Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 25, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 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 $.01 per share | |
Trading Symbol | FCFS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,107,912 | |
Entity Central Index Key | 0000840489 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Current assets | |||
Cash and cash equivalents | $ 86,547 | $ 117,330 | $ 100,620 |
Accounts receivable, net | 72,336 | 57,792 | 58,435 |
Pawn loans | 483,785 | 390,617 | 404,227 |
Finance receivables, net | 113,307 | 103,494 | 111,945 |
Inventories | 314,382 | 288,339 | 295,428 |
Leased merchandise, net | 143,169 | 153,302 | 132,097 |
Prepaid expenses and other current assets | 21,114 | 19,788 | 38,322 |
Total current assets | 1,234,640 | 1,130,662 | 1,141,074 |
Property and equipment, net | 604,673 | 538,681 | 535,584 |
Operating lease right of use asset | 312,097 | 307,009 | 299,052 |
Goodwill | 1,713,354 | 1,581,381 | 1,523,699 |
Intangible assets, net | 291,690 | 330,338 | 345,512 |
Other assets | 10,057 | 9,415 | 9,133 |
Deferred tax assets, net | 8,052 | 7,381 | 6,906 |
Total assets | 4,174,563 | 3,904,867 | 3,860,960 |
Current liabilities | |||
Accounts payable and accrued liabilities | 146,873 | 139,460 | 175,964 |
Customer deposits and prepayments | 71,752 | 63,125 | 63,066 |
Lease liability, current | 98,745 | 92,944 | 91,115 |
Total current liabilities | 317,370 | 295,529 | 330,145 |
Revolving unsecured credit facilities | 560,229 | 339,000 | 338,000 |
Senior unsecured notes | 1,037,151 | 1,035,698 | 1,035,226 |
Deferred tax liabilities, net | 139,713 | 151,759 | 155,263 |
Lease liability, non-current | 202,516 | 203,115 | 197,171 |
Total liabilities | 2,256,979 | 2,025,101 | 2,055,805 |
Stockholders’ equity: | |||
Common stock | 573 | 573 | 573 |
Additional paid-in capital | 1,737,497 | 1,734,528 | 1,732,500 |
Retained earnings | 1,164,228 | 1,060,603 | 995,669 |
Accumulated other comprehensive loss | (64,521) | (106,573) | (127,366) |
Common stock held in treasury, at cost | (920,193) | (809,365) | (796,221) |
Total stockholders’ equity | 1,917,584 | 1,879,766 | 1,805,155 |
Total liabilities and stockholders’ equity | $ 4,174,563 | $ 3,904,867 | $ 3,860,960 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Retail merchandise sales | $ 335,081 | $ 300,899 | $ 983,860 | $ 901,975 |
Pawn loan fees | 174,560 | 145,727 | 480,298 | 411,613 |
Leased merchandise income | 189,382 | 158,089 | 562,625 | 455,736 |
Interest and fees on finance receivables | 61,413 | 48,846 | 174,247 | 135,039 |
Wholesale scrap jewelry sales | 25,865 | 18,582 | 98,632 | 75,235 |
Total revenue | 786,301 | 672,143 | 2,299,662 | 1,979,598 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 199,719 | 182,199 | 590,991 | 543,722 |
Depreciation of leased merchandise | 103,698 | 86,519 | 307,824 | 262,830 |
Provision for lease losses | 39,736 | 31,916 | 141,674 | 109,771 |
Provision for loan losses | 33,096 | 31,956 | 90,571 | 83,453 |
Cost of wholesale scrap jewelry sold | 21,405 | 16,261 | 79,012 | 64,371 |
Total cost of revenue | 397,654 | 348,851 | 1,210,072 | 1,064,147 |
Net revenue (loss) | 388,647 | 323,292 | 1,089,590 | 915,451 |
Expenses and other income: | ||||
Operating expenses | 211,524 | 185,547 | 615,366 | 539,398 |
Administrative expenses | 45,056 | 36,951 | 124,428 | 110,882 |
Depreciation and amortization | 27,365 | 25,971 | 81,526 | 77,495 |
Interest expense | 24,689 | 18,282 | 66,657 | 50,749 |
Interest income | (328) | (206) | (1,253) | (1,104) |
(Gain) loss on foreign exchange | (286) | 255 | (1,905) | (198) |
Merger and acquisition expenses | 3,387 | 733 | 3,670 | 1,712 |
Gain on revaluation of contingent acquisition consideration | 0 | (19,800) | 0 | (82,789) |
Other expenses (income), net | (384) | 164 | (260) | (2,721) |
Total expenses and other income | 311,023 | 247,897 | 888,229 | 693,424 |
Income (loss) before income taxes | 77,624 | 75,395 | 201,361 | 222,027 |
Provision for income taxes | 20,480 | 16,079 | 51,649 | 48,598 |
Net income | $ 57,144 | $ 59,316 | $ 149,712 | $ 173,429 |
Earnings per share: | ||||
Basic (USD per share) | $ 1.27 | $ 1.26 | $ 3.29 | $ 3.65 |
Diluted (USD per share) | $ 1.26 | $ 1.26 | $ 3.27 | $ 3.64 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 57,144 | $ 59,316 | $ 149,712 | $ 173,429 |
Other comprehensive income: | ||||
Currency translation adjustment | (15,263) | (7,372) | 42,052 | 3,933 |
Comprehensive income | $ 41,881 | $ 51,944 | $ 191,764 | $ 177,362 |
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 | 173,429 | |||||
Balance at end of period (shares) at Sep. 30, 2022 | 57,322 | 10,861 | ||||
Balance at end of period at Sep. 30, 2022 | 1,805,155 | $ 573 | 1,732,500 | 995,669 | (127,366) | $ (796,221) |
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 2,875 | 2,875 | ||||
Net income | 59,316 | 59,316 | ||||
Cash dividends | (15,658) | (15,658) | ||||
Currency translation adjustment | (7,372) | (7,372) | ||||
Purchases of treasury stock (shares) | 686 | |||||
Purchases of treasury stock, including excise tax | (52,004) | $ (52,004) | ||||
Balance at end of period (shares) at Sep. 30, 2022 | 57,322 | 10,861 | ||||
Balance at end of period at Sep. 30, 2022 | 1,805,155 | $ 573 | 1,732,500 | 995,669 | (127,366) | $ (796,221) |
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) |
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 | 149,712 | |||||
Balance at end of period (shares) at Sep. 30, 2023 | 57,322 | 12,214 | ||||
Balance at end of period at Sep. 30, 2023 | 1,917,584 | $ 573 | 1,737,497 | 1,164,228 | (64,521) | $ (920,193) |
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 3,375 | 3,375 | ||||
Net income | 57,144 | 57,144 | ||||
Cash dividends | (15,495) | (15,495) | ||||
Currency translation adjustment | (15,263) | (15,263) | ||||
Purchases of treasury stock (shares) | 95 | |||||
Purchases of treasury stock, including excise tax | (8,896) | $ (8,896) | ||||
Balance at end of period (shares) at Sep. 30, 2023 | 57,322 | 12,214 | ||||
Balance at end of period at Sep. 30, 2023 | $ 1,917,584 | $ 573 | $ 1,737,497 | $ 1,164,228 | $ (64,521) | $ (920,193) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | 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) | $ 0.35 | $ 0.33 | $ 0.33 | $ 0.33 | $ 0.30 | $ 0.30 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | ||
Cash flow from operating activities: | |||
Net income | $ 149,712 | $ 173,429 | |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Depreciation of leased merchandise | 307,824 | 262,830 | |
Provision for lease losses | 141,674 | 109,771 | |
Provision for loan losses | 90,571 | 83,453 | |
Share-based compensation expense | 10,125 | 8,825 | |
Depreciation and amortization expense | 81,526 | 77,495 | |
Amortization of debt issuance costs | 2,067 | 2,208 | |
Net amortization of premiums, discounts and unearned origination fees on finance receivables | (12,390) | 35,257 | |
Gain on revaluation of contingent acquisition consideration | 0 | (82,789) | |
Impairments and dispositions of certain other assets | 346 | 482 | |
Deferred income taxes, net | (12,000) | 46,142 | |
Changes in operating assets and liabilities, net of business combinations: | |||
Accounts receivable, net | (9,998) | (2,953) | |
Inventories purchased directly from customers, wholesalers or manufacturers | (939) | (11,017) | |
Leased merchandise, net | (439,365) | (360,755) | |
Prepaid expenses and other assets | (427) | (2,144) | |
Accounts payable, accrued liabilities and other liabilities | (7,594) | 7,256 | |
Income taxes | 15,905 | (21,692) | |
Net cash flow provided by operating activities | 317,037 | 325,798 | |
Cash flow from investing activities: | |||
Pawn loans, net | [1] | (59,426) | (74,707) |
Finance receivables, net | (87,994) | (49,634) | |
Purchases of furniture, fixtures, equipment and improvements | (46,723) | (29,630) | |
Purchases of store real property | (46,677) | (77,689) | |
Acquisitions of pawn stores, net of cash acquired | (168,353) | (7,072) | |
Net cash flow used in investing activities | (409,173) | (238,732) | |
Cash flow from financing activities: | |||
Borrowings from unsecured credit facilities | 545,835 | 196,000 | |
Repayments of unsecured credit facilities | (322,967) | (117,000) | |
Debt issuance costs paid | (90) | (1,745) | |
Purchases of treasury stock | (115,521) | (140,391) | |
Payment of withholding taxes on net share settlements of restricted stock unit awards | (2,463) | 0 | |
Dividends paid | (46,087) | (44,439) | |
Net cash flow provided by (used in) financing activities | 58,707 | (107,575) | |
Effect of exchange rates on cash | 2,646 | 1,083 | |
Change in cash and cash equivalents | (30,783) | (19,426) | |
Cash and cash equivalents at beginning of the period | 117,330 | 120,046 | |
Cash and cash equivalents at end of the period | $ 86,547 | $ 100,620 | |
