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Note 5 - Discontinued Operations | 12 Months Ended
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Dec. 31, 2011
Discontinued Operations and Disposal Groups [Abstract] |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | NOTE 5 - DISCONTINUED OPERATIONS Consumer Loan Operations The Company’s strategy has been 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 fiscal 2011. Comparable after-tax earnings were $2,881,000, or $0.10 per share in 2010, and $2,860,000, or $0.09 per share in 2009. 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 were $887,000, or $0.03 per share in 2010, and $695,000, or $0.03 per share in 2009. In December 2009, the Company sold all 22 of its consumer loan stores located in California, Washington and Oregon (“West Coast stores”) to a privately-held operator. 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 a significant number of the employees. The after-tax loss from operations for the West Coast stores was $101,000 in fiscal 2010. The Company recorded a gain of $901,000, or $0.03 per share, net of tax, from the sale of these stores in 2009. The after-tax earnings from operations for the West Coast stores were $1,376,000, or $0.05 per share in 2009. The Company completed the sale of eight consumer/payday loan stores in Michigan to another operator in the third quarter of 2009 and closed the remaining four stores in Michigan. Under the terms of the asset purchase agreement, the buyer purchased the outstanding customer loans, customer account lists and fixed assets, assumed leases at all the store locations and hired a significant number of the employees. In addition, five under-performing consumer loan/credit services stores in Texas were closed during the first quarter of 2009 and four such stores were closed during the second quarter of 2009. Associated with this sale and these store closings, the Company recorded after-tax charges of $1,111,000, or $0.04 per share in 2009. All revenue, expenses and income reported in these financial statements have been adjusted to reflect reclassification of these discontinued consumer loan and credit services operations. There were no assets or liabilities for these discontinued operations at December 31, 2011. The carrying amounts of the assets for these discontinued operations at December 31, 2010, and 2009 included loans of $2,279,000 and $2,424,000, respectively, 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 at December 31, 2010, and 2009. The carrying amounts of the liabilities for these discontinued operations at December 31, 2010, and 2009 were immaterial. The following table summarizes the operating results, including gains or losses from disposition, of the Illinois, Maryland, West Coast, Michigan and certain Texas consumer loan/credit services operations which have been reclassified as discontinued operations in the consolidated statements of operations for the years ended December 31, 2011, 2010 and 2009 (in thousands, except per share data):
|  |  |  |  | Year Ended December 31,
|  |  |  |  | 2011 |  | 2010 |  | 2009
Consumer loan and credit services fees | $ | 1,458 |  | $ | 10,344 |  | $ | 20,907
Consumer loan and credit services loss provision |  | (12) |  |  | (1,658) |  |  | (3,508)
| Net revenue |  | 1,446 |  |  | 8,686 |  |  | 17,399
Expenses and other (gain) loss: |  |  |  |  |  |  |  |
| Operating and administrative expenses |  | 577 |  |  | 3,035 |  |  | 9,729
| Depreciation and amortization |  | 12 |  |  | 62 |  |  | 363
| Net gain on sale/disposal of assets |  | (9,965) |  |  | - |  |  | (471)
|  |  |  |  |  | (9,376) |  |  | 3,097 |  |  | 9,621
|  | Income from discontinued operations before income taxes |  | 10,822 |  |  | 5,589 |  |  | 7,778
Tax expense |  | (4,329) |  |  | (1,922) |  |  | (3,057)
|  | Net income from discontinued operations | $ | 6,493 |  | $ | 3,667 |  | $ | 4,721
|  | Net income from discontinued operations per basic share | $ | 0.21 |  | $ | 0.12 |  | $ | 0.16
|  | Net income from discontinued operations per diluted share | $ | 0.21 |  | $ | 0.13 |  | $ | 0.16
