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FirstCash, Inc. (FCFS)

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  • First Cash Financial Services (FCFS) Surpasses Q2 Earnings Estimates
    Zacks

    First Cash Financial Services (FCFS) Surpasses Q2 Earnings Estimates

    First Cash Financial Services (FCFS) delivered earnings and revenue surprises of 24.00% and -4.80%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?

  • Benzinga

    Recap: FirstCash Q2 Earnings

    Shares of FirstCash (NASDAQ:FCFS) were unchanged after the company reported Q2 results.Quarterly Results Earnings per share fell 24.39% year over year to $0.62, which beat the estimate of $0.58.Revenue of $412,746,000 decreased by 7.46% year over year, which missed the estimate of $437,160,000.Guidance FirstCash hasn't issued any earnings guidance for the time being.View more earnings on FCFSRevenue guidance hasn't been issued by the company for now.Price Action Company's 52-week high was at $106.8052-week low: $60.04Price action over last quarter: down 2.34%Company Overview FirstCash Inc Financial Services operates pawn stores in the United States and Latin America. Its primary business involves making small loans secured by personal property. These pawn loans give the borrower the option of either repaying the loans with interest or forfeiting the property without further penalty. Close to 30% of total company revenue comes from interest earned on the loans. Close to 70% of total revenue comes from reselling forfeited property in the company's retail stores. Revenue is split almost equally between loans made in the United States, where the company has more than 300 retail locations, and loans made in Latin America, where the company has over 700 locations in Mexico and several more in Guatemala.See more from Benzinga * Earnings Scheduled For July 22, 2020(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • GlobeNewswire

    FirstCash Reports Second Quarter Revenues and Earnings; 91 Stores Added Year-to-Date Through New Openings and Acquisitions; Company Announces Exit from Unsecured Consumer Lending Operations

    FORT WORTH, Texas, July 22, 2020 (GLOBE NEWSWIRE) -- FirstCash, Inc. (the “Company”) (Nasdaq: FCFS), the leading international operator of over 2,700 retail pawn stores in the U.S. and Latin America, today announced operating results for the three and six month periods ended June 30, 2020, and an update on the impact of COVID-19. The Company also announced its exit from all unsecured consumer lending operations effective June 30, 2020. In addition, the Board of Directors declared a $0.27 per share quarterly cash dividend to be paid in August 2020. Mr. Rick Wessel, chief executive officer, stated, “In these challenging times, we have been relentless in our efforts to safely serve customers while also protecting our employees. Today, over 99% of the Company’s 2,745 stores in the United States and Latin America are open and providing essential financial services and products in our communities. As always, we are proud and appreciative of the dedication and resilience demonstrated by all of our team members.“Our second quarter results demonstrated the inherent diversification and uniqueness of the pawnshop business model, which generates revenues from both specialty retail operations and small-dollar, non-recourse lending. Second quarter retail sales were especially robust in the U.S., driven by our ability to remain open and meet the significant customer demand for popular “stay-at-home” products such as consumer electronics and sporting goods. Consistent with the trends being experienced by other consumer lenders, originations of new pawn loans fell significantly in April due to the general economic lock-down and rapid deployment of government stimulus programs. While not fully recovered, lending demand began rebounding in May and continues to date.“Cash flows were particularly impressive during the quarter, which were used to reduce outstanding debt by $156 million over the last three months, and provide substantial liquidity to fund an anticipated rebound in pawn loan demand. We continued to make long-term investments in store growth as well, as demonstrated by the addition of 91 locations so far this year, including 24 stores in the second quarter. Additionally, we are pleased to report that the Board of Directors has again declared our quarterly cash dividend,” concluded Mr. Wessel.This release contains adjusted earnings measures, which exclude, among other things, merger and other acquisition expenses, certain non-cash foreign currency exchange gains and losses, non-cash write-offs of certain lease intangibles and the impairment of certain other assets which are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.  