FORT WORTH, Texas - FirstCash (NASDAQ:FCFS) Holdings, Inc. (NASDAQ:FCFS), an international operator of over 3,000 retail pawn stores and a leader in retail point-of-sale payment solutions, announced its operating results for the periods ending September 30, 2024. The company also declared a quarterly cash dividend of $0.38 per share, payable in November 2024.
The company achieved record revenue and earnings, with the third quarter marking a fifth consecutive double-digit growth in same-store pawn receivables in the U.S. pawn segment. The Latin America pawn segment also experienced growth in local currency pawn revenues and receivables. Additionally, American First Finance (AFF) saw a 14% increase in third-quarter gross origination volumes, primarily driven by a 25% growth in new merchant locations.
FirstCash opened 16 new pawn stores in the third quarter, contributing to a total of 83 store openings and acquisitions during the first nine months of the year. The expansion of retail pawn locations and earning assets, along with shareholder returns through dividends and share repurchases, have been primarily funded through operating cash flows.
The company reported gross revenues of $837 million for the third quarter, up 6% on a U.S. dollar basis and 9% on a constant currency basis compared to the prior-year quarter. Year-to-date revenues reached $2.5 billion, a 9% increase in both dollars and constant currency compared to the previous year.
Net income for the third quarter increased by 13% over the prior-year quarter on a GAAP basis, while adjusted net income increased by 6%. Year-to-date, net income totaled $175 million on a GAAP basis, with adjusted net income at $207 million.
For the trailing twelve-month period ending September 30, 2024, FirstCash reported revenues of a record $3.4 billion, net income of $245 million on a GAAP basis, and adjusted net income of $300 million. Adjusted EBITDA was $554 million, with operating cash flows at $441 million and adjusted free cash flows at $217 million.
The company's outlook for the remainder of 2024 remains highly positive, expecting continued growth in consolidated revenue and earnings driven by growth in earning asset balances and store additions.
This report is based on a press release statement.
In other recent news, FirstCash Holdings reported robust growth for Q2 2024, with revenues hitting $831 million, an 11% increase year-over-year. The company also saw a 25% rise in U.S. pawn segment income, contributing to solid earnings across its operations. Expansion efforts led to the addition of 47 new pawn locations in Q2, bringing the year-to-date total to 67. The company's Board of Directors declared a quarterly cash dividend of $0.38 per share, a 9% increase from the previous dividend, reflecting confidence in its financial health.
Several analyst actions have also been noted. Loop Capital maintained a Buy rating on the company's stock, citing key performance indicators such as pawn loan fee growth. BTIG initiated coverage with a Neutral rating, acknowledging FirstCash's consistent growth and expanding margins. TD Cowen, while reducing the stock price target, upgraded FirstCash from Hold to Buy, highlighting a strong operating environment.
In other company developments, significant actions were taken during FirstCash's Annual Meeting of Stockholders, including the election of directors, ratification of the independent auditor, and approval of executive compensation. These are recent developments providing insight into FirstCash's current position.
InvestingPro Insights
FirstCash Holdings' strong performance, as reported in its Q3 2024 results, is further supported by key metrics and insights from InvestingPro. The company's market capitalization stands at $4.93 billion, reflecting its significant presence in the retail pawn and point-of-sale payment solutions market.
InvestingPro data shows that FirstCash has maintained a solid revenue growth trajectory, with a 12.64% increase over the last twelve months as of Q2 2024. This aligns well with the company's reported record revenues and earnings in the recent quarter. The company's profitability is also noteworthy, with a gross profit margin of 61.57% and an operating income margin of 13.33% for the same period.
An InvestingPro Tip highlights that FirstCash has raised its dividend for 8 consecutive years, demonstrating a commitment to shareholder returns. This is consistent with the company's announcement of a $0.38 per share quarterly dividend. The current dividend yield stands at 1.38%, which may be attractive to income-focused investors.
Another relevant InvestingPro Tip indicates that FirstCash's liquid assets exceed its short-term obligations, suggesting a strong financial position. This aligns with the company's ability to fund expansion and shareholder returns primarily through operating cash flows, as mentioned in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips for FirstCash Holdings, providing a deeper understanding of the company's financial health and market position.
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