FORT WORTH, Texas--()--Cash America International, Inc. (NYSE: CSH) reported today that its fourth quarter ended December 31, 2011 net income attributable to the Company increased to $37,827,000 ($1.18 per share) compared to $34,705,000 ($1.10 per share) for the fourth quarter of 2010.
“This was a year of many accomplishments for the Cash America team, highlighted by a record level of total revenue, which reached $1.54 billion, and an all-time high level of earnings after taxes which reached $136 million, up 18% from calendar year 2010.”
Consolidated total revenue of the Company increased 26% in the fourth quarter of 2011 to $463.3 million, up from $368.8 million for the same period in 2010. Revenue from the Company’s loan products, driven by higher loan balances outstanding, contributed the largest portion of the increase for the period. Comparing the ending balance at December 31, 2011 to the same date in 2010, consolidated pawn loan balances were up 16%, domestic pawn loan balances were up 21%, and total combined consumer loan balances, which includes loans extended by the Company directly and loans offered by third parties that the Company guarantees, were up 50%, which led the gain in total revenue during the fourth quarter. Aggregate disposition of merchandise sales rose 24% in the fourth quarter of 2011 compared to the same period in 2010, adding to the top line revenue growth for the period. Consumer loan fees increased 37%, to $180.1 million, in the fourth quarter of 2011 compared to the same period in 2010, as the Company’s E-commerce segment recorded a 44% increase in revenue, led by a 115% increase in revenue from its foreign online lending business.
Net income attributable to the Company increased 9% in the fourth quarter of 2011, to $37.8 million, compared to the same period in 2010. The growth in fourth quarter net income did not fully benefit from the significant increase in revenue as the Company incurred higher operating expenses in its bricks and mortar locations to promote holiday sales and absorbed lower gross profit margins on the disposition of merchandise during the period. In addition, the significant increase in the portfolio of unsecured loans, particularly to non-U.S. customers, led the Company to incur a greater than expected increase in reserves for estimated loan losses during the quarter. Also, included in the results for the fourth quarter of 2011 are approximately $1.4 million ($0.9 million net of taxes, or approximately 3 cents per share) of expense items related to the filing of a Registration Statement on Form S-1 with the Securities and Exchange Commission by the Company’s wholly-owned subsidiary that comprises its E-commerce segment, Enova International, Inc., on September 15, 2011 in connection with a proposed initial public offering of Enova common stock by the Company and Enova, as well as expenses related to acquisition activity during the quarter and legal expenses.
Commenting on the results of the quarter, Daniel R. Feehan, President and Chief Executive Officer of Cash America, said, “We had a successful quarter in terms of revenue growth and asset expansion as we invested in new loan products oriented to meet the needs of our customers. The increase in our consumer loan portfolio generated a significant increase in revenue, although an attributable increase in expenses for marketing and loss reserves reduced a portion of the near term contribution to earnings. We are committed to the growth in these assets as we reach more customers in need of our services. The holiday selling season achieved the sales objectives we expected but with a greater level of pricing discounts than anticipated, which lowered the gross profit margin on our retail sales but positioned our merchandise inventory well as we enter 2012.” Mr. Feehan added, “This was a year of many accomplishments for the Cash America team, highlighted by a record level of total revenue, which reached $1.54 billion, and an all-time high level of earnings after taxes which reached $136 million, up 18% from calendar year 2010.”
Net income attributable to the Company for the twelve months ended December 31, 2011 was $135,963,000 ($4.25 per share) compared to $115,538,000 ($3.67 per share) for the same twelve-month period of 2010. Total revenue for the fiscal year ended December 31, 2011 increased 19% to $1.54 billion, up from $1.29 billion during the same twelve-month period in 2010.
Cash America will conduct a conference call to discuss its fourth quarter earnings on Thursday, January 26, 2012, at 7:00 AM CST. A live web cast of the call will be available on the Company’s corporate web site in the Investor Relations section (www.cashamerica.com). To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software.
Additionally, the Company announced that the Board of Directors, at its regularly scheduled quarterly meeting, declared a $0.035 (3.5 cents) per share cash dividend on common stock outstanding. The dividend will be paid at the close of business on February 22, 2012 to shareholders of record on February 8, 2012.
The Registration Statement on Form S-1 that was filed on September 15, 2011 with the Securities and Exchange Commission in connection with a proposed initial public offering of Enova common stock by the Company and Enova has not yet become effective, which restricts the Company from issuing earnings guidance for the 2012 first quarter and year ending 2012 at this time.
About the Company
As of December 31, 2011, Cash America International, Inc. operated 1,084 total locations offering specialty financial services to consumers, which include 784 lending locations (including one unconsolidated franchised location) operating in 23 states in the United States under the names “Cash America Pawn,” “SuperPawn,” “Maxit,” “Pawn X-Change,” “Cash America Payday Advance,” and “Cashland,” and 190 pawn lending locations, of which the Company is a majority owner, operating in 21 jurisdictions in central and southern Mexico under the name “Prenda Fácil.” The Company also operated 104 unconsolidated franchised and six Company-owned check cashing centers operating in 18 states in the United States under the name “Mr. Payroll” as of December 31, 2011. Additionally, as of December 31, 2011, the Company offered consumer loans over the Internet to customers in 32 states in the United States at http://www.cashnetusa.com, in the United Kingdom at http://www.quickquid.co.uk and http://www.poundstopocket.co.uk, in Australia at http://www.dollarsdirect.com.au, and in Canada at http://www.dollarsdirect.ca.
