FirstCash Reports Fourth Quarter and Full Year Results; Declares Quarterly Dividend and Issues 2017 Earnings Outlook
Mr. Rick Wessel, chief executive officer, stated, “2016 was a transformational year in the 28 year history of FirstCash. Early in the first quarter, we completed the acquisition of the Maxi Prenda stores in
“The core operating results in the fourth quarter were encouraging. Despite further currency headwinds impacting dollar-translated results, our Latin American stores had double digit increases in local currency same-store pawn loans and core revenues. In the
Earnings Highlights
- Consolidated operating results of the Company for the year ended December 31, 2016 include the revenues and operating results of Cash America for the last four months of the year and include merger related expenses and other adjustments of approximately
$35.4 million pre-tax, or$0.72 per share, net of tax for 2016. - The Company reported the following consolidated results for the fourth quarter and full year of 2016. Adjusted measures exclude merger related expenses and other adjustments, which are further defined and reconciled in the detailed reconciliation of non-GAAP financial measures including EBITDA and adjusted EBITDA, provided elsewhere in this release (in thousands except per share amounts):
Three Months Ended December 31, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
As Reported |
Adjusted | As Reported | Adjusted | |||||||||||||
(GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | |||||||||||||
Revenue | $ | 462,042 | $ | 462,042 | $ | 191,424 | $ | 191,424 | ||||||||
Net income | $ | 36,692 | $ | 37,448 | $ | 19,410 | $ | 20,600 | ||||||||
Diluted EPS | $ | 0.76 | $ | 0.77 | $ | 0.69 | $ | 0.73 | ||||||||
EBITDA |
$ |
77,163 |
$ |
78,404 |
$ |
35,897 |
$ |
37,597 | ||||||||
Weighted avg diluted shares | 48,532 | 48,532 | 28,097 | 28,097 | ||||||||||||
Twelve Months Ended December 31, | ||||||||||||||||
2016 | 2015 | |||||||||||||||
As Reported | Adjusted | As Reported | Adjusted | |||||||||||||
(GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | |||||||||||||
Revenue | $ | 1,088,377 | $ | 1,088,377 | $ | 704,602 | $ | 704,602 | ||||||||
Net income | $ | 60,127 | $ | 85,332 | $ | 60,710 | $ | 68,483 | ||||||||
Diluted EPS | $ | 1.72 | $ | 2.44 | $ | 2.14 | $ | 2.42 | ||||||||
EBITDA |
$ |
144,881 |
$ |
180,252 |
$ |
120,448 |
$ |
132,201 | ||||||||
Weighted avg diluted shares | 35,004 | 35,004 | 28,326 | 28,326 | ||||||||||||
- For the quarter ended December 31, 2016, which includes the results of the Cash America operations for the full quarter, GAAP net income increased 89% while adjusted net income increased 82% compared to the same prior-year period. The smaller increases in GAAP and adjusted earnings per share of 10% and 5%, respectively, were a result of an increase in the weighted average diluted shares outstanding from the merger. Additionally, both GAAP and adjusted net income per share for the fourth quarter of 2016 were negatively impacted by approximately
$0.06 per share due to the 19% decline in the value of the Mexican peso compared to the fourth quarter last year. - GAAP net income for the full year declined approximately 1%. The added earnings contribution from Latin American growth and the post-merger earnings contribution from Cash America were offset by
$35 million in merger related costs and other adjustments and the 18% decline in the average value of the Mexican peso. Full year GAAP and adjusted earnings per share were reduced by approximately$0.28 per share due to the currency fluctuation. - EBITDA for the fourth quarter and full year totaled
$77 million and$145 million , respectively. Adjusted EBITDA, which excludes merger costs, totaled$78 million for the current quarter, an increase of 109% compared to the fourth quarter of 2015. For the full year, adjusted EBITDA increased 36% to$180 million , as compared to$132 million in 2015. EBITDA and adjusted EBITDA are non-GAAP measures and are calculated in the detailed reconciliation of non-GAAP financial measures provided elsewhere in this release. - The Company is providing segment level reporting beginning with this release. The two identified segments are the
U.S. operations segment and theLatin America operations segment. The pre-tax operating income in theLatin America segment increased 13% and 19% for the fourth quarter and full year periods, respectively, primarily due to the acquisition of Maxi Prenda and the strong same-store sales results that were partially offset by the currency impact. On a constant currency basis, theLatin America segment pre-tax operating income increased 32% and 39%, respectively. The pre-tax operating income in theU.S. increased 262% and 83% for the fourth quarter and full year periods, respectively, primarily due to the merger with Cash America. The operating results for each segment are further detailed elsewhere in this release.
Note:Certain growth rates in “Revenue Highlights” and “Pawn Operating Metrics” are calculated on a constant currency basis, a non-GAAP measure defined elsewhere in this release and reconciled to the most comparable GAAP measures in the financial statements in this release. The average Mexican peso to
Revenue Highlights
- Consolidated revenue for fiscal 2016 was
$1.1 billion , an increase of 54%. For the fourth quarter of 2016, revenues increased 141% and totaled$462 million . On a constant currency basis, total revenues increased 64% for the full year and 152% for the fourth quarter. - Fiscal 2016 U.S. segment revenues increased 99% due primarily to the partial year contribution from the Cash America operations and totaled
$334 million . CoreU.S. same-store pawn revenues, which are composed of pawn lending fees and retail merchandise sales, in the legacy First Cash locations decreased slightly at 1% for the quarter. Fourth quarter same-store core revenues in the legacy Cash America stores declined approximately 5%, which primarily reflected lower average pawn receivables for the quarter. - Revenues for fiscal 2016 in
Latin America increased 13% on a dollar-translated basis and increased an impressive 32% on a constant currency basis, driven by strong same-store sales results and the contribution of$65 million from the 211 Maxi Prenda stores acquired in late 2015 and early 2016. While coreLatin America same-store pawn revenues declined 6% and 7% on aU.S. dollar basis during the fourth quarter and full year of 2016, respectively,Latin America core same-store pawn revenues increased by 11% and 9% on a constant currency basis, respectively.
