Cash America 2015 Annual Report Download - page 6

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PART I
ITEM 1. BUSINESS
Overview
General
Cash America International, Inc. and its subsidiaries (collectively, the “Company”) provide specialty
financial services to individuals in the United States through its storefront lending locations and franchised check
cashing centers. The Company has one reportable operating segment. The Company was incorporated in Texas in
1984 and has been providing specialty financial services to its customers for over 30 years. The Company believes
it was one of the largest providers of pawn loans in the world in 2015 based on the amount of loans outstanding to
its customers. A general overview of the Company’s products and services is included below. See “Services Offered
by the Company” for additional details regarding these products and services.
Unless stated otherwise, the discussion of the Company’s business and financial information throughout
this Annual Report refers to the Company’s continuing operations and results from continuing operations. See
“Enova Spin-off” for more information on continuing and discontinued operations.
Pawn Lending
The Company offers secured non-recourse loans, commonly referred to as pawn loans, as its primary line of
business. Pawn loans are short-term loans made on the pledge of tangible personal property. Pawn loan fees and
service charges are generated from the Company’s pawn loan portfolio. In relation to its pawn lending operations,
the Company also disposes of collateral from unredeemed pawn loans and liquidates a smaller volume of
merchandise purchased directly from customers or from third parties. The Company also offered pawn loans in
Mexico until the sale of its Mexico-based operations in August 2014. Pawn-related total revenue accounted for
91%, 90% and 88% of consolidated total revenue for the years ended December 31, 2015, 2014 and 2013,
respectively.
Consumer Loan Activities
Another component of the Company's business is originating, arranging, guaranteeing or purchasing
consumer loans in some of its locations. Consumer loans provide customers with cash, typically in exchange for an
obligation to repay the amount advanced plus fees and any applicable interest. Consumer loans that the Company
offers include short-term loans (commonly referred to as payday loans) and installment loans. Consumer loan total
revenue accounted for 8%, 9% and 11% of consolidated total revenue for the years ended December 31, 2015, 2014
and 2013, respectively.
Short-term consumer loan products that the Company offers include unsecured short-term loans written by
the Company or by a third-party lender through the Company’s credit services organization and credit access
business programs (“CSO programs”). Installment consumer loans are longer-term, multi-payment loans that
require the pay-down of the outstanding principal balance in multiple installments. Installment loan products that
the Company offers are unsecured and can either be written by the Company or by a third-party lender through the
CSO programs. See “Services offered by the Company—Consumer Loan Activities” for further discussion of the
CSO programs. The Company previously offered installment loans secured by a customer’s vehicle, but it ceased
offering that product in the latter half of 2015.
Check Cashing and Other Financial Services
A small component of the Company’s business includes the offering of check cashing services through
franchised check cashing centers, for which the Company receives franchise fees. In addition, in some of its
2