Cash America shares traded up about 10 percent Thursday after the Fort Worth-based pawn shop chain boosted its dividend by 60 percent after a strong earnings report.
Net income increased to $12.6 million, or 49 cents a share, in the fourth quarter, compared to $7.5 million, or 26 cents, a year ago. Revenue was off slightly, to $151.1 million from $151.7 million. Income from operations increased by 36 percent, to $22.2 million.
Cash America’s board of directors increased the cash dividend to 8 cents per share on common stock, from the previous quarterly dividend of 5 cents per share. The dividend is payable Feb. 24 to shareholders of record on Feb. 10.
T. Brent Stuart, Cash America’s president and chief executive officer, said the results reflect the company’s new emphasis in-store retail sales. “I was pleased we were able to achieve an increase in year-over-year same store retail sales of 4 percent during the quarter that were at higher retail gross profit margins than last year’s fourth quarter,” he said.
Cash America stock (ticker: CSH) was up $3.04 at $31.81 by mid-afternoon.