Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 16, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | WESTERN CAPITAL RESOURCES, INC. | |
Entity Central Index Key | 1,363,958 | |
Document Type | 10-Q | |
Trading Symbol | WCRS | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity a Well-known Seasoned Issuer | No | |
Entity a Voluntary Filer | No | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,497,534 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash | $ 6,306,070 | $ 7,847,669 |
Loans receivable (less allowance for losses of $955,000 and $1,177,000, respectively) | 3,945,775 | 4,884,438 |
Accounts receivable (less allowance for losses of $137,000 and $272,000, respectively) | 3,452,444 | 1,963,192 |
Inventory | 8,531,043 | 7,617,850 |
Prepaid expenses and other | 2,394,513 | 2,589,749 |
TOTAL CURRENT ASSETS | 24,629,845 | 24,902,898 |
PROPERTY AND EQUIPMENT, net | 9,183,776 | 8,561,321 |
GOODWILL | 13,355,591 | 13,355,591 |
INTANGIBLE ASSETS, net | 7,877,628 | 8,018,616 |
OTHER | 404,580 | 783,907 |
TOTAL ASSETS | 55,451,420 | 55,622,333 |
CURRENT LIABILITIES | ||
Accounts payable | 4,386,505 | 4,577,118 |
Accrued expenses and other liabilities | 5,535,076 | 6,232,267 |
Income taxes payable | 475,473 | 1,135,031 |
Current portion long-term debt | 1,233,338 | 4,900,008 |
Current portion capital lease obligations | 79,256 | 23,860 |
Deferred revenue and other | 1,650,477 | 1,796,338 |
TOTAL CURRENT LIABILITIES | 13,360,125 | 18,664,622 |
LONG-TERM LIABILITIES | ||
Notes payable, net of current portion | 5,788,120 | 3,096,452 |
Capital lease obligations, net of current portion | 137,251 | 33,347 |
Deferred income taxes | 4,233,000 | 3,889,000 |
Other | 77,760 | 80,403 |
TOTAL LONG-TERM LIABILITIES | 10,236,131 | 7,099,202 |
TOTAL LIABILITIES | $ 23,596,256 | $ 25,763,824 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ||
WESTERN SHAREHOLDERS' EQUITY | ||
Common stock, no par value, 12,500,000 shares authorized, 9,497,534 issued and outstanding. | ||
Additional paid-in capital | $ 28,955,463 | $ 28,934,392 |
Retained earnings | 2,869,437 | 898,038 |
TOTAL WESTERN SHAREHOLDERS' EQUITY | 31,824,900 | 29,832,430 |
NONCONTROLLING INTERESTS | 30,264 | 26,079 |
TOTAL EQUITY | 31,855,164 | 29,858,509 |
TOTAL LIABILITIES AND EQUITY | $ 55,451,420 | $ 55,622,333 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Loans receivable, allowance (in dollars) | $ 955,000 | $ 1,177,000 |
Accounts receivable, allowance (in dollars) | $ 137,000 | $ 272,000 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized | 12,500,000 | 12,500,000 |
Common stock, issued | 9,497,534 | 9,497,534 |
Common stock, outstanding | 9,497,534 | 9,497,534 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
REVENUES | ||
Sales and associated fees | $ 20,015,542 | $ 7,505,748 |
Financing fees and interest | 2,484,220 | 2,585,394 |
Royalty and franchise fees, net | 2,794,756 | 2,705,157 |
Other revenue | 3,140,768 | 1,645,532 |
TOTAL REVENUES | 28,435,286 | 14,441,831 |
COST OF REVENUES | ||
Cost of sales | 10,356,860 | 4,508,255 |
Provisions for loans receivable losses | 302,872 | 326,210 |
Other | 553,414 | 195,678 |
Total Cost of Revenues | 11,213,146 | 5,030,143 |
GROSS PROFIT | 17,222,140 | 9,411,688 |
OPERATING EXPENSES | ||
Salaries, wages and benefits | 6,748,950 | 4,216,114 |
Occupancy | 1,973,805 | 1,307,229 |
Advertising, marketing and development | 1,951,009 | 256,495 |
Depreciation | 276,592 | 104,082 |
Amortization | 140,990 | 103,840 |
Other | 2,820,251 | 1,941,221 |
TOTAL OPERATING EXPENSES | 13,911,597 | 7,928,981 |
OPERATING INCOME | 3,310,543 | 1,482,707 |
OTHER INCOME (EXPENSES): | ||
Interest income | 1,052 | 1,354 |
Interest expense | (169,011) | (105,975) |
TOTAL OTHER INCOME (EXPENSES) | (167,959) | (104,621) |
INCOME BEFORE INCOME TAXES | 3,142,584 | 1,378,086 |
INCOME TAX EXPENSE | 1,167,000 | 539,650 |
NET INCOME | 1,975,584 | 838,436 |
Less net income attributable to noncontrolling interests | (4,185) | (2,377) |
NET INCOME ATTRIBUTABLE TO WESTERN COMMON SHAREHOLDERS | $ 1,971,399 | $ 836,059 |
EARNINGS PER SHARE ATTRIBUTABLE TO WESTERN COMMON SHAREHOLDERS | ||
Basic and diluted (in dollars per share) | $ 0.21 | $ 0.14 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||
Basic and diluted (in shares) | 9,497,534 | 5,997,588 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
OPERATING ACTIVITIES | ||
Net Income | $ 1,975,584 | $ 838,436 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 276,592 | 104,082 |
Amortization | 140,990 | $ 103,840 |
Share based compensation | 21,071 | |
Deferred income taxes | 344,000 | $ 101,000 |
Changes in operating assets and liabilities: | ||
Loans receivable | 938,663 | 1,227,529 |
Accounts receivable | (1,489,252) | (99,266) |
Inventory | (913,193) | 49,824 |
Prepaid expenses and other assets | 574,563 | (190,461) |
Accounts payable and accrued liabilities | (1,547,364) | (1,187,214) |
Deferred revenue and other current liabilities | (145,861) | 7,178 |
Accrued liabilities and other | (2,643) | 4,188 |
Net cash provided by operating activities | 173,150 | 959,136 |
INVESTING ACTIVITIES | ||
Purchases of property and equipment | (432,211) | (70,646) |
Acquisition of stores, net of cash acquired | (466,836) | (440,000) |
Net cash used by investing activities | (899,047) | (510,646) |
FINANCING ACTIVITIES | ||
Payments on notes payable - long-term, net | (975,002) | (1,375,000) |
Proceeds from (payments on) capital leases, net | 159,300 | (10,797) |
Net cash used by financing activities | (815,702) | (1,385,797) |
NET DECREASE IN CASH | (1,541,599) | (937,307) |
CASH | ||
Beginning of period | 7,847,669 | 4,273,350 |
End of period | 6,306,070 | 3,336,043 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 1,483,301 | 1,133,458 |
Interest paid | $ 166,131 | 114,523 |
Noncash investing and financing activities: | ||
Deposit applied to purchase of intangibles | $ 50,000 |
Basis of Presentation, Nature o
