Segment Information

12 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Information

NOTE 14: SEGMENT INFORMATION

Our operations are primarily managed on a geographical basis and consist of three reportable segments. The factors for determining our reportable segments include the manner in which our chief operating decision maker (CODM) evaluates performance for purposes of allocating resources and assessing performance. During the first quarter of fiscal 2021, the financial information of our Lana business activities were no longer reviewed by the CODM for evaluating performance since Lana no longer has business activities but, rather, offers support activities to our U.S. Pawn and Latin America Pawn operating segments. As a result, Lana is no longer an operating or reportable segment.

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; and

•Other Investments — Primarily our equity interest in the net income of Cash Converters along with our investment in Founders and RDC.

There are no inter-segment revenues presented below, and the amounts below were determined in accordance with the same accounting principles used in our consolidated financial statements.

The following tables present revenue for each reportable segment, disaggregated revenue within our three reportable segments and Corporate, segment profits and segment contribution.

	Fiscal Year Ended September 30, 2022
(in thousands)	U.S. Pawn		Latin America Pawn		Other Investments		Total Segments		Corporate Items		Consolidated
Revenues:
Merchandise sales	$	391,958	$	140,928	$	—	$	532,886	$	—	$	532,886
Jewelry scrapping sales	25,739		6,294		—		32,033		—		32,033
Pawn service charges	240,982		79,883		—		320,865		—		320,865
Other revenues	83		247		111		441		—		441
Total revenues	658,762		227,352		111		886,225		—		886,225
Merchandise cost of goods sold	230,241		99,141		—		329,382		—		329,382
Jewelry scrapping cost of goods sold	22,755		5,941		—		28,696		—		28,696
Gross profit	405,766		122,270		111		528,147		—		528,147
Segment and corporate expenses (income):
Store expenses	266,114		91,303		—		357,417		—		357,417
General and administrative	—		—		—		—		64,342		64,342
Depreciation and amortization	10,552		7,913		—		18,465		13,675		32,140
(Gain) loss on sale or disposal of assets and other	51		(37)		—		14		(688)		(674)
Interest expense	—		—		—		—		9,972		9,972
Interest income	(2)		(815)		—		(817)		—		(817)
Equity in net income of unconsolidated affiliates	—		—		(1,779)		(1,779)		—		(1,779)
Other (income) expense	—		(148)		52		(96)		(71)		(167)
Segment contribution	$	129,051	$	24,054	$	1,838	$	154,943
Income (loss) before income taxes							$	154,943	$	(87,230)	$	67,713

	Fiscal Year Ended September 30, 2021
(in thousands)	U.S. Pawn		Latin America Pawn		Other Investments		Total Segments		Corporate Items		Consolidated
Revenues:
Merchandise sales	$	341,495	$	101,303	$	—	$	442,798	$	—	$	442,798
Jewelry scrapping sales	15,260		10,765		—		26,025		—		26,025
Pawn service charges	196,721		63,475		—		260,196		—		260,196
Other revenues	105		7		420		532		—		532
Total revenues	553,581		175,550		420		729,551		—		729,551
Merchandise cost of goods sold	191,039		66,179		—		257,218		—		257,218
Jewelry scrapping cost of goods sold	13,001		9,847		—		22,848		—		22,848
Gross profit	349,541		99,524		420		449,485		—		449,485
Segment and corporate expenses (income):
Store expenses	253,344		77,493		—		330,837		—		330,837
General and administrative	—		—		—		—		56,495		56,495
Depreciation and amortization	10,650		7,371		—		18,021		12,651		30,672
Gain (loss) on sale or disposal of assets	27		(6)		—		21		62		83
Other Charges	—		229		—		229		—		229
Interest expense	—		—		—		—		22,177		22,177
Interest income	—		(2,016)		—		(2,016)		(461)		(2,477)
Equity in net income of unconsolidated affiliates	—		—		(3,803)		(3,803)		—		(3,803)
Other (income) expense	—		(840)		(173)		(1,013)		223		(790)
Segment contribution	$	85,520	$	17,293	$	4,396	$	107,209
Income (loss) before income taxes							$	107,209	$	(91,147)	$	16,062

	Fiscal Year Ended September 30, 2020
(in thousands)	U.S. Pawn		Latin America Pawn		Other Investments		Total Segments		Corporate Items		Consolidated
Revenues:
Merchandise sales	$	391,921	$	106,292	$	—	$	498,213	$	—	$	498,213
Jewelry scrapping sales	36,691		11,262		—		47,953		—		47,953
Pawn service charges	210,081		62,557		—		272,638		—		272,638
Other revenues	150		—		3,823		3,973		—		3,973
Total revenues	638,843		180,111		3,823		822,777		—		822,777
Merchandise cost of goods sold	251,544		82,937		—		334,481		—		334,481
Jewelry scrapping cost of goods sold	28,064		9,977		—		38,041		—		38,041
Other cost of revenues	—		101		953		1,054		—		1,054
Gross profit	359,235		87,096		2,870		449,201		—		449,201
Segment and corporate expenses (income):
Store expenses	261,608		69,916		5,246		336,770		—		336,770
General and administrative	—		—		—		—		54,133		54,133
Impairment of goodwill and intangibles assets	10,000		35,938		1,149		47,087		7,579		54,666
Depreciation and amortization	11,030		7,315		68		18,413		12,414		30,827
Gain (loss) on sale or disposal of assets	385		(72)		(20)		293		508		801
Other Charges	3,106		1,715		3,802		8,623		11,765		20,388
Interest expense	—		685		549		1,234		21,238		22,472
Interest income	—		(1,586)		—		(1,586)		(1,587)		(3,173)
Equity in net loss of unconsolidated affiliates	—		—		2,429		2,429		—		2,429
Other (income) expense	—		(156)		6		(150)		133		(17)
Segment contribution (loss)	$	73,106	$	(26,659)	$	(10,359)	$	36,088
Income (loss) before income taxes							$	36,088	$	(106,183)	$	(70,095)

The following table presents separately identified segment assets:

(in thousands)	U.S. Pawn		Latin America Pawn		Other Investments		Corporate		Total
Assets as of September 30, 2022
Pawn loans	$	163,484	$	46,525	$	—	$	—	$	210,009
Pawn service charges receivable, net	29,441		4,035		—		—		33,476
Inventory, net	114,951		36,664		—		—		151,615
Total assets	872,959		258,702		41,334		174,883		1,347,878
Assets as of September 30, 2021
Pawn loans	$	135,931	$	39,970	$	—	$	—	175,901
Pawn service charges receivable, net	24,365		4,972		—		—		29,337
Inventory, net	82,386		28,603		—		—		110,989
Total assets	779,271		233,347		38,993		215,300		1,266,911

The following tables provide geographic information:

	Fiscal Year Ended September 30,
(in thousands)	2022		2021		2020
Revenues:
United States	$	658,762	$	553,581	$	638,844
Mexico	173,122		128,773		131,965
Other Latin America	54,230		46,777		48,146
Canada and other	111		420		3,822
Total revenues	$	886,225	$	729,551	$	822,777

	September 30,
(in thousands)	2022		2021
Property and equipment, net:
United States	$	32,594	$	30,651
Mexico	19,805		$	19,255
Other Latin America	4,326		$	3,905
Property and equipment, net	$	56,725	$	53,811