FirstCash(US:FCFS)2024-10-28 19:16Store 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].