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Diluted earnings per share from continuing operations for the second quarter of 2014 totaled $0.55, compared to earnings per share of $0.53 in the second quarter of 2013. Year-to-date diluted earnings per share increased 10% to $1.33, compared to $1.21 in the comparable prior-year period. Second quarter earnings per share for 2014 include the impact of approximately $0.07 of incremental interest expense related to the Company's strategic long-term senior unsecured note offering in March 2014.

•	Net income for the second quarter of 2014 increased to $16.0 million, compared to $15.7 million in the second quarter of 2013.

•	EBITDA from continuing operations for the second quarter of 2014 totaled $31.4 million, an increase of 12% versus the prior-year period. For the trailing twelve months, EBITDA totaled $141.3 million. A reconciliation of this non-GAAP financial measure to net income is provided elsewhere in this release.

•	Total revenue for the second quarter of 2014 was $165 million, an increase of 19%, compared to the second quarter of 2013. Year-to-date revenue increased 13%, compared to the first six months of 2013.

•	On a geographic basis, 56% of total second quarter revenue was generated in Mexico, while 44% was generated from U.S. operations.

•	Retail merchandise sales increased by 19% for the second quarter of 2014, compared to the prior-year period. Second quarter retail sales increased 30% in the U.S. and 13% in Mexico.

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Consolidated revenue from pawn loan fees increased 13% for the second quarter of 2014, with U.S. fees up 18% due primarily to continued momentum from acquisitions. Pawn fees in Mexico increased 10% over the prior-year period, which compares favorably on a sequential basis to the growth rate of 6% in both the first quarter of 2014 and the fourth quarter of 2013, and reflects accelerating growth in pawn receivables during the second quarter.

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•	Same-store core revenue in the Company's pawn stores (which excludes wholesale jewelry scrapping) for the second quarter increased 5% in Mexico, decreased 5% in the U.S. and increased 1%, on a consolidated basis, as compared to the prior-year period.

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Gross profit from non-core wholesale scrap jewelry operations in the second quarter of 2014 totaled $2.1 million, compared to $717,000 in the prior-year quarter. The limited amount of gold sold in the second quarter of 2013 was due to the Company's election to dispose of the majority of scrap jewelry in the third quarter of 2013. The gross margin for scrap jewelry sales was 17% in the second quarter of 2014, compared to the prior-year margin of 13%. Scrap jewelry accounted for only 2% of net revenue for the second quarter.

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Short-term loan and credit services revenue decreased 16% in the second quarter of 2014, compared to the prior-year period. The decline represents a continuation of added regulatory restrictions and store contraction in Texas. The non-core U.S. short-term loan business comprised only 5% of total revenue in the second quarter of 2014 and is anticipated to contribute less than 5% of total revenues by year end.

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Total pawn loans outstanding (receivable from customers) increased by 10% on a year-over-year basis as loans grew 14% in Mexico and 7% in the U.S. The growth in Mexico was especially strong, compared to year-over-year total growth of 3% at the end of 2013. Same-store basis pawn loans outstanding increased 3% in total at June 30, 2014 on a year-over-year basis, compared to a same-store decrease of 4% in the previous sequential quarter ended March 31, 2014.

•	The consolidated gross margin on retail merchandise sales was 39% during the second quarter of 2014, which was consistent with the gross margin in the second quarter of 2013 and the first quarter of 2014. The average monthly pawn loan portfolio yield was also unchanged at 14% for the second quarter and the same quarter last year, reflecting consistent pawn redemption trends.

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Consolidated annualized inventory turns for the twelve months ended June 30, 2014 were 3.8 times per year and aged inventory (items held for over a year) accounted for 3% of total inventory. Total inventories at June 30, 2014 decreased 5% over the prior year largely as a result of reduced scrap jewelry inventories and optimizing inventory levels at previously acquired stores. Total inventories as a percentage of pawn receivables are currently tracking at historical norms.

•	The Company added 13 large format pawn store locations during the second quarter of 2014, composed of 12 new stores in Mexico and one new store in the U.S., and remains on track to reach its 2014 store growth targets in the U.S. and Mexico.

•	As of June 30, 2014, the Company had 616 stores in Mexico, of which 571 are large format, full-service pawn stores and 310 stores in the U.S., of which 230 are large format, full-service pawn stores.

•	Return on equity for the trailing twelve months ended June 30, 2014, was 21%, while return on assets was 13%.

•	Consolidated net operating margin (pre-tax income) was 17% for the trailing twelve month period, while the store-level operating profit margin was 26% for the trailing twelve month period.

•	The EBITDA margin from continuing operations was 20% for the trailing twelve months ended June 30, 2014. EBITDA from continuing operations and free cash flow are defined in the detailed reconciliation of these non-GAAP financial measures provided elsewhere in this release.

•	For the twelve months ended June 30, 2014, the Company utilized operating cash flows, availability under its credit facility and the proceeds from the March 2014 senior unsecured note offering to invest $49 million in acquisitions, $28 million in capital expenditures and $13 million in stock repurchases.

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•	The Company repurchased 235,000 shares of its common stock during the second quarter of 2014 at an aggregate cost of $13 million. At June 30, 2014, a total of 536,000 shares remained available for repurchase under the current 1.5 million share repurchase authorization.

•	The Company ended the quarter with $84 million in cash on its balance sheet and $160 million of availability under its revolving bank credit facility.

•	The leverage ratio at June 30, 2014 (outstanding indebtedness divided by trailing twelve months EBITDA from continuing operations) was 1.4 to 1. Net debt, defined as funded debt less invested cash, was $153 million at June 30, 2014 and the ratio of net debt to equity was 0.35 to 1.

