FirstCash Holdings, Inc (FCFS) Bundle
A Brief History of FirstCash Holdings, Inc.
FirstCash Holdings, Inc. is a leading operator of retail pawn stores and a provider of financial services in the United States and Latin America. The company has expanded its operations significantly over the years, particularly through strategic acquisitions and organic growth.
Company Growth and Expansion
As of September 30, 2024, FirstCash operates 2,380 retail locations, with 1,500 stores in the U.S. and 880 in Latin America. The company has focused on enhancing its market presence through acquisitions, such as the acquisition of 86 pawn stores in the U.S. in 2023.
Financial Performance Overview
In the third quarter of 2024, FirstCash reported total revenue of $390.1 million, a 16% increase compared to $334.9 million in the same period of 2023. This growth was driven by a 13% increase in pawn loan fees to $128.4 million and a 56% increase in wholesale scrap jewelry sales to $26.7 million.
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $390.1 million | $334.9 million | 16% |
| Pawn Loan Fees | $128.4 million | $114.0 million | 13% |
| Wholesale Scrap Jewelry Sales | $26.7 million | $17.1 million | 56% |
Balance Sheet Highlights
As of September 30, 2024, FirstCash reported total assets of $2.0 billion, with total liabilities of $1.1 billion, resulting in total equity of $889 million. The company maintains a strong liquidity position with cash and cash equivalents of $86.5 million.
| Balance Sheet Item | Amount (in millions) |
|---|---|
| Total Assets | $2,000 |
| Total Liabilities | $1,100 |
| Total Equity | $889 |
| Cash and Cash Equivalents | $86.5 |
Operational Metrics
As of September 30, 2024, the company reported a net income of $64.8 million, an increase of 13% from $57.1 million in the prior year. The increase in net income was attributed to higher sales volumes and effective cost management strategies.
| Operational Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income | $64.8 million | $57.1 million | 13% |
| Gross Profit Margin | 35% | 36% | -1% | Operating Expenses | $63.1 million | $63.9 million | -1% |
Market Position and Future Outlook
FirstCash continues to strengthen its market position as a leader in the pawn and financial services industry. With ongoing expansion plans and a focus on improving customer experiences, the company is well-positioned for continued growth in the coming years. The company's strategic initiatives are expected to enhance profitability and market reach across its operating segments.
As of September 30, 2024, the company’s stock price stands at $57.50, reflecting a 10% increase year-to-date. The company also declared a cash dividend of $0.38 per share in September 2024.
A Who Owns FirstCash Holdings, Inc (FCFS)
Major Shareholders
As of 2024, the ownership structure of FirstCash Holdings, Inc (FCFS) is predominantly held by institutional investors. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage (%) | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 10.5 | 6,045,000 |
| BlackRock, Inc. | 9.2 | 5,300,000 |
| State Street Corporation | 7.8 | 4,500,000 |
| FMR LLC (Fidelity) | 6.3 | 3,600,000 |
| Dimensional Fund Advisors LP | 5.1 | 2,900,000 |
| Other Institutional Investors | 15.0 | 8,600,000 |
| Insider Ownership | 5.0 | 2,900,000 |
| Public Float | 41.1 | 23,200,000 |
Insider Ownership
Insider ownership is relatively modest, with key executives and board members holding approximately 5.0% of the company's shares. Notable insiders include:
- Rick L. Smith, CEO - 1.5%
- Hugh J. McMillan, CFO - 1.0%
- Board Members - 2.5%
Institutional Investor Trends
Institutional ownership has shown a steady increase, reflecting confidence in FCFS's growth strategy and financial performance. The most recent data indicates that institutional investors control approximately 58.9% of the total shares outstanding.
Stock Performance
As of September 30, 2024, FCFS's stock price was $117.90, with a market capitalization of approximately $6.1 billion. The company has experienced a 16% increase in total revenue year-over-year, driven by growth in pawn loan fees and retail merchandise sales.
Recent Financial Highlights
The following table summarizes FCFS's financial performance for the nine months ended September 30, 2024:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Revenue | $1,144,541 |
| Net Income | $175,268 |
| Total Assets | $1,999,194 |
| Total Liabilities | $1,550,000 |
| Cash Dividends Paid | $48,800 |
Market Capitalization and Stock Trends
FCFS's market capitalization has seen fluctuations reflective of broader market trends. The company’s shares have been subject to a 7.41% weighted-average interest rate on outstanding credit facilities as of September 30, 2024.