Pawn Operating Metrics
- Consolidated retail merchandise sales margins were 37% for both the fourth quarter and the full 2016 fiscal year, down one percentage point compared to prior-year periods. Retail margins in the
Latin America segment were 36% and 37% for the fourth quarter and full year, respectively, whileU.S. retail margins were 37% and 38% for the fourth quarter and full year, respectively. - Pawn loans outstanding in
Latin America at December 31, 2016 increased by 16% on aU.S. dollar basis and 37% on a constant currency basis.U.S. pawn loans outstanding at December 31, 2016 totaled$293 million , which included$224 million from the Cash America locations. Pawn loans in the legacyU.S. First Cash stores increased 1% year-over-year. - Significantly impacted by the 18% year-over-year decline in the value of the Mexican peso compared to the
U.S. dollar, same-store pawn loans inLatin America at December 31, 2016 declined 8% on a dollar-denominated basis. On a constant currency basis, pawn loans increased 11%, matching the largest same-store increase in the Latin American stores over the past four years. U.S. same-store pawn loan balances in the legacy First Cash locations increased 1%, which represented continued sequential improvement in this metric. Same-store pawn receivables at the Cash America stores remained down mid-single digits, reflecting the prior quarter trend and caused, in part, by actively reducing the number of delinquent pawn loans outstanding to conform with First Cash operating practices.
Store Count Activity
- During fiscal 2016, a total of 1,038 stores were added, composed of 815 U.S. locations from the merger with Cash America, 220 new and acquired pawn stores in
Latin America and three additional pawn stores acquired in theU.S. The Company closed 18 consumer loan stores during fiscal 2016 as part of its strategic plan to further reduce payday lending exposure. The year-over-year store count has increased 30% inLatin America and 94% overall. - As of December 31, 2016, the Company operated 2,085 stores, of which 96% or 2,012 were pawn stores. There are 955 total stores in
Latin America and 1,130 total stores in theU.S. In addition, there were 70 check cashing locations, previously part of Cash America, that are operated by independent franchisees under franchising agreements with the Company.
Liquidity
- As previously announced, the Company entered into a new
$400 million unsecured revolving bank credit facility in conjunction with the merger. The credit facility has a five year term from the closing date of the merger, September 1, 2016, and bears interest at either the prevailing London Interbank Offered Rate (LIBOR) plus a fixed spread of 2.5% or the prevailing prime or base rate plus a fixed spread of 1.5%. The interest rate on the outstanding balance was 3.25% at year end. - At December 31, 2016, the Company had
$260 million drawn on the facility and an additional$6 million of outstanding letters of credit. During the fourth quarter, the Company utilized proceeds from the sale of the Enova stock holdings and normal seasonal cash flows to reduce the outstanding balance on the facility by$100 million . - As of December 31, 2016, the Company had
$90 million in cash on its balance sheet and$134 million of availability for future borrowings under its long-termU.S. revolving bank credit facility. - As a result of the merger with Cash America, the Company had owned approximately six million shares of Enova International, Inc. on September 1, 2016. As previously announced, all of the shares were sold in open market transactions with the final sales completed on December 6, 2016. The Company generated net proceeds of
$62.1 million , which was used to pay down the balance on the unsecured revolving bank credit facility.
Cash Dividends and Share Repurchases
- The Board of Directors declared a
$0.19 per share first quarter cash dividend on common shares outstanding, which will be paid on February 28, 2017 to stockholders of record as of February 14, 2017. This represents a 52% increase over the dividend paid to First Cash Financial Services, Inc. stockholders in the first quarter of 2016. - The Company currently has approximately 1.1 million shares of its common stock available for repurchase under its current buyback authorization. While the Company did not repurchase shares in fiscal 2016 because of the merger, it expects to begin repurchases in fiscal 2017, subject to expected liquidity and other factors it normally considers when making share repurchases.
Fiscal 2017 Outlook
- The outlook for 2017 is tempered by the continued volatility and decline in the value of the Mexican peso relative to the strong
U.S. dollar. The Company’s currency forecast for 2017 assumes an exchange rate of approximately22.0 Mexican pesos to1.0 U.S. dollar . This represents a potential decline of almost 20% compared to the average exchange rate of 18.7 to 1.0 in 2016. The anticipated year-over-year earnings drag is approximately$0.17 to$0.21 per share. For reference, it is anticipated that for 2017 a one point change in the average peso to dollar exchange rate will impact annual earnings by approximately$0.06 to$0.08 per share. - The Company is initiating its fiscal full-year 2017 guidance for adjusted earnings per share, a non-GAAP measure that excludes merger and other acquisition expenses, to be in the range of
$2.45 to$2.60 based on an expected full year weighted average share count of approximately 48.2 million shares. This compares to 2016 adjusted earnings per share of$2.44 which was based on only 35.0 million weighted average shares outstanding.-
Adjusted net income, a non-GAAP measure that excludes merger and other acquisition expenses, is projected to be in the range of approximately
$118 million to$125 million , which at the midpoint, implies an increase of 43% over 2016 adjusted net income of$85 million . - The earnings guidance range implies adjusted EBITDA to be in the range of approximately
$257 to$268 million for fiscal 2017. This compares to adjusted EBITDA of$180 million in fiscal 2016 and$132 million in fiscal 2015. - The guidance for fiscal 2017 is presented on a non-GAAP basis, as it does not include the impact of expenses related to the Cash America merger or any future acquisitions. Given the difficulty in predicting the amount and timing of merger related expenses, the Company cannot reasonably provide a full reconciliation of adjusted earnings per share to GAAP earnings per share.
