2 million for
the second quarter of 2016 compared to $236.5 million for the
second quarter of 2015. Income from operations was $6.6 million for
the second quarter of 2016, which included $3.7 million in
merger-related expenses, compared to income from operations of $6.3
million for the second quarter of 2015. When excluding the
merger-related expenses, adjusted income from operations, a
non-GAAP measure, for the second quarter of 2016 was $10.3 million,
which represented an increase of 62% compared to reported income
from operations of $6.3 million for the second quarter of 2015.
Commenting on the second quarter results, T. Brent Stuart, Chief
Executive Officer and President of Cash America, said, “One of our
primary focuses coming into the second quarter was operational
excellence and improved marginal profitability. Our year-over-year
earnings gains in the second quarter demonstrate the progress we
have made and the success of our efforts. In addition, we continued
to emphasize our in-store retail disposition of merchandise and we
achieved a same store retail sales increase of 5.3% in the second
quarter of 2016 compared to the second quarter of 2015. We move
into the third quarter well positioned with favorable merchandise
balances and inventory aging.”
For the six months ended June 30, 2016, the Company reported net
income of $12.7 million (51 cents per share) compared to net income
of $9.9 million (35 cents per share) for the same period in 2015.
Included in the reported net income for the six months ended June
30, 2016 are net expenses totaling $3.6 million before taxes, which
is $2.3 million, or 9 cents per share, after taxes, mostly related
to merger-related expenses. When excluding these net expenses,
adjusted net income, a non-GAAP measure, was $15.0 million (60
cents per share) for the six months ended June 30, 2016. This
compares to adjusted net income, a non-GAAP measure, of $10.0
million (36 cents per share) for the six months ended June 30,
2015, which excludes adjustments for a gain on the disposition of
equity securities, a loss on the early extinguishment of debt and
severance expenses related to administrative and operations staff
reductions that increased net income $0.2 million before taxes
($0.1 million, or 1 cent per share after taxes).
Consolidated total revenue increased 2% to $518.4 million for
the six months ended June 30, 2016 compared to $508.2 million
for the same period in 2015. Income from operations was $26.3
million for the six months ended June 30, 2016 compared to $22.6
million for the same period in 2015. Income from operations for the
six months ended June 30, 2016 included the $3.7 million in
merger-related expenses discussed above. When excluding these
expenses, adjusted income from operations, a non-GAAP measure, for
the six months ended June 30, 2016 was $30.0 million, which is up
28% compared to adjusted income from operations of $23.4 million in
the same period in 2015, which excludes $0.9 million in pre-tax
severance expenses related to administrative and operations staff
reductions.
Cash America will host a conference call to discuss the second
quarter results on Thursday, July 28, 2016, at 7:00 AM CDT. A
live web cast of the call will be available on the Investor
Relations section of the Company’s corporate web site http://www.cashamerica.com. To listen to the live
call, please go to the web site at least fifteen minutes prior to
the call 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 an $0.08 (8
cents) per share cash dividend on common stock outstanding. The
dividend will be paid at the close of business on August 24, 2016
to shareholders of record on August 10, 2016.
Outlook for the Third Quarter of 2016
and the 2016 Fiscal Year
Management believes that the opportunities for growth in revenue
and earnings will be largely associated with customer demand for
the products and services provided by the Company, which primarily
take the form of pawn loans, and its ability to profitably
liquidate merchandise obtained primarily from unredeemed pawn
loans. Management expects moderate sequential pawn loan balance
growth in the third quarter and believes that the rate and timing
of this growth will have a significant influence on the third and
fourth quarter results.
The outlook for the third quarter and remainder of 2016 included
in this press release does not take into account the pending costs
or efficiencies related to the merger with First Cash Financial
Services, Inc., which was announced on April 28, 2016. The
Company’s guidance is based solely on the Company’s expected
stand-alone operational performance and excludes any future
merger-related expenses or any expected results of the combined
company in the event the merger transaction is completed during the
remainder of 2016. As announced in the joint press release filed by
Cash America and First Cash Financial Services, Inc. on July 26,
2016, the Company currently expects the merger transaction to close
in the third quarter of 2016.
Based on its views on the preceding factors, management expects
net income per share for the third quarter of 2016 to be between 24
cents and 30 cents per share compared to a net income per share of
19 cents per share in the third quarter of 2015.
Management has slightly modified its previously reported
expectations for fiscal year 2016 to between $1.34 and $1.50 in
adjusted net income per share, a non-GAAP measure, which excludes
net expenses for the first six months of 2016 totaling $3.6 million
before taxes, which is $2.3 million, or 9 cents per share, after
taxes that have already been incurred and are discussed above,
including merger-related expenses, gains on the disposition of
equity securities and a loss on the early extinguishment of debt.