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies | 1. Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared according to the instructions to Form 10-Q and Section 210.8-03(b) of Regulation S-X of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the Condensed Consolidated Financial Statements and footnotes thereto included in our Form 10-K for the year ended December 31, 2015. The condensed consolidated balance sheet at December 31, 2015, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP. Nature of Business Western Capital Resources, Inc. (WCR) is a parent company owning operating subsidiaries, with percentage owned shown parenthetically, as summarized below Franchise o AlphaGraphics, Inc. (AGI) (99.2%) franchisor of 257 domestic and 26 international AlphaGraphics Business Centers which specialize in the planning, production and management of visual communications for businesses and individuals throughout the world. Cellular Retail o PQH Wireless, Inc. and subsidiaries (PQH) (100%) owns and operates 111 cellular retail stores as an exclusive dealer of the Cricket brand. Direct to Consumer o J & P Park Acquisitions, Inc. (JPPA) (100% Acquired July 1, 2015) an online and direct marketing distribution retailer of live plants, seeds, holiday gifts and garden accessories selling its products under Park Seed, Jackson & Perkins, and Wayside Gardens brand names as well as a wholesaler under the Park Wholesale brand. o Restorers Acquisition, Inc. (RAI) (100% Acquired July 1, 2015) an online and direct marketing distribution retailer of home improvement and restoration products operating under Van Dykes Restorers. o J & P Real Estate, LLC (JPRE) (100% Acquired July 1, 2015) owns real estate utilized as JPPAs distribution and warehouse facility and the corporate offices of JPPA and RAI. Consumer Finance o Wyoming Financial Lenders, Inc. (WFL) (100%) owns and operates payday stores 46 in eight states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming) providing sub-prime short-term uncollateralized non-recourse cash advance or payday loans typically ranging from $100 to $500 with a maturity of generally two to four weeks, sub-prime short-term uncollateralized non-recourse installment loans typically ranging from $300 to $800 with a maturity of six months, check cashing and other money services to individuals. o Express Pawn, Inc. (EPI) (100%) owns and operates retail three pawn stores in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of merchandise obtained from forfeited pawn loans or purchased from customers. References in these financial statement notes to Company or we refer to Western Capital Resources, Inc. and its subsidiaries. References to specific companies within our enterprise, such AGI, PQH, JPPA, RAI, JPRE, WFL or EPI are references only to those companies. Basis of Consolidation The consolidated financial statements include the accounts of the WCR, its wholly owned subsidiaries and other entities in which the Company owns a controlling financial interest. For financial interests in which the Company owns a controlling financial interest, the Company applies the provisions of ASC 810 applicable to reporting the equity and net income or loss attributable to noncontrolling interests. All significant intercompany balances and transactions of the Company have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant management estimates relate to the notes and loans receivable allowance, carrying value and impairment of long-lived goodwill and intangible assets, inventory valuation and obsolescence, estimated useful lives of property and equipment, gift certificate and customer credits liability and deferred taxes and tax uncertainties. Reclassifications Certain Statement of Income reclassifications have been made in the presentation of our prior financial statements and accompanying notes to conform to the presentation as of and for the three months ended March 31, 2016. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under US GAAP. This standard, including subsequent updates, is effective for annual and interim periods beginning after December 15, 2017. The Company is currently assessing the potential effects on our financial condition, results of operations and consolidated financial statements. In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17). The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company early adopted ASU 2015-17 during our first quarter of fiscal year 2016 on a retrospective basis. Accordingly, we reclassified the current deferred taxes to noncurrent on our December 31, 2015 Condensed Consolidated Balance Sheet, which decreased current deferred tax assets $0.56 million and decreased noncurrent deferred tax liabilities $0.56 million. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (ASU 2016-02). The standard requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted and the standard is to be applied using a modified retrospectively approach. The Company is currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements. No other accounting pronouncements issued or effective during the fiscal quarter have had or are expected to have a material impact on our condensed consolidated financial statements. |
Risks Inherent in the Operating
Risks Inherent in the Operating Environment | 3 Months Ended |
Mar. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Risks Inherent in the Operating Environment | 2. Risks Inherent in the Operating Environment Regulatory The Companys Consumer Finance segment activities are highly regulated under numerous local, state, and federal laws, regulations and rules, which are subject to change. New laws, regulations or rules could be enacted or issued, interpretations of existing laws, regulations or rules may change and enforcement action by regulatory agencies may intensify. Over the past several years, consumer advocacy groups and certain media reports have advocated governmental and regulatory action to prohibit or severely restrict sub-prime lending activities of the kind conducted by the Company. The federal Consumer Financial Protection Bureau has indicated that it will use its authority to further regulate the payday industry and has been actively assessing significant penalties or seeking settlement payments. Any adverse change in present local, state, and federal laws or regulations that govern or otherwise affect lending could result in the Consumer Finance segments curtailment or cessation of operations in certain or all jurisdictions or locations. Furthermore, any failure to comply with any applicable local, state or federal laws or regulations could result in fines, litigation, closure of one or more store locations or negative publicity. Any such change or failure would have a corresponding impact on the Companys and segments results of operations and financial condition, primarily through