President’s Letter

Hello Team Loyalty,

Now that the first quarter is in the books, we can start to focus on the second and third quarters. I feel that we will all be about LOANS. Tax returns will be over, and our clients will no longer have any free government extras coming in. We do need to do our best to keep up with sales as that is where the capital comes from to support our loan growth. Summer is around the corner and with that typically comes higher gas prices, families wanting a vacation and therefore less expendable income. As I stated earlier the loans are coming! A few areas we can focus on are push rollovers, text, and communicate with our clients, watch our aged inventory (Deal of The Day sales), and push our layaway program. The layaway program will be huge as that creates residual monthly revenue if we can get our clients into the store make monthly payments and create another opportunity. We are also working towards more online opportunities for sales and loan/ rollover transactions, while that works great as an added benefit for our clients and easier for them to pay on their loans or layaways it does take away the instore client engagement and making it easier for our clients, especially with today's technology, is the way of the future.

CAPA (California Pawnbrokers Association) is having their annual spring conference and I am looking forward to seeing some of our team there to have some fun and bring home some great takeaways to add to the company's value. You will also be able to see me do some public speaking, which I am not particularly good at, so you may get a good laugh or two, at my expense. If you are attending this will be a fantastic opportunity for you to meet several other pawnbrokers and pawnshop vendors, this can be where you can gain the most information and create long lasting friendships.

Now for the fun part! Go Kings, Light the Beam! I know many of our Loyalty Pawn family has had the experience to attend the Golden One Areana and watch our Sacramento Kings once again make it to the NBA playoffs for the first time since 2006 in the company suite. I truly hope you have enjoyed your experiences there with friends and family not only for the Kings games but any other events. Remember we will continue to enjoy this benefit for the next several years, please take advantage. Have an incredibly Happy Easter to you and your families and be sure to cheer on the Sacramento Kings in their remaining few games and into the playoffs.

Gratefully,

Stan Lukowicz, III