FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq:
FCFS), the leading international operator of almost 3,000 retail
pawn stores and a leading provider of retail point-of-sale (“POS”)
payment solutions through American First Finance (“AFF”), today
announced operating results for the fourth quarter and full-year
ended December 31, 2023. The Company also announced that the
Board of Directors declared a quarterly cash dividend of $0.35 per
share, which will be paid in February 2024.
Mr. Rick Wessel, chief executive officer,
stated, “FirstCash posted impressive fourth quarter and full year
results for 2023 with continued momentum from record pawn
receivables and new store growth resulting in strong year-over-year
increases in revenues and earnings. U.S. pawn receivables ended the
year up 22% in total and 14% on a same-store basis, while LatAm
pawn saw improving demand in the fourth quarter as well. AFF’s
fourth quarter results were also impressive, with gross transaction
volumes up 14%, which drove similar growth in revenues and resulted
in even stronger earnings growth.
“Utilizing its strong cash flows and balance
sheet, FirstCash continued to invest in the long-term growth of its
pawn and retail POS payment solutions platforms. In total, we added
157 pawn stores in 2023, including 96 in the U.S. primarily through
multiple acquisitions, allowing us to enter four additional U.S.
states. AFF continued to expand its market presence as well,
posting a 26% net increase in the number of active retail and
service locations as of year end. The growth in both of these
platforms position us for further expected revenue and earnings
growth in 2024.”
This release contains adjusted financial
measures, which exclude certain non-operating and/or non-cash
income and expenses, that 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 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Revenue |
|
$ |
852,134 |
|
$ |
749,344 |
|
$ |
852,134 |
|
$ |
757,203 |
Net income |
|
$ |
69,589 |
|
$ |
80,066 |
|
$ |
92,846 |
|
$ |
76,642 |
Diluted earnings per
share |
|
$ |
1.53 |
|
$ |
1.72 |
|
$ |
2.04 |
|
$ |
1.65 |
EBITDA (non-GAAP measure) |
|
$ |
145,493 |
|
$ |
147,693 |
|
$ |
161,704 |
|
$ |
130,731 |
Weighted-average diluted
shares |
|
|
45,425 |
|
|
46,523 |
|
|
45,425 |
|
|
46,523 |
|
|
Twelve Months Ended December 31, |
|
|
As Reported (GAAP) |
|
Adjusted (Non-GAAP) |
In thousands, except per share amounts |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
Revenue |
|
$ |
3,151,796 |
|
$ |
2,728,942 |
|
$ |
3,151,796 |
|
$ |
2,771,599 |
Net income |
|
$ |
219,301 |
|
$ |
253,495 |
|
$ |
276,874 |
|
$ |
245,737 |
Diluted earnings per
share |
|
$ |
4.80 |
|
$ |
5.36 |
|
$ |
6.06 |
|
$ |
5.19 |
EBITDA (non-GAAP measure) |
|
$ |
493,784 |
|
$ |
496,860 |
|
$ |
511,732 |
|
$ |
437,344 |
Weighted-average diluted
shares |
|
|
45,693 |
|
|
47,330 |
|
|
45,693 |
|
|
47,330 |
Consolidated Operating Highlights
- Consolidated gross
revenues topped $3 billion for the first time in the Company’s
history, totaling $3.2 billion for 2023, which represented an
increase of 15% on a GAAP basis and 14% on an adjusted basis
compared to the prior year. Consolidated revenues totaled $852
million in the fourth quarter, an increase of 14% on a GAAP basis
and 13% on an adjusted basis compared to the prior-year
quarter.
- Growth in earning
assets combined with gross margin expansion helped drive increases
in consolidated net revenues of 20% in the fourth quarter on a GAAP
basis and 17% on an adjusted basis compared to the prior-year
quarter. Full year net revenues increased 19% on a GAAP basis and
15% on an adjusted basis compared to the prior year.
- On a GAAP basis,
prior-year diluted earnings per share included a significant
non-cash gain ($0.47 for the 2022 fourth quarter and $1.91 for the
full year 2022, net of tax) on the revaluation of contingent
consideration related to the AFF acquisition. Due primarily to the
significance of the prior-year non-cash gains, GAAP-basis diluted
earnings per share for the fourth quarter of 2023 decreased 11%
compared to the prior-year quarter and decreased 10% for the full
year.
- Adjusted diluted
earnings per share increased 24% in the fourth quarter and 17% for
the full year compared to the respective prior-year periods.
Adjusted results exclude certain non-operating and/or non-cash
income and expenses as further detailed elsewhere in this
release.
- While GAAP net
income for the fourth quarter decreased 13% over the prior-year
quarter, primarily due to the significant non-cash gain in the
prior quarter described above, adjusted net income increased 21%
compared to the prior-year quarter. For the full year, net income
decreased 13% on a GAAP basis, however, net income increased 13% on
an adjusted basis compared to the prior year.
- Adjusted EBITDA for
the full year was $512 million, an increase of $74 million, or 17%,
compared to the prior year. For the fourth quarter of 2023,
adjusted EBITDA increased 24% compared to the prior-year
quarter.
Store Base and Platform Growth
- Pawn
Stores: For the full year of 2023, a total of 157 pawn
locations were added, including 91 acquired locations and 66 new
(de novo) stores, bringing the store count at December 31, 2023 to
2,997 locations. Fourth quarter activity included a total of 17
pawn locations added through a combination of acquisitions and
store openings.By market, the Company reported the following store
additions in 2023:
- U.S.
Pawn: Eight stores located in the states of Texas,
Virginia and South Carolina were added in the fourth quarter
through three separate acquisitions.For the full year, the Company
added 96 locations, which is the most U.S. locations added in a
year since the merger with Cash America in 2016. In total, the
Company now has 1,183 U.S. pawn locations in 29 states and the
District of Columbia. The Company also purchased the underlying
real estate at 19 of its existing pawn stores during the fourth
quarter. For the full year, the Company purchased the real estate
at 43 locations, bringing the total number of owned U.S. locations
to 337.
- Latin
America Pawn: Nine de novo locations were opened in Latin
America during the fourth quarter of 2023, which included eight
locations in Mexico and one in Guatemala.For the full year, 61
locations were opened in Latin America where the Company now has
1,814 total locations. The 61 de novo stores opened this year
represent a 36% increase in the number of stores opened during 2023
compared to 2022.
- Retail POS Payment
Solutions Merchant Partnerships:
- AFF reported a 26%
increase in the number of active merchant locations as of December
31, 2023 compared to a year ago.
- At December 31,
2023, there were approximately 11,600 active retail and e-commerce
merchant partner locations.
U.S. Pawn Segment Operating
Results
- Segment pre-tax
operating income in the fourth quarter of 2023 was $98 million, an
increase of $15 million, or 18%, compared to the prior-year
quarter. The resulting segment pre-tax operating margin increased
to 26% for the fourth quarter of 2023, an improvement over the 25%
margin for the prior-year quarter.
- Segment pre-tax
operating income for the full year of 2023 was $336 million, an
increase of $45 million, or 16%, compared to the prior year. The
resulting segment pre-tax operating margin increased to 25% for the
full year compared to 23% for the prior year.
- Pawn loan fee
revenue increased 21% for the fourth quarter and 17% for the full
year, while on a same-store basis, pawn loan fee revenue increased
11% compared to both of the respective prior-year periods. The
increased pawn loan fee revenue reflected store growth, continued
growth in demand for pawn loans and increased portfolio yield
driven by improved customer redemption rates.
- Pawn receivables
continued to grow to record levels, increasing 22% in total at
December 31, 2023 compared to the prior year. Same-store pawn
receivables accelerated sequentially to a 14% quarter-over-quarter
increase from the 11% quarter-over-quarter increase in the third
quarter of 2023. The increase in total pawn receivables was driven
by a 7% increase in the U.S. store count coupled with the
impressive 14% same-store increase. The same-store increase was
driven by a 5% increase in average loan size and an 8% increase in
the number of loans outstanding.
- Total retail
merchandise sales increased 10% in the fourth quarter and 4% for
the full year compared to the respective prior-year periods.
Same-store retail sales increased less than 1% for the quarter and
decreased 2% for the full year compared to the same prior-year
periods. While the Company believes merchandise sales continue to
be slightly moderated due to lower than normal inventory, all of
the above sales growth metrics represented sequential improvements
compared to growth rates reported for the third quarter of
2023.
- Retail sales
margins of 42% for the fourth quarter were consistent with the
prior-year quarter and continue to be driven by solid demand for
value-priced, pre-owned merchandise and low levels of aged
inventory. Full year retail margins improved to 43% in 2023
compared to 42% in 2022.
- Annualized
inventory turnover improved to 2.8 times for the twelve months
ended December 31, 2023 compared to prior-year annualized inventory
turnover of 2.7 times. Inventories aged greater than one year at
December 31, 2023 remained extremely low at 1%.
- Operating expenses
for the fourth quarter increased 15% and 11% for the full year as
compared to the prior-year periods, primarily due to store
additions. On a same-store basis, expenses increased a modest 3%
for the quarter and 5% for the full year.
Latin America Pawn Segment Operating
Results
Note: Certain growth rates 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 2023 was 17.6 pesos /
dollar, a favorable change of 11% versus the comparable prior-year
period, and for the twelve-month period ended December 31,
2023 was 17.8 pesos / dollar, a favorable change of 11% versus the
prior-year period.
-
For the full year of 2023, segment pre-tax operating income
increased $14 million, or 10%. The resulting pre-tax operating
margin was 19% for the full year compared to 21% in the prior year.
Fourth quarter segment pre-tax operating income increased 5% with a
resulting pre-tax operating margin of 20% compared to 21% in the
prior-year quarter. On a constant currency basis, which excludes
the favorable foreign exchange impact in 2023, segment income for
the full year was flat, and down 4% for the quarter, compared to
the prior-year periods.
-
Pawn loan fees increased 15%, or 3% on a constant currency basis,
in the fourth quarter of 2023 as compared to the prior-year
quarter, while same-store pawn loan fees increased 14%, or 3% on a
constant currency basis, compared to the prior-year quarter. For
the full year, pawn loan fees increased 19%, or 5% on a constant
currency basis, compared to the prior year, and increased 18%, or
5% on a constant currency basis, on a same-store basis.
