Loading...
•
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.
Revenue by Segment
Revenue by Geographic Location
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.
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
Loading earnings performance data...
Loading earnings reaction data...