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The Company continues to expect fiscal 2014 fully diluted earnings per share to be within its previously announced range of $3.00 to $3.15 per diluted share. As previously reported, the impact of the incremental borrowing costs from the March 2014 issuance of the senior unsecured notes will likely keep earnings at the lower end of the guidance range. The EPS guidance range implies second half EBITDA growth in a range of 17% to 20%, the majority of which will occur in the fourth quarter. As a reminder, third quarter 2013 earnings per share were $0.79 and included a non-recurring tax benefit of approximately $0.11 per share and the incremental deferred scrap sale benefit of approximately $0.01 per share (tax effected). Due to these prior year benefits, third quarter 2014 earnings per share are anticipated to be lower than the prior-year comparable quarter.

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The Company expects to add approximately 75 to 85 new stores in 2014. It anticipates that most of the additions will continue to be large format pawn stores in Mexico, but also includes 10 to 15 new builds and small acquisitions in the U.S. Additionally, the Company will continue to look opportunistically for large format pawn acquisitions in strategic markets, which could further increase store additions for 2014.

•	Revenue growth in 2014 is expected to be generated exclusively from core pawn operations, partially offset by the continued de-emphasis of payday lending operations. Approximately 95% of total 2014 revenues are expected to be derived from growing pawn operations.

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The Company's guidance assumptions continue to reflect the impact of lower gold prices and reduced scrap volumes on scrap jewelry revenues and pawn loan balances and the continued contraction of non-core payday lending revenues. Earnings guidance estimates for 2014 are based on an average Mexican peso exchange rate of 13.0:1, gold prices in the range of $1,200 to $1,300 per ounce, and an anticipated income tax rate of approximately 32% for the remainder of fiscal 2014.

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•	changes in regional, national or international economic conditions, including inflation rates, unemployment rates and energy prices;

•	changes in consumer demand, including purchasing, borrowing and repayment behaviors;

•	changes in pawn forfeiture rates and credit loss provisions;

•	changes in the market value of pawn collateral and merchandise inventories, including gold prices and the value of consumer electronics and other products;

•	changes or increases in competition;

•	the ability to locate, open and staff new stores and successfully integrate acquisitions;

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•	the availability or access to sources of used merchandise inventory;

•	changes in credit markets, interest rates and the ability to establish, renew and/or extend the Company’s debt financing;

•	the ability to maintain banking relationships for treasury services and processing of certain consumer lending transactions;

•	the ability to hire and retain key management personnel;

•	new federal, state or local legislative initiatives or governmental regulations (or changes to existing laws and regulations) affecting pawn businesses, consumer loan businesses and credit services organizations (in both the United States and Mexico);

•	risks and uncertainties related to foreign operations in Mexico;

•	changes in import/export regulations and tariffs or duties;

•	changes in anti-money laundering and gun control regulations;

•	unforeseen litigation;

•	changes in tax rates or policies in the U.S. and Mexico;

•	changes in foreign currency exchange rates;

•	inclement weather, natural disasters and public health issues;

•	security breaches, cyber attacks or fraudulent activity;

•	a prolonged interruption in the Company’s operations of its facilities, systems, and business functions, including its information technology and other business systems;

•	the implementation of new, or changes in the interpretation of existing, accounting principles or financial reporting requirements; and

•	future business decisions.

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(1)	The large format locations include retail showrooms and accept a broad array of pawn collateral including consumer electronics, appliances, power tools, jewelry and other general merchandise items. At June 30, 2014, 122 of the U.S. large format pawn stores also offered consumer loans or credit services products.

(2)	The small format locations typically have limited retail operations and primarily accept jewelry and small electronic items as pawn collateral and also offer consumer loans or credit services products.

(3)	The Company’s U.S. free-standing, small format consumer loan locations offer a credit services product and are all located in Texas. The Mexico locations offer small, short-term consumer loans. The Company’s credit services operations also include an internet distribution channel for customers residing in the state of Texas.

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(1)	The large format locations include retail showrooms and accept a broad array of pawn collateral including consumer electronics, appliances, power tools, jewelry and other general merchandise items. At June 30, 2014, 122 of the U.S. large format pawn stores also offered consumer loans or credit services products.

(2)	The small format locations typically have limited retail operations and primarily accept jewelry and small electronic items as pawn collateral and also offer consumer loans or credit services products.

(3)	The Company’s U.S. free-standing, small format consumer loan locations offer a credit services product and are all located in Texas. The Mexico locations offer small, short-term consumer loans. The Company’s credit services operations also include an internet distribution channel for customers residing in the state of Texas.

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(1)

Wholesale scrap jewelry revenue during the three months ended June 30, 2014, consisted primarily of gold sales, of which approximately 8,000 ounces were sold at an average price of $1,318 per ounce, compared to approximately 2,100 ounces of gold sold at $1,561 per ounce in the prior-year period. The limited amount of gold sold in the second quarter of 2013 was due to the Company's election to defer the sale of approximately 7,700 ounces of gold until the third quarter of 2013.

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(1)

Wholesale scrap jewelry revenue during the six months ended June 30, 2014 consisted primarily of gold, of which approximately 16,900 ounces sold at an average selling price of $1,311 per ounce, compared to approximately 14,500 ounces of gold sold at $1,637 per ounce in the prior-year period. The limited amount of gold sold in the second quarter of 2013 was due to the Company's election to defer the sale of approximately 7,700 ounces of gold until the third quarter of 2013.

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(1)	CSO amounts outstanding are composed of the principal portion of active CSO extensions of credit by an independent third-party lender, which are not included on the Company's balance sheet, net of the Company's estimated fair value of its liability under the letters of credit guaranteeing the extensions of credit.

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