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8-K - FORM 8-K - CASH AMERICA INTERNATIONAL INC | d74897e8vk.htm |
EX-2.1 - EX-2.1 - CASH AMERICA INTERNATIONAL INC | d74897exv2w1.htm |
Exhibit 99.1
Additional Information: | For Immediate Release | |
Thomas A. Bessant, Jr. | ||
(817) 335-1100 |
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CASH AMERICA ANNOUNCES AGREEMENT TO ACQUIRE
39 PAWN LENDING LOCATIONS IN WASHINGTON AND ARIZONA
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CASH AMERICA ANNOUNCES AGREEMENT TO ACQUIRE
39 PAWN LENDING LOCATIONS IN WASHINGTON AND ARIZONA
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Fort Worth, Texas (August 2, 2010) - - Cash America International, Inc. (NYSE: CSH) announced today
that it has signed an asset purchase agreement for the purchase of a 39-store chain of pawn lending
locations owned by Maxit Financial, LLC (Maxit). The pawn lending locations operate in the
states of Washington and Arizona under the names Pawn X-Change and Maxit.
Commenting on the acquisition, Daniel R. Feehan, President and Chief Executive Officer of Cash
America said, We are excited about this opportunity to further expand Cash Americas pawn lending
business in Washington and Arizona. Increasing our pawn lending storefront locations remains a
priority for Cash America and we believe that this acquisition will enhance our presence in these
two important markets in the United States through increased revenue and greater market coverage.
Mr. Feehan added, With the inclusion of the Maxit locations, Cash America will have added 244 pure
pawn locations to our business over the last two years.
Maxit currently owns 29 and 10 pawn lending locations operating in Washington and Arizona,
respectively. These locations offer only pawn lending and related services. Maxit has been
operating successfully since the early 1990s and had approximately $20 million in pawn loan
balances as of June 30, 2010 (unaudited). For the twelve-month period ended June 30, 2010, Maxit
had total revenue of approximately $54 million (unaudited). Eight of Maxits 39 locations have
been opened during the last 18 months. The addition of the Maxit stores will significantly
increase Cash Americas storefront pawn lending locations in both markets, where Cash America had 5
pawn lending locations in Washington and 11 Company-owned and 7 franchised pawn lending locations
in Arizona as of June 30, 2010.
Upon completion of the transaction, Cash America will have added 244 pawn lending locations, net of
closures and excluding the introduction of pawn lending into existing consumer loan facilities, to
its storefront platform over a 24-month period, representing close to a 25% increase in pawn
locations over that period. Total pawn loan balances of Cash America were $184.1 million at June
30, 2010 and are expected to easily exceed $200 million following the closing of the transaction
with Maxit, representing over a 40% increase in pawn loan balances since December 31, 2008.
Cash America estimates the aggregate purchase price of the Maxit acquisition to be approximately
$70.0 million, including $12.5 million to be paid in shares of common stock of Cash America and the
balance in cash. The transaction would be accretive to earnings following its closing, which is
expected to occur in the fourth quarter of 2010 and is subject to the satisfaction of customary
closing conditions, including the completion of satisfactory due diligence, the termination or
expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and
other regulatory approvals.
About Cash America
As of June 30, 2010, Cash America International, Inc. had 1,062 total locations offering specialty
financial services to consumers, which include 737 lending locations (including nine unconsolidated
franchised locations) operating in 28 states in the United States under the names Cash America
Pawn, SuperPawn, Cash America Payday Advance, and Cashland, and 200 pawn lending locations,
of which the Company is a majority owner, operating in 21 jurisdictions in central and southern
Mexico under the name Prenda Fácil. In addition, as of June 30, 2010, the Company operated 120
unconsolidated franchised and five Company-owned check cashing centers operating in 16 states in
the United States under the name Mr. Payroll. As of June 30, 2010, the Company offered
short-term loans over the Internet to customers in 33 states in the United States at
http://www.cashnetusa.com, in the United Kingdom at http://www.quickquid.co.uk, in
Australia at http://www.dollarsdirect.com.au, and in Canada at http://www.dollarsdirect.ca.
The Company also owns a micro-line of credit services business that processes short-term
loans on behalf of a third-party lender with balances outstanding in all 50 states and four other
United States jurisdictions as of June 30, 2010.
For additional information regarding the Company and the services it provides, visit the Companys
websites located at:
http://www.cashamerica.com
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http://www.quickquid.co.uk | |
http://www.enovafinancial.com
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http://www.dollarsdirect.com.au | |
http://www.cashnetusa.com
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http://www.dollarsdirect.ca | |
http://www.cashlandloans.com
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http://www.strikegoldnow.com | |
http://www.primaryinnovations.net
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http://www.mrpayroll.com |
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements about the business, financial condition and
prospects of Cash America International, Inc. and its subsidiaries (the Company). The actual
results of the Company could differ materially from those indicated by the forward-looking
statements because of various risks and uncertainties including, without limitation, changes in
pawn, consumer credit, tax and other laws and governmental rules and regulations applicable to the
Companys business, changes in demand for the Companys services, the continued acceptance of the
online distribution channel by the Companys online loan customers, the actions of third parties
who offer products and services to or for the Company, fluctuations in the price of gold, changes
in competition, the ability of the Company to open new locations in accordance with its plans,
economic conditions, real estate market fluctuations, interest rate fluctuations, changes in
foreign currency exchange rates, changes in the capital markets, the ability to successfully
integrate newly acquired businesses into the Companys operations, the loss of services of any of
the Companys executive officers, the effect of any current or future litigation proceedings on the
Company, the effect of any of such changes on the Companys business or the markets in which the
Company operates and other risks and uncertainties indicated in the Companys filings with the
Securities and Exchange Commission. These risks and uncertainties are beyond the ability of the
Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties
that could cause its actual results to differ materially from those indicated by the
forward-looking statements. When used in this release, terms such as believes, estimates,
should, could, would, plans, expects, anticipates, may, forecasts, projects and
similar expressions and variations as they relate to the Company or its management are intended to
identify forward-looking statements. The Company disclaims any intention or obligation to update
or revise any forward-looking statements to reflect events or circumstances occurring after the
date of this release.
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