Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Investor Presentation (May 2021)
32 slides from Firstcash's investor presentation, May 4, 2021
Slide 1: FirstCash Presentation May 2021
presentation MAY 2021 FORT WORTH, TEXAS USA EXHIBIT 99.1
Slide 2: Forward-Looking Statements
2 FORWARD-LOOKING STATEMENTS THIS PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS ABOUT THE BUSINESS, FINANCIAL CONDITION AND PROSPECTS OF FIRSTCASH, INC. AND ITS WHOLLY OWNED SUBSIDIARIES (TOGETHER, THE “COMPANY”). FORWARD-LOOKING STATEMENTS, AS THAT TERM IS DEFINED IN THE PRIVATE SECURITIES LITIG
Slide 3: Company Overview
3 COMPANY OVERVIEW FIRSTCASH IS THE LEADING INTERNATIONAL OPERATOR OF PAWN STORES WITH OVER 2,770 RETAIL PAWN LOCATIONS AND 17,000 EMPLOYEES IN 24 U.S. STATES, THE DISTRICT OF COLUMBIA AND FOUR COUNTRIES IN LATIN AMERICA INCLUDING MEXICO, GUATEMALA, COLOMBIA AND EL SALVADOR… Pawn stores are neighbor
Slide 4: Increasing Dividend Creating Growth and Shareholder Value
4 $93 $275 $114 $107 $5 $93 $368 $482 $588 $593 $0 $100 $200 $300 $400 $500 $600 2017 2018 2019 2020 YTD_2021 Cumulative Current Year Annual dividend per share; Future cash dividends subject to Board of Directors approval INCREASING DIVIDEND CREATING GROWTH AND SHAREHOLDER VALUE 2,111 2,473 2,679 2,
Slide 5: FirstCash History
5 66 123 282 595 906 2,085 2,473 2,748 2,771 1988 1989 - 1996 1997 - 2001 2002 - 2005 2006 - 2010 2011 - 2013 2014 - 2016 2017 - 2019 2020 YTD_2021 FIRSTCASH HISTORY FIRST ACQUIRED STORE SUITLAND, MD USA FIRST STORE 1988 HALTOM CITY, TX USA 100+ STORES IN MEXICO OVER 260 DE NOVO STORES OPENINGS 500T
Slide 6: Underbanked consumers quote
“ABOUT 53 MILLION U.S. ADULTS DON’T HAVE CREDIT SCORES. ANOTHER ROUGHLY 56 MILLION HAVE SUBPRIME SCORES. SOME HAVE A CHECKERED BORROWING HISTORY OR HIGH DEBT LOADS. BUT OTHERS, BANKS POINT OUT, JUST DON’T HAVE TRADITIONAL BORROWING BACKGROUNDS, OFTEN BECAUSE THEY ARE NEW TO THE U.S. OR PAY FOR MOST
Slide 7: Pawn Loan Overview
7 PAWN LOAN OVERVIEW $76 $215 $0 $50 $100 $150 $200 $250 LATAM U.S. Non-Recourse Loans Fully Collateralized with Personal Property R SETAIL ALES TYPICAL MARGIN: 35% - 45% P S FAWN ERVICE EES MONTHLY YIELD: 12% - 13% C DUSTOMER OES NOT REPAY LOAN OR FEE CUSTOMER REPAYS LOAN & PAWN SERVICE FEE ~25% -
Slide 8: Diversified Revenue Stream
8 DIVERSIFIED REVENUE STREAM Retail Sales and Pawn Lending 27% 67% 6% 49% 2% 49% $ $ TTM results as of 03/31/2021
Slide 9: Pawn Collateral and Inventory Composition
9 PAWN COLLATERAL AND INVENTORY COMPOSITION Results as of 03/31/2021 JEWELRY ELECTRONICS TOOLS SPORTING GOODS MUSICAL INSTRUMENTS OTHER PAWN COLLATERAL INVENTORY U.S. SEGMENT PAWN COLLATERAL INVENTORY LATAM SEGMENT PAWN COLLATERAL INVENTORY CONSOLIDATED 70% 34% 57% 12% 25%49% 56% 42% 52% 11% 21%41%
Slide 10: ESG: Sustainability Is Core to FirstCash
10 ESG: SUSTAINABILITY IS CORE TO FIRSTCASH REPLACING TAKE MAKE DISPOSE WITH BUY USE RETURN NEIGHBORHOOD-BASED STORES CONTRIBUTE TO THE MODERN “CIRCULAR ECONOMY” INVENTORY IS PRE-OWNED MERCHANDISE WHICH IS SOURCED AND THEN RECYCLED WITHIN EACH STORE’S GEOGRAPHIC NEIGHBORHOOD LOCAL SOURCING OF
