Cash America 2015 Annual Report Download - page 44

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Non-GAAP Disclosure
In addition to the financial information prepared in conformity with generally accepted accounting
principles in the United States of America (“GAAP”), the Company has provided certain historical non-GAAP
measures in the tables below, including (i) adjusted net income from continuing operations, adjusted diluted net
income per share from continuing operations, adjusted earnings from continuing operations and adjusted earnings
per share from continuing operations (collectively, the “Adjusted Earnings Measures”), and (ii) adjusted EBITDA,
which the Company defines as earnings excluding depreciation, amortization, interest, foreign currency transaction
gains or losses, loss on early extinguishment of debt, gain on disposition of equity securities, equity in loss of
unconsolidated subsidiary and provision or benefit for income taxes.
Management believes that the presentation of these measures provides users of the financial statements with
greater transparency and facilitates a more meaningful comparison of operating results across a broad spectrum of
companies with varying capital structures, compensation strategies, derivative instruments and depreciation and
amortization methods. In addition, management believes this information provides a more in-depth and complete
view of the Company’s financial performance, competitive position and prospects for the future and may highlight
trends in the Company’s business that may not otherwise be apparent when relying on financial measures calculated
in accordance with GAAP. Management also believes that non-GAAP measures are frequently used by investors to
analyze operating performance, evaluate the Company’s ability to incur and service debt and its capacity for making
capital investments, and to help assess the Company’s estimated enterprise value.
Management believes the non-GAAP measures included herein, including the adjustments shown, provide
more meaningful information regarding the ongoing operating performance, provide more useful period-to-period
comparisons of operating results, both internally and in relation to operating results of competitors, enhance
analysts’ and investors’ understanding of the core operating results of the business and provide a more accurate
indication of the Company’s ability to generate cash flows from operations. Therefore, management believes it
important to clearly identify these measures for investors.
In calculating adjusted earnings from continuing operations and adjusted earnings per share from
continuing operations, management excludes intangible asset amortization, non-cash equity-based compensation,
convertible debt non-cash interest and issuance cost amortization, and foreign currency transaction gains or losses.
In addition, management has determined that the adjustments to the Adjusted Earnings Measures and adjusted
EBITDA, as applicable, included in the tables below are useful to investors in order to allow them to compare the
Company’s financial results for the years ended December 31, 2015, 2014 and 2013 without the effect of the below
items, which management believes are less frequent in nature:
• the loss on early extinguishment of debt;
• the gain on disposition of equity securities;
• severance and other employee-related costs for administrative and operations staff reductions in
connection with the Company’s reorganization to better align the corporate and operating cost
structure with its remaining storefront operations after the Enova Spin-off (the “Reorganization”);
• the loss on significant divestitures of non-strategic operations;
• charges related to a significant litigation settlement in 2013 (the “2013 Litigation Settlement”);
• the charges related to the closure of 36 locations in Texas in 2013 that offered consumer loans as
their primary source of revenue (the “Texas Consumer Loan Store Closures”);
• the adjustments for a penalty paid to the Consumer Financial Protection Bureau (the “CFPB”) in
connection with the issuance of a consent order by the CFPB in November 2013 (the “Regulatory
Penalty”);
• an adjustment made in 2013 (the “Ohio Adjustment for the Ohio Reimbursement Program”) to
decrease the Company’s remaining liability following an assessment of the claims made under a
voluntary program initiated in 2012 to reimburse Ohio customers in connection with certain legal
collections proceedings initiated by the Company in Ohio; and
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