Cash America Announces First Quarter Net Earnings Increase 20% and Declares Dividend.FORT WORTH, Texas--(BUSINESS WIRE)--April 22, 1998--Cash America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. International, Inc. (NYSE NYSE See: New York Stock Exchange :PWN In gaming, to trounce an opponent. To be "pwned" is to be defeated unmercifully. Pronounced "pone," "pwen," "pawn" or "pun," the derivation of the term is obscure. Some believe it came from a common typo of "own" because the o and p keys are next to each other. ) announced today that net income increased 20% in the first three months of fiscal 1998 compared to the prior year. Net earnings reached $4,534,000 (18 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) for the three months ended March 31, 1998 compared to $3,790,000 (15 cents per share) for the three months ended March 31, 1997. Total revenue increased 10% in the first quarter of 1998 to $84,194,000 from $76,519,000 in the first quarter of 1997. The earnings increase was driven by a 44% increase in net earnings from the Company's core lending activities. Lending operations produced net earnings of $5,528,000 in the first three months of 1998 versus $3,844,000 during the same period in 1997. The first quarter is a significant period from a seasonal standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the and Cash America benefited from higher loan balances coming into the quarter. Net revenue from lending activities were up 10% in the three month period ended March 31, 1998 reaching $47.5 million compared to $43.2 million in 1997. Check cashing operations, conducted through Cash America's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. Mr. Payroll payroll a list of employees, their salary rates, tax deductions, amounts paid, payroll tax, long service leave entitlements. Corporation, reported a net loss of $941,000 in the first three months of 1998, almost 4 cents per share, compared to a loss of $54,000 in the same period last year. Mr. Payroll Corporation developed a fully automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. check cashing machine in June June: see month. of 1997 and began commercial deployment in late 1997 and in the first quarter of 1998. Commenting on the results of the first quarter, Chairman and Chief Executive Officer Jack R. Daugherty Daugherty can refer to: People
A type of proceeding pursuant to federal Bankruptcy of merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain in 1997 and kept the momentum going into 1998. Higher loan balances generated increased finance and service charge revenue and the disposition of merchandise available for sale was improved over the prior year, leading to significant gains in net revenue from lending activities." Daugherty added, "The performance of our core business allowed us to support the development of Mr. Payroll operations during the quarter. The potential benefits of Mr. Payroll's check cashing activities will be realized in future years and our investment today is necessary in order to have the opportunity to achieve its long term objectives." Also during the quarter, Cash America announced that it had added 14 new lending locations and entered into a letter of intent to acquire a 40 unit pawnshops chain during the second quarter of 1998. The additions further the Company's standing as the largest operator of pawnshops. Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. 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 5, 1998 and will be paid at the close of business on May 19, 1998. Cash America International, Inc. is a diversified diversified (di·verˑ·s provider of specialty finance services to individuals in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , United Kingdom and Sweden Sweden, Swed. Sverige, officially Kingdom of Sweden, constitutional monarchy (2005 est. pop. 9,002,000), 173,648 sq mi (449,750 sq km), N Europe, occupying the eastern part of the Scandinavian peninsula. . Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 415 locations in 16 states and two foreign countries. In addition, the Company provides check cashing services through its wholly owned subsidiary, Mr. Payroll Corporation, and rental services through its wholly owned subsidiary, Express Rent A Tire, Inc. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about the business, financial condition and prospects of Cash America International, Inc. and Mr. Payroll Corporation ("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 demand for the Company's services, changes in competition, the ability of the Company to open new operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. 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. 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 indicated by the forward-looking statements. -0-
Cash America International, Inc.
Highlights of Consolidated Results of Operations
(In thousands, except per share data)
Three Months Ended
March 31,
--------------------
1998 1997
--------------------
Consolidated Operations:
Total Revenue $ 84,194 $ 76,519
Net Revenue 48,698 44,058
Total Operating Expenses 38,416 35,125
Income from Operations 10,282 8,933
Interest Expense 3,007 2,806
Net Income $ 4,534 $ 3,790
Net Income Per Share - Basic $ 0.19 $ 0.16
Net Income Per Share - Diluted $ 0.18 $ 0.15
Weighted Average Shares - Basic 24,429 24,245
Weighted Average Shares - Diluted 25,633 24,875
Segment Results:
Lending Operations --
Total Revenue $ 82,112 $ 75,635
Net Revenue 47,498 43,174
Total Operating Expenses 35,737 34,225
Income from Operations 11,761 8,949
Check Cashing Operations --
Total Revenue 1,529 884
Net Revenue 795 884
Total Operating Expenses 2,214 900
Loss from Operations (1,419) (16)
Rental Operations --
Total Revenue 553 --
Net Revenue 405 --
Total Operating Expenses 465 --
Loss from Operations (60) --
Financial and Operational
Data as of: 3/31/98 3/31/97 12/31/97
-------- -------- --------
Lending Operations --
Loans Outstanding $108,907 $101,732 $112,240
Merchandise Held
for Disposition 51,585 45,455 53,468
Number of Locations
(not in thousands) 415 385 401
Amounts Per Location --
Consolidated:
Loans Outstanding $ 262 $ 264 $ 280
Merchandise Held
for Disposition 124 118 133
Domestic:
Loans Outstanding $ 176 $ 173 $ 199
Merchandise Held
for Disposition 138 134 150
Check Cashing Operations --
Average Number of Units
During the Period (not in thousands) --
Franchised Check
Cashing Units 146 150 150
Automated Check
Cashing Machines 32 -- 5
Annualized Amount of
Checks Cashed Per Average Unit --
Franchised Check
Cashing Units $ 6,522 $ 5,488 $ 5,017
Automated Check
Cashing Machines 2,348 -- 1,733
CONTACT: Cash America International, Fort Worth Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs A. Bessant, Jr., 817/335-1100 |
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