Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Investor Day (November 2016)
38 slides from Firstcash's investor day presentation, Nov 10, 2016
Slide 1: Analyst & Commercial Banker Day November 10, 2016
1 Analyst & Commercial Banker Day November 10, 2016 EXHIBIT 99.1
Slide 2: Forward Looking Information
2 Forward Looking Information “This presentation contains “forward-looking statements” (as defined in the Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of FirstCash. Words such as “anticipate,” “expect,” “project,” “intend,
Slide 3: Today's Agenda
3 Today’s Agenda 8:30-10:00 Management Presentation • Merger Overview • Domestic Operations • LatAm Operations • Looking Ahead 10:30-12:15 Store Tours 12:45-2:00 Lunch 2:00-2:30 Bus to Airport 2:00-3:30 Stadium Tour
Slide 4: Merger Review & Update
Merger Review & Update pirstéas — GashAmerica =
Slide 5: Strategic Rationale for Merger
5 Strategic Rationale for Merger • Enhanced scale and geographic reach – Creates leading operator of more than 2,000 retail pawn stores with operations in the United States and three Latin American countries – Market Cap of over $2 billion • Strong cash flows and financial flexibility – Financial st
Slide 6: Combined History Total Assets
25 Year Combined History Total Assets (millions) $22 $161 $2,278 $216 $555$239 $716 1992 2004 As of 9/30/16 FCFS CSH Sources: Factset; CapIQ; Public Filings; Internal Documents 6
Slide 7: Combined History Revenue
25 Year Combined History Revenue (millions) Sources: Factset; CapIQ; Public Filings; Internal Documents 7 $9 $180 $185 $469 $194 $649 $1,780 1992 2004 LTM 9/30/2016, Pro Forma FCFS CSH
Slide 8: Combined History Store Count
25 Year Combined History Store Count Sources: Factset; CapIQ; Public Filings; Internal Documents 23 284 2,081 355 839 378 1,123 1992 2004 As of 9/30/16 FCFS CSH 8
Slide 9: Integration Strategy
9 Integration Strategy • Corporate Office – Headquarters in Fort Worth, Texas – Significant opportunities to consolidate corporate expenses and support functions • Stores – Maintain existing footprints – no planned consolidation or closures of pawn stores – Maintain established “brands” in local mar
Slide 10: First Pawn Technology Platform
10 First Pawn Technology Platform Proven, Propriety Pawn Store Operating System Human Resources • Scheduling • Time Keeping • Performance Management • Incentive Comp Financial Data • Reporting & Analysis • Internal Controls & Audit Support •Management Alerts Retail Ops • Retail POS • Pricing • Inven
Slide 11: Technology Integration Plan
11 Technology Integration Plan • All stores will standardize on the First Pawn system • Benefits at the store: – Improved transaction times and system reliability – Real-time pricing look-ups to determine optimum loan to value ratio – Improved on-demand reporting of key performance indicators – Redu
Slide 12: Synergy Update
12 Synergy Update • Estimated cost synergies continued to be forecast at $45 million – Headcount efficiencies – Technology support costs – Interest savings • Estimated D&A synergies of up to $20 million – Primarily related to technology integration • Potential future store-level synergies – Store op
Slide 13: Domestic Operations
13 Domestic Operations
Slide 14: Domestic Footprint: 1,128 Stores
14 Domestic Footprint: 1,128 Stores Store Count as of 9/30/2016 FCFS States CSH States Shared States
Slide 15: Domestic Locations Store Count
