Segment Information (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following tables present reportable segment information for the three and nine month periods ended September 30, 2019 and 2018 (in thousands):



	Three Months Ended September 30, 2019
	U.S. Operations		Latin America Operations		Corporate			Consolidated
Revenue:
Retail merchandise sales	$	168,092	$	113,266	$	—		$	281,358
Pawn loan fees	95,125		47,754		—			142,879
Wholesale scrap jewelry sales	18,369		7,292		—			25,661
Consumer loan and credit services fees	2,561		—		—			2,561
Total revenue	284,147		168,312		—			452,459

Cost of revenue:
Cost of retail merchandise sold	103,728		74,869		—			178,597
Cost of wholesale scrap jewelry sold	16,217		6,443		—			22,660
Consumer loan and credit services loss provision	223		—		—			223
Total cost of revenue	120,168		81,312		—			201,480

Net revenue	163,979		87,000		—			250,979

Expenses and other income:
Store operating expenses	103,315		46,504		—			149,819
Administrative expenses	—		—		30,576			30,576
Depreciation and amortization	5,213		3,795		1,666			10,674
Interest expense	—		—		8,922			8,922
Interest income	—		—		(429		)	(429		)
Merger and other acquisition expenses	—		—		805			805
Loss on foreign exchange	—		—		1,648			1,648
Total expenses and other income	108,528		50,299		43,188			202,015

Income (loss) before income taxes	$	55,451	$	36,701	$	(43,188	)	$	48,964



	Three Months Ended September 30, 2018
	U.S. Operations		Latin America Operations		Corporate			Consolidated
Revenue:
Retail merchandise sales	$	162,001	$	94,416	$	—		$	256,417
Pawn loan fees	93,344		41,269		—			134,613
Wholesale scrap jewelry sales	18,804		5,846		—			24,650
Consumer loan and credit services fees	14,082		116		—			14,198
Total revenue	288,231		141,647		—			429,878

Cost of revenue:
Cost of retail merchandise sold	102,370		60,917		—			163,287
Cost of wholesale scrap jewelry sold	17,595		6,264		—			23,859
Consumer loan and credit services loss provision	5,420		54		—			5,474
Total cost of revenue	125,385		67,235		—			192,620

Net revenue	162,846		74,412		—			237,258

Expenses and other income:
Store operating expenses ⁽¹⁾	102,955		38,765		—			141,720
Administrative expenses	—		—		29,977			29,977
Depreciation and amortization	5,285		2,915		2,650			10,850
Interest expense	—		—		7,866			7,866
Interest income	—		—		(495		)	(495		)
Merger and other acquisition expenses	—		—		3,222			3,222
Loss on foreign exchange ⁽¹⁾	—		—		35			35
Total expenses and other income	108,240		41,680		43,255			193,175

Income (loss) before income taxes	$	54,606	$	32,732	$	(43,255	)	$	44,083

⁽¹⁾

The loss on foreign exchange for the Latin America operations segment of $35,000 for the three months ended September 30, 2018 was reclassified on the consolidated statements of income in order to conform with the presentation for the three months ended September 30, 2019. The loss on foreign exchange was reclassified from store operating expenses and reported separately on the consolidated statements of income.



	Nine Months Ended September 30, 2019
	U.S. Operations		Latin America Operations		Corporate			Consolidated
Revenue:
Retail merchandise sales	$	523,825	$	320,528	$	—		$	844,353
Pawn loan fees	283,127		137,867		—			420,994
Wholesale scrap jewelry sales	56,942		25,410		—			82,352
Consumer loan and credit services fees	18,378		—		—			18,378
Total revenue	882,272		483,805		—			1,366,077

Cost of revenue:
Cost of retail merchandise sold	326,134		208,084		—			534,218
Cost of wholesale scrap jewelry sold	52,340		24,607		—			76,947
Consumer loan and credit services loss provision	3,829		—		—			3,829
Total cost of revenue	382,303		232,691		—			614,994

Net revenue	499,969		251,114		—			751,083

Expenses and other income:
Store operating expenses	310,208		134,810		—			445,018
Administrative expenses	—		—		94,426			94,426
Depreciation and amortization	15,527		10,679		4,852			31,058
Interest expense	—		—		25,840			25,840
Interest income	—		—		(788		)	(788		)
Merger and other acquisition expenses	—		—		1,510			1,510
Loss on foreign exchange	—		—		926			926
Total expenses and other income	325,735		145,489		126,766			597,990

Income (loss) before income taxes	$	174,234	$	105,625	$	(126,766	)	$	153,093



	Nine Months Ended September 30, 2018
	U.S. Operations		Latin America Operations		Corporate			Consolidated
Revenue:
Retail merchandise sales	$	514,494	$	267,506	$	—		$	782,000
Pawn loan fees	277,411		110,007		—			387,418
Wholesale scrap jewelry sales	70,394		16,456		—			86,850
Consumer loan and credit services fees	42,522		860		—			43,382
Total revenue	904,821		394,829		—			1,299,650

Cost of revenue:
Cost of retail merchandise sold	328,258		173,100		—			501,358
Cost of wholesale scrap jewelry sold	64,203		16,227		—			80,430
Consumer loan and credit services loss provision	12,874		221		—			13,095
Total cost of revenue	405,335		189,548		—			594,883

Net revenue	499,486		205,281		—			704,767

Expenses and other income:
Store operating expenses ⁽¹⁾	310,963		107,148		—			418,111
Administrative expenses	—		—		87,699			87,699
Depreciation and amortization	15,877		8,364		8,844			33,085
Interest expense	—		—		20,593			20,593
Interest income	—		—		(2,216		)	(2,216		)
Merger and other acquisition expenses	—		—		5,574			5,574
Gain on foreign exchange⁽¹⁾	—		—		(212		)	(212		)
Total expenses and other income	326,840		115,512		120,282			562,634

Income (loss) before income taxes	$	172,646	$	89,769	$	(120,282	)	$	142,133

⁽¹⁾

The gain on foreign exchange for the Latin America operations segment of $0.2 million for the nine months ended September 30, 2018 was reclassified on the consolidated statements of income in order to conform with the presentation for the nine months ended September 30, 2019. The gain on foreign exchange was reclassified from store operating expenses and reported separately on the consolidated statements of income.