FirstCash Reports Second Quarter Revenues and Earnings; 91 Stores Added Year-to-Date Through New Openings and Acquisitions; Company Announces Exit from Unsecured Consumer Lending Operations
Mr.
“Our second quarter results demonstrated the inherent diversification and uniqueness of the pawnshop business model, which generates revenues from both specialty retail operations and small-dollar, non-recourse lending. Second quarter retail sales were especially robust in the
“Cash flows were particularly impressive during the quarter, which were used to reduce outstanding debt by
This release contains adjusted earnings measures, which exclude, among other things, merger and other acquisition expenses, certain non-cash foreign currency exchange gains and losses, non-cash write-offs of certain lease intangibles and the impairment of certain other assets 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 |
||||||||||||||||
As Reported (GAAP) | Adjusted (Non-GAAP) | |||||||||||||||
In thousands, except per share amounts | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue | $ | 412,746 | $ | 446,014 | $ | 412,746 | $ | 446,014 | ||||||||
Net income | $ | 25,873 | $ | 33,048 | $ | 25,872 | $ | 35,297 | ||||||||
Diluted earnings per share | $ | 0.62 | $ | 0.76 | $ | 0.62 | $ | 0.82 | ||||||||
EBITDA (non-GAAP measure) | $ | 53,962 | $ | 64,189 | $ | 53,930 | $ | 67,094 | ||||||||
Weighted-average diluted shares | 41,531 | 43,256 | 41,531 | 43,256 |
Six Months Ended |
||||||||||||||||
As Reported (GAAP) | Adjusted (Non-GAAP) | |||||||||||||||
In thousands, except per share amounts | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue | $ | 879,236 | $ | 913,618 | $ | 879,236 | $ | 913,618 | ||||||||
Net income | $ | 58,791 | $ | 75,703 | $ | 66,167 | $ | 77,818 | ||||||||
Diluted earnings per share | $ | 1.41 | $ | 1.74 | $ | 1.59 | $ | 1.79 | ||||||||
EBITDA (non-GAAP measure) | $ | 118,586 | $ | 141,072 | $ | 128,536 | $ | 143,786 | ||||||||
Weighted-average diluted shares | 41,769 | 43,456 | 41,769 | 43,456 |
Consolidated Earnings Highlights
- Due primarily to the impacts of COVID-19, lower foreign exchange rates and the wind-down of consumer lending operations, diluted earnings per share decreased 18% on a GAAP basis and 24% on an adjusted non-GAAP basis in the second quarter of 2020 compared to the prior-year quarter. For the six month year-to-date period, diluted earnings per share decreased 19% on a GAAP basis and 11% on an adjusted non-GAAP basis.
- The COVID-19 related impact on lending demand resulted in pawn fee revenues declining 26% in the second quarter and 12% year-to-date, as compared to the respective prior-year periods. The impact on pawn fees was partially offset by increases in net revenues (gross profit) from retail operations of 13% in the second quarter and 10% year-to-date.
- Foreign exchange rates in
Latin America were also impacted by COVID-19, affectingU.S. dollar-reported earnings per share and representing approximately$0.04 of earnings drag in the second quarter and$0.05 year-to-date. - While contraction and termination of non-core unsecured consumer lending operations did not impact second quarter 2020 earnings per share on a GAAP basis and reduced year-over-year GAAP earnings by just
$0.05 per share year-to-date, it reduced adjusted non-GAAP earnings per share by$0.03 in the second quarter and$0.10 year-to-date compared to the respective prior-year periods.
- The COVID-19 related impact on lending demand resulted in pawn fee revenues declining 26% in the second quarter and 12% year-to-date, as compared to the respective prior-year periods. The impact on pawn fees was partially offset by increases in net revenues (gross profit) from retail operations of 13% in the second quarter and 10% year-to-date.
- Net income for the second quarter totaled
$26 million on both a GAAP and adjusted non-GAAP basis. For the trailing twelve months endedJune 30, 2020 , consolidated net income was$148 million , while adjusted EBITDA totaled$289 million . - Cash flow from operating activities was
$66 million in the second quarter and$269 million for the trailing twelve months endedJune 30, 2020 . Adjusted free cash flow, a non-GAAP financial measure, was a record$182 million for the quarter and on a trailing twelve months basis was a record$421 million .
Acquisitions and Store Opening Highlights
- A total of 20 de novo locations were opened in
Latin America during the second quarter, which included 18 locations inMexico , one inColombia and one inGuatemala . Year-to-date, a total of 51 de novo stores have been opened, including 44 locations inMexico , five inColombia and two inGuatemala . - The Company acquired four Prendamex stores from a franchisee during the second quarter of 2020. Year-to-date, a total of 40 stores have been acquired in
Mexico . - The Company added a total 91 locations in the first six months of 2020 and 133 over the trailing twelve month period ended
June 30, 2020 .
- During the second quarter, all of the current 1,035
U.S. stores remained operational, excluding a very limited number of temporary closures primarily related to local decrees or the Company’s COVID-19 safety protocols. - Total domestic revenues for the second quarter increased 4%. Revenues increased 6%, excluding the decline in fees from non-core unsecured consumer lending operations.
- Despite incremental expenses related to COVID-19 and the contraction of non-core unsecured consumer lending operations, domestic pre-tax operating income increased 3% in the second quarter compared to the prior-year quarter.
