Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Investor Day (November 2017)
30 slides from Firstcash's investor day presentation, Nov 3, 2017
Slide 1: Analyst and Banker Day November 2017
ANALYST AND BANKER DAY NOVEMBER 2017 EXHIBIT 99.2
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS 2 “This release 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 Litigatio
Slide 3: United States Update: Locations in 26 States
UNITED STATES UPDATE LOCATIONS IN 26 STATES
Slide 4: Q3 U.S. Segment Results
Q3 U.S. SEGMENT RESULTS 4 $307 $158 1% 5% 1% -3% -4% -2% 0% 2% 4% 6% $0 $50 $100 $150 $200 $250 $300 $350 Th ou san ds Current Year (CY) Prior Year (PY) YoY CY YoY PY Total Revenue ($/millions) Same-Store PLB1 Same-Store Core Revenue1 1 Year-over-year change % in same-store Core Revenue and Pawn Loa
Slide 5: U.S. Same-Store Core Revenue Year-over-Year Growth Rate
U.S. SAME-STORE CORE REVENUE YEAR-OVER-YEAR GROWTH RATE 5 (3%) 1% (6%) (2%) 3% (1%) (1%) (1%) 0% (8%) (6%) (4%) (2%) 0% 2% 4% 6% Core Revenue Pawn Fees Retail Sales
Slide 6: Merger Updates
MERGER UPDATES 6 • POS conversion on schedule for completion in 2017 • Back-office financial and HRIS/Payroll systems consolidated beginning January 2018 • Cost Synergies expected to meet or exceed target of $65 million • Store level integration activities continue on track • Adopt FirstCash incenti
Slide 7: Cash America IT Conversion Update
CASH AMERICA IT CONVERSION UPDATE 7 Note: As of 9/30/2017
Slide 8: Focus on Reducing Aged Inventory Levels
FOCUS ON REDUCING AGED INVENTORY LEVELS 8 14% 14% 11% 5% 5% 5% 1% 1% 1% 0% 2% 4% 6% 8% 10% 12% 14% 16% Q1 2017 Q2 2017 Q3 2017 Aged Inventory (361+ Days) as a % of Total Inventory CSH Dom. FCFS Dom. LatAm
Slide 9: Admin Synergies Tracking (Pro Forma TTM Basis)
ADMIN SYNERGIES TRACKING (PRO FORMA TTM BASIS) INCLUDES DEPRECIATION, AMORTIZATION ($/millions) 9 $161 $151 $140 $132 $124 $120 $66 $62 $60 $57 $57 $54 $227 $213 $200 $189 $181 $174 $239 $- $25 $50 $75 $100 $125 $150 $175 $200 $225 $250 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017 Projected Projected Ful
Slide 10: Administrative Headcount Reductions
ADMINISTRATIVE HEADCOUNT REDUCTIONS 10 383 250 236 237 204 281 265 210 206 194 664 515 446 443 398 0 100 200 300 400 500 600 700 Apr. 30 2016 Dec. 31 2016 Jun. 30 2017 Sep.30 2017 Projected Dec. 31 2017 Fort Worth Corporate Office Field Support 1Field Support includes internal audit, collections and
Slide 11: Latin America Update
LATIN AMERICA UPDATE MEXICO, GUATEMALA, EL SALVADOR AND COLOMBIA
Slide 12: Q3 LatAm Segment Results
Q3 LATAM SEGMENT RESULTS 12 $129 $123 $103 23% 22% 17% 14% 10% 11% 0% 5% 10% 15% 20% 25% $0 $20 $40 $60 $80 $100 $120 $140 Thou sand s Current Year (CY) Constant Currency Prior Year (PY) YoY CY CY YoY Constant Currency PY YoY Constant Currency Total Revenue ($/millions) Same-Store PLB1 Same-Store Co
Slide 13: LatAm Same-Store Core Revenue Growth Rate, Constant Currency
7% 17% 4% 10% 14% 9% 11% 19% 0%0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Core Revenue Pawn Fees Retail Sales LATAM SAME-STORE CORE REVENUE YEAR-OVER-YEAR GROWTH RATE, CONSTANT CURRENCY 13
Slide 14: ANTAD Historical Same-Store Sales Growth by Retailer Type
ANTAD1 HISTORICAL SAME-STORE SALES GROWTH BY RETAILER TYPE 14 1 ANTAD (Asociación Nacional de Tiendas de Autoservicio y Departamentales) is the National Retailers Association of Mexico. Source: ANTAD -2.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 2011 2012 2013 2014 2015 2016 YoY Retai
Slide 15: Latin America Locations
LATIN AMERICA LOCATIONS 15 Latin America Locations Ratios 96% 3% 1% Mexico Guatemala El Salvador By Country 69% 31% New Store Opening Acquisition By Store Type Note: As of 9/30/2017
Slide 16: Latin America Store Growth
LATIN AMERICA STORE GROWTH 16 597 674 737 955 989 0 200 400 600 800 1,000 1,200 2013 2014 2015 2016 YTD-Sep 2017 Latin American Locations, End of Period
Slide 17: Maxi Prenda Update
