Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — First Cash Financial Services — Investor Presentation (November 2012)
36 slides from Firstcash's investor presentation, Nov 19, 2012
Slide 1: First Cash Financial Services Investor Presentation
First Cash Financial Services Investor Presentation November 14, 2012
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking statements,” as defined by the Private Securities Litigation Reform Act of 1995, that can be identified by words such as “believes,” “expects,” “projects,” and similar expressions and involve numerous risks and uncertainties. The Comp
Slide 3: 2012 Recap: Growth in Spite of Headwinds
2012 Recap Growth in Spite of Headwinds 3
Slide 4: 2012 Recap: Operating Highlights
2012 Recap Operating Highlights Despite industry/macro headwinds… Declining scrap gold margins & volumes 10% decline in the value of the Mexican Peso Increased payday regulation and competition First Cash continues to grow revenue & earnings Current 2012 guidance range represents year-ov
Slide 5: 2012 Recap: Store Growth
2012 Recap Store Growth 139 Stores Added in First 9 months of Fiscal 2012 5
Slide 6: 2012 Recap: Revenue Growth
2012 Recap Revenue Growth Millions 6
Slide 7: 2012 Recap: EBITDA Growth
2012 Recap EBITDA Growth Millions 7
Slide 8: 2012 Recap: Pawn Receivable Growth
2012 Recap Pawn Receivable Growth 7% 3% 23% 22% 36% 19% 16% 12% 17% 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Mexico U.S. Q3 2012 Same Store Receivable Growth: Mexico: 17% U.S. 4% 8
Slide 9: 2012 Recap: Growth Driven by Loan Counts – Not Gold Prices
2012 Recap Growth Driven by Loan Counts – Not Gold Prices $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $75 $80 $85 $90 $95 $100 $105 $110 $115 $120 2008 2009 2010 2011 2012 ytd Avg price of gold in USD Avg pawn loan in USD Average loan size compared to average market price of gold Avera
Slide 10: Market & Competitive Analysis
Market & Competitive Analysis 10
Slide 11: Market Differentiation
Market & Competitive Analysis Market Differentiation First Cash continues to differentiate itself from other Pawn & Payday Lending peers Growth focused exclusively on core pawn business Limited regulatory exposure to payday lending Less gold exposure than other pawn peers Best store-front
Slide 12: Gold Exposure
Market & Competitive Analysis Gold Exposure Mexico United States Consolidated 12
Slide 13: Store Counts – Pawn vs. Payday
Market & Competitive Analysis Store Counts – Pawn vs. Payday 13
Slide 14: Store Counts – By Country
Market & Competitive Analysis Store Counts – By Country 14
Slide 15: Source of Gross Profits – Pawn vs. Payday
Market & Competitive Analysis Source of Gross Profits – Pawn vs. Payday 15
Slide 16: Pawn Balances – Foreign vs. Domestic
Market & Competitive Analysis Pawn Balances – Foreign vs. Domestic 16
Slide 17: U.S. Pawn Growth
U.S. Pawn Growth 17
Slide 18: Peer Group Market Share
U.S. Growth Peer Group Market Share U.S. pawn industry remains highly fragmented Estimated total U.S. pawn stores: 12,000 to 14,000 Continued opportunities for regional acquisitions 2% 4% 6% 88% U.S. Stores FCFS EZPW CSH Other 18
Slide 19: First Cash Domestic Store Additions
U.S. Growth First Cash Domestic Store Additions Large Format Store Additions by Year 19
Slide 20: First Cash Geographic Footprint
U.S. Growth First Cash Geographic Footprint Large Format Pawn Stores Consumer Loan Stores (with gold buying services) Small Format Pawn Stores 1 65 87 3 4 7 2 D.C. 1 27 9 26 29 7 4 2 New states added in 2012 20
Slide 21: New Rocky Mountain Locations
U.S. Growth New Rocky Mountain Locations Mister Money – Rocky Mountain Fast Cash & Mister Money – Denver 21
