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Jun 30, 2024
FirstCash Q2 2024 Earnings Report
FirstCash reported record revenues and strong earnings growth, driven by outstanding U.S. pawn segment performance and solid results in LatAm pawn and AFF segments. The company invested in core pawn operations, adding 47 pawn locations and repurchasing $85 million of stock.
Key Takeaways
FirstCash Holdings, Inc. reported an 11% increase in gross revenues to $831 million for the second quarter, with a 9% increase in net income to $49.1 million, or $1.08 per diluted share. Adjusted net income was $61.9 million, or $1.37 per diluted share. The company added 47 new pawn locations and repurchased $85 million of stock.
Gross revenues increased by 11% to $831 million in Q2 2024.
U.S. pawn segment income grew by 25% in Q2 2024.
47 new pawn locations were added through acquisitions and new store openings.
The company repurchased $85 million of stock and increased the quarterly cash dividend to $0.38 per share.
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 consolidated revenue and earnings 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, contributing over 80% of total segment level pre-tax income.
- The Company continues to target the addition of approximately 90 to 100 total pawn locations for 2024 through a combination of new store openings and acquisitions.
- U.S. pawn operations are expected to benefit in 2024 from full year revenue and earnings contributions from the 87 stores acquired in the second half of 2023 coupled with further growth from the 27 stores acquired in the first half of 2024.
- The Company is still projecting its full year and second half gross transaction volumes for 2024 to exceed 2023 results for AFF.
- Combined operating and administrative expenses for AFF for the full year are expected to be approximately 1% to 3% below the prior year through cost saving initiatives and continued realization of operating synergies with FirstCash.
Challenges Ahead
- Retail sales for many of AFF’s furniture, appliance and electronics merchant partners were down during the first half of 2024.
- Resulting gross revenues for the second half of 2024 are expected to be flat to down slightly compared to the prior year due to lower second quarter origination activity and resulting receivable balances for AFF.
- The origination and revenue outlook contemplates the recently announced bankruptcy filing of Conn’s Home Plus and assumes minimal originations going forward from this merchant relationship.
- The second half lease and loan loss provision expense for 2024 is expected to increase given an improving second half origination forecast, with anticipated provision rates ranging between 26% and 30% in the second half of the year for AFF.
- Store operating expenses in Latin America this year are expected to rise in a range of 7% to 10% on a constant currency basis 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income