First Cash Financial Services Inc. (FCFS, Financial) filed Quarterly Report for the period ended 2012-06-30.
First Cash Financial Services, Inc. has a market cap of $1.14 billion; its shares were traded at around $40.18 with a P/E ratio of 16.4 and P/S ratio of 2.2. First Cash Financial Services, Inc. had an annual average earning growth of 19.4% over the past 10 years. GuruFocus rated First Cash Financial Services, Inc. the business predictability rank of 5-star.
The Companys consumer loan and credit services loss provision was 25% of consumer loan and credit services fee revenue during the second quarter of 2012, compared to 22% in the second quarter of 2011. During the second quarter of 2012, the Company sold bad debt portfolios generated from consumer loan and credit services guarantees for proceeds of $97,000, compared to sales of $576,000 in the comparable prior-year period, which accounted for the increase in the loss provision. The estimated fair value of liabilities under the CSO letters of credit, net of anticipated recoveries from customers, was $716,000, or 5.1% of the gross loan balance at June 30, 2012, compared to $856,000, or 6.6% of the gross loan balance at June 30, 2011, which is included as a component of the Companys accrued liabilities. The Companys loss reserve on consumer loans was $107,000, or 5.0% of the gross loan balance at June 30, 2012, compared to $56,000, or 5.0% of the gross loan balance at June 30, 2011.
The overall increase in year-over-year revenue of 17% (constant currency basis) was due to a combination of same-store revenue growth and revenue from new and acquired pawn stores. Overall, same-store revenue grew by 4%, including 6% in the United States and 3% (constant currency basis) in Mexico. Revenue generated by the stores opened or acquired since January 1, 2011, increased by $21,067,000 in Mexico and $7,339,000 in the United States, compared to the same period last year.
The gross profit margin on total merchandise sales was 37% during the first six months of 2012, compared to 38% in the first six months of 2011. The retail merchandise margin, which excludes scrap jewelry sales, was 42% during the first six months of 2012, while the margin on wholesale scrap jewelry was 25%, compared to prior-year margins of 40% and 32%, respectively. Pawn inventories increased from the prior year by 5% on a constant currency basis. The increase reflected a higher store count, partially offset by higher inventory turnover compared to the prior year. At June 30, 2012, the Companys pawn inventories, at cost, were comprised of: 41% jewelry (primarily gold), 37% electronics and appliances, 8% tools and 14% other. At June 30, 2012, 97% of total inventories, at cost, had been held for one year or less, while 3% had been held for more than one year.
The Companys consumer loan and credit services loss provision was 22% of consumer loan and credit services fee revenue during the first six months of 2012, compared to 19% in the first six months of 2011. During the first six months of 2012, the Company sold bad debt portfolios generated from consumer loan and credit services guarantees for proceeds of $196,000, compared to sales of $576,000 in the comparable prior-year period, which accounted for the increase in the loss provision. The estimated fair value of liabilities under the CSO letters of credit, net of anticipated recoveries from customers, was $716,000, or 5.1% of the gross loan balance at June 30, 2012, compared to $856,000, or 6.6% of the gross loan balance at June 30, 2011, which is included as a component of the Companys accrued liabilities. The Companys loss reserve on consumer loans was $107,000, or 5.0% of the gross loan balance at June 30, 2012, compared to $56,000, or 5.0% of the gross loan balance at June 30, 2011.
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First Cash Financial Services, Inc. has a market cap of $1.14 billion; its shares were traded at around $40.18 with a P/E ratio of 16.4 and P/S ratio of 2.2. First Cash Financial Services, Inc. had an annual average earning growth of 19.4% over the past 10 years. GuruFocus rated First Cash Financial Services, Inc. the business predictability rank of 5-star.
Highlight of Business Operations:
The gross profit margin on total merchandise sales was 37% during the second quarters of 2012 and 2011. The store-based retail merchandise margin, which excludes scrap jewelry sales, was 42% during the second quarter of 2012, while the margin on wholesale scrap jewelry was 22%, compared to prior-year margins of 40% and 30%, respectively. The increase in retail margins was primarily the result of improved margins in Mexico. The decrease in scrap margins reflected a sequential decrease in the selling price of gold coupled with higher acquisition costs in the U.S. and Mexico. Pawn inventories increased from the prior year by 5% on a constant currency basis. The increase reflected a higher store count, partially offset by higher inventory turnover compared to the prior year. At June 30, 2012, the Companys pawn inventories, at cost, were comprised of: 41% jewelry (primarily gold), 37% electronics and appliances, 8% tools and 14% other. At June 30, 2012, 97% of total inventories, at cost, had been held for one year or less, while 3% had been held for more than one year.The Companys consumer loan and credit services loss provision was 25% of consumer loan and credit services fee revenue during the second quarter of 2012, compared to 22% in the second quarter of 2011. During the second quarter of 2012, the Company sold bad debt portfolios generated from consumer loan and credit services guarantees for proceeds of $97,000, compared to sales of $576,000 in the comparable prior-year period, which accounted for the increase in the loss provision. The estimated fair value of liabilities under the CSO letters of credit, net of anticipated recoveries from customers, was $716,000, or 5.1% of the gross loan balance at June 30, 2012, compared to $856,000, or 6.6% of the gross loan balance at June 30, 2011, which is included as a component of the Companys accrued liabilities. The Companys loss reserve on consumer loans was $107,000, or 5.0% of the gross loan balance at June 30, 2012, compared to $56,000, or 5.0% of the gross loan balance at June 30, 2011.
The overall increase in year-over-year revenue of 17% (constant currency basis) was due to a combination of same-store revenue growth and revenue from new and acquired pawn stores. Overall, same-store revenue grew by 4%, including 6% in the United States and 3% (constant currency basis) in Mexico. Revenue generated by the stores opened or acquired since January 1, 2011, increased by $21,067,000 in Mexico and $7,339,000 in the United States, compared to the same period last year.
The gross profit margin on total merchandise sales was 37% during the first six months of 2012, compared to 38% in the first six months of 2011. The retail merchandise margin, which excludes scrap jewelry sales, was 42% during the first six months of 2012, while the margin on wholesale scrap jewelry was 25%, compared to prior-year margins of 40% and 32%, respectively. Pawn inventories increased from the prior year by 5% on a constant currency basis. The increase reflected a higher store count, partially offset by higher inventory turnover compared to the prior year. At June 30, 2012, the Companys pawn inventories, at cost, were comprised of: 41% jewelry (primarily gold), 37% electronics and appliances, 8% tools and 14% other. At June 30, 2012, 97% of total inventories, at cost, had been held for one year or less, while 3% had been held for more than one year.
The Companys consumer loan and credit services loss provision was 22% of consumer loan and credit services fee revenue during the first six months of 2012, compared to 19% in the first six months of 2011. During the first six months of 2012, the Company sold bad debt portfolios generated from consumer loan and credit services guarantees for proceeds of $196,000, compared to sales of $576,000 in the comparable prior-year period, which accounted for the increase in the loss provision. The estimated fair value of liabilities under the CSO letters of credit, net of anticipated recoveries from customers, was $716,000, or 5.1% of the gross loan balance at June 30, 2012, compared to $856,000, or 6.6% of the gross loan balance at June 30, 2011, which is included as a component of the Companys accrued liabilities. The Companys loss reserve on consumer loans was $107,000, or 5.0% of the gross loan balance at June 30, 2012, compared to $56,000, or 5.0% of the gross loan balance at June 30, 2011.
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