Cash America 2012 Annual Report Download - page 61

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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, 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:
•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;
•analysts’ estimates; and
•perceptions of and other events related to the consumer loan industry.
The market price for the Company’s common stock has varied between a high of $49.42 on March 28, 2012 and
a low of $34.21 on November 16, 2012 in the twelve-month period ended December 31, 2012. 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 may experience significant volatility that is 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 13”), 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