Condensed Consolidating Guarantor Financial Statements (Tables)

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]



Condensed Consolidating Balance Sheet
March 31, 2014
(unaudited, in thousands)

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	51,606		$	2,812	$	40,511		$	—		$	94,929
Pawn loan fees and service charges receivable	—			6,278		10,261			—			16,539
Pawn loans	—			47,361		66,577			—			113,938
Consumer loans, net	—			518		721			—			1,239
Inventories	—			29,770		42,509			—			72,279
Prepaid expenses and other current assets	1,365			—		1,060			—			2,425
Deferred tax assets	906			—		4,284			—			5,190
Total current assets	53,877			86,739		165,923			—			306,539

Property and equipment, net	4,025			47,687		58,170			—			109,882
Goodwill, net	—			152,981		101,809			—			254,790
Other non-current assets	6,805			4,037		5,136			—			15,978
Deferred tax assets	—			—		7,249			(7,249		)	—
Intercompany receivable	—			—		161,272			(161,272		)	—
Investments in subsidiaries	748,735			—		—			(748,735		)	—
Total assets	$	813,442		$	291,444	$	499,559		$	(917,256	)	$	687,189

LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities	12,064			7,217		17,903			—			37,184
Income taxes payable	1,887			—		1,490			—			3,377
Total current liabilities	13,951			7,217		19,393			—			40,561

Senior unsecured notes	200,000			—		—			—			200,000
Deferred income tax liabilities	883			10,689		4,969			(7,249		)	9,292
Intercompany payable	161,272			—		—			(161,272		)	—
Total liabilities	376,106			17,906		24,362			(168,521		)	249,853

Stockholders' equity:
Preferred stock	—			—		—			—			—
Common stock	394			—		—			—			394
Additional paid-in capital	177,225			—		—			—			177,225
Retained earnings	512,707			273,538		482,900			(748,735		)	520,410
Accumulated other comprehensive income (loss) from cumulative foreign currency translation adjustments	(303		)	—		(7,703		)	—			(8,006		)
Common stock held in treasury, at cost	(252,687		)	—		—			—			(252,687		)
Total stockholders' equity	437,336			273,538		475,197			(748,735		)	437,336
Total liabilities and stockholders' equity	$	813,442		$	291,444	$	499,559		$	(917,256	)	$	687,189



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended March 31, 2014
(unaudited, in thousands)

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Revenue:
Retail merchandise sales	$	—		$	37,358	$	61,350		$	—	$	98,708
Pawn loan fees	—			19,466		28,172			—		47,638
Consumer loan and credit services fees	—			8,963		821			—		9,784
Wholesale scrap jewelry revenue	—			7,507		6,140			—		13,647
Total revenue	—			73,294		96,483			—		169,777

Cost of revenue:
Cost of retail merchandise sold	—			21,136		39,354			—		60,490
Consumer loan and credit services loss provision	—			1,565		178			—		1,743
Cost of wholesale scrap jewelry sold	—			6,119		4,969			—		11,088
Total cost of revenue	—			28,820		44,501			—		73,321

Net revenue	—			44,474		51,982			—		96,456

Expenses and other income:
Store operating expenses	—			21,187		27,305			—		48,492
Administrative expenses	7,051			—		6,278			—		13,329
Depreciation and amortization	290			1,450		2,532			—		4,272
Interest expense	1,436			—		—			—		1,436
Interest income	(29		)	25		(77		)	—		(81		)
Total expenses and other income	8,748			22,662		36,038			—		67,448

Income from continuing operations before income taxes	(8,748		)	21,812		15,944			—		29,008

Provision for income taxes	(6,497		)	7,634		4,917			—		6,054

Income from continuing operations	(2,251		)	14,178		11,027			—		22,954

Income (loss) from discontinued operations, net of tax	—			—		(272		)	—		(272		)
Net income	$	(2,251	)	$	14,178	$	10,755		$	—	$	22,682
Other comprehensive income (loss):
Currency translation adjustment, net of tax expense or benefit	(255		)	—		—			—		(255		)
Comprehensive income	$	(2,506	)	$	14,178	$	10,755		$	—	$	22,427



Condensed Consolidating Statement of Comprehensive Income
Three Months Ended March 31, 2013
(unaudited, in thousands)

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Revenue:
Retail merchandise sales	$	—		$	28,940	$	52,830		$	—	$	81,770
Pawn loan fees	—			16,814		26,337			—		43,151
Consumer loan and credit services fees	—			10,741		1,026			—		11,767
Wholesale scrap jewelry revenue	—			12,724		10,500			—		23,224
Total revenue	—			69,219		90,693			—		159,912