Three Months Ended June 30,   As Reported (GAAP) Adjusted (Non-GAAP) In thousands, except per share amounts 2020 2019 2020 2019 Revenue $412,746  $446,014  $412,746  $446,014  Net income $25,873  $33,048  $25,872  $35,297  Diluted earnings per share $0.62  $0.76  $0.62  $0.82  EBITDA (non-GAAP measure) $53,962  $64,189  $53,930  $67,094  Weighted-average diluted shares 41,531  43,256  41,531  43,256    Six Months Ended June 30,   As Reported (GAAP) Adjusted (Non-GAAP) In thousands, except per share amounts 2020 2019 2020 2019 Revenue $879,236  $913,618  $879,236  $913,618  Net income $58,791  $75,703  $66,167  $77,818  Diluted earnings per share $1.41  $1.74  $1.59  $1.79  EBITDA (non-GAAP measure) $118,586  $141,072  $128,536  $143,786  Weighted-average diluted shares 41,769  43,456  41,769  43,456  Consolidated Earnings Highlights * Due primarily to the impacts of COVID-19, lower foreign exchange rates and the wind-down of consumer lending operations, diluted earnings per share decreased 18% on a GAAP basis and 24% on an adjusted non-GAAP basis in the second quarter of 2020 compared to the prior-year quarter. For the six month year-to-date period, diluted earnings per share decreased 19% on a GAAP basis and 11% on an adjusted non-GAAP basis. * The COVID-19 related impact on lending demand resulted in pawn fee revenues declining 26% in the second quarter and 12% year-to-date, as compared to the respective prior-year periods. The impact on pawn fees was partially offset by increases in net revenues (gross profit) from retail operations of 13% in the second quarter and 10% year-to-date. * Foreign exchange rates in Latin America were also impacted by COVID-19, affecting U.S. dollar-reported earnings per share and representing approximately $0.04 of earnings drag in the second quarter and $0.05 year-to-date. * While contraction and termination of non-core unsecured consumer lending operations did not impact second quarter 2020 earnings per share on a GAAP basis and reduced year-over-year GAAP earnings by just $0.05 per share year-to-date, it reduced adjusted non-GAAP earnings per share by $0.03 in the second quarter and $0.10 year-to-date compared to the respective prior-year periods. * Net income for the second quarter totaled $26 million on both a GAAP and adjusted non-GAAP basis. For the trailing twelve months ended June 30, 2020, consolidated net income was $148 million, while adjusted EBITDA totaled $289 million. * Cash flow from operating activities was $66 million in the second quarter and $269 million for the trailing twelve months ended June 30, 2020. Adjusted free cash flow, a non-GAAP financial measure, was a record $182 million for the quarter and on a trailing twelve months basis was a record $421 million.Acquisitions and Store Opening Highlights * A total of 20 de novo locations were opened in Latin America during the second quarter, which included 18 locations in Mexico, one in Colombia and one in Guatemala. Year-to-date, a total of 51 de novo stores have been opened, including 44 locations in Mexico, five in Colombia and two in Guatemala. * The Company acquired four Prendamex stores from a franchisee during the second quarter of 2020. Year-to-date, a total of 40 stores have been acquired in Mexico. * The Company added a total 91 locations in the first six months of 2020 and 133 over the trailing twelve month period ended June 30, 2020.U.S. Pawn Operations * During the second quarter, all of the current 1,035 U.S. stores remained operational, excluding a very limited number of temporary closures primarily related to local decrees or the Company’s COVID-19 safety protocols. * Total domestic revenues for the second quarter increased 4%. Revenues increased 6%, excluding the decline in fees from non-core unsecured consumer lending operations. * Despite incremental expenses related to COVID-19 and the contraction of non-core unsecured consumer lending operations, domestic pre-tax operating income increased 3% in the second quarter compared to the prior-year quarter. * With the onset of COVID-19 related lock-downs of the economy and the rapid federal stimulus response, pawn loan originations in the U.S. fell significantly in April, declining almost 60% for the month. Beginning in May, pawn loan originations began to slowly improve but were still down 30% to 35% in early July. Resulting pawn balances at June 30 were down 40% in total and on a same-store basis compared to the prior year. * Resulting pawn fee revenues for the quarter were down 20% in total and on a same-store basis. The revenue decline was smaller than the decrease in loan balances, reflecting strong collections of fees and principal on loans outstanding at the beginning of the quarter and a smaller percentage of forfeited loans during the quarter. The resulting average monthly yield of 15% on the pawn loan portfolio represented an improvement of approximately 300 basis points compared to the yield in the prior-year quarter. * Retail sales and margins in the second quarter were especially strong and fully offset the impact from the decline in domestic pawn fee revenue. Total retail sales increased 24% in the second quarter, while same-store retail sales increased a record 24%. The Company’s ability to keep its stores open during