NASDAQ$FCFS

FirstCash Holdings Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported resiliency and improved profitability due to strong retail sales, recovered pawn lending, and expense discipline.

FirstCash reported Q4 2020 earnings with revenue of $392.16 million and net income of $32.73 million. Diluted earnings per share were $0.79. The company added 137 stores during the year, including 22 U.S. stores in Q4, and repurchased $27 million of common stock in the fourth quarter.

  • Retail sales were stronger than expected with record high sales margins.
  • Pawn lending activity continued to recover.
  • Operating profitability improved significantly compared to the third quarter.
  • The company continued to invest in long-term growth, adding 137 stores during the year.

Headline financials

Total Revenue

$392M

Previous: $498M-21.3%
EPS (adj)

$0.84

Previous: $1.26-33.3%
US Pawn Same-Store Retail Sales Growth

-18.0%

Previous: 1.0%-1900.0%
LatAm Pawn Same-Store Retail Sales Growth (constant currency)

-28.0%

Previous: 8.0%-450.0%
Free Cash Flow

$292M

No prior period
Net Income

$32.7M

Previous: $54.2M-39.6%
Operating Income

$43.1M

Previous: $71.5M-39.7%
Gross Profit

$226M

Previous: $267M-15.4%
Cash & Equivalents

$65.9M

Previous: $46.5M+41.5%
Total Assets

$2.37B

Previous: $2.44B-2.8%
Stock-Based Comp

-$2.34M

Previous: $1.74M-234.6%

Revenue & EPS history

FirstCash · Revenue · Quarterly

$392M

Q4 2020-21.3%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

FirstCash · $392M total across 3 segments · Q4 2020

  • Retail Merchandise Sales
    $257M-22.6%
  • Pawn Loan Fees
    $114M-20.8%
  • Wholesale Scrap Jewelry Sales
    $21.8M+1.3%

Forward guidance

Given continued uncertainties related to COVID-19, including the timeline for full reopening of the economies in the markets the Company serves and the related impacts from governmental responses, the Company is not currently providing earnings guidance.

Tailwinds

  • Solid pipeline of additional stores leased, under construction or completed and awaiting permits.
  • Company expects 50 to 60 new store openings in 2021.
  • There are significant opportunities for accretive consolidations, expansions and/or relocations of acquired small format stores in Mexico.
  • Potential for 20 to 30 store consolidations and/or relocations in 2021 where the company can increase retail visibility with more attractive locations while also reducing costs and enhancing profitability.
  • Opportunities to negotiate better long-term store leases in the current retail environment, and continue to acquire store real estate when it makes sense strategically and is financially accretive.

Headwinds

  • The extent to which COVID-19 continues to impact the Company’s operations will depend on future developments, which are uncertain and cannot be predicted with confidence.
  • Company also continues to experience COVID-19 related operating restrictions in certain Latin American markets.
  • U.S. pawn loan demand dampened slightly in the first two weeks of January 2021, which the Company attributes to additional federal stimulus payments in late December and early January ($600 for most eligible people), which created additional short-term liquidity for many U.S. customers.
  • Normalization of loan demand will likely be tempered in the short term.
  • While inventory levels in both the U.S. and Latin America have generally stabilized, they remain below historical levels, which is expected to negatively impact 2021 retail sales compared to the prior year, especially in the first half of 2021.

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 Q4 2020

Historical avgQ4 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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