This compares to reported net income of $1.01 per share for fiscal
year 2015.
About the Company
As of June 30, 2016, Cash America International, Inc. (the
“Company” or “Cash America”) operated 889 total locations in the
United States offering pawn lending and related services to
consumers and included the following:
- 817 lending locations in 20 states in
the United States primarily under the names “Cash America Pawn,”
“SuperPawn,” “Cash America Payday Advance,” and “Cashland;”
and
- 72 check cashing centers (all of which
are unconsolidated franchised check cashing centers) operating in
12 states in the United States under the name “Mr. Payroll.”
For additional information regarding the Company and the
services it provides, visit the Company’s website located at
http://www.cashamerica.com or download
the Cash America mobile app without cost from the App StoreSM and
on Google PlayTM.
App Store is a service mark of Apple Inc., and Google Play is a
trademark of Google Inc.
Non-GAAP Measures
The Non-GAAP Disclosure sections included in the attachments to
this press release contain a reconciliation of non-GAAP information
and a discussion of the reasons why the Company’s management
believes that presentation of the non-GAAP financial measures
discussed above provide useful information to investors regarding
the Company’s financial condition and results of operations.
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 and the proposed business combination with
First Cash Financial Services, Inc. (“First Cash”). 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,
compliance with or changes in laws, 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;
the effect of any current or future litigation proceedings,
including an unfavorable outcome in an outstanding lawsuit relating
to the Company’s 5.75% Senior Notes due 2018 even though the
Company believes the lawsuit is without merit and will vigorously
defend its position, and any judicial decisions or rule-making that
affects the Company, its products or the legality or enforceability
of its arbitration agreements; decreased demand for the Company’s
products and services and changes in competition; fluctuations in
the price of gold and changes in economic conditions; public
perception of the Company’s business and the Company’s business
practices; accounting and income tax risks related to goodwill and
other intangible asset impairment, certain tax positions taken by
the Company and other accounting matters that require the judgment
of management; the Company’s ability to attract and retain
qualified executive officers; risks related to the Company’s
financing, such as compliance with financial covenants in the
Company’s debt agreements, the Company’s ability to satisfy its
outstanding debt obligations, to refinance existing debt
obligations or to obtain new capital; risks related to
interruptions to the Company’s business operations, such as a
prolonged interruption in the Company’s operations of its
facilities, systems or business functions, cyber-attacks or
security breaches or the actions of third parties who provide,
acquire or offer products and services to, from or for the Company;
risks related to the expansion and growth of the Company’s
business, including the Company’s ability to open new locations in
accordance with plans or to successfully integrate newly acquired
businesses into its operations; risks related to the 2014 spin-off
of the Company’s former E-Commerce Division that comprised its
e-commerce segment, Enova International, Inc.; fluctuations in the
price of the Company’s common stock; the effect of any of the above
changes on the Company’s business or the markets in which the
Company operates; and other risks and uncertainties indicated in
the Company’s filings with the SEC. The proposed transaction with
First Cash is also subject to various risks and uncertainties
including, without limitation: the risk that the required approvals
of stockholders of the Company or First Cash may not be obtained;
the risks that condition(s) to closing of the proposed transaction
may not be satisfied; the proposed transaction may not be
consummated within the expected time frame, or at all; the risk
that the businesses will not be integrated successfully; the risk
that cost savings, synergies and growth from the proposed
transaction may not be fully realized or may take longer to realize
than expected; the diversion of management time on
transaction-related issues; the risk that costs associated with the
