Condensed Consolidating Guarantor Financial Statements (Tables)

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Financial Statements

Condensed Consolidating Balance Sheet
December 31, 2013
(unaudited, in thousands)
	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	24,674		$	4,240	$	41,729		$	—		$	70,643
Pawn loan fees and service charges receivable	—			7,934		8,755			—			16,689
Pawn loans	—			56,566		58,668			—			115,234
Consumer loans, net	—			694		756			—			1,450
Inventories	—			33,817		43,976			—			77,793
Prepaid expenses and other current assets	1,971			—		1,398			—			3,369
Deferred tax assets	907			—		4,137			—			5,044
Total current assets	27,552			103,251		159,419			—			290,222
Property and equipment, net	4,155			47,374		56,608			—			108,137
Goodwill, net	—			149,470		101,771			—			251,241
Other non-current assets	—			6,020		3,353			—			9,373
Deferred tax assets	—			—		6,943			(6,943		)	—
Intercompany receivable	—			—		156,794			(156,794		)	—
Investments in subsidiaries	751,785			—		—			(751,785		)	—
Total assets	$	783,492		$	306,115	$	484,888		$	(915,522	)	$	658,973
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of notes payable	$	3,326		$	—	$	—		$	—		$	3,326
Accounts payable and accrued liabilities	13,804			6,942		17,277			—			38,023
Income taxes payable	7,302			—		110			—			7,412
Total current liabilities	24,432			6,942		17,387			—			48,761
Revolving unsecured credit facility	182,000			—		—			—			182,000
Notes payable, net of current portion	5,026			—		—			—			5,026
Deferred tax liabilities	881			10,080		4,809			(6,943		)	8,827
Intercompany payable	156,794			—		—			(156,794		)	—
Total liabilities	369,133			17,022		22,196			(163,737		)	244,614
Stockholders' equity:
Preferred stock	—			—		—			—			—
Common stock	394			—		—			—			394
Additional paid-in capital	176,675			—		—			—			176,675
Retained earnings	490,280			289,093		470,140			(751,785		)	497,728
Accumulated other comprehensive income (loss)	(303		)	—		(7,448		)	—			(7,751		)
Common stock held in treasury, at cost	(252,687		)	—		—			—			(252,687		)
Total stockholders' equity	414,359			289,093		462,692			(751,785		)	414,359
Total liabilities and stockholders' equity	$	783,492		$	306,115	$	484,888		$	(915,522	)	$	658,973

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2013
(unaudited, in thousands)
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Cash flow from operating activities:
Net cash flow provided by (used in) operating activities	$	(41,616	)	$	80,346		$	35,289		$	—	$	74,019
Cash flow from investing activities:
Loan receivables, net of cash repayments	—			(3,922		)	(12,718		)	—		(16,640		)
Purchases of property and equipment	(1,592		)	(5,855		)	(10,498		)	—		(17,945		)
Acquisitions of pawn stores, net of cash acquired	—			(70,502		)	(13,851		)	—		(84,353		)
Investing activity with subsidiaries	20,733			—			(20,733		)	—		—
Net cash flow provided by (used in) investing activities	19,141			(80,279		)	(57,800		)	—		(118,938		)
Cash flow from financing activities:
Borrowings from revolving credit facilities	121,900			—			—			—		121,900
Repayments of revolving credit facilities	(71,900		)	—			—			—		(71,900		)
Repayments of notes payable	(2,398		)	—			—			—		(2,398		)
Purchases of treasury stock	(38,692		)	—			—			—		(38,692		)
Proceeds from exercise of share-based compensation awards	8,442			—			—			—		8,442
Income tax benefit from exercise of stock options	7,232			—			—			—		7,232
Net cash flow provided by (used in) financing activities	24,584			—			—			—		24,584
Effect of exchange rates on cash	—			—			589			—		589
Change in cash and cash equivalents	2,109			67			(21,922		)	—		(19,746		)
Cash and cash equivalents at beginning of the period	12,146			3,885			34,254			—		50,285
Cash and cash equivalents at end of the period	$	14,255		$	3,952		$	12,332		$	—	$	30,539

