Cash America Announces Fourth Quarter Earnings and Declares Dividend

Cash America International, Inc. (NYSE: CSH) reported today that its fourth quarter ended December 31, 2010 net income attributable to the Company increased to $34,705,000 ($1.10 per share) compared to $33,683,000 ($1.09 per share) for the fourth quarter of 2009. Included in the results for the fourth quarter are approximately $3.2 million ($2.0 million net of tax), of expense items from the closing of locations and related costs at the Company’s Mexico subsidiary, Prenda Fácil, and unusual expenses associated with the abrupt interruption of the MLOC loan product early in the fourth quarter. Excluding these unusual expense items would increase fourth quarter 2010 non-GAAP net earnings of the Company to $36,704,000 ($1.17 per share).

Consolidated total revenue of the Company increased 14% in the fourth quarter of 2010 to $368.8 million, up from $323.7 million in the same period in 2009. Revenue from the Company’s loan products driven by higher balances outstanding contributed the largest portion of the increase. Pawn loan balances ended the period up 16% and the consolidated balances from consumer loans ended the period up 28% contributing to the growth in total revenue during the fourth quarter. Merchandise sales rose 10% in the fourth quarter of 2010 compared to the same period in 2009 adding to the top line revenue growth for the period. Consumer loan fees increased 21%, to $131.8 million in the fourth quarter of 2010 compared to the prior year, as the Company’s E-commerce segment recorded a 33% increase in revenues led by a doubling of revenue in its foreign online lending business.

The Company completed the acquisition of substantially all of the assets of Maxit Financial, LLC ("Maxit”), a 39 store chain of pawn lending locations based in Seattle, Washington, during the fourth quarter of 2010. Expenses associated with the acquisition of approximately $1.3 million ($0.9 million net of tax) were incurred during the fourth quarter, which limited the incremental contribution of these stores to the consolidated results of the Company. These additional expense items are not included in the $3.2 million of charges mentioned in the first paragraph.

Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America said, "While we incurred some unusual expense items during the quarter which restrained the growth in earnings, these items were overshadowed by the significant growth in lending assets during the period. The Company continues to experience success in our foreign online lending activities as loan growth is contributing to revenue expansion. Also, we view the addition of the large chain of pawn lending locations in the Pacific Northwest to be an important strategic asset for many years to come. Both of these items and the growth from our core lending businesses position us well as we enter 2011.”

Cash America finished fiscal year 2010 with a 20% increase in net income, to $115,538,000 ($3.67 per share), compared to $96,678,000 ($3.17 per share) for the same twelve month period of 2009. Total revenue for the fiscal year ended December 31, 2010, increased 15% to $1.29 billion, up from $1.12 billion during the same period in 2009.

Cash America will conduct a conference call to discuss its fourth quarter earnings on Thursday, January 27, 2011, at 7:00 AM CST. 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 February 23, 2011 to shareholders of record on February 9, 2011.

Outlook for the First Quarter of 2011 and the 2011 Fiscal Year

Management believes that the opportunities for sustained growth in revenue and earnings will be largely associated with the customer demand for the credit products provided by the Company, which primarily take the form of pawn loans and short-term consumer loans. Other elements expected to affect the growth in revenue include the potential impact of the regulatory governance of loan products, the continued growth and development of the Mexican pawn operations and the development and expansion of the Company’s online distribution channel. Management believes that demand for its credit products will continue to expand during 2011. First quarter 2011 results could be influenced by the timing of Federal income tax refunds to the Company’s customers. At this point management assumes that refunds will differ from fiscal 2010, when tax refunds were higher from Federal stimulus programs. Based on the preceding factors management believes that the first quarter of 2011 could produce less earnings growth but that the second quarter would then be positioned with higher levels of earning assets to compensate for this event. In addition, the Company will begin 2011 without certain consumer loan markets and the MLOC program which both added incremental profitability in the first quarter of 2010. Therefore, management estimates that the first quarter of fiscal 2011 will be between $1.05 and $1.10 in earnings per share compared to $1.01 in the first quarter of 2010. At this time management confirms its previously reported expectations for its fiscal year 2011 earnings per share to a range of between $4.11 to $4.22 which compares to actual full year 2010 earnings per share of $3.67.

