Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Investor Presentation (September 2016)
26 slides from Firstcash's investor presentation, September 2016
Slide 1: Investor Presentation September 2016
Investor Presentation June 2015 Investor Presentation September 2016
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS “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: Pawnshop Profile
PAWNSHOP PROFILE • Neighborhood-‐based stores serving cash-‐ constrained customers • Buy and sell popular pre-‐owned consumer products including: ⦁ Consumer electronics & appliances ⦁ Jewelry, diamonds & watches ⦁ Power tools, musical instruments & sporting goods • Ready and immediate source of c
Slide 4: Cash America Merger
CASH AMERICA MERGER First€ash GETMORE | GAMES
Slide 5: Transaction Overview
TRANSACTION OVERVIEW First Cash Financial Services and Cash America International announce a merger of equals n 100% stock-‐for-‐stock Transaction structure n Tax-‐free transaction Fixed exchange ratio n 0.840x FCFS shares for each CSH share Pro forma market cap. n Approximately $2.4 billion
Slide 6: A Strong Platform with Premier, Proven Management Team
A STRONG PLATFORM WITH PREMIER, PROVEN MANAGEMENT TEAM Well positioned for greater success and value creation than either company could achieve on its own Compelling n Enhanced scale and geographic reach: creates leading operator of more than 2,000 retail pawn strategic stores in the United States
Slide 7: Natural Partners
NATURAL PARTNERS Natural Partners with Scale in Complementary Geographies and Business Lines Pro forma 318 1,133 (54%) Store count by U.S. geographic region Latin America 1,268 815 2,083 (as of 9/1/16) 950 815 950 (46%) 22% 55% 45% Core revenue U.S. breakdown by $656 $948 $1,604 Latin America geogra
Slide 8: Powerful Financial Combination
POWERFUL FINANCIAL COMBINATION (Q1 2016 LTM figures; $ in millions) Pro forma (1) Revenue $712 $1,035 $1,747 Adjusted EBITDA $129 (2) $115 (3) $289 (4) Net income $57 $30 $129 (5) Pawn receivables $127 $211 $338 Total debt / 1.9x 1.6x 1.5x (4) adjusted EBITDA Market cap. $1.4bn $1.0bn $2.4bn (9/1/16
Slide 9: Estimated Synergies and Integration Costs
ESTIMATED SYNERGIES AND INTEGRATION COSTS Estimated amounts Timing Adjusted EBITDA Pre-‐tax earnings n ~$45 million, primarily from n ~$25 million of technology, finance and other synergies Annual operating administrative synergies expected to be cost synergies phased-‐in in n No contemplated s
Slide 10: Enhanced Scale with Limited Overlap
ENHANCED SCALE WITH LIMITED OVERLAP nCombined entity has over 2,000 stores − 1,133 stores across 26 states in the U.S. with 950 stores in Latin America U.S. operations – 26 states Mexico operations – all states Sonora Chihuahua Coahuila Quintana Roo Durango Nuevo Leon 33 Yucatan WA Tamaulipas MT ME
Slide 11: Ongoing Growth Strategy
ONGOING GROWTH STRATEGY • Latin America will be the primary store growth vehicle -‐ significant untapped potential in the region Latin America n Existing Latin American growth profile growth strategy remains in place Existing country presence Near-‐term expansion − First Cash reported Q2 YTD 2016
Slide 12: Limited Exposure to New CFPB Rules
LIMITED EXPOSURE TO NEW CFPB RULES n On June 2, 2016, the U.S. Consumer Financial Protection Bureau (CFPB) released its proposed rules that affect payday loans, auto title loans, deposit advance products and certain high-‐cost installment and open-‐end loans − The proposed rules include, among ot
Slide 13: Significant Franchise and Shareholder Value
SIGNIFICANT FRANCHISE AND SHAREHOLDER VALUE 1 Creation of leading operator of retail pawn stores with over 2,000 stores in the United States and Latin America 2 Financial strength to enhance expansion plans in Latin America and to support capital returns to shareholders 3 $289mm LTM 1Q’16 adjusted E
