Cash America International Announces Financial Results for the Third Quarter, Change in Accounting Principle and the Delivery of Information to Investment Firm.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. ) today announced the results of operations for the third quarter ended Sept. 30, 1995, and that its Board of Directors adopted a change in accounting principle relative to the company's method of revenue recognition on pawn loans. Under the revised method of revenue recognition, the company accrues pawn service charges for only those loans which the company deems collection to be probable PROBABLE. That which has the appearance of truth; that which appears to be founded in reason. based on historical statistics for its loan portfolio. For loans not repaid, the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of the forfeited for·feit n. 1. Something surrendered or subject to surrender as punishment for a crime, an offense, an error, or a breach of contract. 2. Games a. collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although , which becomes inventory available for sale, is the lower of cost (the principal amount loaned) or market. The change in revenue recognition is effective for the full year 1995 financial results and creates a one time after tax charge of $19,772,000 (68 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. ). Jack R. Daugherty Daugherty can refer to: People
A type of proceeding pursuant to federal Bankruptcy of forfeited collateral." Under the revised method of revenue recognition, the company reported that net income for the three months ended Sept. 30, 1995 before the cumulative effect of the accounting change was $1,603,000 (6 cents per share) compared to the prior year's earnings for the same period of $2,115,000 (7cents per share). Income from operations increased 8 percent for the third quarter of fiscal 1995 to $5,553,000 from $5,139,000 on the strength of a 10 percent increase in retail sales and a 14 percent increase in pawn in the state of being pledged. See also: Pawn service charges during the quarter. Revenue net of cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold rose 14 percent for the three month period, increasing from $31,528,000 in 1994 to $35,887,000 in 1995. The company attributed all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal low domestic loan balances per shop at the end of the second quarter to slower growth in pawn service charge revenue which constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. earnings during the third quarter. For the nine months ended Sept. 30, 1995, 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. reported that net income before the cumulative effect of the accounting change increased 12 percent from $6,615,000 (23 cents per share) to $7,377,000 (26 cents per share). Revenue net of cost of goods sold was 22 percent higher for the first nine months of 1995, increasing from $88,408,000 to $108,219,000, due to a 19 percent gain in retail sales and a 25 percent rise in pawn service charges. Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. R. Feehan, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said, "We are pleased with our level of discipline from an expense 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 , which contributed to the positive comparison of earnings for the first nine months of 1995, and we remain dedicated to maintaining this philosophy." The effect of the change in accounting principle caused net earnings to be $1.76 million and $2.10 million lower for the three months ended Sept. 30, 1995 and 1994, respectively, and $2.44 million and $3.58 million lower for the nine month periods of 1995 and 1994, respectively. The resulting impact of the change in revenue recognition will cause the final quarter of the fiscal year to have a higher portion of the full year's earnings than under the prior method due to the active Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). selling season. Based on the company's historical method of revenue recognition, the net earnings for the three month period ended Sept. 30, 1995 and 1994 would have been $3,362,000 (12 cents per share) and $4,211,000 (15 cents per share), respectively, while after tax earnings for the nine month periods would have been $9,821,000 (34 cents per share) and $10,198,000 (35 cents per share) for 1995 and 1994, respectively. In addition, Cash America announced that the company has delivered certain nonpublic information Nonpublic information Information about a company that is not known by the general public, which will have a definite impact on the stock price when released. See: Insider trading. , under a confidentiality Restrictions on the accessibility and dissemination of information. Confidentiality is one of the six fundamental components of information security (see Parkerian Hexad). agreement, regarding its business to an investment firm pursuant to an unsolicited un·so·lic·it·ed adj. Not looked for or requested; unsought: an unsolicited manuscript; unsolicited opinions. unsolicited Adjective request and has held discussions with its representatives concerning the information sent. The purpose of the disclosure of the information is to enable the firm to evaluate Cash America as a possible acquisition candidate in a transaction involving present company management. There is no assurance that an offer will be forthcoming or, if received, that it will be acceptable to the company. Cash America International, Inc. is the largest operator of secured non-recourse consumer loan outlets, commonly known as pawnshops, providing non-traditional financing alternatives to a growing segment of the population. Cash America operates a total of 370 shops 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. , the 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. -0-
Cash America International, Inc.
