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Mar 31, 2021
FirstCash Q1 2021 Earnings Report
Reported strong first-quarter earnings and cash flows, exceeding internal expectations, highlighting the diversity of FirstCash’s business model and continued profitability despite COVID-19 impacts.
Key Takeaways
FirstCash reported strong first-quarter earnings results and cash flows, exceeding internal expectations. Diluted earnings per share increased 5% on a GAAP basis. The company opened 24 new stores in Latin America and acquired two U.S. stores. The Board of Directors declared a $0.30 per share quarterly cash dividend, an increase of 11% compared to the previous quarterly dividend.
Retail results were stronger than anticipated, driving a 3% increase in merchandise gross profit compared to Q1 2020.
Retail sales gross margins of 42% remained at record levels, a significant improvement over the 38% in Q1 2020.
Improving pawn loan demand in Latin America was offset by lower demand in the U.S., impacted by stimulus payments.
The adjusted EBITDA margin was over 16%, equaling the pre-pandemic margin in Q1 2020.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Given the continued uncertainties related to COVID-19, the Company is not currently providing earnings guidance. However, the following factors are expected to impact operating trends in 2021:
Positive Outlook
- The extent to which COVID-19 continues to impact the Company’s operations will depend on future developments, which remain uncertain and cannot be predicted with confidence.
- The Company has a solid pipeline of additional stores leased, under construction or completed and awaiting permits.
- The Company expects 50 to 60 new store openings in 2021.
- The Company continues to believe there are significant opportunities for accretive consolidations, expansions and/or relocations of acquired small format stores in Mexico.
- Daily new loan origination activity has started to improve since early April, with same-store new loan volumes currently down approximately 25% to 30% compared to 2019, indicating that the impact from the latest round of stimulus payments has peaked and is beginning to recover.
Challenges Ahead
- U.S. pawn loan demand has dampened slightly this year, which the Company attributes primarily to the two rounds of federal stimulus payments.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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