Loyalty Pawn's Three Balls Chronicle Volume 2 Issue 2

THREE BALLS CHRONICLE

VOLUME 2 / ISSUE 2

February 2019

IN THIS ISSUE

Letter from the President

Letter from the General Manager

Loyalty Pawn Family

Store Manager Updates

Golden 1 Center Events

Upcoming Sales

Upcoming Birthdays and Anniversaries and New Hires

Top Performers in November

Loyalty Pawn’s Core Goals, Values and Visions

Employee Services Corner

Games & Answer Keys

Team Loyalty!!

Congratulations!! It’s officially been one year since we started Loyalty Pawn on January 16th. We have made so many great changes throughout the year and we couldn’t have done it with out the help from each and everyone one of you guys, so thank you! We can’t wait to have another great year at Loyalty Pawn and make 2019 a great year for everyone and for the business. Keep reading to learn more about what happened at Walk the Halls at the Capital, manager updates from each store and much more!

Letter from the President

Hello Loyalty Pawn Family,

Can you believe it January 2019 is over, I feel I am getting excited for the New Year, this is going to be another lightning fast year? A tremendous January 2019, we have almost a full year's data to compare year over year numbers and with the data we do have I can tell you...

20% growth in our buys, which also very exciting as I am sure you can all tell with our new 7-day hold, we are able to turn the product so much faster.

30% more in dollars in new layaways made, WOW that is unreal.

18% increase in sales revenue using same numbers which last year we did not have an eBay and only half a month's scrap sales. If you added in those sales, we would have a 65% increase in total sales revenue.

20% almost increase in loan service charges (interest).

$110,000 or more (as I am writing this 1/30/19) LOAN BALANCE growth.

Team these are all amazing revenue numbers that will continue to grow. Please don’t not think that this does not all come with a cost. Yes, our expenses have gone up, ss they should we have about 10 more team members, significant dollar amount in training (GIA, consultants, Conventions, Etc.), as well as rents, utilities, insurance of all kinds and just the overall cost of doing business in California. That is why we need to keep being the best PAWNBROKERS we can be EVERYDAY!! I am here to help with that most of you have met our new consultants and even though I feel we are running a successful pawn business. I know WE can do better, WE can take Loyalty Pawn to the next level, but it cannot be done without you! Wayne, Javier and I will provide you with all the best tools, training and support that we can, and we are all looking forward to seeing not only the company but each and every one of you grow in health, body and mind as well as in your bank account.

The consultants that we are working with now will be sharing with us how to properly budget every KPI from income and expenses and we will be sharing those with you. The budgets will hold us all accountable to ourselves and our store numbers and that is one of the ways to take Loyalty Pawn to the next level. They are opening up their diamond training, weekly webinars, management camps, recruiters and their combined years and 100’s of stores experience to Loyalty Pawn. I hope you all are as excited about 2019 as I am.

Always Thankful and Grateful

Stan Lukowicz Jr.

A Letter from the General Manager

Greetings Team!

What a great start to 2019! January flew by and I have a feeling that February will do the same. We are excited to see some store improvements taking place. The exterior at Roseville is near completion and is looking great. Soon we will have the new signage up and lit up. The West Sacramento location had started to hang their slat wall and it looks great as well. Our goal is to see these stores complete by the end of the first quarter.

We are also excited to mention that we are working with the Smart Financial team. David and Joe came around this last month to check out our operation. We are looking forward to their guidance and recommendations to further better our systems, sales and hiring practices. We are excited to fill in our need for talented individuals to join our team.

I would like to mention the top three sales leaders of the month. Dominic lead the company with $23,328.44 with Jose Morales in 2nd place at $21,353.96 and Parker Hush at $10,283.90. Also, Earnest Bryson from the Florin location got 1st place in physical transactions completed for the month. Way to go team.