About the Company

As of December 31, 2010, Cash America International, Inc. had 1,081 total locations offering specialty financial services to consumers, which include 779 lending locations (including nine unconsolidated franchised locations) operating in 28 states in the United States under the names "Cash America Pawn,” "SuperPawn,” "Maxit,” "Pawn X-Change,” "Cash America Payday Advance,” and "Cashland,” and 180 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 116 unconsolidated franchised and six Company-owned check cashing centers operating in 17 states in the United States under the name "Mr. Payroll” as of December 31, 2010. Additionally, as of December 31, 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.

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

http://www.cashamerica.com		http://www.quickquid.co.uk
http://www.enovafinancial.com		http://www.dollarsdirect.com.au
http://www.cashnetusa.com		http://www.dollarsdirect.ca
http://www.cashlandloans.com		http://www.goldpromise.com
http://www.primaryinnovations.net		http://www.mrpayroll.com

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 loan, tax and other domestic and foreign 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 online loan 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 locations 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 it 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.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)
	Three Months Ended									Year Ended
	December 31,									December 31,
	2010				2009					2010			2009
Consolidated Operations:
Total revenue	$	368,831			$	323,697			$	1,293,339		$	1,120,390
Net revenue		264,233				228,998				954,583			796,113
Total operating expenses		203,043				170,454				747,451			620,461
Income from operations	$	61,190			$	58,544			$	207,132		$	175,652
Income before income taxes		54,925				53,192				184,513			154,716
Net Income	$	34,801			$	34,144			$	115,244		$	97,936
Net (income) loss attributable to the noncontrolling interest		(96	)			(461	)		$	294		$	(1,258	)
Net Income Attributable to Cash America International, Inc.	$	34,705			$	33,683			$	115,538		$	96,678
Earnings per share:
Net Income attributable to Cash America International, Inc. common shareholders:
Basic	$	1.17			$	1.14			$	3.90		$	3.26
Diluted	$	1.10			$	1.09			$	3.67		$	3.17
Weighted average shares:
Basic		29,759				29,475				29,640			29,639
Diluted		31,655				31,013				31,521			30,503

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
	December 31,
		2010			2009
Assets
Current assets:
Cash and cash equivalents	$	38,324			$	46,004
Pawn loans		218,408				188,312
Consumer loans, net		139,377				108,789
Merchandise held for disposition, net		124,399				113,824
Pawn loan fees and service charges receivable		41,216				36,544
Prepaid expenses and other assets		31,717				32,129
Deferred tax assets		28,016				21,536
Total current assets		621,457				547,138
Property and equipment, net		222,320				193,737
Goodwill		543,324				493,492
Intangible assets, net		31,188				27,793
Other assets		8,124				7,495
Total assets	$	1,426,413			$	1,269,655
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses	$	89,126			$	87,368
Accrued supplemental acquisition payment		-				2,291
Customer deposits		9,146				8,837
Income taxes currently payable		888				8,699
Current portion of long-term debt		24,433				25,493
Total current liabilities		123,593				132,688
Deferred tax liabilities		56,792				42,590
Noncurrent income tax payable		2,408				2,009
Other liabilities		8,618				5,479
Long-term debt		432,271				403,690
Total liabilities	$	623,682			$	586,456
Equity:
Cash America International, Inc. equity:
Common stock, $0.10 par value per share, 80,000,000 shares authorized, 30,235,164 shares issued		3,024				3,024
Additional paid-in capital		165,658				166,761
Retained earnings		644,208				532,805
Accumulated other comprehensive income		4,797				1,181
Treasury shares, at cost (685,315 shares and 933,082 shares at December 31, 2010 and 2009, respectively)		(21,283	)			(26,836	)
Total Cash America International, Inc. shareholders' equity		796,404				676,935
Noncontrolling interest		6,327				6,264
Total equity		802,731				683,199
Total liabilities and equity	$	1,426,413			$	1,269,655

