FCFS 10-Q

FirstCash Holdings, Inc. (FCFS)

10-Q 2024-07-29 For: 2024-06-30

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Added on April 11, 2026

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Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share	FCFS	The Nasdaq Stock Market


☒	Large accelerated filer	☐	Accelerated filer
☐	Non-accelerated filer	☐	Smaller reporting company
		☐	Emerging growth company


PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	1
	Consolidated Balance Sheets	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Stockholders’ Equity	4
	Consolidated Statements of Cash Flows	6
	Notes to Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	53

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	55
Item 4.	Mine Safety Disclosures	55
Item 5.	Other Information	55
Item 6.	Exhibits	56

SIGNATURES		57


FIRSTCASH HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

	June 30,				December 31,
	2024		2023		2023
ASSETS
Cash and cash equivalents	$	113,693	$	104,598	$	127,018
Accounts receivable, net	72,158		63,337		71,922
Pawn loans	491,731		426,165		471,846
Finance receivables, net	105,401		110,555		113,901
Inventories	315,424		267,142		312,089
Leased merchandise, net	142,935		143,145		171,191
Prepaid expenses and other current assets	31,923		30,102		38,634
Total current assets	1,273,265		1,145,044		1,306,601

Property and equipment, net	661,005		587,934		632,724
Operating lease right of use asset	324,651		305,513		328,458
Goodwill	1,794,957		1,600,068		1,727,652
Intangible assets, net	253,910		303,642		277,724
Other assets	9,606		9,586		10,242
Deferred tax assets, net	5,014		7,770		6,514
Total assets	$	4,322,408	$	3,959,557	$	4,289,915

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable and accrued liabilities	$	141,314	$	146,163	$	163,050
Customer deposits and prepayments	76,452		70,056		70,580
Lease liability, current	97,809		96,215		101,962
Total current liabilities	315,575		312,434		335,592

Revolving unsecured credit facilities	150,000		376,000		568,000

Senior unsecured notes	1,529,870		1,036,660		1,037,647
Deferred tax liabilities, net	129,060		140,609		136,773
Lease liability, non-current	219,454		197,135		215,485

Total liabilities	2,343,959		2,062,838		2,293,497

Stockholders’ equity:

Common stock	575		573		573
Additional paid-in capital	1,760,986		1,734,122		1,741,046
Retained earnings	1,296,721		1,122,579		1,218,029
Accumulated other comprehensive loss	(84,366)		(49,258)		(43,037)
Common stock held in treasury, at cost	(995,467)		(911,297)		(920,193)
Total stockholders’ equity	1,978,449		1,896,719		1,996,418
Total liabilities and stockholders’ equity	$	4,322,408	$	3,959,557	$	4,289,915

The accompanying notes are an integral part of these consolidated financial statements.


FIRSTCASH HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share amounts)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Revenue:
Retail merchandise sales	$	363,463	$	320,864	$	730,284	$	648,779
Pawn loan fees	181,046		154,178		360,581		305,738
Leased merchandise income	194,570		189,805		400,241		373,243
Interest and fees on finance receivables	56,799		58,192		114,186		112,834
Wholesale scrap jewelry sales	35,134		27,583		62,090		72,767
Total revenue	831,012		750,622		1,667,382		1,513,361

Cost of revenue:
Cost of retail merchandise sold	218,147		192,271		441,676		391,272
Depreciation of leased merchandise	110,157		102,521		230,441		204,126
Provision for lease losses	47,653		52,873		90,663		101,938
Provision for loan losses	31,116		28,190		61,534		57,475
Cost of wholesale scrap jewelry sold	28,542		21,880		51,831		57,607
Total cost of revenue	435,615		397,735		876,145		812,418

