Cash America 2007 Annual Report Download - page 21

Download and view the complete annual report

Please find page 21 of the 2007 Cash America annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 126

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

1
PART I
ITEM 1. BUSINESS
General
Cash America International, Inc. (the “Company”) provides pawn loans, short-term cash advances,
check cashing services and other specialty financial services to individuals. The Company also sells
merchandise in its pawnshops, primarily personal property that has been forfeited in connection with its
pawn lending operations.
The Company was incorporated in 1984 to engage in the business of owning and operating
pawnshops. Since its formation, the Company has significantly broadened the scale and geographic scope
of its pawn operations so that, as of December 31, 2007, it was the nation’s largest provider of pawn loans
and, it believes, is the largest operator of pawnshops in the world. The Company also has expanded its
financial services offerings by offering cash advances and other specialty financial services.
As of December 31, 2007, the Company operated 499 pawnshops in 22 states (including 14
pawnshops that are franchises). Most of the Company’s pawnshops operate under the “Cash America” trade
name; 44 pawnshops (located in Arizona, California, Nevada and Washington) operate under the
“SuperPawn” trade name.
The Company offers unsecured cash advances through 431 of its pawnshops, in 87 standalone Cash
America Payday Advance locations, in 217 locations operated by its wholly-owned subsidiary Cashland
Financial Services, Inc. under the “Cashland” trade name, and, since September 2006, over the internet
under the trade name “CashNetUSA” at www.cashnetusa.com in the United States. In July 2007, the
Company began offering short-term unsecured loans to customers who reside throughout the United
Kingdom through its internet platform under the trade name “QuickQuid” at www.quickquid.co.uk.
Through its wholly-owned subsidiary Mr. Payroll Corporation (“Mr. Payroll”), the Company offers
check cashing services through 134 franchised and five company-owned check cashing centers. Many of
the Company’s pawn and cash advance locations also offer check cashing services and other retail financial
services such as stored value cards, money orders and money transfers.
Since its inception, the Company has grown by acquiring existing pawnshops and establishing new
ones in locations that can benefit from its centralized management and standardized operations. The
Company has pursued a similar strategy for acquiring and establishing cash advance locations since 2003.
With both pawnshops and cash advance locations, the Company seeks to increase its share of the consumer
loan business and concentrate multiple lending locations in regional and local markets in order to expand
market penetration, enhance name recognition and reinforce marketing programs. The Company intends to
continue this strategy for acquiring and establishing new lending locations, and intends to offer new
products and services at its physical lending locations in order to meet the growing financial services needs
of its customers.
The Company began offering cash advances online with its acquisition of CashNetUSA in
September 2006. The Company is also actively exploring strategies to increase and enhance its online
presence, with the goal of becoming the premier online cash advance provider. The Company also intends to
offer new products and services that complement its specialty financial services and to meet the growing
financial services needs of its customers both at its physical lending locations and online.
Recent Developments.
On September 15, 2006, the Company, through its wholly-owned subsidiary Cash America Net
Holdings, LLC, purchased substantially all of the assets of The Check Giant, LLC (“TCG”), which offered