Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Investor Presentation (March 2022)
36 slides from Firstcash's investor presentation, Mar 8, 2022
Slide 1: Investor Presentation — March 2022
INVESTOR PRESENTATION — MARCH 2022 NASDAQ: FCFS FORT WORTH, TEXAS USA 1 — FIRSTCASH HOLDINGS INC. EXHIBIT 99.1
Slide 2: Forward-Looking Statements
— FIRSTCASH HOLDINGS INC. 2 THIS 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 THAT TERM IS DEFINED IN THE PRIVATE SECURITI
Slide 3: FirstCash Overview
FIRSTCASH OVERVIEW NASDAQ: FCFS 3 — FIRSTCASH HOLDINGS INC. RENO, NEVADA USA
Slide 4: Leading operator of pawn stores in the U.S. and Latin America
— FIRSTCASH HOLDINGS INC. 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 CONSUMERS 4 U.S. PAWN SEGMENT CO
Slide 5: FirstCash's Journey
— FIRSTCASH HOLDINGS INC. 5 1988 — 2016 LOOKING AHEADTODAY2016 — 2021 FirstCash’s Journey MERGER OF FIRST CASH AND CASH AMERICA TO CREATE THE LARGEST OPERATOR OF RETAIL PAWN STORES IN THE U.S. AND LATAM MERGER ADDED OVER 800 U.S. LOCATIONS SINCE MERGER, ADDED OVER 1,000 ADDITIONAL STORES ACROSS
Slide 6: Pawn Operations
PAWN OPERATIONS NASDAQ: FCFS 6 — FIRSTCASH HOLDINGS INC.
Slide 7: What Are Pawn Stores?
— FIRSTCASH HOLDINGS INC. What Are Pawn Stores? PAWN STORES ARE NEIGHBORHOOD-BASED RETAIL LOCATIONS THAT BUY AND SELL PRE- OWNED CONSUMER PRODUCTS SUCH AS JEWELRY, ELECTRONICS, TOOLS, APPLIANCES, SPORTING GOODS AND MUSICAL INSTRUMENTS PAWN STORES ALSO PROVIDE A QUICK AND CONVENIENT SOURCE OF SMALL,
Slide 8: Pawn Loan Overview
— FIRSTCASH HOLDINGS INC. 8 — NON-RECOURSE LOANS FULLY COLLATERALIZED WITH PERSONAL PROPERTY Pawn Loan Overview $77 $222 $0 $50 $100 $150 $200 $250 LATAM U.S. TYPICALLY 30-TO-60-DAY TERM AVERAGE LOAN SIZE: As of 12/31/2021 Pawn Loans are Small and Affordable with a Short Duration DESIGNATED ES
Slide 9: Pawn Collateral and Inventory Composition
— FIRSTCASH HOLDINGS INC. 9 JEWELRY ELECTRONICS TOOLS SPORTING GOODS MUSICAL INSTRUMENTS OTHER PAWN COLLATERAL INVENTORY U.S. SEGMENT PAWN COLLATERAL INVENTORY LATAM SEGMENT PAWN COLLATERAL INVENTORY CONSOLIDATED 66% 33% 57% 14% 23%49% 55% 32% 49% 14% 23%50% TTM results as of 12/31/2021 Pawn Collate
Slide 10: Store growth history and long-term business plan
— FIRSTCASH HOLDINGS INC. 66 123 282 595 906 2,085 2,473 2,748 2,825 1988 1989 - 1996 1997 - 2001 2002 - 2005 2006 - 2010 2011 - 2013 2014 - 2016 2017 - 2019 2020 2021 10 FIRST ACQUIRED STORE SUITLAND, MD USA FIRST STORE 1988 HALTOM CITY, TX USA 100+ STORES IN MEXICO OVER 260 DE NOVO STORES OPENINGS
Slide 11: ESG: Sustainability is Core to FirstCash
— FIRSTCASH HOLDINGS INC. 11 — REPLACING TAKE MAKE DISPOSE WITH BUY USE RETURN NEIGHBORHOOD-BASED STORES CONTRIBUTE TO THE MODERN “CIRCULAR ECONOMY” PAWNSHOPS PIONEERED CIRCULAR ECONOMY INVENTORY IS PRE-OWNED MERCHANDISE WHICH IS SOURCED AND THEN RECYCLED WITHIN EACH STORE’S GEOGRAPHIC NEIGHBO
Slide 12: ESG: Commitment to Social Responsibility
