Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Q4 2022 Earnings Presentation
30 slides from Firstcash's earnings presentation, Feb 13, 2023
Slide 1: Investor Presentation February 2023
P . 1F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS Investor Presentation February 2023 EXHIBIT 99.1
Slide 2: Forward-Looking Statements
P . 2F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS THIS QUARTERLY PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS ABOUT THE BUSINESS, FINANCIAL CONDITION AND PROSPECTS OF FIRSTCASH HOLDINGS, INC. AND ITS WHOLLY OWNED SUBSIDIARIES (TOGETHER, THE “COMPANY”). FORWARD-LOOKING STATEMENTS, AS
Slide 3: Leading operator of pawn stores and retail POS payment solutions
P . 3F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS WE ARE THE LEADING OPERATOR OF PAWN STORES IN THE U.S. AND LATIN AMERICA, AND WITH THE ACQUISITION OF AMERICAN FIRST FINANCE, ARE A LEADING PROVIDER OF RETAIL POINT-OF-SALE (“POS”) PAYMENT SOLUTIONS FOCUSED ON SERVING CREDIT-CONSTRAINED C
Slide 4: Pawn Operations
P . 4F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS PAWN OPERATIONS
Slide 5: Pawn Overview
P . 5F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSPAWN OVERVIEW PAWN LOANS ‒ NON-RECOURSE LOANS FULLY COLLATERALIZED WITH PERSONAL PROPERTY ‒ NON-RECOURSE LOANS ARE SAFE AND AFFORDABLE FOR THE CONSUMERS AND DON'T REQUIRE A CREDIT SCORE ‒ COLLATERAL HELD IN SECURE BACKROOM OF STORE ‒ RAPID
Slide 6: Pawn Business Has Historically Performed Well Across Cycles
P . 6F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS $547 $605 $647 $709 $773 $817 $806 $772 $733 $706 $733 $765 $786 $715 $676 $793 $0 $250 $500 $750 $1,000 $1,250 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Financial Crisis COVID $3.3 $3.9 $4.3 $4.8 $4.
Slide 7: Pawn Collateral and Inventory Composition
P . 7F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSPawn Collateral and Inventory Composition U.S. PAWN LATAM PAWN CONSOLIDATED PAWN 33% 59%70% 50%29%59% 48%11% 22% 54%14% 26% PAWN COLLATERAL PAWN COLLATERAL PAWN COLLATERAL INVENTORY INVENTORY INVENTORY As of 12/31/2022 JEWELRY ELECTRONICS
Slide 8: FirstCash Pawn Segment History
P . 8F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS 66 123 282 595 906 2,085 2,679 2,872 1988 1989 – 1996 1997 – 2001 2002 – 2005 2006 - 2010 2011 – 2013 2014 – 2016 2017 – 2019 2020 – 2022 FirstCash Pawn Segment History Primary long-term business plan is to continue growing pawn revenues
Slide 9: ESG: Sustainability is Core to FirstCash
P . 9F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS PAWNSHOPS PIONEERED CIRCULAR ECONOMY ‒ NEIGHBORHOOD-BASED STORES CONTRIBUTE TO THE MODERN “CIRCULAR ECONOMY” EXTENDING LIFE CYCLE OF CONSUMER PRODUCTS – INVENTORY IS PRE-OWNED MERCHANDISE WHICH IS SOURCED AND THEN RECYCLED WITHIN EACH STO
Slide 10: ESG: Commitment to Social Responsibility
P . 1 0F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS EMPLOYEE EMPOWERMENT ‒ EMPLOYEE-TRAINING PROGRAMS THAT PROMOTE CUSTOMER SERVICE AND PROFESSIONALISM ‒ SPECIALIZED SKILL TRAINING PROGRAMS IN LENDING PRACTICES, MERCHANDISE VALUATION AND REGULATORY COMPLIANCE ‒ PROFIT SHARING PROGRAMS WH