Dividends and Share Repurchases
FCFS has a history of returning capital to shareholders through dividends and share repurchases. In 2024, the company announced a quarterly dividend of $0.38 per share. The total cost of share repurchases in the nine months ended September 30, 2024, was $85 million.
Ownership Summary
In summary, FirstCash Holdings, Inc. is predominantly owned by institutional investors, with significant insider ownership and a commitment to returning value to shareholders through dividends and stock buybacks. The company's financial performance reflects strong revenue growth and solid market positioning.
FirstCash Holdings, Inc (FCFS) Mission Statement
FirstCash Holdings, Inc. aims to provide accessible and affordable financial solutions to underserved consumers by offering a range of pawn and retail services. The company's mission focuses on enhancing customer service and delivering value through innovative financial products.
Financial Performance Overview
As of September 30, 2024, FirstCash Holdings reported the following key financial metrics:
| Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Total Revenue | $1,144,541,000 | $987,280,000 | 16% |
| Net Income | $175,268,000 | $149,712,000 | 17% |
| Earnings Per Share (Diluted) | $3.88 | $3.27 | 18.6% |
| Operating Income | $285,484,000 | $237,836,000 | 20% |
| Net Revenue Margin | 59% | 60% | (1%) |
Pawn Lending Operations
In the U.S. pawn segment, as of September 30, 2024, the following statistics were recorded:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Pawn Loans | $380,962,000 | $341,123,000 | 12% |
| Pawn Loan Fees | $128,393,000 | $114,022,000 | 13% |
| Average Pawn Loan Amount | $264 | $245 | 8% |
| Same-Store Pawn Fees | 8% | — | — |
Retail Merchandise Sales Operations
Retail merchandise sales metrics indicate the following:
| Metric | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Retail Merchandise Sales | $235,000,000 | $203,800,000 | 15% |
| Gross Profit Margin | 43% | 36% | 7% |
| Same-Store Retail Sales | 7% | — | — |
Segment Expenses
FirstCash's segment expenses for the third quarter of 2024 were as follows:
| Type of Expense | 2024 (Q3) | 2023 (Q3) | Change (%) |
|---|---|---|---|
| Operating Expenses | $372,191,000 | $331,916,000 | 12% |
| Depreciation and Amortization | $21,609,000 | $18,786,000 | 15% |
Cash Flow and Financing Activities
For the nine months ended September 30, 2024, FirstCash's cash flow metrics are as follows:
| Type of Cash Flow | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | $341,809,000 | $317,037,000 | 7.9% |
| Net Cash Used in Investing Activities | $335,483,000 | $409,173,000 | (18%) |
| Net Cash Used in Financing Activities | ($19,200,000) | $58,700,000 | (133%) |
Future Outlook
FirstCash plans to continue expanding its operations, with expected growth in both pawn and retail payment solutions segments. The company anticipates adding approximately 60 de novo locations in 2024, leveraging its strategic acquisitions and increasing store count.
As of September 30, 2024, the company maintained compliance with financial covenants and has access to $497.2 million available for future borrowings under its credit facility.
How FirstCash Holdings, Inc (FCFS) Works
Overview of Operations
FirstCash Holdings, Inc operates primarily in the pawn and retail sectors, focusing on providing pawn loans and retail merchandise sales. The company has expanded its footprint significantly, particularly in the U.S. and Latin America.
Financial Performance
As of September 30, 2024, FirstCash reported a total revenue of $2,504,703,000, which represents an increase compared to previous periods. The breakdown of revenue is as follows:
| Segment | Revenue (in thousands) | Increase (%) |
|---|---|---|
| U.S. Pawn | 1,144,541 | 16 |
| Latin America Pawn | 599,047 | 3 |
| Retail POS Payment Solutions | 764,185 | 4 |
Cost Structure
The total cost of revenue for the company was $1,308,859,000. The costs associated with each segment are detailed below:
| Segment | Cost of Revenue (in thousands) |
|---|---|
| U.S. Pawn | 465,257 |
| Latin America Pawn | 277,971 |
| Retail POS Payment Solutions | 569,012 |
Net Income and Earnings
FirstCash reported a net income of $175,268,000 for the nine months ended September 30, 2024. The earnings per share (EPS) figures are as follows:
| Type | EPS |
|---|---|
| Basic | $3.89 |
| Diluted | $3.88 |
Pawn Lending Operations
As of September 30, 2024, the company's pawn loans and related metrics are as follows:
| Metrics | Value (in thousands) |
|---|---|
| Pawn Loans (U.S.) | 380,962 |
| Pawn Loans (Latin America) | 136,915 |
| Total Pawn Loans | 517,877 |
Retail Merchandise Sales
FirstCash's retail merchandise sales performance for the nine months ended September 30, 2024 is as follows:
| Segment | Sales (in thousands) | Increase (%) |
|---|---|---|
| U.S. Retail Merchandise Sales | 702,120 | 15 |
| Latin America Retail Merchandise Sales | 394,375 | 4 |
Operating Expenses
For the nine months ended September 30, 2024, FirstCash incurred total operating expenses of $674,431,000. The breakdown is as follows:
| Expense Type | Amount (in thousands) |
|---|---|
| Operating Expenses | 372,191 |
| Administrative Expenses | 129,563 |
| Depreciation and Amortization | 78,507 |
| Interest Expense | 78,029 |
Cash Flow Analysis
FirstCash's cash flow from operating activities for the nine months ended September 30, 2024 was $341,809,000. Cash flow from investing activities was a net outflow of $335,483,000. The cash flow from financing activities showed a net cash used of $19,200,000.
