Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — First Cash Financial Services — Investor Presentation (April 2006)
30 slides from Firstcash's investor presentation, April 2006
Slide 1: First Cash Financial Services Investor Presentation - April 2006
FIRST CASH FINANCIAL SERVICES INVESTOR PRESENTATION - APRIL 2006
Slide 2: Safe Harbor Statement
Safe Harbor Statement • Certain statements included in this presentation which are not historical in nature, including statements regarding the Company’s and/or management’s strategies, beliefs, expectations, plans for new stores, projections of earnings and revenues, expected effect of regulatory p
Slide 3: First Cash Overview
First Cash Overview • Leading provider of diversified specialty consumer finance products • Superior earnings performance and financial position • Significant future growth through store expansion FIRST CASH FINANCIAL SERVICES
Slide 4: Company History
Company History 1988 Founded – 3 pawn stores in Texas Early 90’s Goes public; multi-state pawn store roll-up acquisitions Late 90’s Payday lending acquisitions; introduction of payday product in pawn stores First pawn stores opened in Mexico 2001 to present Expansion through new store openings: U.S.
Slide 5: Store Count Growth
Store Count Growth Payday Advance Stores 348 Mexico Pawn Stores 328 U.S. Pawn Stores 284 113 102 235 87 190 75 158 139 59 130 100 46 60 4 29 108 102 100 97 96 96 2001 2002 2003 2004 2005 Q1 2006 FIRST CASH FINANCIAL SERVICES
Slide 6: Geographic Markets & Product Offerings
Geographic Markets & Product Offerings As of March 31, 2006 3 Locations in: 7 • 11 states in the 21 U.S. 7 • 7 states in 10 D.C. D.C. Mexico 15 2 2 3 3 7 58 71 Pawn stores 18 1 27 Pawn stores with payday 27 advance/credit services Payday advance/credit services 3 27 stores 36 FIRST CASH FINANCIAL SE
Slide 7: Revenue Mix
Revenue Mix Millions $120 Pawn Payday Advance $100 Total Trailing $80 12 Month Revenues: $216 million $60 $40 Revenues $20 Gross Profit $0 Pawn Pawn Service Fees Payday Advance & Check Cashing & Merchandise Credit Services Other Sales Fees FIRST CASH FINANCIAL SERVICES
Slide 8: Pawn Loan Product
Pawn Loan Product • Short-term loan secured by pledged personal property – No credit check – No bank account required • Regulations vary by state - typically provide for: – 30 day term – 10% to 20% monthly service fee FIRST CASH FINANCIAL SERVICES
Slide 9: Pawn Customer Demographics
Pawn Customer Demographics First Cash Pawn Loan Growth • Many un-banked or Millions $30 Mexico Pawn under-banked customers $25 U.S. Pawn • Both in the U.S. and… $20 • In Mexico, where: $15 – 88% of retail transactions are $10 in cash $5 – An estimated 80% of the population is un-banked $0 2001 2002
Slide 10: Pawn-Related Retail Sales
Pawn-Related Retail Sales Composition of Retail Inventories • Retail inventories are primarily Gold acquired via forfeited pawn loan Jewelry collateral 58% Electronics 24% • Gold jewelry represents 58% of the retail inventory Tools Retail Metrics (trailing 12 Months) 7% • Total merchandise margins 4
Slide 11: Payday Advance Product
Payday Advance Product • Loan size: $100 to $1,000 • Term: 7 to 31 days • Typical service charge per advance: 15% • Proof of employment and active bank account required – but no credit check • Advance secured by personal check held until due date FIRST CASH FINANCIAL SERVICES
Slide 12: Payday Advance Regulatory Landscape
Payday Advance Regulatory Landscape FDIC regulations affect only payday 3 lending in other states where “bank 7 model” is used First Cash does not 9 utilize the bank model in any state 10 D.C and is therefore 15 not subject to FDIC regulations 3 7 States with industry favorable payday advance legisl
Slide 13: Credit Services Product
Credit Services Product • In its Texas locations, First Cash has elected to operate as a Credit Services Organization (“CSO”) • As a CSO, First Cash provides customers access to a short-term loan funded by an independent consumer lending company – Customer pays a fee to CSO for its services: • proce
Slide 14: Superior Performance & Financial Position
Superior Performance & Financial Position Revenues • Operating Results Millions – Industry leading $250 performance metrics $200 – Consistent growth $150 – Increasing profit margins • Financial Position $100 – Debt-free $50 – Strong cash flows $0 2000 2001 2002 2003 2004 2005 FIRST CASH FINANCIAL SE