Slide 11: Domestic Pawn Segment: Over 1,100 U.S. Locations
P . 1 1F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS OVER 1,100 U.S. LOCATIONS IN 25 STATES AND THE DISTRICT OF COLUMBIA o OPERATIONS FOCUSED IN STATES WITH: – GROWING POPULATIONS – FAVORABLE DEMOGRAPHICS – STABLE REGULATIONS o SIGNIFICANT UNDERBANKED DEMOGRAPHICS o CONTINUED OPPORTUNITIE
Slide 12: U.S. Pawn Segment — Over 1,100 Locations
P . 1 2F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSU.S. Pawn Segment — Over 1,100 Locations 1,101 Retail Pawn Store Locations Across 25 U.S. States and the District of Columbia NV AK WA LA UT NE AZ CO TX MO OK IL IN OH GAAL FL KY TN NC VA WY SC 30 27 27 457 6 1 6 25 1 17 25 29 23 22 62 5
Slide 13: Q4 2022 U.S. Pawn Segment Highlights
F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS P . 1 3 $304 $339 $177 $194 $0 $100 $200 $300 $400 $500 Q4 2021 Q4 2022 Q4 2021 Q4 2022 REVENUE NET REVENUE RETAIL PAWN FEES SCRAP Q4 2022 U.S. Pawn Segment Highlights — $ in Millions +12% +9% $269 $220 $256 $282 $0 $100 $200 $300 $400 Q 4 20
Slide 14: LatAm Pawn Segment: Over 1,770 Locations
P . 1 4F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS OVER 1,770 LATIN AMERICA LOCATIONS IN FOUR COUNTRIES o LATIN AMERICA CONTINUES TO BE THE SIGNIFICANT STORE GROWTH VEHICLE o SUBSTANTIAL INFRASTRUCTURE AND CASH FLOWS TO ACCOMPLISH NEW ACQUISITIONS AND DE NOVO EXPANSION o RUNWAY FOR CONT
Slide 15: FirstCash LatAm Growth Store Count and Net Revenue
P . 1 5F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSFirstCash LatAm Growth Store Count and Net Revenue — $ in Millions 737 955 999 1,379 1,623 1,702 1,744 1,771 0 600 1,200 1,800 2,400 2015 2016 2017 2018 2019 2020 2021 2022 STORE COUNT NET REVENUE GROWTH $196 $227 $255 $289 $343 $288 $31
Slide 16: Q4 2022 LatAm Pawn Segment Highlights
F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS P . 1 6 $166 $200 $86 $99 $0 $50 $100 $150 $200 $250 Q4 2021 Q4 2022 Q4 2021 Q4 2022 REVENUE NET REVENUE RETAIL PAWN FEES SCRAP Q4 2022 LatAm Pawn Segment Highlights — All in U.S $ Millions , Except Total Pawn Receivables Shown in Peso $ Billi
Slide 17: Retail POS Payment Solutions Operations
P . 1 7F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSRETAIL POS PAYMENT SOLUTIONS OPERATIONS
Slide 18: Retail POS Payment Solution Overview
P . 1 8F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS CUSTOMERS TAKE ITEMS HOME SAME DAY OR ARRANGE FOR DELIVERY TAKE ITEMS HOME — SAME DAY! AUTO-PAY MANAGED ONLINE BY THE CUSTOMER AUTO-PAYMENTS — PAY AS YOU GO PAYMENT SOLUTIONS FOR ALL 50 STATES LEASE-TO-OWN BANK LOANSRETAIL INSTALLMENT A
Slide 19: Expanded Product Offerings Enhance Core Pawn Business
P . 1 9F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSExpanded Product Offerings Enhance FirstCash’s Core Pawn Business SIGNIFICANTLY DIVERSIFYING FIRSTCASH’S BUSINESS AND PROVIDING A NEW SOURCE OF REVENUE GROWTH 3 PROVIDES PRODUCT AND REVENUE DIVERSIFICATION UTILIZING TECHNOLOGY DRIVEN PAY
Slide 20: Q4 2022 AFF POS Payment Solutions Segment Highlights
