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Note 6 - Discontinued Operations
3 Months Ended
Sep. 30, 2011
Discontinued Operations and Disposal Groups [Abstract] 
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

 

Note 6 - Discontinued Operations     

 

The Company’s strategy is to increase focus on its pawn operations and further reduce regulatory exposure from other consumer lending products, which include certain consumer loan and credit services products offered in the United States. In March 2011, the Company sold all ten of its consumer loan stores located in Illinois to a privately-held operator of check cashing and consumer lending stores. Under the terms of the agreement, the buyer purchased the outstanding customer loans, customer account lists and fixed assets, assumed leases at all the store locations and hired all of the store-level employees. The Company recorded a gain of $5,979,000, net of tax, or $0.19 per share, from the sale of these stores. The after-tax earnings from operations for the Illinois stores were an additional $514,000, or $0.02 per share during the nine months ended September 30, 2011. Comparable after-tax earnings during the nine months ended September 30, 2010 were $2,058,000, or $0.07 per share.  

 

In September 2010, the Company discontinued its internet-based credit services product offered in Maryland due to a change in state law which significantly restricted the offering of such products. The after-tax earnings from operations for the Maryland credit services operation during the third quarter of 2010 were $254,000, or $0.01 per share, and 2010 year-to-date earnings were $771,000, or $0.02 per share.

All revenue, expenses and income reported in these financial statements have been adjusted to reflect reclassification of all discontinued operations. The carrying amounts of the assets and liabilities for discontinued operations at September 30, 2011, were immaterial. The carrying amounts of the assets for discontinued operations at September 30, 2010, included loans of $3,070,000, which were classified as a component of current assets. In addition, goodwill of approximately $7,800,000 related to the Illinois stores was classified as a component of non-current assets. The carrying amounts of the liabilities for discontinued operations at September 30, 2010, were immaterial.       

 

The following table summarizes the operating results, including gains from dispositions, of all the operations which have been reclassified as discontinued operations in the condensed consolidated statements of operations for the three and nine months ended September 30, 2011 and 2010 (unaudited, in thousands, except per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

Consumer loan and credit services fees

$

-

 

$

2,956

 

$

1,458

 

$

8,211

Consumer loan and credit services loss provision

 

-

 

 

(538)

 

 

(12)

 

 

(1,321)

 

Net revenue

 

-

 

 

2,418

 

 

1,446

 

 

6,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses and other (gain) losses:

 

 

 

 

 

 

 

 

 

 

 

 

Operating and administrative expenses

 

-

 

 

825

 

 

577

 

 

2,495

 

Depreciation and amortization

 

-

 

 

17

 

 

12

 

 

49

 

Gain on sale of assets (Illinois)

 

(133)

 

 

-

 

 

(9,965)

 

 

-

 

Gain on excess collections of notes receivable

 

(115)

 

 

(758)

 

 

(735)

 

 

(2,576)

 

Gain on sale of real estate

 

-

 

 

-

 

 

-

 

 

(293)

 

 

 

 

 

 

(248)

 

 

84

 

 

(10,111)

 

 

(325)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain before taxes

 

248

 

 

2,334

 

 

11,557

 

 

7,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax expense

 

(99)

 

 

(1,327)

 

 

(4,623)

 

 

(2,735)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain

$

149

 

$

1,007

 

$

6,934

 

$

4,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain per basic share

$

-

 

$

0.03

 

$

0.22

 

$

0.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net gain per diluted share

$

-

 

$

0.03

 

$

0.22

 

$

0.14