Cash America 2008 Annual Report Download - page 121

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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
98
______________________
(1) Included in “Expenditures for property and equipment” for the Pawn Lending segment for the years
ended December 31, 2008, 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 three distribution channels for cash advance products: a
multi-unit, “storefront” platform of 248 units, an online, internet based lending platform and, since July
2008, the card services activities of Primary Innovations, LLC and its subsidiaries. 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, 2008 and 2007:
Internet Card Total Cash
Year Ended December 31, 2008: Storefront Lending Services Advance
Revenue
Proceeds from disposition of merchandise…. $ 787 $ –– $ –– $ 787
Cash advance fees ........................................... 106,294 221,319 2,150 (3) 329,763
Check cashing fees, royalties and other .......... 8,402 5 3 8,410
Total revenue...................................................... 115,483 221,324 2,153 338,960
Cost of revenue – disposed merchandise……… 535 –– –– 535
Net revenue……………………………………. 114,948 221,324 2,153 338,425
Expenses
Operations....................................................... 69,887 42,689 1,828 114,404
Cash advance loss provision ........................... 23,650 106,189 981 130,820
Administration ................................................ 9,944 23,992 352 34,288
Depreciation and amortization ........................ 10,499 5,061 173 15,733
Total expenses .................................................... 113,980 177,931 3,334 295,245
Income (loss) from operations............................ $ 968 $ 43,393 $ (1,181) $ 43,180
As of December 31, 2008:
Total assets ......................................................... $ 109,609 $ 330,428 $ 13,010 $ 453,047