Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 20, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 $.01 per share | |
Trading Symbol | FCFS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,451,966 | |
Entity Central Index Key | 0000840489 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
ASSETS | |||
Cash and cash equivalents | $ 50,061 | $ 65,850 | $ 70,956 |
Fees and service charges receivable | 40,183 | 41,110 | 30,418 |
Pawn loans | 312,166 | 308,231 | 230,383 |
Inventories | 216,955 | 190,352 | 179,967 |
Income taxes receivable | 7,324 | 9,634 | 4,988 |
Prepaid expenses and other current assets | 11,698 | 9,388 | 10,865 |
Total current assets | 638,387 | 624,565 | 527,577 |
Property and equipment, net | 404,283 | 373,667 | 341,114 |
Operating lease right of use asset | 299,223 | 298,957 | 283,063 |
Goodwill | 1,017,273 | 977,381 | 929,575 |
Intangible assets, net | 83,372 | 83,651 | 84,389 |
Other assets | 9,406 | 9,818 | 9,037 |
Deferred tax assets | 4,489 | 4,158 | 7,764 |
Total assets | 2,456,433 | 2,372,197 | 2,182,519 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Accounts payable and accrued liabilities | 103,331 | 81,917 | 69,810 |
Customer deposits | 44,486 | 34,719 | 35,439 |
Income taxes payable | 369 | 1,148 | 13,230 |
Lease liability, current | 89,027 | 88,622 | 83,580 |
Total current liabilities | 237,213 | 206,406 | 202,059 |
Revolving unsecured credit facilities | 163,000 | 123,000 | 200,000 |
Senior unsecured notes | 493,303 | 492,916 | 296,923 |
Deferred tax liabilities | 75,912 | 71,173 | 67,842 |
Lease liability, non-current | 196,189 | 194,887 | 182,915 |
Total liabilities | 1,165,617 | 1,088,382 | 949,739 |
Stockholders’ equity: | |||
Common stock | 493 | 493 | 493 |
Additional paid-in capital | 1,219,948 | 1,221,788 | 1,226,512 |
Retained earnings | 828,040 | 789,303 | 763,810 |
Accumulated other comprehensive loss | (115,790) | (118,432) | (172,150) |
Common stock held in treasury, at cost | (641,875) | (609,337) | (585,885) |
Total stockholders’ equity | 1,290,816 | 1,283,815 | 1,232,780 |
Total liabilities and stockholders’ equity | $ 2,456,433 | $ 2,372,197 | $ 2,182,519 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||||
Retail merchandise sales | $ 265,567 | $ 287,400 | $ 537,609 | $ 584,029 |
Pawn loan fees | 109,909 | 101,990 | 225,431 | 244,105 |
Wholesale scrap jewelry sales | 14,102 | 22,785 | 34,477 | 49,156 |
Consumer loan and credit services fees | 0 | 571 | 0 | 1,946 |
Total revenue | 389,578 | 412,746 | 797,517 | 879,236 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 153,424 | 171,511 | 310,577 | 356,206 |
Cost of wholesale scrap jewelry sold | 11,932 | 18,357 | 29,129 | 41,204 |
Consumer loan and credit services loss provision | 0 | (223) | 0 | (584) |
Total cost of revenue | 165,356 | 189,645 | 339,706 | 396,826 |
Net revenue | 224,222 | 223,101 | 457,811 | 482,410 |
Expenses and other income: | ||||
Store operating expenses | 139,128 | 141,051 | 276,452 | 294,551 |
Administrative expenses | 27,398 | 28,386 | 58,397 | 61,288 |
Depreciation and amortization | 10,902 | 10,324 | 21,514 | 20,998 |
Interest expense | 7,198 | 6,974 | 14,428 | 15,392 |
Interest income | (119) | (525) | (277) | (710) |
Merger and acquisition expenses | 1,086 | 134 | 1,252 | 202 |
(Gain) loss on foreign exchange | (577) | (614) | (310) | 2,071 |
Write-off of certain Cash America merger related lease intangibles | 401 | 182 | 1,279 | 3,812 |
Impairment of certain other assets | 0 | 0 | 0 | 1,900 |
Total expenses and other income | 185,417 | 185,912 | 372,735 | 399,504 |
Income (loss) before income taxes | 38,805 | 37,189 | 85,076 | 82,906 |
Provision for income taxes | 10,378 | 11,316 | 22,934 | 24,115 |
Net income | $ 28,427 | $ 25,873 | $ 62,142 | $ 58,791 |
Earnings per share: | ||||
Basic (USD per share) | $ 0.70 | $ 0.62 | $ 1.52 | $ 1.41 |
Diluted (USD per share) | $ 0.70 | $ 0.62 | $ 1.52 | $ 1.41 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 28,427 | $ 25,873 | $ 62,142 | $ 58,791 |
Other comprehensive income (loss): | ||||
Currency translation adjustment | 14,977 | 8,322 | 2,642 | (75,181) |
Comprehensive income (loss) | $ 43,404 | $ 34,195 | $ 64,784 | $ (16,390) |
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, 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] | ||||||
Net income | 58,791 | |||||
Balance at end of period (shares) at Jun. 30, 2020 | 49,276 | 7,835 | ||||
Balance at end of period at Jun. 30, 2020 | 1,232,780 | $ 493 | 1,226,512 | 763,810 | (172,150) | $ (585,885) |
Balance at beginning of period (shares) at Mar. 31, 2020 | 49,276 | 7,835 | ||||
Balance at beginning of period at Mar. 31, 2020 | 1,207,375 | $ 493 | 1,224,113 | 749,126 | (180,472) | $ (585,885) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 2,399 | 2,399 | ||||
Net income | 25,873 | 25,873 | ||||
Cash dividends | 11,189 | 11,189 | ||||
Currency translation adjustment | 8,322 | 8,322 | ||||
Balance at end of period (shares) at Jun. 30, 2020 | 49,276 | 7,835 | ||||
Balance at end of period at Jun. 30, 2020 | 1,232,780 | $ 493 | 1,226,512 | 763,810 | (172,150) | $ (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) |
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] | ||||||
Net income | 62,142 | |||||
Balance at end of period (shares) at Jun. 30, 2021 | 49,276 | 8,701 | ||||
Balance at end of period at Jun. 30, 2021 | 1,290,816 | $ 493 | 1,219,948 | 828,040 | (115,790) | $ (641,875) |
