Cash America 2013 Annual Report Download - page 64

39
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 profitability.
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 pawn or consumer loan industry.
The market price for the Company’s common stock has varied between a high of $54.12 on March 8, 2013 and a
low of $35.30 on December 5, 2013 in the twelve-month period ended December 31, 2013. 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 its 2029 Convertible Notes due 2029 (as
more fully described under “Item 8. Financial Statements and Supplementary Data—Note 11”), 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 shares of common stock, par value $0.10 per share, and as of February 18, 2014, the Company had
28,119,630 shares of common stock issued and outstanding. The potential issuance of additional shares of common
stock may create downward pressure on the trading price of the Company’s common stock. The Company may also
issue additional shares of its common stock or other securities that are convertible into or exercisable for common stock
for capital-raising or other business purposes. Future sales of substantial amounts of common stock, or the perception
that sales could occur, could have a material adverse effect on the price of the Company’s common stock.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.