We know that February is going to be a great month in sales, and we are very much looking forward to our layaway pick ups this month. Since our buys have changed at the beginning of January, we will have more product come out more frequently so let’s continue to utilize offerup, marketplace and our follow up customer want binders. Keep up the good work everyone!!

Sincerest Thanks,

Wayne Silliman General Manager

“Success seems to be connected with action. Successful people keep moving. They make mistakes but they don’t quit.” – Conrad Hilton

Loyalty Pawn Family

Greetings Loyalty Family!

February is here and love is in the air. This is an excellent opportunity for all of us to make some great relationships with our clients. Let’s remember that we must come out from behind that counter if we want to make those sales. Our Loyalty Family is growing we have two new team members that are joining the family Tony Mora who is currently training at the Florin Mall location and Branon Arnett who is our new Shipper/ lister for eBay. If you haven’t introduced yourselves to these two new members, please make sure you do so. Let’s make these two feel welcome to our family. Let’s continue to build and strengthen that award-winning culture everyone.

This month we are going to get to know Cody Lathe, the store manager of our El Camino Location. Cody has been in the Pawn industry for eight years. Cody was born October 6th, 1988 in Roseville California at The Roseville community hospital and nowadays it is a moving truck rental facility. He moved around a lot as a child as many as 32 times just because his dad liked to move. His family has lived in places like Dairy New Hampshire, Boston Massachusetts, Fort Lauderdale Florida, East Oakland California, and many other Places in California. Some of his favorite places to live were New Castle and San Francisco mainly because of the food. His least favorite place to live was East Oakland because he just didn’t fit in. He finally settled in Sacramento in 2003 where he has made his life. Cody is a newlywed and has purchased his first new house where him, his wife Sarah, and two dogs Remington and Harrington have now made it into a home. Some of his hobbies are to try new and adventures cuisine or to wind down with new movies. Speaking of film, Cody's dad owned the real restaurant Pizza Planet which Pixar bought the rights to use in the movie Toy Story.

Cody has always had a thirst for knowledge this is one of the main reasons why he loves this business. The moment he thinks he has learned it all he gets introduced to something new. In January Cody was invited to join some of the leadership team and walk the halls of the Capitol. It was such an exciting experience for him he can’t wait to do it again. This intense thirst for knowledge has him working on a few projects like the podcast for the company and learning Java which is for back end systems development. Some of his more extreme far in the distance goals are to learn Mandarin Chinese and to get another degree. One of the main goals he is currently working on is to rise in the company and wants to reach the next level and help to build the brand. Lastly, some of his travel goals are to visit every continent excluding Antarctica. It is fascinating what the future holds for him, and I know we are all wishing Cody best of luck and much success in his ventures.

Javier Becerra, Operations Manager

Shop Talk Manager Updates

El Camino

Team Loyalty!

We have had a great month over at El Camino. We have been busy all month with out huge pull and making sure we reclaim our first place standard for protection plans. We want to congratulate Roseville on dethroning us in December and we will make sure it never happens again. We spent the month training the newest hire for Roseville and will think we are building an invaluable team member in Ramsey. We see nothing but great things for El Camino in this coming year and know the company will do well too!

Cody Lathe

Florin Mall

Hello Loyalty Pawn Family,

I hope everyone is having a great Christmas season and a great start of a New Year. I would like to take a moment to start off by introducing a new member to our Loyalty Pawn family. His name is Tony Mora. Some of you might know him from before. Tony has about 10 years of Pawn experience and 7 years of retail in fine jewelry. Tony is also very knowledgeable in luxury timepiece as in Rolex. Panerai, Cartier, and many more. So, if anyone has not met him please stop by the Florin location or give him a call to introduce yourself hope everyone has a wonderful month in February. Florin is excited for our new upcoming face lift. GO TEAM LOYALTY!

