Cash America 2012 Annual Report Download - page 37

12
Personnel
As of December 31, 2012, the Company employed 7,035 persons in its operations, of whom 717 were in
executive and administrative functions. Of the employee count above, the Company employed 6,042 persons in the retail
services segment and 993 persons in the e-commerce segment.
Future Expansion
Storefront Expansion
The Company historically has expanded by acquiring existing retail services locations and by establishing new
start-up locations. The Company intends to continue expanding its retail services 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 leverage marketing programs.
Over the last three years, the Company has expanded its domestic pawn lending presence in the United States.
While the Company’s strategy is to expand its domestic and foreign pawn lending operations, the Company periodically
assesses whether the closure of certain locations would improve the overall profitability in its retail services segment.
During 2011 and 2010, the Company closed certain under-performing locations in the United States and in Mexico to
improve profitability of its domestic and foreign retail services segment operations. In connection with the Mexico
Reorganization, which was approved during the third quarter of 2012, the Company closed 148 of its foreign retail
services locations. See “Recent Developments—Business Developments—Reorganization of Mexico-based Pawn
Operations and Purchase of Noncontrolling Interest” for further discussion of the Mexico Reorganization. The table
below outlines acquisitions, start-ups and closures for domestic and foreign Company-owned retail services locations,
excluding Company-owned check cashing locations, for the years ended December 31, 2012, 2011 and 2010.
As of December 31,
2012 2011 2010
Retail services locations at beginning of period 973 950 913
Acquired 37 8 44
Start-ups 22 20 40
Combined, or closed (154) (5) (47)
Retail services locations at end of period 878 973 950

When considering acquiring an existing lending location, the Company evaluates, among other things, 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 start-up of a
new retail services location, the Company evaluates the location of the prospective site, whether conditions in the
surrounding community indicate a sufficient level of potential customers, and whether a suitable facility is available on
acceptable terms.
After the Company has leased or acquired a suitable location and obtained the required licenses in the United
States, a new retail services location can be ready for business within four to eight weeks. The approximate start-up
costs, which consist of the investment in property (excluding real estate) and equipment, for recently established retail
services locations in the United States typically range from $500,000 to $650,000. The typical costs associated with
start-up retail services locations in Mexico are estimated to be between $100,000 and $150,000 per shop, based on
exchange rates as of December 31, 2012. The costs in Mexico are less than domestic costs primarily due to the lower