For additional information regarding the Company and the services it provides, visit the Company’s websites located at:
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements about the business, financial condition and prospects of Cash America International, Inc. and its subsidiaries (the “Company”). The actual results of the Company could differ materially from those indicated by the forward-looking statements because of various risks and uncertainties including, without limitation, changes in pawn, consumer loan, tax and other domestic and foreign laws and governmental rules and regulations applicable to the Company's business, changes in demand for the Company's services, acceptance by consumers, legislators or regulators of the negative characterization by the media and consumer activists with respect to certain of the Company’s loan products, the continued acceptance of the online distribution channel by the Company’s online loan customers, the actions of third parties who provide, acquire or offer products and services to, from or for the Company, fluctuations in the price of gold, changes in competition, the ability of the Company to open new locations or complete acquisitions in accordance with its plans, changes in economic conditions, real estate market fluctuations, interest rate fluctuations, changes in foreign currency exchange rates, changes in the capital markets, changes in the Company’s ability to satisfy its debt obligations or to refinance existing debt obligations or obtain new capital to finance growth, the ability to successfully integrate newly acquired businesses into the Company’s operations, the loss of services of any of the Company’s executive officers, a prolonged interruption in the Company’s operations of its facilities, systems and business functions, including its information technology and other business systems, the effect of any current or future litigation proceedings on the Company, the implementation of new, or changes in the interpretation of existing, accounting principles or financial reporting requirements, acts of God, war or terrorism, pandemics and other events, the effect of any of such changes on the Company’s business or the markets in which it operates, risks related to the Company’s previously-announced proposed initial public offering of common stock of its wholly-owned subsidiary, Enova International, Inc. (“Enova”), and other risks and uncertainties indicated in the Company's filings with the Securities and Exchange Commission. These risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. When used in this release, terms such as “believes,” “estimates,” “should,” “could,” “would,” “plans,” “expects,” “anticipates,” “may,” “forecasts,” “projects” and similar expressions and variations as they relate to the Company or its management are intended to identify forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements to reflect events or circumstances occurring after the date of this release.
The Registration Statement on Form S-1 that was filed with the Securities and Exchange Commission by the Company’s wholly-owned subsidiary, Enova, has not yet become effective. The completion of the offering of common stock of Enova is subject to numerous conditions, including market conditions, and the Company can provide no assurance that it will be successfully completed. The securities offered under Enova’s Registration Statement may not be sold, nor may offers to buy be accepted prior to the time that the Registration Statement becomes effective. The information contained in this press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities.
| CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES | |||||||||||||||
| HIGHLIGHTS OF CONSOLIDATED RESULTS OF OPERATIONS | |||||||||||||||
| (in thousands, except per share data) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||
| Consolidated Operations: | |||||||||||||||
| Total revenue | $ | 463,252 | $ | 368,831 | $ | 1,540,602 | $ | 1,293,339 | |||||||
| Net revenue | 248,329 | 211,802 | 909,759 | 772,189 | |||||||||||
| Total operating expenses | 180,204 | 150,612 | 665,417 | 565,057 | |||||||||||
| Income from operations | $ | 68,125 | $ | 61,190 | $ | 244,342 | $ | 207,132 | |||||||
| Income before income taxes | 60,688 | 54,925 | 217,526 | 184,513 | |||||||||||
| Net Income | $ | 37,605 | $ | 34,801 | $ | 135,166 | $ | 115,244 | |||||||
| Net (income) loss attributable to the noncontrolling interest | $ | 222 | $ | (96) | $ | 797 | $ | 294 | |||||||
| Net Income Attributable to Cash America International, Inc. | $ | 37,827 | $ | 34,705 | $ | 135,963 | $ | 115,538 | |||||||
| Earnings per share: | |||||||||||||||
| Net Income attributable to Cash America International, Inc. common shareholders: | |||||||||||||||
| Basic | $ | 1.28 | $ | 1.17 | $ | 4.59 | $ | 3.90 | |||||||
| Diluted | $ | 1.18 | $ | 1.10 | $ | 4.25 | $ | 3.67 | |||||||
| Weighted average shares: | |||||||||||||||
| Basic | 29,528 | 29,759 | 29,602 | 29,640 | |||||||||||
