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
February 13, 2018
(Date of Report - Date of Earliest Event Reported)
FIRSTCASH, INC.
(Exact name of registrant as specified in its charter)
Delaware (State or other jurisdiction of incorporation) | 001-10960 (Commission File Number) | 75-2237318 (IRS Employer Identification No.) |
1600 West 7th Street, Fort Worth, Texas 76102
(Address of principal executive offices, including zip code)
(817) 335-1100
(Registrant’s telephone number, including area code)
NONE
(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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 7.01 Regulation FD Disclosure.
FirstCash, Inc. has made available on its corporate website (ir.firstcash.com) its most recent investor presentation. This presentation is included herein as Exhibits 99.1.
The information provided in this Item 7.01 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange 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 | |||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: February 13, 2018 | FIRSTCASH, INC. |
(Registrant) | |
/s/ R. DOUGLAS ORR | |
R. Douglas Orr | |
Executive Vice President and Chief Financial Officer | |
(As Principal Financial and Accounting Officer) | |
3
INVESTOR PRESENTATION
FEBRUARY 2018
EXHIBIT 99.1
FORWARD LOOKING STATEMENTS
2
“This presentation contains forward-looking statements about the business, financial condition and prospects of FirstCash,
Inc. and its wholly owned subsidiaries (together, 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,” “targets,” “intends,” “could,” “would,”
“anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable
terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking
statements can also be identified by the fact 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. These forward-looking statements are made to provide the public with management’s current assessment of
the Company’s business. Although the Company believes the expectations reflected in forward-looking statements are
reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned such
forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from
those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation,
the risks, uncertainties and regulatory developments discussed and described in (i) the Company’s 2016 annual report
on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2017, including the risks
described in Part 1, Item 1A, “Risk Factors” thereof, (ii) the Company’s quarterly report on Form 10-Q filed with the
SEC on November 1, 2017, including the risks described in Part II, Item 1A, “Risk Factors” thereof, and (iii) the other
reports filed with the SEC, including the Company’s forthcoming Annual Report on Form 10-K. Many of these risks
and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all
of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking
statements. The forward-looking statements contained in this presentation speak only as of the date of this presentation,
