Cash America 2013 Annual Report Download - page 118

93
2011
Installment loans:
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Consumer loan loss provision $ 4,870 $ 7,052 $ 9,984 $ 15,163
Charge-offs (net of recoveries) 3,378 5,458 7,547 10,514
Installment loan average loan balance:(a)
Company owned $ 20,551 $ 28,343 $ 42,271 $ 60,458
Guaranteed by the Company(b) 3,652 4,129 5,486 6,822
Combined average consumer loan balance(c) $ 24,203 $ 32,472 $ 47,757 $ 67,280
Installment loan ratios:
Consumer loan loss provision as a % of
combined average consumer loan balance(a)(c) 20.1% 21.7% 20.9% 22.5%
Charge-offs (net of recoveries) as a % of
combined average consumer loan balance(a)(c) 14.0% 16.8% 15.8% 15.6%
Consumer loan loss provision as a % of consumer loan
fees 59.9% 66.7% 61.8% 68.0%
Allowance and liability for losses as a % of combined
average consumer loan balance(a)(c) 19.5% 19.4% 18.3% 19.9%
(
a
)
The average consumer loan balance for installment loans is the simple average of the beginning and ending consumer loan balance for
installment loans.
(b
)
Represents loans originated by third-party lenders through the CSO programs, which are not included in the Company's financial
statements.
(
c
)
Non-GAAP measure.
Total Expenses
The table below shows total expense by segment, for corporate operations and by significant category for the
years ended December 31, 2012 and 2011 (dollars in thousands):
Year Ended December 31,
2012 2011
Retail
Services E-Commerce Corporate Total
Retail
Services E-Commerce Corporate Total
Operations and administration:
Personnel $ 221,841 $ 79,494 $ 42,302 $ 343,637 $ 212,098 $ 64,668 $ 45,257 $ 322,023
Occupancy 111,378 8,670 4,111 124,159 95,483 6,939 3,382 105,804
Marketing 12,884 108,810 192 121,886 13,963 73,330 129 87,422
Other 67,358 37,384 20,190 124,932 51,307 28,184 16,528 96,019
Total operations and administration 413,461 234,358 66,795 714,614 372,851 173,121 65,296 611,268
Depreciation and amortization 47,612 13,272 14,544 75,428 32,036 11,263 10,850 54,149
Total expenses $ 461,073 $ 247,630 $ 81,339 $ 790,042 $ 404,887 $ 184,384 $ 76,146 $ 665,417
Year-over-year change - $
Operations and administration $ 40,610 $ 61,237 $ 1,499 $ 103,346 $ 43,089 $ 36,951 $ 10,094 $ 90,134
Depreciation and amortization 15,576 2,009 3,694 21,279 4,740 2,704 2,782 10,226
Total $ 56,186 $ 63,246 $ 5,193 $ 124,625 $ 47,829 $ 39,655 $ 12,876 $ 100,360
Year-over-year change - % 13.9% 34.3% 6.8% 18.7% 13.4% 27.4% 20.4% 17.8%
Consolidated total expenses increased $124.6 million, or 18.7%, to $790.0 million in 2012 compared to $665.4
million in 2011. Total expenses for the retail services segment increased $56.2 million, or 13.9%, to $461.1 million
during 2012 compared to $404.9 million in 2011. Expenses of $21.1 million related to the Mexico Reorganization are
included in the retail services segment total expenses in 2012, which is composed of operations and administration
expenses of $8.5 million and depreciation and amortization expenses of $12.6 million. Additionally, in the retail services