Cash America 2015 Annual Report Download - page 42

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Check Cashing and Other Financial Services
A small component of the Company’s business includes the offering of check cashing services through
franchised check cashing centers, for which the Company receives franchise fees. In addition, in some of its
Company-operated lending locations, the Company offers check cashing services, as well as prepaid debit cards
that are issued and serviced through a third party. In July 2015, the Company ceased offering certain ancillary
products and services, including money orders, wire transfers and auto insurance, consistent with its strategy to
emphasize pawn-related services in its Company-operated locations. Total revenue from check cashing and other
ancillary products and services accounted for less than 1% of consolidated total revenue for the years ended
December 31, 2015, 2014 and 2013, respectively.
Enova Spin-off
On November 13, 2014, the Company completed the distribution of approximately 80% of the outstanding
shares of Enova International, Inc. (“Enova”) common stock to the Company’s shareholders (the “Enova Spin-off”).
Prior to the Enova Spin-off, Enova was a wholly-owned subsidiary of the Company that operated its online lending
business and comprised the Company’s e-commerce segment. Following the Enova Spin-off, the Company no
longer offers loans online. Upon completion of the Enova Spin-off, the Company reclassified the financial results of
Enova to discontinued operations in the Company’s consolidated financial statements for the years ended December
31, 2014 and 2013. For additional information, see “Item 8. Financial Statements and Supplementary Data—Note
2.”
Locations
See “Item 1. Business—Overview—General” for details of the Company’s owned and franchised locations
offering pawn lending, consumer lending and other services as of December 31, 2015, 2014 and 2013.
RESULTS OF OPERATIONS
Highlights
The Company’s financial results for 2015 are summarized below.
•Totalrevenuewas$1.0billionfor2015,representingadecreaseof$65.2million,or6.0%,
comparedto2014.Netrevenuedecreased$22.4million,or3.8%,to$567.1million,for2015
compared to 2014.
•Incomefromoperationsincreased$23.3million,or70.7%,to$56.3millionin2015comparedto
$33.0millionin2014,primarilyduetoa$17.0millionincreaseindomesticincomefrom
operations as a result of decreased operations and administration expenses. In addition, income
from operations for 2014 included losses from the operations and sale of the Company’s non-
strategic Mexico-based pawn operations.
•Netincomefromcontinuingoperationswas$27.6millionfor2015comparedtoanetlossfrom
continuingoperationsof$10.4millionin2014.Dilutednetincomepersharefromcontinuing
operations was $1.01 for 2015 compared to a net loss per share from continuing operations of $0.36
for 2014. Net income and net income per share from continuing operations were affected by certain
income and expense items in 2015 and 2014. See “Results of Operations—Non-GAAP Disclosure
—Adjusted Earnings Measures” and “Results of Operations—Non-GAAP Disclosure—Adjusted
EBITDA” for additional information.
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