Cash America 2007 Annual Report Download - page 27

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Shared Services. The Shared Services Division provides support and administrative services to the
Company’s operating divisions and its management.
Trade Names. The Company operates its locations under the trade names “Cash America,” “Payday
Advance,” “Cashland,” “Mr. Payroll,” “SuperPawn,” “CashNetUSA” and “QuickQuid.” The Company’s
marks “Cash America,” “Cashland,” “SuperPawn,” “Cash When It Counts,” “CashNetUSA” and “Mr.
Payroll” are registered with the United States Patent and Trademark Office.
Personnel. At December 31, 2007, the Company employed 5,501 persons in its operations, of whom
521 were in executive and administrative functions.
Training. The Company provides extensive training to its store employees through training
programs that are tailored to both pawn and cash advance lending locations, and combine classroom
instruction, video and online presentations, and on-the-job training. A new employee is introduced to the
business through an orientation program and through training programs covering job-appropriate topics such
as pawn lending, cash advances, layaways, merchandising, collections, anti-money laundering, compliance,
and general administration of unit operations. The experienced store employee receives additional training
and an introduction to the fundamentals of management to acquire the skills necessary to move into
management positions within the organization. Manager training involves a program that includes
additional management principles and more extensive training in topics such as income maximization,
recruitment, merchandise control, and cost efficiency.
Future Expansion
The Company has expanded both by acquiring existing pawnshops and cash advance locations
(collectively referred to as “lending locations”) from others and by establishing new start-up locations. The
Company intends to continue to increase the number of lending locations in this manner. Its business
strategy is to continue expanding its lending business within its existing geographic markets and into other
markets that meet its risk/reward considerations. Management believes that such expansion will continue to
provide economies of scale in supervision, purchasing, administration and marketing by decreasing the
overall average cost of such functions per unit owned. By concentrating multiple lending units in regional
and local markets, the Company seeks to expand market penetration, enhance name recognition and
reinforce marketing programs.
Since acquiring CashNetUSA, the Company is also actively exploring strategies to increase and
enhance its online presence, with the goal of becoming the premier online cash advance provider. The
Company continues to evaluate new markets in which to establish its online presence, similar to its entry
into the United Kingdom during 2007. The Company also intends to continue evaluating and offering new
products and services that complement its specialty financial services both at its physical lending locations
and online in order to meet the growing financial services needs of its customers.
When considering acquiring an existing lending location, the Company evaluates the annual volume
of loan transactions at that location, the carrying cost of merchandise, outstanding loan balances and lease
terms of the facility or, if it is to be purchased, the facility’s fair market value. When considering the startup
of a new lending location, the Company evaluates the location of the prospective location, whether
conditions in the surrounding community indicate a sufficient level of potential customers, and whether a
suitable facility is available on acceptable terms.
A new pawnshop can be ready for business within four to six weeks and a new cash advance
location can be ready within two to four weeks after the Company has leased or acquired a suitable location
and obtained a license. The finish-out of a new location includes the completion of counters, installation of
vaults and a security system and the transfer of merchandise from other locations (for pawnshop locations).
The approximate start-up costs, which consist of the investment in property and equipment, for recently