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited)
		Three Months Ended								Year Ended
		December 31,								December 31,
			2010				2009				2010				2009
Revenue
Pawn loan fees and service charges		$	71,558			$	64,019			$	253,314			$	231,178
Proceeds from disposition of merchandise			162,147				148,017				534,878				502,736
Consumer loan fees			131,773				108,737				490,952				371,856
Other			3,353				2,924				14,195				14,620
Total Revenue			368,831				323,697				1,293,339				1,120,390
Cost of Revenue
Disposed merchandise			104,598				94,699				338,756				324,277
Net Revenue			264,233				228,998				954,583				796,113
Expenses
Operations			115,355				98,843				419,616				360,127
Consumer loan loss provision			52,431				39,174				182,394				130,816
Administration			22,685				21,801				101,518				87,929
Depreciation and amortization			12,572				10,636				43,923				41,589
Total Expenses			203,043				170,454				747,451				620,461
Income from Operations			61,190				58,544				207,132				175,652
Interest expense			(5,835	)			(5,216	)			(22,345	)			(20,807	)
Interest income			8				3				325				29
Foreign currency transaction loss			(363	)			(139	)			(463	)			(158	)
Equity in loss of unconsolidated subsidiary			(75	)			-				(136	)			-
Income before Income Taxes			54,925				53,192				184,513				154,716
Provision for income taxes			20,124				19,048				69,269				56,780
Net Income			34,801				34,144				115,244				97,936
Less: Net (income) loss attributable to the noncontrolling interest			(96	)			(461	)			294				(1,258	)
Net Income Attributable to Cash America International, Inc.		$	34,705			$	33,683			$	115,538			$	96,678
Earnings Per Share:
Net Income attributable to Cash America International, Inc. common shareholders:
Basic		$	1.17			$	1.14			$	3.90			$	3.26
Diluted		$	1.10			$	1.09			$	3.67			$	3.17
Weighted average common shares outstanding:
Basic			29,759				29,475				29,640				29,639
Diluted			31,655				31,013				31,521				30,503
Dividends declared per common share		$	0.035			$	0.035			$	0.140			$	0.140

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES PAWN LENDING ACTIVITIES – FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)
The following table outlines certain data related to the Company’s pawn loan activities as of and for the three months and years ended December 31, 2010 and 2009.
	As of December 31,
	2010															2009
	Domestic				Foreign						Total					Domestic					Foreign					Total
Ending pawn loan balances	$	197,301			$	21,107					$	218,408				$	164,327				$	23,985				$	188,312
Ending merchandise balance, net	$	124,399			$	-			(a)		$	124,399				$	113,824				$	-			(a)	$	113,824
	Three Months Ended December 31,
	2010															2009
	Domestic				Foreign						Total					Domestic					Foreign					Total
Pawn loan fees and service charges	$	62,755			$	8,803					$	71,558				$	54,607				$	9,412				$	64,019
Average pawn loan balance outstanding	$	190,642			$	21,246					$	211,888				$	165,030				$	24,187				$	189,217
Amount of pawn loans written and renewed	$	197,874			$	23,348					$	221,222				$	161,363				$	33,794				$	195,157
Annualized yield on pawn loans		130.6	%			164.4	%					134.0	%				131.3	%				154.4	%				134.2	%
Gross profit margin on disposition of merchandise		35.5	%			-			(a)			35.5	%				36.0	%				-			(a)		36.0	%
Merchandise turnover		3.2				-			(a)			3.2					3.2					-			(a)		3.2
	Year Ended December 31,
	2010															2009
	Domestic				Foreign						Total					Domestic					Foreign					Total
Pawn loan fees and service charges	$	221,335			$	31,979					$	253,314				$	200,904				$	30,274				$	231,178
Average pawn loan balance outstanding	$	166,163			$	22,111					$	188,274				$	152,800				$	20,250				$	173,050
Amount of pawn loans written and renewed	$	689,476			$	89,746					$	779,222				$	629,196				$	106,569				$	735,765
Annualized yield on pawn loans		133.2	%			144.6	%					134.5	%				131.5	%				149.6	%				133.6	%
Gross profit margin on disposition of merchandise		36.7	%			-			(a)			36.7	%				35.5	%				-			(a)		35.5	%
Merchandise turnover		3.0				-			(a)			3.0					2.9					-			(a)		2.9

(a)	With respect to the Company’s foreign pawn lending activities, collateral underlying unredeemed pawn loans is not owned by the Company; therefore, proceeds from disposition are recorded as pawn loan fees and service charges in the Company’s consolidated statements of operations.