Balance at beginning of period (shares) at Mar. 31, 2021 | 49,276 | 8,249 | ||||
Balance at beginning of period at Mar. 31, 2021 | 1,291,093 | $ 493 | 1,218,323 | 811,921 | (130,767) | $ (608,877) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 1,625 | 1,625 | ||||
Net income | 28,427 | 28,427 | ||||
Cash dividends | 12,308 | 12,308 | ||||
Currency translation adjustment | 14,977 | 14,977 | ||||
Purchases of treasury stock (shares) | 452 | |||||
Purchases of treasury stock | (32,998) | $ (32,998) | ||||
Balance at end of period (shares) at Jun. 30, 2021 | 49,276 | 8,701 | ||||
Balance at end of period at Jun. 30, 2021 | $ 1,290,816 | $ 493 | $ 1,219,948 | $ 828,040 | $ (115,790) | $ (641,875) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Shares withheld for tax withholding obligation (in shares) | 28 | 46 | ||
Dividends (USD per share) | $ 0.30 | $ 0.27 | $ 0.27 | $ 0.27 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Cash flow from operating activities: | |||
Net income | $ 62,142 | $ 58,791 | |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Non-cash portion of consumer loan credit loss provision | 0 | (833) | |
Share-based compensation expense | 5,250 | 5,250 | |
Depreciation and amortization expense | 21,514 | 20,998 | |
Amortization of debt issuance costs | 793 | 772 | |
Write-off of certain Cash America merger related lease intangibles | 1,279 | 3,812 | |
Impairment of certain other assets | 0 | 1,900 | |
Deferred income taxes, net | 4,444 | 8,557 | |
Changes in operating assets and liabilities, net of business combinations: | |||
Fees and service charges receivable | 1,369 | 14,265 | |
Inventories purchased directly from customers, wholesalers or manufacturers | (9,173) | 21,143 | |
Prepaid expenses and other assets | (2,107) | 271 | |
Accounts payable, accrued liabilities and other liabilities | 26,748 | 4,294 | |
Income taxes | 1,490 | 4,079 | |
Net cash flow provided by operating activities | 113,749 | 143,299 | |
Cash flow from investing activities: | |||
Loan receivables, net | [1] | (8,492) | 178,279 |
Purchases of furniture, fixtures, equipment and improvements | (21,025) | (20,476) | |
Purchases of store real property | (29,096) | (19,596) | |
Acquisitions of pawn stores, net of cash acquired | (49,334) | (7,764) | |
Net cash flow (used in) provided by investing activities | (107,947) | 130,443 | |
Cash flow from financing activities: | |||
Borrowings from unsecured credit facilities | 227,000 | 143,925 | |
Repayments of unsecured credit facilities | (187,000) | (282,433) | |
Debt issuance costs paid | 0 | (134) | |
Purchases of treasury stock | (36,427) | (80,331) | |
Payment of withholding taxes on net share settlements of restricted stock awards | (1,663) | (3,327) | |
Dividends paid | (23,405) | (22,457) | |
Net cash flow used in financing activities | (21,495) | (244,757) | |
Effect of exchange rates on cash | (96) | (4,556) | |
Change in cash and cash equivalents | (15,789) | 24,429 | |
Cash and cash equivalents at beginning of the period | 65,850 | 46,527 | |
Cash and cash equivalents at end of the period | $ 50,061 | $ 70,956 | |
[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 | 6 Months Ended |
Jun. 30, 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 June 30, 2021 and 2020, and for the three month and six month periods ended June 30, 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 periods ended June 30, 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 COVID-19 pandemic impacted the Company’s business and results of operations in a variety of ways beginning in the second quarter of 2020 and continuing into 2021. 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 adoption rate 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. Reclassification Certain amounts in the consolidated financial statements as of and for the six months ended June 30, 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 was 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 | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net income $ 28,427 $ 25,873 $ 62,142 $ 58,791 Denominator: Weighted-average common shares for calculating basic earnings per share 40,754 41,440 40,893 41,676 Effect of dilutive securities: Stock options and restricted stock unit awards 48 91 36 93 Weighted-average common shares for calculating diluted earnings per share 40,802 41,531 40,929 41,769 Earnings per share: Basic $ 0.70 $ 0.62 $ 1.52 $ 1.41 Diluted $ 0.70 $ 0.62 $ 1.52 $ 1.41 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Consistent with the Company’s strategy to continue its expansion of pawn stores in strategic markets, during the six months ended June 30, 2021, the Company acquired 28 pawn stores in the U.S. in two separate transactions. The aggregate purchase price for these acquisitions totaled $50.7 million, net of cash acquired and subject to future post-closing adjustments. The aggregate purchase price was composed of $48.4 million in cash paid at closing and remaining short-term amounts payable to the sellers of approximately $2.3 million. The purchase price of each of the 2021 acquisitions was allocated to assets acquired and liabilities assumed based upon the estimated fair market values at the date of acquisition. The excess purchase price over the estimated fair market 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 six months ended June 30, 2021 is as follows (in thousands): Pawn loans $ 5,658 Pawn loan fees receivable 306 Inventories 5,481 Other current assets 161 Property and equipment 839 Goodwill (1) 38,920 Intangible assets 620 Current liabilities (1,271) Aggregate purchase price $ 50,714 (1) Substantially all of the goodwill is expected to be deductible for U.S. income tax purposes. The results of operations for the acquired stores have been consolidated since the respective acquisition dates. During 2021, revenue from the acquired stores was $3.7 million and the loss from the combined acquisitions since the acquisition dates (including $0.9 million of transaction and integration costs, net of tax) was approximately $0.1 million. |
Operating Leases
Operating Leases | 3 Months Ended |
Jun. 30, 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 June 30, 2021 and 2020 was 6.6% and 7.6%, respectively. The Company has certain operating leases in Mexico which are denominated in U.S. dollars. The liability related to these leases is considered a monetary liability, and requires remeasurement each reporting period into the functional currency (Mexican pesos) using reporting date exchange rates. The remeasurement results in the recognition of foreign currency exchange gains or losses each reporting period, which can produce a certain level of earnings volatility. The Company recognized a foreign currency gain of $0.7 million and $0.4 million during the three months ended June 30, 2021 and 2020, respectively, related to the remeasurement of these U.S. dollar denominated operating leases, which is included in (gain) loss on foreign exchange in the accompanying consolidated statements of income. During the six months ended June 30, 2021 and 2020, the Company recognized a foreign currency gain of $0.1 million and a loss of $3.9 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 store operating expenses in the consolidated statements of income during the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating lease expense $ 31,374 $ 29,425 $ 62,439 $ 60,635 Variable lease expense (1) 3,939 3,403 7,773 6,948 Total operating lease expense $ 35,313 $ 32,828 $ 70,212 $ 67,583 (1) Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term. The following table details the maturity of lease liabilities for all operating leases as of June 30, 2021 (in thousands): Six months ending December 31, 2021 $ 55,118 2022 93,320 2023 73,240 2024 49,834 2025 24,806 Thereafter 29,285 Total $ 325,603 Less amount of lease payments representing interest (40,387) Total present value of lease payments $ 285,216 The following table details supplemental cash flow information related to operating leases for the six months ended June 30, 2021 and 2020 (in thousands): Six Months Ended June 30, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 56,570 $ 56,165 Leased assets obtained in exchange for new operating lease liabilities $ 49,209 $ 46,096 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 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 June 30, As of 2021 2020 2020 Revolving unsecured credit facility, maturing 2024 (1) 163,000 200,000 123,000 5.375% senior unsecured notes due 2024 (2) — 296,923 — 4.625% senior unsecured notes due 2028 (3) 493,303 — 492,916 Total long-term debt $ 656,303 $ 496,923 $ 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 June 30, 2020, deferred debt issuance costs of $3.1 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 June 30, 2021 and December 31, 2020, deferred debt issuance costs of $6.7 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 June 30, 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 June 30, 2021, the Company had $163.0 million in outstanding borrowings and $3.4 million in outstanding letters of credit under the Credit Facility, leaving $333.6 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 June 30, 2021 was 2.66% 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 June 30, 2021. During the six months ended June 30, 2021, the Company received net proceeds of $40.0 million from borrowings pursuant to the Credit Facility. Revolving Unsecured Uncommitted Credit Facility As of June 30, 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 June 30, 2021. At June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 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 six months ended June 30, 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 June 30, 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 June 30, June 30, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 50,061 $ 50,061 $ 50,061 $ — $ — Fees and service charges receivable 40,183 40,183 — — 40,183 Pawn loans 312,166 312,166 — — 312,166 $ 402,410 $ 402,410 $ 50,061 $ — $ 352,349 Financial liabilities: Revolving unsecured credit facilities $ 163,000 $ 163,000 $ — $ 163,000 $ — Senior unsecured notes (outstanding principal) 500,000 521,000 — 521,000 — $ 663,000 $ 684,000 $ — $ 684,000 $ — Carrying Value Estimated Fair Value June 30, June 30, Fair Value Measurements Using 2020 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 70,956 $ 70,956 $ 70,956 $ — $ — Fees and service charges receivable 30,418 30,418 — — 30,418 Pawn loans 230,383 230,383 — — 230,383 $ 331,757 $ 331,757 $ 70,956 $ — $ 260,801 Financial liabilities: Revolving unsecured credit facilities $ 200,000 $ 200,000 $ — $ 200,000 $ — Senior unsecured notes (outstanding principal) 300,000 300,000 — 300,000 — $ 500,000 $ 500,000 $ — $ 500,000 $ — 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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, (gain) 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 and six month periods ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, 2021 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 173,254 $ 92,313 $ — $ 265,567 Pawn loan fees 66,942 42,967 — 109,909 Wholesale scrap jewelry sales 6,846 7,256 — 14,102 Total revenue 247,042 142,536 — 389,578 Cost of revenue: Cost of retail merchandise sold 95,599 57,825 — 153,424 Cost of wholesale scrap jewelry sold 5,387 6,545 — 11,932 Total cost of revenue 100,986 64,370 — 165,356 Net revenue 146,056 78,166 — 224,222 Expenses and other income: Store operating expenses 93,574 45,554 — 139,128 Administrative expenses — — 27,398 27,398 Depreciation and amortization 5,347 4,534 1,021 10,902 Interest expense — — 7,198 7,198 Interest income — — (119) (119) Merger and acquisition expenses — — 1,086 1,086 Gain on foreign exchange — — (577) (577) Write-off of certain Cash America merger related lease intangibles — — 401 401 Total expenses and other income 98,921 50,088 36,408 185,417 Income (loss) before income taxes $ 47,135 $ 28,078 $ (36,408) $ 38,805 Three Months Ended June 30, 2020 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 208,944 $ 78,456 $ — $ 287,400 Pawn loan fees 71,900 30,090 — 101,990 Wholesale scrap jewelry sales 9,557 13,228 — 22,785 Consumer loan and credit services fees 571 — — 571 Total revenue 290,972 121,774 — 412,746 Cost of revenue: Cost of retail merchandise sold 121,661 49,850 — 171,511 Cost of wholesale scrap jewelry sold 8,432 9,925 — 18,357 Consumer loan and credit services loss provision (223) — — (223) Total cost of revenue 129,870 59,775 — 189,645 Net revenue 161,102 61,999 — 223,101 Expenses and other income: Store operating expenses 103,302 37,749 — 141,051 Administrative expenses — — 28,386 28,386 Depreciation and amortization 5,561 3,602 1,161 10,324 Interest expense — — 6,974 6,974 Interest income — — (525) (525) Merger and acquisition expenses — — 134 134 Gain on foreign exchange — — (614) (614) Write-off of certain Cash America merger related lease intangibles — — 182 182 Total expenses and other income 108,863 41,351 35,698 185,912 Income (loss) before income taxes $ 52,239 $ 20,648 $ (35,698) $ 37,189 Six Months Ended June 30, 2021 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 363,211 $ 174,398 $ — $ 537,609 Pawn loan fees 143,339 82,092 — 225,431 Wholesale scrap jewelry sales 16,049 18,428 — 34,477 Total revenue 522,599 274,918 — 797,517 Cost of revenue: Cost of retail merchandise sold 202,129 108,448 — 310,577 Cost of wholesale scrap jewelry sold 12,900 16,229 — 29,129 Total cost of revenue 215,029 124,677 — 339,706 Net revenue 307,570 150,241 — 457,811 Expenses and other income: Store operating expenses 188,821 87,631 — 276,452 Administrative expenses — — 58,397 58,397 Depreciation and amortization 10,729 8,797 1,988 21,514 Interest expense — — 14,428 14,428 Interest income — — (277) (277) Merger and acquisition expenses — — 1,252 1,252 Gain on foreign exchange — — (310) (310) Write-off of certain Cash America merger related lease intangibles — — 1,279 1,279 Total expenses and other income 199,550 96,428 76,757 372,735 Income (loss) before income taxes $ 108,020 $ 53,813 $ (76,757) $ 85,076 Six Months Ended June 30, 2020 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 404,910 $ 179,119 $ — $ 584,029 Pawn loan fees 169,757 74,348 — 244,105 Wholesale scrap jewelry sales 25,035 24,121 — 49,156 Consumer loan and credit services fees 1,946 — — 1,946 Total revenue 601,648 277,588 — 879,236 Cost of revenue: Cost of retail merchandise sold 241,190 115,016 — 356,206 Cost of wholesale scrap jewelry sold 22,438 18,766 — 41,204 Consumer loan and credit services loss provision (584) — — (584) Total cost of revenue 263,044 133,782 — 396,826 Net revenue 338,604 143,806 — 482,410 Expenses and other income: Store operating expenses 211,008 83,543 — 294,551 Administrative expenses — — 61,288 61,288 Depreciation and amortization 10,962 7,665 2,371 20,998 Interest expense — — 15,392 15,392 Interest income — — (710) (710) Merger and acquisition expenses — — 202 202 Loss on foreign exchange — — 2,071 2,071 Write-off of certain Cash America merger related lease intangibles — — 3,812 3,812 Impairment of certain other assets — — 1,900 1,900 Total expenses and other income 221,970 91,208 86,326 399,504 Income (loss) before income taxes $ 116,634 $ 52,598 $ (86,326) $ 82,906 |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 and 2020, and for the three month and six month periods ended June 30, 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 periods ended June 30, 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. |
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. |
Reclassification | Certain amounts in the consolidated financial statements as of and for the six months ended June 30, 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 was 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) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Numerator: Net income $ 28,427 $ 25,873 $ 62,142 $ 58,791 Denominator: Weighted-average common shares for calculating basic earnings per share 40,754 41,440 40,893 41,676 Effect of dilutive securities: Stock options and restricted stock unit awards 48 91 36 93 Weighted-average common shares for calculating diluted earnings per share 40,802 41,531 40,929 41,769 Earnings per share: Basic $ 0.70 $ 0.62 $ 1.52 $ 1.41 Diluted $ 0.70 $ 0.62 $ 1.52 $ 1.41 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Allocations of Purchase Price | The preliminary allocation of the aggregate purchase prices for these individually immaterial acquisitions during the six months ended June 30, 2021 is as follows (in thousands): Pawn loans $ 5,658 Pawn loan fees receivable 306 Inventories 5,481 Other current assets 161 Property and equipment 839 Goodwill (1) 38,920 Intangible assets 620 Current liabilities (1,271) Aggregate purchase price $ 50,714 (1) Substantially all of the goodwill is expected to be deductible for U.S. income tax purposes. |
Operating Leases (Tables)
Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Operating lease expense $ 31,374 $ 29,425 $ 62,439 $ 60,635 Variable lease expense (1) 3,939 3,403 7,773 6,948 Total operating lease expense $ 35,313 $ 32,828 $ 70,212 $ 67,583 (1) Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term. The following table details supplemental cash flow information related to operating leases for the six months ended June 30, 2021 and 2020 (in thousands): Six Months Ended June 30, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 56,570 $ 56,165 Leased assets obtained in exchange for new operating lease liabilities $ 49,209 $ 46,096 |
Schedule of Maturity of Lease Liabilities | The following table details the maturity of lease liabilities for all operating leases as of June 30, 2021 (in thousands): Six months ending December 31, 2021 $ 55,118 2022 93,320 2023 73,240 2024 49,834 2025 24,806 Thereafter 29,285 Total $ 325,603 Less amount of lease payments representing interest (40,387) Total present value of lease payments $ 285,216 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, As of 2021 2020 2020 Revolving unsecured credit facility, maturing 2024 (1) 163,000 200,000 123,000 5.375% senior unsecured notes due 2024 (2) — 296,923 — 4.625% senior unsecured notes due 2028 (3) 493,303 — 492,916 Total long-term debt $ 656,303 $ 496,923 $ 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 June 30, 2020, deferred debt issuance costs of $3.1 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) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value by Balance Sheet Grouping | The Company’s financial assets and liabilities as of June 30, 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 June 30, June 30, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 50,061 $ 50,061 $ 50,061 $ — $ — Fees and service charges receivable 40,183 40,183 — — 40,183 Pawn loans 312,166 312,166 — — 312,166 $ 402,410 $ 402,410 $ 50,061 $ — $ 352,349 Financial liabilities: Revolving unsecured credit facilities $ 163,000 $ 163,000 $ — $ 163,000 $ — Senior unsecured notes (outstanding principal) 500,000 521,000 — 521,000 — $ 663,000 $ 684,000 $ — $ 684,000 $ — Carrying Value Estimated Fair Value June 30, June 30, Fair Value Measurements Using 2020 2020 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 70,956 $ 70,956 $ 70,956 $ — $ — Fees and service charges receivable 30,418 30,418 — — 30,418 Pawn loans 230,383 230,383 — — 230,383 $ 331,757 $ 331,757 $ 70,956 $ — $ 260,801 Financial liabilities: Revolving unsecured credit facilities $ 200,000 $ 200,000 $ — $ 200,000 $ — Senior unsecured notes (outstanding principal) 300,000 300,000 — 300,000 — $ 500,000 $ 500,000 $ — $ 500,000 $ — 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) | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 2021 and 2020 (in thousands): Three Months Ended June 30, 2021 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 173,254 $ 92,313 $ — $ 265,567 Pawn loan fees 66,942 42,967 — 109,909 Wholesale scrap jewelry sales 6,846 7,256 — 14,102 Total revenue 247,042 142,536 — 389,578 Cost of revenue: Cost of retail merchandise sold 95,599 57,825 — 153,424 Cost of wholesale scrap jewelry sold 5,387 6,545 — 11,932 Total cost of revenue 100,986 64,370 — 165,356 Net revenue 146,056 78,166 — 224,222 Expenses and other income: Store operating expenses 93,574 45,554 — 139,128 Administrative expenses — — 27,398 27,398 Depreciation and amortization 5,347 4,534 1,021 10,902 Interest expense — — 7,198 7,198 Interest income — — (119) (119) Merger and acquisition expenses — — 1,086 1,086 Gain on foreign exchange — — (577) (577) Write-off of certain Cash America merger related lease intangibles — — 401 401 Total expenses and other income 98,921 50,088 36,408 185,417 Income (loss) before income taxes $ 47,135 $ 28,078 $ (36,408) $ 38,805 Three Months Ended June 30, 2020 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 208,944 $ 78,456 $ — $ 287,400 Pawn loan fees 71,900 30,090 — 101,990 Wholesale scrap jewelry sales 9,557 13,228 — 22,785 Consumer loan and credit services fees 571 — — 571 Total revenue 290,972 121,774 — 412,746 Cost of revenue: Cost of retail merchandise sold 121,661 49,850 — 171,511 Cost of wholesale scrap jewelry sold 8,432 9,925 — 18,357 Consumer loan and credit services loss provision (223) — — (223) Total cost of revenue 129,870 59,775 — 189,645 Net revenue 161,102 61,999 — 223,101 Expenses and other income: Store operating expenses 103,302 37,749 — 141,051 Administrative expenses — — 28,386 28,386 Depreciation and amortization 5,561 3,602 1,161 10,324 Interest expense — — 6,974 6,974 Interest income — — (525) (525) Merger and acquisition expenses — — 134 134 Gain on foreign exchange — — (614) (614) Write-off of certain Cash America merger related lease intangibles — — 182 182 Total expenses