FirstCash(FCFS) - 2024 Q4 - Annual Results

Financial Performance - FirstCash reported record revenue of $3.4 billion for 2024, an 8% increase compared to the previous year, with Q4 revenue reaching $884 million, up 4% year-over-year[9] - Net income for 2024 was $259 million on a GAAP basis, an 18% increase from the prior year, while adjusted net income reached a record $303 million, up 9%[9] - Adjusted EBITDA for 2024 was $558 million, a 9% increase compared to the previous year[9] - For the three months ended December 31, 2024, the company reported net income of $83.5 million, an increase from $69.6 million in the same period of 2023, representing a growth of approximately 20%[69] - Adjusted diluted earnings per share for the twelve months ended December 31, 2024, was $6.70, compared to $6.06 for the previous year, reflecting an increase of about 10.6%[69] - EBITDA for the twelve months ended December 31, 2024, was $551.0 million, up from $493.8 million in 2023, indicating a year-over-year growth of approximately 11.6%[72] - Adjusted free cash flow for the twelve months ended December 31, 2024, reached $262,106,000, compared to $211,663,000 in 2023, reflecting a 23.7% increase[76] Store Growth and Operations - The company added 16 pawn stores in Q4 2024, including 10 acquisitions and 6 new openings, bringing the total store count to 3,026 locations[3] - The Company added nearly 100 new locations in 2024 and has a strong pipeline for new store openings in 2025, primarily in Latin America[24] - As of December 31, 2024, the company operated a total of 3,026 pawn store locations, with 1,200 in the U.S. and 1,826 in Latin America[60] - The company opened 61 new locations and acquired 38 locations over the twelve months ended December 31, 2024[60] Revenue and Sales Performance - Same-store pawn receivables increased by 12% in both the U.S. and Latin America, marking the sixth consecutive quarter of double-digit growth in the U.S.[2] - Pawn loan fees increased by 11% in Q4 and 16% for the full year, with same-store pawn loan fee revenue up 9% and 11% respectively[10] - Same-store sales in the U.S. and Latin America were up 6% and 7% respectively in the fourth quarter of 2024, maintaining strong gross margins[23] - Total revenue for the U.S. Pawn segment increased by 11% to $424,015,000 in Q4 2024, compared to $381,243,000 in Q4 2023[39] - Retail merchandise sales in the U.S. Pawn segment rose by 10% to $267,251,000 in Q4 2024, up from $243,697,000 in Q4 2023[39] - Total revenue for the Latin America Pawn segment decreased by 4% to $212,841,000 in Q4 2024, down from $222,858,000 in Q4 2023[48] - Retail merchandise sales in Latin America fell by 5% to $147,412,000 in Q4 2024, compared to $155,310,000 in Q4 2023[48] - U.S. pawn retail merchandise sales for the twelve months ended December 31, 2024, totaled $965.3 million, compared to $847.7 million in 2023, marking a 13.9% increase[86] Cash Flow and Dividends - Operating cash flows grew 30% in 2024, totaling $540 million compared to $416 million in 2023[17] - Cash flow from operating activities for the three months ended December 31, 2024, was $198,149,000, compared to $99,105,000 for the same period in 2023, representing a 100% increase[76] - Free cash flow for the twelve months ended December 31, 2024, was $260,400,000, up from $205,574,000 in 2023, indicating a 26.6% growth[76] - The company declared a quarterly cash dividend of $0.38 per share, representing an annualized dividend of $1.52 per share[17] Future Outlook - The company anticipates continued growth in pawn receivables and further store additions in 2025, indicating a positive outlook[18] - The Company expects the combined U.S. and Latin America pawn segments to contribute approximately 85% of total segment level pre-tax income for 2025[5] - Same-store pawn loans increased by 12% at the start of 2025 compared to the previous year, with full-year pawn fee growth projected to be between 8% and 11%[5] - The Company anticipates solid double-digit segment earnings growth in 2025 from its largest segment, driven by strong revenue momentum and modest expense growth[5] Asset and Liability Management - Total assets increased to $4,476,986,000 in 2024, up from $4,289,915,000 in 2023, reflecting a growth of 4%[37] - Total liabilities increased to $2,422,822,000 in 2024, up from $2,293,497,000 in 2023, marking a growth of 6%[37] - Total stockholders' equity rose to $2,054,164,000 in 2024, up from $1,996,418,000 in 2023, reflecting a growth of 3%[37] Loan and Finance Metrics - The average outstanding pawn loan amount increased by 10% to $283 in 2024, compared to $258 in 2023[44] - Pawn loans decreased by 5% to $121,200, while inventories decreased by 1% to $89,088 as of December 31, 2024[52] - Interest and fees on finance receivables increased by 18% to $70,507 for the three months ended December 31, 2024[54] - Provision for loan losses increased by 29% to $41,736 for the three months ended December 31, 2024[58] - The delinquency rate for finance receivables was 20.0%, down from 21.8%[58] - The allowance for loan losses increased by 21% to $117,005 as of December 31, 2024[59] Currency Exchange Impact - The Mexican peso to U.S. dollar exchange rate at the end of December 31, 2024, was 20.3, a 20% unfavorable change compared to 16.9 in 2023[83] - The Colombian peso to U.S. dollar exchange rate at the end of December 31, 2024, was 4,409, which is a 15% unfavorable change from 3,822 in 2023[83] Other Notable Events - The company expects to replace certain pawn locations in Acapulco, Mexico, that were damaged by a hurricane, as the city's infrastructure recovers[60] - The company closed approximately 1,000 Conn's HomePlus and American Freight locations due to bankruptcy during the fourth quarter of 2024[61] - The company’s management uses constant currency results to evaluate performance in Latin America, which helps exclude the effects of foreign currency fluctuations[80]