Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 26, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-10960 | |
Entity Registrant Name | FIRSTCASH HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-3920732 | |
Entity Address, Address Line One | 1600 West 7th Street | |
Entity Address, City or Town | Fort Worth | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76102 | |
City Area Code | 817 | |
Local Phone Number | 335-1100 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | FCFS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 46,318,065 | |
Entity Central Index Key | 0000840489 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Current assets | |||
Cash and cash equivalents | $ 100,620 | $ 120,046 | $ 49,907 |
Accounts receivable, net | 58,435 | 55,356 | 43,492 |
Pawn loans | 404,227 | 347,973 | 348,993 |
Finance receivables, net | 111,945 | 181,021 | 0 |
Inventories | 295,428 | 263,311 | 254,260 |
Leased merchandise, net | 132,097 | 143,944 | 0 |
Prepaid expenses and other current assets | 38,322 | 17,707 | 14,793 |
Total current assets | 1,141,074 | 1,129,358 | 711,445 |
Property and equipment, net | 535,584 | 462,526 | 411,042 |
Operating lease right of use asset | 299,052 | 306,061 | 300,040 |
Goodwill | 1,523,699 | 1,536,178 | 1,014,052 |
Intangible assets, net | 345,512 | 388,184 | 83,019 |
Other assets | 9,133 | 8,531 | 8,413 |
Deferred tax assets, net | 6,906 | 5,614 | 5,472 |
Total assets | 3,860,960 | 3,836,452 | 2,533,483 |
Current liabilities | |||
Accounts payable and accrued liabilities | 175,964 | 244,327 | 88,151 |
Customer deposits and prepayments | 63,066 | 57,310 | 46,702 |
Lease liability, current | 91,115 | 90,570 | 89,502 |
Total current liabilities | 330,145 | 392,207 | 224,355 |
Revolving unsecured credit facilities | 338,000 | 259,000 | 246,000 |
Senior unsecured notes | 1,035,226 | 1,033,904 | 493,499 |
Deferred tax liabilities, net | 155,263 | 126,098 | 78,191 |
Lease liability, non-current | 197,171 | 203,166 | 197,618 |
Other liabilities | 0 | 13,950 | 0 |
Total liabilities | 2,055,805 | 2,028,325 | 1,239,663 |
Stockholders’ equity: | |||
Common stock | 573 | 573 | 493 |
Additional paid-in capital | 1,732,500 | 1,724,956 | 1,222,432 |
Retained earnings | 995,669 | 866,679 | 849,438 |
Accumulated other comprehensive loss | (127,366) | (131,299) | (125,761) |
Common stock held in treasury, at cost | (796,221) | (652,782) | (652,782) |
Total stockholders’ equity | 1,805,155 | 1,808,127 | 1,293,820 |
Total liabilities and stockholders’ equity | $ 3,860,960 | $ 3,836,452 | $ 2,533,483 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||||
Retail merchandise sales | $ 300,899 | $ 268,726 | $ 901,975 | $ 806,335 |
Pawn loan fees | 145,727 | 121,365 | 411,613 | 346,796 |
Leased merchandise income | 158,089 | 0 | 455,736 | 0 |
Interest and fees on finance receivables | 48,846 | 0 | 135,039 | 0 |
Wholesale scrap jewelry sales | 18,582 | 9,583 | 75,235 | 44,060 |
Total revenue | 672,143 | 399,674 | 1,979,598 | 1,197,191 |
Cost of revenue: | ||||
Cost of retail merchandise sold | 182,199 | 158,057 | 543,722 | 468,634 |
Depreciation of leased merchandise | 86,519 | 0 | 262,830 | 0 |
Provision for lease losses | 31,916 | 0 | 109,771 | 0 |
Provision for loan losses | 31,956 | 0 | 83,453 | 0 |
Cost of wholesale scrap jewelry sold | 16,261 | 8,528 | 64,371 | 37,657 |
Total cost of revenue | 348,851 | 166,585 | 1,064,147 | 506,291 |
Net revenue | 323,292 | 233,089 | 915,451 | 690,900 |
Expenses and other income: | ||||
Operating expenses | 185,547 | 138,619 | 539,398 | 415,071 |
Administrative expenses | 36,951 | 30,208 | 110,882 | 88,605 |
Depreciation and amortization | 25,971 | 11,217 | 77,495 | 32,731 |
Interest expense | 18,282 | 7,961 | 50,749 | 22,389 |
Interest income | (206) | (143) | (1,104) | (420) |
Loss (gain) on foreign exchange | 255 | 558 | (198) | 248 |
Merger and acquisition expenses | 733 | 12 | 1,712 | 1,264 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (19,800) | 0 | (82,789) | 0 |
Other expenses (income), net | 164 | 361 | (2,721) | 1,640 |
Total expenses and other income | 247,897 | 188,793 | 693,424 | 561,528 |
Income (loss) before income taxes | 75,395 | 44,296 | 222,027 | 129,372 |
Provision for income taxes | 16,079 | 10,900 | 48,598 | 33,834 |
Net income | $ 59,316 | $ 33,396 | $ 173,429 | $ 95,538 |
Earnings per share: | ||||
Basic (USD per share) | $ 1.26 | $ 0.83 | $ 3.65 | $ 2.34 |
Diluted (USD per share) | $ 1.26 | $ 0.82 | $ 3.64 | $ 2.34 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 59,316 | $ 33,396 | $ 173,429 | $ 95,538 |
Other comprehensive income: | ||||
Currency translation adjustment | (7,372) | (9,971) | 3,933 | (7,329) |
Comprehensive income | $ 51,944 | $ 23,425 | $ 177,362 | $ 88,209 |
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 | Common Stock Held in Treasury |
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 | 95,538 | ||||||
Balance at end of period (shares) at Sep. 30, 2021 | 49,276 | 8,843 | |||||
Balance at end of period at Sep. 30, 2021 | 1,293,820 | $ 493 | 1,222,432 | 849,438 | (125,761) | $ (652,782) | |
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) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation expense | 2,842 | 2,842 | |||||
Net income | 33,396 | 33,396 | |||||
Cash dividends | (11,998) | (11,998) | |||||
Currency translation adjustment | (9,971) | (9,971) | |||||
Purchases of treasury stock (shares) | 152 | ||||||
Purchases of treasury stock | (11,645) | $ (11,645) | |||||
Balance at end of period (shares) at Sep. 30, 2021 | 49,276 | 8,843 | |||||
Balance at end of period at Sep. 30, 2021 | 1,293,820 | $ 493 | 1,222,432 | 849,438 | (125,761) | $ (652,782) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (10) | ||||||
Exercise of stock options | 380 | (358) | $ 738 | ||||
Balance at beginning of period (shares) at Dec. 31, 2021 | 57,322 | 8,843 | |||||
Balance at beginning of period at Dec. 31, 2021 | 1,808,127 | $ 573 | 1,724,956 | 866,679 | (131,299) | $ (652,782) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Shares issued under share-based compensation plan | 0 | (1,281) | $ 1,281 | ||||
Shares issued under share-based compensation plan (shares) | (17) | ||||||
Share-based compensation expense | 3,075 | 3,075 | |||||
Net income | 28,005 | 28,005 | |||||
Cash dividends | (14,546) | (14,546) | |||||
Currency translation adjustment | 11,789 | 11,789 | |||||
Purchases of treasury stock (shares) | 1,048 | ||||||
Purchases of treasury stock | (72,217) | $ (72,217) | |||||
Balance at end of period (shares) at Mar. 31, 2022 | 57,322 | 9,874 | |||||
Balance at end of period at Mar. 31, 2022 | 1,764,233 | $ 573 | 1,726,750 | 880,138 | (119,510) | $ (723,718) | |
Balance at beginning of period (shares) at Dec. 31, 2021 | 57,322 | 8,843 | |||||
Balance at beginning of period at Dec. 31, 2021 | 1,808,127 | $ 573 | 1,724,956 | 866,679 | (131,299) | $ (652,782) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 173,429 | ||||||
Balance at end of period (shares) at Sep. 30, 2022 | 57,322 | 10,861 | |||||
Balance at end of period at Sep. 30, 2022 | 1,805,155 | $ 573 | 1,732,500 | 995,669 | (127,366) | $ (796,221) | |
Balance at beginning of period (shares) at Mar. 31, 2022 | 57,322 | 9,874 | |||||
Balance at beginning of period at Mar. 31, 2022 | 1,764,233 | $ 573 | 1,726,750 | 880,138 | (119,510) | $ (723,718) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation expense | 2,875 | 2,875 | |||||
Net income | 86,108 | 86,108 | |||||
Cash dividends | (14,235) | (14,235) | |||||
Currency translation adjustment | (484) | (484) | |||||
Purchases of treasury stock (shares) | 301 | ||||||
Purchases of treasury stock | (20,499) | $ (20,499) | |||||
Balance at end of period (shares) at Jun. 30, 2022 | 57,322 | 10,175 | |||||
Balance at end of period at Jun. 30, 2022 | 1,817,998 | $ 573 | 1,729,625 | 952,011 | (119,994) | $ (744,217) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Share-based compensation expense | 2,875 | 2,875 | |||||
Net income | 59,316 | 59,316 | |||||
Cash dividends | (15,658) | (15,658) | |||||
Currency translation adjustment | (7,372) | (7,372) | |||||
Purchases of treasury stock (shares) | 686 | ||||||
Purchases of treasury stock | (52,004) | $ (52,004) | |||||
Balance at end of period (shares) at Sep. 30, 2022 | 57,322 | 10,861 | |||||
Balance at end of period at Sep. 30, 2022 | $ 1,805,155 | $ 573 | $ 1,732,500 | $ 995,669 | $ (127,366) | $ (796,221) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares shares in Thousands | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Shares withheld for tax withholding obligation (in shares) | 28 | |||||
Cash dividends (USD per share) | $ 0.33 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.27 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | ||
Cash flow from operating activities: | |||
Net income | $ 173,429 | $ 95,538 | |
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||
Depreciation of leased merchandise | 262,830 | 0 | |
Provision for lease losses | 109,771 | 0 | |
Provision for loan losses | 83,453 | 0 | |
Share-based compensation expense | 8,825 | 8,092 | |
Depreciation and amortization expense | 77,495 | 32,731 | |
Amortization of debt issuance costs | 2,208 | 1,223 | |
Net amortization of premiums, discounts and unearned origination fees on finance receivables | 35,257 | 0 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (82,789) | 0 | |
Impairments and dispositions of certain other assets | 482 | 1,640 | |
Deferred income taxes, net | 46,142 | 5,622 | |
Changes in operating assets and liabilities, net of business combinations: | |||
Accounts receivable, net | (2,953) | (2,302) | |
Inventories purchased directly from customers, wholesalers or manufacturers | (11,017) | (25,592) | |
Leased merchandise, net | (360,755) | 0 | |
Prepaid expenses and other assets | (2,144) | 229 | |
Accounts payable, accrued liabilities and other liabilities | 7,256 | 16,538 | |
Income taxes | (21,692) | 4,131 | |
Net cash flow provided by operating activities | 325,798 | 137,850 | |
Cash flow from investing activities: | |||
Pawn loans, net | [1] | (74,707) | (70,637) |
Finance receivables, net | (49,634) | 0 | |
Purchases of furniture, fixtures, equipment and improvements | (29,630) | (31,608) | |
Purchases of store real property | (77,689) | (38,256) | |
Acquisitions of pawn stores, net of cash acquired | (7,072) | (49,434) | |
Net cash flow used in investing activities | (238,732) | (189,935) | |
Cash flow from financing activities: | |||
Borrowings from unsecured credit facilities | 196,000 | 338,000 | |
Repayments of unsecured credit facilities | (117,000) | (215,000) | |
Debt issuance costs paid | (1,745) | 0 | |
Purchases of treasury stock | (140,391) | (49,610) | |
Proceeds from exercise of stock options | 0 | 380 | |
Payment of withholding taxes on net share settlements of restricted stock unit awards and stock options exercised | 0 | (1,663) | |
Dividends paid | (44,439) | (35,403) | |
Net cash flow (used in) provided by financing activities | (107,575) | 36,704 | |
Effect of exchange rates on cash | 1,083 | (562) | |
Change in cash and cash equivalents | (19,426) | (15,943) | |
Cash and cash equivalents at beginning of the period | 120,046 | 65,850 | |
Cash and cash equivalents at end of the period | $ 100,620 | $ 49,907 | |
[1]Includes the funding of new pawn loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral. |
General
General | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
