Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Investor Presentation (August 2021)
34 slides from Firstcash's investor presentation, Aug 3, 2021
Slide 1: FirstCash Presentation July 2021
presentation JULY 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 2,800 RETAIL PAWN LOCATIONS AND 16,000 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: Increasing Dividend Creating Growth and Shareholder Value
FIRSTCASH INVESTOR RELATIONS 4 $93 $275 $114 $107 $38 $93 $368 $482 $588 $626 $0 $100 $200 $300 $400 $500 $600 $700 2017 2018 2019 2020 YTD 2021 Cumulative Current Year Annual dividend per share INCREASING DIVIDEND CREATING GROWTH AND SHAREHOLDER VALUE 2,111 2,473 2,679 2,748 2,804 0 500 1,000 1,500
Slide 5: FirstCash History
FIRSTCASH INVESTOR RELATIONS 5 66 123 282 595 906 2,085 2,473 2,748 2,804 1988 1989 - 1996 1997 - 2001 2002 - 2005 2006 - 2010 2011 - 2013 2014 - 2016 2017 - 2019 2020 YTD 2021 FIRSTCASH HISTORY FIRST ACQUIRED STORE SUITLAND, MD USA FIRST STORE 1988 HALTOM CITY, TX USA 100+ STORES IN MEXICO OVER 260
Slide 6: Unbanked and subprime consumers quote
“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 $80 $209 $0 $50 $100 $150 $200 $250 LATAM U.S. Non-Recourse 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 LO
Slide 8: Diversified Revenue Stream
FIRSTCASH INVESTOR RELATIONS 8 DIVERSIFIED REVENUE STREAM Retail Sales and Pawn Lending PAWN FEES 28% RETAIL SALES 66% SCRAP JEWELRY SALES 5% PAWN FEES 49% SCRAP JEWELRY GROSS PROFIT 2% RETAIL GROSS PROFIT 49% $1.5B TOTAL REVENUE $0.9B NET REVENUE TTM results as of 06/30/2021
Slide 9: Pawn Collateral and Inventory Composition
FIRSTCASH INVESTOR RELATIONS 9 PAWN COLLATERAL AND INVENTORY COMPOSITION JEWELRY ELECTRONICS TOOLS SPORTING GOODS MUSICAL INSTRUMENTS OTHER PAWN COLLATERAL INVENTORY U.S. SEGMENT PAWN COLLATERAL INVENTORY LATAM SEGMENT PAWN COLLATERAL INVENTORY CONSOLIDATED 65% 33% 54% 15% 27%50% 51% 36% 46% 11% 24%
Slide 10: ESG: Sustainability Is Core to FirstCash
FIRSTCASH INVESTOR RELATIONS 10 ESG: SUSTAINABILITY IS CORE TO FIRSTCASH REPLACING TAKE MAKE DISPOSE WITH BUY USE RETURN NEIGHBORHOOD-BASED STORES CONTRIBUTE TO THE MODERN “CIRCULAR ECONOMY” PAWNSHOPS PIONEERED CIRCULAR ECONOMY INVENTORY IS PRE-OWNED MERCHANDISE WHICH IS SOURCED AND THEN RECY
Slide 11: ESG: Commitment to 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 ESG: COMMITMENT TO SOCIAL RESPONSIBILITY EMPLOYEE EMPOWERMENT — EMPLOYEE-TRAINING PROGRAMS THAT PROMOTE CUST
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 $275 $368 $485 $573 $666 $803 $725 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 2015 2016 2017 2018 2019 2020 YTD Q2 2021 Total Revenue, USD $ CC Revenue, 2015 MXN @ 15.85 REVENUE GROWTH
Slide 14: Lending Trends – Latin America
