FirstCash, Inc. (the “Company”) (Nasdaq: FCFS), the leading
international operator of approximately 2,750 retail pawn stores in
the U.S. and Latin America, today announced operating results for
the fourth quarter and full-year ended December 31, 2020, and
an update on the impact of COVID-19 on its business. In addition,
the Board of Directors declared a $0.27 per share quarterly cash
dividend to be paid in February 2021 and authorized an additional
$100 million of common share repurchases.
Mr. Rick Wessel, chief executive officer,
stated, “Our fourth quarter operating results demonstrated the
resiliency of our business model and the continued dedication of
our employees to safely serve customers in an unprecedented
operating environment. Retail sales during the quarter were
stronger than expected, with sales margins at record levels.
Coupled with the ongoing recovery of pawn lending activity and
continued expense discipline, operating profitability improved
significantly compared to the third quarter.
“Despite the challenges of 2020, FirstCash
continued to invest in long-term growth with the addition of 137
stores during the year. We opened 75 de novo stores and acquired 40
stores in Latin America this year, and during the fourth quarter,
acquired 22 U.S. stores located in Texas and the Carolinas. The
Company’s strong balance sheet and cash flows also funded
additional repurchases of $107 million of common stock throughout
2020, including $27 million in the fourth quarter.”
This release contains adjusted earnings
measures, which exclude debt extinguishment costs and certain other
extraordinary and/or non-cash expenses, which are non-GAAP
financial measures. Please refer to the descriptions and
reconciliations to GAAP of these and other non-GAAP financial
measures at the end of this release.
|
Three Months Ended December 31, |
|
As Reported (GAAP) |
|
Adjusted (Non-GAAP) |
In thousands, except per share
amounts |
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue |
$ |
392,158 |
|
|
$ |
498,362 |
|
|
$ |
392,158 |
|
|
$ |
498,362 |
|
Net income |
$ |
32,726 |
|
|
$ |
54,154 |
|
|
$ |
34,532 |
|
|
$ |
53,836 |
|
Diluted earnings per
share |
$ |
0.79 |
|
|
$ |
1.27 |
|
|
$ |
0.84 |
|
|
$ |
1.26 |
|
EBITDA (non-GAAP measure) |
$ |
60,848 |
|
|
$ |
90,292 |
|
|
$ |
62,105 |
|
|
$ |
89,823 |
|
Weighted-average diluted
shares |
41,331 |
|
|
42,760 |
|
|
41,331 |
|
|
42,760 |
|
|
Twelve Months Ended December 31, |
|
As Reported (GAAP) |
|
Adjusted (Non-GAAP) |
In thousands, except per share
amounts |
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue |
$ |
1,631,284 |
|
|
$ |
1,864,439 |
|
|
$ |
1,631,284 |
|
|
$ |
1,864,439 |
|
Net income |
$ |
106,579 |
|
|
$ |
164,618 |
|
|
$ |
125,153 |
|
|
$ |
167,900 |
|
Diluted earnings per
share |
$ |
2.56 |
|
|
$ |
3.81 |
|
|
$ |
3.01 |
|
|
$ |
3.89 |
|
EBITDA (non-GAAP measure) |
$ |
213,608 |
|
|
$ |
299,495 |
|
|
$ |
236,974 |
|
|
$ |
303,782 |
|
Weighted-average diluted
shares |
41,600 |
|
|
43,208 |
|
|
41,600 |
|
|
43,208 |
|
Consolidated Earnings Highlights
- Due primarily to
the impacts of COVID-19, diluted earnings per share for the fourth
quarter decreased 38% on a GAAP basis and 33% on an adjusted
non-GAAP basis compared to the prior-year quarter. For the full
year, diluted earnings per share decreased 33% on a GAAP basis and
23% on an adjusted non-GAAP basis compared to the prior year.
Comparative results for the quarter and full year were also
impacted by the strategic exit from non-core consumer lending
operations in 2020.
- Earnings results
reflected expected revenue declines of 21% in the fourth quarter
and 13% for the full year, which primarily related to the impacts
of COVID-19 on pawn lending and reduced inventories. Despite the
revenue contraction, the Company saw significant improvement in
many key operating metrics during the fourth quarter:
- Pawn loan demand
increased sequentially in the fourth quarter with consolidated pawn
loans up 14% compared to the third quarter, driving a similar
sequential increase in pawn fees.
- Retail sales
margins were a record 42% in the fourth quarter, and significantly
improved compared to 36% margins in the fourth quarter of last
year. For the full year, retail margins were also a record at 40%,
compared to 37% in 2019.
- Inventory levels
began to stabilize, increasing 13% sequentially in the fourth
quarter compared to the third quarter. Inventory growth reflected
the rebound in pawn activity coupled with the Company’s ongoing
focus on merchandise buys, which increased 10% over the prior-year
quarter.
- Retail sales
increased sequentially by 9% compared to the third quarter while
gross profit from retail sales increased by 11% driven by increased
margins.
- The Company
continued its efforts to optimize expenses which resulted in a 10%
reduction in store-level and administrative expenses compared to
the prior-year quarter.
- Cash flow from
operating activities for 2020 totaled $222 million while adjusted
free cash flow, a non-GAAP financial measure, was $293 million for
2020.
Acquisitions and Store Opening
Highlights
- The Company
acquired 22 U.S. pawn stores during the fourth quarter of 2020,
which included 12 stores in Texas, nine stores in North Carolina
and one store in South Carolina.
- A total of 11 de
novo pawn stores were opened in Latin America during the fourth
quarter, which included 10 locations in Mexico and one in
Guatemala.
- For the full year
of 2020, a total of 137 stores were added, composed of 75 de novo
stores and 40 acquired stores in Latin America and 22 acquired
stores in the U.S.
- As of December 31,
2020, the Company operated 2,748 stores, with 1,702 stores in Latin
America, representing 62% of the total store base, and 1,046 stores
in the U.S. that are located in 24 states and the District of
Columbia. The Latin American locations include 1,616 stores in
Mexico, 59 stores in Guatemala, 14 stores in Colombia and 13 stores
in El Salvador.
U.S. Pawn Operations
- During the fourth
quarter, all 1,046 U.S. stores were operational, excluding a very
limited number of temporary closures related to the Company’s
COVID-19 safety protocols.
- Pawn loan
originations were down 10% for the quarter and 12% in December
compared to the prior-year periods, representing a significant
rebound since the second quarter when year-over-year originations
were down approximately 48%. With improved origination activity,
pawn balances grew sequentially, and at December 31, pawn loans
were down 18% in total and 19% on a same-store basis compared to
the prior year, versus the 40% decrease at the end of June and the
30% decrease at the end of September. Resulting total and
same-store pawn fees were down 23% in the fourth quarter compared
to the prior year, but improved over the 30% decreases in the third
quarter.
- To augment retail
inventories, the Company continued to emphasize direct “buys” of
merchandise purchased from customers, and saw a 10% increase in the
dollar volume of fourth quarter buys on a same-store basis compared
to last year. Purchased inventories can be put up for sale faster
and typically at better margins than forfeited collateral. Total
same-store customer fundings, which are pawn loan originations plus
buys, were down just 7% compared to the fourth quarter a year
ago.
- Retail sales
margins continued to expand, with the fourth quarter margin of 45%
representing a sequential increase from the 44% margin in the third
quarter and a significant improvement over the 39% margin in the
same quarter last year. The incremental strength in retail margins
reflect continued retail demand for value-priced pre-owned
merchandise, increased buying of fresh merchandise from customers
and lower levels of aged inventory, all of which limited the need
for normal discounting. Full-year retail sales margins increased to
42% for 2020 compared to 38% in the prior year.
- Inventory levels at
the end of the fourth quarter increased 13% compared to the
previous sequential quarter, when normal trends see a sequential
decline in inventory levels. The sequential increase was due
primarily to rebounding pawn activity and the continued focus on
buying merchandise from customers. While average fourth quarter
inventory levels were down 30% compared to the prior year, retail
sales in the fourth quarter were down only 17% in total and 18% on
same-store basis compared to the prior-year quarter.
- Full-year total
retail sales were essentially flat with the prior year, reflecting
the durability of the pawn business despite the pandemic and
competition from online retailers. The sales results generated
inventory turnover rates of 3.2 times for 2020 compared to 2.8
times in 2019. Aged inventories were only 2% of total inventories
at December 31, which improved compared to 3% a year ago.
- Wholesale scrap
jewelry margins improved to 11% in the fourth quarter and 13% for
the full year compared to 9% and 8% in the respective prior-year
periods, as the Company benefited from increased gold prices. Net
revenue from non-core scrap jewelry sales decreased 33% for the
quarter and 1% year-to-date compared to the respective prior-year
periods, primarily as a result of lower inventory levels.
