Firstcash Holdings, Inc. · NASDAQ:FCFS
Firstcash — First Cash Financial Services — Merger or Acquisition (June 2016)
19 slides from Firstcash's merger presentation, Jun 14, 2016
Slide 1: Merger of Equals
Merger of Equals Creating a leading operator of retail pawn stores in the United States and Latin America June 14, 2016
Slide 2: Forward looking statements
Forward looking statements This presentation contains “forward‐looking statements” (as defined in the Securities Litigation Reform Act of 1995) regarding, among other things, future events or the future financial performance of First Cash and Cash America. Words such as “anticipate,” “expect,” “proj
Slide 3: Additional information and where to find it
Additional information and where to find it This presentation is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the proposed transaction between First Cash and Ca
Slide 4: Synergies estimate update
Synergies estimate update First Cash and Cash America have identified additional operating cost synergies of ~$10mm, increasing expected annual operating cost savings to ~$45mm from ~$35mm Additional annual operating synergies − Additional synergies are related to updated estimates of technology a
Slide 5: Transaction overview
Transaction overview First Cash Financial Services and Cash America International announce a merger of equals 100% stock‐for‐stock Transaction structure Tax‐free transaction Fixed exchange ratio 0.840x FCFS shares for each CSH share Pro forma market cap. Approximately $2.3 billion as of 6/10
Slide 6: A strong platform with premier, proven management team
A strong platform with premier, proven management team Well positioned for greater success and value creation than either company could achieve on its own Compelling Enhanced scale and geographic reach: creates leading operator of more than 2,000 retail pawn strategic stores in the United States a
Slide 7: Natural partners with scale in complementary geographies and business lines
Natural partners with scale in complementary geographies and business lines (Q1 2016 LTM figures; $ in millions) Pro forma 337 1,156 (55%) Store count by U.S. geographic region Latin America 1,273 819 2,092 936 936 819 (45%) 22% 55% 45% Core revenue U.S. breakdown by $656 $948 $1,604 Latin America g
Slide 8: Powerful financial combination
Powerful financial combination (1) (Q1 2016 LTM figures; $ in millions) Pro forma Revenue $712 $1,035 $1,747 Adjusted EBITDA $129 (2) $115 (3) $289 (4) Net income $57 $30 $129 (5) Pawn receivables $127 $211 $338 Total debt / 1.9x 1.6x 1.5x (4) adjusted EBITDA Market cap. $1.3bn $1.0bn $2.3bn (6/10/1
Slide 9: Estimated synergies and integration costs
Estimated synergies and integration costs Estimated amounts Timing Adjusted EBITDA Pre‐tax earnings ~$45 million, primarily from ~$25 million of technology, finance and other synergies Annual operating administrative synergies expected to be cost synergies phased‐in in No contemplated store cl
Slide 10: Enhanced scale with limited overlap
Enhanced scale with limited overlap Combined entity will have over 2,000 stores − 1,156 stores across 26 states in the U.S. with 936 stores in Latin America U.S. operations – 26 states Mexico operations – all states Sonora Chihuahua Coahuila Quintana Roo Top 10 states by store count Durango Nuevo
Slide 11: Ongoing growth strategy
Ongoing growth strategy Latin America will be the primary store growth vehicle ‐ significant untapped potential in the region Latin America Existing Latin American growth profile growth strategy remains in place Existing country presence − First Cash reported Q1 2016 revenue Near‐term expansion Me
Slide 12: Expected combined company long term credit facility
Expected combined company long term credit facility Pro forma balance sheet and cash flows of combined company will enhance credit profile − ~$2.0bn in assets − ~$1.3bn in equity − Debt to equity ratio less than 0.5 to 1 First Cash and Cash America have engaged Wells Fargo to arrange a new unsec
Slide 13: Limited exposure to new CFPB rules
Limited exposure to new CFPB rules On June 2, 2016, the U.S. Consumer Financial Protection Bureau (CFPB) released its proposed rules that affect payday loans, auto title loans, deposit advance products and certain high‐cost installment and open‐end loans − The proposed rules include, among other t
Slide 14: Significant franchise and shareholder value
Significant franchise and shareholder value 1 Creation of leading operator of retail pawn stores with over 2,000 stores in the United States and Latin America 2 Financial strength to enhance expansion plans in Latin America and to support capital returns to shareholders 3 $289mm LTM 1Q’16 adjusted E
Slide 15: Appendix
Appendix 14
Slide 16: Adjusted net income and adjusted earnings per share
Adjusted net income and adjusted earnings per share First Cash Financial Services, Inc. Three months ended March 31, 2016 2015 ($ in thousands, except per share data) $ Per diluted share $ Per diluted share Net income $13,174 $0.47 $16,788 $0.59 Adjustments, net of tax: Non‐recurring restructuring e
Slide 17: Adjusted EBITDA
Adjusted EBITDA First Cash Financial Services, Inc. Three months ended Trailing twelve months March 31, ended March 31, ($ in thousands) 2016 2016 Net income $13,174 $57,096 Provision for income taxes 6,487 25,857 Depreciation and amortization(1) 4,937 17,925 Interest expense 4,460 17,327 Interest i
Slide 18: Adjusted earnings and adjusted earnings per share
Adjusted earnings and adjusted earnings per share Cash America International, Inc. Three months ended March 31, 2016 2015 ($ in thousands, except per share data) $ Per diluted share $ Per diluted share Net income and diluted net income per share $10,633 $0.42 $7,845 $0.27 Adjustments, net of tax: Lo
Slide 19: Adjusted EBITDA
Adjusted EBITDA Cash America International, Inc. Three months ended Trailing twelve months March 31, ended March 31, ($ in thousands) 2016 2016 Net income $10,633 $30,354 Provision for income taxes 5,322 15,888 Gain on disposition of equity securities (117) (1,679) Loss on early extinguishment of de
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