a decrease in revenues resulting from the cessation or curtailment of operations, decrease in operating income through increased legal expenditures or fines, and could also negatively affect the Companys general business prospects due to lost or decreased operating income or if negative publicity effects its ability to obtain additional financing as needed. In addition, the passage of federal or state laws and regulations or changes in interpretations of them could, at any point, essentially prohibit the Consumer Finance segment from conducting its lending business in its current form. Any such legal or regulatory change would certainly have a material and adverse effect on the Company, its operating results, financial condition and prospects, and perhaps even the viability of the Consumer Finance segment. |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans Receivable | 3. Loans Receivable At March 31, 2016 and December 31, 2015, the Companys outstanding loans receivable aging was as follows: March 31, 2016 Payday Installment Pawn & Total Current $ 3,295,567 $ 205,095 $ 253,950 $ 3,754,612 1-30 221,140 39,821 - 260,961 31-60 162,501 24,866 - 187,367 61-90 191,760 16,292 - 208,052 91-120 162,082 5,769 - 167,851 121-150 165,775 3,333 - 169,108 151-180 151,528 1,296 - 152,824 4,350,353 296,472 253,950 4,900,775 Less Allowance (889,000 ) (66,000 ) - (955,000 ) $ 3,461,353 $ 230,472 $ 253,950 $ 3,945,775 December 31, 2015 Payday Installment Pawn & Total Current $ 4,065,706 $ 291,947 $ 286,514 $ 4,644,167 1-30 332,217 43,179 - 375,396 31-60 263,486 24,233 - 287,719 61-90 199,526 16,293 - 215,819 91-120 196,123 9,417 - 205,540 121-150 160,386 4,985 - 165,371 151-180 165,237 2,189 - 167,426 5,382,681 392,243 286,514 6,061,438 Less Allowance (1,081,000 ) (96,000 ) - (1,177,000 ) $ 4,301,681 $ 296,243 $ 286,514 $ 4,884,438 |
Loans Receivable Allowance
Loans Receivable Allowance | 3 Months Ended |
Mar. 31, 2016 | |
Provision for Loan and Lease Losses [Abstract] | |
Loans Receivable Allowance | 4. Loans Receivable Allowance As a result of the Companys collection efforts, it historically writes off approximately 42% of returned payday items. Based on days past the check return date, write-offs of payday returned items historically have tracked at the following approximate percentages: 1 to 30 days 42%; 31 to 60 days 64%; 61 to 90 days 83%; 91 to 120 days 88%; 121 to 150 days 91%; and 151 + days 93%. A rollforward of the Companys loans receivable allowance is as follows: Three Months Ended Year Ended Loans receivable allowance, beginning of period $ 1,177,000 $ 1,219,000 Provision for loan losses charged to expense 302,872 1,904,893 Charge-offs, net (524,872 ) (1,946,893 ) Loans receivable allowance, end of period $ 955,000 $ 1,177,000 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | 5. Accounts Receivable A breakdown of accounts receivables by segment as of March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 Franchise Cellular Direct to Total Accounts receivable $ 1,444,791 $ 106,208 $ 2,038,445 $ 3,589,444 Less allowance (100,000 ) - (37,000 ) (137,000 ) Net account receivable $ 1,344,791 $ 106,208 $ 2,001,445 $ 3,452,444 December 31, 2015 Franchise Cellular Direct to Total Accounts receivable $ 1,332,446 $ 148,346 $ 754,400 $ 2,235,192 Less allowance (183,000 ) - (89,000 ) (272,000 ) Net account receivable $ 1,149,446 $ 148,346 $ 665,400 $ 1,963,192 |
Deferred Revenue and Other Liab
Deferred Revenue and Other Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue and Other Liabilities | 6. Deferred Revenue and Other Liabilities Deferred revenue and other liabilities consist of the following: March 31, 2016 December 31, 2015 Deferred financing fees $ 203,445 $ 285,452 Deferred franchise development fees 350,634 264,000 Merchandise credits and gift card liability 939,069 1,127,470 Other 157,329 119,416 Total $ 1,650,477 $ 1,796,338 |
Notes Payable - Long Term
Notes Payable - Long Term | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable - Long Term | 7. Notes Payable Long Term March 31, 2016 December 31, 2015 Note payable (with a credit limit of $3,000,000) to River City Equity, Inc., a related party, with interest payable monthly at 12% due June 30, 2016 and upon certain events can be collateralized by substantially all assets of WCR, excluding any equity interest in AGI $ 3,000,000 $ 3,000,000 Subsidiary note payable to a financial institution with quarterly principal payments of $375,000 plus interest at prime rate plus 2.5%, secured by the AGIs assets, maturing March 2017 750,000 1,625,000 Subsidiary note pa yab le to a financial institution with monthly principal payment of $33,334 plus annual paydowns equal to JPREs net cash flow from operations due within 120 days of the calendar year end plus interest at LIBOR plus 3.5% (4% at March 31, 2016), secured by JPRE assets, maturing June 5, 2019 when remaining principal balance is due 3,271,458 3,371,460 Total 7,021,458 7,996,460 Less current maturities (see Note 12) (1,233,338 ) (4,900,008 ) $ 5,788,120 $ 3,096,452 Future minimum long-term principal payments are as follows, after giving effect of refinancing as further discussed in Note 12: Year Amount 1 $ 1,233,338 2 1,058,341 3 1,058,341 4 2,729,767 5 658,333 Thereafter 283,338 $ 7,021,458 |
Other Operating Expense
Other Operating Expense | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Operating Expense | 8. Other Operating Expense A breakout of other operating expense is as follows: For the Three Months Ended March 31, 2016 2015 Bank fees $ 438,034 $ 149,523 Collection costs 116,188 111,319 Conferences 265,405 210,645 Insurance 171,563 82,795 Management and advisory fees 221,025 149,502 Professional and consulting fees 595,210 406,032 Supplies 183,274 170,514 Other 829,552 660,891 $ 2,820,251 $ 1,941,221 |
Pro Forma Information
