Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 14, 2015 | |
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 | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,497,588 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash | $ 3,184,828 | $ 4,273,350 |
Loans receivable (less allowance for losses of $1,060,000 and $1,219,000, respectively) | 4,840,242 | 5,331,266 |
Accounts receivable (less allowance for losses of $178,000 and $59,405, respectively) | 875,988 | 1,135,127 |
Inventory | 2,910,008 | 2,340,824 |
Prepaid expenses and other | 1,534,103 | 1,435,918 |
Deferred income taxes | 643,000 | 644,000 |
TOTAL CURRENT ASSETS | 13,988,169 | 15,160,485 |
PROPERTY AND EQUIPMENT, net | 1,946,674 | 1,197,710 |
GOODWILL | 13,757,368 | 12,956,868 |
INTANGIBLE ASSETS, net | 8,146,443 | 7,248,793 |
OTHER | 447,156 | 198,408 |
TOTAL ASSETS | 38,285,810 | 36,762,264 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 6,460,265 | 6,025,920 |
Income taxes payable | 209,003 | 755,615 |
Current portion notes payable | 4,500,000 | 3,500,000 |
Current portion capital lease obligations | 32,225 | 42,240 |
Deferred revenue and other | 619,843 | 638,068 |
TOTAL CURRENT LIABILITIES | 11,821,336 | 10,961,843 |
LONG-TERM LIABILITIES | ||
Notes payable, net of current portion | 875,000 | 1,625,000 |
Capital lease obligations, net of current portion | 19,768 | 31,481 |
Deferred income taxes | 4,059,000 | 3,939,000 |
Other | 106,120 | 114,514 |
TOTAL LONG-TERM LIABILITIES | 5,059,888 | 5,709,995 |
TOTAL LIABILITIES | $ 16,881,224 | $ 16,671,838 |
COMMITMENTS AND CONTINGENCIES (Note 15) | ||
WESTERN SHAREHOLDERS' EQUITY | ||
Common stock, no par value, 12,500,000 shares authorized, 5,997,588 issued and outstanding. | ||
Additional paid-in capital | $ 22,750,062 | $ 22,703,745 |
Accumulated deficit | (1,359,836) | (2,621,692) |
TOTAL WESTERN SHAREHOLDERS' EQUITY | 21,390,226 | 20,082,053 |
NONCONTROLLING INTERESTS | 14,360 | 8,373 |
TOTAL EQUITY | 21,404,586 | 20,090,426 |
TOTAL LIABILITIES AND EQUITY | $ 38,285,810 | $ 36,762,264 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) None in scaling factor is -9223372036854775296 | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Loans receivable, allowance (in dollars) | $ 1,060,000 | $ 1,219,000 |
Accounts receivable, allowance (in dollars) | $ 178,000 | $ 59,405 |
Common Stock,no par value | ||
Common stock, shares authorized | 12,500,000 | 12,500,000 |
Common stock, shares issued | 5,997,588 | 5,997,588 |
Common stock, shares outstanding | 5,997,588 | 5,997,588 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
REVENUES | ||||
Retail sales and associated fees | $ 6,129,520 | $ 4,092,586 | $ 13,635,268 | $ 9,970,378 |
Financing fees and interest | 2,556,202 | $ 2,597,584 | 5,141,596 | $ 5,309,394 |
Royalty and franchise fees, net | 2,454,752 | 5,079,809 | ||
Other revenue | 1,735,579 | $ 941,223 | 3,381,111 | $ 1,972,785 |
TOTAL REVENUES | 12,876,053 | 7,631,393 | 27,237,784 | 17,252,557 |
COST OF REVENUES | ||||
Cost of goods sold | 3,496,283 | 2,283,470 | 8,004,538 | 5,859,297 |
Provisions for loans receivable losses | 452,258 | $ 416,704 | 778,468 | $ 753,568 |
Other | 256,662 | 529,840 | ||
Total Cost of Revenues | 4,205,203 | $ 2,700,174 | 9,312,846 | $ 6,612,865 |
GROSS PROFIT | 8,670,850 | 4,931,219 | 17,924,938 | 10,639,692 |
OPERATING EXPENSES | ||||
Salaries, wages and benefits | 4,281,389 | 2,438,108 | 8,497,503 | 4,995,879 |
Occupancy | 1,406,083 | 1,138,722 | 2,713,312 | 2,287,281 |
Advertising and development | 191,832 | 82,134 | 370,827 | 169,667 |
Depreciation | 106,610 | 84,932 | 210,692 | 171,494 |
Amortization | 113,510 | 29,831 | 217,350 | 54,589 |
Other | 1,612,593 | 972,894 | 3,473,710 | 1,919,177 |
OPERATING EXPENSES | 7,712,017 | 4,746,621 | 15,483,394 | 9,598,087 |
OPERATING INCOME | 958,833 | $ 184,598 | 2,441,544 | $ 1,041,605 |
OTHER INCOME (EXPENSES): | ||||
Interest income | 716 | 2,070 | ||
Interest expense | (97,276) | $ (51,156) | (203,251) | $ (131,330) |
Other Income (Expenses) | (96,560) | (51,156) | (201,181) | (131,330) |
INCOME BEFORE INCOME TAXES | 862,273 | 133,442 | 2,240,363 | 910,275 |
INCOME TAX EXPENSE | 432,870 | 51,000 | 972,520 | 339,000 |
NET INCOME | 429,403 | $ 82,442 | 1,267,843 | $ 571,275 |
Less net income attributable to noncontrolling interests | (3,610) | (5,987) | ||
NET INCOME ATTRIBUTABLE TO WESTERN SHAREHOLDERS | $ 425,793 | $ 82,442 | $ 1,261,856 | $ 571,275 |
EARNINGS PER SHARE ATTRIBUTABLE TO WESTERN COMMON SHAREHOLDERS | ||||
Basic and diluted (in dollars per share) | $ 0.07 | $ 0.03 | $ 0.21 | $ 0.19 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||
Basic and diluted (in shares) | 5,997,588 | 3,010,996 | 5,997,588 | 3,011,002 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net Income | $ 1,267,843 | $ 571,275 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 210,692 | 171,494 |
Amortization | 217,350 | 54,589 |
Deferred income taxes | 121,000 | $ 231,000 |
Stock based compensation | 46,317 | |
Changes in operating assets and liabilities: | ||
Loans receivable | 491,024 | $ 583,873 |
Accounts receivable | 259,139 | |
Inventory | (569,184) | $ (142,513) |
Prepaid expenses and other assets | 77,067 | 363,252 |
Accounts payable and accrued liabilities | (900,339) | $ (46,001) |
Deferred revenue and other current liabilities | (18,225) | |
Accrued liabilities and other | (8,394) | $ (22,852) |
Net cash provided by operating activities | 1,194,290 | 1,764,117 |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (291,656) | $ (418,189) |
Acquisition of stores | (2,608,500) | |
Cash acquired through acquisition | 389,072 | |
Net cash used by investing activities | (2,511,084) | $ (418,189) |
FINANCING ACTIVITIES | ||
Advances (payments) on notes payable – long-term, net | $ 250,000 | (750,000) |
Common stock redemption | $ (388) | |
Payments on capital leases | $ (21,728) | |
Net cash provided (used) by financing activities | 228,272 | $ (750,388) |
NET INCREASE (DECREASE) IN CASH | (1,088,522) | 595,540 |
CASH | ||
Beginning of period | 4,273,350 | 1,983,835 |
End of period | 3,184,828 | 2,579,375 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Income taxes paid | 1,408,494 | 13,888 |
Interest paid | 194,703 | $ 141,735 |
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 | 6 Months Ended |
Jun. 30, 2015 | |
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- and six-month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in our Form 10-K for the year ended December 31, 2014. The condensed consolidated balance sheet at December 31, 2014, 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 References in these financial statements notes to Company or we refer to Western Capital Resources, Inc. and its subsidiaries. References to specific companies within our enterprise, such as PQH, WFL, EPI or AGI, are references only to those companies. Western Capital Resources, Inc. (WCR) is a holding company owning operating subsidiaries, with the percentage of each operating subsidiary owned shown parenthetically, as summarized below. · Franchise ○ AlphaGraphics, Inc. (AGI) (99.2% acquired October 1, 2014) franchisor of 250 domestic and 26 international AlphaGraphics Business Centers specializing in the planning, production and management of visual communications for businesses and individuals throughout the world. · Cellular Retail ○ PQH Wireless, Inc. (PQH) (100%) owns and operates cellular retail stores (110 as of June 30, 2015) as an exclusive dealer of the Cricket brand in 15 statesArizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas, Washington and Wisconsin. · Consumer Finance ○ Wyoming Financial Lenders, Inc. (WFL) (100%) owns and operates payday stores (50 as of June 30, 2015) in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, 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. ○ Express Pawn, Inc. (EPI) (100%) owns and operates retail pawn stores (three as of June 30, 2015) in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of merchandise obtained from forfeited pawn loans or purchased from customers. Basis of Consolidation The consolidated financial statements include the accounts of 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 guidance 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 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 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, and deferred taxes and tax uncertainties. 