Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-10960 | |
Entity Registrant Name | FIRSTCASH HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-3920732 | |
Entity Address, Address Line One | 1600 West 7th Street | |
Entity Address, City or Town | Fort Worth | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76102 | |
City Area Code | 817 | |
Local Phone Number | 335-1100 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | FCFS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,107,912 | |
Entity Central Index Key | 0000840489 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Current assets | |||
Cash and cash equivalents | $ 104,598 | $ 117,330 | $ 110,414 |
Accounts receivable, net | 63,337 | 57,792 | 55,924 |
Pawn loans | 426,165 | 390,617 | 385,708 |
Finance receivables, net | 110,555 | 103,494 | 125,619 |
Inventories | 267,142 | 288,339 | 260,528 |
Leased merchandise, net | 143,145 | 153,302 | 118,924 |
Prepaid expenses and other current assets | 30,102 | 19,788 | 21,125 |
Total current assets | 1,145,044 | 1,130,662 | 1,078,242 |
Property and equipment, net | 587,934 | 538,681 | 519,836 |
Operating lease right of use asset | 305,513 | 307,009 | 301,979 |
Goodwill | 1,600,068 | 1,581,381 | 1,522,192 |
Intangible assets, net | 303,642 | 330,338 | 359,716 |
Other assets | 9,586 | 9,415 | 8,345 |
Deferred tax assets, net | 7,770 | 7,381 | 6,231 |
Total assets | 3,959,557 | 3,904,867 | 3,796,541 |
Current liabilities | |||
Accounts payable and accrued liabilities | 146,163 | 139,460 | 198,967 |
Customer deposits and prepayments | 70,056 | 63,125 | 59,754 |
Lease liability, current | 96,215 | 92,944 | 90,804 |
Total current liabilities | 312,434 | 295,529 | 349,525 |
Revolving unsecured credit facilities | 376,000 | 339,000 | 274,000 |
Senior unsecured notes | 1,036,660 | 1,035,698 | 1,034,761 |
Deferred tax liabilities, net | 140,609 | 151,759 | 121,046 |
Lease liability, non-current | 197,135 | 203,115 | 199,211 |
Total liabilities | 2,062,838 | 2,025,101 | 1,978,543 |
Stockholders’ equity: | |||
Common stock | 573 | 573 | 573 |
Additional paid-in capital | 1,734,122 | 1,734,528 | 1,729,625 |
Retained earnings | 1,122,579 | 1,060,603 | 952,011 |
Accumulated other comprehensive loss | (49,258) | (106,573) | (119,994) |
Common stock held in treasury, at cost | (911,297) | (809,365) | (744,217) |
Total stockholders’ equity | 1,896,719 | 1,879,766 | 1,817,998 |
Total liabilities and stockholders’ equity | $ 3,959,557 | $ 3,904,867 | $ 3,796,541 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue: | ||||
Retail merchandise sales | $ 320,864 | $ 298,257 | $ 648,779 | $ 601,076 |
Pawn loan fees | 154,178 | 134,067 | 305,738 | 265,886 |
Leased merchandise income | 189,805 | 147,700 | 373,243 | 297,647 |
Interest and fees on finance receivables | 58,192 | 43,744 | 112,834 | 86,193 |
Wholesale scrap jewelry sales | 27,583 | 23,848 | 72,767 | 56,653 |
Total revenue | 750,622 | 647,616 | 1,513,361 | 1,307,455 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 192,271 | 179,309 | 391,272 | 361,523 |
Depreciation of leased merchandise | 102,521 | 82,605 | 204,126 | 176,311 |
Provision for lease losses | 52,873 | 38,035 | 101,938 | 77,855 |
Provision for loan losses | 28,190 | 26,800 | 57,475 | 51,497 |
Cost of wholesale scrap jewelry sold | 21,880 | 19,895 | 57,607 | 48,110 |
Total cost of revenue | 397,735 | 346,644 | 812,418 | 715,296 |
Net revenue (loss) | 352,887 | 300,972 | 700,943 | 592,159 |
Expenses and other income: | ||||
Operating expenses | 204,781 | 180,555 | 403,842 | 353,851 |
Administrative expenses | 40,355 | 37,068 | 79,372 | 73,931 |
Depreciation and amortization | 27,050 | 25,982 | 54,161 | 51,524 |
Interest expense | 21,071 | 16,246 | 41,968 | 32,467 |
Interest income | (408) | (222) | (925) | (898) |
(Gain) loss on foreign exchange | (817) | 27 | (1,619) | (453) |
Merger and acquisition expenses | 252 | 314 | 283 | 979 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 0 | (65,559) | 0 | (62,989) |
Other expenses (income), net | 79 | (3,062) | 124 | (2,885) |
Total expenses and other income | 292,363 | 191,349 | 577,206 | 445,527 |
Income (loss) before income taxes | 60,524 | 109,623 | 123,737 | 146,632 |
Provision for income taxes | 15,344 | 23,515 | 31,169 | 32,519 |
Net income | $ 45,180 | $ 86,108 | $ 92,568 | $ 114,113 |
Earnings per share: | ||||
Basic (USD per share) | $ 0.99 | $ 1.82 | $ 2.02 | $ 2.39 |
Diluted (USD per share) | $ 0.99 | $ 1.81 | $ 2.01 | $ 2.38 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 45,180 | $ 86,108 | $ 92,568 | $ 114,113 |
Other comprehensive income: | ||||
Currency translation adjustment | 27,802 | (484) | 57,315 | 11,305 |
Comprehensive income | $ 72,982 | $ 85,624 | $ 149,883 | $ 125,418 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | 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, 2021 | 57,322 | 8,843 | ||||
Balance at beginning of period at Dec. 31, 2021 | $ 1,808,127 | $ 573 | $ 1,724,956 | $ 866,679 | $ (131,299) | $ (652,782) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation plan, net of 28 shares net-settled | 0 | (1,281) | $ 1,281 | |||
Shares issued under share-based compensation plan (shares) | (17) | |||||
Share-based compensation expense | 3,075 | 3,075 | ||||
Net income | 28,005 | 28,005 | ||||
Cash dividends | (14,546) | (14,546) | ||||
Currency translation adjustment | 11,789 | 11,789 | ||||
Purchases of treasury stock (shares) | 1,048 | |||||
Purchases of treasury stock, including excise tax | (72,217) | $ (72,217) | ||||
Balance at end of period (shares) at Mar. 31, 2022 | 57,322 | 9,874 | ||||
Balance at end of period at Mar. 31, 2022 | 1,764,233 | $ 573 | 1,726,750 | 880,138 | (119,510) | $ (723,718) |
Balance at beginning of period (shares) at Dec. 31, 2021 | 57,322 | 8,843 | ||||
Balance at beginning of period at Dec. 31, 2021 | 1,808,127 | $ 573 | 1,724,956 | 866,679 | (131,299) | $ (652,782) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 114,113 | |||||
Balance at end of period (shares) at Jun. 30, 2022 | 57,322 | 10,175 | ||||
Balance at end of period at Jun. 30, 2022 | 1,817,998 | $ 573 | 1,729,625 | 952,011 | (119,994) | $ (744,217) |
Balance at beginning of period (shares) at Mar. 31, 2022 | 57,322 | 9,874 | ||||
Balance at beginning of period at Mar. 31, 2022 | 1,764,233 | $ 573 | 1,726,750 | 880,138 | (119,510) | $ (723,718) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 2,875 | 2,875 | ||||
Net income | 86,108 | 86,108 | ||||
Cash dividends | (14,235) | (14,235) | ||||
Currency translation adjustment | (484) | (484) | ||||
Purchases of treasury stock (shares) | 301 | |||||
Purchases of treasury stock, including excise tax | (20,499) | $ (20,499) | ||||
Balance at end of period (shares) at Jun. 30, 2022 | 57,322 | 10,175 | ||||
Balance at end of period at Jun. 30, 2022 | 1,817,998 | $ 573 | 1,729,625 | 952,011 | (119,994) | $ (744,217) |
Balance at beginning of period (shares) at Dec. 31, 2022 | 57,322 | 11,030 | ||||
Balance at beginning of period at Dec. 31, 2022 | 1,879,766 | $ 573 | 1,734,528 | 1,060,603 | (106,573) | $ (809,365) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation plan, net of 28 shares net-settled | (2,463) | (7,156) | $ 4,693 | |||
Shares issued under share-based compensation plan (shares) | (64) | |||||
Share-based compensation expense | 3,375 | 3,375 | ||||
Net income | 47,388 | 47,388 | ||||
Cash dividends | (15,294) | (15,294) | ||||
Currency translation adjustment | 29,513 | 29,513 | ||||
Purchases of treasury stock (shares) | 782 | |||||
Purchases of treasury stock, including excise tax | (71,411) | $ (71,411) | ||||
Balance at end of period (shares) at Mar. 31, 2023 | 57,322 | 11,748 | ||||
Balance at end of period at Mar. 31, 2023 | $ 1,870,874 | $ 573 | 1,730,747 | 1,092,697 | (77,060) | $ (876,083) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares withheld for tax withholding obligation (in shares) | 28 | |||||
Balance at beginning of period (shares) at Dec. 31, 2022 | 57,322 | 11,030 | ||||
Balance at beginning of period at Dec. 31, 2022 | $ 1,879,766 | $ 573 | 1,734,528 | 1,060,603 | (106,573) | $ (809,365) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 92,568 | |||||
Balance at end of period (shares) at Jun. 30, 2023 | 57,322 | 12,119 | ||||
Balance at end of period at Jun. 30, 2023 | 1,896,719 | $ 573 | 1,734,122 | 1,122,579 | (49,258) | $ (911,297) |
Balance at beginning of period (shares) at Mar. 31, 2023 | 57,322 | 11,748 | ||||
Balance at beginning of period at Mar. 31, 2023 | 1,870,874 | $ 573 | 1,730,747 | 1,092,697 | (77,060) | $ (876,083) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 3,375 | 3,375 | ||||
Net income | 45,180 | 45,180 | ||||
Cash dividends | (15,298) | (15,298) | ||||
Currency translation adjustment | 27,802 | 27,802 | ||||
Purchases of treasury stock (shares) | 371 | |||||
Purchases of treasury stock, including excise tax | (35,214) | $ (35,214) | ||||
Balance at end of period (shares) at Jun. 30, 2023 | 57,322 | 12,119 | ||||
Balance at end of period at Jun. 30, 2023 | $ 1,896,719 | $ 573 | $ 1,734,122 | $ 1,122,579 | $ (49,258) | $ (911,297) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Shares withheld for tax withholding obligation (in shares) | 28 | |||
Cash dividends (USD per share) | $ 0.33 | $ 0.33 | $ 0.30 | $ 0.30 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Cash flow from operating activities: | |||
Net income | $ 92,568 | $ 114,113 | |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Depreciation of leased merchandise | 204,126 | 176,311 | |
Provision for lease losses | 101,938 | 77,855 | |
Provision for loan losses | 57,475 | 51,497 | |
Share-based compensation expense | 6,750 | 5,950 | |
Depreciation and amortization expense | 54,161 | 51,524 | |
Amortization of debt issuance costs | 1,375 | 1,473 | |
Net amortization of premiums, discounts and unearned origination fees on finance receivables | (7,411) | 27,451 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 0 | (62,989) | |
Impairments and dispositions of certain other assets | 124 | 318 | |
Deferred income taxes, net | (10,571) | 12,702 | |
Changes in operating assets and liabilities, net of business combinations: | |||
Accounts receivable, net | (3,551) | (224) | |
Inventories purchased directly from customers, wholesalers or manufacturers | 11,476 | 1,804 | |
Leased merchandise, net | (295,907) | (229,146) | |
Prepaid expenses and other assets | (4,696) | (1,672) | |
Accounts payable, accrued liabilities and other liabilities | (2,936) | (4,846) | |
Income taxes | 748 | 4,646 | |
Net cash flow provided by operating activities | 205,669 | 226,767 | |
Cash flow from investing activities: | |||
Pawn loans, net | [1] | 188 | (32,265) |
Finance receivables, net | (57,125) | (23,546) | |
Purchases of furniture, fixtures, equipment and improvements | (28,348) | (19,686) | |
Purchases of store real property | (34,542) | (58,559) | |
Acquisitions of pawn stores, net of cash acquired | (5,472) | (2,343) | |
Net cash flow used in investing activities | (125,299) | (136,399) | |
Cash flow from financing activities: | |||
