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Note 5 - Discontinued Operations
 3 Months Ended
Jun. 30, 2012
Discontinued Operations  
Discontinued Operations

 

Note 5 - Discontinued 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. During the first quarter of 2011, the Company recorded a gain of approximately $5,900,000, net of tax, or $0.18 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 first half of 2011.

 

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 June 30, 2012, and 2011 were immaterial.

 

There was no activity related to discontinued operations during the six months ended June 30, 2012. 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 six months ended June 30, 2011 (unaudited, in thousands, except per share data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

 

June 30, 2011

 

June 30, 2011

 

Consumer loan and credit services fees

$

-

 

 

$

1,458

 

 

Consumer loan and credit services loss provision

 

-

 

 

 

(12)

 

 

 

Net revenue

 

-

 

 

 

1,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses and other (gain) loss:

 

 

 

 

 

 

 

 

 

Operating and administrative expenses

 

-

 

 

 

577

 

 

 

Depreciation and amortization

 

-

 

 

 

12

 

 

 

Gain on sale of consumer loan stores

 

-

 

 

 

(9,832)

 

 

 

Gain on excess collections of notes receivable

 

(224)

 

 

 

(620)

 

 

 

 

Total expenses and other (gain)/losses

 

(224)

 

 

 

(9,863)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations before income taxes

 

224

 

 

 

11,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax expense

 

(90)

 

 

 

(4,524)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations, net of tax

$

134

 

 

$

6,785

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations (basic)

$

-

 

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from discontinued operations (diluted)

$

-

 

 

$

0.21