Fort Worth-based Cash America said Monday it expects second-quarter earnings to be lower than previously estimated on lower U.S. demand for loans and higher personnel and interest costs. The pawn shop operator's shares (ticker: CSH) were down about 4 percent in early trading. Cash America said it expects to earn 81 cents a share,"about 11 percent below the low end of its estimated range of earnings" that it made in April. Higher interest costs related to a $300 million debt issue in May were not previously included in the earnings outlook, the company said. Cash America said it will report its full earnings and make a revised 2013 outlook on July 25.
-- Jim Fuquay
Fort Worth, Texas (July 15, 2013) - - Cash America International, Inc. (NYSE: CSH) announced today
that it expects earnings per share for its second quarter ending June 30, 2013, to be approximately
81 cents per share. The Company’s results will fall about 11% below the low end of its estimated
range of earnings per share for the second quarter published April 25, 2013. Management believes that pawn customers continue to act with caution in their borrowing and spending activities consistent with the de-leveraging underway for the broader base of U.S. consumers. This trend, which was first observed by the Company in the second quarter of 2012, will likely continue through the balance of 2013.
On July 25, 2013, the Company will release its comprehensive financial results and will provide
additional details about the second quarter ended June 30, 2013. At that time, management will
provide its revised outlook for the remainder of the year based on its view of current trends in
its businesses and the addition of its recently announced pending acquisition of a chain of 41
pawn lending locations expected to close during the third quarter of 2013.
About the Company
As of March 31, 2013, Cash America International, Inc. (the “Company”) operated 966 total locations offering specialty financial services to consumers, which included the following:
828 lending locations in 22 states in the United States primarily under the names “Cash America Pawn,” “SuperPawn,” “Cash America Payday Advance,” and “Cashland;”
47 pawn lending locations in central and southern Mexico under the name “Cash America casa de empeño;” and
91 check cashing centers (all of which are unconsolidated franchised check