6 Net Income Per Common Share Basic net income per common share is computed by dividing the income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period, including stock options, using the treasury stock method. Options to purchase 65,000 shares granted under the 2015 Stock Incentive Plan effective February 6, 2015 (see Note 16) were outstanding at June 30, 2015. These options have a strike price in excess of the market price as of March 31, 2015, were antidilutive and therefore were not included in the computation of diluted earnings per share. Thus, there were no dilutive common shares as of June 30, 2015 and 2014. Segment Reporting The Company has grouped its operations into four segments Franchise segment, Cellular Retail segment, Consumer Finance segment and Corporate. The Franchise segment specializes in the planning, production and management of visual communications for businesses and individuals. The Cellular Retail segment is an authorized Cricket premier dealer selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. The Consumer Finance segment provides financial and ancillary services and also sells used merchandise at retail pawn stores. The Corporate segment consists of Company activities related to acquisitions and subsequent tone at the top management of acquired businesses. 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 and six months ended June 30, 2015. Recent Accounting Pronouncements No new accounting pronouncement issued or effective during the fiscal quarter has had or is expected to have a material impact on the condensed consolidated financial statements. |
Risks Inherent in the Operating
Risks Inherent in the Operating Environment | 6 Months Ended |
Jun. 30, 2015 | |
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 WFL and EPI. The federal Consumer Financial Protection Bureau has indicated that it will use its authority to further regulate the payday industry. 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 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 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 if the Company is unable to effectively replace such revenues in a timely and efficient manner 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 WFL or EPI 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 and its financial condition and prospects. |
Loans Receivable
Loans Receivable | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans Receivable | 3. Loans Receivable At June 30, 2015 and December 31, 2014, the Companys outstanding loans receivable aging was as follows: June 30, 2015 Payday Installment Pawn & Title Total Current $ 4,005,684 $ 284,897 $ 318,709 $ 4,609,290 1-30 343,306 36,819 - 380,125 31-60 206,718 19,001 - 225,719 61-90 189,123 9,044 - 198,167 91-120 141,303 5,266 - 146,569 121-150 151,749 2,514 - 154,263 151-180 185,381 728 - 186,109 5,223,264 358,269 318,709 5,900,242 Less Allowance (983,000 ) (77,000 ) - (1,060,000 ) $ 4,240,264 $ 281,269 $ 318,709 $ 4,840,242 December 31, 2014 Payday Installment Pawn & Title Total Current $ 4,387,393 $ 321,634 $ 372,805 $ 5,081,832 1-30 305,382 47,321 - 352,703 31-60 223,465 24,791 - 248,256 61-90 236,072 11,799 - 247,871 91-120 206,705 5,438 - 212,143 121-150 200,101 1,984 - 202,085 151-180 204,804 572 - 205,376 5,763,922 413,539 372,805 6,550,266 Less Allowance (1,147,000 ) (72,000 ) - (1,219,000 ) $ 4,616,922 $ 341,539 $ 372,805 $ 5,331,266 |
Loans Receivable Allowance
Loans Receivable Allowance | 6 Months Ended |
Jun. 30, 2015 | |
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 the 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 65%; 61 to 90 days 82%; 91 to 120 days 88%; and 121 to 180 days 92%. A rollforward of the Companys loans receivable allowance is as follows: Six Months Ended June 30, 2015 Year Ended December 31, 2014 Loans receivable allowance, beginning of period $ 1,219,000 $ 1,215,000 Provision for loan losses charged to expense 778,468 1,817,822 Charge-offs, net (937,468 ) (1,813,822 ) Loans receivable allowance, end of period $ 1,060,000 $ 1,219,000 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment A rollforward of the Companys property and equipment is as follows: December 31, 2014 Additions Deletions June 30, 2015 Furniture and equipment $ 2,853,603 $ 868,621 $ (706,740 ) $ 3,015,484 Leasehold improvements 787,188 14,241 - 801,429 Software 504,967 76,793 (108,081 ) 473,679 Other 191,717 - - 191,717 4,337,475 959,655 (814,821 ) 4,482,309 Accumulated depreciation (3,139,765 ) (210,691 ) 814,821 (2,535,635 ) $ 1,197,710 $ 748,964 $ - $ 1,946,674 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets A rollforward of the Companys intangible assets consisted of the follows: December 31, 2014 Additions Deletions June 30, 2015 Customer relationships $ 4,924,912 $ 1,115,000 $ - $ 6,039,912 Acquired franchise agreements 5,227,112 - - 5,227,112 Amortizable intangible assets 10,152,024 1,115,000 - 11,267,024 Less accumulated amortization (5,685,523 ) (217,350 ) - (5,902,873 ) Net amortizable intangible assets 4,466,501 897,650 - 5,364,151 Non-amortizable trademarks 2,782,292 - - 2,782,292 Intangible assets, net $ 7,248,793 $ 897,650 $ - $ 8,146,443 As of June 30, 2015, estimated future amortization expense for the amortizable intangible assets is as follows: 2015 (remainder) $ 270,569 2016 528,928 2017 515,872 2018 504,123 2019 493,548 2020 484,030 Thereafter 2,567,081 $ 5,364,151 |
Other Noncurrent Asset
Other Noncurrent Asset | 6 Months Ended |
Jun. 30, 2015 | |
Other Assets, Noncurrent Disclosure [Abstract] | |
Other Noncurrent Asset | 7. Other Non-Current Assets Other Non-Current Assets include $153,900 for a note receivable. Our agreement with the borrower includes an approximate 50% forgiveness of principal if, among other terms and conditions, required payments under the agreement are received. The agreement provides for monthly payments of principal over a five-year term ending March 2020. |
Deferred Revenue and Other Liab
Deferred Revenue and Other Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred Revenue and Other Liabilities | 8. Deferred Revenue and Other Liabilities Deferred revenue and other liabilities consist of the following: June 30, 2015 December 31, 2014 Deferred financing fees $ 258,943 $ 284,231 Deferred franchise fees 166,900 281,837 Other 194,000 72,000 Total $ 619,843 $ 638,068 |
Notes Payable - Long Term
Notes Payable - Long Term | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable - Long Term | 9. Notes Payable Long Term June 30, 2015 December 31, 2014 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 $ 2,000,000 Subsidiary note payable to a financial institution with quarterly principal payments of $375,000 plus interest at prime rate plus 2.5% (5.75% as of June 30, 2015), secured by AGIs assets, maturing June 2017 2,375,000 3,125,000 Total 5,375,000 5,125,000 Less current maturities (4,500,000 ) (3,500,000 ) $ 875,000 $ 1,625,000 The Companys term note payable with a financial institution includes certain financial covenants. Management has determined that the Company was in compliance with these financial covenants as of June 30, 2015. As part of their lending agreement, AGI may draw on a $1,000,000 line of credit (LOC). The LOC bears interest at the greater of (a) the prime rate plus 2.50% or (b) the LIBOR rate plus 5.50%. The LOC matures on August 30, 2017. There was no activity on this LOC during the period ended June 30, 2015 and there was no balance outstanding as of June 30, 2015. |
Other Operating Expense
Other Operating Expense | 6 Months Ended |
Jun. 30, 2015 | |
Other Expense [Abstract] | |
