Segment Information

3 Months Ended

Mar. 31, 2019

The Company organizes its operations into two reportable segments as follows:


•	U.S. operations - Includes all pawn and consumer loan operations in the U.S.


•	Latin America operations - Includes all pawn and consumer loan operations in Latin America, which includes operations in Mexico, Guatemala, El Salvador and Colombia.

The following tables present reportable segment information for the three month period ended March 31, 2019 and 2018 (in thousands):



	Three Months Ended March 31, 2019
	U.S. Operations		Latin America Operations		Corporate			Consolidated
Revenue:
Retail merchandise sales	$	186,815	$	97,426	$	—		$	284,241
Pawn loan fees	97,876		43,316		—			141,192
Wholesale scrap jewelry sales	22,785		8,925		—			31,710
Consumer loan and credit services fees	10,461		—		—			10,461
Total revenue	317,937		149,667		—			467,604

Cost of revenue:
Cost of retail merchandise sold	117,744		61,605		—			179,349
Cost of wholesale scrap jewelry sold	21,270		9,083		—			30,353
Consumer loan and credit services loss provision	2,103		—		—			2,103
Total cost of revenue	141,117		70,688		—			211,805

Net revenue	176,820		78,979		—			255,799

Expenses and other income:
Store operating expenses	103,884		42,968		—			146,852
Administrative expenses	—		—		32,154			32,154
Depreciation and amortization	5,045		3,305		1,524			9,874
Interest expense	—		—		8,370			8,370
Interest income	—		—		(204		)	(204		)
Merger and other acquisition expenses	—		—		149			149
Gain on foreign exchange	—		—		(239		)	(239		)
Total expenses and other income	108,929		46,273		41,754			196,956

Income (loss) before income taxes	$	67,891	$	32,706	$	(41,754	)	$	58,843



	Three Months Ended March 31, 2018
	U.S. Operations		Latin America Operations		Corporate			Consolidated
Revenue:
Retail merchandise sales	$	186,052	$	83,789	$	—		$	269,841
Pawn loan fees	96,242		33,551		—			129,793
Wholesale scrap jewelry sales	29,457		5,268		—			34,725
Consumer loan and credit services fees	15,039		402		—			15,441
Total revenue	326,790		123,010		—			449,800

Cost of revenue:
Cost of retail merchandise sold	120,616		53,881		—			174,497
Cost of wholesale scrap jewelry sold	27,653		4,842		—			32,495
Consumer loan and credit services loss provision	3,644		83		—			3,727
Total cost of revenue	151,913		58,806		—			210,719

Net revenue	174,877		64,204		—			239,081

Expenses and other income:
Store operating expenses ⁽¹⁾	104,383		33,965		—			138,348
Administrative expenses	—		—		28,002			28,002
Depreciation and amortization	5,555		2,709		3,019			11,283
Interest expense	—		—		6,198			6,198
Interest income	—		—		(981		)	(981		)
Merger and other acquisition expenses	—		—		239			239
Loss on foreign exchange ⁽¹⁾	—		—		213			213
Total expenses and other income	109,938		36,674		36,690			183,302

Income (loss) before income taxes	$	64,939	$	27,530	$	(36,690	)	$	55,779

⁽¹⁾

The loss on foreign exchange for the Latin America operations segment of $0.2 million for the three months ended March 31, 2018 was reclassified on the consolidated statements of income in order to conform with the presentation for the three months ended March 31, 2019. The loss on foreign exchange was reclassified from store operating expenses and reported separately on the consolidated statements of income.