the quarter as an essential business and offer popular stay-at-home products such as laptops, tablets, monitors, gaming systems and sporting goods drove the strong retail sales demand. * Second quarter retail margins of 42% improved significantly compared to margins of 38% in the same quarter last year, reflecting the strong retail demand and lower levels of aged inventory which limited the need for normal discounting. The margin improvement coupled with the increase in top-line retail sales drove a 36% increase in gross profit from retail operations for the quarter. Inventory turns continued to improve and aged inventories continued to decline, accounting for less than 3% of total inventories at June 30, compared to 4% a year ago. * Net revenue from non-core scrap jewelry sales increased 20% for the quarter and 6% year-to-date compared to the respective prior-year periods, driven primarily by accelerating margin improvement related to increased gold prices.U.S. Consumer Lending Operations * The Company made the strategic decision to cease offering unsecured consumer loan and credit services products, including all payday and installment loans, in the U.S. Effective June 30, 2020, the Company no longer has any unsecured consumer lending or credit services operations in the U.S. or Latin America. * Revenues from consumer lending operations totaled only $0.6 million in the second quarter compared to $5.4 million in the second quarter of last year.Note: Certain growth rates in “Latin America Operations” below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the three month period ended June 30, 2020 was 23.4 pesos / dollar, an unfavorable change of 23% versus the comparable prior-year period, and for the six month period ended June 30, 2020 was 21.6 pesos / dollar, an unfavorable change of 13% versus the prior-year period.Latin America Pawn Operations * Over 99% of the Company’s stores in Latin America are currently open and operating. During the second quarter, operations in each country were impacted as follows: * Mexico (1,628 total locations) - Excluding short-term closings due to regulatory decree or safety protocols, stores in Mexico were generally open most of the quarter. However, retail sales in all stores were completely prohibited by regulators during the last three weeks of May. * Guatemala (56 total locations) - Stores in Guatemala were generally open during the quarter, although regulators imposed country-wide lock-downs on many weekends and two mall-based locations were closed for extended periods. * El Salvador - (13 total locations) - Stores in El Salvador were closed as part of a broad government imposed lock-down from late March through the end of May. * Colombia - (13 total locations) - Stores in Colombia were closed as part of a broad government imposed lock-down beginning in late March and continuing through various dates in June and early July. * Total revenues declined 27% in the second quarter, reflecting the temporary store closings, retail restrictions and other impacts of COVID-19, including weaker foreign currencies. Revenues on a constant currency basis declined 12% in the second quarter while pre-tax operating income declined 43%, or 36% on a constant currency basis. * Consistent with U.S. trends, which saw sharp declines in economic activity and personal spending, pawn loans outstanding at June 30 decreased 36% on a U.S. dollar translated basis and 24% on a constant currency basis compared to the prior year. Same-store pawn loans at quarter end decreased 38% on a U.S. dollar translated basis and 27% on a constant currency basis. While there were limited government stimulus programs in the region in response to the pandemic, we believe that cross-border remittance payments from the U.S. provided additional liquidity early in the quarter, with the Bank of Mexico reporting a 35% year-over-year surge in remittances to Mexico in March which was tied to the drop in the exchange rate. * Pawn fees decreased 36% in total, or 22% on a constant currency basis, as compared to the prior-year quarter. On a same-store basis, pawn fees decreased 39% on a U.S. dollar basis and were down 25% on a constant currency basis compared to the prior-year quarter. Also similar to U.S. results, pawn redemptions in Latin America were strong and drove improved yields during the quarter. * Retail sales demand and margins in Latin America, while strong for “essential” general merchandise categories, were negatively impacted by extended store closures in certain markets and the three week shutdown of all retail operations in Mexico during May. Results for the full quarter saw a 29% decrease in total retail sales, or 13% on a constant currency basis. Same-store retail sales decreased 31% on a U.S. dollar basis and were down 16% on a constant currency basis. * Segment retail sales margins were 36% in the second quarter compared to 35% in both the previous sequential quarter and the second quarter of the prior-year, reflecting strong turns for essential products