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TitleMax, Inc.
Company typePrivate/Employee Owned
IndustryTitle Lending
FoundedSeptember 1998[1] Columbus, Georgia
Headquarters
Savannah, Georgia, U.S.
Number of locations
705 Stores (July, 2011)[2]
Area served
Georgia, Alabama, South Carolina, Tennessee, Florida, Mississippi¸ Missouri, Illinois, Virginia, Arizona, Nevada, Texas[3]
ProductsTitle Loan
ServicesAlternative Financial Services
RevenueIncrease US$ 389.4 million (2010) [4]
Increase US$ 81.7 million (2010) [5]
Number of employees
3,136 (August 2011)
Websitewww.titlemax.biz

TitleMax, Inc. is a privately-owned title lending business based in Savannah, Georgia. The Company has more than 700 stores in twelve states including Georgia, Alabama, South Carolina, Tennessee, Missouri, Illinois, Mississippi, Virginia, Florida, Nevada, Arizona, and Texas.[6] TitleMax serves individuals who generally have limited access to consumer credit from banks, thrift institutions, credit card lenders and other traditional sources of consumer credit.[7] TitleMax offers a title loan product which allows customers to meet their liquidity needs by borrowing against the value of their vehicles while retaining use of their vehicle during the term of the loan.[8]

History

A TitleMax location in Savannah, GA, where the company is based

On September 1, 1998, TitleMax opened the first location in Columbus, Georgia.[9] In October of 1998, TitleMax opened its second location in Savannah, Georgia. Many Savannah locations were then established, and later that year, TitleMax opened the first out-of-state store in Phenix City, Alabama. By July of 2000, TitleMax expanded to open its first South Carolina store in Beaufort, South Carolina, which marked its 28th store. In late 2000, TitleMax established stores in Chattanooga, Tennessee. By June of 2006, TitleMax opened its first Missouri location in Arnold, Missouri, growing the company to 348 stores. By May of 2007, TitleMax reached Peoria, Illinois, totaling 428 locations. Later that year, TitleMax expanded to Pearl, Mississippi, and by the end of 2007, TitleMax opened its 500th location in St. Louis, Missouri, while surpassing $200,000,000 in account receivables.[10] In 2008, TitleMax expanded into Virginia. In April of 2009, TitleMax Holdings, LLC, filed for chapter 11 bankruptcy.[11] According to TitleMax’s lawyer at the time, the cause of the default was attributed to “the maturity of an estimated $165 million loan from Merrill Lynch & Co.”[12] In 2008, Bank of America acquired Merrill Lynch & Co..[13] The attorney of DLA Piper LLP in New York City was quoted in an interview conducted by Bloomberg, “It’s a solvent company, there’s a significant amount of equity over the debt.”[14] In April of 2010, nearly one year after the bankruptcy filing, TitleMax Holdings LLC won court approval for reorganization and was able to exit bankruptcy status.[15] Since reorganization, TitleMax has most recently expanded into Florida, Arizona, Nevada & Texas.[16]


Brands

TitleMax’s parent company, TMX Finance LLC, changed its name from TitleMax Holdings, LLC to TMX Finance LLC as of June 21, 2010.[17] TMX Finance LLC is the parent company to over 700 stores and employs over 3,100 people nationwide. In 587 stores, the Company operates as TitleMax; in 113 stores, the Company uses a TitleBucks brand. TMX Finance LLC also offers a second-lien automobile product in Georgia under the EquityAuto Loan brand, with operations conducted within 121 TitleMax stores and through 4 standalone stores.[18]

File:TitleMax Brands.png
Family of brands under TMX Finance LLC

Industry Overview

Customers use the services provided by the alternative financial services industry for a variety of reasons, including that they often: do not have access to traditional credit-based lenders like banks, thrift institutions and credit card companies; have a sudden and unexpected need for cash due to common financial challenges like medical emergencies, vehicle repairs, divorce, job changes or other unexpected expenses; are self-employed small business owners with an immediate need for short-term working capital; need a small amount of cash immediately and do not have time to wait for a traditional lender to approve a loan; and see such services as a sensible alternative to potentially higher costs and negative credit consequences of other alternatives, such as overdraft fees, bounced check fees or late fees.[19]

Acquisition & Expansion

Correlating to their growth plans, TMX Finance LLC recently “reopened its 13.25% secured notes due 2015 with an add-on of $60 million non-fungible bonds.”[20] During the second fiscal quarter ended June 30, 2011, TMX Finance LLC opened or acquired 89 new stores. In Texas, 49 stores were opened, in addition, TitleMax entered Nevada, Arizona and Florida by acquiring 18 stores in Las Vegas, opening 6 stores in Tucson and opening 1 store in Pensacola.[21] In May 2011, TMX Finance LLC, closed on an asset purchase agreement Cashback Title Loans, Inc., in which the TMX Finance LLC acquired all the title loans related to Cashback locations in Nevada.[22] In June of 2011, TMX Finance acquired 14 Rainbow Title Loan Company locations – 6 of which were in Las Vegas, Nevada, 4 in St. Louis, Missouri, and 4 in Kansas City, Missouri. Also in 2011, TMX Finance LLC acquired BudgetLine Cash Advance, LLC, and BudgetLine Cash of Missouri, LLC.