Net revenue	395,397		352,887		791,237		700,943

Expenses and other income:
Operating expenses	228,369		204,781		449,505		403,842
Administrative expenses	45,576		40,355		88,633		79,372
Depreciation and amortization	26,547		27,050		52,574		54,161
Interest expense	25,187		21,071		50,605		41,968
Interest income	(261)		(408)		(1,004)		(925)
Loss (gain) on foreign exchange	1,437		(817)		1,251		(1,619)
Merger and acquisition expenses	1,364		252		1,961		283
Other expenses (income), net	1,000		79		(351)		124


Total expenses and other income	329,219		292,363		643,174		577,206

Income before income taxes	66,178		60,524		148,063		123,737

Provision for income taxes	17,105		15,344		37,622		31,169

Net income	$	49,073	$	45,180	$	110,441	$	92,568

Earnings per share:
Basic	$	1.09	$	0.99	$	2.44	$	2.02
Diluted	$	1.08	$	0.99	$	2.44	$	2.01

The accompanying notes are an integral part of these consolidated financial statements.


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


FIRSTCASH HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
CONTINUED
(unaudited, in thousands, except per share amounts)

Six Months Ended June 30, 2023
	Common Stock		Additional Paid-In Capital		Retained Earnings		Accum- ulated Other Compre- hensive Loss		Common Stock Held in Treasury			Total Stock- holders’ Equity
		Shares	Amount								Shares	Amount
As of 12/31/2022		57,322	$	573	$	1,734,528	$	1,060,603	$	(106,573)	11,030	$	(809,365)	$	1,879,766
Shares issued under share-based compensation plan, net of 28 shares net-settled		—	—		(7,156)		—		—		(64)	4,693		(2,463)



Share-based compensation expense		—	—		3,375		—		—		—	—		3,375
Net income		—	—		—		47,388		—		—	—		47,388
Cash dividends ($0.33 per share)		—	—		—		(15,294)		—		—	—		(15,294)
Currency translation adjustment		—	—		—		—		29,513		—	—		29,513
Purchases of treasury stock, including excise tax		—	—		—		—		—		782	(71,411)		(71,411)

As of 3/31/2023		57,322	$	573	$	1,730,747	$	1,092,697	$	(77,060)	11,748	$	(876,083)	$	1,870,874




Share-based compensation expense		—	—		3,375		—		—		—	—		3,375
Net income		—	—		—		45,180		—		—	—		45,180
Cash dividends ($0.33 per share)		—	—		—		(15,298)		—		—	—		(15,298)
Currency translation adjustment		—	—		—		—		27,802		—	—		27,802
Purchases of treasury stock, including excise tax		—	—		—		—		—		371	(35,214)		(35,214)

As of 6/30/2023		57,322	$	573	$	1,734,122	$	1,122,579	$	(49,258)	12,119	$	(911,297)	$	1,896,719

























The accompanying notes are an integral part of these consolidated financial statements.


Pawn loans	$	11,179
Accounts receivable	796

Inventories	8,465


Property and equipment	551

Goodwill (1)	79,596
Intangible assets	1,270

Current liabilities	(2,629)





Aggregate purchase price	$	99,228


Six months ending December 31, 2024	$	62,949
2025	106,485
2026	82,524
2027	55,114
2028	33,182
Thereafter	33,098
Total	$	373,352
Less amount of lease payments representing interest	(56,089)
Total present value of lease payments	$	317,263


	Carrying Value		Estimated Fair Value
	June 30,		June 30,		Fair Value Measurements Using
	2024		2024		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	113,693	$	113,693	$	113,693	$	—	$	—
Accounts receivable, net	72,158		72,158		—		—		72,158
Pawn loans	491,731		491,731		—		—		491,731
Finance receivables, net (1)	105,401		231,587		—		—		231,587
	$	782,983	$	909,169	$	113,693	$	—	$	795,476

Financial liabilities:
Revolving unsecured credit facilities	$	150,000	$	150,000	$	—	$	150,000	$	—
Senior unsecured notes (outstanding principal)	1,550,000		1,484,000		—		1,484,000		—
	$	1,700,000	$	1,634,000	$	—	$	1,634,000	$	—


