Cash America 2007 Annual Report Download - page 53

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33
2007 and 2006, respectively, compared to the prior year periods. The disproportionate growth in net
revenue from cash advance activities is mostly due to the inclusion of the operations of the online
distribution channel acquired in September 2006 that were not in the full comparable periods through
September 2006. Other revenue accounted for 0.3% and 2.8% of the overall increase in net revenue in 2007
and 2006, respectively. These trends are depicted in the following graphs:
Year Ended 2007 Compared to Year Ended 2006
Consolidated Net Revenue. Consolidated net revenue increased $193.0 million, or 39.4%, to $682.6
million during 2007 from $489.6 million during 2006. The following table sets forth 2007 and 2006 net
revenue by operating segment ($ in thousands):
2007 2006 Increase/(Decrease)
Cash advance operations – storefront ............................. $ 137,979 $ 130,106 $ 7,873 6.1%
Cash advance operations – internet lending ................... 184,729 30,483 154,246 506.0
Total cash advance operations .................................... $ 322,708 $ 160,589 $ 162,119 101.0%
Pawn lending operations................................................. 356,275 325,071 31,204 9.6
Check cashing operations ............................................... 3,619 3,925 (306) (7.8)
Consolidated net revenue ........................................... $ 682,602 $ 489,585 $ 193,017 39.4%
The components of consolidated net revenue are finance and service charges from pawn loans,
which increased $11.5 million; profit from the disposition of merchandise, which increased $20.9 million;
cash advance fees generated from pawn locations, cash advance locations and via the internet distribution
channel, which increased $160.1 million; and combined segment revenue from check cashing fees, royalties
and other, which increased $516,000. Net revenue from pawn lending operations includes finance and
service charges and profit from disposition of merchandise, both of which increased in 2007 as compared to
2006, as well as cash advance fees from pawn locations, which decreased in 2007 compared to the prior
year period. The increase in net revenue from cash advance operations of 101.0% was primarily due to the
inclusion of the operating results of CashNetUSA for the full year in 2007.
2006 over 2005
$77.6 million
16.4%
82.9%
10.8%
12.5%
6.0% 2.8%
0.3%
68.3%
2007 over 2006
$193.0 million
Finance and service charges
Profit from the disposition
of merchandise
Cash advance fees
Other revenue