such as computers, tablets and phones. Aged inventories remained low at less than 2% of total inventories. * Net revenue from non-core scrap jewelry sales was $3.3 million for the quarter compared to $0.1 million in the prior-year period with sales margins of 25%, driven by increased dollar-denominated gold prices.Liquidity * During the second quarter, the Company utilized operating cash flows to pay down $156 million in debt under its revolving bank credit facilities. The lower debt balances coupled with the recent decline in interest rates resulted in an 18% decrease in interest expense during the quarter as compared to the prior-year quarter. * The Company’s strong liquidity position at June 30, 2020 includes cash balances of $71 million and $323 million of availability under its bank lines of credit.   * The net debt ratio improved to 1.5 to 1 for the trailing twelve months ended June 30, 2020, compared to 1.9 to 1 a year ago. See non-GAAP financial measures elsewhere in this release. * The Board of Directors declared a $0.27 per share second quarter cash dividend on common shares outstanding, which will be paid on August 28, 2020 to stockholders of record as of August 14, 2020. This represents an annual cash dividend of $1.08 per share. Any future dividends are subject to approval by the Company’s Board of Directors. * As previously announced, the Company temporarily suspended its share repurchase program beginning in March. During the first quarter, the Company repurchased 981,000 shares at an aggregate cost of $80 million and $48 million remains under the current share repurchase authorization. 2020 Outlook * Due to the uncertainty around COVID-19 and foreign currency volatility, the Company withdrew its initial 2020 earnings guidance on April 22, 2020. Given the ongoing uncertainties regarding the pace of the anticipated recovery and currency volatility, the Company has not reinstated earnings guidance for the balance of the year. However, as the Company continues to evaluate its 2020 earning results, the following factors are expected to impact its comparisons to prior-year results: * Impact of COVID-19: The extent to which COVID-19 continues to impact the Company’s operations will depend on future developments, which are uncertain and cannot be predicted with confidence, including the ongoing duration, severity and scope of the outbreak and its impact on borrowing demand and retail operations. For example, the normalization of demand for pawn loans could be delayed in the short-term by reduced personal spending if schools and other venues remain closed or delayed by additional government stimulus payments and benefit programs. Furthermore, additional store closures or operating restrictions could negatively impact both the Company’s retail sales and pawn fees. In addition, the expected rebound in pawn fee revenue will naturally lag the expected recovery in pawn receivables. Accordingly, pawn fees in the third quarter will be impacted by the lower pawn balances as we begin the quarter. Additionally, retail sales volumes in the second half of the year are expected to be impacted by lower levels of inventory as the third quarter begins. * Currency volatility: Global economic uncertainty due to the COVID-19 pandemic has strengthened the relative value of the U.S. dollar and negatively impacted developing market currencies, including the Mexican peso, which is the primary currency for the Company’s foreign operations. The current peso to dollar exchange rate of approximately 22.5 to 1 compares to an average rate in the first half of 2020 of 21.6 to 1 and an average rate of 19.3 to 1 during all of 2019. For 2020, the Company estimates that each full Mexican peso change in the exchange rate to the U.S. dollar represents approximately $0.08 to $0.10 per share of annualized earnings impact to the Company. * Wind-down of unsecured consumer lending operations: The Company ceased all unsecured consumer lending operations in the U.S. effective June 30, 2020, and expects no material earnings or losses from these operations in the second half of 2020. As a comparison, earnings from consumer lending operations contributed approximately $0.05 per share during the second half of 2019. * Income tax rate: The effective income tax rate is expected to range from 26.5% to 28.0% for 2020 compared to the actual rate of 26.7% in 2019. * New store openings: In its original 2020 store opening guidance, the Company expected to open approximately 90 to 100 new locations this year. A total of 51 stores were opened in the first half of the year and there is a strong pipeline of additional stores leased and under construction. While currently on pace to meet the lower end of the full year target, future store openings in the second half of the year remain subject to uncertainties related to the COVID-19 pandemic, including but not limited to, the ability to continue construction projects and obtain necessary licenses, permits, utility services, store equipment, supplies and adequate