Other Operating Expense | Other Operating Expense A breakout of other operating expense is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Bank fees $ 135,222 $ 107,185 $ 284,745 $ 219,678 Collection costs 108,984 98,461 220,303 221,982 Insurance 93,200 50,211 175,995 97,664 Management and advisory fees 124,801 126,163 274,303 237,985 Professional and consulting fees 472,677 131,837 918,113 316,402 Supplies 158,122 192,363 328,636 324,513 Other 519,587 266,674 1,271,615 500,953 $ 1,612,593 $ 972,894 $ 3,473,710 $ 1,919,177 |
Income Tax Provision
Income Tax Provision | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | 11. Income Tax Provision Income tax expense, as a percentage of Income Before Income Taxes, was 50% and 38% for the three months ended June 30, 2015 and 2014, respectively and 43% and 37% for the six months ended June 30, 2015 and 2014, respectively. Nondeductible transaction costs of approximately $0.27 million contributed to the higher effective tax rates. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2015 | |
Business Combination, Description [Abstract] | |
Acquisition | 12. Acquisition Effective June 1, 2015, PQH consummated the acquisition of all outstanding membership interests in four separate limited liability companies. The entities acquired, when combined, do not meet the 20% significant subsidiaries thresholds under Rule 210.1-02 as modified by Rule 210.3-05(b) of SEC Reg. S-X. Under the equity method of accounting, the assets acquired and liabilities assumed were recorded at their estimated fair values as of the purchase date as follows: June 1, 2015 Cash $ 389,000 Inventory 427,000 Other receivables 405,000 Property and equipment 612,000 Goodwill 578,000 Intangible assets 903,000 Other assets 69,000 Accounts payable and accrued liabilities (826,000 ) $ 2,557,000 The results of the operations for the acquired business have been included in the consolidated financial statements since the date of the acquisition. The following table presents the unaudited pro forma results of operations for the three and six months ended June 30, 2015 and 2014, as if this acquisition and the acquisition of AlphaGraphics (see Note 13 to the Companys December 31, 2014 Notes to Consolidated Financial Statements) had been consummated at the beginning of 2014. The pro forma net income below excludes the expense of the transaction. 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 2014 or the results which may occur in the future. For the Three Months Ended June 30, 2015 (in thousands except earnings per share) Franchise Cellular Retail Consumer Finance Corporate Total Pro forma revenue $ 2,851 $ 8,803 $ 3,059 $ $ 14,713 Pro forma net income (loss) $ 457 $ 127 $ 257 $ (416 ) $ 425 Pro forma net income attributable to noncontrolling interests $ 4 $ $ $ $ 4 Pro forma net income (loss) available to Western shareholders $ 453 $ 127 $ 257 $ (416 ) $ 421 Pro forma earnings (loss) per share available to Western common shareholders basic and diluted $ 0.076 $ 0.021 $ 0.043 $ (0.069 ) $ 0.07 For the Three Months Ended June 30, 2014 (in thousands except earnings per share) Franchise Cellular Retail Consumer Finance Corporate Total Pro forma revenue $ 2,803 $ 6,638 $ 2,973 $ $ 12,414 Pro forma net income (loss) $ 304 $ (261 ) $ 287 $ $ 330 Pro forma net income attributable to noncontrolling interests $ 3 $ $ $ $ 3 Pro forma net income (loss) available to Western shareholders $ 301 $ (261 ) $ 287 $ $ 327 Pro forma earnings (loss) per share available to Western common shareholders basic and diluted $ 0.050 $ (0.044 ) $ 0.048 $ $ 0.05 For the Six Months Ended June 30, 2015 (in thousands except earnings per share) Franchise Cellular Retail Consumer Finance Corporate Total Pro forma revenue $ 5,967 $ 20,095 $ 6,153 $ $ 32,215 Pro forma net income (loss) $ 755 $ 524 $ 543 $ (489 ) $ 1,333 Pro forma net income attributable to noncontrolling interests $ 6 $ $ $ $ 6 Pro forma net income (loss) available to Western shareholders $ 749 $ 524 $ 543 $ (489 ) $ 1,327 Pro forma earnings (loss) per share available to Western common shareholders basic and diluted $ 0.125 $ 0.087 $ 0.091 $ (0.082 ) $ 0.22 For the Six Months Ended June 30, 2014 (in thousands except earnings per share) Franchise Cellular Retail Consumer Finance Corporate Total Pro forma revenue $ 5,762 $ 16,136 $ 6,140 $ $ 28,038 Pro forma net income (loss) $ 606 $ 22 $ 639 $ $ 1,267 Pro forma net income attributable to noncontrolling interests $ 5 $ $ $ $ 5 Pro forma net income available to Western shareholders $ 601 $ 22 $ 639 $ $ 1,262 Pro forma earnings per share available to Western common shareholders basic and diluted $ 0.100 $ 0.004 $ 0.107 $ $ 0.21 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 13. Segment Information The Company has grouped its operations into four segments in 2015 and three segments in 2014 Franchise (acquired October 1, 2014), Cellular Retail, Consumer Finance, and Corporate (beginning January 1, 2015). The Franchise segment offers franchise Segment information related to the three and six months ended June 30, 2015 and 2014, is presented below: For the Three Months Ended June 30, 2015 Franchise Cellular Retail Consumer Finance Corporate Total Revenues from external customers $ 2,850,877 $ 6,965,859 $ 3,059,317 $ $ 12,876,053 Depreciation and amortization $ 103,771 $ 89,039 $ 27,310 $ $ 220,120 Interest expense $ 46,345 $ 50,931 $ $ $ 97,276 Income tax expense (benefit) $ 280,120 $ 84,390 $ 156,250 $ (87,890 ) $ 432,870 Net income (loss) $ 456,314 $ 140,456 $ 256,756 $ (424,123 ) $ 429,403 Expenditures for segmented assets $ 50,609 $ 3,135,472 $ 15,813 $ 13,614 $ 3,215,508 For the Three Months Ended June 30, 2014 Franchise Cellular Retail Consumer Finance Corporate Total Revenues from external customers $ $ 4,658,452 $ 2,972,941 $ $ 7,631,393 Depreciation and amortization $ $ 86,116 $ 28,647 $ $ 114,763 Interest expense $ $ 35,800 $ 15,356 $ $ 51,156 Income tax expense (benefit) $ $ (124,000 ) $ 175,000 $ $ 51,000 Net income (loss) $ $ (204,142 ) $ 286,584 $ $ 82,442 Expenditures for segmented assets $ $ 253,659 $ 50,842 $ $ 304,501 For the Six Months Ended June 30, 2015 Franchise Cellular Retail Consumer Finance Corporate Total Revenues from external customers $ 5,966,438 $ 15,118,018 $ 6,153,328 $ $ 27,237,784 Depreciation and amortization $ 215,733 $ 155,845 $ 56,464 $ $ 428,042 Interest expense $ 99,717 $ 103,534 $ $ $ 203,251 Income tax expense (benefit) $ 481,770 $ 281,390 $ 332,250 $ (122,890 ) $ 972,520 Net income (loss) $ 755,395 $ 467,086 $ 542,541 $ (497,179 ) $ 1,267,843 Total segment assets $ 9,555,181 $ 12,221,701 $ 16,191,888 $ 317,040 $ 38,285,810 Expenditures for segmented assets $ 91,034 $ 3,655,691 $ 15,813 $ 13,614 $ 3,776,152 For the Six Months Ended June 30, 2014 Franchise Cellular Retail Consumer Finance Corporate Total Revenues from external customers $ $ 11,112,985 $ 6,139,572 $ $ 17,252,557 Depreciation and amortization $ $ 171,173 $ 54,910 $ $ 226,083 Interest expense $ $ 87,700 $ 43,630 $ $ 131,330 Income tax expense (benefit) $ $ (45,000 ) $ 384,000 $ $ 339,000 Net income (loss) $ $ (68,106 ) $ 639,381 $ $ 571,275 Total segment assets $ $ 8,568,244 $ 15,767,875 $ $ 24,336,119 Expenditures for segmented assets $ $ 367,347 $ 50,842 $ $ 418,189 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2015 | |
Leases [Abstract] | |
