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Diluted GAAP earnings per share for the second quarter of 2016, which include the impact of significant merger-related expenses, totaled $0.41. Excluding these non-recurring expenses, which totaled $0.10 per share, adjusted diluted earnings per share were $0.51 for the second quarter of 2016 which equaled adjusted diluted earnings per share of $0.51 in the prior year. Strong growth in local-currency operating income in Latin America was offset by an 18% decline in the average value of the Mexican peso, which reduced year-over-year comparable earnings by approximately $0.09 per share for the quarter. Anticipated decreases in net earnings from non-core jewelry scrapping and payday lending operations further reduced comparable earnings by an additional $0.02 per share. Adjusted diluted earnings per share is a non-GAAP measure and is defined and reconciled in the detailed reconciliation of non-GAAP financial measures provided elsewhere in this release.

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Year-to-date GAAP diluted earnings per share were $0.88. Excluding the non-recurring expenses related to the merger and other acquisitions, adjusted diluted earnings per share were $0.98 compared to $1.10 in the prior year. Comparative adjusted diluted earnings for the six months ended June 30, 2016 were impacted by $0.16 per share due to a 19% decline in the average value of the Mexican peso and approximately $0.07 per share due to decreases in earnings from non-core jewelry scrapping and payday lending operations.

•	Net income and adjusted EBITDA (earnings before interest, taxes, depreciation, amortization and certain non-recurring charges) for the trailing twelve months ended June 30, 2016 totaled $55.4 million and $130.1 million, respectively. Adjusted EBITDA is a non-GAAP measure and is defined and reconciled in the detailed reconciliation of non-GAAP financial measures provided elsewhere in this release.

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•	Consolidated core revenue from retail merchandise sales and pawn service fees increased 20% during the second quarter of 2016 compared to the second quarter of 2015. Core pawn revenues in Latin America grew 33% in the second quarter of 2016 and represented 59% of total core revenues. Core U.S. pawn revenues increased 4% for the quarter.

•	Retail merchandise sales in pawn stores increased by 21% for the second quarter of 2016 compared to the prior-year period, driven by sales increases of 31% in Latin America and 6% in the U.S.

•	Pawn fee revenue grew 20% in total compared to the prior-year period, with an increase of 37% in Latin America that was partially offset by a minimal 1% decrease in the U.S.

•	Consolidated same-store core revenue increased 5% for the second quarter, driven by impressive growth in Latin America of over 10%. While U.S. same-store core revenue decreased 1%, it represented the third straight quarter of sequential improvement in this metric.

•	Pawn loans outstanding at June 30, 2016 increased by 43% in Latin America and 17% overall as compared to a year ago, while loans decreased 4% in the U.S. Consolidated same-store pawn loans outstanding at quarter end increased 3%. Same-store pawn loans outstanding at quarter end increased 11% in Latin America compared to the prior-year period, while U.S. same-store pawn loans decreased 4%.

•	Consolidated retail merchandise sales margins improved slightly to 38.3% during the second quarter of 2016, compared to the prior-year period. Second quarter wholesale scrap jewelry margins remained consistent at 19% compared to the prior-year period.

•	The average monthly pawn loan portfolio yield was approximately 13.3% for the second quarter of 2016, which was consistent with the prior-year.

•	The combined annualized yield on total pawn assets (pawn fees plus merchandise sales gross profit), as a percentage of pawn assets (pawn receivables plus inventories), was 176% in the second quarter of 2016, in line with 180% in the prior-year period.

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Total inventories at June 30, 2016 increased 13% compared to June 30, 2015, which is in line with store growth and acquisitions. Annualized inventory turns for the trailing twelve months ended June 30, 2016 were 3.4 times per year. Aged inventories (items held for over a year) accounted for approximately 4% of total inventories at June 30, 2016, which is a sequential improvement over aged inventories of 5% at March 31, 2016.

•	During the quarter, the Company opened 10 new locations in Mexico and one in Guatemala. Year-to-date, a total of 211 stores were added as the Company opened 31 stores and acquired 179 stores in Latin America, and one store in the U.S.

•	For the twelve months ended June 30, 2016, the Company has added 256 pawn stores in Latin America and added five pawn stores in the U.S. The year-over-year store count has increased 36% in Latin America and 22% overall.

•	As of June 30, 2016, the Company operated 1,271 stores, of which 95% or 1,212 were pawn stores. There were 947 stores in Latin America, of which 919 were pawn stores, and 324 stores in the U.S., of which 293 were pawn stores.

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During the quarter, the Company closed 10 consumer loan stores and two small format pawn stores (which primarily focused on consumer loans) located in Texas and plans to close at least seven additional U.S. consumer loan stores during the third quarter of 2016. By the end of the third quarter, the Company expects to be operating less than 25 consumer loan stores in the U.S., all located in Texas. The Company anticipates that this number will continue to decrease as the Company continues to de-emphasize this non-core product offering.

•	Pre-tax store operating margin was 24% for the trailing twelve months ended June 30, 2016, as compared to 25% in the prior-year period, primarily reflecting contraction in non-core payday lending and scrap jewelry sales.

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The adjusted EBITDA margin was 18% for the trailing twelve months ended June 30, 2016. Excluding the impact of currency, non-core payday lending and wholesale scrap jewelry operations, the adjusted EBITDA margin was consistent with the prior-year period. Adjusted EBITDA margin is a non-GAAP measure and is calculated in the detailed reconciliation of non-GAAP financial measures provided elsewhere in this release.

•	As of June 30, 2016, the Company had $46 million in cash on its balance sheet and $169.5 million of availability for future borrowings under its long-term revolving bank credit facilities. The average interest rate on the Company’s $50.5 million outstanding bank debt at quarter end was 3.00%.

