Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — First Cash Financial Services — Investor Presentation (April 2006)
30 slides from Firstcash's investor presentation, Apr 25, 2006
Slide 1: Investor Presentation - April 2006
OO ie | FIRST (ASH INVESTOR PRESENTATION - APRIL 2006
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 managements strategies, beliefs, expectations, plans for new stores, projections of earnings and revenues, expected effect of regulatory pron
Slide 3: First Cash Overview
First Cash Overview * Leading provider of diversified specialty consumer finance products * Superior earnings performance and financial position * Significant future growth through store expansion : T aa Te} DE EMPE CAS? JOYERIA
Slide 4: Company History
Company History 1988 Founded — 3 pawn stores in Texas Early 90’s Goes public; multi-state pawn store roll-up acquisitions Payday lending acquisitions; introduction of payday product in pawn stores First pawn stores opened in Mexico 2001 to present Expansion through new store openings: US. payday & M
Slide 5: Store Count Growth
Store Count Growth Payday Advance Stores Mexico Pawn Stores wU.S. Pawn Stores 2001 2002 =2003 = 2004 =. 2005 ~=Q12006 FIRST CASH FINANCIAL SERVICES
Slide 6: Geographic Markets & Product Offerings
Geographic Markets & Product Offerings As of March 34, 2006 Locations in: + 11 states in the Us. + 7 states in Pawn stores Pawn stores with payday jadvancefcredit services Payday advance/credit services stores FIRST CASH FINANCIAL SERVICES
Slide 7: Revenue Mix
Millions $120 $100 $80 $60 $40 $20 $0 Revenue Mix Pawn Payday Advance Total 12 Month Revenues: $216 million Pawn Pau Service Fees Payday Advance & Check Cashing & Merchandise Gredkt Services Other Sales Fees FIRST CASH FINANCIAL SERVICES Trailing Revenues Gross Profit
Slide 8: Pawn Loan Product
Pawn Loan Product * Short-term loan secured by pledged personal property - No credit check - No bank account required * Regulations vary by state - typically provide for: — 30 day term - 10% to 20% monthly service fee FIRST CASH FINANCIAL SERVICES
Slide 9: Pawn Customer Demographics
Sc Pawn Customer Demographics First Cash Pawn Loan Growth = * Many un-banked or fice under-banked customers $30 — fay vo Pam BH US Pam * Both in the U.S. and... * In Mexico, where: — 88% of retail transactions are in cash — Anestimated 80% of the population is un-banked FIRST CASH FINANCIAL SERVICES
Slide 10: Pawn-Related Retail Sales
Pawn-Related Retail Sales Composition of Retail Inventories + Retail inventories are primarily cold acquired via forfeited pawn loan Jewelry collateral Electronics oe * Gold jewelry represents 58% of the retail inventory Retail Metrics (wailing 12 Months) * Total merchandise margins 40% « Retail mar
Slide 11: Payday Advance Product
Payday Advance Product * Loansize: $100 to $1,000 © Term: 7 to 31 days * Typical service charge per advance: 15% + Proof of employment and active bank account required — but no credit check + Advance secured by personal check held until due date l Fr FIRST CASH FINANCIAL SERVICES
Slide 12: Payday Advance Regulatory Landscape
Payday Advance Regulatory Landscape FDIC regulations affect only payday lending in other states where “bank moder is used First Cash does net uliize the bank model n any state and is therefore not subject fo FDIC regulations a.¢| States with industry favorable payda advance legislation [Ey Sites wit
Slide 13: Credit Services Product
Or Credit Services Product + In its Texas locations, First Cash has elected to operate as a Credit Services Organization (“CSO”) + AsacCsO, First Cash provides customers access to a short-term loan funded by an independent consumer lending company — Customer pays a fee to CSO for its services: * pro
Slide 14: Superior Performance & Financial Position
Superior Performance & Financial Position * Operating Results Revenues milion — Industry leading $250 performance metrics $200 — Consistent growth — Increasing profit margins °° + Financial Position $100 — Debt-free $50 — Strong cash flows $0 2000 2001 2002 2003 2004 2005