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 months and years ended December 31, 2010 and 2009.
	Three Months Ended December 31,
	2010												2009
		Retail				Commercial				Total				Retail				Commercial				Total
Proceeds from disposition	$	91,548			$	70,599			$	162,147			$	80,625			$	67,392			$	148,017
Gross profit on disposition	$	35,710			$	21,839			$	57,549			$	31,408			$	21,910			$	53,318
Gross profit margin		39.0	%			30.9	%			35.5	%			39.0	%			32.5	%			36.0	%
Percentage of total gross profit		62.1	%			37.9	%			100.0	%			58.9	%			41.1	%			100.0	%
	Year Ended December 31,
	2010												2009
		Retail				Commercial				Total				Retail				Commercial				Total
Proceeds from disposition	$	306,300			$	228,578			$	534,878			$	283,208			$	219,528			$	502,736
Gross profit on disposition	$	121,819			$	74,303			$	196,122			$	112,417			$	66,042			$	178,459
Gross profit margin		39.8	%			32.5	%			36.7	%			39.7	%			30.1	%			35.5	%
Percentage of total gross profit		62.1	%			37.9	%			100.0	%			63.0	%			37.0	%			100.0	%

The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.7 million at December 31, 2010 and 2009 (dollars in thousands).
		Balance at December 31,
		2010						2009
			Amount		%				Amount		%
Merchandise held for one year or less –
Jewelry		$	79,566		63.6			$	70,834		61.9
Other merchandise			39,809		31.8				35,328		30.8
Total merchandise held for one year or less			119,375		95.4				106,162		92.7
Merchandise held for more than one year –
Jewelry			2,685		2.2				4,938		4.3
Other merchandise			3,039		2.4				3,424		3.0
Total merchandise held for more than one year			5,724		4.6				8,362		7.3
Total merchandise held for disposition		$	125,099		100.0			$	114,524		100.0

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)
The following table sets forth consumer loan fees by channel and segment, adjusted for the deduction of the loan loss provision for the three months and years ended December 31, 2010 and 2009 (dollars in thousands):
		Three Months Ended December 31,
		2010																						2009
		Retail Services Segment				Internet Lending				MLOC				Total E-Commerce Segment					Total Company					Retail Services Segment					Internet Lending				MLOC				Total E-Commerce Segment					Total Company
Consumer Loan Fees		$	30,397			$	99,302			$	2,074			$	101,376				$	131,773				$	32,336				$	70,907			$	5,494			$	76,401				$	108,737
Loan Loss Provision			4,466				45,368				2,597				47,965					52,431					6,010					31,389				1,775				33,164					39,174
Loss Adjusted Consumer Loan Fees		$	25,931			$	53,934			$	(523	)		$	53,411				$	79,342				$	26,326				$	39,518			$	3,719			$	43,237				$	69,563
Year over year change - $		$	(395	)		$	14,416			$	(4,242	)		$	10,174				$	9,779				$	3,150				$	11,277			$	3,049			$	14,326				$	17,476
Year over year change - %			(1.5	)%			36.5	%			(114.1	)%			23.5	%				14.1	%				13.6	%				39.9	%			455.1	%			49.6	%				33.6	%
Loan loss provision as % of consumer loan fees			14.7	%			45.7	%			125.2	%			47.3	%				39.8	%				18.6	%				44.3	%			32.3	%			43.4	%				36.0	%
		Year Ended December 31,
		2010																						2009
		Retail Services Segment				Internet Lending				MLOC				Total E-Commerce Segment					Total Company					Retail Services Segment					Internet Lending				MLOC				Total E-Commerce Segment					Total Company
Consumer Loan Fees		$	113,973			$	349,336			$	27,643			$	376,979				$	490,952				$	117,997				$	241,268			$	12,591			$	253,859				$	371,856
Loan Loss Provision			17,437				151,716				13,241				164,957					182,394					21,642					104,454				4,720				109,174					130,816
Loss Adjusted Consumer Loan Fees		$	96,536			$	197,620			$	14,402			$	212,022				$	308,558				$	96,355				$	136,814			$	7,871			$	144,685				$	241,040
Year over year change - $		$	181			$	60,806			$	6,531			$	67,337				$	67,518				$	(11,226	)			$	21,684			$	6,702			$	28,386				$	17,160
Year over year change - %			0.2	%			44.4	%			83.0	%			46.5	%				28.0	%				(10.4	)%				18.8	%			573.3	%			24.4	%				7.7	%
Loan loss provision as % of consumer loan fees			15.3	%			43.4	%			47.9	%			43.8	%				37.2	%				18.3	%				43.3	%			37.5	%			43.0	%				35.2	%

