Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 25, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | FIRSTCASH, INC. | |
Entity Central Index Key | 840,489 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 47,186,687 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
ASSETS | |||
Cash and cash equivalents | $ 93,411 | $ 89,955 | $ 83,356 |
Fees and service charges receivable | 45,134 | 41,013 | 45,708 |
Pawn loans | 371,367 | 350,506 | 373,169 |
Consumer loans, net | 24,515 | 29,204 | 27,792 |
Inventories | 308,683 | 330,683 | 332,862 |
Income taxes receivable | 27,867 | 25,510 | 36,449 |
Prepaid expenses and other current assets | 23,818 | 25,264 | 31,935 |
Investment in common stock of Enova | 0 | 0 | 54,786 |
Total current assets | 894,795 | 892,135 | 986,057 |
Property and equipment, net | 234,309 | 236,057 | 240,749 |
Goodwill | 834,883 | 831,151 | 865,350 |
Intangible assets, net | 95,991 | 104,474 | 106,502 |
Other assets | 59,054 | 71,679 | 69,125 |
Deferred tax assets | 12,694 | 9,707 | 9,912 |
Total assets | 2,131,726 | 2,145,203 | 2,277,695 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accounts payable and accrued liabilities | 94,769 | 109,354 | 129,997 |
Customer deposits | 37,626 | 33,536 | 37,591 |
Income taxes payable | 3,763 | 738 | 910 |
Total current liabilities | 136,158 | 143,628 | 168,498 |
Revolving unsecured credit facilities | 140,000 | 260,000 | 360,000 |
Senior unsecured notes | 294,961 | 196,545 | 196,373 |
Deferred tax liabilities | 73,203 | 61,275 | 42,125 |
Other liabilities | 19,725 | 33,769 | 77,645 |
Total liabilities | 664,047 | 695,217 | 844,641 |
Stockholders’ equity: | |||
Preferred stock | 0 | 0 | 0 |
Common stock | 493 | 493 | 493 |
Additional paid-in capital | 1,219,589 | 1,217,969 | 1,217,820 |
Retained earnings | 436,159 | 387,401 | 359,926 |
Accumulated other comprehensive loss | (88,445) | (119,806) | (109,114) |
Common stock held in treasury, at cost | (100,117) | (36,071) | (36,071) |
Total stockholders’ equity | 1,467,679 | 1,449,986 | 1,433,054 |
Total liabilities and stockholders’ equity | $ 2,131,726 | $ 2,145,203 | $ 2,277,695 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenue: | ||||
Retail merchandise sales | $ 246,334 | $ 152,215 | $ 750,150 | $ 386,534 |
Pawn loan fees | 132,545 | 79,505 | 383,428 | 182,816 |
Wholesale scrap jewelry sales | 37,528 | 18,956 | 107,285 | 35,906 |
Consumer loan and credit services fees | 19,005 | 10,477 | 58,754 | 21,079 |
Total revenue | 435,412 | 261,153 | 1,299,617 | 626,335 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 161,350 | 93,399 | 483,458 | 239,166 |
Cost of wholesale scrap jewelry sold | 36,831 | 16,977 | 102,370 | 30,701 |
Consumer loan and credit services loss provision | 6,185 | 3,413 | 15,419 | 5,780 |
Total cost of revenue | 204,366 | 113,789 | 601,247 | 275,647 |
Net revenue | 231,046 | 147,364 | 698,370 | 350,688 |
Expenses and other income: | ||||
Store operating expenses | 138,966 | 80,574 | 412,780 | 190,563 |
Administrative expenses | 29,999 | 24,500 | 93,542 | 58,277 |
Depreciation and amortization | 13,872 | 7,281 | 42,804 | 17,165 |
Interest expense | 6,129 | 5,073 | 17,827 | 13,859 |
Interest income | (418) | (138) | (1,138) | (636) |
Merger and other acquisition expenses | 911 | 29,398 | 3,164 | 33,877 |
Loss on extinguishment of debt | 20 | 0 | 14,114 | 0 |
Net loss on sale of common stock of Enova | 0 | 253 | 0 | 253 |
Total expenses and other income | 189,479 | 146,941 | 583,093 | 313,358 |
Income (loss) before income taxes | 41,567 | 423 | 115,277 | 37,330 |
Provision for income taxes | 13,293 | 1,835 | 39,119 | 13,895 |
Net income (loss) | $ 28,274 | $ (1,412) | $ 76,158 | $ 23,435 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.59 | $ (0.04) | $ 1.58 | $ 0.77 |
Diluted (in dollars per share) | 0.59 | (0.04) | 1.58 | 0.77 |
Dividends declared per common share (in dollars per share) | $ 0.190 | $ 0.125 | $ 0.57 | $ 0.375 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ 28,274 | $ (1,412) | $ 76,158 | $ 23,435 | |
Other comprehensive income (loss): | |||||
Currency translation adjustment | (4,981) | (12,248) | 31,361 | (28,951) | |
Change in fair value of investment in common stock of Enova (1) | [1] | 0 | (1,753) | 0 | (1,753) |
Comprehensive income (loss) | $ 23,293 | $ (15,413) | $ 107,519 | $ (7,269) | |
[1] | Net of tax benefit of $1,031 for the three and nine months ended September 30, 2016. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Gain (Loss) on Investments [Line Items] | ||
Net Tax Benefit | $ (1,835,000) | $ (13,895,000) |
Investment of Common Stock | ||
Gain (Loss) on Investments [Line Items] | ||
Net Tax Benefit | $ 1,031 | $ 1,031 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Common Stock Held in Treasury | ||
Balance at beginning of period (shares) at Dec. 31, 2015 | 0 | 40,288 | 12,052 | ||||||
Balance at beginning of period (value) at Dec. 31, 2015 | $ 431,382 | $ 0 | $ 403 | $ 202,393 | $ 643,604 | $ (78,410) | $ (336,608) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under share-based compensation plan (shares) | 7 | (83) | |||||||
Shares issued under share-based compensation plan (value) | 0 | $ 0 | (3,903) | $ 3,903 | |||||
Shares issued upon merger with Cash America (shares) | 20,181 | ||||||||
Shares issued upon merger with Cash America (value) | 1,015,507 | $ 202 | 1,015,305 | ||||||
Share-based compensation expense (value) | 4,025 | 4,025 | |||||||
Net income (loss) | 23,435 | 23,435 | |||||||
Dividends paid | (10,591) | (10,591) | |||||||
Change in fair value of investment in common stock of Enova (1) | (1,753) | [1] | (1,753) | ||||||
Currency translation adjustment | (28,951) | (28,951) | |||||||
Retirement of treasury stock (shares) | (11,200) | (11,200) | |||||||
Retirement of treasury stock | $ (112) | (296,522) | $ 296,634 | ||||||
Balance at end of period (shares) at Sep. 30, 2016 | 0 | 49,276 | 769 | ||||||
Balance at end of period (value) at Sep. 30, 2016 | 1,433,054 | $ 0 | $ 493 | 1,217,820 | 359,926 | (109,114) | $ (36,071) | ||
Balance at beginning of period (shares) at Dec. 31, 2016 | 0 | 49,276 | 769 | ||||||
Balance at beginning of period (value) at Dec. 31, 2016 | 1,449,986 | $ 0 | $ 493 | 1,217,969 | 387,401 | (119,806) | $ (36,071) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued under share-based compensation plan (shares) | 0 | (10) | |||||||
Shares issued under share-based compensation plan (value) | 0 | $ 0 | (440) | $ 440 | |||||
Exercise of stock options (shares) | 0 | (13) | |||||||
Exercise of stock options (value) | 307 | $ 0 | (242) | $ 549 | |||||
Share-based compensation expense (value) | 2,302 | 2,302 | |||||||
Net income (loss) | 76,158 | 76,158 | |||||||
Dividends paid | (27,400) | (27,400) | |||||||
Change in fair value of investment in common stock of Enova (1) | [1] | 0 | |||||||
Currency translation adjustment | 31,361 | 31,361 | |||||||
Repurchases of treasury stock (shares) | 1,182 | ||||||||
Repurchases of treasury stock (value) | (65,035) | $ (65,035) | |||||||
Balance at end of period (shares) at Sep. 30, 2017 | 0 | 49,276 | 1,928 | ||||||
Balance at end of period (value) at Sep. 30, 2017 | $ 1,467,679 | $ 0 | $ 493 | $ 1,219,589 | $ 436,159 | $ (88,445) | $ (100,117) | ||
[1] | Net of tax benefit of $1,031 for the three and nine months ended September 30, 2016. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flow from operating activities: | ||
Net income (loss) | $ 76,158 | $ 23,435 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | ||
Non-cash portion of credit loss provision | 10,012 | 2,368 |
Share-based compensation expense | 2,302 | 4,025 |
Net loss on sale of common stock of Enova | 0 | 253 |
Depreciation and amortization expense | 42,804 | 17,165 |
Amortization of debt issuance costs | 1,322 | 1,083 |
Amortization of favorable/(unfavorable) lease intangibles, net | (744) | (58) |
Loss on extinguishment of debt | 14,114 | 0 |
Deferred income taxes, net | 11,137 | 8,665 |
Changes in operating assets and liabilities, net of business combinations: | ||
