Cash America 2012 Annual Report Download - page 28

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E-Commerce Segment
As of December 31, 2012, 2011 and 2010, the Company’s e-commerce segment operated in 32 states in the
United States and in three other foreign countries:
•in the United States at http://www.cashnetusa.com and http://www.netcredit.com,
•in the United Kingdom at http://www.quickquid.co.uk and http://www.poundstopocket.co.uk,
•in Australia at http://www.dollarsdirect.com.au, and
•in Canada at http://www.dollarsdirect.ca.
As of December 31, 2012, the Company also offered a line of credit product in Mexico, which is similar to the
MLOC product for which the Company previously provided services, under the trade name “Debit Plus.”
The Company’s internet websites and the information contained therein or connected thereto are not intended to
be incorporated by reference into this Annual Report on Form 10-K.
Recent Developments
Business Developments
Newly Appointed Chief Executive Officer of E-Commerce Division
On January 29, 2013, David A. Fisher was appointed Chief Executive Officer of Enova International, Inc.
(“Enova”), a wholly-owned subsidiary of the Company that comprises its e-commerce segment (which includes the
operations of the E-Commerce Division). Mr. Fisher will succeed Timothy S. Ho as the senior executive officer of
Enova, who will step down as the President of Enova on March 29, 2013.
Voluntary Reimbursements to Ohio Customers
On December 4, 2012, the Company announced a voluntary program to fully reimburse approximately 14,000
Ohio customers for all funds collected, plus interest accrued from the date collected, in connection with legal collections
proceedings initiated by the Company in Ohio from January 1, 2008 through December 4, 2012. In 2012, the Company
determined that a small number of employees did not prepare certain court documents in many of its Ohio legal
collections proceedings in accordance with court rules. In connection with the reimbursement program, for all trial court
collections proceedings filed by the Company in Ohio from January 1, 2008 through December 4, 2012, with the
exception of one appellate matter, the Company is in the process of filing dismissals, terminating all existing post-
judgment collections activities, and requesting to vacate each judgment entered and/or notifying credit reporting bureaus
of the vacated judgments, as necessary, for each case.
The Company estimates the cost of the reimbursement program and related expenses will be approximately
$13.4 million before taxes and has recorded this amount in “Accounts payable and accrued expenses” in the
consolidated balance sheets and in “Operations and administration expense” in the consolidated statements of income
for the year ended December 31, 2012.
Acquisition of Nine-Store Chain of Pawn Lending Locations in Arizona
On October 8, 2012, the Company’s wholly-owned subsidiary, Cash America, Inc. of Nevada, entered into an
agreement to acquire substantially all of the assets of a nine-store chain of pawn lending locations in Arizona owned by
Ca$h Corporation, Pawn Corp #1, Inc., Pawncorp #2, Inc. and Pawncorp #4, Inc. The aggregate cash consideration paid
in 2012 for this transaction, which was funded with borrowings under the Company’s line of credit, was approximately
$15.4 million. The closing for the transaction occurred on October 25, 2012.