Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Q2 2022 Earnings Presentation
38 slides from Firstcash's earnings presentation, Aug 5, 2022
Slide 1: Investor Presentation — August 2022
INVESTOR PRESENTATION — AUGUST 2022 NASDAQ: FCFS FORT WORTH, TEXAS USA 1 — FIRSTCASH HOLDINGS INC. EXHIBIT 99.1
Slide 2: Forward-Looking Statements
— FIRSTCASH HOLDINGS, INC. 2 THIS QUARTERLY PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS ABOUT THE BUSINESS, FINANCIAL CONDITION AND PROSPECTS OF FIRSTCASH HOLDINGS, INC. AND ITS WHOLLY OWNED SUBSIDIARIES (TOGETHER, THE “COMPANY”). FORWARD-LOOKING STATEMENTS, AS THAT TERM IS DEFINED IN THE PRIVA
Slide 3: Leading operator of pawn stores and POS payment solutions provider
U.S. PAWN SEGMENT OPERATIONS IN 25 STATES AND THE DISTRICT OF COLUMBIA LATIN AMERICA PAWN SEGMENT OPERATIONS IN MEXICO, GUATEMALA, COLOMBIA AND EL SALVADOR PAWN OPERATIONS REPRESENT APPROXIMATELY 80% OF SEGMENT EARNINGS Pawn Operations Segment Income 80% 20% PAWN RETAIL POS PAYMENT SOLUTIO
Slide 4: FirstCash's Journey
— FIRSTCASH HOLDINGS, INC. 4 1988 — 2016 LOOKING AHEADTODAY2016 — 2021 FirstCash’s Journey MERGER OF FIRST CASH AND CASH AMERICA TO CREATE THE LARGEST OPERATOR OF RETAIL PAWN STORES IN THE U.S. AND LATAM MERGER ADDED OVER 800 U.S. LOCATIONS SINCE MERGER, ADDED OVER 1,000 ADDITIONAL STORES ACROSS
Slide 5: Pawn Operations
PAWN OPERATIONS NASDAQ: FCFS 5 — FIRSTCASH HOLDINGS, INC.
Slide 6: What Are Pawn Stores?
— FIRSTCASH HOLDINGS, INC. What Are Pawn Stores? PAWN STORES ARE NEIGHBORHOOD-BASED RETAIL LOCATIONS THAT BUY AND SELL PRE- OWNED CONSUMER PRODUCTS SUCH AS JEWELRY, ELECTRONICS, TOOLS, APPLIANCES, SPORTING GOODS AND MUSICAL INSTRUMENTS PAWN STORES ALSO PROVIDE A QUICK AND CONVENIENT SOURCE OF SMAL
Slide 7: Pawn Overview
— FIRSTCASH HOLDINGS, INC. 7 Pawn Overview $80 $222 $0 $50 $100 $150 $200 $250 LATAM U.S. TYPICALLY 30-TO-60-DAY TERM AVERAGE LOAN SIZE: As of 06/30/2022 Pawn Loans are Small and Affordable with a Short Duration NON-RECOURSE LOANS FULLY COLLATERALIZED WITH PERSONAL PROPERTY COLLATERAL HELD I
Slide 8: Pawn Business Has Historically Performed Well Across Most Economic Cycles
8 Pawn Business Has Historically Performed Well Across Most Economic Cycles PAWN RECEIVABLES ARE FULLY COLLATERALIZED AND NOT SUBJECT TO CONSUMER CREDIT RISK CREDIT TIGHTENING BY UNSECURED LENDERS DRIVES INCREASED DEMAND FOR PAWN DURING THE FINANCIAL CRISIS, LEGACY FIRST CASH STORES IN THE U.S. SAW
Slide 9: Pawn Collateral and Inventory Composition
— FIRSTCASH HOLDINGS, INC. 9 JEWELRY ELECTRONICS TOOLS SPORTING GOODS MUSICAL INSTRUMENTS OTHER PAWN COLLATERAL INVENTORY U.S. PAWN PAWN COLLATERAL INVENTORY LATAM PAWN PAWN COLLATERAL INVENTORY CONSOLIDATED PAWN 65% 31% 55% 15% 25%51% 55% 30% 48% 17% 27%53% As of 06/30/2022 Pawn Collateral and Inve
Slide 10: FirstCash Pawn Segment History
