Company Analysis - FirstCash (NASDAQ: FCFS) faced challenges in its Latin American pawn and U.S. point-of-sale (POS) financing operations during the summer of 2024 [2] - The U.S. pawn business has shown improvement since the summer of 2024 [2] Industry Analysis - The pawn and POS financing industry experienced challenges in Latin America and the U.S. during the summer of 2024 [2] - The U.S. pawn business has demonstrated resilience and improvement in the latter part of 2024 [2]

Store Operations - As of September 30, 2024, the company operated 3,025 pawn store locations, including 1,201 in the U.S. and 1,824 in Latin America[100]. - The Company opened 55 new stores through September 30, 2024, and expects to add approximately 60 new locations for the full year[194]. U.S. Segment Performance - Total revenue for the U.S. pawn segment increased by 16% to $390.1 million for the three months ended September 30, 2024, compared to $334.9 million for the same period in 2023[106]. - U.S. pawn loan fees rose by 13% to $128.4 million during the third quarter of 2024, driven by store growth and increased demand for pawn loans[112]. - The average outstanding pawn loan amount increased by 8% to $264 as of September 30, 2024, compared to $245 a year earlier[108]. - Retail merchandise sales in the U.S. increased by 15% to $235.0 million during the third quarter of 2024, with same-store sales up by 7%[109]. - The company's U.S. operating expenses increased by 12% to $128.1 million during the third quarter of 2024, primarily due to store growth[113]. - U.S. pawn segment pre-tax operating income increased by 16% to $98.3 million for the third quarter of 2024, compared to $84.4 million in the third quarter of 2023[147]. - U.S. segment pre-tax operating income for the nine months ended September 30, 2024, was $285.5 million, reflecting a 20% increase from $237.8 million in the prior year[160]. - U.S. operating expenses increased by 12% to $372.2 million during the nine months ended September 30, 2024, primarily due to store growth[159]. - The gross profit margin on U.S. retail merchandise sales was 42% for the nine months ended September 30, 2024, down from 43% in the prior year[157]. Latin America Segment Performance - Latin American segment pre-tax operating income was impacted by an 11% unfavorable change in the average value of the Mexican peso compared to the U.S. dollar[115]. - Latin America pawn segment revenue decreased by 4% to $198.4 million in Q3 2024 compared to $202.0 million in Q3 2023, with a 7% increase on a constant currency basis[117]. - Pawn loan fees decreased by 4% to $58.2 million in Q3 2024 from $60.5 million in Q3 2023, with a 6% increase on a constant currency basis[123]. - Retail merchandise sales decreased by 3% to $129.1 million in Q3 2024, with a 7% increase on a constant currency basis[120]. - Latin America retail merchandise sales increased by 4% to $394.4 million during the nine months ended September 30, 2024, with same-store sales also up by 4%[166]. - Latin America pawn loan fees rose by 7% to $175.4 million during the nine months ended September 30, 2024, with same-store fees increasing by 6%[167]. - Latin America segment pre-tax operating income decreased by 4% to $107.5 million for the nine months ended September 30, 2024, compared to $111.5 million in the prior year[169]. Financial Performance - Net income increased by 13% to $64.8 million for the three months ended September 30, 2024, compared to $57.1 million for the same period in 2023[147]. - Consolidated segment pre-tax operating income increased by 10% to $482.5 million for the nine months ended September 30, 2024, compared to $437.3 million in 2023[185]. - Net income rose by 17% to $175.3 million for the nine months ended September 30, 2024, compared to $149.7 million in the same period last year[185]. - Adjusted net income for the three months ended September 30, 2024, was $75,179,000, compared to $70,775,000 for the same period in 2023, reflecting an increase of approximately 5.9%[215]. - Adjusted diluted earnings per share for the three months ended September 30, 2024, was $1.67, up from $1.56 in the same period of 2023, representing a growth of 7.1%[215]. - EBITDA for the three months ended September 30, 2024, was $138,134,000, compared to $129,350,000 for the same period in 2023, indicating an increase of about 6.0%[218]. - Adjusted EBITDA for the three months ended September 30, 2024, was $139,278,000, compared to $132,985,000 in the same period of 2023, marking a rise of approximately 4.7%[218]. Cash Flow and Capital Management - Net cash provided by operating activities increased by $24.8 million, or 8%, from $317.0 million in 2023 to $341.8 million in 2024[205]. - Net cash used in investing activities decreased by $73.7 million, or 18%, from $409.2 million in 2023 to $335.5 million in 2024[206]. - The Company repurchased 721,000 shares of common stock at an aggregate cost of $85.0 million during the nine months ended September 30, 2024[198]. - The Company plans to continue its share repurchase program, with $115.0 million remaining from the authorized $200.0 million[199]. - Working capital increased to $1,020.9 million as of September 30, 2024, compared to $917.3 million in 2023[204]. Expenses and Loss Provisions - Provision for loan losses increased by 23% to $40.6 million during the third quarter of 2024, compared to $33.1 million during the third quarter of 2023[145]. - Interest expense increased by 11% to $27.4 million during the third quarter of 2024, compared to $24.7 million during the third quarter of 2023[150]. - Administrative expenses decreased by 9% to $40.9 million during the third quarter of 2024, compared to $45.1 million during the third quarter of 2023[148]. - Provision for lease losses decreased by 8% to $130.3 million during the nine months ended September 30, 2024, compared to $141.9 million in the previous year[180]. - Provision for loan losses increased by 13% to $102.1 million for the nine months ended September 30, 2024, compared to $90.6 million in 2023[182]. Market Risks and Currency Impact - The end-of-period exchange rate for the Mexican peso was 19.6 per U.S. dollar, a depreciation of 11% compared to 17.6 in the prior year[225]. - The Colombian peso showed a favorable exchange rate change, with a 10% improvement for the nine months ended September 30, 2024, at 3,979 compared to 4,413 in the previous year[225]. - The constant currency results are used to evaluate performance in Latin America, excluding the effects of foreign currency fluctuations[224]. - The company does not engage in speculative or leveraged transactions, maintaining a stable approach to market risks[226]. - There have been no material changes to the company's exposure to market risks since December 31, 2023[226].

