Cash America 2007 Annual Report Download - page 106

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
86
Pawn Cash Check
Year Ended December 31, 2005: Lending Advance(2) Cashing Consolidated
Revenue
Finance and service charges............................ $ 139,772 $ — $ — $ 139,772
Proceeds from disposition of merchandise...... 300,192 — — 300,192
Cash advance fees ........................................... 41,405 100,663 — 142,068
Check cashing fees, royalties and other .......... 2,727 7,185 3,819 13,731
Total revenue...................................................... 484,096 107,848 3,819 595,763
Cost of revenue – disposed merchandise............ 183,799 — — 183,799
Net revenue......................................................... 300,297 107,848 3,819 411,964
Expenses
Operations ....................................................... 168,911 51,706 1,379 221,996
Cash advance loss provision ........................... 15,663 27,171 — 42,834
Administration ................................................ 25,529 16,325 1,151 43,005
Depreciation and amortization ........................ 15,786 7,299 332 23,417
Total expenses .................................................... 225,889 102,501 2,862 331,252
Income from operations...................................... $ 74,408 $ 5,347 $ 957 $ 80,712
Expenditures for property and equipment .......... $ 19,961 $ 7,086 $ 208 $ 27,255
As of December 31, 2005:
Total assets ......................................................... $ 475,526 $ 115,777 $ 7,344 $ 598,647
Goodwill............................................................. $ 125,059 $ 44,618 $ 5,310 $ 174,987
______________________
(1) Included in “Expenditures for property and equipment” for the Pawn Lending segment for the years
ended December 31, 2007 and 2006 are substantially all of the capital expenditures for the development
of the new proprietary point of sale system software and other general corporate investment
expenditures.
(2) The Cash Advance segment is comprised of two distribution channels for the same product: a multi-unit,
“storefront” platform of 304 units and an online, internet based lending platform. The amounts for the
year ended December 31, 2006 include activity from September 15, 2006 through December 31, 2006
for the internet based lending platform, which was purchased on September 15, 2006. The following
table summarizes the results from each channel’s contributions to the Cash Advance segment for the
years ended December 31, 2007 and 2006:
Internet Total Cash
Year Ended December 31, 2007: Storefront Lending Advance
Revenue
Cash advance fees ........................................... $ 128,454 $ 184,724 $ 313,178
Check cashing fees, royalties and other........... 9,525 5 9,530
Total revenue ...................................................... 137,979 184,729 322,708
Expenses
Operations ....................................................... 68,249 41,011 109,260
Cash advance loss provision............................ 37,383 102,870 140,253
Administration................................................. 10,797 13,930 24,727
Depreciation and amortization ........................ 7,980 3,008 10,988
Total expenses..................................................... 124,409 160,819 285,228
Income from operations ...................................... $ 13,570 $ 23,910 $ 37,480