- With the onset of COVID-19 related lock-downs of the economy and the rapid federal stimulus response, pawn loan originations in the
U.S. fell significantly in April, declining almost 60% for the month. Beginning in May, pawn loan originations began to slowly improve but were still down 30% to 35% in early July. Resulting pawn balances atJune 30 were down 40% in total and on a same-store basis compared to the prior year. - Resulting pawn fee revenues for the quarter were down 20% in total and on a same-store basis. The revenue decline was smaller than the decrease in loan balances, reflecting strong collections of fees and principal on loans outstanding at the beginning of the quarter and a smaller percentage of forfeited loans during the quarter. The resulting average monthly yield of 15% on the pawn loan portfolio represented an improvement of approximately 300 basis points compared to the yield in the prior-year quarter.
- Retail sales and margins in the second quarter were especially strong and fully offset the impact from the decline in domestic pawn fee revenue. Total retail sales increased 24% in the second quarter, while same-store retail sales increased a record 24%. The Company’s ability to keep its stores open during the quarter as an essential business and offer popular stay-at-home products such as laptops, tablets, monitors, gaming systems and sporting goods drove the strong retail sales demand.
- Second quarter retail margins of 42% improved significantly compared to margins of 38% in the same quarter last year, reflecting the strong retail demand and lower levels of aged inventory which limited the need for normal discounting. The margin improvement coupled with the increase in top-line retail sales drove a 36% increase in gross profit from retail operations for the quarter. Inventory turns continued to improve and aged inventories continued to decline, accounting for less than 3% of total inventories at
June 30 , compared to 4% a year ago. - Net revenue from non-core scrap jewelry sales increased 20% for the quarter and 6% year-to-date compared to the respective prior-year periods, driven primarily by accelerating margin improvement related to increased gold prices.
- The Company made the strategic decision to cease offering unsecured consumer loan and credit services products, including all payday and installment loans, in the
U.S. EffectiveJune 30, 2020 , the Company no longer has any unsecured consumer lending or credit services operations in theU.S. orLatin America . - Revenues from consumer lending operations totaled only
$0.6 million in the second quarter compared to$5.4 million in the second quarter of last year.
Note: Certain growth rates in “Latin America 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
Latin America Pawn Operations
- Over 99% of the Company’s stores in
Latin America are currently open and operating. During the second quarter, operations in each country were impacted as follows:Mexico (1,628 total locations) - Excluding short-term closings due to regulatory decree or safety protocols, stores inMexico were generally open most of the quarter. However, retail sales in all stores were completely prohibited by regulators during the last three weeks of May.Guatemala (56 total locations) - Stores inGuatemala were generally open during the quarter, although regulators imposed country-wide lock-downs on many weekends and two mall-based locations were closed for extended periods.El Salvador - (13 total locations) - Stores inEl Salvador were closed as part of a broad government imposed lock-down from late March through the end of May.Colombia - (13 total locations) - Stores inColombia were closed as part of a broad government imposed lock-down beginning in late March and continuing through various dates in June and early July.
- Total revenues declined 27% in the second quarter, reflecting the temporary store closings, retail restrictions and other impacts of COVID-19, including weaker foreign currencies. Revenues on a constant currency basis declined 12% in the second quarter while pre-tax operating income declined 43%, or 36% on a constant currency basis.
- Consistent with
U.S. trends, which saw sharp declines in economic activity and personal spending, pawn loans outstanding atJune 30 decreased 36% on aU.S. dollar translated basis and 24% on a constant currency basis compared to the prior year. Same-store pawn loans at quarter end decreased 38% on aU.S. dollar translated basis and 27% on a constant currency basis. While there were limited government stimulus programs in the region in response to the pandemic, we believe that cross-border remittance payments from theU.S. provided additional liquidity early in the quarter, with theBank of Mexico reporting a 35% year-over-year surge in remittances toMexico in March which was tied to the drop in the exchange rate. - Pawn fees decreased 36% in total, or 22% on a constant currency basis, as compared to the prior-year quarter. On a same-store basis, pawn fees decreased 39% on a
U.S. dollar basis and were down 25% on a constant currency basis compared to the prior-year quarter. Also similar toU.S. results, pawn redemptions inLatin America were strong and drove improved yields during the quarter. - Retail sales demand and margins in
Latin America , while strong for “essential” general merchandise categories, were negatively impacted by extended store closures in certain markets and the three week shutdown of all retail operations inMexico during May. Results for the full quarter saw a 29% decrease in total retail sales, or 13% on a constant currency basis. Same-store retail sales decreased 31% on aU.S. dollar basis and were down 16% on a constant currency basis. - Segment retail sales margins were 36% in the second quarter compared to 35% in both the previous sequential quarter and the second quarter of the prior-year, reflecting strong turns for essential products such as computers, tablets and phones. Aged inventories remained low at less than 2% of total inventories.
- Net revenue from non-core scrap jewelry sales was
$3.3 million for the quarter compared to$0.1 million in the prior-year period with sales margins of 25%, driven by increased dollar-denominated gold prices.
