Cash America 2013 Annual Report Download - page 93

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The following table sets forth interest and fees on consumer loans by product type and segment, and the related
loan loss provision for the years ended December 31, 2013 and 2012 (dollars in thousands):
Year Ended December 31,
2013 2012
Short-
term loans
Line of
credit
accounts
Installment
loans Total
Short-term
loans
Line of
credit
accounts
Installment
loans Total
Retail services $ 100,146 $ - $ 13,065 $ 113,211 $ 109,972 $ - $ 11,920 $ 121,892
E-commerce
Domestic 185,522 118,963 89,987 394,472 202,537 73,572 56,643 332,752
Foreign 204,184 51,533 114,783 370,500 257,256 - 69,620 326,876
Total E-commerce 389,706 170,496 204,770 764,972 459,793 73,572 126,263 659,628
Consumer loan fees $ 489,852 $ 170,496 $ 217,835 $ 878,183 $ 569,765 $ 73,572 $ 138,183 $ 781,520
Less: consumer loan loss provision 163,470 74,306 113,479 351,255 202,325 34,793 79,176 316,294
Consumer loan fees, net
loss provision $ 326,382 $ 96,190 $ 104,356 $ 526,928 $ 367,440 $ 38,779 $ 59,007 $ 465,226
Year-over-year change - $ $ (41,058) $ 57,411 $ 45,349 $ 61,702 $ 37,357 $ 16,014 $ 38,897 $ 92,268
Year-over-year change - % (11.2%) 148.0% 76.9% 13.3% 11.3% 70.3% 193.4% 24.7%
Consumer loan loss provision
as a % of consumer loan fees 33.4% 43.6% 52.1% 40.0% 35.5% 47.3% 57.3% 40.5%
Combined Consumer Loans
In addition to reporting consumer loans owned by the Company and consumer loans guaranteed by the
Company, which are either GAAP items or disclosures required by GAAP, the Company has provided combined
consumer loans, which is a non-GAAP measure. In addition, the Company has reported consumer loans written and
renewed, which is statistical data that is not included in the Company’s financial statements.
Management believes these non-GAAP measures provide investors with important information needed to
evaluate the magnitude of potential loan losses and the opportunity for revenue performance of the consumer loan
portfolio on an aggregate basis. Management also believes that the comparison of the aggregate amounts from period to
period is more meaningful than comparing only the amounts reflected on the Company’s balance sheet since both
revenue and the loss provision for loans are impacted by the aggregate amount of loans owned by the Company and
those guaranteed by the Company as reflected in its financial statements.
Consumer Loan Balances
The outstanding combined portfolio balance of consumer loans, net of allowances and liability for estimated
losses, increased $64.0 million, or 18.3%, to $414.7 million at December 31, 2013 from $350.7 million at December 31,
2012, primarily due to increased demand for line of credit and installment loan products from the e-commerce segment
in both domestic and foreign markets, partially offset by a decrease in demand for short-term loans in the retail services
and e-commerce segments. Management expects the loan balances in the line of credit account and installment loan
products to continue to comprise a larger percentage of the total consumer loan portfolio, due to customer’s preference
for these products and the higher average amount per loan of installment loans relative to short-term loans and line of
credit account products.
The combined consumer loan balance includes $446.7 million and $375.1 million at December 31, 2013 and
2012, respectively, of Company-owned consumer loan balances before the allowance for losses of $87.9 million and
$85.7 million provided in the consolidated financial statements for December 31, 2013 and 2012, respectively. The
combined consumer loan balance also includes $59.0 million and $64.7 million at December 31, 2013 and 2012,
respectively, of consumer loan balances that are guaranteed by the Company, which are not included in the Company’s
financial statements, before the liability for estimated losses of $3.1 million and $3.5 million provided in the
consolidated financial statements for December 31, 2013 and 2012, respectively.