TMX Finance Job Qualifications

TMX Finance is an Equal Opportunity Employer. The policy of TMX Finance is to extend opportunities to qualified applicants and employees on an equal basis regardless of an individual's age, race, color, sex, religion, national origin, disability, sexual orientation, genetic information or any other protected category recognized by state and federal laws.[23]

References

  1. ^ [http://www.sec.gov/Archives/edgar/data/1511967/000119312511153313/d10q.htm TMX Finance LLC. Amendement No. 2 to form S-4, Filed April 19, 2011, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, p. 29.
  2. ^ TMX Finance LLC. Form 8-K, Filed July, 19, 2011, “Recent Results”, p. 2.
  3. ^ TMX Finance LLC. Form 8-K, Filed July, 19, 2011, “Recent Results”, p. 2.
  4. ^ TMX Finance LLC. Amendement No. 2 to form S-4, Filed April 19, 2011, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, p. 29.
  5. ^ TMX Finance LLC. Amendement No. 2 to form S-4, Filed April 19, 2011, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, p. 29.
  6. ^ TMX Finance LLC. Form 8-K, Filed July, 19, 2011, “Recent Results”, p. 2.
  7. ^ TMX Finance LLC. Amendment No.2 to Form S-4, Filed April 19, 2011, “Summary: The Company”, p. 1.
  8. ^ TMX Finance LLC. Amendment No.2 to Form S-4, Filed April 19, 2011, “Summary: The Company”, p. 1.
  9. ^ [http://www.sec.gov/Archives/edgar/data/1511967/000119312511153313/d10q.htm TMX Finance LLC. Amendement No. 2 to form S-4, Filed April 19, 2011, “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, p. 29.
  10. ^ [http://www.sec.gov/Archives/edgar/data/1511967/000119312511153313/d10q.htm TMX Finance LLC. Form S-4, Filed February 11, 2011, “Summary Historical Financial and Operating Data”, p. 9.
  11. ^ Larson, Eric. “Titlemax Seeks Bankruptcy Protection in Georgia (Update2)”, “Bloomberg,” April 20, 2009, accessed August 3, 2011.
  12. ^ Larson, Eric. “Titlemax Seeks Bankruptcy Protection in Georgia (Update2)”, “Bloomberg,” April 20, 2009, accessed August 3, 2011.
  13. ^ Bruno, Joe. "Bank of America buys Merrill Lynch", "The Washington Times", September 15, 2008, accessed August 3, 2011.
  14. ^ Larson, Eric. “Titlemax Seeks Bankruptcy Protection in Georgia (Update2)”, “Bloomberg,” April 20, 2009, accessed August 3, 2011.
  15. ^ Jeffrey, Donald. “TitleMax Reorganization Plan Confirmed by Bankruptcy Judge, Attorney Says”, "Bloomberg," April 12, 2010, accessed August 3, 2011.
  16. ^ [http://www.sec.gov/Archives/edgar/data/1511967/000119312511153313/d10q.htm TMX Finance LLC. Form 8-K, Filed July, 19, 2011, “Recent Results”, p. 2.
  17. ^ TMX Finance LLC. Form 10-Q, Filed May 27, 2011, “Nature of Business”, p. 6.
  18. ^ TMX Finance LLC. Form 10-Q, Filed May 27, 2011, “Nature of Business”, p. 6.
  19. ^ TMX Finance LLC. Amendment No.2 to Form S-4, Filed April 19, 2011, “Industry Overview”, p. 40.
  20. ^ Standard & Poor’s: Leveraged Commentary & Data. “TitleMax places 13.25% add-on bonds at 107 to yield 11%; terms”, “Standard & Poor’s,” July 19, 2011, accessed July 26, 2011.
  21. ^ TMX Finance LLC. Form 8-K, Filed July, 19, 2011, “Recent Results”, p. 2.
  22. ^ TMX Finance LLC. Form 10-Q, Filed May 27, 2011, “Notes to Consolidated Financial Statements (unaudited)”, p.20.
  23. ^ TitleMax. “TitleMax: Careers’, January 1, 2010, accessed July 28, 2011.
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