Operating Segment Information

9 Months Ended

Jun. 30, 2011

Operating Segment Information [Abstract]

Operating Segment Information

Note L: Operating Segment Information

We manage our business and internal reporting as three reportable segments with operating results reported separately for each segment.

• The U.S. Pawn Operations segment offers pawn related activities in our 426 U.S. pawn stores, offers signature loans in 43 pawn stores and six EZMONEY stores and offers auto title loans in 44 pawn stores.

• The Empeño Fácil segment offers pawn related activities in 155 Mexico pawn stores.

• The EZMONEY Operations segment offers signature loans in 436 U.S. and 60 Canadian financial services stores. The segment also offers auto title loans in 365 of its U.S. stores and buys and sells second-hand goods in three of its Canadian stores.

There are no inter-segment revenues, and the amounts below were determined in accordance with the same accounting principles used in our consolidated financial statements. The following tables present operating segment information (in thousands):

	Three Months Ended June 30,
	US Pawn Operations				Empeño Fácil				EZMONEY Operations
	2011		2010		2011		2010		2011		2010
Revenues:
Merchandise sales	$	58,168	$	49,749	$	6,401	$	3,529	$	5	$	—
Jewelry scrapping sales		46,157		41,423		4,257		2,181		357		169
Pawn service charges		43,846		37,014		4,519		2,410		—		—
Signature loan fees		691		455		—		—		33,504		31,841
Auto title loan fees		352		359		—		—		4,323		4,299
Other		161		105		6		—		405		8
Total revenues		149,375		129,105		15,183		8,120		38,594		36,317
Merchandise cost of goods sold		32,911		27,749		3,767		1,961		13		—
Jewelry scrapping cost of goods sold		28,754		27,328		3,486		1,862		197		85
Signature loan bad debt		325		159		—		—		10,166		8,758
Auto title loan bad debt		69		44		—		—		467		792
Net revenues		87,316		73,825		7,930		4,297		27,751		26,682
Operations expense		44,280		39,148		5,406		2,999		17,067		15,805
Store operating income	$	43,036	$	34,677	$	2,524	$	1,298	$	10,684	$	10,877

	Nine Months Ended June 30,
	US Pawn Operations				Empeño Fácil				EZMONEY Operations
	2011		2010		2011		2010		2011		2010
Revenues:
Merchandise sales	$	196,893	$	174,060	$	17,329	$	10,142	$	5	$	—
Jewelry scrapping sales		137,221		112,660		11,363		4,550		847		233
Pawn service charges		133,355		112,211		11,589		6,316		—		—
Signature loan fees		1,607		1,442		—		—		107,757		101,174
Auto title loan fees		1,092		1,261		—		—		15,196		10,455
Other		420		365		34		—		524		8
Total revenues		470,588		401,999		40,315		21,008		124,329		111,870
Merchandise cost of goods sold		112,592		101,713		10,036		6,342		13		—
Jewelry scrapping cost of goods sold		86,979		71,635		9,201		3,911		437		116
Signature loan bad debt		583		446		—		—		25,392		21,658
Auto title loan bad debt		110		166		—		—		1,710		1,450
Net revenues		270,324		228,039		21,078		10,755		96,777		88,646
Operations expense		131,293		119,259		14,533		7,736		51,476		47,343
Store operating income	$	139,031	$	108,780	$	6,545	$	3,019	$	45,301	$	41,303

The following table reconciles store operating income as shown above, to our consolidated income before income taxes (in thousands):

	Three Months Ended June 30,						Nine Months Ended June 30,
	2011			2010			2011			2010
U.S. Pawn Operations store operating income	$	43,036		$	34,677		$	139,031		$	108,780
Empeño Fácil store operating income		2,524			1,298			6,545			3,019
EZMONEY Operations store operating income		10,684			10,877			45,301			41,303
Consolidated store operating income		56,244			46,852			190,877			153,102
Administrative expenses		14,379			13,576			56,250			39,356
Depreciation and amortization		4,679			3,759			13,324			10,688
(Gain) / loss on sale or disposal of assets		169			734			(2	)		1,301
Interest income		(21	)		(135	)		(35	)		(151	)
Interest expense		586			311			1,186			1,071
Equity in net income of unconsolidated affiliates		(4,099	)		(2,930	)		(12,157	)		(7,519	)
Other		(103	)		(100	)		(160	)		(103	)
Consolidated income before income taxes	$	40,654		$	31,637		$	132,471		$	108,459

The following table presents separately identified segment assets (in thousands):

	U.S Pawn		Empeño		EZMONEY
	Operations		Fácil		Operations		Consolidated
Assets at June 30, 2011:
Pawn loans	$	124,810	$	9,823	$	—	$	134,633
Signature loans, net		1,174		—		10,915		12,089
Auto title loans, net		757		—		1,591		2,348
Service charges and fees receivable, net		23,169		1,524		6,563		31,256
Inventory, net		70,320		8,400		311		79,031
Goodwill		159,572		7,445		—		167,017
Total separately identified recorded segment assets	$	379,802	$	27,192	$	19,380	$	426,374
Brokered signature loans outstanding from unaffiliated lenders	$	168	$	—	$	20,571	$	20,739
Brokered auto title loans outstanding from unaffiliated lenders	$	152	$	—	$	5,408	$	5,560
Assets at June 30, 2010:
Pawn loans	$	107,419	$	5,388	$	—	$	112,807
Signature loans, net		425		—		8,490		8,915
Auto title loans, net		638		—		2,164		2,802
Service charges and fees receivable, net		19,322		813		6,571		26,706
Inventory, net		57,176		3,819		32		61,027
Goodwill		108,606		6,964		—		115,570
Total separately identified recorded segment assets	$	293,586	$	16,984	$	17,257	$	327,827
Brokered signature loans outstanding from unaffiliated lenders	$	228	$	—	$	21,442	$	21,670
Brokered auto title loans outstanding from unaffiliated lenders	$	210	$	—	$	5,557	$	5,767
Assets at September 30, 2010:
Pawn loans	$	113,944	$	7,257	$	—	$	121,201
Signature loans, net		456		—		10,319		10,775
Auto title loans, net		651		—		2,494		3,145
Service charges and fees receivable, net		20,830		1,053		7,177		29,060
Inventory, net		66,542		4,935		25		71,502
Goodwill		110,255		7,050		—		117,305
Total separately identified recorded segment assets	$	312,678	$	20,295	$	20,015	$	352,988
Brokered signature loans outstanding from unaffiliated lenders	$	231	$	—	$	22,709	$	22,940
Brokered auto title loans outstanding from unaffiliated lenders	$	236	$	—	$	6,589	$	6,825

Brokered loans are not recorded as an asset on our balance sheets, as we do not own a participation in the loans made by independent lenders. We monitor the principal balance of these loans, as our credit service fees and bad debt are directly related to their volume due to the letters of credit we issue on these loans. The brokered loan balances shown above are the gross principal balances of the loans outstanding at the specified dates.