Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — First Cash Financial Services — Investor Presentation (February 2006)
30 slides from Firstcash's investor presentation, Feb 28, 2006
Slide 1: Investor Presentation - February/March 2006
OO ral | FIRST CASH! INVESTOR PRESENTATION -FEBRUARY/MARCH 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements included in this presentation which are not historical in nature, including statements regarding the Company's and/or managements strategies, beliefs, expectations, plans for new stores, projections of earnings and revenues, expected effect of regulatory pron
Slide 3: First Cash Overview
First Cash Overview * Leading provider of diversified specialty consumer finance products * Superior earnings performance and financial position * Significant future growth through store expansion : T aa Te} DE EMPE CAS? JOYERIA
Slide 4: Company History
Company History 1988 Founded — 3 pawn stores in Texas Early 90’s Goes public; multi-state pawn store roll-up acquisitions Payday lending acquisitions; introduction of payday product in pawn stores First pawn stores opened in Mexico 2001 to present Expansion through new store openings: US. payday & M
Slide 5: Store Counts
Store Counts Payday Advance Stores 908 Mexico Pawn Stores U.S. Pawn Stores 284 235 2001 2002 2003 2004 2005 FIRST CASH FINANCIAL SERVICES
Slide 6: Geographic Markets & Product Offerings
Geographic Markets & Product Offerings As of December 31, 2005 Locations in: + 11 states in the Us. + 7 states in Pawn stores Pawn stores with payday ladvancefcredit services Y Payday advance/credit services stores FIRST CASH FINANCIAL SERVICES
Slide 7: Revenue Mix - 2005
Revenue Mix - 2005 Millions $120 $100 $80 Revenues $60 @ Gross Profit $40 $20 $0 FIRST CASH FINANCIAL SERVICES Pawn Merchandise Paven SenviceFees Payday Advance CheckCashing & Sales Gredit Services Other
Slide 8: Pawn Loans
Pawn Loans * Short-term loan secured by pledged personal property - No credit check - No bank account required * Regulations vary by state - typically provide for: — 30 day term - 10% to 20% monthly service fee FIRST CASH FINANCIAL SERVICES
Slide 9: Pawn Demographics
Sc Pawn Demographics Loan Growth * Many un-banked or — under-banked customers BUS Fam * Both in the U.S. and... * In Mexico, where: — 88% of retail transactions are in cash — Anestimated 80% of the population is un-banked FIRST CASH FINANCIAL SERVICES
Slide 10: Pawn-Related Retail
Pawn-Related Retail Composition of Retail Inventories + Retail inventories are primarily acquired via forfeited pawn loan collateral dezebs Electronics + Gold jewelry represents 53% of the retail oe inventory Tools gn | Retail Metrics for 2005 * Total merchandise margins 40% + Retail margins (exclud
Slide 11: Payday Advance Product
Payday Advance Product + Typical advance amount: $100 to $500 * Term: 7 to 31 days * Typical service charge per advance: 15% + Proof of employment and bank account required — but no credit check + Advance secured by personal check held until due date
Slide 12: Payday Advance Regulatory Landscape
Payday Advance Regulatory Landscape FDIC regulations affect only payday lending in other states where “bank moder is used First Cash does net uliize the bank model n any state and is therefore not subject fo FDIC regulations a.¢| States with industry favorable payda advance legislation [Ey Sites wit
Slide 13: Credit Services Model Utilized in Texas
TO Credit Services Model Utilized in Texas + In Texas, First Cash has elected to operate as a Credit Services Organization (“CSO”) + AsacCsO, First Cash provides customers access to a short-term loan funded by an independent consumer lending company — Customer pays a fee to CSO for its services: * p
Slide 14: Superior Performance & Financial Position
Superior Performance & Financial Position * Operating Results Revenues milion — Industry leading $250 performance metrics $200 — Consistent growth — Increasing margins 50 + Financial Position $100 — Debt-free $50 — Strong cash flows 2000 2001 2002 2003 2004 2005