and other income 108,863 41,351 35,698 185,912 Income (loss) before income taxes $ 52,239 $ 20,648 $ (35,698) $ 37,189 Six Months Ended June 30, 2021 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 363,211 $ 174,398 $ — $ 537,609 Pawn loan fees 143,339 82,092 — 225,431 Wholesale scrap jewelry sales 16,049 18,428 — 34,477 Total revenue 522,599 274,918 — 797,517 Cost of revenue: Cost of retail merchandise sold 202,129 108,448 — 310,577 Cost of wholesale scrap jewelry sold 12,900 16,229 — 29,129 Total cost of revenue 215,029 124,677 — 339,706 Net revenue 307,570 150,241 — 457,811 Expenses and other income: Store operating expenses 188,821 87,631 — 276,452 Administrative expenses — — 58,397 58,397 Depreciation and amortization 10,729 8,797 1,988 21,514 Interest expense — — 14,428 14,428 Interest income — — (277) (277) Merger and acquisition expenses — — 1,252 1,252 Gain on foreign exchange — — (310) (310) Write-off of certain Cash America merger related lease intangibles — — 1,279 1,279 Total expenses and other income 199,550 96,428 76,757 372,735 Income (loss) before income taxes $ 108,020 $ 53,813 $ (76,757) $ 85,076 Six Months Ended June 30, 2020 U.S. Latin America Corporate Consolidated Revenue: Retail merchandise sales $ 404,910 $ 179,119 $ — $ 584,029 Pawn loan fees 169,757 74,348 — 244,105 Wholesale scrap jewelry sales 25,035 24,121 — 49,156 Consumer loan and credit services fees 1,946 — — 1,946 Total revenue 601,648 277,588 — 879,236 Cost of revenue: Cost of retail merchandise sold 241,190 115,016 — 356,206 Cost of wholesale scrap jewelry sold 22,438 18,766 — 41,204 Consumer loan and credit services loss provision (584) — — (584) Total cost of revenue 263,044 133,782 — 396,826 Net revenue 338,604 143,806 — 482,410 Expenses and other income: Store operating expenses 211,008 83,543 — 294,551 Administrative expenses — — 61,288 61,288 Depreciation and amortization 10,962 7,665 2,371 20,998 Interest expense — — 15,392 15,392 Interest income — — (710) (710) Merger and acquisition expenses — — 202 202 Loss on foreign exchange — — 2,071 2,071 Write-off of certain Cash America merger related lease intangibles — — 3,812 3,812 Impairment of certain other assets — — 1,900 1,900 Total expenses and other income 221,970 91,208 86,326 399,504 Income (loss) before income taxes $ 116,634 $ 52,598 $ (86,326) $ 82,906 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||||
Net income | $ 28,427 | $ 33,715 | $ 25,873 | $ 32,918 | $ 62,142 | $ 58,791 |
Denominator: | ||||||
Weighted-average common shares for calculating basic earnings per share (shares) | 40,754 | 41,440 | 40,893 | 41,676 | ||
Stock options and nonvested stock awards (shares) | 48 | 91 | 36 | 93 | ||
Weighted-average common shares for calculating diluted earnings per share (shares) | 40,802 | 41,531 | 40,929 | 41,769 | ||
Earnings per share: | ||||||
Basic (USD per share) | $ 0.70 | $ 0.62 | $ 1.52 | $ 1.41 | ||
Diluted (USD per share) | $ 0.70 | $ 0.62 | $ 1.52 | $ 1.41 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - U.S. Operations $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($)store | |
Business Acquisition [Line Items] | |
Number of stores acquired | store | 28 |
Number of acquisitions | store | 2 |
Aggregate purchase price | $ 50.7 |
Cash paid in aggregate purchase price | 48.4 |
Liabilities incurred in aggregate purchase price | 2.3 |
Revenue since acquisition | 3.7 |
Transaction and integration costs | 0.9 |
Net loss since acquisition | $ 0.1 |
Acquisitions - Acquisitions Pur
Acquisitions - Acquisitions Purchase Price Allocation Table (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,017,273 | $ 977,381 | $ 929,575 |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Pawn loans | 5,658 | ||
Pawn loan fees and service charges receivable | 306 | ||
Inventory | 5,481 | ||
Other current assets | 161 | ||
Property and equipment | 839 | ||
Goodwill | 38,920 | ||
Intangible assets | 620 | ||
Current liabilities | (1,271) | ||
Purchase price | $ 50,714 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining lease term | 4 years 1 month 6 days | 3 years 10 months 24 days | 4 years 1 month 6 days | 3 years 10 months 24 days |
Weighted average discount rate (as a percent) | 6.60% | 7.60% | 6.60% | 7.60% |
Operating lease, foreign currency transaction gain, before tax | $ 0.7 | $ 0.4 | ||
Operating lease, foreign currency transaction gain (loss), before tax | $ 0.1 | |||
Operating lease, foreign currency transaction loss, before tax | $ 3.9 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
General term of leased facilities | 3 years | 3 years | ||
Leased facilities renewal term | 3 years | 3 years | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
General term of leased facilities | 5 years | 5 years | ||
Leased facilities renewal term | 5 years | 5 years |
Operating Leases - Lease Cost (
Operating Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 31,374 | $ 29,425 | $ 62,439 | $ 60,635 |
Variable lease expense | 3,939 | 3,403 | 7,773 | 6,948 |
Total operating lease expense | $ 35,313 | $ 32,828 | $ 70,212 | $ 67,583 |
Operating Leases - Lease Maturi
Operating Leases - Lease Maturities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
Six months ending December 31, 2021 | $ 55,118 |
2022 | 93,320 |
2023 | 73,240 |
2024 | 49,834 |
2025 | 24,806 |
Thereafter | 29,285 |
Total | 325,603 |
Less amount of lease payments representing interest | (40,387) |
Total present value of lease payments | $ 285,216 |