-
Pawn receivables at December 31, 2023 increased 18%, or 3% on a
constant currency basis, compared to the prior year. On a
same-store basis, pawn receivables increased 17%, or 3% on a
constant currency basis, compared to the prior year. These growth
rates all represented sequential increases over the comparable
growth rates at the end of the third quarter when pawn receivables
were up 15% in total and flat on a constant currency basis over the
prior year.
-
Retail merchandise sales in the fourth quarter of 2023 increased
12%, or flat on a constant currency basis, compared to the
prior-year quarter. Same-store retail merchandise sales in the
fourth quarter of 2023 increased 11% on a U.S. dollar basis, or
decreased 1% on a constant currency basis. For the full year,
retail merchandise sales increased 19%, or 6% on a constant
currency basis, compared to the prior year, while same-store retail
merchandise sales increased 18%, or 5% on a constant currency
basis, compared to the prior year.
-
Retail margins remained consistent at 35% for both the fourth
quarter of 2023 and the full year. Annualized inventory turnover
improved to 4.4 times in 2023 versus 4.2 times in 2022, while
inventories aged greater than one year at December 31, 2023
remained extremely low at 1%.
- Operating expenses
increased 24% in total, or 12% on a constant currency basis,
compared to the prior-year quarter while full year operating
expenses increased 26%, or 13% on a constant currency basis,
compared to last year. The increase in expenses reflected increased
store counts, accelerated store opening activity over the prior
year and increases in the federally mandated minimum wage and other
required benefit programs and other inflationary impacts.
Retail POS Payment Solutions Segment -
American First Finance (AFF) Operating Results
Note: The reconciliations of GAAP revenues and
earnings for this segment to adjusted revenues and earnings are
provided and described in more detail in the Retail POS Payment
Solutions Segment Results section of this release.
- Fourth quarter
segment pre-tax operating income totaled $44 million, an increase
of 94% on a GAAP basis and 39% on an adjusted basis, which excludes
the non-cash impacts of fair value purchase accounting requirements
in the 2022 results, over the prior-year quarter. For the full
year, segment pre-tax operating income was $132 million, an
increase of 123% on a GAAP basis and 21% on an adjusted basis over
the prior year.
- Segment revenues for the quarter,
comprised of lease-to-own (“LTO”) fees and interest and fees on
finance receivables, increased 17% on a GAAP basis and 13% on an
adjusted basis, which excludes the non-cash impacts of fair value
purchase accounting requirements in the 2022 results, compared to
the prior-year quarter. Revenues for the full year increased 23% on
a GAAP basis and 17% on an adjusted basis compared to the prior
year.
- Gross transaction
volume from originated LTO and POS financing transactions totaled a
record $1.0 billion in 2023, an increase of 21% over the prior
year. For the fourth quarter, they increased 14% over the fourth
quarter of last year despite a decline of 10% in same-door
originations.
- Combined gross
leased merchandise and finance receivables outstanding at December
31, 2023 increased 13% compared to the December 31, 2022
balances.
- AFF continues to
provide significant up front expected lifetime loss provisioning on
leased merchandise and finance receivable originations. The
resulting allowance on leased merchandise and finance receivables
at year end was 40% of the gross receivables, which was a nominal
increase from 39% in the prior year.
- The combined lease
and loan loss provision, as a percentage of the total gross
transaction volume originated, decreased slightly from 27% during
the fourth quarter of 2022 to 25% during the fourth quarter of 2023
and from 30% for the full year of 2022 to 29% for the full year of
2023.
- The average monthly
net charge-off (“NCO”) rate for combined leased merchandise and
finance receivable products for the full year 2023 was 5.0%
compared to the prior-year rate of 4.7%, and in line with the
Company’s targeted range for NCO’s. The NCO rate in the fourth
quarter, which is seasonally higher than the full year, was 5.5%
and increased slightly compared to the prior-year rate of
5.2%.
- Operating expenses
increased 7% for the full year and decreased 1% in the fourth
quarter compared to the prior-year periods. The full year increase
is primarily due to increased acquisition and servicing costs to
support receivable growth.
Cash Flow and Liquidity
- Each of the
Company’s business segments generated significant operating cash
flows in 2023. Consolidated operating cash flows for the full year
totaled $416 million and adjusted free cash flows (a non-GAAP
measure) were $212 million. The cash flows were even more
impressive in light of the significant growth in earning assets and
continued investments in the store platform which included:
- Net investment of
over $100 million to fund year-over-year increases in customer
receivables, pawn inventories and LTO merchandise
- Acquisitions of
pawn stores totaling $181 million
- Investments in real
estate of $70 million
- Even with increased
borrowings in 2023 to finance the significant acquisition activity
and growth in earning assets, the Company’s consolidated total debt
to EBITDA ratio remained at 2.7x adjusted EBITDA (as defined in the
Company’s U.S. revolving commercial bank credit facility which
provides proforma credit for acquired earnings) at December 31,
2023, which was equal to the prior-year ratio.
- To further support
long-term growth and shareholder returns, the Company obtained a
$50 million increase in lender commitments under its U.S. revolving
commercial bank credit facility in October 2023, increasing the
size of the facility from $590 million to $640 million. The August
2027 maturity date and all financial covenants remained unchanged
under the expanded U.S. facility. Coupled with its Mexico bank line
of credit, which renewed in August 2023 and was extended into 2027,
the Company has total lender commitments under its bank credit
facilities of approximately $676 million at December 31, 2023.
- The majority (over
$1 billion) of the Company’s long-term financing remains fixed rate
debt with favorable interest rates ranging from 4.625% to 5.625%
and maturity dates not until 2028 and 2030.
Shareholder Returns
- The Board of
Directors declared a $0.35 per share first quarter cash dividend,
which will be paid on February 28, 2024 to stockholders of
record as of February 14, 2024. This represents an annualized
dividend of $1.40 per share. Any future dividends are subject to
approval by the Company’s Board of Directors.
- For the full year,
the Company repurchased 1,248,000 shares of common stock at an
aggregate cost of $114 million and an average cost per share of
$91.58. The Company has $200 million available under the share
repurchase program authorized in July 2023. Future share
repurchases are subject to expected liquidity, acquisitions and
other investment opportunities, debt covenant restrictions, market
conditions and other relevant factors.
- The Company
generated an 11% return on equity and a 5% return on assets in
2023. Using adjusted net income for 2023, the adjusted return on
equity was 14% while the adjusted return on assets was 7%.
2024 OutlookThe Company’s
outlook for 2024 is highly positive, with expected year-over-year
growth in revenue and earnings in all segments driven by the
continued growth in earning asset balances coupled with recent
store additions. Anticipated conditions and trends for 2024 include
the following:
Pawn Operations:
- Pawn operations are
expected to remain the primary earnings driver in 2024 as the
Company expects segment income from the combined U.S. and Latin
America pawn segments to be approximately 80% of total segment
level pre-tax income for the full year.
- U.S. pawn
operations are expected to benefit in 2024 from full year revenue
and earnings from the 79 stores acquired in August 2023 and seven
stores acquired in late November of 2023.
- Beginning of the
year pawn receivables were up 22% in the U.S., and continued to be
strong in January 2024, which is expected to drive pawn loan fee
growth in the first half of 2024 at a rate similar to the fourth
quarter of 2023. As a reminder, U.S. pawn receivables growth rates
in the second half of 2024 will moderate as the Company laps the
significant 2023 pawn acquisition activity. Latin America pawn
growth is currently up approximately 6% and full year 2024 growth
is anticipated to remain in a mid-single digit range assuming
foreign exchange rates remain steady.
- Retail sales are
also expected to grow in both markets although at a slower rate
than pawn loan fee growth given current inventory levels which
remain below historical levels as a percentage of pawn receivables.
Retail margins are anticipated to remain at or above historical
averages at 40% to 43% in the U.S. and 34% to 36% in Latin
America.
- Store operating
expenses are expected to rise in a range of 7% to 9% for the full
year in both the U.S. and Latin America in 2024 due to increased
store counts along with continued inflationary impacts (primarily
related to further minimum wage increases in Latin America). Even
with increased operating expenses, the Company still anticipates
improved operating leverage from pawn operations, especially in the
U.S.
- The Company is
currently targeting the addition of approximately 75 locations in
2024 through new store openings and acquisitions. Management
continues to see a pipeline of potential acquisition opportunities
in both the U.S. and Latin America, which could further boost store
additions.
Retail POS Payment Solutions (AFF)
Operations:
- Gross transaction
volumes originated in 2024 are expected to increase in a range of
10% to 15% for the full year as compared to 2023. Resulting
revenues are forecast to grow in a range of 7% to 9% in the first
quarter and 10% to 12% for the full year as compared to the
respective prior-year periods.
- The Company expects
AFF's estimated lease and loan loss provisioning rates for 2024
will continue to reflect a consistent provisioning methodology with
100% of estimated lifetime losses being provided for (expensed)
upon origination of the lease or loan. The full year loss provision
expense for 2024 is expected to increase in line with the expected
increase in originations, with anticipated provision rates
(combined provision for lease and loan losses as a percentage of
the total gross transaction volume originated) ranging between 28%
to 32% in the first half of 2024 and 27% and 31% for the full year.
As a reminder, provisioning rates are seasonally higher in the
first half of the year than in the last half based on the proximity
to the tax refund collection cycle in the first quarter each
year.
- Operating expenses
for the full year are expected to increase in the 10% to 15% range
in 2024 as well, primarily due to the expected increase in
origination activity and continued longer term investments in
technology, customer service and merchant/customer acquisition
activities.
Interest Expense, Tax Rates and
Currency:
- Net interest
expense is expected to increase for full year 2024 compared to
2023, with most of the increase expected in the first half of the
year due to higher year-over-year interest rates for the
comparative periods.
- For the full year
of 2024, the effective income tax rate under current tax codes in
the U.S. and Latin America is expected to range from 25% to 26%.
This compares to the 2023 effective tax rate of 25.1%.
- Each full point
change in the exchange rate of the Mexico peso represents an annual
earnings impact of approximately $0.10 per share.