integration of the Company and First Cash are higher than
anticipated; and litigation risk related to the proposed
transaction. 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,” “intends,” “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. Additional information concerning risks related to the
business, the proposed business combination with First Cash and
other risk factors is also contained in the Company’s recently
filed Annual Reports on Form 10-K, subsequent Quarterly Reports on
Form 10-Q, Current Reports on Form 8-K, and other SEC filings. 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 Six Months Ended June 30, June 30, 2016
2015 2016 2015
Consolidated Operations: Total
Revenue $ 241,151 $ 236,464 $ 518,356 $ 508,226 Net Revenue 128,215
133,991 272,259 281,082 Total Expenses 121,642
127,664 245,938 258,521
Income from
Operations $ 6,573 $ 6,327 $ 26,321 $ 22,561
Income before
Income Taxes 3,143 3,260 19,098 16,017
Net Income
$ 2,098 $ 2,071 $ 12,731
$ 9,916
Earnings Per Share: Net Income: Basic $ 0.09
$ 0.08 $ 0.52 $ 0.35 Diluted $ 0.08 $ 0.08 $ 0.51 $ 0.35
Weighted average common shares outstanding: Basic 24,326 27,326
24,569 28,005 Diluted 24,714 27,508 24,908 28,124
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except per share
data)
(Unaudited)
June 30, December 31, 2016 2015 2015
Assets
Current assets: Cash and cash equivalents $ 20,029 $ 43,986 $
23,153 Pawn loans 237,220 247,381 248,713 Merchandise held for
disposition, net 218,262 203,006 241,549 Pawn loan fees and service
charges receivable 49,800 50,317 52,798 Consumer loans, net 27,226
30,393 31,291 Income taxes receivable 3,993 4,084 — Prepaid
expenses and other assets 23,082 25,314 22,642 Investment in equity
securities 47,069 109,140 42,613
Total current assets 626,681 713,621 662,759 Property and
equipment, net 155,779 182,051 171,598 Goodwill 488,522 487,569
488,022 Intangible assets, net 36,523 42,562 39,536 Other assets
6,652 5,913 6,823 Total
assets $ 1,314,157 $ 1,431,716 $
1,368,738
Liabilities and Equity Current liabilities:
Accounts payable and accrued expenses $ 62,349 $ 71,586 $ 74,586
Customer deposits 21,613 20,350 18,864 Income taxes currently
payable — — 3,063 Total
current liabilities 83,962 91,936 96,513 Deferred tax liabilities
69,323 90,689 64,372 Other liabilities 630 838 723 Long-term debt
183,280 181,319 208,971
Total liabilities $ 337,195 $ 364,782
$ 370,579 Equity: Common stock, $0.10 par value per
share, 80,000,000 shares authorized, 30,235,164 shares issued 3,024
3,024 3,024 Additional paid-in capital 82,836 80,702 86,557
Retained earnings 1,061,391 1,037,505 1,052,567 Accumulated other
comprehensive income 17,817 57,649 14,842 Treasury shares, at cost
(6,241,981 shares, 3,678,936 shares and 5,362,684 shares as of June
30, 2016 and 2015, and as of December 31, 2015, respectively)
(188,106 ) (111,946 ) (158,831 ) Total equity
976,962 1,066,934 998,159
Total liabilities and equity $ 1,314,157 $
1,431,716 $ 1,368,738
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except per share
data)
(Unaudited)
Three Months Ended Six Months Ended June 30, June 30, 2016
2015 2016 2015
Revenue Pawn loan fees and
service charges $ 76,110 $ 76,899 $ 155,795 $ 154,212 Proceeds from
disposition of merchandise 148,138 138,703 326,435 310,916 Consumer
loan fees 16,066 19,311 34,173 39,630 Other 837
1,551 1,953 3,468
Total Revenue 241,151 236,464
518,356 508,226
Cost of Revenue
Disposed merchandise 109,384 98,060 238,602 217,944 Consumer loan
loss provision 3,552 4,413 7,495
9,200
Total Cost of Revenue
112,936 102,473 246,097
227,144
Net Revenue 128,215
133,991 272,259 281,082
Expenses Operations and administration 108,614 113,306
219,405 229,644 Depreciation and amortization 13,028 14,559 26,533
29,078 Gain on divestitures — (201 ) —
(201 )
Total Expenses 121,642
127,664 245,938 258,521
Income from Operations 6,573 6,327 26,321 22,561 Interest
expense (3,436 ) (3,557 ) (7,355 ) (7,201 ) Interest income — 5 20
7 Foreign currency transaction (loss) gain — (7 ) — 32 Loss on
early extinguishment of debt — (607 ) (11 ) (607 ) Gain on
disposition of equity securities 6 1,099
123 1,225
Income before
Income Taxes 3,143 3,260 19,098 16,017 Provision for income
taxes 1,045 1,189 6,367
6,101
Net Income $ 2,098
$ 2,071 $ 12,731 $ 9,916
Earnings Per Share: Net Income: Basic $ 0.09 $ 0.08 $ 0.52 $
0.35 Diluted $ 0.08 $ 0.08 $ 0.51 $ 0.35 Weighted average common
shares outstanding: Basic 24,326 27,326 24,569 28,005 Diluted
