Cash America 2011 Annual Report Download - page 85

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The following table sets forth consumer loan fees by segment, adjusted for the deduction of the loan loss
provision for the years ended December 31, 2011 and 2010 (dollars in thousands):
Year Ended December 31,
2011 2010
Retail
Services E-Commerce Total
Retail
Services E-Commerce Total
Short-term loans $ 110,071 $ 431,400 $ 541,471 $ 112,679 $ 338,553 $ 451,232
Installment loans 9,121 48,054 57,175 1,294 10,783 12,077
MLOC - - - - 27,643 27,643
Consumer loan fees $ 119,192 $ 479,454 $ 598,646 $ 113,973 $ 376,979 $ 490,952
Consumer loan loss provision 24,001 201,687 225,688 17,437 164,957 182,394
Consumer loan fees, net of loan loss provision $ 95,191 $ 277,767 $ 372,958 $ 96,536 $ 212,022 $ 308,558
Year-over-year change - $ $ (1,345) $ 65,745 $ 64,400 $ 181 $ 67,337 $ 67,518
Year-over-year change - % (1.4)% 31.0 % 20.9 % 0.2 % 46.5 % 28.0 %
Consumer loan loss provision as a % of
consumer loan fees 20.1 % 42.1 % 37.7 % 15.3 % 43.8 % 37.2 %
Combined consumer loans. In addition to reporting consumer loans owned by the Company and consumer
loans guaranteed by the Company, which are either GAAP items or disclosures required by GAAP, the Company has
provided combined consumer loans, which is a non-GAAP measure. In addition, the Company has reported consumer
loans written, which is statistical data that is not included in the Company’s financial statements. The Company also
reports allowances and liabilities for estimated losses on consumer loans on a combined basis, which are GAAP
measures.
Management believes these measures provide investors with important information needed to evaluate the
magnitude of potential loan losses and the opportunity for revenue performance of the consumer loan portfolio on an
aggregate basis. Management believes that the comparison of the aggregate amounts from period to period is more
meaningful than comparing only the residual amount on the Company’s balance sheet since both revenue and the loss
provision for loans are impacted by the aggregate amount of loans owned by the Company and those guaranteed by the
Company as reflected in its financial statements.
Consumer loan balances. The outstanding combined portfolio balance of consumer loans, net of allowances
and liability for estimated losses, increased $90.0 million, or 47.6%, to $279.1 million at December 31, 2011 from
$189.1 million at December 31, 2010, primarily due to increased demand for consumer loan products in domestic and
foreign markets in both the retail services and e-commerce segments, the expansion of the Company’s installment loan
product in all markets and the expansion of the Company’s line of credit products in the United States. The Company
has experienced growth in consumer loan balances from the foreign e-commerce business in recent years and expects
that foreign consumer loan balances will continue to comprise a greater percentage of the e-commerce segment’s total
consumer loan balances in the future.
The combined loan balance includes $285.9 million and $178.3 million at December 31, 2011 and 2010,
respectively, of Company-owned consumer loan balances before the allowance for losses of $63.1 million and $38.9
million, respectively, which have both been provided in the consolidated financial statements for December 31, 2011
and 2010, respectively. The combined loan balance also includes $59.4 million and $52.6 million at December 31, 2011
and 2010, respectively, of consumer loan balances that are guaranteed by the Company, which are not included in the
Company’s financial statements, before the liability for estimated losses of $3.1 million and $2.8 million, respectively,
which has been provided in the consolidated financial statements for December 31, 2011 and 2010, respectively.