NASDAQ$FCFS

FirstCash Holdings Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

FirstCash reported record second quarter earnings results, driven by strong revenue growth from core pawn operations. Consolidated same-store pawn fees grew 20%, and consolidated retail sales were up 10% on a same-store basis. Pawn segment earnings increased 36% in the U.S. and 18% in Latin America.

FirstCash reported record second quarter results with significant revenue growth from pawn operations and the recently acquired AFF operations. Consolidated same-store pawn fees grew 20% and retail sales were up 10% on a same-store basis. The company increased its quarterly dividend by 10% to $0.33 per share.

  • Diluted earnings per share increased 159% on a GAAP basis to $1.81.
  • Adjusted non-GAAP diluted earnings per share increased 52% to $1.08 compared to the prior-year quarter.
  • Consolidated revenues totaled $648 million, a second quarter record, representing a 66% increase over the prior-year quarter.
  • EBITDA and Adjusted EBITDA for the second quarter of 2022 increased 167% and 68%, respectively, compared to the prior-year quarter.

Headline financials

Total Revenue

$648M

Previous: $390M+66.2%
EPS (adj)

$1.08

Previous: $0.71+52.1%
US Pawn Same-Store Retail Sales Growth

10.0%

Previous: -19.0%+152.6%
LatAm Pawn Same-Store Retail Sales Growth (constant currency)

11.0%

Previous: 1.0%+1000.0%
Capital Expenditures

-$78.2M

Previous: -$50.1M-56.1%
Free Cash Flow

$7.86M

Previous: -$21.7M+136.2%
Net Income

$86.1M

Previous: $28.4M+202.9%
Operating Income

$110M

Previous: $38.8M+182.5%
Gross Profit

$301M

Previous: $224M+34.2%
Cash & Equivalents

$110M

Previous: $50.1M+120.6%
Total Assets

$3.8B

Previous: $2.46B+54.6%
Stock-Based Comp

$2.88M

Previous: $1.63M+76.9%

Revenue & EPS history

FirstCash · Revenue · Quarterly

$648M

Q2 2022+66.2%vs Q2 2021
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

FirstCash · $648M total across 5 segments · Q2 2022

  • Retail Merchandise Sales
    $298M+12.3%
  • Leased Merchandise Income
    $148M
  • Pawn Loan Fees
    $134M+22.0%
  • Interest and Fees on Finance Receivables
    $43.7M
  • Wholesale Scrap Jewelry Sales
    $23.8M+69.1%

Forward guidance

The Company outlook for 2022 remains very positive as it continues to expect significant year-over-year revenue and earnings growth based on first half results and current trends.

Tailwinds

  • Pawn operations are expected to remain the primary earnings driver for 2022.
  • Inflationary economic environments have historically driven increased customer demand for both pawn loans and value-priced merchandise offered in pawn stores.
  • Demand for pawn loans in the U.S. continues to be robust, with continued growth in pawn receivable balances.
  • In Latin America, growth in pawn balances accelerated significantly in the second quarter with pawn receivables now above 2019 levels for the first time since the pandemic began.
  • AFF is expected to generate full year growth in gross transaction volumes and total revenues, primarily from increased door counts from both new and existing merchant relationships.

Headwinds

  • Despite macroeconomic headwinds negatively impacting retail sales at many of AFF’s retail merchant partners.
  • Increases in wages and certain other operating costs across all markets are expected in 2022, including Mexico in particular.
  • AFF’s estimated lease and loan loss provisioning for the remainder of the year is expected to reflect higher, pre-pandemic loss rates with additional provisioning for certain portfolios given the current macroeconomic environment.
  • The current trading level for the Mexican peso to the U.S. dollar is approximately 20.5 to 1.
  • Each full point change in the exchange rate of the peso represents an approximate $0.08 annual impact on earnings per share.

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 2022

Historical avgQ2 2022

+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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