Cash America 2011 Annual Report Download - page 79

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Year Ended December 31, 2010
Retail Services E-Commerce Consolidated
% of % of % of
Amount Total Amount Total Amount Total
Pawn loan fees and service charges $253,314 45.3 % $ - - % $253,314 32.8 %
Proceeds from disposition of merchandise,
net of cost of disposed merchandise 196,122 35.1 % - - % 196,122 25.4 %
Pawn related $449,436 80.4 % $ - - % $449,436 58.2 %
Consumer loan fees, net of loss provision $96,536 17.3 % $212,022 99.4 % $308,558 40.0 %
Other revenue 12,857 2.3 % 1,338 0.6 % 14,195 1.8 %
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et revenue $558,829 100.0 % $213,360 100.0 % $772,189 100.0 %
Year Ended December 31, 2009
Retail Services E-Commerce Consolidated
% of % of % of
Amount Total Amount Total Amount Total
Pawn loan fees and service charges $231,178 44.5 % $ - - % $231,178 34.8 %
Proceeds from disposition of merchandise,
net of cost of disposed merchandise 178,459 34.4 % - - % 178,459 26.8 %
Pawn related $409,637 78.9 % $ - - % $409,637 61.6 %
Consumer loan fees, net of loss provision $96,355 18.5 % $144,685 99.2 % $241,040 36.2 %
Other revenue 13,502 2.6 % 1,118 0.8 % 14,620 2.2 %
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et revenue $519,494 100.0 % $145,803 100.0 % $665,297 100.0 %
For 2011, net revenue increased $137.6 million, or 17.8%, to $909.8 million from $772.2 million in 2010. Pawn
lending activities accounted for 57.5% and 58.2% of total net revenue for 2011 and 2010, respectively. Net revenue
from pawn lending activities increased $74.0 million, to $523.5 million, during 2011 compared to 2010, which
accounted for 53.8% of the overall increase in net revenue. The increase in the pawn-related contribution was primarily
due to an increase in pawn loan fees and service charges that resulted from higher pawn loan balances due to organic
growth in domestic retail operations and increased gross profit from the disposition of merchandise. The increase was
also due to additional pawn loan balances as a result of the Company’s acquisition on October 4, 2010 of substantially
all of the assets of Maxit Financial, LLC (“Maxit”), which owned and operated a 39-store chain of pawn lending
locations that operate in Washington and Arizona under the names “Maxit” and “Pawn X-Change” (the “Maxit
acquisition”).
Net revenue from consumer loan activities increased $64.4 million, or 20.9%, to $373.0 million in 2011, from
$308.6 million in 2010, which accounted for 46.8% of the overall increase in net revenue, due to an increase in loans
written from the e-commerce segment in foreign markets in which the Company operates and to a lesser extent, the
expansion of the Company’s installment loan and line of credit products in the United States. This increase was large
enough to offset a decrease in revenue from certain domestic markets in which the consumer loan product is no longer
offered due to changes in laws and the absence of fees in 2011 related to the MLOC services business. The Company
stopped providing MLOC services on behalf of a third-party lender in October 2010 when the lender discontinued
offering MLOC advances.
Non-GAAP Disclosure
In addition to the financial information prepared in conformity with GAAP, the Company provides historical
non-GAAP financial information. Management believes that presentation of non-generally accepted accounting
principles (“non-GAAP”) financial information is meaningful and useful in understanding the activities and business