Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 20, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-10960 | |
Entity Registrant Name | FIRSTCASH, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 75-2237318 | |
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 $.01 per share | |
Trading Symbol | FCFS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,027,426 | |
Entity Central Index Key | 0000840489 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
ASSETS | |||
Cash and cash equivalents | $ 54,641 | $ 65,850 | $ 75,464 |
Fees and service charges receivable | 35,334 | 41,110 | 40,121 |
Pawn loans | 265,438 | 308,231 | 314,296 |
Inventories | 185,336 | 190,352 | 227,876 |
Income taxes receivable | 8,236 | 9,634 | 4,279 |
Prepaid expenses and other current assets | 8,629 | 9,388 | 10,736 |
Total current assets | 557,614 | 624,565 | 672,772 |
Property and equipment, net | 384,617 | 373,667 | 329,066 |
Operating lease right of use asset | 287,418 | 298,957 | 280,840 |
Goodwill | 974,051 | 977,381 | 927,290 |
Intangible assets, net | 83,229 | 83,651 | 84,999 |
Other assets | 9,365 | 9,818 | 9,188 |
Deferred tax assets | 3,869 | 4,158 | 8,718 |
Total assets | 2,300,163 | 2,372,197 | 2,312,873 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accounts payable and accrued liabilities | 79,575 | 81,917 | 74,805 |
Customer deposits | 38,727 | 34,719 | 39,728 |
Income taxes payable | 7,139 | 1,148 | 9,832 |
Lease liability, current | 86,529 | 88,622 | 82,355 |
Total current liabilities | 211,970 | 206,406 | 206,720 |
Revolving unsecured credit facilities | 44,000 | 123,000 | 355,519 |
Senior unsecured notes | 493,108 | 492,916 | 296,744 |
Deferred tax liabilities | 73,020 | 71,173 | 64,728 |
Lease liability, non-current | 186,972 | 194,887 | 181,787 |
Total liabilities | 1,009,070 | 1,088,382 | 1,105,498 |
Stockholders’ equity: | |||
Common stock | 493 | 493 | 493 |
Additional paid-in capital | 1,218,323 | 1,221,788 | 1,224,113 |
Retained earnings | 811,921 | 789,303 | 749,126 |
Accumulated other comprehensive loss | (130,767) | (118,432) | (180,472) |
Common stock held in treasury, at cost | (608,877) | (609,337) | (585,885) |
Total stockholders’ equity | 1,291,093 | 1,283,815 | 1,207,375 |
Total liabilities and stockholders’ equity | $ 2,300,163 | $ 2,372,197 | $ 2,312,873 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Retail merchandise sales | $ 272,042 | $ 296,629 |
Pawn loan fees | 115,522 | 142,115 |
Wholesale scrap jewelry sales | 20,375 | 26,371 |
Consumer loan and credit services fees | 0 | 1,375 |
Total revenue | 407,939 | 466,490 |
Cost of revenue: | ||
Cost of retail merchandise sold | 157,153 | 184,695 |
Cost of wholesale scrap jewelry sold | 17,197 | 22,847 |
Consumer loan and credit services fees | 0 | (361) |
Total cost of revenue | 174,350 | 207,181 |
Net revenue | 233,589 | 259,309 |
Expenses and other income: | ||
Store operating expenses | 137,324 | 153,500 |
Administrative expenses | 30,999 | 32,902 |
Depreciation and amortization | 10,612 | 10,674 |
Interest expense | 7,230 | 8,418 |
Interest income | (158) | (185) |
Merger and acquisition expenses | 166 | 68 |
Loss on foreign exchange | 267 | 2,685 |
Write-off of certain Cash America merger related lease intangibles | 878 | 3,630 |
Impairment of certain other assets | 0 | 1,900 |
Total expenses and other income | 187,318 | 213,592 |
Income (loss) before income taxes | 46,271 | 45,717 |
Provision for income taxes | 12,556 | 12,799 |
Net income | $ 33,715 | $ 32,918 |
Earnings per share: | ||
Basic (USD per share) | $ 0.82 | $ 0.79 |
Diluted (USD per share) | $ 0.82 | $ 0.78 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 33,715 | $ 32,918 |
Other comprehensive income (loss): | ||
Currency translation adjustment | (12,335) | (83,503) |
Comprehensive income (loss) | $ 21,380 | $ (50,585) |
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, 2019 | 49,276 | 6,947 | ||||
Balance at beginning of period at Dec. 31, 2019 | $ 1,350,035 | $ 493 | $ 1,231,528 | $ 727,476 | $ (96,969) | $ (512,493) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation plan | (3,327) | (10,266) | $ 6,939 | |||
Shares issued under share-based compensation plan (shares) | (93) | |||||
Share-based compensation expense | 2,851 | 2,851 | ||||
Net income | 32,918 | 32,918 | ||||
Cash dividends | 11,268 | 11,268 | ||||
Currency translation adjustment | (83,503) | (83,503) | ||||
Purchases of treasury stock (shares) | 981 | |||||
Purchases of treasury stock | (80,331) | $ (80,331) | ||||
Balance at end of period (shares) at Mar. 31, 2020 | 49,276 | 7,835 | ||||
Balance at end of period at Mar. 31, 2020 | 1,207,375 | $ 493 | 1,224,113 | 749,126 | (180,472) | $ (585,885) |
Balance at beginning of period (shares) at Dec. 31, 2020 | 49,276 | 8,238 | ||||
Balance at beginning of period at Dec. 31, 2020 | 1,283,815 | $ 493 | 1,221,788 | 789,303 | (118,432) | $ (609,337) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued under share-based compensation plan | (1,663) | (7,090) | $ 5,427 | |||
Shares issued under share-based compensation plan (shares) | (73) | |||||
Share-based compensation expense | 3,625 | 3,625 | ||||
Net income | 33,715 | 33,715 | ||||
Cash dividends | 11,097 | 11,097 | ||||
Currency translation adjustment | (12,335) | (12,335) | ||||
Purchases of treasury stock (shares) | 84 | |||||
Purchases of treasury stock | (4,967) | $ (4,967) | ||||