Additional Commentary and
Analysis
Mr. Wessel further commented on the 2023
results, “The outstanding results for 2023 reflect FirstCash’s
superior strategic positioning and long-term growth initiatives
which have allowed us to navigate rapidly changing, and often
unpredictable, global macroeconomic conditions. Our ability to
consistently and effectively meet the everyday needs of millions of
credit constrained and value conscious consumers, while prudently
managing risk, is truly unique in the consumer finance and retail
marketplace.
“FirstCash achieved a number of significant
records and growth milestones in 2023. Consolidated revenues
exceeded $3 billion for the first time in Company history. The core
pawn segments in both the U.S. and Latin America posted record high
pawn receivables, revenues and segment earnings, while the total
number of pawn stores stood at 2,997 locations at year end and,
with January 2024 store openings, is now over 3,000 locations. For
AFF, gross transaction originations in 2023 exceeded $1 billion for
the first time ever.
“For our core pawn operations, which continue to
contribute almost 80% of our segment earnings, we ended the year
with combined U.S. and LatAm pawn loan receivable growth of 21% and
an impressive 15% increase on a same-store basis. Our pawn
operations saw significant growth in the store base in 2023 with
the addition of 96 stores in the U.S., which included the entrance
into four new states, and 61 new stores opened in Latin America.
For the full year, we invested approximately $312 million in pawn
acquisitions, new store openings, store real estate acquisitions
and other capital expenditures. Furthermore, we continue to see a
robust pipeline of acquisition opportunities in both new and
existing markets.
“It has been two years since we made the
strategic AFF acquisition, and the segment continues to grow and
drive incremental earnings for FirstCash. Compared to AFF’s results
at the time of the acquisition at the end of 2021, revenues have
now increased over 60% and the active merchant door counts have
increased by almost 80%. Although the origination growth continues
to have a short-term drag on earnings due to upfront provisioning
expense, these originations position us well for future expected
growth in revenue and earnings.
“FirstCash continued to provide significant
shareholder returns in 2023, driven by the increased dividend that
is now annualized at $1.40 per share and through the repurchase of
1,248,000 shares of common stock at an aggregate cost of $114
million or $91.58 per share. Since the merger with Cash America in
2016, the Company has repurchased almost 12 million shares of
common stock at an average cost of $76.94 per share. Additionally,
we repurchased the underlying real estate at 43 domestic locations
during 2023, bringing the total Company owned locations to 337, or
28% of our U.S. stores.
“Our balance sheet and cash flow remain strong,
as free cash flow totaled $212 million during 2023, while we
maintain long-dated unsecured debt maturities with interest rate
coupons far below most of our industry peers. Given the current
momentum in our pawn operations and the continued steady growth for
AFF, we believe that we are well positioned for continued revenue
and earnings growth as we enter 2024,” concluded Mr. Wessel.
About FirstCash
FirstCash is the leading international operator
of pawn stores and a leading provider of technology-driven
point-of-sale payment solutions, both focused on serving cash and
credit-constrained consumers. FirstCash’s approximately 3,000 pawn
stores in the U.S. and Latin America buy and sell a wide variety of
jewelry, electronics, tools, appliances, sporting goods, musical
instruments and other merchandise, and make small non-recourse pawn
loans secured by pledged personal property. FirstCash, through its
wholly owned subsidiary, AFF, also provides lease-to-own and retail
finance payment solutions for consumer goods and services through a
nationwide network of approximately 11,600 active retail merchant
partner locations. As one of the largest omni-channel providers of
“no credit required” payment options, AFF’s technology provides its
merchant partners with seamless leasing and financing experiences
in-store, online, in-cart and on mobile devices.
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 websites located at
http://www.firstcash.com and
http://www.americanfirstfinance.com.
Forward-Looking
Information
This release contains forward-looking statements
about the business, financial condition, outlook and prospects of
FirstCash Holdings, Inc. and its wholly owned subsidiaries
(together, the “Company”), including the Company’s outlook for
2024. 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, outlook 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 that 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 and risks may
include, without limitation, risks related to the extensive
regulatory environment in which the Company operates; risks
associated with the legal and regulatory proceedings that the
Company is a party to, or may become a party to in the future,
including the Consumer Financial Protection Bureau (the “CFPB”)
lawsuit filed against the Company; risks related to the Company’s
acquisitions, including the failure of the Company’s acquisitions
to deliver the estimated value and benefits expected by the Company
and the ability of the Company to continue to identify and
consummate acquisitions on favorable terms; potential changes in
consumer behavior and shopping patterns which could impact demand
for the Company’s pawn loan, retail, lease-to-own (“LTO”) and
retail finance products, including those changes resulting from
shifts in the general economic conditions; labor shortages and
increased labor costs; a deterioration in the economic conditions
in the United States and Latin America, including as a result of
inflation and rising interest rates, which potentially could have
an impact on discretionary consumer spending and demand for the
Company’s products; currency fluctuations, primarily involving the
Mexican peso; competition the Company faces from other retailers
and providers of retail payment solutions; the ability of the
Company to successfully execute on its business strategies; and
other risks 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 other reports filed 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 HOLDINGS, INC.CONSOLIDATED
STATEMENTS OF INCOME(unaudited, in thousands) |
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue: |
|
|
|
|
|
|
|
|
Retail merchandise sales |
|
$ |
397,412 |
|
|
$ |
359,161 |
|
|
$ |
1,381,272 |
|
|
$ |
1,261,136 |
|
Pawn loan fees |
|
|
178,238 |
|
|
|
149,777 |
|
|
|
658,536 |
|
|
|
561,390 |
|
Leased merchandise income |
|
|
190,057 |
|
|
|
166,427 |
|
|
|
752,682 |
|
|
|
622,163 |
|
Interest and fees on finance receivables (1) |
|
|
59,571 |
|
|
|
46,241 |
|
|
|
233,818 |
|
|
|
181,280 |
|
Wholesale scrap jewelry sales |
|
|
26,856 |
|
|
|
27,738 |
|
|
|
125,488 |
|
|
|
102,973 |
|
Total revenue |
|
|
852,134 |
|
|
|
749,344 |
|
|
|
3,151,796 |
|
|
|
2,728,942 |
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Cost of retail merchandise sold |
|
|
241,402 |
|
|
|
220,831 |
|
|
|
832,393 |
|
|
|
764,553 |
|
Depreciation of leased merchandise (1) |
|
|
103,631 |
|
|
|
90,665 |
|
|
|
411,455 |
|
|
|
353,495 |
|
Provision for lease losses |
|
|
34,184 |
|
|
|
29,731 |
|
|
|
175,858 |
|
|
|
139,502 |
|
Provision for loan losses |
|
|
32,459 |
|
|
|
35,049 |
|
|
|
123,030 |
|
|
|
118,502 |
|
Cost of wholesale scrap jewelry sold |
|
|
22,809 |
|
|
|
23,933 |
|
|
|
101,821 |
|
|
|
88,304 |
|
Total cost of revenue |
|
|
434,485 |
|
|
|
400,209 |
|
|
|
1,644,557 |
|
|
|
1,464,356 |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
|
417,649 |
|
|
|
349,135 |
|
|
|
1,507,239 |
|
|
|
1,264,586 |
|
|
|
|
|
|
|
|
|
|
Expenses and other
income: |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
216,783 |
|
|
|
189,511 |
|
|
|
832,149 |
|
|
|
728,909 |
|
Administrative expenses |
|
|
51,887 |
|
|
|
37,061 |
|
|
|
176,315 |
|
|
|
147,943 |
|
Depreciation and amortization |
|
|
27,635 |
|
|
|
26,337 |
|
|
|
109,161 |
|
|
|
103,832 |
|
Interest expense |
|
|
26,586 |
|
|
|
19,959 |
|
|
|
93,243 |
|
|
|
70,708 |
|
Interest income |
|
|
(216 |
) |
|
|
(209 |
) |
|
|
(1,469 |
) |
|
|
(1,313 |
) |
Loss (gain) on foreign exchange |
|
|
376 |
|
|
|
(387 |
) |
|
|
(1,529 |
) |
|
|
(585 |
) |
Merger and acquisition expenses |
|
|
4,252 |
|
|
|
2,027 |
|
|
|
7,922 |
|
|
|
3,739 |
|
Gain on revaluation of contingent acquisition consideration |
|
|
— |
|
|
|
(26,760 |
) |
|
|
— |
|
|
|
(109,549 |
) |
Other expenses (income), net |
|
|
(1,142 |
) |
|
|
(10 |
) |
|
|
(1,402 |
) |
|
|
(2,731 |
) |
Total expenses and other income |
|
|
326,161 |
|
|
|
247,529 |
|
|
|
1,214,390 |
|
|
|
940,953 |
|
|
|
|
|
|
|
|
|
|
Income before income
taxes |
|
|
91,488 |
|
|
|
101,606 |
|
|
|
292,849 |
|
|
|
323,633 |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
21,899 |
|
|
|
21,540 |
|
|
|
73,548 |
|
|
|
70,138 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
69,589 |
|
|
$ |
80,066 |
|
|
$ |
219,301 |
|
|
$ |
253,495 |
|
(1) As a result of purchase accounting,
AFF’s as reported amounts for the three and twelve months ended
December 31, 2022 contain significant fair value adjustments. See
reconciliation of reported amounts to adjusted amounts excluding
the impacts of purchase accounting in the “Retail POS Payment
Solutions Segment Results” section elsewhere in this release.
