Workflow
FirstCash(FCFS) - 2024 Q3 - Quarterly Results
FCFSFirstCash(FCFS)2024-10-24 19:12

Financial Performance - Gross revenues for the third quarter reached 837million,a6837 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 1.44onaGAAPbasis,whileyear−to−datedilutedearningspersharerose191.44 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,up17.1175,268,000, 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,anincreasefrom64,827,000, 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,comparedto75,179,000, 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,comparedto138,134,000, 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,upfrom139,278,000, 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 98millionforthethirdquarter,a1698 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 334,931,000inQ32023[44]−U.S.Pawnsegmentreporteda12334,931,000 in Q3 2023[44] - U.S. Pawn segment reported a 12% increase in pawn loans, reaching 380,962, compared to 341,123inthepreviousyear[48]StoreExpansion−Thecompanyopened16newpawnstoresinthethirdquarter,contributingtoatotalof83newlocationsaddedyear−to−date[6]−TheCompanyadded83storesin2024andatotalof240storessincethebeginningof2023,indicatingstrongunitgrowth[30]−Thecompanyoperated3,025pawnstorelocationsasofSeptember30,2024,withanetincreaseof15locationsinLatinAmericaduringthethreemonths[71]CashFlowandDividends−ConsolidatedoperatingcashflowsforthetwelvemonthsendedSeptember30,2024,totaled341,123 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 217million[19]−Thecompanydeclaredaquarterlycashdividendof217 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 0.38persharecashdividendforQ42024,representinganannualizeddividendof0.38 per share cash dividend for Q4 2024, representing an annualized dividend of 1.52 per share[21] - Year-to-date, the Company has repurchased 85millionofcommonstock,with85 million of common stock, with 115 million remaining under the 200millionsharerepurchaseprogram[21]RetailSales−Retailmerchandisesalesincreasedby8.4200 million share repurchase program[21] Retail Sales - Retail merchandise sales increased by 8.4% to 363,141,000 in Q3 2024 from 335,081,000inQ32023[40]−U.S.pawnretailmerchandisesalesforthethreemonthsendedSeptember30,2024,totaled335,081,000 in Q3 2023[40] - U.S. pawn retail merchandise sales for the three months ended September 30, 2024, totaled 234.1 million, up from 202.3millioninthesameperiodof2023[98]−FortheninemonthsendedSeptember30,2024,U.S.pawnretailmerchandisesalesreached202.3 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 605.6millionin2023[100]FinancialRatiosandDebt−ThenetdebttoadjustedEBITDAratiowas2.96xasofSeptember30,2024[20]−AdjustedreturnonequityforthetrailingtwelvemonthsendedSeptember30,2024,is15605.6 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]−Adjustedreturnonassetsforthesameperiodis71,987,405,000[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]