Borrowings from unsecured credit facilities | 180,000 | 126,000 | |
Repayments of unsecured credit facilities | (143,000) | (111,000) | |
Debt issuance costs paid | 0 | (475) | |
Purchases of treasury stock | (101,843) | (87,727) | |
Payment of withholding taxes on net share settlements of restricted stock unit awards | (2,463) | 0 | |
Dividends paid | (30,592) | (28,781) | |
Net cash flow used in financing activities | (97,898) | (101,983) | |
Effect of exchange rates on cash | 4,796 | 1,983 | |
Change in cash and cash equivalents | (12,732) | (9,632) | |
Cash and cash equivalents at beginning of the period | 117,330 | 120,046 | |
Cash and cash equivalents at end of the period | $ 104,598 | $ 110,414 | |
[1]Includes the funding of new pawn loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral. |
General
General | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
General | General Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2022, which is derived from audited consolidated financial statements, and the unaudited consolidated financial statements, including the notes thereto, includes the accounts of FirstCash Holdings, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions, and the results of operations for the acquisitions have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. These interim period financial statements should be read in conjunction with the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 6, 2023. The consolidated financial statements as of June 30, 2023 and 2022, and for the three month and six month periods ended June 30, 2023 and 2022, 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 June 30, 2023 are not necessarily indicative of the results that may be expected for the full year. The Company has pawn operations in Latin America, where in Mexico, Guatemala and Colombia, the functional currency is the Mexican peso, Guatemalan quetzal and Colombian peso. 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 respective period. The Company also has pawn operations in El Salvador, where the reporting and functional currency is the U.S. dollar. Use of Estimates The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related revenue and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements. Such estimates and assumptions are subject to a number of risks and uncertainties, which may cause actual results to differ materially from the Company’s estimates. Recent Accounting Pronouncements In March 2022, the Financial Accounting Standards Board issued ASU No 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for entities. Except for expanded disclosures to the Company’s vintage disclosures, ASU 2022-02 did not have a material effect on the Company’s current financial position, results of operations or financial statements. See Note 5. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Numerator: Net income $ 45,180 $ 86,108 $ 92,568 $ 114,113 Denominator: Weighted-average common shares for calculating basic earnings per share 45,455 47,425 45,799 47,831 Effect of dilutive securities: Restricted stock unit awards 223 74 194 66 Weighted-average common shares for calculating diluted earnings per share 45,678 47,499 45,993 47,897 Earnings per share: Basic $ 0.99 $ 1.82 $ 2.02 $ 2.39 Diluted $ 0.99 $ 1.81 $ 2.01 $ 2.38 |
Operating Leases
Operating Leases | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Operating Leases | Operating Leases Lessor For information about the Company’s revenue-generating activities as a lessor, refer to Note 2 to the consolidated financial statements included in the Company’s 2022 Annual Report on Form 10-K. All of the Company’s lease agreements are considered operating leases. Lessee The Company leases the majority of its pawnshop locations and certain administrative offices under operating leases and determines if an arrangement is or contains a lease at inception. Many leases include both lease and non-lease components for which the Company accounts separately. Lease components include rent, taxes and insurance costs while non-lease components include common area or other maintenance costs. Operating leases are included in operating lease right of use assets, lease liability, current and lease liability, non-current in the consolidated balance sheets. The Company does not have any finance leases. Leased facilities are generally leased for a term of three three The operating lease right of use asset and lease liability is recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate, and therefore, it uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company utilizes a portfolio approach for determining the incremental borrowing rate to apply to groups of leases with similar characteristics. The weighted-average discount rate used to measure the lease liability as of June 30, 2023 and 2022 was 7.3% and 6.0%, respectively. The Company has certain operating leases in Mexico which are denominated in U.S. dollars. The liability related to these leases is considered a monetary liability and requires remeasurement each reporting period into the functional currency (Mexican pesos) using reporting date exchange rates. The remeasurement results in the recognition of foreign currency exchange gains or losses each reporting period, which can produce a certain level of earnings volatility. The Company recognized a foreign currency gain of $1.1 million and less than $0.1 million during the three months ended June 30, 2023 and 2022, respectively, related to the remeasurement of these U.S. dollar denominated operating leases, which is included in (gain) loss on foreign exchange in the accompanying consolidated statements of income. During the six months ended June 30, 2023 and 2022, the Company recognized a foreign currency gain of $2.3 million and $0.7 million, respectively, related to these U.S. dollar denominated leases. Lease expense is recognized on a straight-line basis over the lease term, with variable lease expense recognized in the period such payments are incurred. The following table details the components of lease expense included in operating expenses in the consolidated statements of income during the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Operating lease expense $ 34,475 $ 32,074 $ 68,015 $ 63,602 Variable lease expense (1) 4,561 4,229 9,033 8,403 Total operating lease expense $ 39,036 $ 36,303 $ 77,048 $ 72,005 (1) Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term. The following table details the maturity of lease liabilities for all operating leases as of June 30, 2023 (in thousands): Six months ending December 31, 2023 $ 59,618 2024 101,384 2025 72,721 2026 49,375 2027 25,547 Thereafter 28,781 Total $ 337,426 Less amount of lease payments representing interest (44,076) Total present value of lease payments $ 293,350 The following table details supplemental cash flow information related to operating leases for the six months ended June 30, 2023 and 2022 (in thousands): Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 60,660 $ 58,343 Leased assets obtained in exchange for new operating lease liabilities $ 35,392 $ 41,991 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
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 The Company did not have any financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023. The Company’s financial assets and liabilities as of June 30, 2022 and December 31, 2022 that are measured at fair value on a recurring basis are as follows (in thousands): Estimated Fair Value Fair Value Measurements Using Level 1 Level 2 Level 3 Financial liabilities (1) : Contingent consideration as of June 30, 2022 $ — $ — $ 46,560 Contingent consideration as of December 31, 2022 — — — (1) Under the AFF purchase agreement, the seller parties had the right to receive up to $50 million of additional consideration if AFF achieved certain adjusted EBITDA targets for the first half of 2023. AFF did not achieve the threshold adjusted EBITDA target for the first half of 2023 and, therefore, the $50 million of additional consideration was not earned by the seller parties. As of June 30, 2023, there was no remaining contingent consideration available to the seller parties. The contingent consideration related to the AFF acquisition is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheet as of June 30, 2022. The changes in financial assets and liabilities that are measured and recorded at fair value on a recurring basis using Level 3 fair value measurements for the three and six months ended June 30, 2023 and June 30, 2022 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Contingent consideration at beginning of the period $ — $ 112,119 $ — $ 109,549 Change in fair value (1) — (65,559) — (62,989) Contingent consideration at end of the period $ — $ 46,560 $ — $ 46,560 (1) The Company recognized a gain of $65.6 million and $63.0 million during the three and six months ended June 30, 2022, respectively, as a result of the change in fair value of the contingent consideration, which is included in gain on revaluation of contingent acquisition consideration in the accompanying consolidated statements of income. There were no transfers in or out of Level 1, 2 or 3 during the three and six months ended June 30, 2023 and June 30, 2022. Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities, such as property and equipment and intangible assets, at fair value on a non-recurring 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, But for Which Fair Value is Disclosed The Company’s financial assets and liabilities as of June 30, 2023, June 30, 2022 and December 31, 2022 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value June 30, June 30, Fair Value Measurements Using 2023 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 104,598 $ 104,598 $ 104,598 $ — $ — Accounts receivable, net 63,337 63,337 — — 63,337 Pawn loans 426,165 426,165 — — 426,165 Finance receivables, net (1) 110,555 225,195 — — 225,195 $ 704,655 $ 819,295 $ 104,598 $ — $ 714,697 Financial liabilities: Revolving unsecured credit facility $ 376,000 $ 376,000 $ — $ 376,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 941,000 — 941,000 — $ 1,426,000 $ 1,317,000 $ — $ 1,317,000 $ — (1) Finance receivables, gross as of June 30, 2023 was $216.0 million. See Note 5. Carrying Value Estimated Fair Value June 30, June 30, Fair Value Measurements Using 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 110,414 $ 110,414 $ 110,414 $ — $ — Accounts receivable, net 55,924 55,924 — — 55,924 Pawn loans 385,708 385,708 — — 385,708 Finance receivables, net (1) 125,619 196,210 — — 196,210 $ 677,665 $ 748,256 $ 110,414 $ — $ 637,842 Financial liabilities: Revolving unsecured credit facilities $ 274,000 $ 274,000 $ — $ 274,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 900,000 — 900,000 — $ 1,324,000 $ 1,174,000 $ — $ 1,174,000 $ — (1) Finance receivables, gross as of June 30, 2022 was $190.3 million. See Note 5. Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 117,330 $ 117,330 $ 117,330 $ — $ — Accounts receivable, net 57,792 57,792 — — 57,792 Pawn loans 390,617 390,617 — — 390,617 Finance receivables, net (1) 103,494 201,895 — — 201,895 $ 669,233 $ 767,634 $ 117,330 $ — $ 650,304 Financial liabilities: Revolving unsecured credit facilities $ 339,000 $ 339,000 $ — $ 339,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 932,000 — 932,000 — $ 1,389,000 $ 1,271,000 $ — $ 1,271,000 $ — (1) Finance receivables, gross as of December 31, 2022 were $196.0 million. See Note 5. 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 accounts receivable, net approximate fair value. Finance receivables are measured at amortized cost, net of an allowance for loan losses on the consolidated balance sheets. In estimating fair value for finance receivables, the Company utilized a discounted cash flow methodology. The Company used various unobservable inputs reflecting its own assumptions, such as contractual future principal and interest cash flows, future charge-off rates and discount rates (which consider current interest rates and are adjusted for credit risk, among other factors). The carrying value of the unsecured credit facilities approximates fair value as of June 30, 2023, June 30, 2022 and December 31, 2022. The fair value of the unsecured credit facilities is estimated based on market values for debt issuances with similar characteristics or rates currently available for debt with similar terms. In addition, the unsecured credit facilities have a variable interest rate based on the prevailing secured overnight financing rate (“SOFR”) or the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) and reprice with any changes in SOFR or TIIE. The fair value of the senior unsecured notes is estimated based on quoted prices in markets that are not active. |
Finance Receivables, Net
Finance Receivables, Net | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Finance Receivables, Net | Finance Receivables, Net Finance receivables, net, which include retail installment sales agreements and bank-originated installment loans, consist of the following (in thousands): As of June 30, As of 2023 2022 2022 Finance receivables, gross $ 216,037 $ 190,256 $ 195,987 Fair value premium on non-purchase credit deteriorated (”PCD”) finance receivables (1) — 13,003 — Merchant partner discounts and premiums, net (7,812) (1,002) (3,517) Unearned origination fees (4,616) (2,702) (4,143) Finance receivables, amortized cost 203,609 199,555 188,327 Less allowance for loan losses (93,054) (73,936) (84,833) Finance receivables, net $ 110,555 $ 125,619 $ 103,494 (1) Represents the difference between the initial fair value and the unpaid principal balance as of the date of the AFF acquisition, which is recognized through interest income on an effective yield basis over the lives of the related non-PCD finance receivables. The following table details the changes in the allowance for loan losses (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Balance at beginning of period $ 88,610 $ 72,332 $ 84,833 $ 75,574 Provision for loan losses 28,190 26,800 57,475 51,497 Charge-offs (25,274) (26,579) (52,391) (55,987) Recoveries 1,528 1,383 3,137 2,852 Balance at end of period $ 93,054 $ 73,936 $ 93,054 $ 73,936 The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of June 30, 2023 and 2022, by origination year (in thousands): Origination Year 2023 2022 2021 Total As of June 30, 2023 Delinquency: 1 to 30 days past due $ 10,963 $ 6,371 $ 580 $ 17,914 31 to 60 days past due 5,973 4,141 410 10,524 61 to 89 days past due (1) 4,200 4,000 401 8,601 Total past due finance receivables 21,136 14,512 1,391 37,039 Current finance receivables 110,611 51,481 4,478 166,570 Finance receivables, amortized cost $ 131,747 $ 65,993 $ 5,869 $ 203,609 Origination Year 2022 2021 2020 Total As of June 30, 2022 Delinquency: 1 to 30 days past due $ 8,919 $ 7,849 $ 478 $ 17,246 31 to 60 days past due 4,467 5,275 286 10,028 61 to 89 days past due (1) 3,014 4,837 293 8,144 Total past due finance receivables before fair value adjustments 16,400 17,961 1,057 35,418 Current finance receivables before fair value adjustments 89,414 57,852 3,868 151,134 Finance receivables before fair value adjustments $ 105,814 $ 75,813 $ 4,925 186,552 Fair value premium on non-PCD finance receivables 13,003 Finance receivables, amortized cost $ 199,555 (1) The Company charges off finance receivables when a receivable is 90 days or more contractually past due. The following table details the gross charge-offs of finance receivables for the six months ended June 30, 2023, by origination year (in thousands): Origination Year 2023 2022 2021 Total Finance receivables gross charge-offs: Gross charge-offs during the six months ended June 30, 2023 $ 6,110 $ 39,770 $ 6,511 $ 52,391 |
Leased Merchandise, Net
Leased Merchandise, Net | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Leased Merchandise, Net | Leased Merchandise, Net Leased merchandise, net consists of the following (in thousands): As of June 30, As of 2023 2022 2022 Leased merchandise (1) $ 369,547 $ 255,559 $ 335,038 Processing fees (4,313) (2,882) (4,124) Merchant partner discounts and premiums, net 2,735 1,862 2,456 Accumulated depreciation (113,852) (66,514) (100,879) Leased merchandise, before allowance for lease losses 254,117 188,025 232,491 Less allowance for lease losses (110,972) (69,101) (79,189) Leased merchandise, net $ 143,145 $ 118,924 $ 153,302 (1) Acquired leased merchandise in the AFF acquisition was recorded at fair value. The following table details the changes in the allowance for lease losses (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Balance at beginning of period $ 93,149 $ 40,364 $ 79,189 $ 5,442 Provision for lease losses 52,873 38,035 101,938 77,855 Charge-offs (36,723) (10,301) (73,501) (16,321) Recoveries 1,673 1,003 3,346 2,125 Balance at end of period $ 110,972 $ 69,101 $ 110,972 $ 69,101 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2023 | |
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 on the senior unsecured notes (in thousands): As of June 30, As of 2023 2022 2022 Revolving unsecured credit facility, maturing 2027 (1) $ 376,000 $ 274,000 $ 339,000 Senior unsecured notes: 4.625% senior unsecured notes due 2028 (2) 493,981 492,981 493,475 5.625% senior unsecured notes due 2030 (3) 542,679 541,780 542,223 Total senior unsecured notes 1,036,660 1,034,761 1,035,698 Total long-term debt $ 1,412,660 $ 1,308,761 $ 1,374,698 (1) Debt issuance costs related to the Company’s revolving unsecured credit facilities are included in other assets in the accompanying consolidated balance sheets. (2) As of June 30, 2023, June 30, 2022 and December 31, 2022, deferred debt issuance costs of $6.0 million, $7.0 million and $6.5 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2028 in the accompanying consolidated balance sheets. (3) As of June 30, 2023, June 30, 2022 and December 31, 2022, deferred debt issuance costs of $7.3 million, $8.2 million and $7.8 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2030 in the accompanying consolidated balance sheets. Revolving Unsecured Credit Facility As of June 30, 2023, the Company maintained an unsecured line of credit with a group of U.S.-based commercial lenders (the “Credit Facility”) in the amount of $590.0 million. The Credit Facility matures on August 30, 2027. As of June 30, 2023, the Company had $376.0 million in outstanding borrowings and $2.9 million in outstanding letters of credit under the Credit Facility, leaving $211.1 million available for future borrowings, subject to certain financial covenants. The Credit Facility bears interest at the Company’s option of either (i) the prevailing SOFR (with interest periods of 1, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5% and a fixed SOFR adjustment of 0.1% or (ii) the prevailing prime or base rate plus a fixed spread of 1.5%. The agreement has an interest rate floor of 0%. Additionally, the Company is required to pay an annual commitment fee of 0.325% on the average daily unused portion of the Credit Facility commitment. The weighted-average interest rate on amounts outstanding under the Credit Facility at June 30, 2023 was 7.70% based on 1-month SOFR. Under the terms of the Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The 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 covenants of the Credit Facility as of June 30, 2023. During the six months ended June 30, 2023, the Company received net proceeds of $37.0 million from borrowings pursuant to the Credit Facility. Senior Unsecured Notes Due 2028 On August 26, 2020, the Company issued $500.0 million of 4.625% senior unsecured notes due on September 1, 2028 (the “2028 Notes”), all of which are currently outstanding. Interest on the 2028 Notes is payable semi-annually in arrears on March 1 and September 1. The 2028 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 Credit Facility. The 2028 Notes will permit the Company 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 is less than 2.75 to 1. The consolidated total debt ratio is defined generally in the indenture governing the 2028 Notes 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. As of June 30, 2023, the Company’s consolidated total debt ratio was 2.7 to 1. While the 2028 Notes generally limit the Company’s ability to make restricted payments if the consolidated total debt ratio is greater than 2.75 to 1, restricted payments are allowable within certain permitted baskets, which currently provide the Company with continued flexibility to make restricted payments when the Company’s consolidated total debt ratio is greater than 2.75 to 1. Senior Unsecured Notes Due 2030 On December 13, 2021, the Company issued $550.0 million of 5.625% senior unsecured notes due on January 1, 2030 (the “2030 Notes”), all of which are currently outstanding. Interest on the 2030 Notes is payable semi-annually in arrears on January 1 and July 1. The 2030 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 Credit Facility. The 2030 Notes will permit the Company 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 is less than 3.0 to 1. The consolidated total debt ratio is defined generally in the indenture governing the 2030 Notes 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. As of June 30, 2023, the Company’s consolidated total debt ratio was 2.7 to 1. While the 2030 Notes generally limit the Company’s ability to make restricted payments if the consolidated total debt ratio is greater than 3.0 to 1, restricted payments are allowable within certain permitted baskets, which currently provides the Company with continued flexibility to make restricted payments when the Company’s consolidated total debt ratio is greater than 3.0 to 1. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company, in the ordinary course of business, is a party to various legal and regulatory proceedings and other general claims. Although no assurances can be given, in management’s opinion, such outstanding proceedings are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company believes it has meritorious defenses to all of the claims described below, and intends to vigorously defend itself against such claims. However, legal and regulatory proceedings involve an inherent level of uncertainty and no assurances can be given regarding the ultimate outcome of any such matters or whether an adverse outcome would not have a material adverse impact on the Company’s financial position, results of operations, or cash flows. At this stage, the Company is unable to determine whether a future loss will be incurred for any of its outstanding legal and regulatory proceedings or estimate a range of loss with respect to such proceeding, if any, and accordingly, no material amounts have been accrued in the Company’s financial statements for legal and regulatory proceedings. On January 14, 2022, plaintiff Genesee County Employees’ Retirement System filed a putative shareholder securities class action lawsuit (the “Litigation”) in the United States District Court for the Northern District of Texas against the Company and certain of its current officers styled Genesee County Employees’ Retirement System v. FirstCash Holdings, Inc., et al., Civil Action No. 4:22-CV-00033-P (N.D. Tex.). The complaint alleges that the defendants made materially false and/or misleading statements that caused losses to investors, including that the Company failed to disclose in public statements that the Company engaged in widespread and systemic violations of the Military Lending Act (“MLA”). On March 31, 2023, the Court granted the Company’s Motion to Dismiss with prejudice and entered Final Judgment in its favor. The Company was named as a nominal defendant and certain of the Company’s current and former directors and officers were named as defendants in a shareholder derivative lawsuit filed on July 19, 2022 in the United States District Court for the Northern District of Texas and styled Treppel Family Trust U/A 08/18/18 Lawrence A. Treppel and Geri D. Treppel for the Benefit of Geri D. Treppel and Larry A. Treppel, Derivatively on Behalf of FirstCash Holdings, Inc., v. Rick L. Wessel, et. al, Case 4:22-cv-00623-P (N.D. Tex). The complaint made similar allegations as the Litigation and alleged a single count for breach of fiduciary duty against the named derivative defendants. On June 20, 2023, the Plaintiff filed a stipulation voluntarily dismissing the case without prejudice and the Court closed the case the same day. On November 12, 2021, the CFPB initiated a civil action in the United States District Court for the Northern District of Texas against FirstCash, Inc. and Cash America West, Inc., two of the Company’s subsidiaries, alleging violations of the MLA in connection with pawn transactions. The CFPB also alleges that these same alleged violations of the MLA constitute breaches of a 2013 CFPB consent order entered into by its predecessor company that, among other things, allegedly required the company and its successors to cease and desist from further MLA violations. The CFPB is seeking an injunction, redress for affected borrowers and a civil monetary penalty. On March 28, 2022, the CFPB filed a motion to strike certain affirmative defenses of the Company. The Company responded by filing a motion for partial summary judgment. On October 24, 2022, the Company filed a motion to dismiss the lawsuit on the basis that the funding structure of the CFPB is unconstitutional. This motion to dismiss follows the recent decision in another case by the Fifth Circuit Court of Appeals which found that the CFPB is unconstitutionally structured. The Fifth Circuit’s decisions govern the law applied in the jurisdiction in which the CFPB action is pending against the Company. In light of the CFPB's stated intent to seek Supreme Court review of that decision, the parties stipulated to a stay of the action against the Company, which the Court entered on November 4, 2022. The Supreme Court decided to review the Fifth Circuit's decision, which has been set for oral argument on October 3, 2023. Following that argument, the Supreme Court will issue a decision some time before its term ends in June 2024. The stay of the CFPB’s action against the Company will remain in effect until that Supreme Court appeal is resolved. Gold Forward Sales Contracts As of June 30, 2023, the Company had contractual commitments to deliver a total of 66,600 gold ounces during the months of July 2023 through March 2025 at a weighted-average price of $2,013 per ounce. The ounces required to be delivered over this time period are within historical scrap gold volumes and the Company expects to have the required gold ounces to meet the commitments as they come due. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company organizes its operations into three reportable segments as follows: • U.S. pawn • Latin America pawn • Retail POS payment solutions (AFF) Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, (gain) loss on foreign exchange, merger and acquisition expenses, gain on revaluation of contingent acquisition consideration, and other expenses (income), net, are presented on a consolidated basis and are not allocated between the U.S. pawn segment, Latin America pawn segment or retail POS payment solutions segment. Intersegment transactions relate to the Company offering AFF’s LTO payment solution as a payment option in its U.S. pawn stores and are eliminated to arrive at consolidated totals. The following tables present reportable segment information for the three and six month periods ended June 30, 2023 and 2022 as well as segment earning assets (in thousands): Three Months Ended June 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 196,043 $ 126,581 $ — $ (1,760) (1) $ 320,864 Pawn loan fees 98,973 55,205 — — 154,178 Leased merchandise income — — 189,805 — 189,805 Interest and fees on finance receivables — — 58,192 — 58,192 Wholesale scrap jewelry sales 17,652 9,931 — — 27,583 Total revenue 312,668 191,717 247,997 (1,760) 750,622 Cost of revenue: Cost of retail merchandise sold 111,539 81,660 — (928) (1) 192,271 Depreciation of leased merchandise — — 103,062 (541) (1) 102,521 Provision for lease losses — — 53,048 (175) (1) 52,873 Provision for loan losses — — 28,190 — 28,190 Cost of wholesale scrap jewelry sold 14,225 7,655 — — 21,880 Total cost of revenue 125,764 89,315 184,300 (1,644) 397,735 Net revenue (loss) 186,904 102,402 63,697 (116) 352,887 Expenses and other income: Operating expenses 108,159 59,507 37,115 — 204,781 Administrative expenses — — — 40,355 40,355 Depreciation and amortization 6,330 5,203 751 14,766 27,050 Interest expense — — — 21,071 21,071 Interest income — — — (408) (408) Gain on foreign exchange — — — (817) (817) Merger and acquisition expenses — — — 252 252 Other expenses (income), net — — — 79 79 Total expenses and other income 114,489 64,710 37,866 75,298 292,363 Income (loss) before income taxes $ 72,415 $ 37,692 $ 25,831 $ (75,414) $ 60,524 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution as a payment option in its U.S. pawn stores. Six Months Ended June 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 406,724 $ 245,518 $ — $ (3,463) (1) $ 648,779 Pawn loan fees 201,657 104,081 — — 305,738 Leased merchandise income — — 373,243 — 373,243 Interest and fees on finance receivables — — 112,834 — 112,834 Wholesale scrap jewelry sales 43,968 28,799 — — 72,767 Total revenue 652,349 378,398 486,077 (3,463) 1,513,361 Cost of revenue: Cost of retail merchandise sold 233,468 159,623 — (1,819) (1) 391,272 Depreciation of leased merchandise — — 205,234 (1,108) (1) 204,126 Provision for lease losses — — 102,214 (276) (1) 101,938 Provision for loan losses — — 57,475 — 57,475 Cost of wholesale scrap jewelry sold 35,307 22,300 — — 57,607 Total cost of revenue 268,775 181,923 364,923 (3,203) 812,418 Net revenue (loss) 383,574 196,475 121,154 (260) 700,943 Expenses and other income: Operating expenses 217,940 115,263 70,639 — 403,842 Administrative expenses — — — 79,372 79,372 Depreciation and amortization 12,200 10,648 1,487 29,826 54,161 Interest expense — — — 41,968 41,968 Interest income — — — (925) (925) Gain on foreign exchange — — — (1,619) (1,619) Merger and acquisition expenses — — — 283 283 Other expenses (income), net — — — 124 124 Total expenses and other income 230,140 125,911 72,126 149,029 577,206 Income (loss) before income taxes $ 153,434 $ 70,564 $ 49,028 $ (149,289) $ 123,737 As of June 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Earning assets: Pawn loans $ 291,447 $ 134,718 $ — $ — $ 426,165 Finance receivables, net — — 110,555 — 110,555 Inventories 180,410 86,732 — — 267,142 Leased merchandise, net — — 144,501 (1,356) (1) 143,145 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution as a payment option in its U.S. pawn stores. Three Months Ended June 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 195,369 $ 102,888 $ — $ — $ 298,257 Pawn loan fees 87,743 46,324 — — 134,067 Leased merchandise income — — 147,700 — 147,700 Interest and fees on finance receivables — — 43,744 — 43,744 Wholesale scrap jewelry sales 15,673 8,175 — — 23,848 Total revenue 298,785 157,387 191,444 — 647,616 Cost of revenue: Cost of retail merchandise sold 114,390 64,919 — — 179,309 Depreciation of leased merchandise — — 82,605 — 82,605 Provision for lease losses — — 38,035 — 38,035 Provision for loan losses — — 26,800 — 26,800 Cost of wholesale scrap jewelry sold 13,282 6,613 — — 19,895 Total cost of revenue 127,672 71,532 147,440 — 346,644 Net revenue 171,113 85,855 44,004 — 300,972 Expenses and other income: Operating expenses 101,242 48,053 31,260 — 180,555 Administrative expenses — — — 37,068 37,068 Depreciation and amortization 5,868 4,553 699 14,862 25,982 Interest expense — — — 16,246 16,246 Interest income — — — (222) (222) Loss on foreign exchange — — — 27 27 Merger and acquisition expenses — — — 314 314 Gain on revaluation of contingent acquisition consideration — — — (65,559) (65,559) Other expenses (income), net — — — (3,062) (3,062) Total expenses and other income 107,110 52,606 31,959 (326) 191,349 Income before income taxes $ 64,003 $ 33,249 $ 12,045 $ 326 $ 109,623 Six Months Ended June 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 400,311 $ 200,765 $ — $ — $ 601,076 Pawn loan fees 178,082 87,804 — — 265,886 Leased merchandise income — — 297,647 — 297,647 Interest and fees on finance receivables — — 86,193 — 86,193 Wholesale scrap jewelry sales 32,197 24,456 — — 56,653 Total revenue 610,590 313,025 383,840 — 1,307,455 Cost of revenue: Cost of retail merchandise sold 234,108 127,415 — — 361,523 Depreciation of leased merchandise — — 176,311 — 176,311 Provision for lease losses — — 77,855 — 77,855 Provision for loan losses — — 51,497 — 51,497 Cost of wholesale scrap jewelry sold 27,812 20,298 — — 48,110 Total cost of revenue 261,920 147,713 305,663 — 715,296 Net revenue 348,670 165,312 78,177 — 592,159 Expenses and other income: Operating expenses 200,064 93,595 60,192 — 353,851 Administrative expenses — — — 73,931 73,931 Depreciation and amortization 11,455 8,954 1,381 29,734 51,524 Interest expense — — — 32,467 32,467 Interest income — — — (898) (898) Gain on foreign exchange — — — (453) (453) Merger and acquisition expenses — — — 979 979 Gain on revaluation of contingent acquisition consideration — — — (62,989) (62,989) Other expenses (income), net — — — (2,885) (2,885) Total expenses and other income 211,519 102,549 61,573 69,886 445,527 Income (loss) before income taxes $ 137,151 $ 62,763 $ 16,604 $ (69,886) $ 146,632 As of June 30, 2022 U.S. Latin America Retail POS Consolidated Earning assets: Pawn loans $ 271,255 $ 114,453 $ — $ 385,708 Finance receivables, net — — 125,619 125,619 Inventories 185,921 74,607 — 260,528 Leased merchandise, net — — 118,924 118,924 |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated balance sheet as of December 31, 2022, which is derived from audited consolidated financial statements, and the unaudited consolidated financial statements, including the notes thereto, includes the accounts of FirstCash Holdings, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions, and the results of operations for the acquisitions have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include certain information and disclosures required for comprehensive financial statements. These interim period financial statements should be read in conjunction with the Company’s audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 6, 2023. The consolidated financial statements as of June 30, 2023 and 2022, and for the three month and six month periods ended June 30, 2023 and 2022, 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 June 30, 2023 are not necessarily indicative of the results that may be expected for the full year. The Company has pawn operations in Latin America, where in Mexico, Guatemala and Colombia, the functional currency is the Mexican peso, Guatemalan quetzal and Colombian peso. 