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Jun 30, 2022
FirstCash Q2 2022 Earnings Report
FirstCash reported record second quarter earnings results, driven by strong revenue growth from core pawn operations. Consolidated same-store pawn fees grew 20%, and consolidated retail sales were up 10% on a same-store basis. Pawn segment earnings increased 36% in the U.S. and 18% in Latin America.
Key Takeaways
FirstCash reported record second quarter results with significant revenue growth from pawn operations and the recently acquired AFF operations. Consolidated same-store pawn fees grew 20% and retail sales were up 10% on a same-store basis. The company increased its quarterly dividend by 10% to $0.33 per share.
Diluted earnings per share increased 159% on a GAAP basis to $1.81.
Adjusted non-GAAP diluted earnings per share increased 52% to $1.08 compared to the prior-year quarter.
Consolidated revenues totaled $648 million, a second quarter record, representing a 66% increase over the prior-year quarter.
EBITDA and Adjusted EBITDA for the second quarter of 2022 increased 167% and 68%, respectively, 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 outlook for 2022 remains very positive as it continues to expect significant year-over-year revenue and earnings growth based on first half results and current trends.
Positive Outlook
- Pawn operations are expected to remain the primary earnings driver for 2022.
- Inflationary economic environments have historically driven increased customer demand for both pawn loans and value-priced merchandise offered in pawn stores.
- Demand for pawn loans in the U.S. continues to be robust, with continued growth in pawn receivable balances.
- In Latin America, growth in pawn balances accelerated significantly in the second quarter with pawn receivables now above 2019 levels for the first time since the pandemic began.
- AFF is expected to generate full year growth in gross transaction volumes and total revenues, primarily from increased door counts from both new and existing merchant relationships.
Challenges Ahead
- Despite macroeconomic headwinds negatively impacting retail sales at many of AFF’s retail merchant partners.
- Increases in wages and certain other operating costs across all markets are expected in 2022, including Mexico in particular.
- AFF’s estimated lease and loan loss provisioning for the remainder of the year is expected to reflect higher, pre-pandemic loss rates with additional provisioning for certain portfolios given the current macroeconomic environment.
- The current trading level for the Mexican peso to the U.S. dollar is approximately 20.5 to 1.
- Each full point change in the exchange rate of the peso represents an approximate $0.08 annual impact on earnings per share.
Revenue & Expenses
Visualization of income flow from segment revenue to net income