Slide 11: ESG: Commitment to Social Responsibility
11 — STRICT COVID-19 SAFETY PROTOCOLS — ROBUST CONSUMER AND CORPORATE COMPLIANCE PROGRAMS — PRIVACY AND DATA PROTECTION POLICIES ESG: COMMITMENT TO SOCIAL RESPONSIBILITY — THAT PROMOTE CUSTOMER SERVICE AND PROFESSIONALISM — IN LENDING PRACTICES, MERCHANDISE VALUATION AND REGULATORY COMPLIANCE — WHIC
Slide 12: Overview Latin America
OVERVIEW LATIN AMERICA o o o 12 BOGOTA, COLOMBIA MEXICO, GUATEMALA, COLOMBIA AND EL SALVADOR
Slide 13: FirstCash LatAm Growth — Revenue and Store Count
13 FIRSTCASH LATAM GROWTH — REVENUE AND STORE COUNT $368 $417 $487 $557 $671 $553 $368 $485 $573 $666 $803 $725 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2015 2016 2017 2018 2019 2020 Total Revenue, USD $ CC Revenue, 2015 MXN @ 15.85 REVENUE GROWTH Presented constant currency results are non-G
Slide 14: Key Operating Trends – Latin America Operations
14 36% 35% 35% 36% 37% 35% 34% 32% 35% 36% 37% 38% 22% 23% 23% 24% 22% 22% 22% 21% 21% 17% 19% 21% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Q 1 Q 2 Q 3 Q 4- 20 18 Q 1 Q 2 Q 3 Q 4- 20 19 Q 1 Q 2 Q 3 Q 4- 20 20 Q 1 Retail Sales Margin Segment Pre-Tax Profit Margin 0% 20% 40% 60% 80% 100% 120% 03 /0 1
Slide 15: Proven New Store Opening Process and Rapid Payback Model
15 PROVEN NEW STORE OPENING PROCESS AND RAPID PAYBACK MODEL NEW STORE INVESTMENT (USD $) CAP EX — LEASEHOLD IMPROVEMENTS & FIXTURES — COMPUTER & SECURITY EQUIPMENT $181,000 START-UP LOSSES — PRE-OPENING — FIRST SIX MONTHS OF OPERATION $26,000 TOTAL STORE INVESTMENT $207,000 WORKING CAPITAL (USD $) F
Slide 16: Mexico Consumer Economy
16 MEXICO CONSUMER ECONOMY $0 $10 $20 $30 $40 $50 56% 22% 67% 48% 41% 56% 21% 65% 49% 40% 0% 20% 40% 60% 80% Mexico Chile Peru Colombia Brazil Pre-Pandemic January 2021 Data 69% 31% MEXICO CONSUMER CREDIT PENETRATION SOURCES: INEGI MEXICO EMPLOYMENT INFORMALITY VS. PEERS SOURCE: NATIONAL INSTITUTE O
Slide 17: Overview United States
OVERVIEW UNITED STATES o – GROWING POPULATIONS – FAVORABLE DEMOGRAPHICS – STABLE REGULATIONS o o – HIGHLY FRAGMENTED INDUSTRY – PRIMARILY ROLLUPS OF SMALL INDEPENDENT OPERATORS (1 TO 30 STORES) 17 ATLANTA, GEORGIA USA
Slide 18: U.S. Operations — Over 1,000 Locations
18 U.S. OPERATIONS — OVER 1,000 LOCATIONS 27 27 22 2 2018 2019 2020 YTD-2021 U.S. ACQUIRED STORES BY YEAR Store counts as of 03/31/2021 NV AK WA LA UT NE AZ CO TX MO OK IL IN OH GAAL FL KY TN NC VA WY SC MD DC FIRSTCASH HEADQUARTERS RECENT U.S. ACQUISITIONS 1,046 RETAIL PAWN STORE LOCATIONS — 2 PAWN
Slide 19: Key Operating Trends – U.S. Operations
19 0% 20% 40% 60% 80% 100% 120% 03 /0 1/ 20 03 /1 5 03 /2 9 04 /1 2 04 /2 6 05 /1 0 05 /2 4 06 /0 7 06 /2 1 07 /0 5 07 /1 9 08 /0 2 08 /1 6 08 /3 0 09 /1 3 09 /2 7 10 /1 1 10 /2 5 11 /0 8 11 /2 2 12 /0 6 12 /2 0 01 /0 3 01 /1 7 01 /3 1 02 /1 4 02 _2 8 03 _1 4 03 _2 8 04 _1 1 04 _2 5 Pawn Receivables
Slide 20: Stable Regulatory Climate for Pawn