15 Domestic Locations Store Count At End of Period 475 485 486 641 682 697 748 829 820 801 792 95 94 94 97 135 157 211 252 266 296 291 295 304 248 96 88 86 83 40 39 21 20 86 99 102 103 74 67 65 57 65 42 25 951 982 930 937 979 1,007 1,107 1,178 1,190 1,160 1,128 - 200 400 600 800 1,000 1,200 1,400 20
Slide 16: Domestic Locations Acquisitions and Start-Ups
16 Domestic Locations Acquisitions and Start-Ups 0 10 20 30 40 50 60 70 80 90 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CSH-Acquisitions CSH-Start-Ups FCFS-Acquisitions FCFS-Start-Ups Cash America - Domestic 2013: Top Dollar (41), PawnMart (34) 2012: Pawn & Bargains (25) 2010: Maxit (39
Slide 17: Population Growth by US State
17 Population Growth by US State Top 15 States by 2015 Population *Data obtained from census.gov and fdic.gov 2015 Store Store % of Pop. Rank Count Dom. TOT vs. 2014 vs. 2013 Un- Under- CA 1 11 1.0% 3 2 Q3 Q2 TX 2 416 36.9% 1 1 Q4 Q4 FL 3 77 6.8% 2 3 Q3 Q2 NY 4 0 0.0% 15 11 Q3 Q4 IL 5 25 2.2% 51 51
Slide 18: Domestic Population Growth by Origin
18 Domestic Population Growth by Origin YoY Change in Population and Hispanic Growth by State (2015 vs. 2013) 0.8% 0.7% 0.8% 0.8% 0.5% 0.5% 0.5% 0.5% 2.2% 2.1% 2.2% 2.2% Total Non Hispanic Hispanic *Growth defined as absolute change, not percent change YoY-2012 YoY-2015YoY-2014YoY-2013 2015 Growth R
Slide 19: Average Loan & Average Gold Price Domestic Stores
19 Average Loan & Average Gold Price Domestic Stores 145 146 142 144 148 141 178 185 171 171 169 163 $0 $400 $800 $1,200 $1,600 $2,000 $0 $40 $80 $120 $160 $200 2011 2012 2013 2014 2015 YTD Sep 2016 Av er ag e P ric e of G old P er O un ce Av er ag e L oa n CSH FCFS Avg. Gold Price
Slide 20: Reduced Reliance on Scrap
20 Reduced Reliance on Scrap (000’s) 80,953 33,124 12,114 8,494 -911 17,218 6,884 4,064 1,850 3,347 186 119 111 74 87 -20 0 20 40 60 80 100 120 140 160 180 200 -$10,000 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 2012 2013 2014 2015 TTM Sep 2016 Go ld Ou nc es Sc ra p
Slide 21: Legacy Store Analysis
10 Year Legacy Store Analysis Positive Comps Despite Recent Headwinds1 1CAGR is calculated over the period beginning in 12/31/2006 through 9/30/2016 2Legacy stores are U.S. stores in operation since 2006 3Core store contribution defined as store income excluding taxes, administrative & supervisory e
Slide 22: Latin America Operations
Latin America Operations 22
Slide 23: Latin America Locations Store Count
23 Latin America Locations Store Count At End of Period 112 176 180 190 47 47 157 207 269 329 386 447 538 597 674 737 953 157 207 381 505 566 637 585 644 674 737 953 - 100 200 300 400 500 600 700 800 900 1,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 YTD Sep 2016CSH FCFS
Slide 24: LatAm Locations Acquisitions and Start-Ups
24 LatAm Locations Acquisitions and Start-Ups 0 50 100 150 200 250 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 CSH-Acquisitions CSH-Start-Ups FCFS-Acquisitions FCFS-Start-Ups Cash America - LatAm 2008: Prenda Facil (112) First Cash - LatAm 2016: Maxi Prenda - El Salvador (13) 2016: Maxi P
Slide 25: Foreign Exchange Rates – YTD Average
25 Foreign Exchange Rates – YTD Average Mexican Peso to US Dollar 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 20.0 EPS Impact* $0.10-$0.14 EPS Impact* $0.08-$0.12 EPS Impact* $0.06-$0.10 EPS Impact* $0.06-$0.08 *Annualized impact of a “one point” (one peso) movement in the exchange rate vs. th
Slide 26: LatAm Revenue Growth
LatAm Revenue Growth (millions) 26 $101 $141 $175 $222 $281 $322 $363 $388 $368 $402 $101 $143 $206 $250 $312 $378 $419 $468 $527 $641 $0 $100 $200 $300 $400 $500 $600 $700 2007 2008 2009 2010 2011 2012 2013 2014 2015 T12M, Sep-2016 Total Revenue, USD CC Revenue, 2007 MXN* 9 Year CAGR 22.9% *Constan