| Diluted | 32,059 | 31,655 | 31,991 | 31,521 | |||||||||||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS |
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| (in thousands, except per share data) | |||||
| (Unaudited) | |||||
| December 31, | |||||
| 2011 | 2010 | ||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 62,542 | $ | 38,324 | |
| Pawn loans | 253,519 | 218,408 | |||
| Consumer loans, net | 222,778 | 139,377 | |||
| Merchandise held for disposition, net | 151,274 | 124,399 | |||
| Pawn loan fees and service charges receivable | 48,003 | 41,216 | |||
| Prepaid expenses and other assets | 45,176 | 32,490 | |||
| Deferred tax assets | 35,065 | 28,016 | |||
| Total current assets | 818,357 | 622,230 | |||
| Property and equipment, net | 246,429 | 222,320 | |||
| Goodwill | 562,721 | 543,324 | |||
| Intangible assets, net | 34,771 | 31,188 | |||
| Other assets | 15,236 | 8,124 | |||
| Total assets | $ | 1,677,514 | $ | 1,427,186 | |
| Liabilities and Equity | |||||
| Current liabilities: | |||||
| Accounts payable and accrued expenses | $ | 116,378 | $ | 96,465 | |
| Customer deposits | 9,935 | 9,146 | |||
| Income taxes currently payable | 12,880 | 888 | |||
| Current portion of long-term debt | 34,273 | 24,433 | |||
| Total current liabilities | 173,466 | 130,932 | |||
| Deferred tax liabilities | 89,712 | 56,792 | |||
| Noncurrent income tax payable | 2,315 | 2,408 | |||
| Other liabilities | 1,413 | 2,052 | |||
| Long-term debt | 503,018 | 432,271 | |||
| Total liabilities | $ | 769,924 | $ | 624,455 | |
| Equity: | |||||
| Cash America International, Inc. equity: | |||||
|
Common stock, $0.10 par value per share, 80,000,000 shares authorized, 30,235,164 shares issued |
3,024 | 3,024 | |||
| Additional paid-in capital | 167,683 | 165,658 | |||
| Retained earnings | 776,060 | 644,208 | |||
| Accumulated other comprehensive (loss) income | (6,896) | 4,797 | |||
| Treasury shares, at cost (1,011,356 shares and 685,315 shares | |||||
| at December 31, 2011 and 2010, respectively) | (37,419) | (21,283) | |||
| Total Cash America International, Inc. shareholders' equity | 902,452 | 796,404 | |||
| Noncontrolling interest | 5,138 | 6,327 | |||
| Total equity | 907,590 | 802,731 | |||
| Total liabilities and equity | $ | 1,677,514 | $ | 1,427,186 | |
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (Unaudited) |
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| Three Months Ended | Year Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||
| (Unaudited) | |||||||||||
| Revenue | |||||||||||
| Pawn loan fees and service charges | $ | 79,601 | $ | 71,558 | $ | 291,891 | $ | 253,314 | |||
| Proceeds from disposition of merchandise | 200,953 | 162,147 | 636,728 | 534,878 | |||||||
| Consumer loan fees | 180,124 | 131,773 | 598,646 | 490,952 | |||||||
| Other | 2,574 | 3,353 | 13,337 | 14,195 | |||||||
| Total Revenue | 463,252 | 368,831 | 1,540,602 | 1,293,339 | |||||||
| Cost of Revenue | |||||||||||
| Disposed merchandise | 134,440 | 104,598 | 405,155 | 338,756 | |||||||
| Consumer loan loss provision | 80,483 | 52,431 | 225,688 | 182,394 | |||||||
| Total Cost of Revenue | 214,923 | 157,029 | 630,843 | 521,150 | |||||||
| Net Revenue | 248,329 | 211,802 | 909,759 | 772,189 | |||||||
| Expenses | |||||||||||
| Operations | 133,235 | 115,355 | 486,234 | 419,616 | |||||||
| Administration | 32,420 | 22,685 | 125,034 | 101,518 | |||||||
| Depreciation and amortization | 14,549 | 12,572 | 54,149 | 43,923 | |||||||
| Total Expenses | 180,204 | 150,612 | 665,417 | 565,057 | |||||||
| Income from Operations | 68,125 | 61,190 | 244,342 | 207,132 | |||||||
| Interest expense | (7,221) | (5,835) | (25,528) | (22,345) | |||||||
| Interest income | 25 | 8 | 81 | 325 | |||||||
| Foreign currency transaction loss | (207) | (363) | (1,265) | (463) | |||||||
| Equity in loss of unconsolidated subsidiary | (34) | (75) | (104) | (136) | |||||||
| Income before Income Taxes | 60,688 | 54,925 | 217,526 | 184,513 | |||||||
| Provision for income taxes | 23,083 | 20,124 | 82,360 | 69,269 | |||||||
| Net Income | 37,605 | 34,801 | 135,166 | 115,244 | |||||||
| Net loss (income) attributable to the noncontrolling interest | 222 | (96) | 797 | 294 | |||||||
| Net Income Attributable to Cash America International, Inc. | $ | 37,827 | $ | 34,705 | $ | 135,963 | $ | 115,538 | |||
| Earnings Per Share: | |||||||||||
| Net Income attributable to Cash America International, Inc. common shareholders: | |||||||||||
| Basic | $ | 1.28 | $ | 1.17 | $ | 4.59 | $ | 3.90 | |||
| Diluted | $ | 1.18 | $ | 1.10 | $ | 4.25 | $ | 3.67 | |||
| Weighted average common shares outstanding: | |||||||||||
| Basic | 29,528 | 29,759 | 29,602 | 29,640 | |||||||
| Diluted | 32,059 | 31,655 | 31,991 | 31,521 | |||||||
| Dividends declared per common share | $ | 0.035 | $ | 0.035 | $ | 0.140 | $ | 0.140 | |||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES PAWN LENDING ACTIVITIES – FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)
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The following table outlines certain data related to the Company’s pawn loan activities as of and for the three months and years ended December 31, 2011 and 2010. |