Slide 22: Mexico Growth
Mexico Growth 22
Slide 23: Mexican Economy Continues to Grow
Mexico Growth Mexican Economy Continues to Grow Increased competitiveness enables Mexico to attract foreign investment, especially compared to China Lower infrastructure development costs Competitive skilled-labor costs Strategic geographic location Recent election results should keep poli
Slide 24: Consumer Credit Remains Underpenetrated
Mexico Growth Consumer Credit Remains Underpenetrated Source: Santander Latin America Equity Research Strategy Report, October 26, 2012 24
Slide 25: Pawn Industry in Mexico
Mexico Growth Pawn Industry in Mexico 4,296 979 639 All Stores Approx. 6,000 Jewelry Only Full Service Not for Profit 536 236 47 200 Full Service Stores Approx. 1,000 First Cash EZPW Cash America Other 25
Slide 26: First Cash Geographic Footprint
Mexico Growth First Cash Geographic Footprint Chihuahua Queretaro Aguascalientes Puebla Guanajuato Coahuila Tamaulipas Nuevo Leon Sonora Durango Jalisco San Luis Potosi Morelos Guerrero Michoacan Edo de Mexico Hidalgo Distrito Federal (Mexico City) Veracruz Zacatecas Colima Sinaloa 19 483 34 29-st
Slide 27: First Cash Mexico Store Additions
Mexico Growth First Cash Mexico Store Additions Store Additions by Year 60 57 61 60 29 0 10 20 30 40 50 60 70 80 90 100 2009 2010 2011 2012 YTD Acquired stores New stores 89 27
Slide 28: LatAm Investment Opportunity
LatAm Investment Opportunity 28
Slide 29: Long-term Expansion Opportunities
LatAm Investment Opportunity Long-term Expansion Opportunities Favorable consumer demographics Low credit penetration Strong demand forecast “We believe credit penetration in LatAm remains relatively low from both an emerging and developed markets perspective, and see potential for the largest
Slide 30: Comparative LatAm Consumer Earnings Multiples
LatAm Investment Opportunity Comparative LatAm Consumer Earnings Multiples 30
Slide 31: Expanding International Investor Base
LatAm Investment Opportunity Expanding International Investor Base Q2 2010 Shareholder Base U.S. International Q2 2012 Shareholder Base U.S. International • Emerging Market and International funds now represent ~10% of shareholder base – up 300% from Q2 2010 • Notable U.S. based funds with increment
Slide 32: Expanding International Investor Base
LatAm Investment Opportunity Expanding International Investor Base Top LatAm/Emerging Market shareholders: BlackRock Investment Management 461,000 shares JP Morgan Latin American Equity Fund 460, 000 shares Fidelity Latin America Fund 381,000 shares Handelsbanken Fonder AB 325,000 shares
Slide 33: Looking Ahead: Growth Potential Supports Valuation
Looking Ahead Growth Potential Supports Valuation 33
Slide 34: Earnings Multiple Lags Recent History
Looking Ahead Earnings Multiple Lags Recent History Forward P/E Multiple: Currently 12.9 3yr High 21.0 3yr Avg. 14.3 Trailing P/E Multiple 34
Slide 35: Significant Leverage Capacity
Looking Ahead Significant Leverage Capacity 2012 investments to date (nine months): Acquisitions: $108 million Stock repurchases: $61million Capex: $16 million Expanded bank credit facility $175 million facility w/ $64 million available LIBOR + 2.0% rate Unsecured Matures in 2015 3
Slide 36: Positioned for Continued Growth
Looking Ahead Positioned for Continued Growth Strong balance sheet supports growth and value accretion for shareholders Pawn focused, limited payday regulatory exposure Significant store-based platform supports long-term earnings growth Mexico remains the primary growth driver in the near te
First Cash Financial Services — Investor Presentation (November 2012) on 6ix