UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 17, 2007
First Cash Financial Services, Inc.
(Exact name of registrant as specified in its charter)
|
Delaware |
0-19133 |
75-2237318 |
||
|
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
|
690 East Lamar Blvd., Suite 400, Arlington, Texas |
76011 |
|||
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (817) 460-3947
________________________________________________________________________________
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition.
First Cash Financial Services, Inc. has issued a press release announcing its financial results for the three and six month periods ended June 30, 2007. The Company's press release dated July 17, 2007 announcing the results is attached hereto as Exhibit 99.1 and is incorporated by reference in its entirety into this Item 2.02.
The information provided in this Item 2.02 shall not be deemed "filed" for purposes of the Securities Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by the specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits:
99.1
Press Release dated July 17, 2007 announcing the Company's financial results for the three and six month periods ended June 30, 2007.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
First Cash Financial Services, Inc.
(Registrant) |
||
|
July 17, 2007
(Date) |
/s/ R. DOUGLAS ORR
R. Douglas Orr Chief Accounting Officer |
| Exhibit Index | ||
| 99.1 | Press release dated July 17, 2007 | |
EXHIBIT 99.1
First Cash Reports Second Quarter Net Income Increase of 37%
Same-Store Sales Increase 11%; YTD New Store Openings Total 43
ARLINGTON, Texas, July 17, 2007 (PRIME NEWSWIRE) -- First Cash Financial Services, Inc. (Nasdaq:FCFS) today announced record-setting revenue, net income and earnings per share for the three months ended June 30, 2007. This marked First Cash's 26th consecutive quarter of double-digit growth in earnings per share.
Earnings
-- Diluted earnings per share for the second quarter of 2007 were
$0.27, a 35% increase compared to diluted earnings per share of
$0.20 in the second quarter of 2006.
-- For the six months ended June 30, 2007, diluted earnings per share
were $0.58, an increase of 35% over earnings per share of $0.43 for
the same six-month period in 2006.
-- Diluted earnings per share for the trailing twelve months ended
June 30, 2007 were $1.12, an increase of 32% over $0.85 for the
trailing twelve months ended June 30, 2006.
-- Net income for the second quarter of 2007 was $8.9 million, a 37%
increase over second quarter 2006 net income of $6.5 million.
Year-to-date net income was $19.2 million, compared to $14.1
million for the first six months of 2006, which represents an
increase of 36%.
Revenues
-- Consolidated revenue for the second quarter of 2007 increased by
64%, totaling $93 million compared to $56 million in the
comparative 2006 period. Year-to-date revenue was $183 million,
up from $112 million for the comparative prior-year period, which
represents a 63% increase.
-- Same-store revenue increased 11% in the Company's pawn and
short-term loan stores for the second quarter of 2007 over the
comparable prior-year period, while year-to-date same-store
revenue increased 10%.
-- Retail sales in the Company's pawn stores grew by 25% for the
quarter, much of which was attributable to operations in Mexico,
where maturing stores reflected an increased mix of higher-margin
retail sales versus scrap jewelry sales. In addition, pawn service
charge revenue increased by 23% for the quarter compared to the
prior-year period.
-- Short-term loan service charge revenue in the second quarter
increased by 20% over the prior year period, as a result of both
same-store revenue growth and new store openings.
-- The Company recorded quarterly revenue of $26 million from Auto
Master, a buy-here/pay-here automotive retailer acquired in August
2006. Of this total, $9 million was generated by the four new
dealerships opened since November 2006. Auto Master's unaudited
pre-acquisition revenue totaled $14 million for the second quarter
of 2006.
New Locations
-- A total of 20 new retail locations were opened during the second
quarter of 2007, reflecting a combination of short-term loan and
pawn stores. The Company has opened 43 stores year-to-date.
-- The Company operated 448 locations as of June 30, 2007, a 21%
increase over the 370 units open at June 30, 2006. In addition,
the Company operates 39 short-term loan kiosks through a joint
venture.
Operating Metrics
-- The Company's return on stockholders' equity increased to 19% for
the trailing twelve months ended June 30, 2007, compared to 17% for
the comparable prior-year period.
