Cash America 2009 Annual Report Download - page 52

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operating results may differ materially from expectations, and the Company may record significant gains or
losses on the remeasurement of intercompany balances.
The failure to successfully integrate newly acquired businesses into the Company’s operations could
negatively impact the Company’s performance.
The Company made significant acquisitions in 2008 involving a new product line and business model
as well as a significant entry into a foreign market (Mexico). The Company has historically grown through
strategic acquisitions and a key component of the Company’s future strategy is to continue to pursue
attractive acquisition opportunities. The success of recent and future acquisitions is, and will be, dependent
upon the Company effectively integrating the management, operations and technology of acquired businesses
into the Company’s existing management, operations and technology platforms. The failure to successfully
integrate acquired businesses into the Company’s organization could materially adversely affect the
Company’s business, prospects, results of operations and financial condition.
Adverse real estate market fluctuations could affect the Company’s profits.
The Company leases most of its locations. A significant rise in real estate prices or real property
taxes could result in an increase in store lease costs as the Company opens new locations and renews leases
for existing locations.
Other risk factors are discussed under “Quantitative and Qualitative Disclosures about Market Risk.”
Risks Related to the Company’s Common Stock
The price of the Company’s common stock has been volatile and could continue to fluctuate substantially.
The Company’s common stock is traded on the New York Stock Exchange. The market price of the
Company’s common stock has been volatile and could fluctuate substantially based on a variety of factors,
including the following:
• variations in results of operations;
• legislative or regulatory changes, and in particular, legislative or regulatory changes affecting the
Company’s cash advance operations;
• fluctuations in commodity prices;
• general trends in the industry;
• market conditions; and
• analysts’ estimates and other events in the consumer finance industry.
The market price for the Company’s common stock has varied between a high of $35.38 on
December 31, 2009 and a low of $11.60 on March 9, 2009 in the twelve-month period ended December 31,
2009. The Company’s stock price is likely to continue to be volatile and subject to significant price and
volume fluctuations in response to market and other factors, including the other factors discussed in “Risks
Related to the Company’s Business and Industry,” variations in the Company’s quarterly operating results
from management’s expectations or those of securities analysts or investors, downward revisions in securities
analysts’ estimates and announcements by the Company or its competitors of significant acquisitions,
strategic partnerships, joint ventures or capital commitments.
In addition, the stock market in general has recently experienced significant volatility that often has
been unrelated to the operating performance of companies whose shares are traded. These market
fluctuations could adversely affect the trading price of the Company’s common stock, regardless of the