24,714 27,508 24,908 28,124 Dividends declared per common share $
0.08 $ 0.05 $ 0.16 $ 0.10
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESPAWN LOAN METRICS
The following tables outline certain data
related to pawn loan activities for the Company as of and for the
three and six months ended June 30, 2016 and 2015 (dollars in
thousands except where otherwise noted):
As of June 30, 2016 2015
$ Change
% Change Ending pawn loan balances
$ 237,220 $
247,381 $ (10,161 ) (4.1 )% Ending merchandise balance, net
$ 218,262 $ 203,006 $ 15,256 7.5 %
Three Months Ended June
30, 2016 2015
$ Change
% Change Pawn loan fees and service charges
$ 76,110
$ 76,899 $ (789 ) (1.0 )% Average pawn loan balance outstanding
$ 223,360 $ 228,140 $ (4,780 ) (2.1 )% Amount of pawn
loans written and renewed
$ 245,608 $ 257,430 $
(11,822 ) (4.6 )% Average amount per pawn loan (in ones)
$
124 $ 124 $ — — % Annualized yield on pawn loans
137.0 % 135.2 %
Six Months Ended June 30,
2016 2015
$ Change
% Change Pawn loan fees and service charges
$
155,795
$ 154,212 $ 1,583 1.0 % Average pawn loan balance outstanding
$
230,148
$ 231,748 $ (1,600 ) (0.7 )% Amount of pawn loans written and
renewed
$
473,961
$ 479,606 $ (5,645 ) (1.2 )% Average amount per pawn loan (in ones)
$
127
$ 126 $ 1 0.8 % Annualized yield on pawn loans
136.1
% 134.2 %
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESMERCHANDISE DISPOSITION, GROSS PROFIT AND
INVENTORY OPERATING DATA
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 generally the principal
amount loaned on an item or the amount paid for purchased
merchandise. The following table summarizes the proceeds from the
disposition of merchandise and the related gross profit for the
three and six months ended June 30, 2016 and 2015 (dollars in
thousands):
Three Months Ended June 30, 2016 2015
Retail Commercial Total Retail
Commercial Total Proceeds from disposition
$
122,588 $ 25,550 $ 148,138 $
119,323 $ 19,380 $ 138,703 Gross profit on disposition
$
39,431 $ (677 ) $ 38,754
$ 38,798 $ 1,845 $ 40,643 Gross profit margin
32.2 %
(2.6 )% 26.2 % 32.5 % 9.5 % 29.3 %
Percentage of total gross profit
101.7 % (1.7
)% 100.0 % 95.5 % 4.5 % 100.0 %
Six Months Ended June 30, 2016 2015
Retail Commercial Total Retail
Commercial Total Proceeds from disposition
$
273,315 $ 53,120 $ 326,435 $
267,472 $ 43,444 $ 310,916 Gross profit on disposition
$
89,031 $ (1,198 ) $
87,833 $ 85,754 $ 7,218 $ 92,972 Gross profit margin
32.6 % (2.3 )% 26.9 %
32.1 % 16.6 % 29.9 % Percentage of total gross profit
101.4
% (1.4 )% 100.0 % 92.2 % 7.8 %
100.0 %
The table below summarizes the age of merchandise held for
disposition related to the Company’s pawn lending operations as of
June 30, 2016 and 2015, and December 31, 2015 (dollars in
thousands):
As of June 30, As of December
31, 2016 2015 2015
Amount %
Amount % Amount % Jewelry - held for one year or less
$ 128,509 58.1 % $ 117,254 57.0 % $
135,215 55.3 % Other merchandise - held for one year or less
87,094 39.4 % 77,659
37.8 % 93,498 38.3 % Total merchandise
held for one year or less
215,603 97.5
% 194,913 94.8 % 228,713
93.6 % Jewelry - held for more than one year
3,014
1.4 % 5,233 2.5 % 8,935 3.7 % Other merchandise -
held for more than one year
2,595 1.1
% 5,460 2.7 % 6,701 2.7 %
Total merchandise held for more than one year
5,609
2.5 % 10,693 5.2 % 15,636 6.4 %
Merchandise held for disposition, gross
$ 221,212
100.0 % $ 205,606 100.0 % $ 244,349
100.0 % Less: Inventory valuation allowance
$
(2,950 ) $ (2,600 ) $ (2,800 )
Merchandise held for disposition, net of allowance
$
218,262 $ 203,006
$ 241,549
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESCONSUMER LOAN METRICS AND BALANCES
The following table sets forth interest and fees on consumer
loans, the consumer loan loss provision and consumer loan fees, net
of the loss provision, related to consumer loan activities for the
Company for the three and six months ended June 30, 2016 and
2015 (dollars in thousands except where otherwise noted):
Three Months Ended June 30, 2016 2015
Short-term Installment Short-term
Installment
loans loans Total
loans loans Total Consumer loan fees
$ 10,805
$ 5,261 $ 16,066 $ 13,362 $ 5,949 $
19,311 Less: consumer loan loss provision
2,320
1,232 3,552
1,711 2,702 4,413 Consumer loan
fees, net of loss provision
$ 8,485
$ 4,029 $ 12,514
$ 11,651 $ 3,247 $ 14,898
Year-over-year change - $
$ (3,166 )
$ 782 $ (2,384 ) $ (2,837 ) $
1,684 $ (1,153 ) Year-over-year change - %
(27.2 )%
24.1 % (16.0 )% (19.6 )% 107.7 % (7.2
)%
Consumer loan loss provision as a % of