	As of June 30,				As of December 31,
	2024		2023		2023
Finance receivables, gross	$	227,694	$	216,037	$	227,474

Merchant partner discounts and premiums, net	(16,935)		(7,812)		(11,907)
Unearned origination fees	(5,397)		(4,616)		(5,212)
Finance receivables, amortized cost	205,362		203,609		210,355
Less allowance for loan losses	(99,961)		(93,054)		(96,454)
Finance receivables, net	$	105,401	$	110,555	$	113,901


	Origination Year
	2024		2023		2022		Total
As of June 30, 2024
Delinquency:
1 to 30 days past due	$	12,057	$	8,377	$	519	$	20,953
31 to 60 days past due	6,054		4,883		364		11,301
61 to 89 days past due (1)	4,089		4,754		342		9,185
Total past due finance receivables	22,200		18,014		1,225		41,439
Current finance receivables	103,684		56,747		3,492		163,923
Finance receivables, amortized cost	$	125,884	$	74,761	$	4,717	$	205,362


	Origination Year
	2023		2022		2021		Total
As of June 30, 2023
Delinquency:
1 to 30 days past due	$	11,825	$	7,141	$	613	$	19,579
31 to 60 days past due	6,002		4,136		409		10,547
61 to 89 days past due (1)	4,324		4,128		413		8,865
Total past due finance receivables	22,151		15,405		1,435		38,991
Current finance receivables	109,597		50,588		4,433		164,618
Finance receivables, amortized cost	$	131,748	$	65,993	$	5,868	$	203,609


	Three Months Ended June 30, 2024
	U.S. Pawn		Latin America Pawn		Retail POS Payment Solutions		Corporate/ Eliminations			Consolidated
Revenue:
Retail merchandise sales	$	230,093	$	134,445	$	—	$	(1,075)	(1)	$	363,463
Pawn loan fees	120,332		60,714		—		—			181,046
Leased merchandise income	—		—		194,570		—			194,570
Interest and fees on finance receivables	—		—		56,799		—			56,799
Wholesale scrap jewelry sales	26,311		8,823		—		—			35,134
Total revenue	376,736		203,982		251,369		(1,075)			831,012

Cost of revenue:
Cost of retail merchandise sold	132,449		86,276		—		(578)		(1)	218,147
Depreciation of leased merchandise	—		—		110,567		(410)		(1)	110,157
Provision for lease losses	—		—		47,824		(171)		(1)	47,653
Provision for loan losses	—		—		31,116		—			31,116
Cost of wholesale scrap jewelry sold	21,269		7,273		—		—			28,542
Total cost of revenue	153,718		93,549		189,507		(1,159)			435,615

Net revenue	223,018		110,433		61,862		84			395,397

Expenses and other income:
Operating expenses	125,192		67,902		35,275		—			228,369
Administrative expenses	—		—		—		45,576			45,576
Depreciation and amortization	7,231		5,418		678		13,220			26,547
Interest expense	—		—		—		25,187			25,187
Interest income	—		—		—		(261)			(261)
Loss on foreign exchange	—		—		—		1,437			1,437
Merger and acquisition expenses	—		—		—		1,364			1,364
Other expenses (income), net	—		—		—		1,000			1,000

Total expenses and other income	132,423		73,320		35,953		87,523			329,219

Income (loss) before income taxes	$	90,595	$	37,113	$	25,909	$	(87,439)		$	66,178


	Six Months Ended June 30, 2024
	U.S. Pawn		Latin America Pawn		Retail POS Payment Solutions		Corporate/ Eliminations			Consolidated
Revenue:
Retail merchandise sales	$	467,083	$	265,294	$	—	$	(2,093)	(1)	$	730,284
Pawn loan fees	243,306		117,275		—		—			360,581
Leased merchandise income	—		—		400,241		—			400,241
Interest and fees on finance receivables	—		—		114,186		—			114,186
Wholesale scrap jewelry sales	44,037		18,053		—		—			62,090
Total revenue	754,426		400,622		514,427		(2,093)			1,667,382