FIRSTCASH HOLDINGS, INC.CONSOLIDATED
BALANCE SHEETS(unaudited, in thousands) |
|
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
$ |
127,018 |
|
|
$ |
117,330 |
|
Accounts receivable, net |
|
|
71,922 |
|
|
|
57,792 |
|
Pawn loans |
|
|
471,846 |
|
|
|
390,617 |
|
Finance receivables, net |
|
|
113,901 |
|
|
|
103,494 |
|
Inventories |
|
|
312,089 |
|
|
|
288,339 |
|
Leased merchandise, net |
|
|
171,191 |
|
|
|
153,302 |
|
Prepaid expenses and other
current assets |
|
|
38,634 |
|
|
|
19,788 |
|
Total current assets |
|
|
1,306,601 |
|
|
|
1,130,662 |
|
|
|
|
|
|
Property and equipment,
net |
|
|
632,724 |
|
|
|
538,681 |
|
Operating lease right of use
asset |
|
|
328,458 |
|
|
|
307,009 |
|
Goodwill |
|
|
1,727,652 |
|
|
|
1,581,381 |
|
Intangible assets, net |
|
|
277,724 |
|
|
|
330,338 |
|
Other assets |
|
|
10,242 |
|
|
|
9,415 |
|
Deferred tax assets, net |
|
|
6,514 |
|
|
|
7,381 |
|
Total assets |
|
$ |
4,289,915 |
|
|
$ |
3,904,867 |
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
Accounts payable and accrued
liabilities |
|
$ |
163,050 |
|
|
$ |
139,460 |
|
Customer deposits and
prepayments |
|
|
70,580 |
|
|
|
63,125 |
|
Lease liability, current |
|
|
101,962 |
|
|
|
92,944 |
|
Total current liabilities |
|
|
335,592 |
|
|
|
295,529 |
|
|
|
|
|
|
Revolving unsecured credit
facilities |
|
|
568,000 |
|
|
|
339,000 |
|
Senior unsecured notes |
|
|
1,037,647 |
|
|
|
1,035,698 |
|
Deferred tax liabilities,
net |
|
|
136,773 |
|
|
|
151,759 |
|
Lease liability,
non-current |
|
|
215,485 |
|
|
|
203,115 |
|
Total liabilities |
|
|
2,293,497 |
|
|
|
2,025,101 |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
Common stock |
|
|
573 |
|
|
|
573 |
|
Additional paid-in capital |
|
|
1,741,046 |
|
|
|
1,734,528 |
|
Retained earnings |
|
|
1,218,029 |
|
|
|
1,060,603 |
|
Accumulated other comprehensive loss |
|
|
(43,037 |
) |
|
|
(106,573 |
) |
Common stock held in treasury, at cost |
|
|
(920,193 |
) |
|
|
(809,365 |
) |
Total stockholders’ equity |
|
|
1,996,418 |
|
|
|
1,879,766 |
|
Total liabilities and stockholders’ equity |
|
$ |
4,289,915 |
|
|
$ |
3,904,867 |
|
FIRSTCASH HOLDINGS,
INC.OPERATING
INFORMATION(UNAUDITED)
The Company’s reportable segments are as
follows:
- U.S.
pawn
- Latin America
pawn
- Retail POS payment solutions
(AFF)
The Company provides revenues, cost of revenues,
operating expenses, pre-tax operating income and earning assets by
segment. Operating expenses include salary and benefit expense of
pawn store-level employees, occupancy costs, bank charges,
security, insurance, utilities, supplies and other costs incurred
by the pawn stores. Additionally, costs incurred in operating AFF
have been classified as operating expenses, which include salary
and benefit expenses of certain operations-focused departments,
merchant partner incentives, bank and other payment processing
charges, credit reporting costs, information technology costs,
advertising costs and other operational costs incurred by AFF.
Administrative expenses and amortization expense of intangible
assets related to the purchase of AFF are not included in the
segment pre-tax operating income.
U.S. Pawn Segment Results
U.S. Pawn Operating Results and Margins
(dollars in thousands)
|
Three Months Ended |
|
|
|
|
December 31, |
|
Increase / |
|
2023 |
|
|
2022 |
|
|
(Decrease) |
Revenue: |
|
|
|
|
|
|
|
|
Retail merchandise sales |
$ |
243,697 |
|
|
$ |
222,383 |
|
|
|
10 |
% |
|
Pawn loan fees |
|
120,083 |
|
|
|
99,112 |
|
|
|
21 |
% |
|
Wholesale scrap jewelry sales |
|
17,463 |
|
|
|
17,851 |
|
|
|
(2 |
)% |
|
Total revenue |
|
381,243 |
|
|
|
339,346 |
|
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Cost of retail merchandise sold |
|
141,406 |
|
|
|
129,711 |
|
|
|
9 |
% |
|
Cost of wholesale scrap jewelry sold |
|
14,941 |
|
|
|
15,743 |
|
|
|
(5 |
)% |
|
Total cost of revenue |
|
156,347 |
|
|
|
145,454 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
224,896 |
|
|
|
193,892 |
|
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
|
Operating expenses |
|
119,627 |
|
|
|
104,467 |
|
|
|
15 |
% |
|
Depreciation and amortization |
|
6,799 |
|
|
|
5,944 |
|
|
|
14 |
% |
|
Total segment expenses |
|
126,426 |
|
|
|
110,411 |
|
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating
income |
$ |
98,470 |
|
|
$ |
83,481 |
|
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
Operating metrics: |
|
|
|
|
|
|
|
|
Retail merchandise sales margin |
42 |
% |
|
42 |
% |
|
|
|
Net revenue margin |
59 |
% |
|
57 |
% |
|
|
|
Segment pre-tax operating margin |
26 |
% |
|
25 |
% |
|
|
|
|
FIRSTCASH HOLDINGS, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED) |
|
|
Twelve Months Ended |
|
|
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
Increase |
Revenue: |
|
|
|
|
|
|
|
|
Retail merchandise sales |
$ |
854,190 |
|
|
$ |
818,548 |
|
|
|
4 |
% |
|
Pawn loan fees |
|
435,762 |
|
|
|
373,416 |
|
|
|
17 |
% |
|
Wholesale scrap jewelry sales |
|
78,571 |
|
|
|
63,004 |
|
|
|
25 |
% |
|
Total revenue |
|
1,368,523 |
|
|
|
1,254,968 |
|
|
|
9 |
% |
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Cost of retail merchandise sold |
|
490,544 |
|
|
|
478,718 |
|
|
|
2 |
% |
|
Cost of wholesale scrap jewelry sold |
|
64,545 |
|
|
|
54,893 |
|
|
|
18 |
% |
|
Total cost of revenue |
|
555,089 |
|
|
|
533,611 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
813,434 |
|
|
|
721,357 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
|
Operating expenses |
|
451,543 |
|
|
|
407,039 |
|
|
|
11 |
% |
|
Depreciation and amortization |
|
25,585 |
|
|
|
23,205 |
|
|
|
10 |
% |
|
Total segment expenses |
|
477,128 |
|
|
|
430,244 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating
income |
$ |
336,306 |
|
|
$ |
291,113 |
|
|
|
16 |
% |
|
|
|
|
|
|
|
|
|
|
Operating metrics: |
|
|
|
|
|
|
|
|
Retail merchandise sales margin |
43 |
% |
|
42 |
% |
|
|
|
Net revenue margin |
59 |
% |
|
57 |
% |
|
|
|
Segment pre-tax operating margin |
25 |
% |
|
23 |
% |
|
|
|
FIRSTCASH HOLDINGS,
INC.OPERATING INFORMATION
(CONTINUED)(UNAUDITED)
U.S. Pawn Earning Assets and Portfolio Metrics (dollars
in thousands, except as otherwise noted)
|
As of December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
Increase |
Earning assets: |
|
|
|
|
|
|
|
|
Pawn loans |
$ |
344,152 |
|
|
$ |
282,089 |
|
|
|
22 |
% |
|
Inventories |
|
221,843 |
|
|
|
202,594 |
|
|
|
10 |
% |
|
|
$ |
565,995 |
|
|
$ |
484,683 |
|
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
Average outstanding pawn loan
amount (in ones) |
$ |
258 |
|
|
$ |
247 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
Composition of pawn
collateral: |
|
|
|
|
|
|
|
|
General merchandise |
30 |
% |
|
30 |
% |
|
|
|
Jewelry |
70 |
% |
|
70 |
% |
|
|
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
inventories: |
|
|
|
|
|
|
|
|
General merchandise |
43 |
% |
|
41 |
% |
|
|
|
Jewelry |
57 |
% |
|
59 |
% |
|
|
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of inventory aged
greater than one year |
1 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turnover (trailing
twelve months cost of merchandise sales divided by average
inventories) |
2.8 times |
|
2.7 times |
|
|
|
FIRSTCASH HOLDINGS,
INC.OPERATING INFORMATION
(CONTINUED)(UNAUDITED)
Latin America Pawn Segment
Results
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. See the “Constant Currency
Results” section below for additional discussion of constant
currency operating results.
