Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — First Cash Financial Services — Merger or Acquisition (April 2016)
17 slides from Firstcash's merger presentation, Apr 28, 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 April 28, 2016 Exhibit 99.3
Slide 2: Forward looking statements
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,” “proj
Slide 3: Additional information and where to find it
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 Ca
Slide 4: Cash America 2016 Q1 results highlights
2016 Q1 earnings per share(3) was $0.42, compared to $0.27 for the prior-year first quarter Adjusted EBITDA(4) for 2016 Q1 totaled $33.3 million and net income was $10.6 million Total revenue in 2016 Q1 was $277 million, representing an increase of $5 million or 2%, compared to the prior-year first
Slide 5: Transaction overview and key terms
Expected in the second half of 2016 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% increase to FCFS and ~1
Slide 6: Significantly accretive transaction to both companies
Significantly accretive transaction to both companies driving: $279mm LTM 1Q’16 adjusted EBITDA(1) for the combined entity 2017E EPS(2) accretion of +10% to First Cash and +35% to Cash America $0.76 expected annual dividend per share represents ~50% increase for First Cash and ~100% increase for Cas
Slide 7: Natural partners with scale in complementary geographies and business lines
Natural partners with scale in complementary geographies and business lines Store count by location Pro forma 1,273 819 2,092 Latin America U.S. (Q1 2016 LTM figures; $ in millions) $656 $948 $1,604 Core revenue breakdown by location Latin America U.S. Pawn fees Consumer loans and credit services fe
Slide 8: Powerful financial combination
Powerful financial combination (1)FCFS’s adjusted EBITDA denotes earnings before depreciation, amortization, interest, provision or benefit for income taxes, and certain non-recurring charges. Non-GAAP measure; see appendix. Revenue $712 $1,035 $1,747 Adjusted EBITDA $129 (1) $115 (2) $279 (3) Net i
Slide 9: Estimated synergies and integration costs
Annual depreciation savings ~$15 million, primarily from technology platform synergies Annual operating cost synergies ~$35 million, primarily from technology, finance and other administrative synergies No contemplated store closings Estimated synergies and integration costs Estimated amounts Adjust
Slide 10: Enhanced scale with limited overlap
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 U.S. operations Central America operations 33 12 27 6 35 7 438 18 25 25 44 120 26 44 41 27 46 8 77 24 3 31 1 6 29 3 Top 10 stat
Slide 11: Ongoing growth strategy
Confident that full-service pawn model can be replicated in other markets Substantial infrastructure in place to accomplish new acquisitions and de novo expansion Significant runway for store openings and strategic acquisitions in Mexico Looking strategically for additional expansion acquisition opp
Slide 12: Significant franchise and shareholder value
Significant franchise and shareholder value (1)Considers ~$35mm of run-rate operating cost synergies. (2)Based on pro forma diluted weighted average shares outstanding of 48.6mm; considers ~$50mm of run-rate cost synergies. Creation of leading operator of retail pawn stores with over 2,000 stores in
Slide 13: Appendix
Appendix
Slide 14: Adjusted net income and adjusted earnings per share - First Cash
Adjusted net income and adjusted earnings per share First Cash Financial Services, Inc. Three months ended March 31, 2016 2015 ($ in thousands, except 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 restructuring e
Slide 15: Adjusted EBITDA - First Cash
Adjusted EBITDA First Cash Financial Services, Inc. (1)For the three months and trailing twelve months ended March 31, 2015, excludes $89k of depreciation and amortization and for the trailing twelve months ended March 31, 2016, excludes $404k of depreciation and amortization, which are included in
Slide 16: Adjusted earnings and adjusted earnings per share - Cash America
Adjusted earnings and adjusted earnings per share Cash America International, Inc. Three months ended March 31, 2016 2015 ($ 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 $0.27 Adjustments, net of tax: Lo
Slide 17: Adjusted EBITDA - Cash America
Adjusted EBITDA Cash America International, Inc. Three months ended March 31, Trailing twelve months ended March 31, ($ 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 de
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