Cost of revenue:
Cost of retail merchandise sold	272,363		170,459		—		(1,146)		(1)	441,676
Depreciation of leased merchandise	—		—		231,341		(900)		(1)	230,441
Provision for lease losses	—		—		91,004		(341)		(1)	90,663
Provision for loan losses	—		—		61,534		—			61,534
Cost of wholesale scrap jewelry sold	36,535		15,296		—		—			51,831
Total cost of revenue	308,898		185,755		383,879		(2,387)			876,145

Net revenue	445,528		214,867		130,548		294			791,237

Expenses and other income:
Operating expenses	244,087		135,327		70,091		—			449,505
Administrative expenses	—		—		—		88,633			88,633
Depreciation and amortization	14,244		10,523		1,399		26,408			52,574
Interest expense	—		—		—		50,605			50,605
Interest income	—		—		—		(1,004)			(1,004)
Loss on foreign exchange	—		—		—		1,251			1,251
Merger and acquisition expenses	—		—		—		1,961			1,961
Other expenses (income), net	—		—		—		(351)			(351)

Total expenses and other income	258,331		145,850		71,490		167,503			643,174

Income (loss) before income taxes	$	187,197	$	69,017	$	59,058	$	(167,209)		$	148,063


	Three Months Ended June 30, 2023
	U.S. Pawn		Latin America Pawn		Retail POS Payment Solutions		Corporate/ Eliminations			Consolidated
Revenue:
Retail merchandise sales	$	196,043	$	126,581	$	—	$	(1,760)	(1)	$	320,864
Pawn loan fees	98,973		55,205		—		—			154,178
Leased merchandise income	—		—		189,805		—			189,805
Interest and fees on finance receivables	—		—		58,192		—			58,192
Wholesale scrap jewelry sales	17,652		9,931		—		—			27,583
Total revenue	312,668		191,717		247,997		(1,760)			750,622

Cost of revenue:
Cost of retail merchandise sold	111,539		81,660		—		(928)		(1)	192,271
Depreciation of leased merchandise	—		—		103,062		(541)		(1)	102,521
Provision for lease losses	—		—		53,048		(175)		(1)	52,873
Provision for loan losses	—		—		28,190		—			28,190
Cost of wholesale scrap jewelry sold	14,225		7,655		—		—			21,880
Total cost of revenue	125,764		89,315		184,300		(1,644)			397,735

Net revenue (loss)	186,904		102,402		63,697		(116)			352,887

Expenses and other income:
Operating expenses	108,159		59,507		37,115		—			204,781
Administrative expenses	—		—		—		40,355			40,355
Depreciation and amortization	6,330		5,203		751		14,766			27,050
Interest expense	—		—		—		21,071			21,071
Interest income	—		—		—		(408)			(408)
Gain on foreign exchange	—		—		—		(817)			(817)
Merger and acquisition expenses	—		—		—		252			252
Other expenses (income), net	—		—		—		79			79

Total expenses and other income	114,489		64,710		37,866		75,298			292,363

Income (loss) before income taxes	$	72,415	$	37,692	$	25,831	$	(75,414)		$	60,524


	Three Months Ended June 30, 2024
	U.S.	Latin America	Total
Total locations, beginning of period	1,179	1,818	2,997
New locations opened (1)	1	20	21
Locations acquired	26	—	26


Consolidation of existing pawn locations (2)	(5)	(21)	(26)

Total locations, end of period	1,201	1,817	3,018


	Six Months Ended June 30, 2024
	U.S.	Latin America	Total
Total locations, beginning of period	1,183	1,814	2,997
New locations opened (1)	1	39	40
Locations acquired	27	—	27


Consolidation of existing pawn locations (2) (3)	(10)	(36)	(46)