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 respective period. The Company also has pawn operations in El Salvador, where the reporting and functional currency is the U.S. dollar. |
Use of Estimates | The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and related revenue and expenses, and the disclosure of gain and loss contingencies at the date of the financial statements. Such estimates and assumptions are subject to a number of risks and uncertainties, which may cause actual results to differ materially from the Company’s estimates. |
Recent Accounting Pronouncements | In March 2022, the Financial Accounting Standards Board issued ASU No 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for entities. Except for expanded disclosures to the Company’s vintage disclosures, ASU 2022-02 did not have a material effect on the Company’s current financial position, results of operations or financial statements. See Note 5. |
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. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Numerator: Net income $ 45,180 $ 86,108 $ 92,568 $ 114,113 Denominator: Weighted-average common shares for calculating basic earnings per share 45,455 47,425 45,799 47,831 Effect of dilutive securities: Restricted stock unit awards 223 74 194 66 Weighted-average common shares for calculating diluted earnings per share 45,678 47,499 45,993 47,897 Earnings per share: Basic $ 0.99 $ 1.82 $ 2.02 $ 2.39 Diluted $ 0.99 $ 1.81 $ 2.01 $ 2.38 |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The following table details the components of lease expense included in operating expenses in the consolidated statements of income during the three and six months ended June 30, 2023 and 2022 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Operating lease expense $ 34,475 $ 32,074 $ 68,015 $ 63,602 Variable lease expense (1) 4,561 4,229 9,033 8,403 Total operating lease expense $ 39,036 $ 36,303 $ 77,048 $ 72,005 (1) Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term. The following table details supplemental cash flow information related to operating leases for the six months ended June 30, 2023 and 2022 (in thousands): Six Months Ended June 30, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 60,660 $ 58,343 Leased assets obtained in exchange for new operating lease liabilities $ 35,392 $ 41,991 |
Schedule of Maturity of Lease Liabilities | The following table details the maturity of lease liabilities for all operating leases as of June 30, 2023 (in thousands): Six months ending December 31, 2023 $ 59,618 2024 101,384 2025 72,721 2026 49,375 2027 25,547 Thereafter 28,781 Total $ 337,426 Less amount of lease payments representing interest (44,076) Total present value of lease payments $ 293,350 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company did not have any financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2023. The Company’s financial assets and liabilities as of June 30, 2022 and December 31, 2022 that are measured at fair value on a recurring basis are as follows (in thousands): Estimated Fair Value Fair Value Measurements Using Level 1 Level 2 Level 3 Financial liabilities (1) : Contingent consideration as of June 30, 2022 $ — $ — $ 46,560 Contingent consideration as of December 31, 2022 — — — |
Schedule of Fair Value, Changes in Assets and Liabilities Measured on Recurring Basis Level 3 Fair Value Measurement | The changes in financial assets and liabilities that are measured and recorded at fair value on a recurring basis using Level 3 fair value measurements for the three and six months ended June 30, 2023 and June 30, 2022 are as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Contingent consideration at beginning of the period $ — $ 112,119 $ — $ 109,549 Change in fair value (1) — (65,559) — (62,989) Contingent consideration at end of the period $ — $ 46,560 $ — $ 46,560 (1) The Company recognized a gain of $65.6 million and $63.0 million during the three and six months ended June 30, 2022, respectively, as a result of the change in fair value of the contingent consideration, which is included in gain on revaluation of contingent acquisition consideration in the accompanying consolidated statements of income. |
Schedule of Fair Value by Balance Sheet Grouping | The Company’s financial assets and liabilities as of June 30, 2023, June 30, 2022 and December 31, 2022 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value June 30, June 30, Fair Value Measurements Using 2023 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 104,598 $ 104,598 $ 104,598 $ — $ — Accounts receivable, net 63,337 63,337 — — 63,337 Pawn loans 426,165 426,165 — — 426,165 Finance receivables, net (1) 110,555 225,195 — — 225,195 $ 704,655 $ 819,295 $ 104,598 $ — $ 714,697 Financial liabilities: Revolving unsecured credit facility $ 376,000 $ 376,000 $ — $ 376,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 941,000 — 941,000 — $ 1,426,000 $ 1,317,000 $ — $ 1,317,000 $ — (1) Finance receivables, gross as of June 30, 2023 was $216.0 million. See Note 5. Carrying Value Estimated Fair Value June 30, June 30, Fair Value Measurements Using 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 110,414 $ 110,414 $ 110,414 $ — $ — Accounts receivable, net 55,924 55,924 — — 55,924 Pawn loans 385,708 385,708 — — 385,708 Finance receivables, net (1) 125,619 196,210 — — 196,210 $ 677,665 $ 748,256 $ 110,414 $ — $ 637,842 Financial liabilities: Revolving unsecured credit facilities $ 274,000 $ 274,000 $ — $ 274,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 900,000 — 900,000 — $ 1,324,000 $ 1,174,000 $ — $ 1,174,000 $ — (1) Finance receivables, gross as of June 30, 2022 was $190.3 million. See Note 5. Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 117,330 $ 117,330 $ 117,330 $ — $ — Accounts receivable, net 57,792 57,792 — — 57,792 Pawn loans 390,617 390,617 — — 390,617 Finance receivables, net (1) 103,494 201,895 — — 201,895 $ 669,233 $ 767,634 $ 117,330 $ — $ 650,304 Financial liabilities: Revolving unsecured credit facilities $ 339,000 $ 339,000 $ — $ 339,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 932,000 — 932,000 — $ 1,389,000 $ 1,271,000 $ — $ 1,271,000 $ — |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Finance Receivables, Net | Finance receivables, net, which include retail installment sales agreements and bank-originated installment loans, consist of the following (in thousands): As of June 30, As of 2023 2022 2022 Finance receivables, gross $ 216,037 $ 190,256 $ 195,987 Fair value premium on non-purchase credit deteriorated (”PCD”) finance receivables (1) — 13,003 — Merchant partner discounts and premiums, net (7,812) (1,002) (3,517) Unearned origination fees (4,616) (2,702) (4,143) Finance receivables, amortized cost 203,609 199,555 188,327 Less allowance for loan losses (93,054) (73,936) (84,833) Finance receivables, net $ 110,555 $ 125,619 $ 103,494 (1) Represents the difference between the initial fair value and the unpaid principal balance as of the date of the AFF acquisition, which is recognized through interest income on an effective yield basis over the lives of the related non-PCD finance receivables. |
Schedule of Allowance for Credit Losses | The following table details the changes in the allowance for loan losses (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Balance at beginning of period $ 88,610 $ 72,332 $ 84,833 $ 75,574 Provision for loan losses 28,190 26,800 57,475 51,497 Charge-offs (25,274) (26,579) (52,391) (55,987) Recoveries 1,528 1,383 3,137 2,852 Balance at end of period $ 93,054 $ 73,936 $ 93,054 $ 73,936 |
Financing Receivable, Past Due | The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of June 30, 2023 and 2022, by origination year (in thousands): Origination Year 2023 2022 2021 Total As of June 30, 2023 Delinquency: 1 to 30 days past due $ 10,963 $ 6,371 $ 580 $ 17,914 31 to 60 days past due 5,973 4,141 410 10,524 61 to 89 days past due (1) 4,200 4,000 401 8,601 Total past due finance receivables 21,136 14,512 1,391 37,039 Current finance receivables 110,611 51,481 4,478 166,570 Finance receivables, amortized cost $ 131,747 $ 65,993 $ 5,869 $ 203,609 Origination Year 2022 2021 2020 Total As of June 30, 2022 Delinquency: 1 to 30 days past due $ 8,919 $ 7,849 $ 478 $ 17,246 31 to 60 days past due 4,467 5,275 286 10,028 61 to 89 days past due (1) 3,014 4,837 293 8,144 Total past due finance receivables before fair value adjustments 16,400 17,961 1,057 35,418 Current finance receivables before fair value adjustments 89,414 57,852 3,868 151,134 Finance receivables before fair value adjustments $ 105,814 $ 75,813 $ 4,925 186,552 Fair value premium on non-PCD finance receivables 13,003 Finance receivables, amortized cost $ 199,555 (1) The Company charges off finance receivables when a receivable is 90 days or more contractually past due. |
Finance Receivable, Charge-offs to allowance for credit losses (Table Text Block) | The following table details the gross charge-offs of finance receivables for the six months ended June 30, 2023, by origination year (in thousands): Origination Year 2023 2022 2021 Total Finance receivables gross charge-offs: Gross charge-offs during the six months ended June 30, 2023 $ 6,110 $ 39,770 $ 6,511 $ 52,391 |
Leased Merchandise, Net (Tables