Balance at end of period (shares) at Mar. 31, 2021 | 49,276 | 8,249 | ||||
Balance at end of period at Mar. 31, 2021 | $ 1,291,093 | $ 493 | $ 1,218,323 | $ 811,921 | $ (130,767) | $ (608,877) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Shares withheld for tax withholding obligation (in shares) | 28 | 46 |
Dividends (USD per share) | $ 0.27 | $ 0.27 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash flow from operating activities: | |||
Net income | $ 33,715 | $ 32,918 | |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Non-cash portion of consumer loan credit loss provision | 0 | (729) | |
Share-based compensation expense | 3,625 | 2,851 | |
Depreciation and amortization expense | 10,612 | 10,674 | |
Amortization of debt issuance costs | 395 | 387 | |
Write-off of certain Cash America merger related lease intangibles | 878 | 3,630 | |
Impairment of certain other assets | 0 | 1,900 | |
Deferred income taxes, net | 2,010 | 4,239 | |
Changes in operating assets and liabilities, net of business combinations: | |||
Fees and service charges receivable | 5,394 | 3,673 | |
Inventories purchased directly from customers, wholesalers or manufacturers | 1,442 | 6,951 | |
Prepaid expenses and other assets | 868 | 355 | |
Accounts payable, accrued liabilities and other liabilities | 3,122 | 9,755 | |
Income taxes | 7,113 | 781 | |
Net cash flow provided by operating activities | 69,174 | 77,385 | |
Cash flow from investing activities: | |||
Loan receivables, net | [1] | 42,394 | 52,279 |
Purchases of furniture, fixtures, equipment and improvements | (9,491) | (10,581) | |
Purchases of store real property | (14,441) | (9,617) | |
Acquisitions of pawn stores, net of cash acquired | (1,204) | (5,477) | |
Net cash flow provided by investing activities | 17,258 | 26,604 | |
Cash flow from financing activities: | |||
Borrowings from unsecured credit facilities | 45,000 | 106,925 | |
Repayments of unsecured credit facilities | (124,000) | (88,000) | |
Debt issuance costs paid | 0 | (130) | |
Purchases of treasury stock | (4,967) | (80,331) | |
Payment of withholding taxes on net share settlements of restricted stock unit awards | (1,663) | 0 | |
Dividends paid | (11,097) | (11,268) | |
Net cash flow used in financing activities | (96,727) | (72,804) | |
Effect of exchange rates on cash | (914) | (2,248) | |
Change in cash and cash equivalents | (11,209) | 28,937 | |
Cash and cash equivalents at beginning of the period | 65,850 | 46,527 | |
Cash and cash equivalents at end of the period | $ 54,641 | $ 75,464 | |
[1] | Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral. |
General
General | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
General | General Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2020, which is derived from audited financial statements, and the unaudited consolidated financial statements, including the notes thereto, include the accounts of FirstCash, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions and the results of operations for the acquired stores have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. These unaudited consolidated financial statements 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 consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on February 1, 2021. The consolidated financial statements as of March 31, 2021 and 2020, and for the three month periods ended March 31, 2021 and 2020, 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 period ended March 31, 2021 are not necessarily indicative of the results that may be expected for the full year. The Company has 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 operations in El Salvador where the reporting and functional currency is the U.S. dollar. Continuing Impact of COVID-19 The onset of COVID-19 in March 2020 in the U.S. and shortly thereafter in Latin America significantly impacted the Company’s operations and earnings results. Most countries, states and other local government officials reacted by instituting quarantines, shelter-in-place and other orders mandating non-essential business closures, travel restrictions and other measures in an effort to reduce the spread of COVID-19. The measures significantly reduced normal levels of consumer spending, and combined with broad-based stimulus programs and enhanced unemployment benefits in the U.S., provided significant and unprecedented liquidity to many of the Company’s customers, which greatly suppressed normal demand for pawn loans which, in turn, reduced volumes of inventory acquired from forfeited pawn loans. The extent to which COVID-19 continues to impact the Company’s operations, results of operations, liquidity and financial condition will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the unknown duration and severity of the COVID-19 pandemic, which may be impacted by variants of the COVID-19 virus and the timing, availability and efficacy of the COVID-19 vaccines in the jurisdictions in which the Company operates, and the actions taken to contain the impact of COVID-19, as well as further actions taken to limit the resulting economic impact. In particular, government stimulus and other transfer programs have and may continue to have a material adverse impact on demand for pawn loans in future periods. 