General | General Basis of Presentation The accompanying consolidated balance sheet as of December 31, 2021, which is derived from audited consolidated financial statements, and the unaudited consolidated financial statements, including the notes thereto, include the accounts of FirstCash Holdings, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions, and the results of operations for the 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 audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 28, 2022. The consolidated financial statements as of September 30, 2022 and 2021, and for the three month and nine month periods ended September 30, 2022 and 2021, are unaudited, but in management’s opinion include all adjustments (consisting of only normal recurring adjustments) considered necessary to present fairly the financial position, results of operations and cash flow for such interim periods. Operating results for the periods ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year. On December 17, 2021, the Company completed the acquisition of AFF (the “AFF Acquisition”), which is a leading technology-driven retail point-of-sale (“POS”) payment solutions platform primarily focused on providing lease-to-own (“LTO”) products. 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 balance sheets as of September 30, 2021 and December 31, 2021 have been reclassified in order to conform to the 2022 presentation. Recent Accounting Pronouncements 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. As the Company no longer has any LIBOR based contracts (see Note 8), ASU 2020-04 will not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Numerator: Net income $ 59,316 $ 33,396 $ 173,429 $ 95,538 Denominator: Weighted-average common shares for calculating basic earnings per share 46,902 40,453 47,518 40,745 Effect of dilutive securities: Stock options and restricted stock unit awards 120 63 84 44 Weighted-average common shares for calculating diluted earnings per share 47,022 40,516 47,602 40,789 Earnings per share: Basic $ 1.26 $ 0.83 $ 3.65 $ 2.34 Diluted $ 1.26 $ 0.82 $ 3.64 $ 2.34 |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions American First Finance Acquisition On December 17, 2021, the Company completed the AFF Acquisition. Subsequent to December 31, 2021, the Company made certain measurement period adjustments to the preliminary purchase price allocation, which resulted in a decrease in goodwill of $16.9 million. The adjusted purchase price allocation is reflected in the accompanying consolidated balance sheet as of September 30, 2022. The following table details the preliminary purchase price allocation as of December 31, 2021, the measurement period adjustments made during the nine months ended September 30, 2022 and the preliminary purchase price allocation as of September 30, 2022, subject to future measurement period adjustments (in thousands): December 31, 2022 September 30, 2021 Adjustments 2022 Accounts receivable $ 11,660 $ — $ 11,660 Finance receivables 225,261 — 225,261 Leased merchandise 139,649 — 139,649 Prepaid expenses and other current assets 4,474 (211) 4,263 Property and equipment 11,670 — 11,670 Operating lease right of use asset 491 — 491 Goodwill 503,106 (16,920) 486,186 Intangible assets 305,100 — 305,100 Accounts payable and accrued liabilities (28,357) (1,083) (29,440) Customer deposits and prepayments (11,014) — (11,014) Lease liability, current (10) — (10) Deferred tax liabilities (1) (42,608) 18,214 (24,394) Lease liability, non-current (481) — (481) Purchase price $ 1,118,941 $ — $ 1,118,941 (1) Measurement period adjustment is primarily a result of the seller finalizing the ending tax basis in the assets and liabilities acquired, which carried over to the Company. |
Operating Leases
Operating Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Operating Leases | Operating Leases Lessor For information about the Company’s revenue-generating activities as a lessor, refer to Note 2 to the consolidated financial statements included in the Company’s 2021 Annual Report on Form 10-K. All of the Company’s lease agreements are considered operating leases. Lessee The Company leases the majority of its pawnshop locations and certain administrative offices under operating leases and determines if an arrangement is or contains a lease at inception. Many leases include both lease and non-lease components for which the Company accounts separately. Lease components include rent, taxes and insurance costs while non-lease components include common area or other maintenance costs. Operating leases are included in operating lease right of use assets, lease liability, current and lease liability, non-current in the consolidated balance sheets. The Company does not have any finance leases. Leased facilities are generally leased for a term of three three The operating lease right of use asset and lease liability is recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. The Company’s leases do not provide an implicit rate and therefore, it uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. The Company utilizes a portfolio approach for determining the incremental borrowing rate to apply to groups of leases with similar characteristics. The weighted-average discount rate used to measure the lease liability as of September 30, 2022 and 2021 was 6.3% and 6.4%, 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 $0.4 million and $0.5 million during the three months ended September 30, 2022 and 2021, respectively, related to the remeasurement of these U.S. dollar denominated operating leases, which is included in loss (gain) on foreign exchange in the accompanying consolidated statements of income. During the nine months ended September 30, 2022 and 2021, the Company recognized a foreign currency gain of $0.4 million and a loss of $0.4 million, respectively, related to these U.S. dollar denominated leases. Lease expense is recognized on a straight-line basis over the lease term, with variable lease expense recognized in the period such payments are incurred. The following table details the components of lease expense included in operating expenses in the consolidated statements of income during the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Operating lease expense $ 31,988 $ 31,595 $ 95,590 $ 94,034 Variable lease expense (1) 4,216 4,120 12,619 11,893 Total operating lease expense $ 36,204 $ 35,715 $ 108,209 $ 105,927 (1) Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term. The following table details the maturity of lease liabilities for all operating leases as of September 30, 2022 (in thousands): Three months ending December 31, 2022 $ 28,211 2023 101,538 2024 79,146 2025 52,542 2026 32,895 Thereafter 32,452 Total $ 326,784 Less amount of lease payments representing interest (38,498) Total present value of lease payments $ 288,286 The following table details supplemental cash flow information related to operating leases for the nine months ended September 30, 2022 and 2021 (in thousands): Nine Months Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 87,040 $ 85,565 Leased assets obtained in exchange for new operating lease liabilities $ 66,442 $ 78,280 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements The Company’s financial assets and liabilities as of September 30, 2022 and December 31, 2021 that are measured at fair value on a recurring basis are as follows (in thousands): Estimated Fair Value September 30, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial liabilities: Contingent AFF acquisition consideration (1) $ 26,760 $ — $ — $ 26,760 (1) The contingent consideration related to the AFF Acquisition is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. Estimated Fair Value December 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial liabilities: Contingent AFF acquisition consideration (1) $ 109,549 $ — $ — $ 109,549 (1) The current portion of $95.6 million is included in accounts payable and accrued liabilities and the non-current portion of $14.0 million is included in other liabilities in the accompanying consolidated balance sheets. The Company revalues the contingent consideration related to the AFF Acquisition to fair value at the end of each reporting period. The estimate of the fair value of contingent consideration related to the AFF Acquisition is determined by applying a Monte Carlo simulation, which includes inputs not observable in the market, such as the risk-free rate, risk-adjusted discount rate, the volatility of the underlying financial metrics and projected financial forecast of AFF over the earn-out period, and therefore represents a Level 3 measurement. Significant increases or decreases in these inputs could result in a significantly lower or higher fair value measurement of the contingent consideration related to the AFF Acquisition. The changes in financial assets and liabilities that are measured and recorded at fair value on a recurring basis using Level 3 fair value measurements for the three and nine months ended September 30, 2022 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2022 Contingent AFF acquisition consideration at beginning of the period $ 46,560 $ 109,549 Change in fair value (1) (19,800) (82,789) Contingent AFF acquisition consideration at end of the period $ 26,760 $ 26,760 (1) The Company recognized a gain of $19.8 million and $82.8 million during the three and nine months ended September 30, 2022, respectively, as a result of the change in fair value of the contingent consideration related to the AFF Acquisition, which is included in gain on revaluation of contingent acquisition consideration in the accompanying consolidated statements of income. There were no transfers in or out of Level 1, 2 or 3 during the three and nine months ended September 30, 2022, and the Company did not have any financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2021. Fair Value Measurements on a Non-Recurring Basis The Company measures non-financial assets and liabilities, such as property and equipment and intangible assets, at fair value on a non-recurring basis or when events or circumstances indicate that the carrying amount of the assets may be impaired. Financial Assets and Liabilities Not Measured at Fair Value, But for Which Fair Value is Disclosed The Company’s financial assets and liabilities as of September 30, 2022, September 30, 2021 and December 31, 2021 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 100,620 $ 100,620 $ 100,620 $ — $ — Accounts receivable, net 58,435 58,435 — — 58,435 Pawn loans 404,227 404,227 — — 404,227 Finance receivables, net (1) 111,945 193,750 — — 193,750 $ 675,227 $ 757,032 $ 100,620 $ — $ 656,412 Financial liabilities: Revolving unsecured credit facilities $ 338,000 $ 338,000 $ — $ 338,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 887,000 — 887,000 — $ 1,388,000 $ 1,225,000 $ — $ 1,225,000 $ — (1) Finance receivables, gross as of September 30, 2022 was $188.9 million. See Note 6. Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 49,907 $ 49,907 $ 49,907 $ — $ — Accounts receivable, net 43,492 43,492 — — 43,492 Pawn loans 348,993 348,993 — — 348,993 $ 442,392 $ 442,392 $ 49,907 $ — $ 392,485 Financial liabilities: Revolving unsecured credit facilities $ 246,000 $ 246,000 $ — $ 246,000 $ — Senior unsecured notes (outstanding principal) 500,000 516,000 — 516,000 — $ 746,000 $ 762,000 $ — $ 762,000 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 120,046 $ 120,046 $ 120,046 $ — $ — Accounts receivable, net 55,356 55,356 — — 55,356 Pawn loans 347,973 347,973 — — 347,973 Finance receivables, net (1) 181,021 233,000 — — 233,000 $ 704,396 $ 756,375 $ 120,046 $ — $ 636,329 Financial liabilities: Revolving unsecured credit facilities $ 259,000 $ 259,000 $ — $ 259,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 1,058,000 — 1,058,000 — $ 1,309,000 $ 1,317,000 $ — $ 1,317,000 $ — (1) Finance receivables, gross as of December 31, 2021 were $220.3 million. See Note 6. As cash and cash equivalents have maturities of less than three months, the carrying value of cash and cash equivalents approximates fair value. Due to their short-term maturities, the carrying value of pawn loans and accounts receivable, net approximate fair value. Finance receivables are measured at amortized cost, net of an allowance for loan losses on the consolidated balance sheets. In estimating fair value for finance receivables, the Company utilized a discounted cash flow methodology. The Company used various unobservable inputs reflecting its own assumptions, such as contractual future principal and interest cash flows, future charge-off rates and discount rates (which consider current interest rates and are adjusted for credit risk, among other factors). The carrying value of the unsecured credit facilities approximates fair value as of September 30, 2022, September 30, 2021 and December 31, 2021. 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 the prevailing secured overnight financing rate (“SOFR”) or the Mexican Central Bank’s interbank equilibrium rate (“TIIE”) and reprice with any changes in SOFR or TIIE. The fair value of the senior unsecured notes is estimated based on quoted prices in markets that are not active. |