— FIRSTCASH HOLDINGS INC. 12 CUSTOMER AND EMPLOYEE PROTECTIONS — STRICT COVID-19 SAFETY PROTOCOLS — ROBUST CONSUMER AND CORPORATE COMPLIANCE PROGRAMS — PRIVACY AND DATA PROTECTION POLICIES EMPLOYEE EMPOWERMENT — EMPLOYEE-TRAINING PROGRAMS THAT PROMOTE CUSTOMER SERVICE AND PROFESSIONALISM — SPECIALIZ
Slide 13: Domestic Pawn Segment
— FIRSTCASH HOLDINGS INC. Domestic Pawn Segment 13 SEATTLE, WASHINGTON USA OVER 1,000 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 O
Slide 14: U.S. Pawn Segment — Over 1,000 Locations
— FIRSTCASH HOLDINGS INC. CONTINUED ATTRACTIVE ACQUISITION OPPORTUNITIES — 46 PAWN STORES ACQUIRED IN 2021 — 28 STORES IN TX, 12 IN FL, 3 IN LA, 2 IN MS AND 1 IN AL 14 U.S. Pawn Segment — Over 1,000 Locations NV AK WA LA UT NE AZ CO TX MO OK IL IN OH GAAL FL KY TN NC VA WY SC 31 27 27 447 6 1 6 26 1
Slide 15: Lending Trends – United States
— FIRSTCASH HOLDINGS INC. U.S. TOTAL PAWN RECEIVABLES — ($ IN MILLIONS) 15 Lending Trends – United States U.S. SAME-STORE PAWN RECEIVABLES AND LOAN ORIGINATIONS — COMPARED TO TWO YEARS AGO $269 $220 $256 $255 $0 $50 $100 $150 $200 $250 $300 Q 1 Q 2 Q 3 Q 4 20 19 Q 1 Q 2 Q 3 Q 4 20 20 Q 1 Q 2 Q 3 Q 4
Slide 16: Q4 2021 U.S. Pawn Segment Results
— FIRSTCASH HOLDINGS INC. 16 Q4 2021 U.S. Pawn Segment Results $ IN THOUSANDS Retail Sales Margin and Segment Profit Margin Return on Earning Assets Q4 2021 U.S. Pawn Segment Highlights $246 $304 $149 $177 $51 $73 $0 $50 $100 $150 $200 $250 $300 $350 $400 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2
Slide 17: Latin America Pawn Segment
— FIRSTCASH HOLDINGS INC. Latin America Pawn Segment — Mexico, Guatemala, Colombia and El Salvador 17 OVER 1,700 LATIN AMERICA LOCATIONS IN FOUR COUNTRIES o LATIN AMERICA CONTINUES TO BE THE PRIMARY STORE GROWTH VEHICLE o SUBSTANTIAL INFRASTRUCTURE AND CASH FLOWS TO ACCOMPLISH NEW ACQUISITIONS AND D
Slide 18: FirstCash LatAm Growth — Net Revenue and Store Count
— FIRSTCASH HOLDINGS INC. $196 $227 $255 $289 $343 $288 $319 $196 $263 $299 $343 $407 $369 $396 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2015 2016 2017 2018 2019 2020 2021 Net Revenue, USD $ CC Net Revenue, 2015 MXN @ 15.85 18 FirstCash LatAm Growth — Net Revenue and Store Count NET REVENUE GR
Slide 19: Lending Trends – Latin America
— FIRSTCASH HOLDINGS INC. 91% 68% 85% 90% 89% 97% 89% 90% 86% 96% 73% 81% 97% 92% 99% 95% 103% 96% 0% 20% 40% 60% 80% 100% 120% 03 /0 1/ 20 3/ 15 3/ 29 4/ 12 4/ 26 5/ 10 5/ 24 6/ 7 6/ 21 7/ 5 7/ 19 8/ 2 8/ 16 8/ 30 9/ 13 9/ 27 10 /1 1 10 /2 5 11 /8 11 /2 2 12 /6 12 /2 0 1/ 3 1/ 17 1/ 31 2/ 14 2/ 28
Slide 20: Q4 2021 LatAm Pawn Segment Results
— FIRSTCASH HOLDINGS INC. 20 Q4 2021 LatAm Pawn Segment Results $ IN THOUSANDS Retail Sales Margin and Segment Profit Margin Return on Earning Assets Q4 2021 LatAm Pawn Segment Highlights $146 $166 $77 $86 $30 $36 $0 $25 $50 $75 $100 $125 $150 $175 $200 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 202
Slide 21: Retail POS Payment Solutions Operations
RETAIL POS PAYMENT SOLUTIONS OPERATIONS NASDAQ: FCFS 21 — FIRSTCASH HOLDINGS INC.