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, conditions or circumstances
on which any such statement is based, except as required by law.”
3
$132
$180
$273
2015 2016 2017
$705
$1,088
$1,780
2015 2016 2017
ADJUSTED EBITDA(1)
OVERVIEW REVENUE
1 See “Non-GAAP Financial Information” and “Reconciliation of Net Income to EBITDA and Adjusted EBITDA in the Appendix.
Source: Company filings.
($ IN MILLIONS)
• Leading pawn operator with over 2,100 store
locations in 26 U.S. states and Latin America,
including Mexico, Guatemala and El Salvador
• Retailer of pre-owned consumer products including:
– Consumer electronics & appliances
– Jewelry, diamonds & watches
– Power tools, musical instruments & sporting
goods
• Source of small, short-term pawn loans
– Fully collateralized
– No collections / credit reporting
• Attractive industry dynamics
– Steady demand across economic cycles –
recession resistant
– Customer base is underserved – most
lenders don’t offer loans of $150 or less
– Stable regulatory environment
($ IN MILLIONS)
AT A GLANCE
LARGEST PAWN OPERATOR IN THE AMERICAS
OVER 2,100 STORES IN FOUR COUNTRIES
4
MEXICO OPERATIONS – 953 STORES IN 32 STATESU.S. OPERATIONS – 1,112 STORES IN 26 STATES
CENTRAL AMERICA OPERATIONS – 46 STORES
33
11
27
6
35
7
412
18
25
25 35
119
26
43
40
27
448
76
25
2
30
1
6 28
3
WA
ID
CA
NV
OR
AZ
CO
MT
NM
UT
WY
TX
KS
OK
IL IN
IA
MN
NE
ND
SD WI
MS
AL
AR
KY
LA
MO
FL
GA
NC
SC
VA
OH
CT
ME
MI
NH
NY
PA
VT
MA
NJ
MD
WV
RI
DE
TN
AK
DC
HI
Guatemala
33
El Salvador 13
Baja California
Baja California Sur
Sinaloa
Sonora Chihuahua Coahuila
Nuevo Leon
Tamaulipas
Quintana Roo
Yucatan
San Luis Potosi
Campeche
Chiapas
Tabasco
Oaxaca
Morelos
Estado de Mexico
Guerrero
Durango
Nayarit
Zacatecas
Aguascalientes
Jalisco
Colima
Michoacán
Guanajuato
Puebla
953
Estado de
Ciudad de
Mexico
Veracruz
Queretaro
Tlaxcala
Hidalgo
Note: As of 12-31-17
PAWN-FOCUSED PRODUCT MIX
TRAILING TWELVE MONTHS (TTM)
5
59%
29%
4%
8%
TOTAL REVENUE NET REVENUE
39%
54%
6% 1%
$1.8 BILLION $0.9 BILLION
Note: As of 12/31/2017
PAWN STORE
RETAIL SALES
PAWN FEES
SCRAP JEWELRY
SALES
CONSUMER LOAN/
SERVICE FEES
CONSOLIDATED GROSS MARGIN BY PRODUCT TYPE
35% 100% 6% 74%
TYPICAL PAWN TRANSACTION CYCLE
TOTAL TRANSACTION TIME LESS THAN 15 MINUTES
6
~20% ~80%
CUSTOMER ENTERS STORE WITH
PERSONAL ASSET
PAWN SERVICE FEES
MONTHLY YIELD = 12% - 13%
CUSTOMER REPAYS LOAN &
PAWN SERVICE FEE
~25% ~75%
SELLS ASSET TO COMPANY
PAWN LOAN*
(COLLATERALIZED WITH ASSET)
AVERAGE LOAN = U.S. $162 LATAM $64
RETAIL SALES
TYPICAL MARGIN = 35%
Note: *As of 12/31/2017
CUSTOMER DOES NOT REPAY
LOAN OR FEE
CASH AMERICA MERGER UPDATE
• TRANSFORMATIONAL MERGER WITH CASH AMERICA CLOSED IN SEPTEMBER 2016
– 100% STOCK-FOR-STOCK TAX FREE TRANSACTION, 0.840X FCFS SHARES FOR EACH CSH SHARE
– COMPLETED HEADQUARTERS CONSOLIDATION OF CORPORATE OPERATIONS INTO CASH AMERICA OWNED
BUILDING IN FORT WORTH, TEXAS IN Q1 2017
– ADDITIONAL OPPORTUNITIES TO CONSOLIDATE CORPORATE EXPENSES AND SUPPORT FUNCTIONS
• STORES
– ENHANCED SCALE AND GEOGRAPHIC REACH: CREATES LEADING OPERATOR OF APPROXIMATELY 1,100 RETAIL
