FirstCash Reports Second Quarter Results; 64 Stores Added YTD, Including 26-Store U.S. Acquisition; Declares $0.30 Quarterly Cash Dividend
Mr.
“Second quarter highlights also include the acquisition of a 26-store chain of high-performing pawn stores in
This release contains adjusted earnings measures, which exclude certain extraordinary and/or non-cash expenses, which are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.
Three Months Ended |
||||||||||||||||
As Reported (GAAP) | Adjusted (Non-GAAP) | |||||||||||||||
In thousands, except per share amounts | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | $ | 389,578 | $ | 412,746 | $ | 389,578 | $ | 412,746 | ||||||||
Net income | $ | 28,427 | $ | 25,873 | $ | 29,038 | $ | 25,872 | ||||||||
Diluted earnings per share | $ | 0.70 | $ | 0.62 | $ | 0.71 | $ | 0.62 | ||||||||
EBITDA (non-GAAP measure) | $ | 56,786 | $ | 53,962 | $ | 57,524 | $ | 53,930 | ||||||||
Weighted-average diluted shares | 40,802 | 41,531 | 40,802 | 41,531 |
Six Months Ended |
||||||||||||||||
As Reported (GAAP) | Adjusted (Non-GAAP) | |||||||||||||||
In thousands, except per share amounts | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Revenue | $ | 797,517 | $ | 879,236 | $ | 797,517 | $ | 879,236 | ||||||||
Net income | $ | 62,142 | $ | 58,791 | $ | 63,966 | $ | 66,167 | ||||||||
Diluted earnings per share | $ | 1.52 | $ | 1.41 | $ | 1.56 | $ | 1.59 | ||||||||
EBITDA (non-GAAP measure) | $ | 120,741 | $ | 118,586 | $ | 123,125 | $ | 128,536 | ||||||||
Weighted-average diluted shares | 40,929 | 41,769 | 40,929 | 41,769 |
Consolidated Earnings Highlights
- Diluted earnings per share for the second quarter increased 13% on a GAAP basis and increased 15% on an adjusted non-GAAP basis compared to the prior-year quarter. Year-to-date diluted earnings per share increased 8% on a GAAP basis and decreased 2% on an adjusted non-GAAP basis compared to the prior year.
- Operating results in the second quarter reflected increased revenues in
Latin America coupled with improved gross margins and lower operating expenses in theU.S. , which more than offset the expected revenue decline in theU.S. :- Pawn loans outstanding at quarter end increased 35% over the prior year and 29% on a constant currency basis. Resulting pawn fees, which typically lag the growth in pawn receivables, increased 8% in total and 2% on a constant currency basis in the second quarter compared to the prior-year quarter.
- Retail sales gross margins of 42% in the second quarter remained at record levels and improved over the 40% gross margins achieved in the second quarter of last year. Despite higher than normal
U.S. retail comps a year ago when many competing retailers were shut down due to the pandemic, second quarter merchandise gross profit decreased only 3% compared to the same quarter of 2020. - Increased inventory turns and margins resulted in a record return on earning assets (trailing twelve months net revenue divided by average pawn receivables and inventories) of 190% as of
June 2021 compared to 172% in June of 2020. - The Company continued to optimize operating expenses which resulted in store level expense reductions of 1% on a
U.S. dollar basis and 5% on a constant currency basis versus the prior-year quarter. Administrative expenses were reduced 3% on a dollar reported basis and 6% on a constant currency basis compared to the prior year. - The adjusted EBITDA margin for the second quarter of 2021 was 15% compared to a 13% margin in the second quarter of 2020.
Acquisitions and Store Opening Highlights
- The Company acquired 26 U.S. pawn stores located in the
Houston andSan Antonio markets ofTexas in mid-May. Year-to-date, a total of 28 U.S. stores have been acquired for an aggregate purchase price of approximately$51 million . - A total of 12 de novo locations were opened during the second quarter, which included 10 locations in
Mexico , one inColombia and one in theU.S. A total of 36 stores have been opened year-to-date. In addition, a total of eight locations inMexico have relocated or expanded thus far in 2021 while another three locations inMexico have been consolidated with overlapping stores. - With the addition of 64 total stores year-to-date, the Company now operates 2,804 stores, with 1,733 stores located in
Latin America and 1,071 stores in theU.S. The Latin American locations include 1,645 stores inMexico , 60 stores inGuatemala , 15 stores inColombia and 13 stores inEl Salvador .
- Pawn receivables were up 29% at
June 30, 2021 compared to the prior year while same-store pawn receivables increased 24% at quarter end, reflecting further recovery in pawn balances, especially in the latter half of the quarter. Resulting pawn fees, which typically lag pawn receivables growth, were down only 7% in total for the second quarter, and 9% on a same-store basis, compared to the prior-year quarter. - Retail sales for the second quarter of 2021 were down 17% compared to the prior-year quarter, which was expected given the especially robust retail sales in the second quarter of 2020 when many other
U.S. retailers were closed due to the pandemic. On a same store-basis, retail sales declined 19% compared to the prior-year quarter. - Retail margins continued to expand, with second quarter retail margins of 45% compared to 42% in the same quarter last year. The strength in retail margins reflect continued retail demand for value-priced, pre-owned merchandise, increased buying of fresh merchandise from customers and lower levels of aged inventory, all of which limited the need for normal discounting.