- Store operating
expenses decreased 9% in total and on a same-store basis compared
to the prior-year quarter, reflecting the continued expense
optimization efforts from reduced staffing levels through normal
attrition, reduced store hours and other store-level cost saving
initiatives. For the full year, store operating expenses decreased
4% in total and 3% on a same-store basis compared to the prior
year.
- Segment pre-tax
operating margin was 21% for the fourth quarter of 2020, a
significant sequential improvement versus the 16% segment pre-tax
operating margin for the previous sequential quarter and down only
slightly compared to the 22% segment pre-tax operating margin for
the prior-year quarter.
Note: Certain growth rates in “Latin America
Pawn Operations” below are calculated on a constant currency basis,
a non-GAAP financial measure defined at the end of this release.
The average Mexican peso to U.S. dollar exchange rate for the
fourth quarter of 2020 was 20.6 pesos / dollar, an unfavorable
change of 7% versus the prior-year period, and for the twelve month
period ended December 31, 2020 was 21.5 pesos / dollar, an
unfavorable change of 11% versus the comparable prior-year
period.
Latin America Pawn
Operations
-
Almost all of the Company’s stores in Latin America are currently
open and operating. During the fourth quarter, operations were
nominally impacted by restricted operating days/hours in certain
markets and other short-term closings due primarily to COVID-19
safety protocols.
-
Pawn loan origination volumes in Latin America continued to improve
during the fourth quarter as same-store origination volumes in
Mexico were down 13% for the quarter and 9% in December, which
represented a continued recovery from the second and third quarter
results. Resulting pawn loans outstanding at December 31 were down
13% on a U.S. dollar translated basis and 8% on a constant currency
basis compared to the prior year, while same-store pawn loans at
year end decreased 15% on a U.S. dollar translated basis and 10% on
a constant currency basis.
-
Pawn fees in the fourth quarter decreased 17% in total, or 12% on a
constant currency basis, as compared to the prior-year quarter, but
were improved compared to the third quarter. On a same-store basis,
pawn fees decreased 19% on a U.S. dollar basis and were down 14% on
a constant currency basis. For the full year, pawn fees decreased
21% and 12% compared to the prior year on a U.S. dollar and
constant currency basis, respectively.
-
Retail sales in the fourth quarter were impacted by a combination
of lower beginning inventory levels, less government stimulus than
in the U.S. markets and increased jewelry scrapping given the
impact of the pandemic. Resulting retail sales for the fourth
quarter decreased 30%, or 26% on a constant currency basis,
compared to the prior-year quarter. Same-store retail sales
decreased 32% on a U.S. dollar basis and 28% on a constant currency
basis. For the full year, retail sales decreased 22% and 13% on a
U.S. dollar and constant currency basis, respectively, compared to
the prior year.
-
Partially offsetting lower total retail sales, retail margins
continued to strengthen and were 38% in the fourth quarter compared
to 32% in the fourth quarter of 2019. For the full year, retail
margins were 37% compared to 34% in the prior year. As in the U.S.,
the improved margins reflect fresher inventories and continued
demand for popular value priced consumer electronics. As a result,
gross profit from retail sales declined only 18% on a U.S. dollar
basis and were down 13% on a constant currency basis in the fourth
quarter. For the full year, gross profit from retail sales
decreased 16% and 7% on a U.S. dollar and constant currency basis,
respectively.
-
Further reflecting the improved retail efficiency, inventories
turned a record 4.3 times in 2020 compared to 3.8 turns in 2019,
while inventories aged greater than one year as of December 31,
2020 remained extremely low at 2%.
-
Net revenue from scrap jewelry sales was $2 million for the quarter
compared to $1 million in the prior-year period as a result of
increased margins and higher volumes from additional scraping
activity, primarily in markets that were temporarily closed for
retail activity due to COVID-19 restrictions.
-
Store operating expenses decreased 12%, or 6% on a constant
currency basis, while same-store operating expenses decreased 16%,
or 10% on a constant currency basis, compared to the prior-year
quarter. For the full year, store operating expenses decreased 10%
and less than 1% compared to the prior year on a U.S. dollar and
constant currency basis, respectively. Dollar-denominated and
constant currency same-store operating expenses decreased 15% and
6%, respectively, compared to the prior year. The reduction in
operating expenses reflects the continued expense optimization
efforts from reduced staffing levels through normal attrition,
reduced store hours and other store level cost saving
initiatives.
- Driven by improvements in gross
margins and expense savings, segment pre-tax operating margin was
21% for the fourth quarter of 2020 (20% on a constant currency
basis), which was a sequential improvement over the 19% segment
pre-tax operating margin for the previous sequential quarter and
was equal to the prior-year segment margin despite the revenue
contraction experienced in 2020.
Liquidity and Shareholder
Returns
- The Company’s
strong liquidity position includes cash balances at year end of $66
million and anticipated availability under bank lines of credit of
approximately $200 million during the first quarter of 2021.
- The Company
generated $222 million in cash flow from operations and $293
million in adjusted free cash flow during 2020 compared to $232
million of cash flow from operations and $223 million of adjusted
free cash flow during 2019.
- The Company
utilized its cash flow and liquidity to invest $127 million in
acquisitions, capital expenditures, primarily for new stores, and
purchases of store real estate during 2020, which included $69
million of such investments in the fourth quarter alone.
- The Board of
Directors declared a $0.27 per share first quarter cash dividend on
common shares outstanding, which will be paid on February 26,
2021 to stockholders of record as of February 12, 2021. This
represents an annualized cash dividend of $1.08 per share. Any
future dividends are subject to approval by the Company’s Board of
Directors.
- During the fourth
quarter, the Company repurchased 446,000 shares at an aggregate
cost of $27 million. For the full year, the Company repurchased
1,427,000 shares at an aggregate cost of $107 million.
- On January 27,
2021, the Board of Directors approved a new share repurchase
authorization of up to $100 million of common shares. The Company
had $22 million remaining under its previous share repurchase
authorization, bringing the total amount of currently authorized
share repurchases to $122 million. Future share repurchases are
subject to expected liquidity, acquisition opportunities, debt
covenant restrictions and other relevant factors.
2021 Outlook
Given continued uncertainties related to
COVID-19, including the timeline for full reopening of the
economies in the markets the Company serves and the related impacts
from governmental responses, the Company is not currently providing
earnings guidance. The following factors are expected to impact
operating trends in 2021:
- Impact of COVID-19:
The extent to which COVID-19 continues to impact the Company’s
operations will depend on future developments, which are uncertain
and cannot be predicted with confidence, including the ongoing
duration and severity of the outbreak and governmental responses
including operating restrictions and economic stimulus programs.
Additionally, the Company also continues to experience COVID-19
related operating restrictions in certain Latin American markets.
- U.S. pawn loan
demand dampened slightly in the first two weeks of January 2021,
which the Company attributes to additional federal stimulus
payments in late December and early January ($600 for most eligible
people), which created additional short-term liquidity for many
U.S. customers. While same-store origination volumes were down
year-over-year by approximately 25% to 30% during the first two
weeks of January, originations in the second half of the month have
quickly rebounded to levels closer to what the Company experienced
during the fourth quarter of 2020. Resulting same-store pawn loans,
which were down 19% at year end, are down 24% as of January 27th
compared to the prior year.
- While the most
recent round of U.S. stimulus payments appear to be significantly
less impactful compared to the initial stimulus payments in 2020,
the normalization of loan demand will likely be tempered in the
short term. Other variables which could affect the pace of recovery
include the timing and size of first quarter income tax refunds and
the scope and duration of additional stimulus programs currently
under legislative consideration.
- In Latin America,
pawn loan demand remains steady with same-store originations and
balances thus far in January similar to December results. While
there continue to be operating restrictions, such as reduced hours
and weekend closures in several markets, there still appear to be
no significant consumer stimulus payment programs under
consideration in these countries.
- While inventory
levels in both the U.S. and Latin America have generally
stabilized, they remain below historical levels, which is expected
to negatively impact 2021 retail sales compared to the prior year,
especially in the first half of 2021. Partially offsetting lower
sales volumes, retail margin trends for January remain consistent
with the record margins experienced in the fourth quarter of
2020.
- Currency
volatility: Global economic uncertainty due to the COVID-19
pandemic has increased the volatility of certain currencies,
including the Mexican peso, in relation to the U.S. dollar. The
peso traded in a range of approximately 18.5 - 25.0 to 1 during
2020 with an average exchange rate of 21.5 to 1. For 2021, the
Company estimates that each full Mexican peso change in the
exchange rate to the U.S. dollar represents approximately $0.08 to
$0.10 per share of annualized earnings impact to the Company.
