Cash America 2008 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2008 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 144

  • 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
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144

50
$124.2 million at December 31, 2006. Those amounts included $113.8 million and $99.5 million at
December 31, 2007 and 2006, respectively, which are included in the Company’s consolidated balance
sheet. An allowance for losses of $25.7 million and $19.5 million has been provided in the consolidated
financial statements for December 31, 2007 and 2006, respectively, which is netted against the outstanding
cash advance amounts on the Company’s consolidated balance sheets.
The following table summarizes cash advances outstanding at December 31, 2007 and 2006 and
contains certain non-Generally Accepted Accounting Principles (“non-GAAP”) measures with respect to the
cash advances owned by third-party lenders that are not included in the Company’s consolidated balance
sheets. The Company believes that presenting these non-GAAP measures is meaningful and necessary
because management evaluates and measures the cash advance portfolio performance on an aggregate basis
(dollars in thousands).
2007 2006
Funded by the Company (a)
Active cash advances and fees receivable ............................................ $ 76,620 $ 69,489
Cash advances and fees in collection.......................................................... 24,099 24,499
Total funded by the Company (a) ....................................................... 100,719 93,988
Funded by third-party lenders (b) (c)
Active cash advances and fees receivable ............................................ 34,580 24,721
Cash advances and fees in collection.......................................................... 13,105 5,466
Total funded by third-party lenders (b) (c) ......................................... 47,685 30,187
Combined gross portfolio (b) (d)................................................................. 148,404 124,175
Less: Elimination of cash advances owned by third-party lenders...... 34,580 24,687
Company-owned cash advances and fees receivable, gross ...................... 113,824 99,488
Less: Allowance for losses......................................................................... 25,676 19,513
Cash advances and fees receivable, net........................................................ $ 88,148 $ 79,975
Allowance for loss on Company-owned cash advances ................................. $ 25,676 $ 19,513
Accrued losses on third-party lender-owned cash advances........................... 1,828 1,153
Combined allowance for losses and accrued third-party lender losses... $ 27,504 $ 20,666
Combined allowance for losses and accrued third-party lender losses
as a % of combined gross portfolio (b) (d)................................................. 18.5% 16.6%
(a) Cash advances written by the Company for its own account in pawn locations, cash advance locations, and
through the internet distribution channel.
(b) Non-GAAP presentation. For informational purposes and to provide a greater understanding of the
Company’s businesses. Management believes that information provided with this level of detail is
meaningful and useful in understanding the activities and business metrics of the Company’s operations.
(c) Cash advances written by third-party lenders that were arranged by the Company on behalf of the third-party
lenders, all at the Company’s pawn locations, cash advance locations and through the internet distribution
channel.
(d) Includes (i) cash advances written by the Company, and (ii) cash advances written by third-party lenders that
were arranged by the Company on behalf of the third-party lenders, all at the Company’s pawn and cash
advance locations and through the Company’s internet distribution channel.