Finance Receivables, Net
Finance Receivables, Net | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Finance Receivables, Net | Finance Receivables, Net Finance receivables, net consist of the following (in thousands): As of September 30, As of 2022 2021 2021 Finance receivables, gross $ 188,897 $ — $ 220,329 Fair value premium on non-PCD finance receivables (1) 6,839 — 40,251 Non-credit discount on PCD finance receivables (2) — — (3,521) Merchant partner discounts and premiums, net (2,044) — (104) Unearned origination fees (3,334) — (360) Finance receivables, amortized cost 190,358 — 256,595 Less allowance for loan losses (78,413) — (75,574) Finance receivables, net $ 111,945 $ — $ 181,021 (1) Represents the difference between the initial fair value and the unpaid principal balance as of the date of the AFF Acquisition, which is recognized through interest income on an effective yield basis over the lives of the related non-purchased credit deteriorated (“PCD”) finance receivables. (2) Represents the difference between the unpaid principal balance and the amortized cost basis as of the date of the AFF Acquisition, which is recognized through interest income on an effective yield basis over the lives of the related PCD finance receivables. Changes in the allowance for loan losses were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Balance at beginning of period $ 73,936 $ — $ 75,574 $ — Provision for loan losses 31,956 — 83,453 — Charge-offs (28,642) — (84,629) — Recoveries 1,163 — 4,015 — Balance at end of period $ 78,413 $ — $ 78,413 $ — The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of September 30, 2022, by origination year (in thousands): 2022 2021 2020 Total FICO score category (1) : No FICO score identified or obtained $ 39,639 $ 13,067 $ 113 $ 52,819 599 or less 44,966 16,299 539 61,804 Between 600 and 699 45,125 15,755 567 61,447 700 or greater 5,531 1,841 77 7,449 Finance receivables before fair value adjustments $ 135,261 $ 46,962 $ 1,296 183,519 Fair value premium on non-PCD finance receivables 6,839 Finance receivables, amortized cost $ 190,358 (1) FICO score as determined at the time of origination. The following is an aging of the amortized cost of finance receivables as of September 30, 2022, by origination year (in thousands): 2022 2021 2020 Total Delinquency: 1 to 30 days past due $ 11,149 $ 4,468 $ 150 $ 15,767 31 to 60 days past due 7,118 3,233 100 10,451 61 to 90 days past due (1) 5,971 3,292 120 9,383 Total past due finance receivables before fair value adjustments 24,238 10,993 370 35,601 Current finance receivables before fair value adjustments 111,023 35,969 926 147,918 Finance receivables before fair value adjustments $ 135,261 $ 46,962 $ 1,296 183,519 Fair value premium on non-PCD finance receivables 6,839 Finance receivables, amortized cost $ 190,358 |
Leased Merchandise, Net
Leased Merchandise, Net | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Leased Merchandise, Net | Leased Merchandise, Net Leased merchandise, net consists of the following (in thousands): As of September 30, As of 2022 2021 2021 Leased merchandise (1) $ 292,374 $ — $ 156,280 Processing fees (3,449) — (440) Merchant partner discounts and premiums, net 2,114 — 310 Accumulated depreciation (81,343) — (6,764) Leased merchandise, before allowance for lease losses 209,696 — 149,386 Allowance for lease losses (77,599) — (5,442) Leased merchandise, net $ 132,097 $ — $ 143,944 (1) Acquired leased merchandise in the AFF Acquisition was recorded at fair value. Changes in the allowance for lease losses were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Balance at beginning of period $ 69,101 $ — $ 5,442 $ — Provision for lease losses 31,916 — 109,771 — Charge-offs (24,538) — (40,859) — Recoveries 1,120 — 3,245 — Balance at end of period $ 77,599 $ — $ 77,599 $ — |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs on the senior unsecured notes (in thousands): As of September 30, As of 2022 2021 2021 Revolving unsecured credit facility, maturing 2027 (1) $ 338,000 $ 246,000 $ 259,000 Senior unsecured notes: 4.625% senior unsecured notes due 2028 (2) 493,226 493,499 492,499 5.625% senior unsecured notes due 2030 (3) 542,000 — 541,405 Total senior unsecured notes 1,035,226 493,499 1,033,904 Total long-term debt $ 1,373,226 $ 739,499 $ 1,292,904 (1) Debt issuance costs related to the Company’s revolving unsecured credit facilities are included in other assets in the accompanying consolidated balance sheets. (2) As of September 30, 2022, September 30, 2021 and December 31, 2021, deferred debt issuance costs of $6.8 million, $6.5 million and $7.5 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2028 in the accompanying consolidated balance sheets. (3) As of September 30, 2022 and December 31, 2021, deferred debt issuance costs of $8.0 million and $8.6 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2030 in the accompanying consolidated balance sheets. Revolving Unsecured Credit Facility During the period from January 1, 2022 through August 30, 2022, 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, which was scheduled to mature on December 19, 2024. The Credit Facility charged interest, at the Company’s option, of either (1) the prevailing LIBOR (with interest periods of 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%. On August 30, 2022, the Credit Facility was amended (the “2022 Amendment”) in order to increase the total lender commitment, extend the term of the Credit Facility, amend certain financial covenants and modify the benchmark interest rate to SOFR. Under the 2022 Amendment, the total lender commitment was increased from $500.0 million to $590.0 million and the term of the Credit Facility was extended to August 30, 2027. In addition, certain financial covenants were amended, as described below. The financial covenant limiting the domestic leverage ratio was eliminated. The permitted consolidated leverage ratio (defined as consolidated EBITDA, adjusted for certain customary items as more fully set forth in the Credit Facility (“Adjusted EBITDA”), divided by outstanding consolidated debt), which was previously scheduled to decrease to 3.0 times effective December 31, 2022, will remain at the current level of 3.5 times Adjusted EBITDA through December 31, 2023 when it decreases to 3.25 times Adjusted EBITDA through December 31, 2024. The consolidated leverage ratio will revert to the previously scheduled ratio of 3.0 times Adjusted EBITDA effective January 1, 2025. The 2022 Amendment also includes additional limits to certain restricted payments when the consolidated leverage ratio is equal to or greater than 3.0 times Adjusted EBITDA, which are more fully described in the 2022 Amendment. The Credit Facility now bears interest at the Borrower’s option of either (i) the prevailing SOFR (with interest periods of 1, 3 or 6 months at the Company’s option) plus a fixed spread of 2.5% and a fixed SOFR adjustment of 0.1% or (ii) the prevailing prime or base rate plus a fixed spread of 1.5%. As of September 30, 2022, the Company had $338.0 million in outstanding borrowings and $3.2 million in outstanding letters of credit under the Credit Facility, leaving $248.8 million available for future borrowings, subject to certain financial covenants. The agreement has an interest rate floor of 0%. Additionally, the Company is required to pay an annual commitment fee of 0.325% on the average daily unused portion of the Credit Facility commitment. The weighted-average interest rate on amounts outstanding under the Credit Facility at September 30, 2022 was 5.39% based on 1-month SOFR. Under the terms of the Credit Facility, the Company is required to maintain certain financial ratios and comply with certain financial covenants. The Credit Facility also contains customary restrictions on the Company’s ability to incur additional debt, grant liens, make investments, consummate acquisitions and similar negative covenants with customary carve-outs and baskets. The Company was in compliance with the covenants of the Credit Facility as of September 30, 2022. During the nine months ended September 30, 2022, the Company received net proceeds of $79.0 million from borrowings pursuant to the Credit Facility. Revolving Unsecured Uncommitted Credit Facility As of September 30, 2022, 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 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 September 30, 2022. At September 30, 2022, 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 “2028 Notes”), all of which are currently outstanding. Interest on the 2028 Notes is payable semi-annually in arrears on March 1 and September 1. The 2028 Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its Credit Facility. The 2028 Notes will permit the Company to make restricted payments, such as purchasing shares of its stock and paying cash dividends, in an unlimited amount if, after giving pro forma effect to the incurrence of any indebtedness to make such payment, the Company's consolidated total debt ratio is less than 2.75 to 1. The consolidated total debt ratio is defined generally in the indenture governing the 2028 Notes as the ratio of (1) the total consolidated debt of the Company minus cash and cash equivalents of the Company to (2) the Company’s consolidated trailing twelve months EBITDA, as adjusted to exclude certain non-recurring expenses and giving pro forma effect to operations acquired during the measurement period. As of September 30, 2022, the Company’s consolidated total debt ratio was 2.8 to 1. While the 2028 Notes generally limit the Company’s ability to make restricted payments if the consolidated total debt ratio is greater than 2.75 to 1, restricted payments are allowable within certain permitted baskets, which currently provide the Company with continued flexibility to make restricted payments when the Company’s consolidated total debt ratio is greater than 2.75 to 1. Senior Unsecured Notes Due 2030 On December 13, 2021, the Company issued $550.0 million of 5.625% senior unsecured notes due on January 1, 2030 (the “2030 Notes”), all of which are currently outstanding. Interest on the 2030 Notes is payable semi-annually in arrears on January 1 and July 1. The 2030 Notes are fully and unconditionally guaranteed on a senior unsecured basis jointly and severally by all of the Company's existing and future domestic subsidiaries that guarantee its Credit Facility. The 2030 Notes will permit the Company to make restricted payments, such as purchasing shares of its stock and paying cash dividends, in an unlimited amount if, after giving pro forma effect to the incurrence of any indebtedness to make such payment, the Company's consolidated total debt ratio is less than 3.0 to 1. The consolidated total debt ratio is defined generally in the indenture governing the 2030 Notes as the ratio of (1) the total consolidated debt of the Company minus cash and cash equivalents of the Company to (2) the Company’s consolidated trailing twelve months EBITDA, as adjusted to exclude certain non-recurring expenses and giving pro forma effect to operations acquired during the measurement period. As of September 30, 2022, the Company’s consolidated total debt ratio was 2.8 to 1. While the 2030 Notes generally limit the Company’s ability to make restricted payments if the consolidated total debt ratio is greater than 3.0 to 1, restricted payments are allowable within certain permitted baskets, which currently provides the Company with continued flexibility to make restricted payments when the Company’s consolidated total debt ratio is greater than 3.0 to 1. The Company utilized the net proceeds from the offering of the 2030 Notes to finance the cash consideration and transaction expenses for the AFF Acquisition, including the repayment, in full, of the outstanding debt under AFF’s credit facility at the closing of the AFF Acquisition, payment of fees and expenses related to the note offering and reduction of the outstanding balance on the Credit Facility. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company, in the ordinary course of business, is a party to various legal and regulatory proceedings and other general claims. Although no assurances can be given, in management’s opinion, such outstanding proceedings are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company believes it has meritorious defenses to all of the claims described below, and intends to vigorously defend against such claims. However, legal and regulatory proceedings involve an inherent level of uncertainty and no assurances can be given regarding the ultimate outcome of any such matters or whether an adverse outcome would not have a material adverse impact on the Company’s financial position, results of operations, or cash flows. At this stage, the Company is unable to determine whether a future loss will be incurred for any of its outstanding legal and regulatory proceedings or estimate a range of loss with respect to such proceeding, if any, and accordingly, no amounts have been accrued in the Company’s financial statements for legal and regulatory proceedings. On January 14, 2022, plaintiff Genesee County Employees’ Retirement System filed a putative shareholder securities class action lawsuit (the “Litigation”) in the United States District Court for the Northern District of Texas against the Company and certain of its current officers styled Genesee County Employees’ Retirement System v. FirstCash Holdings, Inc., et al ., Civil Action No. 4:22-CV-00033-P (N.D. Tex.). The complaint alleges that the defendants made materially false and/or misleading statements that caused losses to investors, including that the Company failed to disclose in public statements that the Company engaged in widespread and systemic violations of the Military Lending Act (the “MLA”). The Litigation does not quantify any alleged damages, but, in addition to attorneys’ fees and costs, it seeks to recover damages on behalf of the plaintiff and other persons who purchased or otherwise acquired Company stock during the putative class period from February 1, 2018 through November 12, 2021 at allegedly inflated prices and purportedly suffered financial harm as a result. On June 8, 2022, the Company and named defendants filed a motion to dismiss, which remains pending. The Company was named as a nominal defendant and certain of the Company’s current and former directors and officers were named as defendants in a shareholder derivative lawsuit filed on July 19, 2022 in the United States District Court for the Northern District of Texas and styled Treppel Family Trust U/A 08/18/18 Lawrence A. Treppel and Geri D. Treppel for the Benefit of Geri D. Treppel and Larry A. Treppel, Derivatively on Behalf of FirstCash Holdings, Inc., v. Rick L. Wessel, et. al , Case 4:22-cv-00623-P (N.D. Tex). The complaint makes similar allegations as the Litigation and alleges a single count for breach of fiduciary duty against the named derivative defendants. The action does not quantify any alleged damages, but, in addition to attorneys’ fees and costs and certain equitable relief, the derivative plaintiff seeks to recover damages on behalf of the Company for purported financial harm and to have the court order changes in the Company’s corporate governance. On November 12, 2021, the CFPB initiated a civil action in the United States District Court for the Northern District of Texas against FirstCash, Inc. and Cash America West, Inc., two of the Company’s subsidiaries, alleging violations of the MLA in connection with pawn transactions. The CFPB also alleges that these same alleged violations of the MLA constitute breaches of a 2013 CFPB consent order entered into by its predecessor company that, among other things, allegedly required the company and its successors to cease and desist from further MLA violations. The CFPB is seeking an injunction, redress for affected borrowers and a civil monetary penalty. On March 28, 2022, the CFPB filed a motion to strike certain affirmative defenses of the Company, which motion remains pending. On April 27, 2022, the Company filed a motion for partial summary judgment, which remains pending. On October 24, 2022, the Company filed a motion to dismiss the lawsuit due to the funding structure of the CFPB, which the motion alleges is unconstitutional. This motion to dismiss follows the recent decision by the Fifth Circuit Court of Appeals, where the U.S. District Court for the Northern District of Texas sits, finding that the CFPB is unconstitutionally structured. The motion to dismiss remains pending. On November 7, 2018, plaintiffs Maria Andrade and Shaun Caulkins filed a complaint in the United States District Court for the Northern District of California against AFF alleging that AFF is an unlicensed lender that made usurious loans through certain California merchants in violation of California law. Caulkins was dismissed on October 14, 2020, and the Court denied class certification in September 2022. The case is scheduled to proceed to trial on an individual basis on February 21, 2023. In addition to money damages, including disgorgement of all amounts paid to AFF, actual and statutory damages, and attorneys’ fees, Andrade seeks to enjoin AFF from servicing California customers under its current practices. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company organizes its operations into three reportable segments as follows: • U.S. pawn • Latin America pawn • Retail POS payment solutions (AFF) Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, loss (gain) on foreign exchange, merger and acquisition expenses, gain on revaluation of contingent acquisition consideration, and other expenses (income), net, are presented on a consolidated basis and are not allocated between the U.S. pawn segment, Latin America pawn segment or retail POS payment solutions segment. Intersegment transactions relate to U.S. pawn stores offering AFF’s LTO payment solution as a payment option in its stores and are eliminated to arrive at consolidated totals. The following tables present reportable segment information for the three and nine month periods ended September 30, 2022 and 2021 as well as segment earning assets (in thousands): Three Months Ended September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 195,854 $ 107,591 $ — $ (2,546) (1) $ 300,899 Pawn loan fees 96,222 49,505 — — 145,727 Leased merchandise income — — 158,089 — 158,089 Interest and fees on finance receivables — — 48,846 — 48,846 Wholesale scrap jewelry sales 12,956 5,626 — — 18,582 Total revenue 305,032 162,722 206,935 (2,546) 672,143 Cost of revenue: Cost of retail merchandise sold 114,899 68,642 — (1,342) (1) 182,199 Depreciation of leased merchandise — — 86,703 (184) (1) 86,519 Provision for lease losses — — 32,350 (434) (1) 31,916 Provision for loan losses — — 31,956 — 31,956 Cost of wholesale scrap jewelry sold 11,338 4,923 — — 16,261 Total cost of revenue 126,237 73,565 151,009 (1,960) 348,851 Net revenue 178,795 89,157 55,926 (586) (1) 323,292 Expenses and other income: Operating expenses 102,508 47,979 35,060 — 185,547 Administrative expenses — — — 36,951 36,951 Depreciation and amortization 5,806 4,566 775 14,824 25,971 Interest expense — — — 18,282 18,282 Interest income — — — (206) (206) Loss on foreign exchange — — — 255 255 Merger and acquisition expenses — — — 733 733 Gain on revaluation of contingent acquisition consideration — — — (19,800) (19,800) Other expenses (income), net — — — 164 164 Total expenses and other income 108,314 52,545 35,835 51,203 247,897 Income (loss) before income taxes $ 70,481 $ 36,612 $ 20,091 $ (51,789) $ 75,395 (1) Represents the elimination of intersegment transactions related to U.S. pawn stores offering AFF’s LTO payment solution as a payment option in its stores. Nine Months Ended September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 596,165 $ 308,356 $ — $ (2,546) (1) $ 901,975 Pawn loan fees 274,304 137,309 — — 411,613 Leased merchandise income — — 455,736 — 455,736 Interest and fees on finance receivables — — 135,039 — 135,039 Wholesale scrap jewelry sales 45,153 30,082 — — 75,235 Total revenue 915,622 475,747 590,775 (2,546) 1,979,598 Cost of revenue: Cost of retail merchandise sold 349,007 196,057 — (1,342) (1) 543,722 Depreciation of leased merchandise — — 263,014 (184) (1) 262,830 Provision for lease losses — — 110,205 (434) (1) 109,771 Provision for loan losses — — 83,453 — 83,453 Cost of wholesale scrap jewelry sold 39,150 25,221 — — 64,371 Total cost of revenue 388,157 221,278 456,672 (1,960) 1,064,147 Net revenue 527,465 254,469 134,103 (586) (1) 915,451 Expenses and other income: Operating expenses 302,572 141,574 95,252 — 539,398 Administrative expenses — — — 110,882 110,882 Depreciation and amortization 17,261 13,520 2,156 44,558 77,495 Interest expense — — — 50,749 50,749 Interest income — — — (1,104) (1,104) Gain on foreign exchange — — — (198) (198) Merger and acquisition expenses — — — 1,712 1,712 Gain on revaluation of contingent acquisition consideration — — — (82,789) (82,789) Other expenses (income), net — — — (2,721) (2,721) Total expenses and other income 319,833 155,094 97,408 121,089 693,424 Income (loss) before income taxes $ 207,632 $ 99,375 $ 36,695 $ (121,675) $ 222,027 As of September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Earning assets: Pawn loans $ 279,645 $ 124,582 $ — $ — $ 404,227 Finance receivables, net — — 111,945 — 111,945 Inventories 204,359 91,069 — — 295,428 Leased merchandise, net — — 132,683 (586) (1) 132,097 (1) Represents the elimination of intersegment transactions related to U.S. pawn stores offering AFF’s LTO payment solution as a payment option in its stores. Three Months Ended September 30, 2021 U.S. Latin America Corporate/ Consolidated Revenue: Retail merchandise sales $ 167,257 $ 101,469 $ — $ 268,726 Pawn loan fees 76,674 44,691 — 121,365 Wholesale scrap jewelry sales 4,168 5,415 — 9,583 Total revenue 248,099 151,575 — 399,674 Cost of revenue: Cost of retail merchandise sold 93,326 64,731 — 158,057 Cost of wholesale scrap jewelry sold 3,778 4,750 — 8,528 Total cost of revenue 97,104 69,481 — 166,585 Net revenue 150,995 82,094 — 233,089 Expenses and other income: Operating expenses 93,247 45,372 — 138,619 Administrative expenses — — 30,208 30,208 Depreciation and amortization 5,662 4,591 964 11,217 Interest expense — — 7,961 7,961 Interest income — — (143) (143) Loss on foreign exchange — — 558 558 Merger and acquisition expenses — — 12 12 Other expenses (income), net — — 361 361 Total expenses and other income 98,909 49,963 39,921 188,793 Income (loss) before income taxes $ 52,086 $ 32,131 $ (39,921) $ 44,296 Nine Months Ended September 30, 2021 U.S. Latin America Corporate/ Consolidated Revenue: Retail merchandise sales $ 530,468 $ 275,867 $ — $ 806,335 Pawn loan fees 220,013 126,783 — 346,796 Wholesale scrap jewelry sales 20,217 23,843 — 44,060 Total revenue 770,698 426,493 — 1,197,191 Cost of revenue: Cost of retail merchandise sold 295,455 173,179 — 468,634 Cost of wholesale scrap jewelry sold 16,678 20,979 — 37,657 Total cost of revenue 312,133 194,158 — 506,291 Net revenue 458,565 232,335 — 690,900 Expenses and other income: Operating expenses 282,068 133,003 — 415,071 Administrative expenses — — 88,605 88,605 Depreciation and amortization 16,391 13,388 2,952 32,731 Interest expense — — 22,389 22,389 Interest income — — (420) (420) Loss on foreign exchange — — 248 248 Merger and acquisition expenses — — 1,264 1,264 Other expenses (income), net — — 1,640 1,640 Total expenses and other income 298,459 146,391 116,678 561,528 Income (loss) before income taxes $ 160,106 $ 85,944 $ (116,678) $ 129,372 As of September 30, 2021 U.S. Latin America Consolidated Earning assets: Pawn loans $ 242,825 $ 106,168 $ 348,993 Inventories 175,047 79,213 254,260 |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated balance sheet as of December 31, 2021, which is derived from audited consolidated financial statements, and the unaudited consolidated financial statements, including the notes thereto, include the accounts of FirstCash Holdings, Inc. and its wholly-owned subsidiaries (together, the “Company”). The Company regularly makes acquisitions, and the results of operations for the 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 audited consolidated financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on February 28, 2022. The consolidated financial statements as of September 30, 2022 and 2021, and for the three month and nine month periods ended September 30, 2022 and 2021, are unaudited, but in management’s opinion include all adjustments (consisting of only normal recurring adjustments) considered necessary to present fairly the financial position, results of operations and cash flow for such interim periods. Operating results for the periods ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year. On December 17, 2021, the Company completed the acquisition of AFF (the “AFF Acquisition”), which is a leading technology-driven retail point-of-sale (“POS”) payment solutions platform primarily focused on providing lease-to-own (“LTO”) products. 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 balance sheets as of September 30, 2021 and December 31, 2021 have been reclassified in order to conform to the 2022 presentation. |
Recent Accounting Pronouncements | 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. As the Company no longer has any LIBOR based contracts (see Note 8), ASU 2020-04 will not have a material effect on the Company’s current financial position, results of operations or financial statement disclosures.In March 2022, the Financial Accounting Standards Board issued ASU No 2022-02, “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” (“ASU 2022-02”). ASU 2022-02 eliminates the accounting guidance for troubled debt restructurings by creditors while enhancing disclosure requirements for certain loan refinancing and restructurings by creditors made to borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years for entities. Early adoption is permitted if an entity has adopted the CECL accounting standard. Except for expanded disclosures to its vintage disclosures, the Company does not expect ASU 2022-02 to have a material effect on the Company’s current financial position, results of operations or financial statements |
Fair Value Measurement | The fair value of financial instruments is determined by reference to various market data and other valuation techniques, as appropriate. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The three fair value levels are (from highest to lowest): Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Numerator: Net income $ 59,316 $ 33,396 $ 173,429 $ 95,538 Denominator: Weighted-average common shares for calculating basic earnings per share 46,902 40,453 47,518 40,745 Effect of dilutive securities: Stock options and restricted stock unit awards 120 63 84 44 Weighted-average common shares for calculating diluted earnings per share 47,022 40,516 47,602 40,789 Earnings per share: Basic $ 1.26 $ 0.83 $ 3.65 $ 2.34 Diluted $ 1.26 $ 0.82 $ 3.64 $ 2.34 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Preliminary Allocations of Purchase Price | The following table details the preliminary purchase price allocation as of December 31, 2021, the measurement period adjustments made during the nine months ended September 30, 2022 and the preliminary purchase price allocation as of September 30, 2022, subject to future measurement period adjustments (in thousands): December 31, 2022 September 30, 2021 Adjustments 2022 Accounts receivable $ 11,660 $ — $ 11,660 Finance receivables 225,261 — 225,261 Leased merchandise 139,649 — 139,649 Prepaid expenses and other current assets 4,474 (211) 4,263 Property and equipment 11,670 — 11,670 Operating lease right of use asset 491 — 491 Goodwill 503,106 (16,920) 486,186 Intangible assets 305,100 — 305,100 Accounts payable and accrued liabilities (28,357) (1,083) (29,440) Customer deposits and prepayments (11,014) — (11,014) Lease liability, current (10) — (10) Deferred tax liabilities (1) (42,608) 18,214 (24,394) Lease liability, non-current (481) — (481) Purchase price $ 1,118,941 $ — $ 1,118,941 (1) Measurement period adjustment is primarily a result of the seller finalizing the ending tax basis in the assets and liabilities acquired, which carried over to the Company. |
Operating Leases (Tables)
Operating Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Lease Expense and Supplemental Cash Flow Information | The following table details the components of lease expense included in operating expenses in the consolidated statements of income during the three and nine months ended September 30, 2022 and 2021 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Operating lease expense $ 31,988 $ 31,595 $ 95,590 $ 94,034 Variable lease expense (1) 4,216 4,120 12,619 11,893 Total operating lease expense $ 36,204 $ 35,715 $ 108,209 $ 105,927 (1) Variable lease costs consist primarily of taxes, insurance and common area or other maintenance costs paid based on actual costs incurred by the lessor and can therefore vary over the lease term. The following table details supplemental cash flow information related to operating leases for the nine months ended September 30, 2022 and 2021 (in thousands): Nine Months Ended September 30, 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 87,040 $ 85,565 Leased assets obtained in exchange for new operating lease liabilities $ 66,442 $ 78,280 |
Schedule of Maturity of Lease Liabilities | The following table details the maturity of lease liabilities for all operating leases as of September 30, 2022 (in thousands): Three months ending December 31, 2022 $ 28,211 2023 101,538 2024 79,146 2025 52,542 2026 32,895 Thereafter 32,452 Total $ 326,784 Less amount of lease payments representing interest (38,498) Total present value of lease payments $ 288,286 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities as of September 30, 2022 and December 31, 2021 that are measured at fair value on a recurring basis are as follows (in thousands): Estimated Fair Value September 30, Fair Value Measurements Using 2022 Level 1 Level 2 Level 3 Financial liabilities: Contingent AFF acquisition consideration (1) $ 26,760 $ — $ — $ 26,760 (1) The contingent consideration related to the AFF Acquisition is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. Estimated Fair Value December 31, Fair Value Measurements Using 2021 Level 1 Level 2 Level 3 Financial liabilities: Contingent AFF acquisition consideration (1) $ 109,549 $ — $ — $ 109,549 (1) The current portion of $95.6 million is included in accounts payable and accrued liabilities and the non-current portion of $14.0 million is included in other liabilities in the accompanying consolidated balance sheets. |
Schedule of Fair Value, Changes in Assets and Liabilities Measured on Recurring Basis Level 3 Fair Value Measurement | The changes in financial assets and liabilities that are measured and recorded at fair value on a recurring basis using Level 3 fair value measurements for the three and nine months ended September 30, 2022 are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2022 September 30, 2022 Contingent AFF acquisition consideration at beginning of the period $ 46,560 $ 109,549 Change in fair value (1) (19,800) (82,789) Contingent AFF acquisition consideration at end of the period $ 26,760 $ 26,760 (1) The Company recognized a gain of $19.8 million and $82.8 million during the three and nine months ended September 30, 2022, respectively, as a result of the change in fair value of the contingent consideration related to the AFF Acquisition, which is included in gain on revaluation of contingent acquisition consideration in the accompanying consolidated statements of income. |
Schedule of Fair Value by Balance Sheet Grouping | The Company’s financial assets and liabilities as of September 30, 2022, September 30, 2021 and December 31, 2021 that are not measured at fair value in the consolidated balance sheets are as follows (in thousands): Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2022 2022 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 100,620 $ 100,620 $ 100,620 $ — $ — Accounts receivable, net 58,435 58,435 — — 58,435 Pawn loans 404,227 404,227 — — 404,227 Finance receivables, net (1) 111,945 193,750 — — 193,750 $ 675,227 $ 757,032 $ 100,620 $ — $ 656,412 Financial liabilities: Revolving unsecured credit facilities $ 338,000 $ 338,000 $ — $ 338,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 887,000 — 887,000 — $ 1,388,000 $ 1,225,000 $ — $ 1,225,000 $ — (1) Finance receivables, gross as of September 30, 2022 was $188.9 million. See Note 6. Carrying Value Estimated Fair Value September 30, September 30, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 49,907 $ 49,907 $ 49,907 $ — $ — Accounts receivable, net 43,492 43,492 — — 43,492 Pawn loans 348,993 348,993 — — 348,993 $ 442,392 $ 442,392 $ 49,907 $ — $ 392,485 Financial liabilities: Revolving unsecured credit facilities $ 246,000 $ 246,000 $ — $ 246,000 $ — Senior unsecured notes (outstanding principal) 500,000 516,000 — 516,000 — $ 746,000 $ 762,000 $ — $ 762,000 $ — Carrying Value Estimated Fair Value December 31, December 31, Fair Value Measurements Using 2021 2021 Level 1 Level 2 Level 3 Financial assets: Cash and cash equivalents $ 120,046 $ 120,046 $ 120,046 $ — $ — Accounts receivable, net 55,356 55,356 — — 55,356 Pawn loans 347,973 347,973 — — 347,973 Finance receivables, net (1) 181,021 233,000 — — 233,000 $ 704,396 $ 756,375 $ 120,046 $ — $ 636,329 Financial liabilities: Revolving unsecured credit facilities $ 259,000 $ 259,000 $ — $ 259,000 $ — Senior unsecured notes (outstanding principal) 1,050,000 1,058,000 — 1,058,000 — $ 1,309,000 $ 1,317,000 $ — $ 1,317,000 $ — |
Finance Receivables, Net (Table
Finance Receivables, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Finance Receivables, Net | Finance receivables, net consist of the following (in thousands): As of September 30, As of 2022 2021 2021 Finance receivables, gross $ 188,897 $ — $ 220,329 Fair value premium on non-PCD finance receivables (1) 6,839 — 40,251 Non-credit discount on PCD finance receivables (2) — — (3,521) Merchant partner discounts and premiums, net (2,044) — (104) Unearned origination fees (3,334) — (360) Finance receivables, amortized cost 190,358 — 256,595 Less allowance for loan losses (78,413) — (75,574) Finance receivables, net $ 111,945 $ — $ 181,021 (1) Represents the difference between the initial fair value and the unpaid principal balance as of the date of the AFF Acquisition, which is recognized through interest income on an effective yield basis over the lives of the related non-purchased credit deteriorated (“PCD”) finance receivables. (2) Represents the difference between the unpaid principal balance and the amortized cost basis as of the date of the AFF Acquisition, which is recognized through interest income on an effective yield basis over the lives of the related PCD finance receivables. |
Schedule of Allowance for Credit Losses | Changes in the allowance for loan losses were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Balance at beginning of period $ 73,936 $ — $ 75,574 $ — Provision for loan losses 31,956 — 83,453 — Charge-offs (28,642) — (84,629) — Recoveries 1,163 — 4,015 — Balance at end of period $ 78,413 $ — $ 78,413 $ — |
Schedule of Finance Receivables Credit Quality Indicators | The following is an assessment of the credit quality indicators of the amortized cost of finance receivables as of September 30, 2022, by origination year (in thousands): 2022 2021 2020 Total FICO score category (1) : No FICO score identified or obtained $ 39,639 $ 13,067 $ 113 $ 52,819 599 or less 44,966 16,299 539 61,804 Between 600 and 699 45,125 15,755 567 61,447 700 or greater 5,531 1,841 77 7,449 Finance receivables before fair value adjustments $ 135,261 $ 46,962 $ 1,296 183,519 Fair value premium on non-PCD finance receivables 6,839 Finance receivables, amortized cost $ 190,358 |
Financing Receivable, Past Due | The following is an aging of the amortized cost of finance receivables as of September 30, 2022, by origination year (in thousands): 2022 2021 2020 Total Delinquency: 1 to 30 days past due $ 11,149 $ 4,468 $ 150 $ 15,767 31 to 60 days past due 7,118 3,233 100 10,451 61 to 90 days past due (1) 5,971 3,292 120 9,383 Total past due finance receivables before fair value adjustments 24,238 10,993 370 35,601 Current finance receivables before fair value adjustments 111,023 35,969 926 147,918 Finance receivables before fair value adjustments $ 135,261 $ 46,962 $ 1,296 183,519 Fair value premium on non-PCD finance receivables 6,839 Finance receivables, amortized cost $ 190,358 (1) The Company charges off finance receivables when a receivable is 90 days or more contractually past due. |
Leased Merchandise, Net (Tables
Leased Merchandise, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Leased Merchandise, Net | Leased merchandise, net consists of the following (in thousands): As of September 30, As of 2022 2021 2021 Leased merchandise (1) $ 292,374 $ — $ 156,280 Processing fees (3,449) — (440) Merchant partner discounts and premiums, net 2,114 — 310 Accumulated depreciation (81,343) — (6,764) Leased merchandise, before allowance for lease losses 209,696 — 149,386 Allowance for lease losses (77,599) — (5,442) Leased merchandise, net $ 132,097 $ — $ 143,944 |
Leased Merchandise, Allowance for Credit Loss | Changes in the allowance for lease losses were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Balance at beginning of period $ 69,101 $ — $ 5,442 $ — Provision for lease losses 31,916 — 109,771 — Charge-offs (24,538) — (40,859) — Recoveries 1,120 — 3,245 — Balance at end of period $ 77,599 $ — $ 77,599 $ — |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table details the Company’s long-term debt at the respective principal amounts, net of unamortized debt issuance costs on the senior unsecured notes (in thousands): As of September 30, As of 2022 2021 2021 Revolving unsecured credit facility, maturing 2027 (1) $ 338,000 $ 246,000 $ 259,000 Senior unsecured notes: 4.625% senior unsecured notes due 2028 (2) 493,226 493,499 492,499 5.625% senior unsecured notes due 2030 (3) 542,000 — 541,405 Total senior unsecured notes 1,035,226 493,499 1,033,904 Total long-term debt $ 1,373,226 $ 739,499 $ 1,292,904 (1) Debt issuance costs related to the Company’s revolving unsecured credit facilities are included in other assets in the accompanying consolidated balance sheets. (2) As of September 30, 2022, September 30, 2021 and December 31, 2021, deferred debt issuance costs of $6.8 million, $6.5 million and $7.5 million, respectively, are included as a direct deduction from the carrying amount of the senior unsecured notes due 2028 in the accompanying consolidated balance sheets. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following tables present reportable segment information for the three and nine month periods ended September 30, 2022 and 2021 as well as segment earning assets (in thousands): Three Months Ended September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 195,854 $ 107,591 $ — $ (2,546) (1) $ 300,899 Pawn loan fees 96,222 49,505 — — 145,727 Leased merchandise income — — 158,089 — 158,089 Interest and fees on finance receivables — — 48,846 — 48,846 Wholesale scrap jewelry sales 12,956 5,626 — — 18,582 Total revenue 305,032 162,722 206,935 (2,546) 672,143 Cost of revenue: Cost of retail merchandise sold 114,899 68,642 — (1,342) (1) 182,199 Depreciation of leased merchandise — — 86,703 (184) (1) 86,519 Provision for lease losses — — 32,350 (434) (1) 31,916 Provision for loan losses — — 31,956 — 31,956 Cost of wholesale scrap jewelry sold 11,338 4,923 — — 16,261 Total cost of revenue 126,237 73,565 151,009 (1,960) 348,851 Net revenue 178,795 89,157 55,926 (586) (1) 323,292 Expenses and other income: Operating expenses 102,508 47,979 35,060 — 185,547 Administrative expenses — — — 36,951 36,951 Depreciation and amortization 5,806 4,566 775 14,824 25,971 Interest expense — — — 18,282 18,282 Interest income — — — (206) (206) Loss on foreign exchange — — — 255 255 Merger and acquisition expenses — — — 733 733 Gain on revaluation of contingent acquisition consideration — — — (19,800) (19,800) Other expenses (income), net — — — 164 164 Total expenses and other income 108,314 52,545 35,835 51,203 247,897 Income (loss) before income taxes $ 70,481 $ 36,612 $ 20,091 $ (51,789) $ 75,395 (1) Represents the elimination of intersegment transactions related to U.S. pawn stores offering AFF’s LTO payment solution as a payment option in its stores. Nine Months Ended September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Revenue: Retail merchandise sales $ 596,165 $ 308,356 $ — $ (2,546) (1) $ 901,975 Pawn loan fees 274,304 137,309 — — 411,613 Leased merchandise income — — 455,736 — 455,736 Interest and fees on finance receivables — — 135,039 — 135,039 Wholesale scrap jewelry sales 45,153 30,082 — — 75,235 Total revenue 915,622 475,747 590,775 (2,546) 1,979,598 Cost of revenue: Cost of retail merchandise sold 349,007 196,057 — (1,342) (1) 543,722 Depreciation of leased merchandise — — 263,014 (184) (1) 262,830 Provision for lease losses — — 110,205 (434) (1) 109,771 Provision for loan losses — — 83,453 — 83,453 Cost of wholesale scrap jewelry sold 39,150 25,221 — — 64,371 Total cost of revenue 388,157 221,278 456,672 (1,960) 1,064,147 Net revenue 527,465 254,469 134,103 (586) (1) 915,451 Expenses and other income: Operating expenses 302,572 141,574 95,252 — 539,398 Administrative expenses — — — 110,882 110,882 Depreciation and amortization 17,261 13,520 2,156 44,558 77,495 Interest expense — — — 50,749 50,749 Interest income — — — (1,104) (1,104) Gain on foreign exchange — — — (198) (198) Merger and acquisition expenses — — — 1,712 1,712 Gain on revaluation of contingent acquisition consideration — — — (82,789) (82,789) Other expenses (income), net — — — (2,721) (2,721) Total expenses and other income 319,833 155,094 97,408 121,089 693,424 Income (loss) before income taxes $ 207,632 $ 99,375 $ 36,695 $ (121,675) $ 222,027 As of September 30, 2022 U.S. Latin America Retail POS Corporate/ Consolidated Earning assets: Pawn loans $ 279,645 $ 124,582 $ — $ — $ 404,227 Finance receivables, net — — 111,945 — 111,945 Inventories 204,359 91,069 — — 295,428 Leased merchandise, net — — 132,683 (586) (1) 132,097 (1) Represents the elimination of intersegment transactions related to U.S. pawn stores offering AFF’s LTO payment solution as a payment option in its stores. Three Months Ended September 30, 2021 U.S. Latin America Corporate/ Consolidated Revenue: Retail merchandise sales $ 167,257 $ 101,469 $ — $ 268,726 Pawn loan fees 76,674 44,691 — 121,365 Wholesale scrap jewelry sales 4,168 5,415 — 9,583 Total revenue 248,099 151,575 — 399,674 Cost of revenue: Cost of retail merchandise sold 93,326 64,731 — 158,057 Cost of wholesale scrap jewelry sold 3,778 4,750 — 8,528 Total cost of revenue 97,104 69,481 — 166,585 Net revenue 150,995 82,094 — 233,089 Expenses and other income: Operating expenses 93,247 45,372 — 138,619 Administrative expenses — — 30,208 30,208 Depreciation and amortization 5,662 4,591 964 11,217 Interest expense — — 7,961 7,961 Interest income — — (143) (143) Loss on foreign exchange — — 558 558 Merger and acquisition expenses — — 12 12 Other expenses (income), net — — 361 361 Total expenses and other income 98,909 49,963 39,921 188,793 Income (loss) before income taxes $ 52,086 $ 32,131 $ (39,921) $ 44,296 Nine Months Ended September 30, 2021 U.S. Latin America Corporate/ Consolidated Revenue: Retail merchandise sales $ 530,468 $ 275,867 $ — $ 806,335 Pawn loan fees 220,013 126,783 — 346,796 Wholesale scrap jewelry sales 20,217 23,843 — 44,060 Total revenue 770,698 426,493 — 1,197,191 Cost of revenue: Cost of retail merchandise sold 295,455 173,179 — 468,634 Cost of wholesale scrap jewelry sold 16,678 20,979 — 37,657 Total cost of revenue 312,133 194,158 — 506,291 Net revenue 458,565 232,335 — 690,900 Expenses and other income: Operating expenses 282,068 133,003 — 415,071 Administrative expenses — — 88,605 88,605 Depreciation and amortization 16,391 13,388 2,952 32,731 Interest expense — — 22,389 22,389 Interest income — — (420) (420) Loss on foreign exchange — — 248 248 Merger and acquisition expenses — — 1,264 1,264 Other expenses (income), net — — 1,640 1,640 Total expenses and other income 298,459 146,391 116,678 561,528 Income (loss) before income taxes $ 160,106 $ 85,944 $ (116,678) $ 129,372 As of September 30, 2021 U.S. Latin America Consolidated Earning assets: Pawn loans $ 242,825 $ 106,168 $ 348,993 Inventories 175,047 79,213 254,260 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||||||
Net income | $ 59,316 | $ 86,108 | $ 28,005 | $ 33,396 | $ 28,427 | $ 33,715 | $ 173,429 | $ 95,538 |
Denominator: | ||||||||
Weighted-average common shares for calculating basic earnings per share (shares) | 46,902 | 40,453 | 47,518 | 40,745 | ||||
Stock options and nonvested stock awards (shares) | 120 | 63 | 84 | 44 | ||||
Weighted-average common shares for calculating diluted earnings per share (shares) | 47,022 | 40,516 | 47,602 | 40,789 | ||||
Earnings per share: | ||||||||
Basic (USD per share) | $ 1.26 | $ 0.83 | $ 3.65 | $ 2.34 | ||||
Diluted (USD per share) | $ 1.26 | $ 0.82 | $ 3.64 | $ 2.34 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,523,699 | $ 1,536,178 | $ 1,014,052 |
AFF | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 11,660 | ||
Finance receivables | 225,261 | ||
Leased merchandise | 139,649 | ||
Leased merchandise | 4,263 | ||
Property and equipment | 11,670 | ||
Operating lease right of use asset | 491 | ||
Goodwill | 486,186 | ||
Intangible assets | 305,100 | ||
Accounts payable and accrued liabilities | (29,440) | ||
Customer deposits and prepayments | (11,014) | ||
Lease liability, current | (10) | ||
Deferred tax liabilities (1) | (24,394) | ||
Lease liability, non-current | (481) | ||
Purchase price | 1,118,941 | ||
AFF | Previously Reported | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 11,660 | ||
Finance receivables | 225,261 | ||
Leased merchandise | 139,649 | ||
Leased merchandise | 4,474 | ||
Property and equipment | 11,670 | ||
Operating lease right of use asset | 491 | ||
Goodwill | 503,106 | ||
Intangible assets | 305,100 | ||
Accounts payable and accrued liabilities | (28,357) | ||
Customer deposits and prepayments | (11,014) | ||
Lease liability, current | (10) | ||
Deferred tax liabilities (1) | (42,608) | ||
Lease liability, non-current | (481) | ||
Purchase price | $ 1,118,941 | ||
AFF | Revision of Prior Period, Adjustment | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 0 | ||
Finance receivables | 0 | ||
Leased merchandise | 0 | ||
Leased merchandise | (211) | ||
Property and equipment | 0 | ||
Operating lease right of use asset | 0 | ||
Goodwill | (16,920) | ||
Intangible assets | 0 | ||
Accounts payable and accrued liabilities | (1,083) | ||
Customer deposits and prepayments | 0 | ||
Lease liability, current | 0 | ||
Deferred tax liabilities (1) | 18,214 | ||
Lease liability, non-current | 0 | ||
Purchase price | $ 0 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | ||||
Weighted average remaining lease term | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 1 month 6 days | 4 years 1 month 6 days |
Weighted average discount rate (as a percent) | 6.30% | 6.40% | 6.30% | 6.40% |
Foreign currency transaction gain, before tax | $ 0.4 | |||
Foreign currency transaction loss, before tax | $ (0.4) | $ (0.5) | $ (0.4) | |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
General term of leased facilities | 3 years | 3 years | ||
Leased facilities renewal term | 3 years | 3 years | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
General term of leased facilities | 5 years | 5 years | ||
Leased facilities renewal term | 5 years | 5 years |
Operating Leases - Lease Cost (
Operating Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||||
Operating lease expense | $ 31,988 | $ 31,595 | $ 95,590 | $ 94,034 |
Variable lease expense | 4,216 | 4,120 | 12,619 | 11,893 |
Total operating lease expense | $ 36,204 | $ 35,715 | $ 108,209 | $ 105,927 |
Operating Leases - Lease Maturi
Operating Leases - Lease Maturities (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
Three months ending December 31, 2022 | $ 28,211 |
2023 | 101,538 |
2024 | 79,146 |
2025 | 52,542 |
2026 | 32,895 |
Thereafter | 32,452 |
Total | 326,784 |
Less amount of lease payments representing interest | (38,498) |
Total present value of lease payments | $ 288,286 |
Operating Leases - Supplemental
Operating Leases - Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 87,040 | $ 85,565 |
Leased assets obtained in exchange for new operating lease liabilities | $ 66,442 | $ 78,280 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent AFF acquisition consideration | $ 26,760 | $ 46,560 | $ 109,549 | |
Accounts payable | 95,600 | |||
Other liabilities | 0 | 13,950 | $ 0 | |
Carrying Value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent AFF acquisition consideration | 26,760 | 109,549 | ||
Estimated Fair Value | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent AFF acquisition consideration | 0 | 0 | ||
Estimated Fair Value | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent AFF acquisition consideration | 0 | 0 | ||
Estimated Fair Value | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent AFF acquisition consideration | $ 26,760 | $ 109,549 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Level 3 (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Contingent AFF acquisition consideration at beginning of the period | $ 46,560 | $ 109,549 | ||
Gain on revaluation of contingent acquisition consideration | (19,800) | $ 0 | (82,789) | $ 0 |
Contingent AFF acquisition consideration at end of the period | $ 26,760 | $ 26,760 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Financial Assets and Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Finance receivables, gross | $ 188,897 | $ 220,329 | $ 0 |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 100,620 | 120,046 | 49,907 |
Accounts receivable, net | 58,435 | 55,356 | 43,492 |
Total assets | 675,227 | 704,396 | 442,392 |
Total liabilities | 1,388,000 | 1,309,000 | 746,000 |
Carrying Value | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 338,000 | 259,000 | 246,000 |
Carrying Value | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 1,050,000 | 1,050,000 | 500,000 |
Carrying Value | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 404,227 | 347,973 | 348,993 |
Carrying Value | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 111,945 | 181,021 | |
Estimated Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 100,620 | 120,046 | 49,907 |
Accounts receivable, net | 58,435 | 55,356 | 43,492 |
Total assets | 757,032 | 756,375 | 442,392 |
Total liabilities | 1,225,000 | 1,317,000 | 762,000 |
Estimated Fair Value | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 338,000 | 259,000 | 246,000 |
Estimated Fair Value | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 887,000 | 1,058,000 | 516,000 |
Estimated Fair Value | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 404,227 | 347,973 | 348,993 |
Estimated Fair Value | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 193,750 | 233,000 | |
Estimated Fair Value | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 100,620 | 120,046 | 49,907 |
Accounts receivable, net | 0 | 0 | 0 |
Total assets | 100,620 | 120,046 | 49,907 |
Total liabilities | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 0 | 0 | 0 |
Estimated Fair Value | Level 1 | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 0 | 0 | |
Estimated Fair Value | Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Total liabilities | 1,225,000 | 1,317,000 | 762,000 |
Estimated Fair Value | Level 2 | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 338,000 | 259,000 | 246,000 |
Estimated Fair Value | Level 2 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 887,000 | 1,058,000 | 516,000 |
Estimated Fair Value | Level 2 | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 0 | 0 | 0 |
Estimated Fair Value | Level 2 | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 0 | 0 | |
Estimated Fair Value | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Accounts receivable, net | 58,435 | 55,356 | 43,492 |
Total assets | 656,412 | 636,329 | 392,485 |
Total liabilities | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Line of Credit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt | 0 | 0 | 0 |
Estimated Fair Value | Level 3 | Pawn loans | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | 404,227 | 347,973 | $ 348,993 |
Estimated Fair Value | Level 3 | Financing Receivable | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans receivable, fair value disclosure | $ 193,750 | $ 233,000 |
Finance Receivables, Net (Detai
Finance Receivables, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||||||
Finance receivables, gross | $ 0 | $ 188,897 | $ 0 | $ 220,329 | |||
Fair value premium on non-PCD finance receivables | 6,839 | 0 | 40,251 | ||||
Non-credit discount on PCD finance receivables | 0 | 0 | (3,521) | ||||
Merchant partner discounts and premiums, net | (2,044) | 0 | (104) | ||||
Unearned origination fees | (3,334) | 0 | (360) | ||||
Finance receivables, amortized cost | 0 | 190,358 | 0 | 256,595 | |||
Less allowance for loan losses | 0 | (78,413) | 0 | (75,574) | $ (73,936) | $ 0 | $ 0 |
Finance receivables, net | $ 0 | $ 111,945 | $ 0 | $ 181,021 |
Finance Receivables, Net - Roll
Finance Receivables, Net - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 73,936 | $ 0 | $ 75,574 | $ 0 |
Provision for loan losses | 31,956 | 0 | 83,453 | 0 |
Charge-offs | (28,642) | 0 | (84,629) | 0 |
Recoveries | 1,163 | 0 | 4,015 | 0 |
Balance at end of period | $ 78,413 | $ 0 | $ 78,413 | $ 0 |
Finance Receivables, Net - Cred
Finance Receivables, Net - Credit Quality Indicators of Amortized Cost of Finance Receivables (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Sep. 30, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | $ 135,261 | |||
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | $ 46,962 | |||
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | $ 1,296 | |||
Finance receivable, before allowance for credit loss, premium and discount | 183,519 | |||
Fair value premium on non-PCD finance receivables | 6,839 | 0 | $ 40,251 | |
Finance receivables, amortized cost | 190,358 | 0 | $ 256,595 | |
No FICO score identified or obtained | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 39,639 | |||
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 13,067 | |||
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 113 | |||
Finance receivable, before allowance for credit loss, premium and discount | 52,819 | |||
599 or less | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 44,966 | |||
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 16,299 | |||
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 539 | |||
Finance receivable, before allowance for credit loss, premium and discount | 61,804 | |||
Between 600 and 699 | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 45,125 | |||
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | 15,755 | |||
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | 567 | |||
Finance receivable, before allowance for credit loss, premium and discount | 61,447 | |||
700 or greater | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Financing receivable, excluding accrued interest, year one, originated, current fiscal year | 5,531 | |||
Financing receivable, excluding accrued interest, year two, originated, fiscal year before current fiscal year | $ 1,841 | |||
Financing receivable, excluding accrued interest, year three, originated, two years before current fiscal year | $ 77 | |||
Finance receivable, before allowance for credit loss, premium and discount | $ 7,449 |
Finance Receivables, Net - Agin
Finance Receivables, Net - Aging of Finance Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Sep. 30, 2020 | |
Financing Receivable, Past Due [Line Items] | ||||
Finance receivable, current, before allowance for credit loss premium and discount, year one | $ 111,023 | |||
Financing receivable, year one, originated, current fiscal year | 135,261 | |||
Finance receivable, current, before allowance for credit loss, premium and discount, year two | $ 35,969 | |||
Financing receivable, year two, originated, fiscal year before current fiscal year | 46,962 | |||
Finance receivable, before allowance for credit loss, premium and discount | 183,519 | |||
Finance receivable, current, before allowance for credit loss, premium and discount, year three | $ 926 | |||
Fair value premium on non-PCD finance receivables | 6,839 | 0 | $ 40,251 | |
Financing receivable, current, before allowance for credit loss, premium and discount | 147,918 | |||
Financing receivable, year three, originated, two years before current fiscal year | 1,296 | |||
Finance receivables, amortized cost | 190,358 | 0 | $ 256,595 | |
1 to 30 days past due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, past due | 11,149 | 4,468 | 150 | |
Finance receivable, before allowance for credit loss, premium and discount | 15,767 | |||
31 to 60 days past due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, past due | 7,118 | 3,233 | 100 | |
Finance receivable, before allowance for credit loss, premium and discount | 10,451 | |||
61 to 90 days past due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, past due | 5,971 | 3,292 | 120 | |
Finance receivable, before allowance for credit loss, premium and discount | 9,383 | |||
Total past due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Financing receivable, past due | 24,238 | $ 10,993 | $ 370 | |
Finance receivable, before allowance for credit loss, premium and discount | $ 35,601 |
Leased Merchandise, Net (Detail
Leased Merchandise, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||||||
Leased merchandise | $ 0 | $ 292,374 | $ 156,280 | |||
Processing fees | 0 | (3,449) | (440) | |||
Merchant partner discounts and premiums, net | 0 | 2,114 | 310 | |||
Accumulated depreciation | 0 | (81,343) | (6,764) | |||
Leased merchandise, before allowance for lease losses | 0 | 209,696 | 149,386 | |||
Allowance for lease losses | 0 | 77,599 | 5,442 | $ 69,101 | $ 0 | $ 0 |
Leased merchandise, net | $ 0 | $ 132,097 | $ 143,944 |
Leased Merchandise, Net - (Deta
Leased Merchandise, Net - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leased Merchandise, Allowance for Credit loss Roll Forward [Roll Forward] | ||||
Balance at beginning of period | $ 69,101 | $ 0 | $ 5,442 | $ 0 |
Provision for lease losses | 31,916 | 0 | 109,771 | 0 |
Charge-offs | (24,538) | 0 | (40,859) | 0 |
Recoveries | 1,120 | 0 | 3,245 | 0 |
Balance at end of period | $ 77,599 | $ 0 | $ 77,599 | $ 0 |
Long-Term Debt - Summary (Detai
Long-Term Debt - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 13, 2021 | Sep. 30, 2021 | Aug. 26, 2020 |
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 1,373,226 | $ 1,292,904 | $ 739,499 | ||
Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | 1,035,226 | 1,033,904 | 493,499 | ||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Total long-term debt | $ 338,000 | 259,000 | 246,000 | ||
4.625% senior unsecured notes due 2028 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 4.625% | 4.625% | |||
Total long-term debt | $ 493,226 | 492,499 | 493,499 | ||
Deferred finance costs, net | $ 6,800 | 7,500 | 6,500 | ||
5.625% Senior Unsecured Notes due 2030 | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate (as a percent) | 5.625% | 5.625% | |||
Total long-term debt | $ 542,000 | 541,405 | $ 0 | ||
Deferred finance costs, net | $ 8,000 | $ 8,600 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 1 Months Ended | 8 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 USD ($) | Aug. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Aug. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 MXN ($) | Dec. 31, 2021 USD ($) | Dec. 13, 2021 USD ($) | Sep. 30, 2021 USD ($) | Aug. 26, 2020 USD ($) | |
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Leverage Ratio, Adjusted EBITDA | 3 | |||||||||
Line of Credit Facility, Leverage Ratio, Temporary Adjusted EBITDA | 3.25 | 3.5 | ||||||||
Revolving unsecured credit facility, maturing 2024 | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 500,000,000 | $ 500,000,000 | ||||||||
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 | Prime Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 590,000,000 | $ 590,000,000 | $ 590,000,000 | |||||||
Amount outstanding | 338,000,000 | 338,000,000 | 338,000,000 | |||||||
Letters of credit outstanding | 3,200,000 | 3,200,000 | 3,200,000 | |||||||
Remaining borrowing capacity | $ 248,800,000 | $ 248,800,000 | $ 248,800,000 | |||||||
Commitment fee (as a percent) | 0.325% | |||||||||
Interest rate at end of period (as a percent) | 5.39% | 5.39% | 5.39% | 5.39% | ||||||
Net proceeds | $ 79,000,000 | |||||||||
Revolving Unsecured Credit Facility due 2027 | 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 2027 | Line of Credit | 30-day LIBOR | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as a percent) | 0% | 0% | 0% | 0% | ||||||
Revolving Unsecured Credit Facility due 2027 | Line of Credit | Prime Rate | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate (as a percent) | 1.50% | |||||||||
Revolving Unsecured Uncommitted Credit Facility due 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% | 4.625% | 4.625% | |||||
Face amount | $ 500,000,000 | |||||||||
Debt ratio threshold | 2.75 | 2.75 | 2.75 | 2.75 | ||||||
Deferred finance costs, net | $ 6,800,000 | $ 6,800,000 | $ 6,800,000 | $ 7,500,000 | $ 6,500,000 | |||||
5.625% Senior Unsecured Notes due 2030 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate (as a percent) | 5.625% | 5.625% | 5.625% | 5.625% | 5.625% | |||||
Face amount | $ 550,000,000 | |||||||||
Debt ratio threshold | 3 | 3 | 3 | 3 | ||||||
Debt ratio | 2.8 | 2.8 | 2.8 | 2.8 | ||||||
Deferred finance costs, net | $ 8,000,000 | $ 8,000,000 | $ 8,000,000 | $ 8,600,000 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Schedule of Revenues from External Customers [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Revenue: | |||||
Retail merchandise sales | $ 300,899 | $ 268,726 | $ 901,975 | $ 806,335 | |
Pawn loan fees | 145,727 | 121,365 | 411,613 | 346,796 | |
Leased merchandise income | 158,089 | 0 | 455,736 | 0 | |
Interest and fees on finance receivables | 48,846 | 0 | 135,039 | 0 | |
Wholesale scrap jewelry sales | 18,582 | 9,583 | 75,235 | 44,060 | |
Total revenue | 672,143 | 399,674 | 1,979,598 | 1,197,191 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 182,199 | 158,057 | 543,722 | 468,634 | |
Depreciation of leased merchandise | 86,519 | 0 | 262,830 | 0 | |
Provision for lease losses | 31,916 | 0 | 109,771 | 0 | |
Provision for loan losses | 31,956 | 0 | 83,453 | 0 | |
Cost of wholesale scrap jewelry sold | 16,261 | 8,528 | 64,371 | 37,657 | |
Total cost of revenue | 348,851 | 166,585 | 1,064,147 | 506,291 | |
Net revenue | 323,292 | 233,089 | 915,451 | 690,900 | |
Expenses and other income: | |||||
Operating expenses | 185,547 | 138,619 | 539,398 | 415,071 | |
Administrative expenses | 36,951 | 30,208 | 110,882 | 88,605 | |
Depreciation and amortization | 25,971 | 11,217 | 77,495 | 32,731 | |
Interest expense | 18,282 | 7,961 | 50,749 | 22,389 | |
Interest income | (206) | (143) | (1,104) | (420) | |
Merger and acquisition expenses | 733 | 12 | 1,712 | 1,264 | |
Loss (gain) on foreign exchange | 255 | 558 | (198) | 248 | |
Gain on revaluation of contingent acquisition consideration | (19,800) | 0 | (82,789) | 0 | |
Other expenses (income), net | 164 | 361 | (2,721) | 1,640 | |
Total expenses and other income | 247,897 | 188,793 | 693,424 | 561,528 | |
Income (loss) before income taxes | 75,395 | 44,296 | 222,027 | 129,372 | |
Pawn loans | 404,227 | 348,993 | 404,227 | 348,993 | $ 347,973 |
Finance receivables, net | 111,945 | 0 | 111,945 | 0 | 181,021 |
Inventories | 295,428 | 254,260 | 295,428 | 254,260 | 263,311 |
Leased merchandise, net | 132,097 | 0 | 132,097 | 0 | $ 143,944 |
UNITED STATES | Retail POS Payment Solutions | |||||
Revenue: | |||||
Retail merchandise sales | 0 | 0 | |||
Pawn loan fees | 0 | 0 | |||
Leased merchandise income | 158,089 | 455,736 | |||
Interest and fees on finance receivables | 48,846 | 135,039 | |||
Wholesale scrap jewelry sales | 0 | 0 | |||
Total revenue | 206,935 | 590,775 | |||
Cost of revenue: | |||||
Cost of retail merchandise sold | 0 | 0 | |||
Depreciation of leased merchandise | 86,703 | 263,014 | |||
Provision for lease losses | 32,350 | 110,205 | |||
Provision for loan losses | 31,956 | 83,453 | |||
Cost of wholesale scrap jewelry sold | 0 | 0 | |||
Total cost of revenue | 151,009 | 456,672 | |||
Net revenue | 55,926 | 134,103 | |||
Expenses and other income: | |||||
Operating expenses | 35,060 | 95,252 | |||
Administrative expenses | 0 | 0 | |||
Depreciation and amortization | 775 | 2,156 | |||
Interest expense | 0 | 0 | |||
Interest income | 0 | 0 | |||
Merger and acquisition expenses | 0 | 0 | |||
Loss (gain) on foreign exchange | 0 | 0 | |||
Gain on revaluation of contingent acquisition consideration | 0 | 0 | |||
Other expenses (income), net | 0 | 0 | |||
Total expenses and other income | 35,835 | 97,408 | |||
Income (loss) before income taxes | 20,091 | 36,695 | |||
Pawn loans | 0 | 0 | |||
Finance receivables, net | 111,945 | 111,945 | |||
Inventories | 0 | 0 | |||
Leased merchandise, net | 132,683 | 132,683 | |||
UNITED STATES | Pawn Segment | |||||
Revenue: | |||||
Retail merchandise sales | 195,854 | 167,257 | 596,165 | 530,468 | |
Pawn loan fees | 96,222 | 76,674 | 274,304 | 220,013 | |
Leased merchandise income | 0 | 0 | |||
Interest and fees on finance receivables | 0 | 0 | |||
Wholesale scrap jewelry sales | 12,956 | 4,168 | 45,153 | 20,217 | |
Total revenue | 305,032 | 248,099 | 915,622 | 770,698 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 114,899 | 93,326 | 349,007 | 295,455 | |
Depreciation of leased merchandise | 0 | 0 | |||
Provision for lease losses | 0 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Cost of wholesale scrap jewelry sold | 11,338 | 3,778 | 39,150 | 16,678 | |
Total cost of revenue | 126,237 | 97,104 | 388,157 | 312,133 | |
Net revenue | 178,795 | 150,995 | 527,465 | 458,565 | |
Expenses and other income: | |||||
Operating expenses | 102,508 | 93,247 | 302,572 | 282,068 | |
Administrative expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 5,806 | 5,662 | 17,261 | 16,391 | |
Interest expense | 0 | 0 | 0 | 0 | |
Interest income | 0 | 0 | 0 | 0 | |
Merger and acquisition expenses | 0 | 0 | 0 | 0 | |
Loss (gain) on foreign exchange | 0 | 0 | 0 | 0 | |
Gain on revaluation of contingent acquisition consideration | 0 | 0 | |||
Other expenses (income), net | 0 | 0 | 0 | 0 | |
Total expenses and other income | 108,314 | 98,909 | 319,833 | 298,459 | |
Income (loss) before income taxes | 70,481 | 52,086 | 207,632 | 160,106 | |
Pawn loans | 279,645 | 242,825 | 279,645 | 242,825 | |
Finance receivables, net | 0 | 0 | |||
Inventories | 204,359 | 175,047 | 204,359 | 175,047 | |
Leased merchandise, net | 0 | 0 | |||
Latin America | Pawn Segment | |||||
Revenue: | |||||
Retail merchandise sales | 107,591 | 101,469 | 308,356 | 275,867 | |
Pawn loan fees | 49,505 | 44,691 | 137,309 | 126,783 | |
Leased merchandise income | 0 | 0 | |||
Interest and fees on finance receivables | 0 | 0 | |||
Wholesale scrap jewelry sales | 5,626 | 5,415 | 30,082 | 23,843 | |
Total revenue | 162,722 | 151,575 | 475,747 | 426,493 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | 68,642 | 64,731 | 196,057 | 173,179 | |
Depreciation of leased merchandise | 0 | 0 | |||
Provision for lease losses | 0 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Cost of wholesale scrap jewelry sold | 4,923 | 4,750 | 25,221 | 20,979 | |
Total cost of revenue | 73,565 | 69,481 | 221,278 | 194,158 | |
Net revenue | 89,157 | 82,094 | 254,469 | 232,335 | |
Expenses and other income: | |||||
Operating expenses | 47,979 | 45,372 | 141,574 | 133,003 | |
Administrative expenses | 0 | 0 | 0 | 0 | |
Depreciation and amortization | 4,566 | 4,591 | 13,520 | 13,388 | |
Interest expense | 0 | 0 | 0 | 0 | |
Interest income | 0 | 0 | 0 | 0 | |
Merger and acquisition expenses | 0 | 0 | 0 | 0 | |
Loss (gain) on foreign exchange | 0 | 0 | 0 | 0 | |
Gain on revaluation of contingent acquisition consideration | 0 | 0 | |||
Other expenses (income), net | 0 | 0 | 0 | 0 | |
Total expenses and other income | 52,545 | 49,963 | 155,094 | 146,391 | |
Income (loss) before income taxes | 36,612 | 32,131 | 99,375 | 85,944 | |
Pawn loans | 124,582 | 106,168 | 124,582 | 106,168 | |
Finance receivables, net | 0 | 0 | |||
Inventories | 91,069 | 79,213 | 91,069 | 79,213 | |
Leased merchandise, net | 0 | 0 | |||
Corporate/ Eliminations | |||||
Revenue: | |||||
Retail merchandise sales | (2,546) | 0 | (2,546) | 0 | |
Pawn loan fees | 0 | 0 | 0 | 0 | |
Leased merchandise income | 0 | 0 | |||
Interest and fees on finance receivables | 0 | 0 | |||
Wholesale scrap jewelry sales | 0 | 0 | 0 | 0 | |
Total revenue | (2,546) | 0 | (2,546) | 0 | |
Cost of revenue: | |||||
Cost of retail merchandise sold | (1,342) | 0 | (1,342) | 0 | |
Depreciation of leased merchandise | (184) | (184) | |||
Provision for lease losses | (434) | (434) | |||
Provision for loan losses | 0 | 0 | |||
Cost of wholesale scrap jewelry sold | 0 | 0 | 0 | 0 | |
Total cost of revenue | (1,960) | 0 | (1,960) | 0 | |
Net revenue | (586) | 0 | (586) | 0 | |
Expenses and other income: | |||||
Operating expenses | 0 | 0 | 0 | 0 | |
Administrative expenses | 36,951 | 30,208 | 110,882 | 88,605 | |
Depreciation and amortization | 14,824 | 964 | 44,558 | 2,952 | |
Interest expense | 18,282 | 7,961 | 50,749 | 22,389 | |
Interest income | (206) | (143) | (1,104) | (420) | |
Merger and acquisition expenses | 733 | 12 | 1,712 | 1,264 | |
Loss (gain) on foreign exchange | 255 | 558 | (198) | 248 | |
Gain on revaluation of contingent acquisition consideration | (19,800) | (82,789) | |||
Other expenses (income), net | 164 | 361 | (2,721) | 1,640 | |
Total expenses and other income | 51,203 | 39,921 | 121,089 | 116,678 | |
Income (loss) before income taxes | (51,789) | $ (39,921) | (121,675) | $ (116,678) | |
Pawn loans | 0 | 0 | |||
Finance receivables, net | 0 | 0 | |||
Inventories | 0 | 0 | |||
Leased merchandise, net | $ (586) | $ (586) |