Cash America 2013 Annual Report Download - page 37

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domestic and foreign retail services segment operations. In connection with the reorganization of its Mexico-based pawn
operations during 2012 (the “Mexico Reorganization”), the Company closed 148 of its foreign retail services locations
in 2012. During 2013, the Company closed 36 of its domestic retail services locations in connection with the Texas
Consumer Loan Store Closures.
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, 2013, 2012
and 2011. See “Recent Developments—Business Developments” for additional information regarding the acquisitions
and closures during 2013.
As of December 31,
2013 2012 2011
Retail services locations at beginning of period 878 973 950
Acquired 76 37 8
Start-ups 8 22 20
Combined, or closed (46) (154) (5)
Retail services locations at end of period 916 878 973

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 $450,000 to $650,000. The typical costs associated with
start-up retail services locations in Mexico are estimated to be between $150,000 and $200,000 per location, based on
exchange rates as of December 31, 2013. The costs in Mexico are less than domestic costs primarily due to the lower
cost of labor and materials. These start-up amounts do not include merchandise transferred from other locations, funds to
advance on pawn loans and consumer loans or operating expenses.
Organic Growth and Development of New Credit Alternatives
The Company has the ability to leverage its existing retail services platform for pawn loan, consumer loan and
check cashing activities to expand its operating margins and add incremental earnings through the addition of new
customers. Domestically and internationally, the consumer credit market is evolving, which the Company believes will
create new opportunities for the Company to reach customers who have not previously considered using its products and
services. The Company plans to utilize marketing and promotional campaigns to pursue new customers and to gain
market share by expanding the number of customers being served through its retail services and e-commerce operations.
The Company’s e-commerce segment is actively exploring strategies to increase and enhance its internet presence.
The Company now offers an array of consumer credit products over the internet under the names “CashNetUSA,”
“NetCredit,” “QuickQuid,” “QuickQuid FlexCredit,” “Pounds to Pocket” and “DollarsDirect.” Over the past few years,
the Company has begun offering new credit alternatives, such as line of credit accounts and installment loan products.
The Company intends to continue pursuing the development of new products in the current markets that it serves that
complement its internet specialty financial services in order to meet the growing financial services needs of consumers,
both in the United States and internationally. The Company continues to evaluate new markets in which to establish its
internet presence. Other countries, including China and Brazil, are being evaluated for expansion of the Company’s
consumer loan products, and any additional expansion will be pursued when the country-specific characteristics and
requirements meet the Company’s investment criteria.