Latin America Pawn Operating Results and
Margins (dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Constant Currency Basis |
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
December 31, |
|
Increase / |
|
December 31, |
|
Increase / |
|
|
2023 |
|
|
(Decrease) |
|
2023 |
|
|
2022 |
|
|
(Decrease) |
|
(Non-GAAP) |
|
(Non-GAAP) |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail merchandise sales |
$ |
155,310 |
|
|
$ |
139,167 |
|
|
|
12 |
% |
|
|
$ |
139,353 |
|
|
|
— |
% |
|
Pawn loan fees |
|
58,155 |
|
|
|
50,665 |
|
|
|
15 |
% |
|
|
|
52,176 |
|
|
|
3 |
% |
|
Wholesale scrap jewelry sales |
|
9,393 |
|
|
|
9,887 |
|
|
|
(5 |
)% |
|
|
|
9,393 |
|
|
|
(5 |
)% |
|
Total revenue |
|
222,858 |
|
|
|
199,719 |
|
|
|
12 |
% |
|
|
|
200,922 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of retail merchandise sold |
|
100,870 |
|
|
|
92,392 |
|
|
|
9 |
% |
|
|
|
90,540 |
|
|
|
(2 |
)% |
|
Cost of wholesale scrap jewelry sold |
|
7,868 |
|
|
|
8,190 |
|
|
|
(4 |
)% |
|
|
|
7,046 |
|
|
|
(14 |
)% |
|
Total cost of revenue |
|
108,738 |
|
|
|
100,582 |
|
|
|
8 |
% |
|
|
|
97,586 |
|
|
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
114,120 |
|
|
|
99,137 |
|
|
|
15 |
% |
|
|
|
103,336 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
63,976 |
|
|
|
51,680 |
|
|
|
24 |
% |
|
|
|
57,624 |
|
|
|
12 |
% |
|
Depreciation and amortization |
|
5,466 |
|
|
|
4,805 |
|
|
|
14 |
% |
|
|
|
4,923 |
|
|
|
2 |
% |
|
Total segment expenses |
|
69,442 |
|
|
|
56,485 |
|
|
|
23 |
% |
|
|
|
62,547 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating
income |
$ |
44,678 |
|
|
$ |
42,652 |
|
|
|
5 |
% |
|
|
$ |
40,789 |
|
|
|
(4 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail merchandise sales margin |
35 |
% |
|
34 |
% |
|
|
|
|
35 |
% |
|
|
|
|
Net revenue margin |
51 |
% |
|
50 |
% |
|
|
|
|
51 |
% |
|
|
|
|
Segment pre-tax operating margin |
20 |
% |
|
21 |
% |
|
|
|
|
20 |
% |
|
|
|
|
|
FIRSTCASH HOLDINGS, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
Constant Currency Basis |
|
|
|
|
|
|
|
|
Twelve Months |
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
Twelve Months Ended |
|
|
|
|
|
December 31, |
|
Increase / |
|
December 31, |
|
|
|
|
2023 |
|
|
(Decrease) |
|
2023 |
|
|
2022 |
|
|
Increase |
|
(Non-GAAP) |
|
(Non-GAAP) |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail merchandise sales |
$ |
533,612 |
|
|
$ |
447,523 |
|
|
|
19 |
% |
|
|
$ |
474,744 |
|
|
|
6 |
% |
|
Pawn loan fees |
|
222,774 |
|
|
|
187,974 |
|
|
|
19 |
% |
|
|
|
198,013 |
|
|
|
5 |
% |
|
Wholesale scrap jewelry sales |
|
46,917 |
|
|
|
39,969 |
|
|
|
17 |
% |
|
|
|
46,917 |
|
|
|
17 |
% |
|
Total revenue |
|
803,303 |
|
|
|
675,466 |
|
|
|
19 |
% |
|
|
|
719,674 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of retail merchandise sold |
|
345,309 |
|
|
|
288,449 |
|
|
|
20 |
% |
|
|
|
307,442 |
|
|
|
7 |
% |
|
Cost of wholesale scrap jewelry sold |
|
37,276 |
|
|
|
33,411 |
|
|
|
12 |
% |
|
|
|
33,006 |
|
|
|
(1 |
)% |
|
Total cost of revenue |
|
382,585 |
|
|
|
321,860 |
|
|
|
19 |
% |
|
|
|
340,448 |
|
|
|
6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
420,718 |
|
|
|
353,606 |
|
|
|
19 |
% |
|
|
|
379,226 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
243,146 |
|
|
|
193,254 |
|
|
|
26 |
% |
|
|
|
217,507 |
|
|
|
13 |
% |
|
Depreciation and amortization |
|
21,350 |
|
|
|
18,325 |
|
|
|
17 |
% |
|
|
|
19,199 |
|
|
|
5 |
% |
|
Total segment expenses |
|
264,496 |
|
|
|
211,579 |
|
|
|
25 |
% |
|
|
|
236,706 |
|
|
|
12 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating income |
$ |
156,222 |
|
|
$ |
142,027 |
|
|
|
10 |
% |
|
|
$ |
142,520 |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail merchandise sales margin |
35 |
% |
|
36 |
% |
|
|
|
|
35 |
% |
|
|
|
|
Net revenue margin |
52 |
% |
|
52 |
% |
|
|
|
|
53 |
% |
|
|
|
|
Segment pre-tax operating margin |
19 |
% |
|
21 |
% |
|
|
|
|
20 |
% |
|
|
|
|
FIRSTCASH HOLDINGS,
INC.OPERATING INFORMATION
(CONTINUED)(UNAUDITED)
Latin America Pawn Earning Assets and
Portfolio Metrics (dollars in thousands, except as otherwise
noted)
|
|
|
|
|
|
|
|
|
|
|
Constant Currency Basis |
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
Increase / |
|
As of December 31, |
|
|
|
|
2023 |
|
|
(Decrease) |
|
2023 |
|
|
2022 |
|
|
Increase |
|
(Non-GAAP) |
|
(Non-GAAP) |
Earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pawn loans |
$ |
127,694 |
|
|
$ |
108,528 |
|
|
|
18 |
% |
|
|
$ |
112,110 |
|
|
|
3 |
% |
|
Inventories |
|
90,246 |
|
|
|
85,745 |
|
|
|
5 |
% |
|
|
|
79,218 |
|
|
|
(8 |
)% |
|
|
$ |
217,940 |
|
|
$ |
194,273 |
|
|
|
12 |
% |
|
|
$ |
191,328 |
|
|
|
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average outstanding pawn loan
amount (in ones) |
$ |
95 |
|
|
$ |
83 |
|
|
|
14 |
% |
|
|
$ |
84 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of pawn
collateral: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General merchandise |
63 |
% |
|
67 |
% |
|
|
|
|
|
|
|
|
|
|
Jewelry |
37 |
% |
|
33 |
% |
|
|
|
|
|
|
|
|
|
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Composition of
inventories: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General merchandise |
67 |
% |
|
71 |
% |
|
|
|
|
|
|
|
|
|
|
Jewelry |
33 |
% |
|
29 |
% |
|
|
|
|
|
|
|
|
|
|
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of inventory aged
greater than one year |
1 |
% |
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory turnover (trailing
twelve months cost of merchandise sales divided by average
inventories) |
4.4 times |
|
4.2 times |
|
|
|
|
|
|
|
|
|
|
FIRSTCASH HOLDINGS,
INC.OPERATING INFORMATION
(CONTINUED)(UNAUDITED)
Retail POS Payment Solutions Segment
Results
Retail POS Payment Solutions Operating
Results (dollars in thousands)
|
|
|
|
|
|
|
|
|
Adjusted (1) |
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
December 31, |
|
Increase / |
|
December 31, |
|
Increase / |
|
|
2022 |
|
|
(Decrease) |
|
|
2023 |
|
|
|
2022 |
|
|
(Decrease) |
|
(Non-GAAP) |
|
(Non-GAAP) |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased merchandise income |
$ |
190,057 |
|
|
$ |
166,427 |
|
|
|
14 |
% |
|
|
$ |
166,427 |
|
|
|
14 |
% |
|
Interest and fees on finance receivables |
|
59,571 |
|
|
|
46,241 |
|
|
|
29 |
% |
|
|
|
54,100 |
|
|
|
10 |
% |
|
Total revenue |
|
249,628 |
|
|
|
212,668 |
|
|
|
17 |
% |
|
|
|
220,527 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of leased merchandise |
|
104,114 |
|
|
|
91,090 |
|
|
|
14 |
% |
|
|
|
90,189 |
|
|
|
15 |
% |
|
Provision for lease losses |
|
35,564 |
|
|
|
29,913 |
|
|
|
19 |
% |
|
|
|
29,913 |
|
|
|
19 |
% |
|
Provision for loan losses |
|
32,459 |
|
|
|
35,049 |
|
|
|
(7 |
)% |
|
|
|
35,049 |
|
|
|
(7 |
)% |
|
Total cost of revenue |
|
172,137 |
|
|
|
156,052 |
|
|
|
10 |
% |
|
|
|
155,151 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
77,491 |
|
|
|
56,616 |
|
|
|
37 |
% |
|
|
|
65,376 |
|
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
33,180 |
|
|
|
33,364 |
|
|
|
(1 |
)% |
|
|
|
33,364 |
|
|
|
(1 |
)% |
|
Depreciation and amortization |
|
772 |
|
|
|
756 |
|
|
|
2 |
% |
|
|
|
756 |
|
|
|
2 |
% |
|
Total segment expenses |
|
33,952 |
|
|
|
34,120 |
|
|
|
— |
% |
|
|
|
34,120 |
|
|
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating
income |
$ |
43,539 |
|
|
$ |
22,496 |
|
|
|
94 |
% |
|
|
$ |
31,256 |
|
|
|
39 |
% |
|
(1) As a result of purchase accounting,
AFF’s as reported amounts for the three months ended
December 31, 2022 contain significant fair value adjustments.
The adjusted amounts for the three months ended December 31,
2022 exclude these fair value purchase accounting adjustments.
FIRSTCASH HOLDINGS, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
Adjusted (1) |
|
|
|
|
|
|
|
|
|
Twelve Months |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
2022 |
|
|
Increase |
|
|
2023 |
|
|
|
2022 |
|
|
Increase |
|
(Non-GAAP) |
|
(Non-GAAP) |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased merchandise income |
$ |
752,682 |
|
|
$ |
622,163 |
|
|
|
21 |
% |
|
|
$ |
622,163 |
|
|
|
21 |
% |
|
Interest and fees on finance receivables |
|
233,818 |
|
|
|
181,280 |
|
|
|
29 |
% |
|
|
|
223,937 |
|
|
|
4 |
% |
|
Total revenue |
|
986,500 |
|
|
|
803,443 |
|
|
|
23 |
% |
|
|
|
846,100 |
|
|
|
17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of leased merchandise |
|
413,546 |
|
|
|
354,104 |
|
|
|
17 |
% |
|
|
|
346,407 |
|
|
|
19 |
% |
|
Provision for lease losses |
|
177,418 |
|
|
|
140,118 |
|
|
|
27 |
% |
|
|
|
140,118 |
|
|
|
27 |
% |
|
Provision for loan losses |
|
123,030 |
|
|
|
118,502 |
|
|
|
4 |
% |
|
|
|
118,502 |
|
|
|
4 |
% |
|
Total cost of revenue |
|
713,994 |
|
|
|
612,724 |
|
|
|
17 |
% |
|
|
|
605,027 |
|
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
272,506 |
|
|
|
190,719 |
|
|
|
43 |
% |
|
|
|
241,073 |
|
|
|
13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
137,460 |
|
|
|
128,616 |
|
|
|
7 |
% |
|
|
|
128,616 |
|
|
|
7 |
% |
|
Depreciation and amortization |
|
3,030 |
|
|
|
2,912 |
|
|
|
4 |
% |
|
|
|
2,912 |
|
|
|
4 |
% |
|
Total segment expenses |
|
140,490 |
|
|
|
131,528 |
|
|
|
7 |
% |
|
|
|
131,528 |
|
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment pre-tax operating
income |
$ |
132,016 |
|
|
$ |
59,191 |
|
|
|
123 |
% |
|
|
$ |
109,545 |
|
|
|
21 |
% |
|
(1) As a result of purchase accounting,
AFF’s as reported amounts for 2022 contain significant fair value
adjustments. The adjusted amounts for 2022 exclude these fair value
purchase accounting adjustments.