Fees and service charges receivable | (3,017) | (2,630) |
Inventories | 5,206 | (4,924) |
Prepaid expenses and other assets | 7,819 | 1,774 |
Accounts payable, accrued liabilities and other liabilities | (21,036) | 2,990 |
Income taxes | 2,769 | (13,672) |
Net cash flow provided by operating activities | 148,846 | 40,474 |
Cash flow from investing activities: | ||
Loan receivables, net of cash repayments | 5,261 | (31,486) |
Purchases of property and equipment | (26,595) | (23,426) |
Portion of aggregate merger consideration paid in cash, net of cash acquired | 0 | (8,251) |
Acquisitions of pawn stores, net of cash acquired | (1,141) | (28,756) |
Proceeds from sale of common stock of Enova | 0 | 2,962 |
Net cash flow provided by (used in) investing activities | (22,475) | (88,957) |
Cash flow from financing activities: | ||
Borrowings from revolving credit facilities | 181,000 | 396,000 |
Repayments of revolving credit facilities | (301,000) | (94,000) |
Repayments of debt assumed from acquisitions | 0 | (238,532) |
Issuance of senior unsecured notes | 300,000 | 0 |
Repurchase/redemption of senior unsecured notes | (200,000) | 0 |
Repurchase/redemption premiums paid on senior unsecured notes | (10,895) | 0 |
Debt issuance costs paid | (5,342) | (2,340) |
Purchases of treasury stock | (65,035) | 0 |
Proceeds from exercise of share-based compensation awards | 307 | 0 |
Dividends paid | (27,400) | (10,591) |
Net cash flow provided by (used in) financing activities | (128,365) | 50,537 |
Effect of exchange rates on cash | 5,450 | (5,652) |
Change in cash and cash equivalents | 3,456 | (3,598) |
Cash and cash equivalents at beginning of the period | 89,955 | 86,954 |
Cash and cash equivalents at end of the period | $ 93,411 | $ 83,356 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated balance sheet at December 31, 2016 , which is derived from audited financial statements, and the unaudited condensed consolidated financial statements, including the notes thereto, include the accounts of FirstCash, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions and the results of operations for the acquired stores have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. These unaudited consolidated financial statements are condensed and do not include all disclosures and footnotes required by generally accepted accounting principles in the United States of America for complete financial statements. These interim period financial statements should be read in conjunction with the Company’s consolidated financial statements, which are included in the Company’s annual report on Form 10-K for the year ended December 31, 2016 , filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2017 . The condensed consolidated financial statements as of September 30, 2017 and 2016 , and for the three month and nine month periods ended September 30, 2017 and 2016 , are unaudited, but in management’s opinion include all adjustments (consisting of only normal recurring adjustments) considered necessary to present fairly the financial position, results of operations and cash flow for such interim periods. Operating results for the periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year. On September 1, 2016, the Company completed its merger with Cash America International, Inc. (“Cash America”), whereby Cash America merged with and into a wholly owned subsidiary of the Company (the “Merger”). The accompanying unaudited condensed consolidated results of operations for the three month and nine month periods ended September 30, 2017 include the results of operations for Cash America, while the comparable prior-year periods include the results of operations for Cash America for the period September 2, 2016 to September 30, 2016, affecting comparability of 2017 and 2016 amounts. The Company has performed a valuation analysis of identifiable assets acquired and liabilities assumed and allocated the aggregate Merger consideration based on the fair values of those identifiable assets and liabilities. The Company has significant operations in Latin America, where in Mexico and Guatemala the functional currency is the Mexican peso and Guatemalan quetzal, respectively. Accordingly, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity. Revenues and expenses are translated at the average exchange rates occurring during the three month and nine month periods ended September 30, 2017 and 2016 . The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606),” which delayed the effective date of ASU 2014-09 by one year. In addition, between March 2016 and December 2016, the Financial Accounting Standards Board issued ASU No. 2016-08, “Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting revenue gross versus net)” (“ASU 2016-08”), ASU No. 2016-10, “Identifying Performance Obligations and Licensing” (“ASU 2016-10”), ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”). ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 clarify certain aspects of ASU 2014-09 and provide additional implementation guidance. ASU 2014-09, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 (collectively, “ASC 606”) become effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 for public companies. Early adoption is permitted but not before annual reporting periods beginning after December 15, 2016. Entities are permitted to adopt ASC 606 using one of two methods: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The Company plans to adopt ASC 606 using the modified retrospective method. The Company does not believe the adoption of ASC 606 will impact the Company’s revenue recognition for pawn loan fees or consumer loan fees, as it believes neither is within the scope of ASC 606. Further, the Company has not identified any impacts to its consolidated financial statements that it believes will be material as a result of the adoption of ASC 606 for other revenue streams (retail merchandise sales, credit services fees and wholesale scrap jewelry sales), although it continues to evaluate the impact of adoption. In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires inventory be measured at the lower of cost or net realizable value. ASU 2015-11 defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory measured using last-in, first-out (“LIFO”) or the retail inventory method are excluded from the scope of this update. ASU 2015-11 requires prospective application and is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU 2015-11 as of January 1, 2017, and the guidance was applied prospectively. There were no changes to the Company’s financial position, results of operations, financial statement disclosures or valuation of inventory. In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize, in the statement of financial position, a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. Lessor accounting remains largely unchanged. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently assessing the potential impact of ASU 2016-02 on its consolidated financial statements. In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the potential impact of ASU 2016-13 on its consolidated financial statements. In August 2016, the Financial Accounting Standards Board issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. ASU 2016-15 is effective for public entities for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not expect ASU 2016-15 to have a material effect on the Company’s consolidated financial statements or current financial statement disclosures. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 provides amendments to clarify the definition of a business and affects all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years and should be applied prospectively as of the beginning of the period of adoption. Early adoption is permitted under certain circumstances. The Company does not expect ASU 2017-01 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). These amendments eliminate step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 and should be adopted on a prospective basis. The Company does not expect ASU 2017-04 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 28,274 $ (1,412 ) $ 76,158 $ 23,435 Denominator (in thousands): Weighted-average common shares for calculating basic earnings per share 47,628 34,631 48,090 30,372 Effect of dilutive securities: Stock options and nonvested stock awards 40 — 27 — Weighted-average common shares for calculating diluted earnings per share 47,668 34,631 48,117 30,372 Net income (loss) per share: Basic $ 0.59 $ (0.04 ) $ 1.58 $ 0.77 Diluted $ 0.59 $ (0.04 ) $ 1.58 $ 0.77 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs: September 30, December 31, 2017 2016 2016 Senior unsecured notes: 5.375% senior notes due 2024 (1) $ 294,961 $ — $ — 6.75% senior notes due 2021 (2) — 196,373 196,545 $ 294,961 $ 196,373 $ 196,545 Revolving unsecured credit facility, maturing 2022 $ 140,000 $ 360,000 $ 260,000 (1) As of September 30, 2017 , deferred debt issuance costs of $5,039 are included as a direct deduction from the carrying amount of the senior unsecured notes due 2024 in the accompanying condensed consolidated balance sheets. (2) As of September 30, 2016 and December 31, 2016 , deferred debt issuance costs of $3,627 and $3,455 , respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2021 in the accompanying condensed consolidated balance sheets. Senior Unsecured Notes On May 30, 2017, the Company completed an offering of $300,000 of 5.375% senior notes due on June 1, 2024 (the “Notes”). Interest on the Notes will be payable semi-annually in arrears on June 1 and December 1, commencing on December 1, 2017. The Notes were sold to the placement agents as initial purchasers for resale only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside the United States in accordance with Regulation S under the Securities Act. The Company used the proceeds from the offering to repurchase, or otherwise redeem, its outstanding $200,000 , 6.75% senior notes due 2021 (the “2021 Notes”), to repay borrowings under the Company’s credit facility and to pay related fees and expenses associated with the Notes offering and the repurchase and redemption of the 2021 Notes. The Company capitalized approximately $5,200 in issuance costs, which consisted primarily of placement agent fees and legal and other professional expenses. The issuance costs are being amortized over the life of the Notes as a component of interest expense and are carried as a direct deduction from the carrying amount of the Notes in the accompanying condensed consolidated balance sheets. The Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its primary revolving bank credit facility. The Notes will permit the Company to make share repurchases of up to $100,000 with the net proceeds of the Notes and other available funds and to make restricted payments, such as purchasing shares of its stock and paying cash dividends, in an unlimited amount if, after giving pro forma effect to the incurrence of any indebtedness to make such payment, the Company's consolidated total debt ratio (“Net Debt Ratio”) is less than 2.25 to 1.00 . The Net Debt Ratio is defined generally in the indenture governing the Notes (the “Indenture”) as the ratio of (1) the total consolidated debt of the Company minus cash and cash equivalents of the Company to (2) the Company’s consolidated trailing twelve months EBITDA, as adjusted to exclude certain non-recurring expenses and giving pro forma effect to operations acquired during the measurement period. The Company may redeem the Notes at any time on or after June 1, 2020, at the redemption prices set forth in the Indenture, plus accrued and unpaid interest, if any. In addition, prior to June 1, 2020, the Company may redeem some or all of the Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus a “make-whole” premium set forth in the Indenture. The Company may redeem up to 35% of the Notes prior to June 1, 2020, with the proceeds of certain equity offerings at a redemption price of 105.375% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any. In addition, upon a change of control, noteholders have the right to require the Company to purchase the Notes at a price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest, if any. For the nine months ended September 30, 2017, the Company recognized a $14,114 loss on extinguishment of debt related to the repurchase or redemption of the 2021 Notes which includes the tender or redemption premiums paid over the outstanding $200,000 principal amount of the 2021 Notes and other reacquisition costs of $10,895 and the write off of unamortized debt issuance costs of $3,219 . Revolving Credit Facilities At September 30, 2017 , the Company maintained a line of credit with a group of U.S. based commercial lenders (the “2016 Credit Facility”) in the amount of $400,000 . In May 2017, the term of the 2016 Credit Facility was extended through September 2, 2022 . The calculation of the fixed charge coverage ratio was also amended to remove share repurchases from the calculation to provide greater flexibility for making future share repurchases and paying cash dividends. At September 30, 2017 , the Company had $140,000 in outstanding borrowings and a $4,456 outstanding letter of credit under the 2016 Credit Facility, leaving $255,544 available for future borrowings. The 2016 Credit Facility bears interest, at the Company’s option, at either (i) the prevailing London Interbank Offered Rate (“LIBOR”) (with interest periods of 1 week or 1, 2, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5% or (ii) the prevailing prime or base rate plus a fixed spread of 1.5% . The agreement has a LIBOR floor of 0% . Additionally, the Company is required to pay an annual commitment fee of 0.50% on the average daily unused portion of the 2016 Credit Facility commitment. The weighted-average interest rate on amounts outstanding under the 2016 Credit Facility at September 30, 2017 was 3.75% based on 1 week LIBOR. Under the terms of the 2016 Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The 2016 Credit Facility also contains customary restrictions on the Company’s ability to incur additional debt, grant liens, make investments, consummate acquisitions and similar negative covenants with customary carve-outs and baskets. The Company was in compliance with the requirements and covenants of the 2016 Credit Facility as of September 30, 2017 . During the nine months ended September 30, 2017 , the Company made net payments of $120,000 pursuant to the 2016 Credit Facility. At September 30, 2017 , the Company maintained a U.S. dollar denominated line of credit with a bank in Mexico (the “Mexico Credit Facility”) in the amount of $10,000 . The Mexico Credit Facility bears interest at 30-day LIBOR plus a fixed spread of 2.0% and matures in December 2017 . Under the terms of the Mexico Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The Company was in compliance with the requirements and covenants of the Mexico Credit Facility as of September 30, 2017 . The Company is required to pay a one-time commitment fee of $25 due when the first amount is drawn/borrowed. At September 30, 2017 , the Company had no amount outstanding under the Mexico Credit Facility and $10,000 was available for borrowings. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements As of September 30, 2017 , the Company did not have any financial assets or liabilities that are measured at fair value on a recurring basis. The Company’s financial assets that were measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2016 were as follows: September 30, Fair Value Measurements Using Financial assets: 2016 Level 1 Level 2 Level 3 Cash America nonqualified savings plan-related assets $ 12,229 $ 12,229 $ — $ — Investment in common stock of Enova 54,786 54,786 — — $ 67,015 $ 67,015 $ — $ — December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash America nonqualified savings plan-related assets $ 12,663 $ 12,663 $ — $ — $ 12,663 $ 12,663 $ — $ — Prior to the Merger, Cash America had a nonqualified savings plan that was available to certain members of its management. Upon completion of the Merger, the nonqualified savings plan was terminated and during the three months ended March 31, 2017, the Company dissolved the plan and distributed the remaining assets to the participants. As of September 30, 2016 and December 31, 2016 , the assets of the nonqualified savings plan included marketable equity securities, which were classified as Level 1 and the fair values were based on quoted market prices. The nonqualified savings plan assets were included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet with an offsetting liability of equal amount, which is included in accounts payable and accrued expenses in the accompanying condensed consolidated balance sheet. The Company’s investment in common stock of Enova represented the Company’s available-for-sale shares of Enova International, Inc. (“Enova”) common stock. As of September 30, 2016, the equity securities representing Enova common stock were classified as Level 1 and based on the market determined stock price of Enova. During 2016, the Company sold all of the Enova shares in open market transactions. Fair Value Measurements on a Nonrecurring Basis The Company measures non-financial assets and liabilities such as property and equipment and intangible assets at fair value on a nonrecurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. Financial Assets and Liabilities Not Measured at Fair Value The Company’s financial assets and liabilities as of September 30, 2017 , 2016 and December 31, 2016 that are not measured at fair value in the condensed consolidated balance sheets are as follows: Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2017 2017 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 93,411 $ 93,411 $ 93,411 $ — $ — Pawn loans 371,367 371,367 — — 371,367 Consumer loans, net 24,515 24,515 — — 24,515 Fees and service charges receivable 45,134 45,134 — — 45,134 $ 534,427 $ 534,427 $ 93,411 $ — $ 441,016 Financial liabilities: Revolving unsecured credit facilities $ 140,000 $ 140,000 $ — $ 140,000 $ — Senior unsecured notes, outstanding principal 300,000 314,000 — 314,000 — $ 440,000 $ 454,000 $ — $ 454,000 $ — Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2016 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 83,356 $ 83,356 $ 83,356 $ — $ — Pawn loans 373,169 373,169 — — 373,169 Consumer loans, net 27,792 27,792 — — 27,792 Fees and service charges receivable 45,708 45,708 — — 45,708 $ 530,025 $ 530,025 $ 83,356 $ — $ 446,669 Financial liabilities: Revolving unsecured credit facilities $ 360,000 $ 360,000 $ — $ 360,000 $ — Senior unsecured notes, outstanding principal 200,000 210,000 — 210,000 — $ 560,000 $ 570,000 $ — $ 570,000 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2016 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 89,955 $ 89,955 $ 89,955 $ — $ — Pawn loans 350,506 350,506 — — 350,506 Consumer loans, net 29,204 29,204 — — 29,204 Fees and service charges receivable 41,013 41,013 — — 41,013 $ 510,678 $ 510,678 $ 89,955 $ — $ 420,723 Financial liabilities: Revolving unsecured credit facilities $ 260,000 $ 260,000 $ — $ 260,000 $ — Senior unsecured notes, outstanding principal 200,000 208,000 — 208,000 — $ 460,000 $ 468,000 $ — $ 468,000 $ — As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and fees and service charges receivable approximate fair value. Short-term loans and installment loans, collectively, represent consumer loans, net on the accompanying condensed consolidated balance sheets and are carried net of the allowance for estimated loan losses, which is calculated by applying historical loss rates combined with recent default trends to the gross consumer loan balance. The unobservable inputs used to calculate the fair value of these loans include historical loss rates, recent default trends and estimated remaining loan terms; therefore, the carrying value approximates the fair value. The carrying value of the Company’s prior credit facilities approximates fair value as of September 30, 2016 . The carrying value of the Company’s current credit facilities (the 2016 Credit Facility and the Mexico Credit Facility) approximates fair value as of September 30, 2017 and December 31, 2016 . The fair value of the senior unsecured notes have been estimated based on a discounted cash flow analysis using a discount rate representing the Company’s estimate of the rate that would be used by market participants. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company organizes its operations into two reportable segments as follows: • U.S. operations - Includes all pawn and consumer loan operations in the U.S. • Latin America operations - Includes all pawn and consumer loan operations in Latin America, which currently includes operations in Mexico, Guatemala and El Salvador The following tables present reportable segment information for the three and nine month periods ended September 30, 2017 and 2016 : Three Months Ended September 30, 2017 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 160,598 $ 85,736 $ — $ 246,334 Pawn loan fees 95,266 37,279 — 132,545 Wholesale scrap jewelry sales 32,397 5,131 — 37,528 Consumer loan and credit services fees 18,525 480 — 19,005 Total revenue 306,786 128,626 — 435,412 Cost of revenue: Cost of retail merchandise sold 107,561 53,789 — 161,350 Cost of wholesale scrap jewelry sold 31,518 5,313 — 36,831 Consumer loan and credit services loss provision 6,068 117 — 6,185 Total cost of revenue 145,147 59,219 — 204,366 Net revenue 161,639 69,407 — 231,046 Expenses and other income: Store operating expenses 104,555 34,411 — 138,966 Administrative expenses — — 29,999 29,999 Depreciation and amortization 5,919 2,704 5,249 13,872 Interest expense — — 6,129 6,129 Interest income — — (418 ) (418 ) Merger and other acquisition expenses — — 911 911 Loss on extinguishment of debt — — 20 20 Total expenses and other income 110,474 37,115 41,890 189,479 Income (loss) before income taxes $ 51,165 $ 32,292 $ (41,890 ) $ 41,567 Three Months Ended September 30, 2016 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 84,547 $ 67,668 $ — $ 152,215 Pawn loan fees 48,840 30,665 — 79,505 Wholesale scrap jewelry sales 15,046 3,910 — 18,956 Consumer loan and credit services fees 9,991 486 — 10,477 Total revenue 158,424 102,729 — 261,153 Cost of revenue: Cost of retail merchandise sold 51,922 41,477 — 93,399 Cost of wholesale scrap jewelry sold 13,955 3,022 — 16,977 Consumer loan and credit services loss provision 3,275 138 — 3,413 Total cost of revenue 69,152 44,637 — 113,789 Net revenue 89,272 58,092 — 147,364 Expenses and other income: Store operating expenses 52,480 28,094 — 80,574 Administrative expenses — — 24,500 24,500 Depreciation and amortization 2,906 2,602 1,773 7,281 Interest expense — — 5,073 5,073 Interest income — — (138 ) (138 ) Merger and other acquisition expenses — — 29,398 29,398 Net loss on sale of common stock of Enova — — 253 253 Total expenses and other income 55,386 30,696 60,859 146,941 Income (loss) before income taxes $ 33,886 $ 27,396 $ (60,859 ) $ 423 Nine Months Ended September 30, 2017 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 519,116 $ 231,034 $ — $ 750,150 Pawn loan fees 287,338 96,090 — 383,428 Wholesale scrap jewelry sales 91,430 15,855 — 107,285 Consumer loan and credit services fees 57,425 1,329 — 58,754 Total revenue 955,309 344,308 — 1,299,617 Cost of revenue: Cost of retail merchandise sold 337,789 145,669 — 483,458 Cost of wholesale scrap jewelry sold 87,600 14,770 — 102,370 Consumer loan and credit services loss provision 15,115 304 — 15,419 Total cost of revenue 440,504 160,743 — 601,247 Net revenue 514,805 183,565 — 698,370 Expenses and other income: Store operating expenses 318,044 94,736 — 412,780 Administrative expenses — — 93,542 93,542 Depreciation and amortization 18,759 7,723 16,322 42,804 Interest expense — — 17,827 17,827 Interest income — — (1,138 ) (1,138 ) Merger and other acquisition