Leases | 14. Leases The Company leases retail and office facilities under operating leases with terms ranging from month to month to six years, with rights to extend for additional periods. Future minimum base lease payments are approximately as follows: Year Ending December 31, Operating Leases 2015 (remainder) $ 1,749,000 2016 2,775,000 2017 1,988,000 2018 903,000 2019 504,000 2020 87,000 Thereafter Total minimum base lease payments $ 8,006,000 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies On April 11, 2013, the Company entered into an Amended and Restated Employment Agreement with its Chief Executive Officer, Mr. John Quandahl. This agreement has a term of three years and contains, among other terms and conditions, provisions for an annual performance-based cash bonus pool for management. Pursuant to the management bonus plan, management bonuses of approximately $61,000 and ($58,000) were accrued for the three months ended June 30, 2015 and 2014, respectively, and $156,000 and $0 were accrued for the six months ended June 30, 2015 and 2014, respectively. Effective February 9, 2015, the Company entered into a three-year employment agreement with its Chief Investment Officer (CIO). Pursuant to that agreement, the CIO is eligible for a discretionary annual performance-based bonus up to $200,000. To date no performance-based bonus has been accrued. The Company has also entered into several employment agreements with certain members of subsidiary management. The terms of each agreement are different, but may ordinarily include stipulated base salary and bonus potential. Pursuant to the agreements, bonuses of approximately $59,000 and $146,000 were accrued for the three and six months ended June 30, 2015, respectively. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | 16. Shareholders Equity 2015 Stock Incentive Plan The Board of Directors adopted the Companys new 2015 Stock Incentive Plan effective February 6, 2015. The plan replaces the Companys earlier adopted 2008 Stock Incentive Plan, which the board terminated effective February 6, 2015. There were no incentives issued or outstanding under the terminated plan. The Board of Directors, or a committee of the board, will administer the 2015 Stock Incentive Plan and have complete authority to award incentives, interpret the plan and make any other determination which it believes necessary and advisable for the proper administration of the plan. A total of 100,000 shares of common stock were reserved in connection with the adoption of the 2015 Stock Incentive Plan. The new plan permits the granting of incentives in any one or a combination of the following forms: · stock options, including options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended, as qualified or incentive stock options; · stock appreciation rights (often referred to as SARs) payable in shares of common stock; · restricted stock and restricted stock units; · performance awards of cash, stock or property; and · stock awards. The following table summarizes nonvested stock option awards outstanding at June 30, 2015 and the changes for the three months then ended: Number of Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractural Term ( in years Aggregate Intrinsic Value Outstanding and nonvested at December 31, 2014 $ $ Granted 65,000 6.00 9.62 Vested Forfeited Outstanding and nonvested at June 30, 2015 65,000 $ 6.00 9.62 $ Exercisable at June 30, 2015 The option vests in three annual and near-equal installments on each of February 8, 2016, 2017 and 2018 and has a contract life of 10 years. There were no vested options at June 30, 2015 and thus no intrinsic value in outstanding vested options at June 30, 2015. The Company accounts for its employee stock-based compensation plans using the fair value method. The fair value method requires the Company to estimate the grant-date fair value of its stock-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term. The Company uses the Black-Scholes option-pricing model to estimate the fair value of the Companys stock option awards. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Companys stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, the risk-free interest rate and expected dividends. Due to the inherent limitations of option-valuation models, future events that are unpredictable and the estimation process utilized in determining the valuation of the stock-based awards, the ultimate value realized by award holders may vary significantly from the amounts expensed in the Companys financial statements. As of June 30, 2015, total unrecognized stock-based compensation expense related to nonvested stock options was approximately $149,000, which is expected to be recognized over a weighted average period of approximately 1.6 years. Stock-based compensation expense is recognized net of estimated forfeitures such that expense is recognized only for those stock-based awards that are expected to vest. A forfeiture rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimate. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events Park Seed, Wayside Gardens, Jackson & Perkins, Van Dykes Restorers and J&P Real Estate Transaction Effective July 1, 2015, the Company acquired the businesses of Restorers Acquisition, Inc., a Delaware corporation, J&P Park Acquisitions, Inc., a Delaware corporation, and J&P Real Estate, LLC, a Delaware limited liability company, by completing a merger and contribution transaction. Restorers Acquisition owns the Van Dykes Restorers brand business, an online retailer of home and furniture restoration products, J&P Park Acquisitions owns and operates the Park Seed online seed store, Wayside Gardens online and Jackson & Perkins online, and J&P Real Estate owns and operates certain related real estate properties. In consideration for the acquisition of these businesses, the Company issued to the former owners of Restorers Acquisition, J&P Park Acquisitions and J&P Real Estate an aggregate of 3,500,000 shares of the Companys common stock representing approximately 37% of the total issued and outstanding common stock after consummation of the acquisition. Change in Board of Directors On July 1, 2015, and in connection with the Park Seed, Wayside Gardens, Jackson & Perkins, Van Dykes Restorers and J&P Real Estate transaction, Gay A. Burke resigned from her position as a director of the Company. On that same day, the Board of Directors appointed Kevin Kuby to the board vacancy created by the resignation of Ms. Burke. Mr. Kuby is employed by Blackstreet Capital Management, a related-party, as its Managing Director in Restructuring. Amended Management and Advisory Agreement Effective July 1, 2015, the Company entered into an Amended and Restated Management and Advisory Agreement with Blackstreet Capital Management, LLC (Blackstreet) to provide certain financial, managerial, strategic and operating advice and assistance. The original Management and Advisory Agreement was effective April 1, 2010 and amended on October 1, 2014. Under the amended and restated agreement, annual fees are the greater of (i) $612,100 (subject to annual increases of five percent) or (ii) five percent of the Companys EBITDA, as defined under the agreement. All other terms and provisions remain unmodified. We evaluated all other events or transactions that occurred after June 30, 2015 up through August 14, 2015, the date we issued these financial statements. During this period we did not have any other material subsequent events that impacted our financial statements. |
Basis of Presentation, Nature23
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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- and six-month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the Consolidated Financial Statements and footnotes thereto included in our Form 10-K for the year ended December 31, 2014. The condensed consolidated balance sheet at December 31, 2014, 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 References in these financial statements notes to Company or we refer to Western Capital Resources, Inc. and its subsidiaries. References to specific companies within our enterprise, such as PQH, WFL, EPI or AGI, are references only to those companies. Western Capital Resources, Inc. (WCR) is a holding company owning operating subsidiaries, with the percentage of each operating subsidiary owned shown parenthetically, as summarized below. · Franchise o AlphaGraphics, Inc. (AGI) (99.2% acquired October 1, 2014) franchisor of 250 domestic and 26 international AlphaGraphics Business Centers specializing in the planning, production, and management of visual communications for businesses and individuals throughout the world. · Cellular Retail o PQH Wireless, Inc. (PQH) (100%) owns and operates cellular retail stores (110 as of June 30, 2015) as an exclusive dealer of the Cricket brand, in 15 statesArizona, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Missouri, Nebraska, Ohio, Oklahoma, Oregon, Texas, Washington, and Wisconsin. · Consumer Finance o Wyoming Financial Lenders, Inc. (WFL) (100%) owns and operates payday stores (50 as of June 30, 2015) in nine states (Colorado, Iowa, Kansas, Nebraska, North Dakota, South Dakota, Utah, 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 pawn stores (three as of June 30, 2015) in Nebraska and Iowa providing collateralized non-recourse pawn loans and retail sales of merchandise obtained from forfeited pawn loans or purchased from customers. |
