Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — First Cash Financial Services — Merger or Acquisition (June 2016)
19 slides from Firstcash's merger presentation, Jun 14, 2016
Slide 1: Merger of Equals Creating a leading operator of retail pawn stores
Merger of Equals Creating a leading operator of retail pawn stores in the United States and Latin America June 14, 2016 EXHIBIT 99.1
Slide 2: Forward looking statements
1 Forward looking statements This presentation contains “forward-looking statements” (as defined in the Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of First Cash and Cash America. Words such as “anticipate,” “expect,” “pr
Slide 3: Additional information and where to find it
2 Additional information and where to find it This presentation is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed transaction between First Cash and
Slide 4: Increased D&A savings and updated synergy estimates
3 First Cash and Cash America have identified additional annual depreciation and amortization (“D&A”) savings of ~$5mm, increasing expected annual D&A savings to ~$20mm from ~$15mm as disclosed at announcement on 4/28/16 − Additional D&A savings are related to updated estimates of values and expec
Slide 5: Transaction terms and governance
4 Expected in the second half of 2016 Pending approvals: Hart-Scott-Rodino Act, FCFS shareholders, CSH shareholders Merged company will be renamed FirstCash, Inc. Headquartered at existing CSH headquarters in Fort Worth, Texas Expected annual dividend per share of $0.76 represents ~50% inc
Slide 6: Significantly accretive transaction
5 Significantly accretive transaction to both companies driving: − $289mm LTM 1Q’16 adjusted pro forma EBITDA(1) for the combined entity − 2017E EPS(2) accretion of +20% to First Cash and +50% to Cash America (this is in addition to expected standalone 2017 earnings growth for both companies) − $0
Slide 7: Natural partners with scale in complementary geographies and business lines
6 45%55% 100% 78% 22% Natural partners with scale in complementary geographies and business lines Store count by geographic region Pro forma 337 936 819 1,156 (55%) 936 (45%) 1,273 819 2,092Latin America U.S. (Q1 2016 LTM figures; $ in millions) $656 $948 $1,604 Core revenue breakdown by geographic
Slide 8: Powerful financial combination
7 Powerful financial combination (1) Does not include purchase accounting adjustments other than write-off of capitalized IT development costs and other depreciation adjustments. (2) FCFS’s adjusted EBITDA denotes earnings before depreciation, amortization, interest, provision or benefit for income
Slide 9: Estimated synergies and integration costs
8 Annual depreciation and amortization savings ~$20 million, primarily from technology platform synergies Annual operating cost synergies ~$45 million, primarily from technology, finance and other administrative synergies No contemplated store closings Estimated synergies and integration costs
Slide 10: Enhanced scale with limited overlap
9 Enhanced scale with limited overlap Combined entity will have over 2,000 stores − 1,156 stores across 26 states in the U.S. with 936 stores in Latin America Mexico operations – all statesU.S. operations – 26 states Central America operations 33 12 27 6 35 7 438 18 25 25 44 120 26 44 41 27 468 77
Slide 11: Ongoing growth strategy
10 Existing Latin American growth profile remains in place − First Cash reported Q1 2016 revenue growth of 28% on a constant currency basis Substantial infrastructure and cash flows to accomplish new acquisitions and de novo expansion Significant runway for store openings and strategic acquisi
Slide 12: Expected combined company long term credit facility
11 Expected combined company long term credit facility Pro forma balance sheet and cash flows of combined company will enhance credit profile − ~$2.0bn in assets − ~$1.3bn in equity − Debt to equity ratio less than 0.5 to 1 First Cash and Cash America have engaged Wells Fargo to arrange a new un
Slide 13: Limited exposure to new CFPB rules
12 Target revenue mix (next 3-5 years) Limited exposure to new CFPB rules On June 2, 2016, the U.S. Consumer Financial Protection Bureau (CFPB) released its proposed rules that affect payday loans, auto title loans, deposit advance products and certain high-cost installment and open-end loans − Th
Slide 14: Significant franchise and shareholder value
13 Significant franchise and shareholder value (1) Considers ~$45mm of run-rate operating cost synergies. See appendix. (2) Based on pro forma diluted weighted average shares outstanding of 48.6mm; considers ~$65mm of run-rate cost synergies. Creation of leading operator of retail pawn stores with o
Slide 15: Appendix
Appendix 14
Slide 16: Adjusted net income and adjusted earnings per share - First Cash
15 Adjusted net income and adjusted earnings per share First Cash Financial Services, Inc. Three months ended March 31, 2016 2015 ($ in thousands, exc pt per share data) $ Per diluted share $ Per diluted share Net income $13,174 $0.47 $16,788 $0.59 Adjustments, net of tax: Non-recurring restructurin
Slide 17: Adjusted EBITDA - First Cash
16 Adjusted EBITDA First Cash Financial Services, Inc. Three months ended March 31, Trailing twelve months ended March 31, ($ in thousands) 2016 2016 Net income $13,174 $57,096 Provision for income taxes 6,487 25,857 Depreciation and amortization(1) 4,937 17,925 Interest expense 4,460 17,327 Interes
Slide 18: Adjusted earnings and adjusted earnings per share - Cash America
17 Adjusted earnings and adjusted earnings per share Cash America International, Inc. Three months ended March 31, 2016 2015 ($ in thousands, except per share data) $ Per diluted share $ Per diluted share Net income and diluted net income per share $10,633 $0.42 $7,845 $0.27 Adjustments, net of tax:
Slide 19: Adjusted EBITDA - Cash America
18 Adjusted EBITDA Cash America International, Inc. Three months ended March 31, Trailing twelve months ended March 31, ($ in thousands) 2016 2016 Net income $10,633 $30,354 Provision for income taxes 5,322 15,888 Gain on disposition of equity securities (117) (1,679) Loss on early extinguishment of
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