Summary of Consolidated Results - New Accounting Method
(Dollars in thousands, except per share)
UNAUDITED
-----------------
Pro
Forma
1995 1994
------- -------
Income Statement Data For The
Three Months Ended Sept. 30:
Pawn Service Charges $ 20,106 $ 17,602
Sales 37,530 34,198
Gross Profit From Sales 15,781 13,926
Net Revenues 35,887 31,528
Total Operating Expenses 30,334 26,389
Income From Operations 5,553 5,139
Interest Expense 2,713 1,757
Net Income 1,603 2,115
Net Income per Share $ 0.06 $ 0.07
Weighted Average Shares 28,815 28,869
Income Statement Data For The
Nine Months Ended Sept. 30:
Pawn Service Charges $ 58,158 $ 46,527
Sales 119,845 100,691
Gross Profit From Sales 50,061 41,881
Net Revenues 108,219 88,408
Total Operating Expenses 88,266 73,633
Income From Operations 19,953 14,775
Interest Expense 7,700 3,920
Income Before-Cumulative
Effect of Change in
Accounting Principle 7,377 6,615
Cumulative effect of a
change in accounting
principle on prior years
(to Dec. 31, 1994) (19,772) --
Net (Loss) Income (12,395) 6,615
Net Income per Share-Before
Cumulative Effect of
Accounting Change $ 0.26 $ 0.23
Net (Loss) Income per Share-
After Cumulative Effect of
Accounting Change $ (0.42) $ 0.23
Weighted Average Shares 28,914 28,933
Pro Pro
Forma Forma
Data As Of: 9/30/95 12/31/94 9/30/94
------- -------- -------
Balance Sheet-
Loans Outstanding $87,236 $78,095 $79,742
Inventory 59,085 58,079 55,823
Number of Stores- 369 340 333
Amounts Per Store-
Consolidated-
Loans Outstanding $ 236 $ 230 $ 239
Inventory 160 171 168
Domestic-
Loans Outstanding $ 161 $ 159 $ 167
Inventory 181 193 189
Cash America International, Inc.
Summary of Consolidated Results - New Accounting Method
(Dollars in thousands, except per share)
This schedule is provided for informational purposes only and
reflects what the results of operations would have been if there had
not been a change in accounting method.
UNAUDITED
-----------------
Pro
Forma
1995 1994
------- -------
Income Statement Data For The
Three Months Ended Sept. 30:
Pawn Service Charges $ 32,373 $ 29,063
Sales 37,530 34,198
Gross Profit From Sales 6,357 5,793
Net Revenues 38,730 34,856
Total Operating Expenses 30,334 26,389
Income From Operations 8,396 8,467
Interest Expense 2,713 1,757
Net Income 3,362 4,211
Net Income per Share $ 0.12 $ 0.15
Weighted Average Shares 28,815 28,869
Income Statement Data For The
Nine Months Ended Sept. 30:
Pawn Service Charges $ 91,459 $ 75,087
Sales 119,845 100,691
Gross Profit From Sales 20,639 19,009
Net Revenues 112,098 94,096
Total Operating Expenses 88,266 73,636
Income From Operations 23,832 20,463
Interest Expense 7,700 3,920
Net Income 9,821 10,198
Net Income per Share $ 0.34 $ 0.35
Weighted Average Shares 28,914 28,933
Data As Of: 9/30/95 12/31/94 9/30/94
------- -------- -------
Balance Sheet-
Loans Outstanding $87,236 $78,095 $79,742
Inventory 84,427 80,894 78,004
Number of Stores- 369 340 333
Amounts Per Store-
Consolidated-
Loans Outstanding $ 236 $ 230 $ 239
Inventory 229 238 234
Domestic-
Loans Outstanding $ 161 $ 159 $ 167
Inventory 259 269 264
CONTACT: Cash America International, Inc. 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. or Daniel R. Feehan, 817/335-1100 |
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