5 unchanged sentences
The Company has significant holdings of gold in the form of jewelry inventories and pawn collateral, and a significant portion of retail merchandise sales are gold jewelry, as are most of the wholesale scrap jewelry sales.
−Removed: At December 31, 2021, the Company held approximately $129.0 million in jewelry inventories, which was primarily gold, representing 49% of total inventory.
+Added: At December 31, 2022, the Company held approximately $144.2 million in jewelry inventories, which were primarily gold, representing 50% of total inventory.
In addition, approximately $230.5 million, or 59%, of total pawn loans were collateralized by jewelry, which was also primarily gold.
Of the Company’s total retail merchandise revenue during 2022, approximately $466.6 million, or 37%, was from jewelry sales.
−Removed: During 2021, the average market price of gold increased by 2%, from $1,769 to $1,799 per ounce.
+Added: During 2022, the average market price of gold slightly increased from $1,799 to $1,800 per ounce.
The price of gold at December 31, 2022 was $1,814 per ounce compared to $1,806 at December 31, 2021.
A significant and sustained decline in the price of gold would negatively impact the value of jewelry inventories held by the Company and the value of gold jewelry pledged as collateral by pawn customers.
−Removed: As a result, the Company’s profit margins from the sale of existing jewelry inventories could be negatively impacted, as could the potential profit margins on gold jewelry currently pledged as collateral by pawn customers in the event it was forfeited by the customer.
+Added: As a result, the Company’s profit margins from the sale of existing jewelry inventories could be negatively impacted, as could the potential profit margins on gold jewelry currently pledged as collateral by pawn customers if forfeited by the customer.
In addition, a decline in gold prices could result in a lower balance of pawn loans outstanding for the Company, as customers generally would receive lower loan amounts for individual pieces of pledged gold jewelry, although the Company believes that many customers would be willing to add additional items of value to their pledge in order to obtain the desired loan amount, thus mitigating a portion of this risk.
4 unchanged sentences
The Company also has operations in El Salvador, where the reporting and functional currency is the U.S.
−Removed: On a dollar translated basis, both Latin America revenues and cost of revenues account for 35% of consolidated amounts for the year ended December 31, 2021.
+Added: On a dollar-translated basis, Latin America revenues and cost of revenues accounted for 25% and 22%, respectively, of consolidated amounts for the year ended December 31, 2022.
The majority of Latin America revenues and expenses are denominated in currencies other than the U.S.
11 unchanged sentences
dollar exchange rate would have impacted 2022 annual earnings by approximately $3.0 million.
−Removed: The impact of foreign exchange rates in Guatemala and Colombia are not material to the Company’s financial position or results of operations.
+Added: The impact of foreign exchange rates in Guatemala and Colombia is not material to the Company’s financial position or results of operations.
Interest Rate Risk
−Removed: The Company is potentially exposed to market risk in the form of interest rate risk in regards to its long-term unsecured lines of credit.
−Removed: At December 31, 2021, the Company had $259.0 million outstanding under its revolving lines of credit.
−Removed: The revolving lines of credit are generally priced with a variable rate based on a fixed spread over LIBOR or the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) and reprice with any changes in LIBOR or TIIE.
−Removed: Based on the average outstanding indebtedness during 2021, a 1% (100 basis points) increase in interest rates would have increased the Company’s interest expense by approximately $1.8 million for 2021.
+Added: The Company is potentially exposed to market risk in the form of interest rate risk for its long-term unsecured lines of credit.
+Added: At December 31, 2022, the Company had $339.0 million outstanding under its U.S.
+Added: revolving line of credit.
+Added: The revolving lines of credit are generally priced with a variable rate based on a fixed spread over SOFR or the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) and repriced with any changes in SOFR or TIIE.
+Added: Based on the $339.0 million in outstanding borrowings at December 31, 2022, a 1% (100 basis points) increase in interest rates would have increased the Company’s annual interest expense by approximately $3.4 million for 2022.
Interest rate fluctuations will generally not affect the Company’s future earnings or cash flows on its fixed rate debt unless such instruments mature or are otherwise terminated.
8 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.