F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS P . 2 0 CONTINUED GROWTH – AFF CONTINUED TO GROW MARKET SHARE IN THE RETAIL POS PAYMENT SOLUTIONS SPACE WITH A 41% INCREASE IN DOOR COUNT REVENUES ‒ SEGMENT REVENUES FROM LTO FEES AND CONSUMER FINANCE RECEIVABLES FOR THE FOURTH QUARTER OF 2022
Slide 21: Financial Highlights
P . 2 1F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS FINANCIAL HIGHLIGHTS
Slide 22: Consolidated Operating Results
P . 2 2F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS $232 $222 $223 $469 $222 $292 $102 $313 $223 $293 $114 $315 $0 $100 $200 $300 $400 $500 $600 2019 2020 2021 2022 OPER. CASH FLOW FREE CASH FLOW ADJ. FREE CASH FLOW Consolidated Operating Results — $ in Millions, Except per Share Amounts
Slide 23: Cash Dividends & Share Repurchases
P . 2 3F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS As of 12/31/2022 Cash Dividends & Share Repurchases $0.125 $0.19 $0.22 $0.25 $0.27 $0.27 $0.30 $0.125 $0.19 $0.22 $0.25 $0.27 $0.30 $0.30 $0.125 $0.19 $0.22 $0.25 $0.27 $0.30 $0.33 $0.19 $0.20 $0.25 $0.27 $0.27 $0.30 $0.33 $0.57 $0.77 $
Slide 24: Growth Investments & Shareholder Payouts
P . 2 4F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS As of 12/31/2022 Growth Investments & Shareholder Payouts — Since 2009 — $ in Millions $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 CUMULATIVE TOTAL $3.3 BILLION $726 $1,329 $1,213 STOCK REPURCHASES & DIVIDENDS ‒ 16 MILLION SHARES
Slide 25: Pawn Focused Business Model
P . 2 5F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS PAWN FOCUSED BUSINESS MODEL ‒ SMALL SECURED PAWN LOANS TO UNBANKED AND UNDERBANKED CONSUMERS WITH LIMITED OR NO ACCESS TO TRADITIONAL CREDIT PRODUCTS ‒ DIVERSIFIED LENDING AND RETAIL MODEL IS A SIGNIFICANT COMPETITIVE ADVANTAGE WITH STR
Slide 26: Appendix Section
P . 2 6F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS APPENDIX SECTION
Slide 27: Non-GAAP Financial Information
P . 2 7F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSNon-GAAP Financial Information Please reference the Form 10-K filed on 02/06/2023 for further explanation THE COMPANY USES CERTAIN FINANCIAL CALCULATIONS SUCH AS ADJUSTED NET INCOME, ADJUSTED DILUTED EARNINGS PER SHARE, EBITDA, ADJUSTED
Slide 28: Reconciliations of Non-GAAP Financial Measures to GAAP
P . 2 8F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS Y/E 2019 Y/E 2020 Y/E 2021 Y/E2022 DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE Net Income and Diluted Earnings per Share, as Reported $164,618 $3.81 $106,579 $2.56 $124,909 $3.04 $253,495 $5.36 ADJUSTMENTS, N
Slide 29: Reconciliations of Non-GAAP Financial Measures to GAAP Financial Measures
P . 2 9F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSReconciliations of Non-GAAP Financial Measures to GAAP Financial Measures Y/E Y/E Y/E Y/E 2019 2020 2021 2022 Net Income $164,618 $106,579 $124,909 $253,495 Income Taxes 59,993 37,120 41,593 70,138 Depreciation and Amortization 41,904 42
Slide 30: Get in Touch With Us
P . 3 0F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS GAR JACKSON GLOBAL IR GROUP GAR@GLOBALIRGROUP.COM 817 886 6998 GET IN TOUCH WITH US INVESTOR RELATIONS INVESTORRELATIONS@FIRSTCASH.COM INVESTORS.FIRSTCASH.COM 817 258 2650 NASDAQ: FCFS