Liquidity
- During the second quarter, the Company utilized operating cash flows to pay down
$156 million in debt under its revolving bank credit facilities. The lower debt balances coupled with the recent decline in interest rates resulted in an 18% decrease in interest expense during the quarter as compared to the prior-year quarter. - The Company’s strong liquidity position at
June 30, 2020 includes cash balances of$71 million and$323 million of availability under its bank lines of credit. - The net debt ratio improved to 1.5 to 1 for the trailing twelve months ended
June 30, 2020 , compared to 1.9 to 1 a year ago. See non-GAAP financial measures elsewhere in this release. - The Board of Directors declared a
$0.27 per share second quarter cash dividend on common shares outstanding, which will be paid onAugust 28, 2020 to stockholders of record as ofAugust 14, 2020 . This represents an annual cash dividend of$1.08 per share. Any future dividends are subject to approval by the Company’s Board of Directors. - As previously announced, the Company temporarily suspended its share repurchase program beginning in March. During the first quarter, the Company repurchased 981,000 shares at an aggregate cost of
$80 million and$48 million remains under the current share repurchase authorization.
2020 Outlook
- Due to the uncertainty around COVID-19 and foreign currency volatility, the Company withdrew its initial 2020 earnings guidance on
April 22, 2020 . Given the ongoing uncertainties regarding the pace of the anticipated recovery and currency volatility, the Company has not reinstated earnings guidance for the balance of the year. However, as the Company continues to evaluate its 2020 earning results, the following factors are expected to impact its comparisons to prior-year results:- 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, severity and scope of the outbreak and its impact on borrowing demand and retail operations. For example, the normalization of demand for pawn loans could be delayed in the short-term by reduced personal spending if schools and other venues remain closed or delayed by additional government stimulus payments and benefit programs. Furthermore, additional store closures or operating restrictions could negatively impact both the Company’s retail sales and pawn fees. In addition, the expected rebound in pawn fee revenue will naturally lag the expected recovery in pawn receivables. Accordingly, pawn fees in the third quarter will be impacted by the lower pawn balances as we begin the quarter. Additionally, retail sales volumes in the second half of the year are expected to be impacted by lower levels of inventory as the third quarter begins.
- Currency volatility: Global economic uncertainty due to the COVID-19 pandemic has strengthened the relative value of the
U.S. dollar and negatively impacted developing market currencies, including the Mexican peso, which is the primary currency for the Company’s foreign operations. The current peso to dollar exchange rate of approximately 22.5 to 1 compares to an average rate in the first half of 2020 of 21.6 to 1 and an average rate of 19.3 to 1 during all of 2019. For 2020, the Company estimates that each full Mexican peso change in the exchange rate to theU.S. dollar represents approximately$0.08 to$0.10 per share of annualized earnings impact to the Company. - Wind-down of unsecured consumer lending operations: The Company ceased all unsecured consumer lending operations in the
U.S. effectiveJune 30, 2020 , and expects no material earnings or losses from these operations in the second half of 2020. As a comparison, earnings from consumer lending operations contributed approximately$0.05 per share during the second half of 2019. - Income tax rate: The effective income tax rate is expected to range from 26.5% to 28.0% for 2020 compared to the actual rate of 26.7% in 2019.
- New store openings: In its original 2020 store opening guidance, the Company expected to open approximately 90 to 100 new locations this year. A total of 51 stores were opened in the first half of the year and there is a strong pipeline of additional stores leased and under construction. While currently on pace to meet the lower end of the full year target, future store openings in the second half of the year remain subject to uncertainties related to the COVID-19 pandemic, including but not limited to, the ability to continue construction projects and obtain necessary licenses, permits, utility services, store equipment, supplies and adequate staffing.
- 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, severity and scope of the outbreak and its impact on borrowing demand and retail operations. For example, the normalization of demand for pawn loans could be delayed in the short-term by reduced personal spending if schools and other venues remain closed or delayed by additional government stimulus payments and benefit programs. Furthermore, additional store closures or operating restrictions could negatively impact both the Company’s retail sales and pawn fees. In addition, the expected rebound in pawn fee revenue will naturally lag the expected recovery in pawn receivables. Accordingly, pawn fees in the third quarter will be impacted by the lower pawn balances as we begin the quarter. Additionally, retail sales volumes in the second half of the year are expected to be impacted by lower levels of inventory as the third quarter begins.
Additional Commentary and Analysis
“FirstCash continues to focus on the safety of all customers and employees as we deal with the impacts and uncertainties of the pandemic. We remain committed to our customers by keeping our stores open to provide essential products and services as safely as possible. Our employees are vitally important to us as well, and we continue to enforce appropriate health protocols in our stores and offices. During the second quarter alone, we incurred approximately
“The financial impacts of COVID-19 on our pawn operations has been unexpected in many respects. While demand for pawn loans typically increases in periods of general economic uncertainty, we believe that many of our customers are more financially liquid now than would be expected due to a combination of sharply reduced personal spending patterns, rent and utility forbearance programs, government stimulus payments and enhanced unemployment benefits. In
“As the second quarter progressed, lending demand steadily improved and was coupled with the continued increase in the effective yield on the pawn portfolio. These trends have continued in July, with daily year-over-year originations over the last two weeks generally down in a range of 30% to 35% in the
“We are proactively managing operations to the extent possible in light of these impacts. Our ability to keep stores open and operating safely during the second quarter provided the opportunity for strong retail sales of essential products. In the
“Despite the short-term disruptions from COVID-19, we remain confident and committed to our long-term growth strategy. Our liquidity and strong balance sheet have allowed us to continue adding stores through both de novo openings and targeted acquisitions this year. We also made the strategic decision this quarter to fully eliminate unsecured consumer lending products in all markets. While this decision will result in a small reduction in revenue and operating income, we believe it is the right step to further reduce regulatory exposure and allow for total focus on our core pawn operations.