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| 2011 | 2010 | ||||||||||||||||
| As of December 31: | Domestic | Foreign | Total | Domestic | Foreign | Total | |||||||||||
| Ending pawn loan balances | $ | 238,399 | $ | 15,120 | $ | 253,519 | $ | 197,301 | $ | 21,107 | $ | 218,408 | |||||
| Ending merchandise balance, net | $ | 151,274 | $ | - | (a) | $ | 151,274 | $ | 124,399 | $ | - | (a) | $ | 124,399 | |||
| Three Months Ended December 31: | |||||||||||||||||
| Pawn loan fees and service charges | $ | 71,420 | $ | 8,181 | $ | 79,601 | $ | 62,755 | $ | 8,803 | $ | 71,558 | |||||
| Average pawn loan balance outstanding | $ | 231,424 | $ | 17,561 | $ | 248,985 | $ | 190,642 | $ | 21,246 | $ | 211,888 | |||||
| Amount of pawn loans written and renewed | $ | 227,944 | $ | 37,266 | $ | 265,210 | $ | 197,874 | $ | 23,348 | $ | 221,222 | |||||
| Annualized yield on pawn loans | 122.4% | 116.5% | (a) | 121.8% | 130.6% | 126.9% | (a) | 130.1% | |||||||||
| Gross profit margin on disposition of merchandise | 33.1% | - | (a) | 33.1% | 35.5% | - | (a) | 35.5% | |||||||||
| Merchandise turnover | 3.3 | - | (a) | 3.3 | 3.2 | - | (a) | 3.2 | |||||||||
| 2011 | 2010 | ||||||||||||||||
| Year Ended December 31: | Domestic | Foreign | Total | Domestic | Foreign | Total | |||||||||||
| Pawn loan fees and service charges | $ | 261,829 | $ | 30,062 | $ | 291,891 | $ | 221,335 | $ | 31,979 | $ | 253,314 | |||||
| Average pawn loan balance outstanding | $ | 205,610 | $ | 20,629 | $ | 226,239 | $ | 166,163 | $ | 22,111 | $ | 188,274 | |||||
| Amount of pawn loans written and renewed | $ | 869,203 | $ | 118,126 | $ | 987,329 | $ | 689,476 | $ | 89,746 | $ | 779,222 | |||||
| Annualized yield on pawn loans | 127.3% | 105.2% | (a) | 124.6% | 133.2% | 116.4% | (a) | 130.8% | |||||||||
| Gross profit margin on disposition of merchandise | 36.4% | - | (a) | 36.4% | 36.7% | - | (a) | 36.7% | |||||||||
| Merchandise turnover | 3.0 | - | (a) | 3.0 | 3.0 | - | (a) | 3.0 | |||||||||
| (a) | With respect to the Company’s foreign pawn operations, the annualized yield on pawn loans is calculated using the average pawn loan balance outstanding in the table above, plus the average collateral underlying unredeemed pawn loans, which is included in “Other assets” in the Company’s consolidated balance sheets, of $10,277 and $6,272 for the three months ended December 31, 2011 and 2010, respectively, and $7,947 and $5,355 for the years ended December 31, 2011 and 2010, respectively. Collateral underlying unredeemed pawn loans will be sold to settle the obligations owed by the customer but are not owned by the Company; therefore, profit on the disposition of this collateral is recorded as pawn loan fees and service charges in the Company’s consolidated statements of operations. | |
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES |
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MERCHANDISE DISPOSITION, GROSS PROFIT AND INVENTORY OPERATING DATA |
| (in thousands) |
Profit from the disposition of merchandise represents the proceeds received from the disposition of merchandise in excess of the cost of disposed merchandise. Retail sales include the sale of jewelry and general merchandise direct to consumers through any of the Company’s retail services locations or the internet. Commercial sales include the sale of refined gold, platinum and diamonds to refiners, brokers or manufacturers. The following table summarizes the proceeds from the disposition of merchandise and the related profit for the three months and years ended December 31, 2011 and 2010.
| Three Months Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | ||||||||||||||||||||||
| Retail | Commercial | Total | Retail | Commercial | Total | ||||||||||||||||||
| Proceeds from disposition | $ | 100,439 | $ | 100,514 | $ | 200,953 | $ | 91,548 | $ | 70,599 | $ | 162,147 | |||||||||||
| Gross profit on disposition | $ | 36,594 | $ | 29,919 | $ | 66,513 | $ | 35,710 | $ | 21,839 | $ | 57,549 | |||||||||||
| Gross profit margin | 36.4 | % | 29.8 | % | 33.1 | % | 39.0 | % | 30.9 | % | 35.5 | % | |||||||||||
| Percentage of total gross profit | 55.0 | % | 45.0 | % | 100.0 | % | 62.1 | % | 37.9 | % | 100.0 | % | |||||||||||
| Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | ||||||||||||||||||||||
| Retail | Commercial | Total | Retail | Commercial | Total | ||||||||||||||||||
| Proceeds from disposition | $ | 346,469 | $ | 290,259 | $ | 636,728 | $ | 306,300 | $ | 228,578 | $ | 534,878 | |||||||||||
| Gross profit on disposition | $ | 134,455 | $ | 97,118 | $ | 231,573 | $ | 121,819 | $ | 74,303 | $ | 196,122 | |||||||||||
| Gross profit margin | 38.8 | % | 33.5 | % | 36.4 | % | 39.8 | % | 32.5 | % | 36.7 | % | |||||||||||
| Percentage of total gross profit | 58.1 | % | 41.9 | % | 100.0 | % | 62.1 | % | 37.9 | % | 100.0 | % | |||||||||||
The table below summarizes the age of merchandise held for disposition before valuation allowance of $0.7 million at December 31, 2011 and 2010 (dollars in thousands).
