President’s Letter

Hello Team Loyalty,

First, I would like to say Happy New Year to each of you and all your families. 2022 was not the easiest year we have gone through, but better than 2021. I am looking forward to an even better 2023 with less stress and struggles! I am confident we will put an amazing company event together and share all our wins and celebrate each other. I know we can kick 2023 in the butt, let us do it together!!

Looking over 2022 revenue numbers we had a strong year due to Pawn Service Charges, Scrap Sales and grateful to have a more dedicated Ebay department. The in-store sales were down significantly. Many factors went in to play here I believe the number one issue is the shortage in Team Members. Thank You to everyone that showed up and did your best to deliver the best possible customer service experience for all our clients and do the best you could to build our Loyalty Pawn Team Members relationships. A huge shoutout to our entire management teams this could not have been done without you. THANK YOU. Another factor in the decline in the in-store sales is the government money stopped rolling in, which is entirely out of our control. Closing Sundays also had an impact on these sales. These are the major reasons and identifying them will help us move forward in correcting them.

We have adjusted in-store sales projections down to accurately reflect realistic figures. We feel that a 10% increase over 2022 numbers will give each location the ability to attain these projections. On another note, we saw huge increases in many of our expenses, most of these numbers are out of our control due to inflation and rising costs everywhere. Payroll was our largest expense increase. You spoke with our survey, and we happily listened. However, these numbers do affect the bottom line. We just need to be aware, and we are aware. We are staying a strong and viable company; I am just sharing the ins and outs of the company. I am looking forward to a FUN and prosperous 2023 for the company and the entire Loyalty Pawn Family.

Happy New Year,

Stan Lukowicz, III