FirstCash(US:FCFS)2022-05-01 16:00Pawn Operations - As of March 31, 2022, the Company operated 2,829 pawn store locations, including 1,078 in the U.S. and 1,751 in Latin America[110] - U.S. pawn loans increased by 42% to $241.6 million compared to $169.6 million as of March 31, 2021[119] - U.S. inventories rose by 44% to $184.7 million from $128.3 million as of March 31, 2021[124] - Total revenue for the U.S. pawn segment increased by 13% to $311.8 million compared to $275.6 million in the same period last year[122] - U.S. pawn loan fees increased by 18% to $90.3 million during the first quarter of 2022 compared to $76.4 million in the first quarter of 2021[127] - The average outstanding pawn loan amount increased by 5% to $226 as of March 31, 2022, compared to $215 as of March 31, 2021[119] - Segment pre-tax operating income for the U.S. pawn segment increased by 20% to $73.1 million compared to $60.9 million in the prior year[122] - Same-store retail sales in the U.S. increased by 4% in the first quarter of 2022 compared to the first quarter of 2021[123] - The percentage of inventory aged greater than one year decreased to 1% as of March 31, 2022, from 2% as of March 31, 2021[124] - Latin America pawn loan receivables rose by 7% to $102.5 million as of March 31, 2022, with same-store receivables increasing by 6%[139] - Total revenue for the Latin America pawn segment was $155.6 million in Q1 2022, an 18% increase from $132.4 million in Q1 2021[135] - Segment pre-tax operating income for Latin America was $29.5 million in Q1 2022, reflecting a 15% increase from $25.7 million in the prior year[142] - Latin America pawn loan fees increased by 6% to $41.5 million in Q1 2022 compared to $39.1 million in Q1 2021[140] - Latin America inventories increased by 10% to $62.6 million as of March 31, 2022, compared to $57.0 million a year earlier[138] - The average outstanding pawn loan amount in Latin America increased by 4% to $79 as of March 31, 2022[132] Retail Payment Solutions - The Company provided lease-to-own and retail finance payment solutions through approximately 6,900 active retail merchant partner locations as of March 31, 2022[112] - Total revenue for the Retail POS Payment Solutions Segment was $192.4 million, with an adjusted total revenue of $208.6 million for the three months ended March 31, 2022[149] - Segment pre-tax operating income for the Retail POS Payment Solutions was $4.6 million, with an adjusted pre-tax operating income of $25.1 million[151] Financial Performance - Adjusted net income for Q1 2022 was $56.9 million, or $1.18 per share, compared to $34.9 million, or $0.85 per share in Q1 2021[184] - EBITDA for Q1 2022 was $78.1 million, compared to $64.0 million in Q1 2021, reflecting an increase of 22%[187] - Adjusted EBITDA for Q1 2022 was $101.3 million, up from $65.6 million in Q1 2021, representing a growth of 54%[187] - Total revenue for the three months ended March 2022 was reported at $659,839,000, compared to $407,939,000 for the same period in 2021, indicating a 62.0% growth[192] - Adjusted total revenue, excluding purchase accounting adjustments, was $676,012,000 for the three months ended March 2022[192] Cash Flow and Expenses - Cash flow provided by operating activities was $120.1 million for the three months ended March 31, 2022, compared to $69.2 million for the same period in 2021[170] - Net cash provided by operating activities increased by $51.0 million, or 74%, from $69.2 million in Q1 2021 to $120.1 million in Q1 2022[173] - Net cash provided by investing activities decreased by $17.1 million, or 99%, from $17.3 million in Q1 2021 to $0.2 million in Q1 2022[174] - Net cash used in financing activities increased by $31.2 million, or 32%, from $96.7 million in Q1 2021 to $127.9 million in Q1 2022[175] - The company funded $72.2 million for share repurchases and paid dividends of $14.5 million in Q1 2022, compared to $5.0 million and $11.1 million in Q1 2021, respectively[175] - Administrative expenses increased by 19% to $36.9 million compared to $31.0 million in the first quarter of 2021, while as a percentage of revenue, they decreased from 8% to 6%[152] - Corporate depreciation and amortization expense surged by 1,438% to $14.9 million, primarily due to $14.2 million in amortization related to the AFF Acquisition[153] - Interest expense rose by 124% to $16.2 million, attributed to an increase in outstanding senior unsecured notes and higher average balances on unsecured credit facilities[154] Strategic Initiatives - The company completed the AFF Acquisition on December 17, 2021, and has since consolidated its results, impacting finance receivables and leased merchandise[144] - The Company plans to expand pawn operations by adding up to 60 new full-service pawn locations in Latin America in 2022[159] Market and Risk Exposure - The company uses constant currency results to evaluate performance in Latin America, which helps exclude the effects of foreign currency fluctuations[195] - There have been no material changes to the company's exposure to market risks since December 31, 2021, with risks primarily from interest rates, gold prices, and foreign currency exchange rates[197] - The company believes that adjusted metrics provide greater transparency and a more complete understanding of its financial performance and prospects[191]