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended September 30, 2013
(unaudited, in thousands)
	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Revenue:
Retail merchandise sales	$	—		$	31,930	$	57,842		$	—	$	89,772
Pawn loan fees	—			19,351		28,104			—		47,455
Consumer loan and credit services fees	—			9,928		990			—		10,918
Wholesale scrap jewelry revenue	—			14,590		10,644			—		25,234
Total revenue	—			75,799		97,580			—		173,379
Cost of revenue:
Cost of retail merchandise sold	—			16,993		36,553			—		53,546
Consumer loan and credit services loss provision	—			3,209		255			—		3,464
Cost of wholesale scrap jewelry sold	—			12,534		9,860			—		22,394
Total cost of revenue	—			32,736		46,668			—		79,404
Net revenue	—			43,063		50,912			—		93,975
Expenses and other income:
Store operating expenses	—			15,963		30,686			—		46,649
Administrative expenses	7,638			—		5,196			—		12,834
Depreciation and amortization	319			1,245		2,424			—		3,988
Interest expense	1,122			—		—			—		1,122
Interest income	(2		)	—		(67		)	—		(69		)
Total expenses and other income	9,077			17,208		38,239			—		64,524
Income (loss) from continuing operations before income taxes	(9,077		)	25,855		12,673			—		29,451
Provision for income taxes	(2,957		)	9,308		(27		)	—		6,324
Income (loss) from continuing operations	(6,120		)	16,547		12,700			—		23,127
Income (loss) from discontinued operations, net of tax	—			—		14			—		14
Net income (loss)	$	(6,120	)	$	16,547	$	12,714		$	—	$	23,141
Other comprehensive income (loss):
Currency translation adjustment, net of tax expense or benefit	(1,894		)	—		—			—		(1,894		)
Comprehensive income (loss)	$	(8,014	)	$	16,547	$	12,714		$	—	$	21,247

Condensed Consolidating Balance Sheet
September 30, 2014
(unaudited, in thousands)
	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	17,380		$	2,809	$	22,571		$	—		$	42,760
Pawn loan fees and service charges receivable	—			7,480		12,001			—			19,481
Pawn loans	—			57,116		79,865			—			136,981
Consumer loans, net	—			842		668			—			1,510
Inventories	—			34,915		59,975			—			94,890
Prepaid expenses and other current assets	3,708			—		2,584			—			6,292
Deferred tax assets	906			—		5,393			—			6,299
Total current assets	21,994			103,162		183,057			—			308,213
Property and equipment, net	4,050			50,094		60,971			—			115,115
Goodwill, net	—			158,308		106,567			—			264,875
Other non-current assets	6,354			4,981		5,129			—			16,464
Deferred tax assets	—			—		10,106			(10,106		)	—
Intercompany receivable	—			—		169,711			(169,711		)	—
Investments in subsidiaries	804,310			—		—			(804,310		)	—
Total assets	$	836,708		$	316,545	$	535,541		$	(984,127	)	$	704,667
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities	$	19,979		$	6,684	$	23,515		$	—		$	50,178
Total current liabilities	19,979			6,684		23,515			—			50,178
Revolving unsecured credit facility	17,500			—		—			—			17,500
Senior unsecured notes	200,000			—		—			—			200,000
Deferred tax liabilities	64			14,761		2,816			(10,106		)	7,535
Intercompany payable	169,711			—		—			(169,711		)	—
Total liabilities	407,254			21,445		26,331			(179,817		)	275,213
Stockholders' equity:
Preferred stock	—			—		—			—			—
Common stock	395			—		—			—			395
Additional paid-in capital	182,119			—		—			—			182,119
Retained earnings	543,877			295,100		521,286			(804,310		)	555,953
Accumulated other comprehensive income (loss)	(303		)	—		(12,076		)	—			(12,379		)
Common stock held in treasury, at cost	(296,634		)	—		—			—			(296,634		)
Total stockholders' equity	429,454			295,100		509,210			(804,310		)	429,454
Total liabilities and stockholders' equity	$	836,708		$	316,545	$	535,541		$	(984,127	)	$	704,667

Condensed Consolidating Statement of Comprehensive Income
Nine Months Ended September 30, 2014
(unaudited, in thousands)
	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Revenue:
Retail merchandise sales	$	—		$	99,314	$	198,532		$	—	$	297,846
Pawn loan fees	—			55,980		90,991			—		146,971
Consumer loan and credit services fees	—			25,164		2,510			—		27,674
Wholesale scrap jewelry revenue	—			19,526		18,086			—		37,612
Total revenue	—			199,984		310,119			—		510,103
Cost of revenue:
Cost of retail merchandise sold	—			55,664		126,699			—		182,363
Consumer loan and credit services loss provision	—			6,373		519			—		6,892
Cost of wholesale scrap jewelry sold	—			16,553		15,055			—		31,608
Total cost of revenue	—			78,590		142,273			—		220,863
Net revenue	—			121,394		167,846			—		289,240
Expenses and other income:
Store operating expenses	—			60,036		86,683			—		146,719
Administrative expenses	18,422			—		21,928			—		40,350
Depreciation and amortization	781			4,277		7,943			—		13,001
Interest expense	9,405			—		—			—		9,405
Interest income	(23		)	—		(499		)	—		(522		)
Total expenses and other income	28,585			64,313		116,055			—		208,953
Income (loss) from continuing operations before income taxes	(28,585		)	57,081		51,791			—		80,287
Provision for income taxes	(12,801		)	19,979		14,612			—		21,790
Income (loss) from continuing operations	(15,784		)	37,102		37,179			—		58,497
Income (loss) from discontinued operations, net of tax	—			—		(272		)	—		(272		)
Net income (loss)	$	(15,784	)	$	37,102	$	36,907		$	—	$	58,225
Other comprehensive income (loss):
Currency translation adjustment, net of tax expense or benefit	(4,628		)	—		—			—		(4,628		)
Comprehensive income (loss)	$	(20,412	)	$	37,102	$	36,907		$	—	$	53,597

