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Cash America Completes 2006 with an Increase in Fourth Quarter Earnings of 32%.


FORT WORTH, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities.  -- Cash America International, Inc. (NYSE NYSE

See: New York Stock Exchange
:CSH csh - C shell ) announced today that income from continuing operations continuing operations

Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the
 for the fourth quarter ended December 31, 2006 increased 32% to $21,698,000 (71 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.
) compared to $16,456,000 (55 cents per share) for the same period in 2005. Total revenue for the fourth quarter 2006 increased 26% to $215.4 million, up from $171.0 million during the same period in 2005. The year-over-year gain in total revenue was largely attributable to an 80% increase in short-term cash advance fees to $71,870,000 in the fourth quarter 2006 compared to $39,954,000 during the same period in 2005. Higher balances of cash advances extended to customers and the inclusion of CashNetUSA which was acquired on September 15, 2006 contributed to the significant rise in revenue from cash advance fees.

Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, "Our Company continues to see increased levels of customer demand for both our pawn loans and cash advance services. The increase in these asset levels is driving the revenue of the Company higher and we are beginning to see the benefits as our operating income Operating Income

The profit realized from a business' own operations.

Notes:
This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit.
 rose 32% in the fourth quarter over last year's fourth quarter. Consolidated net revenue from same stores increased 8.3% in the fourth quarter of 2006 compared to the same quarter last year, led by a 24% increase in same store net revenue in our cash advance segment, which combined with a same store net revenue increase of 6% in our pawn segment to produce the consolidated results."

Total revenue for the fiscal year ended December 31, 2006, was $693.2 million, up 17% from $594.3 million in 2005. Cash America finished fiscal year 2006 with 36% increase in income from continuing operations to $60,940,000 ($2.00 per share) for the twelve-month period compared to $44,821,000 ($1.48 per share) in fiscal 2005. Included in the 2006 total was an after-tax gain of 5 cents per share related to the early termination of a store lease in the second quarter. Excluding the 5 cent gain, income from continuing operations was up 33% to $59,531,000 ($1.95 cents per share) from the previous year.

Cash America will host a conference call to discuss the fourth quarter results on Thursday, January 25th at 3:45 PM CST CST
abbr.
1. Central Standard Time

2. convulsive shock treatment


CST Central Standard Time

Noun 1.
. A live web cast of the call will be available on the Investor Relations Investor relations

The process by which the corporation communicates with its investors.
 section 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. A replay will be available on the Company's web site for 90 days following the conference call.

Outlook for the First Quarter of 2007 and the 2007 Fiscal Year

Management believes that the opportunities for sustained growth in revenue and earnings will be largely associated with the customer demand for the credit products provided by the Company, which take the form of pawn loans and short-term cash advances. Other elements expected to affect the growth in revenue include the ongoing maturation maturation /mat·u·ra·tion/ (mach-u-ra´shun)
1. the process of becoming mature.

2. attainment of emotional and intellectual maturity.

3.
 of the 233 additional pawn and cash advance locations opened or acquired during the last 36 months, the regulatory governance of consumer loan products and the integration of CashNetUSA. As it enters the first quarter of 2007, management anticipates that demand for the Company's products will remain strong, but also believes that trends in tax refunds Tax refund

Money back from the government when too much tax has been paid or withheld from a salary.
 received by the Company's customers during the first quarter will have a meaningful impact on the first quarter results. Typically the Company's customers who receive refunds use those proceeds to pay past due cash advance obligations, to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun.  pawned merchandise and to purchase merchandise at the Company's locations. Based on its views and on the preceding factors management expects that the first quarter 2007 net income per share will be between 60 and 64 cents per share compared to 51 cents per share in the first quarter 2006.

Expectations for the remainder of fiscal 2007 will be affected by the magnitude of personal income tax refunds for many of the Company's customers and the subsequent recovery of earning asset Earning asset

An asset that generates income, e.g., income from rental property.
 levels in later periods based on customer demand for credit products. At this time, management is increasing the lower end of its previously reported expectations for full fiscal year 2007 earnings per share producing a new expected range of $2.45 and $2.55, compared to $1.95 per share from continuing operations in fiscal 2006. The fiscal 2006 comparable full year income from continuing operations excludes the $1.4 million after-tax gain (5 cents per share) related to the early termination of a store lease reported in the second quarter of fiscal 2006.

Cash America International, Inc. is a provider of specialty financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page.
 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.  with 918 total locations. Cash America is the largest provider of secured non-recourse loans to individuals, commonly referred to as pawn loans, through 487 locations in 22 states under the brand names Cash America Pawn and SuperPawn. The Company also offers short-term cash advances in many of its locations including 295 locations that offer this service under the brand names Cash America Payday Advance and Cashland. Short-term cash advances are also offered to customers via the Internet distribution channel of CashNetUSA located at http://www.cashnetusa.com. In addition, check cashing services are provided through its 136 franchised and Company-owned "Mr. Payroll" check cashing centers. For additional information, visit the Company's website located at http://www.cashamerica.com.

Safe Harbor Safe Harbor

1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.

2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive.
 Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995

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 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 demand for the Company's services, the actions of third parties who offer products and services at the Company's locations, fluctuations in the price of gold, 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 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, the ability to successfully integrate newly acquired businesses into the Company's operations 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, 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," "plans," "expects," "anticipates" and similar expressions 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.
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COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jan 25, 2007
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