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In anticipation of the Cash America merger, the Company entered into a $400 million unsecured revolving bank credit facility for the combined company, which will become effective upon the completion of the proposed transaction, subject to the satisfaction of customary closing conditions. The credit facility includes eight participating commercial lenders led by Wells Fargo. The credit facility will have a five year term from the closing date of the merger and will bear interest at either the prevailing London Interbank Offered Rate (LIBOR) plus a fixed spread of 2.5% or the prevailing prime or base rate plus a fixed spread of 1.5%.

•	The Company’s leverage ratio at June 30, 2016 (outstanding indebtedness divided by trailing twelve months adjusted EBITDA) was 1.9:1 and net debt, defined as funded debt less invested cash, was $217 million. The leverage ratio is a non-GAAP measure and is calculated in the detailed reconciliation of non-GAAP financial measures provided elsewhere in this release.

•	Cash provided by operating activities was $90 million for the trailing twelve months ended June 30, 2016, while free cash flow totaled $52 million. Free cash flow is a non-GAAP measure and is defined and reconciled in the detailed reconciliation of non-GAAP financial measures provided elsewhere in this release.

•	For the trailing twelve months ended June 30, 2016, the Company invested $43 million in acquisitions, $30 million in capital expenditures, $17 million in stock repurchases and $7 million in dividend payments, funded primarily with operating cash flows and a $28 million increase in net debt.

•	The Board of Directors declared a $0.125 per share third quarter cash dividend on common shares outstanding, which will be paid on August 24, 2016 to stockholders of record as of August 10, 2016.

•	The Board of Directors approved a plan to increase the annual dividend to $0.76 per share, or $0.19 per share quarterly, beginning in the fourth quarter, subject to the closing of the merger.

•	The 2016 outlook for adjusted earnings per share and store growth does not include any assumptions regarding earnings or store additions related to the announced merger with Cash America.

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The Company is raising the lower end of its guidance range by $0.10 per share and expects its fiscal full-year 2016 guidance for adjusted earnings, which excludes non-recurring merger transaction costs, to be in the range of $2.35 to $2.45 per diluted share. The previous guidance range provided on April 28th, 2016, was $2.25 to $2.45 per share. These revised estimates reflect the following assumptions:

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◦	An estimated foreign exchange rate of approximately 18.5 Mexican pesos / U.S. dollar for the balance of fiscal 2016.

◦	The estimate excludes the impact of non-recurring transaction expenses of $0.10 per share in the first half of 2016 and excludes any such transaction or restructuring expenses that will be incurred during the remainder of fiscal 2016, which are primarily expenses related to the pending merger with Cash America International, Inc.

•	Excluding the impact of the merger or additional acquisitions, the Company expects to add approximately 220 to 225 new stores in 2016.

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•	changes in foreign currency exchange rates and the U.S. dollar to the Mexican peso and Guatemalan quetzal exchange rates in particular;

•	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 the United States, Mexico, Guatemala and El Salvador), including administrative or legal interpretations thereto;

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

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

•	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;

•	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;

•	risks and uncertainties related to foreign operations in Mexico, Guatemala and El Salvador;

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

•	changes in banking, anti-money laundering or gun control regulations;

•	unforeseen litigation;

•	changes in tax rates or policies in the U.S., Mexico, Guatemala and El Salvador;

•	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;

•	future business decisions;

•	the risk that the required stockholder approvals to approve the proposed transaction with Cash America may not be obtained;

•	the risks that condition(s) to closing of the proposed transaction may not be satisfied;

•	the length of time necessary to consummate the proposed transaction;

•	the conditions to closing the credit facility may not be satisfied;

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•	the risk that the Company and Cash America businesses will not be integrated successfully;

•	the risk that the cost savings, synergies and growth from the proposed transaction may not be fully realized or may take longer to realize than expected;

•	the diversion of management time on transaction-related issues;

•	the risk that costs associated with the integration of the Company and Cash America are higher than anticipated; and

•	litigation risk related to the proposed transaction.

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(1)	Wholesale scrap jewelry revenue during the three months ended June 30, 2016 consisted primarily of gold sales, of which approximately 6,447 ounces were sold at an average price of $1,268 per ounce, compared to approximately 5,600 ounces of gold sold at $1,203 per ounce in the prior-year period.

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(1)	Wholesale scrap jewelry revenue during the six months ended June 30, 2016 consisted primarily of gold, of which approximately 11,687 ounces sold at an average selling price of $1,237 per ounce, compared to approximately 12,200 ounces of gold sold at $1,201 per ounce in the prior-year period.

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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.

(2)

Combined customer loans is a non-GAAP measure as it includes CSO credit extensions held by an independent third-party not included on the Company’s balance sheet. The Company believes this non-GAAP measure provides 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 Company also believes the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on the Company’s balance sheet since both credit services fees revenue and the corresponding loss provision 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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(1)	At June 30, 2016, 135 of the U.S. pawn stores, which are primarily located in Texas, also offered consumer loans or credit services products, while 49 Mexico pawn stores offer consumer loan products.

(2)	The Company’s U.S. free-standing consumer loan locations offer a credit services product and are all located in Texas. The Mexico locations offer small, short-term consumer loans.

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(1)

For the three months ended June 30, 2015, excludes $140,000 of depreciation and amortization, for the six months and trailing twelve months ended June 30, 2015, excludes $229,000 of depreciation and amortization and for the trailing twelve months ended June 30, 2016, excludes $264,000 of depreciation and amortization, which are included in the non-recurring restructuring expenses related to U.S. consumer loan operations.

(2)	Excludes deferred debt issuance costs of $3,797,000 and $4,436,000 as of June 30, 2016 and 2015, respectively, which are included as a direct deduction from the carrying amount of the senior unsecured notes in the condensed consolidated balance sheets.

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