Having barely digested the first release, then seeing the second one on Dow/Jones, I am trying to piece this together. The Payroll release about "pledging intellectual assets, etc" seems to be saying that they are moving the checkcashing machine out of Mr. Payroll into the Join Agreement with Wells Fargo - am I reading this correct?
In effect they are selling half or a little over half (depending on what the minority interest in the JV is) for some amount of cash. I believe the Wells Fargo investment will be much more than anyone on this board believes. This is very significant but the market may not act until the details are out. I would assume that Wells Fargo wouldn't make a capital investment unless they planned to use the technology in their own banks/atms. The quarter earnings appear to be in line with what was expected. I need to do a little more calculations to determine how the quarter compares to prior year without Mr Payroll losses.
"Cash America International, Inc. (NYSE:PWN - news) announced today that consolidated net earnings for the third quarter ended September 30, 1998, were $2,097,000 (8 cents per share) compared to $3,442,000 (14 cents per share) in the same quarter last year. Results of the Company's wholly owned subsidiary, Mr. Payroll Corporation, decreased consolidated net income by $1.8 million, approximately 7 cents per diluted share, in the third quarter. "
Ok, so 8 cents, plus 7 cents from Mr. Payroll is 15 cents for the quarter. 15 v 14. Look at net income from the lending operations. 298,000 increase over last year to 9.388M vs 9.090M. There's been 15% unit growth and 3% net income growth. Looks to be pretty obvious that same-store sales are WAY off this quarter.