NASDAQ$FCFS

FirstCash Holdings Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

FirstCash reported first quarter earnings and revenues, added 67 locations with acquisition and new store openings, and provided a COVID-19 update.

FirstCash's first quarter earnings exceeded expectations, driven by accelerated retail demand in March, which continued into April. Consolidated revenues were flat year-over-year, but core pawn operations revenue increased by 3%. The company is withdrawing its earnings guidance for 2020 due to COVID-19 uncertainties.

  • Approximately 98% of FirstCash's 2,740 stores in the United States and Latin America remain open.
  • FirstCash's balance sheet and liquidity remain strong with over $80 million of cash on hand and $200 million of available borrowing capacity.
  • First quarter earnings were better than expected, driven by retail demand acceleration in March.
  • Company acquired a 36-store independent chain of small-format pawnshops located in central Mexico during the first quarter of 2020.

Headline financials

Total Revenue

$466M

Previous: $468M-0.2%
EPS (adj)

$0.96

Previous: $0.97-1.0%
US Pawn Same-Store Retail Sales Growth

4.0%

No prior period
LatAm Pawn Same-Store Retail Sales Growth (constant currency)

-3.0%

No prior period
Capital Expenditures

-$20.2M

Previous: -$22.1M+8.8%
Free Cash Flow

$12.7M

Previous: $20.5M-38.0%
Net Income

$32.9M

Previous: $42.7M-22.8%
Operating Income

$45.7M

Previous: $58.8M-22.3%
Gross Profit

$259M

Previous: $256M+1.4%
Cash & Equivalents

$75.5M

Previous: $49.7M+52.0%
Total Assets

$2.31B

Previous: $2.34B-1.0%
Stock-Based Comp

$2.85M

Previous: $2.32M+23.2%

Revenue & EPS history

FirstCash · Revenue · Quarterly

$466M

Q1 2020-0.2%vs Q1 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

FirstCash · $465M total across 3 segments · Q1 2020

  • Retail Merchandise Sales
    $297M
  • Pawn Loan Fees
    $142M
  • Wholesale Scrap Jewelry Sales
    $26.4M

Forward guidance

Due to the uncertainty around COVID-19 and the associated volatility of the Mexican peso, the Company is withdrawing its previous earnings guidance given on January 29, 2020.

Tailwinds

  • The extent to which COVID-19 impacts the Company’s operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence.
  • Strong pipeline of new stores under lease and in development.
  • Average investment in new Latin American stores is relatively small.
  • Pawnshops have historically served unbanked and underbanked consumers well in periods of economic uncertainty and credit contraction.
  • Implemented significant safety protocols in stores so they can remain open to offer essential services.

Headwinds

  • Duration, severity and scope of the outbreak and impact on customer retail traffic and borrowing demand.
  • No assurance that the company will remain designated as an essential service or that government officials will not expand business closures.
  • COVID-19 could impact the Company’s ability to safely staff its stores.
  • Direct impacts of COVID-19 could also significantly change consumer behavior and shopping patterns.
  • Global economic uncertainty due to the COVID-19 pandemic has strengthened the relative value of the U.S. dollar and negatively impacted developing market currencies, including the Mexican peso.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.1%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+2.3%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+14.8%

Q1 2022

Best reaction

-13.0%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%+4.1%+10.6%
Q4 2025+3.3%+5.7%+10.7%
Q3 2025+7.2%+8.0%+7.0%
Q1 2025+9.1%+10.6%+5.6%
Q4 2024+0.4%+0.6%+0.3%
Q3 2024-4.2%-3.9%-5.2%
Q2 2024+1.6%+1.7%+7.7%
Q1 2024-12.4%-14.4%-10.1%
Q4 2023+1.2%+0.9%+0.2%
Q3 2023+5.6%+7.4%+10.6%
Q2 2023-2.0%+0.3%-8.2%
Q1 2023+8.1%+6.9%+1.8%
Q4 2022-2.4%-1.8%-1.9%
Q3 2022+9.9%+11.9%+7.8%
Q2 2022+12.2%+9.7%+19.2%
Q1 2022+14.8%+9.1%+6.1%
Q4 2021+7.6%+4.4%-8.5%
Q3 2021+1.4%+4.5%-23.7%
Q2 2021+2.9%+4.1%+12.3%
Q1 2021-0.3%+5.6%+17.6%
Q4 2020+5.7%+3.8%+13.7%
Q3 2020-4.8%-9.7%+8.4%
Q2 2020+2.1%-6.5%-5.2%
Q1 2020-5.9%-0.6%-1.0%
Q4 2019+3.0%+1.9%-9.4%
Q3 2019-10.3%-8.9%-17.1%
Q2 2019-2.9%-1.4%-7.0%
Q1 2019+8.2%+8.3%+4.9%
Q4 2018-4.5%-5.1%+4.8%
Q3 2018+1.8%+5.7%+13.9%
Q2 2018-12.2%-13.4%-12.8%
Q1 2018+4.6%+8.7%+11.6%
Q4 2017+1.2%+0.1%+2.1%
Q3 2017+6.7%+5.7%+10.4%
Q2 2017+0.9%+0.5%+1.6%
Q1 2017+1.0%+3.1%+4.5%
Q4 2016+1.9%+1.8%+3.4%
Q3 2016-0.6%-0.8%+0.8%
Q2 2016+0.1%-1.2%+1.1%
Q1 2016-6.1%
Q4 2015-5.7%
Q3 2015-10.2%
Q2 2015-12.3%
Q1 2015+0.3%
Q4 2014-13.0%
Q3 2014-1.4%
Q2 2014+0.6%
Q1 2014-2.8%
Q4 2013-11.2%
Q3 2013+4.6%
Q2 2013+0.6%
Q1 2013-0.3%
Q4 2012+3.3%
Q3 2012-3.0%
Q2 2012+1.6%
Q1 2011-0.3%
Q1 2012+1.3%
Q4 2009-0.4%
Q4 2011-0.4%
Q3 2010-1.4%
Q3 2011-1.4%
Q4 2010-0.1%
Q2 2011-0.1%
Q2 2010-0.1%
Q1 2010-1.0%

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