FirstCash Holdings Inc (FCFS, Financial), a leading international operator of retail pawn stores and a provider of retail point-of-sale payment solutions, announced its operating results for the three and nine month periods ended September 30, 2023, on October 26, 2023. The company reported a 20% increase in net revenues, driven by growth in its Pawn and AFF segments. FirstCash also added 104 Pawn stores in the third quarter through acquisitions and store openings.
Financial Highlights
FirstCash reported a revenue of $786,301 in thousands for Q3 2023, compared to $672,143 in thousands for Q3 2022. The net income for Q3 2023 was $57,144 in thousands, slightly lower than the $59,316 in thousands reported for the same period last year. The diluted earnings per share for Q3 2023 were $1.26, identical to Q3 2022. The EBITDA (non-GAAP measure) for Q3 2023 was $129,350 in thousands, an increase from $119,442 in thousands in Q3 2022.
Company Performance and Growth
FirstCash's CEO, Mr. Rick Wessel, stated,
Our third quarter results were outstanding as strong growth and profitability metrics in the core pawn segments and AFF resulted in record earning assets, revenues and combined segment earnings."The company added 104 pawn stores during the third quarter, including 79 acquired U.S. locations and 25 de novo stores, mostly in Latin America. This significant unit growth in pawn locations is expected to drive additional revenue and earnings growth in the fourth quarter and beyond.
Financial Analysis
FirstCash's consolidated gross revenues totaled $786 million in the third quarter, an increase of 17% on a GAAP basis and 16% on an adjusted basis compared to the prior-year quarter. The company's adjusted EBITDA increased 22% in the third quarter compared to the prior-year quarter. For the twelve month period ended September 30, 2023, adjusted EBITDA totaled $481 million, an increase of 18% over the comparable prior-year period.
Future Outlook
Based on strong third quarter results and recent pawn acquisitions, the company's outlook for the remainder of 2023 remains highly positive. Pawn operations are expected to remain the primary earnings driver in 2023. The company expects segment income from the combined U.S. and Latin America pawn segments to be approximately 80% of total segment level pre-tax income for the full year.
Explore the complete 8-K earnings release (here) from FirstCash Holdings Inc for further details.
