FirstCash Reports Record Fourth Quarter and Full-Year Operating Results; Accelerating Pawn Demand Drives Record Revenue & Earnings; Declares Quarterly Cash Dividend

Core Viewpoint - FirstCash Holdings, Inc. reported record revenues and earnings for the fourth quarter and full year of 2024, driven by strong pawn operating results and growth in the retail point-of-sale payment solutions segment [2][9][27]. Financial Performance - Fourth quarter revenue reached $883.8 million, a 4% increase year-over-year, while full-year revenue totaled$ 3.39 billion, an 8% increase [4][9]. - Net income for the fourth quarter was $83.5 million, up 20% from the previous year, and for the full year, net income was$ 258.8 million, an 18% increase [4][9]. - Diluted earnings per share for the fourth quarter increased to $1.86, a 22% rise, while for the full year, it reached$ 5.73, a 19% increase [4][9]. Pawn Operations - Same-store pawn receivables grew by 12% in both the U.S. and Latin America, marking the sixth consecutive quarter of double-digit growth in the U.S. [2][10]. - The total pawn receivables at year-end approached $400 million, reflecting a 15% increase year-over-year [10]. - The company added 16 pawn stores in the fourth quarter, bringing the total to 3,026 locations, with 99 stores added throughout 2024 [3][6]. Retail POS Payment Solutions - The retail POS payment solutions segment (AFF) showed solid profitability, with growth in transaction volumes and active merchant partnerships increasing by 17% year-over-year to approximately 13,600 locations [6][12]. - Despite challenges in the furniture sector, AFF contributed nearly$ 130 million in segment earnings for 2024 [26]. Cash Flow and Shareholder Returns - Consolidated operating cash flows grew by 30% to $540 million in 2024, while adjusted free cash flows increased by 24% to$ 262 million [18][14]. - The Board declared a quarterly cash dividend of $0.38 per share, representing an annualized dividend of$ 1.52 per share [3][14]. - The company repurchased $85 million of its common stock in 2024, with$ 115 million remaining under the share repurchase program [14][15]. 2025 Outlook - The company anticipates continued growth in pawn receivables and expects to add more pawn stores in 2025, projecting same-store pawn loan growth of 8% to 11% for the full year [19][20]. - The U.S. pawn segment is expected to contribute approximately 65% of total segment-level pre-tax income for 2025 [19][20]. - The AFF segment is projected to contribute around 15% of total segment-level pre-tax income, with origination volumes expected to increase by 20% to 25% excluding furniture [24][22].