20 STABLE REGULATORY CLIMATE FOR PAWN oPAWN LOANS ARE DIFFERENT FROM TRADITIONAL CONSUMER LOAN PRODUCTS AND NOT SUBJECT TO THE CFPB SMALL DOLLAR LOAN RULES BECAUSE THEY: — ARE COLLATERALIZED WITH A TANGIBLE ASSET — ARE NON-RECOURSE LOANS — HAVE SIGNIFICANTLY SMALLER AVERAGE LOAN SIZES — DO NOT INVOL
Slide 21: Financial Highlights
21 FINANCIAL HIGHLIGHTS MERIDA, YUCATAN MEXICO
Slide 22: Operating Results
22 DILUTED EARNINGS PER SHARE OPERATING RESULTS NET INCOME EBITDA $1 44 $1 53 $ 16 5 $1 07 $1 07 $1 31 $1 58 $1 68 $1 25 $1 20 $0 $50 $100 $150 $200 2017 2018 2019 2020 TTM Q1_2021 Net Income Adjusted Net Income $2 50 $ 27 5 $2 99 $2 14 $2 13 $2 73 $2 84 $3 04 $2 37 $2 28 $0 $100 $200 $300 $400 2017
Slide 23: Cash Flow and Leverage
23 $300 $300 $300 $500 $500 $500 $335 $356 $200 $40 $123 $44 $635 $656 $500 $540 $623 $544 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 $0 $100 $200 $300 $400 $500 $600 $700 $800 12/31/2019 3/31/2020 6/30/2020 9/30/2020 12/31/2020 3/31/2021 2024 5.375% Sr. Notes 2028 4.625% Sr. Notes Bank Lines of Credit
Slide 24: Cash Dividends & Share Repurchases
24 $93 $275 $114 $107 $5 $93 $368 $482 $588 $593 46.9 43.6 42.3 41.0 41.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 2017 2018 2019 2020 YTD_2021 SH A RE S O U TS TA N D IN G (M IL LI O N S) S H A RE R E PU RC H A SE S (M IL LI O N S) Annual Repurchases
Slide 25: Growth Investments & Shareholder Payouts
25 GROWTH INVESTMENTS & SHAREHOLDER PAYOUTS The Last 10+ Years (since 2009) — $ in Millions $2.1 BILLION (SINCE 2009) $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2.1 BILLION $510 $1,031 $598 STOCK REPURCHASES & DIVIDENDS ‒ 12,985,608 SPLIT-ADJUSTED SHARES REPURCHASED ‒ $197 MILLION
Slide 26: Investment Recap
26 INVESTMENT RECAP PAWN EXCLUSIVE 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 ‒ RESILIENT BUS
Slide 27: Appendix
27 APPENDIX CORPUS CHRISTI, TEXAS USA
Slide 28: Non-GAAP Financial Information
28 NON-GAAP FINANCIAL INFORMATION 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 AND CONSTANT CURRENCY RESULTS AS FACTORS IN THE MEASUREMENT AND EVALUATION OF THE COMPA
Slide 29: Reconciliations of Non-GAAP Financial Measures to GAAP
29 RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES Reconciliation of Cash Flow From Operating Activities to Free Cash Flow & Adjusted Free Cash Flow ADJUSTED FREE CASH FLOW YEAR ENDED DECEMBER 31, TRAILING TWELVEENDED MARCH 31, 2017 2018 2019 2020 2020 2021 CASH FLOW FROM O
Slide 30: Net Income and EPS Reconciliation
30 YEAR ENDED DECEMBER 31, TRAILING TWELVEENDED MARCH 31, 2017 2018 2019 2020 2021 IN THOUSANDS PER SHARE IN THOUSANDS PER SHARE IN THOUSANDS PER SHARE IN THOUSANDS PER SHARE IN THOUSANDS PER SHARE NET INCOME $143,892 $3.00 $153,206 $3.41 $164,618 $3.81 $106,579 $2.56 $107,376 $2.60 ADJUSTMENTS, NET
Slide 31: Constant Currency
31 CONSTANT CURRENCY 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 LATIN AMERIC
Slide 32: Get in Touch With Us
GAR@GLOBALIRGROUP.COM 817 886 6998 GET IN TOUCH WITH US INVESTORRELATIONS@FIRSTCASH.COM INVESTORS.FIRSTCASH.COM 817 258 2650 32