Cash America 2013 Annual Report Download - page 36

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E-Commerce Segment
The operations and strategy of the Company’s e-commerce segment is coordinated by the officers of the
Company’s E-Commerce Division, Enova, including Vice Presidents and Senior Vice Presidents, who report to the
Chief Executive Officer—E-Commerce Division. A Senior Vice President of Operations oversees all consumer loan
products in the United States and the United Kingdom, all of which are offered over the internet through the Company’s
e-commerce segment. A Vice President of Operations oversees the consumer loan products offered over the internet in
Canada and Australia.
Personnel
As of December 31, 2013, the Company employed 7,637 persons in its operations, of whom 6,213 were in the
retail services segment, 1,027 were in the e-commerce segment and 397 were in corporate and administrative functions.
Tradenames and Trademarks
The Company operates under the trade names “Cash America Pawn,” “Cash America Payday Advance,”
“Cashland,” “Mr. Payroll,” “SuperPawn,” “Cash America casa de empeño,” “CashNetUSA,” “NetCredit,”
“QuickQuid,” “QuickQuid FlexCredit,” “DollarsDirect” and “Pounds to Pocket.” The Company has a number of
trademarks that are registered under applicable trademark laws including, but not limited to, “Cash America,”
“Cashland,” “SuperPawn,” “CashNetUSA,” “Mr. Payroll,” “QuickQuid,” “QuickQuid FlexCredit,” “DollarsDirect,”
“Pounds to Pocket,” “NetCredit,” “Enova Financial” and Enova’s “e” logo. These trademarks have varying expiration
dates. The Company believes these trademarks are of material importance to the Company and each of its segments and
anticipates maintaining and renewing them. In addition, the Company has various other trademark applications pending
in the United States and other countries in which it operates.
Franchises
Each of the Company’s unconsolidated franchised check cashing locations is subject to franchise agreements
that have varying durations that are negotiated individually with each franchisee. As of December 31, 2013, the
Company had 90 unconsolidated franchised check cashing locations, and the revenue from these franchised locations
was immaterial to the Company on a consolidated basis.
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.
Most recently, in December 2013, the Company completed the acquisition of substantially all of the assets of a 34-store
chain of pawn lending locations in the states of Georgia and North Carolina that were owned by PawnMart, Inc. and
operate primarily under the name PawnMart. In addition, in August 2013, the Company completed the acquisition of
substantially all of the assets of a chain of pawn lending locations in Texas that included 41 operating locations and the
rights to one additional Texas pawn-lending location (that was under construction but not open for business at the time
of the acquisition), all of which were acquired from TDP Superstores Corp. and operate under the name Top Dollar
Pawn.
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. From time-to-time, the Company closes certain under-performing locations to improve profitability of its