Condensed Consolidating Guarantor Financial Statements (Tables)

3 Months Ended

Mar. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]



Condensed Consolidating Balance Sheet
March 31, 2015
(unaudited, in thousands)

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	13,136		$	2,481	$	60,186		$	—		$	75,803
Pawn loan fees and service charges receivable	—			5,860		10,372			—			16,232
Pawn loans	—			47,433		66,873			—			114,306
Consumer loans, net	—			411		566			—			977
Inventories	—			30,718		51,836			—			82,554
Prepaid expenses and other current assets	1,647			—		2,145			(490		)	3,302
Deferred tax assets	1,069			—		5,987			—			7,056
Total current assets	15,852			86,903		197,965			(490		)	300,230

Property and equipment, net	3,916			50,099		58,572			—			112,587
Goodwill, net	—			158,568		117,977			—			276,545
Other non-current assets	5,711			4,518		5,249			—			15,478
Deferred tax assets	531			—		19,416			(19,499		)	448
Intercompany receivable	—			—		172,866			(172,866		)	—
Investments in subsidiaries	826,784			—		—			(826,784		)	—
Total assets	$	852,794		$	300,088	$	572,045		$	(1,019,639	)	$	705,288

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	15,854		$	6,850	$	19,000		$	—		$	41,704
Income taxes payable	540			—		—			(490		)	50
Total current liabilities	16,394			6,850		19,000			(490		)	41,754

Revolving unsecured credit facilities	14,500			—		—			—			14,500
Senior unsecured notes	200,000			—		—			—			200,000
Deferred tax liabilities	—			15,108		4,391			(19,499		)	—
Intercompany payable	172,866			—		—			(172,866		)	—
Total liabilities	403,760			21,958		23,391			(192,855		)	256,254

Stockholders’ equity:
Preferred stock	—			—		—			—			—
Common stock	399			—		—			—			399
Additional paid-in capital	193,278			—		—			—			193,278
Retained earnings	568,965			278,130		579,371			(826,784		)	599,682
Accumulated other comprehensive loss	—			—		(30,717		)	—			(30,717		)
Common stock held in treasury, at cost	(313,608		)	—		—			—			(313,608		)
Total stockholders’ equity	449,034			278,130		548,654			(826,784		)	449,034
Total liabilities and stockholders’ equity	$	852,794		$	300,088	$	572,045		$	(1,019,639	)	$	705,288



Condensed Consolidating Statement of Cash Flows
Three Months Ended March 31, 2015
(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	$	23,097		$	(10,584	)	$	14,917		$	—	$	27,430
Cash flow from investing activities:
Loan receivables, net of cash repayments	—			11,857			(3,545		)	—		8,312
Purchases of property and equipment	(138		)	(1,179		)	(3,069		)	—		(4,386		)
Acquisitions of pawn stores, net of cash acquired	—			(519		)	(1,031		)	—		(1,550		)
Investing activity with subsidiaries	2,734			—			(2,734		)	—		—
Net cash flow provided by (used in) investing activities	2,596			10,159			(10,379		)	—		2,376
Cash flow from financing activities:
Borrowings from revolving credit facilities	21,555			—			—			—		21,555
Repayments of revolving credit facilities	(29,455		)	—			—			—		(29,455		)
Purchases of treasury stock	(16,974		)	—			—			—		(16,974		)
Proceeds from exercise of share-based compensation awards	2,901			—			—			—		2,901
Income tax benefit from exercise of stock options	1,617			—			—			—		1,617
Net cash flow used in financing activities	(20,356		)	—			—			—		(20,356		)
Effect of exchange rates on cash	—			—			(1,639		)	—		(1,639		)
Change in cash and cash equivalents	5,337			(425		)	2,899			—		7,811
Cash and cash equivalents at beginning of the period	7,799			2,906			57,287			—		67,992
Cash and cash equivalents at end of the period	$	13,136		$	2,481		$	60,186		$	—	$	75,803



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

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	7,799		$	2,906	$	57,287		$	—		$	67,992
Pawn loan fees and service charges receivable	—			7,120		9,806			—			16,926
Pawn loans	—			55,709		62,827			—			118,536
Consumer loans, net	—			655		586			—			1,241
Inventories	—			35,206		55,882			—			91,088
Prepaid expenses and other current assets	1,881			—		3,089			—			4,970
Deferred tax assets	1,069			—		6,053			—			7,122
Total current assets	10,749			101,596		195,530			—			307,875