Financial Performance - Gross revenues for the third quarter reached $837 million, a 6% increase year-over-year, with year-to-date revenues totaling $2.5 billion, up 9%[5] - Diluted earnings per share for the third quarter increased 14% to $1.44 on a GAAP basis, while year-to-date diluted earnings per share rose 19% to $3.88[5] - Net income for the nine months ended September 30, 2024, was $175,268,000, up 17.1% from $149,712,000 in the same period of 2023[40] - Net income for the three months ended September 30, 2024, was reported at $64,827,000, an increase from $57,144,000 for the same period in 2023, representing a growth of approximately 29.5%[80] - Adjusted net income for the three months ended September 30, 2024, was $75,179,000, compared to $70,775,000 in the prior year, reflecting an increase of about 6.3%[80] - EBITDA for the three months ended September 30, 2024, was $138,134,000, compared to $129,350,000 for the same period in 2023, representing an increase of approximately 6.0%[84] - Adjusted EBITDA for the three months ended September 30, 2024, was $139,278,000, up from $132,985,000 in the prior year, reflecting a growth of about 4.7%[84] Pawn Operations - The U.S. pawn segment reported a record pre-tax operating income of $98 million for the third quarter, a 16% increase compared to the prior year[8] - Pawn receivables grew 12% year-over-year, driven by a 10% same-store increase and a 4% increase in the weighted-average U.S. store count[8] - Pawn operations are expected to contribute over 80% of total segment level pre-tax income for 2024, with a target of adding approximately 90 pawn locations[22] - Pawn receivables increased by 12% year-over-year as of September 30, 2024, with pawn fees projected to rise by 10% to 12%[23] - U.S. Pawn segment total revenue for the three months ended September 30, 2024, was $390,115,000, reflecting a 16.5% increase from $334,931,000 in Q3 2023[44] - U.S. Pawn segment reported a 12% increase in pawn loans, reaching $380,962, compared to $341,123 in the previous year[48] Store Expansion - The company opened 16 new pawn stores in the third quarter, contributing to a total of 83 new locations added year-to-date[6] - The Company added 83 stores in 2024 and a total of 240 stores since the beginning of 2023, indicating strong unit growth[30] - The company operated 3,025 pawn store locations as of September 30, 2024, with a net increase of 15 locations in Latin America during the three months[71] Cash Flow and Dividends - Consolidated operating cash flows for the twelve months ended September 30, 2024, totaled $441 million, with adjusted free cash flows of $217 million[19] - The company declared a quarterly cash dividend of $0.38 per share, to be paid in November 2024[1] - The Board of Directors declared a $0.38 per share cash dividend for Q4 2024, representing an annualized dividend of $1.52 per share[21] - Year-to-date, the Company has repurchased $85 million of common stock, with $115 million remaining under the $200 million share repurchase program[21] Retail Sales - Retail merchandise sales increased by 8.4% to $363,141,000 in Q3 2024 from $335,081,000 in Q3 2023[40] - U.S. pawn retail merchandise sales for the three months ended September 30, 2024, totaled $234.1 million, up from $202.3 million in the same period of 2023[98] - For the nine months ended September 30, 2024, U.S. pawn retail merchandise sales reached $699.1 million, an increase from $605.6 million in 2023[100] Financial Ratios and Debt - The net debt to adjusted EBITDA ratio was 2.96x as of September 30, 2024[20] - Adjusted return on equity for the trailing twelve months ended September 30, 2024, is 15% with adjusted net income of $300,112,000 and average stockholders' equity of $1,987,405,000[92] - Adjusted return on assets for the same period is 7%, calculated from average total assets of $4,285,437,000[92] Market Conditions - Latin America pawn loan growth is up approximately 8% on a constant currency basis, despite a 2% decline on a U.S. dollar basis due to exchange rate fluctuations[24] - Retail sales in Latin America are expected to grow by 9% on a constant currency basis, remaining flat on a U.S. dollar basis[24] - The Mexican peso to U.S. dollar exchange rate at the end of September 2024 was 19.6, reflecting an unfavorable change of 11% compared to September 2023[96] - The Colombian peso to U.S. dollar exchange rate at the end of September 2024 was 4,164, showing a 3% unfavorable change compared to the previous year[96] - Constant currency results are used to evaluate performance in Latin America, excluding the effects of foreign currency fluctuations[93]