- Inventories increased 20% on a year-over-year basis, and while not recovered to normalized levels, the inventory turnover rate at 3.1 times for the trailing twelve months ended
June 30, 2021 reflects improved retail efficiency. Inventories aged greater than one year as ofJune 30, 2021 declined further to 1%. - Wholesale scrap jewelry margins improved to 21% in the second quarter of 2021 compared to 12% in the respective prior-year period, as the Company benefited from increased gold prices compared to last year. Despite lower sales volumes, net revenue from non-core scrap jewelry sales increased 30% for the quarter compared to the prior-year quarter as a result of the increased margins.
- Store operating expenses decreased 9% in total and 11% on a same-store basis compared to the prior-year quarter, reflecting the continued expense optimization efforts from reduced staffing levels through normal attrition, reduced store hours in some markets and other cost saving initiatives.
- The segment pre-tax operating margin improved to 19% for the second quarter of 2021 compared to 18% for the prior-year quarter. On a year-to-date basis, the segment pre-tax operating margin was 21%, a significant improvement over the 19% margin in the respective prior-year period.
Note: Certain growth rates in “Latin America Pawn Operations” below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to
Latin America Pawn Operations
- Pawn receivables at
June 30, 2021 were up 50% compared to the prior year, and 30% on a constant currency basis, on both a total and same-store basis. - Pawn fees increased 43% in the second quarter, or 24% on a constant currency basis, as compared to the prior-year quarter. On a same-store basis, pawn fees increased 42% on a
U.S. dollar basis and 23% on a constant currency basis compared to the prior-year quarter. - Retail sales for the second quarter increased 18%, or 2% on a constant currency basis, compared to the prior-year quarter. Same-store retail sales increased 16% on a
U.S. dollar basis and 1% on a constant currency basis compared to the prior-year quarter. - Retail margins continued to strengthen at 37% in the second quarter of 2021 compared to 36% in the second quarter of 2020. As in the
U.S. , the improved margins reflect fresher inventories and continued demand for popular value-priced consumer electronics. As a result, gross profit from retail sales increased 21% on aU.S. dollar basis, or 4% on a constant currency basis, in the second quarter compared to the prior-year quarter. - Further reflecting the improved retail efficiency, annualized inventory turnover was a near record at 4.4 times for the trailing twelve months ended
June 30, 2021 compared to 3.9 turns in the same period last year. Inventories aged greater than one year as ofJune 30, 2021 declined further to 1%. - Store operating expenses increased 21% on a
U.S. dollar basis but only 5% on a constant currency basis while same-store operating expenses increased 19%, or 4% on a constant currency basis, compared to the prior-year quarter. As a reminder, store operating expenses in the prior-year quarter were lower than normal in part due to temporary store closures and restrictions on retail operations in most Latin American markets due to the pandemic. - Segment pre-tax operating income for the second quarter of 2021 increased
$7 million , or 36%, ($4 million , or 20% on a constant currency basis) over the prior-year quarter. The resulting segment pre-tax operating margin increased to 20% for the second quarter of 2021 (also 20% on a constant currency basis) compared to 17% in the prior-year quarter.
Liquidity and Shareholder Returns
- The Company generated
$193 million in cash flow from operations and$77 million in adjusted free cash flow during the trailing twelve months endedJune 30, 2021 compared to$269 million of cash flow from operations and$421 million of adjusted free cash flow during the same prior-year period. - During the second quarter, the Company utilized its cash flows and borrowing capacity to fund
$62 million in pawn receivable and inventory growth,$48 million in acquisitions and$26 million for capital expenditures (primarily for new stores) and purchases of store real estate. - The Board of Directors declared a
$0.30 per share third quarter cash dividend on common shares outstanding, which will be paid onAugust 27, 2021 to stockholders of record as ofAugust 13, 2021 . This represents an annualized dividend of$1.20 per share. Any future dividends are subject to approval by the Company’s Board of Directors. - The Company repurchased 452,000 shares of common stock during the second quarter at an aggregate cost of
$33 million and an average cost per share of$73.06 . For the six months endedJune 30, 2021 , the Company repurchased 536,000 shares of common stock at an aggregate cost of$38 million and an average cost per share of$70.87 . The Company had$84 million remaining under its current share repurchase authorization at quarter end. Future share repurchases are subject to expected liquidity, acquisition opportunities, debt covenant restrictions and other relevant factors.