staffing.Additional Commentary and AnalysisMr. Wessel provided the following additional insights on the impacts of COVID-19 and the Company’s operating results:“FirstCash continues to focus on the safety of all customers and employees as we deal with the impacts and uncertainties of the pandemic. We remain committed to our customers by keeping our stores open to provide essential products and services as safely as possible. Our employees are vitally important to us as well, and we continue to enforce appropriate health protocols in our stores and offices. During the second quarter alone, we incurred approximately $1.3 million of extraordinary expenses related to health and safety efforts to protect customers and employees. In addition, we are pleased to report that we have not furloughed or laid off any employees in the U.S. or Mexico to date due to the pandemic.“The financial impacts of COVID-19 on our pawn operations has been unexpected in many respects. While demand for pawn loans typically increases in periods of general economic uncertainty, we believe that many of our customers are more financially liquid now than would be expected due to a combination of sharply reduced personal spending patterns, rent and utility forbearance programs, government stimulus payments and enhanced unemployment benefits. In Latin America, where government stimulus responses have been limited, we believe that increased cash remittances from the U.S. have provided additional customer liquidity. As a result, new loan originations declined sharply in April and early May being down almost 60% in the U.S. and over 40% in Mexico. Partially offsetting the decline in loan originations, customer liquidity and improved redemption rates drove significantly improved yields on the pawn loan portfolio in the second quarter.“As the second quarter progressed, lending demand steadily improved and was coupled with the continued increase in the effective yield on the pawn portfolio. These trends have continued in July, with daily year-over-year originations over the last two weeks generally down in a range of 30% to 35% in the U.S. and 25% to 30% in Mexico. We believe that we will see a continued recovery in loan originations with improved yields over the next several months, although the pace of the expected recovery remains difficult to project and could be impacted positively or negatively by many factors.“We are proactively managing operations to the extent possible in light of these impacts. Our ability to keep stores open and operating safely during the second quarter provided the opportunity for strong retail sales of essential products. In the U.S., stimulus payments to our customers beginning in mid-April helped to further drive retail sales and margins across all product categories throughout the quarter. July-to-date, retail sales in both the U.S. and Mexico remain solid with the continuation of improved retail margins experienced in the second quarter. General merchandise inventories, while down year-over-year, have been supplemented by a higher percentage of direct purchases from customers which are helping to drive improved redemption rates, turns and margins. We have also launched store-based outreach programs to new and former customers to drive revenue and we continue to optimize expenses through reduced store operating hours, leaner staffing levels realized through normal attrition and other cost saving initiatives in our stores and corporate offices.“Despite the short-term disruptions from COVID-19, we remain confident and committed to our long-term growth strategy. Our liquidity and strong balance sheet have allowed us to continue adding stores through both de novo openings and targeted acquisitions this year. We also made the strategic decision this quarter to fully eliminate unsecured consumer lending products in all markets. While this decision will result in a small reduction in revenue and operating income, we believe it is the right step to further reduce regulatory exposure and allow for total focus on our core pawn operations.“Pawnshops have historically served unbanked and underbanked consumers well in periods of economic uncertainty and tightening of available credit by other small dollar lenders. The strength of our cash flows and balance sheet allows us to fund expected loan demand and to continue investing in new stores. Combined with our scale and other competitive advantages, we believe that FirstCash is uniquely positioned in these unusual and uncertain times,” concluded Mr. Wessel.About FirstCashFirstCash is the leading international operator of pawn stores with more than 2,700 retail pawn locations and approximately 19,000 employees in 24 U.S. states, the District of Columbia and four countries in Latin America including Mexico, Guatemala, El Salvador and Colombia. FirstCash focuses on serving cash and credit constrained consumers through its retail pawn locations, which buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small consumer pawn loans secured by pledged personal property.FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s website located at http://www.firstcash.com.Forward-Looking InformationThis release contains forward-looking statements about the business, financial condition and prospects of FirstCash, Inc. and its wholly owned subsidiaries (together, the “Company”). Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, the risks, uncertainties and regulatory developments (1) related to the COVID-19 pandemic, which include risks and uncertainties related to the current unknown duration of the COVID-19 pandemic, the impact of governmental responses that have been, and may in the future be, imposed in response to the pandemic, including stimulus programs which could adversely impact lending demand and regulations which could adversely affect the Company’s ability to continue to fully operate, potential changes in consumer behavior and shopping patterns which could impact demand for both the Company’s pawn loan and retail products, the deterioration in the economic conditions in the United States and Latin America which potentially could have an impact on discretionary consumer spending, and currency fluctuations, primarily involving the Mexican peso and (2) those discussed and described in the Company’s 2019 annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 3, 2020, including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed subsequently by the Company with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law. CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands, except per share amounts)  Three Months Ended Six Months Ended   June 30, June 30,   2020 2019 2020 2019 Revenue:         Retail merchandise sales $287,400  $278,754  $584,029  $562,995  Pawn loan fees 101,990  136,923  244,105  278,115  Wholesale scrap jewelry sales 22,785  24,981  49,156  56,691  Consumer loan and credit services fees 571  5,356  1,946  15,817  Total revenue 412,746  446,014  879,236  913,618            Cost of revenue:         Cost of retail merchandise sold 171,511  176,272  356,206  355,621  Cost of wholesale scrap jewelry sold 18,357  23,934  41,204  54,287  Consumer loan and credit services loss provision (223) 1,503  (584) 3,606  Total cost of revenue 189,645  201,709  396,826  413,514            Net revenue 223,101  244,305  482,410  500,104            Expenses and other income:         Store operating expenses 141,051  148,347  294,551  295,199  Administrative expenses 28,386  31,696  61,288  63,850  Depreciation and amortization 10,324  10,510  20,998  20,384  Interest expense 6,974  8,548  15,392  16,918  Interest income (525) (155) (710) (359) Merger and other acquisition expenses 134  556  202  705  (Gain) loss on foreign exchange (614) (483) 2,071  (722) Write-offs and impairments of certain lease intangibles and other assets 182  —  5,712  —  Total expenses and other income 185,912  199,019  399,504  395,975            Income before income taxes 37,189  45,286  82,906  104,129            Provision for income taxes 11,316  12,238  24,115  28,426            Net income $25,873  $33,048  $58,791  $75,703            Earnings per share:         Basic $0.62  $0.77  $1.41  $1.75  Diluted $0.62  $0.76  $1.41  $1.74            Weighted-average shares outstanding:         Basic 41,440  43,081  41,676  43,298  Diluted 41,531  43,256  41,769  43,456            Dividends declared per common share $0.27  $0.25  $0.54  $0.50  FIRSTCASH, INC. CONSOLIDATED BALANCE SHEETS (unaudited, in thousands)  June 30, December 31,   2020 2019 2019 ASSETS       Cash and cash equivalents $70,956  $67,012  $46,527  Fees and service charges receivable 30,418  46,991  46,686  Pawn loans 230,383  375,167  369,527  Consumer loans, net 176  3,850  751  Inventories 179,967  266,440  265,256  Income taxes receivable 4,988  1,041  875  Prepaid expenses and other current assets 10,689  9,590  11,367  Total current assets 527,577  770,091  740,989          Property and equipment, net 341,114  290,725  336,167  Operating lease right of use asset 283,063  293,357  304,549  Goodwill 929,575  940,653  948,643  Intangible assets, net 84,389  87,200  85,875  Other assets 9,037  10,890  11,506  Deferred tax assets 7,764  11,570  11,711  Total assets $2,182,519  $2,404,486  $2,439,440          LIABILITIES AND STOCKHOLDERS’ EQUITY       Accounts payable and accrued liabilities $69,810  $71,410  $72,398  Customer deposits 35,439  40,665  39,736  Income taxes payable 13,230  317  4,302  Lease liability, current 83,580  84,513  86,466  Total current liabilities 202,059  196,905  202,902          Revolving unsecured credit facilities 200,000  340,000  335,000  Senior unsecured notes 296,923  296,222  296,568  Deferred tax liabilities 67,842  60,069  61,431  Lease liability, non-current 182,915  184,348  193,504  Total liabilities 949,739  1,077,544  1,089,405          Stockholders’ equity:       Common stock 493  493  493  Additional paid-in capital 1,226,512  1,227,478  1,231,528  Retained earnings 763,810  660,845  727,476  Accumulated