-
- These estimates of expected adjusted earnings per share include the following assumptions:
- An estimated average exchange rate of approximately 22.0 Mexican pesos /
U.S. dollar for fiscal 2017 compared to the foreign exchange rate of18.7 Mexican pesos /U.S. dollar in fiscal 2016. - The expected conversion of all the Cash America stores to the FirstPawn IT platform and the implementation of new operating protocols during 2017 that could have a short term negative impact on pawn receivables, inventories and margins.
- An expected earnings drag of approximately
$0.03 per share due to expected reductions in consumer lending (payday) operations during 2017. - An expected effective income tax rate for fiscal 2017 of approximately 36%, which compares to the 2016 effective rate of 33.8% (adjusted for merger costs). The increase in the tax rate is a result of the full year of incremental earnings from Cash America being taxed at approximately 37%.
- As previously announced, the Company currently plans to open or acquire approximately 85 stores in 2017, primarily focused on
Latin America , including its first stores inColombia .
- An estimated average exchange rate of approximately 22.0 Mexican pesos /
Additional Commentary and Analysis
Mr. Wessel further commented on the Company’s fiscal 2016 results, “Our
“As discussed in previous releases during 2016, the
“During the fourth quarter, we successfully transitioned 65 of the Cash America stores onto the FirstPawn IT platform and anticipate that these stores will begin to operate more efficiently with improved tools for assessing loan to value ratios, managing inventory and implementing incentive compensation plans focused on earnings quality. In the short term, the transition will likely cause pawn loans and inventories to contract in these locations which may soften pawn fees and negatively affect retail margins during 2017. Over the long term though, we expect the transition to drive improved efficiency and profitability metrics. This year we have already transitioned 96 stores onto the FirstPawn platform and completed 161 stores in total, which puts us on target to integrate all of the remaining Cash America stores during 2017.
“We remain confident in our ability to meet or exceed the full run rate of our targeted synergies by the first half of 2018. From a corporate perspective, the merger integration and realization of expected corporate synergies remains on track. The corporate staff will be fully combined in the downtown
“Most importantly, the merger with Cash America significantly enhances our overall cash flows. We are guiding adjusted EBITDA for 2017 to be in a range of
“Our adjusted EPS guidance for 2017 is tempered by macro factors primarily related to foreign currency translation, conservatism in our outlook for the transitioning and consolidating of our merged
Forward-Looking Information
This release contains forward-looking statements about the business, financial condition and prospects of FirstCash, Inc. and its wholly owned subsidiaries. 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 “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact 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.
These forward-looking statements are made to provide the public with management’s current assessment of the Company’s business. Although 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 discussed and described in (i) the Company’s 2015 annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 17, 2016, including the risks described in Part 1, Item 1A, “Risk Factors” thereof (ii) the Company’s quarterly report on Form 10-Q filed with the SEC on November 9, 2016, including the risks described in Part II, Item 1A, “Risk Factors” thereof, and (iii) the other reports filed with the SEC, including the Company’s forthcoming annual report on Form 10-K. 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.
About FirstCash
With over 2,000 retail pawn and consumer lending locations in the
FirstCash is a component company in both the Standard & Poor’s SmallCap 600 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the NYSE, home to many of the world’s most iconic brands, technology business leaders and emerging growth companies shaping today’s global economic landscape. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.cashamerica.com.
FIRSTCASH, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Retail merchandise sales | $ | 282,597 | $ | 128,280 | $ | 669,131 | $ | 449,296 | ||||||||||||
Pawn loan fees | 129,941 | 49,329 | 312,757 | 195,448 | ||||||||||||||||
Consumer loan and credit services fees | 22,772 | 6,503 | 43,851 | 27,803 | ||||||||||||||||
Wholesale scrap jewelry sales | 26,732 | 7,312 | 62,638 | 32,055 | ||||||||||||||||
Total revenue | 462,042 | 191,424 | 1,088,377 | 704,602 | ||||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Cost of retail merchandise sold | 179,390 | 79,874 | 418,556 | 278,631 | ||||||||||||||||
Consumer loan and credit services loss provision | 6,213 | 2,085 | 11,993 | 7,159 | ||||||||||||||||
Cost of wholesale scrap jewelry sold | 22,324 | 6,540 | 53,025 | 27,628 | ||||||||||||||||
Total cost of revenue | 207,927 | 88,499 | 483,574 | 313,418 | ||||||||||||||||
Net revenue | 254,115 | 102,925 | 604,803 | 391,184 | ||||||||||||||||
Expenses and other income: | ||||||||||||||||||||
Store operating expenses | 137,451 | 52,510 | 328,014 | 207,572 | ||||||||||||||||
Administrative expenses | 38,260 | 12,818 | 96,537 | 51,883 | ||||||||||||||||
Merger and other acquisition expenses | 2,793 | 1,700 | 36,670 | 2,875 | ||||||||||||||||
Depreciation and amortization | 14,700 | 4,288 | 31,865 | 17,939 | ||||||||||||||||