PAWN STORES IN THE UNITED STATES
– MAINTAIN ESTABLISHED FIRST CASH AND CASH AMERICA “BRANDS” IN LOCAL MARKETS
– INTEGRATE INCENTIVE COMPENSATION PLANS WITH FOCUS ON KEY PROFITABILITY METRICS
• TECHNOLOGY
– COMPLETED INTEGRATION TO THE FIRSTCASH FIRSTPAWN POS PLATFORM IN DECEMBER 2017
– CONSOLIDATION OF BACK OFFICE FINANCE AND HR COMPLETED 12/31/2017
7
MERGER SYNERGIES DRIVE ADDITIONAL ACCRETION
8
Annual
operating
cost synergies
ESTIMATED AMOUNTS
AT TIME OF MERGER
ACHIEVED AS OF
DECEMBER 2017
• ~$45 MILLION PRIMARILY FROM
TECHNOLOGY, FINANCE AND OTHER
ADMINISTRATIVE SYNERGIES
ACHIEVED BY MID 2018
• MINIMAL STORE CLOSINGS
• UP TO ~$28 MILLION • APPROXIMATELY $24 MILLION
• ~$17 – $20 MILLION PRIMARILY
FROM TECHNOLOGY PLATFORM
SYNERGIES
• $43 MILLION IN 2017ANNUAL OPERATING
COST SYNERGIES
ANNUAL
DEPRECIATION AND
AMORTIZATION
SAVINGS
TRANSACTION AND
INTEGRATION COSTS
EXPECTED OPPORTUNITIES
IN 2018
• ~$70 MILLION OR MORE OF
RUN RATE SYNERGIES EXPECTED
TO BE ACHIEVED BY MID 2018
• ADDITIONAL $2-4 MILLION IN
2018
• $19 MILLION IN 2017
ANNUALIZED TTM ADMIN AND D&A EXPENSES
9
Note: Excludes merger related expenses
($ IN MILLIONS ON A TTM BASIS)
$165 $161 $151 $140 $132 $122
$70 $67
$63
$59
$57
$55
$235
$228
$213
$199
$189
$177
$239
$-
$50
$100
$150
$200
$250
Q3-2016 Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017
Proforma Admin Exp. Proforma Depreciation and Amortization Exp. Proforma Pre-Merger Expense
Q4: 2017 vs. 2015
Down $62 or 26%
LATIN AMERICA OVERVIEW
MEXICO, GUATEMALA, EL SALVADOR
AND COLOMBIA
ALMOST 1,000 LATIN AMERICA LOCATIONS
11
705
909
953
32
46
46
4
29
60
100
130
157
207
269
329
386
447
538
597
674
737
955
999
0
100
200
300
400
500
600
700
800
900
1,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Mexico Central America
TOTAL LATIN AMERICA LOCATIONS, END OF PERIOD
10 Year CAGR
17%
$101 $141
$175 $222
$281 $322
$363 $388 $368
$417
$487
$101
$143
$206
$250
$312
$378
$419
$468
$527
$688
$812
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Total Revenue, USD CC Revenue, 2007 MXN @ 10.94
LATAM REVENUE GROWTH & CURRENCY IMPACT
1 Constant currency revenue is considered a non-GAAP measurement of financial performance
12
1
($ IN MILLIONS)
10 Year CAGR
23%
13
LATAM SEGMENTS REPRESENT A SIGNIFICANT % OF FIRSTCASH’S
CONSOLIDATED OPERATIONS
7,931
47%
8,942
53%
Employee Count1
LatAm U.S.
1,112
53%
999
47%
1,711,019
62%
1,062,837
38%
Store Count1
Number of Pawn Loans
Outstanding1
1 As of: 12/31/2017
LATAM OPERATING TRENDS: Q4-2017
14
• STRONG GROWTH IN TOTAL REVENUE
IN THE FOURTH QUARTER
– UP 22% ON A USD $ TRANSLATED BASIS
– UP 16% ON A CONSTANT CURRENCY BASIS
• CONTINUED ACCELERATION OF SAME-
STORE GROWTH METRICS
• 36% RETAIL MARGINS REMAINED
STRONG GIVEN HIGH CONCENTRATION
OF GENERAL MERCHANDISE SALES
11% 11% 11%
12%
15%
14%
23%
26%
25%
0%
4%
8%
12%
16%
20%
24%
28%
Pawn Loans Retail Sales Core Revenue
Same-Store Two-Year Growth1
Q4-2016 Q4-2017
1 Growth rates calculated on a constant currency basis, a non-GAAP measure defined in the 2/1/2018 press release and