Mark Xiong

Florin

Store Manager

Roseville

What’s going on at Roseville

Roseville had a great start to the year. We finally got our building repainted and its looking great. We are up from last year in sales for the month of January with $47,871 in total sales. That puts us at a 15% increase from last year. Dominic was the top salesman of the store with $23,163. The team did great with pushing our add ons with a total of 76 sold including 45 day warranties and Jewelry protection plans. Lots of big things happening at Roseville. Keep up the great work everyone and let’s make 2019 the best year yet.

Dylan Tinkleneberg

Store Manager

Loyalty Pawn Roseville

Broadway

Broadway has been keeping busy pricing and getting jewelry and coins out to the stores. We are also in the process of replacing the floor in our upstairs warehouse. The team is excited about the state of the store and moral is high. We have big plans for February and the upcoming valentine’s day.

John Mark

West Sacramento

Hello Team Loyalty

We have big things happing in West Sac for 2019! First, we have started our stores remodel and have successfully hung 24 sections of slat wall and the storefront is starting to transform into the Loyalty Pawn image. We also have had a great month is sales for the month of January. Last January in 2018 we sold $28,188 and we are currently sitting at $44,549 in sales for January 2019. Our top sales person for January is Jose Morales with $20,620 in sales. Watch out, West Sac is coming for number 1 so make sure you stay tuned each month to the three balls chronical to see what we are doing and what is happing in the WEST!

Fun Facts: The word “Pawn” is derived from the Latin word “pignus” (meaning pledge).

-Justin Martinez

Walking the Halls at the Capital

As I stated in my opening letter, I am excited about 2019 let me share with you some of what happened within the industry in January and how Loyalty Pawn was involved. Towards the end of January there was a CAPA (California Pawnbrokers Association) board of directors meeting. This was my first meeting as President-Elect, which means in 2 short years I will be the president of the strongest state pawn industry association in the United States, it sounds pretty cool but I am actually a bit intimidated by the position but I have many friends and great previous leaders there to help me and I felt it was my turn to step up and help the industry out. We had great discussion about future legislation (A FEE INCREASE FOR US YAY!!), more benefits to all the members, creating better communication with our vendors and much more. It truly is an exhaustive day in a room with no windows but very productive. The next day is our annual Walk the Halls, where we are given marching orders from our amazing lobbyist, Bill Duplissea, and a list of meeting every 15-30 minutes from 9am until 3pm. About 30-40 pawnbrokers broken out into small groups shake hands and meet as many legislators that we can from both sides of the aisle. We tell them about our business (successes and struggles), our clients, our stories, our team members and what we plan on doing legislatively this year. The neat thing is they ACTUALY listen. I have been doing this for about 10 years and truly enjoy watching and being part of the process. I have brought team members in the past but this year I brought more than ever. I have even brought my daughter, Lauren, the last couple of years and she really loves it! I want to thank Wayne, Javier, Cody and John for coming and spending the day getting to know our legislators, some I have created relationships over the years and some we have met for the first time. I want to let the entire Loyalty Pawn Family these guys crushed it. They were all super engaged handing out business cards, inviting legislators in our locations for tours and they were polite, respectful and were tremendous ambassadors of Loyalty Pawn. We were allowed on the Senate Floor sitting in a member's desk, taking pictures in front of the Queen Isabella/ Christopher Columbus statue, here is a mention of pawn on that statue in the California State Capital, which says, ‘“I will assume the undertaking” she said, “for my own crown of Castile, and am ready to pawn my jewels to defray the

expenses of it, if the funds in the treasury shall be found inadequate.”’. And taking pictures with Assemblyman Frank Bigelow at his request in his office which he later shared on his Facebook page. If you would like to go on a shorter tour and meet your local members, I am happy to schedule time with you and your family (kids always welcome). It is a really cool building and a lot of really cool things happen there regardless of your political belief.

Golden 1 Center Upcoming Events

As a quick reminder, remember to turn in your ticket request forms 2 weeks prior to the event you would like to attend. Also please send a pdf copy of your filled out form to lauren.l@loyaltypawn.com, stanjr@loyaltypawn.com and wayne@loyaltypawn.com. Thank you!!