Goodwill impairment - |
— | — | — | 7,913 | ||||||||||||||||
Interest expense | 6,461 | 4,405 | 20,320 | 16,887 | ||||||||||||||||
Interest income | (115 | ) | (423 | ) | (751 | ) | (1,566 | ) | ||||||||||||
Net gain on sale of common stock of Enova | (1,552 | ) | — | (1,299 | ) | — | ||||||||||||||
Total expenses and other income | 197,998 | 75,298 | 511,356 | 303,503 | ||||||||||||||||
Income before income taxes | 56,117 | 27,627 | 93,447 | 87,681 | ||||||||||||||||
Provision for income taxes | 19,425 | 8,217 | 33,320 | 26,971 | ||||||||||||||||
Net income | $ | 36,692 | $ | 19,410 | $ | 60,127 | $ | 60,710 | ||||||||||||
Net income per share: | ||||||||||||||||||||
Basic | $ | 0.76 | $ | 0.69 | $ | 1.72 | $ | 2.16 | ||||||||||||
Diluted | $ | 0.76 | $ | 0.69 | $ | 1.72 | $ | 2.14 | ||||||||||||
Weighted average shares outstanding: | ||||||||||||||||||||
Basic | 48,507 | 27,933 | 34,997 | 28,138 | ||||||||||||||||
Diluted | 48,532 | 28,097 | 35,004 | 28,326 | ||||||||||||||||
Dividends declared per common share | $ | 0.190 | $ | — | $ | 0.565 | $ | — | ||||||||||||
FIRSTCASH, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||||||
December 31, | |||||||||||
2016 |
2015 |
||||||||||
(in thousands) | |||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 89,955 | $ | 86,954 | |||||||
Pawn loan fees and service charges receivable | 41,013 | 16,406 | |||||||||
Pawn loans | 350,506 | 117,601 | |||||||||
Consumer loans, net | 29,204 | 1,118 | |||||||||
Inventories | 330,683 | 93,458 | |||||||||
Income taxes receivable |
25,510 |
3,567 | |||||||||
Prepaid expenses and other current assets | 25,264 | 6,330 | |||||||||
Total current assets |
892,135 |
325,434 | |||||||||
Property and equipment, net | 236,057 | 112,447 | |||||||||
Goodwill |
831,151 |
295,609 | |||||||||
Other assets | 176,153 | 10,084 | |||||||||
Deferred tax assets | 9,707 | 9,321 | |||||||||
Total assets | $ |
2,145,203 |
$ | 752,895 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Accounts payable and accrued liabilities | $ | 109,354 | $ | 27,826 | |||||||
Customer deposits | 33,536 | 14,426 | |||||||||
Income taxes payable | 738 | 3,923 | |||||||||
Total current liabilities | 143,628 | 46,175 | |||||||||
Revolving unsecured credit facility | 260,000 | 58,000 | |||||||||
Senior unsecured notes | 196,545 | 195,874 | |||||||||
Deferred tax liabilities |
61,275 |
21,464 | |||||||||
Other liabilities |
33,769 |
— | |||||||||
Total liabilities |
695,217 |
321,513 | |||||||||
Stockholders’ equity: | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 493 | 403 | |||||||||
Additional paid-in capital | 1,217,969 | 202,393 | |||||||||
Retained earnings | 387,401 | 643,604 | |||||||||
Accumulated other comprehensive loss | (119,806 | ) | (78,410 | ) | |||||||
Common stock held in treasury, at cost | (36,071 | ) | (336,608 | ) | |||||||
Total stockholders’ equity | 1,449,986 | 431,382 | |||||||||
Total liabilities and stockholders’ equity | $ |
2,145,203 |
$ | 752,895 | |||||||
Note: The presentation of the Cash America assets and assumed liabilities in the Company’s financial statements is preliminary and will likely change, perhaps significantly, as fair value estimates are refined during the measurement period. The Company will complete its purchase price allocation no later than the third quarter of 2017. |
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Additionally, certain balances as of December 31, 2015 have been reclassified in order to conform to the current year presentation. |
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FIRSTCASH, INC.
OPERATING INFORMATION
(UNAUDITED)
The Company is providing segment level reporting beginning with this release. The Company’s new reportable segments are as follows:
U.S. operations - Includes all pawn and consumer loan operations inthe United States Latin America operations - Includes all pawn and consumer loan operations inLatin America , which currently includes operations inMexico ,Guatemala andEl Salvador
The Company has provided a detail of pre-tax operating income by segment, which is a measure of pre-tax store-level operating performance. Store operating expenses include salary and benefit expense of store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies, cash shortages and other costs incurred by the stores.
Operating Results for the Three Months Ended December 31, 2016 Compared to the Three Months Ended December 31, 2015
The following table presents segment pre-tax operating income of the
Three Months Ended | |||||||||||||||
December 31, | Increase / | ||||||||||||||
2016 |
2015 |
(Decrease) |
|||||||||||||
Revenue: | |||||||||||||||
Retail merchandise sales | $ | 199,353 | $ | 54,056 | 269% | ||||||||||
Pawn loan fees | 100,954 | 24,545 | 311% | ||||||||||||
Consumer loan and credit services fees | 22,303 | 5,965 | 274% | ||||||||||||
Wholesale scrap jewelry sales | 21,770 | 4,391 | 396% | ||||||||||||
Total revenue | 344,380 | 88,957 | 287% | ||||||||||||
Cost of revenue: | |||||||||||||||
Cost of retail merchandise sold | 126,454 | 32,360 | 291% | ||||||||||||
Consumer loan and credit services loss provision | 6,114 | 1,956 | 213% | ||||||||||||
Cost of wholesale scrap jewelry sold | 18,443 | 4,040 | 357% | ||||||||||||
Total cost of revenue | 151,011 | 38,356 | 294% | ||||||||||||
Net revenue | 193,369 | 50,601 | 282% | ||||||||||||
Segment expenses: | |||||||||||||||
Store operating expenses | 108,031 | 27,785 | 289% | ||||||||||||
Depreciation and amortization | 7,791 | 1,390 | 461% | ||||||||||||
Total segment expenses | 115,822 | 29,175 | 297% | ||||||||||||
Segment pre-tax operating income | $ | 77,547 | $ | 21,426 | 262% | ||||||||||
FIRSTCASH, INC.
