Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Investor Presentation (February 2021)
31 slides from Firstcash's investor presentation, Feb 24, 2021
Slide 1: Presentation February 2021
presentation FEBRUARY 2021 NASDAQ: FCFS FORT WORTH, TEXAS USA EXHIBIT 99.1
Slide 2: Forward-Looking Statements
FIRSTCASH INVESTOR RELATIONS 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
Slide 3: Company Overview
FIRSTCASH INVESTOR RELATIONS 3 COMPANY OVERVIEW FIRSTCASH IS THE LEADING INTERNATIONAL OPERATOR OF PAWN STORES WITH OVER 2,750 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 SALVA
Slide 4: Creating Shareholder Value: Dividend Growth and Store Growth
FIRSTCASH INVESTOR RELATIONS 4 $93 $275 $114 $107 $93 $368 $482 $588 $0 $100 $200 $300 $400 $500 $600 2017 2018 2019 2020 Th ou sa nd s Cumulative Current Year Annual dividend per share; Future cash dividends subject to Board of Directors approval INCREASING DIVIDEND GROWTH CREATING SHAREHOLDER VALU
Slide 5: FirstCash History
FIRSTCASH INVESTOR RELATIONS 5 66 123 282 595 906 2,085 2,473 2,748 1988 1989 - 1996 1997 - 2001 2002 - 2005 2006 - 2010 2011 - 2013 2014 - 2016 2017 - 2019 2020 FIRSTCASH HISTORY FIRST STORE 1988 HALTOM CITY, TX USA FIRST ACQUIRED STORE SUITLAND, MD USA ● FIRST STORES IN MEXICO ● 100TH DE NOVO STOR
Slide 6: Wall Street Journal quote on underbanked adults
“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
FIRSTCASH INVESTOR RELATIONS 7 PAWN LOAN OVERVIEW $78 $198 $0 $50 $100 $150 $200 $250 LATAM U.S. 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 SER
Slide 8: Diversified Revenue Stream
FIRSTCASH INVESTOR RELATIONS 8 DIVERSIFIED REVENUE STREAM Pawn Merchandise Sales and Pawn Lending Activities PAWN FEES 28% RETAIL SALES 66% SCRAP JEWELRY SALES 6% PAWN FEES 50% SCRAP JEWELRY SALES 2% RETAIL SALES 48% $1.6B TOTAL REVENUE $0.9B NET REVENUE TTM results as of 12/31/2020
Slide 9: Pawn Collateral and Inventory Composition
FIRSTCASH INVESTOR RELATIONS 9 PAWN COLLATERAL AND INVENTORY COMPOSITION Results as of 12/31/2020 JEWELRY ELECTRONICS TOOLS SPORTING GOODS MUSICAL INSTRUMENTS OTHER PAWN COLLATERAL INVENTORY U.S. SEGMENT PAWN COLLATERAL INVENTORY LATAM SEGMENT PAWN COLLATERAL INVENTORY CONSOLIDATED 67% 36% 58% 14% 2
Slide 10: Sustainability Is Core to FirstCash
FIRSTCASH INVESTOR RELATIONS 10 SUSTAINABILITY IS CORE TO FIRSTCASH REPLACING TAKE MAKE DISPOSE WITH BUY USE RETURN NEIGHBORHOOD-BASED STORES CONTRIBUTE TO THE MODERN “CIRCULAR ECONOMY” PAWN SHOPS PIONEERED CIRCULAR ECONOMY INVENTORY IS PRE-OWNED MERCHANDISE WHICH IS SOURCED AND THEN RECYCLED
Slide 11: Customer and Employee Protections; Social Responsibility
FIRSTCASH INVESTOR RELATIONS 11 CUSTOMER AND EMPLOYEE PROTECTIONS — STRICT COVID-19 SAFETY PROTOCOLS — ROBUST CONSUMER AND CORPORATE COMPLIANCE PROGRAMS — PRIVACY AND DATA PROTECTION POLICIES COMMITMENT TO SOCIAL RESPONSIBILITY EMPLOYEE EMPOWERMENT — EMPLOYEE-TRAINING PROGRAMS THAT PROMOTE CUSTOMER
Slide 12: Overview Latin America
OVERVIEW LATIN AMERICA 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 DE NOVO EXPANSION o RUNWAY FOR CONTINUED STORE OPENINGS AND STRATEGIC ACQUISITIO
Slide 13: FirstCash LatAm Growth: Revenue and Store Count
FIRSTCASH INVESTOR RELATIONS 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 consta
Slide 14: Fourth Quarter Trends: Latin America Operations
FIRSTCASH INVESTOR RELATIONS 14 FOURTH QUARTER TRENDS – LATIN AMERICA OPERATIONS MEXICO SEGMENT MARGIN BY QUARTER LATAM RETAIL SALES MARGIN AND SEGMENT PROFIT MARGIN BY QUARTER MEXICO SAME-STORE PAWN RECEIVABLES AND LOAN ORIGINATIONS COMPARED TO PRIOR-YEAR 36% 35% 35% 36% 37% 35% 34% 32% 35% 36% 37%
Slide 15: Proven New Store Opening Process and Rapid Payback Model
FIRSTCASH INVESTOR RELATIONS 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,
Slide 16: Overview United States