Core Insights - FirstCash Holdings reported revenue of $837.32 million for the quarter ended September 2024, reflecting a year-over-year increase of 6.5% [1] - The company's EPS was $1.67, up from $1.56 in the same quarter last year, with an EPS surprise of +5.70% compared to the consensus estimate of $1.58 [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $838.35 million, resulting in a surprise of -0.12% [1] Revenue Breakdown - Leased merchandise income was reported at $188.56 million, which was below the two-analyst average estimate of $192.70 million, showing a year-over-year decline of -0.4% [2] - Pawn loan fees reached $186.56 million, exceeding the two-analyst average estimate of $178.95 million, with a year-over-year increase of +6.9% [2] - Interest and fees on finance receivables amounted to $61.20 million, surpassing the two-analyst average estimate of $58.71 million, but also reflecting a year-over-year decrease of -0.4% [2] Stock Performance - Over the past month, FirstCash shares have returned -3.1%, contrasting with the Zacks S&P 500 composite's increase of +1.5% [2] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [2]

分组1 - FirstCash Holdings reported quarterly earnings of $1.67 per share, exceeding the Zacks Consensus Estimate of $1.58 per share, and showing an increase from $1.56 per share a year ago, representing an earnings surprise of 5.70% [1] - The company posted revenues of $837.32 million for the quarter ended September 2024, which was slightly below the Zacks Consensus Estimate by 0.12%, and an increase from $786.3 million year-over-year [1] - Over the last four quarters, FirstCash has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [1] 分组2 - The stock has underperformed the market with a gain of about 1.6% since the beginning of the year, compared to the S&P 500's gain of 21.5% [2] - The current consensus EPS estimate for the upcoming quarter is $2 on revenues of $910.1 million, and for the current fiscal year, it is $6.52 on revenues of $3.42 billion [4] - The Zacks Industry Rank for Financial Transaction Services is in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [5]

FORT WORTH, Texas, Oct. 24, 2024 (GLOBE NEWSWIRE) -- FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale (“POS”) payment solutions through American First Finance (“AFF”), today announced operating results for the three and nine month periods ended September 30, 2024. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per s ...

Analysts on Wall Street project that FirstCash Holdings (FCFS) will announce quarterly earnings of $1.58 per share in its forthcoming report, representing an increase of 1.3% year over year. Revenues are projected to reach $838.35 million, increasing 6.6% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company r ...

The market expects FirstCash Holdings (FCFS) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to ...

FORT WORTH, Texas, Aug. 08, 2024 (GLOBE NEWSWIRE) -- FirstCash Holdings, Inc. ("FirstCash" or the "Company") (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale ("POS") payment solutions, today announced that it has amended the terms of its long-term, unsecured bank credit facility to increase the size of the commitment to $700 million and extend the maturity date to August 2029. With this amendment and extension, the size o ...

The Company's management, under the supervision and with the participation of the Company's Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of June 30, 2024 (the "Evaluation Date"). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the Evaluation Date, the Company's disclosure controls and ...