Cash America 2009 Annual Report Download - page 88

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(a)a
a
Cash advances written by the Company in its pawn lending and cash advance storefront locations and through the Company’s
internet channel.
(b)a
a
a
a
Non-GAAP presentation. Management evaluates the cash advance portfolio on an aggregate basis including the loss provision
for the Company-owned and the third-party lender-owned portfolio that the Company guarantees. The non-GAAP financial
measure is provided immediately following its most comparable GAAP amount and can be reconciled to its most comparable
GAAP amount through the presentation of the financial information above.
(c)a
a
a
Cash advances written by third-party lenders that were marketed, processed or arranged by the Company on behalf of the third-
party lenders, all at the Company’s pawn and cash advance storefront locations and through the Company’s internet and card
services channels. (Note: The Company commenced business in the card services channel in the third quarter of 2008.)
(d)Includes cash advances written by the Company, as well as the cash advance products described in footnote (c) above.
Check Cashing Fees, Royalties and Other. Check cashing fees, royalties and other income from all segments
decreased $0.9 million, or 5.3%, from $16.4 million in 2007 to $15.5 million in 2008 primarily due to a lower
volume of checks being cashed. Management also believes the decrease was potentially due to an increase in
competition and the closing of cash advance storefront locations during 2008. The components of these fees are as
follows (dollars in thousands):
Year Ended December 31,
2008 2007
Pawn
Lending
Cash
Advance
Check
Cashing
Total
Pawn
Lending
Cash
Advance
Check
Cashing
Total
Check cashing fees $646 $4,908 $400 $5,954 $780 $5,684 $485 $6,949
Royalties 713 - 2,926 3,639 555 - 3,064 3,619
Other 2,384 3,502 62 5,948 1,933 3,846 70 5,849
$3,743 $8,410 $3,388 $15,541 $3,268 $9,530 $3,619 $16,417
Operations Expenses. Consolidated operations expenses, as a percentage of total revenue, were 32.1% in 2008, a
decrease from 33.0% in 2007. These expenses increased $21.8 million, or 7.0%, in 2008 compared to 2007. In
2008, pawn lending operating expenses increased $16.6 million, or 8.4%, to $215.1 million when compared to
2007, primarily due to higher personnel costs, increased occupancy expenses and an increase in store level
incentives. The operations expenses for the cash advance activities increased $5.1 million, or 4.7%, to $114.3
million in 2008 compared to 2007, primarily as a result of the growth and development of the Company’s internet
channel.
The Company’s operations expenses are predominately related to personnel and occupancy expenses.
Personnel expenses include base salary and wages, performance incentives and benefits. Occupancy expenses
include rent, property taxes, insurance, utilities and maintenance. The combination of personnel and occupancy
expenses represents 77.9% of total operations expenses in 2008 and 77.9% in 2007. The comparison is as follows
(dollars in thousands):
Year Ended December 31,
2008 2007
% of % of
Amount Revenue Amount Revenue
Personnel $181,118 17.6 % $169,428 18.2 %
Occupancy 76,499 7.4 71,196 7.6
Other 73,127 7.1 68,358 7.2
Total $330,744 32.1 % $308,982 33.0 %