Leased Merchandise, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Leased Merchandise, Net | Leased merchandise, net consists of the following (in thousands): As of June 30, As of 2023 2022 2022 Leased merchandise (1) $ 369,547 $ 255,559 $ 335,038 Processing fees (4,313) (2,882) (4,124) Merchant partner discounts and premiums, net 2,735 1,862 2,456 Accumulated depreciation (113,852) (66,514) (100,879) Leased merchandise, before allowance for lease losses 254,117 188,025 232,491 Less allowance for lease losses (110,972) (69,101) (79,189) Leased merchandise, net $ 143,145 $ 118,924 $ 153,302 |
Leased Merchandise, Allowance for Credit Loss | The following table details the changes in the allowance for lease losses (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Balance at beginning of period $ 93,149 $ 40,364 $ 79,189 $ 5,442 Provision for lease losses 52,873 38,035 101,938 77,855 Charge-offs (36,723) (10,301) (73,501) (16,321) Recoveries 1,673 1,003 3,346 2,125 Balance at end of period $ 110,972 $ 69,101 $ 110,972 $ 69,101 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 on the senior unsecured notes (in thousands): As of June 30, As of 2023 2022 2022 Revolving unsecured credit facility, maturing 2027 (1) $ 376,000 $ 274,000 $ 339,000 Senior unsecured notes: 4.625% senior unsecured notes due 2028 (2) 493,981 492,981 493,475 5.625% senior unsecured notes due 2030 (3) 542,679 541,780 542,223 Total senior unsecured notes 1,036,660 1,034,761 1,035,698 Total long-term debt $ 1,412,660 $ 1,308,761 $ 1,374,698 (1) Debt issuance costs related to the Company’s revolving unsecured credit facilities are included in other assets in the accompanying consolidated balance sheets. (2) As of June 30, 2023, June 30, 2022 and December 31, 2022, deferred debt issuance costs of $6.0 million, $7.0 million and $6.5 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2028 in the accompanying consolidated balance sheets. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables present reportable segment information for the three and six month periods ended June 30, 2023 and 2022 as well as segment earning assets (in thousands): Three Months Ended June 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 196,043 $ 126,581 $ — $ (1,760) (1) $ 320,864 Pawn loan fees 98,973 55,205 — — 154,178 Leased merchandise income — — 189,805 — 189,805 Interest and fees on finance receivables — — 58,192 — 58,192 Wholesale scrap jewelry sales 17,652 9,931 — — 27,583 Total revenue 312,668 191,717 247,997 (1,760) 750,622 Cost of revenue: Cost of retail merchandise sold 111,539 81,660 — (928) (1) 192,271 Depreciation of leased merchandise — — 103,062 (541) (1) 102,521 Provision for lease losses — — 53,048 (175) (1) 52,873 Provision for loan losses — — 28,190 — 28,190 Cost of wholesale scrap jewelry sold 14,225 7,655 — — 21,880 Total cost of revenue 125,764 89,315 184,300 (1,644) 397,735 Net revenue (loss) 186,904 102,402 63,697 (116) 352,887 Expenses and other income: Operating expenses 108,159 59,507 37,115 — 204,781 Administrative expenses — — — 40,355 40,355 Depreciation and amortization 6,330 5,203 751 14,766 27,050 Interest expense — — — 21,071 21,071 Interest income — — — (408) (408) Gain on foreign exchange — — — (817) (817) Merger and acquisition expenses — — — 252 252 Other expenses (income), net — — — 79 79 Total expenses and other income 114,489 64,710 37,866 75,298 292,363 Income (loss) before income taxes $ 72,415 $ 37,692 $ 25,831 $ (75,414) $ 60,524 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution as a payment option in its U.S. pawn stores. Six Months Ended June 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 406,724 $ 245,518 $ — $ (3,463) (1) $ 648,779 Pawn loan fees 201,657 104,081 — — 305,738 Leased merchandise income — — 373,243 — 373,243 Interest and fees on finance receivables — — 112,834 — 112,834 Wholesale scrap jewelry sales 43,968 28,799 — — 72,767 Total revenue 652,349 378,398 486,077 (3,463) 1,513,361 Cost of revenue: Cost of retail merchandise sold 233,468 159,623 — (1,819) (1) 391,272 Depreciation of leased merchandise — — 205,234 (1,108) (1) 204,126 Provision for lease losses — — 102,214 (276) (1) 101,938 Provision for loan losses — — 57,475 — 57,475 Cost of wholesale scrap jewelry sold 35,307 22,300 — — 57,607 Total cost of revenue 268,775 181,923 364,923 (3,203) 812,418 Net revenue (loss) 383,574 196,475 121,154 (260) 700,943 Expenses and other income: Operating expenses 217,940 115,263 70,639 — 403,842 Administrative expenses — — — 79,372 79,372 Depreciation and amortization 12,200 10,648 1,487 29,826 54,161 Interest expense — — — 41,968 41,968 Interest income — — — (925) (925) Gain on foreign exchange — — — (1,619) (1,619) Merger and acquisition expenses — — — 283 283 Other expenses (income), net — — — 124 124 Total expenses and other income 230,140 125,911 72,126 149,029 577,206 Income (loss) before income taxes $ 153,434 $ 70,564 $ 49,028 $ (149,289) $ 123,737 As of June 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Earning assets: Pawn loans $ 291,447 $ 134,718 $ — $ — $ 426,165 Finance receivables, net — — 110,555 — 110,555 Inventories 180,410 86,732 — — 267,142 Leased merchandise, net — — 144,501 (1,356) (1) 143,145 (1) Represents the elimination of intersegment transactions related to the Company offering AFF’s LTO payment solution as a payment option in its U.S. pawn stores. Three Months Ended June 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 195,369 $ 102,888 $ — $ — $ 298,257 Pawn loan fees 87,743 46,324 — — 134,067 Leased merchandise income — — 147,700 — 147,700 Interest and fees on finance receivables — — 43,744 — 43,744 Wholesale scrap jewelry sales 15,673 8,175 — — 23,848 Total revenue 298,785 157,387 191,444 — 647,616 Cost of revenue: Cost of retail merchandise sold 114,390 64,919 — — 179,309 Depreciation of leased merchandise — — 82,605 — 82,605 Provision for lease losses — — 38,035 — 38,035 Provision for loan losses — — 26,800 — 26,800 Cost of wholesale scrap jewelry sold 13,282 6,613 — — 19,895 Total cost of revenue 127,672 71,532 147,440 — 346,644 Net revenue 171,113 85,855 44,004 — 300,972 Expenses and other income: Operating expenses 101,242 48,053 31,260 — 180,555 Administrative expenses — — — 37,068 37,068 Depreciation and amortization 5,868 4,553 699 14,862 25,982 Interest expense — — — 16,246 16,246 Interest income — — — (222) (222) Loss on foreign exchange — — — 27 27 Merger and acquisition expenses — — — 314 314 Gain on revaluation of contingent acquisition consideration — — — (65,559) (65,559) Other expenses (income), net — — — (3,062) (3,062) Total expenses and other income 107,110 52,606 31,959 (326) 191,349 Income before income taxes $ 64,003 $ 33,249 $ 12,045 $ 326 $ 109,623 Six Months Ended June 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 400,311 $ 200,765 $ — $ — $ 601,076 Pawn loan fees 178,082 87,804 — — 265,886 Leased merchandise income — — 297,647 — 297,647 Interest and fees on finance receivables — — 86,193 — 86,193 Wholesale scrap jewelry sales 32,197 24,456 — — 56,653 Total revenue 610,590 313,025 383,840 — 1,307,455 Cost of revenue: Cost of retail merchandise sold 234,108 127,415 — — 361,523 Depreciation of leased merchandise — — 176,311 — 176,311 Provision for lease losses — — 77,855 — 77,855 Provision for loan losses — — 51,497 — 51,497 Cost of wholesale scrap jewelry sold 27,812 20,298 — — 48,110 Total cost of revenue 261,920 147,713 305,663 — 715,296 Net revenue 348,670 165,312 78,177 — 592,159 Expenses and other income: Operating expenses 200,064 93,595 60,192 — 353,851 Administrative expenses — — — 73,931 73,931 Depreciation and amortization 11,455 8,954 1,381 29,734 51,524 Interest expense — — — 32,467 32,467 Interest income — — — (898) (898) Gain on foreign exchange — — — (453) (453) Merger and acquisition expenses — — — 979 979 Gain on revaluation of contingent acquisition consideration — — — (62,989) (62,989) Other expenses (income), net — — — (2,885) (2,885) Total expenses and other income 211,519 102,549 61,573 69,886 445,527 Income (loss) before income taxes $ 137,151 $ 62,763 $ 16,604 $ (69,886) $ 146,632 As of June 30, 2022 U.S. Latin America Retail POS Consolidated Earning assets: Pawn loans $ 271,255 $ 114,453 $ — $ 385,708 Finance receivables, net — — 125,619 125,619 Inventories 185,921 74,607 — 260,528 Leased merchandise, net — — 118,924 118,924 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||||
Net income | $ 45,180 | $ 47,388 | $ 86,108 | $ 28,005 | $ 92,568 | $ 114,113 |
Denominator: | ||||||
Weighted-average common shares for calculating basic earnings per share (shares) | 45,455 | 47,425 | 45,799 | 47,831 | ||
Stock options and nonvested stock awards (shares) | 223 | 74 | 194 | 66 | ||
Weighted-average common shares for calculating diluted earnings per share (shares) | 45,678 | 47,499 | 45,993 | 47,897 | ||
Earnings per share: | ||||||
Basic (USD per share) | $ 0.99 | $ 1.82 | $ 2.02 | $ 2.39 | ||
Diluted (USD per share) | $ 0.99 | $ 1.81 | $ 2.01 | $ 2.38 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining lease term | 3 years 10 months 24 days | 4 years 1 month 6 days | 3 years 10 months 24 days | 4 years 1 month 6 days |
Weighted average discount rate (as a percent) | 7.30% | 6% | 7.30% | 6% |
Foreign currency transaction gain, before tax | $ 1.1 | $ 0.1 | $ 2.3 | $ 0.7 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
General term of leased facilities | 3 years | 3 years | ||
Leased facilities renewal term | 3 years | 3 years | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
General term of leased facilities | 5 years | 5 years | ||
Leased facilities renewal term | 5 years | 5 years |
Operating Leases - Lease Cost (
Operating Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 34,475 | $ 32,074 | $ 68,015 | $ 63,602 |
Variable lease expense | 4,561 | 4,229 | 9,033 | 8,403 |
Total operating lease expense | $ 39,036 | $ 36,303 | $ 77,048 | $ 72,005 |
Operating Leases - Lease Maturi
Operating Leases - Lease Maturities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
Six months ending December 31, 2023 | $ 59,618 |
45657 | 101,384 |
46022 | 72,721 |
46387 | 49,375 |
46752 | 25,547 |
Thereafter | 28,781 |
Total | 337,426 |
Less amount of lease payments representing interest | (44,076) |
Total present value of lease payments | $ 293,350 |
Operating Leases - Supplemental
Operating Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 60,660 | $ 58,343 |
Leased assets obtained in exchange for new operating lease liabilities | $ 35,392 | $ 41,991 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent AFF acquisition consideration | $ 0 | $ 0 | $ 0 | $ 46,560 | $ 112,119 | $ 109,549 |
AFF | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 50,000 | |||||
Estimated Fair Value | Level 1 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent AFF acquisition consideration | 0 | 0 | ||||
Estimated Fair Value | Level 2 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent AFF acquisition consideration | 0 | 0 | ||||
Estimated Fair Value | Level 3 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent AFF acquisition consideration | $ 0 | $ 46,560 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Contingent consideration at beginning of the period | $ 0 | $ 112,119 | $ 0 | $ 109,549 |