FIRSTCASH HOLDINGS,
INC.OPERATING INFORMATION
(CONTINUED)(UNAUDITED)
Retail POS Payment Solutions Gross
Transaction Volumes (dollars in thousands)
|
Three Months Ended |
|
|
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
Increase |
Leased merchandise |
$ |
170,278 |
|
|
$ |
146,238 |
|
|
|
16 |
% |
|
Finance receivables |
|
102,279 |
|
|
|
93,434 |
|
|
|
9 |
% |
|
Total gross transaction volume |
$ |
272,557 |
|
|
$ |
239,672 |
|
|
|
14 |
% |
|
|
Twelve Months Ended |
|
|
|
|
December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
Increase |
Leased merchandise |
$ |
623,069 |
|
|
$ |
518,173 |
|
|
|
20 |
% |
|
Finance receivables |
|
405,765 |
|
|
|
333,052 |
|
|
|
22 |
% |
|
Total gross transaction volume |
$ |
1,028,834 |
|
|
$ |
851,225 |
|
|
|
21 |
% |
|
Retail POS Payment Solutions Earning
Assets (dollars in thousands)
|
As of December 31, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
Increase |
Leased merchandise, net: |
|
|
|
|
|
|
|
Leased merchandise, before allowance for lease losses |
$ |
267,458 |
|
|
$ |
233,974 |
|
|
|
14 |
% |
|
Less allowance for lease losses |
|
(95,752 |
) |
|
|
(79,576 |
) |
|
|
20 |
% |
|
Leased merchandise, net (1) |
$ |
171,706 |
|
|
$ |
154,398 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
Finance receivables, net: |
|
|
|
|
|
|
|
Finance receivables, before allowance for loan losses |
$ |
210,355 |
|
|
$ |
188,327 |
|
|
|
12 |
% |
|
Less allowance for loan losses |
|
(96,454 |
) |
|
|
(84,833 |
) |
|
|
14 |
% |
|
Finance receivables, net |
$ |
113,901 |
|
|
$ |
103,494 |
|
|
|
10 |
% |
|
(1) Includes $0.5 million and $1.1 million
of intersegment transactions as of December 31, 2023 and 2022,
respectively, related to the Company offering AFF’s LTO payment
solution in its U.S. pawn stores that are eliminated upon
consolidation. Excluding the intersegment transactions,
consolidated net leased merchandise as of December 31, 2023
and 2022 totaled $171.2 million and $153.3 million,
respectively.
FIRSTCASH HOLDINGS,
INC.OPERATING INFORMATION
(CONTINUED)(UNAUDITED)
Allowance for Lease and Loan Losses and
Other Portfolio Metrics (dollars in thousands)
|
|
|
|
|
|
|
|
|
|
Adjusted (5) |
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
Increase / |
|
|
2022 |
|
|
Increase |
|
|
|
2023 |
|
|
|
2022 |
|
|
(Decrease) |
|
(Non-GAAP) |
|
(Non-GAAP) |
Allowance for lease
losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
105,472 |
|
|
$ |
78,020 |
|
|
|
35 |
% |
|
|
$ |
85,630 |
|
|
|
23 |
% |
|
Provision for lease losses (1) |
|
|
35,564 |
|
|
|
29,913 |
|
|
|
19 |
% |
|
|
|
29,913 |
|
|
|
19 |
% |
|
Charge-offs |
|
|
(46,986 |
) |
|
|
(29,471 |
) |
|
|
59 |
% |
|
|
|
(37,081 |
) |
|
|
27 |
% |
|
Recoveries |
|
|
1,702 |
|
|
|
1,114 |
|
|
|
53 |
% |
|
|
|
1,114 |
|
|
|
53 |
% |
|
Balance at end of period |
|
$ |
95,752 |
|
|
$ |
79,576 |
|
|
|
20 |
% |
|
|
$ |
79,576 |
|
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased merchandise portfolio
metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision rate (2) |
21 |
% |
|
|
|
|
|
20 |
% |
|
|
|
|
Average monthly net charge-off rate (3) |
5.8 |
% |
|
|
|
|
|
5.3 |
% |
|
|
|
|
Delinquency rate (4) |
21.7 |
% |
|
|
|
|
|
21.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
96,684 |
|
|
$ |
78,413 |
|
|
|
23 |
% |
|
|
|
|
|
|
|
Provision for loan losses |
|
|
32,459 |
|
|
|
35,049 |
|
|
|
(7 |
)% |
|
|
|
|
|
|
|
Charge-offs |
|
|
(34,680 |
) |
|
|
(29,906 |
) |
|
|
16 |
% |
|
|
|
|
|
|
|
Recoveries |
|
|
1,991 |
|
|
|
1,277 |
|
|
|
56 |
% |
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
96,454 |
|
|
$ |
84,833 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance receivables portfolio
metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision rate (2) |
32 |
% |
38 |
% |
|
|
|
|
|
|
|
|
|
|
Average monthly net charge-off rate (3) |
5.2 |
% |
5.1 |
% |
|
|
|
|
|
|
|
|
|
|
Delinquency rate (4) |
21.8 |
% |
20.7 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Includes a provision increase of $1.4
million and $0.2 million from intersegment transactions for the
three months ended December 31, 2023 and 2022, respectively,
related to the Company offering AFF’s LTO payment solution in its
U.S. pawn stores that are eliminated upon consolidation. Excluding
the intersegment transactions, the provision for lease losses for
the three months ended December 31, 2023 and 2022 totaled
$34.2 million and $29.7 million, respectively.
(2) Calculated as provision for lease or
loan losses as a percentage of the respective gross transaction
volume originated.
(3) Calculated as charge-offs, net of
recoveries, as a percentage of the respective average earning asset
balance before allowance for lease or loan losses (adjusted to
exclude any fair value purchase accounting adjustments, as
applicable).
(4) Calculated as the percentage of the
respective contractual earning asset balance owed that is 1 to 89
days past due (the Company charges off leases and finance
receivables when they are 90 days or more contractually past
due).
(5) As a result of purchase accounting,
AFF’s as reported allowance for lease losses during 2022 contains
significant fair value adjustments. The adjusted amounts during
2022 exclude these fair value purchase accounting adjustments. As a
result of the significance of these accounting adjustments, the
Company does not believe that the unadjusted leased merchandise
portfolio metrics during 2022 provide a useful comparison against
the 2023 amounts.
FIRSTCASH HOLDINGS, INC.OPERATING
INFORMATION (CONTINUED)(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted (5) |
|
|
|
|
|
|
|
|
Twelve Months |
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
December 31, |
|
|
|
December 31, |
|
|
|
|
2022 |
|
|
Increase |
|
|
|
2023 |
|
|
|
2022 |
|
|
Increase |
|
(Non-GAAP) |
|
(Non-GAAP) |
Allowance for lease
losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
79,576 |
|
|
$ |
5,442 |
|
|
|
1,362 |
% |
|
|
$ |
66,968 |
|
|
|
19 |
% |
|
Provision for lease losses (1) |
|
|
177,418 |
|
|
|
140,118 |
|
|
|
27 |
% |
|
|
|
140,118 |
|
|
|
27 |
% |
|
Charge-offs |
|
|
(167,952 |
) |
|
|
(70,343 |
) |
|
|
139 |
% |
|
|
|
(131,869 |
) |
|
|
27 |
% |
|
Recoveries |
|
|
6,710 |
|
|
|
4,359 |
|
|
|
54 |
% |
|
|
|
4,359 |
|
|
|
54 |
% |
|
Balance at end of period |
|
$ |
95,752 |
|
|
$ |
79,576 |
|
|
|
20 |
% |
|
|
$ |
79,576 |
|
|
|
20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leased merchandise portfolio
metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision rate (2) |
28 |
% |
|
|
|
|
|
27 |
% |
|
|
|
|
Average monthly net charge-off rate (3) |
5.4 |
% |
|
|
|
|
|
4.9 |
% |
|
|
|
|
Delinquency rate (4) |
21.7 |
% |
|
|
|
|
|
21.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
84,833 |
|
|
$ |
75,574 |
|
|
|
12 |
% |
|
|
|
|
|
|
|
Provision for loan losses |
|
|
123,030 |
|
|
|
118,502 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
Charge-offs |
|
|
(117,961 |
) |
|
|
(114,535 |
) |
|
|
3 |
% |
|
|
|
|
|
|
|
Recoveries |
|
|
6,552 |
|
|
|
5,292 |
|
|
|
24 |
% |
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
96,454 |
|
|
$ |
84,833 |
|
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance receivables portfolio
metrics: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision rate (2) |
30 |
% |
36 |
% |
|
|
|
|
|
|
|
|
|
|
Average monthly net charge-off rate (3) |
4.7 |
% |
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
Delinquency rate (4) |
21.8 |
% |
20.7 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Includes a provision increase of $1.6
million and $0.6 million from intersegment transactions for 2023
and 2022, respectively, related to the Company offering AFF’s LTO
payment solution in its U.S. pawn stores that are eliminated upon
consolidation. Excluding the intersegment transactions, the
provision for lease losses for 2023 and 2022 totaled $175.9 million
and $139.5 million, respectively.
(2) Calculated as provision for lease or
loan losses as a percentage of the respective gross transaction
volume originated.
(3) Calculated as charge-offs, net of
recoveries, as a percentage of the respective average earning asset
balance before allowance for lease or loan losses (adjusted to
exclude any fair value purchase accounting adjustments, as
applicable).
(4) Calculated as the percentage of the
respective contractual earning asset balance owed that is 1 to 89
days past due (the Company charges off leases and finance
receivables when they are 90 days or more contractually past
due).