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 guidance 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 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 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, and deferred taxes and tax uncertainties. |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share is computed by dividing the income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share gives effect to all dilutive potential common shares outstanding during the period, including stock options, using the treasury stock method. Options to purchase 65,000 shares granted under the 2015 Stock Incentive Plan effective February 6, 2015 (see Note 16) were outstanding at June 30, 2015. These options have a strike price in excess of the market price as of March 31, 2015, were antidilutive and therefore were not included in the computation of diluted earnings per share. Thus, there were no dilutive common shares as of June 30, 2015 and 2014. |
Segment Reporting | Segment Reporting The Company has grouped its operations into four segments Franchise segment, Cellular Retail segment, Consumer Finance segment and Corporate. The Franchise segment specializes in the planning, production and management of visual communications for businesses and individuals. The Cellular Retail segment is an authorized Cricket premier dealer selling cellular phones and accessories, providing ancillary services and accepting service payments from customers. The Consumer Finance segment provides financial and ancillary services and also sells used merchandise at retail pawn stores. The Corporate segment consists of Company activities related to acquisitions and subsequent tone at the top management of acquired businesses. |
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 and six months ended June 30, 2015. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements No new accounting pronouncement issued or effective during the fiscal quarter has had or is expected to have a material impact on the condensed consolidated financial statements. |
Loans Receivable (Table)
Loans Receivable (Table) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of outstanding loans receivable aging | At June 30, 2015 and December 31, 2014, the Companys outstanding loans receivable aging was as follows: June 30, 2015 Payday Installment Pawn & Title Total Current $ 4,005,684 $ 284,897 $ 318,709 $ 4,609,290 1-30 343,306 36,819 - 380,125 31-60 206,718 19,001 - 225,719 61-90 189,123 9,044 - 198,167 91-120 141,303 5,266 - 146,569 121-150 151,749 2,514 - 154,263 151-180 185,381 728 - 186,109 5,223,264 358,269 318,709 5,900,242 Less Allowance (983,000 ) (77,000 ) - (1,060,000 ) $ 4,240,264 $ 281,269 $ 318,709 $ 4,840,242 December 31, 2014 Payday Installment Pawn & Title Total Current $ 4,387,393 $ 321,634 $ 372,805 $ 5,081,832 1-30 305,382 47,321 - 352,703 31-60 223,465 24,791 - 248,256 61-90 236,072 11,799 - 247,871 91-120 206,705 5,438 - 212,143 121-150 200,101 1,984 - 202,085 151-180 204,804 572 - 205,376 5,763,922 413,539 372,805 6,550,266 Less Allowance (1,147,000 ) (72,000 ) - (1,219,000 ) $ 4,616,922 $ 341,539 $ 372,805 $ 5,331,266 |
Loans Receivable Allowance (Tab
Loans Receivable Allowance (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Provision for Loan and Lease Losses [Abstract] | |
Schedule of loans receivable allowance | A rollforward of the Companys loans receivable allowance is as follows: Six Months Ended June 30, 2015 Year Ended December 31, 2014 Loans receivable allowance, beginning of period $ 1,219,000 $ 1,215,000 Provision for loan losses charged to expense 778,468 1,817,822 Charge-offs, net (937,468 ) (1,813,822 ) Loans receivable allowance, end of period $ 1,060,000 $ 1,219,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | A rollforward of the Companys property and equipment is as follows: December 31, 2014 Additions Deletions June 30, 2015 Furniture and equipment $ 2,853,603 $ 868,621 $ (706,740 ) $ 3,015,484 Leasehold improvements 787,188 14,241 - 801,429 Software 504,967 76,793 (108,081 ) 473,679 Other 191,717 - - 191,717 4,337,475 959,655 (814,821 ) 4,482,309 Accumulated depreciation (3,139,765 ) (210,691 ) 814,821 (2,535,635 ) $ 1,197,710 $ 748,964 $ - $ 1,946,674 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible assets | A rollforward of the Companys intangible assets consisted of the follows: December 31, 2014 Additions Deletions June 30, 2015 Customer relationships $ 4,924,912 $ 1,115,000 $ - $ 6,039,912 Acquired franchise agreements 5,227,112 - - 5,227,112 Amortizable intangible assets 10,152,024 1,115,000 - 11,267,024 Less accumulated amortization (5,685,523 ) (217,350 ) - (5,902,873 ) Net amortizable intangible assets 4,466,501 897,650 - 5,364,151 Non-amortizable trademarks 2,782,292 - - 2,782,292 Intangible assets, net $ 7,248,793 $ 897,650 $ - $ 8,146,443 As of June 30, 2015, estimated future amortization expense for the amortizable intangible assets is as follows: 2015 (remainder) $ 270,569 2016 528,928 2017 515,872 2018 504,123 2019 493,548 2020 484,030 Thereafter 2,567,081 $ 5,364,151 |
Deferred Revenue and Other Li28
Deferred Revenue and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Deferred Revenue Disclosure [Abstract] | |
Schedule of deferred revenue and other liabilities | Deferred revenue and other liabilities consist of the following: June 30, 2015 December 31, 2014 Deferred financing fees $ 258,943 $ 284,231 Deferred franchise fees 166,900 281,837 Other 194,000 72,000 Total $ 619,843 $ 638,068 |
Notes Payable - Long Term (Tabl
Notes Payable - Long Term (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | June 30, 2015 December 31, 2014 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 $ 2,000,000 Subsidiary note payable to a financial institution with quarterly principal payments of $375,000 plus interest at prime rate plus 2.5% (5.75% as of June 30, 2015), secured by AGIs assets, maturing June 2017 2,375,000 3,125,000 Total 5,375,000 5,125,000 Less current maturities (4,500,000 ) (3,500,000 ) $ 875,000 $ 1,625,000 |
Other Operating Expense (Tables
Other Operating Expense (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Expense [Abstract] | |
Schedule of other operating expense | A breakout of other operating expense is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Bank fees $ 135,222 $ 107,185 $ 284,745 $ 219,678 Collection costs 108,984 98,461 220,303 221,982 Insurance 93,200 50,211 175,995 97,664 Management and advisory fees 124,801 126,163 274,303 237,985 Professional and consulting fees 472,677 131,837 918,113 316,402 Supplies 158,122 192,363 328,636 324,513 Other 519,587 266,674 1,271,615 500,953 $ 1,612,593 $ 972,894 $ 3,473,710 $ 1,919,177 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combination, Description [Abstract] | |
Schedule of purchase price allocations | Under the purchase method of accounting, the assets acquired and liabilities assumed were recorded at their estimated fair values as of the purchase date as follows: June 1, 2015 Cash $ 389,000 Inventory 427,000 Other receivables 405,000 Property and equipment 612,000 Goodwill 578,000 Intangible assets 903,000 Other assets 69,000 Accounts payable and accrued liabilities (826,000 ) $ 2,557,000 |