Pro Forma Information | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Pro Forma Information | 9. Pro Forma Information Effective June 1, 2015, PQH purchased with cash all outstanding membership interests in four separate limited liability companies (Green Communications, LLC, an Arizona LLC, Green Communications, LLC, an Oregon LLC, Green Communications, LLC, a Washington LLC and Go Green, LLC an Arizona LLC). Effective July 1, 2015, the Company acquired a 100% interest in the businesses of RAI, JPPA, and JPRE, by completing a merger and contribution transaction. As further discussed in Note 13 of the December 31, 2015 Notes to Consolidated Financial Statements, the results of the operations for the acquired business have been included in the consolidated financial statements since the dates of the acquisition. The following table presents the unaudited results of operations for the three-months ended March 31, 2016 and the unaudited pro forma results of operations for the three-months ended March 31, 2015 (in thousands, except for per share data) as if the acquisitions had been consummated at the beginning of 2015. The pro forma net income below excludes the expense of the transactions. The pro forma results of operations are prepared for comparative purposes only and do not necessarily reflect the results that would have occurred had the acquisition occurred at the beginning of the 2015 or the results which may occur in the future. Franchise Cellular Direct to Consumer Corporate Total Three Months Ended March 31, 2016 Revenue $ 3,612 $ 9,775 $ 12,064 $ 2,984 $ - $ 28,435 % of total revenue 12.7 % 34.4 % 42.4 % 10.5 % - % 100.0 % Net income $ 523 $ 371 $ 904 $ 312 $ (135 ) $ 1,975 Net income attributable to noncontrolling interests $ 4 $ - $ - $ - $ - $ 4 Net income attributable to WCR common shareholders $ 519 $ 371 $ 904 $ 312 $ (135 ) $ 1,971 Earnings per share attributable to WCR common shareholders basic and diluted $ 0.055 $ 0.039 $ 0.095 $ 0.033 $ (0.014 ) $ 0.208 Three Months Ended March 31, 2015 Pro forma revenue $ 3,196 $ 11,292 $ 13,451 $ 3,094 $ - $ 31,033 % of total pro forma revenue 10.3 % 36.4 % 43.3 % 10.0 % - % 100.0 % Pro forma net income $ 299 $ 392 $ 828 $ 286 $ (73 ) $ 1,732 Pro forma net income attributable to noncontrolling interests $ 2 $ - $ - $ - $ - $ 2 Pro forma net income attributable to WCR common shareholders $ 297 $ 392 $ 828 $ 286 $ (73 ) $ 1,730 Pro forma earnings per share attributable to WCR common shareholders basic and diluted $ 0.031 $ 0.041 $ 0.087 $ 0.031 $ (0.008 ) $ 0.182 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 10. Segment Information Segment information related to the three month period ended March 31, 2016 and 2015, is presented below: March 31, 2016 Franchise Cellular Direct to Consumer Corporate Total Revenue from external customers $ 3,612 $ 9,775 $ 12,064 $ 2,984 $ - $ 28,435 Net income (loss) $ 523 $ 371 $ 904 $ 312 $ (135 ) $ 1,975 Total segment assets $ 9,481 $ 14,746 $ 16,779 $ 13,747 $ 698 $ 55,451 March 31, 2015 Franchise Cellular Direct to Consumer Corporate Total Revenue from external customers $ 3,196 $ 8,152 $ - $ 3,094 $ - $ 14,442 Net income (loss) $ 299 $ 326 $ - $ 286 $ (73 ) $ 838 Total segment assets $ 9,909 $ 9,502 $ - $ 15,085 $ - $ 34,496 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Pursuant to the Companys numerous employment agreements, bonuses of approximately $356,000 and $182,000 were accrued for the three-months ended March 31, 2016 and 2015, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events Credit Facility On April 22, 2016, the Company entered into a Credit Agreement with a financial institution. The Credit Agreement provides the company with (i) a revolving credit facility in an aggregate amount of up to $3,000,000, having a maturity date of April 21, 2018, and (ii) an acquisition loan facility in an aggregate amount of up to $9,000,000, having a maturity date of April 21, 2018. Under the Credit Agreement, both the revolving credit facility and acquisition loan facility bear interest at a floating per annum rate equal to one-month LIBOR plus 3.50%, adjusted on a monthly basis. At closing, $3,500,000 was advanced under the acquisition loan replacing the $3,000,000 River City Equity debt and $500,000 of other term debt. Certain company subsidiaries are guarantors of the companys borrowings and obligations under the Credit Agreement. All borrowings under the Credit Agreement are secured by substantially all assets of the company and the guarantor subsidiaries. The Credit Agreement requires the company to meet certain financial tests, including a leverage ratio and a fixed charge coverage ratio, as defined in the Credit Agreement. Subject to certain exceptions, the Credit Agreement contains covenants limiting the companys ability to (or to permit the guarantor subsidiaries to) merge or consolidate with, or engage in a sale of substantially all assets to, any party, but the company or any guarantor subsidiary generally may nonetheless merge with another party if (i) the company or guarantor subsidiary is the entity surviving such merger, and (ii) immediately after giving effect to such merger, no default shall have occurred and be continuing under the Credit Agreement. Subject to certain exceptions, the Credit Agreement also contains covenants limiting the companys ability to (or to permit the guarantor subsidiaries to) create liens on assets, incur additional indebtedness, make certain types of investments, and pay dividends or make certain other types of restricted payments, but the company may nonetheless pay dividends to its shareholders if (a) there are no outstanding loans or unpaid interest under the revolving credit facility, and (b) no default shall have occurred and be continuing under the Credit Agreement. Reincorporation On January 20, 2016, our shareholders approved a plan to reincorporate Western Capital Resources, Inc. in Delaware at a special meeting of the shareholders called for that purpose. The reincorporation was completed May 11, 2016. |
Basis of Presentation, Nature18
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared according to the instructions to Form 10-Q and Section 210.8-03(b) of Regulation S-X of the Securities and Exchange Commission (SEC) and, therefore, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to the Condensed Consolidated Financial Statements and footnotes thereto included in our Form 10-K for the year ended December 31, 2015. The condensed consolidated balance sheet at December 31, 2015, has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP. |