| 2011 | 2010 | |||||||||
| Balance at December 31, | Amount | % | Amount | % | ||||||
| Jewelry – held for one year or less | $ | 94,649 | 62.3 | $ | 79,566 | 63.6 | ||||
| Other merchandise – held for one year or less | 50,907 | 33.5 | 39,809 | 31.8 | ||||||
| Total merchandise held for one year or less | 145,556 | 95.8 | 119,375 | 95.4 | ||||||
| Jewelry – held for more than one year | 2,626 | 1.7 | 2,685 | 2.2 | ||||||
| Other merchandise – held for more than one year | 3,792 | 2.5 | 3,039 | 2.4 | ||||||
| Total merchandise held for more than one year | 6,418 | 4.2 | 5,724 | 4.6 | ||||||
| Total merchandise held for disposition | $ | 151,974 | 100.0 | $ | 125,099 | 100.0 | ||||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)
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The following table sets forth consumer loan fees by channel and segment, adjusted for the deduction of the loan loss provision for the three months and years ended December 31, 2011 and 2010 (dollars in thousands): |
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| Three Months Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | ||||||||||||||||||||||
| Retail Services | E-Commerce | Total | Retail Services | E-Commerce | Total | ||||||||||||||||||
| Short-term loans | $ | 30,570 | $ | 127,246 | $ | 157,816 | $ | 29,229 | $ | 95,008 | $ | 124,237 | |||||||||||
| Installment loans | 2,790 | 19,518 | 22,308 | 1,168 | 4,294 | 5,462 | |||||||||||||||||
| MLOC | - | - | - | - | 2,074 | 2,074 | |||||||||||||||||
| Consumer loan fees | $ | 33,360 | $ | 146,764 | $ | 180,124 | $ | 30,397 | $ | 101,376 | $ | 131,773 | |||||||||||
| Consumer loan loss provision | 8,549 | 71,934 | 80,483 | 4,466 | 47,965 | 52,431 | |||||||||||||||||
| Consumer loan fees, net of loan loss provision | $ | 24,811 | $ | 74,830 | $ | 99,641 | $ | 25,931 | $ | 53,411 | $ | 79,342 | |||||||||||
| Year-over-year change - $ | $ | (1,120) | $ | 21,419 | $ | 20,299 | $ | (395) | $ | 10,174 | $ | 9,779 | |||||||||||
| Year-over-year change - % | (4.3) | % | 40.1 | % | 25.6 | % | (1.5) | % | 23.5 | % | 14.1 | % | |||||||||||
|
Consumer loan loss provision as a % of
consumer loan fees |
25.6 | % | 49.0 | % | 44.7 | % | 14.7 | % | 47.3 | % | 39.8 | % | |||||||||||
| Year Ended December 31, | |||||||||||||||||||||||
| 2011 | 2010 | ||||||||||||||||||||||
| Retail Services | E-Commerce | Total | Retail Services | E-Commerce | Total | ||||||||||||||||||
| Short-term loans | $ | 110,071 | $ | 431,400 | $ | 541,471 | $ | 112,679 | $ | 338,553 | $ | 451,232 | |||||||||||
| Installment loans | 9,121 | 48,054 | 57,175 | 1,294 | 10,783 | 12,077 | |||||||||||||||||
| MLOC | - | - | - | - | 27,643 | 27,643 | |||||||||||||||||
| Consumer loan fees | $ | 119,192 | $ | 479,454 | $ | 598,646 | $ | 113,973 | $ | 376,979 | $ | 490,952 | |||||||||||
| Consumer loan loss provision | 24,001 | 201,687 | 225,688 | 17,437 | 164,957 | 182,394 | |||||||||||||||||
| Consumer loan fees, net of loan loss provision | $ | 95,191 | $ | 277,767 | $ | 372,958 | $ | 96,536 | $ | 212,022 | $ | 308,558 | |||||||||||
| Year-over-year change - $ | $ | (1,345) | $ | 65,745 | $ | 64,400 | $ | 181 | $ | 67,337 | $ | 67,518 | |||||||||||
| Year-over-year change - % | (1.4) | % | 31.0 | % | 20.9 | % | 0.2 | % | 46.5 | % | 28.0 | % | |||||||||||
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Consumer loan loss provision as a % of
consumer loan fees |
20.1 | % | 42.1 | % | 37.7 | % | 15.3 | % | 43.8 | % | 37.2 | % | |||||||||||
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In addition to providing consumer loans owned by the Company and consumer loans guaranteed by the Company, which are either generally accepted accounting principles (“GAAP”) items or disclosures required by GAAP, the Company has provided combined consumer loans, which is a non-GAAP measure. In addition, the Company has provided disclosure regarding consumer loans written, which is statistical data that is not included in the Company’s financial statements. The Company also provides allowances and liabilities for losses on consumer loans on a combined basis, which are GAAP measures.