-- Domestic pawn balances totaled $22.6 million at June 30, 2007, an
increase of 14% over the prior year, while pawn balances in Mexico
totaled $15.3 million, an increase of 42% over the prior year.
Total short-term loans, including third-party credit services loans
outstanding, totaled $19.1 million at June 30, 2007, an increase of
21% compared to the prior year.
-- The gross margin on retail pawn merchandise sales for the second
quarter of 2007 was 44%, compared to 45% recorded in the prior
year, while the year-to-date margins of 44% were constant compared
to 2006. The quarter and year-to-date gross margins on wholesale
scrap jewelry sales were 34%, compared to the prior-year margins of
33%.
-- Inventory turns in the pawn stores remained constant with prior-
year results at 3.2 times per year. The number of automobiles sold
in the second quarter totaled 2,400 units; the automobile inventory
turned at a rate of 7.8 times per year.
-- The short-term loan credit loss provision for the second quarter
was 28% of fees, compared to 25% for the 2006 second quarter,
which period benefited from the sale of a portfolio of charged-off
bad debts that yielded proceeds of $349,000. The Company did not
sell any bad debts during the current quarter. The Company
considers the 2007 credit loss provision to be within the range of
normal seasonal expectations.
-- Gross margins on retail automotive sales of Auto Master were 58%
during the second quarter of 2007, while the margin net of the
credit loss provision was 26%. The second quarter credit loss
provision of 31% of retail sales reflects the effect of higher loss
provision accruals for the four new dealerships opened since
November 2006. As a result of the increasing mix of new dealership
sales, the Company continues to expect the credit loss provision
to remain at or above 30% for the second half of the year.
Financial Position & Liquidity
-- Earnings before interest, taxes, depreciation and amortization
(EBITDA) for the trailing twelve months ended June 30, 2007 totaled
$69 million, an increase of 37% over the comparative prior-year
period. The EBITDA margin for the trailing twelve months ended
June 30, 2007 was 20%. A detailed reconciliation of this non-GAAP
financial measure to net income is provided elsewhere in this
release.
-- At June 30, 2007, interest-bearing debt was $31 million, compared
to $41 million at September 30, 2006, the quarter-end immediately
following the acquisition of Auto Master. The Company expects to
retire all or a significant portion of the $23 million debt that
remains outstanding under its $50 million line of credit by the end
of the current year.
-- The ratio of total assets to total liabilities at June 30, 2007
was 5 to 1; the current ratio was 7 to 1.
2007 Outlook
-- The Company is maintaining its current earnings per share guidance
for 2007 at an estimated range of $1.25 to $1.30 per share. This
represents an increase of 29% to 34% over 2006 diluted earnings
per share.
-- For fiscal 2007, the Company continues to project the opening of
75 to 80 pawn and short-term loan locations and 3 to 5 new Auto
Master dealerships. In total, the Company projects 78 to 85
combined new unit openings for 2007, an increase of 19% to 21%
over the fiscal 2006 count.
Commentary & Analysis
Rick Wessel, Chief Executive Officer, commented on the second quarter results, "We again achieved record-breaking growth and profitability performance this quarter as the Company realized strong results from each of its key revenue categories and geographic regions. These results further validate our long-term growth strategy for expanding our product offerings into high-potential markets in both the U.S. and Mexico, as well as our recent decision to further diversify our product portfolio with the acquisition of Auto Master."
Top line revenue growth at 64% over the prior-year quarter was especially strong. Pawn revenue grew by 29% in Mexico and 9% in the U.S., while U.S. short-term loan revenue grew by 20%. In addition, Auto Master provided a significant contribution through strong unit sales at both its mature dealerships and four new dealerships. The Company also realized significant growth in operating profits from each revenue category, as credit provisions for both the short-term loan product and automotive receivables were within the Company's internal forecast range.
With a total of 43 new stores opened to date, the Company's store opening forecast for 2007 remains on target. According to Mr. Wessel, "Our growth strategy is driven by disciplined store openings in the U.S. and Mexican markets, focused on areas where there is strong demand for consumer finance products and attractive retail sites. We expect same-store revenue growth to remain significant for the foreseeable future due to the large number of newer stores in our development pipeline." As of June 30, over 40% of the Company's stores are less than three years old.