expenses — — 3,164 3,164 Loss on extinguishment of debt — — 14,114 14,114 Total expenses and other income 336,803 102,459 143,831 583,093 Income (loss) before income taxes $ 178,002 $ 81,106 $ (143,831 ) $ 115,277 Nine Months Ended September 30, 2016 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 186,673 $ 199,861 $ — $ 386,534 Pawn loan fees 94,929 87,887 — 182,816 Wholesale scrap jewelry sales 25,910 9,996 — 35,906 Consumer loan and credit services fees 19,619 1,460 — 21,079 Total revenue 327,131 299,204 — 626,335 Cost of revenue: Cost of retail merchandise sold 114,632 124,534 — 239,166 Cost of wholesale scrap jewelry sold 22,914 7,787 — 30,701 Consumer loan and credit services loss provision 5,380 400 — 5,780 Total cost of revenue 142,926 132,721 — 275,647 Net revenue 184,205 166,483 — 350,688 Expenses and other income: Store operating expenses 107,196 83,367 — 190,563 Administrative expenses — — 58,277 58,277 Depreciation and amortization 5,827 7,919 3,419 17,165 Interest expense — — 13,859 13,859 Interest income — — (636 ) (636 ) Merger and other acquisition expenses — — 33,877 33,877 Net loss on sale of common stock of Enova — — 253 253 Total expenses and other income 113,023 91,286 109,049 313,358 Income (loss) before income taxes $ 71,182 $ 75,197 $ (109,049 ) $ 37,330 |
Significant Accounting Polici13
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheet at December 31, 2016 , which is derived from audited financial statements, and the unaudited condensed consolidated financial statements, including the notes thereto, include the accounts of FirstCash, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions and the results of operations for the acquired stores have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. These unaudited consolidated financial statements are condensed and do not include all disclosures and footnotes required by generally accepted accounting principles in the United States of America for complete financial statements. These interim period financial statements should be read in conjunction with the Company’s consolidated financial statements, which are included in the Company’s annual report on Form 10-K for the year ended December 31, 2016 , filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2017 . The condensed consolidated financial statements as of September 30, 2017 and 2016 , and for the three month and nine month periods ended September 30, 2017 and 2016 , are unaudited, but in management’s opinion include all adjustments (consisting of only normal recurring adjustments) considered necessary to present fairly the financial position, results of operations and cash flow for such interim periods. Operating results for the periods ended September 30, 2017 are not necessarily indicative of the results that may be expected for the full fiscal year. On September 1, 2016, the Company completed its merger with Cash America International, Inc. (“Cash America”), whereby Cash America merged with and into a wholly owned subsidiary of the Company (the “Merger”). The accompanying unaudited condensed consolidated results of operations for the three month and nine month periods ended September 30, 2017 include the results of operations for Cash America, while the comparable prior-year periods include the results of operations for Cash America for the period September 2, 2016 to September 30, 2016, affecting comparability of 2017 and 2016 amounts. The Company has performed a valuation analysis of identifiable assets acquired and liabilities assumed and allocated the aggregate Merger consideration based on the fair values of those identifiable assets and liabilities. The Company has significant operations in Latin America, where in Mexico and Guatemala the functional currency is the Mexican peso and Guatemalan quetzal, respectively. Accordingly, the assets and liabilities of these subsidiaries are translated into U.S. dollars at the exchange rate in effect at each balance sheet date, and the resulting adjustments are accumulated in other comprehensive income (loss) as a separate component of stockholders’ equity. Revenues and expenses are translated at the average exchange rates occurring during the three month and nine month periods ended September 30, 2017 and 2016 . The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. In August 2015, the Financial Accounting Standards Board issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606),” which delayed the effective date of ASU 2014-09 by one year. In addition, between March 2016 and December 2016, the Financial Accounting Standards Board issued ASU No. 2016-08, “Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting revenue gross versus net)” (“ASU 2016-08”), ASU No. 2016-10, “Identifying Performance Obligations and Licensing” (“ASU 2016-10”), ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” (“ASU 2016-12”), and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers” (“ASU 2016-20”). ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 clarify certain aspects of ASU 2014-09 and provide additional implementation guidance. ASU 2014-09, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 (collectively, “ASC 606”) become effective for annual reporting periods (including interim periods within those periods) beginning after December 15, 2017 for public companies. Early adoption is permitted but not before annual reporting periods beginning after December 15, 2016. Entities are permitted to adopt ASC 606 using one of two methods: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. The Company plans to adopt ASC 606 using the modified retrospective method. The Company does not believe the adoption of ASC 606 will impact the Company’s revenue recognition for pawn loan fees or consumer loan fees, as it believes neither is within the scope of ASC 606. Further, the Company has not identified any impacts to its consolidated financial statements that it believes will be material as a result of the adoption of ASC 606 for other revenue streams (retail merchandise sales, credit services fees and wholesale scrap jewelry sales), although it continues to evaluate the impact of adoption. In July 2015, the Financial Accounting Standards Board issued ASU No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires inventory be measured at the lower of cost or net realizable value. ASU 2015-11 defines net realizable value as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventory measured using last-in, first-out (“LIFO”) or the retail inventory method are excluded from the scope of this update. ASU 2015-11 requires prospective application and is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU 2015-11 as of January 1, 2017, and the guidance was applied prospectively. There were no changes to the Company’s financial position, results of operations, financial statement disclosures or valuation of inventory. In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). ASU 2016-02 requires a lessee to recognize, in the statement of financial position, a liability to make lease payments (the lease liability) and a right-to-use asset representing its right to use the underlying asset for the lease term. Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. Lessor accounting remains largely unchanged. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, and interim periods within those annual periods, with early adoption permitted. An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently assessing the potential impact of ASU 2016-02 on its consolidated financial statements. In June 2016, the Financial Accounting Standards Board issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). ASU 2016-13 amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. ASU 2016-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the potential impact of ASU 2016-13 on its consolidated financial statements. In August 2016, the Financial Accounting Standards Board issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. ASU 2016-15 addresses eight specific cash flow issues with the objective of reducing existing diversity in practice. ASU 2016-15 is effective for public entities for fiscal years beginning after December 15, 2017, with early adoption permitted. The Company does not expect ASU 2016-15 to have a material effect on the Company’s consolidated financial statements or current financial statement disclosures. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 provides amendments to clarify the definition of a business and affects all companies and other reporting organizations that must determine whether they have acquired or sold a business. The amendments are intended to help companies and other organizations evaluate whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years and should be applied prospectively as of the beginning of the period of adoption. Early adoption is permitted under certain circumstances. The Company does not expect ASU 2017-01 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In January 2017, the Financial Accounting Standards Board issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”). These amendments eliminate step 2 from the goodwill impairment test. The amendments also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 and should be adopted on a prospective basis. The Company does not expect ASU 2017-04 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Fair Value Measurement | The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Numerator: Net income (loss) $ 28,274 $ (1,412 ) $ 76,158 $ 23,435 Denominator (in thousands): Weighted-average common shares for calculating basic earnings per share 47,628 34,631 48,090 30,372 Effect of dilutive securities: Stock options and nonvested stock awards 40 — 27 — Weighted-average common shares for calculating diluted earnings per share 47,668 34,631 48,117 30,372 Net income (loss) per share: Basic $ 0.59 $ (0.04 ) $ 1.58 $ 0.77 Diluted $ 0.59 $ (0.04 ) $ 1.58 $ 0.77 |
Long-Term Debt Schedule of Long
Long-Term Debt Schedule of Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs: September 30, December 31, 2017 2016 2016 Senior unsecured notes: 5.375% senior notes due 2024 (1) $ 294,961 $ — $ — 6.75% senior notes due 2021 (2) — 196,373 196,545 $ 294,961 $ 196,373 $ 196,545 Revolving unsecured credit facility, maturing 2022 $ 140,000 $ 360,000 $ 260,000 (1) As of September 30, 2017 , deferred debt issuance costs of $5,039 are included as a direct deduction from the carrying amount of the senior unsecured notes due 2024 in the accompanying condensed consolidated balance sheets. (2) As of September 30, 2016 and December 31, 2016 , deferred debt issuance costs of $3,627 and $3,455 , respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2021 in the accompanying condensed consolidated balance sheets. |
Fair Value of Financial Instr16
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets Measured on Recurring Basis | The Company’s financial assets that were measured at fair value on a recurring basis as of September 30, 2016 and December 31, 2016 were as follows: September 30, Fair Value Measurements Using Financial assets: 2016 Level 1 Level 2 Level 3 Cash America nonqualified savings plan-related assets $ 12,229 $ 12,229 $ — $ — Investment in common stock of Enova 54,786 54,786 — — $ 67,015 $ 67,015 $ — $ — December 31, Fair Value Measurements Using 2016 Level 1 Level 2 Level 3 Financial assets: Cash America nonqualified savings plan-related assets $ 12,663 $ 12,663 $ — $ — $ 12,663 $ 12,663 $ — $ — |
Fair Value, by Balance Sheet Grouping | The Company’s financial assets and liabilities as of September 30, 2017 , 2016 and December 31, 2016 that are not measured at fair value in the condensed consolidated balance sheets are as follows: Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2017 2017 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 93,411 $ 93,411 $ 93,411 $ — $ — Pawn loans 371,367 371,367 — — 371,367 Consumer loans, net 24,515 24,515 — — 24,515 Fees and service charges receivable 45,134 45,134 — — 45,134 $ 534,427 $ 534,427 $ 93,411 $ — $ 441,016 Financial liabilities: Revolving unsecured credit facilities $ 140,000 $ 140,000 $ — $ 140,000 $ — Senior unsecured notes, outstanding principal 300,000 314,000 — 314,000 — $ 440,000 $ 454,000 $ — $ 454,000 $ — Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2016 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 83,356 $ 83,356 $ 83,356 $ — $ — Pawn loans 373,169 373,169 — — 373,169 Consumer loans, net 27,792 27,792 — — 27,792 Fees and service charges receivable 45,708 45,708 — — 45,708 $ 530,025 $ 530,025 $ 83,356 $ — $ 446,669 Financial liabilities: Revolving unsecured credit facilities $ 360,000 $ 360,000 $ — $ 360,000 $ — Senior unsecured notes, outstanding principal 200,000 210,000 — 210,000 — $ 560,000 $ 570,000 $ — $ 570,000 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2016 2016 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 89,955 $ 89,955 $ 89,955 $ — $ — Pawn loans 350,506 350,506 — — 350,506 Consumer loans, net 29,204 29,204 — — 29,204 Fees and service charges receivable 41,013 41,013 — — 41,013 $ 510,678 $ 510,678 $ 89,955 $ — $ 420,723 Financial liabilities: Revolving unsecured credit facilities $ 260,000 $ 260,000 $ — $ 260,000 $ — Senior unsecured notes, outstanding principal 200,000 208,000 — 208,000 — $ 460,000 $ 468,000 $ — $ 468,000 $ — |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables present reportable segment information for the three and nine month periods ended September 30, 2017 and 2016 : Three Months Ended September 30, 2017 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 160,598 $ 85,736 $ — $ 246,334 Pawn loan fees 95,266 37,279 — 132,545 Wholesale scrap jewelry sales 32,397 5,131 — 37,528 Consumer loan and credit services fees 18,525 480 — 19,005 Total revenue 306,786 128,626 — 435,412 Cost of revenue: Cost of retail merchandise sold 107,561 53,789 — 161,350 Cost of wholesale scrap jewelry sold 31,518 5,313 — 36,831 Consumer loan and credit services loss provision 6,068 117 — 6,185 Total cost of revenue 145,147 59,219 — 204,366 Net revenue 161,639 69,407 — 231,046 Expenses and other income: Store operating expenses 104,555 34,411 — 138,966 Administrative expenses — — 29,999 29,999 Depreciation and amortization 5,919 2,704 5,249 13,872 Interest expense — — 6,129 6,129 Interest income — — (418 ) (418 ) Merger and other acquisition expenses — — 911 911 Loss on extinguishment of debt — — 20 20 Total expenses and other income 110,474 37,115 41,890 189,479 Income (loss) before income taxes $ 51,165 $ 32,292 $ (41,890 ) $ 41,567 Three Months Ended September 30, 2016 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 84,547 $ 67,668 $ — $ 152,215 Pawn loan fees 48,840 30,665 — 79,505 Wholesale scrap jewelry sales 15,046 3,910 — 18,956 Consumer loan and credit services fees 9,991 486 — 10,477 Total revenue 158,424 102,729 — 261,153 Cost of revenue: Cost of retail merchandise sold 51,922 41,477 — 93,399 Cost of wholesale scrap jewelry sold 13,955 3,022 — 16,977 Consumer loan and credit services loss provision 3,275 138 — 3,413 Total cost of revenue 69,152 44,637 — 113,789 Net revenue 89,272 58,092 — 147,364 Expenses and other income: Store operating expenses 52,480 28,094 — 80,574 Administrative expenses — — 24,500 24,500 Depreciation and amortization 2,906 2,602 1,773 7,281 Interest expense — — 5,073 5,073 Interest income — — (138 ) (138 ) Merger and other acquisition expenses — — 29,398 29,398 Net loss on sale of common stock of Enova — — 253 253 Total expenses and other income 55,386 30,696 60,859 146,941 Income (loss) before income taxes $ 33,886 $ 27,396 $ (60,859 ) $ 423 Nine Months Ended September 30, 2017 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 519,116 $ 231,034 $ — $ 750,150 Pawn loan fees 287,338 96,090 — 383,428 Wholesale scrap jewelry sales 91,430 15,855 — 107,285 Consumer loan and credit services fees 57,425 1,329 — 58,754 Total revenue 955,309 344,308 — 1,299,617 Cost of revenue: Cost of retail merchandise