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FirstCash Holdings, Inc. (FCFS) is a leading operator of pawn stores in the U.S. and Latin America, as well as a provider of retail point-of-sale (POS) payment solutions. The company serves credit-constrained consumers by offering non-recourse pawn loans, retail sales of forfeited collateral, and lease-to-own (LTO) payment solutions. Its operations span over 3,000 pawnshops and a large network of merchant partners across multiple countries.
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Pawn Operations - Provides non-recourse pawn loans secured by personal property such as jewelry, electronics, and tools, and generates retail sales from forfeited collateral and direct purchases. Operates in the U.S., Mexico, Guatemala, Colombia, and El Salvador.
- U.S. Pawn Segment - Operates pawn stores in 29 U.S. states and the District of Columbia.
- Latin America Pawn Segment - Operates pawn stores in Mexico, Guatemala, Colombia, and El Salvador.
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Retail POS Payment Solutions - Offers lease-to-own (LTO) products and retail financing payment options through American First Finance, LLC (AFF). Facilitates payments for consumer goods and services via a network of traditional and e-commerce merchant partners in all 50 U.S. states, the District of Columbia, and Puerto Rico.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Rick L. Wessel (CEO & Vice-Chairman ExecutiveBoard | Chief Executive Officer and Vice-Chairman of the Board of Directors | CEO of FirstCash Holdings, Inc. since November 2006 and Vice-Chairman of the Board since September 2016. Previously served as CFO, Secretary and Treasurer, and President at FCFS. | View Report → | |
Howard F. Hambleton (AFF President Executive | AFF President | Howard F. Hambleton is the AFF President at FirstCash, having joined in December 2021. He previously served as AFF's president from February 2015 to February 2021 and as CEO and President from February 2021 to December 2021. | ||
R. Douglas Orr (Executive VP Executive | Executive Vice President, Chief Financial Officer (CFO), Secretary, and Treasurer | R. Douglas Orr serves as the Executive Vice President, Chief Financial Officer (CFO), Secretary, and Treasurer at FirstCash Holdings, Inc. since January 2005, having joined the company in July 2002. | ||
Raul R. Ramos (SVP Executive | Senior Vice President – Latin American Operations | Raul R. Ramos has served as Senior Vice President – Latin American Operations at FirstCash since May 2013, having joined the company in 1992 and previously held various operational roles including Vice President of Operations. | ||
T. Brent Stuart (President & COO Executive | President and Chief Operating Officer | T. Brent Stuart has been serving as President and COO of FCFS since September 2016. He previously held leadership roles at Cash America, including President & CEO, demonstrating extensive operational expertise. | ||
Daniel E. Berce (Independent Director Board | Independent Director | President and CEO of General Motors Financial Company, Inc.; Director at AZZ Inc. | Daniel E. Berce has served as an Independent Director at FirstCash Holdings, Inc. since 2016, having previously been a director at Cash America International, Inc. from 2006 to 2016 and currently chairs the Audit Committee while serving on the Compensation Committee. | |
Daniel R. Feehan (Chairman of the Board Board | Chairman of the Board of Directors | Chairman of the Board, AZZ Inc.; Director, Enova International, Inc.; Director, Arlington Asset Investment Corp.; Director, Lena Pope Home; Director, One Safe Place; Board of Regents, University of North Texas System | Daniel R. Feehan has served as Chairman of the Board of Directors at FCFS since 2016 following the merger with Cash America International, Inc.. Previously, he held key roles at Cash America as CEO from February 2000 to November 2015 and executed other executive positions starting in 1990. | |
James H. Graves (Independent Director Board | Director | Managing Director and Partner at Erwin, Graves & Associates, LP; Director at various privately-held companies | James H. Graves has served as a director at FirstCash Holdings, Inc. since 2016 (following the merger, having served at Cash America from 1996 to 2016). | |
Marthea Davis (Independent Director Board | Independent Director | Marthea Davis has served as an Independent Director at FirstCash Holdings, Inc. since June 16, 2022. She is also a member of the Nominating and Corporate Governance Committee since July 27, 2022 and has held previous communications roles at TrailRunner International, EnerGeo Alliance, and Houston First Corporation. | ||
Mikel D. Faulkner (Lead Independent Director) [April 26 Board | Lead Independent Director | Mikel D. Faulkner has served as the Lead Independent Director at FCFS since October 2017, having been appointed to the Board of Directors in 2009. He brings extensive leadership experience from previous roles at Nautilus Marine Services PLC, Global Energy Development PLC, and HKN, Inc.. | ||
Randel G. Owen (Independent Director Board | Independent Director | Randel G. Owen is an Independent Director at FCFS since 2009. He has previously served as President and CEO of Global Medical Response (2018-2022) and held executive roles at Envision Healthcare and PhyCor. |
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Given the projection of $50 million in annual run rate synergies—with $15 million in immediate technology depreciation savings—can you detail the breakdown of these savings by function and explain the contingency measures if the synergy targets are not fully met within the 24-month timeframe?