2021 Outlook
Given the continued uncertainties related to COVID-19 and, in particular, the associated government assistance programs, the Company is not currently providing earnings guidance. However, the following factors are expected to impact operating trends in 2021:
- Impacts of COVID-19: The extent to which COVID-19 continues to impact the Company’s operations will depend on future developments, which remain uncertain and cannot be predicted with confidence. This uncertainty includes the pace of the economic recovery in the markets in which we serve and the impact of future governmental responses, most notably the monthly advance payment of federal child tax credits that began in mid-July in the
U.S. - Pawn loan origination activity continues to improve, with
U.S. same-store new loan volumes thus far in July down only 10% compared to 2019 originations. WhileU.S. same-store pawn balances are currently up 28% atJuly 20, 2021 compared to the prior year, they are still down 23% compared to the same date in 2019. Accordingly, same-store pawn fees in the third quarter will continue to be below normalized levels. The Company cannot currently predict the impact, if any, of the monthly advance payments of the federal child tax credit which began inmid-July 2021 . - In
Mexico , which comprises the majority of the Company’s Latin American operations and where there have been minimal stimulus programs, same-store pawn loans are currently 34% above prior-year levels and only 4% below this date in 2019.
- Pawn loan origination activity continues to improve, with
- Income tax rate: For the full year of 2021, the effective income tax rate, under current tax codes in the
U.S. andLatin America , is expected to range from 26.5% to 27.5% compared to 25.8% in 2020. - New store openings: Through June, the Company has opened 36 new stores and the Company continues to expect 50 to 60 new store openings for the full year 2021.
Additional Commentary and Analysis
“We are very encouraged by the current trends, most notably the improved lending demand and the continuation of strong retail metrics. Even though revenues are still recovering, we posted year-to-date segment operating profit margins of 20% or more in both the
“Looking further at the
“In Latin America, and
“Looking ahead, we expect additional revenue and earnings growth through continued store expansion initiatives. The 28 stores acquired in
“Finally, we remain committed to further drive shareholder value through our dividend and stock repurchase programs. The quarterly cash dividend was raised to
“We believe there are significant growth opportunities ahead that will continue to be driven by de novo store openings and strategic acquisitions. Combined with our focus on margin improvements and expense management, we believe that we can further increase earnings and enhance shareholder value,” concluded
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, including the unknown duration and severity of the COVID-19 pandemic, which may be impacted by variants of the COVID-19 virus and the timing, availability and efficacy of the COVID-19 vaccines in the jurisdictions in which the Company operates, the impact of governmental responses that have been, and may in the future be, imposed in response to the pandemic, including stimulus programs which could adversely impact lending demand and regulations which could adversely affect the Company’s ability to continue to fully operate, potential changes in consumer behavior and shopping patterns which could impact demand for both the Company’s pawn loan and retail products, changes in the economic conditions in
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share amounts)
Three Months Ended | Six Months Ended | |||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||
Revenue: | ||||||||||||||||||||
Retail merchandise sales | $ | 265,567 | $ | 287,400 | $ | 537,609 | $ | 584,029 | ||||||||||||
Pawn loan fees | 109,909 | 101,990 | 225,431 | 244,105 | ||||||||||||||||
Wholesale scrap jewelry sales | 14,102 | 22,785 | 34,477 | 49,156 | ||||||||||||||||
Consumer loan and credit services fees | — | 571 | — | 1,946 | ||||||||||||||||
Total revenue | 389,578 | 412,746 | 797,517 | 879,236 | ||||||||||||||||
Cost of revenue: | ||||||||||||||||||||
Cost of retail merchandise sold | 153,424 | 171,511 | 310,577 | 356,206 | ||||||||||||||||
Cost of wholesale scrap jewelry sold | 11,932 | 18,357 | 29,129 | 41,204 | ||||||||||||||||
