Segment Information

12 Months Ended

Sep. 30, 2023

Segment Reporting [Abstract]

Segment Information

NOTE 14: SEGMENT INFORMATION

Our operations are primarily managed on a geographical basis and consist of four 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.

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.

•Cash Converters — Represents our equity interest in the net loss (income) of Cash Converters. Our equity in Cash Converters’s net loss was $28.5 million in fiscal 2023, which includes $32.4 million of our share of their non-cash goodwill impairment charge. As a result of this one-time impairment charge, our share of the absolute value of Cash Converters’s reported loss meets the 10 percent threshold to be considered its own reporting segment. Our equity in their net income was $2.9 million and $4.3 million for fiscal 2022 and 2021, respectively. Refer to Note 5: Strategic Investments and Note 6: Fair Value Measurements for additional details on our investment in Cash Converters.

•Other Investments — Represents our investment in RDC and our investment in and notes receivable from Founders.

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 income (loss) before income taxes tables present revenue for each reportable segment, disaggregated revenue within our reportable segments and Corporate, segment profits and segment contribution. We have continued to include the Cash Converters reporting segment within the “Other Investments” columns below as the investments in RDC and Founders do not have a material impact on our statements of operations due to the investments being accounted for under the measurement alternative within ASC 321.

	Fiscal Year Ended September 30, 2023
(in thousands)	U.S. Pawn		Latin America Pawn		Other Investments		Total Segments		Corporate Items		Consolidated
Revenues:
Merchandise sales	$	432,578	$	182,868	$	—	$	615,446	$	—	$	615,446
Jewelry scrapping sales	43,305		6,223		—		49,528		—		49,528
Pawn service charges	285,919		97,853		—		383,772		—		383,772
Other revenues	119		121		55		295		—		295
Total revenues	761,921		287,065		55		1,049,041		—		1,049,041
Merchandise cost of goods sold	267,874		126,905		—		394,779		—		394,779
Jewelry scrapping cost of goods sold	37,709		6,715		—		44,424		—		44,424
Gross profit	456,338		153,445		55		609,838		—		609,838
Segment and corporate expenses (income):
Store expenses	299,319		119,255		—		418,574		—		418,574
General and administrative	—		(3)		—		(3)		67,532		67,529
Impairment of other assets	—		—		—		—		4,343		4,343
Depreciation and amortization	10,382		9,191		—		19,573		12,558		32,131
Loss (gain) on sale or disposal of assets and other	115		(289)		—		(174)		382		208
Other income	—		(5,097)		—		(5,097)		—		(5,097)
Interest expense	—		—		—		—		16,456		16,456
Interest income	(2)		(1,139)		(1,500)		(2,641)		(4,829)		(7,470)
Equity in net loss of unconsolidated affiliates	—		—		28,459		28,459		—		28,459
Other (income) expense	—		(131)		31		(100)		3,172		3,072
Segment contribution	$	146,524	$	31,658	$	(26,935)	$	151,247
Income (loss) before income taxes							$	151,247	$	(99,614)	$	51,633

	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
Loss (gain) on sale or disposal of assets	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 loss 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

The following table presents separately identified segment assets:

(in thousands)	U.S. Pawn		Latin America Pawn		Cash Converters		Other Investments		Corporate		Total
Assets as of September 30, 2023
Pawn loans	$	190,624	$	55,142	$	—	$	—	$	—	$	245,766
Pawn service charges receivable, net	34,318		4,567		—		—		—		38,885
Inventory, net	128,901		37,576		—		—		—		166,477
Total assets	984,539		313,164		10,987		52,720		106,301		1,467,711
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		37,733		3,601		174,883		1,347,878

The following tables provide geographic information:

	Fiscal Year Ended September 30,
(in thousands)	2023		2022		2021
Revenues:
United States	$	761,921	$	658,762	$	553,581
Mexico	223,765		173,122		128,773
Other Latin America	63,300		54,230		46,777
Canada and other	55		111		420
Total revenues	$	1,049,041	$	886,225	$	729,551

	September 30,
(in thousands)	2023		2022
Property and equipment, net:
United States	$	37,695	$	32,594
Mexico	24,033		$	19,805
Other Latin America	6,368		$	4,326
Property and equipment, net	$	68,096	$	56,725