<PAGE> 1
================================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
----------------
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________________ to _______________
Commission File Number 1-9733
CASH AMERICA INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
TEXAS 75-2018239
(State or other jurisdiction (I.R.S. Employer
of incorporation or Identification No.)
organization)
1600 WEST 7TH STREET
FORT WORTH, TEXAS 76102
(Address of principal executive offices) (Zip Code)
(817) 335-1100
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
------- -------
APPLICABLE ONLY TO CORPORATE ISSUERS:
28,584,798 common shares, $.10 par value, were outstanding as of April 30, 1995
================================================================================
<PAGE> 2
CASH AMERICA INTERNATIONAL, INC.
INDEX TO 10-Q
PART I. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
Page
<S> <C>
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets - March 31, 1995
and 1994 and December 31, 1994........................... 1
Consolidated Statements of Income - Three Months
Ended March 31, 1995 and 1994............................ 2
Consolidated Statements of Stockholders' Equity -
Three Months Ended March 31, 1995 and 1994............... 3
Consolidated Statements of Cash Flows -
Three Months Ended March 31, 1995 and 1994............... 4
Notes to Consolidated Financial Statements............... 5
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations... 8
PART II. OTHER INFORMATION................................... 15
SIGNATURE..................................................... 16
</TABLE>
<PAGE> 3
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands) (UNAUDITED)
<TABLE>
<CAPTION>
===================================================================================================
March 31 Dec 31
1995 1994 1994
---------- --------- ----------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 4,868 $ 1,161 $ 4,827
Service charges receivable 19,333 12,817 18,626
Loans 79,344 50,753 78,095
Inventory, net 81,605 61,700 80,894
Prepaid expenses and other 7,015 4,676 6,794
---------- --------- ----------
Total current assets 192,165 131,107 189,236
Property and equipment, net 66,954 50,698 63,241
Intangible assets, net 65,834 62,032 64,915
Other assets 6,913 3,124 6,865
---------- --------- ----------
Total assets $331,866 $246,961 $324,257
========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 8,770 $ 7,689 $ 13,790
Customer layaway deposits 4,260 3,283 3,576
Income taxes currently payable 5,048 3,593 3,661
---------- --------- ----------
Total current liabilities 18,078 14,565 21,027
Long-term debt:
Bank lines of credit 95,954 33,300 89,796
Notes payable - TIAA 30,000 30,000 30,000
---------- --------- ----------
125,954 63,300 119,796
Stockholders' equity:
Common stock, $.10 par value per
share, 80,000,000 shares authorized 3,024 3,024 3,024
Paid in surplus 121,525 121,008 121,481
Retained earnings 73,077 58,580 70,081
Foreign currency translation adjustment (2,403) (5,198) (3,692)
---------- --------- ----------
195,223 177,414 190,894
Less - shares held in treasury, at cost (7,389) (8,318) (7,460)
---------- --------- ----------
Total stockholders' equity 187,834 169,096 183,434
---------- --------- ----------
Total liabilities and stockholders' equity $331,866 $246,961 $324,257
========== ========== ==========
===================================================================================================
</TABLE>
See notes to consolidated financial statements.
Page 1
<PAGE> 4
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share) (UNAUDITED)
<TABLE>
<CAPTION>
==========================================================================================
Three Months Ended
March 31
-----------------------
1995 1994
<S> <C> <C>
PAWN SERVICE CHARGES $30,103 $21,107
GROSS PROFIT FROM SALES
Sales 41,100 34,207
Cost of sales 34,134 27,338
--------- ---------
Gross profit 6,966 6,869
--------- ---------
NET REVENUES 37,069 27,976
--------- ---------
OPERATING EXPENSES
Operations 21,459 16,243
Administration 4,239 3,123
Amortization 911 847
Depreciation 2,727 1,889
--------- ---------
Total operating expenses 29,336 22,102
--------- ---------
Income from operations 7,733 5,874
Interest expense, net 2,458 961
Other expense 56 169
--------- ---------
Income before income taxes 5,219 4,744
Provision for income taxes 1,866 1,812
--------- ---------
NET INCOME $ 3,353 $ 2,932
========= =========
==========================================================================================
Net income per share:
Primary $0.12 $0.10
Fully diluted $0.12 $0.10
Weighted average shares (in thousands):
Primary 29,033 28,984
Fully diluted 29,033 28,984
==========================================================================================
</TABLE>
See notes to consolidated financial statements.