Total locations, end of period	1,201	1,817	3,018


													Constant Currency Basis
													Three Months
													Ended
		Three Months Ended											June 30,			Increase /
		June 30,							Increase /				2024			(Decrease)
		2024				2023			(Decrease)				(Non-GAAP)			(Non-GAAP)
Latin America Pawn Segment
Revenue:
Retail merchandise sales		$	134,445			$	126,581			6	%		$	130,688			3	%
Pawn loan fees		60,714				55,205				10	%		59,013				7	%
Wholesale scrap jewelry sales		8,823				9,931				(11)	%		8,823				(11)	%
Total revenue		203,982				191,717				6	%		198,524				4	%

Cost of revenue:
Cost of retail merchandise sold		86,276				81,660				6	%		83,871				3	%
Cost of wholesale scrap jewelry sold		7,273				7,655				(5)	%		7,070				(8)	%
Total cost of revenue		93,549				89,315				5	%		90,941				2	%

Net revenue		110,433				102,402				8	%		107,583				5	%

Segment expenses:
Operating expenses		67,902				59,507				14	%		66,044				11	%
Depreciation and amortization		5,418				5,203				4	%		5,265				1	%
Total segment expenses		73,320				64,710				13	%		71,309				10	%

Segment pre-tax operating income		$	37,113			$	37,692			(2)	%		$	36,274			(4)	%

Operating metrics:
Retail merchandise sales margin	36			%	35			%				36			%

Net revenue margin	54			%	53			%				54			%
Segment pre-tax operating margin	18			%	20			%				18			%


										Constant Currency Basis
										As of
										June 30,
	As of June 30,						Increase /			2024		Increase
	2024			2023			(Decrease)			(Non-GAAP)		(Non-GAAP)
Latin America Pawn Segment
Earning assets:
Pawn loans	$	135,389		$	134,718			—	%	$	145,045		8	%
Inventories		91,996			86,732			6	%	98,498			14	%
	$	227,385		$	221,450			3	%	$	243,543		10	%

Average outstanding pawn loan amount (in ones)	$	89		$	91			(2)	%	$	95		4	%

Composition of pawn collateral:
General merchandise	63		%	66		%
Jewelry	37		%	34		%
	100		%	100		%

Composition of inventories:
General merchandise	69		%	69		%
Jewelry	31		%	31		%
	100		%	100		%

Percentage of inventory aged greater than one year	1		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	4.3 times			4.3 times


													Constant Currency Basis
													Six Months
													Ended
		Six Months Ended											June 30,			Increase /
		June 30,							Increase /				2024			(Decrease)
		2024				2023			(Decrease)				(Non-GAAP)			(Non-GAAP)
Latin America Pawn Segment
Revenue:
Retail merchandise sales		$	265,294			$	245,518			8	%		$	249,860			2	%
Pawn loan fees		117,275				104,081				13	%		110,427				6	%
Wholesale scrap jewelry sales		18,053				28,799				(37)	%		18,053				(37)	%
Total revenue		400,622				378,398				6	%		378,340				—	%

Cost of revenue:
Cost of retail merchandise sold		170,459				159,623				7	%		160,578				1	%
Cost of wholesale scrap jewelry sold		15,296				22,300				(31)	%		14,395				(35)	%
Total cost of revenue		185,755				181,923				2	%		174,973				(4)	%

Net revenue		214,867				196,475				9	%		203,367				4	%

Segment expenses:
Operating expenses		135,327				115,263				17	%		127,643				11	%
Depreciation and amortization		10,523				10,648				(1)	%		9,919				(7)	%
Total segment expenses		145,850				125,911				16	%		137,562				9	%

Segment pre-tax operating income		$	69,017			$	70,564			(2)	%		$	65,805			(7)	%

Operating metrics:
Retail merchandise sales margin	36			%	35			%				36			%

Net revenue margin	54			%	52			%				54			%
Segment pre-tax operating margin	17			%	19			%				17			%


	Six Months Ended June 30,
	2024		2023
Cash flow provided by operating activities	$	228,719	$	205,669
Cash flow used in investing activities	$	(187,864)	$	(125,299)
Cash flow used in financing activities	$	(50,850)	$	(97,898)