Mr. Wessel also noted, "The financial position and cash flow metrics of First Cash remain impressive. This allows us tremendous flexibility for funding our current aggressive internal growth strategy, while providing funds for potential future accretive investment opportunities as they arise."
In summarizing the Company's prospects for 2007 and beyond, Mr. Wessel stated, "The management of First Cash is extremely excited about the operating results for the current quarter and for our prospects in the future. We have a proven track record for consistently achieving strong operating results, adhering to a consistent strategic vision, and a commitment to building long-term shareholder value."
Forward-Looking Information
This release may contain forward-looking statements about the business, financial condition and prospects of First Cash Financial Services, Inc. ("First Cash" or the "Company"). Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as "believes," "projects," "expects," "may," "estimates," "should," "plans," "intends," "could," or "anticipates," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Forward-looking statements in this release inc lude, without limitation, the Company's expectations of earnings per share, earnings growth, expansion strategies, store and dealership openings, future liquidity, cash flows, credit loss provisions, debt repayments, consumer demand for the Company's products and services, competition, and other performance results. These statements are made to provide the public with management's current assessment of the Company's business. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, there can be no assurances that such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained in this release speak only as of the date of this statement, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, condi tions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in this release. Such factors are difficult to predict and many are beyond the control of the Company and may include changes in regional, national or international economic conditions, changes in consumer borrowing and repayment behaviors, changes in credit markets, credit losses, changes or increases in competition, the ability to locate, open and staff new stores and dealerships, the availability or access to sources of inventory, inclement weather, the ability to successfully integrate acquisitions, the ability to retain key management personnel, the ability to operate with limited regulation as a credit services organization in Texas, new legislative initiatives or governmental regulations (or changes to existing laws and regulations) affecting short-term loan/payday advance businesses, credit services organizations, pawn businesses and buy-here/pay-here automotive businesses in both the U.S. and Mexico, unforeseen litigation, changes in interest rates, changes in tax rates or policies, changes in gold prices, changes in energy prices, changes in used-vehicle prices, cost of funds, changes in foreign currency exchange rates, future business decisions, and other uncertainties. These and other risks and uncertainties are further and more completely described in the Company's 2006 Annual Report on Form 10-K (see "Item 1A. Risk Factors") and updated in subsequent releases on Form 10-Q.
About First Cash
First Cash Financial Services, Inc. is a leading specialty retailer and provider of consumer financial services. Its pawn stores make small loans secured by pledged personal property, retail a wide variety of jewelry, electronics, tools and other merchandise, and in many locations, provide short-term loans and credit services products. The Company's short-term loan locations provide various combinations of short-term loan products, check-cashing, credit services and other financial services products. First Cash also operates automobile dealerships focused on the "buy-here/pay-here" segment of the used-vehicle retail market. In total, the Company owns and operates over 448 stores and buy-here/pay-here dealerships in thirteen U.S. states and ten states in Mexico. First Cash is also an equal partner in Cash & Go, Ltd., a joint venture, which owns and operates 39 check-cashing and financial services kiosks located inside convenience stores.
First Cash has been recognized for five consecutive years by Forbes magazine as one of its "200 Best Small Companies." This annual ranking is based on a combination of profitability and growth performance measures over the most current one and five-year periods. In addition, First Cash is a component company in both the Standard & Poors SmallCap 600 Index(r) and the Russell 2000 Index(r).
First Cash's common stock (ticker symbol "FCFS") is traded on the Nasdaq Global Select Market, which has the highest initial listing standards of any stock exchange in the world based on financial and liquidity requirements.
The First Cash Financial Services, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3365
FIRST CASH FINANCIAL SERVICES, INC.