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income of the
Constant Currency Basis | |||||||||||||||||||||||||
Three Months | |||||||||||||||||||||||||
Three Months | Ended | ||||||||||||||||||||||||
Ended | December 31, | Increase / | |||||||||||||||||||||||
December 31, | Increase / | 2016 | (Decrease) | ||||||||||||||||||||||
2016 |
2015 |
(Decrease) |
(Non-GAAP) |
(Non-GAAP) |
|||||||||||||||||||||
Latin America Operations Segment | |||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||
Retail merchandise sales | $ | 83,244 | $ | 74,224 | 12 | % | $ | 97,933 | 32 | % | |||||||||||||||
Pawn loan fees | 28,987 | 24,784 | 17 | % | 33,989 | 37 | % | ||||||||||||||||||
Consumer loan and credit services fees | 469 | 538 | (13 | )% | 555 | 3 | % | ||||||||||||||||||
Wholesale scrap jewelry sales | 4,962 | 2,921 | 70 | % | 4,962 | 70 | % | ||||||||||||||||||
Total revenue | 117,662 | 102,467 | 15 | % | 137,439 | 34 | % | ||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||||
Cost of retail merchandise sold | 52,936 | 47,514 | 11 | % | 62,242 | 31 | % | ||||||||||||||||||
Consumer loan and credit services loss provision | 99 | 129 | (23 | )% | 117 | (9 | )% | ||||||||||||||||||
Cost of wholesale scrap jewelry sold | 3,881 | 2,500 | 55 | % | 4,594 | 84 | % | ||||||||||||||||||
Total cost of revenue | 56,916 | 50,143 | 14 | % | 66,953 | 34 | % | ||||||||||||||||||
Net revenue | 60,746 | 52,324 | 16 | % | 70,486 | 35 | % | ||||||||||||||||||
Segment expenses: | |||||||||||||||||||||||||
Store operating expenses | 29,420 | 24,725 | 19 | % |
34,072 |
38 |
% | ||||||||||||||||||
Depreciation and amortization | 2,510 | 2,128 | 18 | % |
2,913 |
37 |
% | ||||||||||||||||||
Total segment expenses | 31,930 | 26,853 | 19 | % |
36,985 |
38 |
% | ||||||||||||||||||
Segment pre-tax operating income | $ | 28,816 | $ | 25,471 | 13 | % | $ |
33,501 |
32 |
% | |||||||||||||||
FIRSTCASH, INC.
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table reconciles pre-tax operating income of the Company’s
Three Months Ended | |||||||||||||||
December 31, | Increase / | ||||||||||||||
2016 |
2015 |
(Decrease) |
|||||||||||||
Other Items | |||||||||||||||
$ | 77,547 | $ | 21,426 | 262 | % | ||||||||||
28,816 | 25,471 | 13 | % | ||||||||||||
Consolidated segment pre-tax operating income | 106,363 | 46,897 | 127 | % | |||||||||||
Corporate expenses and other income: | |||||||||||||||
Administrative expenses | 38,260 | 12,818 | 198 | % | |||||||||||
Merger and other acquisition expenses | 2,793 | 1,700 | 64 | % | |||||||||||
Depreciation and amortization | 4,399 | 770 | 471 | % | |||||||||||
Interest expense | 6,461 | 4,405 | 47 | % | |||||||||||
Interest income | (115 | ) | (423 | ) | (73 | )% | |||||||||
Net gain on sale of common stock of Enova | (1,552 | ) | — | — | % | ||||||||||
Total corporate expenses and other income | 50,246 | 19,270 | 161 | % | |||||||||||
Income before income taxes | 56,117 | 27,627 | 103 | % | |||||||||||
Provision for income taxes | 19,425 | 8,217 | 136 | % | |||||||||||
Net income | $ | 36,692 | $ | 19,410 | 89 | % | |||||||||
FIRSTCASH, INC.
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
Operating Results for the Twelve Months Ended December 31, 2016 Compared to the Twelve Months Ended December 31, 2015
The following table presents segment pre-tax operating income of the
Twelve Months Ended | |||||||||||||||
December 31, | Increase / | ||||||||||||||
2016 |
2015 |
(Decrease) |
|||||||||||||
Revenue: | |||||||||||||||
Retail merchandise sales | $ | 386,026 | $ | 197,011 | 96 | % | |||||||||
Pawn loan fees | 195,883 | 94,761 | 107 | % | |||||||||||
Consumer loan and credit services fees | 41,922 | 25,696 | 63 | % | |||||||||||
Wholesale scrap jewelry sales | 47,680 | 19,380 | 146 | % | |||||||||||
Total revenue | 671,511 | 336,848 | 99 | % | |||||||||||
Cost of revenue: | |||||||||||||||
Cost of retail merchandise sold | 241,086 | 117,059 | 106 | % | |||||||||||
Consumer loan and credit services loss provision | 11,494 | 6,770 | 70 | % | |||||||||||
Cost of wholesale scrap jewelry sold | 41,357 | 17,530 | 136 | % | |||||||||||
Total cost of revenue | 293,937 | 141,359 | 108 | % | |||||||||||
Net revenue | 377,574 | 195,489 | 93 | % | |||||||||||
Segment expenses: | |||||||||||||||
Store operating expenses | 215,227 | 107,852 | 100 | % | |||||||||||
Depreciation and amortization | 13,618 | 6,146 | 122 | % | |||||||||||
Total segment expenses | 228,845 | 113,998 | 101 | % | |||||||||||
Segment pre-tax operating income | $ | 148,729 | $ | 81,491 | 83 | % | |||||||||
FIRSTCASH, INC.
