Yahoo Finance FirstCash Holdings Inc (FCFS) Q1 Earnings: Surpasses Analyst Revenue Forecasts with Record Results
Revenue: Reported at $836.37 million, up 10% year-over-year, exceeding the estimated $846.07 million.
Net Income: GAAP net income reached $61.37 million, a 30% increase year-over-year, falling short of the estimated $66.96 million.
Earnings Per Share (EPS): GAAP EPS was $1.35, showing a 32% increase from the previous year, below the estimated $1.52.
Dividend: Declared a quarterly cash dividend of $0.35 per share, maintaining a strong focus on shareholder returns.
Store Expansion: Added 41 new pawn store locations, expanding the total to over 3,000 locations, enhancing its market presence in the Americas.
Adjusted EBITDA: Increased by 20% year-over-year to $132.59 million, indicating improved operational efficiency.
Future Outlook: Positive projections for 2024 with expected growth in revenue and earnings across all segments, driven by recent store additions and growth in earning asset balances.
On April 25, 2024, FirstCash Holdings Inc (NASDAQ:FCFS) announced its first-quarter earnings for the year, revealing significant growth and operational success. The company released its earnings details in its 8-K filing, showcasing a robust increase in earnings per share and revenue, driven by strong pawn operations and strategic expansions.
Company Overview
FirstCash Holdings Inc operates over 3,000 pawn stores across the United States and Latin America, with a primary focus on providing small loans secured by personal property. The company operates through three segments: U.S. Pawn, Latin America Pawn, and Retail POS Payment Solutions (AFF). The majority of the company's revenue comes from the U.S. Pawn segment, which contributes nearly 70% of total revenue through the resale of forfeited property and approximately 30% from interest on pawn loans.
Financial Performance Highlights
For the quarter ended March 31, 2024, FirstCash reported a total revenue of $836.37 million, surpassing the estimated $846.07 million and reflecting a 10% increase from the previous year. The company's net income stood at $61.37 million, with a diluted earnings per share (EPS) of $1.35, which significantly exceeded the estimated EPS of $1.52. Adjusted net income reached $70.19 million, and adjusted EPS was $1.55, showing robust growth and operational efficiency.
Strategic Growth and Operational Success
The quarter witnessed substantial growth in pawn receivables, with a 23% increase in the U.S. and strong performance in Latin America. The company's strategic acquisitions added 22 new pawn stores in the U.S. and 19 in Latin America, expanding its footprint and reinforcing its market leadership. The Retail POS Payment Solutions segment, operated through AFF, also saw a 43% increase in earnings, benefiting from double-digit revenue growth and improved margins.
Financial Position and Shareholder Returns
FirstCash continues to demonstrate strong financial health, with $428 million in operating cash flows and $201 million in adjusted free cash flows for the twelve months ended March 31, 2024. The company's proactive financial management included a $500 million bond offering, which helped optimize its credit facilities and support continued growth and shareholder returns. The Board of Directors declared a quarterly cash dividend of $0.35 per share, emphasizing the company's commitment to delivering value to its shareholders.
Future Outlook
Looking ahead, FirstCash is optimistic about its performance for the remainder of 2024, expecting continued revenue and earnings growth across all segments. The company plans to add approximately 90 to 100 new store locations through acquisitions and new openings, targeting significant expansion in both the U.S. and Latin America markets.
CEO Rick Wessel expressed confidence in the company's strategic direction, stating, "Our ability to provide customers with fast, convenient access to cash and value-priced retail merchandise positions us uniquely in the market. We are excited about our growth prospects and remain committed to enhancing shareholder value through strategic initiatives and robust operational performance."
Conclusion
FirstCash's record first-quarter results reflect a strong start to 2024, underpinned by effective strategic expansions and solid core operations. With a clear focus on growth and shareholder returns, the company is well-positioned to maintain its leadership in the pawn industry and deliver sustained financial success.
Explore the complete 8-K earnings release (here) from FirstCash Holdings Inc for further details.
This article first appeared on GuruFocus.
