NASDAQ$FCFS

FirstCash Holdings Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

FirstCash posted strong second quarter earnings results driven by an accelerating recovery in pawn receivables and the continued strength of retail operations.

FirstCash reported strong second quarter earnings driven by recovery in pawn receivables and retail operations. The company acquired a 26-store chain of pawn stores in Texas and opened 12 de novo stores. They returned cash to shareholders through dividends and share repurchases.

  • Diluted earnings per share increased 13% on a GAAP basis and 15% on a non-GAAP basis compared to the prior-year quarter.
  • Pawn loans outstanding increased 35% over the prior year and 29% on a constant currency basis.
  • Retail sales gross margins of 42% remained at record levels and improved over the 40% gross margins achieved in the second quarter of last year.
  • Adjusted EBITDA margin for the second quarter of 2021 was 15% compared to a 13% margin in the second quarter of 2020.

Headline financials

Total Revenue

$390M

Previous: $413M-5.6%
EPS (adj)

$0.71

Previous: $0.62+14.5%
US Pawn Same-Store Retail Sales Growth

-19.0%

Previous: 24.0%-179.2%
LatAm Pawn Same-Store Retail Sales Growth (constant currency)

1.0%

Previous: -31.0%+103.2%
Capital Expenditures

-$50.1M

Previous: -$40.1M-25.1%
Free Cash Flow

-$21.7M

Previous: -$14.2M-52.8%
Net Income

$28.4M

Previous: $25.9M+9.9%
Operating Income

$38.8M

Previous: $37.2M+4.3%
Gross Profit

$224M

Previous: $223M+0.5%
Cash & Equivalents

$50.1M

Previous: $71M-29.4%
Total Assets

$2.46B

Previous: $2.18B+12.6%
Stock-Based Comp

$1.63M

Previous: $2.4M-32.3%

Revenue & EPS history

FirstCash · Revenue · Quarterly

$390M

Q2 2021-5.6%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

FirstCash · $390M total across 3 segments · Q2 2021

  • Retail Merchandise Sales
    $266M-7.6%
  • Pawn Loan Fees
    $110M+7.8%
  • Wholesale Scrap Jewelry Sales
    $14.1M-38.1%

Forward guidance

Given the continued uncertainties related to COVID-19 and the associated government assistance programs, the Company is not currently providing earnings guidance.

Tailwinds

  • Pawn loan origination activity continues to improve, with U.S. same-store new loan volumes thus far in July down only 10% compared to 2019 originations.
  • U.S. same-store pawn balances are currently up 28% at July 20, 2021 compared to the prior year.
  • In Mexico, same-store pawn loans are currently 34% above prior-year levels and only 4% below this date in 2019.
  • The effective income tax rate for the full year of 2021 is expected to range from 26.5% to 27.5%.
  • The Company continues to expect 50 to 60 new store openings for the full year 2021.

Headwinds

  • The extent to which COVID-19 continues to impact the Company’s operations will depend on future developments, which remain uncertain and cannot be predicted with confidence.
  • The impact of future governmental responses, most notably the monthly advance payment of federal child tax credits that began in mid-July in the U.S. is uncertain.
  • Same-store pawn fees in the third quarter will continue to be below normalized levels.
  • The Company cannot currently predict the impact, if any, of the monthly advance payments of the federal child tax credit which began in mid-July 2021.
  • Uncertainty in the pace of the economic recovery in the markets.

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 2021

Historical avgQ2 2021

+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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