Gain on revaluation of contingent acquisition consideration | 0 | (65,559) | 0 | (62,989) |
Contingent consideration at end of the period | $ 0 | $ 46,560 | $ 0 | $ 46,560 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Financial Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Finance receivables, gross | $ 216,037 | $ 195,987 | $ 190,256 |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 104,598 | 117,330 | 110,414 |
Accounts receivable, net | 63,337 | 57,792 | 55,924 |
Total assets | 704,655 | 669,233 | 677,665 |
Total liabilities | 1,426,000 | 1,389,000 | 1,324,000 |
Carrying Value | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 376,000 | 339,000 | 274,000 |
Carrying Value | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 1,050,000 | 1,050,000 | 1,050,000 |
Carrying Value | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 426,165 | 390,617 | 385,708 |
Carrying Value | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 110,555 | 103,494 | 125,619 |
Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 104,598 | 117,330 | 110,414 |
Accounts receivable, net | 63,337 | 57,792 | 55,924 |
Total assets | 819,295 | 767,634 | 748,256 |
Total liabilities | 1,317,000 | 1,271,000 | 1,174,000 |
Estimated Fair Value | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 376,000 | 339,000 | 274,000 |
Estimated Fair Value | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 941,000 | 932,000 | 900,000 |
Estimated Fair Value | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 426,165 | 390,617 | 385,708 |
Estimated Fair Value | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 225,195 | 201,895 | 196,210 |
Estimated Fair Value | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 104,598 | 117,330 | 110,414 |
Accounts receivable, net | 0 | 0 | 0 |
Total assets | 104,598 | 117,330 | 110,414 |
Total liabilities | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 0 | 0 | 0 |
Estimated Fair Value | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Total liabilities | 1,317,000 | 1,271,000 | 1,174,000 |
Estimated Fair Value | Level 2 | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 376,000 | 339,000 | 274,000 |
Estimated Fair Value | Level 2 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 941,000 | 932,000 | 900,000 |
Estimated Fair Value | Level 2 | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 0 | 0 | 0 |
Estimated Fair Value | Level 2 | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Accounts receivable, net | 63,337 | 57,792 | 55,924 |
Total assets | 714,697 | 650,304 | 637,842 |
Total liabilities | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 426,165 | 390,617 | 385,708 |
Estimated Fair Value | Level 3 | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | $ 225,195 | $ 201,895 | $ 196,210 |
Finance Receivables, Net (Detai
Finance Receivables, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | |||||||
Finance receivables, gross | $ 190,256 | $ 216,037 | $ 190,256 | $ 195,987 | |||
Fair value premium on non-PCD finance receivables | $ 0 | 13,003 | 0 | 13,003 | |||
Merchant partner discounts and premiums, net | (3,517) | (7,812) | (1,002) | ||||
Unearned origination fees | (4,143) | (4,616) | (2,702) | ||||
Finance receivables, amortized cost | 199,555 | 203,609 | 199,555 | 188,327 | |||
Less allowance for loan losses | $ (88,610) | (73,936) | (93,054) | (73,936) | (84,833) | $ (72,332) | $ (75,574) |
Finance receivables, net | $ 125,619 | $ 110,555 | $ 125,619 | $ 103,494 |
Finance Receivables, Net - Roll
Finance Receivables, Net - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 88,610 | $ 72,332 | $ 84,833 | $ 75,574 |
Provision for loan losses | 28,190 | 26,800 | 57,475 | 51,497 |
Charge-offs | (25,274) | (26,579) | (52,391) | (55,987) |
Recoveries | 1,528 | 1,383 | 3,137 | 2,852 |
Balance at end of period | $ 93,054 | $ 73,936 | $ 93,054 | $ 73,936 |
Finance Receivables, Net - Cred
Finance Receivables, Net - Credit Quality Indicators of Amortized Cost of Finance Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||||
Finance receivable, before allowance for credit loss, premium and discount | $ 186,552 | $ 186,552 | |||
Fair value premium on non-PCD finance receivables | $ 0 | 13,003 | $ 0 | 13,003 | |
Finance receivables, amortized cost | $ 199,555 | $ 203,609 | $ 199,555 | $ 188,327 |
Finance Receivables, Net - Agin
Finance Receivables, Net - Aging of Finance Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2021 | |
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | $ 186,552 | $ 186,552 | ||||
Fair value premium on non-PCD finance receivables | $ 0 | 13,003 | $ 0 | 13,003 | ||
Finance receivables, amortized cost | 199,555 | 203,609 | 199,555 | $ 188,327 | ||
Year 2022 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 105,814 | 105,814 | ||||
Finance receivables, amortized cost | 65,993 | 65,993 | ||||
Year 2021 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 75,813 | 75,813 | ||||
Finance receivables, amortized cost | $ 5,869 | |||||
Year 2020 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 4,925 | 4,925 | ||||
Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 131,747 | |||||
Total past due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 35,418 | 35,418 | ||||
Finance receivables, amortized cost | 37,039 | |||||
Total past due | Year 2022 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 16,400 | 16,400 | ||||
Finance receivables, amortized cost | 14,512 | 14,512 | ||||
Total past due | Year 2021 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 17,961 | 17,961 | ||||
Finance receivables, amortized cost | 1,391 | |||||
Total past due | Year 2020 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 1,057 | 1,057 | ||||
Total past due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 21,136 | |||||
Financial Asset, 1 to 29 Days Past Due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 17,246 | 17,246 | ||||
Finance receivables, amortized cost | 17,914 | |||||
Financial Asset, 1 to 29 Days Past Due | Year 2022 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 8,919 | 8,919 | ||||
Finance receivables, amortized cost | 6,371 | 6,371 | ||||
Financial Asset, 1 to 29 Days Past Due | Year 2021 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 7,849 | 7,849 | ||||
Finance receivables, amortized cost | 580 | |||||
Financial Asset, 1 to 29 Days Past Due | Year 2020 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 478 | 478 | ||||
Financial Asset, 1 to 29 Days Past Due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 10,963 | |||||
Financial Asset, 30 to 59 Days Past Due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 10,028 | 10,028 | ||||
Finance receivables, amortized cost | 10,524 | |||||
Financial Asset, 30 to 59 Days Past Due | Year 2022 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 4,467 | 4,467 | ||||
Finance receivables, amortized cost | 4,141 | 4,141 | ||||
Financial Asset, 30 to 59 Days Past Due | Year 2021 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 5,275 | 5,275 | ||||
Finance receivables, amortized cost | 410 | |||||
Financial Asset, 30 to 59 Days Past Due | Year 2020 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 286 | 286 | ||||
Financial Asset, 30 to 59 Days Past Due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 5,973 | |||||
Financial Asset, 60 to 89 Days Past Due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 8,144 | 8,144 | ||||
Finance receivables, amortized cost | 8,601 | |||||
Financial Asset, 60 to 89 Days Past Due | Year 2022 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 3,014 | 3,014 | ||||
Finance receivables, amortized cost | 4,000 | 4,000 | ||||
Financial Asset, 60 to 89 Days Past Due | Year 2021 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 4,837 | 4,837 | ||||
Finance receivables, amortized cost | 401 | |||||
Financial Asset, 60 to 89 Days Past Due | Year 2020 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 293 | 293 | ||||
Financial Asset, 60 to 89 Days Past Due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 4,200 | |||||
Financial Asset, Not Past Due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 151,134 | 151,134 | ||||
Finance receivables, amortized cost | 166,570 | |||||
Financial Asset, Not Past Due | Year 2022 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 89,414 | 89,414 | ||||
Finance receivables, amortized cost | 51,481 | 51,481 | ||||
Financial Asset, Not Past Due | Year 2021 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 57,852 | 57,852 | ||||
Finance receivables, amortized cost | $ 4,478 | |||||
Financial Asset, Not Past Due | Year 2020 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | $ 3,868 | $ 3,868 | ||||
Financial Asset, Not Past Due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | $ 110,611 |
Finance Receivables, Charge - o
Finance Receivables, Charge - offs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Finance Receivable Charge-offs to Allowance for credit losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff | $ 25,274 | $ 26,579 | $ 52,391 | $ 55,987 |
Year 2023 | ||||
Schedule of Finance Receivable Charge-offs to Allowance for credit losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 6,110 | |||
Year 2022 | ||||
Schedule of Finance Receivable Charge-offs to Allowance for credit losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff | 39,770 | |||
Year 2021 | ||||
Schedule of Finance Receivable Charge-offs to Allowance for credit losses [Line Items] | ||||
Financing Receivable, Allowance for Credit Loss, Writeoff | $ 6,511 |
Leased Merchandise, Net (Detail
Leased Merchandise, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | |||||||
Leased merchandise | $ 255,559 | $ 369,547 | $ 335,038 | ||||
Processing fees | (2,882) | (4,313) | $ (4,124) | ||||
Merchant partner discounts and premiums, net | 1,862 | 2,735 | 2,456 | ||||
Accumulated depreciation | (66,514) | (113,852) | (100,879) | ||||
Leased merchandise, before allowance for lease losses | 188,025 | 254,117 | 232,491 | ||||
Leased Merchandise, Allowance for Credit loss | (69,101) | (110,972) | $ (93,149) | (79,189) | $ (40,364) | $ (5,442) | |
Leased merchandise, net | $ 118,924 | $ 143,145 | $ 153,302 |
Leased Merchandise, Net - (Deta
Leased Merchandise, Net - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leased Merchandise, Allowance for Credit loss Roll Forward [Roll Forward] | ||||
Balance at beginning of period | $ 93,149 | $ 40,364 | $ 79,189 | $ 5,442 |
Provision for lease losses | 52,873 | 38,035 | 101,938 | 77,855 |
Charge-offs | (36,723) | (10,301) | (73,501) | (16,321) |
Recoveries | 1,673 | 1,003 | 3,346 | 2,125 |
Balance at end of period | $ 110,972 | $ 69,101 | $ 110,972 | $ 69,101 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 13, 2021 | Aug. 26, 2020 |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 1,412,660 | $ 1,374,698 | $ 1,308,761 | ||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 1,036,660 | 1,035,698 | 1,034,761 | ||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 376,000 | 339,000 | 274,000 | ||