- Income tax rate:
For the full year of 2021, the effective income tax rate, under
current codes in the U.S. and Mexico, is expected to range from 27%
to 28% compared to 25.8% in 2020.
- New store openings, consolidations
and repositioning: Despite the challenges presented by COVID-19,
including significant construction, utility and permitting delays,
the Company has a solid pipeline of additional stores leased, under
construction or completed and awaiting permits. While there
continue to be COVID-19 related operating challenges in many
expansion markets, the Company expects 50 to 60 new store openings
in 2021. In addition, the Company believes there are significant
opportunities for accretive consolidations, expansions and/or
relocations of acquired small format stores in Mexico, for which it
expects to complete repositioning 20 to 30 of such units.
Additional Commentary and
Analysis
Mr. Wessel further commented on the 2020
results, “We learned many things managing the business through the
challenges of the COVID-19 pandemic. The Company focused first on
employee and customer safety and also made it a priority to retain
our skilled workforce necessary to support the business as it
recovers. We also learned to operate the business more efficiently
in many ways, such as operating with reduced, but faster turning
inventories which generated higher gross retail margins.
Additionally, we focused on optimizing both store and corporate
operating costs. Although some of these costs, such as employee
staffing, will grow in 2021 versus last year as the business
normalizes, we believe that we will continue to realize savings and
maintain higher long-term profit margins as a result of these
initiatives.
“As we enter 2021, pawn demand in Latin America,
and Mexico in particular, continues to strengthen with new loan
originations approaching prior-year levels. While U.S. pawn demand
has dampened slightly in early January, due primarily to government
stimulus payments, we continue to believe that the overall impact
of COVID-19 and government stimulus payments will be less impactful
to the business than what we experienced in 2020.
“Our store growth was especially impressive
during 2020, given its many challenges. Safely opening 75 new
stores in three countries in the midst of a pandemic was a
remarkable achievement and was due to the incredible efforts of our
best in class store development and operations teams. In addition,
we successfully executed on several acquisitions in 2020, which
added 40 stores in Mexico and another 22 stores in the U.S. Given
the impact of the pandemic and the fourth quarter timing of the
U.S. additions, these acquisitions were nominally accretive to our
2020 results, but are expected to provide a more meaningful boost
in revenue and earnings in 2021 and beyond.
“FirstCash’s total store base now stands at
approximately 2,750 locations and we see a pipeline for continued
growth through further acquisitions and de novo openings in 2021.
There is also opportunity to optimize and operate our store base
more efficiently through selective store consolidations, primarily
in Mexico, where we have acquired a significant number of locations
over the past several years. We believe that there is the potential
for 20 to 30 store consolidations and/or relocations in 2021 where
we can increase retail visibility with more attractive locations
while also reducing costs and enhancing profitability. We also
believe there are opportunities to negotiate better long-term store
leases in the current retail environment, and we continue to
acquire store real estate when it makes sense strategically and is
financially accretive. As of year end, we owned approximately 200
of our locations, primarily in our key U.S. markets.
“Despite the impacts of the pandemic, the
Company’s balance sheet and cash flows remain strong. In August, we
refinanced our senior notes at a significantly lower interest rate
while extending the maturity to the year 2028. Even with the store
openings, acquisitions and share repurchases during 2020, we
reduced year-end net debt outstanding by $31 million compared to a
year ago. We believe FirstCash’s balance sheet and cash flows can
support the expected further recovery in pawn loans and inventories
and fund continued store growth, while also maintaining our
dividend and continuing our stock repurchase program.
“In summary, we are very proud of our
accomplishments in 2020 and believe that we are well positioned for
improved performance in 2021,” concluded Rick Wessel, chief
executive officer.
About FirstCash
FirstCash is the leading international operator
of pawn stores with approximately 2,750 retail pawn locations and
17,000 employees in 24 U.S. states, the District of Columbia and
four countries in Latin America including Mexico, Guatemala, El
Salvador and Colombia. FirstCash focuses on serving cash and credit
constrained consumers through its retail pawn locations, which buy
and sell a wide variety of jewelry, electronics, tools, appliances,
sporting goods, musical instruments and other merchandise, and make
small consumer pawn loans secured by pledged personal property.
FirstCash is a component company in both the
Standard & Poor’s MidCap 400 Index® and the
Russell 2000 Index®. FirstCash’s common stock
(ticker symbol “FCFS”) is traded on the Nasdaq,
the creator of the world’s first electronic stock market. For
additional information regarding FirstCash and the services it
provides, visit FirstCash’s website located at
http://www.firstcash.com.
Forward-Looking
Information
This release contains forward-looking statements
about the business, financial condition and prospects of FirstCash,
Inc. and its wholly owned subsidiaries (together, the “Company”).
Forward-looking statements, as that term is defined in the Private
Securities Litigation Reform Act of 1995, can be identified by the
use of forward-looking terminology such as “outlook,” “believes,”
“projects,” “expects,” “may,” “estimates,” “should,” “plans,”
“targets,” “intends,” “could,” “would,” “anticipates,” “potential,”
“confident,” “optimistic,” or the negative thereof, or other
variations thereon, or comparable terminology, or by discussions of
strategy, objectives, estimates, guidance, expectations and future
plans. Forward-looking statements can also be identified by the
fact that these statements do not relate strictly to historical or
current matters. Rather, forward-looking statements relate to
anticipated or expected events, activities, trends or results.
Because forward-looking statements relate to matters that have not
yet occurred, these statements are inherently subject to risks and
uncertainties.
While the Company believes the expectations
reflected in forward-looking statements are reasonable, there can
be no assurances such expectations will prove to be accurate.
Security holders are cautioned such forward-looking statements
involve risks and uncertainties. Certain factors may cause results
to differ materially from those anticipated by the forward-looking
statements made in this release. Such factors may include, without
limitation, the risks, uncertainties and regulatory developments
(1) related to the COVID-19 pandemic, which include risks and
uncertainties related to the current unknown duration and severity
of the COVID-19 pandemic, including any variants of the COVID-19
virus, the timing, availability and efficacy of the COVID-19
vaccines in the jurisdictions in which the Company operates, the
impact of governmental responses that have been, and may in the
future be, imposed in response to the pandemic, including stimulus
programs which could adversely impact lending demand and
regulations which could adversely affect the Company’s ability to
continue to fully operate, potential changes in consumer behavior
and shopping patterns which could impact demand for both the
Company’s pawn loan and retail products, the deterioration in the
economic conditions in the United States and Latin America which
potentially could have an impact on discretionary consumer
spending, and currency fluctuations, primarily involving the
Mexican peso and (2) those risks and other factors discussed and
described in the Company’s most recent Annual Report on Form 10-K
filed with the Securities and Exchange Commission (the “SEC”),
including the risks described in Part 1, Item 1A, “Risk Factors”
thereof, and in the other reports filed subsequently by the Company
with the SEC. Many of these risks and uncertainties are beyond the
ability of the Company to control, nor can the Company predict, in
many cases, all of the risks and uncertainties that could cause its
actual results to differ materially from those indicated by the
forward-looking statements. The forward-looking statements
contained in this release speak only as of the date of this
release, and the Company expressly disclaims any obligation or
undertaking to report any updates or revisions to any such
statement to reflect any change in the Company’s expectations or
any change in events, conditions or circumstances on which any such
statement is based, except as required by law.