Operating Leases - Supplemental
Operating Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 56,570 | $ 56,165 |
Leased assets obtained in exchange for new operating lease liabilities | $ 49,209 | $ 46,096 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Aug. 26, 2020 | Jun. 30, 2020 | May 30, 2017 |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 656,303 | $ 615,916 | $ 496,923 | ||
Deferred finance costs, net | 6,700 | 7,100 | 3,100 | ||
Revolving unsecured credit facility, maturing 2024 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 163,000 | 123,000 | 200,000 | ||
5.375% senior unsecured notes due 2024 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 5.375% | 5.375% | |||
Total long-term debt | $ 0 | 0 | 296,923 | ||
4.625% senior unsecured notes due 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 4.625% | 4.625% | |||
Total long-term debt | $ 493,303 | $ 492,916 | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2021MXN ($) | Aug. 26, 2020USD ($) | May 30, 2017USD ($) | |
Revolving unsecured credit facility, maturing 2024 | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 500,000,000 | |||
Amount outstanding | 163,000,000 | |||
Letters of credit outstanding | 3,400,000 | |||
Remaining borrowing capacity | $ 333,600,000 | |||
Commitment fee (as a percent) | 0.325% | |||
Interest rate at end of period (as a percent) | 2.66% | 2.66% | ||
Net proceeds | $ 40,000,000 | |||
Revolving unsecured credit facility, maturing 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, maturing 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, maturing 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 | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Impairment of certain other assets | $ 0 | $ 0 | $ 0 | $ 1,900 | |
Carrying Value | |||||
Financial assets: | |||||
Cash and cash equivalents | 50,061 | 70,956 | 50,061 | 70,956 | $ 65,850 |
Fees and service charges receivable | 40,183 | 30,418 | 40,183 | 30,418 | 41,110 |
Total assets | 402,410 | 331,757 | 402,410 | 331,757 | 415,191 |
Financial liabilities: | |||||
Total liabilities | 663,000 | 500,000 | 663,000 | 500,000 | 623,000 |
Carrying Value | Revolving unsecured credit facilities | |||||
Financial liabilities: | |||||
Debt | 163,000 | 200,000 | 163,000 | 200,000 | 123,000 |
Carrying Value | Senior unsecured notes (outstanding principal) | |||||
Financial liabilities: | |||||
Debt | 500,000 | 300,000 | 500,000 | 300,000 | 500,000 |
Carrying Value | Pawn loans | |||||
Financial assets: | |||||
Pawn loans | 312,166 | 230,383 | 312,166 | 230,383 | 308,231 |
Estimated Fair Value | |||||
Financial assets: | |||||
Cash and cash equivalents | 50,061 | 70,956 | 50,061 | 70,956 | 65,850 |
Fees and service charges receivable | 40,183 | 30,418 | 40,183 | 30,418 | 41,110 |
Total assets | 402,410 | 331,757 | 402,410 | 331,757 | 415,191 |
Financial liabilities: | |||||
Total liabilities | 684,000 | 500,000 | 684,000 | 500,000 | 639,000 |
Estimated Fair Value | Revolving unsecured credit facilities | |||||
Financial liabilities: | |||||
Debt | 163,000 | 200,000 | 163,000 | 200,000 | 123,000 |
Estimated Fair Value | Senior unsecured notes (outstanding principal) | |||||
Financial liabilities: | |||||
Debt | 521,000 | 300,000 | 521,000 | 300,000 | 516,000 |
Estimated Fair Value | Pawn loans | |||||
Financial assets: | |||||
Pawn loans | 312,166 | 230,383 | 312,166 | 230,383 | 308,231 |
Estimated Fair Value | Level 1 | |||||
Financial assets: | |||||
Cash and cash equivalents | 50,061 | 70,956 | 50,061 | 70,956 | 65,850 |
Fees and service charges receivable | 0 | 0 | 0 | 0 | 0 |
Total assets | 50,061 | 70,956 | 50,061 | 70,956 | 65,850 |
Financial liabilities: | |||||
Total liabilities | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Revolving unsecured credit facilities | |||||
Financial liabilities: | |||||
Debt | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Senior unsecured notes (outstanding principal) | |||||
Financial liabilities: | |||||
Debt | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Pawn loans | |||||
Financial assets: | |||||
Pawn loans | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value | Level 2 | |||||
Financial assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Fees and service charges receivable | 0 | 0 | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 | 0 | 0 |
Financial liabilities: | |||||
Total liabilities | 684,000 | 500,000 | 684,000 | 500,000 | 639,000 |
Estimated Fair Value | Level 2 | Revolving unsecured credit facilities | |||||
Financial liabilities: | |||||
Debt | 163,000 | 200,000 | 163,000 | 200,000 | 123,000 |
Estimated Fair Value | Level 2 | Senior unsecured notes (outstanding principal) | |||||
Financial liabilities: | |||||
Debt | 521,000 | 300,000 | 521,000 | 300,000 | 516,000 |
Estimated Fair Value | Level 2 | Pawn loans | |||||
Financial assets: | |||||
Pawn loans | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | |||||
Financial assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Fees and service charges receivable | 40,183 | 30,418 | 40,183 | 30,418 | 41,110 |
Total assets | 352,349 | 260,801 | 352,349 | 260,801 | 349,341 |
Financial liabilities: | |||||
Total liabilities | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Revolving unsecured credit facilities | |||||
Financial liabilities: | |||||
Debt | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Senior unsecured notes (outstanding principal) | |||||