STORE COUNT ACTIVITY
The following tables detail store openings and closings for the three
months and six months ended June 30, 2007:
Short-Term
Loan/ Buy-Here/
Check- Pay-Here
Pawn Cashing Automotive Total
Stores Stores Dealerships Locations
------ --------- ----------- ---------
Three Months Ended
June 30, 2007
------------------
Total locations,
beginning of period 261 156 12 429
New locations opened 7 13 -- 20
Locations closed
or consolidated (1) -- -- (1)
--- --- --- ---
Total locations,
end of period 267 169 12 448
=== === === ===
Six Months Ended
June 30, 2007
----------------
Total locations,
beginning of period 251 146 10 407
New locations opened 18 23 2 43
Locations closed
or consolidated (2) -- -- (2)
--- --- --- ---
Total locations,
end of period 267 169 12 448
==== === === ===
For the three months and six months ended June 30, 2007, the Company's
50% owned joint venture, Cash & Go, Ltd., operated a total of 39
kiosks located inside convenience stores in the state of Texas, which
are not included in the above charts. During the six months ending
June 30, 2007, the Company closed one Cash & Go, Ltd. kiosk.
In addition to the store closings listed above, the Company is closing
two short-term loan locations in Oregon in July 2007 as
a result of new state-wide regulatory restrictions. The costs
associated with these two store closings were accrued in the quarter
ended June 30, 2007. The Company will have five remaining locations
in Oregon.
FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------------------
2007 2006 (a) 2007 2006 (a)
---- ------- ---- -------
(unaudited)
(in thousands, except per share amounts)
Revenue:
Merchandise sales $ 58,264 $ 29,353 $ 115,498 $ 58,862
Finance and service
charges 33,431 26,100 65,150 51,206
Other 1,025 922 2,232 2,007
--------- --------- --------- ---------
92,720 56,375 182,880 112,075
--------- --------- --------- ---------
Cost of revenue:
Cost of goods sold 30,898 17,017 61,064 34,533
Credit loss provision 12,364 3,755 21,594 4,539
Other 104 96 212 190
--------- --------- --------- ---------
43,366 20,868 82,870 39,262
--------- --------- --------- ---------
Net revenue 49,354 35,507 100,010 72,813
--------- --------- --------- ---------
Expenses and other income:
Store operating expenses 24,852 18,648 49,054 36,767
Administrative expenses 7,311 5,064 14,768 10,770
Depreciation and
amortization 2,805 1,895 5,257 3,600
Interest expense 367 -- 709 --
Interest income (18) (329) (38) (550)
--------- --------- --------- ---------
35,317 25,278 69,750 50,587
--------- --------- --------- ---------
Income before income taxes 14,037 10,229 30,260 22,226
Provision for income taxes 5,152 3,734 11,096 8,109
--------- --------- --------- ---------
Net income $ 8,885 $ 6,495 $ 19,164 $ 14,117
========= ========= ========= =========
Net income per share:
Basic $ 0.28 $ 0.20 $ 0.60 $ 0.44
========= ========= ========= =========
Diluted $ 0.27 $ 0.20 $ 0.58 $ 0.43
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 32,004 31,758 31,862 31,802
========= ========= ========= =========
Diluted 33,413 33,209 33,296 33,158
========= ========= ========= =========
(a) On August 25, 2006, the Company acquired Guaranteed Auto Finance,
Inc. and SHAC, Inc. (collectively doing business as "Auto
Master"). Accordingly, the Condensed Consolidated Statements of
Income for the three and six month periods ending June 30, 2006
do not include the results of Auto Master.
FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30,
------------------------
2007 2006 (a)
---- -------
(unaudited)
(in thousands)
ASSETS
Cash and cash equivalents $ 18,779 $ 28,770
Finance and service charges receivable 5,710 4,499
Customer receivables, net of allowances 69,361 36,065
Inventories 32,168 21,439
Prepaid expenses and other current assets 8,634 6,651
--------- ---------
Total current assets 134,652 97,424
Customer receivables with long-term maturities,
net of allowance 25,563 --
Property and equipment, net 38,988 27,004
Goodwill and other intangible assets, net 72,459 53,237
Other 1,322 1,132
--------- ---------
Total assets $ 272,984 $ 178,797
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of notes payable $ 2,250 $ --
Accounts payable 1,626 902
Accrued liabilities 16,269 10,725
--------- ---------
Total current liabilities 20,145 11,627
Revolving credit facility 22,900 --
Notes payable, net of current portion 6,063 --
Deferred income taxes payable 8,138 9,035
--------- ---------
Total liabilities 57,246 20,662
Stockholders' equity 215,738 158,135
--------- ---------
Total liabilities and stockholders' equity $ 272,984 $ 178,797
========= =========
(a) On August 25, 2006, the Company acquired Guaranteed Auto Finance,
Inc. and SHAC, Inc. (collectively doing business as "Auto
Master"). Accordingly, the Condensed Consolidated Balance Sheet
as of June 30, 2006 does not include the accounts of Auto Master.