reconciled to the most comparable GAAP measures in the financial statements of the same release.
LATAM PAWN AND INVENTORY COMPOSITION
15
LATAM OPERATIONS SEGMENT
20%
62%
12%
2%
2%
2%
PAWN COLLATERAL
25%
60%
10%
1%
2%
2%
INVENTORY
Note: As of 12-31-17
JEWELRY ELECTRONICS TOOLS SPORTING GOODS MUSICAL INSTRUMENTS OTHER
LATAM GROWTH STRATEGY
EXISTING LATIN AMERICAN GROWTH
PROFILE REMAINS IN PLACE
SUBSTANTIAL INFRASTRUCTURE AND CASH
FLOWS TO ACCOMPLISH NEW ACQUISITIONS
AND DE NOVO EXPANSION
SIGNIFICANT RUNWAY FOR CONTINUED
STORE OPENINGS AND STRATEGIC
ACQUISITIONS IN MEXICO & GUATEMALA
FIRST STORES IN COLOMBIA SCHEDULED TO
OPEN IN EARLY 2018
LOOK STRATEGICALLY FOR ADDITIONAL
EXPANSION AND ACQUISITION
OPPORTUNITIES IN OTHER LATIN AMERICAN
MARKETS
LATIN AMERICA CONTINUES TO BE THE PRIMARY STORE GROWTH VEHICLE - SIGNIFICANT UNTAPPED POTENTIAL IN THE REGION
French Guiana
Suriname
Guyana
Panama
Costa Rica
Nicaragua
El Salvador
Honduras
Guatemala
Argentina
Bolivia
Brazil
Chile
Peru
Uruguay
Venezuela
Mexico
Paraguay
Belize
LATIN AMERICA
GROWTH STRATEGY EXISTING COUNTRY PRESENCE
NEAR-TERM EXPANSION
OPPORTUNITIES
16
Colombia
Ecuador
0%
40%
80%
120%
160%
200%
Loans % of GDP
CREDIT PENETRATION OF SELECT COUNTRIES
17
1 Mexico ranks amongst the lowest within LatAm countries with 22.2% of GDP
Source: J.P. Morgan and Central Bank of Brazil
0
50
100
150
200
250
300
350
400
1990 2000 2010 2016
Bil
lio
ns
Colombia GDP (Current USD $)
Population
mid-2017
(millions) mid-2030 mid-2050
Brazil 207.9 223.9 231.1
Colombia 49.3 55.4 61.5
Argentina 44.3 49.0 54.1
Peru 31.8 36.4 41.2
Venezuela 31.4 36.1 40.5
Chile 18.4 20.0 21.1
Ecuador 16.8 19.7 23.2
U.S. 325.4 357.7 396.8
Pop. ProjectionsNEW MARKET UPDATE
RATIONALE FOR COLOMBIA EXPANSION
18
FRENCH GUIANA
BRAZIL
ARGENTINA
CHILE
URUGUAY
VENEZUELA
COLOMBIA1
SURINAME
ECUADOR
PERU
BOLIVIA
PARAGUAY
GUYANA
Note: 1 Early 2018 planned market entry
PROVEN NEW STORE OPENING PROCESS
19
OPENED FIRST STORES IN MEXICO IN 1999
EXPERIENCED REAL ESTATE DEVELOPMENT TEAM
PROVEN SITE SELECTION STRATEGY
STANDARDIZED STORE LAYOUTS, FIXTURES AND EQUIPMENT
STATE OF THE ART SECURITY TECHNOLOGY
CONSISTENT PROCESS ENSURES THE NEW STORES ARE DELIVERED ON TIME AND WITHIN BUDGET
UNDEVELOPED SITE SAME SITE AFTER REDEVELOPMENT
Year 1 Year 2 Year 3 Year 4 Year 5
Op Margin (4%) 17% 22% 24% 26%
$0
$40
$80
$120
$160
$200
$0
$100
$200
$300
$400
$500
Year 1 Year 2 Year 3 Year 4 Year 5
St
o
re
-l
e
ve
l p
ro
fi
t U
SD
$
(
Th
o
us
an
d
s)
R
e
ve
n
u
e
U
SD
$
(
Th
o
u
sa
n
d
s)
Revenue Store-level Profit
MEXICO NEW STORE USD $ INVESTMENT –
PROVEN RAPID PAYBACK MODEL
Typical Mexico New Store Ramp
New Store Cash Flow
Store Investment (USD $)
Cap Ex
- Leasehold improvements &
fixtures
- Computer & security
equipment
$160,000
Start-up Losses
- Pre-opening
- First six months of operation
$25,000
Total Store Investment $185,000
Working Capital (USD $)
First Year for New Store
- Operating cash
- Loan funding
- Inventory
$90,000
CUMULATIVE BREAK-EVEN POINT = APPROXIMATELY 3 YEARS`
20
($ IN USD)
1 Store-Level Operating Profit Before Administrative Expense & Taxes; Data is Based on NSO From 2005-2017
