Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — First Cash Financial Services — Investor Presentation (February 2008)
29 slides from Firstcash's investor presentation, Feb 19, 2008
Slide 1: Investor Presentation
I N V E S T OR P R E S E N T A T I O N
Slide 2: Safe Harbor Statement
Safe Harbor Statement • Certain statements included in this presentation which are not historical in nature, including statements regarding the Company’s and/or management’s strategies, beliefs, expectations, plans for new stores, projections of earnings and revenues, expected effect of regulatory p
Slide 3: Market Leader in Specialty Consumer Finance
Market Leader in Specialty Consumer Finance First Cash Financial Services • 20-year track record of growth • Product & geographic diversification • Well-defined expansion strategy
Slide 4: First Cash Growth Story
First Cash Growth Story • Pawn – Core competency • Company began in 1988 as pawnshop operator • 96 U.S. stores in 7 states – Expansion into Mexico • First stores opened in 1999 • Over 200 de novo store openings since 2002 • Short-Term Loans – Acquired 35 stores in 1998 – Over 130 de novo store openi
Slide 5: Store Growth
2001 2002 2003 2004 2005 2006 2007 Buy-Here/Pay-Here Dealerships Short-Term Loan Stores Mexico Pawn/STL Stores U.S. Pawn Stores Store Growth
Slide 6: Geographic Diversification
D.C. 21 3 3 5 15 10 2 112 12 182 25 4 1 Locations in: • 13 states in the U.S. • 11 states in Mexico Pawn Stores Pawn Stores with Short- Term Loans/Credit Services Short-Term Loan Stores D.C. Buy-Here/Pay-Here Automotive Dealerships Geographic Diversification
Slide 7: Revenue Mix
Amounts in Millions, as of December 31, 2007 (unaudited) 31% 26% 15% 28% U.S. Pawn Stores Mexico Pawn Stores Short-Term Loan Stores Auto Dealerships Revenue Mix
Slide 8: Gross Profit Mix
As of December 31, 2007, unaudited 35% 30% 23% 12% U.S. Pawn Stores Mexico Pawn Stores Short-Term Loan Stores Auto Dealerships Gross Profit Mix
Slide 9: Pawn Lending
Pawn Lending • Fully-secured consumer loans – Average loan size: $150 in U.S. and $75 in Mexico • Typical collateral: – Gold jewelry – Electronics – Tools • Loans available to both banked and unbanked customers • Monthly term - with service charge of 10% to 20%
Slide 10: Pawn Loan Growth
Pawn Loans Receivable Millions $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 2002 2003 2004 2005 2006 2007 Mexico Pawn U.S. Pawn Pawn Loan Growth • Product demand driven by unbanked or underbanked customers • Both in the U.S. and… • In Mexico, where: – 88% of retail transactions are in cash – An estimated 8
Slide 11: Pawn Retail Metrics
Composition of Retail Inventories Other 10% Gold Jewelry 53% Tools 7% Electronics 30% Pawn Retail Metrics • Typically, 70% of pawn loans are redeemed • Retail inventories primarily acquired via forfeited pawn loan collateral Retail Metrics (12 months ended 12/31/2007) • Total merchandise margins 42%
Slide 12: Short-Term Loan Products
Short-Term Loan Products • Loan size: $100 to $1,000 • Term: 7 to 31 days • Typical service charge per loan: 15% • Proof of employment and active bank account required • Loan secured by personal check held until due date
Slide 13: Short-Term Loan Stores
Short-Term Loan Stores • Store-based lending model – Primarily monoline stores – Plus selected pawn stores & convenience store kiosks • Tightly-focused footprint – Operations in only 6 U.S. states – New stores primarily located in Texas
Slide 14: Short-Term Loan Products Introduced in Mexico
Short-Term Loan Products Introduced in Mexico • CashYa! store format – Short-term loans – Money transfers and exchanges • Both stand-alone stores and side- by-side with pawn stores