4.625% senior unsecured notes due 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 4.625% | 4.625% | |||
Total long-term debt | $ 493,981 | 493,475 | 492,981 | ||
Deferred finance costs, net | $ 6,000 | 6,500 | 7,000 | ||
5.625% Senior Unsecured Notes due 2030 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 5.625% | 5.625% | |||
Total long-term debt | $ 542,679 | 542,223 | 541,780 | ||
Deferred finance costs, net | $ 7,300 | $ 7,800 | $ 8,200 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 6 Months Ended | ||||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 13, 2021 | Aug. 26, 2020 | |
Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 2.50% | ||||
Basis Spread on Variable Rate, Adjustment (as a percent) | 0.10% | ||||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 590,000,000 | ||||
Amount outstanding | 376,000,000 | ||||
Letters of credit outstanding | 2,900,000 | ||||
Remaining borrowing capacity | $ 211,100,000 | ||||
Commitment fee (as a percent) | 0.325% | ||||
Interest rate at end of period (as a percent) | 7.70% | ||||
Net proceeds | $ 37,000,000 | ||||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 0% | ||||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | Prime Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.50% | ||||
4.625% senior unsecured notes due 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 4.625% | 4.625% | |||
Face amount | $ 500,000,000 | ||||
Debt ratio threshold | 2.75 | ||||
Deferred finance costs, net | $ 6,000,000 | $ 6,500,000 | $ 7,000,000 | ||
5.625% Senior Unsecured Notes due 2030 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 5.625% | 5.625% | |||
Face amount | $ 550,000,000 | ||||
Debt ratio threshold | 3 | ||||
Debt ratio | 2.7 | ||||
Deferred finance costs, net | $ 7,300,000 | $ 7,800,000 | $ 8,200,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Gold, Ounces - Forward Contracts | Jun. 30, 2023 oz $ / oz |
Guarantor Obligations [Line Items] | |
Investment Contract Weight | oz | 66,600 |
Derivative, Average Forward Price | $ / oz | 2,013 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule of Revenues from External Customers [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Revenue: | |||||
Retail merchandise sales | $ 320,864 | $ 298,257 | $ 648,779 | $ 601,076 | |
Pawn loan fees | 154,178 | 134,067 | 305,738 | 265,886 | |
Leased merchandise income | 189,805 | 147,700 | 373,243 | 297,647 | |
Interest and fees on finance receivables | 58,192 | 43,744 | 112,834 | 86,193 | |
Wholesale scrap jewelry sales | 27,583 | 23,848 | 72,767 | 56,653 | |
Total revenue | 750,622 | 647,616 | 1,513,361 | 1,307,455 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 192,271 | 179,309 | 391,272 | 361,523 | |
Depreciation of leased merchandise | 102,521 | 82,605 | 204,126 | 176,311 | |
Provision for lease losses | 52,873 | 38,035 | 101,938 | 77,855 | |
Provision for loan losses | 28,190 | 26,800 | 57,475 | 51,497 | |
Cost of wholesale scrap jewelry sold | 21,880 | 19,895 | 57,607 | 48,110 | |
Total cost of revenue | 397,735 | 346,644 | 812,418 | 715,296 | |
Net revenue (loss) | 352,887 | 300,972 | 700,943 | 592,159 | |
Expenses and other income: | |||||
Operating expenses | 204,781 | 180,555 | 403,842 | 353,851 | |
Administrative expenses | 40,355 | 37,068 | 79,372 | 73,931 | |
Depreciation and amortization | 27,050 | 25,982 | 54,161 | 51,524 | |
Interest expense | 21,071 | 16,246 | 41,968 | 32,467 | |
Interest income | (408) | (222) | (925) | (898) | |
Merger and acquisition expenses | 252 | 314 | 283 | 979 | |
(Gain) loss on foreign exchange | (817) | 27 | (1,619) | (453) | |
Gain on revaluation of contingent acquisition consideration | 0 | (65,559) | 0 | (62,989) | |
Other expenses (income), net | 79 | (3,062) | 124 | (2,885) | |
Total expenses and other income | 292,363 | 191,349 | 577,206 | 445,527 | |
Income (loss) before income taxes | 60,524 | 109,623 | 123,737 | 146,632 | |
Pawn loans | 426,165 | 385,708 | 426,165 | 385,708 | $ 390,617 |
Finance receivables, net | 110,555 | 125,619 | 110,555 | 125,619 | 103,494 |
Inventories | 267,142 | 260,528 | 267,142 | 260,528 | 288,339 |
Leased merchandise, net | 143,145 | 118,924 | 143,145 | 118,924 | $ 153,302 |
Corporate/ Eliminations | |||||
Revenue: | |||||
Interest and fees on finance receivables | 0 | 0 | |||
Cost of revenue: | |||||
Provision for loan losses | 0 | 0 | |||
Corporate/ Eliminations | |||||
Revenue: | |||||
Retail merchandise sales | (1,760) | 0 | (3,463) | 0 | |
Pawn loan fees | 0 | 0 | 0 | 0 | |
Leased merchandise income | 0 | 0 | 0 | 0 | |
Interest and fees on finance receivables | 0 | 0 | |||
Wholesale scrap jewelry sales | 0 | 0 | 0 | 0 | |
Total revenue | (1,760) | 0 | (3,463) | 0 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | (928) | 0 | (1,819) | 0 | |
Depreciation of leased merchandise | (541) | 0 | (1,108) | 0 | |
Provision for lease losses | (175) | 0 | (276) | 0 | |
Provision for loan losses | 0 | 0 | |||
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 | 0 | |
Total cost of revenue | (1,644) | 0 | (3,203) | 0 | |
Net revenue (loss) | (116) | 0 | (260) | 0 | |
Expenses and other income: | |||||
Operating expenses | 0 | 0 | 0 | 0 | |
Administrative expenses | 40,355 | 37,068 | 79,372 | 73,931 | |
Depreciation and amortization | 14,766 | 14,862 | 29,826 | 29,734 | |
Interest expense | 21,071 | 16,246 | 41,968 | 32,467 | |
Interest income | (408) | (222) | (925) | (898) | |
Merger and acquisition expenses | 252 | 314 | 283 | 979 | |
(Gain) loss on foreign exchange | (817) | 27 | (1,619) | (453) | |
Gain on revaluation of contingent acquisition consideration | (65,559) | (62,989) | |||
Other expenses (income), net | 79 | (3,062) | 124 | (2,885) | |
Total expenses and other income | 75,298 | (326) | 149,029 | 69,886 | |
Income (loss) before income taxes | (75,414) | 326 | (149,289) | (69,886) | |
Pawn loans | 0 | 0 | |||
Finance receivables, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Leased merchandise, net | (1,356) | (1,356) | |||
Operating Segments | UNITED STATES | Retail POS Payment Solutions | |||||
Revenue: | |||||
Retail merchandise sales | 0 | 0 | 0 | 0 | |
Pawn loan fees | 0 | 0 | 0 | 0 | |
Leased merchandise income | 189,805 | 147,700 | 373,243 | 297,647 | |
Interest and fees on finance receivables | 58,192 | 43,744 | 112,834 | 86,193 | |
Wholesale scrap jewelry sales | 0 | 0 | 0 | 0 | |
Total revenue | 247,997 | 191,444 | 486,077 | 383,840 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 0 | 0 | 0 | 0 | |
Depreciation of leased merchandise | 103,062 | 82,605 | 205,234 | 176,311 | |
Provision for lease losses | 53,048 | 38,035 | 102,214 | 77,855 | |
Provision for loan losses | 28,190 | 26,800 | 57,475 | 51,497 | |
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 | 0 | |
Total cost of revenue | 184,300 | 147,440 | 364,923 | 305,663 | |
Net revenue (loss) | 63,697 | 44,004 | 121,154 | 78,177 | |
Expenses and other income: | |||||
Operating expenses | 37,115 | 31,260 | 70,639 | 60,192 | |
Administrative expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 751 | 699 | 1,487 | 1,381 | |
Interest expense | 0 | 0 | 0 | 0 | |
Interest income | 0 | 0 | 0 | 0 | |
Merger and acquisition expenses | 0 | 0 | 0 | 0 | |
(Gain) loss on foreign exchange | 0 | 0 | 0 | 0 | |
Gain on revaluation of contingent acquisition consideration | 0 | 0 | |||
Other expenses (income), net | 0 | 0 | 0 | 0 | |
Total expenses and other income | 37,866 | 31,959 | 72,126 | 61,573 | |
Income (loss) before income taxes | 25,831 | 12,045 | 49,028 | 16,604 | |
Pawn loans | 0 | 0 | 0 | 0 | |
Finance receivables, net | 110,555 | 125,619 | 110,555 | 125,619 | |
Inventories | 0 | 0 | 0 | 0 | |
Leased merchandise, net | 144,501 | 118,924 | 144,501 | 118,924 | |
Operating Segments | UNITED STATES | Pawn Segment | |||||
Revenue: | |||||
Retail merchandise sales | 196,043 | 195,369 | 406,724 | 400,311 | |
Pawn loan fees | 98,973 | 87,743 | 201,657 | 178,082 | |
Leased merchandise income | 0 | 0 | 0 | 0 | |
Interest and fees on finance receivables | 0 | 0 | 0 | 0 | |
Wholesale scrap jewelry sales | 17,652 | 15,673 | 43,968 | 32,197 | |
Total revenue | 312,668 | 298,785 | 652,349 | 610,590 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 111,539 | 114,390 | 233,468 | 234,108 | |
Depreciation of leased merchandise | 0 | 0 | 0 | 0 | |
Provision for lease losses | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Cost of wholesale scrap jewelry sold | 14,225 | 13,282 | 35,307 | 27,812 | |
Total cost of revenue | 125,764 | 127,672 | 268,775 | 261,920 | |
Net revenue (loss) | 186,904 | 171,113 | 383,574 | 348,670 | |
Expenses and other income: | |||||
Operating expenses | 108,159 | 101,242 | 217,940 | 200,064 | |
Administrative expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 6,330 | 5,868 | 12,200 | 11,455 | |
Interest expense | 0 | 0 | 0 | 0 | |
Interest income | 0 | 0 | 0 | 0 | |
Merger and acquisition expenses | 0 | 0 | 0 | 0 | |
(Gain) loss on foreign exchange | 0 | 0 | 0 | 0 | |
Gain on revaluation of contingent acquisition consideration | 0 | 0 | |||
Other expenses (income), net | 0 | 0 | 0 | 0 | |
Total expenses and other income | 114,489 | 107,110 | 230,140 | 211,519 | |
Income (loss) before income taxes | 72,415 | 64,003 | 153,434 | 137,151 | |
Pawn loans | 291,447 | 271,255 | 291,447 | 271,255 | |
Finance receivables, net | 0 | 0 | 0 | 0 | |
Inventories | 180,410 | 185,921 | 180,410 | 185,921 | |
Leased merchandise, net | 0 | 0 | 0 | 0 | |
Operating Segments | Latin America | Pawn Segment | |||||
Revenue: | |||||
Retail merchandise sales | 126,581 | 102,888 | 245,518 | 200,765 | |
Pawn loan fees | 55,205 | 46,324 | 104,081 | 87,804 | |
Leased merchandise income | 0 | 0 | 0 | 0 | |
Interest and fees on finance receivables | 0 | 0 | 0 | 0 | |
Wholesale scrap jewelry sales | 9,931 | 8,175 | 28,799 | 24,456 | |
Total revenue | 191,717 | 157,387 | 378,398 | 313,025 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 81,660 | 64,919 | 159,623 | 127,415 | |
Depreciation of leased merchandise | 0 | 0 | 0 | 0 | |
Provision for lease losses | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Cost of wholesale scrap jewelry sold | 7,655 | 6,613 | 22,300 | 20,298 | |
Total cost of revenue | 89,315 | 71,532 | 181,923 | 147,713 | |
Net revenue (loss) | 102,402 | 85,855 | 196,475 | 165,312 | |
Expenses and other income: | |||||
Operating expenses | 59,507 | 48,053 | 115,263 | 93,595 | |
Administrative expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 5,203 | 4,553 | 10,648 | 8,954 | |
Interest expense | 0 | 0 | 0 | 0 | |
Interest income | 0 | 0 | 0 | 0 | |
Merger and acquisition expenses | 0 | 0 | 0 | 0 | |
(Gain) loss on foreign exchange | 0 | 0 | 0 | 0 | |
Gain on revaluation of contingent acquisition consideration | 0 | 0 | |||
Other expenses (income), net | 0 | 0 | 0 | 0 | |
Total expenses and other income | 64,710 | 52,606 | 125,911 | 102,549 | |
Income (loss) before income taxes | 37,692 | 33,249 | 70,564 | 62,763 | |
Pawn loans | 134,718 | 114,453 | 134,718 | 114,453 | |
Finance receivables, net | 0 | 0 | 0 | 0 | |
Inventories | 86,732 | 74,607 | 86,732 | 74,607 | |
Leased merchandise, net | $ 0 | $ 0 | $ 0 | $ 0 |