consumer loan fees
21.5 % 23.4 %
22.1 % 12.8 % 45.4 % 22.9 %
Six Months Ended June 30, 2016
2015
Short-term Installment Short-term
Installment
loans loans Total
loans loans Total Consumer loan fees
$ 22,436
$ 11,737 $ 34,173 $ 30,425 $ 9,205 $
39,630 Less: consumer loan loss provision
4,689
2,806 7,495
4,830 4,370 9,200 Consumer loan
fees, net loss provision
$ 17,747
$ 8,931 $ 26,678
$ 25,595 $ 4,835 $ 30,430
Year-over-year change - $
$ (7,848 )
$ 4,096 $ (3,752 ) $ (5,445 ) $
1,663 $ (3,782 ) Year-over-year change - %
(30.7 )%
84.7 % (12.3 )% (17.5 )% 52.4 % (11.1
)%
Consumer loan loss provision as a % of
consumer loan fees
20.9 % 23.9 %
21.9 % 15.9 % 47.5 % 23.2 %
In addition to reporting consumer loans owned by the Company and
consumer loans guaranteed by the Company, which are either items
accounted for in accordance with generally accepted accounting
principals (“GAAP”) or disclosures required by GAAP, the Company
has provided combined consumer loans, which is a non-GAAP measure
that combines the consumer loans owned by the Company and those
guaranteed by the Company. In addition, the Company has reported
combined consumer loans written and renewed, which is statistical
data that is not 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. Management also
believes that the comparison of the aggregate amounts from period
to period is more meaningful than comparing only the amounts
reflected on the Company’s balance sheet since both revenue and the
loss provision for consumer loans are impacted by the aggregate
amount of consumer loans owned by the Company and those guaranteed
by the Company as reflected in its financial statements.
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESCONSUMER LOAN METRICS AND BALANCES
The following tables provide additional information related to
each of the Company’s consumer loan products as of and for the
three and six months ended June 30, 2016 and 2015 (dollars in
thousands):
Three Months Ended June 30, 2016 2015
Short-term Installment
Short-term
Installment
loans loans Total
loans loans Total
Consumer loans written and
renewed(a) Company owned
$ 93,624 $
1,419 $ 95,043 $ 107,026 $ 1,501 $ 108,527
Guaranteed by the Company(b)
3,833
11,661 15,494 6,811
23,783 30,594 Combined consumer
loans written and renewed
$ 97,457
$ 13,080 $ 110,537
$ 113,837 $ 25,284 $
139,121
As of June 30, 2016 2015
Ending
consumer loan balances, gross Company owned
$
26,265 $ 3,269 $ 29,534 $ 29,092
$ 4,834 $ 33,926 Guaranteed by the Company(b)
819
6,572 7,391
1,659 11,223 12,882 Combined
ending consumer loan balances, gross(d)
$
27,084 $ 9,841
$ 36,925 $ 30,751 $
16,057 $ 46,808
Allowance and liability for
losses Company owned
$ 1,350 $ 958
$ 2,308 $ 2,106 $ 1,427 $ 3,533 Guaranteed by the
Company(b)
27 313
340 159 1,763
1,922 Combined allowance and liability for losses
$ 1,377 $ 1,271
$ 2,648 $ 2,265 $
3,190 $ 5,455
Ending consumer loan
balances, net Company owned
$ 24,915 $
2,311 $ 27,226 $ 26,986 $ 3,407 $ 30,393
Guaranteed by the Company(b)
792
6,259 7,051 1,500
9,460 10,960 Combined ending consumer
loan balances,
net(d)
$ 25,707 $ 8,570
$ 34,277 $ 28,486
$ 12,867 $ 41,353
Average amount
outstanding per consumer loan (in ones)(a)(c)
$ 446 $ 1,199
$ 454 $ 1,241
Consumer loan
ratios:
Allowance and liability for losses as a % of combined ending
consumer loan balance, gross(d)
5.1 %
12.9 % 7.2 % 7.4 %
19.9 % 11.7 %
Six Months Ended June 30,
2016 2015
Short-term Installment
Short-term Installment
loans
loans Total loans loans Total
Consumer loans
written and renewed (a) Company owned
$
185,838 $ 2,609 $ 188,447 $
241,503 $ 2,949 $ 244,452 Guaranteed by the Company (b)
8,043 20,290
28,333 14,868 37,786
52,654 Combined consumer loans written and renewed
$ 193,881 $ 22,899
$ 216,780 $ 256,371
$ 40,735 $ 297,106
(a) The disclosure regarding the amount of consumer loans
written and renewed and the average amount per consumer loan is
statistical data that is not included in the Company’s financial
statements.(b) The consumer loan balances guaranteed by the Company
represent loans originated by third-party lenders through the
credit services organization and credit access business 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 the Company’s
consolidated balance sheets.(c) The average amount outstanding per
consumer loan is calculated as the total amount of combined
consumer loans outstanding as of the end of the period divided by
the total number of combined consumer loans outstanding as of the
end of the period.(d) Non-GAAP measure.