Nature of Business | Nature of Business Western Capital Resources, Inc. (WCR) is a parent company owning operating subsidiaries, with percentage owned shown parenthetically, as summarized below Franchise o AlphaGraphics, Inc. (AGI) (99.2%) franchisor of 257 domestic and 26 international AlphaGraphics Business Centers which specialize in the planning, production and management of visual communications for businesses and individuals throughout the world. Cellular Retail o PQH Wireless, Inc. and subsidiaries (PQH) (100%) owns and operates 111 cellular retail stores as an exclusive dealer of the Cricket brand. Direct to Consumer o J & P Park Acquisitions, Inc. (JPPA) (100% Acquired July 1, 2015) an online and direct marketing distribution retailer of live plants, seeds, holiday gifts and garden accessories selling its products under Park Seed, Jackson & Perkins, and Wayside Gardens brand names as well as a wholesaler under the Park Wholesale brand. o Restorers Acquisition, Inc. (RAI) (100% Acquired July 1, 2015) an online and direct marketing distribution retailer of home improvement and restoration products operating under Van Dykes Restorers. o J & P Real Estate, LLC (JPRE) (100% Acquired July 1, 2015) owns real estate utilized as JPPAs distribution and warehouse facility and the corporate offices of JPPA and RAI. Consumer Finance o Wyoming Financial Lenders, Inc. (WFL) (100%) owns and operates payday stores 46 in eight states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Wisconsin and Wyoming) providing sub-prime short-term uncollateralized non-recourse cash advance or payday loans typically ranging from $100 to $500 with a maturity of generally two to four weeks, sub-prime short-term uncollateralized non-recourse installment loans typically ranging from $300 to $800 with a maturity of six months, check cashing and other money services to individuals. o Express Pawn, Inc. (EPI) (100%) owns and operates retail three pawn stores in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of merchandise obtained from forfeited pawn loans or purchased from customers. References in these financial statement notes to Company or we refer to Western Capital Resources, Inc. and its subsidiaries. References to specific companies within our enterprise, such AGI, PQH, JPPA, RAI, JPRE, WFL or EPI are references only to those companies. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the WCR, its wholly owned subsidiaries and other entities in which the Company owns a controlling financial interest. For financial interests in which the Company owns a controlling financial interest, the Company applies the provisions of ASC 810 applicable to reporting the equity and net income or loss attributable to noncontrolling interests. All significant intercompany balances and transactions of the Company have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that may affect certain reported amounts and disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant management estimates relate to the notes and loans receivable allowance, carrying value and impairment of long-lived goodwill and intangible assets, inventory valuation and obsolescence, estimated useful lives of property and equipment, gift certificate and customer credits liability and deferred taxes and tax uncertainties. |
Reclassifications | Reclassifications Certain Statement of Income reclassifications have been made in the presentation of our prior financial statements and accompanying notes to conform to the presentation as of and for the three months ended March 31, 2016. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under US GAAP. This standard, including subsequent updates, is effective for annual and interim periods beginning after December 15, 2017. The Company is currently assessing the potential effects on our financial condition, results of operations and consolidated financial statements. In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17). The standard requires that deferred tax assets and liabilities be classified as noncurrent on the balance sheet rather than being separated into current and noncurrent. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is permitted and the standard may be applied either retrospectively or on a prospective basis to all deferred tax assets and liabilities. The Company early adopted ASU 2015-17 during our first quarter of fiscal year 2016 on a retrospective basis. Accordingly, we reclassified the current deferred taxes to noncurrent on our December 31, 2015 Condensed Consolidated Balance Sheet, which decreased current deferred tax assets $0.56 million and decreased noncurrent deferred tax liabilities $0.56 million. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842) (ASU 2016-02). The standard requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted and the standard is to be applied using a modified retrospectively approach. The Company is currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements. No other accounting pronouncements issued or effective during the fiscal quarter have had or are expected to have a material impact on our condensed consolidated financial statements. |
Loans Receivable (Tables)
Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of outstanding loans receivable aging | At March 31, 2016 and December 31, 2015, the Companys outstanding loans receivable aging was as follows: March 31, 2016 Payday Installment Pawn & Total Current $ 3,295,567 $ 205,095 $ 253,950 $ 3,754,612 1-30 221,140 39,821 - 260,961 31-60 162,501 24,866 - 187,367 61-90 191,760 16,292 - 208,052 91-120 162,082 5,769 - 167,851 121-150 165,775 3,333 - 169,108 151-180 151,528 1,296 - 152,824 4,350,353 296,472 253,950 4,900,775 Less Allowance (889,000 ) (66,000 ) - (955,000 ) $ 3,461,353 $ 230,472 $ 253,950 $ 3,945,775 December 31, 2015 Payday Installment Pawn & Total Current $ 4,065,706 $ 291,947 $ 286,514 $ 4,644,167 1-30 332,217 43,179 - 375,396 31-60 263,486 24,233 - 287,719 61-90 199,526 16,293 - 215,819 91-120 196,123 9,417 - 205,540 121-150 160,386 4,985 - 165,371 151-180 165,237 2,189 - 167,426 5,382,681 392,243 286,514 6,061,438 Less Allowance (1,081,000 ) (96,000 ) - (1,177,000 ) $ 4,301,681 $ 296,243 $ 286,514 $ 4,884,438 |
Loans Receivable Allowance (Tab
Loans Receivable Allowance (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Provision for Loan and Lease Losses [Abstract] | |