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Management believes these measures provide investors with important information needed to evaluate the magnitude of potential loan losses and the opportunity for revenue performance of the consumer loan portfolio on an aggregate basis. The comparison of the aggregate amounts from period to period is more meaningful than comparing only the residual amount on the Company’s balance sheet since both revenue and the loss provision for loans are impacted by the aggregate amount of loans owned by the Company and those guaranteed by the Company as reflected in its financial statements. |
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)
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The following tables summarize selected data related to the Company’s consumer loan activities as of December 31, 2011 and 2010 and for the three months and years ended December 31, 2011 and 2010. |
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| Three Months Ended | Year Ended | |||||||||||||
| December 31, | December 31, | |||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||
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Combined consumer loan loss provision as a % of combined consumer loans written(a)
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9.2% | 7.1% | 7.4% | 6.2% | ||||||||||
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Charge-offs (net of recoveries) as a % of combined consumer loans written(a)
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7.4% | 8.0% | 6.6% | 5.8% | ||||||||||
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Combined consumer loan loss provision as a % of consumer loan fees
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44.7% | 39.8% | 37.7% | 37.2% | ||||||||||
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(a) Non-GAAP measure. |
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| As of December 31, | ||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||
| Company Owned(a) | Guaranteed by the Company(a) | Combined(b) | Company Owned(a) | Guaranteed by the Company(a) | Combined(b) | |||||||||||||
| Ending consumer loan balances: | ||||||||||||||||||
| Retail Services | ||||||||||||||||||
| Short-term loans | $ | 53,601 | $ | 9,237 | $ | 62,838 | $ | 49,267 | $ | 9,819 | $ | 59,086 | ||||||
| Installment loans | 9,262 | 7,425 | 16,687 | 2,686 | 3,800 | 6,486 | ||||||||||||
| Total Retail Services, gross | 62,863 | 16,662 | 79,525 | 51,953 | 13,619 | 65,572 | ||||||||||||
| E-Commerce | ||||||||||||||||||
| Domestic | ||||||||||||||||||
| Short-term loans | 60,880 | 39,341 | 100,221 | 52,019 | 37,082 | 89,101 | ||||||||||||
| Installment loans | 24,582 | - | 24,582 | 11,023 | - | 11,023 | ||||||||||||
| MLOC | - | - | - | 1,510 | - | 1,510 | ||||||||||||
| Total Domestic, gross | 85,462 | 39,341 | 124,803 | 64,552 | 37,082 | 101,634 | ||||||||||||
| Foreign | ||||||||||||||||||
| Short-term loans | 101,723 | 3,420 | 105,143 | 57,848 | 1,867 | 59,715 | ||||||||||||
| Installment loans | 35,802 | - | 35,802 | 3,977 | - | 3,977 | ||||||||||||
| Total Foreign, gross | 137,525 | 3,420 | 140,945 | 61,825 | 1,867 | 63,692 | ||||||||||||
| Total E-Commerce, gross | 222,987 | 42,761 | 265,748 | 126,377 | 38,949 | 165,326 | ||||||||||||
| Total ending loan balance, gross | 285,850 | 59,423 | 345,273 | 178,330 | 52,568 | 230,898 | ||||||||||||
| Less: Allowance and liabilities for losses | (63,072) | (3,062) | (66,134) | (38,953) | (2,838) | (41,791) | ||||||||||||
| Total ending loan balance, net | $ | 222,778 | $ | 56,361 | $ | 279,139 | $ | 139,377 | $ | 49,730 | $ | 189,107 | ||||||
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(a)GAAP measure. The consumer loan balances guaranteed by the Company relate to loans originated through the CSO programs and are not recorded in the Company’s financial statements. |
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(b)Except for allowance and liability for losses, amounts represent non-GAAP measures. |
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted)
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The following table summarizes consumer loans written for the three months and years ended December 31, 2011 and 2010 (dollars in thousands). |
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| Three Months Ended December 31, | ||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||
| Company Owned(a) | Guaranteed by the Company(a)(b) | Combined(a) | Company Owned(a) | Guaranteed by the Company(a)(b) | Combined(a) | |||||||||||||
| Amount of consumer loans written: | ||||||||||||||||||
| Retail Services | ||||||||||||||||||
| Short-term loans | $ | 202,782 | $ | 46,079 | $ | 248,861 | $ | 191,663 | $ | 51,067 | $ | 242,730 | ||||||
| Installment loans | 1,676 | 5,588 | 7,264 | 472 | 5,112 | 5,584 | ||||||||||||
| Total Retail Services | 204,458 | 51,667 | 256,125 | 192,135 | 56,179 | 248,314 | ||||||||||||
| E-Commerce | ||||||||||||||||||
| Domestic | ||||||||||||||||||
| Short-term loans | 117,581 | 189,585 | 307,166 | 123,415 | 184,899 | 308,314 | ||||||||||||
| Installment loans | 14,270 | - | 14,270 | 10,469 | - | 10,469 | ||||||||||||