Slide 15: 2005 - Fourth Quarter Highlights
2005 - Fourth Quarter Highlights + 20% consecutive quarter of double-digit EPS growth * Q4 diluted EPS up 31% over prior year * Fiscal 2005 performance — Revenues of $208 million — Diluted EPS of $0.76", up 25% — Net income of $25 million, up 23% * Reflects wo-forone stock split effective Febmary 22
Slide 16: Earnings Per Share Growth
ma4 a3 waz wai Earnings Per Share Growth 2001 2002 2003 2004 2005 Reflects two-for-one stock split effective February 22, 2006 FIRST CASH FINANCIAL SERVICES
Slide 17: Consistency of Growth & Earnings
bist Su ust Bist Su S130 $120 Su Su Consistency of Growth & Earnings Trailing 12 Months Diluted Eamings per Share Sq Ob Mar tn Sep Dee Mer np Des Mar dn Sep Dee Wer din Sep Dos ite eee eee eee ew Reflects yo-for-one stock split effective Febmary 22, 2006 Forbes) Forbes 200 Best Small Companies 4 str
Slide 18: 2006 Growth Expectations
2006 Growth Expectations + Annual EPS growth in excess of 20% recorded for the past five years * 60 to 70 new store openings projected for 2006 + 2006 earnings per share forecast of $0.91 to $0.93* — Midpoint represents 21% increase over 2005 EPS *- Reflects two-for-one stock spit effective February
Slide 19: Increasing Market Visibility & Liquidity
Increasing Market Visibility & Liquidity Two-for-one stock split effective February 22, 2006 Market Cap ia 2000 2001 2002 2003 2004 2005 022306 1) waspag’ > 5 foe -— FIRST CASH FINANCIAL SERVICES
Slide 20: Balance Sheet
Balance Sheet £ DAssets & = Liabilities $7 $117 $144 mEquity 2001 2002 2003 2004 2005 FIRST CASH FINANCIAL SERVICES
Slide 21: Net Cash Position
Net Cash Position Millions $50 $40 $30 Cash $20 Oi Interest "0 interes' Bearing 0 Debt $20 -$30 -$40 -$50 2000 =2001~=2002,_— 2003 ~— 2004 = 2005 FIRST CASH FINANCIAL SERVICES
Slide 22: Utilization of Cash Flows
Utilization of Cash Flows + All store openings funded from current cash flows — Loan growth at new & existing stores - Capital expenditures for new stores — Start-up costs for new stores FIRST CASH FINANCIAL SERVICES
Slide 23: Growth Strategy
wth Strategy + New store openings in multiple markets — United States — Mexico + Diversified product line — Pawn loans & related retail — Payday advances — Credit services
Slide 24: New Store Openings
New Store Openings 60 is 4 52 50 \ 0 38 ew 30 Stores 6 18 10 0 2001 2002 2003 2004 2005 4th Qtr 1 14 13 12 16 3rd Qtr 3 10 12 13 5 2nd Qtr 3 6 1 13 10 ist Qtr 4 8 “1 14 15 FIRST CASH FINANCIAL SERVICES
Slide 25: New Store Financial Model
New Store Financial Model Cap Ex - Leasehold improvements - Computer & security equipment $80,000 to $150,000 Working Capital (first year) - Operating cash - Loan funding - Inventory (pawn only) $80,000 to $150,000 Start-up Losses - Pre-opening - First six months of operation $40,000 to $60,000 Tota
Slide 26: Mexico Expansion Markets
Mexico Expansion Markets Ba ee Gen ee el ere are Um Poort ee FIRST CASH FINANCIAL SERVICES
Slide 27: New Stores in Mexico
New Stores in Mexico
Slide 28: U.S. Payday Expansion
U.S. Payday Expansion * Continued growth in key Texas markets: — Dallas/Fort Worth — Houston — San Antonio/Austin — Many other mid-sized markets * First stores in Michigan projected in Q2 of 2006 + Monitoring opportunities for expansion in other states with favorable payday laws FIRST CASH FINANCIAL
Slide 29: First Cash Summary
First Cash Summary + Industry leader in a growth sector - Strong demand for specialty consumer finance products - Multiple products: pawn and payday advance * Superior financial metrics - 20 consecutive quarters (five years) of double-digit EPS growth — Strong cash flows; no debt * Well-defined expa
Slide 30: First Cash Logo - February/March 2006
FIRST CASH FINANCIAL SERVICES [LOGO OF FIRST CASH] INVESTOR PRESENTATION - FEBRUARY/MARCH 2006 Safe Harbor Statement • Certain statements included in this presentation which are not historical in nature, including statements regarding the Company’s and/or management’s strategies, beliefs, expectatio
First Cash Financial Services — Investor Presentation (February 2006) on 6ix