Schedule of loans receivable allowance | A rollforward of the Companys loans receivable allowance is as follows: Three Months Ended Year Ended Loans receivable allowance, beginning of period $ 1,177,000 $ 1,219,000 Provision for loan losses charged to expense 302,872 1,904,893 Charge-offs, net (524,872 ) (1,946,893 ) Loans receivable allowance, end of period $ 955,000 $ 1,177,000 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Schedule of accounts receivables | A breakdown of accounts receivables by segment as of March 31, 2016 and December 31, 2015 are as follows: March 31, 2016 Franchise Cellular Direct to Total Accounts receivable $ 1,444,791 $ 106,208 $ 2,038,445 $ 3,589,444 Less allowance (100,000 ) - (37,000 ) (137,000 ) Net account receivable $ 1,344,791 $ 106,208 $ 2,001,445 $ 3,452,444 December 31, 2015 Franchise Cellular Direct to Total Accounts receivable $ 1,332,446 $ 148,346 $ 754,400 $ 2,235,192 Less allowance (183,000 ) - (89,000 ) (272,000 ) Net account receivable $ 1,149,446 $ 148,346 $ 665,400 $ 1,963,192 |
Deferred Revenue and Other Li22
Deferred Revenue and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Schedule of deferred revenue and other liabilities | Deferred revenue and other liabilities consist of the following: March 31, 2016 December 31, 2015 Deferred financing fees $ 203,445 $ 285,452 Deferred franchise development fees 350,634 264,000 Merchandise credits and gift card liability 939,069 1,127,470 Other 157,329 119,416 Total $ 1,650,477 $ 1,796,338 |
Notes Payable - Long Term (Tabl
Notes Payable - Long Term (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | March 31, 2016 December 31, 2015 Note payable (with a credit limit of $3,000,000) to River City Equity, Inc., a related party, with interest payable monthly at 12% due June 30, 2016 and upon certain events can be collateralized by substantially all assets of WCR, excluding any equity interest in AGI $ 3,000,000 $ 3,000,000 Subsidiary note payable to a financial institution with quarterly principal payments of $375,000 plus interest at prime rate plus 2.5%, secured by the AGIs assets, maturing March 2017 750,000 1,625,000 Subsidiary note pa yab le to a financial institution with monthly principal payment of $33,334 plus annual paydowns equal to JPREs net cash flow from operations due within 120 days of the calendar year end plus interest at LIBOR plus 3.5% (4% at March 31, 2016), secured by JPRE assets, maturing June 5, 2019 when remaining principal balance is due 3,271,458 3,371,460 Total 7,021,458 7,996,460 Less current maturities (see Note 12) (1,233,338 ) (4,900,008 ) $ 5,788,120 $ 3,096,452 |
Schedule of future minimum long-term principal payments | Future minimum long-term principal payments are as follows, after giving effect of refinancing as further discussed in Note 12: Year Amount 1 $ 1,233,338 2 1,058,341 3 1,058,341 4 2,729,767 5 658,333 Thereafter 283,338 $ 7,021,458 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of other expense | A breakout of other operating expense is as follows: For the Three Months Ended March 31, 2016 2015 Bank fees $ 438,034 $ 149,523 Collection costs 116,188 111,319 Conferences 265,405 210,645 Insurance 171,563 82,795 Management and advisory fees 221,025 149,502 Professional and consulting fees 595,210 406,032 Supplies 183,274 170,514 Other 829,552 660,891 $ 2,820,251 $ 1,941,221 |
Pro Forma Information (Tables)
Pro Forma Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of business acquisition, pro forma | The pro forma results of operations are prepared for comparative purposes only and do not necessarily reflect the results that would have occurred had the acquisition occurred at the beginning of the 2015 or the results which may occur in the future. Franchise Cellular Direct to Consumer Corporate Total Three Months Ended March 31, 2016 Revenue $ 3,612 $ 9,775 $ 12,064 $ 2,984 $ - $ 28,435 % of total revenue 12.7 % 34.4 % 42.4 % 10.5 % - % 100.0 % Net income $ 523 $ 371 $ 904 $ 312 $ (135 ) $ 1,975 Net income attributable to noncontrolling interests $ 4 $ - $ - $ - $ - $ 4 Net income attributable to WCR common shareholders $ 519 $ 371 $ 904 $ 312 $ (135 ) $ 1,971 Earnings per share attributable to WCR common shareholders basic and diluted $ 0.055 $ 0.039 $ 0.095 $ 0.033 $ (0.014 ) $ 0.208 Three Months Ended March 31, 2015 Pro forma revenue $ 3,196 $ 11,292 $ 13,451 $ 3,094 $ - $ 31,033 % of total pro forma revenue 10.3 % 36.4 % 43.3 % 10.0 % - % 100.0 % Pro forma net income $ 299 $ 392 $ 828 $ 286 $ (73 ) $ 1,732 Pro forma net income attributable to noncontrolling interests $ 2 $ - $ - $ - $ - $ 2 Pro forma net income attributable to WCR common shareholders $ 297 $ 392 $ 828 $ 286 $ (73 ) $ 1,730 Pro forma earnings per share attributable to WCR common shareholders basic and diluted $ 0.031 $ 0.041 $ 0.087 $ 0.031 $ (0.008 ) $ 0.182 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information related to the three month period ended March 31, 2016 and 2015, is presented below: March 31, 2016 Franchise Cellular Direct to Consumer Corporate Total Revenue from external customers $ 3,612 $ 9,775 $ 12,064 $ 2,984 $ - $ 28,435 Net income (loss) $ 523 $ 371 $ 904 $ 312 $ (135 ) $ 1,975 Total segment assets $ 9,481 $ 14,746 $ 16,779 $ 13,747 $ 698 $ 55,451 March 31, 2015 Franchise Cellular Direct to Consumer Corporate Total Revenue from external customers $ 3,196 $ 8,152 $ - $ 3,094 $ - $ 14,442 Net income (loss) $ 299 $ 326 $ - $ 286 $ (73 ) $ 838 Total segment assets $ 9,909 $ 9,502 $ - $ 15,085 $ - $ 34,496 |
Basis of Presentation, Nature27
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended |
Mar. 31, 2016USD ($)Number | |
Accounting Standards Update 2015-17 [Member] | |
Decrease in current deferred tax assets | $ | $ 560,000 |
Decrease in noncurrent deferred tax liabilities | $ | $ 560,000 |
Franchising [Member] | Alpha Graphics, Inc. [Member] | |
Number of domestic business centers | Number | 257 |
Number of international business centers | Number | 26 |
Percentage of equity method investment | 99.20% |
Cellular Retail [Member] | PQH Wireless, Inc. [Member] | |
Number of stores | Number | 111 |
Percentage of equity method investment | 100.00% |
Direct to Consumer [Member] | JPPA [Member] | |
Percentage of equity method investment | 100.00% |
Business acquisition, effective date of acquisition | Jul. 1, 2015 |
Direct to Consumer [Member] | RAI [Member] | |
Percentage of equity method investment | 100.00% |
Business acquisition, effective date of acquisition | Jul. 1, 2015 |
Direct to Consumer [Member] | JPRE [Member] | |
Percentage of equity method investment | 100.00% |
Business acquisition, effective date of acquisition | Jul. 1, 2015 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | |
Number of stores | Number | 46 |
Percentage of equity method investment | 100.00% |