Auto Master Buy-Here/Pay-Here Operation In September 2008, the Company sold its buy-here/pay-here automotive business, Auto Master. A collections agreement (“Collections Agreement”) associated with the sale provides that the buyer manages all collections and loan servicing activities of Auto Master’s outstanding customer receivable portfolio. All principal amounts, finance charges and related fees collected by the buyer, as well as any proceeds from sales of repossessed vehicles, are remitted to the Company as collected, net of a collection management fee, based on a calculation as described in the Collections Agreement. The Company received these cash flows over the term of the outstanding customer notes receivable, the majority of which matured in 2009 and 2010. These are considered to be indirect cash flows, as the Company has limited control over the collections operations of the buyer. As a result, the customer loan balances are not considered as held for sale and are reported in discontinued operations for all periods presented. All revenue and expenses reported for each period herein have been adjusted to reflect reclassification of the discontinued Auto Master operation. Discontinued operations include the revenue and expenses which can be specifically identified with Auto Master, and exclude any allocation of general administrative corporate costs, except interest expense. Interest expense in fiscal 2009 of $773,000 was allocated to Auto Master based on the amount of net funds advanced to Auto Master at the Company’s corporate cost of funds. After-tax net income from the discontinued Auto Master operation was $424,000, or $0.01 per share in 2011, $2,617,000, or $0.08 per share in 2010, and $6,747,000, or $0.22 per share in 2009. These earnings were primarily from collections of the remaining customer receivable portfolio in excess of estimated liquidation fair value. The Company realized net cash collections of $1,263,000, $5,240,000 and $20,936,000 on these accounts during 2011, 2010 and 2009, respectively, and recorded a pre-tax benefit of approximately $763,000, $3,102,000 and $13,370,000, respectively, from these cash collections as compared to the estimated fair value of the receivables recorded on the Company’s balance sheet. The Company completed the cash collections of these Auto Master receivables during 2011, as the outstanding receivable balances were fully collected and/or written-off. There were no assets or liabilities for this discontinued operation at December 31, 2011. At December 31, 2010, the remaining Auto Master gross receivables, net of estimated collection costs, totaled approximately $1,797,000, which the Company carried, as a component of current assets, at an estimated fair value of $500,000. The following table summarizes the operating results of Auto Master, which has been reclassified as discontinued operations in the consolidated statements of operations for the years ended December 31, 2011, 2010 and 2009 (in thousands):
|  |  |  |  | Year Ended December 31,
|  |  |  |  | 2011 |  | 2010 |  | 2009
Revenue |  | $ | - |  | $ | - |  | $ | 131
Cost of revenue |  | - |  |  | - |  |  | (115)
| Net revenue |  | - |  |  | - |  |  | 16
Expenses and other (gain) loss: |  |  |  |  |  |  |  |
| Operating and administrative expenses |  | 57 |  |  | 58 |  |  | 1,337
| Depreciation and amortization |  | - |  |  | - |  |  | -
| Gain on excess collections of notes receivable |  | (764) |  |  | (3,102) |  |  | (13,370)
| Gain on sale of real estate |  | - |  |  | (293) |  |  | -
|  |  |  |  |  | (707) |  |  | (3,337) |  |  | (12,033)
|  | Income from discontinued operations before income taxes |  | 707 |  |  | 3,337 |  |  | 12,049
Tax expense |  | (283) |  |  | (720) |  |  | (5,302)
|  | Net income from discontinued operations | $ | 424 |  | $ | 2,617 |  | $ | 6,747
|  | Net income from discontinued operations per basic share | $ | 0.01 |  | $ | 0.08 |  | $ | 0.22
|  | Net income from discontinued operations per diluted share | $ | 0.01 |  | $ | 0.08 |  | $ | 0.22

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- Definition The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e957-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2941-110230 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1436-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1361-107760 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6390789&loc=d3e2443-110228 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 43-48 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1474-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1020-107759 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=6360339&loc=d3e1510-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6892542&loc=d3e1012-107759 + Details
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