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Mar 31, 2024
FirstCash Q1 2024 Earnings Report
FirstCash reported record first quarter operating results, with earnings per share increasing 32% in total and 24% on an adjusted basis. The company announced acquisitions of 22 U.S. pawn stores and 19 new store openings in LatAm, and declared a quarterly cash dividend.
Key Takeaways
FirstCash Holdings, Inc. reported record first quarter operating results, driven by strong core pawn operations and double-digit revenue growth in the retail POS payment solutions segment. The company's earnings per share increased by 32% and adjusted earnings per share increased by 24%.
Gross revenues totaled $836 million, an increase of 10% compared to the prior-year quarter.
Diluted earnings per share increased 32% over the prior-year quarter on a GAAP basis.
Net income increased 30% over the prior-year quarter on a GAAP basis.
Adjusted EBITDA increased 20% in the first quarter compared to the prior-year quarter.
FirstCash
FirstCash
FirstCash Revenue by Segment
FirstCash Revenue by Geographic Location
Revenue by Segment
Retail Merchandise Sales Revenue
CapyFin.comPawn Loan Fees Revenue
CapyFin.comLeased Merchandise Income Revenue
CapyFin.comInterest & Fees on Finance Receivables 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
The Company’s outlook for 2024 continues to be highly positive, with expected year-over-year growth in revenue and earnings in all segments driven by the continued growth in earning asset balances coupled with recent store additions.
Positive Outlook
- Pawn operations are expected to remain the primary earnings driver in 2024.
- The Company is now targeting the addition of approximately 90 to 100 locations in 2024 through new store openings and acquisitions.
- U.S. pawn operations are expected to benefit in 2024 from full year revenue and earnings contributions from recent store acquisitions.
- Retail sales are expected to follow similar trends to pawn fees with retail margins of 40% or more.
- Despite softer than expected retail sales during the first quarter at many of AFF’s furniture merchant partners, the Company is still projecting growth in gross transaction volumes, which are now expected to grow 4% to 8% in 2024.
Challenges Ahead
- Year-over-year same-store receivable growth in April continues at a similar pace, although as a reminder, these growth rates for the balance of 2024 are expected to moderate as the Company begins to lap the significant prior year growth in pawn receivables beginning in the second quarter of 2023.
- Latin America pawn loan growth to-date in April is currently up approximately 18% on a dollar basis and 9% on a constant currency basis as compared to the prior-year period and full year 2024 fee growth is anticipated to remain in a mid-single digit range or better assuming foreign exchange rates remain steady.
- Retail sales in Latin America are also expected to grow, although at a slightly slower rate than pawn fees given current inventory levels, which remain below historical levels as a percentage of pawn receivables.
- Store operating expenses in Latin America this year are expected to rise in a range of 7% to 10% for the full year compared to last year due to increased store counts along with continued inflationary impacts (primarily related to further minimum wage increases in Latin America).
- The full year loss provision expense for 2024 is expected to remain in line with origination activity, with anticipated provision rates (combined provision for lease and loan losses as a percentage of the total gross transaction volume originated) ranging between 28% and 32% in the second quarter of 2024 and 27% and 31% for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income