FIRSTCASH,
INC.CONSOLIDATED STATEMENTS OF
INCOME(unaudited, in thousands, except per share
amounts)
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenue: |
|
|
|
|
|
|
|
Retail merchandise sales |
$ |
256,507 |
|
|
$ |
331,208 |
|
|
$ |
1,075,518 |
|
|
$ |
1,175,561 |
|
Pawn loan fees |
113,842 |
|
|
143,830 |
|
|
457,517 |
|
|
564,824 |
|
Wholesale scrap jewelry sales |
21,796 |
|
|
21,524 |
|
|
96,233 |
|
|
103,876 |
|
Consumer loan and credit services fees |
13 |
|
|
1,800 |
|
|
2,016 |
|
|
20,178 |
|
Total revenue |
392,158 |
|
|
498,362 |
|
|
1,631,284 |
|
|
1,864,439 |
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of retail merchandise sold |
147,651 |
|
|
211,643 |
|
|
641,087 |
|
|
745,861 |
|
Cost of wholesale scrap jewelry sold |
18,524 |
|
|
19,125 |
|
|
79,546 |
|
|
96,072 |
|
Consumer loan and credit services loss provision |
(8 |
) |
|
330 |
|
|
(488 |
) |
|
4,159 |
|
Total cost of revenue |
166,167 |
|
|
231,098 |
|
|
720,145 |
|
|
846,092 |
|
|
|
|
|
|
|
|
|
Net revenue |
225,991 |
|
|
267,264 |
|
|
911,139 |
|
|
1,018,347 |
|
|
|
|
|
|
|
|
|
Expenses and other
income: |
|
|
|
|
|
|
|
Store operating expenses |
135,546 |
|
|
150,521 |
|
|
562,158 |
|
|
595,539 |
|
Administrative expenses |
25,289 |
|
|
27,908 |
|
|
110,931 |
|
|
122,334 |
|
Depreciation and amortization |
10,681 |
|
|
10,846 |
|
|
42,105 |
|
|
41,904 |
|
Interest expense |
7,391 |
|
|
8,195 |
|
|
29,344 |
|
|
34,035 |
|
Interest income |
(331 |
) |
|
(267 |
) |
|
(1,540 |
) |
|
(1,055 |
) |
Merger and acquisition expenses |
1,107 |
|
|
256 |
|
|
1,316 |
|
|
1,766 |
|
(Gain) loss on foreign exchange |
(755 |
) |
|
(1,713 |
) |
|
884 |
|
|
(787 |
) |
Loss on extinguishment of debt |
— |
|
|
— |
|
|
11,737 |
|
|
— |
|
Write-offs and impairments of certain lease intangibles and other
assets |
3,956 |
|
|
— |
|
|
10,505 |
|
|
— |
|
Total expenses and other income |
182,884 |
|
|
195,746 |
|
|
767,440 |
|
|
793,736 |
|
|
|
|
|
|
|
|
|
Income before income
taxes |
43,107 |
|
|
71,518 |
|
|
143,699 |
|
|
224,611 |
|
|
|
|
|
|
|
|
|
Provision for income taxes |
10,381 |
|
|
17,364 |
|
|
37,120 |
|
|
59,993 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
32,726 |
|
|
$ |
54,154 |
|
|
$ |
106,579 |
|
|
$ |
164,618 |
|
|
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.79 |
|
|
$ |
1.27 |
|
|
$ |
2.57 |
|
|
$ |
3.83 |
|
Diluted |
0.79 |
|
|
1.27 |
|
|
2.56 |
|
|
3.81 |
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
41,218 |
|
|
42,534 |
|
|
41,502 |
|
|
43,020 |
|
Diluted |
41,331 |
|
|
42,760 |
|
|
41,600 |
|
|
43,208 |
|
|
|
|
|
|
|
|
|
Dividends declared per common
share |
$ |
0.27 |
|
|
$ |
0.27 |
|
|
$ |
1.08 |
|
|
$ |
1.02 |
|
FIRSTCASH,
INC.CONSOLIDATED BALANCE
SHEETS(unaudited, in thousands)
|
December 31, |
|
2020 |
|
2019 |
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
65,850 |
|
|
$ |
46,527 |
|
Fees and service charges
receivable |
41,110 |
|
|
46,686 |
|
Pawn loans |
308,231 |
|
|
369,527 |
|
Consumer loans, net |
— |
|
|
751 |
|
Inventories |
190,352 |
|
|
265,256 |
|
Income taxes receivable |
9,634 |
|
|
875 |
|
Prepaid expenses and other
current assets |
9,388 |
|
|
11,367 |
|
Total current assets |
624,565 |
|
|
740,989 |
|
|
|
|
|
Property and equipment,
net |
373,667 |
|
|
336,167 |
|
Operating lease right of use
asset |
298,957 |
|
|
304,549 |
|
Goodwill |
977,381 |
|
|
948,643 |
|
Intangible assets, net |
83,651 |
|
|
85,875 |
|
Other assets |
9,818 |
|
|
11,506 |
|
Deferred tax assets |
4,158 |
|
|
11,711 |
|
Total assets |
$ |
2,372,197 |
|
|
$ |
2,439,440 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Accounts payable and accrued
liabilities |
$ |
81,917 |
|
|
$ |
72,398 |
|
Customer deposits |
34,719 |
|
|
39,736 |
|
Income taxes payable |
1,148 |
|
|
4,302 |
|
Lease liability, current |
88,622 |
|
|
86,466 |
|
Total current liabilities |
206,406 |
|
|
202,902 |
|
|
|
|
|
Revolving unsecured credit
facilities |
123,000 |
|
|
335,000 |
|
Senior unsecured notes |
492,916 |
|
|
296,568 |
|
Deferred tax liabilities |
71,173 |
|
|
61,431 |
|
Lease liability,
non-current |
194,887 |
|
|
193,504 |
|
Total liabilities |
1,088,382 |
|
|
1,089,405 |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
Common stock |
493 |
|
|
493 |
|
Additional paid-in capital |
1,221,788 |
|
|
1,231,528 |
|
Retained earnings |
789,303 |
|
|
727,476 |
|
Accumulated other comprehensive loss |
(118,432 |
) |
|
(96,969 |
) |
Common stock held in treasury, at cost |
(609,337 |
) |
|
(512,493 |
) |
Total stockholders’ equity |
1,283,815 |
|
|
1,350,035 |
|
Total liabilities and stockholders’ equity |
$ |
2,372,197 |
|
|
$ |
2,439,440 |
|
FIRSTCASH, INC.OPERATING
INFORMATION(UNAUDITED)
The Company’s reportable segments are as
follows:
- U.S.
operations
- Latin America operations - includes
operations in Mexico, Guatemala, El Salvador and Colombia
The Company provides revenues, cost of revenues,
store operating expenses, pre-tax operating income and earning
assets by segment. Store operating expenses include salary and
benefit expense of store-level employees, occupancy costs, bank
charges, security, insurance, utilities, supplies and other costs
incurred by the stores.
U.S. Operations Segment Results
The following table details earning assets,
which consist of pawn loans, inventories and unsecured consumer
loans, net, as well as other earning asset metrics of the U.S.
operations segment as of December 31, 2020 as compared to
December 31, 2019 (dollars in thousands, except as otherwise
noted):
|
As of December 31, |
|
Increase / |
|
2020 |
|
2019 |
|
(Decrease) |
U.S. Operations
Segment |
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
Pawn loans |
$ |
220,391 |
|
|
$ |
268,793 |
|
|
(18) |
|
% |
Inventories |
|
136,109 |
|
|
|
181,320 |
|
|
(25) |
|
% |
Consumer loans, net (1) |
|
— |
|
|
|
751 |
|
|
(100) |
|
% |
|
$ |
356,500 |
|
|
$ |
450,864 |
|
|
(21) |
|
% |
|
|
|
|
|
|
|
|
Average outstanding pawn loan
amount (in ones) |
$ |
198 |
|
|
$ |
177 |
|
|
12 |
|
% |
|
|
|
|
|
|
|
|
Composition of pawn
collateral: |
|
|
|
|
|
|
|
General merchandise |
33 |
% |
|
34 |
% |
|
|
Jewelry |
67 |
% |
|
66 |
% |
|
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
Composition of
inventories: |
|
|
|
|
|
|
|
General merchandise |
46 |
% |
|
47 |
% |
|
|
Jewelry |
54 |
% |
|
53 |
% |
|
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
Percentage of inventory aged
greater than one year |
2 |
% |
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
Inventory turns (trailing
twelve months cost of merchandise sales divided by average
inventories) |
3.2 times |
|
2.8 times |
|
|
(1) Effective June 30, 2020, the Company ceased
offering unsecured consumer lending and credit services products,
which include all payday and installment loans, in the U.S.