Slide 27: Case Study: Cash America Mexico
Case Study: Cash America Mexico (MXN) 27 7,217 8,008 7,575 7,695 126 856 1,081 1,338 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2013 2014 2015 TTM Sep 2016 Thou sand s Total revenue Store Contribution Contribution Margin TTM S
Slide 28: Maxi Prenda Update
Maxi Prenda Update • Merger Highlights – Acquired 211 Maxi Prenda stores in late 2015 and early 2016 – Stores located in Southern & Central Mexico, Guatemala & El Salvador • Integration Update – Most corporate functions fully integrated at this point – Reduced approximately 90% of corporate staff an
Slide 29: Population Growth for Mexico
29 Population Growth for Mexico Store Count as of 9/30/2016 BAJA CALIFORNIA 74 MICHOACAN 16 CHIHUAHUA 39 COAHUILA 41 NUEVO LEON 65DURANGO 14 SINALOA 19 TABASCO 11 ZACATECAS 6 SAN LUIS POTOSI 13 JALISCO 59 PUEBLA 57 VERACRUZ 70 CHIAPAS 10 CAMPECHE 6 YUCATAN 9 QUINTANA ROO 21 AGUASCALIENTES 14 ESTADO
Slide 30: Population Growth for Central America
30 EL SALVADOR 13 HONDURAS GUATEMALA 33 NICARAGUA BELIZE COSTA RICA PANAMA Guatemala Belmopan TegucigalpaSan Salvador Managua San Jose Panama Population Growth for Central America Store Count as of 9/30/2016 *Data obtained from Population Reference Bureau 2015 Pop. Store (millions) Count 2030 2050 G
Slide 31: New Market Update: Population Growth for South America
31 New Market Update Population Growth for South America FRENCH GUIANA BRAZIL ARGENTINA CHILE URUGUAY VENEZUELA COLOMBIA* SURINAME ECUADOR PERU BOLIVIA PARAGUAY GUYANA *Data obtained from Population Reference Bureau No Current Stores 2015 Pop. (millions) 2030 2050 Brazil 206.1 223.1 226.3 Colombia*
Slide 32: Looking Ahead
Looking Ahead 32
Slide 33: Store Growth
Store Growth 33 Projected 2016 Projected Adds Projected 2017 Domestic 1,128 10 1,138 Pawn Lending Only 757 10 767 Consumer Lending Only 45 0 45 Pawn & Consumer Lending 326 0 326 Latin America 958 75 1,033 Pawn Lending Only 881 75 956 Consumer Lending Only 28 0 28 Pawn & Consumer Lending 49 0 49 Cons
Slide 34: Balance Sheet
Balance Sheet (millions) 34 $1,306 $972 $1,433 $560 $285 $0 $500 $1,000 $1,500 $2,000 $2,500 Assets Liabilities and Equity Operating Assets Intangibles Equity Interest Bearing Liabilities, Prin Outstanding Other Liabilities Liabilities to Equity Ratio 58.9%$2,278
Slide 35: Leverage Profile
35 Leverage Profile (millions) $200 $200 $51 $181 $360 $4 $436 $560 $0 $100 $200 $300 $400 $500 $600 6/30/2016 9/30/2016 FCFS Senior Notes CSH Notes FCFS Line of Credit CSH Line of Credit Increase in debt due to transaction costs and redemption of Cash America RSUs Maturity Date 6/30/2016 9/30/2016
Slide 36: Consumer Lending Update
Consumer Lending Update • Consumer Lending Revenues and Store Counts Continue to Strategically Diminish – Year-to-date (Sept. 30) proforma revenues down 19% – 18 total consumer loan store closings in 2016 (includes Cash America and First Cash) – Expected to be 5% of total revenues in 2017 • Enova Sh
Slide 37: Shareholder Payout Strategy
Shareholder Payout Strategy • Target shareholder payout of up to 50% of Net Income • Increased Dividend – Previous Cash America Dividend: $0.32 per share – Previous First Cash Dividend: $0.50 per share – New Dividend Policy: $0.76 per share • Future Share Buybacks – No buybacks in 2016 given merger
Slide 38: Analyst & Commercial Banker Day November 10, 2016
38 Analyst & Commercial Banker Day November 10, 2016