Condensed Consolidating Statement of Cash Flows
Nine Months Ended September 30, 2014
(unaudited, in thousands)
	Parent Company			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Cash flow from operating activities:
Net cash flow provided by (used in) operating activities	$	(210	)	$	18,655		$	50,883		$	—	$	69,328
Cash flow from investing activities:
Loan receivables, net of cash repayments	—			2,237			(26,561		)	—		(24,324		)
Purchases of property and equipment	(676		)	(5,931		)	(11,194		)	—		(17,801		)
Acquisitions of pawn stores, net of cash acquired	—			(16,392		)	(18,481		)	—		(34,873		)
Investing activity with subsidiaries	12,917			—			(12,917		)	—		—
Net cash flow provided by (used in) investing activities	12,241			(20,086		)	(69,153		)	—		(76,998		)
Cash flow from financing activities:
Borrowings from revolving credit facilities	25,500			—			—			—		25,500
Repayments of revolving credit facilities	(190,000		)	—			—			—		(190,000		)
Repayments of notes payable	(8,352		)	—			—			—		(8,352		)
Issuance of senior unsecured notes	200,000			—			—			—		200,000
Debt issuance costs paid	(6,601		)	—			—			—		(6,601		)
Purchases of treasury stock	(43,947		)	—			—			—		(43,947		)
Proceeds from exercise of share-based compensation awards	2,262			—			—			—		2,262
Income tax benefit from exercise of stock options	1,813			—			—			—		1,813
Net cash flow provided by (used in) financing activities	(19,325		)	—			—			—		(19,325		)
Effect of exchange rates on cash	—			—			(888		)	—		(888		)
Change in cash and cash equivalents	(7,294		)	(1,431		)	(19,158		)	—		(27,883		)
Cash and cash equivalents at beginning of the period	24,674			4,240			41,729			—		70,643
Cash and cash equivalents at end of the period	$	17,380		$	2,809		$	22,571		$	—	$	42,760

Condensed Consolidating Balance Sheet
September 30, 2013
(unaudited, in thousands)
	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	14,255		$	3,952	$	12,332		$	—		$	30,539
Pawn loan fees and service charges receivable	—			7,595		10,078			—			17,673
Pawn loans	—			55,425		65,762			—			121,187
Consumer loans, net	—			552		823			—			1,375
Inventories	—			33,393		49,176			—			82,569
Prepaid expenses and other current assets	2,535			11		10,387			(8,153		)	4,780
Deferred tax assets	1,148			—		2,200			—			3,348
Total current assets	17,938			100,928		150,758			(8,153		)	261,471
Property and equipment, net	4,443			42,666		54,920			—			102,029
Goodwill, net	—			149,379		81,098			—			230,477
Other non-current assets	—			5,304		3,373			—			8,677
Deferred tax assets	—			—		7,146			(7,146		)	—
Intercompany receivable	—			—		139,228			(139,228		)	—
Investments in subsidiaries	696,368			—		—			(696,368		)	—
Total assets	$	718,749		$	298,277	$	436,523		$	(850,895	)	$	602,654
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of notes payable	$	3,297		$	—	$	—		$	—		$	3,297
Accounts payable and accrued liabilities	11,597			7,046		16,803			—			35,446
Income taxes payable	17,871			—		—			(8,153		)	9,718
Total current liabilities	32,765			7,046		16,803			(8,153		)	48,461
Revolving unsecured credit facility	152,500			—		—			—			152,500
Notes payable, net of current portion	5,868			—		—			—			5,868
Deferred tax liabilities	876			13,750		833			(7,146		)	8,313
Intercompany payable	139,228			—		—			(139,228		)	—
Total liabilities	331,237			20,796		17,636			(154,527		)	215,142
Stockholders' equity:
Preferred stock	—			—		—			—			—
Common stock	393			—		—			—			393
Additional paid-in capital	176,018			—		—			—			176,018
Retained earnings	464,007			277,481		427,830			(696,368		)	472,950
Accumulated other comprehensive income (loss)	(219		)	—		(8,943		)	—			(9,162		)
Common stock held in treasury, at cost	(252,687		)	—		—			—			(252,687		)
Total stockholders' equity	387,512			277,481		418,887			(696,368		)	387,512
Total liabilities and stockholders' equity	$	718,749		$	298,277	$	436,523		$	(850,895	)	$	602,654