Number of states in which entity operates | Number | 8 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | Minimum [Member] | Payday [Member] | |
Non-recourse debt | $ | $ 100 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | Minimum [Member] | Installment [Member] | |
Non-recourse debt | $ | 300 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | Maximum [Member] | Payday [Member] | |
Non-recourse debt | $ | 500 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | Maximum [Member] | Installment [Member] | |
Non-recourse debt | $ | $ 800 |
Consumer Finance [Member] | Express Pawn, Inc. [Member] | |
Number of stores | Number | 3 |
Percentage of equity method investment | 100.00% |
Loans Receivable (Details)
Loans Receivable (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | $ 4,900,775 | $ 6,061,438 |
Less Allowance | (955,000) | (1,177,000) |
Notes, Loans and Financing Receivable, Net, current | 3,945,775 | 4,884,438 |
Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 3,754,612 | 4,644,167 |
1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 260,961 | 375,396 |
31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 187,367 | 287,719 |
61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 208,052 | 215,819 |
91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 167,851 | 205,540 |
121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 169,108 | 165,371 |
151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 152,824 | 167,426 |
Payday [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 4,350,353 | 5,382,681 |
Less Allowance | (889,000) | (1,081,000) |
Notes, Loans and Financing Receivable, Net, current | 3,461,353 | 4,301,681 |
Payday [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 3,295,567 | 4,065,706 |
Payday [Member] | 1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 221,140 | 332,217 |
Payday [Member] | 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 162,501 | 263,486 |
Payday [Member] | 61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 191,760 | 199,526 |
Payday [Member] | 91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 162,082 | 196,123 |
Payday [Member] | 121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 165,775 | 160,386 |
Payday [Member] | 151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 151,528 | 165,237 |
Installment Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 296,472 | 392,243 |
Less Allowance | (66,000) | (96,000) |
Notes, Loans and Financing Receivable, Net, current | 230,472 | 296,243 |
Installment Loans [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 205,095 | 291,947 |
Installment Loans [Member] | 1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 39,821 | 43,179 |
Installment Loans [Member] | 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 24,866 | 24,233 |
Installment Loans [Member] | 61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 16,292 | 16,293 |
Installment Loans [Member] | 91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 5,769 | 9,417 |
Installment Loans [Member] | 121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 3,333 | 4,985 |
Installment Loans [Member] | 151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 1,296 | 2,189 |
Pawn Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | $ 253,950 | $ 286,514 |
Less Allowance | ||
Notes, Loans and Financing Receivable, Net, current | $ 253,950 | $ 286,514 |
Pawn Title [Member] | Current [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | $ 253,950 | $ 286,514 |
Pawn Title [Member] | 1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | ||
Pawn Title [Member] | 151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current |
Loans Receivable Allowance (Det
Loans Receivable Allowance (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Loans receivable allowance, beginning of period | $ 1,177,000 | $ 1,219,000 |
Provision for loan losses charged to expense | 302,872 | 1,904,893 |
Charge-offs, net | (524,872) | (1,946,893) |
Loans receivable allowance, end of period | $ 955,000 | $ 1,177,000 |
Loans Receivable Allowance (D30
Loans Receivable Allowance (Details Narrative) | Mar. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 42.00% |
1 To 30 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 42.00% |
31 to 60 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 64.00% |
61 To 90 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 83.00% |
91 To 120 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 88.00% |
121 To 150 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 91.00% |
151 To 180 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 93.00% |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts receivable | $ 3,589,444 | $ 2,235,192 |
Less allowance | (137,000) | (272,000) |
Net account receivable | 3,452,444 | 1,963,192 |
Franchise [Member] | ||
Accounts receivable | 1,444,791 | 1,332,446 |
Less allowance | (100,000) | (183,000) |
Net account receivable | 1,344,791 | 1,149,446 |
Cellular Retail [Member] | ||
Accounts receivable | $ 106,208 | $ 148,346 |
Less allowance | ||
Net account receivable | $ 106,208 | $ 148,346 |
Direct to Consumer [Member] | ||
Accounts receivable | 2,038,445 | 754,400 |
Less allowance | (37,000) | (89,000) |
Net account receivable | $ 2,001,445 | $ 665,400 |
Deferred Revenue and Other Li32
Deferred Revenue and Other Liabilities (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Deferred Revenue Disclosure [Abstract] | ||
Deferred financing fees | $ 203,445 | $ 285,452 |
Deferred franchise development fees | 350,634 | 264,000 |
Merchandise credits and gift card liability | 939,069 | 1,127,470 |
Other | 157,329 | 119,416 |
Total | $ 1,650,477 | $ 1,796,338 |
Notes Payable - Long Term (Deta
Notes Payable - Long Term (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total | $ 7,021,458 | $ 7,996,460 |
Less current maturities | (1,233,338) | (4,900,008) |
Notes payable, noncurrent | 5,788,120 | 3,096,452 |
Note Payable to River City Equity [Member] | ||
Debt Instrument [Line Items] | ||
Total | 3,000,000 | 3,000,000 |
Note Payable to Financial Institution [Member] | ||
Debt Instrument [Line Items] | ||
Total | 750,000 | 1,625,000 |
Note Payable to Financial Institution Two [Member] | ||
Debt Instrument [Line Items] | ||
Total | $ 3,271,458 | $ 3,371,460 |
Notes Payable - Long Term (De34
Notes Payable - Long Term (Details 1) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Year 1 | $ 1,233,338 | |
