Cash America 2015 Annual Report Download - page 58
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The following table summarizes the proceeds from the disposition of merchandise and the related profit for
domestic pawn operations, excluding the Company’s Mexico-based pawn operations, for the years ended
December31,2014and2013(dollarsinthousands):
YearEndedDecember31,
2014 (a) 2013 (a)
Domestic pawn operations Retail Commercial Total Retail Commercial Total
Proceeds from disposition $517,139 $130,569 $647,708 $410,963 $165,744 $576,707
Gross profit on disposition $171,173 $12,114 $183,287 $149,213 $33,124 $182,337
Gross profit margin 33.1%9.3%28.3%36.3%20.0%31.6%
Percentage of total gross profit 93.4%6.6%100.0%81.8%18.2%100.0%
(a) Excludes amounts related to the Company’s Mexico-based pawn operations, which were sold in August 2014. For the years ended
December 31, 2014 and 2013, Mexico-based pawn operations had proceeds from disposition of $12,298 and $18,732, gross profit on
disposition of $2,582 and $2,489, and gross profit margin of 21.0% and 13.3%, respectively.
Proceeds from disposition for domestic pawn operations increased $71.0 million, or 12.3%, in 2014
compared to 2013, primarily due to an increase in retail proceeds from disposition of $106.2 million, or 25.8%,
partially offset by a decrease in commercial proceeds from disposition of $35.2 million, or 21.2%. In 2014, the
Company increased its emphasis on retail jewelry sales in its storefront locations and placed less reliance on the
commercial disposition of jewelry due to the prevailing lower market price for gold. The Company’s merchandise
turnover ratio remained flat at 2.3 times in both 2013 and 2014.
Gross profit on disposition for domestic pawn operations increased in 2014 compared to 2013 by
$1.0million,or0.5%,primarilyduetoa$22.0million,or14.7%,increaseinretailgrossprofitonretaildisposition,
largely offset by a $21.0 million, or 63.4%, decrease in commercial gross profit on disposition. This activity was
primarily due to the Company’s increased emphasis on retail sales in its storefront locations and efforts to place less
reliance on the commercial disposition of merchandise. In addition, the domestic gross profit margin decreased to
28.3% in 2014, compared to 31.6% in 2013, primarily due to a lower margin on retail sales, which declined mainly
as a result of the discounting of general merchandise items to enhance sales, as well as a lower margin on
commercial dispositions mainly due to a lower market price for gold. The percentage of gross profit from
commercial sales in 2014 compared to 2013 was a less significant percentage of the total gross profit from
dispositions.
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