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)
In addition to reporting financial results in accordance with generally accepted accounting principles ("GAAP”) in the United States, the Company has provided combined consumer loans and combined consumer loans written, which are non-GAAP measures.  Combined consumer loans and combined consumer loans written include (i) consumer loans written by the Company, which are GAAP measures, (ii) consumer loans written by third-party lenders through the CSO program, which are non-GAAP measures and (iii) the Company's participation interests in consumer loans written by a third-party lender’s micro line of credit (" MLOC”) product, which are GAAP measures.
Management believes these measures are useful in evaluating the consumer loan portfolio on an aggregate basis, including its evaluation of the loss provision for the Company-owned portfolio and third-party lender-owned portfolios that the Company guarantees.  The following table summarizes selected data related to the Company’s consumer loan activities as of December 31, 2010 and 2009 and for the three months and years ended December 31, 2010 and 2009.
		As of December 31,
		2010												2009
		Company Owned(a)				Guaranteed by the Company(b)				Combined(b)				Company Owned(a)				Guaranteed by the Company(b)				Combined(b)
Ending consumer loan balances:
Retail Services		$	51,953			$	9,819			$	61,772			$	51,986			$	11,688			$	63,674
Internet Lending			124,867				38,949				163,816				72,600				38,174				110,774
MLOC			1,510				-				1,510				11,553				-				11,553
Total ending loan balance, gross		$	178,330			$	48,768			$	227,098			$	136,139			$	49,862			$	186,001
Less: Allowance for losses			(38,953	)			(2,838	)			(41,791	)			(27,350	)			(2,944	)			(30,294	)
Total ending loan balance, net		$	139,377			$	45,930			$	185,307			$	108,789			$	46,918			$	155,707
		Three Months Ended December 31,
		2010												2009
		Company Owned(a)				Guaranteed by the Company(b)				Total(b)				Company Owned(a)				Guaranteed by the Company(b)				Total(b)
Amount of consumer loans written:
Retail Services		$	192,135			$	51,067			$	243,202			$	202,127			$	60,351			$	262,478
Internet Lending			273,189				193,223				466,412				186,783				195,940				382,723
MLOC			14,636				-				14,636				57,947				-				57,947
Total consumer loans written		$	479,960			$	244,290			$	724,250			$	446,857			$	256,291			$	703,148
Average amount per consumer loan:
Retail Services		$	445			$	567			$	466			$	436			$	565			$	460
Internet Lending			434				673				509				405				686				513
MLOC			198				-				198				170				-				170
Combined		$	423			$	648			$	479			$	353			$	653			$	424
(a) GAAP measure.
(b) Non-GAAP measure.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)
			Year Ended December 31,
			2010																	2009
			Company Owned(a)				Guaranteed by the Company(b)					Combined(b)								Company Owned(a)						Guaranteed by the Company(b)				Combined(b)
Amount of consumer loans written:
Retail Services			$	703,161			$	199,155				$			902,316					$	706,066					$	220,650			$	926,716
Internet Lending				911,002				806,749							1,717,751						696,821						581,740				1,278,561
MLOC				289,009				-							289,009						126,457						-				126,457
Total consumer loans written			$	1,903,172			$	1,005,904				$			2,909,076					$	1,529,344					$	802,390			$	2,331,734
Average amount per consumer loan:
Retail Services			$	438			$	574				$			462					$	431					$	560			$	456
Internet Lending				418				679							510						403						704				500
MLOC				197				-							197						157						-				157
Combined			$	363			$	655				$			429					$	366					$	658			$	432
(a)	GAAP measure.
(b)	Non-GAAP measure.
							Three Months Ended												Year Ended
							December 31,												December 31,
							2010						2009						2010					2009
Allowance for losses for Company-owned consumer loans:
Balance at beginning of period							$	45,586					$	24,688					$	27,350				$	21,495