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESLOCATION INFORMATION
Locations
The following table sets forth, as of June 30, 2016 and 2015,
the number of Company-operated locations that offered pawn lending,
consumer lending, and other services, in addition to franchised
locations that offered check cashing services. The Company provides
these services in the United States primarily under the names “Cash
America Pawn,” “SuperPawn,” “Cash America Payday Advance,”
“Cashland” and “Mr. Payroll.” The Company’s pawn and consumer
lending locations operated in 20 states in the United States as of
both June 30, 2016 and 2015, respectively. As of both
June 30, 2016 and 2015, the franchised check cashing centers
operated in 12 states.
As of June 30, 2016 2015
Company-operated locations offering: Pawn lending only
590 549 Both pawn and consumer lending
206 255
Consumer lending only
21 22 Total
Company-operated locations
817 826 Franchised check cashing
centers
72 78 Total
889
904
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESNON-GAAP DISCLOSURE
Non-GAAP Disclosure
In addition to the financial information prepared in conformity
with GAAP, the Company has provided certain historical non-GAAP
measures in the tables below, including (i) adjusted net income,
adjusted diluted net income per share, adjusted earnings, adjusted
earnings per share and adjusted income from operations
(collectively, the “Adjusted Earnings Measures”), and (ii) adjusted
EBITDA, which the Company defines as earnings excluding
depreciation, amortization, interest, foreign currency transaction
gains or losses, loss on early extinguishment of debt, gain on
disposition of equity securities and provision or benefit for
income taxes. Management also provides estimated adjusted net
income per share, which is a non-GAAP measure.
Management believes that the presentation of these measures
provides users of the financial statements with greater
transparency and facilitates a more meaningful comparison of
operating results across a broad spectrum of companies with varying
capital structures, compensation strategies, derivative instruments
and depreciation and amortization methods. In addition, management
believes this information provides a more in-depth and complete
view of the Company’s financial performance, competitive position
and prospects for the future and may highlight trends in the
Company’s business that may not otherwise be apparent when relying
on financial measures calculated in accordance with GAAP.
Management also believes that non-GAAP measures are frequently used
by analysts and investors to analyze operating performance,
evaluate the Company’s ability to incur and service debt and its
capacity for making capital investments, and to help assess the
Company’s estimated enterprise value.
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESNON-GAAP DISCLOSURE
Management believes the non-GAAP measures included herein,
including the adjustments shown, provide more meaningful
information regarding the ongoing operating performance, provide
more useful period-to-period comparisons of operating results, both
internally and in relation to operating results of competitors,
enhance analysts’ and investors’ understanding of the core
operating results of the business and provide a more accurate
indication of the Company’s ability to generate cash flows from
operations. Therefore, management believes it is important to
clearly identify these measures for investors.