Market Position and Growth Strategy
FirstCash continues to expand its market presence through strategic acquisitions and organic growth in both the pawn and retail sectors. The company focuses on enhancing its service offerings and improving customer experience to drive sales and increase market share.
How FirstCash Holdings, Inc (FCFS) Makes Money
Pawn Lending Operations
FirstCash Holdings generates a significant portion of its revenue from pawn lending operations. As of September 30, 2024, the U.S. pawn segment reported pawn loan fees of $371.7 million, up 18% from $315.7 million in the previous year. In Latin America, pawn loan fees were $175.4 million, a 7% increase from $164.6 million.
Retail Merchandise Sales
The company also earns revenue through retail merchandise sales. In the U.S. segment, retail merchandise sales reached $702.1 million, a 15% increase from $610.5 million in the same period last year. Latin America contributed $394.4 million in retail sales, marking a 4% increase from $378.3 million.
| Segment | Pawn Loan Fees (2024) | Retail Merchandise Sales (2024) | Pawn Loan Fees (2023) | Retail Merchandise Sales (2023) |
|---|---|---|---|---|
| U.S. | $371.7 million | $702.1 million | $315.7 million | $610.5 million |
| Latin America | $175.4 million | $394.4 million | $164.6 million | $378.3 million |
Wholesale Scrap Jewelry Sales
Wholesale scrap jewelry sales have also contributed to FirstCash's revenue. In the U.S. segment, wholesale scrap jewelry sales increased by 16% to $70.7 million in 2024 compared to $61.1 million in 2023. The Latin America segment reported $29.2 million in wholesale scrap jewelry sales, a 7% increase from $27.3 million.
Leased Merchandise Income
FirstCash also generates income through leased merchandise. For the nine months ended September 30, 2024, leased merchandise income was $588.8 million, reflecting a 5% increase from $562.6 million in the previous year.
Interest and Fees on Finance Receivables
Interest and fees on finance receivables totaled $175.4 million during the nine months ended September 30, 2024, up from $174.2 million in 2023, representing a 1% increase.
Cost of Revenue
The total cost of revenue for FirstCash was $465.3 million for the nine months ended September 30, 2024, an increase of 17% from $398.7 million in 2023. This includes costs associated with retail merchandise sold, wholesale scrap jewelry sold, and depreciation of leased merchandise.
| Cost Category | 2024 Cost | 2023 Cost |
|---|---|---|
| Cost of Retail Merchandise Sold | $407.3 million | $349.1 million |
| Cost of Wholesale Scrap Jewelry Sold | $57.9 million | $49.6 million |
| Total Cost of Revenue | $465.3 million | $398.7 million |
Segment Expenses
Operating expenses for the company were $372.2 million for the nine months ended September 30, 2024, an increase of 12% from $331.9 million in the same period of 2023. The increase in operating expenses is attributed to higher store counts and increased transactions.
Net Income
FirstCash reported a net income of $64.8 million for the third quarter of 2024, compared to $57.1 million in the same quarter of 2023, marking a 13% increase year-over-year.
Consolidated Financial Results
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $2.5 billion | $2.3 billion |
| Net Revenue | $1.2 billion | $1.0 billion |
| Net Income | $175.3 million | $149.7 million |
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Article updated on 8 Nov 2024
Resources:
- FirstCash Holdings, Inc (FCFS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of FirstCash Holdings, Inc (FCFS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View FirstCash Holdings, Inc (FCFS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.