MAXI PRENDA UPDATE 17 • Completed acquisition in early 2016 • Store counts at acquisition date Mexico 166 Guatemala 32 El Salvador 13 3 stores closed since acquisition • Most locations were smaller footprint stores than traditional FirstCash model • Q3 results (constant currency basis) Sam
Slide 18: LatAm Store Metrics
LATAM STORE METRICS 18 1Results for the trailing 12 months ended 9/30/17 2As of 9/30/17 Maxi Prenda Cash America Mexico First Cash 2012 Vintage Revenue per Store1 (fx Rate: 1 USD = 19 MXN) $370,000 $460,000 $480,000 YoY Loan Balance Growth Rate2 19% 11% 13% Retail Sales Margin1 34% 36% 37%
Slide 19: Mexican Pawn Industry Overview
MEXICAN PAWN INDUSTRY OVERVIEW (BASED ON PROFECO REGISTRATION DATA) 19 • Approximately 7,000 total registered stores • First Cash has the most locations (989) representing approximately 15% of the total • Non-profit foundations such as Monte de Piedad, Luz Savinon and Donde have approximately 850 lo
Slide 20: New Market Update: Rationale for Colombia Expansion
NEW MARKET UPDATE RATIONAL FOR COLOMBIA EXPANSION 20 FRENCH GUIANA BRAZIL ARGENTINA CHILE URUGUAY VENEZUELA COLOMBIA1 SURINAME ECUADOR PERU BOLIVIA PARAGUAY GUYANA Note: 1Early 2018 planned market entry Population mid-2017 (millions) mid-2030 mid-2050 Brazil 207.9 223.9 231.1 Colombia 49.3 55.4 61.5
Slide 21: Cash Flow and Credit Metrics
CELULARES CompPuraporas eae ed] CASH FLOW AND CREDIT METRICS FirstCash
Slide 22: Adjusted Free Cash Flow
ADJUSTED FREE CASH FLOW ($/millions) 22 $71 $68 $68 $195 $0 $25 $50 $75 $100 $125 $150 $175 $200 2014 2015 2016 TTM 9/30/2017 Adj. Free Cash Flow1 1Adjusted Free Cash Flow is a non-GAAP number. See appendix for reconciliation to Adjusted Free Cash Flow from Operating Activities.
Slide 23: Leverage Profile
LEVERAGE PROFILE ($/millions) 23 $200 $200 $200 $300 $300 $360 $260 $137 $97 $140 $560 $460 $337 $397 $440 $0 $100 $200 $300 $400 $500 $600 9/30/2016 12/31/2016 3/31/2017 6/30/2017 9/30/2017 FCFS 2021 Sr. Notes FCFS 2024 Sr. Notes FCFS Line of Credit Net Debt Net Debt Ratio (Net Debt/TTM Adjusted EB
Slide 24: Financial Covenants – Line of Credit
FINANCIAL COVENANTS – LINE OF CREDIT 24 1.67 1.78 1.79 1.91 1.89 1.25 0.00 0.50 1.00 1.50 2.00 2.50 Fixed Charge Coverage Ratio Fixed Charge Ratio No Less Than 2.15 1.75 1.24 1.44 1.61 2.75 0.00 0.50 1.00 1.50 2.00 2.50 3.00 Total Leverage Ratio TTL Leverage Ratio No Greater Than 2.93 2.36 1.60 1.89
Slide 25: Shareholder Payout as % of Net Income
SHAREHOLDER PAYOUT AS % OF NET INCOME ($/millions) 71% 76% 46% 52% 66% 33% 90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 20,000 40,000 60,000 80,000 100,000 120,000 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 TTM Sep-17 Net Income (GAAP) Shareholder Payout Payout Ratio 25
Slide 26: Over $1.1 Billion in Cumulative Investments & Shareholder Payouts
OVER $1.1 BILLION IN CUMULATIVE INVESTMENTS & SHAREHOLDER PAYOUTS 26 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3-17 $ M ill io ns Stock Repurchases & Dividends Acquisitions Capital Expenditures Outstanding D
Slide 27: Appendix
APPENDIX FirstCash
Slide 28: Non-GAAP Financial Information
NON-GAAP FINANCIAL INFORMATION 28 The Company uses certain financial calculations, such as adjusted net income, adjusted net income per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow and constant currency results (collectively "Non-GAAP Measures"), which are not considered m
Slide 29: Reconciliation of Net Income to EBITDA and Adjusted EBITDA
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA ($/MILLIONS) 29 Year Ended December 31, TTM 9/30/2017 2016 2015 2014 Net Income $112,850 $60,127 $60,710 $85,166 Income taxes 58,544 33,320 26,971 31,542 Depreciation and amortization(1) 57,504 31,865 17,446 17,476 Interest expense 24,288 20
Slide 30: Reconciliation of Cash Flow from Operating Activities to Free Cash Flow
RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW & ADJUSTED FREE CASH FLOW ($/millions) 30 2013 2014 2015 2016 2017 2016 Cash flow from operating activities $ 106,718 $ 97,679 $ 92,749 $ 96,854 $ 205,226 $ 68,101 ash flow from investing activities: Loan receivables, net of cas