NASDAQ$FCFS

FirstCash Holdings Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported Q2 revenues and earnings, exited from unsecured consumer lending operations, and added 91 stores year-to-date through new openings and acquisitions.

FirstCash reported a decrease in diluted earnings per share due to COVID-19 impacts, lower foreign exchange rates, and the wind-down of consumer lending operations. However, retail sales were robust in the U.S., and cash flows were strong, allowing for debt reduction and continued investments in store growth.

  • Diluted earnings per share decreased 18% on a GAAP basis and 24% on an adjusted non-GAAP basis compared to the prior-year quarter.
  • Pawn fee revenues declined 26% due to COVID-19 related impact on lending demand.
  • Net income totaled $26 million on both a GAAP and adjusted non-GAAP basis.
  • Adjusted free cash flow was a record $182 million for the quarter.

Headline financials

Total Revenue

$413M

Previous: $446M-7.5%
EPS (adj)

$0.62

Previous: $0.82-24.4%
US Pawn Same-Store Retail Sales Growth

24.0%

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

-31.0%

No prior period
Capital Expenditures

-$40.1M

Previous: -$31.9M-25.6%
Free Cash Flow

-$14.2M

Previous: $1.15M-1330.4%
Net Income

$25.9M

Previous: $33M-21.7%
Operating Income

$37.2M

Previous: $45.3M-17.9%
Gross Profit

$223M

Previous: $244M-8.7%
Cash & Equivalents

$71M

Previous: $67M+5.9%
Total Assets

$2.18B

Previous: $2.4B-9.2%
Stock-Based Comp

$2.4M

Previous: $2.32M+3.6%

Revenue & EPS history

FirstCash · Revenue · Quarterly

$413M

Q2 2020-7.5%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

FirstCash · $412M total across 3 segments · Q2 2020

  • Retail Merchandise Sales
    $287M
  • Pawn Loan Fees
    $102M
  • Wholesale Scrap Jewelry Sales
    $22.8M

Forward guidance

Due to the uncertainty around COVID-19 and foreign currency volatility, the Company withdrew its initial 2020 earnings guidance on April 22, 2020 and has not reinstated earnings guidance for the balance of the year.

Tailwinds

  • Normalization of demand for pawn loans.
  • Continued recovery in loan originations with improved yields.
  • Ability to keep stores open and operating safely.
  • Strong retail sales of essential products.
  • Improved retail margins.

Headwinds

  • Reduced personal spending if schools and other venues remain closed.
  • Additional government stimulus payments and benefit programs.
  • Additional store closures or operating restrictions.
  • Lower pawn balances impacting pawn fees in the third quarter.
  • Lower levels of inventory impacting retail sales volumes.

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 Q2 2020

Historical avgQ2 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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