Cost of revenue:
Cost of retail merchandise sold	—			15,194		32,845			—		48,039
Consumer loan and credit services loss provision	—			1,989		120			—		2,109
Cost of wholesale scrap jewelry sold	—			9,757		8,747			—		18,504
Total cost of revenue	—			26,940		41,712			—		68,652

Net revenue	—			42,279		48,981			—		91,260

Expenses and other income:
Store operating expenses	—			18,074		24,731			—		42,805
Administrative expenses	9,211			—		3,881			—		13,092
Depreciation and amortization	277			1,130		2,218			—		3,625
Interest expense	719			—		—			—		719
Interest income	(3		)	—		(144		)	—		(147		)
Total expenses and other income	10,204			19,204		30,686			—		60,094

Income from continuing operations before income taxes	(10,204		)	23,075		18,295			—		31,166

Provision for income taxes	(2,962		)	8,307		5,641			—		10,986

Income from continuing operations	(7,242		)	14,768		12,654			—		20,180

Income (loss) from discontinued operations, net of tax	—			—		84			—		84
Net income	$	(7,242	)	$	14,768	$	12,738		$	—	$	20,264
Other comprehensive income (loss):
Currency translation adjustment, net of tax expense or benefit	6,231			—		—			—		6,231
Comprehensive income	$	(1,011	)	$	14,768	$	12,738		$	—	$	26,495



Condensed Consolidating Balance Sheet
March 31, 2013
(unaudited, in thousands)

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	19,464		$	4,031	$	14,844		$	—		$	38,339
Pawn loan fees and service charges receivable	—			5,736		9,808			—			15,544
Pawn loans	—			41,518		63,118			—			104,636
Consumer loans, net	—			776		842			—			1,618
Inventories	—			24,855		39,916			—			64,771
Prepaid expenses and other current assets	5,271			—		4,487			(2,448		)	7,310
Deferred tax assets	1,148			—		—			—			1,148
Total current assets	25,883			76,916		133,015			(2,448		)	233,366

Property and equipment, net	4,431			38,565		54,010			—			97,006
Goodwill, net	—			95,755		73,044			—			168,799
Other non-current assets	—			3,244		3,317			—			6,561
Deferred tax assets	—			—		267			(267		)	—
Intercompany receivable	—			—		140,562			(140,562		)	—
Investments in subsidiaries	582,319			—		—			(582,319		)	—
Total assets	$	612,633		$	214,480	$	404,215		$	(725,596	)	$	505,732

LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of notes payable	$	3,240		$	—	$	—		$	—		$	3,240
Accounts payable and accrued liabilities	10,092			5,435		15,300			—			30,827
Income taxes payable	2,448			—		—			(2,448		)	—
Total current liabilities	15,780			5,435		15,300			(2,448		)	34,067

Revolving unsecured credit facility	52,000			—		—			—			52,000
Notes payable, net of current portion	7,531			—		—			—			7,531
Deferred income tax liabilities	1,781			8,457		7,184			(267		)	17,155
Intercompany payable	140,562			—		—			(140,562		)	—
Total liabilities	217,654			13,892		22,484			(143,277		)	110,753

Stockholders' equity:
Preferred stock	—			—		—			—			—
Common stock	393			—		—			—			393
Additional paid-in capital	175,144			—		—			—			175,144
Retained earnings	433,656			200,588		382,221			(582,319		)	434,146
Accumulated other comprehensive income (loss) from cumulative foreign currency translation adjustments	(219		)	—		(490		)	—			(709		)
Common stock held in treasury, at cost	(213,995		)	—		—			—			(213,995		)



Condensed Consolidating Balance Sheet (Continued)
March 31, 2013
(unaudited, in thousands)

	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Eliminations			Consolidated
Total stockholders' equity	394,979		200,588		381,731		(582,319		)	394,979
Total liabilities and stockholders' equity	$	612,633	$	214,480	$	404,215	$	(725,596	)	$	505,732



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2014
(unaudited, in thousands)

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Cash flow from operating activities:
Net cash flow provided by (used in) operating activities	$	18,875		$	(8,673	)	$	15,392		$	—	$	25,594
Cash flow from investing activities:
Loan receivables, net of cash repayments	—			13,611			(7,838		)	—		5,773
Purchases of property and equipment	(160		)	(1,477		)	(4,037		)	—		(5,674		)
Acquisitions of pawn stores, net of cash acquired	—			(4,889		)	—			—		(4,889		)
Investing activity with subsidiaries	4,478			—			(4,478		)	—		—
Net cash flow provided by (used in) investing activities	4,318			7,245			(16,353		)	—		(4,790		)
Cash flow from financing activities:
Borrowings from revolving credit facilities	2,500			—			—			—		2,500
Repayments of revolving credit facilities	(184,500		)	—			—			—		(184,500		)
Repayments of notes payable	(8,352		)	—			—			—		(8,352		)
Issuance of senior notes	200,000			—			—			—		200,000
Debt issuance costs paid	(5,909		)	—			—			—		(5,909		)
Net cash flow provided by (used in) financing activities	3,739			—			—			—		3,739
Effect of exchange rates on cash	—			—			(257		)	—		(257		)
Change in cash and cash equivalents	26,932			(1,428		)	(1,218		)	—		24,286
Cash and cash equivalents at beginning of the period	24,674			4,240			41,729			—		70,643
Cash and cash equivalents at end of the period	$	51,606		$	2,812		$	40,511		$	—	$	94,929



