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RAPAPORT... Cash America International Inc. reported that company profit fell 16.6 percent year on year to $20.97 million for the second quarter that ended on June 30, in large part due to $15 million in charges related to an early extinguishment of debt. Revenue for the second quarter rose 10.9 percent to $455.1 million, while net revenue, or revenue minus the cost of merchandise sold and loan loss provision expenses, increased 13 percent to $275.9 million.
Cash America stated that strong revenue growth was observed from its ecommerce channel, where sales jumped 27 percent to $134.6 million during the quarter. The company’s retail services sector experienced a 3 percent increase in sales at $141.1 million as revenue from pawn loans jumped 11 percent. Same-store pawn loan balances across U.S. lending locations rose 4.5 percent.
Daniel R. Feehan, the president and CEO of Cash America, said, “The second quarter’s results exceeded our expectations due to much lower loan loss rates in our unsecured consumer loan products during the period, which led to strong gains in operating income from our ecommerce segment. In addition, our pawn lending activities experienced renewed demand leading to a healthy increase in overall pawn loans and the first domestic same store pawn loan balance increase since early 2012.”
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