Cash America 2009 Annual Report Download - page 98

70
Share Repurchases
The Company has a share repurchase program approved by the Board of Directors of the Company on
October 24, 2007 to return equity capital in excess of its business needs to shareholders. These share repurchases
both offset the issuance of new shares as part of employee compensation plans and reduce shares outstanding. The
Company repurchases its common shares primarily by open market purchases. During the year ended December
31, 2009, the Company purchased 394,476 common shares at an average price of $27.24. Going forward, the
Company may not maintain the same levels of share repurchases until conditions in the debt and equity markets
improve. The Company remains committed to maintaining a strong capital position.
At December 31, 2009, there are approximately 860,524 shares remaining under authorizations to
repurchase shares approved by the Company’s Board of Directors. Generally the Company retains the shares upon
repurchase in treasury, which are not considered outstanding for earnings per common share computation purposes.
For additional information regarding the Company’s share repurchases during the year ended December 31, 2009,
see “Item 5(c)─Issuer Purchases of Equity Securities” in Part II.
Shelf Registration Statement
On August 14, 2009, the Company filed the Shelf Registration Statement with the Securities and Exchange
Commission (the “SEC”) which permits the Company or its selling securityholders to offer from time to time
shares of the Company’s common stock, par value $0.10, debt securities, depositary shares, warrants, stock
purchase contracts, units, and subscription rights as described in the accompanying prospectus. Pursuant to Rule
462(e) of the Securities Act of 1933, the Shelf Registration Statement became effective automatically upon filing
with the SEC. Management believes the Shelf Registration Statement will provide the Company with additional
flexibility with regard to potential financings that it may undertake when market conditions permit or the
Company’s financial condition may require.
Off-Balance Sheet Arrangements
The Company arranges for consumers to obtain cash advance products from multiple independent third-
party lenders through the CSO program. When a consumer executes a credit services agreement with the
Company, the Company agrees, for a fee payable to the Company by the consumer, to provide a variety of credit
services to the consumer, one of which is to guarantee the consumer’s obligation to repay the loan received by the
consumer from the third-party lender if the consumer fails to do so. For cash advance products originated by third-
party lenders under the CSO program, each lender is responsible for evaluating each of its customers’ applications,
determining whether to approve a cash advance based on an application and determining the amount of the cash
advance. The Company is not involved in the lenders’ cash advance approval processes or in determining the
lenders’ approval procedures or criteria. The outstanding amount of active cash advances originated by third-party
lenders and guaranteed by the Company was $49.9 million, $34.9 million and $34.6 million at December 31, 2009,
2008 and 2007, respectively.
NON-GAAP DISCLOSURE
In addition to the financial information prepared in conformity with GAAP, the Company provides historical
non-GAAP financial information. Management uses the non-GAAP financial measures for internal managerial
purposes and believes that presentation of non-GAAP financial information is meaningful and useful in understanding
the activities and business metrics of the Company’s operations. Management believes that these non-GAAP financial
measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with the
Company’s GAAP results, provide a more complete understanding of factors and trends affecting the Company’s
business.