other comprehensive loss (172,150) (103,932) (96,969) Common stock held in treasury, at cost (585,885) (457,942) (512,493) Total stockholders’ equity 1,232,780  1,326,942  1,350,035  Total liabilities and stockholders’ equity $2,182,519  $2,404,486  $2,439,440  FIRSTCASH, INC. OPERATING INFORMATION (UNAUDITED)The Company’s reportable segments are as follows: * U.S. operations * Latin America operations - Includes operations in Mexico, Guatemala, El Salvador and ColombiaThe Company provides revenues, cost of revenues, store operating expenses, pre-tax operating income and earning assets by segment. Store operating expenses include salary and benefit expense of store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies and other costs incurred by the stores.U.S. Operations Segment ResultsThe following table details earning assets, which consist of pawn loans, inventories and unsecured consumer loans, net as well as other earning asset metrics of the U.S. operations segment as of June 30, 2020 as compared to June 30, 2019 (dollars in thousands, except as otherwise noted): As of June 30, Increase /  2020 2019 (Decrease) U.S. Operations Segment         Earning assets:         Pawn loans$158,253  $262,356  (40)%  Inventories 120,408   172,875  (30)%  Consumer loans, net (1) 176   3,850  (95)%   $278,837  $439,081  (36)%            Average outstanding pawn loan amount (in ones)$190  $166  14%            Composition of pawn collateral:         General merchandise31% 37%    Jewelry69% 63%     100% 100%              Composition of inventories:         General merchandise38% 44%    Jewelry62% 56%     100% 100%              Percentage of inventory aged greater than one year3% 4%              Inventory turns (trailing twelve months retail sales divided by average inventories)3.2 times 2.8 times    (1) Effective June 30, 2020, the Company ceased offering unsecured consumer lending and credit services products, including all payday and installment loans, in the U.S. FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)The following table presents segment pre-tax operating income of the U.S. operations segment for the three months ended June 30, 2020 as compared to the three months ended June 30, 2019 (dollars in thousands):  Three Months Ended      June 30, Increase /   2020 2019 (Decrease) U.S. Operations Segment        Revenue:        Retail merchandise sales $208,944  $168,918  24%  Pawn loan fees 71,900  90,126  (20)%  Wholesale scrap jewelry sales 9,557  15,788  (39)%  Consumer loan and credit services fees 571  5,356  (89)%  Total revenue 290,972  280,188  4%           Cost of revenue:        Cost of retail merchandise sold 121,661  104,662  16%  Cost of wholesale scrap jewelry sold 8,432  14,853  (43)%  Consumer loan and credit services loss provision (223) 1,503  (115)%  Total cost of revenue 129,870  121,018  7%           Net revenue 161,102  159,170  1%           Segment expenses:        Store operating expenses 103,302  103,009  —%  Depreciation and amortization 5,561  5,269  6%  Total segment expenses 108,863  108,278  1%           Segment pre-tax operating income $52,239  $50,892  3%  FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)The following table presents segment pre-tax operating income of the U.S. operations segment for the six months ended June 30, 2020 as compared to the six months ended June 30, 2019 (dollars in thousands):  Six Months Ended      June 30, Increase /   2020 2019 (Decrease) U.S. Operations Segment        Revenue:        Retail merchandise sales $404,910  $355,733  14%  Pawn loan fees 169,757  188,002  (10)%  Wholesale scrap jewelry sales 25,035  38,573  (35)%  Consumer loan and credit services fees 1,946  15,817  (88)%  Total revenue 601,648  598,125  1%           Cost of revenue:        Cost of retail merchandise sold 241,190  222,406  8%  Cost of wholesale scrap jewelry sold 22,438  36,123  (38)%  Consumer loan and credit services loss provision (584) 3,606  (116)%  Total cost of revenue 263,044  262,135  —%           Net revenue 338,604  335,990  1%           Segment expenses:        Store operating expenses 211,008  206,893  2%  Depreciation and amortization 10,962  10,314  6%  Total segment expenses 221,970  217,207  2%           Segment pre-tax operating income $116,634  $118,783  (2)%  FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)Latin America Operations Segment ResultsThe Company’s management reviews and analyzes certain operating results in Latin America on a constant currency basis because the Company believes this better represents the Company’s underlying business trends. Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. The wholesale scrap jewelry sales in Latin America are priced and settled in U.S. dollars and are not affected by foreign currency translation, as are a small percentage of the operating and administrative expenses in Latin America, which are billed and paid in U.S. dollars.  