[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 | 9 Months Ended |
Sep. 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 September 30, 2023 and 2022, and for the three month and nine month periods ended September 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 September 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 6. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Numerator: Net income $ 57,144 $ 59,316 $ 149,712 $ 173,429 Denominator: Weighted-average common shares for calculating basic earnings per share 45,114 46,902 45,531 47,518 Effect of dilutive securities: Restricted stock unit awards 260 120 216 84 Weighted-average common shares for calculating diluted earnings per share 45,374 47,022 45,747 47,602 Earnings per share: Basic $ 1.27 $ 1.26 $ 3.29 $ 3.65 Diluted $ 1.26 $ 1.26 $ 3.27 $ 3.64 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Consistent with the Company’s strategy to continue its expansion of pawn stores in strategic markets, during the nine months ended September 30, 2023, the Company acquired 83 pawn stores in the U.S. in five separate transactions and acquired two pawn licenses that were used to open two new pawn stores in the state of Nevada. The aggregate purchase price for these acquisitions totaled $168.1 million, net of cash acquired and subject to future post-closing adjustments. The aggregate purchase price was composed of $167.6 million in cash paid during the nine months ended September 30, 2023, which included the repayment and extinguishment of $59.7 million of debt of the acquired businesses at closing and remaining short-term amounts payable to certain of the sellers of approximately $0.5 million. The purchase price of each of the 2023 acquisitions was allocated to assets acquired and liabilities assumed based upon the estimated fair values at the date of acquisition. The excess purchase price over the estimated fair value of the net assets acquired has been recorded as goodwill. The goodwill arising from these acquisitions consists largely of the synergies and economies of scale expected from combining the operations of the Company and the pawn stores acquired. These acquisitions were not material individually or in the aggregate to the Company’s consolidated financial statements. The estimated fair value of the assets acquired and liabilities assumed are preliminary, as the Company is gathering information to finalize the valuation of these assets and liabilities. The preliminary allocation of the aggregate purchase prices for these individually immaterial acquisitions during the nine months ended September 30, 2023 is as follows (in thousands): Pawn loans $ 26,026 Accounts receivable 3,219 Inventories 15,336 Prepaid expenses and other current assets 996 Property and equipment 2,906 Goodwill (1) 119,299 Intangible assets 4,330 Other non-current assets 280 Current liabilities (4,265) Aggregate purchase price $ 168,127 (1) Substantially all of the goodwill is expected to be deductible for U.S. income tax purposes. |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 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 September 30, 2023 and 2022 was 7.7% and 6.3%, 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 loss of $0.6 million and $0.4 million during the three months ended September 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 nine months ended September 30, 2023 and 2022, the Company recognized a foreign currency gain of $1.7 million and $0.4 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 nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating lease expense $ 36,687 $ 31,988 $ 104,702 $ 95,590 Variable lease expense (1) 4,744 4,216 13,777 12,619 Total operating lease expense $ 41,431 $ 36,204 $ 118,479 $ 108,209 (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 September 30, 2023 (in thousands): Three months ending December 31, 2023 $ 31,578 2024 111,094 2025 82,037 2026 58,384 2027 32,329 Thereafter 33,064 Total $ 348,486 Less amount of lease payments representing interest (47,225) Total present value of lease payments $ 301,261 The following table details supplemental cash flow information related to operating leases for the nine months ended September 30, 2023 and 2022 (in thousands): Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 92,233 $ 87,040 Leased assets obtained in exchange for new operating lease liabilities $ 72,663 $ 66,442 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 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 September 30, 2023. The Company’s financial assets and liabilities as of September 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 September 30, 2022 $ — $ — $ 26,760 Contingent consideration as of December 31, 2022 — — — (1) Under the American First Finance (“AFF”) purchase agreement, the seller parties had the right to receive up to $50.0 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 $50.0 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 September 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 nine months ended September 30, 2023 and September 30, 2022 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Contingent consideration at beginning of the period $ — $ 46,560 $ — $ 109,549 Change in fair value (1) — (19,800) — (82,789) Contingent consideration at end of the period $ — $ 26,760 $ — $ 26,760 (1) The Company recognized a gain of $19.8 million and $82.8 million during the three and nine months ended September 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 nine months ended September 30, 2023 and September 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 September 30, 2023, September 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 September 30, September 30, Fair Value Measurements Using 2023 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 86,547 $ 86,547 $ 86,547 $ — $ — Accounts receivable, net 72,336 72,336 — — 72,336 Pawn loans 483,785 483,785 — — 483,785 Finance receivables, net (1) 113,307 230,357 — — 230,357 $ 755,975 $ 873,025 $ 86,547 $ — $ 786,478 Financial liabilities: Revolving unsecured credit facilities $ 560,229 $ 560,229 $ — $ 560,229 $ — Senior unsecured notes (outstanding principal) 1,050,000 938,000 — 938,000 — $ 1,610,229 $ 1,498,229 $ — $ 1,498,229 $ — (1) Finance receivables, gross as of September 30, 2023 was $224.6 million. See Note 6. Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 100,620 $ 100,620 $ 100,620 $ — $ — Accounts receivable, net 58,435 58,435 — — 58,435 Pawn loans 404,227 404,227 — — 404,227 Finance receivables, net (1) 111,945 193,750 — — 193,750 $ 675,227 $ 757,032 $ 100,620 $ — $ 656,412 Financial liabilities: Revolving unsecured credit facilities $ 338,000 $ 338,000 $ — $ 338,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 887,000 — 887,000 — $ 1,388,000 $ 1,225,000 $ — $ 1,225,000 $ — (1) Finance receivables, gross as of September 30, 2022 was $188.9 million. See Note 6. 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 6. 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 September 30, 2023, September 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 | 9 Months Ended |
Sep. 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 September 30, As of 2023 2022 2022 Finance receivables, gross $ 224,618 $ 188,897 $ 195,987 Fair value premium on non-purchase credit deteriorated (”PCD”) finance receivables (1) — 6,839 — Merchant partner discounts and premiums, net (9,730) (2,044) (3,517) Unearned origination fees (4,897) (3,334) (4,143) Finance receivables, amortized cost 209,991 190,358 188,327 Less allowance for loan losses (96,684) (78,413) (84,833) Finance receivables, net $ 113,307 $ 111,945 $ 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Balance at beginning of period $ 93,054 $ 73,936 $ 84,833 $ 75,574 Provision for loan losses 33,096 31,956 90,571 83,453 Charge-offs (30,890) (28,642) (83,281) (84,629) Recoveries 1,424 1,163 4,561 4,015 Balance at end of period $ 96,684 $ 78,413 $ 96,684 $ 78,413 The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of September 30, 2023 and 2022, by origination year (in thousands): Origination Year 2023 2022 2021 Total As of September 30, 2023 Delinquency: 1 to 30 days past due $ 14,764 $ 4,150 $ 179 $ 19,093 31 to 60 days past due 9,036 2,792 148 11,976 61 to 89 days past due (1) 7,109 2,816 173 10,098 Total past due finance receivables 30,909 9,758 500 41,167 Current finance receivables 136,555 31,222 1,047 168,824 Finance receivables, amortized cost $ 167,464 $ 40,980 $ 1,547 $ 209,991 Origination Year 2022 2021 2020 Total As of September 30, 2022 Delinquency: 1 to 30 days past due $ 11,149 $ 4,468 $ 150 $ 15,767 31 to 60 days past due 7,118 3,233 100 10,451 61 to 89 days past due (1) 5,971 3,292 120 9,383 Total past due finance receivables before fair value adjustments 24,238 10,993 370 35,601 Current finance receivables before fair value adjustments 111,023 35,969 926 147,918 Finance receivables before fair value adjustments $ 135,261 $ 46,962 $ 1,296 183,519 Fair value premium on non-PCD finance receivables 6,839 Finance receivables, amortized cost $ 190,358 (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 nine months ended September 30, 2023, by origination year (in thousands): Origination Year 2023 2022 2021 Total Finance receivables gross charge-offs: Gross charge-offs during the nine months ended September 30, 2023 $ 24,676 $ 51,150 $ 7,455 $ 83,281 |
