Cash America 2012 Annual Report Download - page 56

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The Company’s business depends on the uninterrupted operation of the Company’s facilities, systems and business
functions, including its information technology and other business systems.
The Company’s business, particularly its online lending business, depends highly upon its employees’ ability to
perform, in an efficient and uninterrupted fashion, necessary business functions, such as internet support, call centers,
and processing and making consumer loans. Additionally, the Company’s storefront operations depend on the efficiency
and reliability of the Company’s point-of-sale system. A shut-down of or inability to access the facilities in which the
Company’s internet operations, storefront point-of-sale system and other technology infrastructure are based, such as a
power outage, a failure of one or more of its information technology, telecommunications or other systems, or sustained
or repeated disruptions of such systems could significantly impair its ability to perform such functions on a timely basis
and could result in a deterioration of the Company’s ability to write and process internet consumer loans, perform
efficient storefront lending and merchandise disposition activities, provide customer service, perform collections
activities, or perform other necessary business functions. Any such interruption could materially adversely affect the
Company’s business, prospects, results of operations and financial condition.
The Company’s expansion strategy is subject to external factors and other circumstances over which the Company
has limited control or that are beyond the Company’s control. These factors and circumstances could adversely affect
the Company’s ability to grow through the opening and acquisition of new operating units.
The Company’s expansion strategy for its retail services segment includes acquiring existing stores and opening
new ones. The success of this strategy is subject to numerous external factors, such as the availability of attractive
acquisition candidates, the availability of sites with acceptable restrictions and suitable terms, the Company’s ability to
attract, train and retain qualified store management personnel, the ability to access capital, the ability to obtain required
government permits and licenses, the prevailing laws and regulatory environment of each state or jurisdiction in which
the Company operates or seeks to operate, which are subject to change at any time, the degree of competition in new
markets and its effect on the Company’s ability to attract new customers and the ability to adapt the Company’s
infrastructure and systems to accommodate its growth. Some of these factors are beyond the Company’s control. The
failure to execute this expansion strategy would adversely affect the Company’s ability to expand its business and could
materially adversely affect its business, prospects, results of operations and financial condition.
Future acquisitions and/or the failure to successfully integrate newly acquired businesses into the Company’s
operations could negatively impact the Company’s performance.
The Company has historically grown through strategic acquisitions, and a key component of the Company’s
future strategy is to continue to pursue attractive acquisition opportunities in order to expand its product and service
offerings and markets and grow its business in response to changing customer demands, regulatory environments,
technologies and competitive pressures. In some circumstances, the Company may expand its offerings through the
acquisition of complementary businesses, solutions or technologies rather than through internal development. The
identification of suitable acquisition candidates can be difficult, time-consuming and costly, and the Company may not
be able to successfully complete identified acquisitions. Furthermore, even if the Company successfully completes an
acquisition, it may not be able to successfully assimilate and integrate the business, technologies, solutions, personnel or
operations of the business that it acquires, particularly if key personnel of an acquired company decide not to work for
the Company. In addition, the Company may issue equity securities to complete an acquisition, which would dilute its
shareholders’ ownership and could adversely affect the price of the Company’s common stock. Acquisitions may also
involve the entry into geographic or business markets in which the Company has little or no prior experience or may
expose the Company to additional material liabilities. In addition, any acquisition has the risk that the Company may not
realize a return on the acquisition or the Company’s investment. Consequently, the Company may not achieve
anticipated benefits of the acquisitions, which could materially adversely affect the Company’s business, prospects,
results of operations and financial condition.