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47
OVERVIEW
Consolidated Net Revenue
Consolidated net revenue is composed of total revenue less cost of disposed merchandise and consumer
loan loss provision. Net revenue is the income available to satisfy all remaining expenses and is the measure
management uses to evaluate top-line performance.
The following tables show the components of net revenue for the years ended December 31, 2014, 2013
and 2012 (dollars in thousands):
Year Ended December 31,
2014 2013 2012
Amount
% of
Total Amount
% of
Total Amount
% of
Total
Pawn loan fees and service charges $329,368
55.9
%
$311,799 53.2
%
$300,929 47.6
%
Proceeds from disposition of
merchandise, net of cost of disposed
merchandise 185,869
31.5
%
184,826 31.5
%
225,588 35.7
%
Pawn related $515,237
87.4
%
$496,625 84.7
%
$526,517 83.3
%
Consumer loan fees, net of loss
provision $66,665
11.3
%
$79,852 13.6
%
$92,667 14.7
%
Other revenue 7,648
1.3
%
10,037 1.7
%
12,855 2.0
%
Net revenue $589,550 100.0
%
$586,514 100.0
%
$632,039 100.0
%
Consolidated net revenue increased $3.0 million, or 0.5%, to $589.6 million in 2014. Pawn-related net
revenue accounted for 87.4% and 84.7% of total consolidated net revenue in 2014 and 2013, respectively. Pawn-
related net revenue increased $18.6 million, or 3.7%, to $515.2 million in 2014 from $496.6 million in 2013. The
increase in pawn-related net revenue was primarily due to higher pawn loan fees and service charges and higher
gross profit on retail sales.
Consumer loan net revenue accounted for 11.3% and 13.6% of total consolidated net revenue in 2014 and
2013, respectively. Consumer loan net revenue decreased $13.2 million to $66.7 million during 2014 from
$79.9 million in 2013, primarily due to the Company’s strategy to reduce the Company’s short-term consumer
lending activities. See “General—Recent Developments—Reduction in Short-Term Consumer Lending
Operations” for further discussion.