FIRSTCASH, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED)
The following table presents segment pre-tax
operating income and other operating metrics of the U.S. operations
segment for the three months ended December 31, 2020 as
compared to the three months ended December 31, 2019 (dollars
in thousands):
|
Three Months Ended |
|
|
|
December 31, |
|
Increase / |
|
2020 |
|
2019 |
|
(Decrease) |
U.S. Operations
Segment |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
Retail merchandise sales |
$ |
163,753 |
|
|
$ |
198,302 |
|
|
(17 |
) |
% |
Pawn loan fees |
|
74,500 |
|
|
|
96,268 |
|
|
(23 |
) |
% |
Wholesale scrap jewelry sales |
|
7,678 |
|
|
|
14,871 |
|
|
(48 |
) |
% |
Consumer loan and credit services fees (1) |
|
13 |
|
|
|
1,800 |
|
|
(99 |
) |
% |
Total revenue |
|
245,944 |
|
|
|
311,241 |
|
|
(21 |
) |
% |
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of retail merchandise sold |
|
90,075 |
|
|
|
121,777 |
|
|
(26 |
) |
% |
Cost of wholesale scrap jewelry sold |
|
6,830 |
|
|
|
13,601 |
|
|
(50 |
) |
% |
Consumer loan and credit services loss provision (1) |
|
(8 |
) |
|
|
330 |
|
|
(102 |
) |
% |
Total cost of revenue |
|
96,897 |
|
|
|
135,708 |
|
|
(29 |
) |
% |
|
|
|
|
|
|
|
|
Net revenue |
|
149,047 |
|
|
|
175,533 |
|
|
(15 |
) |
% |
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
Store operating expenses |
|
92,941 |
|
|
|
102,300 |
|
|
(9 |
) |
% |
Depreciation and amortization |
|
5,391 |
|
|
|
5,333 |
|
|
1 |
|
% |
Total segment expenses |
|
98,332 |
|
|
|
107,633 |
|
|
(9 |
) |
% |
|
|
|
|
|
|
|
|
Segment pre-tax operating
income |
$ |
50,715 |
|
|
$ |
67,900 |
|
|
(25 |
) |
% |
|
|
|
|
|
|
|
|
Operating metrics: |
|
|
|
|
|
|
|
Retail merchandise sales margin |
45 |
% |
|
39 |
% |
|
|
Wholesale scrap jewelry sales margin |
11 |
% |
|
9 |
% |
|
|
Net revenue margin |
61 |
% |
|
56 |
% |
|
|
Segment pre-tax operating margin |
21 |
% |
|
22 |
% |
|
|
(1) Effective June 30, 2020, the Company ceased
offering unsecured consumer lending and credit services products,
which include all payday and installment loans, in the U.S.
FIRSTCASH, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED)
The following table presents segment pre-tax
operating income and other operating metrics of the U.S. operations
segment for the twelve months ended December 31, 2020 as
compared to the twelve months ended December 31, 2019 (dollars
in thousands):
|
Twelve Months Ended |
|
|
|
December 31, |
|
Increase / |
|
2020 |
|
2019 |
|
(Decrease) |
U.S. Operations
Segment |
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
Retail merchandise sales |
$ |
720,281 |
|
|
$ |
722,127 |
|
|
— |
|
% |
Pawn loan fees |
|
310,437 |
|
|
|
379,395 |
|
|
(18) |
|
% |
Wholesale scrap jewelry sales |
|
45,405 |
|
|
|
71,813 |
|
|
(37) |
|
% |
Consumer loan and credit services fees (1) |
|
2,016 |
|
|
|
20,178 |
|
|
(90) |
|
% |
Total revenue |
|
1,078,139 |
|
|
|
1,193,513 |
|
|
(10) |
|
% |
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of retail merchandise sold |
|
415,938 |
|
|
|
447,911 |
|
|
(7) |
|
% |
Cost of wholesale scrap jewelry sold |
|
39,584 |
|
|
|
65,941 |
|
|
(40) |
|
% |
Consumer loan and credit services loss provision (1) |
|
(488 |
) |
|
|
4,159 |
|
|
(112) |
|
% |
Total cost of revenue |
|
455,034 |
|
|
|
518,011 |
|
|
(12) |
|
% |
|
|
|
|
|
|
|
|
Net revenue |
|
623,105 |
|
|
|
675,502 |
|
|
(8) |
|
% |
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
Store operating expenses |
|
396,627 |
|
|
|
412,508 |
|
|
(4) |
|
% |
Depreciation and amortization |
|
21,743 |
|
|
|
20,860 |
|
|
4 |
|
% |
Total segment expenses |
|
418,370 |
|
|
|
433,368 |
|
|
(3) |
|
% |
|
|
|
|
|
|
|
|
Segment pre-tax operating
income |
$ |
204,735 |
|
|
$ |
242,134 |
|
|
(15) |
|
% |
|
|
|
|
|
|
|
|
Operating metrics: |
|
|
|
|
|
|
|
Retail merchandise sales margin |
42 |
% |
|
38 |
% |
|
|
Wholesale scrap jewelry sales margin |
13 |
% |
|
8 |
% |
|
|
Net revenue margin |
58 |
% |
|
57 |
% |
|
|
Segment pre-tax operating margin |
19 |
% |
|
20 |
% |
|
|
(1) Effective June 30, 2020, the Company ceased
offering unsecured consumer lending and credit services products,
which include all payday and installment loans, in the U.S.
FIRSTCASH, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED)
Latin America Operations Segment
Results
The Company’s management reviews and analyzes
operating results in Latin America on a constant currency basis
because the Company believes this better represents the Company’s
underlying business trends. Constant currency results are non-GAAP
financial measures, which exclude the effects of foreign currency
translation and are calculated by translating current-year results
at prior-year average exchange rates. The wholesale scrap jewelry
sales in Latin America are priced and settled in U.S. dollars and
are not affected by foreign currency translation, as are a small
percentage of the operating and administrative expenses in Latin
America, which are billed and paid in U.S. dollars. Amounts
presented on a constant currency basis are denoted as such. See the
“Constant Currency Results” section below for additional discussion
of constant currency results.
The following table provides exchange rates for
the Mexican peso, Guatemalan quetzal and Colombian peso for the
current and prior-year periods:
|
December 31, |
|
Favorable / |
|
2020 |
|
2019 |
|
(Unfavorable) |
Mexican peso / U.S. dollar
exchange rate: |
|
|
|
|
|
End-of-period |
19.9 |
|
18.8 |
|
(6) |
|
% |
Three months ended |
20.6 |
|
19.3 |
|
(7) |
|
% |
Twelve months ended |
21.5 |
|
19.3 |
|
(11) |
|
% |
|
|
|
|
|
|
Guatemalan quetzal / U.S.
dollar exchange rate: |
|
|
|
|
|
End-of-period |
7.8 |
|
7.7 |
|
(1) |
|
% |
Three months ended |
7.8 |
|
7.7 |
|
(1) |
|
% |
Twelve months ended |
7.7 |
|
7.7 |
|
— |
|
% |
|
|
|
|
|
|
Colombian peso / U.S. dollar
exchange rate: |
|
|
|
|
|
End-of-period |
3,433 |
|
3,277 |
|
(5) |
|
% |
Three months ended |
3,662 |
|
3,404 |
|
(8) |
|
% |
Twelve months ended |
3,693 |
|
3,280 |
|
(13) |
|
% |
FIRSTCASH, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED)
The following table details earning assets,
which consist of pawn loans and inventories as well as other
earning asset metrics of the Latin America operations segment as of
December 31, 2020 as compared to December 31, 2019 (dollars in
thousands, except as otherwise noted):
|
|
|
|
|
|
|
|
|
|
Constant Currency Basis |
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
Increase / |
|
As of December 31, |
|
Increase / |
|
2020 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
|
(Non-GAAP) |
|
(Non-GAAP) |
Latin America
Operations Segment |
|
|
|
|
|
|
|
|
|
|
|
|
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Pawn loans |
$ |
87,840 |
|
|
$ |
100,734 |
|
|
|
(13) |
|
% |
|
$ |
92,802 |
|
|
(8) |
|
% |
Inventories |
|
54,243 |
|
|
|
83,936 |
|
|
|
(35) |
|
% |
|
57,289 |
|
|
(32) |
|
% |
|
$ |
142,083 |
|
|
$ |
184,670 |
|
|
|
(23) |
|
% |
|
$ |
150,091 |
|
|
(19) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average outstanding pawn loan
amount (in ones) |
$ |
78 |
|
|
$ |
71 |
|
|
|
10 |
|
% |
|
$ |
82 |
|
|
15 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of pawn
collateral: |
|
|
|
|
|
|
|
|
|
|
|
|
General merchandise |
64 |
% |
|
67 |
% |
|
|
|
|
|
|
|
Jewelry |
36 |
% |
|
33 |
% |
|
|
|
|
|
|
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
General merchandise |
56 |
% |
|
66 |
% |
|
|
|
|
|
|
|
Jewelry |
44 |
% |
|
34 |
% |
|
|
|
|
|
|
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of inventory aged
greater than one year |
2 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turns (trailing
twelve months cost of merchandise sales divided by average
inventories) |
4.3 times |
|
3.8 times |
|
|
|
|
|
|
|
FIRSTCASH, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED)
The following table presents segment pre-tax
operating income and other operating metrics of the Latin America