Leased Merchandise, Net
Leased Merchandise, Net | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Leased Merchandise, Net | Leased Merchandise, Net Leased merchandise, net consists of the following (in thousands): As of September 30, As of 2023 2022 2022 Leased merchandise (1) $ 365,677 $ 292,374 $ 335,038 Processing fees (4,155) (3,449) (4,124) Merchant partner discounts and premiums, net 2,566 2,114 2,456 Accumulated depreciation (115,774) (81,343) (100,879) Leased merchandise, before allowance for lease losses 248,314 209,696 232,491 Less allowance for lease losses (105,145) (77,599) (79,189) Leased merchandise, net $ 143,169 $ 132,097 $ 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Balance at beginning of period $ 110,972 $ 69,101 $ 79,189 $ 5,442 Provision for lease losses 39,736 31,916 141,674 109,771 Charge-offs (47,225) (24,538) (120,726) (40,859) Recoveries 1,662 1,120 5,008 3,245 Balance at end of period $ 105,145 $ 77,599 $ 105,145 $ 77,599 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 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 September 30, As of 2023 2022 2022 Revolving unsecured credit facilities: Revolving unsecured credit facility, maturing 2027 (1) $ 531,000 $ 338,000 $ 339,000 Revolving unsecured uncommitted credit facility, maturing 2027 (1) 29,229 — — Total revolving unsecured credit facilities 560,229 338,000 339,000 Senior unsecured notes: 4.625% senior unsecured notes due 2028 (2) 494,239 493,226 493,475 5.625% senior unsecured notes due 2030 (3) 542,912 542,000 542,223 Total senior unsecured notes 1,037,151 1,035,226 1,035,698 Total long-term debt $ 1,597,380 $ 1,373,226 $ 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 September 30, 2023, September 30, 2022 and December 31, 2022, deferred debt issuance costs of $5.8 million, $6.8 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 September 30, 2023, September 30, 2022 and December 31, 2022, deferred debt issuance costs of $7.1 million, $8.0 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 September 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 September 30, 2023, the Company had $531.0 million in outstanding borrowings and $2.9 million in outstanding letters of credit under the Credit Facility, leaving $56.1 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 September 30, 2023 was 7.93% 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 September 30, 2023. During the nine months ended September 30, 2023, the Company received net proceeds of $192.0 million from borrowings pursuant to the Credit Facility. On October 18, 2023, the Company amended its domestic Credit Facility. The total lender commitment under the amended facility, which is provided by a group of twelve commercial banks, was increased by $50.0 million, from $590.0 million to $640.0 million. The amended credit facility remains unsecured and all other terms remained unchanged. Revolving Unsecured Uncommitted Credit Facility In August 2023, the Company’s primary subsidiary in Mexico, First Cash S.A. de C.V., entered into an unsecured and uncommitted line of credit guaranteed by FirstCash, Inc. with a bank in Mexico (the “Mexico Credit Facility”) in the amount of $600.0 million Mexican pesos. The Mexico Credit Facility matures on August 24, 2027. As of September 30, 2023, the Company had $29.2 million ($515.0 million pesos) in outstanding borrowings, leaving $4.8 million ($85.0 million pesos) available for future borrowings, subject to certain financial covenants. The Mexico Credit Facility bears interest at TIIE plus a fixed spread of 2.25%. The interest rate on the amount outstanding under the Mexico Credit Facility at September 30, 2023 was 13.75%. Under the terms of the Mexico Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The Company was in compliance with the covenants of the Mexico Credit Facility as of September 30, 2023. During the nine months ended September 30, 2023, the Company received net proceeds of $29.2 million ($515.0 million pesos) from borrowings pursuant to the Mexico 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 September 30, 2023, the Company’s consolidated total debt ratio was 2.9 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 September 30, 2023, the Company’s consolidated total debt ratio was 2.9 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 | 9 Months Ended |
Sep. 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 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 Military Lending Act (“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 is currently reviewing the Fifth Circuit's decision, with oral arguments having been completed on October 3, 2023. The stay of the CFPB’s action against the Company will remain in effect until the Supreme Court issues its decision with respect to the appeal. If the Supreme Court decides in favor of the CFPB, the stay will be lifted and the Company and the CFPB will continue to litigate the civil action brought against the Company by the CFPB. Gold Forward Sales Contracts As of September 30, 2023, the Company had contractual commitments to deliver a total of 57,600 gold ounces during the months of October 2023 through June 2025 at a weighted-average price of $2,024 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 | 9 Months Ended |
Sep. 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 nine month periods ended September 30, 2023 and 2022 as well as segment earning assets (in thousands): Three Months Ended September 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 203,769 $ 132,784 $ — $ (1,472) (1) $ 335,081 Pawn loan fees 114,022 60,538 — — 174,560 Leased merchandise income — — 189,382 — 189,382 Interest and fees on finance receivables — — 61,413 — 61,413 Wholesale scrap jewelry sales 17,140 8,725 — — 25,865 Total revenue 334,931 202,047 250,795 (1,472) 786,301 Cost of revenue: Cost of retail merchandise sold 115,670 84,816 — (767) (1) 199,719 Depreciation of leased merchandise — — 104,198 (500) (1) 103,698 Provision for lease losses — — 39,640 96 (1) 39,736 Provision for loan losses — — 33,096 — 33,096 Cost of wholesale scrap jewelry sold 14,297 7,108 — — 21,405 Total cost of revenue 129,967 91,924 176,934 (1,171) 397,654 Net revenue (loss) 204,964 110,123 73,861 (301) 388,647 Expenses and other income: Operating expenses 113,976 63,907 33,641 — 211,524 Administrative expenses — — — 45,056 45,056 Depreciation and amortization 6,586 5,236 771 14,772 27,365 Interest expense — — — 24,689 24,689 Interest income — — — (328) (328) Gain on foreign exchange — — — (286) (286) Merger and acquisition expenses — — — 3,387 3,387 Other expenses (income), net — — — (384) (384) Total expenses and other income 120,562 69,143 34,412 86,906 311,023 Income (loss) before income taxes $ 84,402 $ 40,980 $ 39,449 $ (87,207) $ 77,624 (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. Nine Months Ended September 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 610,493 $ 378,302 $ — $ (4,935) (1) $ 983,860 Pawn loan fees 315,679 164,619 — — 480,298 Leased merchandise income — — 562,625 — 562,625 Interest and fees on finance receivables — — 174,247 — 174,247 Wholesale scrap jewelry sales 61,108 37,524 — — 98,632 Total revenue 987,280 580,445 736,872 (4,935) 2,299,662 Cost of revenue: Cost of retail merchandise sold 349,138 244,439 — (2,586) (1) 590,991 Depreciation of leased merchandise — — 309,432 (1,608) (1) 307,824 Provision for lease losses — — 141,854 (180) (1) 141,674 Provision for loan losses — — 90,571 — 90,571 Cost of wholesale scrap jewelry sold 49,604 29,408 — — 79,012 Total cost of revenue 398,742 273,847 541,857 (4,374) 1,210,072 Net revenue (loss) 588,538 306,598 195,015 (561) 1,089,590 Expenses and other income: Operating expenses 331,916 179,170 104,280 — 615,366 Administrative expenses — — — 124,428 124,428 Depreciation and amortization 18,786 15,884 2,258 44,598 81,526 Interest expense — — — 66,657 66,657 Interest income — — — (1,253) (1,253) Gain on foreign exchange — — — (1,905) (1,905) Merger and acquisition expenses — — — 3,670 3,670 Other expenses (income), net — — — (260) (260) Total expenses and other income 350,702 195,054 106,538 235,935 888,229 Income (loss) before income taxes $ 237,836 $ 111,544 $ 88,477 $ (236,496) $ 201,361 (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. As of September 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Earning assets: Pawn loans $ 341,123 $ 142,662 $ — $ — $ 483,785 Finance receivables, net — — 113,307 — 113,307 Inventories 217,406 96,976 — — 314,382 Leased merchandise, net — — 144,826 (1,657) (1) 143,169 (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 September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 195,854 $ 107,591 $ — $ (2,546) (1) $ 300,899 Pawn loan fees 96,222 49,505 — — 145,727 Leased merchandise income — — 158,089 — 158,089 Interest and fees on finance receivables — — 48,846 — 48,846 Wholesale scrap jewelry sales 12,956 5,626 — — 18,582 Total revenue 305,032 162,722 206,935 (2,546) 672,143 Cost of revenue: Cost of retail merchandise sold 114,899 68,642 — (1,342) (1) 182,199 Depreciation of leased merchandise — — 86,703 (184) (1) 86,519 Provision for lease losses — — 32,350 (434) (1) 31,916 Provision for loan losses — — 31,956 — 31,956 Cost of wholesale scrap jewelry sold 11,338 4,923 — — 16,261 Total cost of revenue 126,237 73,565 151,009 (1,960) 348,851 Net revenue (loss) 178,795 89,157 55,926 (586) 323,292 Expenses and other income: Operating expenses 102,508 47,979 35,060 — 185,547 Administrative expenses — — — 36,951 36,951 Depreciation and amortization 5,806 4,566 775 14,824 25,971 Interest expense — — — 18,282 18,282 Interest income — — — (206) (206) Loss on foreign exchange — — — 255 255 Merger and acquisition expenses — — — 733 733 Gain on revaluation of contingent acquisition consideration — — — (19,800) (19,800) Other expenses (income), net — — — 164 164 Total expenses and other income 108,314 52,545 35,835 51,203 247,897 Income (loss) before income taxes $ 70,481 $ 36,612 $ 20,091 $ (51,789) $ 75,395 (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. Nine Months Ended September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 596,165 $ 308,356 $ — $ (2,546) (1) $ 901,975 Pawn loan fees 274,304 137,309 — — 411,613 Leased merchandise income — — 455,736 — 455,736 Interest and fees on finance receivables — — 135,039 — 135,039 Wholesale scrap jewelry sales 45,153 30,082 — — 75,235 Total revenue 915,622 475,747 590,775 (2,546) 1,979,598 Cost of revenue: Cost of retail merchandise sold 349,007 196,057 — (1,342) (1) 543,722 Depreciation of leased merchandise — — 263,014 (184) (1) 262,830 Provision for lease losses — — 110,205 (434) (1) 109,771 Provision for loan losses — — 83,453 — 83,453 Cost of wholesale scrap jewelry sold 39,150 25,221 — — 64,371 Total cost of revenue 388,157 221,278 456,672 (1,960) 1,064,147 Net revenue (loss) 527,465 254,469 134,103 (586) 915,451 Expenses and other income: Operating expenses 302,572 141,574 95,252 — 539,398 Administrative expenses — — — 110,882 110,882 Depreciation and amortization 17,261 13,520 2,156 44,558 77,495 Interest expense — — — 50,749 50,749 Interest income — — — (1,104) (1,104) Gain on foreign exchange — — — (198) (198) Merger and acquisition expenses — — — 1,712 1,712 Gain on revaluation of contingent acquisition consideration — — — (82,789) (82,789) Other expenses (income), net — — — (2,721) (2,721) Total expenses and other income 319,833 155,094 97,408 121,089 693,424 Income (loss) before income taxes $ 207,632 $ 99,375 $ 36,695 $ (121,675) $ 222,027 (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. As of September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Earning assets: Pawn loans $ 279,645 $ 124,582 $ — $ — $ 404,227 Finance receivables, net — — 111,945 — 111,945 Inventories 204,359 91,069 — — 295,428 Leased merchandise, net — — 132,683 (586) (1) 132,097 (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. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 57,144 | $ 45,180 | $ 47,388 | $ 59,316 | $ 86,108 | $ 28,005 | $ 149,712 | $ 173,429 |
Insider Trading Arrangements
Insider Trading Arrangements shares in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | During the three months ended September 30, 2023, none of our directors or officers adopted or terminated a “non-Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K). | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Randel G. Owen [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 10, 2023, Randel G. Owen, Director, adopted a written plan for the sale of up to 2,000 shares of the Company’s common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act of 1934. The plan will expire on November 8, 2024, or on any earlier date on which all of the shares have been sold. | |
Name | Randel G. Owen | |
Title | Director | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 10, 2023 | |
Termination Date | November 8, 2024 | |
Arrangement Duration | 456 days | |
Aggregate Available | 2 | 2 |
R. Douglas Orr [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 22, 2023, R. Douglas Orr, Executive Vice President and Chief Financial Officer, adopted a written plan for the sale of up to 42,000 shares of the Company’s common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act of 1934. The plan will expire on February 28, 2025, or on any earlier date on which all of the shares have been sold. | |
Name | R. Douglas Orr | |
Title | Executive Vice President and Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 22, 2023 | |
Termination Date | February 28, 2025 | |
Arrangement Duration | 556 days | |
Aggregate Available | 42 | 42 |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 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 September 30, 2023 and 2022, and for the three month and nine month periods ended September 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 September 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 6. |
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) | 9 Months Ended |
Sep. 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Numerator: Net income $ 57,144 $ 59,316 $ 149,712 $ 173,429 Denominator: Weighted-average common shares for calculating basic earnings per share 45,114 46,902 45,531 47,518 Effect of dilutive securities: Restricted stock unit awards 260 120 216 84 Weighted-average common shares for calculating diluted earnings per share 45,374 47,022 45,747 47,602 Earnings per share: Basic $ 1.27 $ 1.26 $ 3.29 $ 3.65 Diluted $ 1.26 $ 1.26 $ 3.27 $ 3.64 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary Allocations of Purchase Price | The estimated fair value of the assets acquired and liabilities assumed are preliminary, as the Company is gathering information to finalize the valuation of these assets and liabilities. The preliminary allocation of the aggregate purchase prices for these individually immaterial acquisitions during the nine months ended September 30, 2023 is as follows (in thousands): Pawn loans $ 26,026 Accounts receivable 3,219 Inventories 15,336 Prepaid expenses and other current assets 996 Property and equipment 2,906 Goodwill (1) 119,299 Intangible assets 4,330 Other non-current assets 280 Current liabilities (4,265) Aggregate purchase price $ 168,127 (1) Substantially all of the goodwill is expected to be deductible for U.S. income tax purposes. |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2023 and 2022 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Operating lease expense $ 36,687 $ 31,988 $ 104,702 $ 95,590 Variable lease expense (1) 4,744 4,216 13,777 12,619 Total operating lease expense $ 41,431 $ 36,204 $ 118,479 $ 108,209 (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 nine months ended September 30, 2023 and 2022 (in thousands): Nine Months Ended September 30, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 92,233 $ 87,040 Leased assets obtained in exchange for new operating lease liabilities $ 72,663 $ 66,442 |
Schedule of Maturity of Lease Liabilities | The following table details the maturity of lease liabilities for all operating leases as of September 30, 2023 (in thousands): Three months ending December 31, 2023 $ 31,578 2024 111,094 2025 82,037 2026 58,384 2027 32,329 Thereafter 33,064 Total $ 348,486 Less amount of lease payments representing interest (47,225) Total present value of lease payments $ 301,261 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 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 September 30, 2023. The Company’s financial assets and liabilities as of September 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 September 30, 2022 $ — $ — $ 26,760 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 nine months ended September 30, 2023 and September 30, 2022 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Contingent consideration at beginning of the period $ — $ 46,560 $ — $ 109,549 Change in fair value (1) — (19,800) — (82,789) Contingent consideration at end of the period $ — $ 26,760 $ — $ 26,760 (1) The Company recognized a gain of $19.8 million and $82.8 million during the three and nine months ended September 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 September 30, 2023, September 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 September 30, September 30, Fair Value Measurements Using 2023 2023 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 86,547 $ 86,547 $ 86,547 $ — $ — Accounts receivable, net 72,336 72,336 — — 72,336 Pawn loans 483,785 483,785 — — 483,785 Finance receivables, net (1) 113,307 230,357 — — 230,357 $ 755,975 $ 873,025 $ 86,547 $ — $ 786,478 Financial liabilities: Revolving unsecured credit facilities $ 560,229 $ 560,229 $ — $ 560,229 $ — Senior unsecured notes (outstanding principal) 1,050,000 938,000 — 938,000 — $ 1,610,229 $ 1,498,229 $ — $ 1,498,229 $ — (1) Finance receivables, gross as of September 30, 2023 was $224.6 million. See Note 6. Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 100,620 $ 100,620 $ 100,620 $ — $ — Accounts receivable, net 58,435 58,435 — — 58,435 Pawn loans 404,227 404,227 — — 404,227 Finance receivables, net (1) 111,945 193,750 — — 193,750 $ 675,227 $ 757,032 $ 100,620 $ — $ 656,412 Financial liabilities: Revolving unsecured credit facilities $ 338,000 $ 338,000 $ — $ 338,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 887,000 — 887,000 — $ 1,388,000 $ 1,225,000 $ — $ 1,225,000 $ — (1) Finance receivables, gross as of September 30, 2022 was $188.9 million. See Note 6. 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) | 9 Months Ended |