Consumer loan and credit services loss provision | — | (223 | ) | — | (584 | ) | ||||||||||||||
Total cost of revenue | 165,356 | 189,645 | 339,706 | 396,826 | ||||||||||||||||
Net revenue | 224,222 | 223,101 | 457,811 | 482,410 | ||||||||||||||||
Expenses and other income: | ||||||||||||||||||||
Store operating expenses | 139,128 | 141,051 | 276,452 | 294,551 | ||||||||||||||||
Administrative expenses | 27,398 | 28,386 | 58,397 | 61,288 | ||||||||||||||||
Depreciation and amortization | 10,902 | 10,324 | 21,514 | 20,998 | ||||||||||||||||
Interest expense | 7,198 | 6,974 | 14,428 | 15,392 | ||||||||||||||||
Interest income | (119 | ) | (525 | ) | (277 | ) | (710 | ) | ||||||||||||
Merger and acquisition expenses | 1,086 | 134 | 1,252 | 202 | ||||||||||||||||
(Gain) loss on foreign exchange | (577 | ) | (614 | ) | (310 | ) | 2,071 | |||||||||||||
Write-off of certain Cash America merger related lease intangibles | 401 | 182 | 1,279 | 3,812 | ||||||||||||||||
Impairment of certain other assets | — | — | — | 1,900 | ||||||||||||||||
Total expenses and other income | 185,417 | 185,912 | 372,735 | 399,504 | ||||||||||||||||
Income before income taxes | 38,805 | 37,189 | 85,076 | 82,906 | ||||||||||||||||
Provision for income taxes | 10,378 | 11,316 | 22,934 | 24,115 | ||||||||||||||||
Net income | $ | 28,427 | $ | 25,873 | $ | 62,142 | $ | 58,791 | ||||||||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.70 | $ | 0.62 | $ | 1.52 | $ | 1.41 | ||||||||||||
Diluted | $ | 0.70 | $ | 0.62 | $ | 1.52 | $ | 1.41 | ||||||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 40,754 | 41,440 | 40,893 | 41,676 | ||||||||||||||||
Diluted | 40,802 | 41,531 | 40,929 | 41,769 | ||||||||||||||||
Dividends declared per common share | $ | 0.30 | $ | 0.27 | $ | 0.57 | $ | 0.54 |
Certain amounts in the consolidated statements of income for the six months ended
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)
2021 | 2020 | 2020 | |||||||||||||
ASSETS | |||||||||||||||
Cash and cash equivalents | $ | 50,061 | $ | 70,956 | $ | 65,850 | |||||||||
Fees and service charges receivable | 40,183 | 30,418 | 41,110 | ||||||||||||
Pawn loans | 312,166 | 230,383 | 308,231 | ||||||||||||
Inventories | 216,955 | 179,967 | 190,352 | ||||||||||||
Income taxes receivable | 7,324 | 4,988 | 9,634 | ||||||||||||
Prepaid expenses and other current assets | 11,698 | 10,865 | 9,388 | ||||||||||||
Total current assets | 638,387 | 527,577 | 624,565 | ||||||||||||
Property and equipment, net | 404,283 | 341,114 | 373,667 | ||||||||||||
Operating lease right of use asset | 299,223 | 283,063 | 298,957 | ||||||||||||
1,017,273 | 929,575 | 977,381 | |||||||||||||
Intangible assets, net | 83,372 | 84,389 | 83,651 | ||||||||||||
Other assets | 9,406 | 9,037 | 9,818 | ||||||||||||
Deferred tax assets | 4,489 | 7,764 | 4,158 | ||||||||||||
Total assets | $ | 2,456,433 | $ | 2,182,519 | $ | 2,372,197 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||
Accounts payable and accrued liabilities | $ | 103,331 | $ | 69,810 | $ | 81,917 | |||||||||
Customer deposits | 44,486 | 35,439 | 34,719 | ||||||||||||
Income taxes payable | 369 | 13,230 | 1,148 | ||||||||||||
Lease liability, current | 89,027 | 83,580 | 88,622 | ||||||||||||
Total current liabilities | 237,213 | 202,059 | 206,406 | ||||||||||||
Revolving unsecured credit facilities | 163,000 | 200,000 | 123,000 | ||||||||||||
Senior unsecured notes | 493,303 | 296,923 | 492,916 | ||||||||||||
Deferred tax liabilities | 75,912 | 67,842 | 71,173 | ||||||||||||
Lease liability, non-current | 196,189 | 182,915 | 194,887 | ||||||||||||
Total liabilities | 1,165,617 | 949,739 | 1,088,382 | ||||||||||||
Stockholders’ equity: | |||||||||||||||
Common stock | 493 | 493 | 493 | ||||||||||||
Additional paid-in capital | 1,219,948 | 1,226,512 | 1,221,788 | ||||||||||||
Retained earnings | 828,040 | 763,810 | 789,303 | ||||||||||||
Accumulated other comprehensive loss | (115,790 | ) | (172,150 | ) | (118,432 | ) | |||||||||
Common stock held in treasury, at cost | (641,875 | ) | (585,885 | ) | (609,337 | ) | |||||||||
Total stockholders’ equity | 1,290,816 | 1,232,780 | 1,283,815 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 2,456,433 | $ | 2,182,519 | $ | 2,372,197 |
Certain amounts in the consolidated balance sheets as of
OPERATING INFORMATION
(UNAUDITED)
The Company’s reportable segments are as follows:
U.S. operationsLatin America operations - includes operations inMexico ,Guatemala ,Colombia andEl Salvador
