NASDAQ$FCFS

FirstCash Holdings Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

FirstCash's Q3 2023 earnings were driven by strong growth and profitability in the core pawn segments and AFF, resulting in record earning assets, revenues, and combined segment earnings.

FirstCash reported outstanding third-quarter results with a 17% increase in consolidated gross revenues to $786 million. The company added 104 pawn stores and saw significant growth in U.S. pawn receivables and AFF revenue and earnings.

  • Consolidated gross revenues totaled $786 million, a 17% increase.
  • Adjusted diluted earnings per share increased 20% compared to the prior-year quarter.
  • 104 pawn locations were added in the third quarter through acquisitions and store openings.
  • AFF segment pre-tax operating income increased 96% on a GAAP basis.

Headline financials

Total Revenue

$786M

Previous: $672M+17.0%
EPS (adj)

$1.56

Previous: $1.30+20.0%
US Pawn Same-Store Retail Sales Growth

-3.0%

Previous: 16.0%-118.8%
LatAm Pawn Same-Store Retail Sales Growth (constant currency)

5.0%

Previous: 5.0%+0.0%
Capital Expenditures

-$93.4M

Previous: -$107M+13.0%
Free Cash Flow

-$36.3M

Previous: -$48M+24.5%
Net Income

$57.1M

Previous: $59.3M-3.7%
Operating Income

$77.6M

Previous: $75.4M+3.0%
Gross Profit

$389M

Previous: $323M+20.2%
Cash & Equivalents

$86.5M

Previous: $101M-14.0%
Total Assets

$4.17B

Previous: $3.86B+8.1%
Stock-Based Comp

$3.38M

Previous: $2.88M+17.4%

Revenue & EPS history

FirstCash · Revenue · Quarterly

$786M

Q3 2023+17%vs Q3 2022
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

FirstCash · $786M total across 5 segments · Q3 2023

  • Retail Merchandise Sales
    $335M+11.4%
  • Leased Merchandise Income
    $189M+19.8%
  • Pawn Loan Fees
    $175M+19.8%
  • Interest and Fees on Finance Receivables
    $61.4M+25.7%
  • Wholesale Scrap Jewelry Sales
    $25.9M+39.2%

Forward guidance

Based on strong third quarter results, recent pawn acquisitions, and continued growth in earning assets, the Company's outlook for the remainder of 2023 remains highly positive.

Tailwinds

  • Expected fourth quarter results in the U.S. should benefit from the addition of 88 U.S. locations year-to-date.
  • Pawn receivables at September 30, 2023 were up 22% in the U.S. and 15% in Latin America.
  • Retail margins are anticipated to remain strong at 42% to 43% in the U.S. and 35% to 36% in Latin America.
  • Management continues to see a solid pipeline of further new store openings and potential acquisition opportunities in both the U.S. and Latin America.
  • Transaction volumes, or originations, are now expected to increase 8% to 10% in the fourth quarter and 18% to 20% for the full year as compared to the respective prior-year periods.

Headwinds

  • Operating expenses are expected to rise in both the U.S. and Latin America in 2023 due to increased store counts along with continued inflationary impacts (primarily in Latin America).
  • The Company expects AFF's estimated lease and loan loss provisioning rates for the remainder of 2023 will continue to reflect a conservative approach with provisioning above historical pre-pandemic loss rates for most vintages.
  • Full year provision expense is expected to increase consistently with the expected increase in originations.
  • Operating expenses for the full year are expected to increase in the 10% to 12% range in 2023 as well, primarily due to the expected increase in origination activity.
  • U.S. pawn receivables continue to trend even higher thus far in October, and are now up by over 24% in total and over 12% on a same-store basis compared to the same point a year ago.

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 Q3 2023

Historical avgQ3 2023

+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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