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RAPAPORT... Cash America International Inc. reported that revenue increased 5.3 percent year on year to $493.1 million in the first quarter that ended on March 31. Expenses rose 8.4 percent to $210.9 million. Profit improved 4.1 percent to $45.7 million or $1.55 per diluted share. Consolidated net revenue increased 8 percent to $295 million, primarily due to lower loan losses from the company’s online consumer loan portfolio. Its ecommerce channel generated a 14 percent increase in revenue to $208.5 million and it experienced expanded marginal profitability due to lower levels of loan loss provisions. The company’s retail services segment, which includes both U.S. and Mexico pawn lending businesses, reported a 3 percent decrease in net revenue at $152.3 million, primarily due to lower net proceeds from the sale of commercial jewelry merchandise. The value of jewelry being held for one year or less jumped 26.7 percent year on year to $108.1 million, while the value of jewelry held for more than one year increased 61.4 percent to $5.2 million. Total merchandise held for disposition increased 32.2 percent to $194.2 million. Daniel R. Feehan, the CEO of Cash America, said, “The strategy of diversifying our consumer loan business away from single pay loans has begun to gain momentum as these portfolios are starting to stabilize and we are seeing efficiencies in our loss experience, which is generating improved marginal profitability of our ecommerce business. Revenue from single payment loans was less than 20 percent of consolidated total revenue for Cash America in the first quarter. The overall scale of the multi-product consumer loan portfolio and its performance contributed significantly to Cash America’s financial results for the first quarter, which were well in excess of our initial estimates for the quarter.”
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