operations segment for the three months ended December 31,
2020 as compared to the three months ended December 31, 2019
(dollars in thousands):
|
|
|
|
|
|
|
|
|
|
Constant Currency Basis |
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
|
Three Months Ended |
|
|
|
|
December 31, |
|
Increase / |
|
December 31, |
|
Increase / |
|
2020 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
|
(Non-GAAP) |
|
(Non-GAAP) |
Latin America
Operations Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail merchandise sales |
$ |
92,754 |
|
|
$ |
132,906 |
|
|
|
(30) |
|
% |
|
$ |
98,976 |
|
|
|
(26) |
|
% |
Pawn loan fees |
|
39,342 |
|
|
|
47,562 |
|
|
|
(17) |
|
% |
|
41,993 |
|
|
|
(12) |
|
% |
Wholesale scrap jewelry sales |
|
14,118 |
|
|
|
6,653 |
|
|
|
112 |
|
% |
|
14,118 |
|
|
|
112 |
|
% |
Total revenue |
|
146,214 |
|
|
|
187,121 |
|
|
|
(22) |
|
% |
|
155,087 |
|
|
|
(17) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of retail merchandise sold |
|
57,576 |
|
|
|
89,866 |
|
|
|
(36) |
|
% |
|
61,433 |
|
|
|
(32) |
|
% |
Cost of wholesale scrap jewelry sold |
|
11,694 |
|
|
|
5,524 |
|
|
|
112 |
|
% |
|
12,465 |
|
|
|
126 |
|
% |
Total cost of revenue |
|
69,270 |
|
|
|
95,390 |
|
|
|
(27) |
|
% |
|
73,898 |
|
|
|
(23) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
76,944 |
|
|
|
91,731 |
|
|
|
(16) |
|
% |
|
81,189 |
|
|
|
(11) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses |
|
42,605 |
|
|
|
48,221 |
|
|
|
(12) |
|
% |
|
45,263 |
|
|
|
(6) |
|
% |
Depreciation and amortization |
|
4,248 |
|
|
|
3,947 |
|
|
|
8 |
|
% |
|
4,510 |
|
|
|
14 |
|
% |
Total segment expenses |
|
46,853 |
|
|
|
52,168 |
|
|
|
(10) |
|
% |
|
49,773 |
|
|
|
(5) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating
income |
$ |
30,091 |
|
|
$ |
39,563 |
|
|
|
(24) |
|
% |
|
$ |
31,416 |
|
|
|
(21) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail merchandise sales margin |
38 |
% |
|
32 |
% |
|
|
|
38 |
% |
|
|
|
Wholesale scrap jewelry sales margin |
17 |
% |
|
17 |
% |
|
|
|
12 |
% |
|
|
|
Net revenue margin |
53 |
% |
|
49 |
% |
|
|
|
52 |
% |
|
|
|
Segment pre-tax operating margin |
21 |
% |
|
21 |
% |
|
|
|
20 |
% |
|
|
|
FIRSTCASH, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED)
The following table presents segment pre-tax
operating income and other operating metrics of the Latin America
operations segment for the twelve months ended December 31,
2020 as compared to the twelve months ended December 31, 2019
(dollars in thousands):
|
|
|
|
|
|
|
|
|
|
Constant Currency Basis |
|
|
|
|
|
|
|
Twelve Months |
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
Twelve Months Ended |
|
|
|
|
December 31, |
|
Increase / |
|
December 31, |
|
Increase / |
|
2020 |
|
(Decrease) |
|
2020 |
|
2019 |
|
(Decrease) |
|
(Non-GAAP) |
|
(Non-GAAP) |
Latin America
Operations Segment |
|
|
|
|
|
|
|
|
|
|
|
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail merchandise sales |
$ |
355,237 |
|
|
$ |
453,434 |
|
|
|
(22) |
|
% |
|
$ |
394,691 |
|
|
(13) |
|
% |
Pawn loan fees |
|
147,080 |
|
|
|
185,429 |
|
|
|
(21) |
|
% |
|
163,459 |
|
|
(12) |
|
% |
Wholesale scrap jewelry sales |
|
50,828 |
|
|
|
32,063 |
|
|
|
59 |
|
% |
|
50,828 |
|
|
59 |
|
% |
Total revenue |
|
553,145 |
|
|
|
670,926 |
|
|
|
(18) |
|
% |
|
608,978 |
|
|
(9) |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of retail merchandise sold |
|
225,149 |
|
|
|
297,950 |
|
|
|
(24) |
|
% |
|
250,095 |
|
|
(16 |
) |
% |
Cost of wholesale scrap jewelry sold |
|
39,962 |
|
|
|
30,131 |
|
|
|
33 |
|
% |
|
44,433 |
|
|
47 |
|
% |
Total cost of revenue |
|
265,111 |
|
|
|
328,081 |
|
|
|
(19) |
|
% |
|
294,528 |
|
|
(10 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
288,034 |
|
|
|
342,845 |
|
|
|
(16 |
) |
% |
|
314,450 |
|
|
(8 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Store operating expenses |
|
165,531 |
|
|
|
183,031 |
|
|
|
(10 |
) |
% |
|
182,532 |
|
|
— |
|
% |
Depreciation and amortization |
|
15,816 |
|
|
|
14,626 |
|
|
|
8 |
|
% |
|
17,411 |
|
|
19 |
|
% |
Total segment expenses |
|
181,347 |
|
|
|
197,657 |
|
|
|
(8 |
) |
% |
|
199,943 |
|
|
1 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating income |
$ |
106,687 |
|
|
$ |
145,188 |
|
|
|
(27 |
) |
% |
|
$ |
114,507 |
|
|
(21 |
) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
Retail merchandise sales margin |
37 |
% |
|
34 |
% |
|
|
|
37 |
% |
|
|
Wholesale scrap jewelry sales margin |
21 |
% |
|
6 |
% |
|
|
|
13 |
% |
|
|
Net revenue margin |
52 |
% |
|
51 |
% |
|
|
|
52 |
% |
|
|
Segment pre-tax operating margin |
19 |
% |
|
22 |
% |
|
|
|
19 |
% |
|
|
FIRSTCASH, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED)
Consolidated Results of Operations
The following table reconciles pre-tax operating
income of the Company’s U.S. operations segment and Latin America
operations segment discussed above to consolidated net income (in
thousands):
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Consolidated Results
of Operations |
|
|
|
|
|
|
|
Segment pre-tax operating
income: |
|
|
|
|
|
|
|
U.S. operations |
$ |
50,715 |
|
|
$ |
67,900 |
|
|
$ |
204,735 |
|
|
$ |
242,134 |
|
Latin America operations |
30,091 |
|
|
39,563 |
|
|
106,687 |
|
|
145,188 |
|
Consolidated segment pre-tax operating income |
80,806 |
|
|
107,463 |
|
|
311,422 |
|
|
387,322 |
|
|
|
|
|
|
|
|
|
Corporate expenses and other
income: |
|
|
|
|
|
|
|
Administrative expenses |
25,289 |
|
|
27,908 |
|
|
110,931 |
|
|
122,334 |
|
Depreciation and amortization |
1,042 |
|
|
1,566 |
|
|
4,546 |
|
|
6,418 |
|
Interest expense |
7,391 |
|
|
8,195 |
|
|
29,344 |
|
|
34,035 |
|
Interest income |
(331 |
) |
|
(267 |
) |
|
(1,540 |
) |
|
(1,055 |
) |
Merger and acquisition expenses |
1,107 |
|
|
256 |
|
|
1,316 |
|
|
1,766 |
|
(Gain) loss on foreign exchange |
(755 |
) |
|
(1,713 |
) |
|
884 |
|
|
(787 |
) |
Loss on extinguishment of debt |
— |
|
|
— |
|
|
11,737 |
|
|
— |
|
Write-offs and impairments of certain lease intangibles and other
assets |
3,956 |
|
|
— |
|
|
10,505 |
|
|
— |
|
Total corporate expenses and other income |
37,699 |
|
|
35,945 |
|
|
167,723 |
|
|
162,711 |
|
|
|
|
|
|
|
|
|
Income before income
taxes |
43,107 |
|
|
71,518 |
|
|
143,699 |
|
|
224,611 |
|
|
|
|
|
|
|
|
|
Provision for income taxes |
10,381 |
|
|
17,364 |
|
|
37,120 |
|
|
59,993 |
|
|
|
|
|
|
|
|
|
Net income |
$ |
32,726 |
|
|
$ |
54,154 |
|
|
$ |
106,579 |
|
|
$ |
164,618 |
|
FIRSTCASH, INC.STORE
COUNT ACTIVITY
The following tables detail store count activity:
|
Three Months Ended December 31, 2020 |
|
U.S. |
|
Latin America |
|
|
|
Operations Segment |
|
Operations Segment |
|
Total Locations |
Total locations, beginning of period |
1,030 |
|
|
1,720 |
|
|
2,750 |
|
New locations opened |
— |
|
|
11 |
|
|
11 |
|
Locations acquired |
22 |
|
|
— |
|
|
22 |
|
Consolidation of existing pawn locations (1) |
(6 |
) |
|
(29 |
) |
|
(35 |
) |
Total locations, end of period |
1,046 |
|
|
1,702 |
|
|
2,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2020 |
|
U.S. |
|
Latin America |
|
|
|
Operations Segment |
|
Operations Segment |
|
Total Locations |
Total locations, beginning of
period |
1,056 |
|
|
1,623 |
|
|
2,679 |
|
New locations opened |
— |
|
|
75 |
|
|
75 |
|
Locations acquired |
22 |
|
|
40 |
|
|
62 |
|
Closure of consumer loan stores (2) |
(13 |
) |
|
— |
|
|
(13 |
) |
Consolidation of existing pawn locations (1) |
(19 |
) |
|
(36 |
) |
|
(55 |
) |
Total locations, end of period |
1,046 |
|
|
1,702 |
|
|
2,748 |
|
(1) Store consolidations were primarily acquired
locations over the past four years which have been combined with
overlapping stores and for which the Company expects to maintain a
significant portion of the acquired customer base in the
consolidated location.(2) Effective June 30, 2020,
the Company ceased offering unsecured consumer lending and credit
services products, which include all payday and installment loans,
in the U.S.