Sep. 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 September 30, As of 2023 2022 2022 Finance receivables, gross $ 224,618 $ 188,897 $ 195,987 Fair value premium on non-purchase credit deteriorated (”PCD”) finance receivables (1) — 6,839 — Merchant partner discounts and premiums, net (9,730) (2,044) (3,517) Unearned origination fees (4,897) (3,334) (4,143) Finance receivables, amortized cost 209,991 190,358 188,327 Less allowance for loan losses (96,684) (78,413) (84,833) Finance receivables, net $ 113,307 $ 111,945 $ 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Balance at beginning of period $ 93,054 $ 73,936 $ 84,833 $ 75,574 Provision for loan losses 33,096 31,956 90,571 83,453 Charge-offs (30,890) (28,642) (83,281) (84,629) Recoveries 1,424 1,163 4,561 4,015 Balance at end of period $ 96,684 $ 78,413 $ 96,684 $ 78,413 |
Schedule of Finance Receivables Credit Quality Indicators | The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of September 30, 2023 and 2022, by origination year (in thousands): Origination Year 2023 2022 2021 Total As of September 30, 2023 Delinquency: 1 to 30 days past due $ 14,764 $ 4,150 $ 179 $ 19,093 31 to 60 days past due 9,036 2,792 148 11,976 61 to 89 days past due (1) 7,109 2,816 173 10,098 Total past due finance receivables 30,909 9,758 500 41,167 Current finance receivables 136,555 31,222 1,047 168,824 Finance receivables, amortized cost $ 167,464 $ 40,980 $ 1,547 $ 209,991 Origination Year 2022 2021 2020 Total As of September 30, 2022 Delinquency: 1 to 30 days past due $ 11,149 $ 4,468 $ 150 $ 15,767 31 to 60 days past due 7,118 3,233 100 10,451 61 to 89 days past due (1) 5,971 3,292 120 9,383 Total past due finance receivables before fair value adjustments 24,238 10,993 370 35,601 Current finance receivables before fair value adjustments 111,023 35,969 926 147,918 Finance receivables before fair value adjustments $ 135,261 $ 46,962 $ 1,296 183,519 Fair value premium on non-PCD finance receivables 6,839 Finance receivables, amortized cost $ 190,358 (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 | The following table details the gross charge-offs of finance receivables for the nine months ended September 30, 2023, by origination year (in thousands): Origination Year 2023 2022 2021 Total Finance receivables gross charge-offs: Gross charge-offs during the nine months ended September 30, 2023 $ 24,676 $ 51,150 $ 7,455 $ 83,281 |
Leased Merchandise, Net (Tables
Leased Merchandise, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Leased Merchandise, Net | Leased merchandise, net consists of the following (in thousands): As of September 30, As of 2023 2022 2022 Leased merchandise (1) $ 365,677 $ 292,374 $ 335,038 Processing fees (4,155) (3,449) (4,124) Merchant partner discounts and premiums, net 2,566 2,114 2,456 Accumulated depreciation (115,774) (81,343) (100,879) Leased merchandise, before allowance for lease losses 248,314 209,696 232,491 Less allowance for lease losses (105,145) (77,599) (79,189) Leased merchandise, net $ 143,169 $ 132,097 $ 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Balance at beginning of period $ 110,972 $ 69,101 $ 79,189 $ 5,442 Provision for lease losses 39,736 31,916 141,674 109,771 Charge-offs (47,225) (24,538) (120,726) (40,859) Recoveries 1,662 1,120 5,008 3,245 Balance at end of period $ 105,145 $ 77,599 $ 105,145 $ 77,599 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 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 September 30, As of 2023 2022 2022 Revolving unsecured credit facilities: Revolving unsecured credit facility, maturing 2027 (1) $ 531,000 $ 338,000 $ 339,000 Revolving unsecured uncommitted credit facility, maturing 2027 (1) 29,229 — — Total revolving unsecured credit facilities 560,229 338,000 339,000 Senior unsecured notes: 4.625% senior unsecured notes due 2028 (2) 494,239 493,226 493,475 5.625% senior unsecured notes due 2030 (3) 542,912 542,000 542,223 Total senior unsecured notes 1,037,151 1,035,226 1,035,698 Total long-term debt $ 1,597,380 $ 1,373,226 $ 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 September 30, 2023, September 30, 2022 and December 31, 2022, deferred debt issuance costs of $5.8 million, $6.8 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) | 9 Months Ended |
Sep. 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 nine month periods ended September 30, 2023 and 2022 as well as segment earning assets (in thousands): Three Months Ended September 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 203,769 $ 132,784 $ — $ (1,472) (1) $ 335,081 Pawn loan fees 114,022 60,538 — — 174,560 Leased merchandise income — — 189,382 — 189,382 Interest and fees on finance receivables — — 61,413 — 61,413 Wholesale scrap jewelry sales 17,140 8,725 — — 25,865 Total revenue 334,931 202,047 250,795 (1,472) 786,301 Cost of revenue: Cost of retail merchandise sold 115,670 84,816 — (767) (1) 199,719 Depreciation of leased merchandise — — 104,198 (500) (1) 103,698 Provision for lease losses — — 39,640 96 (1) 39,736 Provision for loan losses — — 33,096 — 33,096 Cost of wholesale scrap jewelry sold 14,297 7,108 — — 21,405 Total cost of revenue 129,967 91,924 176,934 (1,171) 397,654 Net revenue (loss) 204,964 110,123 73,861 (301) 388,647 Expenses and other income: Operating expenses 113,976 63,907 33,641 — 211,524 Administrative expenses — — — 45,056 45,056 Depreciation and amortization 6,586 5,236 771 14,772 27,365 Interest expense — — — 24,689 24,689 Interest income — — — (328) (328) Gain on foreign exchange — — — (286) (286) Merger and acquisition expenses — — — 3,387 3,387 Other expenses (income), net — — — (384) (384) Total expenses and other income 120,562 69,143 34,412 86,906 311,023 Income (loss) before income taxes $ 84,402 $ 40,980 $ 39,449 $ (87,207) $ 77,624 (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. Nine Months Ended September 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 610,493 $ 378,302 $ — $ (4,935) (1) $ 983,860 Pawn loan fees 315,679 164,619 — — 480,298 Leased merchandise income — — 562,625 — 562,625 Interest and fees on finance receivables — — 174,247 — 174,247 Wholesale scrap jewelry sales 61,108 37,524 — — 98,632 Total revenue 987,280 580,445 736,872 (4,935) 2,299,662 Cost of revenue: Cost of retail merchandise sold 349,138 244,439 — (2,586) (1) 590,991 Depreciation of leased merchandise — — 309,432 (1,608) (1) 307,824 Provision for lease losses — — 141,854 (180) (1) 141,674 Provision for loan losses — — 90,571 — 90,571 Cost of wholesale scrap jewelry sold 49,604 29,408 — — 79,012 Total cost of revenue 398,742 273,847 541,857 (4,374) 1,210,072 Net revenue (loss) 588,538 306,598 195,015 (561) 1,089,590 Expenses and other income: Operating expenses 331,916 179,170 104,280 — 615,366 Administrative expenses — — — 124,428 124,428 Depreciation and amortization 18,786 15,884 2,258 44,598 81,526 Interest expense — — — 66,657 66,657 Interest income — — — (1,253) (1,253) Gain on foreign exchange — — — (1,905) (1,905) Merger and acquisition expenses — — — 3,670 3,670 Other expenses (income), net — — — (260) (260) Total expenses and other income 350,702 195,054 106,538 235,935 888,229 Income (loss) before income taxes $ 237,836 $ 111,544 $ 88,477 $ (236,496) $ 201,361 (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. As of September 30, 2023 U.S. Latin America Retail POS Corporate/ Consolidated Earning assets: Pawn loans $ 341,123 $ 142,662 $ — $ — $ 483,785 Finance receivables, net — — 113,307 — 113,307 Inventories 217,406 96,976 — — 314,382 Leased merchandise, net — — 144,826 (1,657) (1) 143,169 (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 September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 195,854 $ 107,591 $ — $ (2,546) (1) $ 300,899 Pawn loan fees 96,222 49,505 — — 145,727 Leased merchandise income — — 158,089 — 158,089 Interest and fees on finance receivables — — 48,846 — 48,846 Wholesale scrap jewelry sales 12,956 5,626 — — 18,582 Total revenue 305,032 162,722 206,935 (2,546) 672,143 Cost of revenue: Cost of retail merchandise sold 114,899 68,642 — (1,342) (1) 182,199 Depreciation of leased merchandise — — 86,703 (184) (1) 86,519 Provision for lease losses — — 32,350 (434) (1) 31,916 Provision for loan losses — — 31,956 — 31,956 Cost of wholesale scrap jewelry sold 11,338 4,923 — — 16,261 Total cost of revenue 126,237 73,565 151,009 (1,960) 348,851 Net revenue (loss) 178,795 89,157 55,926 (586) 323,292 Expenses and other income: Operating expenses 102,508 47,979 35,060 — 185,547 Administrative expenses — — — 36,951 36,951 Depreciation and amortization 5,806 4,566 775 14,824 25,971 Interest expense — — — 18,282 18,282 Interest income — — — (206) (206) Loss on foreign exchange — — — 255 255 Merger and acquisition expenses — — — 733 733 Gain on revaluation of contingent acquisition consideration — — — (19,800) (19,800) Other expenses (income), net — — — 164 164 Total expenses and other income 108,314 52,545 35,835 51,203 247,897 Income (loss) before income taxes $ 70,481 $ 36,612 $ 20,091 $ (51,789) $ 75,395 (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. Nine Months Ended September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 596,165 $ 308,356 $ — $ (2,546) (1) $ 901,975 Pawn loan fees 274,304 137,309 — — 411,613 Leased merchandise income — — 455,736 — 455,736 Interest and fees on finance receivables — — 135,039 — 135,039 Wholesale scrap jewelry sales 45,153 30,082 — — 75,235 Total revenue 915,622 475,747 590,775 (2,546) 1,979,598 Cost of revenue: Cost of retail merchandise sold 349,007 196,057 — (1,342) (1) 543,722 Depreciation of leased merchandise — — 263,014 (184) (1) 262,830 Provision for lease losses — — 110,205 (434) (1) 109,771 Provision for loan losses — — 83,453 — 83,453 Cost of wholesale scrap jewelry sold 39,150 25,221 — — 64,371 Total cost of revenue 388,157 221,278 456,672 (1,960) 1,064,147 Net revenue (loss) 527,465 254,469 134,103 (586) 915,451 Expenses and other income: Operating expenses 302,572 141,574 95,252 — 539,398 Administrative expenses — — — 110,882 110,882 Depreciation and amortization 17,261 13,520 2,156 44,558 77,495 Interest expense — — — 50,749 50,749 Interest income — — — (1,104) (1,104) Gain on foreign exchange — — — (198) (198) Merger and acquisition expenses — — — 1,712 1,712 Gain on revaluation of contingent acquisition consideration — — — (82,789) (82,789) Other expenses (income), net — — — (2,721) (2,721) Total expenses and other income 319,833 155,094 97,408 121,089 693,424 Income (loss) before income taxes $ 207,632 $ 99,375 $ 36,695 $ (121,675) $ 222,027 (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. As of September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Earning assets: Pawn loans $ 279,645 $ 124,582 $ — $ — $ 404,227 Finance receivables, net — — 111,945 — 111,945 Inventories 204,359 91,069 — — 295,428 Leased merchandise, net — — 132,683 (586) (1) 132,097 (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. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net income | $ 57,144 | $ 45,180 | $ 47,388 | $ 59,316 | $ 86,108 | $ 28,005 | $ 149,712 | $ 173,429 |
Denominator: | ||||||||
Weighted-average common shares for calculating basic earnings per share (shares) | 45,114 | 46,902 | 45,531 | 47,518 | ||||
Stock options and nonvested stock awards (shares) | 260 | 120 | 216 | 84 | ||||
Weighted-average common shares for calculating diluted earnings per share (shares) | 45,374 | 47,022 | 45,747 | 47,602 | ||||
Earnings per share: | ||||||||
Basic (USD per share) | $ 1.27 | $ 1.26 | $ 3.29 | $ 3.65 | ||||
Diluted (USD per share) | $ 1.26 | $ 1.26 | $ 3.27 | $ 3.64 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Business Acquisition [Line Items] | |
Number of stores acquired | 83 |
Number of acquisitions | 5 |
Number of pawn licenses | 2 |
Number of stores opened | 2 |
Aggregate purchase price | $ 168,127 |
Cash paid in aggregate purchase price | 167,600 |
Business combination, extinguishment of debt, amount | 59,700 |
Liabilities incurred in aggregate purchase price | 500 |
Revenue since acquisition | 14,500 |
Transaction and integration costs | 2,800 |
Net loss since acquisition | $ 100 |
Acquisitions - Schedule of Prel
Acquisitions - Schedule of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,713,354 | $ 1,581,381 | $ 1,523,699 |
Aggregate purchase price | 168,127 | ||
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Pawn loans | 26,026 | ||
Accounts receivable | 3,219 | ||
Inventories | 15,336 | ||
Prepaid expenses and other current assets | 996 | ||
Property and equipment | 2,906 | ||
Goodwill | 119,299 | ||
Intangible assets | 4,330 | ||
Other non-current assets | 280 | ||
Current liabilities | $ 4,265 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 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) | 7.70% | 6.30% | 7.70% | 6.30% |
Foreign currency transaction gain, before tax | $ 1.7 | $ 0.4 | ||
Foreign currency transaction loss, before tax | $ (0.6) | $ (0.4) | ||
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 | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease expense | $ 36,687 | $ 31,988 | $ 104,702 | $ 95,590 |
Variable lease expense | 4,744 | 4,216 | 13,777 | 12,619 |
Total operating lease expense | $ 41,431 | $ 36,204 | $ 118,479 | $ 108,209 |
Operating Leases - Lease Maturi
Operating Leases - Lease Maturities (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
Three months ending December 31, 2023 | $ 31,578 |
45657 | 111,094 |
46022 | 82,037 |
46387 | 58,384 |
46752 | 32,329 |
Thereafter | 33,064 |
Total | 348,486 |
Less amount of lease payments representing interest | (47,225) |
Total present value of lease payments | $ 301,261 |
Operating Leases - Supplemental
Operating Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 92,233 | $ 87,040 |
Leased assets obtained in exchange for new operating lease liabilities | $ 72,663 | $ 66,442 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Contingent AFF acquisition consideration | $ 0 | $ 0 | $ 0 | $ 26,760 | $ 46,560 | $ 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 | $ 26,760 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Contingent consideration at beginning of the period | $ 0 | $ 46,560 | $ 0 | $ 109,549 |
Gain on revaluation of contingent acquisition consideration | 0 | (19,800) | 0 | (82,789) |
Contingent consideration at end of the period | $ 0 | $ 26,760 | $ 0 | $ 26,760 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Financial Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Finance receivables, gross | $ 224,618 | $ 195,987 | $ 188,897 |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 86,547 | 117,330 | 100,620 |
Accounts receivable, net | 72,336 | 57,792 | 58,435 |
Total assets | 755,975 | 669,233 | 675,227 |
Total liabilities | 1,610,229 | 1,389,000 | 1,388,000 |
Carrying Value | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 560,229 | 339,000 | 338,000 |
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 | 483,785 | 390,617 | 404,227 |
Carrying Value | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 113,307 | 103,494 | 111,945 |
Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 86,547 | 117,330 | 100,620 |
Accounts receivable, net | 72,336 | 57,792 | 58,435 |
Total assets | 873,025 | 767,634 | 757,032 |
Total liabilities | 1,498,229 | 1,271,000 | 1,225,000 |
Estimated Fair Value | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 560,229 | 339,000 | 338,000 |
Estimated Fair Value | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 938,000 | 932,000 | 887,000 |
Estimated Fair Value | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 483,785 | 390,617 | 404,227 |
Estimated Fair Value | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 230,357 | 201,895 | 193,750 |
Estimated Fair Value | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 86,547 | 117,330 | 100,620 |
Accounts receivable, net | 0 | 0 | 0 |
Total assets | 86,547 | 117,330 | 100,620 |
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 | 1,498,229 | 1,271,000 | 1,225,000 |
Estimated Fair Value | Level 2 | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 560,229 | 339,000 | 338,000 |
Estimated Fair Value | Level 2 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 938,000 | 932,000 | 887,000 |
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 | 72,336 | 57,792 | 58,435 |
Total assets | 786,478 | 650,304 | 656,412 |
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 | 483,785 | 390,617 | 404,227 |
Estimated Fair Value | Level 3 | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | $ 230,357 | $ 201,895 | $ 193,750 |
Finance Receivables, Net (Detai