In calculating adjusted earnings and adjusted earnings per
share, management excludes intangible asset amortization, non-cash
equity based compensation and foreign currency transaction gains or
losses. In addition, management has determined that the adjustments
to the Adjusted Earnings Measures and adjusted EBITDA, as
applicable, included in the tables below are useful to analysts and
investors in order to allow them to compare the Company’s financial
results for the current period with the comparative period without
the effect of the below items, which management believes are less
frequent in nature:
- costs related to the pending merger
with First Cash Financial Services, Inc. (the “Merger”);
- the loss on early extinguishment of
debt;
- the gain on disposition of equity
securities;
- severance and other employee-related
costs for administrative and operations staff reductions in
connection with the Company’s reorganization to better align the
corporate and operating cost structure with its remaining
storefront operations (the “Reorganization”) after the Company
completed the distribution of approximately 80% of the outstanding
shares of Enova International, Inc. common stock to the Company’s
shareholders in 2014; and
- the loss on significant divestitures of
non-strategic operations.
In addition to the presentation of Adjusted EBITDA for the three
and six months ended June 30, 2016 and 2015, Adjusted EBITDA
is presented for the trailing twelve months ended June 30, 2016 and
2015. Therefore, certain adjusting items that occurred in the third
and fourth quarters of 2015 and 2014 are presented in the adjusted
EBITDA table for the trailing twelve months ended June 30, 2016 and
2015.
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.
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESNON-GAAP DISCLOSUREADJUSTED EARNINGS
MEASURES
The following table provides a reconciliation for the three and
six months ended June 30, 2016 and 2015, between net income
and diluted net income 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 June 30, Six Months
Ended June 30, 2016 2015
2016 2015
Per Per
Per Per
Diluted Diluted
Diluted Diluted
$
Share(a)
$
Share(b)
$
Share(a)
$
Share(a)
Net income and diluted net income per share
$ 2,098
$ 0.08 $ 2,071 $ 0.08
$ 12,731 $
0.51 $ 9,916 $ 0.35 Adjustments (net of tax): Merger
expenses
2,323 0.10 — —
2,323 0.09 — —
Loss on early extinguishment of debt
— — 382 0.01
7 — 382 0.01 Gain on disposition of equity securities
(4 ) — (709 ) (0.03 )
(79 )
— (790 ) (0.02 ) Reorganization expenses
—
— — —
— — 537
0.02 Adjusted net income and adjusted diluted net
income per share
4,417 0.18
1,744 0.06
14,982
0.60 10,045 0.36
Other adjustments (net of tax): Intangible asset
amortization
968 0.04 1,028 0.04
1,935
0.08 2,057 0.07 Non-cash equity-based compensation
684 0.03 1,038 0.04
1,801 0.07 2,044
0.07 Foreign currency transaction loss (gain)
—
— 4 —
— — (20 ) —
Adjusted earnings and adjusted earnings per share
$ 6,069 $ 0.25
$ 3,814 $ 0.14
$
18,718 $ 0.75 $
14,126 $ 0.50
(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.
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESNON-GAAP DISCLOSUREADJUSTED EARNINGS
MEASURES
The tables below outline the gross amounts, the impact of income
taxes and the net amounts for each of the adjustments included in
the previous table (dollars in thousands):
Three Months Ended June 30, 2016 2015
Pre-tax Tax After-tax Pre-tax
Tax After-tax Merger expenses
$ 3,688
$ 1,365 $ 2,323 $ —
$ — $ — Loss on early extinguishment of debt
—
— — 607 225 382 Gain on disposition of equity
securities
(6 ) (2 ) (4 )
(1,099 ) (390 ) (709 ) Reorganization expenses
—
— — —
— — Total Adjustments
$ 3,682 $ 1,363
$ 2,319 $ (492 ) $ (165 )
$ (327 )
Intangible asset
amortization
$ 1,536 $ 568 $
968 $ 1,631 $ 603 $ 1,028 Non-cash equity-based compensation
1,085 401 684 1,648 610 1,038 Foreign currency
transaction loss
— —
— 7 3 4
Total Other adjustments
$ 2,621
$ 969 $ 1,652
$ 3,286 $ 1,216 $ 2,070
Six Months Ended June 30, 2016
2015
Pre-tax Tax
After-tax Pre-tax Tax After-tax Merger
expenses
$ 3,688 $ 1,365 $
2,323 $ — $ — $ — Loss on early extinguishment of debt
11 4 7 607 225 382 Gain on disposition of
equity securities
(123 ) (44 )
(79 ) (1,225 ) (435 ) (790 ) Reorganization expenses
— — —
853 316 537 Total
Adjustments
$ 3,576 $
1,325 $ 2,251 $
235 $ 106 $ 129