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. The extent to which COVID-19 impacts the Company’s operations, results of operations, liquidity and financial condition, including estimates and assumptions used by the Company in the calculation and evaluation of the accrual for earned but uncollected pawn loan fees, impairment of goodwill and other intangible assets and current and deferred tax assets and liabilities, will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the unknown duration and severity of the COVID-19 pandemic and the actions taken to contain its impact, as well as actions taken to limit the resulting economic impact, among others. The Company’s future assessment of the magnitude and duration of the COVID-19 pandemic, as well as other factors, could result in material impacts to the Company’s financial statements in future reporting periods. Reclassification Certain amounts in the consolidated financial statements as of and for the three months ended March 31, 2020 have been reclassified in order to conform to the 2021 presentation. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board issued ASU No 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 removes certain exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles. ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of ASU 2019-12 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In March 2020, the Financial Accounting Standards Board issued ASU No 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. ASU 2020-04 is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company does not expect ASU 2020-04 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 2020 Numerator: Net income $ 33,715 $ 32,918 Denominator: Weighted-average common shares for calculating basic earnings per share 41,034 41,912 Effect of dilutive securities: Stock options and restricted stock unit awards 22 95 Weighted-average common shares for calculating diluted earnings per share 41,056 42,007 Earnings per share: Basic $ 0.82 $ 0.79 Diluted $ 0.82 $ 0.78 |
Operating Leases
Operating Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Operating Leases | Operating Leases The Company leases the majority of its pawnshop locations under operating leases and determines if an arrangement is or contains a lease at inception. Many leases include both lease and non-lease components, which the Company accounts for 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 March 31, 2021 and 2020 was 6.7% and 7.8%, 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 $4.4 million during the three months ended March 31, 2021 and 2020, respectively, related to the remeasurement of these U.S. dollar denominated operating leases, which is included in loss on foreign exchange in the accompanying consolidated statements of income. 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 store operating expenses in the consolidated statements of income during the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Operating lease expense $ 31,065 $ 31,210 Variable lease expense (1) 3,834 3,545 Total operating lease expense $ 34,899 $ 34,755 (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 March 31, 2021 (in thousands): Nine months ending December 31, 2021 $ 78,410 2022 84,948 2023 64,926 2024 42,188 2025 18,221 Thereafter 23,966 Total $ 312,659 Less amount of lease payments representing interest (39,158) Total present value of lease payments $ 273,501 The following table details supplemental cash flow information related to operating leases for the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 28,186 $ 28,835 Leased assets obtained in exchange for new operating lease liabilities $ 16,778 $ 24,983 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, As of December 31, 2021 2020 2020 Revolving unsecured uncommitted credit facility, maturing 2023 (1) $ — $ 25,519 $ — Revolving unsecured credit facility, maturing 2024 (1) 44,000 330,000 123,000 5.375% senior unsecured notes due 2024 (2) — 296,744 — 4.625% senior unsecured notes due 2028 (3) 493,108 — 492,916 Total long-term debt $ 537,108 $ 652,263 $ 615,916 (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 March 31, 2020, deferred debt issuance costs of $3.3 million are included as a direct deduction from the carrying amount of the senior unsecured notes due 2024 in the accompanying consolidated balance sheets. (3) As of March 31, 2021 and December 31, 2020, deferred debt issuance costs of $6.9 million and $7.1 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. Revolving Unsecured Credit Facility As of March 31, 2021, the Company maintained an unsecured line of credit with a group of U.S. based commercial lenders (the “Credit Facility”) in the amount of $500.0 million. The Credit Facility matures on December 19, 2024. As of March 31, 2021, the Company had $44.0 million in outstanding borrowings and $3.4 million in outstanding letters of credit under the Credit Facility, leaving $452.6 million available for future borrowings, subject to certain financial covenants. The Credit Facility is unsecured and bears interest, at the Company’s option, of either (1) the prevailing LIBOR (with interest periods of 1 week or 1, 2, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5% or (2) the prevailing prime or base rate plus a fixed spread of 1.5%. The agreement has a LIBOR floor of 0%. Additionally, the Company is required to pay an annual commitment fee of 0.325% on the average daily unused portion of the Credit Facility commitment. The weighted-average interest rate on amounts outstanding under the Credit Facility at March 31, 2021 was 2.82% based on 1 week LIBOR. 