1
UNITED STATES OVERVIEW
LOCATIONS IN 26 STATES
U.S. – Over 1,100 LOCATIONS IN 26 STATES
22
SHARED MARKETS
33
11
27
6
35
7
412
18
25
25 35
119
26
43
40
27
448
76
25
2
30
1
6 28
3
WA
ID
CA
NV
OR
AZ
CO
MT
NM
UT
WY
TX
KS
OK
IL
IN
IA
MN
NE
ND
SD WI
MS
AL
AR
KY
LA
MO
FL
GA
NC
SC
VA
OH
CT
ME
MI
NH
NY
PA
VT
MA
NJ
MD
WV
RI
DE
TN
AK
DC
HI
Note: As of 12-31-17
LEGACY FIRST CASH LEGACY CASH AMERICA
U.S. OPERATING TRENDS: Q4-2017
23
• LEGACY FIRST CASH STORES CONTINUE TO
SEE SOLID SAME-STORE INCREASES:
– SAME-STORE PAWN LOANS UP 6%
– SAME-STORE PAWN FEE REVENUE UP 3%
• INVENTORIES LEVELS REFLECTED SIGNIFICANT
REDUCTIONS IN AGED INVENTORIES –
ESPECIALLY IN CASH AMERICA LOCATIONS
WHERE AGED INVENTORIES:
– WERE 14% AT Q2-2017
– IMPROVED TO 11% AT Q3-2017
– FURTHER IMPROVED TO 7% AT Q4-2017
92%
90% 90% 93% 95%
8%
10% 10%
7%
5%
$331
$308 $301 $309
$277
$0
$50
$100
$150
$200
$250
$300
$350
Q4-2016 Q1-2017 Q2-2017 Q3-2017 Q4-2017
Th
o
u
san
d
s
CONSOLIDATED INVENTORY LEVELS
($ IN MILLIONS)
Current INV Aged INV
1
1 Aged inventory defined as inventory aged 361+ days
24
U.S. PAWN AND INVENTORY COMPOSITION
U.S. OPERATIONS SEGMENT
PAWN COLLATERAL INVENTORY
Note: As of 12-31-17
JEWELRY ELECTRONICS TOOLS SPORTING GOODS MUSICAL INSTRUMENTS OTHER
58%
18%
9%
3%
8%
4%
65%
17%
6%
3%
6%
3%
U.S. EARNINGS GROWTH STRATEGY
25
•CONTINUE SCOUTING ACQUISITIONS IN EXISTING STATES
– ORGANIC DEMAND AS UNBANKED AND UNDERBANKED DEMOGRAPHICS
CONTINUE TO GROW
– CONTINUED OPPORTUNITIES FOR SMALLER “TUCK-IN” ACQUISITIONS
•DRIVE FURTHER MERGER SYNERGIES & MARGIN IMPROVEMENT
– ADDITIONAL SYNERGIES EXPECTED IN 2018
– INCREASED RETAIL MARGINS, ESPECIALLY IN LEGACY CASH AMERICA
LOCATIONS
– EXPECTING PAWN LOAN GROWTH IN SECOND HALF OF 2018 AND BEYOND
STABLE REGULATORY CLIMATE FOR PAWN
26
• PAWN LOANS ARE DIFFERENT FROM TRADITIONAL CONSUMER LOAN PRODUCTS
AND NOT SUBJECT TO THE CFPB SMALL DOLLAR LOAN RULES BECAUSE THEY:
– ARE NON-RECOURSE LOANS
– HAVE SIGNIFICANTLY SMALLER AVERAGE LOAN SIZES
– DO NOT INVOLVE CREDIT CHECKS, COLLECTION ACTIVITIES, ACH TRANSACTIONS OR NEGATIVE
CREDIT REPORTING
• REGULATIONS ARE PRIMARILY AT THE STATE LEVEL IN THE U.S. AND THE FEDERAL
LEVEL IN LATIN AMERICA
• NO SIGNIFICANT NEGATIVE REGULATORY CHANGES IN THE LAST 25 YEARS
• STATES WITH A POSITIVE RATE CHANGE INCLUDE:
– OHIO (119 STORES): ENACTED MARCH 28, 2017
– WASHINGTON (33 STORES): ENACTED JULY 24, 2015
– ARIZONA (35 STORES): ENACTED JULY 24, 2014
– NEVADA (27 STORES): ENACTED OCTOBER 1, 2011
Note: As of 12-31-17
98%
2%
LIMITED EXPOSURE TO CFPB RULES FOR PAYDAY LENDING
27
TARGET REVENUE MIX (NEXT 3-5 YEARS)
96%
4%
CONSUMER LENDING
PAWN OPERATIONS
Q4-2017 TTM
REVENUE MIX IS PRIMARILY PAWN RELATED
• IN OCTOBER 2017, THE CFPB RELEASED ITS SMALL-DOLLAR LOAN RULE (THE “SDL RULE”), WHICH IS
SCHEDULED TO TAKE EFFECT IN JULY 2019. IF THE SDL RULE TAKES EFFECT, IT WILL IMPACT SHORT-TERM
SMALL DOLLAR LOAN PRODUCTS SUCH AS PAYDAY LOANS, AUTO TITLE LOANS AND CERTAIN INSTALLMENT
LOANS. IMPORTANTLY, THE SDL RULE DOES NOT APPLY TO NON-RECOURSE PAWN LOANS.
