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Mar 31, 2020
FirstCash Q1 2020 Earnings Report
FirstCash reported first quarter earnings and revenues, added 67 locations with acquisition and new store openings, and provided a COVID-19 update.
Key Takeaways
FirstCash's first quarter earnings exceeded expectations, driven by accelerated retail demand in March, which continued into April. Consolidated revenues were flat year-over-year, but core pawn operations revenue increased by 3%. The company is withdrawing its earnings guidance for 2020 due to COVID-19 uncertainties.
Approximately 98% of FirstCash's 2,740 stores in the United States and Latin America remain open.
FirstCash's balance sheet and liquidity remain strong with over $80 million of cash on hand and $200 million of available borrowing capacity.
First quarter earnings were better than expected, driven by retail demand acceleration in March.
Company acquired a 36-store independent chain of small-format pawnshops located in central Mexico during the first quarter of 2020.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Due to the uncertainty around COVID-19 and the associated volatility of the Mexican peso, the Company is withdrawing its previous earnings guidance given on January 29, 2020.
Positive Outlook
- The extent to which COVID-19 impacts the Company’s operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence.
- Strong pipeline of new stores under lease and in development.
- Average investment in new Latin American stores is relatively small.
- Pawnshops have historically served unbanked and underbanked consumers well in periods of economic uncertainty and credit contraction.
- Implemented significant safety protocols in stores so they can remain open to offer essential services.
Challenges Ahead
- Duration, severity and scope of the outbreak and impact on customer retail traffic and borrowing demand.
- No assurance that the company will remain designated as an essential service or that government officials will not expand business closures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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