— FIRSTCASH HOLDINGS, INC. 66 123 282 595 906 2,085 2,679 2,834 1988 1989 – 1996 1997 – 2001 2002 – 2005 2006 - 2010 2011 – 2013 2014 – 2016 2017 – 2019 2020 – Q2 2022 10 FIRST ACQUIRED STORE SUITLAND, MD USA FIRST STORE 1988 HALTOM CITY, TX USA 100+ STORES IN MEXICO OVER 260 DE NOVO STORES OPENINGS
Slide 11: ESG: Sustainability is Core to FirstCash
— FIRSTCASH HOLDINGS, INC. 11 — 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 RECYCLED WITHIN EACH STORE’S GEOGRAPHIC NEIGHB
Slide 12: ESG: Commitment to Social Responsibility
— FIRSTCASH HOLDINGS, INC. 12 CUSTOMER AND EMPLOYEE PROTECTIONS — STRICT COVID-19 SAFETY PROTOCOLS — ROBUST CONSUMER AND CORPORATE COMPLIANCE PROGRAMS — PRIVACY AND DATA PROTECTION POLICIES EMPLOYEE EMPOWERMENT — EMPLOYEE-TRAINING PROGRAMS THAT PROMOTE CUSTOMER SERVICE AND PROFESSIONALISM — SPECIALI
Slide 13: Domestic Pawn Segment
— FIRSTCASH HOLDINGS, INC. Domestic Pawn Segment 13 SEATTLE, WASHINGTON USA OVER 1,000 U.S. LOCATIONS IN 25 STATES AND THE DISTRICT OF COLUMBIA o OPERATIONS FOCUSED IN STATES WITH: – GROWING POPULATIONS – FAVORABLE DEMOGRAPHICS – STABLE REGULATIONS o SIGNIFICANT UNDERBANKED DEMOGRAPHICS o CONTINUED
Slide 14: U.S. Pawn Segment — Over 1,000 Locations
— FIRSTCASH HOLDINGS, INC. CONTINUED ATTRACTIVE ACQUISITION OPPORTUNITIES — 46 PAWN STORES ACQUIRED IN 2021 — 28 STORES IN TX, 12 IN FL, 3 IN LA, 2 IN MS AND 1 IN AL — 3 PAWN STORES ACQUIRED THROUGH JULY 2022 14 U.S. Pawn Segment — Over 1,000 Locations NV AK WA LA UT NE AZ CO TX MO OK IL IN OH GAAL
Slide 15: Q2 2022 U.S. Pawn Segment Highlights
— FIRSTCASH HOLDINGS, INC. $47 $64 $0 $25 $50 $75 $100 Q2 2021 Q2 2022 SEGMENT CONTRIBUTION TOTAL PAWN RECEIVABLES — ($ IN MILLIONS) 15 $262 $158 $204 $271 $280 $0 $50 $100 $150 $200 $250 $300 Q 2 Q 3 Q 4 20 19 Q 1 Q 2 Q 3 Q 4 20 20 Q 1 Q 2 Q 3 Q 4 20 21 Q 1 Q 2 07 /3 1/ 22 Q2 2022 U.S. Pawn Segment
Slide 16: Q2 2022 U.S. Pawn Segment Highlights: Margins and Returns
— FIRSTCASH HOLDINGS, INC. 16 Retail Sales Margin and Segment Profit Margin Return on Earning Assets Q2 2022 U.S. Pawn Segment Highlights 122% 138% 148% 174% 170% 161% 0% 50% 100% 150% 200% 250% $0 $200 $400 $600 $800 $1,000 2017 2018 2019 2020 2021 TTM Q2 2022 PAWN FEES RETAIL GP SCRAP GP GP RETURN
Slide 17: Latin America Pawn Segment
— FIRSTCASH HOLDINGS, INC. Latin America Pawn Segment — Mexico, Guatemala, Colombia and El Salvador 17 OVER 1,750 LATIN AMERICA LOCATIONS IN FOUR COUNTRIES o LATIN AMERICA CONTINUES TO BE THE SIGNIFICANT STORE GROWTH VEHICLE o SUBSTANTIAL INFRASTRUCTURE AND CASH FLOWS TO ACCOMPLISH NEW ACQUISITIONS
Slide 18: FirstCash LatAm Growth — Net Revenue and Store Count
— FIRSTCASH HOLDINGS, INC. $196 $227 $255 $289 $343 $288 $319 $334 $196 $263 $299 $343 $407 $369 $396 $414 $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2015 2016 2017 2018 2019 2020 2021 TTM Q2 2022 Net Revenue, USD $ CC Net Revenue, 2015 MXN @ 15.85 18 FirstCash LatAm Growth — Net Revenue and Sto
Slide 19: Q2 2022 LatAm Pawn Segment Highlights
— FIRSTCASH HOLDINGS, INC. $143 $157 $78 $86 $0 $25 $50 $75 $100 $125 $150 $175 $200 Q2 2021 Q2 2022 Q2 2021 Q2 2022 REVENUE NET REVENUE PAWN FEES RETAIL SCRAP REVENUE NET REVENUE $2.0 $1.5 $2.0 $2.2 $2.2 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 Q 2 Q 3 Q 4 20 19 Q 1 Q 2 Q 3 Q 4 20 20 Q 1 Q 2 Q 3 Q 4 20 21 Q 1
Slide 20: LatAm Pawn Segment Highlights: Margins and Returns
— FIRSTCASH HOLDINGS, INC. 196% 185% 178% 193% 195% 190% 0% 50% 100% 150% 200% 250% $0 $100 $200 $300 $400 $500 2017 2018 2019 2020 2021 TTM Q2 2022 PAWN FEES RETAIL GP SCRAP GP GP RETURN ON EARNING ASSETS 36% 36% 34% 38% 36% 24% 23% 20% 20% 21% 0% 10% 20% 30% 40% 50% TTM RETAIL SALES MARGIN TTM SEG
Slide 21: Retail POS Payment Solutions Operations
RETAIL POS PAYMENT SOLUTIONS OPERATIONS NASDAQ: FCFS 21 — FIRSTCASH HOLDINGS, INC.
Slide 22: Retail POS Payment Solution Overview
— FIRSTCASH HOLDINGS, INC. CUSTOMERS TAKE ITEMS HOME SAME DAY OR ARRANGE FOR DELIVERY TAKE ITEMS HOME — SAME DAY! AUTO-PAY MANAGED ONLINE BY THE CUSTOMER AUTO-PAYMENTS — PAY AS YOU GO 22 PAYMENT SOLUTIONS FOR ALL 50 STATES LEASE-TO-OWN BANK LOANSRETAIL INSTALLMENT AVAILABLE AT SELECT LEADING RETAILE
Slide 23: Retail POS Payment Solutions
— FIRSTCASH HOLDINGS, INC. Retail POS Payment Solutions RETAIL POS PAYMENT SOLUTIONS BUSINESS LINE PROVIDED BY AFF FOCUSES ON LTO PRODUCTS AND FACILITATING OTHER RETAIL FINANCING PAYMENT OPTIONS ACROSS A LARGE NETWORK OF TRADITIONAL AND E-COMMERCE MERCHANT PARTNERS NATIONWIDE NETWORK OF APPROXIMATE
Slide 24: Expanded Product Offerings Enhance FirstCash's Core Pawn Business
— FIRSTCASH HOLDINGS, INC. 24 Expanded Product Offerings Enhance FirstCash’s Core Pawn Business PROVIDES PRODUCT AND REVENUE DIVERSIFICATION UTILIZING TECHNOLOGY DRIVEN PAYMENT SOLUTIONS ADDING LTO PAYMENT OPTION TO EXISTING PAWN RETAIL PAYMENT OPTIONS POTENTIAL FOR AFF CUSTOMERS TO RETURN LEASED ME
Slide 25: Q2 2022 AFF POS Payment Solutions Segment Highlights
— FIRSTCASH HOLDINGS, INC. 25 Q2 2022 POS Payment Solutions Segment Results — $ IN MILLIONS LTO MERCHANDISE LTO MERCHANDISE FIN. REC. FIN. REC. 7,600 $394 $206 Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2022 DOORS RECEIVABLES OUTSTANDING GROSS TRANSACTION VOLUMEGROSS TRANSACTION VOLUME DOOR COUNT OU
Slide 26: Financial Highlights
FINANCIAL HIGHLIGHTS NASDAQ: FCFS 26 — FIRSTCASH HOLDINGS, INC. EVERETT, WASHINGTON USA
Slide 27: Consolidated Operating Results
— FIRSTCASH HOLDINGS, INC. $165 $107 $125 $177 $168 $125 $161 $206 $0 $50 $100 $150 $200 $250 2019 2020 2021 TTM Q2 2022 Net Income Net Income Adjusted Net Income1 $3.81 $2.56 $3.04 $3.90$3.89 $3.01 $3.94 $4.64 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 2019 2020 2021 TTM Q2 2022 Earnings Per Share EPS Adj
Slide 28: Consolidated Operating Results: EBITDA and Cash Flow