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 2014 or the results which may occur in the future. For the Three Months Ended June 30, 2015 (in thousands except earnings per share) Franchise Cellular Retail Consumer Finance Corporate Total Pro forma revenue $ 2,851 $ 8,803 $ 3,059 $ $ 14,713 Pro forma net income (loss) $ 457 $ 127 $ 257 $ (416 ) $ 425 Pro forma net income attributable to noncontrolling interests $ 4 $ $ $ $ 4 Pro forma net income (loss) available to Western shareholders $ 453 $ 127 $ 257 $ (416 ) $ 421 Pro forma earnings (loss) per share available to Western common shareholders basic and diluted $ 0.076 $ 0.021 $ 0.043 $ (0.069 ) $ 0.07 For the Three Months Ended June 30, 2014 (in thousands except earnings per share) Franchise Cellular Retail Consumer Finance Corporate Total Pro forma revenue $ 2,803 $ 6,638 $ 2,973 $ $ 12,414 Pro forma net income (loss) $ 304 $ (261 ) $ 287 $ $ 330 Pro forma net income attributable to noncontrolling interests $ 3 $ $ $ $ 3 Pro forma net income (loss) available to Western shareholders $ 301 $ (261 ) $ 287 $ $ 327 Pro forma earnings (loss) per share available to Western common shareholders basic and diluted $ 0.050 $ (0.044 ) $ 0.048 $ $ 0.05 For the Six Months Ended June 30, 2015 (in thousands except earnings per share) Franchise Cellular Retail Consumer Finance Corporate Total Pro forma revenue $ 5,967 $ 20,095 $ 6,153 $ $ 32,215 Pro forma net income (loss) $ 755 $ 524 $ 543 $ (489 ) $ 1,333 Pro forma net income attributable to noncontrolling interests $ 6 $ $ $ $ 6 Pro forma net income (loss) available to Western shareholders $ 749 $ 524 $ 543 $ (489 ) $ 1,327 Pro forma earnings (loss) per share available to Western common shareholders basic and diluted $ 0.125 $ 0.087 $ 0.091 $ (0.082 ) $ 0.22 For the Six Months Ended June 30, 2014 (in thousands except earnings per share) Franchise Cellular Retail Consumer Finance Corporate Total Pro forma revenue $ 5,762 $ 16,136 $ 6,140 $ $ 28,038 Pro forma net income (loss) $ 606 $ 22 $ 639 $ $ 1,267 Pro forma net income attributable to noncontrolling interests $ 5 $ $ $ $ 5 Pro forma net income available to Western shareholders $ 601 $ 22 $ 639 $ $ 1,262 Pro forma earnings per share available to Western common shareholders basic and diluted $ 0.100 $ 0.004 $ 0.107 $ $ 0.21 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information related to the three and six months ended June 30, 2015 and 2014, is presented below: For the Three Months Ended June 30, 2015 Franchise Cellular Retail Consumer Finance Corporate Total Revenues from external customers $ 2,850,877 $ 6,965,859 $ 3,059,317 $ $ 12,876,053 Depreciation and amortization $ 103,771 $ 89,039 $ 27,310 $ $ 220,120 Interest expense $ 46,345 $ 50,931 $ $ $ 97,276 Income tax expense (benefit) $ 280,120 $ 84,390 $ 156,250 $ (87,890 ) $ 432,870 Net income (loss) $ 456,314 $ 140,456 $ 256,756 $ (424,123 ) $ 429,403 Expenditures for segmented assets $ 50,609 $ 3,135,472 $ 15,813 $ 13,614 $ 3,215,508 For the Three Months Ended June 30, 2014 Franchise Cellular Retail Consumer Finance Corporate Total Revenues from external customers $ $ 4,658,452 $ 2,972,941 $ $ 7,631,393 Depreciation and amortization $ $ 86,116 $ 28,647 $ $ 114,763 Interest expense $ $ 35,800 $ 15,356 $ $ 51,156 Income tax expense (benefit) $ $ (124,000 ) $ 175,000 $ $ 51,000 Net income (loss) $ $ (204,142 ) $ 286,584 $ $ 82,442 Expenditures for segmented assets $ $ 253,659 $ 50,842 $ $ 304,501 For the Six Months Ended June 30, 2015 Franchise Cellular Retail Consumer Finance Corporate Total Revenues from external customers $ 5,966,438 $ 15,118,018 $ 6,153,328 $ $ 27,237,784 Depreciation and amortization $ 215,733 $ 155,845 $ 56,464 $ $ 428,042 Interest expense $ 99,717 $ 103,534 $ $ $ 203,251 Income tax expense (benefit) $ 481,770 $ 281,390 $ 332,250 $ (122,890 ) $ 972,520 Net income (loss) $ 755,395 $ 467,086 $ 542,541 $ (497,179 ) $ 1,267,843 Total segment assets $ 9,555,181 $ 12,221,701 $ 16,191,888 $ 317,040 $ 38,285,810 Expenditures for segmented assets $ 91,034 $ 3,655,691 $ 15,813 $ 13,614 $ 3,776,152 For the Six Months Ended June 30, 2014 Franchise Cellular Retail Consumer Finance Corporate Total Revenues from external customers $ $ 11,112,985 $ 6,139,572 $ $ 17,252,557 Depreciation and amortization $ $ 171,173 $ 54,910 $ $ 226,083 Interest expense $ $ 87,700 $ 43,630 $ $ 131,330 Income tax expense (benefit) $ $ (45,000 ) $ 384,000 $ $ 339,000 Net income (loss) $ $ (68,106 ) $ 639,381 $ $ 571,275 Total segment assets $ $ 8,568,244 $ 15,767,875 $ $ 24,336,119 Expenditures for segmented assets $ $ 367,347 $ 50,842 $ $ 418,189 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Leases [Abstract] | |
Schedule of future minimum base lease payments | The Company leases retail and office facilities under operating leases with terms ranging from month to month to six years, with rights to extend for additional periods. Future minimum base lease payments are approximately as follows: Year Ending December 31, Operating Leases 2015 (remainder) $ 1,749,000 2016 2,775,000 2017 1,988,000 2018 903,000 2019 504,000 2020 87,000 Thereafter Total minimum base lease payments $ 8,006,000 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of nonnvested stock option awards outstanding | The following table summarizes nonvested stock option awards outstanding at June 30, 2015 and the changes for the three months then ended: Number of Shares Weighted- Average Exercise Price Per Share Weighted- Average Remaining Contractural Term ( in years Aggregate Intrinsic Value Outstanding and nonvested at December 31, 2014 $ $ Granted 65,000 6.00 9.62 Vested Forfeited Outstanding and nonvested at June 30, 2015 65,000 $ 6.00 9.62 $ Exercisable at June 30, 2015 |
Basis of Presentation, Nature35
Basis of Presentation, Nature of Business and Summary of Significant Accounting Policies (Details Narrative) - Jun. 30, 2015 | USD ($)Nshares |
Number of Shares, Granted | shares | 65,000 |
Franchising [Member] | Alpha Graphics, Inc. [Member] | |
Number of domestic business centers | 250 |
Number of international business centers | 26 |
Percentage of equity method investment | 99.20% |
Business acquisition, effective date of acquisition | Oct. 1, 2014 |
Cellular Retail Stores [Member] | PQH Wireless, Inc. [Member] | |
Number of stores | 110 |
Percentage of equity method investment | 100.00% |
Number of states in which entity operates | 15 |
Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | |
Number of stores | 50 |
Percentage of equity method investment | 100.00% |
Number of states in which entity operates | 9 |
Consumer Finance [Member] | Express Pawn, Inc. [Member] | |
Number of stores | 3 |
Percentage of equity method investment | 100.00% |
Payday [Member] | Minimum [Member] | Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | |
Non-recourse debt | $ | $ 100 |
Payday [Member] | Maximum [Member] | Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | |
Non-recourse debt | $ | 500 |
Installment [Member] | Minimum [Member] | Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | |
Non-recourse debt | $ | 300 |
Installment [Member] | Maximum [Member] | Consumer Finance [Member] | Wyoming Financial Lenders, Inc. [Member] | |
Non-recourse debt | $ | $ 800 |
Stock Compensation Plan [Member] | |
Number of Shares, Granted | shares | 65,000 |
Loans Receivable (Details)
Loans Receivable (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | $ 4,609,290 | $ 5,081,832 |
Notes, Loans and Financing Receivable, Gross, Current | 5,900,242 | 6,550,266 |
Less Allowance | (1,060,000) | (1,219,000) |
Notes, Loans and Financing Receivable, Net current | 4,840,242 | 5,331,266 |
1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 380,125 | 352,703 |
31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 225,719 | 248,256 |
61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 198,167 | 247,871 |
91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 146,569 | 212,143 |
121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 154,263 | 202,085 |
151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 186,109 | 205,376 |
Payday and Title Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 4,005,684 | 4,387,393 |
Notes, Loans and Financing Receivable, Gross, Current | 5,223,264 | 5,763,922 |
