Cash America 2011 Annual Report Download - page 62

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The Company’s operations could be subject to natural disasters and other business disruptions, which could
adversely impact its future revenue and financial condition and increase its costs and expenses.
The Company’s services, operations and pawnshops from which it provides its products and services are
vulnerable to damage or interruption from tornadoes, hurricanes, earthquakes, fires, floods, power losses,
telecommunications failures, terrorist attacks, acts of war, human errors and similar events. A significant natural
disaster, such as a tornado, hurricane, earthquake, fire or flood, could have a material adverse impact on the Company’s
business and the Company’s insurance coverage may be insufficient to compensate the Company for losses that may
occur. Acts of terrorism, civil unrest or violence could cause disruptions to the Company’s business or the economy as a
whole. More generally, any of these events could cause consumer confidence and spending to decrease or result in
increased volatility in the U.S. economy and worldwide financial markets. Any of these occurrences could have a
material adverse effect on the Company’s business, prospects, results of operations and financial condition.
The Company may incur property, casualty or other losses not covered by insurance.
The Company maintains a program of insurance coverage for various types of property, casualty and other risks.
The types and amounts of insurance that the Company obtains vary from time to time, depending on availability, cost
and management’s decisions with respect to risk retention. The policies are subject to deductibles and exclusions that
result in the Company’s retention of a level of risk on a self-insurance basis. Losses not covered by insurance could be
substantial and may increase the Company’s expenses, which could harm the Company’s results of operations and
financial condition.
The Company’s reported results could be adversely affected by the implementation of new, or changes in the
interpretation of existing, accounting principles or financial reporting requirements.
The Company prepares its financial statements in accordance with generally accepted accounting principles in
the United States (“GAAP”), and GAAP and its interpretations are subject to change over time. If new rules or
interpretations of existing rules require the Company to change its financial reporting (including the proposed lease
accounting changes and the adoption of International Financial Reporting Standards in the United States), the
Company’s results of operations and financial condition could be materially adversely affected, and the Company could
be required to restate historical financial reporting.
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:
xvariations in results of operations;
xlegislative or regulatory changes, and in particular, legislative or regulatory changes affecting the
Company’s consumer loan operations;
xfluctuations in commodity prices;
xgeneral trends in the industry;
xmarket conditions; and