Cash America International, Inc. (NYSE: CSH) ("Cash America") announced the successful completion of the spin-off of Enova International, Inc. ("Enova"), which will begin "regular way" trading today on the New York Stock Exchange ("NYSE") under the ticker symbol "ENVA." Cash America's board of directors began evaluating strategic alternatives for the possible separation of Enova in the spring of 2014, and in July it announced its intent to pursue the spin-off of Enova into a separate public company. The separation creates two companies oriented to serving the capital needs of consumers through distinctively different business models; one through a traditional storefront network and the other solely through the internet. Daniel R. Feehan, Chief Executive Officer and President of Cash America, said, "Today we completed the strategic separation of two businesses in a way that we believe will deliver superior long-term value to the shareholders of Cash America. We acquired the business that is today known as Enova in 2006 when it was a small online lender offering a single product reporting nominal profits. Today, Enova is an innovative diversified online business with over $800 million in revenue, based on the trailing twelve months results ended September 30, 2014. Through the use of advanced analytics and product development, Enova now offers a wide variety of loan products in five foreign countries and the United States." Mr. Feehan continued, "The foundation for the success of Enova was generated through our appreciation for the need for small short-term loans, which started with our traditional legacy storefront business based in the U.S. known as Cash America Pawn. From the end of 2006, the year Cash America acquired Enova, through September of this year, the storefront secured lending business has grown from 487 locations to 948 locations and more than doubled its pawn loan balance outstanding from $127 million to $264 million and remains the largest pawn loan company in the United States in terms of loans outstanding. With a proud history of successfully meeting the needs of its customers in a storefront environment, Cash America will continue to be a leader in its industry and set the standard for others to follow."
At 12:01 a.m. Eastern Time today, each holder of Cash America common stock received shares of Enova common stock at a rate of 0.915 shares for each Cash America share owned as of November 3, 2014, which was the record date for distribution. The distribution was issued in book entry form only and no physical certificates were issued. Fractional shares of Enova were not distributed, and Cash America shareholders will receive cash in lieu of any fractional shares they would otherwise have been entitled to receive in the distribution. Today's distribution of Enova qualifies as a tax-free distribution to shareholders of Cash America.Cash America's common stock will continue to trade on the NYSE under the ticker symbol "CSH." Cash America and Enova now operate as two independent companies. Cash America retains ownership of 20% of Enova following today's distribution. About Cash America As of September 30, 2014 Cash America International, Inc. (the "Company") operated 948 total locations offering specialty financial services to consumers, which included the following:
- 863 lending locations in 21 states in the United States primarily under the names "Cash America Pawn," "SuperPawn," "Cash America Payday Advance," and "Cashland"; and
- 85 check cashing centers (all of which are unconsolidated franchised check cashing centers) operating in 12 states in the United States under the name "Mr. Payroll."