“Pawnshops have historically served unbanked and underbanked consumers well in periods of economic uncertainty and tightening of available credit by other small dollar lenders. The strength of our cash flows and balance sheet allows us to fund expected loan demand and to continue investing in new stores. Combined with our scale and other competitive advantages, we believe that
About
Forward-Looking Information
This release contains forward-looking statements about the business, financial condition and prospects of
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 of the COVID-19 pandemic, 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
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue: | ||||||||||||||||
Retail merchandise sales | $ | 287,400 | $ | 278,754 | $ | 584,029 | $ | 562,995 | ||||||||
Pawn loan fees | 101,990 | 136,923 | 244,105 | 278,115 | ||||||||||||
Wholesale scrap jewelry sales | 22,785 | 24,981 | 49,156 | 56,691 | ||||||||||||
Consumer loan and credit services fees | 571 | 5,356 | 1,946 | 15,817 | ||||||||||||
Total revenue | 412,746 | 446,014 | 879,236 | 913,618 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of retail merchandise sold | 171,511 | 176,272 | 356,206 | 355,621 | ||||||||||||
Cost of wholesale scrap jewelry sold | 18,357 | 23,934 | 41,204 | 54,287 | ||||||||||||
Consumer loan and credit services loss provision | (223 | ) | 1,503 | (584 | ) | 3,606 | ||||||||||
Total cost of revenue | 189,645 | 201,709 | 396,826 | 413,514 | ||||||||||||
Net revenue | 223,101 | 244,305 | 482,410 | 500,104 | ||||||||||||
Expenses and other income: | ||||||||||||||||
Store operating expenses | 141,051 | 148,347 | 294,551 | 295,199 | ||||||||||||
Administrative expenses | 28,386 | 31,696 | 61,288 | 63,850 | ||||||||||||
Depreciation and amortization | 10,324 | 10,510 | 20,998 | 20,384 | ||||||||||||
Interest expense | 6,974 | 8,548 | 15,392 | 16,918 | ||||||||||||
Interest income | (525 | ) | (155 | ) | (710 | ) | (359 | ) | ||||||||
Merger and other acquisition expenses | 134 | 556 | 202 | 705 | ||||||||||||
(Gain) loss on foreign exchange | (614 | ) | (483 | ) | 2,071 | (722 | ) | |||||||||
Write-offs and impairments of certain lease intangibles and other assets | 182 | — | 5,712 | — | ||||||||||||
Total expenses and other income | 185,912 | 199,019 | 399,504 | 395,975 | ||||||||||||
Income before income taxes | 37,189 | 45,286 | 82,906 | 104,129 | ||||||||||||
Provision for income taxes | 11,316 | 12,238 | 24,115 | 28,426 | ||||||||||||
Net income | $ | 25,873 | $ | 33,048 | $ | 58,791 | $ | 75,703 | ||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.62 | $ | 0.77 | $ | 1.41 | $ | 1.75 | ||||||||
Diluted | $ | 0.62 | $ | 0.76 | $ | 1.41 | $ | 1.74 | ||||||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 41,440 | 43,081 | 41,676 | 43,298 | ||||||||||||
Diluted | 41,531 | 43,256 | 41,769 | 43,456 | ||||||||||||
Dividends declared per common share | $ | 0.27 | $ | 0.25 | $ | 0.54 | $ | 0.50 |
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
2020 | 2019 | 2019 | ||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 70,956 | $ | 67,012 | $ | 46,527 | ||||||
Fees and service charges receivable | 30,418 | 46,991 | 46,686 | |||||||||
Pawn loans | 230,383 | 375,167 | 369,527 | |||||||||
Consumer loans, net | 176 | 3,850 | 751 | |||||||||
Inventories | 179,967 | 266,440 | 265,256 | |||||||||
Income taxes receivable | 4,988 | 1,041 | 875 | |||||||||
Prepaid expenses and other current assets | 10,689 | 9,590 | 11,367 | |||||||||
Total current assets | 527,577 | 770,091 | 740,989 | |||||||||
Property and equipment, net | 341,114 | 290,725 | 336,167 | |||||||||
Operating lease right of use asset | 283,063 | 293,357 | 304,549 | |||||||||
929,575 | 940,653 | 948,643 | ||||||||||
Intangible assets, net | 84,389 | 87,200 | 85,875 | |||||||||
Other assets | 9,037 | 10,890 | 11,506 | |||||||||
Deferred tax assets | 7,764 | 11,570 | 11,711 | |||||||||
Total assets | $ | 2,182,519 | $ | 2,404,486 | $ | 2,439,440 | ||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
Accounts payable and accrued liabilities | $ | 69,810 | $ | 71,410 | $ | 72,398 | ||||||
Customer deposits | 35,439 | 40,665 | 39,736 | |||||||||
Income taxes payable | 13,230 | 317 | 4,302 | |||||||||
Lease liability, current | 83,580 | 84,513 | 86,466 | |||||||||
Total current liabilities | 202,059 | 196,905 | 202,902 | |||||||||
Revolving unsecured credit facilities | 200,000 | 340,000 | 335,000 | |||||||||
Senior unsecured notes | 296,923 | 296,222 | 296,568 | |||||||||
Deferred tax liabilities | 67,842 | 60,069 | 61,431 | |||||||||
Lease liability, non-current | 182,915 | 184,348 | 193,504 | |||||||||
Total liabilities | 949,739 | 1,077,544 | 1,089,405 | |||||||||
Stockholders’ equity: | ||||||||||||
Common stock | 493 | 493 | 493 | |||||||||
Additional paid-in capital | 1,226,512 | 1,227,478 | 1,231,528 | |||||||||
Retained earnings | 763,810 | 660,845 | 727,476 | |||||||||
Accumulated other comprehensive loss | (172,150 | ) | (103,932 | ) | (96,969 | ) | ||||||
Common stock held in treasury, at cost | (585,885 | ) | (457,942 | ) | (512,493 | ) | ||||||
Total stockholders’ equity | 1,232,780 | 1,326,942 | 1,350,035 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,182,519 | $ | 2,404,486 | $ | 2,439,440 |
OPERATING INFORMATION
(UNAUDITED)
The Company’s reportable segments are as follows:
U.S. operationsLatin America operations - Includes operations inMexico ,Guatemala ,El Salvador andColombia
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.
