Loading...
•
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.
FirstCash
FirstCash
FirstCash Revenue by Segment
FirstCash Revenue by Geographic Location
Revenue by Segment
Retail Merchandise Sales Revenue
CapyFin.comPawn Loan Fees Revenue
CapyFin.comWholesale Scrap Jewelry Sales Revenue
CapyFin.comRevenue by Geographic Location
U.S. Pawn Revenue
CapyFin.comLatin America Pawn Revenue
CapyFin.com 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.
- COVID-19 could impact the Company’s ability to safely staff its stores.
- Direct impacts of COVID-19 could also significantly change consumer behavior and shopping patterns.
- Global economic uncertainty due to the COVID-19 pandemic has strengthened the relative value of the U.S. dollar and negatively impacted developing market currencies, including the Mexican peso.
Revenue & Expenses
Visualization of income flow from segment revenue to net income