Cash America 2010 Annual Report Download - page 53

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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 consumer loan 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 $42.35 on April 23, 2010 and
a low of $30.00 on August 20, 2010 in the twelve-month period ended December 31, 2010. 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 Company’s actual operating
performance.
Future issuances of additional shares of the Company’s common stock could cause dilution of ownership interests
and adversely affect the Company’s stock price.
The Company may, in the future, issue its previously authorized and unissued shares of common stock,
including the potential issuance of shares of common stock upon conversion of the 2009 Convertible Notes (as more
fully described under “Item 8. Financial Statements and Supplementary Data—Note 10”), resulting in the dilution of
the ownership interests of the Company’s shareholders. The Company is currently authorized to issue up to 80,000,000
shares of common stock, par value $0.10 per share, and as of February 16, 2011 the Company had 29,592,871 shares
of common stock issued and outstanding. The potential issuance of additional shares of common stock may create
downward pressure on the trading price of the Company’s common stock. The Company may also issue additional
shares of its common stock or other securities that are convertible into or exercisable for common stock for capital-
raising or other business purposes. Future sales of substantial amounts of common stock, or the perception that sales
could occur, could have a material adverse effect on the price of the Company’s common stock.