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income of the
Constant Currency Basis | ||||||||||||||||||||||||||
Twelve Months | ||||||||||||||||||||||||||
Twelve Months | Ended | |||||||||||||||||||||||||
Ended | December 31, | Increase / | ||||||||||||||||||||||||
December 31, | Increase / | 2016 | (Decrease) | |||||||||||||||||||||||
2016 |
2015 |
(Decrease) |
(Non-GAAP) |
(Non-GAAP) |
||||||||||||||||||||||
Latin America Operations Segment | ||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Retail merchandise sales | $ | 283,105 | $ | 252,285 | 12 | % | $ | 331,325 | 31 | % | ||||||||||||||||
Pawn loan fees | 116,874 | 100,687 | 16 | % | 136,259 | 35 | % | |||||||||||||||||||
Consumer loan and credit services fees | 1,929 | 2,107 | (8 | )% | 2,271 | 8 | % | |||||||||||||||||||
Wholesale scrap jewelry sales | 14,958 | 12,675 | 18 | % | 14,958 | 18 | % | |||||||||||||||||||
Total revenue | 416,866 |
367,754 |
13 | % | 484,813 | 32 | % | |||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||||
Cost of retail merchandise sold | 177,470 | 161,572 | 10 | % | 207,615 | 28 | % | |||||||||||||||||||
Consumer loan and credit services loss provision | 499 | 389 | 28 | % | 587 | 51 | % | |||||||||||||||||||
Cost of wholesale scrap jewelry sold | 11,668 | 10,098 | 16 | % | 13,505 | 34 | % | |||||||||||||||||||
Total cost of revenue | 189,637 | 172,059 | 10 | % | 221,707 | 29 | % | |||||||||||||||||||
Net revenue | 227,229 | 195,695 | 16 | % | 263,106 | 34 | % | |||||||||||||||||||
Segment expenses: | ||||||||||||||||||||||||||
Store operating expenses | 112,787 | 99,720 | 13 | % |
130,029 |
30 |
% | |||||||||||||||||||
Depreciation and amortization | 10,429 | 8,803 | 18 | % |
12,064 |
37 |
% | |||||||||||||||||||
Total segment expenses | 123,216 | 108,523 | 14 | % |
142,093 |
31 |
% | |||||||||||||||||||
Segment pre-tax operating income | $ | 104,013 | $ | 87,172 | 19 | % | $ |
121,013 |
39 |
% | ||||||||||||||||
FIRSTCASH, INC.
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table reconciles pre-tax operating income of the Company’s
Twelve Months Ended | ||||||||||||||
December 31, | Increase / | |||||||||||||
2016 |
2015 |
(Decrease) |
||||||||||||
Other Items | ||||||||||||||
$ | 148,729 | $ | 81,491 | 83 | % | |||||||||
104,013 | 87,172 | 19 | % | |||||||||||
Consolidated segment pre-tax operating income | 252,742 | 168,663 | 50 | % | ||||||||||
Corporate expenses and other income: | ||||||||||||||
Administrative expenses | 96,537 | 51,883 | 86 | % | ||||||||||
Merger and other acquisition expenses | 36,670 | 2,875 | 1,175 | % | ||||||||||
Depreciation and amortization | 7,818 | 2,990 | 161 | % | ||||||||||
Goodwill impairment - |
— | 7,913 | (100 | )% | ||||||||||
Interest expense | 20,320 | 16,887 | 20 | % | ||||||||||
Interest income | (751 | ) | (1,566 | ) | (52 | )% | ||||||||
Net gain on sale of common stock of Enova | (1,299 | ) | — | — | % | |||||||||
Total corporate expenses and other income | 159,295 | 80,982 | 97 | % | ||||||||||
Income before income taxes | 93,447 | 87,681 | 7 | % | ||||||||||
Provision for income taxes | 33,320 | 26,971 | 24 | % | ||||||||||
Net income | $ | 60,127 | $ | 60,710 | (1 | )% | ||||||||
FIRSTCASH, INC.
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
Pawn and Consumer Lending Earning Assets at December 31, 2016 Compared to December 31, 2015
The following table details pawn loans, inventories and other consumer loans held by the Company and active credit service organization (“CSO”) credit extensions from independent third-party lenders for each reportable segment as of December 31, 2016 as compared to December 31, 2015 (in thousands). Constant currency results are non-GAAP measures which exclude the effects of foreign currency translation and are calculated by translating current-year balances at the prior-year end-of-period exchange rate, which is more fully described elsewhere in this release.