| MLOC | - | - | - | 14,489 | - | 14,489 | ||||||||||||
| Total Domestic | 131,851 | 189,585 | 321,436 | 148,373 | 184,899 | 333,272 | ||||||||||||
| Foreign | ||||||||||||||||||
| Short-term loans | 252,334 | 16,441 | 268,775 | 141,556 | 8,631 | 150,187 | ||||||||||||
| Installment loans | 24,510 | - | 24,510 | 4,042 | - | 4,042 | ||||||||||||
| Total Foreign | 276,844 | 16,441 | 293,285 | 145,598 | 8,631 | 154,229 | ||||||||||||
| Total E-Commerce | 408,695 | 206,026 | 614,721 | 293,971 | 193,530 | 487,501 | ||||||||||||
| Total amount of consumer loans written | $ | 613,153 | $ | 257,693 | $ | 870,846 | $ | 486,106 | $ | 249,709 | $ | 735,815 | ||||||
| Number of consumer loans written: | ||||||||||||||||||
| Retail Services | ||||||||||||||||||
| Short-term loans | 430,692 | 82,935 | 513,627 | 430,902 | 89,624 | 520,526 | ||||||||||||
| Installment loans | 1,757 | 824 | 2,581 | 1,275 | 863 | 2,138 | ||||||||||||
| Total Retail Services | 432,449 | 83,759 | 516,208 | 432,177 | 90,487 | 522,664 | ||||||||||||
| E-Commerce | ||||||||||||||||||
| Domestic | ||||||||||||||||||
| Short-term loans | 360,255 | 265,007 | 625,262 | 353,031 | 272,192 | 625,223 | ||||||||||||
| Installment loans | 11,521 | - | 11,521 | 12,650 | - | 12,650 | ||||||||||||
| MLOC | - | - | - | 72,371 | - | 72,371 | ||||||||||||
| Total Domestic | 371,776 | 265,007 | 636,783 | 438,052 | 272,192 | 710,244 | ||||||||||||
| Foreign | ||||||||||||||||||
| Short-term loans | 465,473 | 23,557 | 489,030 | 272,493 | 15,446 | 287,939 | ||||||||||||
| Installment loans | 21,382 | - | 21,382 | 4,885 | - | 4,885 | ||||||||||||
| Total Foreign | 486,855 | 23,557 | 510,412 | 277,378 | 15,446 | 292,824 | ||||||||||||
| Total E-Commerce | 858,631 | 288,564 | 1,147,195 | 715,430 | 287,638 | 1,003,068 | ||||||||||||
| Total number of consumer loans written | 1,291,080 | 372,323 | 1,663,403 | 1,147,607 | 378,125 | 1,525,732 | ||||||||||||
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(a) The disclosure regarding the amount and number of consumer loans written is statistical data that is not included in the Company’s financial statements. |
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(b) Loans guaranteed by the Company represent loans originated through the CSO programs. |
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES CONSUMER LOAN FINANCIAL AND OPERATING DATA (in thousands, except where otherwise noted) |
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| Year Ended December 31, | ||||||||||||||||||
| 2011 | 2010 | |||||||||||||||||
| Company Owned(a) | Guaranteed by the Company(a)(b) | Combined(a) | Company Owned(a) | Guaranteed by the Company(a)(b) | Combined(a) | |||||||||||||
| Amount of consumer loans written: | ||||||||||||||||||
| Retail Services | ||||||||||||||||||
| Short-term loans | $ | 736,964 | $ | 174,510 | $ | 911,474 | $ | 702,422 | $ | 199,155 | $ | 901,577 | ||||||
| Installment loans | 8,256 | 15,781 | 24,037 | 739 | 6,905 | 7,644 | ||||||||||||
| Total Retail Services | 745,220 | 190,291 | 935,511 | 703,161 | 206,060 | 909,221 | ||||||||||||
| E-Commerce | ||||||||||||||||||
| Domestic | ||||||||||||||||||
| Short-term loans | 433,053 | 681,009 | 1,114,062 | 459,616 | 782,290 | 1,241,906 | ||||||||||||
| Installment loans | 42,532 | - | 42,532 | 23,656 | - | 23,656 | ||||||||||||
| MLOC | - | - | - | 288,723 | - | 288,723 | ||||||||||||
| Total Domestic | 475,585 | 681,009 | 1,156,594 | 771,995 | 782,290 | 1,554,285 | ||||||||||||
| Foreign | ||||||||||||||||||
| Short-term loans | 820,841 | 56,917 | 877,758 | 429,853 | 24,797 | 454,650 | ||||||||||||
| Installment loans | 61,307 | - | 61,307 | 4,161 | - | 4,161 | ||||||||||||
| Total Foreign | 882,148 | 56,917 | 939,065 | 434,014 | 24,797 | 458,811 | ||||||||||||
| Total E-Commerce | 1,357,733 | 737,926 | 2,095,659 | 1,206,009 | 807,087 | 2,013,096 | ||||||||||||
| Total amount of consumer loans written | $ | 2,102,953 | $ | 928,217 | $ | 3,031,170 | $ | 1,909,170 | $ | 1,013,147 | $ | 2,922,317 | ||||||
| Number of consumer loans written: | ||||||||||||||||||
| Retail Services | ||||||||||||||||||
| Short-term loans | 1,586,551 | 309,003 | 1,895,554 | 1,602,914 | 347,008 | 1,949,922 | ||||||||||||
| Installment loans | 6,858 | 2,863 | 9,721 | 2,034 | 1,187 | 3,221 | ||||||||||||
| Total Retail Services | 1,593,409 | 311,866 | 1,905,275 | 1,604,948 | 348,195 | 1,953,143 | ||||||||||||
| E-Commerce | ||||||||||||||||||
| Domestic | ||||||||||||||||||
| Short-term loans | 1,317,483 | 958,821 | 2,276,304 | 1,284,299 | 1,135,762 | 2,420,061 | ||||||||||||
| Installment loans | 36,151 | - | 36,151 | 34,305 | - | 34,305 | ||||||||||||
| MLOC | - | - | - | 1,451,330 | - | 1,451,330 | ||||||||||||
| Total Domestic | 1,353,634 | 958,821 | 2,312,455 | 2,769,934 | 1,135,762 | 3,905,696 | ||||||||||||
| Foreign | ||||||||||||||||||
| Short-term loans | 1,543,453 | 84,897 | 1,628,350 | 865,996 | 52,460 | 918,456 | ||||||||||||
| Installment loans | 53,567 | - | 53,567 | 5,018 | - | 5,018 | ||||||||||||
| Total Foreign | 1,597,020 | 84,897 | 1,681,917 | 871,014 | 52,460 | 923,474 | ||||||||||||
| Total E-Commerce | 2,950,654 | 1,043,718 | 3,994,372 | 3,640,948 | 1,188,222 | 4,829,170 | ||||||||||||