Page 2
<PAGE> 5
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Three Months Ended March 31, 1995 and 1994
(Dollars in thousands, except shares) (UNAUDITED)
<TABLE>
<CAPTION>
============================================================================================================================
Foreign
Common Stock Treasury Stock Currency
-------------------- Paid In Retained ----------------------- Translation
Shares Amount Surplus Earnings Shares Amount Adjustment Total
------------ ------- --------- --------- -------------- -------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at
December 31, 1994 30,235,164 $3,024 $121,481 $70,081 1,666,099 $(7,460) $(3,692) $183,434
Net income 3,353 3,353
Dividends declared (357) (357)
Treasury shares reissued 31 (15,733) 71 102
Tax benefit from exercise
of stock options 13 13
Foreign currency
translation adjustment 1,289 1,289
------------ ------- --------- --------- ------------ --------- ---------- ----------
Balance at
March 31, 1995 30,235,164 $3,024 $121,525 $73,077 1,650,366 $(7,389) $(2,403) $187,834
============ ======= ========= ========= ============ ========= ========== ==========
============================================================================================================================
Balance at
December 31, 1993 30,235,164 $3,024 $120,955 $56,004 1,832,137 $(7,953) $(5,308) $166,722
Net income 2,932 2,932
Dividends declared (356) (356)
Treasury shares acquired 68,500 (552) (552)
Treasury shares reissued (19) (43,037) 187 168
Tax benefit from exercise
of stock options 72 72
Foreign currency
translation adjustment 110 110
------------ ------- --------- --------- ------------ --------- ---------- ----------
Balance at
March 31, 1994 30,235,164 $3,024 $121,008 $58,580 1,857,600 $(8,318) $(5,198) $169,096
============ ======= ========= ========= ============ ========= ========== ==========
============================================================================================================================
</TABLE>
See notes to consolidated financial statements.
Page 3
<PAGE> 6
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands) (UNAUDITED)
(UNAUDITED)
<TABLE>
<CAPTION>
==========================================================================================
Three Months Ended
March 31
----------------------
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Reconciliation of Net Income to Net Cash
Provided By Operating Activities:
Net income $3,353 $2,932
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization 911 847
Depreciation 2,727 1,889
(Increase) decrease in service charges receivable (489) 284
(Increase) decrease in inventory (501) 2,343
(Increase) decrease in prepaid expenses and other (785) 145
Decrease in accounts payable
and accrued expenses (5,121) (1,400)
Increase in layaway deposits, net 682 482
Increase in income taxes payable 1,148 1,184
Increase (decrease) in deferred taxes 185 (406)
--------- ---------
Net cash provided by operating activities 2,110 8,300
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Loans forfeited and transferred to inventory 20,631 14,164
Loans repaid or renewed 57,456 43,406
Loans made, including loans renewed (78,151) (58,126)
--------- ---------
Net increase in loans (64) (556)
Acquisitions (1,412) (4,855)
Purchases of property and equipment (6,287) (3,765)
Proceeds from sales of property and equipment - 1,230
--------- ---------
Net cash used by investing activities (7,763) (7,946)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings (payments) under bank lines of credit 5,600 (700)
Proceeds from issuance of stock, net 102 168
Treasury stock acquired - (552)
Dividends paid (357) (356)
--------- ---------
Net cash provided (used) by financing activities 5,345 (1,440)
--------- ---------
Effect of exchange rate changes on cash 349 2
--------- ---------
Increase (decrease) in cash and cash equivalents 41 (1,084)
Cash and cash equivalents at beginning of period 4,827 2,245
--------- ---------
Cash and cash equivalents at end of period $4,868 $1,161
========= =========
==========================================================================================
</TABLE>
See notes to consolidated financial statements.