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 and inventories, as well as other earning asset metrics of the
As of |
||||||||||||
2021 | 2020 | Increase | ||||||||||
Earning assets: | ||||||||||||
Pawn loans | $ | 203,838 | $ | 158,253 | 29 | % | ||||||
Inventories | 144,083 | 120,408 | 20 | % | ||||||||
$ | 347,921 | $ | 278,661 | 25 | % | |||||||
Average outstanding pawn loan amount (in ones) | $ | 209 | $ | 190 | 10 | % | ||||||
Composition of pawn collateral: | ||||||||||||
General merchandise | 35 | % | 31 | % | ||||||||
Jewelry | 65 | % | 69 | % | ||||||||
100 | % | 100 | % | |||||||||
Composition of inventories: | ||||||||||||
General merchandise | 49 | % | 38 | % | ||||||||
Jewelry | 51 | % | 62 | % | ||||||||
100 | % | 100 | % | |||||||||
Percentage of inventory aged greater than one year | 1 | % | 3 | % | ||||||||
Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) | 3.1 times | 3.2 times |
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income and other operating metrics of the
Three Months Ended | ||||||||||||||
2021 | 2020 | Decrease | ||||||||||||
Revenue: | ||||||||||||||
Retail merchandise sales | $ | 173,254 | $ | 208,944 | (17 | )% | ||||||||
Pawn loan fees | 66,942 | 71,900 | (7 | )% | ||||||||||
Wholesale scrap jewelry sales | 6,846 | 9,557 | (28 | )% | ||||||||||
Consumer loan and credit services fees (1) | — | 571 | (100 | )% | ||||||||||
Total revenue | 247,042 | 290,972 | (15 | )% | ||||||||||
Cost of revenue: | ||||||||||||||
Cost of retail merchandise sold | 95,599 | 121,661 | (21 | )% | ||||||||||
Cost of wholesale scrap jewelry sold | 5,387 | 8,432 | (36 | )% | ||||||||||
Consumer loan and credit services loss provision (1) | — | (223 | ) | (100 | )% | |||||||||
Total cost of revenue | 100,986 | 129,870 | (22 | )% | ||||||||||
Net revenue | 146,056 | 161,102 | (9 | )% | ||||||||||
Segment expenses: | ||||||||||||||
Store operating expenses | 93,574 | 103,302 | (9 | )% | ||||||||||
Depreciation and amortization | 5,347 | 5,561 | (4 | )% | ||||||||||
Total segment expenses | 98,921 | 108,863 | (9 | )% | ||||||||||
Segment pre-tax operating income | $ | 47,135 | $ | 52,239 | (10 | )% | ||||||||
Operating metrics: | ||||||||||||||
Retail merchandise sales margin | 45 | % | 42 | % | ||||||||||
Wholesale scrap jewelry sales margin | 21 | % | 12 | % | ||||||||||
Net revenue margin | 59 | % | 55 | % | ||||||||||
Segment pre-tax operating margin | 19 | % | 18 | % |
(1) Effective
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income and other operating metrics of the
Six Months Ended | ||||||||||||||
2021 | 2020 | Decrease | ||||||||||||
Revenue: | ||||||||||||||
Retail merchandise sales | $ | 363,211 | $ | 404,910 | (10 | )% | ||||||||
Pawn loan fees | 143,339 | 169,757 | (16 | )% | ||||||||||
Wholesale scrap jewelry sales | 16,049 | 25,035 | (36 | )% | ||||||||||
Consumer loan and credit services fees (1) | — | 1,946 | (100 | )% | ||||||||||
Total revenue | 522,599 | 601,648 | (13 | )% | ||||||||||
Cost of revenue: | ||||||||||||||
Cost of retail merchandise sold | 202,129 | 241,190 | (16 | )% | ||||||||||
Cost of wholesale scrap jewelry sold | 12,900 | 22,438 | (43 | )% | ||||||||||
Consumer loan and credit services loss provision (1) | — | (584 | ) | (100 | )% | |||||||||
Total cost of revenue | 215,029 | 263,044 | (18 | )% | ||||||||||
Net revenue | 307,570 | 338,604 | (9 | )% | ||||||||||
Segment expenses: | ||||||||||||||
Store operating expenses | 188,821 | 211,008 | (11 | )% | ||||||||||
Depreciation and amortization | 10,729 | 10,962 | (2 | )% | ||||||||||
Total segment expenses | 199,550 | 221,970 | (10 | )% | ||||||||||
Segment pre-tax operating income | $ | 108,020 | $ | 116,634 | (7 | )% | ||||||||
Operating metrics: | ||||||||||||||
Retail merchandise sales margin | 44 | % | 40 | % | ||||||||||
Wholesale scrap jewelry sales margin | 20 | % | 10 | % | ||||||||||
Net revenue margin | 59 | % | 56 | % | ||||||||||
Segment pre-tax operating margin | 21 | % | 19 | % |
(1) Effective
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:
2021 | 2020 | Favorable | |||||||
Mexican peso / |
|||||||||
End-of-period | 19.8 | 23.0 | 14 | % | |||||
Three months ended | 20.1 | 23.4 | 14 | % | |||||
Six months ended | 20.2 | 21.6 | 6 | % | |||||
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 | 3,757 | 3,759 | — | % | |||||
Three months ended | 3,690 | 3,846 | 4 | % | |||||
Six months ended | 3,622 | 3,689 | 2 | % |
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 | |||||||||||||||||||||