– THE PROPOSED RULES INCLUDE, AMONG OTHER THINGS:
– ADDITIONAL UNDERWRITING REQUIREMENTS
– COOLING-OFF PERIODS BETWEEN CERTAIN LOANS
– LIMITATIONS TO PREVENT THE SUSTAINED USE OF CERTAIN LOANS SUCH AS CAPPING THE NUMBER OF ROLLOVERS
– RESTRICTIONS ON COLLECTION PRACTICES
• TRADITIONAL PAWN LOANS ARE EXCLUDED FROM THE SCOPE OF THE NEW CFPB RULES
FINANCIAL HIGHLIGHTS
ADJUSTED NET INCOME AND ADJUSTED EBITDA
29
($ IN MILLIONS)
Note: Adjusted Net Income and Adjusted Net EBITDA are non-GAAP numbers. See appendix for reconciliation to Net Income.
$68
$85
$131$132
$180
$273
$0
$40
$80
$120
$160
$200
$240
$280
2015 2016 2017
Adjusted Net Income Adjusted EBITDA
OPERATING CASH FLOW AND ADJUSTED FREE CASH FLOW
30
($ IN MILLIONS)
Note: Adjusted Free Cash Flow is a non-GAAP number. See appendix for reconciliation to Adjusted Free Cash Flow from Operating Activities.
$93 $97
$220
$68 $68
$231
$0
$40
$80
$120
$160
$200
$240
2015 2016 2017
Operating Activities Cash Flow Adjusted Free Cash Flow
31
ADJUSTED EARNINGS PER SHARE
1 Adjusted earnings measures for 2017 exclude the impact of the Tax Act, merger and acquisition related expenses and the loss on extinguishment of debt from the senior
notes refinancing, which are further described, along with the adjustments for 2016 results, in the detailed reconciliations of adjusted earnings provided elsewhere in this
presentation 2 The guidance for fiscal 2018 is presented on a non-GAAP basis, as it does not include the impact of Merger expenses. Given the difficulty in predicting the
amount and timing of future ongoing Merger expenses, the Company cannot reasonably provide a full reconciliation of adjusted guidance to GAAP guidance. However, the
Company expects Merger expenses to be within a range of $0.03 to $0.06 per share, net of tax, for fiscal 2018.
$2.42 $2.44
$2.74
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
2015 2016 2017 2018
Guidance
Adjusted Net Income Per Share 2018 Guidance
GUIDANCE RANGE2:
$3.15 - $3.35
1
GUIDANCE AS PROVIDED ON FEBRUARY 1, 2018
FIRSTCASH FISCAL 2018 OUTLOOK
32
•THE COMPANY IS INITIATING ITS FISCAL FULL-YEAR 2018 GUIDANCE FOR ADJUSTED
DILUTED EARNINGS PER SHARE TO BE IN THE RANGE OF $3.15 TO $3.351
•REPRESENTS ADJUSTED EARNINGS PER SHARE GROWTH TO BE IN A RANGE OF 15% TO 22%
•KEY ASSUMPTIONS:
•AN ESTIMATED EXCHANGE RATE OF APPROXIMATELY 20.0 MEXICAN PESOS / U.S. DOLLAR
REPRESENTS EARNINGS HEADWIND OF APPROXIMATELY $0.08 TO $0.10 PER SHARE FOR 2018
•AN EXPECTED EFFECTIVE INCOME TAX RATE FOR FISCAL 2018 OF APPROXIMATELY 26.5% TO 27.5%
•AN ANTICIPATED EARNINGS DRAG OF APPROXIMATELY $0.14 TO $0.17 PER SHARE DUE TO
EXPECTED STRATEGIC REDUCTIONS IN CONSUMER LENDING OPERATIONS
1 The guidance, announced on 2/1/2018, for fiscal 2018 is presented on a non-GAAP basis, as it does not include the impact of Merger expenses. Given the
difficulty in predicting the amount and timing of future ongoing Merger expenses, the Company cannot reasonably provide a full reconciliation of adjusted
guidance to GAAP guidance. However, the Company expects Merger expenses to be within a range of $0.03 to $0.06 per share, net of tax, for fiscal 2018.