Consumer loan loss provision								52,383						39,046						182,500					130,007
Charge-offs								(65,843	)					(42,405		)				(197,611		)			(144,295			)
Recoveries								6,827						6,021						26,714					20,143
Balance at end of period							$	38,953					$	27,350					$	38,953				$	27,350
Accrual for third-party lender-owned consumer loans:
Balance at beginning of period							$	2,790					$	2,816					$	2,944				$	2,135
Increase (decrease) in loss provision								48						128						(106		)			809
Balance at end of period							$	2,838					$	2,944					$	2,838				$	2,944
Consumer loan loss provision as a % of combined consumer loans written (a)								7.2	%					5.6		%				6.3		%			5.6			%
Charge-offs (net of recoveries) as a % of combined consumer loans written (a)								8.1	%					5.2		%				5.9		%			5.3			%
Combined consumer loan loss provision as a % of consumer loan fees (a)								39.8	%					36.0		%				37.2		%			35.2			%
(a) Non-GAAP measure.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT (in thousands)
The following tables set forth income from operations for the Company’s operating segments, which are retail services and e-commerce, as of and for the three months and years ended December 31, 2010 and 2009.
				Retail Services(a)									E-Commerce(b)
				Domestic			Foreign			Total			Domestic			Foreign			Total			Consolidated
Three Months Ended December 31, 2010
Revenue
Pawn loan fees and service charges			$	62,755		$	8,803		$	71,558		$	-		$	-		$	-		$	71,558
Proceeds from disposition of merchandise				162,147			-			162,147			-			-			-			162,147
Consumer loan fees				30,397			-			30,397			67,402			33,974			101,376			131,773
Other				2,647			162			2,809			465			79			544			3,353
Total revenue				257,946			8,965			266,911			67,867			34,053			101,920			368,831
Cost of revenue – disposed merchandise				104,598			-			104,598			-			-			-			104,598
Net revenue				153,348			8,965			162,313			67,867			34,053			101,920			264,233
Expenses
Operations				81,829			4,709			86,538			18,421			10,396			28,817			115,355
Consumer loan loss provision				4,466			-			4,466			30,934			17,031			47,965			52,431
Administration				9,437			1,795			11,232			8,144			3,309			11,453			22,685
Depreciation and amortization				8,301			1,847			10,148			2,348			76			2,424			12,572
Total expenses				104,033			8,351			112,384			59,847			30,812			90,659			203,043
Income from operations			$	49,315		$	614		$	49,929		$	8,020		$	3,241		$	11,261		$	61,190
As of December 31, 2010
Total assets			$	928,923		$	123,044		$	1,051,967		$	312,642		$	61,804		$	374,446		$	1,426,413
Goodwill									$	333,042								$	210,282		$	543,324
				Retail Services(a)									E-Commerce(b)
				Domestic			Foreign			Total			Domestic			Foreign			Total			Consolidated
Three Months Ended December 31, 2009
Revenue
Pawn loan fees and service charges			$	54,607		$	9,412		$	64,019		$	-		$	-		$	-		$	64,019
Proceeds from disposition of merchandise				148,017			-			148,017			-			-			-			148,017
Consumer loan fees				32,336			-			32,336			60,909			15,492			76,401			108,737
Other				2,622			80			2,702			222			-			222			2,924
Total revenue				237,582			9,492			247,074			61,131			15,492			76,623			323,697
Cost of revenue – disposed merchandise				94,699			-			94,699			-			-			-			94,699
Net revenue				142,883			9,492			152,375			61,131			15,492			76,623			228,998
Expenses
Operations				74,111			3,975			78,086			15,961			4,796			20,757			98,843
Consumer loan loss provision				6,010			-			6,010			25,748			7,416			33,164			39,174
Administration				10,382			1,945			12,327			8,329			1,145			9,474			21,801
Depreciation and amortization				7,701			1,134			8,835			1,781			20			1,801			10,636
Total expenses				98,204			7,054			105,258			51,819			13,377			65,196			170,454
Income from operations			$	44,679		$	2,438		$	47,117		$	9,312		$	2,115		$	11,427		$	58,544
As of December 31, 2009
Total assets			$	815,518		$	118,478		$	933,996		$	307,336		$	28,323		$	335,659		$	1,269,655
Goodwill									$	296,409								$	197,083		$	493,492

