Cash America 2012 Annual Report Download - page 84

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For 2012, net revenue increased $96.2 million, or 10.6%, to $1.0 billion from $909.8 million in 2011. Net
revenue from pawn lending activities accounted for 52.3% and 57.5% of total net revenue in 2012 and 2011,
respectively. Net revenue from pawn lending activities increased $3.0 million to $526.5 million in 2012 from $523.5
million in 2011, which accounted for 3.2% of the increase in consolidated net revenue. The increase in the pawn-related
net revenue was primarily due to an $18.7 million increase in pawn loan fees and service charges that resulted from
higher average domestic pawn loan balances as a result of new locations and higher average pawn loan yields in
domestic retail operations. This increase was partially offset by a decrease in pawn loan fees and service charges from
foreign markets and a decrease of $15.7 million in gross profit on the disposition of merchandise on commercial sales
during 2012 compared to 2011, which was primarily due to a decrease in gross profit margin on commercial goods and a
decrease in commercial goods available for sale as a result of lower forfeitures and purchases.
Consumer loan activities accounted for 46.3% and 41.0% of total consolidated net revenue in 2012 and 2011,
respectively. Net revenue from consumer loan activities increased $92.3 million, to $465.2 million during 2012 from
$373.0 million in 2011.This increase accounted for 95.9% of the overall increase in consolidated net revenue, mainly
due to an increase in consumer loan fees that resulted from higher average consumer loan balances in the e-commerce
segment.
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-GAAP financial information is meaningful and
useful in understanding the activities and business metrics of the Company’s operations. Management believes that these
non-GAAP financial measures reflect an additional way of viewing aspects of the Company’s business that, when viewed
with its GAAP results, provide a more complete understanding of factors and trends affecting its business.
Management provides non-GAAP financial information for informational purposes and to enhance understanding of
the Company’s GAAP consolidated financial statements. Readers should consider the information in addition to, but not
instead of or superior to, its financial statements prepared in accordance with GAAP. This non-GAAP financial information
may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative
purposes.