Page 4
<PAGE> 7
CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 - BASIS OF PRESENTATION
The accompanying consolidated financial statements include the accounts
of Cash America International, Inc. and its wholly owned subsidiaries (the
"Company"). All significant intercompany accounts and transactions have been
eliminated in consolidation. At March 31, 1995, the Company had a 49%
ownership interest in Mr. Payroll Corporation ("Mr. Payroll") (see Note 4).
The investment is being accounted for using the equity method of accounting,
whereby the Company records its 49% share of earnings or losses of Mr. Payroll
in its consolidated financial statements.
The financial statements as of March 31, 1995 and 1994 and for the
three months then ended are unaudited but, in management's opinion, include all
adjustments, consisting only of normal recurring adjustments, necessary for a
fair presentation of the results for such interim periods. Operating results
for the three months are not necessarily indicative of the results that may be
expected for the full fiscal year.
Certain amounts in the consolidated statements of income for the three
months ended March 31, 1994, have been reclassified to conform with the
presentation form adopted in 1995. These reclassifications have no effect on
the net income previously reported.
These financial statements and related notes should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Company's 1994 Annual Report to Stockholders.
NOTE 2 - ACQUISITION
On September 22, 1994, the Company acquired all of the outstanding
stock of Svensk Pantbelaning, a company operating a chain of ten pawnshops in
Sweden. The Company paid $5.4 million and assumed liabilities of $17 million,
consisting primarily of bank debt. The Company received $18 million of
tangible assets, consisting primarily of $16 million in pawn loans outstanding.
Page 5
<PAGE> 8
NOTE 3 - LONG-TERM DEBT
On September 21, 1994, in conjunction with the acquisition of Svensk
Pantbelaning, the Company's wholly owned subsidiary, CAII Pantbelaning AB,
established a 193,750,000 Swedish kronor ("SEK") term loan. The term loan
matures three years from the date of inception and there is no scheduled
amortization of the principal balance prior to maturity. Interest is payable
at Stockholm InterBank Offered Rate (STIBOR) plus 1%, currently at 9.15%. As
of March 31, 1995, SEK 193,750,000 (approximately $26,654,000) was outstanding
under the term loan.
On May 12, 1993, the Company issued $30,000,000 of "8.33% Senior
Unsecured Notes", due May 1, 2003. Interest is payable on May 1 and November 1
of each year. Mandatory annual payments of $4,285,714 commence May 1997. On
May 28, 1993, the Company entered into two swap agreements for $10,000,000
each, under which the Company receives a fixed rate of 4.87% and pays the bank
a variable rate (currently 6.5625%) repriced every six months to the prevailing
6 month BBA average LIBOR rate. The effective interest rate on the Senior
Unsecured Notes for the period December 2, 1994, to June 2, 1995, is 9.52%
after taking into account the two swap transactions.
On June 7, 1994, the Company extended the maturity date and made
certain modifications to its $125,000,000 unsecured bank line of credit
originally entered into on June 29, 1993. The agreement was modified to extend
the maturity of $100,000,000 of the line of credit to April 30, 1997, with the
remaining $25,000,000 portion scheduled to mature on June 6, 1995. As of March
31, 1995, no borrowings had been made under the $25,000,000 portion of the bank
line of credit. The Company has the option each year to request a one-year
extension, thus moving the maturity date of the entire facility forward one
year. Interest is paid quarterly at rates determined at the Company's option
of either the bank's prime lending rate or LIBOR plus 1%. In addition the
agreement provides for annual commitment fees of 3/8% per annum on the unused
portion of $100,000,000 of the commitment and .15% per annum on the unused
portion of $25,000,000 of the commitment.