FIRSTCASH INVESTOR RELATIONS 14 $2.1 $1.5 $2.0 $2.0 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 Q 1 Q 2 Q 3 Q 4 20 19 Q 1 Q 2 Q 3 Q 4 20 20 Q 1 Q 2 08 /0 1/ 21 90% 66% 83% 87% 86% 94% 94% 0% 20% 40% 60% 80% 100% 120% 03 /0 1/ 20 3/ 15 3/ 29 4/ 12 4/ 26 5/ 10 5/ 24 6/ 7 6/ 21 7/ 5 7/ 19 8/ 2 8/ 16 8/ 30 9/ 13 9/ 2
Slide 15: Q2 2021 LATAM Segment Highlights
FIRSTCASH INVESTOR RELATIONS 15 Q2 2021 LATAM SEGMENT HIGHLIGHTS RETAIL SALES MARGIN AND SEGMENT PROFIT MARGIN Q2 2021 SEGMENT RESULTS 196% 185% 178% 193% 200% 160% 180% 200% 220% $0 $100 $200 $300 $400 2017 2018 2019 2020 TTM Q2 2021 Pawn Fees Retail GP Scrap GP GP Return on Earning Assets 35% 35%
Slide 16: Proven New Store Opening Process and Rapid Payback Model
FIRSTCASH INVESTOR RELATIONS 16 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 17: Mexico Consumer Economy
FIRSTCASH INVESTOR RELATIONS 17 MEXICO CONSUMER ECONOMY $0 $10 $20 $30 $40 $50 56% 22% 67% 48% 41% 56% 21% 65% 49% 40% 0% 20% 40% 60% 80% Mexico Chile Peru Colombia Brazil Pre-Pandemic January 2021 Data NO FORMAL CREDIT 69% FORMAL CREDIT 31% MEXICO CONSUMER CREDIT PENETRATION SOURCES: INEGI MEXICO E
Slide 18: Overview United States
OVERVIEW UNITED STATES OVER 1,000 U.S. LOCATIONS IN 24 STATES AND THE DISTRICT OF COLUMBIA o OPERATIONS FOCUSED IN STATES WITH: – GROWING POPULATIONS – FAVORABLE DEMOGRAPHICS – STABLE REGULATIONS o SIGNIFICANT UNDERBANKED DEMOGRAPHICS o CONTINUED OPPORTUNITIES FOR ACQUISITIONS IN EXISTING MARKETS –
Slide 19: U.S. Operations — Over 1,000 Locations
FIRSTCASH INVESTOR RELATIONS 19 U.S. OPERATIONS — OVER 1,000 LOCATIONS 27 27 22 28 2018 2019 2020 YTD 2021 U.S. ACQUIRED STORES BY YEAR NV AK WA LA UT NE AZ CO TX MO OK IL IN OH GAAL FL KY TN NC VA WY SC 31 27 27 450 6 1 6 28 1 18 25 26 23 23 63 50 438 75 50 24 6 28 MD 29 DC 3 FORT WORTH, TX FIRSTCA
Slide 20: Lending Trends – United States
FIRSTCASH INVESTOR RELATIONS 20 U.S. TOTAL PAWN RECEIVABLES ($ IN MILLIONS) $262 $158 $204 $220 $0 $50 $100 $150 $200 $250 $300 Q 1 Q 2 Q 3 Q 4 20 19 Q 1 Q 2 Q 3 Q 4 20 20 Q 1 Q 2 08 /0 1/ 21 85% 62% 82% 85% 77% 86% 90% 0% 20% 40% 60% 80% 100% 120% 03 /0 1/ 20 3/ 15 3/ 29 4/ 12 4/ 26 5/ 10 5/ 24 6/
Slide 21: Q2 2021 U.S. Segment Highlights
FIRSTCASH INVESTOR RELATIONS 21 Q2 2021 U.S SEGMENT HIGHLIGHTS RETAIL SALES MARGIN AND SEGMENT PROFIT MARGIN Q2 2021 SEGMENT RESULTS 122% 138% 148% 174% 186% 0% 50% 100% 150% 200% $0 $200 $400 $600 $800 2017 2018 2019 2020 TTM Q2 2021 Pawn Fees Retail GP Scrap GP GP Return on Earning Assets 37% 38%
Slide 22: Stable Regulatory Climate for Pawn
FIRSTCASH INVESTOR RELATIONS 22 STABLE REGULATORY CLIMATE FOR PAWN o PAWN LOANS ARE DIFFERENT FROM TRADITIONAL CONSUMER LOAN PRODUCTS AND NOT SUBJECT TO THE CFPB SMALL DOLLAR LOAN RULES BECAUSE THEY: — ARE COLLATERALIZED WITH A TANGIBLE ASSET — ARE NON-RECOURSE LOANS — HAVE SIGNIFICANTLY SMALLER AVE