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2013
(unaudited, in thousands)

	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Cash flow from operating activities:
Net cash flow provided by (used in) operating activities	$	21,880		$	(9,440	)	$	12,754		$	—	$	25,194
Cash flow from investing activities:
Loan receivables, net of cash repayments	—			10,356			(7,220		)	—		3,136
Purchases of property and equipment	(976		)	(770		)	(2,958		)	—		(4,704		)
Acquisitions of pawn stores, net of cash acquired	—			—			(1,468		)	—		(1,468		)
Investing activity with subsidiaries	22,067			—			(22,067		)	—		—
Net cash flow provided by (used in) investing activities	21,091			9,586			(33,713		)	—		(3,036		)
Cash flow from financing activities:
Repayments of revolving credit facilities	(50,500		)	—			—			—		(50,500		)
Repayments of notes payable	(792		)	—			—			—		(792		)
Proceeds from exercise of share-based compensation awards	8,422			—			—			—		8,422
Income tax benefit from exercise of stock options	7,218			—			—			—		7,218
Net cash flow provided by (used in) financing activities	(35,652		)	—			—			—		(35,652		)
Effect of exchange rates on cash	—			—			1,548			—		1,548
Change in cash and cash equivalents	7,319			146			(19,411		)	—		(11,946		)
Cash and cash equivalents at beginning of the period	12,145			3,885			34,255			—		50,285
Cash and cash equivalents at end of the period	$	19,464		$	4,031		$	14,844		$	—	$	38,339



Condensed Consolidating Balance Sheet
December 31, 2013
(unaudited, in thousands)

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	24,674		$	4,240	$	41,729		$	—		$	70,643
Pawn loan fees and service charges receivable	—			7,934		8,755			—			16,689
Pawn loans	—			56,566		58,668			—			115,234
Consumer loans, net	—			694		756			—			1,450
Inventories	—			33,817		43,976			—			77,793
Prepaid expenses and other current assets	1,971			—		1,398			—			3,369
Deferred tax assets	907			—		4,137			—			5,044
Total current assets	27,552			103,251		159,419			—			290,222

Property and equipment, net	4,155			47,374		56,608			—			108,137
Goodwill, net	—			149,470		101,771			—			251,241
Other non-current assets	—			6,020		3,353			—			9,373
Deferred tax assets	—			—		6,943			(6,943		)	—
Intercompany receivable	—			—		156,794			(156,794		)	—
Investments in subsidiaries	751,785			—		—			(751,785		)	—
Total assets	$	783,492		$	306,115	$	484,888		$	(915,522	)	$	658,973

LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of notes payable	$	3,326		$	—	$	—		$	—		$	3,326
Accounts payable and accrued liabilities	13,804			6,942		17,277			—			38,023
Income taxes payable	7,302			—		110			—			7,412
Total current liabilities	24,432			6,942		17,387			—			48,761

Revolving unsecured credit facility	182,000			—		—			—			182,000
Notes payable, net of current portion	5,026			—		—			—			5,026
Deferred income tax liabilities	881			10,080		4,809			(6,943		)	8,827
Intercompany payable	156,794			—		—			(156,794		)	—
Total liabilities	369,133			17,022		22,196			(163,737		)	244,614

Stockholders' equity:
Preferred stock	—			—		—			—			—
Common stock	394			—		—			—			394
Additional paid-in capital	176,675			—		—			—			176,675
Retained earnings	490,280			289,093		470,140			(751,785		)	497,728
Accumulated other comprehensive income (loss) from cumulative foreign currency translation adjustments	(303		)	—		(7,448		)	—			(7,751		)
Common stock held in treasury, at cost	(252,687		)	—		—			—			(252,687		)



Condensed Consolidating Balance Sheet (Continued)
December 31, 2013
(unaudited, in thousands)

	Parent Company		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Eliminations			Consolidated
Total stockholders' equity	414,359		289,093		462,692		(751,785		)	414,359
Total liabilities and stockholders' equity	$	783,492	$	306,115	$	484,888	$	(915,522	)	$	658,973