33
($ IN MILLIONS)
DIVIDENDS, SHARE REPURCHASES AND PAYOUT RATIO
$93
$37
$39
$44 $40
$20
$130
47%
55%
58%
23%
99%
0%
20%
40%
60%
80%
100%
$0
$20
$40
$60
$80
$100
$120
$140
2013 2014 2015 2016 2017
Share Repurchases Dividends Payout Ratio, Adjusted Net Income
PAYOUT RATIO DEFINED AS TOTAL
DIVIDENDS AND SHARE REPURCHASES AS
A PERCENT OF ADJUSTED NET INCOME
1 Temporarily suspended share repurchases due to merger activity.
1
$0.125
$0.19 $0.22
$0.125
$0.19
$0.22 $0.125
$0.19
$0.22
$0.19
$0.20
$0.22
$0.57
$0.77
$0.88
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
2016 2017 2018
Projected
Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4
34
DIVIDENDS CONTINUE TO GROW PER SHARE AMOUNTS
2018 GUIDANCE:
★ IDENTIFIES SEQUENTIAL QUARTER-
OVER-QUARTER DIVIDEND INCREASE
BALANCE SHEET
($ IN MILLIONS)
35
$1,209 $1,138
$936
$925
$2,145 $2,063
$0
$500
$1,000
$1,500
$2,000
12/31/2016
Assets
12/31/2017
Assets
Operating Assets Intangibles
$1,450 $1,475
$460 $407
$235 $181
$2,145 $2,063
$0
$500
$1,000
$1,500
$2,000
12/31/2016
Liabilities and Equity
12/31/2017
Liabilities and Equity
Equity Interest Bearing Liab., Prin. Outstanding Other Liab.
LIABILITIES TO
EQUITY RATIO
47.9%
LIABILITIES TO
EQUITY RATIO
39.8%
$200 $200 $200
$300 $300 $300
$360
$260
$137
$97
$140
$107
$560
$460
$337
$397
$440
$407
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
$0
$200
$400
$600
9/30/2016 12/31/2016 3/31/2017 6/30/2017 9/30/2017 12/31/2017
Ne
t D
eb
t to
Ad
jus
ted
EB
ITD
A R
ati
o
FCFS 2021 Sr. Notes FCFS 2024 Sr. Notes FCFS Line of Credit Net Debt to EBITDA
LEVERAGE PROFILE – POST MERGER
($ IN MILLIONS)
36
1 Net Debt Ratio is a non-GAAP number. See Company’s 2/1/2018 press release for reconciliation to Adjusted EBITDA from Net Income.
NET DEBT RATIO1 (NET
DEBT/TTM ADJUSTED EBITDA)
= 1.1 TO 1
NET DEBT RATIO1 (NET
DEBT/TTM ADJUSTED EBITDA)
= 2.1 TO 1
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Stock Repurchases & Dividends Acquisitions Capital Expenditures Outstanding Debt
Cumulative Total
$ Millions
$487
$306
$415
Stock Repurchases & Dividends:
- 13,667,494 split-adjusted shares repurchased
- $57 million in cumulative dividends paid
Acquisitions Since 2004:
- 161 stores acquired in U.S.
- 316 stores acquired in Latin America
- 815 stores acquired in Cash America Merger
Capital Expenditures Since 2004:
- Includes 774 De Novo store openings
$407
OVER $1.2 BILLION IN CUMULATIVE INVESTMENTS &
SHAREHOLDER PAYOUTS
37
38
• PAWN-FOCUSED BUSINESS MODEL
⦁ FOCUSED ON SMALL SECURED LOANS TO UNDERBANKED CONSUMERS WITH LIMITED
ACCESS TO TRADITIONAL CREDIT PRODUCTS
⦁ FOCUS ON LARGE FORMAT, FULL-SERVICE MODEL IS A SIGNIFICANT COMPETITIVE
ADVANTAGE
⦁ STRONG MARGINS & CASH FLOWS ALLOW FOR DIVIDEND AND SHARE BUYBACKS
• PROVEN MULTI-COUNTRY GROWTH STRATEGY
⦁ LONG RUNWAY FOR GROWTH IN LATIN AMERICA WHERE COMPETITION IS LIMITED
• STRONG BALANCE SHEET TO FUND FUTURE GROWTH, ACQUISITIONS,
SHARE BUYBACKS AND PAY DIVIDENDS
INVESTMENT RECAP
APPENDIX
40%
13%
47%
Top 25 Shareholder Breakdown
Index
EM/INTL Focus
U.S. Focus
TOP 10 SHAREHOLDERS AND SHAREHOLDERS BREAKDOWN
40
EM/INTL Focus represents 22% of
actively managed shareholders
Note: As of 9/30/2017
Shares (FCFS) % S/O (FCFS)
l BlackRock Fund Advisors 5,474,255 11.6 Index l
l The Vanguard Group, Inc. 4,245,526 9.0 Index l
l Fiduciary Management, Inc. 2,737,819 5.8 Value l
l Dimensional Fund Advisors, L.P. (U.S.) 2,159,679 4.6 Index l
l William Blair & Company, LLC (Investment Management) 1,931,197 4.1 Aggressive Growth l
l Genesis Investment Management, LLP 1,863,517 3.9 GARP l
l GIC Asset Management Pte., LTD 1,516,164 3.2 Value l
l EARNEST Partners, LLC 1,474,115 3.1 Value l
l Wellington Management Company, LLP 1,190,088 2.5 Value l
l Vaughan Nelson Investment Management, L.P. 1,164,791 2.5 GARP l
Institution Name Dominant Style
NON-GAAP FINANCIAL INFORMATION
41
The Company uses certain financial calculations, such as adjusted net income, adjusted net income per
share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow and constant currency results
(collectively "Non-GAAP Measures"), which are not considered measures of financial performance under
U.S. generally accepted accounting principles ("GAAP"). Items excluded from the calculation of Non-GAAP
Measures are significant components in understanding and assessing the Company’s financial performance.
