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.

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