FirstCash(US:FCFS)2021-04-25 16:00Store Operations - As of March 31, 2021, the Company operated 2,771 store locations, including 1,046 in the U.S. and 1,725 in Latin America[80]. - The Company opened 24 new locations in Latin America during the reporting period[81]. - The company opened 24 new stores in Q1 2021, with a projected total of 50 to 60 new full-service pawn locations for the year[137]. Financial Performance - Consolidated net income for Q1 2021 was $33.7 million, a 2% increase from $32.9 million in Q1 2020[121]. - Net income for the three months ended March 2021 was $33,715, compared to $32,918 for the same period in 2020, representing a growth of 2.4%[160]. - Adjusted net income for Q1 2021 was $34.9 million, or $0.85 per diluted share, compared to $40.3 million, or $0.96 per diluted share in Q1 2020[157]. - Adjusted EBITDA for the three months ended March 2021 was $65,601, down from $74,606 in the same period of 2020, indicating a decrease of 12.5%[160]. - Free cash flow for the three months ended March 2021 was $102,077, compared to $119,083 for the same period in 2020, reflecting a decline of 14.3%[163]. Revenue and Sales - Total revenue for the U.S. operations segment decreased by 11% to $275.6 million in Q1 2021 compared to $310.7 million in Q1 2020[95]. - Retail merchandise sales in the U.S. decreased by 3% to $190.0 million in Q1 2021 compared to $196.0 million in Q1 2020[96]. - Latin America retail merchandise sales decreased by 18% to $82.1 million during Q1 2021 compared to $100.7 million in Q1 2020[110]. - U.S. wholesale scrap jewelry revenue decreased by 41% to $9.2 million during Q1 2021 compared to $15.5 million in Q1 2020[101]. - Latin America wholesale scrap jewelry revenue increased by 3% to $11.2 million during Q1 2021 compared to $10.9 million in Q1 2020[116]. Loan and Inventory Metrics - Consolidated pawn loan balances decreased by 16% compared to the prior year quarter, with U.S. pawn loans down 24% to $169.6 million[85][92]. - The average outstanding pawn loan amount increased by 18% to $215 in Q1 2021 compared to $182 in Q1 2020[92]. - The percentage of inventory aged greater than one year decreased to 2% from 3% year-over-year[92]. - U.S. inventories decreased by 21% from $162.1 million at March 31, 2020, to $128.3 million at March 31, 2021[98]. - Inventories in Latin America decreased by 13% from $65.7 million at March 31, 2020, to $57.0 million at March 31, 2021[111]. Operating Expenses and Income - U.S. store operating expenses decreased by 12% to $95.2 million during Q1 2021 compared to $107.7 million in Q1 2020[102]. - U.S. operations pre-tax operating income decreased by 5% to $60.9 million, while Latin America operations decreased by 19% to $25.7 million[121]. - Latin America segment pre-tax operating income for Q1 2021 was $25.7 million, with a pre-tax segment operating margin of 19%[119]. - Total corporate expenses and other income decreased by 20% to $40.3 million compared to $50.6 million in Q1 2020[121]. Cash Flow and Debt - Cash flow provided by operating activities decreased by 11% to $69.2 million from $77.4 million in Q1 2020[142]. - The net debt ratio as of March 31, 2021, was 2.1 to 1, compared to 1.9 to 1 in the previous year[140]. - Total debt outstanding as of March 2021 was $544,000, down from $655,519 at the end of 2020[160]. - Cash flow from operating activities for the three months ended March 2021 was $69,174, compared to $77,385 for the same period in 2020, a decrease of 10.3%[163]. Shareholder Returns and Commitments - The Company declared a $0.30 per share cash dividend for Q2 2021, totaling $12.3 million based on the March 31, 2021 share count[145]. - The Company repurchased 84,000 shares of common stock at an aggregate cost of $5.0 million in Q1 2021, compared to 981,000 shares at $80.3 million in Q1 2020[146]. - The Company has approximately $116.9 million remaining under its authorized stock repurchase programs as of March 31, 2021[146]. - As of March 31, 2021, the Company had contractual commitments to deliver 12,000 gold ounces at a weighted-average price of $1,855 per ounce between April 2021 and December 2021[147]. Regulatory and Market Impact - The impact of COVID-19 has led to significant fluctuations in demand for pawn loans, particularly in the U.S. due to federal stimulus payments[84][87]. - The Illinois General Assembly passed the Predatory Loan Prevention Act, which caps annual effective interest rates at 36% on most consumer loans, potentially impacting the Company's operations in Illinois[150]. Foreign Exchange and Non-GAAP Measures - Loss on foreign exchange decreased by 90% to $0.3 million in Q1 2021 compared to $2.7 million in Q1 2020[123]. - The Company experienced a non-cash foreign currency loss related to lease liability of $421,000 in Q1 2021, compared to $3.1 million in Q1 2020[158]. - The company continues to evaluate its financial performance using non-GAAP measures, which exclude certain items not representative of core operating performance[151].