Since Non-GAAP Measures are not measures determined in accordance with GAAP and are thus susceptible
to varying calculations, Non-GAAP Measures, as presented, may not be comparable to other similarly titled
measures of other companies. Non-GAAP Measures should not be considered as alternatives to net income,
cash flow provided by or used in operating, investing or financing activities or other financial statement data
presented in the Company’s consolidated financial statements as indicators of financial performance or
liquidity. Non-GAAP Measures should be evaluated in conjunction with, and are not a substitute for, GAAP
financial measures.
The Company has adjusted the applicable financial measures to exclude, among other expenses and
benefits, Merger related expenses because it generally would not incur such costs and expenses as part of its
continuing operations. The Merger related expenses are predominantly incremental costs directly associated
with the Merger and integration of Cash America, including professional fees, legal expenses, severance and
retention payments, accelerated vesting of certain equity compensation awards, contract breakage costs and
costs related to consolidation of technology systems and corporate facilities
RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA
42
YEAR ENDED DECEMBER 31,
20151 2016 2017
NET INCOME $60,710 $60,127 $143,892
INCOME TAXES 26,971 33,320 28,420
DEPRECIATION AND AMORTIZATION 17,446 31,865 55,233
INTEREST EXPENSE 16,887 20,320 24,035
INTEREST INCOME (1,566) (751) (1,597)
EBITDA 120,448 144,881 249,983
ADJUSTMENTS:
MERGER AND OTHER ACQUISITION EXPENSES 2,875 36,670 9,062
LOSS ON EXTINGUISHMENT OF DEBT - - 14,114
RESTRUCTURING EXPENSES RELATED TO U.S.
CONSUMER LOAN OPS
8,878 - -
NET GAIN ON SALE OF COMMON STOCK OF ENOVA - (1,299) -
ADJUSTED EBITDA $132,201 $180,252 $273,159
1 For fiscal year 2015, excludes $493 of depreciation and amortization, which is included in the restructuring expenses related
to U.S. consumer loan operations
($ IN MILLIONS)
RECONCILIATION OF CASH FLOW FROM OPERATING ACTIVITIES TO
FREE CASH FLOW & ADJUSTED FREE CASH FLOW
43
YEAR ENDED DECEMBER 31,
2015 2016 2017
CASH FLOW FROM OPERATING ACTIVITIES $92,749 $96,854 $220,357
CASH FLOW FROM INVESTING ACTIVITIES:
LOAN RECEIVABLES, NET OF CASH REPAYMENTS (3,716) (16,072) 40,735
PURCHASES OF PROPERTY AND EQUIPMENT (21,073) (33,863) (37,135)
FREE CASH FLOW 67,960 46,919 223,957
MERGER RELATED EXPENSES PAID, NET OF TAX - 20,939 6,659
ADJUSTED FREE CASH FLOW $67,960 $67,858 $230,616
($ IN MILLIONS)
INVESTOR CONTACT INFORMATION
44
INVESTOR RELATIONS GAR JACKSON
INVESTORRELATIONS@FIRSTCASH.COM GLOBAL IR GROUP
IR.FIRSTCASH.COM GAR@GLOBALIRGROUP.COM
(817) 258-2650 (949) 873-2789