A. Lee Graham Reporter Cash America International Inc. has reported a net income decline for the second quarter, with the Fort Worth company earning $25.1 million, or 81 cents per share, compared to $29.8 million, or 94 cents per share, in the same quarter last year. The firm attributed the earnings drop primarily to a decline in gross profit on commercial sales of refined gold in the its U.S. retail services segment. Earnings fell short of the company’s published earnings guidance due to lower customer demand for the loan products provided through the that services segment, higher expenses for health insurance and personnel costs, and additional interest expense associated with the $300 million senior note offering that closed in May, the company said. Revenue for the second quarter totaled $411.0 million compared to $411.6 million in the same period last year. Net revenue, which subtracts the cost of merchandise sold and loan loss provision expense, rose 5 percent to $244.8 million for the three-month period ended June 30, 2013 compared to the prior year primarily due to growth in the company’s e-commerce segment. “The overall financial results for the second quarter reflect the trends that we have experienced over the past four quarters,” said president and CEO Daniel R. Feehan in a news release. Feehan said the company’s U.S. retail services segment has faced challenges in adjusting to the changing environment for the commercial sales of scrap gold and tepid loan demand. At the same time, our e-commerce segment remains a bright spot for our enterprise with ongoing growth in its revenue and earnings associated with its diversification of loan products in both the U.S. and international markets,” Feehan said. For the first six months of fiscal year 2013, total revenue edged up 1 percent to $879.1 million compared to $869.1 million for the same period last year. Meanwhile, net revenue for the same period rose 5 percent to reach $516.7 million in 2013 compared to $490.4 million in 2012. As of June 30, 2013, Cash America International operated 964 total locations offering specialty financial services to consumers. Among those locations are 827 lending sites in 22 states primarily under the names Cash America Pawn, SuperPawn, Cash America Payday Advance and Cashland; 47 pawn lending locations in central and southern Mexico under the name Cash America casa de empeño; and 90 check-cashing centers operating in 15 states under the name Mr. Payroll. More information is available at www.cashamerica.com. lgraham@bizpress.net