Slide 15: 2006 - First Quarter Highlights
2006 - First Quarter Highlights * Q1 diluted EPS of $0.23 — Up 28% over prior year — Exceeded consensus estimate by $0.02 — 21% consecutive quarter of double-digit EPS growth * Other highlights: — Quarterly revenues up 19%, to $56 million — Netincome of $7.6 million, up 26% — 20 new stores, a record
Slide 16: Earnings Per Share Growth
Earnings Per Share Growth 2006 Estimate: ge" to $0.94 oe $0.76 ma4 a3 ma2 wQi 2001 2002 2003 2004 2005 2006 Reflects two-for-one stock spit effective February 6, 2006 FIRST CASH FINANCIAL SERVICES
Slide 17: usd
70 usd a0 40 30 9120 gut 00 Sep Dec Mar sn Sep Des Mar tn Sep Dec Mar sn Sep Des Mar Jin Sep Dee. Mar Hh ek eR KGeeeee ewww Reffects iwo-for-one stock split effective F ebniary 6, 2006 Forbes 200 Best Small Companies 4 straight years ESB Fortune Small Business 100 2 straight years FIRST CASH FINANCI
Slide 18: 2006 Earnings & Growth Expectations
2006 Earnings & Growth Expectations + Earnings per share forecast — Raised guidance at end of Q1 to: $0.93 to $0.94 per share — Represents 22% to 24% increase over 2005 EPS — Q2 earnings forecast for $0.18 to $0.19 * Store Openings - 60 - 70 new store openings projected for 2006 * Pawn (Mexico) * Pa
Slide 19: Increasing Market Visibility & Liquidity
Increasing Market Visibility & Liquidity $700 $600 $500 2 $400 5 sana $200 $100 $0 Two-for-one stock split effective February 6, 2006 Market Cap 2000 2001 2002-2003 2004-2005 03131106 FIRST CASH FINANCIAL SERVICES
Slide 20: Assets, Liabilities and Equity
Millions Assets Liabilities mEquity 2001 2002 2003 2004 2005 Mar-06 FIRST CASH FINANCIAL SERVICES |
Slide 21: Net Cash Position
Net Cash Position Millions $60 $50 }; MCash $40 || milnterest Bearing Debt $30 $20 $10 n $13 ical a $0 $10 a $35 $20 -$30 $40 $50 2000 2001 2002 2003 2004 2005 Q1 2006 FIRST CASH FINANCIAL SERVICES
Slide 22: Utilization of Cash Flows
Utilization of Cash Flows + All store openings funded from current cash flows — Loan growth at new & existing stores - Capital expenditures for new stores — Start-up costs for new stores * Stock repurchases of $24 million over past two years ‘New location under construction ih Tijuane, Mexico FIRST
Slide 23: Growth Strategy
wth Strategy + New store openings in multiple markets — United States — Mexico + Diversified product line — Pawn loans & related retail — Payday advances — Credit services First Cash Advance focation in Hurst, Texas
Slide 24: New Store Openings - 2006 Projection: 60-70
New Store Openings 1 47 ” 50 50 2006 Projection: 38 60-70 40 New Stores New 30 Stores 48 20 ‘ a 0 a0 2002 2003 2004 2005 2008 oathotr | 14 14 13 12 6 3rd Qtr 3 10 12 13 9 Bandar] 3 6 “4 13 10 Bist Qtr 1 8 “4 14 18 20
Slide 25: New Store Financial Model
New Store Financial Model Cap Ex - Leasehold improvements - Computer & security equipment $80,000 to $150,000 Working Capital (first year) - Operating cash - Loan funding - Inventory (pawn only) $80,000 to $150,000 Start-up Losses - Pre-opening - First six months of operation $40,000 to $60,000 Tota
Slide 26: Mexico Expansion Markets
Mexico Expansion Markets ie aa Trop of Cancer sun PACIFIC OCEAN FIRST CASH FINANCIAL SERVICES
Slide 27: First Cash Pawn Stores in Mexico
First Cash Pawn Stores in Mexico
Slide 28: U.S. Payday Expansion
U.S. Payday Expansion “J+ Continued growth in key Texas markets: — Dallas/Fort Worth — Houston — San Antonio/Austin — Other mid-sized markets in Texas + First stores in Michigan opened in Q2 of 2006 FIRST CASH FINANCIAL SERVICES
Slide 29: First Cash Summary
First Cash Summary + Industry leader in a fast growth sector - Strong demand for specialty consumer finance products - Multiple products: pawn and payday advance * Superior financial metrics - 21 consecutive quarters (over five years) of double-digit EPS growth - Strong cash flows; no debt * Well-de
Slide 30: Safe Harbor Statement
FIRST CASH FINANCIAL SERVICES [LOGO OF FIRST CASH] INVESTOR PRESENTATION - APRIL 2006 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
First Cash Financial Services — Investor Presentation (April 2006) on 6ix