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 March 31, 2021. During the three months ended March 31, 2021, the Company made net payments of $79.0 million pursuant to the Credit Facility. Revolving Unsecured Uncommitted Credit Facility As of March 31, 2021, the Company’s primary subsidiary in Mexico, First Cash S.A. de C.V., maintained 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 bears interest at the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) plus a fixed spread of 2.5% and matures on March 9, 2023. 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 March 31, 2021. At March 31, 2021, the Company had no amount outstanding under the Mexico Credit Facility and $600.0 million Mexican pesos available for borrowings. 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 “Notes”), all of which are currently outstanding. Interest on the Notes is payable semi-annually in arrears on March 1 and September 1. The Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its Credit Facility. The 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 (“Net Debt Ratio”) is less than 2.75 to 1. The Net Debt Ratio is defined generally in the indenture governing the 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. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements As of March 31, 2021, 2020 and December 31, 2020, the Company did not have any financial assets or liabilities measured at fair value on a recurring basis. 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. During the three months ended March 31, 2020, the Company recorded a $1.9 million impairment related to a non-financial, non-operating asset that was included in other assets in the consolidated balance sheets. Financial Assets and Liabilities Not Measured at Fair Value The Company’s financial assets and liabilities as of March 31, 2021, 2020 and December 31, 2020 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value March 31, March 31, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 54,641 $ 54,641 $ 54,641 $ — $ — Fees and service charges receivable 35,334 35,334 — — 35,334 Pawn loans 265,438 265,438 — — 265,438 $ 355,413 $ 355,413 $ 54,641 $ — $ 300,772 Financial liabilities: Revolving unsecured credit facilities $ 44,000 $ 44,000 $ — $ 44,000 $ — Senior unsecured notes (outstanding principal) 500,000 506,000 — 506,000 — $ 544,000 $ 550,000 $ — $ 550,000 $ — Carrying Value Estimated Fair Value March 31, March 31, Fair Value Measurements Using 2020 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 75,464 $ 75,464 $ 75,464 $ — $ — Fees and service charges receivable 40,121 40,121 — — 40,121 Pawn loans 314,296 314,296 — — 314,296 $ 429,881 $ 429,881 $ 75,464 $ — $ 354,417 Financial liabilities: Revolving unsecured credit facilities $ 355,519 $ 355,519 $ — $ 355,519 $ — Senior unsecured notes (outstanding principal) 300,000 276,000 — 276,000 — $ 655,519 $ 631,519 $ — $ 631,519 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2020 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 65,850 $ 65,850 $ 65,850 $ — $ — Fees and service charges receivable 41,110 41,110 — — 41,110 Pawn loans 308,231 308,231 — — 308,231 $ 415,191 $ 415,191 $ 65,850 $ — $ 349,341 Financial liabilities: Revolving unsecured credit facilities $ 123,000 $ 123,000 $ — $ 123,000 $ — Senior unsecured notes (outstanding principal) 500,000 516,000 — 516,000 — $ 623,000 $ 639,000 $ — $ 639,000 $ — As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and fees and service charges receivable approximate fair value. The carrying value of the unsecured credit facilities approximate fair value as of March 31, 2021, 2020 and December 31, 2020. 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 a fixed spread over LIBOR or TIIE and reprice with any changes in LIBOR or TIIE. The fair value of the senior unsecured notes is estimated based on quoted prices in markets that are not active. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company organizes its operations into two reportable segments as follows: • U.S. operations • Latin America operations - includes operations in Mexico, Guatemala, Colombia and El Salvador Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, merger and acquisition expenses, loss on foreign exchange, write-offs of certain lease intangibles and impairments of certain other assets, are incurred or earned in both the U.S. and Latin America, but presented on a consolidated basis and are not allocated between the U.S. operations segment and Latin America operations segment. The following tables present reportable segment information for the three month period ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 189,957 $ 82,085 $ — $ 272,042 Pawn loan fees 76,397 39,125 — 115,522 Wholesale scrap jewelry sales 9,203 11,172 — 20,375 Total revenue 275,557 132,382 — 407,939 Cost of revenue: Cost of retail merchandise sold 106,530 50,623 — 157,153 Cost of wholesale scrap jewelry sold 7,513 9,684 — 17,197 Total cost of revenue 114,043 60,307 — 174,350 Net revenue 161,514 72,075 — 233,589 Expenses and other income: Store operating expenses 95,247 42,077 — 137,324 Administrative expenses — — 30,999 30,999 Depreciation and amortization 