Heat vs. Kings Friday February 8th 2019 7:00pm

Disney on Ice Dare to Dream Thursday February 14th 2019 7:00pm

Disney on Ice Dare to Dream Friday February 15th 2019 7:00pm

Disney on Ice Dare to Dream Saturday February 16th 2019 11:00am

Disney on Ice Dare to Dream Saturday February 16th 2019 3:00pm

Disney on Ice Dare to Dream Saturday February 16th 2019 7:00pm

Disney on Ice Dare to Dream Sunday February 17th 2019 11:00am

February’s Upcoming Sales

January Birthdays

Brandon Arnett Februaury 9th

Travis Tobin February 19th

January Anniversaries

Sydney Tan 1 year

Zabiyah Iqbal 10 years

January New Hires

We would like to welcome our recent new hires to our Loyalty Pawn family.

Brandon Arnett working for eBay Sales and Tony Mora to our Florin Mall Drive location!!

TOP PERFORMERS IN OCTOBER

Loan/Buy/Layaway End of Month Balances

Loyalty Pawn’s Goals, Values, and Visions

Company Wide Goals

• To Offer Immediate Relief with a Short-Term Loan.

• To Develop, Recruit and Inspire an Elite Work Force, Driven by Loyal Business Practices.

• To Provide the Highest Standard of Quality, Commitment and Value to Every Customer in Our Loyalty Pawn Family!

Core Values

• Loyalty

• Dedication

• Creativity

Company Vision

• Loyal People Committed to Everyday Satisfaction

“The Leader in Local Lending”

Loyalty Pawn Employee Services Corner

What’s not to love about February?

Some people slack off during the month of February...like there should be a hole in the calendar. Yes, it’s cold, wet and not- quitespring-yet, but February has plenty of other good stuff going for it.

Here’s a few reasons to love the month of February:

Reason #1 So glad January is over! We can officially ditch the diet and get back to eating warm winter pies a la mode and slow cooked chicken curry over coconut rice! Yum!

Reason #2 Did you know that the Mardi Gras Carnival, in Brazil every year, is on 17th February? There are lots of festival themed events going around the world; we here in the U.S can find some colorful mardi gras events of our own that allows us to dress up in tropical fancy clothes, drink rum punch, shut our eyes, and pretend it’s summer already.

Reason #3 It’s the shortest month of the year and that we’re this much closer to summer!!

Reason #4 My all-time fav to spend with the Hubbs...Valentine’s Day on February 14th – an excuse for treating your special someone to a one-of-a kind meaningful gift(s) -Yes I said that “gift” with an “s”... plural! Along with going out on the town (in Uber, Lyft or a taxi) so you both can enjoy fashionable adult beverages with your special someone (responsibly).

Reason #5 The cous d gras...the days are getting longer, the evenings lighter, and before you know it, it will be spring then summer! Cheers!

OPEN ENROLLMENT - Closed on Jan 15th. If you didn’t take advantage of enrolling or making any changes to your group health benefits, no worries. You’ll have another chance next year or if you experience a life event (birth or adoption of a child(re), divorce or marriage, dropped from your parent’s plan). There was a slight

increase in rates your payroll section 125 deductions will adjust accordingly effective your February 5th paycheck.

January 2019 Issue | Who’s That Baby Now?

The adorable little guy featured in January is non-other than Dylan Tinklenberg of Roseville! And many of you guessed it correctly...and many of you didn’t. The winner of January’s guess of Who’s that baby now is “CHRISTIAN TOGNOLINI” of Broadway!! Christian will receive his 8hr PTO Certificate next week and Dylan will receive his $50 Amazon eGift card then, as well.

Things you didn’t know about Dylan.

Where did you grow up? Born and Raised in Boise Idaho.