OVERVIEW UNITED STATES OVER 1,000 U.S. LOCATIONS IN 24 STATES AND THE DISTRICT OF COLUMBIA o OPERATIONS FOCUSED IN STATES WITH: – GROWING POPULATIONS – FAVORABLE DEMOGRAPHICS – STABLE REGULATIONS o SIGNIFICANT UNDERBANKED DEMOGRAPHICS o CONTINUED OPPORTUNITIES FOR ACQUISITIONS IN EXISTING MARKETS –
Slide 17: U.S. Operations: Over 1,000 Locations
FIRSTCASH INVESTOR RELATIONS 17 U.S. OPERATIONS — OVER 1,000 LOCATIONS 27 27 22 2018 2019 2020 U.S. ACQUIRED STORES BY YEAR Store counts as of 12/31/2020 NV AK WA LA UT NE AZ CO TX MO OK IL IN OH GAAL FL KY TN NC VA WY SC 31 27 27 423 6 1 6 28 1 18 25 26 23 23 63 50 438 75 51 25 6 28 MD 29 DC 3 FORT
Slide 18: Fourth Quarter Trends: U.S. Operations
FIRSTCASH INVESTOR RELATIONS 18 MEXICO SEGMENT MARGIN BY QUARTER U.S. RETAIL SALES MARGIN AND SEGMENT PROFIT MARGIN BY QUARTER U.S. SAME-STORE PAWN RECEIVABLES AND LOAN ORIGINATIONS COMPARED TO PRIOR-YEAR FOURTH QUARTER TRENDS – U.S. OPERATIONS 35% 37% 37% 37% 37% 38% 38% 39% 39% 42% 44% 45% 20% 18%
Slide 19: Limited Regulatory Exposure
FIRSTCASH INVESTOR RELATIONS 19 LIMITED REGULATORY EXPOSURE $118 $93 $77 $56 $20 $2 7% 5% 4% 3% 1% 0% 0% 2% 4% 6% 8% 10% $0 $30 $60 $90 $120 $150 2015 2016 2017 2018 2019 2020 CONSUMER LOAN REVENUE Gross Consumer Loan Revenue % of Consolidated Revenue 335 271 258 158 41 114 113 113 113 82 64 63 8 6
Slide 20: Financial Highlights
FIRSTCASH INVESTOR RELATIONS 20 FINANCIAL HIGHLIGHTS MERIDA, YUCATAN MEXICO
Slide 21: Operating Results: Net Income, EBITDA and EPS
FIRSTCASH INVESTOR RELATIONS 21 DILUTED EARNINGS PER SHARE OPERATING RESULTS NET INCOME EBITDA $1 44 $1 53 $ 16 5 $1 07 $1 31 $1 58 $1 68 $1 25 $0 $50 $100 $150 $200 2017 2018 2019 2020 Net Income Adjusted Net Income $2 50 $ 27 5 $2 99 $2 14 $2 73 $2 84 $3 04 $2 37 $0 $100 $200 $300 $400 2017 2018 2
Slide 22: Record Free Cash Flows; Bond Refinancing Strengthens Balance Sheet
FIRSTCASH INVESTOR RELATIONS 22 $300 $300 $300 $500 $500 $335 $356 $200 $40 $123 $635 $656 $500 $540 $623 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 2024 Sr. Notes 2028 Sr. Notes Bank Lines of Credit $220 $24
Slide 23: Cash Dividends and Share Repurchases
FIRSTCASH INVESTOR RELATIONS 23 $93 $275 $114 $107 $93 $368 $482 $588 46.9 43.6 42.3 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 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 Repu
Slide 24: Growth Investments and Shareholder Payouts
FIRSTCASH INVESTOR RELATIONS 24 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 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CUMULATIVE TOTAL $2.1 BILLION $48
Slide 25: Investment Recap
FIRSTCASH INVESTOR RELATIONS 25 INVESTMENT RECAP PAWN EXCLUSIVE BUSINESS MODEL ‒ SMALL SECURED PAWN LOANS TO UNBANKED AND UNDERBANKED CONSUMERS WITH LIMITED OR NO ACCESS TO TRADITIONAL CREDIT PRODUCTS ‒ FULL-SERVICE LENDING AND RETAIL MODEL IS A SIGNIFICANT COMPETITIVE ADVANTAGE WITH STRONG MARGINS
Slide 26: Appendix
FIRSTCASH INVESTOR RELATIONS 26 APPENDIX CORPUS CHRISTI, TEXAS USA
Slide 27: Non-GAAP Financial Information
FIRSTCASH INVESTOR RELATIONS 27 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 MEASUREMEN
Slide 28: Reconciliations of Non-GAAP Financial Measures to GAAP
FIRSTCASH INVESTOR RELATIONS 28 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, 2017 2018 2019 2020 CASH FLOW FROM OPERATING ACT
Slide 29: Adjusted Net Income and EPS Reconciliation
FIRSTCASH INVESTOR RELATIONS 29 YEAR ENDED DECEMBER 31, 2017 2018 2019 2020 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 ADJUSTMENTS, NET OF TAX: MERGER AND ACQUISITION EXPENSES 5,71
Slide 30: Constant Currency
FIRSTCASH INVESTOR RELATIONS 30 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 BUSINE
Slide 31: Get in Touch With Us
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 INVESTOR RELATIONS 31