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT (in thousands)
				Retail Services(a)									E-Commerce(b)
				Domestic			Foreign			Total			Domestic			Foreign			Total			Consolidated
Year Ended December 31, 2010
Revenue
Pawn loan fees and service charges			$	221,335		$	31,979		$	253,314		$	-		$	-		$	-		$	253,314
Proceeds from disposition of merchandise				534,878			-			534,878			-			-			-			534,878
Consumer loan fees				113,973			-			113,973			275,036			101,943			376,979			490,952
Other				12,554			303			12,857			1,259			79			1,338			14,195
Total revenue				882,740			32,282			915,022			276,295			102,022			378,317			1,293,339
Cost of revenue – disposed merchandise				338,756			-			338,756			-			-			-			338,756
Net revenue				543,984			32,282			576,266			276,295			102,022			378,317			954,583
Expenses
Operations				301,399			17,195			318,594			68,541			32,481			101,022			419,616
Consumer loan loss provision				17,437			-			17,437			116,246			48,711			164,957			182,394
Administration				44,008			8,100			52,108			37,077			12,333			49,410			101,518
Depreciation and amortization				29,839			5,525			35,364			8,283			276			8,559			43,923
Total expenses				392,683			30,820			423,503			230,147			93,801			323,948			747,451
Income from operations			$	151,301		$	1,462		$	152,763		$	46,148		$	8,221		$	54,369		$	207,132
As of December 31, 2010
Total assets			$	928,923		$	123,044		$	1,051,967		$	312,642		$	61,804		$	374,446		$	1,426,413
Goodwill									$	333,042								$	210,282		$	543,324
				Retail Services(a)									E-Commerce(b)
				Domestic			Foreign			Total			Domestic			Foreign			Total			Consolidated
Year Ended December 31, 2009
Revenue
Pawn loan fees and service charges			$	200,904		$	30,274		$	231,178		$	-		$	-		$	-		$	231,178
Proceeds from disposition of merchandise				502,736			-			502,736			-			-			-			502,736
Consumer loan fees				117,997			-			117,997			213,361			40,498			253,859			371,856
Other				13,093			409			13,502			1,118			-			1,118			14,620
Total revenue				834,730			30,683			865,413			214,479			40,498			254,977			1,120,390
Cost of revenue – disposed merchandise				324,277			-			324,277			-			-			-			324,277
Net revenue				510,453			30,683			541,136			214,479			40,498			254,977			796,113
Expenses
Operations				283,903			12,644			296,547			49,410			14,170			63,580			360,127
Consumer loan loss provision				21,642			-			21,642			89,577			19,597			109,174			130,816
Administration				45,847			6,878			52,725			31,386			3,818			35,204			87,929
Depreciation and amortization				30,461			3,831			34,292			7,250			47			7,297			41,589
Total expenses				381,853			23,353			405,206			177,623			37,632			215,255			620,461
Income from operations			$	128,600		$	7,330		$	135,930		$	36,856		$	2,866		$	39,722		$	175,652
As of December 31, 2009
Total assets			$	815,518		$	118,478		$	933,996		$	307,336		$	28,323		$	335,659		$	1,269,655
Goodwill									$	296,409								$	197,083		$	493,492
(a) The retail services segment is composed of the Company’s domestic and foreign storefront operations.
(b) The e-commerce segment is composed of the Company’s online channel, which has domestic and foreign operations, and the Company’s MLOC services channel.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES ADJUSTED EARNINGS PER SHARE
Adjusted Earnings Per Share            In addition to reporting financial results in accordance with GAAP, the Company has provided adjusted earnings and adjusted earnings per share, which are non-GAAP measures.  Management believes these measures are useful to help investors better understand the Company’s financial performance, competitive position and prospects for the future.  These non-GAAP measures are used by management in evaluating the Company’s results of operations.   The following table provides reconciliation between net income attributable to the Company and diluted earnings per share calculated in accordance with GAAP to adjusted earnings and adjusted earnings per share, respectively (dollars in thousands except per share data):
		Three Months Ended December 31,															Year Ended December 31,
			2010								2009						2010								2009
As reported net income(a)		$	34,705			$	1.10			$	33,683			$	1.09		$	115,538			$	3.67			$	96,678			$	3.17
Adjustments:
Intangible asset amortization, net of tax			933				0.03				850				0.03			2,993				0.09				3,805				0.12
Non-cash equity-based compensation, net of tax			608				0.02				551				0.02			2,384				0.08				2,032				0.07
Convertible debt non-cash interest and amortization of issuance costs, net of tax			542				0.01				514				0.02			2,088				0.06				1,238				0.04
Foreign exchange loss, net of tax			230				0.01				89				-			289				0.01				100				-
Adjusted earnings		$	37,018			$	1.17			$	35,687			$	1.16		$	123,292			$	3.91			$	103,853			$	3.40
(a) Includes certain expenses related to the interruption of the MLOC loan product and the closure of retail services locations in Mexico incurred by the Company during the three months and year ended December 31, 2010. The table below provides a reconciliation of as reported net income attributable to the Company (in the table above) by line item as reported in the consolidated statements of income, to Non-GAAP net earnings of the Company.
		Three Months Ended																Year Ended
		December 31, 2010																December 31, 2010
			MLOC				Foreign Retail Services				Total							MLOC				Foreign Retail Services				Total
As reported net income										$	34,705														$	115,538
Operating expenses		$	250			$	300				550						$	250			$	422				672
Consumer loan loss provision			2,100				-				2,100							2,100				-				2,100
Depreciation expense			-				503				503							-				503				503
Income tax provision			(860	)			(294	)			(1,154	)						(881	)			(347	)			(1,228	)
Total adjustments		$	1,490			$	509			$	1,999						$	1,469			$	578			$	2,047
Non-GAAP net earnings of the Company										$	36,704														$	117,585
Earnings per share, as reported										$	1.10														$	3.67
Non-GAAP Adjustments		$	0.05			$	0.02			$	0.07						$	0.05			$	0.02			$	0.07
Non-GAAP earnings per share of the Company										$	1.17														$	3.74