What did you want to be when you grew up? Wanted to be a Fish and Game Warden

What thing(s) would you like to share with the team (things about you) that most people don't know? I own my own company with my brother called Pine Top Brand and we make leather goods and accessories.

What three adjectives best describe you and why? Hardworking, Funny, Outgoing.

What is it about the pawn industry that keeps you in it? I stay in the pawn industry because I love to help people through hard times.

What is your favorite color? Favorite color...can’t choose so would have to say tie dye and I used to do that for a living too.

What is your favorite sport? My favorite sport is football and hobby would be kayaking and fishing.

What is your most memorable achievement-personally and professionally? Most memorable achievement personally/professionally is starting my own company and succeeding in it.

February 2019 Issue | Who’s That Baby Now?

Guess correctly and your answer will be entered into the February Three Balls Chronicles 2019 drawing for a chance to win an 8-hour paid day off! Email your answer to EmployeeServices@LoyaltyPawn.com and put “February Who’s That Baby Now” in the subject line then type your answer in the body of the email and send. Deadline to submit your answer is Monday, February 18th

And don’t forget to email your baby photo(s) to EmployeeServices@LoyaltyPawn.com and when your photo is featured, you’ll be awarded a $50 Amazon Gift Card.

That’s all there is to it! Good luck! Enjoy the month of February and get excited, engage in and participate Who’s That Baby Now and remember, if you need HR, Payroll, Benefits, or Family support, Loyalty Pawn’s Employee Services is only a phone call, text message, or email away, 24/7/365. ~Dmae

Can You Spot the Difference?

Solution: 1. Opening appears on back of boy’s cap 2. Dog’s collar is missing 3. Stripe on boy’s shirt sleeve is missing 4. Extra writing on envelope on floor 5. Leg on table is colored in 6. Flower in bouquet is colored in 7. Heart on card is colored in 8. Pocket on shirt has moved 9. Mirror frame is taller 10. Curtain is shorter 11. Top of table is wider 12. Ribbon on heart is longer

New Years Word Search

R O

A L D F C O U N T D O W N G W W A L D U O Y U G O X X O J M

B K U N V Q B A C R D Y O U I M N X V J N I B D U M I S N Y

A R O G O L O P P B C W H S A N D Q M S F O J Y V N V S M C

O A E O K J C I G S V E J D G B D C G X B K O F M A Z O T N

F P Z S U P B O K R V W L E B N B I F W Q O W Q B M L P J O

P S C T U K A Z E E V M U E N G I R M Q E K V I R E A B C E

N V R I C L L R Y K Y U P W B D V N B E T I N K E R C A R J

J Z F S S V L V O C A S F V A R D S N A J M Q I A C E B T G

Z F E F Q U D Y B A D V I J E Y A V E I L X P D S B M S E M

X I P I X Z R N Q R I U R H D N R T E C G B E B H N F H O S

U F B Z X X O G M C L E E D T X I P E D Y E F J T Z A M N E

F O V G O N P D N E O Y W N E A W A Z C Z H B O R L Q O O V

C G I U I R M J A R H U O P L L Y P V Y S K F W E E I Q N B

Z W A V F Y A Y H I W A R F T I M E S S Q U A R E T G P Q F

G S X I U I S E R F Z R K C I N F O X B M H A X I N R P J I

C D K L U T R N Y A B V S R T P L S F H X C G D S T M C F B

G N Y F A Z Q Q Z W U P X X T O P J Z L Z K A X F E J M K A

D E J F J V R Y B L E N F S S N A V S Y W R L E K W R P A J

M I P H M O B Q X B V N A O E W M S R S T K V S G Q B S I U

R R Z K K F O W W H X S I J U M X Y T A W E S R H F H X G P

S F V J L P C H E E R S X J Y N A Z H M T Y Y A V Z Y E P P

Z A M H T B K H Q H O J Y W P E H G N B G Y M Y C T M L W T

WORD LIST: