First Cash Financial Services Inc. (FCFS, Financial) filed Quarterly Report for the period ended 2012-09-30.
First Cash Financial Services, Inc. has a market cap of $1.31 billion; its shares were traded at around $44.7 with a P/E ratio of 18 and P/S ratio of 2.5. 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 gross profit margin on total merchandise sales was 38% during the third quarter of 2012, compared to 39% in the same period in the prior year. The store-based retail merchandise margin, which excludes scrap jewelry sales, was 43% during the third quarter of 2012, while the margin on wholesale scrap jewelry was 27%, compared to prior-year margins of 41% and 37%, respectively. The overall increase in retail margins was primarily the result of improved retail margins in Mexico, including lower acquisition costs for retail merchandise. The decrease in scrap margins reflected higher acquisition costs for gold. Pawn inventories increased from the prior year by 17% on a constant currency basis. The increase reflected a higher store count and store acquisitions, partially offset by higher inventory turnover compared to the prior year. At September 30, 2012, the Company s pawn inventories, at cost, were composed of: 38% jewelry (primarily gold), 40% electronics and appliances, 7% tools and 15% other. At September 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 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 2% on a constant currency basis. Excluding scrap jewelry sales, same-store revenue increased 6% in Mexico, 5% in the U.S. and 5% overall, on a constant currency basis. Same-store pawn service fees increased 9% on a consolidated basis, with 11% growth in Mexico and 7% growth in the U.S., on a constant currency basis. Same-store retail sales (on a constant currency basis) increased 4% in Mexico, increased 5% in the U.S. and increased 4% in total. Same-store scrap revenue (on a constant currency basis) decreased 10% in total, with a 7% decrease in the U.S. and a 14% decrease in Mexico. Revenue generated by the stores opened or acquired since January 1, 2011, increased by $33,750,000 in Mexico and $18,024,000 in the United States, compared to the same period last year.
The gross profit margin on total merchandise sales was 38% during the first nine months of 2012 and 2011. The retail merchandise margin, which excludes scrap jewelry sales, was 42% during the first nine months of 2012, while the margin on wholesale scrap jewelry was 26%, compared to prior-year margins of 40% and 34%, respectively. The overall increase in retail margins was primarily the result of improved retail margins in Mexico, including lower acquisition costs for retail merchandise. The decrease in scrap margins reflected higher acquisition costs for gold. Pawn inventories increased from the prior year by 17% on a constant currency basis. The increase reflected a higher store count and store acquisitions, partially offset by higher inventory turnover compared to the prior year. At September 30, 2012, the Company s pawn inventories, at cost, were composed of: 38% jewelry (primarily gold), 40% electronics and appliances, 7% tools and 15% other. At September 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 Company s consumer loan and credit services loss provision was 25% of consumer loan and credit services fee revenue during the first nine months of 2012, compared to 23% in the first nine months of 2011. During the first nine months of 2012, the Company sold bad debt portfolios generated from consumer loan and credit services guarantees for proceeds of $279,000, compared to sales of $576,000 in the comparable prior-year period. The estimated fair value of liabilities under the CSO letters of credit, net of anticipated recoveries from customers, was $735,000, or 5.0% of the gross loan balance at September 30, 2012, compared to $877,000, or 6.7% of the gross loan balance at September 30, 2011, which is included as a component of the Company s accrued liabilities. The Company s loss reserve on consumer loans was $109,000, or 5.1% of the gross loan balance at September 30, 2012, compared to $49,000, or 5.0% of the gross loan balance at September 30, 2011.