FIRSTCASH,
INC.RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURESTO GAAP FINANCIAL
MEASURES(UNAUDITED)
The Company uses certain financial calculations
such as adjusted net income, adjusted diluted earnings per share,
EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow
and constant currency results as factors in the measurement and
evaluation of the Company’s operating performance and
period-over-period growth. The Company derives these financial
calculations on the basis of methodologies other than generally
accepted accounting principles (“GAAP”), primarily by excluding
from a comparable GAAP measure certain items the Company does not
consider to be representative of its actual operating performance.
These financial calculations are “non-GAAP financial measures” as
defined under the SEC rules. The Company uses these non-GAAP
financial measures in operating its business because management
believes they are less susceptible to variances in actual operating
performance that can result from the excluded items, other
infrequent charges and currency fluctuations. The Company presents
these financial measures to investors because management believes
they are useful to investors in evaluating the primary factors that
drive the Company’s core operating performance and provide greater
transparency into the Company’s results of operations. However,
items that are excluded and other adjustments and assumptions that
are made in calculating these non-GAAP financial measures are
significant components in understanding and assessing the Company’s
financial performance. These non-GAAP financial measures should be
evaluated in conjunction with, and are not a substitute for, the
Company’s GAAP financial measures. Further, because these non-GAAP
financial measures are not determined in accordance with GAAP and
are thus susceptible to varying calculations, the non-GAAP
financial measures, as presented, may not be comparable to other
similarly titled measures of other companies.
While acquisitions are an important part of the
Company’s overall strategy, the Company has adjusted the applicable
financial calculations to exclude merger and acquisition expenses
to allow more accurate comparisons of the financial results to
prior periods. In addition, the Company does not consider these
merger and acquisition expenses to be related to the organic
operations of the acquired businesses or its continuing operations
and such expenses are generally not relevant to assessing or
estimating the long-term performance of the acquired
businesses. Merger and acquisition expenses include
incremental costs directly associated with merger and acquisition
activities, including professional fees, legal expenses, severance,
retention and other employee-related costs, contract breakage costs
and costs related to the consolidation of technology systems and
corporate facilities, among others.
The Company has certain leases in Mexico which
are denominated in U.S. dollars. The lease liability of these U.S.
dollar denominated leases, which is considered a monetary
liability, is remeasured into Mexican pesos using current period
exchange rates resulting in the recognition of foreign currency
exchange gains or losses. The Company has adjusted the applicable
financial measures to exclude these remeasurement gains or losses
because they are non-cash, non-operating items that could create
volatility in the Company’s consolidated results of operations due
to the magnitude of the end of period lease liability being
remeasured and to improve comparability of current periods
presented with prior periods due to the adoption of ASC 842 on
January 1, 2019.
In conjunction with the Cash America merger in
2016, the Company recorded certain lease intangibles related to
above or below market lease liabilities of Cash America which are
included in the operating lease right of use asset on the
consolidated balance sheets. As the Company continues to
opportunistically purchase real estate from landlords at certain
Cash America stores, the associated lease intangible, if any, is
written-off and gain or loss is recognized. The Company has
adjusted the applicable financial measures to exclude these gains
or losses given the variability in size and timing of these
transactions and because they are non-cash, non-operating gains or
losses. The Company believes this improves comparability of
operating results for current periods presented with prior
periods.
FIRSTCASH,
INC.RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURESTO GAAP FINANCIAL MEASURES
(CONTINUED)(UNAUDITED)
Adjusted Net Income and Adjusted Diluted
Earnings Per Share
Management believes the presentation of adjusted
net income and adjusted diluted earnings per share provides
investors with greater transparency and provides a more complete
understanding of the Company’s financial performance and prospects
for the future by excluding items that management believes are
non-operating in nature and not representative of the Company’s
core operating performance of its continuing operations. In
addition, management believes the adjustments shown below are
useful to investors in order to allow them to compare the Company’s
financial results for the current periods presented with the prior
periods presented.
The following table provides a reconciliation
between net income and diluted earnings per share calculated in
accordance with GAAP to adjusted net income and adjusted diluted
earnings per share, which are shown net of tax (in thousands,
except per share amounts):
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
InThousands |
|
PerShare |
|
InThousands |
|
PerShare |
|
InThousands |
|
PerShare |
|
InThousands |
|
PerShare |
Net income and diluted earnings per share, as reported |
$ |
32,726 |
|
|
$ |
0.79 |
|
|
$ |
54,154 |
|
|
$ |
1.27 |
|
|
$ |
106,579 |
|
|
$ |
2.56 |
|
|
$ |
164,618 |
|
|
$ |
3.81 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and acquisition expenses |
839 |
|
|
0.02 |
|
|
179 |
|
|
— |
|
|
991 |
|
|
0.02 |
|
|
1,276 |
|
|
0.03 |
|
Non-cash foreign currency (gain) loss related to lease
liability |
(1,579 |
) |
|
(0.04 |
) |
|
(619 |
) |
|
(0.01 |
) |
|
874 |
|
|
0.02 |
|
|
(653 |
) |
|
(0.01 |
) |
Loss on extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
9,037 |
|
|
0.22 |
|
|
— |
|
|
— |
|
Non-cash write-off of certain Cash America merger related lease
intangibles |
1,853 |
|
|
0.05 |
|
|
— |
|
|
— |
|
|
5,432 |
|
|
0.13 |
|
|
— |
|
|
— |
|
Non-cash impairment of certain other assets (1) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,463 |
|
|
0.04 |
|
|
— |
|
|
— |
|
Accrual of pre-merger Cash America income tax liability |
693 |
|
|
0.02 |
|
|
— |
|
|
— |
|
|
693 |
|
|
0.02 |
|
|
— |
|
|
— |
|
Consumer lending wind-down costs and asset impairments |
— |
|
|
— |
|
|
122 |
|
|
— |
|
|
84 |
|
|
— |
|
|
2,659 |
|
|
0.06 |
|
Adjusted net income and diluted earnings per share |
$ |
34,532 |
|
|
$ |
0.84 |
|
|
$ |
53,836 |
|
|
$ |
1.26 |
|
|
$ |
125,153 |
|
|
$ |
3.01 |
|
|
$ |
167,900 |
|
|
$ |
3.89 |
|
(1) Impairment related to a non-operating asset in
which the Company determined that an other than temporary
impairment existed as of March 31, 2020.
