Segment Information

3 Months Ended

Dec. 31, 2019

NOTE 10: SEGMENT INFORMATION

During the first quarter of fiscal 2020, we revised the financial information our chief operating decision maker (currently our chief executive officer) reviews for operational decision-making purposes and for allocation of capital to include the separate financial results of our Lana business. Our historical segment results have been recast to conform to current presentation. We currently report our segments as follows: U.S. Pawn — all pawn activities in the United States; Latin America Pawn — all pawn activities in Mexico and other parts of Latin America; Lana — our differentiated customer-centric engagement platform; and Other International — primarily our equity interest in the net income of Cash Converters International and consumer finance activities in Canada. There are no inter-segment revenues presented below, and the amounts below were determined in accordance with the same accounting principles used in our condensed consolidated financial statements. While we expect the operations of the Lana segment to have a positive impact on our pawn loan redemption rates and therefore our pawn service charges and yield, the pawn service charges will all be reported in our pawn segments rather than allocated to the Lana segment. Only discrete revenues related to the Lana segment will be reported in the Lana segment results.



	Three Months Ended December 31, 2019
	U.S. Pawn		Latin America Pawn			Lana			Other International			Total Segments			Corporate Items			Consolidated

	(in thousands)
Revenues:
Merchandise sales	$	95,354	$	31,374		$	—		$	—		$	126,728		$	—		$	126,728
Jewelry scrapping sales	6,117		3,411			—			—			9,528			—			9,528
Pawn service charges	64,090		20,635			—			—			84,725			—			84,725
Other revenues	36		25			1			1,392			1,454			—			1,454
Total revenues	165,597		55,445			1			1,392			222,435			—			222,435
Merchandise cost of goods sold	61,364		22,712			—			—			84,076			—			84,076
Jewelry scrapping cost of goods sold	4,755		2,999			—			—			7,754			—			7,754
Other cost of revenues	—		—			—			536			536			—			536
Net revenues	99,478		29,734			1			856			130,069			—			130,069
Segment and corporate expenses (income):
Operations	68,059		19,983			1,350			1,233			90,625			—			90,625
Administrative	—		—			—			—			—			17,489			17,489
Depreciation and amortization	2,865		1,889			12			34			4,800			2,933			7,733
Loss on sale or disposal of assets and other	—		28			—			—			28			716			744
Interest expense	—		28			(36		)	170			162			5,167			5,329
Interest income	—		(388		)	—			—			(388		)	(455		)	(843		)
Equity in net loss of unconsolidated affiliates	—		—			—			5,897			5,897			—			5,897
Other expense (income)	—		67			—			(1		)	66			5			71
Segment contribution (loss)	$	28,554	$	8,127		$	(1,325	)	$	(6,477	)	$	28,879
Income from continuing operations before income taxes												$	28,879		$	(25,855	)	$	3,024



	Three Months Ended December 31, 2018
	U.S. Pawn		Latin America Pawn			Lana			Other International			Total Segments			Corporate Items			Consolidated

	(in thousands)
Revenues:
Merchandise sales	$	95,103	$	25,921		$	—		$	—		$	121,024		$	—		$	121,024
Jewelry scrapping sales	6,552		2,729			—			—			9,281			—			9,281
Pawn service charges	64,225		19,294			—			—			83,519			—			83,519
Other revenues	48		42			—			1,781			1,871			—			1,871
Total revenues	165,928		47,986			—			1,781			215,695			—			215,695
Merchandise cost of goods sold	59,148		17,964			—			—			77,112			—			77,112
Jewelry scrapping cost of goods sold	5,510		2,540			—			—			8,050			—			8,050
Other cost of revenues	—		—			—			484			484			—			484
Net revenues	101,270		27,482			—			1,297			130,049			—			130,049
Segment and corporate expenses (income):
Operations	67,937		18,196			2,090			2,630			90,853			—			90,853
Administrative	—		—			—			—			—			13,165			13,165
Depreciation and amortization	3,035		1,422			—			41			4,498			2,350			6,848
Loss on sale or disposal of assets and other	2,853		1,589			—			—			4,442			—			4,442
Interest expense	—		29			—			72			101			8,690			8,791
Interest income	—		(419		)	—			—			(419		)	(2,920		)	(3,339		)
Equity in net loss of unconsolidated affiliates	—		—			—			1,119			1,119			—			1,119
Impairment of investments in unconsolidated affiliates	—		—			—			13,274			13,274			—			13,274
Other (income) expense	—		(126		)	—			22			(104		)	(282		)	(386		)
Segment contribution (loss)	$	27,445	$	6,791		$	(2,090	)	$	(15,861	)	$	16,285
Loss from continuing operations before income taxes												$	16,285		$	(21,003	)	$	(4,718	)