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RAPAPORT... Cash America International Inc. reported that total revenue increased 7 percent year on year to $289.4 million in the fourth quarter that ended on December 31; however, net revenue decreased slightly to $151.7 million from $152.4 million due to lower net fees from unsecured consumer loans. Profit rose 2.5 percent year on year to $7.5 million during the fourth quarter, when Cash America implemented administrative reorganization plans that generated $879,000 in after-tax expenses for its lending operations. Excluding the expense, adjusted net income from continuing operations would have been $8.4 million, the company reported.
Daniel R. Feehan, the president and CEO of Cash America, said, “Retail sales in our pawn locations posted an increase of 16 percent during the important Christmas selling season, which was our primary objective coming into the quarter. While I am pleased with the growth in net earnings in the fourth quarter compared to the prior year, a lot of the progress is obscured by our strategic decision to de-emphasize unsecured consumer loans in our business, which impacted our year-over-year net revenue comparison. When excluding net fees from consumer loans and gross profit on the disposition of scrap gold and diamonds, same-store net revenue from pawn-related activities was up 3.7 percent in the fourth quarter of 2014 compared to the fourth quarter of 2013.” For the year, Cash America reported that revenue jumped 6 percent year on year to $1.1 billion and it reported a loss of $10.4 million, compared with income of $59.2 million one year earlier. Excluding costs related to the early extinguishment of debt that totaled $25.8 million, adjusted net income would have been $15.4 million.
Cash America operates 943 locations that offer specialty financial services to consumers, which include 859 lending locations in 21 states and 84 check-cashing centers in 12 states.
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