sold 337,789 145,669 — 483,458 Cost of wholesale scrap jewelry sold 87,600 14,770 — 102,370 Consumer loan and credit services loss provision 15,115 304 — 15,419 Total cost of revenue 440,504 160,743 — 601,247 Net revenue 514,805 183,565 — 698,370 Expenses and other income: Store operating expenses 318,044 94,736 — 412,780 Administrative expenses — — 93,542 93,542 Depreciation and amortization 18,759 7,723 16,322 42,804 Interest expense — — 17,827 17,827 Interest income — — (1,138 ) (1,138 ) Merger and other acquisition expenses — — 3,164 3,164 Loss on extinguishment of debt — — 14,114 14,114 Total expenses and other income 336,803 102,459 143,831 583,093 Income (loss) before income taxes $ 178,002 $ 81,106 $ (143,831 ) $ 115,277 Nine Months Ended September 30, 2016 U.S. Operations Latin America Operations Corporate Consolidated Revenue: Retail merchandise sales $ 186,673 $ 199,861 $ — $ 386,534 Pawn loan fees 94,929 87,887 — 182,816 Wholesale scrap jewelry sales 25,910 9,996 — 35,906 Consumer loan and credit services fees 19,619 1,460 — 21,079 Total revenue 327,131 299,204 — 626,335 Cost of revenue: Cost of retail merchandise sold 114,632 124,534 — 239,166 Cost of wholesale scrap jewelry sold 22,914 7,787 — 30,701 Consumer loan and credit services loss provision 5,380 400 — 5,780 Total cost of revenue 142,926 132,721 — 275,647 Net revenue 184,205 166,483 — 350,688 Expenses and other income: Store operating expenses 107,196 83,367 — 190,563 Administrative expenses — — 58,277 58,277 Depreciation and amortization 5,827 7,919 3,419 17,165 Interest expense — — 13,859 13,859 Interest income — — (636 ) (636 ) Merger and other acquisition expenses — — 33,877 33,877 Net loss on sale of common stock of Enova — — 253 253 Total expenses and other income 113,023 91,286 109,049 313,358 Income (loss) before income taxes $ 71,182 $ 75,197 $ (109,049 ) $ 37,330 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 28,274 | $ (1,412) | $ 76,158 | $ 23,435 |
Denominator (in thousands): | ||||
Weighted-average common shares for calculating basic earnings per share (shares) | 47,628 | 34,631 | 48,090 | 30,372 |
Stock options and nonvested stock awards (shares) | 40 | 0 | 27 | 0 |
Weighted-average common shares for calculating diluted earnings per share (shares) | 47,668 | 34,631 | 48,117 | 30,372 |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.59 | $ (0.04) | $ 1.58 | $ 0.77 |
Diluted (in dollars per share) | $ 0.59 | $ (0.04) | $ 1.58 | $ 0.77 |
Long-Term Debt (Details)
Long-Term Debt (Details) | May 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ 294,961,000 | $ 196,373,000 | $ 294,961,000 | $ 196,373,000 | $ 196,545,000 | |
Deferred finance costs, net | $ 5,000 | $ 5,039,000 | 3,627,000 | $ 5,039,000 | 3,627,000 | 3,455,000 |
Debt ratio | 2.25 | 2.25 | ||||
Loss on extinguishment of debt | $ 20,000 | 0 | $ 14,114,000 | 0 | ||
Repurchase/redemption premiums on senior unsecured notes | 10,895,000 | 0 | ||||
Write off of deferred debt issuance cost | 3,219 | |||||
Line of Credit | 2016 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amount outstanding | 140,000,000 | 360,000,000 | 140,000,000 | 360,000,000 | 260,000,000 | |
Maximum borrowing capacity | 400,000,000 | 400,000,000 | ||||
Letters of credit outstanding, amount | 4,456,000 | 4,456,000 | ||||
Remaining borrowing capacity | $ 255,544,000 | $ 255,544,000 | ||||
Unused capacity, commitment fee percentage | 0.50% | |||||
Interest rate at end of period (percent) | 3.75% | 3.75% | ||||
Net proceeds | $ (120,000,000) | |||||
Line of Credit | 2016 Credit Facility | 30-day LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 2.50% | |||||
Line of Credit | 2016 Credit Facility | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 1.50% | |||||
Line of Credit | Mexico Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Amount outstanding | $ 0 | $ 0 | ||||
Maximum borrowing capacity | 10,000,000 | 10,000,000 | ||||
Remaining borrowing capacity | $ 10,000,000 | $ 10,000,000 | ||||
Expiration date | Dec. 9, 2017 | |||||
Commitment fee amount | $ 25,000 | |||||
Line of Credit | Mexico Credit Facility | 30-day LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (percent) | 2.00% | |||||
Line of Credit | Minimum | 2016 Credit Facility | 30-day LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 0.00% | 0.00% | ||||
Senior notes 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price, percentage of principal amount redeemed | 35.00% | |||||
Senior notes 2024 | First Cash | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 5.375% | |||||
Face amount | $ 0 | |||||
Restriction on payments for share repurchases and dividends | $ 100,000 | |||||
Senior notes 2024 | Debt Instrument, Redemption, Period One | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price, percentage | 100.00% | |||||
Senior notes 2024 | Debt Instrument, Redemption, Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price, percentage | 105.375% | |||||
Senior notes 2024 | Debt Instrument, Redemption, Period Three | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, redemption price, percentage | 101.00% | |||||
Senior notes 2021 | First Cash | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 6.75% | |||||
Face amount | $ 0 | |||||
Senior notes 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate (percent) | 6.75% | 6.75% | ||||
Unamortized debt issuance costs | $ 0 | $ 196,373,000 | $ 0 | $ 196,373,000 | $ 196,545,000 |
Fair Value of Financial Instr20
Fair Value of Financial Instruments Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Sep. 30, 2016 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash America nonqualified savings plan-related assets | $ 12,663 | $ 12,229 |
Available-for-sale Securities, Equity Securities | 54,786 | |
Total assets | 12,663 | 67,015 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash America nonqualified savings plan-related assets | 0 | 0 |
Available-for-sale Securities, Equity Securities | 0 | |
Total assets | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash America nonqualified savings plan-related assets | 0 | 0 |
Available-for-sale Securities, Equity Securities | 0 | |
Total assets | 0 | 0 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash America nonqualified savings plan-related assets | 12,663 | 12,229 |
Available-for-sale Securities, Equity Securities | 54,786 | |
Total assets | $ 12,663 | $ 67,015 |
Fair Value of Financial Instr21
Fair Value of Financial Instruments Financial Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Level 1 | |||
Financial assets: | |||
Total assets | $ 12,663 | $ 67,015 | |
Level 2 | |||
Financial assets: | |||
Total assets | 0 | 0 | |
Level 3 | |||
Financial assets: | |||
Total assets | 0 | 0 | |
Carrying Value | |||
Financial assets: | |||
Cash and cash equivalents | $ 93,411 | 89,955 | 83,356 |
Fees and service charges receivable | 45,134 | 41,013 | 45,708 |
Total assets | 534,427 | 510,678 | 530,025 |
Financial liabilities: | |||
Total liabilities | 440,000 | 460,000 | 560,000 |
Carrying Value | Pawn loans | |||
Financial assets: | |||
Loans receivable | 371,367 | 350,506 | 373,169 |
Carrying Value | Consumer loans, net | |||
Financial assets: | |||
Loans receivable | 24,515 | 29,204 | 27,792 |
Carrying Value | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 140,000 | 260,000 | 360,000 |
Carrying Value | Senior unsecured notes, outstanding principal | |||
Financial liabilities: | |||
Debt | 300,000 | 200,000 | 200,000 |
Estimated Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 93,411 | 89,955 | 83,356 |
Fees and service charges receivable | 45,134 | 41,013 | 45,708 |
Total assets | 534,427 | 510,678 | 530,025 |
Financial liabilities: | |||
Total liabilities | 454,000 | 468,000 | 570,000 |
Estimated Fair Value | Pawn loans | |||
Financial assets: | |||
Loans receivable | 371,367 | 350,506 | 373,169 |
Estimated Fair Value | Consumer loans, net | |||
Financial assets: | |||
Loans receivable | 24,515 | 29,204 | 27,792 |
Estimated Fair Value | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 140,000 | 260,000 | 360,000 |