Slide 23: Financial Highlights
FIRSTCASH INVESTOR RELATIONS 23 FINANCIAL HIGHLIGHTS MERIDA, YUCATAN MEXICO
Slide 24: Operating Results
FIRSTCASH INVESTOR RELATIONS 24 OPERATING RESULTS $35 $54 $33 $26 $15 $33 $34 $28 $0 $20 $40 $60 Q3 2020 Q4 2020 Q1 2021 Q2 2021 EBITDA1NET INCOME $ in Millions, Except per Share Amounts DILUTED EARNINGS PER SHARE $36 $54 $40 $26$24 $35 $35 $29 $0 $20 $40 $60 Q3 2020 Q4 2020 Q1 2021 Q2 2021 $68 $90
Slide 25: Cash Flow and Free Cash Flow
FIRSTCASH INVESTOR RELATIONS 25 $220 $243 $232 $222 $193 $235 $218 $222 $292 $75 $0 $50 $100 $150 $200 $250 $300 $350 2017 2018 2019 2020 TTM 6/30/2021 Cash Flow from Operating Activities Free Cash Flow CASH FLOW AND FREE CASH FLOW 1 Non-GAAP financial measure. See reconciliation of non-GAAP financi
Slide 26: Cash Dividend History
FIRSTCASH INVESTOR RELATIONS 26 CASH DIVIDEND HISTORY $93 $275 $114 $107 $38 $93 $368 $482 $588 $626 46.9 43.6 42.3 41.0 41.0 0.0 5.0 10.0 15.0 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 YTD 2021 SH AR ES O U TS TA N DI N G (M IL LI
Slide 27: Growth Investments & Shareholder Payouts
FIRSTCASH INVESTOR RELATIONS 27 GROWTH INVESTMENTS & SHAREHOLDER PAYOUTS The Last 10+ Years (since 2009) — $ in Millions $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 CUMULATIVE TOTAL $2.3 BILLION $536 $1,075 $646 STOCK REPURCHASES & DIVIDENDS ‒ 13,437,242 SPLIT-ADJUSTED SHARES
Slide 28: Investment Recap
FIRSTCASH INVESTOR RELATIONS 28 INVESTMENT RECAP PAWN FOCUSED BUSINESS MODEL ‒ SMALL SECURED PAWN LOANS TO UNBANKED AND UNDERBANKED CONSUMERS WITH LIMITED OR NO ACCESS TO TRADITIONAL CREDIT PRODUCTS‒ DIVERSIFIED LENDING AND RETAIL MODEL IS A SIGNIFICANT COMPETITIVE ADVANTAGE WITH STRONG MARGINS AND
Slide 29: Appendix
FIRSTCASH INVESTOR RELATIONS 29 APPENDIX CORPUS CHRISTI, TEXAS USA
Slide 30: Non-GAAP Financial Information
FIRSTCASH INVESTOR RELATIONS 30 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 31: Reconciliations of Non-GAAP Financial Measures to GAAP
FIRSTCASH INVESTOR RELATIONS 31 RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES Reconciliation of Cash Flow From Operating Activities to Free Cash Flow and Adjusted Free Cash Flow ADJUSTED FREE CASH FLOW YEAR ENDED DECEMBER 31, TRAILING TWELVE ENDED JUNE 30, $ IN MILLIONS 2
Slide 32: Reconciliations of Non-GAAP Financial Measures (Continued)
FIRSTCASH INVESTOR RELATIONS 32 RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 $ IN MILLIONS DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SH
Slide 33: Constant Currency
FIRSTCASH INVESTOR RELATIONS 33 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 34: 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 34