Slide 14: Latin American Operations
LATIN AMERICAN OPERATIONS SIGNIFICANT GROWTH OPPORTUNITY
Slide 15: Store Growth Driven by LatAm Expansion
STORE GROWTH DRIVEN BY LATAM EXPANSION 1,271 11 Year 6 Month CAGR: U.S. -‐ 8% 1,075 Latin America -‐ 22% 1,005 Total -‐ 16% 906 814 671 595 529 465 400 338 283
Slide 16: Consistent Store Growth
CONSISTENT STORE GROWTH FirstCash First Cash Latin American Store Additions by Year 200 175 150 125 100 75 8 50 a7 25 61 60 31 2011 2012 2013 2014 2015 YTD 6/30/16 Store Additions 31 °o Hi sNew stores Hs Acquired stores
Slide 17: Maxi Prenda Acquisition
MAXI PRENDA ACQUISITION • Multi-‐Stage Acquisition of 211 Pawn Stores in Latin America ⦁ 32 stores in Guatemala (December 2015) ⦁ 166 stores in Mexico (January 2016) ⦁ 13 stores in El Salvador (February 2016) ⦁ First stores in Central America ⦁ Opportunity for additional store expansion •Strategic
Slide 18: Mexico Operations
MEXICO OPERATIONS As of June 30, 2016 901 Stores – all 32 states ⦁ 873 Pawn stores Chihuahua ⦁ 28 Consumer loan stores Coahuila Nuevo Leon Tamaulipas Baja California San Luis Potosi Baja California Guanajuato Sur Sonora Queretaro Sinaloa Hidalgo Yucatan Durango Tlaxcala Nayarit Puebla Veracruz Quint
Slide 19: Consistent LatAm Revenue Growth
CONSISTENT LATAM REVENUE GROWTH • Core revenue growth (cc) -‐ 2010 -‐ 2015: $363 $388 $368 ⦁ 201% growth $322 ⦁ 25% 5-‐year CAGR $281 • Second quarter 2016 highlights: ⦁ Retail merchandise sales growth (cc): 31% ⦁ Pawn fee revenue growth (cc): 37% ⦁ Same-‐store core revenue growth (cc): 10% ⦁ Pa
Slide 20: Mexico New Store Investment - Proven Rapid Payback Model
MEXICO NEW STORE INVESTMENT – PROVEN RAPID PAYBACK MODEL New Store Cash Flow Typical Mexico New Store Ramp Store Investment Cap Ex $170,000 -‐ Leasehold improvements & fixtures -‐ Computer & security equipment Start-‐up Losses $25,000 -‐ Pre-‐opening -‐ First six months of operation Total Stor
Slide 21: Appendix
First€ash APPENDIX
Slide 22: Non-GAAP Information
NON-‐GAAP INFORMATION “This presentation includes certain financial information that does not conform to generally accepted accounting principles (GAAP). Management of the companies believe that an analysis of this data is meaningful to investors because it provides insight with respect to comparis
Slide 23: Adjusted Net Income and Adjusted Earnings per Share
Adjusted net income and adjusted earnings per share First Cash Financial Services, Inc. Three months ended March 31, 2016 2015 ($ in thousands, except per share data) $ Per diluted share $ Per diluted share Net income $13,174 $0.47 $16,788 $0.59 Adjustments, net of tax: Non-‐recurring restructuring
Slide 24: Adjusted EBITDA
Adjusted EBITDA First Cash Financial Services, Inc. Three months ended Trailing twelve months March 31, ended March 31, ($ in thousands) 2016 2016 Net income $13,174 $57,096 Provision for income taxes 6,487 25,857 Depreciation and amortization(1) 4,937 17,925 Interest expense 4,460 17,327 Interest i
Slide 25: Adjusted Earnings and Adjusted Earnings per Share
Adjusted earnings and adjusted earnings per share Cash America International, Inc. Three months ended March 31, 2016 2015 ($ in thousands, except per share data) $ Per diluted share $ Per diluted share Net income and diluted net income per share $10,633 $0.42 $7,845 $0.27 Adjustments, net of tax: Lo
Slide 26: Adjusted EBITDA
Adjusted EBITDA Cash America International, Inc. Three months ended Trailing twelve months March 31, ended March 31, ($ in thousands) 2016 2016 Net income $10,633 $30,354 Provision for income taxes 5,322 15,888 Gain on disposition of equity securities (117) (1,679) Loss on early extinguishment of de
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