Cash America Announces Third Quarter Net Income Up 24% And Dividend Declared

Cash America International, Inc. (NYSE: CSH) announced today that net income attributable to the Company for the third quarter of 2010 increased 24% to $27,908,000 (90 cents per share) compared to the third quarter of 2009 which was $22,478,000 (73 cents per share). Consolidated earnings per share for the third quarter were in line with the Company’s earnings pre-announcement press release issued on October 13, 2010, that also reported that the results would be above the high end of the Company’s initially reported guidance range of between 82 and 88 cents per share, provided on July 22, 2010.

Consolidated total revenue increased 16% during the third quarter of 2010 to $319.4 million, up from $276.1 million during the same period in 2009 continuing a trend of four consecutive quarters of double-digit increases year over year. Contributing to the increase in total revenue was an increase in consumer loan fees from the Company’s E-Commerce segment. Revenue from online consumer loan fees, excluding the card based micro-line of credit services, rose 50%, to $95.4 million, due to higher demand in the United States and foreign markets during the period. The Company’s Retail Services segment also posted higher revenue and earnings in the third quarter of 2010 due to the performance of its domestic pawn lending business. Higher revenue from pawn loans and increased profitability on the sale of merchandise during the quarter led the Company’s U.S. based Retail Services business to post an 11% increase in income from operations, which reached $35.6 million. Consolidated income from operations for Cash America increased 22%, to $50.4 million, on the 16% increase in total revenue, for the three months ended September 2010 compared to the same period in 2009.

For the nine-month period ended September 30, 2010, Cash America reported a 28% increase in net income of $80,830,000 ($2.56 per share) compared to $62,995,000 ($2.06 per share) for the same period in 2009. Total revenue increased 16% to $924.5 million for the nine-month period ended September 30, 2010, up from $796.6 million for the same period in 2009.

Commenting on the results for the third quarter, Daniel R. Feehan, President and Chief Executive Officer said, "We are pleased with the success of our E-Commerce lending platform which continues to offer consumers a convenient and easy way to access credit in these difficult economic times. During the third quarter, both our pawn loan and consumer loan portfolios performed very well which added to the increase in earnings. As we approach the last three months of 2010, we are looking forward to the integration of our recent acquisition of 39 pawn-lending locations to provide momentum for the coming year.”

Cash America will conduct a conference call to discuss its third quarter earnings on Thursday, October 21, 2010 at 7:00 AM CDT. A live web cast of the call will be available on the Company’s corporate web site in the Investor Relations section (www.cashamerica.com). To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software.

Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid at the close of business on November 17, 2010 to shareholders of record on November 3, 2010.

Outlook for the Fourth Quarter of 2010 and 2011 Fiscal Year

Expectations for the remainder of fiscal 2010 will be impacted by earning asset levels based on customer demand for credit products and by customer demand for the sale of merchandise in pawn lending locations during the seasonally important holiday selling season. The fourth quarter represents an important period of retail sales for the Company, and results will be affected by consumer sentiments during the period. Based on its views and expectations related to the preceding factors management expects that the fourth quarter 2010 net income per share will be between $1.09 and $1.19 per share compared to $1.09 per share in the fourth quarter of 2009. This amount includes an estimated burden of $2 million in the fourth quarter (estimated to be 4 cents per share after taxes) related to the acquisition of the Maxit pawn locations completed in early October. The expected results for the fourth quarter of 2010, and all future periods, do not include profits from the Company’s card based micro-line of credit services business after October 12, 2010. Applying the expected fourth quarter range to actual results for the first nine months of the year would lead management’s expectation for the full year 2010 earnings per share to be between $3.65 and $3.75 compared to $3.17 per share in fiscal 2009.

In addition, management is initiating its preliminary expectations for fiscal year 2011. Based on its current views of the coming year, management establishes its initial anticipated range of earnings per share of $4.11 to $4.22 for fiscal 2011.

About the Company

As of September 30, 2010, Cash America International, Inc. had 1,062 total locations offering specialty financial services to consumers, which include 735 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 202 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.” The Company also operated 120 unconsolidated franchised and five Company-owned check cashing centers operating in 17 states in the United States under the name "Mr. Payroll” as of September 30, 2010. Additionally, as of September 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 September 30, 2010.

For additional information regarding the Company and the services it provides, visit the Company’s websites located at:

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 Company's business, changes in demand for the Company's services, the continued acceptance of the online distribution channel by the Company’s cash advance customers, the actions of third parties who provide, acquire or offer products and services to, from or for the Company, fluctuations in the price of gold, changes in competition, the ability of the Company to open new operating units in accordance with its plans, changes in 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 Company’s operations, the loss of services of any of the Company’s executive officers, the effect of any current or future litigation proceedings on the Company, acts of God, war or terrorism, pandemics and other events, the effect of any of such changes on the Company’s business or the markets in which the Company operates and other risks and uncertainties indicated in the Company's 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.

The following table outlines certain data related to the Company’s pawn loan activities as of and for the three and nine months ended September 30, 2010 and 2009.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

MERCHANDISE DISPOSITION, GROSS PROFIT AND INVENTORY OPERATING DATA

(in thousands)

Profit from the disposition of merchandise represents the proceeds received from the disposition of merchandise in excess of the cost of disposed merchandise. Retail sales include the sale of jewelry and general merchandise direct to consumers through any of the Company’s retail services locations or the internet. Commercial sales include the sale of refined gold, platinum and diamonds to refiners, brokers or manufacturers. The following table summarizes the proceeds from the disposition of merchandise and the related profit for the three and nine months ended September 30, 2010 and 2009.

The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.7 million at September 30, 2010 and 2009 (dollars in thousands).

E-Commerce Segment

As of September 30, 2010, the Company’s e-commerce operating segment offered consumer 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 e-commerce segment also includes the Company’s MLOC services channel, which processes MLOC advances on behalf of a third-party lender and had a participation interest in MLOC receivables that were outstanding in all 50 states and four other U.S. jurisdictions as of September 30, 2010.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES

NON-GAAP DISCLOSURE

Non-GAAP Disclosure

In addition to the financial information prepared in conformity with GAAP, the Company provides historical non-GAAP financial information. Management uses the non-GAAP financial measures for internal managerial purposes and believes that presentation of non-GAAP financial information is meaningful and useful in understanding the activities and business metrics of the Company’s operations. Management believes that these non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed with the Company’s GAAP results, provide a more complete understanding of factors and trends affecting the Company’s business.

Management provides non-GAAP financial information for informational purposes and to enhance understanding of the Company’s GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of, the Company’s financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.