Cash America International (CSH) Q2 2012 Earnings Call July 26, 2012 8:00 am ET Executives Daniel R. Feehan - Chief Executive Officer, President and Director Thomas A. Bessant - Chief Financial Officer, Principal Accounting Officer and Executive Vice President Analysts John Hecht - Stephens Inc., Research Division Bill Carcache - Nomura Securities Co. Ltd., Research Division John J. Rowan - Sidoti & Company, LLC Daniel Furtado - Jefferies & Company, Inc., Research Division Henry J. Coffey - Sterne Agee & Leach Inc., Research Division William R. Armstrong - CL King & Associates, Inc. Bob Ramsey - FBR Capital Markets & Co., Research Division Sameer Gokhale - Janney Montgomery Scott LLC, Research Division R. Gregg Hillman Presentation Operator
I also want to mention before we proceed that a reconciliation of any non-GAAP information provided on this call to the most directly comparable GAAP information is available on the Investor Relations section of our website at www.cashamerica.com. Non-GAAP financial information is not meant as a substitute for GAAP results but is included solely for informational and comparative purposes.Now with that out of the way, we can proceed with our prepared remarks. We issued 2 press releases earlier this morning: the first reporting our board's decision, which was made yesterday, to withdraw the registration statement on Form S-1 for the proposed initial public offering of our wholly owned subsidiary Enova International, Inc.; and the second release reporting our financial results for the quarter and year-to-date period ended June 30. I will provide my thoughts on both. Regarding the withdrawal of Enova's registration statement, I'll remind you that we first filed the registration statement with the SEC in September of last year for the proposed initial public offering of common stock of Enova which is the subsidiary comprising our e-commerce segment. The registration statement has been amended several times since the initial filing in order to update the financial information and to revise other disclosures, including updating the offering size. Throughout this process and with the help of our investment bankers, our board has been constantly assessing the IPO market condition to find a window of opportunity to launch the IPO of Enova at an attractive valuation. Since the initial filing, the IPO market has proven to be extraordinarily volatile by historical standards, which in turn has provided investors with significant leverage over issuers, and that leverage imbalance has driven IPO discounts to unacceptably high levels, in our opinion. Additionally, during this likely period since September of last year, we've been unable to speak openly about the business prospects of our e-commerce segment due to the SEC regulations that prohibit such discussions during the registration process. The same regulations have also restricted our ability to provide earnings guidance for the full Cash America enterprise.
Now obviously no one's got a crystal ball, but it is our board's current judgment that the volatility in the IPO market is not likely to abate anytime soon, particularly given the ongoing turmoil in the European Union and the uncertainties about U.S. fiscal and tax policy following the elections in November. Now, as clearly, the board has concluded that we should withdraw the registration statement at this time, which will allow management to freely and to openly and transparently communicate about our entire business. We will also be resuming our practice of providing earnings guidance, which Tom will discuss in his remarks.The registration statement was not yet to be declared effective by the SEC and no securities were sold, pursuant to the registration statement. Not -- Enova filed this application for withdrawal of the registration statement with the SEC after the market closed yesterday afternoon. At this point, I can tell you that our board is very happy continuing to operate Enova as a wholly owned sub of Cash America International. This e-commerce segment of our business continues to grow at very impressive rates as it expands internationally and deploys innovative new consumer credit products in the U.S., and we all continue to believe the business has an exciting future. Now we did acknowledge in the original registration statement that we wanted to establish a market value of Enova that was independent from the market value of Cash America's common stock and provide Enova the opportunity to focus singularly on its business strategies while the balance of the Cash America organization focus on its strategy of expanding the storefront business of our retail services segment. And while this objective may still remain valid, I can confirm you -- confirm for you that we have never been irrevocably committed to the carve-out of Enova. However, we are committed to doing what is in the best interest of our shareholders. And we will continue to assess the viability of a potential carve-out in the future as part of the capital planning and market assessment reviews that we do on a routine basis.
Now moving onto the second press release regarding our financial results for the quarter, you can see that we reported consolidated revenue growth of 19% and EPS growth of 12% for the quarter. Consolidated earnings per share for the quarter were $0.94 versus $0.84 last year and a consensus analyst estimate of $0.96.Read the rest of this transcript for free on seekingalpha.com