5,382 4,263 967 10,612 Interest expense — — 7,230 7,230 Interest income — — (158) (158) Merger and acquisition expenses — — 166 166 Loss on foreign exchange — — 267 267 Write-off of certain Cash America merger related lease intangibles — — 878 878 Total expenses and other income 100,629 46,340 40,349 187,318 Income (loss) before income taxes $ 60,885 $ 25,735 $ (40,349) $ 46,271 Three Months Ended March 31, 2020 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 195,966 $ 100,663 $ — $ 296,629 Pawn loan fees 97,857 44,258 — 142,115 Wholesale scrap jewelry sales 15,478 10,893 — 26,371 Consumer loan and credit services fees (1) 1,375 — — 1,375 Total revenue 310,676 155,814 — 466,490 Cost of revenue: Cost of retail merchandise sold 119,529 65,166 — 184,695 Cost of wholesale scrap jewelry sold 14,006 8,841 — 22,847 Consumer loan and credit services loss provision (1) (361) — — (361) Total cost of revenue 133,174 74,007 — 207,181 Net revenue 177,502 81,807 — 259,309 Expenses and other income: Store operating expenses 107,706 45,794 — 153,500 Administrative expenses — — 32,902 32,902 Depreciation and amortization 5,401 4,063 1,210 10,674 Interest expense — — 8,418 8,418 Interest income — — (185) (185) Merger and acquisition expenses — — 68 68 Loss on foreign exchange — — 2,685 2,685 Write-off of certain Cash America merger related lease intangibles — — 3,630 3,630 Impairment of certain other assets — — 1,900 1,900 Total expenses and other income 113,107 49,857 50,628 213,592 Income (loss) before income taxes $ 64,395 $ 31,950 $ (50,628) $ 45,717 (1) Effective June 30, 2020, the Company no longer offers an unsecured consumer loan product in the U.S. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated balance sheet as of December 31, 2020, which is derived from audited financial statements, and the unaudited consolidated financial statements, including the notes thereto, include the accounts of FirstCash, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions and the results of operations for the acquired stores have been consolidated since the acquisition dates. All significant intercompany accounts and transactions have been eliminated. These unaudited consolidated financial statements 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 consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on February 1, 2021. The consolidated financial statements as of March 31, 2021 and 2020, and for the three month periods ended March 31, 2021 and 2020, 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 period ended March 31, 2021 are not necessarily indicative of the results that may be expected for the full year. The Company has 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 operations in El Salvador where the reporting and functional currency is the U.S. dollar. |
Recent Accounting Pronouncements | In December 2019, the Financial Accounting Standards Board issued ASU No 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 removes certain exceptions to the general principles in Topic 740 in Generally Accepted Accounting Principles. ASU 2019-12 is effective for public entities for fiscal years beginning after December 15, 2020, with early adoption permitted. The adoption of ASU 2019-12 did not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. In March 2020, the Financial Accounting Standards Board issued ASU No 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”). ASU 2020-04 provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. ASU 2020-04 is effective beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company does not expect ASU 2020-04 to have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Fair Value Measurement | The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 2020 Numerator: Net income $ 33,715 $ 32,918 Denominator: Weighted-average common shares for calculating basic earnings per share 41,034 41,912 Effect of dilutive securities: Stock options and restricted stock unit awards 22 95 Weighted-average common shares for calculating diluted earnings per share 41,056 42,007 Earnings per share: Basic $ 0.82 $ 0.79 Diluted $ 0.82 $ 0.78 |
Operating Leases (Tables)
Operating Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The following table details the components of lease expense included in store operating expenses in the consolidated statements of income during the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Operating lease expense $ 31,065 $ 31,210 Variable lease expense (1) 3,834 3,545 Total operating lease expense $ 34,899 $ 34,755 (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 three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 28,186 $ 28,835 Leased assets obtained in exchange for new operating lease liabilities $ 16,778 $ 24,983 |
