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Sep 30, 2021
FirstCash Q3 2021 Earnings Report
FirstCash reported strong third quarter results, announced a U.S. pawn acquisition of 18 stores, and declared a quarterly cash dividend of $0.30 per share.
Key Takeaways
FirstCash's third quarter saw accelerated revenue and earnings momentum, driven by a 29% growth in pawn receivables and strong retail operations in both the U.S. and Latin America. Store-level profit before taxes increased by 37% compared to the previous year. The company also announced an 18-store acquisition of U.S. pawn stores in the Gulf Coast region and repurchased 688,000 shares of stock year-to-date.
Diluted earnings per share for the third quarter increased 128% on a GAAP basis and 42% on an adjusted non-GAAP basis compared to the prior-year quarter.
EBITDA and Adjusted EBITDA for the third quarter increased 85% and 39%, respectively, compared to the prior-year quarter.
Consolidated pawn loans outstanding at quarter end increased 29% over the prior year while retail merchandise inventories increased 51% compared to last year.
Total pawn fees increased 22% in the third quarter compared to the prior-year quarter, while retail sales increased 14%.
FirstCash
FirstCash
FirstCash Revenue by Segment
FirstCash Revenue by Geographic Location
Revenue by Segment
Retail Merchandise Sales Revenue
CapyFin.comPawn Loan Fees 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
Given the continued uncertainties related to COVID-19 and the associated government assistance programs enacted in response, the Company is not providing 2021 earnings guidance. However, several factors are expected to impact operating trends throughout the remainder of 2021.
Challenges Ahead
- Although pawn lending demand continues to recover, beginning same-store pawn balances entering the fourth quarter are down approximately 13% in the U.S. compared to pre-pandemic levels at the beginning of the fourth quarter of 2019.
- In Latin America, same-store pawn loans at the beginning of the fourth quarter are 8% below the same date in 2019.
- While inventories continue to normalize to pre-pandemic levels, same-store inventory levels in both the U.S. and Latin America are still down 9% and 19%, respectively, as of September 30, 2021 compared to the same date in 2019.
- For the full year of 2021, the effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 25.5% to 26.5% compared to 25.8% in 2020.
- Through September, the Company has opened 50 new stores and continues to expect up to 60 new store additions for the full year 2021.
Revenue & Expenses
Visualization of income flow from segment revenue to net income