First Cash Financial Services Inc. Acquires 47 Pawn Stores in Mexico and Nine U.S. Pawn Stores in Colorado and Texas
Aug 27 14
First Cash Financial Services Inc. announced that it had completed the acquisition of 47 pawn stores located in 12 states in Mexico. In addition, the company announced that in two separate U.S. transactions, it had acquired the operating assets of five pawn stores located in Colorado and four pawn stores in Texas. The announced U.S. pawn acquisitions include a five-store Colorado chain and a four-store chain located in Texas. First Cash intends to consolidate two of the acquired Colorado stores with existing locations, resulting in a net addition of three stores and giving the Company a total of 32 locations in Colorado. With the four-store acquisition in Texas, the Company will have a total of 148 pawn locations in the state. The total combined purchase price for the three acquisitions is approximately $28.5 million, net of cash acquired and subject to certain working capital adjustments. The acquired assets from the acquisitions included approximately $7.5 million in pawn loans outstanding and $7 million of merchandise inventory as of August 26, 2014 (unaudited). Including the impact of transaction and integration expenses, the Company expects nominal earnings accretion from these acquisitions in 2014.
First Cash Financial Services Inc. Presents at C.L. King's Best Ideas Conference 2014, Sep-09-2014 08:45 AM
Aug 13 14
First Cash Financial Services Inc. Presents at C.L. King's Best Ideas Conference 2014, Sep-09-2014 08:45 AM. Venue: Omni Berkshire Place Hotel, New York, New York, United States.
First Cash Financial Services, Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Reaffirms Earnings Guidance for the Second Half of 2014 and Provides Earnings Guidance for the Fiscal Year 2014; Expects to Add Approximately 75 to 85 New Stores in 2014
Jul 17 14
First Cash Financial Services Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported total revenue of $165.326 million against $142.354 million a year ago. Net revenue was $93.921 million against $84.147 million a year ago. Income from continuing operations before income taxes was $23.399 million against $23.760 million a year ago. Income from continuing operations was $16.015 million against $15.654 million a year ago. Net income was $16.015 million against $15.663 million a year ago. Diluted income per share from continuing operations was $0.55 against $0.53 a year ago. Net income per diluted share was $0.55 against $0.53 a year ago. Earnings from continuing operations before interest, taxes, depreciation and amortization were $31.372 million against $28.075 million a year ago.
For the six months, the company reported total revenue of $335.103 million against $302.266 million a year ago. Net revenue was $190.377 million against $175.407 million a year ago. Income from continuing operations before income taxes was $52.407 million against $54.926 million a year ago. Income from continuing operations was $38.969 million against $35.834 million a year ago. Net income was $38.697 million against $35.927 million a year ago. Diluted income per share from continuing operations was $1.33 against $1.21 a year ago. Net income per diluted share was $1.32 against $1.21 a year ago. Earnings from continuing operations before interest, taxes, depreciation and amortization were $66.007 million against $63.438 million a year ago. Return on equity for the trailing twelve months ended June 30, 2014, was 21%, while return on assets was 13%.
The company provided earnings guidance for the fiscal year 2014. For the period, the company continues to expect fiscal 2014 fully diluted earnings per share to be within its previously announced range of $3.00 to $3.15 per diluted share. As previously reported, the impact of the incremental borrowing costs from the March 2014 issuance of the senior unsecured notes will likely keep earnings at the lower end of the guidance range. The EPS guidance range implies second half EBITDA growth in a range of 17% to 20%, the majority of which will occur in the fourth quarter. As a reminder, third quarter 2013 earnings per share were $0.79 and included a non-recurring tax benefit of approximately $0.11 per share and the incremental deferred scrap sale benefit of approximately $0.01 per share (tax effected). Due to these prior year benefits, third quarter 2014 earnings per share are anticipated to be lower than the prior-year comparable quarter. Revenue growth in 2014 is expected to be generated exclusively from core pawn operations, partially offset by the continued de-emphasis of payday lending operations. Approximately 95% of total 2014 revenues are expected to be derived from growing pawn operations. The company's guidance assumptions continue to reflect the impact of lower gold prices and reduced scrap volumes on scrap jewelry revenues and pawn loan balances and the continued contraction of non-core payday lending revenues. Earnings guidance estimates for 2014 are based on an average Mexican peso exchange rate of 13.0:1, gold prices in the range of $1,200 to $1,300 per ounce, and an anticipated income tax rate of approximately 32% for the remainder of fiscal 2014.
The company expects to add approximately 75 to 85 new stores in 2014. It anticipates that most of the additions will continue to be large format pawn stores in Mexico, but also includes 10 to 15 new builds and small acquisitions in the U.S. Additionally, the company will continue to look opportunistically for large format pawn acquisitions in strategic markets, which could further increase store additions for 2014.