The Company's wholly owned subsidiary, Harvey & Thompson, Ltd., has a
committed 5 million pound sterling unsecured line of credit, which matures on
February 8, 1996, from a U.K. based commercial bank. Interest is payable
quarterly at an interest rate equal to the Bank's sterling cost of funds plus
60 basis points for borrowings less than 13 days and 55 basis points for
borrowings of 14 days or more. Harvey & Thompson, Ltd. pays a fee on the
unused portion of the line of credit of .15% per annum. The facility is
governed by a credit agreement which provides minimum levels of
Page 6
<PAGE> 9
assets and net worth which must be maintained by Harvey & Thompson. To date,
Harvey & Thompson has not borrowed under the line of credit.
NOTE 4 - INVESTMENT IN AFFILIATE
On July 13, 1994, the Company paid $2 million to acquire a 49% interest
in Mr. Payroll, a private, Texas-based company which sells franchised
check-cashing kiosks primarily in Southwestern states. The Company intends to
operate franchised check-cashing kiosks in some of its pawnshop locations.
In conjunction with its investment, the Company has entered into a
revolving credit agreement with Mr. Payroll which provides for maximum
borrowings of $1.5 million from the Company. Interest is payable quarterly at
the LIBOR rate plus four percent. The entire unpaid principal balance is due
and payable in full on February 28, 1997. Mr. Payroll has granted the Company
a security interest in and lien on all of its assets. As of March 31, 1995,
Mr. Payroll had borrowings outstanding of $950,000.
NOTE 5 - LITIGATION
The Company is a defendant in certain lawsuits encountered in the
ordinary course of its business. In the opinion of management, the resolution
of these matters will not have a material adverse effect on the Company's
financial position or results of operations.
Page 7
<PAGE> 10
SUMMARY OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FIRST QUARTER ENDED MARCH 31, 1995 vs
FIRST QUARTER ENDED MARCH 31, 1994
- --------------------------------------------------------------------------------
Summary Consolidated Financial Data
- -----------------------------------------
The following table sets forth selected consolidated financial data with
respect to the Company for the three months ended March 31, 1995 and 1994.
<TABLE>
<CAPTION>
($ in thousands)
1995 1994 Change
--------- --------- --------
<S> <C> <C> <C>
Pawn service charges $30,103 $21,107 43%
Gross profit from sales
Sales 41,100 34,207 20%
Cost of sales 34,134 27,338 25%
--------- --------- --------
Gross profit 6,966 6,869 1%
--------- --------- --------
Net Revenues $37,069 $27,976 33%
--------- --------- --------
Other Data:
Gross profit as a percentage of sales 17.0% 20.1% (15)%
Average annualized inventory turnover 1.7X 1.8X (6)%
Annualized yield on loans 154% 174% (11)%
Average inventory balance per
average location in operation $233 $219 6%
Average loan balance per
average location in operation $228 $175 30%
Average pawn loan at end of
period (whole dollars) $90 $74 22%
Expenses as a percentage of net revenues:
Operations 57.9% 58.1% 0%
Administration 11.4% 11.2% 2%
Depreciation and amortization 9.8% 9.8% 0%
Interest, net 6.6% 3.4% 94%
Locations in Operation:
Beginning of period 340 280
Acquired 3 8
Established 16 6
Combined (2) (3)
--------- ---------
End of period 357 291 23%
========= ========= ========
Average number of locations in
operations during the period (a) 349 282 24%
========= ========= ========
</TABLE>
(a) Averages based on accumulation of month-end balances and dividing aggregate
total by total months in the period.
Page 8
<PAGE> 11
1ST QUARTER 1995 VS 1994
IMPACT OF EXPANDING OPERATIONS
The Company expanded its operations over the 15-month period from December
31, 1993 through March 31, 1995 with the addition of 82 pawnshops. Fifty-eight
stores were started and 24 stores were acquired during the period, and five
stores were combined into existing locations for a net addition of 77 stores
during the 15-month period. At March 31, 1995, the Company operated 357
pawnshops--314 in 14 states in the United States, 33 jewelry-only and loan-only
pawnshops in the United Kingdom operating under the name Harvey & Thompson,
Ltd., and 10 loan-only pawnshops which concentrate primarily in jewelry in
Sweden and operate under the name Svensk Pantbelaning. The group of
corporations which comprise the Swedish chain was acquired in September 1994
in a cash transaction.