Condensed Consolidating Statement of Comprehensive Income
Three Months Ended September 30, 2014
(unaudited, in thousands)
	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Revenue:
Retail merchandise sales	$	—		$	30,698	$	71,252		$	—	$	101,950
Pawn loan fees	—			18,837		32,941			—		51,778
Consumer loan and credit services fees	—			8,636		838			—		9,474
Wholesale scrap jewelry revenue	—			5,988		5,810			—		11,798
Total revenue	—			64,159		110,841			—		175,000
Cost of revenue:
Cost of retail merchandise sold	—			17,264		45,516			—		62,780
Consumer loan and credit services loss provision	—			2,756		157			—		2,913
Cost of wholesale scrap jewelry sold	—			5,381		5,063			—		10,444
Total cost of revenue	—			25,401		50,736			—		76,137
Net revenue	—			38,758		60,105			—		98,863
Expenses and other income:
Store operating expenses	—			18,767		30,526			—		49,293
Administrative expenses	5,598			—		7,808			—		13,406
Depreciation and amortization	218			1,488		2,698			—		4,404
Interest expense	4,059			—		—			—		4,059
Interest income	—			—		(179		)	—		(179		)
Total expenses and other income	9,875			20,255		40,853			—		70,983
Income (loss) from continuing operations before income taxes	(9,875		)	18,503		19,252			—		27,880
Provision for income taxes	(5,021		)	6,477		6,896			—		8,352
Income (loss) from continuing operations	(4,854		)	12,026		12,356			—		19,528
Income (loss) from discontinued operations, net of tax	—			—		—			—		—
Net income (loss)	$	(4,854	)	$	12,026	$	12,356		$	—	$	19,528
Other comprehensive income (loss):
Currency translation adjustment, net of tax expense or benefit	(4,940		)	—		—			—		(4,940		)
Comprehensive income (loss)	$	(9,794	)	$	12,026	$	12,356		$	—	$	14,588

Condensed Consolidating Statement of Comprehensive Income
Nine Months Ended September 30, 2013
(unaudited, in thousands)
	Parent Company			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Consolidating Eliminations		Consolidated
Revenue:
Retail merchandise sales	$	—		$	86,087	$	169,355		$	—	$	255,442
Pawn loan fees	—			51,649		82,009			—		133,658
Consumer loan and credit services fees	—			29,705		3,065			—		32,770
Wholesale scrap jewelry revenue	—			28,109		25,666			—		53,775
Total revenue	—			195,550		280,095			—		475,645
Cost of revenue:
Cost of retail merchandise sold	—			46,561		106,116			—		152,677
Consumer loan and credit services loss provision	—			7,534		554			—		8,088
Cost of wholesale scrap jewelry sold	—			22,952		22,546			—		45,498
Total cost of revenue	—			77,047		129,216			—		206,263
Net revenue	—			118,503		150,879			—		269,382
Expenses and other income:
Store operating expenses	—			55,266		77,496			—		132,762
Administrative expenses	25,569			—		13,121			—		38,690
Depreciation and amortization	881			3,493		6,972			—		11,346
Interest expense	2,474			—		—			—		2,474
Interest income	(6		)	—		(261		)	—		(267		)
Total expenses and other income	28,918			58,759		97,328			—		185,005
Income (loss) from continuing operations before income taxes	(28,918		)	59,744		53,551			—		84,377
Provision for income taxes	(8,798		)	21,508		12,706			—		25,416
Income (loss) from continuing operations	(20,120		)	38,236		40,845			—		58,961
Income (loss) from discontinued operations, net of tax	—			—		107			—		107
Net income (loss)	$	(20,120	)	$	38,236	$	40,952		$	—	$	59,068
Other comprehensive income (loss):
Currency translation adjustment, net of tax expense or benefit	(2,222		)	—		—			—		(2,222		)
Comprehensive income (loss)	$	(22,342	)	$	38,236	$	40,952		$	—	$	56,846