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
As of |
Increase / | |||||||||
2020 | 2019 | (Decrease) | ||||||||
Earning assets: | ||||||||||
Pawn loans | $ | 158,253 | $ | 262,356 | (40)% | |||||
Inventories | 120,408 | 172,875 | (30)% | |||||||
Consumer loans, net (1) | 176 | 3,850 | (95)% | |||||||
$ | 278,837 | $ | 439,081 | (36)% | ||||||
Average outstanding pawn loan amount (in ones) | $ | 190 | $ | 166 | 14% | |||||
Composition of pawn collateral: | ||||||||||
General merchandise | 31 | % | 37 | % | ||||||
Jewelry | 69 | % | 63 | % | ||||||
100 | % | 100 | % | |||||||
Composition of inventories: | ||||||||||
General merchandise | 38 | % | 44 | % | ||||||
Jewelry | 62 | % | 56 | % | ||||||
100 | % | 100 | % | |||||||
Percentage of inventory aged greater than one year | 3 | % | 4 | % | ||||||
Inventory turns (trailing twelve months retail sales divided by average inventories) | 3.2 times | 2.8 times |
(1) Effective
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income of the
Three Months Ended | |||||||||||
Increase / | |||||||||||
2020 | 2019 | (Decrease) | |||||||||
Revenue: | |||||||||||
Retail merchandise sales | $ | 208,944 | $ | 168,918 | 24% | ||||||
Pawn loan fees | 71,900 | 90,126 | (20)% | ||||||||
Wholesale scrap jewelry sales | 9,557 | 15,788 | (39)% | ||||||||
Consumer loan and credit services fees | 571 | 5,356 | (89)% | ||||||||
Total revenue | 290,972 | 280,188 | 4% | ||||||||
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 121,661 | 104,662 | 16% | ||||||||
Cost of wholesale scrap jewelry sold | 8,432 | 14,853 | (43)% | ||||||||
Consumer loan and credit services loss provision | (223 | ) | 1,503 | (115)% | |||||||
Total cost of revenue | 129,870 | 121,018 | 7% | ||||||||
Net revenue | 161,102 | 159,170 | 1% | ||||||||
Segment expenses: | |||||||||||
Store operating expenses | 103,302 | 103,009 | —% | ||||||||
Depreciation and amortization | 5,561 | 5,269 | 6% | ||||||||
Total segment expenses | 108,863 | 108,278 | 1% | ||||||||
Segment pre-tax operating income | $ | 52,239 | $ | 50,892 | 3% |
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income of the
Six Months Ended | |||||||||||
Increase / | |||||||||||
2020 | 2019 | (Decrease) | |||||||||
Revenue: | |||||||||||
Retail merchandise sales | $ | 404,910 | $ | 355,733 | 14% | ||||||
Pawn loan fees | 169,757 | 188,002 | (10)% | ||||||||
Wholesale scrap jewelry sales | 25,035 | 38,573 | (35)% | ||||||||
Consumer loan and credit services fees | 1,946 | 15,817 | (88)% | ||||||||
Total revenue | 601,648 | 598,125 | 1% | ||||||||
Cost of revenue: | |||||||||||
Cost of retail merchandise sold | 241,190 | 222,406 | 8% | ||||||||
Cost of wholesale scrap jewelry sold | 22,438 | 36,123 | (38)% | ||||||||
Consumer loan and credit services loss provision | (584 | ) | 3,606 | (116)% | |||||||
Total cost of revenue | 263,044 | 262,135 | —% | ||||||||
Net revenue | 338,604 | 335,990 | 1% | ||||||||
Segment expenses: | |||||||||||
Store operating expenses | 211,008 | 206,893 | 2% | ||||||||
Depreciation and amortization | 10,962 | 10,314 | 6% | ||||||||
Total segment expenses | 221,970 | 217,207 | 2% | ||||||||
Segment pre-tax operating income | $ | 116,634 | $ | 118,783 | (2)% |
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
Latin America Operations Segment Results
The Company’s management reviews and analyzes certain operating results in
The following table provides exchange rates for the Mexican peso, Guatemalan quetzal and Colombian peso for the current and prior-year periods:
Favorable / | |||||
2020 | 2019 | (Unfavorable) | |||
Mexican peso / |
|||||
End-of-period | 23.0 | 19.2 | (20)% | ||
Three months ended | 23.4 | 19.1 | (23)% | ||
Six months ended | 21.6 | 19.2 | (13)% | ||
Guatemalan quetzal / |
|||||
End-of-period | 7.7 | 7.7 | —% | ||
Three months ended | 7.7 | 7.7 | —% | ||
Six months ended | 7.7 | 7.7 | —% | ||
Colombian peso / |
|||||
End-of-period | 3,759 | 3,206 | (17)% | ||
Three months ended | 3,846 | 3,240 | (19)% | ||
Six months ended | 3,689 | 3,188 | (16)% |
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
Constant Currency Basis | |||||||||||||||||||||
As of | |||||||||||||||||||||
Increase / | |||||||||||||||||||||
As of |
2020 | (Decrease) | |||||||||||||||||||
2020 | 2019 | Decrease | (Non-GAAP) | (Non-GAAP) | |||||||||||||||||
Latin America Operations Segment | |||||||||||||||||||||
Earning assets: | |||||||||||||||||||||
Pawn loans | $ | 72,130 | $ | 112,811 | (36)% | $ | 85,373 | (24)% | |||||||||||||