Net revenues (total revenues less cost of sales) increased 33% in the first
quarter of 1995 over the same period of 1994, and is attributable to a 9% gain
on comparable stores (those in operation more than one year) and a 24% increase
in average stores open during the two periods.
PAWN SERVICE CHARGES
Pawn service charges increased 43% in the first quarter of 1995 over the
comparable quarter in 1994 due to gains in both comparable stores and number of
average locations in operation. Pawn service charges on comparable stores
increased by 20% due to an increasing loan to value ratio in domestic stores
after the first quarter of 1994 and a 5% increase in the average yield on
domestic loans to 218% in the first quarter of 1995 compared to 207% for the
same period in 1994. In the first quarter of 1994, the Company operated its
domestic pawnshops under a lower loan to value ratio, which determines the
amount to lend on a particular item. When the Company increased its loan to
value ratio in domestic stores later in 1994, its loan balance and pawn service
charges increased, as did the amount of unredeemed merchandise available for
sale to customers. The acquisition of Svensk Pantbelaning accounted for
approximately 50% of the increase in pawn service charges attributable to the
increase in the number of locations.
The Company's average dollar loan increased to $90 from $74 and the average
yield on loans outstanding decreased to 154% from 174% for the periods March
31, 1995 and 1994, respectively. Both of these factors are due to the
acquisition of Svensk Pantbelaning, which has a higher amount per loan, of
approximately $232, and a lower yield, of approximately 50%, than did the
Company's consolidated operations in
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<PAGE> 12
the United States and the United Kingdom. The weighting of the Swedish loans
in the Company's consolidated portfolio caused these changes in yields and
average loan amount. The U.K. yield and the U.S. and U.K. average loan amounts
were unchanged compared to the prior period and the U.S. yield increased as
noted above.
SALES AND GROSS PROFIT
Sales for the three months ended March 31, 1995 increased 20% compared to
the first quarter of 1994, caused by a 24% increase in average locations and a
4% increase in sales from comparable stores from the prior period. The
Company's increase in the loan to value ratio, referred to above, after the
first quarter of 1994 contributed to the increase in comparable store sales,
and to a decline in the gross profit margin on sales to 17% in the three months
ended March 31, 1995 compared to 20% in the prior period. In addition to a
higher cost in merchandise from unredeemed loans than in the prior period, the
Company utilized price discounting to sell selected merchandise and also had
increased sales of jewelry at wholesale. Inventory turns declined to 1.7 times
from 1.8 times in the same period of the prior year as a result of a 6%
increase in average inventory per store in the three months ending March 31,
1995 compared to the prior period. Contributing to the decline in inventory
turns were higher concentrations of startup stores, which have lower turns
during the first year of operations, and delayed Federal income tax refunds
received by the Company's customers. The Company believes that this delay,
which was caused by changes in the processing methods utilized by the Internal
Revenue Service, decreased sales because many customers typically use a portion
of their refund to repay loans and purchase items of personal property.
EXPENSES
Operating expenses relative to net revenues remained constant over the two
periods at 58%. The overall increase in operating expenses of 32% is driven by
a 6% increase in same store operating expenses and the 24% increase in average
stores in operation for the period.
Administrative expenses increased 36% over the prior period, but remained
virtually unchanged as a percentage of net revenues at 11% for each of the two
periods. The 36% increase in administrative expense is due to the acquisition
of Svensk Pantbelaning as well as increased expenses in the Company's existing
operations, which were needed to continue to build infrastructure and systems
to support an expanding store base.