Less Allowance | (983,000) | (1,147,000) |
Notes, Loans and Financing Receivable, Net current | 4,240,264 | 4,616,922 |
Payday and Title Loans [Member] | 1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 343,306 | 305,382 |
Payday and Title Loans [Member] | 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 206,718 | 223,465 |
Payday and Title Loans [Member] | 61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 189,123 | 236,072 |
Payday and Title Loans [Member] | 91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 141,303 | 206,705 |
Payday and Title Loans [Member] | 121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 151,749 | 200,101 |
Payday and Title Loans [Member] | 151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 185,381 | 204,804 |
Installment Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 284,897 | 321,634 |
Notes, Loans and Financing Receivable, Gross, Current | 358,269 | 413,539 |
Less Allowance | (77,000) | (72,000) |
Notes, Loans and Financing Receivable, Net current | 281,269 | 341,539 |
Installment Loans [Member] | 1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 36,819 | 47,321 |
Installment Loans [Member] | 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 19,001 | 24,791 |
Installment Loans [Member] | 61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 9,044 | 11,799 |
Installment Loans [Member] | 91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 5,266 | 5,438 |
Installment Loans [Member] | 121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 2,514 | 1,984 |
Installment Loans [Member] | 151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 728 | 572 |
Pawn Title [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current | 318,709 | 372,805 |
Notes, Loans and Financing Receivable, Gross, Current | $ 318,709 | 372,805 |
Less Allowance | 0 | |
Notes, Loans and Financing Receivable, Net current | $ 318,709 | 372,805 |
Pawn Title [Member] | 1 To 30 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | |
Pawn Title [Member] | 31 to 60 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | |
Pawn Title [Member] | 61 To 90 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | |
Pawn Title [Member] | 91 To 120 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | |
Pawn Title [Member] | 121 To 150 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | 0 | |
Pawn Title [Member] | 151 To 180 Days [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes, Loans and Financing Receivable, Gross, Current | $ 0 |
Loans Receivable Allowance (Det
Loans Receivable Allowance (Details Narrative) | Jun. 30, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 42.00% |
0 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 | 65.00% |
61 To 90 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 82.00% |
91 To 120 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 88.00% |
121 To 180 Days [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Percentage of historical written off | 92.00% |
Loans Receivable Allowance (D38
Loans Receivable Allowance (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Loans receivable allowance, beginning | $ 1,219,000 | $ 1,215,000 |
Provision for loan losses charged to expense | 778,468 | 1,817,822 |
Charge-offs, net | (937,468) | (1,813,822) |
Loans receivable allowance, end | $ 1,060,000 | $ 1,219,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Property, plant and equipment, gross | $ 4,482,309 | $ 4,337,475 | |
Property, plant and equipment, additions, gross | 959,655 | ||
Property, plant and equipment, deletions, gross | (814,821) | ||
Accumulated depreciation | (2,535,635) | (3,139,765) | |
Accumulated depreciation, additions | 210,692 | $ 171,494 | |
Accumulated depreciation, deletions | 814,821 | ||
Property, plant and equipment, net | 1,946,674 | 1,197,710 | |
Property, plant and equipment, additions | $ 748,964 | ||
Property, plant and equipment, deletions | |||
Furniture And Equipment [Member] | |||
Property, plant and equipment, gross | $ 3,015,484 | 2,853,603 | |
Property, plant and equipment, additions, gross | 868,621 | ||
Property, plant and equipment, deletions, gross | (706,740) | ||
Leasehold Improvements [Member] | |||
Property, plant and equipment, gross | 801,429 | 787,188 | |
Property, plant and equipment, additions, gross | $ 14,241 | ||
Property, plant and equipment, deletions, gross | |||
Software [Member] | |||
Property, plant and equipment, gross | $ 473,679 | 504,967 | |
Property, plant and equipment, additions, gross | 76,793 | ||
Property, plant and equipment, deletions, gross | (108,081) | ||
Other [Member] | |||
Property, plant and equipment, gross | $ 191,717 | $ 191,717 | |
Property, plant and equipment, additions, gross | |||
Property, plant and equipment, deletions, gross |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Gross amortizable intangible assets | $ 11,267,024 | $ 11,267,024 | $ 10,152,024 | ||
Addition, gross | 1,115,000 | ||||
Addition, amortizable intangible assets | 113,510 | $ 29,831 | 217,350 | $ 54,589 | |
Additions | 897,650 | ||||
Less accumulated amortization | (5,902,873) | (5,902,873) | (5,685,523) | ||
Net amortizable intangible assets | 5,364,151 | 5,364,151 | 4,466,501 | ||
Non-amortizable trademarks | 2,782,292 | 2,782,292 | 2,782,292 | ||
Intangible assets, net | 8,146,443 | 8,146,443 | 7,248,793 | ||
Customer Relationships [Member] | |||||
Gross amortizable intangible assets | 6,039,912 | 6,039,912 | 4,924,912 | ||
Addition, gross | 1,115,000 | ||||
Acquired Franchise Agreements [Member] | |||||
Gross amortizable intangible assets | $ 5,227,112 | $ 5,227,112 | $ 5,227,112 | ||
Addition, gross |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 (remainder) | $ 270,569 | |
2,016 | 528,928 | |
2,017 | 515,872 | |
2,018 | 504,123 | |
2,019 | 493,548 | |
2,020 | 484,030 | |
Thereafter | 2,567,081 | |
Finite-Lived Intangible Assets, Net | $ 5,364,151 | $ 4,466,501 |
Other Noncurrent Asset (Details
Other Noncurrent Asset (Details Narrative) - Jun. 30, 2015 - USD ($) | Total |
Other Assets, Noncurrent Disclosure [Abstract] | |
Percentage of forgiveness of principal | 50.00% |
Accounts and notes receivable, net | $ 153,900 |
Term of note receivable | 5 years |
Deferred Revenue and Other Li43
Deferred Revenue and Other Liabilities (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Deferred Revenue Disclosure [Abstract] | ||
Deferred financing fees | $ 258,943 | $ 284,231 |
Deferred franchise fees | 166,900 | 281,837 |
Other | 194,000 | 72,000 |
Total | $ 619,843 | $ 638,068 |
Notes Payable - Long Term (Deta
Notes Payable - Long Term (Details Narrative) - Jun. 30, 2015 - USD ($) | Total |
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 |
Stated interest rate | 5.75% |
Description of maturity date | June 2,017 |
Note Payable to Financial Institution [Member] | Prime Rate [Member] | |
Debt Instrument [Line Items] | |
Stated interest rate | 2.50% |
AGI [Member] | |
Debt Instrument [Line Items] | |
Maximum borrowing capacity | $ 1,000,000 |
Description of interest rate | (a) the prime rate plus 2.50% or (b) the LIBOR rate plus 5.50% |
Notes Payable - Long Term (De45
Notes Payable - Long Term (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,375,000 | $ 5,125,000 |
Less current maturities | (4,500,000) | (3,500,000) |
Notes payable, noncurrent | 875,000 | 1,625,000 |
Note Payable To River City Equity [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 3,000,000 | 2,000,000 |
Note Payable to Financial Institution [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,375,000 | $ 3,125,000 |
Other Operating Expense (Detail
Other Operating Expense (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Income and Expenses [Abstract] | ||||
Bank fees | $ 135,222 | $ 107,185 | $ 284,745 | $ 219,678 |
Collection costs | 108,984 | 98,461 | 220,303 | 221,982 |
Insurance | 93,200 | 50,211 | 175,995 | 97,664 |
Management and consulting fees | 124,801 | 126,163 | 274,303 | 237,985 |
Professional fees | 472,677 | 131,837 | 918,113 | 316,402 |
Supplies | 158,122 | 192,363 | 328,636 | 324,513 |