Intangible asset amortization
$ 3,072 $
1,137 $ 1,935 $ 3,265 $ 1,208 $ 2,057 Non-cash
equity-based compensation
2,858 1,057 1,801
3,245 1,201 2,044 Foreign currency transaction gain
—
— — (32 )
(12 ) (20 ) Total Other adjustments
$
5,930 $ 2,194
$ 3,736 $ 6,478 $ 2,397
$ 4,081
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESNON-GAAP DISCLOSUREADJUSTED
EBITDA
The following table provides a reconciliation for the three and
six months ended June 30, 2016 and 2015, between net income,
which is the nearest GAAP measure, to adjusted income from
operations and adjusted EBITDA (dollars in thousands):
Three Months Ended June 30, Six Months
Ended June 30, 2016 2015 2016 2015 Net
income
$ 2,098 $ 2,071 $ 12,731 $ 9,916 Provision for
income taxes
1,045 1,189 6,367 6,101 Gain on disposition of
equity securities
(6 ) (1,099 ) (123 ) (1,225 ) Loss
on early extinguishment of debt
— 607 11 607 Foreign
currency transaction loss (gain)
— 7 — (32 ) Interest
expense, net
3,436 3,552 7,335 7,194 Adjustments: Merger
expenses
3,688 — 3,688 — Reorganization expenses
— — — 853
Adjusted income from operations
10,261
6,327 30,009 23,414 Depreciation
and amortization expenses
13,028 14,559
26,533 29,078 Adjusted EBITDA
$ 23,289 $ 20,886
$ 56,542 $ 52,492
The following table provides a reconciliation for the twelve
months ended June 30, 2016 and 2015, between net income, which is
the nearest GAAP measure, to adjusted EBITDA (dollars in
thousands):
Trailing 12 Months Ended June 30, 2016
2015 Net income
$ 30,381 $ 8,038 Provision for
income taxes
15,744 9,623 Gain on disposition of equity
securities
(586 ) (1,225 ) Loss on early
extinguishment of debt
11 6,598 Foreign currency transaction
gain
— (28 ) Interest expense, net
14,498 15,254
Depreciation and amortization expenses
53,706 59,696
Adjustments: Merger expenses
3,688 — Reorganization expenses
— 8,391 Loss on divestitures
—
5,176 Adjusted EBITDA
$ 117,442
$ 111,523 Adjusted EBITDA margin calculated as
follows: Total revenue
$ 1,039,621 $ 1,064,679
Adjusted EBITDA
$ 117,442 $
111,523 Adjusted EBITDA as a percentage of total revenue
11.3 % 10.5 %
CASH AMERICA INTERNATIONAL, INC. AND
SUBSIDIARIESNON-GAAP DISCLOSUREESTIMATED ADJUSTED NET
INCOME PER SHARE
The information set forth below does not take into account the
pending costs or efficiencies related to the merger with First Cash
Financial Services, Inc., which was announced on April 28, 2016.
The Company’s estimated adjusted net income per share is based
solely on the Company’s expected stand-alone operational
performance and excludes any future merger-related expenses or any
expected results of the combined company in the event the merger
transaction is completed during the remainder of 2016.
A reconciliation is shown for the year ended December 31, 2016,
between estimated net income per share, which is the nearest GAAP
measure, to estimated adjusted net income per share. For per-share
amounts shown for the year ended December 31, 2016, amounts are
based on an estimated number of diluted weighted average common
shares outstanding for the year ended December 31, 2016.
Estimated Results (a) For the year ended
December 31, 2016 Low High (Unaudited)
Estimated net income per share $ 1.25 $ 1.41 Adjustments
(net of tax) (b) 0.09 0.09 Estimated adjusted
net income per share $ 1.34 $ 1.50
(a) As of the Company press release dated
July 28, 2016.(b) Represents pre-tax expenses of $3.6 million
($2.3 million, or $0.09 per share, after taxes) for the six months
ended June 30, 2016 and does not represent any amounts for future
merger expenses for the last six months of 2016. See table below
for each item that makes up the adjustments.
The tables below outline the gross amounts, the impact of income
taxes and the net amounts for the adjustments included in the above
table (dollars in thousands):
Six Months Ended June 30, 2016 Pre-tax
Tax After-tax Per share
Merger expenses
$ 3,688 $ 1,365
$ 2,323 $ 0.09 Loss on early
extinguishment of debt
11 4 7 — Gain on
disposition of equity securities
(123 )
(44 ) (79 ) — Total
Adjustments
$ 3,576 $
1,325 $ 2,251
$ 0.09
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160728005452/en/
Cash America International, Inc.Thomas A. Bessant, Jr.,
817-335-1100
Listed Funds Tru (NYSE:CSH)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Listed Funds Tru (NYSE:CSH)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024