Schedule of Maturity of Lease Liabilities | The following table details the maturity of lease liabilities for all operating leases as of March 31, 2021 (in thousands): Nine months ending December 31, 2021 $ 78,410 2022 84,948 2023 64,926 2024 42,188 2025 18,221 Thereafter 23,966 Total $ 312,659 Less amount of lease payments representing interest (39,158) Total present value of lease payments $ 273,501 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, As of December 31, 2021 2020 2020 Revolving unsecured uncommitted credit facility, maturing 2023 (1) $ — $ 25,519 $ — Revolving unsecured credit facility, maturing 2024 (1) 44,000 330,000 123,000 5.375% senior unsecured notes due 2024 (2) — 296,744 — 4.625% senior unsecured notes due 2028 (3) 493,108 — 492,916 Total long-term debt $ 537,108 $ 652,263 $ 615,916 (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 March 31, 2020, deferred debt issuance costs of $3.3 million are included as a direct deduction from the carrying amount of the senior unsecured notes due 2024 in the accompanying consolidated balance sheets. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value by Balance Sheet Grouping | The Company’s financial assets and liabilities as of March 31, 2021, 2020 and December 31, 2020 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value March 31, March 31, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 54,641 $ 54,641 $ 54,641 $ — $ — Fees and service charges receivable 35,334 35,334 — — 35,334 Pawn loans 265,438 265,438 — — 265,438 $ 355,413 $ 355,413 $ 54,641 $ — $ 300,772 Financial liabilities: Revolving unsecured credit facilities $ 44,000 $ 44,000 $ — $ 44,000 $ — Senior unsecured notes (outstanding principal) 500,000 506,000 — 506,000 — $ 544,000 $ 550,000 $ — $ 550,000 $ — Carrying Value Estimated Fair Value March 31, March 31, Fair Value Measurements Using 2020 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 75,464 $ 75,464 $ 75,464 $ — $ — Fees and service charges receivable 40,121 40,121 — — 40,121 Pawn loans 314,296 314,296 — — 314,296 $ 429,881 $ 429,881 $ 75,464 $ — $ 354,417 Financial liabilities: Revolving unsecured credit facilities $ 355,519 $ 355,519 $ — $ 355,519 $ — Senior unsecured notes (outstanding principal) 300,000 276,000 — 276,000 — $ 655,519 $ 631,519 $ — $ 631,519 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2020 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 65,850 $ 65,850 $ 65,850 $ — $ — Fees and service charges receivable 41,110 41,110 — — 41,110 Pawn loans 308,231 308,231 — — 308,231 $ 415,191 $ 415,191 $ 65,850 $ — $ 349,341 Financial liabilities: Revolving unsecured credit facilities $ 123,000 $ 123,000 $ — $ 123,000 $ — Senior unsecured notes (outstanding principal) 500,000 516,000 — 516,000 — $ 623,000 $ 639,000 $ — $ 639,000 $ — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables present reportable segment information for the three month period ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 189,957 $ 82,085 $ — $ 272,042 Pawn loan fees 76,397 39,125 — 115,522 Wholesale scrap jewelry sales 9,203 11,172 — 20,375 Total revenue 275,557 132,382 — 407,939 Cost of revenue: Cost of retail merchandise sold 106,530 50,623 — 157,153 Cost of wholesale scrap jewelry sold 7,513 9,684 — 17,197 Total cost of revenue 114,043 60,307 — 174,350 Net revenue 161,514 72,075 — 233,589 Expenses and other income: Store operating expenses 95,247 42,077 — 137,324 Administrative expenses — — 30,999 30,999 Depreciation and amortization 5,382 4,263 967 10,612 Interest expense — — 7,230 7,230 Interest income — — (158) (158) Merger and acquisition expenses — — 166 166 Loss on foreign exchange — — 267 267 Write-off of certain Cash America merger related lease intangibles — — 878 878 Total expenses and other income 100,629 46,340 40,349 187,318 Income (loss) before income taxes $ 60,885 $ 25,735 $ (40,349) $ 46,271 Three Months Ended March 31, 2020 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 195,966 $ 100,663 $ — $ 296,629 Pawn loan fees 97,857 44,258 — 142,115 Wholesale scrap jewelry sales 15,478 10,893 — 26,371 Consumer loan and credit services fees (1) 1,375 — — 1,375 Total revenue 310,676 155,814 — 466,490 Cost of revenue: Cost of retail merchandise sold 119,529 65,166 — 184,695 Cost of wholesale scrap jewelry sold 14,006 8,841 — 22,847 Consumer loan and credit services loss provision (1) (361) — — (361) Total cost of revenue 133,174 74,007 — 207,181 Net revenue 177,502 81,807 — 259,309 Expenses and other income: Store operating expenses 107,706 45,794 — 153,500 Administrative expenses — — 32,902 32,902 Depreciation and amortization 5,401 4,063 1,210 10,674 Interest expense — — 8,418 8,418 Interest income — — (185) (185) Merger and acquisition expenses — — 68 68 Loss on foreign exchange — — 2,685 2,685 Write-off of certain Cash America merger related lease intangibles — — 3,630 3,630 Impairment of certain other assets — — 1,900 1,900 Total expenses and other income 113,107 49,857 50,628 213,592 Income (loss) before income taxes $ 64,395 $ 31,950 $ (50,628) $ 45,717 (1) Effective June 30, 2020, the Company no longer offers an unsecured consumer loan product in the U.S. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income | $ 33,715 | $ 32,918 |
Denominator: | ||
Weighted-average common shares for calculating basic earnings per share (shares) | 41,034 | 41,912 |
Stock options and nonvested stock awards (shares) | 22 | 95 |
Weighted-average common shares for calculating diluted earnings per share (shares) | 41,056 | 42,007 |
Earnings per share: | ||
Basic (USD per share) | $ 0.82 | $ 0.79 |
Diluted (USD per share) | $ 0.82 | $ 0.78 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term | 4 years 1 month 6 days | 3 years 10 months 24 days |
Weighted average discount rate (as a percent) | 6.70% | 7.80% |
Foreign Currency Transaction Loss, before Tax | $ (0.6) | $ (4.4) |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
General term of leased facilities | 3 years | |