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES LOCATION INFORMATION
Retail Services Segment
The following table sets forth the number of domestic and foreign locations in the Company’s retail services segment offering pawn lending, consumer lending, and other services as of December 31, 2010 and 2009.
		As of December 31,
		2010						2009
		Domestic(a)(b)		Foreign(c)(d)		Total		Domestic(a)		Foreign(c)		Total
Retail services locations offering:
Both pawn and consumer lending (e)		567		-		567		584		-		584
Pawn lending only		124		180		304		66		176		242
Consumer lending only		88		-		88		96		-		96
Other (f)		122		-		122		126		-		126
Total retail services		901		180		1,081		872		176		1,048

(a)		Except as noted in footnote (f) below, includes locations that operate under the names "Cash America Pawn,” "SuperPawn,” "Cash America Payday Advance,” "Cashland,” "Maxit” and "Pawn X-Change.”
(b)		Except as noted in footnote (f) below, includes locations that operate in 28 states in the United States.
(c)		Includes locations that operate in central and southern Mexico under the name "Prenda Fácil,” of which the Company is a majority owner.
(d)		Includes locations that operate in 21 jurisdictions in Mexico.
(e)		As of December 31, 2010 and 2009, includes 425 and 434 locations, respectively, that primarily engage in pawn lending activities (of which nine are unconsolidated franchised pawn lending locations) and 142 and 150 locations, respectively, that primarily engage in consumer loan activities.
(f)		Includes check cashing locations operating in the United States under the name "Mr. Payroll.” As of December 31, 2010, includes six consolidated Company-owned check cashing locations operating in one state and 116 unconsolidated franchised locations operating in 17 states.

E-Commerce Segment

As of December 31, 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,
• in Canada at http://www.dollarsdirect.ca, and
• MLOC - The e-commerce segment also includes the Company’s MLOC services channel, which processed MLOC advances on behalf of a third-party lender during 2010 and had a participation interest in MLOC receivables that were outstanding in all 50 states and two other U.S. jurisdictions during the year ended December 31, 2010. The MLOC services channel has most recently generated its earnings through loan processing services the Company provided for MetaBank related to the iAdvance MLOC product the bank made available on certain stored-value debit cards the bank issues, as well as from fees generated from participation interests the Company acquired in the receivables originated by the bank in connection with the iAdvance program. MetaBank has announced that it discontinued offering its iAdvance program as of October 13, 2010.

CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES OTHER FINANCIAL DATA
Earnings before interest, taxes, depreciation and amortization ("EBITDA”) is a non-GAAP measure that is commonly used by investors to assess a company's leverage capacity, liquidity and financial performance. The following table provides a reconciliation of net income attributable to the Company calculated in accordance with GAAP to EBITDA (dollars in thousands):
		Year Ended
		December 31,
		2010				2009
Net Income attributable to Cash America International Inc.			$	115,538			$	96,678
Adjustments:
Provision for income taxes				69,269				56,780
Depreciation expenses				39,134				35,578
Amortization expenses				4,789				6,011
Interest expense, net				22,020				20,778
Earnings from continuing operations before interest, taxes, depreciation and amortization			$	250,750			$	215,825
EBITDA margin calculated as follows:
Net revenue			$	954,583			$	796,113
Earnings from continuing operations before interest, taxes, depreciation and amortization				250,750				215,825
EBITDA as a percentage of net revenue				26.3%				27.1%

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.