Segment Reporting

6 Months Ended

Jul. 31, 2011

Segment Reporting [Abstract]

Segment Reporting

8.  Segment Reporting

Financial information by segment is presented in the following tables for the three months and six months ended July 31, 2010 and 2011:

	Three Months Ended July 31,							Three Months Ended July 31,
	2010							2011
(Dollars in thousands)	Retail		Credit			Total		Retail			Credit			Total
Revenues
Product sales	$	164,660	$	-		$	164,660	$	138,231		$	-		$	138,231
Repair service agreement commissions (net)		10,490		(2,122	)		8,368		9,945			(1,356	)		8,589
Service revenues		4,183		-			4,183		3,811			-			3,811
Total net sales		179,333		(2,122	)		177,211		151,987			(1,356	)		150,631
Finance charges and other		217		35,688			35,905		393			33,351			33,744
Total revenues		179,550		33,566			213,116		152,380			31,995			184,375
Cost and expenses
Cost of goods sold, including warehousing     and occupancy costs		130,217		-			130,217		105,400			-			105,400
Cost of service parts sold, including     warehousing and occupancy cost		2,116		-			2,116		1,596			-			1,596
Selling, general and administrative expense		44,764		16,205			60,969		42,086			14,165			56,251
Costs related to store closings		-		-			-		3,658			-			3,658
Provision for bad debts		261		10,078			10,339		191			4,818			5,009
Total cost and expenses		177,358		26,283			203,641		152,931			18,983			171,914
Operating income		2,192		7,283			9,475		(551	)		13,012			12,461
Interest expense, net		-		6,729			6,729		-			7,004			7,004
Loss from early extinguishment of debt		-		-			-		-			11,056			11,056
Other expense, net		12		-			12		34			-			34
Income (loss) before     income taxes	$	2,180	$	554		$	2,734	$	(585	)	$	(5,048	)	$	(5,633	)
Total assets	$	221,930	$	673,413		$	895,343	$	191,136		$	581,056		$	772,192

	Six Months Ended							Six Months Ended
	2010							2011
(Dollars in thousands)	Retail		Credit			Total		Retail		Credit			Total
Revenues
Product sales	$	313,675	$	-		$	313,675	$	282,510	$	-		$	282,510
Repair service agreement commissions (net)		20,341		(3,912	)		16,429		18,847		(2,736	)		16,111
Service revenues		8,940		-			8,940		7,700		-			7,700
Total net sales		342,956		(3,912	)		339,044		309,057		(2,736	)		306,321
Finance charges and other		466		71,515			71,981		618		66,745			67,363
Total revenues		343,422		67,603			411,025		309,675		64,009			373,684
Cost and expenses
Cost of goods sold, including warehousing     and occupancy costs		244,433		-			244,433		215,110		-			215,110
Cost of service parts sold, including     warehousing and occupancy cost		4,492		-			4,492		3,326		-			3,326
Selling, general and administrative expense		86,549		32,752			119,301		82,931		29,508			112,439
Costs related to store closings		-		-			-		3,658		-			3,658
Provision for bad debts		397		17,576			17,973		334		12,196			12,530
Total cost and expenses		335,871		50,328			386,199		305,359		41,704			347,063
Operating income		7,551		17,275			24,826		4,316		22,305			26,621
Interest expense, net		-		12,512			12,512		-		14,560			14,560
Loss from early extinguishment of debt		-		-			-		-		11,056			11,056
Other expense, net		183		-			183		86		-			86
Income (loss) before     income taxes	$	7,368	$	4,763		$	12,131	$	4,230	$	(3,311	)	$	919

(a) - Retail repair service agreement commissions exclude repair service agreement cancellations that are the result of customer credit account charge-offs. These amounts are reflected in repair service agreement commissions for the credit segment. The allocation of the cancellations was adjusted in the prior period presentation to conform to the current period's presentation, which is consistent with the basis that management uses internally to allocate those items.

(b) - Selling, general and administrative expenses include the direct expenses of the retail and credit operations, allocated overhead expenses and a charge to the credit segment to reimburse the retail segment for expenses it incurs related to occupancy, personnel, advertising and other direct costs of the retail segment which benefit the credit operations by sourcing credit customers and collecting payments. The reimbursement received by the retail segment from the credit segment is estimated using an annual rate of 2.5% times the average portfolio balance for each applicable period. The amount of overhead allocated to each segment was approximately $3.4 million and $3.9 million for the six months ended July 31, 2010 and 2011, respectively. The amount of overhead allocated to each segment was approximately $1.7 million and $1.8 million for the three months ended July 31, 2010 and 2011, respectively. The amount of reimbursement made to the retail segment by the credit segment was approximately $8.9 million and $7.9 million for the six months ended July 31, 2010 and 2011, respectively and approximately $4.4 million and $3.8 million for the three months ended July 31, 2010 and 2011, respectively.

(c) - Selling, general and administrative expenses of the retail segment include depreciation expense of approximately $6.4 million and $5.3 million for the six months ended July, 31, 2010 and 2011, and approximately $3.2 million and $2.6 million for the three months ended July 31, 2010 and 2011,  respectively. Selling, general and administrative expenses of the credit segment include depreciation expense of approximately $0.2 million and $0.3 million for the six months ended July 31, 2010 and 2011, respectively and approximately $0.1 million for each of the three months ended July 31, 2010 and 2011.

(d) - Interest expense, net, of the credit segment includes amortization expense related to debt issuance costs of approximately $1.9 million and $1.4 million for the six months ended July 31, 2010 and 2011, respectively and approximately $0.9 million and $0.7 million for the three months ended July 31, 2010 and 2011, respectively.