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Cash America's 2Q Profit -13%
Jul 25, 2013 4:05 PM
By Sandra Mardenfeld
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RAPAPORT... Cash America International Inc. reported today that its total revenue fell slightly to $411 million for the second quarter that ended on June 30. However, net revenue improved 5 percent year on year to $245 million. The increase was attributed to the company's ecommerce division, which reflected a 22 percent increase at $106 million. Profit fell 13 percent to $25 million.
The company attributed the decline in income to several factors, including disposition proceeds associated with commercial sales of refined gold, reduced customer demand in the domestic retail services sector and higher expenses in health insurance and personnel.
"The overall financial results for the second quarter reflect the trends that we have experienced over the past four quarters," said Daniel R. Feehan, the CEO of Cash America. "Our domestic retail services segment has faced an industry-wide challenge of adjusting to the rapidly changing environment for the commercial sales of scrap gold and to historically tepid load demand. At the same time, our ecommerce 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."
The company expects the trends that were represented in the second quarter to carry through until the year's end. Management anticipates opportunities for growth will continue "on a moderate pace" in their retail services credit product sector, which growth in the ecommerce segment should partially offset. They expect eventual growth in its pawn-lending business, but remain reserved regarding 2013 expectations.
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Tags:
2Q, Cash America, credit, ecommerce, Feehan, gross profit, loan, products, revenue, Sandra Mardenfeld
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