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Depreciation and amortization as a percentage of net revenues was constant
at 9.8% over the two periods, as amortization increased 8%, primarily due to
the Swedish acquisition, and depreciation increased by 44%. This increase in
depreciation was due to new store additions and computer point-of-sale hardware
and software, the installation of which was completed in most of the Company's
stores in late 1994.
Net interest expense as a percentage of net revenues increased to 6.6% in
the quarter compared to 3.4% in 1994, caused by increased bank debt and higher
rates on debt outstanding in the U.S., and by interest on debt used to finance
the acquisition of Svensk Pantbelaning. The U.S. bank debt virtually doubled
between the two periods, and weighted average interest rates on the bank debt
and other domestic debt increased to 7.9% in the first quarter of 1995 from
5.8% in the year-ago period. The borrowings of Swedish kronor under a term
loan bear interest at rates in effect for Swedish currency which are currently
higher than U.S. short term rates.
OTHER EXPENSE
During the first quarter of 1995 and 1994, the Company realized losses on
certain non-operating assets, before taxes, of approximately $90,000 and
$200,000, respectively. These losses were partially offset by rent income and
other miscellaneous items.
INCOME TAXES
The Company's effective tax rate decreased to 36% in the first quarter of
1995 compared to 38% in the same period in 1994. The domestic tax rate was
unchanged at 39% over the two periods, while the rate in the Company's foreign
operations decreased to 30% from 36% in the prior year as a result of lower tax
rates for Svensk Pantbelaning and the utilization of miscellaneous tax credits
in the United Kingdom in the first quarter of 1995.
LIQUIDITY AND CAPITAL RESOURCES
During the first quarter of 1995, the Company's capital expenditures
totaled $7.7 million. The Company spent $1.4 million on the acquisition of
three pawnshops and $6.3 million on leasehold improvements and equipment for
start-up locations, additions to its computer systems, and miscellaneous fixed
asset purchases.
The funding of these items has come from the Company's three-year, $125
million revolving bank line of credit and operating earnings. The Company's
$30 million of Senior Unsecured Notes, due May 1,
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2003, to Teachers Insurance and Annuity Association of America bear interest at
8.33% and are payable in seven equal annual principal installments beginning
May 1, 1997. The Company has entered into an interest rate swap on $20 million
of these notes, which resulted in an effective floating interest rate,
currently at 9.52%, on the debt.
Management believes that borrowings available under its $125 million
revolving bank line of credit facility and a 5 million pound sterling line of
credit available to Harvey & Thompson, Ltd. through a U.K. commercial bank,
cash generated from operations and current working capital of $174 million will
be sufficient to meet the Company's anticipated future capital requirements.
Page 12
<PAGE> 15
FOREIGN OPERATIONS
Presented below is selected consolidated financial data for Harvey &
Thompson and Svensk Pantbelaning as of March 31, 1995, and 1994 and for the
quarterly periods then ended. Acquired on September 22, 1994, Svensk
Pantbelaning operates a ten store chain of loan-only pawnshops in Sweden in a
manner similar to the operations of Harvey & Thompson in the U.K.
Balance sheet data for Harvey & Thompson has been converted from pounds
sterling into U.S. dollars using the end of the period currency exchange rate
of 1.6215 at March 31, 1995, and 1.4840 at March 31, 1994. Income statement
data for Harvey & Thompson has been converted at an average exchange rate of
1.5833 for the three month period ending March 31, 1995, compared to 1.4874 for
the same period in 1994.
Balance sheet data for Svensk Pantbelaning has been converted from
Swedish kronor into U.S. dollars using the end of the period currency exchange
rate of 7.3367. Income statement data for Svensk Pantbelaning has been
converted at an average exchange rate of 7.3737 for the three month period
ending March 31, 1995.