Constant Currency Basis | |||||||||||||||||||||||||
Balance at | |||||||||||||||||||||||||
December 31, | Increase / | ||||||||||||||||||||||||
Balance at December 31, | Increase / | 2016 | (Decrease) | ||||||||||||||||||||||
2016 |
2015 |
(Decrease) |
(Non-GAAP) |
(Non-GAAP) |
|||||||||||||||||||||
Pawn loans | $ | 293,392 | $ | 68,153 | 330% | $ | 293,392 | 330% | |||||||||||||||||
CSO credit extensions held by independent third-party (1) | 12,098 | 7,005 | 73% | 12,098 | 73% | ||||||||||||||||||||
Other consumer loans | 28,847 | 688 | 4,093% | 28,847 | 4,093% | ||||||||||||||||||||
Combined customer loans (2) | 334,337 | 75,846 | 341% | 334,337 | 341% | ||||||||||||||||||||
Pawn loans | 57,114 | 49,448 | 16% | 67,745 | 37% | ||||||||||||||||||||
Other consumer loans | 357 | 430 | (17)% | 429 | —% | ||||||||||||||||||||
Combined customer loans | 57,471 | 49,878 | 15% | 68,174 | 37% | ||||||||||||||||||||
Total (2): | |||||||||||||||||||||||||
Pawn loans | 350,506 | 117,601 | 198% | 361,137 | 207% | ||||||||||||||||||||
CSO credit extensions held by independent third-parties (1) | 12,098 | 7,005 | 73% | 12,098 | 73% | ||||||||||||||||||||
Other consumer loans | 29,204 | 1,118 | 2,512% | 29,276 | 2,519% | ||||||||||||||||||||
Combined customer loans (2) | $ | 391,808 | $ | 125,724 | 212% | $ | 402,511 | 220% | |||||||||||||||||
Pawn inventories: | |||||||||||||||||||||||||
$ | 282,860 | $ | 56,040 | 405% | $ | 282,860 | 405% | ||||||||||||||||||
47,823 | 37,418 | 28% | 56,908 | 52% | |||||||||||||||||||||
|
Combined inventories | $ | 330,683 | $ | 93,458 | 254% | $ | 339,768 | 264% | ||||||||||||||||
(1) |
CSO amounts outstanding are composed of the principal portion of active CSO extensions of credit by independent third-party lenders, which are not included on the Company’s balance sheet, net of the Company’s estimated fair value of its liability under the letters of credit guaranteeing the extensions of credit. |
||
(2) |
Combined customer loans is a non-GAAP measure as it includes CSO credit extensions held by independent third-parties not included on the Company’s balance sheet. The Company believes this non-GAAP measure provides investors with important information needed to evaluate the magnitude of potential loan losses and the opportunity for revenue performance of the consumer loan portfolio on an aggregate basis. The Company also believes the comparison of the aggregate amounts from period to period is more meaningful than comparing only the amounts reflected on the Company’s balance sheet since both credit services fees revenue and the corresponding loss provision are impacted by the aggregate amount of loans owned by the Company and those guaranteed by the Company as reflected in its financial statements. |
||
FIRSTCASH, INC.
STORE COUNT ACTIVITY
The following table details store count activity for the twelve months ended December 31, 2016:
Pawn Locations (1) |
Consumer |
Total Locations |
||||||||||
Total locations, beginning of period | 296 | 42 | 338 | |||||||||
Merged Cash America locations | 794 | 21 | 815 | |||||||||
Locations acquired | 3 | — | 3 | |||||||||
Locations closed or consolidated | (8 | ) | (18 | ) | (26 | ) | ||||||
Total locations, end of period | 1,085 | 45 | 1,130 | |||||||||
Total locations, beginning of period | 709 | 28 | 737 | |||||||||
New locations opened | 41 | — | 41 | |||||||||
Locations acquired | 179 | — | 179 | |||||||||
Locations closed or consolidated | (2 | ) | — | (2 | ) | |||||||
Total locations, end of period | 927 | 28 | 955 | |||||||||
Total: | ||||||||||||
Total locations, beginning of period | 1,005 | 70 | 1,075 | |||||||||
Merged Cash America locations | 794 | 21 | 815 | |||||||||
New locations opened | 41 | — | 41 | |||||||||
Locations acquired | 182 | — | 182 | |||||||||
Locations closed or consolidated | (10 | ) | (18 | ) | (28 | ) | ||||||
Total locations, end of period | 2,012 | 73 | 2,085 | |||||||||
(1) |
At December 31, 2016, 326 of the |
|
(2) |
The Company’s |
|
FIRSTCASH, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(UNAUDITED)
The Company uses certain financial calculations such as adjusted net income, adjusted net income per share, adjusted EBITDA and constant currency results (as defined or explained below) 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 that the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined in Securities and Exchange Commission (“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 operating performance and because management believes they 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 adjusted net income, adjusted net income per share, adjusted EBITDA and constant currency results 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, adjusted net income, adjusted net income per share, adjusted EBITDA and constant currency results as presented may not be comparable to other similarly titled measures of other companies.
The Company expects to incur significant expenses over the next two years in connection with its merger and integration with Cash America. The Company has adjusted the applicable financial measures to exclude these items because it generally would not incur such costs and expenses as part of its continuing operations. The merger related expenses are predominantly incremental costs directly associated with the merger and integration of Cash America, including professional fees, legal expenses, severance and retention payments, accelerated vesting of certain equity compensation awards, contract breakage costs and costs related to consolidation of technology systems and corporate facilities.
Adjusted Net Income and Adjusted Net Income Per Share
Management believes the presentation of adjusted net income and adjusted net income per share (“Adjusted Income Measures”) provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future. 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.