Year 2 | 1,058,341 | |
Year 3 | 1,058,341 | |
Year 4 | 2,729,767 | |
Year 5 | 658,333 | |
Thereafter | 283,338 | |
Long-term debt | $ 7,021,458 | $ 7,996,460 |
Notes Payable - Long Term (De35
Notes Payable - Long Term (Details Narrative) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Note Payable to River City Equity [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Jun. 30, 2016 |
Stated interest rate | 12.00% |
Maximum borrowing capacity | $ 3,000,000 |
Note Payable to Financial Institution [Member] | |
Debt Instrument [Line Items] | |
Principal periodic payment | $ 375,000 |
Description of maturity date | March 2,017 |
Note Payable to Financial Institution [Member] | Addition to prime rate [Member] | |
Debt Instrument [Line Items] | |
Stated interest rate | 2.50% |
Note Payable to Financial Institution Two [Member] | |
Debt Instrument [Line Items] | |
Maturity date | Jun. 5, 2019 |
Principal periodic payment | $ 33,334 |
Stated interest rate | 4.00% |
Note Payable to Financial Institution Two [Member] | Addition to LIBOR Rate [Member] | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.50% |
Other Operating Expense (Detail
Other Operating Expense (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income and Expenses [Abstract] | ||
Bank fees | $ 438,034 | $ 149,523 |
Collection costs | 116,188 | 111,319 |
Conference | 265,405 | 210,645 |
Insurance | 171,563 | 82,795 |
Management and advisory fees | 221,025 | 149,502 |
Professional and consulting fees | 595,210 | 406,032 |
Supplies | 183,274 | 170,514 |
Other | 829,552 | 660,891 |
Total other expenses | $ 2,820,251 | $ 1,941,221 |
Pro Forma Information (Details)
Pro Forma Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue | $ 28,435 | $ 31,033 |
% of total revenue | 100.00% | 100.00% |
Net income | $ 1,975 | $ 1,732 |
Net income attributable to noncontrolling interests | 4 | 2 |
Net income attributable to WCR common shareholders | $ 1,971 | $ 1,730 |
Earnings per share attributable to WCR common shareholders - basic and diluted | $ 0.208 | $ 0.182 |
Franchise [Member] | ||
Revenue | $ 3,612 | $ 3,196 |
% of total revenue | 12.70% | 10.30% |
Net income | $ 523 | $ 299 |
Net income attributable to noncontrolling interests | 4 | 2 |
Net income attributable to WCR common shareholders | $ 519 | $ 297 |
Earnings per share attributable to WCR common shareholders - basic and diluted | $ 0.055 | $ 0.031 |
Cellular Retail [Member] | ||
Revenue | $ 9,775 | $ 11,292 |
% of total revenue | 34.40% | 36.40% |
Net income | $ 371 | $ 392 |
Net income attributable to noncontrolling interests | ||
Net income attributable to WCR common shareholders | $ 371 | $ 392 |
Earnings per share attributable to WCR common shareholders - basic and diluted | $ 0.039 | $ 0.041 |
Direct to Consumer [Member] | ||
Revenue | $ 12,064 | $ 13,451 |
% of total revenue | 42.40% | 43.30% |
Net income | $ 904 | $ 828 |
Net income attributable to noncontrolling interests | ||
Net income attributable to WCR common shareholders | $ 904 | $ 828 |
Earnings per share attributable to WCR common shareholders - basic and diluted | $ 0.095 | $ 0.087 |
Consumer Finance [Member] | ||
Revenue | $ 2,984 | $ 3,094 |
% of total revenue | 10.50% | 10.00% |
Net income | $ 312 | $ 286 |
Net income attributable to noncontrolling interests | ||
Net income attributable to WCR common shareholders | $ 312 | $ 286 |
Earnings per share attributable to WCR common shareholders - basic and diluted | $ 0.033 | $ 0.031 |
Corporate [Member] | ||
Revenue | ||
% of total revenue | ||
Net income | $ (135) | $ (73) |
Net income attributable to noncontrolling interests | ||
Net income attributable to WCR common shareholders | $ (135) | $ (73) |
Earnings per share attributable to WCR common shareholders - basic and diluted | $ (0.014) | $ (0.008) |
Pro Forma Information (Details
Pro Forma Information (Details Narrative) | Jul. 02, 2015 |
JPPA, RAI and JPRE Transaction [Member] | Common Stock [Member] | |
Percent of voting rights issued as percent of post acquisition voting rights | 100.00% |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Revenues from external customers | $ 28,435,286 | $ 14,441,831 | |
Net income (loss) | 1,975,584 | 838,436 | |
Total segment assets | 55,451,420 | 34,496,000 | $ 55,622,333 |
Franchise [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 3,612,000 | 3,196,000 | |
Net income (loss) | 523,000 | 299,000 | |
Total segment assets | 9,481,000 | 9,909,000 | |
Cellular Retail [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 9,775,000 | 8,152,000 | |
Net income (loss) | 371,000 | 326,000 | |
Total segment assets | 14,746,000 | $ 9,502,000 | |
Direct to Consumer [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 12,064,000 | ||
Net income (loss) | 904,000 | ||
Total segment assets | 16,779,000 | ||
Consumer Finance [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | 2,984,000 | $ 3,094,000 | |
Net income (loss) | 312,000 | 286,000 | |
Total segment assets | $ 13,747,000 | $ 15,085,000 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues from external customers | |||
Net income (loss) | $ (135,000) | $ (73,000) | |
Total segment assets | $ 698,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Employment Agreement [Member] | ||
Bonus arrangement current | $ 356,000 | $ 182,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Apr. 22, 2016 | Mar. 31, 2016 |
Note Payable to River City Equity [Member] | ||
Maximum borrowing capacity | $ 3,000,000 | |
Maturity date | Jun. 30, 2016 | |
Subsequent Event [Member] | Credit Agreement [Member] | ||
Description of interest rate terms | Interest at a floating per annum rate equal to one-month LIBOR plus 3.50%, adjusted on a monthly basis. | |
Subsequent Event [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | ||
Maximum borrowing capacity | $ 3,000,000 | |
Maturity date | Apr. 21, 2018 | |
Subsequent Event [Member] | Credit Agreement [Member] | Acqusition Loan Facility [Member] | ||
Maximum borrowing capacity | $ 9,000,000 | |
Maturity date | Apr. 21, 2018 | |
Advance from credit facility | $ 3,500,000 | |
Subsequent Event [Member] | Credit Agreement [Member] | Acqusition Loan Facility [Member] | Note Payable to River City Equity [Member] | ||
Repayment of debt | 3,000,000 | |
Subsequent Event [Member] | Credit Agreement [Member] | Acqusition Loan Facility [Member] | Other Term Debt [Member] | ||
Repayment of debt | $ 500,000 |