Cash America Reports Fourth Quarter Earnings and Declares Dividend.FORT WORTH, Texas--(BUSINESS WIRE)--Jan. 27, 1999--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 consolidated net earnings for the final quarter of fiscal 1998 were $4,359,000 (17 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) compared to $6,336,000 (25 cents per diluted share) for the fourth quarter of 1997. Earnings were reduced by an after tax loss of $2.4 million (9 cents per diluted share) related to the Company'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 Corporation in the fourth quarter of 1998. In a separate release today, the Company announced terms of the proposed investment transaction with Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Bank, N.A., which would mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. a significant portion of future losses
associated with the continued growth of Mr. Payroll. Consolidated total
revenue for the three months ended December December: see month. 31, 1998, was up 15% to
$99.9 million compared to $87.1 million in the same period in 1997,
mostly on the strength of a 17% increase in service charges associated
with Cash America's loan portfolio.
Commenting on the fourth quarter and the Wells Fargo transaction, Chairman and Chief Executive officer, Jack R. Daugherty Daugherty can refer to: People
Adjective not stopped or disrupted by anything Adj. 1. unimpeded - not slowed or prevented; "a time of unimpeded growth"; "an unimpeded sweep of meadows and hills afforded a peaceful setting" expansion potential over the next twelve months. While we are pleased with the performance of our core lending operations in fiscal 1998, the fourth quarter results were diminished di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. by inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem weather, which struck many of our primary markets during the week of 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). . However, we begin the new fiscal year with a strong mix of earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin as we enter the seasonally strong first quarter of 1999." For the fiscal year ended December 31, 1998, Cash America reported that consolidated net earnings were $12,624,000 (48 cents per diluted share) compared to $16,579,000 (66 cents per diluted share) for the fiscal year of 1997. Included in the consolidated earnings is an after tax loss of $6.9 million (26 cents per diluted share) related to the operations of Mr. Payroll Corporation. Lending activities produced net earnings of $20.0 million compared to $17.8 million for the twelve months ended December 31, 1998 and 1997, respectively. Loan balances finished the year 15% higher in 1998, reaching $128.6 million compared to the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1997 level of $112.2 million extending Cash America's leadership as the largest provider of secured non-recourse loans to consumers. Consolidated total revenue increased 13%, to $342.9 million, for the year ended December 31, 1998, compared to $303.4 million for the same period in 1997. Commenting on the fiscal 1998, Mr. Daugherty added, "Cash America has invested heavily in the future during 1998. We have expanded the number of lending outlets by 61 net new locations and shown a commitment of resources to our wholly owned subsidiary, Mr. Payroll Corporation. We look to the future with optimism as these investments provide the opportunity for increased value for our shareholders in the years to come." 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 February 2, 1999, and will be paid at the close of business on February 16, 1999. 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. Cash America is the largest provider of secured non-recourse loans to individuals commonly referred to as pawn loans, through 464 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, 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 Year Ended
December 31, December 31,
------------ ------------
1998 1997 1998 1997
---- ---- ---- ----
Consolidated Operations:
Total Revenue $ 99,918 $ 87,117 $ 342,876 $ 303,366
Net Revenue 56,412 49,206 200,647 178,082
Total Operating Expenses 45,988 36,099 166,870 139,868
Income from Operations 10,424 13,107 33,777 38,214
Interest Expense 3,615 3,089 13,557 11,644
Net Income $ 4,359 $ 6,336 $ 12,624 $ 16,579
--------- -------- --------- -------
Net Income Per Share - Basic $ 0.17 $ 0.26 $ 0.51 $ 0.68
Net Income Per Share - Diluted $ 0.17 $ 0.25 $ 0.48 $ 0.66
Weighted Average Shares
- Basic 25,058 24,408 24,829 24,281
Weighted Average Shares
- Diluted 26,346 25,568 26,226 25,158
--------- -------- --------- -------
Segment Results:
Lending Operations--
Total Revenue $ 97,373 $ 85,941 $ 334,275 $ 300,116
Net Revenue 54,563 48,521 194,773 175,500
Total Operating Expenses 40,738 34,700 151,412 135,604
Income from Operations 13,825 13,821 43,361 39,896
Check Cashing Operations--
Total Revenue 1,477 1,176 5,255 3,250
Net Revenue 983 685 3,360 2,582
Total Operating Expenses 4,136 1,399 12,371 4,264
Loss from Operations (3,153) (714) (9,011) (1,682)
Rental Operations--
Total Revenue 1,068 -- 3,346 --
Net Revenue 866 -- 2,514 --
Total Operating Expenses 1,114 -- 3,087 --
Loss from Operations (248) -- (573) --
-------- -------- -------- ------
Financial and Operational Data as of: 12/31/98 12/31/97
Lending Operations-- -------- ---------
Loans Outstanding $ 128,637 $ 112,240
Merchandise Held for Disposition 65,417 53,468
Number of Locations (not in thousands) 464 401
Amounts Per Location-
Consolidated:
Loans Outstanding $ 277 $ 280
Merchandise Held for Disposition 141 133
Domestic:
Loans Outstanding $ 199 $ 199
Merchandise Held for Disposition 155 150
Check Cashing Operations--
Number of Units at End of Period (not
in thousands)-
Franchised and Owned Check Cashing Units 147 145
Automated Check Cashing Machines 91 21
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