Cash America 2012 Annual Report Download - page 85

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60
Adjusted Earnings and Adjusted Earnings Per Share
In addition to reporting financial results in accordance with GAAP, the Company has provided adjusted earnings
and adjusted earnings per share, which are non-GAAP measures. Management believes that the presentation of these
measures provides investors with greater transparency and facilitates comparison of operating results across a broad
spectrum of companies with varying capital structures, compensation strategies, derivative instruments and amortization
methods, which provides a more complete understanding of the Company’s financial performance, competitive position
and prospects for the future. Management also believes that investors regularly rely on non-GAAP financial measures,
such as adjusted earnings and adjusted earnings per share, to assess operating performance and that such measures may
highlight trends in the Company’s business that may not otherwise be apparent when relying on financial measures
calculated in accordance with GAAP. In addition, management believes that the adjustments shown below, especially
the adjustments for charges related to events that occurred during 2012, such as the Mexico Reorganization, the
withdrawal of the proposed Enova IPO, and the charges related to the Ohio Reimbursements, are useful to investors in
order to allow them to compare the Company’s financial results for the current year with the previous years shown. The
following table provides a reconciliation between net income attributable to the Company and diluted earnings per share
calculated in accordance with GAAP to adjusted earnings and adjusted earnings per share, respectively, which are
shown net of tax (dollars in thousands, except per share data):
Year Ended December 31,
2012 2011 2010
$
Per
Diluted
Share $
Per
Diluted
Share $
Per
Diluted
Share
N
et income and diluted earnings per share attributable
to Cash America International, Inc. $ 107,470 $3.42 $ 135,963 $4.25 $ 115,538 $ 3.67
Adjustments:
Charges related to withdrawn proposed Enova IPO(a) 2,424 0.07 - - - -
Charges related to the Mexico Reorganization(b) 25,421 0.81 - - - -
Charges related to Ohio Reimbursements(c) 8,442 0.27 - - - -
Subtotal 143,757 4.57 135,963 4.25 115,538 3.67
Other adjustments (net of tax):
Intangible asset amortization 2,791 0.09 3,905 0.12 2,993 0.09
Non-cash equity-based compensation 3,007 0.10 3,064 0.10 2,384 0.08
Convertible debt non-cash interest and issuance
cost amortization 2,386 0.07 2,214 0.07 2,088 0.06
Foreign currency transaction loss 196 0.01 786 0.02 289 0.01
Adjusted earnings and adjusted earnings per share $ 152,137 $4.84 $ 145,932 $4.56 $ 123,292 $ 3.91
(a) Represents charges directly related to the proposed Enova IPO that was withdrawn in July 2012. For the year ended December 31, 2012,
represents $3.9 million of charges, net of tax benefit of $1.5 million.
(b) Represents charges related to the Mexico Reorganization. For the year ended December 31, 2012, represents $28.9 million of charges, net of tax
benefit of $1.2 million and noncontrolling interest of $2.3 million.
(c) Represents charges related to the Ohio Reimbursements. For the year ended December 31, 2012, represents $13.4 million of charges, net of tax
benefit of $5.0 million.