	Three Months Ended June 30,								Six Months Ended June 30,
	2024		2023		2024		2023		2024		2023		2024		2023
	In Thousands		In Thousands		Per Share		Per Share		In Thousands		In Thousands		Per Share		Per Share
Net income and diluted earnings per share, as reported	$	49,073	$	45,180	$	1.08	$	0.99	$	110,441	$	92,568	$	2.44	$	2.01
Adjustments, net of tax:




Merger and acquisition expenses	1,047		191		0.03		—		1,504		213		0.03		0.01
Non-cash foreign currency loss (gain) related to lease liability	1,307		(766)		0.03		(0.01)		1,138		(1,613)		0.02		(0.04)
Amortization of acquired AFF intangible assets	9,572		10,887		0.21		0.24		19,145		21,989		0.42		0.48
Other expenses (income), net	899		61		0.02		—		(141)		96		—		—


Adjusted net income and diluted earnings per share	$	61,898	$	55,553	$	1.37	$	1.22	$	132,087	$	113,253	$	2.91	$	2.46


									Trailing Twelve
	Three Months Ended				Six Months Ended				Months Ended
	June 30,				June 30,				June 30,
	2024		2023		2024		2023		2024		2023
Net income	$	49,073	$	45,180	$	110,441	$	92,568	$	237,174	$	231,950
Income taxes		17,105		15,344		37,622		31,169		80,001		68,788
Depreciation and amortization (1)		26,547		27,050		52,574		54,161		107,574		106,469
Interest expense		25,187		21,071		50,605		41,968		101,880		80,209
Interest income		(261)		(408)		(1,004)		(925)		(1,548)		(1,340)
EBITDA		117,651		108,237		250,238		218,941		525,081		486,076
Adjustments:
Merger and acquisition expenses		1,364		252		1,961		283		9,600		3,043
Non-cash foreign currency loss (gain) related to lease liability		1,867		(1,095)		1,626		(2,305)		1,391		(2,925)
AFF purchase accounting and other adjustments (2)		—		—		—		—		13,968		16,710
Gain on revaluation of contingent acquisition consideration		—		—		—		—		—		(46,560)
Other expenses (income), net		1,000		79		(351)		124		(1,877)		278


Adjusted EBITDA	$	121,882	$	107,473	$	253,474	$	217,043	$	548,163	$	456,622


	June 30,		Favorable /
	2024	2023	(Unfavorable)
Mexican peso / U.S. dollar exchange rate:
End-of-period	18.4	17.1		(8)	%
Three months ended	17.2	17.7		3	%
Six months ended	17.1	18.2		6	%

Guatemalan quetzal / U.S. dollar exchange rate:
End-of-period	7.8	7.8		—	%
Three months ended	7.8	7.8		—	%
Six months ended	7.8	7.8		—	%

Colombian peso / U.S. dollar exchange rate:
End-of-period	4,148	4,191		1	%
Three months ended	3,927	4,431		11	%
Six months ended	3,921	4,596		15	%


	Total Number Of Shares Purchased	Average Price Paid Per Share (1)		Total Number Of Shares Purchased As Part Of Publicly Announced Plans	Approximate Dollar Value Of Shares That May Yet Be Purchased Under The Plans (1) (2)




April 1 through April 30, 2024	—	$	—	—	$	200,000
May 1 through May 31, 2024 (3)	720,950	117.90		720,950	115,000
June 1 through June 30, 2024	—	—		—	115,000
Total	720,950	117.90		720,950



Dated: July 29, 2024			FIRSTCASH HOLDINGS, INC.
			(Registrant)

			/s/ RICK L. WESSEL
			Rick L. Wessel
			Chief Executive Officer
			(On behalf of the Registrant)

			/s/ R. DOUGLAS ORR
			R. Douglas Orr
			Executive Vice President and Chief Financial Officer
			(As Principal Financial and Accounting Officer)