Cash America 2015 Annual Report Download - page 57

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YEAR ENDED DECEMBER 31, 2014 COMPARED TO YEAR ENDED DECEMBER 31, 2013
Pawn Lending Activities
On a consolidated basis, the average balance of pawn loans outstanding increased $13.6 million, or 5.7%, in
2014 compared to 2013 and included a $1.7 million decrease in the average balance outstanding related to the
Company’s Mexico-based pawn operations, which were sold in August 2014. In addition, pawn loan fees and
services charges increased $17.6 million, or 5.6%, in 2014 compared to 2013 and included a decrease of
$2.3millionrelatedtotheCompany’sMexico-basedpawnoperations.
The following table sets forth selected data related to the Company’s pawn lending activities, excluding the
Company’sMexico-basedpawnoperations,asofandfortheyearsendedDecember31,2014and2013(dollarsin
thousands except where otherwise noted):
Year Ended December 31,
Domestic pawn operations 2014 (a) 2013 (a) Change % Change
Pawn loan fees and service charges $ 324,337 $ 304,511 $ 19,826 6.5 %
Ending pawn loans outstanding (as of December 31,) $ 252,168 $ 256,772 $ (4,604) (1.8)%
Average pawn loans outstanding $ 248,452 $ 233,166 $ 15,286 6.6 %
Amount of pawn loans written and renewed $ 1,032,923 $ 958,542 $ 74,381 7.8 %
Average amount per pawn loan (in ones) $ 125 $ 127 $ (2) —
Annual yield on pawn loans 130.5%130.6%
(a) Excludes amounts related to the Company’s Mexico-based pawn operations, which were sold in August 2014. For the years ended
December 31, 2014 and 2013, Mexico-based pawn operations had pawn loan fees and service charges of $5,031 and $7,288, an average
pawn loan balance outstanding of $3,243 ($5,347 for the year-to-date period ended on the date of sale in August 2014) and $4,943, pawn
loans written and renewed of $38,837 and $56,120, an average amount per pawn loan of $87 and $87, and an annualized yield on pawn
loans of 144.9% and 147.4%, respectively.
Averagedomesticpawnloanbalancesincreasedin2014comparedto2013by$15.3million,or6.6%,
primarily due to acquisitions that occurred in the second half of 2013. This increase in average domestic pawn loan
balances was the primary driver of the increase in domestic pawn loan fees and service chargesof$19.8million,or
6.5%, in 2014 compared to 2013.
Pawnloanbalancesdecreased$4.6million,or1.8%,asofDecember31,2014comparedtoDecember31,
2013, primarily due to lower demand for pawn loans during the fourth quarter of 2014. Same-store domestic pawn
loan balances were 1.2% lower as of December 31, 2014 compared to December 31, 2013. Management believes
that the significant decline in gasoline prices in the fourth quarter of 2014 contributed to the decrease in demand for
pawn loans.
Merchandise Sales Activities
Proceeds From Disposition of Merchandise
Onaconsolidatedbasis,proceedsfromdispositionincreased$64.6million,or10.8%,in2014comparedto
2013.Grossprofitondispositionincreased$1.0million,or0.6%,in2014comparedto2013.
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