Pawn shop operator and payday lender Cash America International Inc. reported Oct. 24 its net income for the third quarter surged to $46.18 million or $1.52 per share from last year’s $11.70 million or 37 cents per share. The Fort Worth lender said its results for the quarter ended Sept. 30, 2013, included a tax benefit of $33.2 million or $1.09 per share related to the reorganization of its Mexico-based pawn operations. The company also had an $18 million pre-tax expense or 37 cents per share related to a negotiated settlement of a class-action lawsuit in Georgia.
Excluding the impact of unusual items, the company said, adjusted earnings would have been 80 cents per share. Analysts polled by Thomson Reuters expected profit of 81 cents per share for the quarter. For the third quarter, consolidated total revenue dropped to $437.8 million from $439.7 million in the same period last year. Analysts expected revenue of $443.67 million for the quarter.
Commenting on the results for the third quarter, Daniel R. Feehan, president and chief executive officer said, “The growth in our consumer loan products during the third quarter provided revenue growth to our E-Commerce business to compensate for the challenges in our retail services business, which continued to experience soft growth in pawn loans and lower levels of profit from the disposition of merchandise.” The company also declared a $0.035 per share cash dividend on common stock outstanding, payable on Nov. 20, to shareholders of record on Nov. 6, 2013.
For the fourth quarter, the company expects earnings per share between 95 cents and $1.05. For 2013, the company said it expects earnings per share of $4.68-$4.78, or $3.96-$4.06 per share on a non-GAAP adjusted basis. Looking ahead for 2014, the company projects earnings per share between $4.20 and $4.40, while analysts expect earnings of $4.91 per share. As of Sept. 30, 2013, Cash America International Inc. l operated 995 total locations, including 860 lending locations in 22 states under the names Cash America Pawn, SuperPawn, Cash America Payday Advance and Cashland; 47 pawn lending locations in Mexico; and 88 check cashing centers in 13 states under the name Mr. Payroll. The company offers consumer loans via the Internet in 32 states and in the United Kingdom, Australia and Canada. – Betty Dillard