Other | 519,587 | 266,674 | 1,271,615 | 500,953 |
Total General & administrative expenses | $ 1,612,593 | $ 972,894 | $ 3,473,710 | $ 1,919,177 |
Income Tax Provision (Details N
Income Tax Provision (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Percentage of income tax rate | 50.00% | 38.00% | 43.00% | 37.00% |
Nondeductible transaction costs | $ 270,000 | $ 270,000 |
Acquisition (Details)
Acquisition (Details) - USD ($) | Jun. 30, 2015 | Jun. 01, 2015 | Dec. 31, 2014 |
Business Combinations [Abstract] | |||
Cash | $ 389,000 | ||
Inventory | 427,000 | ||
Receivables | 405,000 | ||
Property and equipment | 612,000 | ||
Goodwill | $ 13,757,368 | 578,000 | $ 12,956,868 |
Intangible assets | 903,000 | ||
Other assets | 69,000 | ||
Accounts payable and accrued liabilities | (826,000) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 2,557,000 |
Acquisition (Details 1)
Acquisition (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pro forma revenue | $ 14,713 | $ 12,414 | $ 32,215 | $ 28,038 |
Pro forma net income | 425 | 330 | 1,512 | 1,205 |
Pro forma net income attributable to noncontrolling interests | 4 | 2 | 6 | 4 |
Pro forma net income available to Western shareholders | $ 421 | $ 267 | $ 1,506 | $ 1,201 |
Pro forma earnings per share available to Western common shareholders - basic and diluted | $ 0.07 | $ 0.04 | $ 0.25 | $ 0.2 |
Franchise [Member] | ||||
Pro forma revenue | $ 2,851 | $ 2,803 | $ 5,967 | $ 5,762 |
Pro forma net income | 457 | 304 | 755 | 507 |
Pro forma net income attributable to noncontrolling interests | 4 | 2 | 6 | 4 |
Pro forma net income available to Western shareholders | $ 453 | $ 240 | $ 749 | $ 503 |
Pro forma earnings per share available to Western common shareholders - basic and diluted | $ 0.076 | $ 0.04 | $ 0.125 | $ 0.084 |
Cellular Retail Stores [Member] | ||||
Pro forma revenue | $ 8,803 | $ 6,638 | $ 20,095 | $ 16,136 |
Pro forma net income | $ 127 | $ (261) | $ 544 | $ 59 |
Pro forma net income attributable to noncontrolling interests | ||||
Pro forma net income available to Western shareholders | $ 127 | $ (260) | $ 544 | $ 59 |
Pro forma earnings per share available to Western common shareholders - basic and diluted | $ 0.021 | $ (0.043) | $ 0.091 | $ 0.01 |
Consumer Finance [Member] | ||||
Pro forma revenue | $ 3,059 | $ 2,973 | $ 6,153 | $ 6,140 |
Pro forma net income | $ (416) | $ 287 | $ 543 | $ 639 |
Pro forma net income attributable to noncontrolling interests | ||||
Pro forma net income available to Western shareholders | $ 257 | $ 287 | $ 543 | $ 639 |
Pro forma earnings per share available to Western common shareholders - basic and diluted | $ 0.043 | $ 0.048 | $ 0.091 | $ 0.107 |
Corporate [Member] | ||||
Pro forma revenue | ||||
Pro forma net income | $ (257) | $ (330) | ||
Pro forma net income attributable to noncontrolling interests | ||||
Pro forma net income available to Western shareholders | $ (416) | $ (330) | ||
Pro forma earnings per share available to Western common shareholders - basic and diluted | $ (0.069) | $ (0.055) |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 12,876,053 | $ 7,631,393 | $ 27,237,784 | $ 17,252,557 | |
Depreciation and amortization | 220,120 | 114,763 | 428,042 | 226,083 | |
Interest expense | 97,276 | 51,156 | 203,251 | 131,330 | |
Income tax expense (benefit) | 432,870 | 51,000 | 972,520 | 339,000 | |
Net income (loss) | 429,403 | 82,442 | 1,267,843 | 571,275 | |
Total segment assets | 38,285,810 | 24,336,119 | 38,285,810 | 24,336,119 | $ 36,762,264 |
Expenditures for segmented assets | 3,215,508 | $ 304,501 | 3,776,152 | $ 418,189 | |
Franchise [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,850,877 | 5,966,438 | |||
Depreciation and amortization | 103,771 | 215,733 | |||
Interest expense | 46,345 | 99,717 | |||
Income tax expense (benefit) | 280,120 | 481,770 | |||
Net income (loss) | 456,314 | 755,395 | |||
Total segment assets | 9,555,181 | 9,555,181 | |||
Expenditures for segmented assets | 50,609 | 91,034 | |||
Cellular Retail [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 6,965,859 | $ 4,658,452 | 15,118,018 | $ 11,112,985 | |
Depreciation and amortization | 89,039 | 86,116 | 155,845 | 171,173 | |
Interest expense | 50,931 | 35,800 | 103,534 | 87,700 | |
Income tax expense (benefit) | 84,390 | (124,000) | 281,390 | (45,000) | |
Net income (loss) | 140,456 | (204,142) | 467,086 | (68,106) | |
Total segment assets | 12,221,701 | 8,568,244 | 12,221,701 | 8,568,244 | |
Expenditures for segmented assets | 3,135,472 | 253,659 | 3,655,691 | 367,347 | |
Consumer Finance [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 3,059,317 | 2,972,941 | 6,153,328 | 6,139,572 | |
Depreciation and amortization | $ 27,310 | 28,647 | $ 56,464 | 54,910 | |
Interest expense | 15,356 | 43,630 | |||
Income tax expense (benefit) | $ 156,250 | 175,000 | $ 332,250 | 384,000 | |
Net income (loss) | 256,756 | 286,584 | 542,541 | 639,381 | |
Total segment assets | 16,191,888 | 15,767,875 | 16,191,888 | 15,767,875 | |
Expenditures for segmented assets | $ 15,813 | $ 50,842 | $ 15,813 | $ 50,842 | |
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | |||||
Depreciation and amortization | |||||
Interest expense | |||||
Income tax expense (benefit) | $ (87,890) | $ (122,890) | |||
Net income (loss) | (424,123) | (497,179) | |||
Total segment assets | 317,040 | 317,040 | |||
Expenditures for segmented assets | $ 13,614 | $ 13,614 |
Leases (Details)
Leases (Details) | Jun. 30, 2015USD ($) |
Leases [Abstract] | |
2015 (remainder) | $ 1,749,000 |
2,016 | 2,775,000 |
2,017 | 1,988,000 |
2,018 | 903,000 |
2,019 | 504,000 |
2,020 | $ 87,000 |
Thereafter | |
Total minimum base lease payments | $ 8,006,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Employment Agreement [Member] | |||||
Bonus arrangement current | $ 59,000 | $ 146,000 | |||
Chief Financial Officer [Member] | |||||
Potential bonus arrangement current | $ 200,000 | ||||
Chief Executive Officer [Member] | |||||
Bonus arrangement current | $ 61,000 | $ (58,000) | $ 156,000 | $ 0 |
Shareholders' Equity (Details N
Shareholders' Equity (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Feb. 06, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 149,000 | |
Period of unrecognized compensation cost | 1 year 7 months 6 days | |
Vesting period | 3 years | |
Expiration period | 10 years | |
Stock Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares reserved for future issuance | 100,000 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) None in scaling factor is -9223372036854775296 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of Shares, Outstanding and nonvested at December 31, 2014 | ||
Number of Shares, Granted | 65,000 | |
Number of Shares, Vested | ||
Number of Shares, Forfeited | ||
Number of Shares, Outstanding and nonvested at June 30, 2015 | 65,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Exercise Price, Outstanding and nonvested at December 31, 2014 | ||
Exercise Price, Granted | $ 6 | |
Exercise Price, Vested | ||
Exercise Price, Forfeited | ||
Exercise Price, Outstanding and nonvested at June 30, 2015 | $ 6 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted-average remaining contractural term | 9 years 7 months 13 days | 9 years 7 months 13 days |
Aggregate Intrinsic Value, Outstanding and nonvested at December 31, 2014 | ||
Aggregate Intrinsic Value, Granted | ||
Aggregate Intrinsic Value, Vested | ||
Aggregate Intrinsic Value, Forfeited | ||
Aggregate Intrinsic Value, Outstanding and nonvested at June 30, 2015 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - shares | Jul. 02, 2015 | Aug. 14, 2015 |
Blackstreet Capital Management, LLC [Member] | ||
Description of amended and restated | (i) $612,100 (subject to annual increases of five percent) or (ii) five percent of the Companys EBITDA, as defined under the agreement. All other terms and provisions remain unmodified. | |
Restorers Acquisition, J&P Park Acquisitions and J&P Real Estate [Member] | ||
Number of shares issued for acqusition | 3,500,000 | |
Percentage of common stock issued and outstanding | 37.00% |