Commenting on the results for the third quarter, Daniel R. Feehan, President and Chief Executive Officer said, “We entered the third quarter keenly aware of the challenging environment but determined to make advances on a variety of important initiatives to position the Company for next year. We recently announced that the Company has entered into agreements to add 34 pawn lending locations in the United States through two independent transactions, one of which was substantially completed during the quarter, and we began implementing a new strategy for our Mexico-based pawn lending locations to focus on full-format pawn locations and place more emphasis on lending activities secured by general merchandise. We believe these developments plus the continued growth of our E-Commerce segment will set the stage for fiscal 2013.”
Cash America will host a conference call to discuss the third quarter results on Thursday, October 25, at 7:00 AM CDT. A live webcast of the call will be available on the Investor Relations section of the Company’s corporate website ( http://www.cashamerica.com). To listen to the live call, please go to the website at least fifteen minutes early to register, download, and install any necessary audio software. A replay will be available on the Company’s website following the call.
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 21, 2012 to shareholders of record on November 7, 2012.
Outlook for the Fourth Quarter of 2012 and 2013 Fiscal YearManagement believes that the opportunities for growth in revenue and earnings will be largely associated with customer demand for the credit products provided by the Company, which take the form of pawn loans and consumer loans and the disposition of unredeemed collateral by way of consumer spending on retail sales and the commercial sale of refined gold and diamonds. The fourth quarter, during the seasonally important holiday selling season, represents an important period of retail sales for the Company, and results will be affected by consumer sentiments during the period. There are various other elements that could affect the growth in revenue, such as the regulatory governance of consumer loan products and the development and growth of new and foreign markets for the Company’s e-commerce distribution platform for consumer lending products, as well as developments related to the reorganization of the Company’s Mexico-based pawn operations. As the Company enters the fourth quarter of 2012, management anticipates that demand for the Company’s consumer loan products will continue on a similar pace to the one it has experienced during the first nine months of 2012 with a continued heavier weighting to the international portfolio. Demand for the Company’s pawn lending products has proven more challenging in the second and third quarters of 2012, and management expects growth in the Company’s pawn lending business, but remains conservative in its expectations for the balance of 2012.