Inventories | 59,559 | 93,565 | (36)% | 70,959 | (24)% | ||||||||||||||||
$ | 131,689 | $ | 206,376 | (36)% | $ | 156,332 | (24)% | ||||||||||||||
Average outstanding pawn loan amount (in ones) | $ | 59 | $ | 69 | (14)% | $ | 70 | 1% | |||||||||||||
Composition of pawn collateral: | |||||||||||||||||||||
General merchandise | 66 | % | 73 | % | |||||||||||||||||
Jewelry | 34 | % | 27 | % | |||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||
Composition of inventories: | |||||||||||||||||||||
General merchandise | 61 | % | 74 | % | |||||||||||||||||
Jewelry | 39 | % | 26 | % | |||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||
Percentage of inventory aged greater than one year | 2 | % | 1 | % | |||||||||||||||||
Inventory turns (trailing twelve months retail sales divided by average inventories) | 3.9 times | 3.8 times |
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income of the
Constant Currency Basis | ||||||||||||||||||||||
Three Months | ||||||||||||||||||||||
Ended | ||||||||||||||||||||||
Three Months Ended | Increase / | |||||||||||||||||||||
Increase / | 2020 | (Decrease) | ||||||||||||||||||||
2020 | 2019 | (Decrease) | (Non-GAAP) | (Non-GAAP) | ||||||||||||||||||
Latin America Operations Segment | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||
Retail merchandise sales | $ | 78,456 | $ | 109,836 | (29)% | $ | 95,441 | (13)% | ||||||||||||||
Pawn loan fees | 30,090 | 46,797 | (36)% | 36,542 | (22)% | |||||||||||||||||
Wholesale scrap jewelry sales | 13,228 | 9,193 | 44% | 13,228 | 44% | |||||||||||||||||
Total revenue | 121,774 | 165,826 | (27)% | 145,211 | (12)% | |||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||
Cost of retail merchandise sold | 49,850 | 71,610 | (30)% | 60,612 | (15)% | |||||||||||||||||
Cost of wholesale scrap jewelry sold | 9,925 | 9,081 | 9% | 11,998 | 32% | |||||||||||||||||
Total cost of revenue | 59,775 | 80,691 | (26)% | 72,610 | (10)% | |||||||||||||||||
Net revenue | 61,999 | 85,135 | (27)% | 72,601 | (15)% | |||||||||||||||||
Segment expenses: | ||||||||||||||||||||||
Store operating expenses | 37,749 | 45,338 | (17)% | 45,096 | (1)% | |||||||||||||||||
Depreciation and amortization | 3,602 | 3,579 | 1% | 4,280 | 20% | |||||||||||||||||
Total segment expenses | 41,351 | 48,917 | (15)% | 49,376 | 1% | |||||||||||||||||
Segment pre-tax operating income | $ | 20,648 | $ | 36,218 | (43)% | $ | 23,225 | (36)% |
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income of the
Constant Currency Basis | ||||||||||||||||||||||
Six Months | ||||||||||||||||||||||
Ended | ||||||||||||||||||||||
Six Months Ended | Increase / | |||||||||||||||||||||
Increase / | 2020 | (Decrease) | ||||||||||||||||||||
2020 | 2019 | (Decrease) | (Non-GAAP) | (Non-GAAP) | ||||||||||||||||||
Latin America Operations Segment | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||
Retail merchandise sales | $ | 179,119 | $ | 207,262 | (14)% | $ | 201,133 | (3)% | ||||||||||||||
Pawn loan fees | 74,348 | 90,113 | (17)% | 83,425 | (7)% | |||||||||||||||||
Wholesale scrap jewelry sales | 24,121 | 18,118 | 33% | 24,121 | 33% | |||||||||||||||||
Total revenue | 277,588 | 315,493 | (12)% | 308,679 | (2)% | |||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||
Cost of retail merchandise sold | 115,016 | 133,215 | (14)% | 129,110 | (3)% | |||||||||||||||||
Cost of wholesale scrap jewelry sold | 18,766 | 18,164 | 3% | 21,078 | 16% | |||||||||||||||||
Total cost of revenue | 133,782 | 151,379 | (12)% | 150,188 | (1)% | |||||||||||||||||
Net revenue | 143,806 | 164,114 | (12)% | 158,491 | (3)% | |||||||||||||||||
Segment expenses: | ||||||||||||||||||||||
Store operating expenses | 83,543 | 88,306 | (5)% | 92,987 | 5% | |||||||||||||||||
Depreciation and amortization | 7,665 | 6,884 | 11% | 8,517 | 24% | |||||||||||||||||
Total segment expenses | 91,208 | 95,190 | (4)% | 101,504 | 7% | |||||||||||||||||
Segment pre-tax operating income | $ | 52,598 | $ | 68,924 | (24)% | $ | 56,987 | (17)% |
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
Consolidated Results of Operations
The following table reconciles pre-tax operating income of the Company’s
Three Months Ended | Six Months Ended | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Consolidated Results of Operations | |||||||||||||||
Segment pre-tax operating income: | |||||||||||||||
$ | 52,239 | $ | 50,892 | $ | 116,634 | $ | 118,783 | ||||||||