FIRST CASH FINANCIAL SERVICES, INC.
REVENUE, COST OF REVENUE AND NET REVENUE BY PRODUCT LINE
The following tables detail revenue, cost of revenue and net
revenue by product line for the three months ended June 30, 2007
and June 30, 2006 (unaudited, amounts in thousands):
Short-Term
Loan/ Buy-Here/
Check- Pay-Here
Pawn Cashing Automotive Total
----- ---------- ---------- -----
Three Months Ended
June 30, 2007
------------------
Revenue:
Merchandise sales:
Retail $ 26,419 $ -- $ 23,530 $ 49,949
Wholesale 7,584 -- 731 8,315
Finance and service
charges 13,959 17,703 1,769 33,431
Other 14 974 37 1,025
--------- --------- --------- ---------
$ 47,976 $ 18,677 $ 26,067 $ 92,720
--------- --------- --------- ---------
Cost of revenue:
Cost of goods sold:
Retail $ 14,924 $ -- $ 9,920 $ 24,844
Wholesale 5,037 -- 1,017 6,054
Credit loss
provision -- 4,985 7,379 12,364
Other -- 104 -- 104
--------- --------- --------- ---------
$ 19,961 $ 5,089 $ 18,316 $ 43,366
--------- --------- --------- ---------
Net revenue $ 28,015 $ 13,588 $ 7,751 $ 49,354
========= ========= ========= =========
Three Months Ended
June 30, 2006
------------------
Revenue:
Merchandise sales:
Retail $ 21,169 $ -- $ -- $ 21,169
Wholesale 8,184 -- -- 8,184
Finance and service
charges 11,334 14,766 -- 26,100
Other 11 911 -- 922
--------- --------- --------- ---------
$ 40,698 $ 15,677 $ -- $ 56,375
--------- --------- --------- ---------
Cost of revenue:
Cost of goods sold:
Retail $ 11,542 $ -- $ -- $ 11,542
Wholesale 5,475 -- -- 5,475
Credit loss provision -- 3,755 -- 3,755
Other -- 96 -- 96
--------- --------- --------- ---------
$ 17,017 $ 3,851 $ -- $ 20,868
--------- --------- --------- ---------
Net revenue $ 23,681 $ 11,826 $ -- $ 35,507
========= ========= ========= =========
FIRST CASH FINANCIAL SERVICES, INC.
REVENUE, COST OF REVENUE AND NET REVENUE BY PRODUCT LINE
(CONTINUED)
The following tables detail revenue, cost of revenue and net
revenue by product line for the six months ended June 30, 2007 and
June 30, 2006 (unaudited, amounts in thousands):
Short-Term
Loan/ Buy-Here/
Check- Pay-Here
Pawn Cashing Automotive Total
---- ---------- ---------- -----
Six Months Ended
June 30, 2007
----------------
Revenue:
Merchandise sales:
Retail $ 52,613 $ -- $ 45,902 $ 98,515
Wholesale 15,835 -- 1,148 16,983
Finance and service
charges 27,345 34,662 3,143 65,150
Other 26 2,124 82 2,232
--------- --------- --------- ---------
$ 95,819 $ 36,786 $ 50,275 $ 182,880
--------- --------- --------- ---------
Cost of revenue:
Cost of goods sold:
Retail $ 29,592 $ -- $ 19,308 $ 48,900
Wholesale 10,527 -- 1,637 12,164
Credit loss provision -- 7,516 14,078 21,594
Other -- 212 -- 212
--------- --------- --------- ---------
$ 40,119 $ 7,728 $ 35,023 $ 82,870
--------- --------- --------- ---------
Net revenue $ 55,700 $ 29,058 $ 15,252 $ 100,010
Six Months Ended
June 30, 2006
----------------
Revenue:
Merchandise sales:
Retail $ 43,771 $ -- $ -- $ 43,771
Wholesale 15,091 -- -- 15,091
Finance and service
charges 22,400 28,806 -- 51,206
Other 23 1,984 -- 2,007
--------- --------- --------- ---------
$ 81,285 $ 30,790 -- $ 112,075
--------- --------- --------- ---------
Cost of revenue:
Cost of goods sold:
Retail $ 24,349 $ -- $ -- 24,349
Wholesale 10,184 -- -- 10,184
Credit loss provision -- 4,539 -- 4,539
Other -- 190 -- 190
--------- --------- --------- ---------
$ 34,533 $ 4,729 $ -- $ 39,262
--------- --------- --------- ---------
Net revenue $ 46,752 $ 26,061 $ -- $ 72,813
========= ========= ========= =========
FIRST CASH FINANCIAL SERVICES, INC.