Slide 15: 2006 - First Quarter Highlights
2006 - First Quarter Highlights • Q1 diluted EPS of $0.23 – Up 28% over prior year – Exceeded consensus estimate by $0.02 – 21st consecutive quarter of double-digit EPS growth • Other highlights: – Quarterly revenues up 19%, to $56 million – Net income of $7.6 million, up 26% – 20 new stores, a reco
Slide 16: Earnings Per Share Growth
Earnings Per Share Growth 2006 Estimate: 24% $0.93 to $0.94 to 22 $0.76 25% Q4 24% $0.61 $0.23 Q3 29% $0.49 $0.18 Q2 31% $0.19 $0.38 $0.14 Q1 $0.29 $0.15 $0.11 $0.09 $0.12 $0.16 $0.09 $0.12 $0.07 $0.10 $0.08 $0.23 $0.06 $0.18 $0.12 $0.15 $0.08 $0.10 2001 2002 2003 2004 2005 2006 Reflects two-for-one
Slide 17: Consistency of Growth & Earnings
Consistency of Growth & Earnings Trailing 12 Months Diluted Earnings per Share $0.90 $0.80 $0.70 Forbes 200 Best $0.60 Small $0.50 Companies 4 straight years $0.40 $0.30 $0.20 $0.10 Fortune Small $0.00 Business 100 2 straight years Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep
Slide 18: 2006 Earnings & Growth Expectations
2006 Earnings & Growth Expectations • Earnings per share forecast – Raised guidance at end of Q1 to: $0.93 to $0.94 per share – Represents 22% to 24% increase over 2005 EPS – Q2 earnings forecast for $0.18 to $0.19 • Store Openings – 60 - 70 new store openings projected for 2006 • Pawn (Mexico) • Pa
Slide 19: Increasing Market Visibility & Liquidity
Increasing Market Visibility & Liquidity Two-for-one stock split effective February 6, 2006 Market Cap $700 $600 $500 $400 Millions $300 $200 $100 $0 2000 2001 2002 2003 2004 2005 03/31/06 FIRST CASH FINANCIAL SERVICES
Slide 20: Balance Sheet Growth
Balance Sheet Growth Millions Assets Liabilities Equity $197 $186 $162 $140 $123 $131 $21 $23 $18 $23 $49 $44 $163 $176 $144 $117 $74 $87 2001 2002 2003 2004 2005 Mar-06 FIRST CASH FINANCIAL SERVICES
Slide 21: Net Cash Position
Net Cash Position Millions $60 $50 Cash $40 Interest Bearing Debt $30 $56 $43 $20 $26 $10 $11 $13 $16 $7 $0 -$6 -$10 -$30 -$35 -$20 -$44 -$30 -$40 -$50 2000 2001 2002 2003 2004 2005 Q1 2006 FIRST CASH FINANCIAL SERVICES
Slide 22: Utilization of Cash Flows
Utilization of Cash Flows • All store openings funded from current cash flows – Loan growth at new & existing stores – Capital expenditures for new stores – Start-up costs for new stores • Stock repurchases of $24 million over past two years New location under construction in Tijuana, Mexico FIRST C
Slide 23: Growth Strategy
Growth Strategy • New store openings in multiple markets – United States – Mexico • Diversified product line – Pawn loans & related retail – Payday advances – Credit services First Cash Advance location in Hurst, Texas FIRST CASH FINANCIAL SERVICES
Slide 24: New Store Openings
New Store Openings 60 52 47 50 50 2006 2006Projection: Projection: 38 60 60––70 70 40 New NewStores Stores New 30 Stores 18 20 10 0 2001 2002 2003 2004 2005 2006 4th Qtr 11 14 13 12 16 3rd Qtr 3 10 12 13 9 2nd Qtr 3 6 11 13 10 1st Qtr 1 8 11 14 15 20 FIRST CASH FINANCIAL SERVICES
Slide 25: New Store Financial Model
New Store Financial Model Cap Ex $80,000 to $150,000 - Leasehold improvements - Computer & security equipment Working Capital (first year) $80,000 to $150,000 - Operating cash - Loan funding - Inventory (pawn only) Start-up Losses $40,000 to $60,000 - Pre-opening - First six months of operation Tota
Slide 26: Mexico Expansion Markets
Mexico Expansion Markets FIRST CASH FINANCIAL SERVICES
Slide 27: First Cash Pawn Stores in Mexico
First Cash Pawn Stores in Mexico FIRST CASH FINANCIAL SERVICES
Slide 28: U.S. Payday Expansion
U.S. Payday Expansion • Continued growth in key Texas markets: – Dallas/Fort Worth – Houston – San Antonio/Austin – Other mid-sized markets in Texas • First stores in Michigan opened in Q2 of 2006 FIRST CASH FINANCIAL SERVICES
Slide 29: First Cash Summary
First Cash Summary • Industry leader in a fast growth sector – Strong demand for specialty consumer finance products – Multiple products: pawn and payday advance • Superior financial metrics – 21 consecutive quarters (over five years) of double-digit EPS growth – Strong cash flows; no debt • Well-de
Slide 30: Investor contact information
FIRST CASH FINANCIAL SERVICES Investor contact information: •Phone: 817.505.3199 •Email: [email protected] •Website: www.firstcash.com
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