Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — Q2 2023 Earnings Presentation
32 slides from Firstcash's earnings presentation, Jul 31, 2023
Slide 1: Investor Presentation August 2023
P . 1F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS Investor Presentation August 2023 EXHIBIT 99.1
Slide 2: Forward-looking statements
P . 2F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS THIS QUARTERLY PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS ABOUT THE BUSINESS, FINANCIAL CONDITION, OUTLOOK AND PROSPECTS OF FIRSTCASH HOLDINGS, INC. AND ITS WHOLLY OWNED SUBSIDIARIES (TOGETHER, THE “COMPANY”). FORWARD-LOOKING STATEM
Slide 3: Leading operator of pawn stores and retail POS payment solutions
P . 3F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS WE ARE THE LEADING OPERATOR OF PAWN STORES IN THE U.S. AND LATIN AMERICA, AND WITH THE ACQUISITION OF AMERICAN FIRST FINANCE, ARE A LEADING PROVIDER OF RETAIL POINT-OF-SALE (“POS”) PAYMENT SOLUTIONS FOCUSED ON SERVING CREDIT-CONSTRAINED C
Slide 4: Pawn Operations
P . 4F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS PAWN OPERATIONS
Slide 5: Pawn Product Overview
P . 5F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSPAWN PRODUCT OVERVIEW PAWN LOANS ARE CUSTOMER FRIENDLY ‒ NON-RECOURSE LOANS ‒ NO CREDIT CHECK OR BANK ACCOUNT REQUIRED ‒ NO COLLECTION ACTIVITY OR REPORTING TO CREDIT BUREAUS PAWN LOANS ARE SMALL AND AFFORDABLE ‒ TYPICALLY, 30-TO-60-DAY TE
Slide 6: Extensive Data Analytics Deliver Best in Class Performance
P . 6F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSExtensive Data Analytics Deliver Best in Class Performance DATA CONTINUALLY CAPTURED AND REFRESHED FROM MORE THAN 12 MILLION ANNUAL RESALE TRANSACTIONS IN OVER 2,900 STORES ‒ MERCHANDISE SALES DATABASE PROVIDES REAL-TIME PRICING, TURNOVER
Slide 7: Pawn Performs Well Across Economic Cycles
P . 7F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS $3.3 $3.9 $4.3 $4.8 $4.9 $5.2 $5.3 $5.2 $5.2 $5.4 $5.9 $6.0 $6.0 $5.0 $5.3 $5.7 $5.8 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q2 2023 Financial Crisis COVID $551 $608 $
Slide 8: Pawn Collateral and Inventory Composition
P . 8F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSPawn Collateral and Inventory Composition U.S. PAWN LATAM PAWN CONSOLIDATED PAWN 34% 58%69% 47%31%56% 47%12% 23% 51%14% 27% PAWN COLLATERAL PAWN COLLATERAL PAWN COLLATERAL INVENTORY INVENTORY INVENTORY As of 06/30/2023 JEWELRY ELECTRONICS
Slide 9: FirstCash Pawn Segment History
P . 9F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS 66 123 282 595 906 2,085 2,679 2,889 1988 1989 – 1996 1997 – 2001 2002 – 2005 2006 - 2010 2011 – 2013 2014 – 2016 2017 – 2019 2020 – Q2 2023 FirstCash Pawn Segment History Primary long-term business plan is to continue growing pawn revenu
Slide 10: ESG: Sustainability is Core to FirstCash
P . 1 0F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS PAWNSHOPS PIONEERED CIRCULAR ECONOMY ‒ NEIGHBORHOOD-BASED STORES CONTRIBUTE TO THE MODERN “CIRCULAR ECONOMY” EXTENDING LIFE CYCLE OF CONSUMER PRODUCTS – INVENTORY IS PRE-OWNED MERCHANDISE WHICH IS SOURCED AND THEN RECYCLED WITHIN EACH S
Slide 11: ESG: Commitment to Social Responsibility
P . 1 1F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS EMPLOYEE EMPOWERMENT ‒ EMPLOYEE-TRAINING PROGRAMS THAT PROMOTE CUSTOMER SERVICE AND PROFESSIONALISM ‒ SPECIALIZED SKILL TRAINING PROGRAMS IN LENDING PRACTICES, MERCHANDISE VALUATION AND REGULATORY COMPLIANCE ‒ PROFIT SHARING PROGRAMS WH
Slide 12: Domestic Pawn Segment
P . 1 2F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS 1,101 FULL-SERVICE 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 OPPO
Slide 13: U.S. Pawn Segment — Over 1,100 Locations
P . 1 3F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSU.S. Pawn Segment — Over 1,100 Locations 1,101 Retail Pawn Store Locations Across 25 U.S. States and the District of Columbia NV AK WA LA UT NE AZ CO TX MO OK IL IN OH GAAL FL KY TN NC VA WY SC 29 29 27 457 6 1 6 25 1 19 25 29 23 22 61 5
Slide 14: Q2 2023 U.S. Pawn Segment Highlights
F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS P . 1 4 $299 $313 $171 $187 $0 $100 $200 $300 $400 $500 Q2 2022 Q2 2023 Q2 2022 Q2 2023 REVENUE NET REVENUE RETAIL PAWN FEES SCRAP Q2 2023 U.S. Pawn Segment Highlights — $ in Millions +5% +9% $158 $204 $271 $291 $0 $100 $200 $300 $400 Q 2 Q 3
Slide 15: Latin America Pawn Segment
P . 1 5F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS 1,788 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 AND DE NOVO EXPANSION o RUNWAY FOR CONTINUED
Slide 16: FirstCash LatAm Growth Store Count and Net Revenue