Slide 15: Automotive Dealerships
• Based in Northwest Arkansas, near Bentonville • Sixteen dealership locations: – Arkansas (9) – Missouri (2) – Oklahoma (3) – Texas (2) Automotive Dealerships • Auto Master - - founded 1989 – Buy-here/pay here automotive retailer - - used cars – Customer financing available at the dealership - - Au
Slide 16: Auto Master Operations
a Auto Master Operations Centralized Operating Model Centralized Operations Store Level Operations Vehicle Purchasing Retail Sales Vehicle Refurb & Detailing Customer Payments Inventory Management & Pricing Underwriting Collections/Call Center Vehicle Recovery & Dispositions Marketing and Promotion
Slide 17: Financial & Growth Metrics
Financial & Growth Metrics • Operating Results – Track record of consistent growth – Strong profitability metrics • Financial Position – Strong balance sheet – Strong cash flows – Continued investment in new stores
Slide 18: Revenue & EBITDA Growth
EBITDA $0 $10 $20 $30 $40 $50 $60 $70 2002 2003 2004 2005 2006 2007 Millions Revenue $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 2002 2003 2004 2005 2006 2007 Millions Revenue & EBITDA Growth
Slide 19: 2007 Highlights
2007 Highlights • Earnings from continuing operations: – Diluted EPS of $1.00 – Up 14% over 2006 – Seven consecutive years of double-digit EPS growth • Growth highlights: – Revenue up 48%, to $388 million – Same-store revenue up 9% – 78 new stores opened
Slide 20: Earnings Per Share Growth
$0.00 $0.25 $0.50 $0.75 $1.00 $1.25 2002 2003 2004 2005 2006 2007 Earnings Per Share Growth
Slide 21: Balance Sheet
$87 $117 $144 $163 $189 $201 $44 $23 $18 $23 $45 $91 $140 $162 $186 $234 $292 $131 Millions 2002 2003 2004 2005 2006 2007 Assets Liabilities Equity Balance Sheet
Slide 22: Cash Flows Fund Growth
Cash Flows Fund Growth • Store expansion & loan growth funded primarily from operating cash flows • Significant stock repurchases – $32 million during 2007 – $25 million during 2006 • Outstanding debt less than 1x EBITDA
Slide 23: Diversified Growth Strategy
Diversified Growth Strategy • Diversified product lines – Pawn loans & related retail – Short-term consumer loans – Automotive retail & finance • Domestic & international markets – United States – Mexico
Slide 24: Historical Store Openings
New Stores 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 2002 2003 2004 2005 2006 2007 Historical Store Openings
Slide 25: Store Aging: Maturing Stores Will Continue to Drive Growth
209 Total Stores 37% 19% 44% > 5 Years 4-5 Years 0-3 Years Age of Store Store Aging Maturing Stores Will Continue to Drive Growth
Slide 26: Mexico Expansion
Chihuahua Queretaro Aguascalientes Puebla Guanajuato Coahuila Tamaulipas Nuevo Leon Baja California Sonora Durango Jalisco Mexico Expansion • Growing demand for consumer credit • First-mover advantage • Continued growth in existing markets • Significant future opportunities in new markets
Slide 27: 2008 Store Growth Focused in Mexico
2008 Store Growth Focused in Mexico Total store opening target for 2008: 80 Targets by division: – Mexico to 65 – U.S. short-term loan 15 to 20 – Auto Master 1 to 3
Slide 28: Summary
• Well-defined expansion strategy – Diversified growth platform • Multiple products • Multiple geographic markets – Significant headroom for future locations Summary • Industry leader in a growth sector – Diversified product suite – Constant product demand – Strong balance sheet & cash flows
Slide 29: Investor contact information
Investor contact information: • Phone: 817.505.3199 • Email: investorrelations@firstcash.com • Website: www.firstcash.com
First Cash Financial Services — Investor Presentation (February 2008) on 6ix