As of |
2021 | Increase | |||||||||||||||||||
2021 | 2020 | Increase | (Non-GAAP) | (Non-GAAP) | |||||||||||||||||
Latin America Operations Segment | |||||||||||||||||||||
Earning assets: | |||||||||||||||||||||
Pawn loans | $ | 108,328 | $ | 72,130 | 50 | % | $ | 94,098 | 30 | % | |||||||||||
Inventories | 72,872 | 59,559 | 22 | % | 63,300 | 6 | % | ||||||||||||||
$ | 181,200 | $ | 131,689 | 38 | % | $ | 157,398 | 20 | % | ||||||||||||
Average outstanding pawn loan amount (in ones) | $ | 80 | $ | 59 | 36 | % | $ | 69 | 17 | % | |||||||||||
Composition of pawn collateral: | |||||||||||||||||||||
General merchandise | 67 | % | 66 | % | |||||||||||||||||
Jewelry | 33 | % | 34 | % | |||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||
Composition of inventories: | |||||||||||||||||||||
General merchandise | 64 | % | 61 | % | |||||||||||||||||
Jewelry | 36 | % | 39 | % | |||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||
Percentage of inventory aged greater than one year | 1 | % | 2 | % | |||||||||||||||||
Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories) | 4.4 times | 3.9 times |
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income and other operating metrics of the
Constant Currency Basis | ||||||||||||||||||||||
Three Months | ||||||||||||||||||||||
Ended | ||||||||||||||||||||||
Three Months Ended | Increase / | |||||||||||||||||||||
Increase / | 2021 | (Decrease) | ||||||||||||||||||||
2021 | 2020 | (Decrease) | (Non-GAAP) | (Non-GAAP) | ||||||||||||||||||
Latin America Operations Segment | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||
Retail merchandise sales | $ | 92,313 | $ | 78,456 | 18 | % | $ | 79,905 | 2 | % | ||||||||||||
Pawn loan fees | 42,967 | 30,090 | 43 | % | 37,175 | 24 | % | |||||||||||||||
Wholesale scrap jewelry sales | 7,256 | 13,228 | (45 | )% | 7,256 | (45 | )% | |||||||||||||||
Total revenue | 142,536 | 121,774 | 17 | % | 124,336 | 2 | % | |||||||||||||||
Cost of revenue: | ||||||||||||||||||||||
Cost of retail merchandise sold | 57,825 | 49,850 | 16 | % | 50,076 | — | % | |||||||||||||||
Cost of wholesale scrap jewelry sold | 6,545 | 9,925 | (34 | )% | 5,645 | (43 | )% | |||||||||||||||
Total cost of revenue | 64,370 | 59,775 | 8 | % | 55,721 | (7 | )% | |||||||||||||||
Net revenue | 78,166 | 61,999 | 26 | % | 68,615 | 11 | % | |||||||||||||||
Segment expenses: | ||||||||||||||||||||||
Store operating expenses | 45,554 | 37,749 | 21 | % | 39,793 | 5 | % | |||||||||||||||
Depreciation and amortization | 4,534 | 3,602 | 26 | % | 3,995 | 11 | % | |||||||||||||||
Total segment expenses | 50,088 | 41,351 | 21 | % | 43,788 | 6 | % | |||||||||||||||
Segment pre-tax operating income | $ | 28,078 | $ | 20,648 | 36 | % | $ | 24,827 | 20 | % | ||||||||||||
Operating metrics: | ||||||||||||||||||||||
Retail merchandise sales margin | 37 | % | 36 | % | 37 | % | ||||||||||||||||
Wholesale scrap jewelry sales margin | 10 | % | 25 | % | 22 | % | ||||||||||||||||
Net revenue margin | 55 | % | 51 | % | 55 | % | ||||||||||||||||
Segment pre-tax operating margin | 20 | % | 17 | % | 20 | % |
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)
The following table presents segment pre-tax operating income and other operating metrics of the
Constant Currency Basis | |||||||||||||||||||||||
Six Months | |||||||||||||||||||||||
Ended | |||||||||||||||||||||||
Six Months Ended | Increase / | ||||||||||||||||||||||
Increase / | 2021 | (Decrease) | |||||||||||||||||||||
2021 | 2020 | (Decrease) | (Non-GAAP) | (Non-GAAP) | |||||||||||||||||||
Latin America Operations Segment | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Retail merchandise sales | $ | 174,398 | $ | 179,119 | (3 | )% | $ | 163,529 | (9 | )% | |||||||||||||
Pawn loan fees | 82,092 | 74,348 | 10 | % | 76,951 | 4 | % | ||||||||||||||||
Wholesale scrap jewelry sales | 18,428 | 24,121 | (24 | )% | 18,428 | (24 | )% | ||||||||||||||||
Total revenue | 274,918 | 277,588 | (1 | )% | 258,908 | (7 | )% | ||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Cost of retail merchandise sold | 108,448 | 115,016 | (6 | )% | 101,709 | (12 | )% | ||||||||||||||||
Cost of wholesale scrap jewelry sold | 16,229 | 18,766 | (14 | )% | 15,210 | (19 | )% | ||||||||||||||||
Total cost of revenue | 124,677 | 133,782 | (7 | )% | 116,919 | (13 | )% | ||||||||||||||||
Net revenue | 150,241 | 143,806 | 4 | % | 141,989 | (1 | )% | ||||||||||||||||
Segment expenses: | |||||||||||||||||||||||