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First Cash Financial Services, Inc. has a market cap of $1.31 billion; its shares were traded at around $44.7 with a P/E ratio of 18 and P/S ratio of 2.5. 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 overall increase in quarter-over-quarter revenue of 16% (constant currency basis) was due primarily to revenue from new and acquired pawn stores. The 12% decrease in total scrap jewelry revenue caused consolidated same-store revenue to be flat, on a constant currency basis, in the third quarter. Excluding scrap jewelry sales, same-store revenue increased 9% in Mexico, 3% in the U.S. and 6% overall, on a constant currency basis. Same-store pawn service fees increased 12% on a consolidated basis, with 17% growth in Mexico and 7% growth in the U.S., on a constant currency basis. Same-store retail sales (constant currency basis) increased 7% in Mexico, were flat in the U.S. and increased 4% in total. Same-store scrap revenue (constant currency basis) decreased 22% in total, with a 23% decrease in the U.S. and a 21% decrease in Mexico. Third quarter revenue generated by the stores opened or acquired since July 1, 2011, increased by $10,550,000 in Mexico and $10,643,000 in the United States, compared to the same quarter last year.The gross profit margin on total merchandise sales was 38% during the third quarter of 2012, compared to 39% in the same period in the prior year. The store-based retail merchandise margin, which excludes scrap jewelry sales, was 43% during the third quarter of 2012, while the margin on wholesale scrap jewelry was 27%, compared to prior-year margins of 41% and 37%, respectively. The overall increase in retail margins was primarily the result of improved retail margins in Mexico, including lower acquisition costs for retail merchandise. The decrease in scrap margins reflected higher acquisition costs for gold. Pawn inventories increased from the prior year by 17% on a constant currency basis. The increase reflected a higher store count and store acquisitions, partially offset by higher inventory turnover compared to the prior year. At September 30, 2012, the Company s pawn inventories, at cost, were composed of: 38% jewelry (primarily gold), 40% electronics and appliances, 7% tools and 15% other. At September 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 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 2% on a constant currency basis. Excluding scrap jewelry sales, same-store revenue increased 6% in Mexico, 5% in the U.S. and 5% overall, on a constant currency basis. Same-store pawn service fees increased 9% on a consolidated basis, with 11% growth in Mexico and 7% growth in the U.S., on a constant currency basis. Same-store retail sales (on a constant currency basis) increased 4% in Mexico, increased 5% in the U.S. and increased 4% in total. Same-store scrap revenue (on a constant currency basis) decreased 10% in total, with a 7% decrease in the U.S. and a 14% decrease in Mexico. Revenue generated by the stores opened or acquired since January 1, 2011, increased by $33,750,000 in Mexico and $18,024,000 in the United States, compared to the same period last year.
The gross profit margin on total merchandise sales was 38% during the first nine months of 2012 and 2011. The retail merchandise margin, which excludes scrap jewelry sales, was 42% during the first nine months of 2012, while the margin on wholesale scrap jewelry was 26%, compared to prior-year margins of 40% and 34%, respectively. The overall increase in retail margins was primarily the result of improved retail margins in Mexico, including lower acquisition costs for retail merchandise. The decrease in scrap margins reflected higher acquisition costs for gold. Pawn inventories increased from the prior year by 17% on a constant currency basis. The increase reflected a higher store count and store acquisitions, partially offset by higher inventory turnover compared to the prior year. At September 30, 2012, the Company s pawn inventories, at cost, were composed of: 38% jewelry (primarily gold), 40% electronics and appliances, 7% tools and 15% other. At September 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 Company s consumer loan and credit services loss provision was 25% of consumer loan and credit services fee revenue during the first nine months of 2012, compared to 23% in the first nine months of 2011. During the first nine months of 2012, the Company sold bad debt portfolios generated from consumer loan and credit services guarantees for proceeds of $279,000, compared to sales of $576,000 in the comparable prior-year period. The estimated fair value of liabilities under the CSO letters of credit, net of anticipated recoveries from customers, was $735,000, or 5.0% of the gross loan balance at September 30, 2012, compared to $877,000, or 6.7% of the gross loan balance at September 30, 2011, which is included as a component of the Company s accrued liabilities. The Company s loss reserve on consumer loans was $109,000, or 5.1% of the gross loan balance at September 30, 2012, compared to $49,000, or 5.0% of the gross loan balance at September 30, 2011.
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