Finance Receivables, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | |||||||
Finance receivables, gross | $ 188,897 | $ 224,618 | $ 188,897 | $ 195,987 | |||
Fair value premium on non-PCD finance receivables | 6,839 | $ 0 | 0 | 6,839 | |||
Merchant partner discounts and premiums, net | (3,517) | (9,730) | (2,044) | ||||
Unearned origination fees | (4,143) | (4,897) | (3,334) | ||||
Finance receivables, amortized cost | 190,358 | 209,991 | 190,358 | 188,327 | |||
Less allowance for loan losses | (78,413) | $ (93,054) | (96,684) | (78,413) | (84,833) | $ (73,936) | $ (75,574) |
Finance receivables, net | $ 111,945 | $ 113,307 | $ 111,945 | $ 103,494 |
Finance Receivables, Net - Roll
Finance Receivables, Net - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 93,054 | $ 73,936 | $ 84,833 | $ 75,574 |
Provision for loan losses | 33,096 | 31,956 | 90,571 | 83,453 |
Charge-offs | (30,890) | (28,642) | (83,281) | (84,629) |
Recoveries | 1,424 | 1,163 | 4,561 | 4,015 |
Balance at end of period | $ 96,684 | $ 78,413 | $ 96,684 | $ 78,413 |
Finance Receivables, Net - Agin
Finance Receivables, Net - Aging of Finance Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Sep. 30, 2021 | |
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | $ 183,519 | $ 183,519 | ||||
Fair value premium on non-PCD finance receivables | 6,839 | $ 0 | $ 0 | 6,839 | ||
Finance receivables, amortized cost | 190,358 | 209,991 | 190,358 | $ 188,327 | ||
Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 167,464 | |||||
Year 2022 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 135,261 | 135,261 | ||||
Finance receivables, amortized cost | 40,980 | 40,980 | ||||
Year 2021 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 46,962 | 46,962 | ||||
Finance receivables, amortized cost | $ 1,547 | |||||
Year 2020 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 1,296 | 1,296 | ||||
Financial Asset, 1 to 29 Days Past Due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 15,767 | 15,767 | ||||
Finance receivables, amortized cost | 19,093 | |||||
Financial Asset, 1 to 29 Days Past Due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 14,764 | |||||
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 | 11,149 | 11,149 | ||||
Finance receivables, amortized cost | 4,150 | 4,150 | ||||
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 | 4,468 | 4,468 | ||||
Finance receivables, amortized cost | 179 | |||||
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 | 150 | 150 | ||||
Financial Asset, 30 to 59 Days Past Due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 10,451 | 10,451 | ||||
Finance receivables, amortized cost | 11,976 | |||||
Financial Asset, 30 to 59 Days Past Due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 9,036 | |||||
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 | 7,118 | 7,118 | ||||
Finance receivables, amortized cost | 2,792 | 2,792 | ||||
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 | 3,233 | 3,233 | ||||
Finance receivables, amortized cost | 148 | |||||
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 | 100 | 100 | ||||
Financial Asset, 60 to 89 Days Past Due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 9,383 | 9,383 | ||||
Finance receivables, amortized cost | 10,098 | |||||
Financial Asset, 60 to 89 Days Past Due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 7,109 | |||||
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 | 5,971 | 5,971 | ||||
Finance receivables, amortized cost | 2,816 | 2,816 | ||||
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 | 3,292 | 3,292 | ||||
Finance receivables, amortized cost | 173 | |||||
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 | 120 | 120 | ||||
Total past due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 35,601 | 35,601 | ||||
Finance receivables, amortized cost | 41,167 | |||||
Total past due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | 30,909 | |||||
Total past due | Year 2022 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 24,238 | 24,238 | ||||
Finance receivables, amortized cost | 9,758 | 9,758 | ||||
Total past due | Year 2021 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 10,993 | 10,993 | ||||
Finance receivables, amortized cost | 500 | |||||
Total past due | Year 2020 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 370 | 370 | ||||
Financial Asset, Not Past Due | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 147,918 | 147,918 | ||||
Finance receivables, amortized cost | 168,824 | |||||
Financial Asset, Not Past Due | Year 2023 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivables, amortized cost | $ 136,555 | |||||
Financial Asset, Not Past Due | Year 2022 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 111,023 | 111,023 | ||||
Finance receivables, amortized cost | 31,222 | 31,222 | ||||
Financial Asset, Not Past Due | Year 2021 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | 35,969 | 35,969 | ||||
Finance receivables, amortized cost | $ 1,047 | |||||
Financial Asset, Not Past Due | Year 2020 | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Finance receivable, before allowance for credit loss, premium and discount | $ 926 | $ 926 |
Finance Receivables, Charge - o
Finance Receivables, Charge - offs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Finance Receivable Charge-offs to Allowance for credit losses [Line Items] | ||||
Financing receivable, allowance for credit loss, writeoff | $ 30,890 | $ 28,642 | $ 83,281 | $ 84,629 |
Year 2023 | ||||
Schedule of Finance Receivable Charge-offs to Allowance for credit losses [Line Items] | ||||
Financing receivable, allowance for credit loss, writeoff | 24,676 | |||
Year 2022 | ||||
Schedule of Finance Receivable Charge-offs to Allowance for credit losses [Line Items] | ||||
Financing receivable, allowance for credit loss, writeoff | 51,150 | |||
Year 2021 | ||||
Schedule of Finance Receivable Charge-offs to Allowance for credit losses [Line Items] | ||||
Financing receivable, allowance for credit loss, writeoff | $ 7,455 |
Leased Merchandise, Net (Detail
Leased Merchandise, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2021 | |
Receivables [Abstract] | ||||||
Leased merchandise | $ 292,374 | $ 365,677 | $ 335,038 | |||
Processing fees | (3,449) | (4,155) | (4,124) | |||
Merchant partner discounts and premiums, net | 2,114 | 2,566 | 2,456 | |||
Accumulated depreciation | (81,343) | (115,774) | (100,879) | |||
Leased merchandise, before allowance for lease losses | 209,696 | 248,314 | 232,491 | |||
Less allowance for lease losses | (77,599) | (105,145) | (79,189) | $ (110,972) | $ (69,101) | $ (5,442) |
Leased merchandise, net | $ 132,097 | $ 143,169 | $ 153,302 |
Leased Merchandise, Net - (Deta
Leased Merchandise, Net - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leased Merchandise, Allowance for Credit loss Roll Forward [Roll Forward] | ||||
Balance at beginning of period | $ 110,972 | $ 69,101 | $ 79,189 | $ 5,442 |
Provision for lease losses | 39,736 | 31,916 | 141,674 | 109,771 |
Charge-offs | (47,225) | (24,538) | (120,726) | (40,859) |
Recoveries | 1,662 | 1,120 | 5,008 | 3,245 |
Balance at end of period | $ 105,145 | $ 77,599 | $ 105,145 | $ 77,599 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 13, 2021 | Aug. 26, 2020 |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 1,597,380 | $ 1,374,698 | $ 1,373,226 | ||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 560,229 | 339,000 | 338,000 | ||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 1,037,151 | 1,035,698 | 1,035,226 | ||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 531,000 | 339,000 | 338,000 | ||
Revolving Unsecured Uncommitted Credit Facility due 2027 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 29,229 | 0 | 0 | ||
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 | $ 494,239 | 493,475 | 493,226 | ||
Deferred finance costs, net | $ 5,800 | 6,500 | 6,800 | ||
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 | $ 542,912 | 542,223 | 542,000 | ||
Deferred finance costs, net | $ 7,100 | $ 7,800 | $ 8,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) $ in Millions | 9 Months Ended | ||||
Oct. 18, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 MXN ($) | Dec. 13, 2021 USD ($) | Aug. 26, 2020 USD ($) | |
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 | 531,000,000 | ||||
Letters of credit outstanding | 2,900,000 | ||||
Remaining borrowing capacity | $ 56,100,000 | ||||
Commitment fee (as a percent) | 0.325% | ||||
Interest rate at end of period (as a percent) | 7.93% | 7.93% | |||
Net proceeds | $ 192,000,000 | ||||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 640,000,000 | ||||
Line of credit facility, increase (decrease), net | $ 50,000,000 | ||||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 0% | 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% | ||||
Revolving Unsecured Uncommitted Credit Facility due 2027 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 600 | ||||