Estimated Fair Value | Senior unsecured notes, outstanding principal | |||
Financial liabilities: | |||
Debt | 314,000 | 208,000 | 210,000 |
Estimated Fair Value | Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 93,411 | 89,955 | 83,356 |
Fees and service charges receivable | 0 | 0 | 0 |
Total assets | 93,411 | 89,955 | 83,356 |
Financial liabilities: | |||
Total liabilities | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Pawn loans | |||
Financial assets: | |||
Loans receivable | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Consumer loans, net | |||
Financial assets: | |||
Loans receivable | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Senior unsecured notes, outstanding principal | |||
Financial liabilities: | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Fees and service charges receivable | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Financial liabilities: | |||
Total liabilities | 454,000 | 468,000 | 570,000 |
Estimated Fair Value | Level 2 | Pawn loans | |||
Financial assets: | |||
Loans receivable | 0 | 0 | 0 |
Estimated Fair Value | Level 2 | Consumer loans, net | |||
Financial assets: | |||
Loans receivable | 0 | 0 | 0 |
Estimated Fair Value | Level 2 | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 140,000 | 260,000 | 360,000 |
Estimated Fair Value | Level 2 | Senior unsecured notes, outstanding principal | |||
Financial liabilities: | |||
Debt | 314,000 | 208,000 | 210,000 |
Estimated Fair Value | Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Fees and service charges receivable | 45,134 | 41,013 | 45,708 |
Total assets | 441,016 | 420,723 | 446,669 |
Financial liabilities: | |||
Total liabilities | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Pawn loans | |||
Financial assets: | |||
Loans receivable | 371,367 | 350,506 | 373,169 |
Estimated Fair Value | Level 3 | Consumer loans, net | |||
Financial assets: | |||
Loans receivable | 24,515 | 29,204 | 27,792 |
Estimated Fair Value | Level 3 | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Senior unsecured notes, outstanding principal | |||
Financial liabilities: | |||
Debt | $ 0 | $ 0 | $ 0 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Schedule of Revenues from External Customers [Line Items] | ||||
Number of reportable segments | 2 | |||
Revenue: | ||||
Retail merchandise sales | $ 246,334 | $ 152,215 | $ 750,150 | $ 386,534 |
Pawn loan fees | 132,545 | 79,505 | 383,428 | 182,816 |
Wholesale scrap jewelry sales | 37,528 | 18,956 | 107,285 | 35,906 |
Consumer loan and credit services fees | 19,005 | 10,477 | 58,754 | 21,079 |
Total revenue | 435,412 | 261,153 | 1,299,617 | 626,335 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 161,350 | 93,399 | 483,458 | 239,166 |
Cost of wholesale scrap jewelry sold | 36,831 | 16,977 | 102,370 | 30,701 |
Consumer loan and credit services loss provision | 6,185 | 3,413 | 15,419 | 5,780 |
Total cost of revenue | 204,366 | 113,789 | 601,247 | 275,647 |
Net revenue | 231,046 | 147,364 | 698,370 | 350,688 |
Expenses and other income: | ||||
Store operating expenses | 138,966 | 80,574 | 412,780 | 190,563 |
Administrative expenses | 29,999 | 24,500 | 93,542 | 58,277 |
Depreciation and amortization | 13,872 | 7,281 | 42,804 | 17,165 |
Interest expense | 6,129 | 5,073 | 17,827 | 13,859 |
Interest income | (418) | (138) | (1,138) | (636) |
Merger and other acquisition expenses | 911 | 29,398 | 3,164 | 33,877 |
Net loss on sale of common stock of Enova | 0 | (253) | 0 | (253) |
Loss on extinguishment of debt | 20 | 0 | 14,114 | 0 |
Total expenses and other income | 189,479 | 146,941 | 583,093 | 313,358 |
Income (loss) before income taxes | 41,567 | 423 | 115,277 | 37,330 |
U.S. Operations | ||||
Revenue: | ||||
Retail merchandise sales | 160,598 | 84,547 | 519,116 | 186,673 |
Pawn loan fees | 95,266 | 48,840 | 287,338 | 94,929 |
Wholesale scrap jewelry sales | 32,397 | 15,046 | 91,430 | 25,910 |
Consumer loan and credit services fees | 18,525 | 9,991 | 57,425 | 19,619 |
Total revenue | 306,786 | 158,424 | 955,309 | 327,131 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 107,561 | 51,922 | 337,789 | 114,632 |
Cost of wholesale scrap jewelry sold | 31,518 | 13,955 | 87,600 | 22,914 |
Consumer loan and credit services loss provision | 6,068 | 3,275 | 15,115 | 5,380 |
Total cost of revenue | 145,147 | 69,152 | 440,504 | 142,926 |
Net revenue | 161,639 | 89,272 | 514,805 | 184,205 |
Expenses and other income: | ||||
Store operating expenses | 104,555 | 52,480 | 318,044 | 107,196 |
Administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 5,919 | 2,906 | 18,759 | 5,827 |
Interest expense | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Merger and other acquisition expenses | 0 | 0 | 0 | 0 |
Net loss on sale of common stock of Enova | 0 | 0 | ||
Loss on extinguishment of debt | 0 | 0 | ||
Total expenses and other income | 110,474 | 55,386 | 336,803 | 113,023 |
Income (loss) before income taxes | 51,165 | 33,886 | 178,002 | 71,182 |
Latin America Operations | ||||
Revenue: | ||||
Retail merchandise sales | 85,736 | 67,668 | 231,034 | 199,861 |
Pawn loan fees | 37,279 | 30,665 | 96,090 | 87,887 |
Wholesale scrap jewelry sales | 5,131 | 3,910 | 15,855 | 9,996 |
Consumer loan and credit services fees | 480 | 486 | 1,329 | 1,460 |
Total revenue | 128,626 | 102,729 | 344,308 | 299,204 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 53,789 | 41,477 | 145,669 | 124,534 |
Cost of wholesale scrap jewelry sold | 5,313 | 3,022 | 14,770 | 7,787 |
Consumer loan and credit services loss provision | 117 | 138 | 304 | 400 |
Total cost of revenue | 59,219 | 44,637 | 160,743 | 132,721 |
Net revenue | 69,407 | 58,092 | 183,565 | 166,483 |
Expenses and other income: | ||||
Store operating expenses | 34,411 | 28,094 | 94,736 | 83,367 |
Administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 2,704 | 2,602 | 7,723 | 7,919 |
Interest expense | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Merger and other acquisition expenses | 0 | 0 | 0 | 0 |
Net loss on sale of common stock of Enova | 0 | 0 | ||
Loss on extinguishment of debt | 0 | 0 | ||
Total expenses and other income | 37,115 | 30,696 | 102,459 | 91,286 |
Income (loss) before income taxes | 32,292 | 27,396 | 81,106 | 75,197 |
Corporate | ||||
Revenue: | ||||
Retail merchandise sales | 0 | 0 | 0 | 0 |
Pawn loan fees | 0 | 0 | 0 | 0 |
Wholesale scrap jewelry sales | 0 | 0 | 0 | 0 |
Consumer loan and credit services fees | 0 | 0 | 0 | 0 |
Total revenue | 0 | 0 | 0 | 0 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 0 | 0 | 0 | 0 |
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 | 0 |
Consumer loan and credit services loss provision | 0 | 0 | 0 | 0 |
Total cost of revenue | 0 | 0 | 0 | 0 |
Net revenue | 0 | 0 | 0 | 0 |
Expenses and other income: | ||||
Store operating expenses | 0 | 0 | 0 | 0 |
Administrative expenses | 29,999 | 24,500 | 93,542 | 58,277 |
Depreciation and amortization | 5,249 | 1,773 | 16,322 | 3,419 |
Interest expense | 6,129 | 5,073 | 17,827 | 13,859 |
Interest income | (418) | (138) | (1,138) | (636) |
Merger and other acquisition expenses | 911 | 29,398 | 3,164 | 33,877 |
Net loss on sale of common stock of Enova | (253) | (253) | ||
Loss on extinguishment of debt | 20 | 14,114 | ||
Total expenses and other income | 41,890 | 60,859 | 143,831 | 109,049 |
Income (loss) before income taxes | $ (41,890) | $ (60,859) | $ (143,831) | $ (109,049) |
Uncategorized Items - fcfs-2017
Label | Element | Value |
Senior notes 2024 [Member] | ||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | us-gaap_DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet | $ 0 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | us-gaap_DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet | 0 |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | us-gaap_DebtInstrumentUnamortizedDiscountPremiumAndDebtIssuanceCostsNet | $ 294,961,000 |
Debt Instrument, Interest Rate, Stated Percentage | us-gaap_DebtInstrumentInterestRateStatedPercentage | 5.375% |