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With the combined dividend increased to $0.76 per share, how do you plan to balance the allocation of cash flows between accelerating growth in Latin America and returning cash to shareholders, especially in light of the aggressive expansion strategy discussed?
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In light of the de-emphasis on non-pawn operations, which currently comprise around 6% of total revenues, what is your specific long-term strategy for these segments, and under what conditions would you consider divesting or further shrinking these operations?
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Your strategy mentions both de novo market entries and acquisitions in Latin America. Could you provide more detail on the timeline and milestone criteria for entering markets like Colombia and Peru, and how you plan to mitigate the inherent risks in these high-growth yet volatile regions?
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Considering the merger is structured as an all-stock transaction with a fixed exchange ratio amid potential market volatility, what risk management protocols are in place to address integration challenges—particularly with respect to aligning disparate technology platforms and geographic operations—to ensure that projected cost synergies and EPS accretion materialize?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
10-store chain in Mexico | 2024 | Acquired in November 2024, these stores are part of FirstCash Holdings’ Latin America pawn operations, expanding the network to 1,727 stores in Mexico and supporting the company’s growth strategy in the region. |
28 pawn stores and 1 pawn license (US) | 2024 | Completed during the nine months ended September 30, 2024, this deal had an aggregate purchase price of $102.8 million structured with $68.6M cash, $29.3M stock, and $4.9M in payable amounts, with asset allocations and expected synergies driving economies of scale. |
27 pawn stores and 1 pawn license (US) | 2024 | Executed in 2024 with an aggregate purchase price of $99.2 million (comprising $65.0M cash, $29.3M stock, and approximately $4.9M in payables), this acquisition aligns with the company's strategy to expand in strategic markets while consolidating operational results. |
1 pawn store (US) | 2024 | Acquired during the three months ended March 31, 2024 in Georgia for $1.3 million, this transaction involved pricing net of cash acquired and subject to post-closing adjustments. |
104 pawn stores (79 acquired & 25 de novo stores) | 2023 | Completed in the third quarter of 2023, this expansion added 79 acquired U.S. locations (entering four new states) and 25 de novo stores (22 in Latin America and 3 in the U.S.), resulting in a significant increase in store count and driving future revenue growth. |
83 pawn stores and 2 pawn licenses (US) | 2023 | Acquired during the nine months ended September 30, 2023 for $168.1 million, this deal included cash payments, debt repayment, and a short-term payable, with a detailed allocation to assets (notably $119.3M in goodwill) supporting synergies and expansion in strategic markets, including two licenses for Nevada. |
American First Finance (AFF) | 2021 | Completed on December 17, 2021, this acquisition was initially valued at $1.17 billion (using 8.05M shares and $406M cash) and later adjusted to approximately $916 million with additional contingent payments and working capital adjustments, strategically diversifying into POS payment solutions. |
Recent press releases and 8-K filings for FCFS.
- Record earnings performance: GAAP diluted EPS increased 39% and GAAP net income rose 36% over the prior-year quarter, with adjusted EPS up 34% and adjusted net income up 32%, underpinned by robust same-store growth in pawn receivables and strong performance in both the U.S. and Latin America.
- Strong cash flows and shareholder returns: Operating cash flows supported the addition of new pawn locations, a $60M share repurchase, and the declaration of a $0.38 quarterly dividend per share.
- Expansion initiatives: The Company added 12 pawn stores through acquisitions and new openings in multiple countries, bolstering its network and positioning for future growth.
- The presentation, filed as an 8-K exhibit (Exhibit 99.1), reviews Q4 2024 performance and strategic updates for FirstCash Holdings, Inc.
- It includes forward-looking statements outlining business growth, acquisition plans, and expansion initiatives.
- Key metrics highlighted include increases in origination volume, merchant diversification, and POS payment transaction growth.
- The document also discusses non-GAAP financial measures and updates on dividend and share repurchase programs.
- Record performance: Achieved record fourth quarter and full-year revenues and net income, with Q4 revenue of $883,811K and full-year revenue of $3,388,514K, reflecting strong operating results.
- Dividend declaration: The Board declared a quarterly cash dividend of $0.38 per share, scheduled for payment on February 28, 2025.
- Store growth: Expanded the pawn store network by adding 16 new locations in Q4 and 99 stores over the full year, increasing the total to 3,026 locations.