Amount outstanding | $ 29,200,000 | 515 | |||
Remaining borrowing capacity | $ 4,800,000 | $ 85 | |||
Interest rate at end of period (as a percent) | 13.75% | 13.75% | |||
Revolving Unsecured Uncommitted Credit Facility due 2027 | Line of Credit | Mexican central bank interbank equilibrium rate (TIIE) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 2.25% | ||||
4.625% senior unsecured notes due 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 4.625% | 4.625% | 4.625% | ||
Face amount | $ 500,000,000 | ||||
Debt ratio threshold | 2.75 | 2.75 | |||
5.625% Senior Unsecured Notes due 2030 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 5.625% | 5.625% | 5.625% | ||
Face amount | $ 550,000,000 | ||||
Debt ratio threshold | 3 | 3 | |||
Debt ratio | 2.9 | 2.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Gold, Ounces - Forward Contracts | Sep. 30, 2023 oz $ / oz |
Guarantor Obligations [Line Items] | |
Investment contract weight | oz | 57,600 |
Derivative, average forward price | $ / oz | 2,024 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Schedule of Revenues from External Customers [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Revenue: | |||||
Retail merchandise sales | $ 335,081 | $ 300,899 | $ 983,860 | $ 901,975 | |
Pawn loan fees | 174,560 | 145,727 | 480,298 | 411,613 | |
Leased merchandise income | 189,382 | 158,089 | 562,625 | 455,736 | |
Interest and fees on finance receivables | 61,413 | 48,846 | 174,247 | 135,039 | |
Wholesale scrap jewelry sales | 25,865 | 18,582 | 98,632 | 75,235 | |
Total revenue | 786,301 | 672,143 | 2,299,662 | 1,979,598 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 199,719 | 182,199 | 590,991 | 543,722 | |
Depreciation of leased merchandise | 103,698 | 86,519 | 307,824 | 262,830 | |
Provision for lease losses | 39,736 | 31,916 | 141,674 | 109,771 | |
Provision for loan losses | 33,096 | 31,956 | 90,571 | 83,453 | |
Cost of wholesale scrap jewelry sold | 21,405 | 16,261 | 79,012 | 64,371 | |
Total cost of revenue | 397,654 | 348,851 | 1,210,072 | 1,064,147 | |
Net revenue (loss) | 388,647 | 323,292 | 1,089,590 | 915,451 | |
Expenses and other income: | |||||
Operating expenses | 211,524 | 185,547 | 615,366 | 539,398 | |
Administrative expenses | 45,056 | 36,951 | 124,428 | 110,882 | |
Depreciation and amortization | 27,365 | 25,971 | 81,526 | 77,495 | |
Interest expense | 24,689 | 18,282 | 66,657 | 50,749 | |
Interest income | (328) | (206) | (1,253) | (1,104) | |
Merger and acquisition expenses | 3,387 | 733 | 3,670 | 1,712 | |
(Gain) loss on foreign exchange | (286) | 255 | (1,905) | (198) | |
Gain on revaluation of contingent acquisition consideration | 0 | (19,800) | 0 | (82,789) | |
Other expenses (income), net | (384) | 164 | (260) | (2,721) | |
Total expenses and other income | 311,023 | 247,897 | 888,229 | 693,424 | |
Income (loss) before income taxes | 77,624 | 75,395 | 201,361 | 222,027 | |
Pawn loans | 483,785 | 404,227 | 483,785 | 404,227 | $ 390,617 |
Finance receivables, net | 113,307 | 111,945 | 113,307 | 111,945 | 103,494 |
Inventories | 314,382 | 295,428 | 314,382 | 295,428 | 288,339 |
Leased merchandise, net | 143,169 | 132,097 | 143,169 | 132,097 | $ 153,302 |
Corporate/ Eliminations | |||||
Revenue: | |||||
Retail merchandise sales | (1,472) | (2,546) | (4,935) | (2,546) | |
Pawn loan fees | 0 | 0 | 0 | 0 | |
Leased merchandise income | 0 | 0 | 0 | 0 | |
Interest and fees on finance receivables | 0 | 0 | 0 | 0 | |
Wholesale scrap jewelry sales | 0 | 0 | 0 | 0 | |
Total revenue | (1,472) | (2,546) | (4,935) | (2,546) | |
Cost of revenue: | |||||
Cost of retail merchandise sold | (767) | (1,342) | (2,586) | (1,342) | |
Depreciation of leased merchandise | (500) | (184) | (1,608) | (184) | |
Provision for lease losses | 96 | (434) | (180) | (434) | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 | 0 | |
Total cost of revenue | (1,171) | (1,960) | (4,374) | (1,960) | |
Net revenue (loss) | (301) | (586) | (561) | (586) | |
Expenses and other income: | |||||
Operating expenses | 0 | 0 | 0 | 0 | |
Administrative expenses | 45,056 | 36,951 | 124,428 | 110,882 | |
Depreciation and amortization | 14,772 | 14,824 | 44,598 | 44,558 | |
Interest expense | 24,689 | 18,282 | 66,657 | 50,749 | |
Interest income | (328) | (206) | (1,253) | (1,104) | |
Merger and acquisition expenses | 3,387 | 733 | 3,670 | 1,712 | |
(Gain) loss on foreign exchange | (286) | 255 | (1,905) | (198) | |
Gain on revaluation of contingent acquisition consideration | (19,800) | (82,789) | |||
Other expenses (income), net | (384) | 164 | (260) | (2,721) | |
Total expenses and other income | 86,906 | 51,203 | 235,935 | 121,089 | |
Income (loss) before income taxes | (87,207) | (51,789) | (236,496) | (121,675) | |
Pawn loans | 0 | 0 | 0 | 0 | |
Finance receivables, net | 0 | 0 | 0 | 0 | |
Inventories | 0 | 0 | 0 | 0 | |
Leased merchandise, net | (1,657) | (586) | (1,657) | (586) | |
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 | 189,382 | 158,089 | 562,625 | 455,736 | |
Interest and fees on finance receivables | 61,413 | 48,846 | 174,247 | 135,039 | |
Wholesale scrap jewelry sales | 0 | 0 | 0 | 0 | |
Total revenue | 250,795 | 206,935 | 736,872 | 590,775 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 0 | 0 | 0 | 0 | |
Depreciation of leased merchandise | 104,198 | 86,703 | 309,432 | 263,014 | |
Provision for lease losses | 39,640 | 32,350 | 141,854 | 110,205 | |
Provision for loan losses | 33,096 | 31,956 | 90,571 | 83,453 | |
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 | 0 | |
Total cost of revenue | 176,934 | 151,009 | 541,857 | 456,672 | |
Net revenue (loss) | 73,861 | 55,926 | 195,015 | 134,103 | |
Expenses and other income: | |||||
Operating expenses | 33,641 | 35,060 | 104,280 | 95,252 | |
Administrative expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 771 | 775 | 2,258 | 2,156 | |
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 | 34,412 | 35,835 | 106,538 | 97,408 | |
Income (loss) before income taxes | 39,449 | 20,091 | 88,477 | 36,695 | |
Pawn loans | 0 | 0 | 0 | 0 | |
Finance receivables, net | 113,307 | 111,945 | 113,307 | 111,945 | |
Inventories | 0 | 0 | 0 | 0 | |
Leased merchandise, net | 144,826 | 132,683 | 144,826 | 132,683 | |
Operating Segments | UNITED STATES | Pawn Segment | |||||
Revenue: | |||||
Retail merchandise sales | 203,769 | 195,854 | 610,493 | 596,165 | |
Pawn loan fees | 114,022 | 96,222 | 315,679 | 274,304 | |
Leased merchandise income | 0 | 0 | 0 | 0 | |
Interest and fees on finance receivables | 0 | 0 | 0 | 0 | |
Wholesale scrap jewelry sales | 17,140 | 12,956 | 61,108 | 45,153 | |
Total revenue | 334,931 | 305,032 | 987,280 | 915,622 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 115,670 | 114,899 | 349,138 | 349,007 | |
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 | 14,297 | 11,338 | 49,604 | 39,150 | |
Total cost of revenue | 129,967 | 126,237 | 398,742 | 388,157 | |
Net revenue (loss) | 204,964 | 178,795 | 588,538 | 527,465 | |
Expenses and other income: | |||||
Operating expenses | 113,976 | 102,508 | 331,916 | 302,572 | |
Administrative expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 6,586 | 5,806 | 18,786 | 17,261 | |
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 | 120,562 | 108,314 | 350,702 | 319,833 | |
Income (loss) before income taxes | 84,402 | 70,481 | 237,836 | 207,632 | |
Pawn loans | 341,123 | 279,645 | 341,123 | 279,645 | |
Finance receivables, net | 0 | 0 | 0 | 0 | |
Inventories | 217,406 | 204,359 | 217,406 | 204,359 | |
Leased merchandise, net | 0 | 0 | 0 | 0 | |
Operating Segments | Latin America | Latin America Pawn Segment | |||||
Revenue: | |||||
Retail merchandise sales | 132,784 | 107,591 | 378,302 | 308,356 | |
Pawn loan fees | 60,538 | 49,505 | 164,619 | 137,309 | |
Leased merchandise income | 0 | 0 | 0 | 0 | |
Interest and fees on finance receivables | 0 | 0 | 0 | 0 | |
Wholesale scrap jewelry sales | 8,725 | 5,626 | 37,524 | 30,082 | |
Total revenue | 202,047 | 162,722 | 580,445 | 475,747 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 84,816 | 68,642 | 244,439 | 196,057 | |
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 | 7,108 | 4,923 | 29,408 | 25,221 | |
Total cost of revenue | 91,924 | 73,565 | 273,847 | 221,278 | |
Net revenue (loss) | 110,123 | 89,157 | 306,598 | 254,469 | |
Expenses and other income: | |||||
Operating expenses | 63,907 | 47,979 | 179,170 | 141,574 | |
Administrative expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 5,236 | 4,566 | 15,884 | 13,520 | |
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 | 69,143 | 52,545 | 195,054 | 155,094 | |
Income (loss) before income taxes | 40,980 | 36,612 | 111,544 | 99,375 | |
Pawn loans | 142,662 | 124,582 | 142,662 | 124,582 | |
Finance receivables, net | 0 | 0 | 0 | 0 | |
Inventories | 96,976 | 91,069 | 96,976 | 91,069 | |
Leased merchandise, net | $ 0 | $ 0 | $ 0 | $ 0 |