Store operating expenses | 87,631 | 83,543 | 5 | % | 82,513 | (1 | )% | ||||||||||||||||
Depreciation and amortization | 8,797 | 7,665 | 15 | % | 8,310 | 8 | % | ||||||||||||||||
Total segment expenses | 96,428 | 91,208 | 6 | % | 90,823 | — | % | ||||||||||||||||
Segment pre-tax operating income | $ | 53,813 | $ | 52,598 | 2 | % | $ | 51,166 | (3 | )% | |||||||||||||
Operating metrics: | |||||||||||||||||||||||
Retail merchandise sales margin | 38 | % | 36 | % | 38 | % | |||||||||||||||||
Wholesale scrap jewelry sales margin | 12 | % | 22 | % | 17 | % | |||||||||||||||||
Net revenue margin | 55 | % | 52 | % | 55 | % | |||||||||||||||||
Segment pre-tax operating margin | 20 | % | 19 | % | 20 | % |
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 | ||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||
Consolidated Results of Operations | |||||||||||||||||||
Segment pre-tax operating income: | |||||||||||||||||||
$ | 47,135 | $ | 52,239 | $ | 108,020 | $ | 116,634 | ||||||||||||
28,078 | 20,648 | 53,813 | 52,598 | ||||||||||||||||
Consolidated segment pre-tax operating income | 75,213 | 72,887 | 161,833 | 169,232 | |||||||||||||||
Corporate expenses and other income: | |||||||||||||||||||
Administrative expenses | 27,398 | 28,386 | 58,397 | 61,288 | |||||||||||||||
Depreciation and amortization | 1,021 | 1,161 | 1,988 | 2,371 | |||||||||||||||
Interest expense | 7,198 | 6,974 | 14,428 | 15,392 | |||||||||||||||
Interest income | (119 | ) | (525 | ) | (277 | ) | (710 | ) | |||||||||||
Merger and acquisition expenses | 1,086 | 134 | 1,252 | 202 | |||||||||||||||
(Gain) loss on foreign exchange | (577 | ) | (614 | ) | (310 | ) | 2,071 | ||||||||||||
Write-off of certain Cash America merger related lease intangibles | 401 | 182 | 1,279 | 3,812 | |||||||||||||||
Impairment of certain other assets | — | — | — | 1,900 | |||||||||||||||
Total corporate expenses and other income | 36,408 | 35,698 | 76,757 | 86,326 | |||||||||||||||
Income before income taxes | 38,805 | 37,189 | 85,076 | 82,906 | |||||||||||||||
Provision for income taxes | 10,378 | 11,316 | 22,934 | 24,115 | |||||||||||||||
Net income | $ | 28,427 | $ | 25,873 | $ | 62,142 | $ | 58,791 |
STORE COUNT ACTIVITY
The following tables detail store count activity:
Three Months Ended |
||||||||||||
Operations Segment | Operations Segment | Total Locations | ||||||||||
Total locations, beginning of period | 1,046 | 1,725 | 2,771 | |||||||||
New locations opened | 1 | 11 | 12 | |||||||||
Locations acquired | 26 | — | 26 | |||||||||
Consolidation of existing pawn locations (1) | (2 | ) | (3 | ) | (5 | ) | ||||||
Total locations, end of period | 1,071 | 1,733 | 2,804 | |||||||||
Six Months Ended |
||||||||||||
Operations Segment | Operations Segment | Total Locations | ||||||||||
Total locations, beginning of period | 1,046 | 1,702 | 2,748 | |||||||||
New locations opened | 1 | 35 | 36 | |||||||||
Locations acquired | 28 | — | 28 | |||||||||
Consolidation of existing pawn locations (1) | (4 | ) | (4 | ) | (8 | ) | ||||||
Total locations, end of period | 1,071 | 1,733 | 2,804 |
(1) Store consolidations were primarily acquired locations over the past four years which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.
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 under the
While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses to allow more accurate comparisons of the financial results to prior periods. In addition, the Company does not consider these merger and acquisition expenses to be related to the organic operations of the acquired businesses or its continuing operations and such expenses are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.
The Company has certain leases in
In conjunction with the Cash America merger in 2016, the Company recorded certain lease intangibles related to above or below market lease liabilities of Cash America which are included in the operating lease right of use asset on the consolidated balance sheets. As the Company continues to opportunistically purchase real estate from landlords at certain Cash America stores, the associated lease intangible, if any, is written-off and gain or loss is recognized. The Company has adjusted the applicable financial measures to exclude these gains or losses given the variability in size and timing of these transactions and because they are non-cash, non-operating gains or losses. The Company believes this improves comparability of operating results for current periods presented with prior periods.
