Cash America 2013 Annual Report Download - page 60

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The Company has many competitors to its retail operations, such as retailers of new merchandise, retailers of
pre-owned merchandise, other pawnshops, thrift shops, Internet retailers and internet auction sites. Increased
competition or aggressive marketing and pricing practices by these competitors could result in decreased revenue,
margins and turnover rates in the Company’s retail operations. In addition, competitors of the Company’s e-commerce
consumer loan business may operate, or begin to operate, under business models less focused on legal and regulatory
compliance, which could put the Company at a competitive disadvantage. The Company cannot assure that it will be
able to compete successfully against any or all of its current or future competitors. As a result, the Company could lose
market share and its revenue could decline, thereby affecting the Company’s ability to generate sufficient cash flow to
service its indebtedness and fund the Company’s operations.
Any such changes in the Company’s competition could materially adversely affect the Company’s business,
prospects, results of operations, financial condition and cash flows.
The Company’s success is dependent, in part, upon its executive officers, and if the Company is not able to attract
and retain qualified executive officers, the Company’s business could be materially adversely affected.
The Company’s success depends, in part, on its executive officers, which is comprised of a relatively small
group of individuals. Many members of the senior management team have significant industry experience, and the
Company believes that its senior management would be difficult to replace, if necessary. Because the market for
qualified individuals is highly competitive, the Company may not be able to attract and retain qualified executive
officers or candidates. In addition, increasing regulations and negative publicity on the consumer financial services
industry could affect the Company’s ability to attract and retain qualified executive officers. If the Company is unable to
attract or retain qualified executive officers, it could materially adversely affect the Company’s business.
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, financial condition and cash flows.
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