P . 1 6F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSFirstCash LatAm Growth Store Count and Net Revenue — $ in Millions 607 647 690 707 795 864 922 963 984 130 308 309 672 828 838 822 808 804 737 955 999 1,379 1,623 1,702 1,744 1,771 1,788 0 600 1,200 1,800 2,400 2015 2016 2017 2018 2019 2
Slide 17: Q2 2023 LatAm Pawn Segment Highlights
F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS P . 1 7 $157 $192 $86 $102 $0 $50 $100 $150 $200 $250 Q2 2022 Q2 2023 Q2 2022 Q2 2023 REVENUE NET REVENUE RETAIL PAWN FEES SCRAP Q2 2023 LatAm Pawn Segment Highlights — All in U.S $ Millions +22% +19% $72 $108 $114 $135 $0.0 $40.0 $80.0 $120.0
Slide 18: Retail POS Payment Solutions Operations
P . 1 8F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSRETAIL POS PAYMENT SOLUTIONS OPERATIONS
Slide 19: AFF Acquisition Expands Product Offerings
P . 1 9F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSAFF Acquisition Expands Product Offerings Enhances FirstCash’s Core Pawn Business SIGNIFICANTLY DIVERSIFYING FIRSTCASH’S BUSINESS AND PROVIDING A NEW SOURCE OF REVENUE GROWTH 3 PROVIDES PRODUCT AND REVENUE DIVERSIFICATION UTILIZING TECHN
Slide 20: Retail POS Payment Solution Overview
P . 2 0F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS 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 PAYMENT SOLUTIONS FOR ALL 50 STATES LEASE-TO-OWN BANK LOANSRETAIL INSTALLMENT A
Slide 21: AFF POS Payment Solutions Segment Highlights
F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS P . 2 1 GROSS TRANSACTION VOLUME $206 $256 Q2 2022 Q2 2023 Q2 2023 AFF POS Payment Solutions Segment Highlights — $ in Millions DOOR COUNT 7,600 10,500 Q2 2022 Q2 2023 $203 $248 Q2 2022 Q2 2023 +38% +24% +22% REVENUE GROWTH ‒ SEGMENT REVENUES
Slide 22: Financial Highlights
P . 2 2F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS FINANCIAL HIGHLIGHTS
Slide 23: Consolidated Operating Highlights
P . 2 3F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS $3.81 $2.56 $3.04 $5.36 $4.99 $3.89 $3.01 $3.94 $5.19 $5.39 $0.00 $1.20 $2.40 $3.60 $4.80 $6.00 2019 2020 2021 2022 TTM Q2 2023 EPS ADJUSTED EPS 1 $165 $107 $125 $253 $232 $168 $125 $161 $246 $251 $0 $60 $120 $180 $240 $300 2019 2020 20
Slide 24: Cash Flows Drive Reduction in Leverage Ratio
P . 2 4F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSCash Flows Drive Reduction in Leverage Ratio — $ in Millions, Except per Share Amounts 1 Non-GAAP financial measure. See reconciliation of non-GAAP financial measures elsewhere in this presentation 2 Adjusted EBITDA, which is a component
Slide 25: Cash Dividends & Share Repurchases
P . 2 5F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS As of 06/30/2023 Cash Dividends & Share Repurchases $0.125 $0.19 $0.22 $0.25 $0.27 $0.27 $0.30 $0.33 $0.125 $0.19 $0.22 $0.25 $0.27 $0.30 $0.30 $0.33 $0.125 $0.19 $0.22 $0.25 $0.27 $0.30 $0.33 $0.35 $0.19 $0.20 $0.25 $0.27 $0.27 $0.30 $
Slide 26: Growth Investments & Shareholder Payouts
P . 2 6F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS As of 06/30/2023 Growth Investments & Shareholder Payouts Since 2009 — $ in Millions $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 CUMULATIVE TOTAL $3.5 BILLION $789 $1,461 $1,218 STOCK REPURCHASES & DIVIDENDS ‒ 17 MILLION SHARES RE
Slide 27: Pawn Focused Business Model
P . 2 7F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS 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 STR
Slide 28: Financial Appendix
P . 2 8F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS FINANCIAL APPENDIX
Slide 29: Non-GAAP Financial Information
P . 2 9F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSNon-GAAP Financial Information Please reference the Form 10-Q filed on 07/31/2023 for further explanation THE COMPANY USES CERTAIN FINANCIAL CALCULATIONS SUCH AS ADJUSTED NET INCOME, ADJUSTED DILUTED EARNINGS PER SHARE, EBITDA, ADJUSTED
Slide 30: Adjusted Net Income and EPS reconciliation
P . 3 0F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS Y/E 2019 Y/E 2020 Y/E 2021 Y/E2022 TTM Q2 2023 DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE DOLLARS PER SHARE Net Income and Diluted Earnings per Share, as Reported $164,618 $3.81 $106,579 $2.56 $124,909 $3.04
Slide 31: Reconciliations of Non-GAAP Financial Measures to GAAP
P . 3 1F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFSReconciliations of Non-GAAP Financial Measures to GAAP Financial Measures Y/E Y/E Y/E Y/E TTM 2019 2020 2021 2022 Q2 2023 Net Income $164,618 $106,579 $124,909 $253,495 $231,950 Income Taxes 59,993 37,120 41,593 70,138 68,788 Depreciatio
Slide 32: Get in Touch With Us
P . 3 2F I R S T C A S H H O L D I N G S , I N C . NASDAQ: FCFS 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 NASDAQ: FCFS