<TABLE>
<CAPTION>
Three Months Ended March 31,
1995 1994 Change
-------- -------- ------
($ in thousands)
<S> <C> <C> <C>
Income Statement Data:
Net revenues $4,777 $2,311 107%
Expenses 2,320 1,102 111%
Income from operations 2,457 1,209 103%
Other Data:
Total average locations 42 29 45%
Gross profit margin 52.0% 40.4% 29%
Average annualized inventory turns 3.9X 3.2X 22%
Ending loan balance $33,159 $12,676 162%
Average loan balance
per average location in operation $755 $423 78%
Expenses as a percentage of net revenues:
Operations 31.4% 32.1% (2)%
Administration 12.6% 10.3% 22%
</TABLE>
Page 13
<PAGE> 16
DOMESTIC OPERATIONS
Presented below is selected financial data for the Company's domestic
operations as of March 31, 1995 and 1994 and for the three months then ended:
<TABLE>
<CAPTION>
($ in thousands)
1995 1994 Change
--------- --------- --------
<S> <C> <C> <C>
Pawn service charges $25,584 $18,927 35%
Gross profit from sales
Sales 40,604 33,882 20%
Cost of sales 33,896 27,144 25%
--------- --------- --------
Gross profit 6,708 6,738 0%
--------- --------- --------
Net Revenues 32,292 25,665 26%
========= ========= ========
Operating expenses:
Operations 19,961 15,501 29%
Administration 3,635 2,885 26%
Depreciation and amortization 3,420 2,614 31%
--------- --------- --------
Total operating expenses 27,016 21,000 29%
--------- --------- --------
Income from operations $5,276 $4,665 13%
========= ========= ========
Gross profit as a percentage of sales 16.5% 19.9% (17)%
Average annualized inventory turnover 1.7X 1.8X (6)%
Average inventory balance per
average location in operation $264 $244 8%
Average loan balance per
average location in operation $155 $146 6%
Average pawn loan at end of
period (whole dollars) $69 $69 0%
Expenses as a percentage of net revenues:
Operations 61.8% 60.4% 2%
Administration 11.3% 11.2% 1%
Depreciation and amortization 10.6% 10.2% 4%
Interest, net 6.1% 3.7% 65%
Domestic Locations in Operation:
Beginning of period 300 251
Acquired 3 8
Established 13 6
Combined (2) (3)
--------- ---------
End of period 314 262 20%
Average number of locations in
========= ========= ========
operation during the period (a) 307 253 21%
========= ========= ========
</TABLE>
(a) Averages based on accumulation of month-end balances and dividing aggregate
total by total months in the period.
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<PAGE> 17
PART II
Item 1. LEGAL PROCEEDINGS
See Note 5 of Notes to Consolidated Financial Statements
Item 2. CHANGES IN SECURITIES
Not Applicable
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable
Item 5. OTHER INFORMATION
Not Applicable
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K - None
Page 15
<PAGE> 18
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CASH AMERICA INTERNATIONAL, INC.
--------------------------------
(Registrant)
BY: /s/ DALE R. WESTERFELD
----------------------------------
Dale R. Westerfeld
Vice President and
Chief Financial Officer
Date: May 12, 1995
Page 16
<PAGE> 19
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Description
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 4,868
<SECURITIES> 0
<RECEIVABLES> 98,677
<ALLOWANCES> 0
<INVENTORY> 81,605
<CURRENT-ASSETS> 192,165
<PP&E> 96,587
<DEPRECIATION> 29,633
<TOTAL-ASSETS> 331,866
<CURRENT-LIABILITIES> 18,078
<BONDS> 125,954
<COMMON> 3,024
0
0
<OTHER-SE> 184,810
<TOTAL-LIABILITY-AND-EQUITY> 331,866
<SALES> 41,100
<TOTAL-REVENUES> 71,203
<CGS> 34,134
<TOTAL-COSTS> 55,593
<OTHER-EXPENSES> 7,877
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,458
<INCOME-PRETAX> 5,219
<INCOME-TAX> 1,866
<INCOME-CONTINUING> 3,353
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,353
<EPS-PRIMARY> .12
<EPS-DILUTED> .12
</TABLE>