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 |
||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||
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 | $ | 28,427 | $ | 0.70 | $ | 25,873 | $ | 0.62 | $ | 62,142 | $ | 1.52 | $ | 58,791 | $ | 1.41 | |||||||||||||||
Adjustments, net of tax: | |||||||||||||||||||||||||||||||
Merger and acquisition expenses | 826 | 0.02 | 96 | — | 942 | 0.02 | 146 | — | |||||||||||||||||||||||
Non-cash foreign currency (gain) loss related to lease liability | (524 | ) | (0.02 | ) | (308 | ) | — | (103 | ) | — | 2,761 | 0.07 | |||||||||||||||||||
Non-cash write-off of certain Cash America merger related lease intangibles | 309 | 0.01 | 140 | — | 985 | 0.02 | 2,935 | 0.07 | |||||||||||||||||||||||
Non-cash impairment of certain other assets (1) | — | — | — | — | — | — | 1,463 | 0.04 | |||||||||||||||||||||||
Consumer lending wind-down costs and asset impairments | — | — | 71 | — | — | — | 71 | — | |||||||||||||||||||||||
Adjusted net income and diluted earnings per share | $ | 29,038 | $ | 0.71 | $ | 25,872 | $ | 0.62 | $ | 63,966 | $ | 1.56 | $ | 66,167 | $ | 1.59 |
(1) 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 |
|||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||||||||
Merger and acquisition expenses | $ | 1,086 | $ | 260 | $ | 826 | $ | 134 | $ | 38 | $ | 96 | |||||||||||||||||
Non-cash foreign currency gain related to lease liability | (749 | ) | (225 | ) | (524 | ) | (440 | ) | (132 | ) | (308 | ) | |||||||||||||||||
Non-cash write-off of certain Cash America merger related lease intangibles | 401 | 92 | 309 | 182 | 42 | 140 | |||||||||||||||||||||||
Consumer lending wind-down costs and asset impairments | — | — | — | 92 | 21 | 71 | |||||||||||||||||||||||
Total adjustments | $ | 738 | $ | 127 | $ | 611 | $ | (32 | ) | $ | (31 | ) | $ | (1 | ) | ||||||||||||||
Six Months Ended |
|||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||||||||
Merger and acquisition expenses | $ | 1,252 | $ | 310 | $ | 942 | $ | 202 | $ | 56 | $ | 146 | |||||||||||||||||
Non-cash foreign currency (gain) loss related to lease liability | (147 | ) | (44 | ) | (103 | ) | 3,944 | 1,183 | 2,761 | ||||||||||||||||||||
Non-cash write-off of certain Cash America merger related lease intangibles | 1,279 | 294 | 985 | 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 | |||||||||||||||||||||||
Total adjustments | $ | 2,384 | $ | 560 | $ | 1,824 | $ | 9,950 | $ | 2,574 | $ | 7,376 |
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 | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Net income | $ | 28,427 | $ | 25,873 | $ | 62,142 | $ | 58,791 | $ | 109,930 | $ | 147,706 | ||||||||||||||||||
Income taxes | 10,378 | 11,316 | 22,934 | 24,115 | 35,939 | 55,682 | ||||||||||||||||||||||||
Depreciation and amortization | 10,902 | 10,324 | 21,514 | 20,998 | 42,621 | 42,518 | ||||||||||||||||||||||||
Interest expense | 7,198 | 6,974 | 14,428 | 15,392 | 28,380 | 32,509 | ||||||||||||||||||||||||
Interest income | (119 | ) | (525 | ) | (277 | ) | (710 | ) | (1,107 | ) | (1,406 | ) | ||||||||||||||||||
EBITDA | 56,786 | 53,962 | 120,741 | 118,586 | 215,763 | 277,009 | ||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||
Merger and acquisition expenses | 1,086 | 134 | 1,252 | 202 | 2,366 | 1,263 | ||||||||||||||||||||||||
Non-cash foreign currency (gain) loss related to lease liability | (749 | ) | (440 | ) | (147 | ) | 3,944 | (2,842 | ) | 3,546 | ||||||||||||||||||||
Loss on extinguishment of debt | — | — | — | — | 11,737 | — | ||||||||||||||||||||||||
Non-cash write-off of certain Cash America merger related lease intangibles | 401 | 182 | 1,279 | 3,812 | 4,522 | 3,812 | ||||||||||||||||||||||||
Non-cash impairment of certain other assets | — | — | — | 1,900 | — | 1,900 | ||||||||||||||||||||||||
Consumer lending wind-down costs and asset impairments | — | 92 | — | 92 | 17 | 1,002 | ||||||||||||||||||||||||
Adjusted EBITDA | $ | 57,524 | $ | 53,930 | $ | 123,125 | $ | 128,536 | $ | 231,563 | $ | 288,532 | ||||||||||||||||||
Net debt ratio calculation: | ||||||||||||||||||||||||||||||
Total debt (outstanding principal) | $ | 663,000 | $ | 500,000 | ||||||||||||||||||||||||||
Less: cash and cash equivalents | (50,061 | ) | (70,956 | ) | ||||||||||||||||||||||||||
Net debt | $ | 612,939 | $ | 429,044 | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 231,563 | $ | 288,532 | ||||||||||||||||||||||||||
Net debt ratio (net debt divided by adjusted EBITDA) | 2.6 | :1 | 1.5 | :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 loan receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.
Free cash flow and adjusted free cash flow are commonly used by investors as 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 | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Cash flow from operating activities | $ | 44,575 | $ | 65,914 | $ | 113,749 | $ | 143,299 | $ | 192,714 | $ | 268,922 | ||||||||||||||||||
Cash flow from investing activities: | ||||||||||||||||||||||||||||||
Loan receivables, net (1) | (50,886 | ) | 126,000 | (8,492 | ) | 178,279 | (79,763 | ) | 193,111 | |||||||||||||||||||||
Purchases of furniture, fixtures, equipment and improvements | (11,534 | ) | (9,895 | ) | (21,025 | ) | (20,476 | ) | (38,092 | ) | (41,883 | ) | ||||||||||||||||||
Free cash flow | (17,845 | ) | 182,019 | 84,232 | 301,102 | 74,859 | 420,150 | |||||||||||||||||||||||
Merger and acquisition expenses paid, net of tax benefit | 826 | 96 | 942 | 146 | 1,787 | 892 | ||||||||||||||||||||||||
Adjusted free cash flow | $ | (17,019 | ) | $ | 182,115 | $ | 85,174 | $ | 301,248 | $ | 76,646 | $ | 421,042 |
(1) Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.
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 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.