FIRSTCASH, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)
The following tables provide a reconciliation between the net income and diluted earnings per share calculated in accordance with GAAP to the Adjusted Income Measures, which are shown net of tax (in thousands, except per share data):
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||||||||||||||||||
In |
Per |
In |
Per |
In |
Per |
In |
Per |
||||||||||||||||||||||||||||||||
Net income, as reported | $ | 36,692 | $ | 0.76 | $ | 19,410 | $ | 0.69 | $ | 60,127 | $ | 1.72 | $ | 60,710 | $ | 2.14 | |||||||||||||||||||||||
Adjustments, net of tax: | |||||||||||||||||||||||||||||||||||||||
Merger related expenses: | |||||||||||||||||||||||||||||||||||||||
Transaction | 667 | 0.01 | — | — | 14,399 | 0.41 | — | — | |||||||||||||||||||||||||||||||
Severance and retention | 857 | 0.02 | — | — | 9,594 | 0.27 | — | — | |||||||||||||||||||||||||||||||
Other | — | — | — | — | 1,726 | 0.05 | — | — | |||||||||||||||||||||||||||||||
Total merger related expenses | 1,524 | 0.03 | — | — | 25,719 | 0.73 | — | — | |||||||||||||||||||||||||||||||
Other acquisition expenses | 210 | — | 1,190 | 0.04 | 304 | 0.01 | 1,989 | 0.07 | |||||||||||||||||||||||||||||||
Restructuring expenses related to |
— | — | — | — | — | — | 5,784 | 0.21 | |||||||||||||||||||||||||||||||
Net gain on sale of common stock of Enova | (978 | ) | (0.02 | ) | — | — | (818 | ) | (0.02 | ) | — | — | |||||||||||||||||||||||||||
Adjusted net income | $ | 37,448 | $ | 0.77 | $ | 20,600 | $ | 0.73 | $ | 85,332 | $ | 2.44 | $ | 68,483 | $ | 2.42 | |||||||||||||||||||||||
FIRSTCASH, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)
The following table provides a reconciliation of the gross amounts, the impact of income taxes and the net amounts for each of the adjustments included in the table above (in thousands):
Three Months Ended December 31, | |||||||||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||||||||
Pre-tax |
Tax |
After-tax |
Pre-tax |
Tax |
After-tax |
||||||||||||||||||||||||
Merger related expenses (1) | $ | 2,493 | $ | 969 | $ | 1,524 | $ | — | $ | — | $ | — | |||||||||||||||||
Other acquisition expenses | 300 | 90 | 210 | 1,700 | 510 | 1,190 | |||||||||||||||||||||||
Net gain on sale of common stock of Enova | (1,552 | ) | (574 | ) | (978 | ) | — | — | — | ||||||||||||||||||||
Total adjustments | $ | 1,241 | $ | 485 | $ | 756 | $ | 1,700 | $ | 510 | $ | 1,190 | |||||||||||||||||
(1) Resulting tax benefit is less than the statutory rate as a portion of the transaction costs are not deductible for tax purposes. |
|||||||||||||||||||||||||||||
Twelve Months Ended December 31, | |||||||||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||||||||
Pre-tax |
Tax |
After-tax |
Pre-tax |
Tax |
After-tax |
||||||||||||||||||||||||
Merger related expenses (1) | $ | 36,220 | $ | 10,501 | $ | 25,719 | $ | — | $ | — | $ | — | |||||||||||||||||
Other acquisition expenses | 450 | 146 | 304 | 2,875 | 886 | 1,989 | |||||||||||||||||||||||
Restructuring expenses related to |
— | — | — | 8,878 | 3,094 | 5,784 | |||||||||||||||||||||||
Net gain on sale of common stock of Enova | (1,299 | ) | (481 | ) | (818 | ) | — | — | — | ||||||||||||||||||||
Total adjustments | $ | 35,371 | $ | 10,166 | $ | 25,205 | $ | 11,753 | $ | 3,980 | $ | 7,773 | |||||||||||||||||
(1) Resulting tax benefit is less than the statutory rate as a portion of the transaction costs are not deductible for tax purposes. |
|||||||||||||||||||||||||||||
FIRSTCASH, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
The Company defines adjusted EBITDA as net income before income taxes, depreciation and amortization, interest expense, interest income and 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 adjusted EBITDA is commonly used by investors to assess a company’s financial performance. However, adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for net income or other statement of income data prepared in accordance with GAAP. The following table provides a reconciliation of net income to adjusted EBITDA (in thousands):
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2016 |
2015 |
2016 |
2015 |
|||||||||||||||
Net income | $ | 36,692 | $ | 19,410 | $ | 60,127 | $ | 60,710 | ||||||||||
Income taxes | 19,425 | 8,217 | 33,320 | 26,971 | ||||||||||||||
Depreciation and amortization (1) | 14,700 | 4,288 | 31,865 | 17,446 | ||||||||||||||
Interest expense | 6,461 | 4,405 | 20,320 | 16,887 | ||||||||||||||
Interest income | (115 | ) | (423 | ) | (751 | ) | (1,566 | ) | ||||||||||
EBITDA | 77,163 | 35,897 | 144,881 | 120,448 | ||||||||||||||
Adjustments: | ||||||||||||||||||
Merger related expenses | 2,493 | — | 36,220 | — | ||||||||||||||
Other acquisition expenses | 300 | 1,700 | 450 | 2,875 | ||||||||||||||
Restructuring expenses related to |
— | — | — | 8,878 | ||||||||||||||
Gain on sale of equity securities | (1,552 | ) | — | (1,299 | ) | — | ||||||||||||
Adjusted EBITDA | $ | 78,404 | $ | 37,597 | $ | 180,252 | $ | 132,201 | ||||||||||
Adjusted EBITDA margin calculated as follows: | ||||||||||||||||||
Total revenue | $ | 462,042 | $ | 191,424 | $ | 1,088,377 | $ | 704,602 | ||||||||||
Adjusted EBITDA | $ | 78,404 | $ | 37,597 | $ | 180,252 | $ | 132,201 | ||||||||||
Adjusted EBITDA as a percentage of revenue | 17 | % | 20 | % | 17 | % | 19 | % | ||||||||||
(1) |
For the twelve months ended December 31, 2015, excludes |
|||||||||||||||||
FIRSTCASH, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)
Constant Currency
The Company’s reporting currency is the
The following table provides exchange rates for the Mexican peso and Guatemalan quetzal for the current and prior year periods:
December 31, | Increase / | ||||||||
2016 |
2015 |
(Decrease) | |||||||
Mexican peso / |
|
||||||||
End-of-period | 20.7 | 17.2 | (20)% | ||||||
Three months ended | 19.8 | 16.7 | (19)% | ||||||
Twelve months ended | 18.7 | 15.8 | (18)% | ||||||
Guatemalan quetzal / |
|||||||||
End-of-period | 7.5 | 7.6 | 1% | ||||||
Three months ended | 7.5 | 7.6 | 1% | ||||||
Twelve months ended | 7.6 | 7.7 | 1% | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170202005390/en/
Global IR Group
Gar Jackson, 949-873-2789
gar@globalirgroup.com
or
FirstCash, Inc.
Doug Orr, 817-258-2650
Executive Vice President and Chief Financial Officer
investorrelations@firstcash.com
ir.firstcash.com
Source: FirstCash, Inc.