Slide 22: Retail POS Payment Solutions
— FIRSTCASH HOLDINGS INC. Retail POS Payment Solutions RETAIL POS PAYMENT SOLUTIONS BUSINESS LINE CONSISTS SOLELY OF THE OPERATIONS OF AFF, WHICH FOCUSES ON LTO PRODUCTS AND FACILITATING OTHER RETAIL FINANCING PAYMENT OPTIONS ACROSS A LARGE NETWORK OF TRADITIONAL AND E-COMMERCE MERCHANT PARTNERS LA
Slide 23: About American First Finance
— FIRSTCASH HOLDINGS INC. 23 ABOUT AMERICAN FIRST FINANCE — FOURTH LARGEST PROVIDER OF POS PAYMENT SOLUTIONS TO UNDERSERVED RETAIL CUSTOMERS IN THE U.S. 6,500+ NATIONWIDE NETWORK OF MERCHANT PARTNER STORES & ECOMMERCE PLATFORMS 50 STATE COVERAGE — In Addition to D.C. and Puerto Rico 3 PRODUCTS OFFER
Slide 24: Expanded Product Offerings Enhance Core Pawn Business
— FIRSTCASH HOLDINGS INC. 24 Expanded Product Offerings Enhance FirstCash’s Core Pawn Business ADDING NEW POS PAYMENT OPTIONS INCLUDING LTO AND AFF ORIGINATED RETAIL FINANCING TO EXISTING PAWN RETAIL PAYMENT OPTIONS POTENTIAL FOR AFF CUSTOMERS TO RETURN LEASED MERCHANDISE AT FIRSTCASH PAWN LOCATIONS
Slide 25: Accelerating Digitization
— FIRSTCASH HOLDINGS INC. ENHANCED TECHNOLOGY INFRASTRUCTURE AND SKILLSET TO MODERNIZE FIRSTCASH BUSINESS AND ACCELERATE OMNICHANNEL STRATEGY 25 Accelerating Digitization AFF’S INTEGRATED POS PAYMENTS TECHNOLOGY IS EASILY INCORPORATED INTO ITS MERCHANT PARTNERS’ SYSTEMS COMPELLING OPPORTUNITIES INCL
Slide 26: Operating Trends
— FIRSTCASH HOLDINGS INC. 26 Operating Trends AFF’S FULL FOURTH QUARTER RESULTS, INCLUDING THE PERIOD PRIOR TO THE ACQUISITION, SAW STRONG LEASE-TO-OWN AND RETAIL FINANCE TRANSACTION VOLUMES WITH THE CORRESPONDING REVENUE GROWTH DRIVEN BY THE INCREASE IN RECEIVABLE BALANCES. REPORTED GAAP EARNINGS F
Slide 27: Financial Highlights
FINANCIAL HIGHLIGHTS NASDAQ: FCFS 27 — FIRSTCASH HOLDINGS INC. EVERETT, WASHINGTON USA
Slide 28: Consolidated Operating Results
— FIRSTCASH HOLDINGS INC. 28 Consolidated Operating Results $ in Millions, Except per Share Amounts $165 $107 $125 $168 $125 $161 $0 $50 $100 $150 $200 2019 2020 2021 Net Income1 Net Income Adjusted Net Income $3.81 $2.56 $3.04 $3.89 $3.01 $3.94 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2019 2020 2021 Ear
Slide 29: Cash Dividends & Share Repurchases
— FIRSTCASH HOLDINGS INC. 29 Cash Dividends & Share Repurchases CASH DIVIDEND HISTORY ACTIVE SHARE REPURCHASE PROGRAM $0.125 $0.19 $0.22 $0.25 $0.27 $0.27 $0.125 $0.19 $0.22 $0.25 $0.27 $0.30 $0.125 $0.19 $0.22 $0.25 $0.27 $0.30 $0.19 $0.20 $0.25 $0.27 $0.27 $0.30 $0.57 $0.77 $0.91 $1.02 $1.08 $1.17
Slide 30: Growth Investments & Shareholder Payouts
— FIRSTCASH HOLDINGS INC. 30 Growth Investments & Shareholder Payouts The Last 10+ Years (since 2009) — $ in Millions $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 CUMULATIVE TOTAL $2.4 BILLION $608 $1,112 $679 STOCK REPURCHASES & DIVIDENDS ‒ 13,589,607 SPLIT-ADJUSTED SHARES REP
Slide 31: Investment Recap
— FIRSTCASH HOLDINGS INC. 31 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 STRONG MARGINS AND CASH FLOWS ‒ RESILI
Slide 32: Appendix
APPENDIX SECTION NASDAQ: FCFS 32 — FIRSTCASH HOLDINGS INC. TECAMACHALCO, PUEBLA MEXICO
Slide 33: EBITDA and Adjusted Net Income Reconciliation
— FIRSTCASH HOLDINGS INC. 33 YEAR ENDED DECEMBER 31, 2019 2020 2021 Net Income $164,618 $106,579 $124,909 Income Taxes 59,993 37,120 41,593 Depreciation and Amortization 41,904 42,105 45,906 Interest Expense 34,035 29,344 32,386 Interest Expense Income (1,055) (1,540) (696) EBITDA $299,495 $213,608
Slide 34: Non-GAAP Financial Measures
— FIRSTCASH HOLDINGS INC. 34 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, ADJUSTED RETAIL POS PAYMENT SOLUTIONS SEGMENT METRICS AND CONSTANT CURRENCY RESULTS AS FACT
Slide 35: Constant Currency Results
— FIRSTCASH HOLDINGS INC. 35 CERTAIN PERFORMANCE METRICS DISCUSSED IN THIS PRESENTATION ARE PRESENTED ON A “CONSTANT CURRENCY” BASIS, WHICH IS CONSIDERED A NON-GAAP FINANCIAL MEASURE. THE COMPANY’S MANAGEMENT USES CONSTANT CURRENCY RESULTS TO EVALUATE OPERATING RESULTS OF BUSINESS OPERATIONS IN LATI
Slide 36: Get in Touch With Us
NASDAQ: FCFS 36 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 — FIRSTCASH HOLDINGS INC.
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