Leased facilities renewal term | 3 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
General term of leased facilities | 5 years | |
Leased facilities renewal term | 5 years |
Operating Leases - Lease Cost (
Operating Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 31,065 | $ 31,210 |
Variable lease expense | 3,834 | 3,545 |
Total operating lease expense | $ 34,899 | $ 34,755 |
Operating Leases - Lease Maturi
Operating Leases - Lease Maturities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
Nine months ending December 31, 2021 | $ 78,410 |
2022 | 84,948 |
2023 | 64,926 |
2024 | 42,188 |
2025 | 18,221 |
Thereafter | 23,966 |
Total | 312,659 |
Less amount of lease payments representing interest | (39,158) |
Total present value of lease payments | $ 273,501 |
Operating Leases - Supplemental
Operating Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 28,186 | $ 28,835 |
Leased assets obtained in exchange for new operating lease liabilities | $ 16,778 | $ 24,983 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Aug. 26, 2020 | Mar. 31, 2020 | May 30, 2017 |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 537,108 | $ 615,916 | $ 652,263 | ||
Deferred finance costs, net | 6,900 | 7,100 | 3,300 | ||
Revolving Unsecured Credit Facility due 2024 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 44,000 | 123,000 | 330,000 | ||
5.375% senior unsecured notes due 2024 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 0 | 0 | 296,744 | ||
Stated interest rate (as a percent) | 5.375% | 5.375% | |||
4.625% Senior Unsecured Notes due 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 493,108 | 492,916 | 0 | ||
Stated interest rate (as a percent) | 4.625% | 4.625% | |||
Revolving Unsecured Uncommitted Credit Facility due 2023 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 0 | $ 0 | $ 25,519 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2021USD ($) | Mar. 31, 2021MXN ($) | Aug. 26, 2020USD ($) | May 30, 2017USD ($) | |
Revolving Unsecured Credit Facility due 2024 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 500,000,000 | |||
Amount outstanding | 44,000,000 | |||
Letters of credit outstanding | 3,400,000 | |||
Remaining borrowing capacity | $ 452,600,000 | |||
Commitment fee (as a percent) | 0.325% | |||
Interest rate at end of period (as a percent) | 2.82% | 2.82% | ||
Net proceeds | $ (79,000,000) | |||
Revolving Unsecured Credit Facility due 2024 | Line of Credit | 30-day LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 2.50% | |||
Revolving Unsecured Credit Facility due 2024 | Line of Credit | 30-day LIBOR | Minimum | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 0.00% | 0.00% | ||
Revolving Unsecured Credit Facility due 2024 | 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 2023 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 600,000,000 | |||
Amount outstanding | 0 | |||
Remaining borrowing capacity | $ 600,000,000 | |||
Revolving Unsecured Uncommitted Credit Facility due 2023 | Line of Credit | Mexican Central Bank Interbank Equilibrium Rate (TIIE) | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate (as a percent) | 2.50% | |||
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 | |||
5.375% senior unsecured notes due 2024 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 5.375% | 5.375% | 5.375% | |
Face amount | $ 300,000,000 | |||
Debt ratio | 2.75 | 2.75 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Financial Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Impairment of certain other assets | $ 0 | $ 1,900 | |
Carrying Value | |||
Financial assets: | |||
Cash and cash equivalents | 54,641 | 75,464 | $ 65,850 |
Fees and service charges receivable | 35,334 | 40,121 | 41,110 |
Total assets | 355,413 | 429,881 | 415,191 |
Financial liabilities: | |||
Total liabilities | 544,000 | 655,519 | 623,000 |
Carrying Value | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 44,000 | 355,519 | 123,000 |
Carrying Value | Senior unsecured notes (outstanding principal) | |||
Financial liabilities: | |||
Debt | 500,000 | 300,000 | 500,000 |
Carrying Value | Pawn loans | |||
Financial assets: | |||
Loans receivable | 265,438 | 314,296 | 308,231 |
Estimated Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 54,641 | 75,464 | 65,850 |
Fees and service charges receivable | 35,334 | 40,121 | 41,110 |
Total assets | 355,413 | 429,881 | 415,191 |
Financial liabilities: | |||
Total liabilities | 550,000 | 631,519 | 639,000 |
Estimated Fair Value | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 44,000 | 355,519 | 123,000 |
Estimated Fair Value | Senior unsecured notes (outstanding principal) | |||
Financial liabilities: | |||
Debt | 506,000 | 276,000 | 516,000 |
Estimated Fair Value | Pawn loans | |||
Financial assets: | |||
Loans receivable | 265,438 | 314,296 | 308,231 |
Estimated Fair Value | Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 54,641 | 75,464 | 65,850 |
Fees and service charges receivable | 0 | 0 | 0 |
Total assets | 54,641 | 75,464 | 65,850 |
Financial liabilities: | |||
Total liabilities | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Senior unsecured notes (outstanding principal) | |||
Financial liabilities: | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Pawn loans | |||
Financial assets: | |||
Loans receivable | 0 | 0 | 0 |
