Cash America 2014 Annual Report Download - page 22

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Unsecured installment loans typically have terms between two and 12 months, but may have available
terms of up to 36 months. Installment loans secured by a customer’s vehicle typically have terms of up to 60
months. Both unsecured and secured installment loans require the repayment of principal, interest and fees in
installments over the term of the loan.
The Company typically experiences seasonal growth in its consumer loan balances, with increases during
each of the second, third and fourth quarters of the year following lower balances in the first quarter of the year due
to the heavy repayment of loans with tax refund proceeds received by customers. In addition, due to the nature of
the short-term loan product and the high velocity of loans written and renewed, seasonal trends are evidenced in the
quarter-to-quarter performance of the consumer loan loss provision. In the typical business cycle, the consumer loan
loss provision as a percent of combined consumer loans written and renewed for short-term consumer loans is
usually lowest in the first quarter and increases throughout the year.
Collection activities are an important aspect of the consumer loan product offering. The Company operates
a centralized collection center to maximize loan repayment, facilitate regulatory compliance and coordinate a
consistent approach to its collections activities.
Check Cashing and Other Financial Services
Although the Company provides check cashing and other ancillary products and services in some of its
locations, these products were eliminated from many locations during 2014 consistent with the Company’s strategy
to focus on pawn lending activities. Other financial services offered by the Company include check cashing, money
orders, wire transfers, prepaid debit cards and auto insurance. Most of these ancillary products and services offered
are provided through third-party vendors. In addition, the Company franchises its stand-alone check cashing
business, Mr. Payroll, and each franchisee pays royalties based on the gross revenue of check cashing services
provided within the franchisee’s facility. These check cashing and other services represent a portion of the amounts
included in “Other” revenue in the consolidated statements of income. The income from these services was not
significant to the Company’s total revenue from continuing operations in 2014, 2013 and 2012.
Operations
Management and Personnel
Executive Officers
The Company’s executive officers, and information about each, are listed below. There is no family
relationship between any of the Company’s directors and executive officers.
Name Age Position
Daniel R. Feehan 64 Chief Executive Officer and President
Thomas A. Bessant, Jr. 56 Executive Vice President – Chief Financial Officer
J. Curtis Linscott 49 Executive Vice President – General Counsel and Secretary
Victor L. Pepe 50 Executive Vice President – Chief Information Officer
T. Brent Stuart 45 Executive Vice President – Chief Operating Officer
Daniel R. Feehan has been Chief Executive Officer and President since February 2000. He served as the
Company’s President and Chief Operating Officer from January 1990 until February 2000, except that he served as
Chairman and Co-Chief Executive Officer of one of the Company’s subsidiaries from February 1998 to February
1999 before returning to the position of President and Chief Operating Officer of the Company. Mr. Feehan became
a director of the Company in 1984 and joined the Company full-time in 1988, serving as its Chief Financial Officer
before becoming President and Chief Operating Officer in 1990. Mr. Feehan received a Bachelor of Business
Administration degree in Accounting from Texas A&M University.
On July 23, 2014, Mr. Feehan informed the Company’s Board of Directors of his intent to retire when the
current term of his executive employment agreement expires on April 30, 2015. Mr. Feehan will remain on the