FirstCash(FCFS)2025-04-24 18:31Financial Performance - FirstCash reported a record first quarter net income of 1.87 on a GAAP basis, while adjusted diluted earnings per share rose 34% to 836.4 million, flat on a U.S. dollar basis but up 4% on a constant currency basis compared to the prior year[11]. - Net income for the three months ended March 31, 2025, was 61,368,000 for the same period in 2024, representing a growth of 36%[70]. - EBITDA for the three months ended March 31, 2025, was 132,587,000 for the same period in 2024, reflecting a 23% increase[70]. - Adjusted EBITDA for the trailing twelve months ended March 31, 2025, was 533,754,000 for the previous year, indicating a growth of 10.5%[70]. - Free cash flow for the three months ended March 31, 2025, was 105,943,000 for the same period in 2024, showing an increase of 6%[73]. - Adjusted free cash flow for the trailing twelve months ended March 31, 2025, was 201,457,000 for the previous year, representing a significant increase of 33.3%[73]. - Adjusted return on equity for the trailing twelve months ended March 31, 2025, was 16%, while adjusted return on assets was 7%[76]. Pawn Operations - Same-store pawn receivables increased 13% in the U.S. and 14% in Latin America, marking seven consecutive quarters of double-digit growth in the U.S. segment[3]. - Pawn operations are expected to contribute over 80% of total segment level pre-tax income for 2025, with same-store pawn loans up 13% year-over-year as of March 31, 2025[21]. - Total outstanding pawn loans increased by 16% in the U.S. and 15% in Latin America on a local currency basis, with average loan amounts up 11% in the U.S. and 7% in Latin America[24]. - Pawn loans in the U.S. increased by 16% to 315,792 in 2024[46]. - Total revenue for U.S. Pawn segment reached 377,690 in the same period of 2024[43]. - Segment pre-tax operating income for U.S. Pawn increased by 17% to 96,602 in 2024[43]. - Total revenue for Latin America Pawn segment decreased by 6% to 196,640 in 2024[49]. - Segment pre-tax operating income for Latin America Pawn was 31,904 in 2024[49]. Growth and Expansion - The number of active retail and e-commerce merchant partner locations increased by 19% to approximately 14,500, with a 29% increase excluding closed furniture locations[11]. - The company added 12 pawn locations in the first quarter, including acquisitions and new store openings in three countries[11]. - The company added 91 locations over the last 12 months through new store openings and acquisitions, with a robust pipeline for future pawn store growth[25]. - The outlook for 2025 remains positive, with expected year-over-year growth in income driven by continued demand for pawn loans and store additions[19]. Shareholder Returns and Capital Management - The company repurchased 525,000 shares of common stock for 0.38 per share, representing an annualized dividend of 60 million at an average price of less than 23 million[28]. Financial Outlook and Challenges - The effective income tax rate for 2025 is expected to range from 24.5% to 25.5%, with each full point change in the Mexican peso exchange rate projected to impact annual earnings by approximately 4,426,277, up from 2,367,917 as of March 31, 2025, from 2,058,360, slightly up from $2,045,382 as of December 31, 2024[40]. Market Conditions and Currency Impact - The Mexican peso to U.S. dollar exchange rate at the end of March 31, 2025, was 20.3, a 22% unfavorable change compared to 16.7 in 2024[80]. - The Colombian peso to U.S. dollar exchange rate at the end of March 31, 2025, was 4,193, reflecting a 9% unfavorable change from 3,842 in 2024[80].