Property and equipment, net	3,997			50,184		59,569			—			113,750
Goodwill, net	—			158,308		118,574			—			276,882
Other non-current assets	5,967			4,744		5,457			—			16,168
Deferred tax assets	—			—		17,127			(17,127		)	—
Intercompany receivable	—			—		170,132			(170,132		)	—
Investments in subsidiaries	837,486			—		—			(837,486		)	—
Total assets	$	858,199		$	314,832	$	566,389		$	(1,024,745	)	$	714,675

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	16,940		$	6,459	$	19,160		$	—		$	42,559
Total current liabilities	16,940			6,459		19,160			—			42,559

Revolving unsecured credit facility	22,400			—		—			—			22,400
Senior unsecured notes	200,000			—		—			—			200,000
Deferred tax liabilities	176			14,069		4,047			(17,127		)	1,165
Intercompany payable	170,132			—		—			(170,132		)	—
Total liabilities	409,648			20,528		23,207			(187,259		)	266,124

Stockholders’ equity:
Preferred stock	—			—		—			—			—
Common stock	397			—		—			—			397
Additional paid-in capital	188,062			—		—			—			188,062
Retained earnings	556,726			294,304		569,350			(837,486		)	582,894
Accumulated other comprehensive loss	—			—		(26,168		)	—			(26,168		)
Common stock held in treasury, at cost	(296,634		)	—		—			—			(296,634		)
Total stockholders’ equity	448,551			294,304		543,182			(837,486		)	448,551
Total liabilities and stockholders’ equity	$	858,199		$	314,832	$	566,389		$	(1,024,745	)	$	714,675



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 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	512,404			273,538		483,203			(748,735		)	520,410
Accumulated other comprehensive loss	—			—		(8,006		)	—			(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 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	$	18,449		$	(8,648	)	$	15,392		$	—	$	25,193
Cash flow from investing activities:
Loan receivables, net of cash repayments	—			13,611			(7,838		)	—		5,773
Purchases of property and equipment	(135		)	(1,502		)	(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	4,343			7,220			(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	(5,508		)	—			—			—		(5,508		)
Net cash flow provided by financing activities	4,140			—			—			—		4,140
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 Comprehensive Income
Three Months Ended March 31, 2015
(unaudited, in thousands)

	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Revenue:
Retail merchandise sales	$	—		$	37,576	$	72,878		$	—	$	110,454
Pawn loan fees	—			19,269		29,385			—		48,654
Consumer loan and credit services fees	—			6,944		651			—		7,595
Wholesale scrap jewelry revenue	—			4,828		4,492			—		9,320
Total revenue	—			68,617		107,406			—		176,023

Cost of revenue:
Cost of retail merchandise sold	—			21,459		46,787			—		68,246
Consumer loan and credit services loss provision	—			921		76			—		997
Cost of wholesale scrap jewelry sold	—			4,417		3,592			—		8,009
Total cost of revenue	—			26,797		50,455			—		77,252

Net revenue	—			41,820		56,951			—		98,771

Expenses and other income:
Store operating expenses	—			20,423		31,898			—		52,321
Administrative expenses	6,572			—		7,266			—		13,838
Depreciation and amortization	219			1,521		2,807			—		4,547
Interest expense	4,020			—		—			—		4,020
Interest income	(1		)	—		(343		)	—		(344		)
Total expenses and other income	10,810			21,944		41,628			—		74,382

Income (loss) before income taxes	(10,810		)	19,876		15,323			—		24,389

Provision for income taxes	(3,718		)	7,354		3,965			—		7,601

Net income (loss)	$	(7,092	)	$	12,522	$	11,358		$	—	$	16,788
Other comprehensive income (loss):
Currency translation adjustment, net of tax expense or benefit	—			—		(4,549		)	—		(4,549		)
Comprehensive income (loss)	$	(7,092	)	$	12,522	$	6,809		$	—	$	12,239



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	265			1,475		2,532			—		4,272
Interest expense	1,436			—		—			—		1,436
Interest income	(4		)	—		(77		)	—		(81		)
Total expenses and other income	8,748			22,662		36,038			—		67,448

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

Loss from discontinued operations, net of tax	—			—		(272		)	—		(272		)
Net income (loss)	$	(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 (loss)	$	(2,251	)	$	14,178	$	10,500		$	—	$	22,427