— FIRSTCASH HOLDINGS, INC. $299 $214 $244 $353 $304 $237 $290 $364 $0 $100 $200 $300 $400 2019 2020 2021 TTM Q2 2022 EBITDA EBITDA Adjusted EBITDA 28 Consolidated Operating Results — $ in Millions $232 $222 $223 $336 $0 $50 $100 $150 $200 $250 $300 $350 $400 2019 2020 2021 TTM Q2 2022 Operating Cash
Slide 29: Consolidated Balance Sheet Highlights
— FIRSTCASH HOLDINGS, INC. $2,439 $2,372 $3,836 $3,797 $0 $1,500 $3,000 $4,500 2019 2020 2021 Q2 2022 Total Assets TOTAL ASSETS 29 Consolidated Balance Sheet Highlights — $ in Millions $642 $410 $529 $646 $245 $642 $410 $529 $891 $0 $200 $400 $600 $800 $1,000 Q2 2019 Q2 2020 Q2 2021 Q2 2022 Earning
Slide 30: Cash Dividends & Share Repurchases
— FIRSTCASH HOLDINGS, INC. $0.125 $0.19 $0.22 $0.25 $0.27 $0.27 $0.30 $0.125 $0.19 $0.22 $0.25 $0.27 $0.30 $0.30 $0.125 $0.19 $0.22 $0.25 $0.27 $0.30 $0.33 $0.19 $0.20 $0.25 $0.27 $0.27 $0.30 $0.57 $0.77 $0.91 $1.02 $1.08 $1.17 $1.26 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 2016 2017 2018 2019 2020
Slide 31: Growth Investments & Shareholder Payouts
— FIRSTCASH HOLDINGS, INC. 31 Growth Investments & Shareholder Payouts THE LAST 10+ YEARS (SINCE 2009) — $ IN MILLIONS $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 CUMULATIVE TOTAL $3.1 BILLION $686 $1,229 $1,143 STOCK REPURCHASES & DIVIDENDS ‒ 15 MILLION SHARES REPURCHASED ‒ $263 MILLION IN CUMULATIV
Slide 32: Pawn Focused Business Model and Growth Strategy
— FIRSTCASH HOLDINGS, INC. 32 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 CASH FLOWS ‒ RESIL
Slide 33: Appendix Section
APPENDIX SECTION NASDAQ: FCFS 33 — FIRSTCASH HOLDINGS, INC. TECAMACHALCO, PUEBLA MEXICO
Slide 34: EBITDA and Adjusted EBITDA Reconciliation
— FIRSTCASH HOLDINGS, INC. 34 Y/E Y/E Y/E T12M 2019 2020 2021 Q2 2022 Net Income $164,618 $106,579 $124,909 $176,880 Income Taxes 59,993 37,120 41,593 51,178 Depreciation and Amortization 41,904 42,105 45,906 75,916 Interest Expense 34,035 29,344 32,386 50,425 Interest Income (1,055) (1,540) (696) (
Slide 35: Reconciliations of Non-GAAP Financial Measures to GAAP (cont.)
— FIRSTCASH HOLDINGS, INC. 35 Reconciliations of Non-GAAP Financial Measures to GAAP Financial Measures (cont.) YEAR ENDED DECEMBER 31, T12M 2019 2020 2021 Q2 2022 DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE Net Income and Diluted Earnings per Share, as Reported $164,618
Slide 36: Non-GAAP Financial Measures Definitions
— FIRSTCASH HOLDINGS, INC. 36 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, ADJUSTED RETAIL POS PAYMENT SOLUTIONS SEGMENT METRICS AND CONSTANT CURRENCY RESULTS AS FAC
Slide 37: Constant Currency Results
— FIRSTCASH HOLDINGS, INC. 37 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 BUSINESS OPERATIONS IN LAT
Slide 38: Get In Touch With Us
NASDAQ: FCFS 38 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 HOLDINGS, INC.