Cash America 2015 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2015 Cash America annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

in the Company’s filings with the Securities and Exchange Commission, it could have a Material Adverse Effect,
and the Company could be required to restate historical financial reporting.
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 the Company may pursue
acquisition opportunities in the future 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 have a Material Adverse Effect.
Potential expansion for the Company 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 may try to expand its business by acquiring existing stores and opening new ones, as it has
done in the past. 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 have a Material Adverse Effect.
The Company may incur property, casualty or other losses not covered by insurance.
The Company maintains a program of insurance coverage for various types of property, casualty and other
risks. The types and amounts of insurance that it obtains vary from time to time, depending on availability, cost and
management’s decisions with respect to risk retention. The policies are subject to deductibles and exclusions that
result in the Company’s retention of a level of risk on a self-insurance basis. Losses not covered by insurance could
be substantial and may increase the Company’s expenses, which could harm the Company’s results of operations
and financial condition.
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.”
26