FIRSTCASH,
INC.RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURESTO GAAP FINANCIAL MEASURES
(CONTINUED)(UNAUDITED)
The following tables provide a reconciliation of
the gross amounts, the impact of income taxes and the net amounts
for the adjustments included in the table above (in thousands):
|
Three Months Ended December 31, |
|
2020 |
|
2019 |
|
Pre-tax |
|
Tax |
|
After-tax |
|
Pre-tax |
|
Tax |
|
After-tax |
Merger and acquisition expenses |
$ |
1,107 |
|
|
$ |
268 |
|
|
$ |
839 |
|
|
$ |
256 |
|
|
$ |
77 |
|
|
$ |
179 |
|
Non-cash foreign currency gain related to lease liability |
(2,256 |
) |
|
(677 |
) |
|
(1,579 |
) |
|
(884 |
) |
|
(265 |
) |
|
(619 |
) |
Non-cash write-off of certain Cash America merger related lease
intangibles |
2,406 |
|
|
553 |
|
|
1,853 |
|
|
— |
|
|
— |
|
|
— |
|
Accrual of pre-merger Cash America income tax liability |
— |
|
|
(693 |
) |
|
693 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer lending wind-down costs and asset impairments |
— |
|
|
— |
|
|
— |
|
|
159 |
|
|
37 |
|
|
122 |
|
Total adjustments |
$ |
1,257 |
|
|
$ |
(549 |
) |
|
$ |
1,806 |
|
|
$ |
(469 |
) |
|
$ |
(151 |
) |
|
$ |
(318 |
) |
|
Twelve Months Ended December 31, |
|
2020 |
|
2019 |
|
Pre-tax |
|
Tax |
|
After-tax |
|
Pre-tax |
|
Tax |
|
After-tax |
Merger and acquisition expenses |
$ |
1,316 |
|
|
$ |
325 |
|
|
$ |
991 |
|
|
$ |
1,766 |
|
|
$ |
490 |
|
|
$ |
1,276 |
|
Non-cash foreign currency loss (gain) related to lease
liability |
1,249 |
|
|
375 |
|
|
874 |
|
|
(933 |
) |
|
(280 |
) |
|
(653 |
) |
Loss on extinguishment of debt |
11,737 |
|
|
2,700 |
|
|
9,037 |
|
|
— |
|
|
— |
|
|
— |
|
Non-cash write-off of certain Cash America merger related lease
intangibles |
7,055 |
|
|
1,623 |
|
|
5,432 |
|
|
— |
|
|
— |
|
|
— |
|
Non-cash impairment of certain other assets |
1,900 |
|
|
437 |
|
|
1,463 |
|
|
— |
|
|
— |
|
|
— |
|
Accrual of pre-merger Cash America income tax liability |
— |
|
|
(693 |
) |
|
693 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer lending wind-down costs and asset impairments |
109 |
|
|
25 |
|
|
84 |
|
|
3,454 |
|
|
795 |
|
|
2,659 |
|
Total adjustments |
$ |
23,366 |
|
|
$ |
4,792 |
|
|
$ |
18,574 |
|
|
$ |
4,287 |
|
|
$ |
1,005 |
|
|
$ |
3,282 |
|
FIRSTCASH,
INC.RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURESTO GAAP FINANCIAL MEASURES
(CONTINUED)(UNAUDITED)
Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) and Adjusted EBITDA
The Company defines EBITDA as net income before
income taxes, depreciation and amortization, interest expense and
interest income and adjusted EBITDA as EBITDA adjusted for certain
items as listed below that management considers to be non-operating
in nature and not representative of its actual operating
performance. The Company believes EBITDA and adjusted EBITDA are
commonly used by investors to assess a company’s financial
performance, and adjusted EBITDA is used in the calculation of the
net debt ratio as defined in the Company’s senior unsecured notes
covenants. The following table provides a reconciliation of net
income to EBITDA and adjusted EBITDA (dollars in thousands):
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income |
$ |
32,726 |
|
|
$ |
54,154 |
|
|
$ |
106,579 |
|
|
$ |
164,618 |
|
Income taxes |
|
10,381 |
|
|
|
17,364 |
|
|
|
37,120 |
|
|
|
59,993 |
|
Depreciation and amortization |
|
10,681 |
|
|
|
10,846 |
|
|
|
42,105 |
|
|
|
41,904 |
|
Interest expense |
|
7,391 |
|
|
|
8,195 |
|
|
|
29,344 |
|
|
|
34,035 |
|
Interest income |
|
(331 |
) |
|
|
(267 |
) |
|
|
(1,540 |
) |
|
|
(1,055 |
) |
EBITDA |
|
60,848 |
|
|
|
90,292 |
|
|
|
213,608 |
|
|
|
299,495 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Merger and acquisition expenses |
|
1,107 |
|
|
|
256 |
|
|
|
1,316 |
|
|
|
1,766 |
|
Non-cash foreign currency (gain) loss related to lease
liability |
|
(2,256 |
) |
|
|
(884 |
) |
|
|
1,249 |
|
|
|
(933 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
11,737 |
|
|
|
— |
|
Non-cash write-off of certain Cash America merger related lease
intangibles |
|
2,406 |
|
|
|
— |
|
|
|
7,055 |
|
|
|
— |
|
Non-cash impairment of certain other assets |
|
— |
|
|
|
— |
|
|
|
1,900 |
|
|
|
— |
|
Consumer lending wind-down costs and asset impairments |
|
— |
|
|
|
159 |
|
|
|
109 |
|
|
|
3,454 |
|
Adjusted EBITDA |
$ |
62,105 |
|
|
$ |
89,823 |
|
|
$ |
236,974 |
|
|
$ |
303,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt ratio
calculation: |
|
|
|
|
|
|
|
|
|
|
|
Total debt (outstanding principal) |
|
|
|
|
|
|
$ |
623,000 |
|
|
$ |
635,000 |
|
Less: cash and cash equivalents |
|
|
|
|
|
|
|
(65,850 |
) |
|
|
(46,527 |
) |
Net debt |
|
|
|
|
|
|
$ |
557,150 |
|
|
$ |
588,473 |
|
Adjusted EBITDA |
|
|
|
|
|
|
$ |
236,974 |
|
|
$ |
303,782 |
|
Net debt ratio (net debt
divided by adjusted EBITDA) |
|
|
|
|
|
|
2.4 |
:1 |
|
1.9 |
:1 |
FIRSTCASH,
INC.RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURESTO GAAP FINANCIAL MEASURES
(CONTINUED)(UNAUDITED)
Free Cash Flow and Adjusted Free Cash Flow
For purposes of its internal liquidity
assessments, the Company considers free cash flow and adjusted free
cash flow. The Company defines free cash flow as cash flow from
operating activities less purchases of furniture, fixtures,
equipment and improvements and net fundings/repayments of pawn and
consumer loans, which are considered to be operating in nature by
the Company but are included in cash flow from investing
activities. Adjusted free cash flow is defined as free cash flow
adjusted for merger and acquisition expenses paid that management
considers to be non-operating in nature.
Free cash flow and adjusted free cash flow are
commonly used by investors as an additional measure of cash
generated by business operations that may be used to repay
scheduled debt maturities and debt service or, following payment of
such debt obligations and other non-discretionary items, may be
available to invest in future growth through new business
development activities or acquisitions, repurchase stock, pay cash
dividends or repay debt obligations prior to their maturities.
These metrics can also be used to evaluate the Company’s ability to
generate cash flow from business operations and the impact that
this cash flow has on the Company’s liquidity. However, free cash
flow and adjusted free cash flow have limitations as analytical
tools and should not be considered in isolation or as a substitute
for cash flow from operating activities or other income statement
data prepared in accordance with GAAP. The following table
reconciles cash flow from operating activities to free cash flow
and adjusted free cash flow (in thousands):
|
Twelve Months Ended |
|
December 31, |
|
2020 |
|
2019 |
Cash flow from operating activities |
$ |
222,264 |
|
|
$ |
231,596 |
|
Cash flow from investing
activities: |
|
|
|
Loan receivables, net (1) |
107,008 |
|
|
34,406 |
|
Purchases of furniture, fixtures, equipment and improvements |
(37,543 |
) |
|
(44,311 |
) |
Free cash flow |
291,729 |
|
|
221,691 |
|
Merger and acquisition expenses paid, net of tax benefit |
991 |
|
|
1,276 |
|
Adjusted free cash flow |
$ |
292,720 |
|
|
$ |
222,967 |
|
(1) Includes the funding of new loans net of cash
repayments and recovery of principal through the sale of
inventories acquired from forfeiture of pawn collateral.
FIRSTCASH,
INC.RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURESTO GAAP FINANCIAL MEASURES
(CONTINUED)(UNAUDITED)
Constant Currency Results
The Company’s reporting currency is the U.S.
dollar. However, certain performance metrics discussed in this
release are presented on a “constant currency” basis, which is
considered a non-GAAP financial measure. The Company’s management
uses constant currency results to evaluate operating results of
business operations in Latin America, which are primarily
transacted in local currencies.
The Company believes constant currency results
provide valuable supplemental information regarding the underlying
performance of its business operations in Latin America, consistent
with how the Company’s management evaluates such performance and
operating results. Constant currency results reported herein are
calculated by translating certain balance sheet and income
statement items denominated in local currencies using the exchange
rate from the prior-year comparable period, as opposed to the
current comparable period, in order to exclude the effects of
foreign currency rate fluctuations for purposes of evaluating
period-over-period comparisons. Business operations in Mexico,
Guatemala and Colombia are transacted in Mexican pesos, Guatemalan
quetzales and Colombian pesos, respectively. The Company also has
operations in El Salvador where the reporting and functional
currency is the U.S. dollar. See the Latin America operations
segment tables elsewhere in this release for additional
reconciliation of certain constant currency amounts to as reported
GAAP amounts.
For further information, please contact: Gar
JacksonGlobal IR GroupPhone: (817) 886-6998Email:
gar@globalirgroup.com
Doug Orr, Executive Vice President and Chief Financial
OfficerPhone: (817) 258-2650Email:
investorrelations@firstcash.comWebsite: investors.firstcash.com
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