Financial liabilities: | |||||
Debt | 0 | 0 | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Pawn loans | |||||
Financial assets: | |||||
Pawn loans | $ 312,166 | $ 230,383 | $ 312,166 | $ 230,383 | $ 308,231 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | |
Schedule of Revenues from External Customers [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Revenue: | ||||
Retail merchandise sales | $ 265,567 | $ 287,400 | $ 537,609 | $ 584,029 |
Pawn loan fees | 109,909 | 101,990 | 225,431 | 244,105 |
Wholesale scrap jewelry sales | 14,102 | 22,785 | 34,477 | 49,156 |
Consumer loan and credit services fees | 0 | 571 | 0 | 1,946 |
Total revenue | 389,578 | 412,746 | 797,517 | 879,236 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 153,424 | 171,511 | 310,577 | 356,206 |
Cost of wholesale scrap jewelry sold | 11,932 | 18,357 | 29,129 | 41,204 |
Consumer loan and credit services loss provision | 0 | (223) | 0 | (584) |
Total cost of revenue | 165,356 | 189,645 | 339,706 | 396,826 |
Net revenue | 224,222 | 223,101 | 457,811 | 482,410 |
Expenses and other income: | ||||
Store operating expenses | 139,128 | 141,051 | 276,452 | 294,551 |
Administrative expenses | 27,398 | 28,386 | 58,397 | 61,288 |
Depreciation and amortization | 10,902 | 10,324 | 21,514 | 20,998 |
Interest expense | 7,198 | 6,974 | 14,428 | 15,392 |
Interest income | (119) | (525) | (277) | (710) |
Merger and acquisition expenses | 1,086 | 134 | 1,252 | 202 |
(Gain) loss on foreign exchange | (577) | (614) | (310) | 2,071 |
Write-off of certain Cash America merger related lease intangibles | 401 | 182 | 1,279 | 3,812 |
Impairment of certain other assets | 0 | 0 | 0 | 1,900 |
Total expenses and other income | 185,417 | 185,912 | 372,735 | 399,504 |
Income (loss) before income taxes | 38,805 | 37,189 | 85,076 | 82,906 |
U.S. Operations | ||||
Revenue: | ||||
Retail merchandise sales | 173,254 | 208,944 | 363,211 | 404,910 |
Pawn loan fees | 66,942 | 71,900 | 143,339 | 169,757 |
Wholesale scrap jewelry sales | 6,846 | 9,557 | 16,049 | 25,035 |
Consumer loan and credit services fees | 571 | 1,946 | ||
Total revenue | 247,042 | 290,972 | 522,599 | 601,648 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 95,599 | 121,661 | 202,129 | 241,190 |
Cost of wholesale scrap jewelry sold | 5,387 | 8,432 | 12,900 | 22,438 |
Consumer loan and credit services loss provision | (223) | (584) | ||
Total cost of revenue | 100,986 | 129,870 | 215,029 | 263,044 |
Net revenue | 146,056 | 161,102 | 307,570 | 338,604 |
Expenses and other income: | ||||
Store operating expenses | 93,574 | 103,302 | 188,821 | 211,008 |
Administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 5,347 | 5,561 | 10,729 | 10,962 |
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 |
Write-off of certain Cash America merger related lease intangibles | 0 | 0 | 0 | 0 |
Impairment of certain other assets | 0 | |||
Total expenses and other income | 98,921 | 108,863 | 199,550 | 221,970 |
Income (loss) before income taxes | 47,135 | 52,239 | 108,020 | 116,634 |
Latin America Operations | ||||
Revenue: | ||||
Retail merchandise sales | 92,313 | 78,456 | 174,398 | 179,119 |
Pawn loan fees | 42,967 | 30,090 | 82,092 | 74,348 |
Wholesale scrap jewelry sales | 7,256 | 13,228 | 18,428 | 24,121 |
Consumer loan and credit services fees | 0 | 0 | ||
Total revenue | 142,536 | 121,774 | 274,918 | 277,588 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 57,825 | 49,850 | 108,448 | 115,016 |
Cost of wholesale scrap jewelry sold | 6,545 | 9,925 | 16,229 | 18,766 |
Consumer loan and credit services loss provision | 0 | 0 | ||
Total cost of revenue | 64,370 | 59,775 | 124,677 | 133,782 |
Net revenue | 78,166 | 61,999 | 150,241 | 143,806 |
Expenses and other income: | ||||
Store operating expenses | 45,554 | 37,749 | 87,631 | 83,543 |
Administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 4,534 | 3,602 | 8,797 | 7,665 |
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 |
Write-off of certain Cash America merger related lease intangibles | 0 | 0 | 0 | 0 |
Impairment of certain other assets | 0 | |||
Total expenses and other income | 50,088 | 41,351 | 96,428 | 91,208 |
Income (loss) before income taxes | 28,078 | 20,648 | 53,813 | 52,598 |
Corporate | ||||
Revenue: | ||||
Retail merchandise sales | 0 | 0 | 0 | 0 |
Pawn loan fees | 0 | 0 | 0 | 0 |
Wholesale scrap jewelry sales | 0 | 0 | 0 | 0 |
Consumer loan and credit services fees | 0 | 0 | ||
Total revenue | 0 | 0 | 0 | 0 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 0 | 0 | 0 | 0 |
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 | 0 |
Consumer loan and credit services loss provision | 0 | 0 | ||
Total cost of revenue | 0 | 0 | 0 | 0 |
Net revenue | 0 | 0 | 0 | 0 |
Expenses and other income: | ||||
Store operating expenses | 0 | 0 | 0 | 0 |
Administrative expenses | 27,398 | 28,386 | 58,397 | 61,288 |
Depreciation and amortization | 1,021 | 1,161 | 1,988 | 2,371 |
Interest expense | 7,198 | 6,974 | 14,428 | 15,392 |
Interest income | (119) | (525) | (277) | (710) |
Merger and acquisition expenses | 1,086 | 134 | 1,252 | 202 |
(Gain) loss on foreign exchange | (577) | (614) | (310) | 2,071 |
Write-off of certain Cash America merger related lease intangibles | 401 | 182 | 1,279 | 3,812 |
Impairment of certain other assets | 1,900 | |||
Total expenses and other income | 36,408 | 35,698 | 76,757 | 86,326 |
Income (loss) before income taxes | $ (36,408) | $ (35,698) | $ (76,757) | $ (86,326) |