| Total number of consumer loans written | 4,544,063 | 1,355,584 | 5,899,647 | 5,245,896 | 1,536,417 | 6,782,313 | ||||||||||||
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(a) The disclosure regarding the amount and number of consumer loans written is statistical data that is not included in the Company’s financial statements. |
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(b) Loans guaranteed by the Company represent loans originated through the CSO programs. |
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT (in thousands)
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The Company allocates corporate administrative expenses to each operating segment based on personnel expenses at each segment. In the e-commerce segment, certain administrative expenses are allocated between the domestic and foreign components based on the amount of loans written for each geographic location. |
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| Retail Services | E-Commerce | |||||||||||||||||||||
| Domestic | Foreign | Total | Domestic | Foreign | Total | Consolidated | ||||||||||||||||
| Three Months Ended December 31, 2011 | ||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| Pawn loan fees and service charges | $ | 71,420 | $ | 8,181 | $ | 79,601 | $ | - | $ | - | $ | - | $ | 79,601 | ||||||||
| Proceeds from disposition of merchandise | 200,953 | - | 200,953 | - | - | - | 200,953 | |||||||||||||||
| Consumer loan fees | 33,360 | - | 33,360 | 72,909 | 73,855 | 146,764 | 180,124 | |||||||||||||||
| Other | 2,665 | 253 | 2,918 | 201 | (545) | (344) | 2,574 | |||||||||||||||
| Total revenue | 308,398 | 8,434 | 316,832 | 73,110 | 73,310 | 146,420 | 463,252 | |||||||||||||||
| Disposed merchandise | 134,440 | - | 134,440 | - | - | - | 134,440 | |||||||||||||||
| Consumer loan loss provision | 8,549 | - | 8,549 | 31,401 | 40,533 | 71,934 | 80,483 | |||||||||||||||
| Total cost of revenue | 142,989 | - | 142,989 | 31,401 | 40,533 | 71,934 | 214,923 | |||||||||||||||
| Net revenue | 165,409 | 8,434 | 173,843 | 41,709 | 32,777 | 74,486 | 248,329 | |||||||||||||||
| Expenses | ||||||||||||||||||||||
| Operations | 88,571 | 5,380 | 93,951 | 19,710 | 19,574 | 39,284 | 133,235 | |||||||||||||||
| Administration | 12,457 | 2,889 | 15,346 | 10,027 | 7,047 | 17,074 | 32,420 | |||||||||||||||
| Depreciation and amortization | 10,448 | 1,412 | 11,860 | 2,457 | 232 | 2,689 | 14,549 | |||||||||||||||
| Total expenses | 111,476 | 9,681 | 121,157 | 32,194 | 26,853 | 59,047 | 180,204 | |||||||||||||||
| Income (loss) from operations | $ | 53,933 | $ | (1,247) | $ | 52,686 | $ | 9,515 | $ | 5,924 | $ | 15,439 | $ | 68,125 | ||||||||
| As of December 31, 2011 | ||||||||||||||||||||||
| Total assets | $ | 1,068,761 | $ | 120,735 | $ | 1,189,496 | $ | 352,244 | $ | 135,774 | $ | 488,018 | $ | 1,677,514 | ||||||||
| Goodwill | $ | 352,439 | $ | 210,282 | $ | 562,721 | ||||||||||||||||
| Retail Services | E-Commerce | |||||||||||||||||||||
| Domestic | Foreign | Total | Domestic | Foreign | Total | Consolidated | ||||||||||||||||
| Three Months Ended December 31, 2010 | ||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| Pawn loan fees and service charges | $ | 62,755 | $ | 8,803 | $ | 71,558 | $ | - | $ | - | $ | - | $ | 71,558 | ||||||||
| Proceeds from disposition of merchandise | 162,147 | - | 162,147 | - | - | - | 162,147 | |||||||||||||||
| Consumer loan fees | 30,397 | - | 30,397 | 67,402 | 33,974 | 101,376 | 131,773 | |||||||||||||||
| Other | 2,647 | 162 | 2,809 | 465 | 79 | 544 | 3,353 | |||||||||||||||
| Total revenue | 257,946 | 8,965 | 266,911 | 67,867 | 34,053 | 101,920 | 368,831 | |||||||||||||||
| Disposed merchandise | 104,598 | - | 104,598 | - | - | - | 104,598 | |||||||||||||||
| Consumer loan loss provision | 4,466 | - | 4,466 | 30,934 | 17,031 | 47,965 | 52,431 | |||||||||||||||
| Total cost of revenue | 109,064 | - | 109,064 | 30,934 | 17,031 | 47,965 | 157,029 | |||||||||||||||
| Net revenue | 148,882 | 8,965 | 157,847 | 36,933 | 17,022 | 53,955 | 211,802 | |||||||||||||||
| Expenses | ||||||||||||||||||||||
| Operations | 81,829 | 4,709 | 86,538 | 18,421 | 10,396 | 28,817 | 115,355 | |||||||||||||||
| Administration | 9,437 | 1,795 | 11,232 | 8,144 | 3,309 | 11,453 | 22,685 | |||||||||||||||
| Depreciation and amortization | 8,301 | 1,847 | 10,148 | 2,348 | 76 | 2,424 | 12,572 | |||||||||||||||
| Total expenses | 99,567 | 8,351 | 107,918 | 28,913 | 13,781 | 42,694 | 150,612 | |||||||||||||||
| Income from operations | $ | 49,315 | $ | 614 | $ | 49,929 | $ | 8,020 | $ | 3,241 | $ | 11,261 | $ | 61,190 | ||||||||
| As of December 31, 2010 | ||||||||||||||||||||||
| Total assets | $ | 929,696 | $ | 123,044 | $ | 1,052,740 | $ | 312,642 | $ | 61,804 | $ | 374,446 | $ | 1,427,186 | ||||||||
| Goodwill | $ | 333,042 | $ | 210,282 | $ | 543,324 | ||||||||||||||||
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CASH AMERICA INTERNATIONAL, INC. AND SUBSIDIARIES INCOME FROM OPERATIONS BY OPERATING SEGMENT (in thousands) |
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| Retail Services | E-Commerce | ||||||||||||||||||||
| Domestic | Foreign | Total | Domestic | Foreign | Total | Consolidated | |||||||||||||||