20,648 | 36,218 | 52,598 | 68,924 | ||||||||||||
Consolidated segment pre-tax operating income | 72,887 | 87,110 | 169,232 | 187,707 | |||||||||||
Corporate expenses and other income: | |||||||||||||||
Administrative expenses | 28,386 | 31,696 | 61,288 | 63,850 | |||||||||||
Depreciation and amortization | 1,161 | 1,662 | 2,371 | 3,186 | |||||||||||
Interest expense | 6,974 | 8,548 | 15,392 | 16,918 | |||||||||||
Interest income | (525 | ) | (155 | ) | (710 | ) | (359 | ) | |||||||
Merger and other acquisition expenses | 134 | 556 | 202 | 705 | |||||||||||
(Gain) loss on foreign exchange | (614 | ) | (483 | ) | 2,071 | (722 | ) | ||||||||
Write-offs and impairments of certain lease intangibles and other assets | 182 | — | 5,712 | — | |||||||||||
Total corporate expenses and other income | 35,698 | 41,824 | 86,326 | 83,578 | |||||||||||
Income before income taxes | 37,189 | 45,286 | 82,906 | 104,129 | |||||||||||
Provision for income taxes | 11,316 | 12,238 | 24,115 | 28,426 | |||||||||||
Net income | $ | 25,873 | $ | 33,048 | $ | 58,791 | $ | 75,703 |
STORE COUNT ACTIVITY
The following tables detail store count activity:
Three Months Ended |
|||||||||
Operations Segment (2) | Operations Segment (3) | Total Locations | |||||||
Total locations, beginning of period | 1,052 | 1,688 | 2,740 | ||||||
New locations opened | — | 20 | 20 | ||||||
Locations acquired | — | 4 | 4 | ||||||
Locations closed or consolidated (1) | (17 | ) | (2 | ) | (19 | ) | |||
Total locations, end of period | 1,035 | 1,710 | 2,745 | ||||||
Six Months Ended |
|||||||||
Operations Segment (2) | Operations Segment (3) | Total Locations | |||||||
Total locations, beginning of period | 1,056 | 1,623 | 2,679 | ||||||
New locations opened | — | 51 | 51 | ||||||
Locations acquired | — | 40 | 40 | ||||||
Locations closed or consolidated (1) | (21 | ) | (4 | ) | (25 | ) | |||
Total locations, end of period | 1,035 | 1,710 | 2,745 |
(1) Effective
Three Months Ended | Six Months Ended | ||||||
First Cash Advance stores in |
6 | 6 | |||||
Cashland stores in |
6 | 7 | |||||
Consolidation of other pawn stores | 5 | 8 | |||||
Total locations closed or consolidated | 17 | 21 |
(2) The table does not include 42 check cashing locations operated by independent franchisees under franchising agreements with the Company.
(3) The table does not include 30 Prendamex pawn locations operated by independent franchisees under franchising agreements with the Company.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO 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 in
While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and other acquisition expenses to allow more accurate comparisons of the financial results to prior periods and because the Company does not consider these merger and other 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 other 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
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO 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 |
Six Months Ended |
||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||
In Thousands | Per Share | In Thousands | Per Share | In Thousands | Per Share | In Thousands | Per Share | ||||||||||||||||||||||||
Net income and diluted earnings per share, as reported | $ | 25,873 | $ | 0.62 | $ | 33,048 | $ | 0.76 | $ | 58,791 | $ | 1.41 | $ | 75,703 | $ | 1.74 | |||||||||||||||
Adjustments, net of tax: | |||||||||||||||||||||||||||||||
Merger and other acquisition expenses | 96 | — | 426 | 0.01 | 146 | — | 530 | 0.01 | |||||||||||||||||||||||
Non-cash foreign currency (gain) loss related to lease liability | (308 | ) | — | (136 | ) | — | 2,761 | 0.07 | (374 | ) | (0.01 | ) | |||||||||||||||||||
Non-cash write-off of certain merger related lease intangibles (1) | 140 | — | — | — | 2,935 | 0.07 | — | — | |||||||||||||||||||||||
Non-cash impairment of certain other assets (2) | — | — | — | — | 1,463 | 0.04 | — | — | |||||||||||||||||||||||
Consumer lending wind-down costs and asset impairments | 71 | — | 1,959 | 0.05 | 71 | — | 1,959 | 0.05 | |||||||||||||||||||||||
Adjusted net income and diluted earnings per share | $ | 25,872 | $ | 0.62 | $ | 35,297 | $ | 0.82 | $ | 66,167 | $ | 1.59 | $ | 77,818 | $ | 1.79 |
(1) Certain above/below market store lease intangibles, recorded in conjunction with the Cash America merger in 2016, were written-off as a result of the Company purchasing the real estate from the landlords of the respective stores.