(5) As a result of purchase accounting,
AFF’s as reported allowance for lease losses during 2022 contains
significant fair value adjustments. The adjusted amounts during
2022 exclude these fair value purchase accounting adjustments. As a
result of the significance of these accounting adjustments, the
Company does not believe that the unadjusted leased merchandise
portfolio metrics during 2022 provide a useful comparison against
the 2023 amounts.
FIRSTCASH HOLDINGS,
INC.PAWN STORE LOCATIONS AND MERCHANT PARTNER
LOCATIONS
Pawn Operations
As of December 31, 2023, the Company
operated 2,997 pawn store locations comprised of 1,183 stores in 29
U.S. states and the District of Columbia, 1,721 stores in 32 states
in Mexico, 65 stores in Guatemala, 14 stores in Colombia and 14
stores in El Salvador.
The following tables detail pawn store count activity for the
three and twelve months ended December 31, 2023:
|
|
Three Months Ended December 31, 2023 |
|
|
U.S. |
|
Latin America |
|
Total |
Total locations, beginning of period |
|
1,181 |
|
|
1,807 |
|
|
2,988 |
|
New locations opened (1) |
|
— |
|
|
9 |
|
|
9 |
|
Locations acquired |
|
8 |
|
|
— |
|
|
8 |
|
Consolidation of existing pawn locations (2) |
|
(6 |
) |
|
(2 |
) |
|
(8 |
) |
Total locations, end of period |
|
1,183 |
|
|
1,814 |
|
|
2,997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended December 31, 2023 |
|
|
U.S. |
|
Latin America |
|
Total |
Total locations, beginning of
period |
|
1,101 |
|
|
1,771 |
|
|
2,872 |
|
New locations opened (1) |
|
5 |
|
|
61 |
|
|
66 |
|
Locations acquired |
|
91 |
|
|
— |
|
|
91 |
|
Consolidation of existing pawn locations (2) |
|
(14 |
) |
|
(18 |
) |
|
(32 |
) |
Total locations, end of period |
|
1,183 |
|
|
1,814 |
|
|
2,997 |
|
(1) In addition to new store openings, the
Company strategically relocated one store in the U.S. during the
three months ended December 31, 2023. During the twelve months
ended December 31, 2023, the Company strategically relocated
four stores in the U.S. and two stores in Latin America.
(2) Store consolidations were primarily
acquired locations over the past seven 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.
Retail POS Payment
Solutions
As of December 31, 2023, AFF provided LTO
and retail POS payment solutions for consumer goods and services
through a network of approximately 11,600 active retail merchant
partner locations located in all 50 U.S. states, the District of
Columbia and Puerto Rico. This compares to the active door count of
approximately 9,200 locations at December 31, 2022.
FIRSTCASH HOLDINGS,
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,
adjusted retail POS payment solutions segment metrics, adjusted
return on equity, adjusted return on assets 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,
including the Company’s transaction expenses incurred in connection
with its acquisition of AFF and the impacts of purchase accounting
with respect to the AFF acquisition, in order 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
(i) 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 (ii) to improve comparability of
current periods presented with prior periods.
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 HOLDINGS,
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. 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, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
InThousands |
|
PerShare |
|
InThousands |
|
PerShare |
|
InThousands |
|
PerShare |
|
InThousands |
|
PerShare |
Net income and diluted earnings per share, as reported |
$ |
69,589 |
|
|
$ |
1.53 |
|
|
$ |
80,066 |
|
|
$ |
1.72 |
|
|
$ |
219,301 |
|
|
$ |
4.80 |
|
|
$ |
253,495 |
|
|
$ |
5.36 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger and acquisition expenses |
|
3,271 |
|
|
|
0.07 |
|
|
|
1,561 |
|
|
|
0.03 |
|
|
|
6,089 |
|
|
|
0.13 |
|
|
|
2,878 |
|
|
|
0.06 |
|
Non-cash foreign currency gain related to lease liability |
|
(607 |
) |
|
|
(0.01 |
) |
|
|
(685 |
) |
|
|
(0.01 |
) |
|
|
(1,778 |
) |
|
|
(0.04 |
) |
|
|
(930 |
) |
|
|
(0.02 |
) |
AFF purchase accounting and other adjustments (1) |
|
21,472 |
|
|
|
0.47 |
|
|
|
17,660 |
|
|
|
0.38 |
|
|
|
54,341 |
|
|
|
1.19 |
|
|
|
82,432 |
|
|
|
1.74 |
|
Gain on revaluation of contingent acquisition consideration |
|
— |
|
|
|
— |
|
|
|
(21,952 |
) |
|
|
(0.47 |
) |
|
|
— |
|
|
|
— |
|
|
|
(90,035 |
) |
|
|
(1.91 |
) |
Other expenses (income), net |
|
(879 |
) |
|
|
(0.02 |
) |
|
|
(8 |
) |
|
|
— |
|
|
|
(1,079 |
) |
|
|
(0.02 |
) |
|
|
(2,103 |
) |
|
|
(0.04 |
) |
Adjusted net income and
diluted earnings per share |
$ |
92,846 |
|
|
$ |
2.04 |
|
|
$ |
76,642 |
|
|
$ |
1.65 |
|
|
$ |
276,874 |
|
|
$ |
6.06 |
|
|
$ |
245,737 |
|
|
$ |
5.19 |
|
(1) See detail of the AFF
purchase accounting and other adjustments in tables below.
FIRSTCASH HOLDINGS,
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, |
|
|
2023 |
|
|
|
2022 |
|
|
Pre-tax |
|
Tax |
|
After-tax |
|
Pre-tax |
|
Tax |
|
After-tax |
Merger and acquisition expenses |
$ |
4,252 |
|
|
$ |
981 |
|
|
$ |
3,271 |
|
|
$ |
2,027 |
|
|
$ |
466 |
|
|
$ |
1,561 |
|
Non-cash foreign currency gain
related to lease liability |
|
(867 |
) |
|
|
(260 |
) |
|
|
(607 |
) |
|
|
(979 |
) |
|
|
(294 |
) |
|
|
(685 |
) |
AFF purchase accounting and
other adjustments (i) |
|
27,886 |
|
|
|
6,414 |
|
|
|
21,472 |
|
|
|
22,935 |
|
|
|
5,275 |
|
|
|
17,660 |
|
Gain on revaluation of
contingent acquisition consideration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(26,760 |
) |
|
|
(4,808 |
) |
|
|
(21,952 |
) |
Other expenses (income),
net |
|
(1,142 |
) |
|
|
(263 |
) |
|
|
(879 |
) |
|
|
(10 |
) |
|
|
(2 |
) |
|
|
(8 |
) |
Total adjustments |
$ |
30,129 |
|
|
$ |
6,872 |
|
|
$ |
23,257 |
|
|
$ |
(2,787 |
) |
|
$ |
637 |
|
|
$ |
(3,424 |
) |
(i) The following table details
AFF purchase accounting and other adjustments (in thousands):
|
|
Three Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
Pre-tax |
|
Tax |
|
After-tax |
|
Pre-tax |
|
Tax |
|
After-tax |
|
Amortization of fair value adjustment on acquired finance
receivables |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
7,859 |
|
|
$ |
1,807 |
|
|
$ |
6,052 |
|
|
Amortization of fair value
adjustment on acquired leased merchandise |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
901 |
|
|
|
208 |
|
|
|
693 |
|
|
Amortization of acquired
intangible assets |
|
13,918 |
|
|
|
3,201 |
|
|
|
10,717 |
|
|
|
14,175 |
|
|
|
3,260 |
|
|
|
10,915 |
|
|
Other non-recurring costs
included in administrative expenses related to a discontinued
finance product |
|
13,968 |
|
|
|
3,213 |
|
|
|
10,755 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total AFF purchase accounting and other adjustments |
$ |
27,886 |
|
|
$ |
6,414 |
|
|
$ |
21,472 |
|
|
$ |
22,935 |
|
|
$ |
5,275 |
|
|
$ |
17,660 |
|
|
FIRSTCASH HOLDINGS, INC.RECONCILIATIONS OF
NON-GAAP FINANCIAL MEASURESTO GAAP FINANCIAL
MEASURES (CONTINUED)(UNAUDITED) |
|
|
Twelve Months Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
Pre-tax |
|
Tax |
|
After-tax |
|
Pre-tax |
|
Tax |
|
After-tax |
Merger and acquisition expenses |
$ |
7,922 |
|
|
$ |
1,833 |
|
|
$ |
6,089 |
|
|
$ |
3,739 |
|
|
$ |
861 |
|
|
$ |
2,878 |
|
Non-cash foreign currency gain
related to lease liability |
|
(2,540 |
) |
|
|
(762 |
) |
|
|
(1,778 |
) |
|
|
(1,329 |
) |
|
|
(399 |
) |
|
|
(930 |
) |
AFF purchase accounting and
other adjustments (i) |
|
70,574 |
|
|
|
16,233 |
|
|
|
54,341 |
|
|
|
107,055 |
|
|
|
24,623 |
|
|
|
82,432 |
|
Gain on revaluation of
contingent acquisition consideration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(109,549 |
) |
|
|
(19,514 |
) |
|
|
(90,035 |
) |
Other expenses (income),
net |
|
(1,402 |
) |
|
|
(323 |
) |
|
|
(1,079 |
) |
|
|
(2,731 |
) |
|
|
(628 |
) |
|
|
(2,103 |
) |
Total adjustments |
$ |
74,554 |
|
|
$ |
16,981 |
|
|
$ |
57,573 |
|
|
$ |
(2,815 |
) |
|
$ |
4,943 |
|
|
$ |
(7,758 |
) |
(i) The following table details
AFF purchase accounting and other adjustments (in thousands):
|
|
Twelve Months Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
Pre-tax |
|
Tax |
|
After-tax |
|
Pre-tax |
|
Tax |
|
After-tax |
|
Amortization of fair value adjustment on acquired finance
receivables |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
42,657 |
|
|
$ |
9,811 |
|
|
$ |
32,846 |
|
|
Amortization of fair value
adjustment on acquired leased merchandise |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,697 |
|
|
|
1,772 |
|
|
|
5,925 |
|
|
Amortization of acquired
intangible assets |
|
56,606 |
|
|
|
13,020 |
|
|
|
43,586 |
|
|
|
56,701 |
|
|
|
13,040 |
|
|
|
43,661 |
|
|
Other non-recurring costs
included in administrative expenses related to a discontinued
finance product |
|