Estimated Fair Value | Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Fees and service charges receivable | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Financial liabilities: | |||
Total liabilities | 550,000 | 631,519 | 639,000 |
Estimated Fair Value | Level 2 | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 44,000 | 355,519 | 123,000 |
Estimated Fair Value | Level 2 | Senior unsecured notes (outstanding principal) | |||
Financial liabilities: | |||
Debt | 506,000 | 276,000 | 516,000 |
Estimated Fair Value | Level 2 | Pawn loans | |||
Financial assets: | |||
Loans receivable | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | 0 |
Fees and service charges receivable | 35,334 | 40,121 | 41,110 |
Total assets | 300,772 | 354,417 | 349,341 |
Financial liabilities: | |||
Total liabilities | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Revolving unsecured credit facilities | |||
Financial liabilities: | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Senior unsecured notes (outstanding principal) | |||
Financial liabilities: | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Pawn loans | |||
Financial assets: | |||
Loans receivable | $ 265,438 | $ 314,296 | $ 308,231 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Schedule of Revenues from External Customers [Line Items] | ||
Number of reportable segments | segment | 2 | |
Revenue: | ||
Retail merchandise sales | $ 272,042 | $ 296,629 |
Pawn loan fees | 115,522 | 142,115 |
Wholesale scrap jewelry sales | 20,375 | 26,371 |
Consumer loan and credit services fees | 0 | 1,375 |
Total revenue | 407,939 | 466,490 |
Cost of revenue: | ||
Cost of retail merchandise sold | 157,153 | 184,695 |
Cost of wholesale scrap jewelry sold | 17,197 | 22,847 |
Consumer loan and credit services fees | 0 | (361) |
Total cost of revenue | 174,350 | 207,181 |
Net revenue | 233,589 | 259,309 |
Expenses and other income: | ||
Store operating expenses | 137,324 | 153,500 |
Administrative expenses | 30,999 | 32,902 |
Depreciation and amortization | 10,612 | 10,674 |
Interest expense | 7,230 | 8,418 |
Interest income | (158) | (185) |
Merger and acquisition expenses | 166 | 68 |
Loss on foreign exchange | 267 | 2,685 |
Write-off of certain Cash America merger related lease intangibles | 878 | 3,630 |
Impairment of certain other assets | 0 | 1,900 |
Total expenses and other income | 187,318 | 213,592 |
Income (loss) before income taxes | 46,271 | 45,717 |
U.S. Operations | ||
Revenue: | ||
Retail merchandise sales | 189,957 | 195,966 |
Pawn loan fees | 76,397 | 97,857 |
Wholesale scrap jewelry sales | 9,203 | 15,478 |
Consumer loan and credit services fees | 1,375 | |
Total revenue | 275,557 | 310,676 |
Cost of revenue: | ||
Cost of retail merchandise sold | 106,530 | 119,529 |
Cost of wholesale scrap jewelry sold | 7,513 | 14,006 |
Consumer loan and credit services fees | (361) | |
Total cost of revenue | 114,043 | 133,174 |
Net revenue | 161,514 | 177,502 |
Expenses and other income: | ||
Store operating expenses | 95,247 | 107,706 |
Administrative expenses | 0 | 0 |
Depreciation and amortization | 5,382 | 5,401 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Merger and acquisition expenses | 0 | 0 |
Loss on foreign exchange | 0 | 0 |
Write-off of certain Cash America merger related lease intangibles | 0 | 0 |
Impairment of certain other assets | 0 | |
Total expenses and other income | 100,629 | 113,107 |
Income (loss) before income taxes | 60,885 | 64,395 |
Latin America Operations | ||
Revenue: | ||
Retail merchandise sales | 82,085 | 100,663 |
Pawn loan fees | 39,125 | 44,258 |
Wholesale scrap jewelry sales | 11,172 | 10,893 |
Consumer loan and credit services fees | 0 | |
Total revenue | 132,382 | 155,814 |
Cost of revenue: | ||
Cost of retail merchandise sold | 50,623 | 65,166 |
Cost of wholesale scrap jewelry sold | 9,684 | 8,841 |
Consumer loan and credit services fees | 0 | |
Total cost of revenue | 60,307 | 74,007 |
Net revenue | 72,075 | 81,807 |
Expenses and other income: | ||
Store operating expenses | 42,077 | 45,794 |
Administrative expenses | 0 | 0 |
Depreciation and amortization | 4,263 | 4,063 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Merger and acquisition expenses | 0 | 0 |
Loss on foreign exchange | 0 | 0 |
Write-off of certain Cash America merger related lease intangibles | 0 | 0 |
Impairment of certain other assets | 0 | |
Total expenses and other income | 46,340 | 49,857 |
Income (loss) before income taxes | 25,735 | 31,950 |
Corporate | ||
Revenue: | ||
Retail merchandise sales | 0 | 0 |
Pawn loan fees | 0 | 0 |
Wholesale scrap jewelry sales | 0 | 0 |
Consumer loan and credit services fees | 0 | |
Total revenue | 0 | 0 |
Cost of revenue: | ||
Cost of retail merchandise sold | 0 | 0 |
Cost of wholesale scrap jewelry sold | 0 | 0 |
Consumer loan and credit services fees | 0 | |
Total cost of revenue | 0 | 0 |
Net revenue | 0 | 0 |
Expenses and other income: | ||
Store operating expenses | 0 | 0 |
Administrative expenses | 30,999 | 32,902 |
Depreciation and amortization | 967 | 1,210 |
Interest expense | 7,230 | 8,418 |
Interest income | (158) | (185) |
Merger and acquisition expenses | 166 | 68 |
Loss on foreign exchange | 267 | 2,685 |
Write-off of certain Cash America merger related lease intangibles | 878 | 3,630 |
Impairment of certain other assets | 1,900 | |
Total expenses and other income | 40,349 | 50,628 |
Income (loss) before income taxes | $ (40,349) | $ (50,628) |