(2) Impairment related to a non-operating asset in which the Company determined that an other than temporary impairment existed as of
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO 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 |
|||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||
Merger and other acquisition expenses | $ | 134 | $ | 38 | $ | 96 | $ | 556 | $ | 130 | $ | 426 | |||||||||||
Non-cash foreign currency gain related to lease liability | (440 | ) | (132 | ) | (308 | ) | (195 | ) | (59 | ) | (136 | ) | |||||||||||
Non-cash write-off of certain merger related lease intangibles | 182 | 42 | 140 | — | — | — | |||||||||||||||||
Consumer lending wind-down costs and asset impairments | 92 | 21 | 71 | 2,544 | 585 | 1,959 | |||||||||||||||||
Total adjustments | $ | (32 | ) | $ | (31 | ) | $ | (1 | ) | $ | 2,905 | $ | 656 | $ | 2,249 | ||||||||
Six Months Ended |
|||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||
Merger and other acquisition expenses | $ | 202 | $ | 56 | $ | 146 | $ | 705 | $ | 175 | $ | 530 | |||||||||||
Non-cash foreign currency loss (gain) related to lease liability | 3,944 | 1,183 | 2,761 | (535 | ) | (161 | ) | (374 | ) | ||||||||||||||
Non-cash write-off of certain merger related lease intangibles | 3,812 | 877 | 2,935 | — | — | — | |||||||||||||||||
Non-cash impairment of certain other assets | 1,900 | 437 | 1,463 | — | — | — | |||||||||||||||||
Consumer lending wind-down costs and asset impairments | 92 | 21 | 71 | 2,544 | 585 | 1,959 | |||||||||||||||||
Total adjustments | $ | 9,950 | $ | 2,574 | $ | 7,376 | $ | 2,714 | $ | 599 | $ | 2,115 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO 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):
Trailing Twelve | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | Months Ended | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
Net income | $ | 25,873 | $ | 33,048 | $ | 58,791 | $ | 75,703 | $ | 147,706 | $ | 157,103 | |||||||||||
Income taxes | 11,316 | 12,238 | 24,115 | 28,426 | 55,682 | 54,285 | |||||||||||||||||
Depreciation and amortization | 10,324 | 10,510 | 20,998 | 20,384 | 42,518 | 41,110 | |||||||||||||||||
Interest expense | 6,974 | 8,548 | 15,392 | 16,918 | 32,509 | 33,364 | |||||||||||||||||
Interest income | (525 | ) | (155 | ) | (710 | ) | (359 | ) | (1,406 | ) | (1,082 | ) | |||||||||||
EBITDA | 53,962 | 64,189 | 118,586 | 141,072 | 277,009 | 284,780 | |||||||||||||||||
Adjustments: | |||||||||||||||||||||||
Merger and other acquisition expenses | 134 | 556 | 202 | 705 | 1,263 | 5,996 | |||||||||||||||||
Non-cash foreign currency (gain) loss related to lease liability | (440 | ) | (195 | ) | 3,944 | (535 | ) | 3,546 | (535 | ) | |||||||||||||
Non-cash write-off of certain merger related lease intangibles | 182 | — | 3,812 | — | 3,812 | — | |||||||||||||||||
Non-cash impairment of certain other assets | — | — | 1,900 | — | 1,900 | — | |||||||||||||||||
Consumer lending wind-down costs and asset impairments | 92 | 2,544 | 92 | 2,544 | 1,002 | 4,058 | |||||||||||||||||
Adjusted EBITDA | $ | 53,930 | $ | 67,094 | $ | 128,536 | $ | 143,786 | $ | 288,532 | $ | 294,299 | |||||||||||
Net debt ratio calculation: | |||||||||||||||||||||||
Total debt (outstanding principal) | $ | 500,000 | $ | 640,000 | |||||||||||||||||||
Less: cash and cash equivalents | (70,956 | ) | (67,012 | ) | |||||||||||||||||||
Net debt | $ | 429,044 | $ | 572,988 | |||||||||||||||||||
Adjusted EBITDA | $ | 288,532 | $ | 294,299 | |||||||||||||||||||
Net debt ratio (net debt divided by adjusted EBITDA) | 1.5:1 | 1.9:1 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO 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 other 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):
Trailing Twelve | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | Months Ended | |||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
Cash flow from operating activities | $ | 65,914 | $ | 34,276 | $ | 143,299 | $ | 105,973 | $ | 268,922 | $ | 229,435 | |||||||||||
Cash flow from investing activities: | |||||||||||||||||||||||
Loan receivables, net of cash repayments | 126,000 | (22,642 | ) | 178,279 | 19,574 | 193,111 | (1,214 | ) | |||||||||||||||
Purchases of furniture, fixtures, equipment and improvements | (9,895 | ) | (13,246 | ) | (20,476 | ) | (22,904 | ) | (41,883 | ) | (44,113 | ) | |||||||||||
Free cash flow | 182,019 | (1,612 | ) | 301,102 | 102,643 | 420,150 | 184,108 | ||||||||||||||||
Merger and other acquisition expenses paid, net of tax benefit | 96 | 426 | 146 | 530 | 892 | 4,503 | |||||||||||||||||
Adjusted free cash flow | $ | 182,115 | $ | (1,186 | ) | $ | 301,248 | $ | 103,173 | $ | 421,042 | $ | 188,611 |
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)
Constant Currency Results
The Company’s reporting currency is the
The Company believes constant currency results provide investors with valuable supplemental information regarding the underlying performance of its business operations in
For further information, please contact:
Phone: (817) 886-6998
Email: gar@globalirgroup.com
Phone: (817) 258-2650
Email: investorrelations@firstcash.com
Website: investors.firstcash.com
Source: FirstCash, Inc.