Cash America Sees Q2 EPS Of About $0.81 - Quick Facts

(RTTNews) - Cash America International Inc. (CSH) said it expects earnings per share to be around $0.81 for the second quarter. The firm's results would fall about 11% below the low end of its anticipated earnings per share range for the second quarter published April 25, 2013.

According to Cash America, the shortfall from estimated results is chiefly attributable to lower demand for the loan products of the Domestic Retail Services Segment and higher expenses for health insurance, personnel costs and the additional interest expense associated with the $300 million senior note offering which closed in early May. The extra interest cost was excluded in the earnings view provided earlier for the second quarter. Growth in the company's E-commerce unit and the disposition activities of the Retail Services Segment were in line with view, yet the U.S. pawn lending business has not experienced as much of a rebound in demand for both pawn and consumer loans as the guidance had anticipated.

Therefore, the net revenue associated with these products was below view. Cash America believes that pawn customers continue to act with caution in their borrowing and spending activities consistent with the de-leveraging underway for the broader base of U.S. consumers. This trend, which was first observed by the company in the second quarter of 2012, would likely continue through the balance of 2013.