SELECTED ASSETS BY PRODUCT LINE
The following table details selected assets by product line as of
June 30, 2007 and June 30, 2006 (unaudited, amounts in thousands):
Short-Term
Loan/ Buy-Here/
Check- Pay-Here
Pawn Cashing Automotive Total
--------- --------- ---------- ---------
June 30, 2007
-------------
Customer receivables,
with current and
long-term maturities $ 37,949 $ 7,777 $ 62,583 $ 108,309
CSO loans held by
independent third-
party lender (a) -- 11,336 -- 11,336
Allowances for
doubtful accounts -- (791) (13,102) (13,893)
--------- --------- --------- ---------
$ 37,949 $ 18,322 $ 49,481 $ 105,752
--------- --------- --------- ---------
Inventories $ 26,272 $ -- $ 5,896 $ 32,168
========= ========= ========= =========
June 30, 2006
-------------
Customer receivables,
with current and
long-term maturities $ 30,713 $ 5,550 $ -- $ 36,263
CSO loans held by
independent third-
party lender (a) -- 10,305 -- 10,305
Allowances for
doubtful accounts -- (639) -- (639)
--------- --------- --------- ---------
$ 30,713 $ 15,216 $ -- $ 45,929
--------- --------- --------- ---------
Inventories $ 21,439 $ -- $ -- $ 21,439
========= ========= ========= =========
(a) CSO loans outstanding are comprised of the principal portion
of active CSO loans outstanding from an independent
third-party lender, which are not included on the Company's
balance sheet.
FIRST CASH FINANCIAL SERVICES, INC.
UNAUDITED NON-GAAP FINANCIAL INFORMATION -- EBITDA
EBITDA is commonly used by investors to assess a company's leverage
capacity, liquidity and financial performance. EBITDA is not
considered a measure of financial performance under U.S. generally
accepted accounting principles ("GAAP"), and the items excluded from
EBITDA are significant components in understanding and assessing the
Company's financial performance. Since EBITDA is not a measure
determined in accordance with GAAP and is thus susceptible to varying
calculations, EBITDA, as presented, may not be comparable to other
similarly titled measures of other companies. EBITDA should not be
considered as an alternative to net income, cash flows provided by or
used in operating, investing or financing activities or other
financial statement data presented in the Company's consolidated
financial statements as an indicator of financial performance or
liquidity. Non-GAAP measures should be evaluated in conjunction
with, and are not a substitute for, GAAP financial measures. The
following table provides a reconciliation of net income to EBITDA
(unaudited, amounts in thousands):
Trailing Twelve Months Ended
June 30,
-----------------------
2007 2006
---- ----
Net income $ 36,791 $ 28,208
Adjustments:
Income taxes 20,843 15,913
Depreciation and amortization 9,698 6,742
Interest expense 1,625 --
Interest income (215) (696)
--------- ---------
Earnings before interest, income taxes,
depreciation and amortization $ 68,742 $ 50,167
========= =========
EBITDA margin calculated as follows:
Total revenue $ 340,527 $ 226,523
Earnings before interest, income taxes,
depreciation and amortization 68,742 50,167
--------- ---------
EBITDA as a percent of revenue 20% 22%
========= =========
CONTACT: First Cash Financial Services, Inc.
Rick Wessel, Vice Chairman & Chief Executive Officer
Doug Orr, Executive Vice President & Chief Financial Officer
(817) 505-3199
investorrelations@firstcash.com
www.firstcash.com