Cash America 2013 Annual Report Download - page 86

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revenue was partially offset by a decrease in consumer loan net revenue in the Company’s retail services segment.
Pawn-related net revenue accounted for 48.0% and 52.3% of total consolidated net revenue in 2013 and 2012,
respectively. Pawn-related net revenue decreased $29.9 million, to $496.6 million in 2013 from $526.5 million in 2012.
The decrease in pawn-related net revenue was primarily due to a reduction in proceeds from the disposition of gold
through commercial sales and, to a lesser extent, decreases in net revenue due to the Mexico Reorganization in 2012.
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.
Adjusted Earnings Measures
In addition to reporting financial results in accordance with GAAP, the Company has provided adjusted net
income and diluted earnings per share attributable to the Company, adjusted earnings and adjusted earnings per share
(collectively, the “Adjusted Earnings Measures”), which are non-GAAP measures. Management believes that the
presentation of these measures provides investors with greater transparency and facilitates comparison of operating
results across a broad spectrum of companies with varying capital structures, compensation strategies, derivative
instruments and amortization methods, which provides a more complete understanding of the Company’s financial
performance, competitive position and prospects for the future. Management also believes that investors regularly rely
on non-GAAP financial measures, such as the Adjusted Earnings Measures, to assess operating performance and that
such measures may highlight trends in the Company’s business that may not otherwise be apparent when relying on
financial measures calculated in accordance with GAAP. In addition, management believes that the adjustments shown
below, especially the adjustments for events that occurred during the three years ended December 31, 2013, 2012, and
2011, such as the Texas Consumer Loan Store Closures, the Debt Extinguishment, the Regulatory Penalty, the charges
related to the 2013 Litigation Settlement, the Creazione Deduction, the withdrawal of the proposed Enova IPO, the
Mexico Reorganization, the Ohio Adjustment and the Ohio Reimbursement Program are useful to investors in order to
allow them to compare the Company’s financial results during the periods shown without the effect of each of these
income and expense items.