13,968 |
|
|
|
3,213 |
|
|
|
10,755 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total AFF purchase accounting and other adjustments |
$ |
70,574 |
|
|
$ |
16,233 |
|
|
$ |
54,341 |
|
|
$ |
107,055 |
|
|
$ |
24,623 |
|
|
$ |
82,432 |
|
FIRSTCASH HOLDINGS,
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 as a starting
point in the calculation of the consolidated total debt ratio as
defined in the Company’s senior unsecured notes. The following
table provides a reconciliation of net income to EBITDA and
adjusted EBITDA (in thousands):
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net income |
|
$ |
69,589 |
|
|
$ |
80,066 |
|
|
$ |
219,301 |
|
|
$ |
253,495 |
|
Income taxes |
|
|
21,899 |
|
|
|
21,540 |
|
|
|
73,548 |
|
|
|
70,138 |
|
Depreciation and amortization |
|
|
27,635 |
|
|
|
26,337 |
|
|
|
109,161 |
|
|
|
103,832 |
|
Interest expense |
|
|
26,586 |
|
|
|
19,959 |
|
|
|
93,243 |
|
|
|
70,708 |
|
Interest income |
|
|
(216 |
) |
|
|
(209 |
) |
|
|
(1,469 |
) |
|
|
(1,313 |
) |
EBITDA |
|
|
145,493 |
|
|
|
147,693 |
|
|
|
493,784 |
|
|
|
496,860 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Merger and acquisition expenses |
|
|
4,252 |
|
|
|
2,027 |
|
|
|
7,922 |
|
|
|
3,739 |
|
Non-cash foreign currency gain related to lease liability |
|
|
(867 |
) |
|
|
(979 |
) |
|
|
(2,540 |
) |
|
|
(1,329 |
) |
AFF purchase accounting and other adjustments (1) |
|
|
13,968 |
|
|
|
8,760 |
|
|
|
13,968 |
|
|
|
50,354 |
|
Gain on revaluation of contingent acquisition consideration |
|
|
— |
|
|
|
(26,760 |
) |
|
|
— |
|
|
|
(109,549 |
) |
Other expenses (income), net |
|
|
(1,142 |
) |
|
|
(10 |
) |
|
|
(1,402 |
) |
|
|
(2,731 |
) |
Adjusted EBITDA |
|
$ |
161,704 |
|
|
$ |
130,731 |
|
|
$ |
511,732 |
|
|
$ |
437,344 |
|
(1) Excludes $14 million and
$57 million of amortization expense related to identifiable
intangible assets as a result of the AFF acquisition for the three
and twelve months ended December 31, 2023 and 2022,
respectively, which is included in the add-back of depreciation and
amortization to net income used to calculate EBITDA. See detail of
AFF purchase accounting and other adjustments in the “Adjusted Net
Income and Adjusted Diluted Earnings Per Share” section above.
FIRSTCASH HOLDINGS,
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 loan
and finance receivables, 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 additional measures 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, that 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):
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Cash flow from operating
activities |
$ |
99,105 |
|
|
$ |
143,507 |
|
|
$ |
416,142 |
|
|
$ |
469,305 |
|
Cash flow from investing
activities: |
|
|
|
|
|
|
|
Pawn loans, net (1) |
|
24,448 |
|
|
|
38,890 |
|
|
|
(34,978 |
) |
|
|
(35,817 |
) |
Finance receivables, net |
|
(27,448 |
) |
|
|
(35,719 |
) |
|
|
(115,442 |
) |
|
|
(85,353 |
) |
Purchases of furniture, fixtures, equipment and improvements |
|
(13,425 |
) |
|
|
(5,956 |
) |
|
|
(60,148 |
) |
|
|
(35,586 |
) |
Free cash flow |
|
82,680 |
|
|
|
140,722 |
|
|
|
205,574 |
|
|
|
312,549 |
|
Merger and acquisition expenses paid, net of tax benefit |
|
3,271 |
|
|
|
1,561 |
|
|
|
6,089 |
|
|
|
2,878 |
|
Adjusted free cash flow |
$ |
85,951 |
|
|
$ |
142,283 |
|
|
$ |
211,663 |
|
|
$ |
315,427 |
|
(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 HOLDINGS,
INC.RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURESTO GAAP FINANCIAL MEASURES
(CONTINUED)(UNAUDITED)
Retail POS Payment Solutions Segment Purchase Accounting
Adjustments
Management believes the presentation of certain
retail POS payment solutions segment metrics, adjusted to exclude
the impacts of purchase accounting, provides investors with greater
transparency and provides a more complete understanding of AFF’s
financial performance and prospects for the future by excluding the
impacts of purchase accounting, which management believes is
non-operating in nature and not representative of AFF’s core
operating performance. See the retail POS payment solutions segment
tables elsewhere in this release for additional reconciliation of
certain amounts adjusted to exclude the impacts of purchase
accounting to as reported GAAP amounts.
Additionally, the following table provides
reconciliations of total revenue and total net revenue, presented
in accordance with GAAP, to adjusted total revenue and adjusted net
revenue, which excludes the impacts of purchase accounting (in
thousands):
|
Three Months Ended |
|
Twelve Months Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Total revenue, as
reported |
$ |
852,134 |
|
|
$ |
749,344 |
|
|
$ |
3,151,796 |
|
|
$ |
2,728,942 |
|
AFF purchase accounting and
other adjustments (1) |
|
— |
|
|
|
7,859 |
|
|
|
— |
|
|
|
42,657 |
|
Adjusted total revenue |
$ |
852,134 |
|
|
$ |
757,203 |
|
|
$ |
3,151,796 |
|
|
$ |
2,771,599 |
|
|
|
|
|
|
|
|
|
Total net revenue, as
reported |
$ |
417,649 |
|
|
$ |
349,135 |
|
|
$ |
1,507,239 |
|
|
$ |
1,264,586 |
|
AFF purchase accounting and
other adjustments (1) |
|
— |
|
|
|
8,760 |
|
|
|
— |
|
|
|
50,354 |
|
Adjusted total net revenue |
$ |
417,649 |
|
|
$ |
357,895 |
|
|
$ |
1,507,239 |
|
|
$ |
1,314,940 |
|
(1) As a result of purchase accounting,
AFF’s as reported amounts for the three and twelve months ended
December 31, 2022 contain significant fair value adjustments.
The adjusted amounts for the three and twelve months ended
December 31, 2022 exclude these fair value purchase accounting
adjustments.
FIRSTCASH HOLDINGS,
INC.RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURESTO GAAP FINANCIAL MEASURES
(CONTINUED)(UNAUDITED)
Adjusted Return on Equity and Adjusted Return on
Assets
Management believes the presentation of adjusted
return on equity and adjusted return on assets provides investors
with greater transparency and provides a more complete
understanding of the Company’s financial performance by excluding
items that management believes are non-operating in nature and not
representative of the Company’s core operating performance.
Annualized adjusted return on equity and
adjusted return on assets is calculated as follows (dollars in
thousands):
|
Twelve Months Ended |
|
December 31, 2023 |
Adjusted net income (1) |
$ |
276,874 |
|
|
|
|
Average stockholders’ equity
(average of five most recent quarter-end balances) |
$ |
1,912,272 |
|
Adjusted return on equity
(trailing twelve months adjusted net income divided by average
equity) |
14 |
% |
|
|
|
Average total assets (average
of five most recent quarter-end balances) |
$ |
4,039,640 |
|
Adjusted return on assets
(trailing twelve months adjusted net income divided by average
total assets) |
7 |
% |
(1) See detail of adjustments to net income
in the “Adjusted Net Income and Adjusted Diluted Earnings Per
Share” section above.
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 in Mexico, Guatemala and Colombia.
The Company also has operations in El Salvador, where the reporting
and functional currency is the U.S. dollar.
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. See the Latin America pawn
segment tables elsewhere in this release for additional
reconciliation of certain constant currency amounts to as reported
GAAP amounts.
FIRSTCASH HOLDINGS,
INC.RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURESTO GAAP FINANCIAL MEASURES
(CONTINUED)(UNAUDITED)
Exchange Rates for the Mexican Peso,
Guatemalan Quetzal and Colombian Peso
|
|
December 31, |
|
Favorable / |
|
|
2023 |
|
2022 |
|
(Unfavorable) |
Mexican peso / U.S. dollar
exchange rate: |
|
|
|
|
|
|
|
|
|
|
End-of-period |
|
16.9 |
|
|
19.4 |
|
|
|
13 |
% |
|
Three months ended |
|
17.6 |
|
|
19.7 |
|
|
|
11 |
% |
|
Twelve months ended |
|
17.8 |
|
|
20.1 |
|
|
|
11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Guatemalan quetzal / U.S.
dollar exchange rate: |
|
|
|
|
|
|
|
|
|
|
End-of-period |
|
7.8 |
|
|
7.9 |
|
|
|
1 |
% |
|
Three months ended |
|
7.8 |
|
|
7.8 |
|
|
|
— |
% |
|
Twelve months ended |
|
7.8 |
|
|
7.7 |
|
|
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
Colombian peso / U.S. dollar
exchange rate: |
|
|
|
|
|
|
|
|
|
|
End-of-period |
|
3,822 |
|
|
4,810 |
|
|
|
21 |
% |
|
Three months ended |
|
4,070 |
|
|
4,809 |
|
|
|
15 |
% |
|
Twelve months ended |
|
4,328 |
|
|
4,253 |
|
|
|
(2 |
)% |
|
For further information, please contact: Gar JacksonGlobal IR
Group |
Phone: |
|
(817) 886-6998 |
Email: |
|
gar@globalirgroup.com |
|
|
|
Doug Orr, Executive Vice President and Chief Financial Officer |
Phone: |
|
(817) 258-2650 |
Email: |
|
investorrelations@firstcash.com |
Website: |
|
investors.firstcash.com |
FirstCash (NASDAQ:FCFS)
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