Amounts presented on a constant currency basis are denoted as such. See the “Constant Currency Results” section below for additional discussion of constant currency results.The following table provides exchange rates for the Mexican peso, Guatemalan quetzal and Colombian peso for the current and prior-year periods: June 30, Favorable /  2020 2019 (Unfavorable) Mexican peso / U.S. dollar exchange rate:      End-of-period23.0 19.2 (20)% Three months ended23.4 19.1 (23)% Six months ended21.6 19.2 (13)%        Guatemalan quetzal / U.S. dollar exchange rate:      End-of-period7.7 7.7 —% Three months ended7.7 7.7 —% Six months ended7.7 7.7 —%        Colombian peso / U.S. dollar exchange rate:      End-of-period3,759 3,206 (17)% Three months ended3,846 3,240 (19)% Six months ended3,689 3,188 (16)% FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)The following table details earning assets, which consist of pawn loans and inventories as well as other earning asset metrics of the Latin America operations segment as of June 30, 2020 as compared to June 30, 2019 (dollars in thousands, except as otherwise noted):           Constant Currency Basis             As of                June 30, Increase /  As of June 30,   2020 (Decrease)  2020 2019 Decrease (Non-GAAP) (Non-GAAP) Latin America Operations Segment                Earning assets:                Pawn loans$72,130  $112,811   (36)%   $85,373   (24)%   Inventories 59,559   93,565   (36)%   70,959   (24)%    $131,689  $206,376   (36)%   $156,332   (24)%                    Average outstanding pawn loan amount  (in ones)$59  $69   (14)%   $70   1%                    Composition of pawn collateral:                General merchandise66% 73%           Jewelry34% 27%            100% 100%                            Composition of inventories:                General merchandise61% 74%           Jewelry39% 26%            100% 100%                            Percentage of inventory aged greater than one year2% 1%                            Inventory turns (trailing twelve months retail sales divided by average inventories)3.9 times 3.8 times           FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)The following table presents segment pre-tax operating income of the Latin America operations segment for the three months ended June 30, 2020 as compared to the three months ended June 30, 2019 (dollars in thousands):          Constant Currency Basis           Three Months             Ended       Three Months Ended     June 30, Increase /   June 30, Increase / 2020 (Decrease)   2020 2019 (Decrease) (Non-GAAP) (Non-GAAP) Latin America Operations Segment               Revenue:               Retail merchandise sales $78,456  $109,836   (29)%   $95,441   (13)%   Pawn loan fees 30,090  46,797   (36)%   36,542   (22)%   Wholesale scrap jewelry sales 13,228  9,193   44%   13,228   44%   Total revenue 121,774  165,826   (27)%   145,211   (12)%                   Cost of revenue:               Cost of retail merchandise sold 49,850  71,610   (30)%   60,612   (15)%   Cost of wholesale scrap jewelry sold 9,925  9,081   9%   11,998   32%   Total cost of revenue 59,775  80,691   (26)%   72,610   (10)%                   Net revenue 61,999  85,135   (27)%   72,601   (15)%                   Segment expenses:               Store operating expenses 37,749  45,338   (17)%   45,096   (1)%   Depreciation and amortization 3,602  3,579   1%   4,280   20%   Total segment expenses 41,351  48,917   (15)%   49,376   1%                   Segment pre-tax operating income $20,648  $36,218   (43)%   $23,225   (36)%   FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)The following table presents segment pre-tax operating income of the Latin America operations segment for the six months ended June 30, 2020 as compared to the six months ended June 30, 2019 (dollars in thousands):          Constant Currency Basis           Six Months             Ended       Six Months Ended     June 30, Increase /   June 30, Increase / 2020 (Decrease)   2020 2019 (Decrease) (Non-GAAP) (Non-GAAP) Latin America Operations Segment               Revenue:               Retail merchandise sales $179,119  $207,262   (14)%   $201,133   (3)%   Pawn loan fees 74,348  90,113   (17)%   83,425   (7)%   Wholesale scrap jewelry sales 24,121  18,118   33%   24,121   33%   Total revenue 277,588  315,493   (12)%   308,679   (2)%                   Cost of revenue:               Cost of retail merchandise sold 115,016  133,215   (14)%   129,110   (3)%   Cost of wholesale scrap jewelry sold 18,766  18,164   3%   21,078   16%   Total cost of revenue 133,782  151,379   (12)%   150,188   (1)%                   Net revenue 143,806  164,114   (12)%   158,491   (3)%                   Segment expenses:               Store operating expenses 83,543  88,306   (5)%   92,987   5%   Depreciation and amortization 7,665  6,884   11%   8,517   24%   Total segment expenses 91,208  95,190   (4)%   101,504   7%                   Segment pre-tax operating income $52,598  $68,924   (24)%   $56,987   (17)%   FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)Consolidated Results of OperationsThe following table reconciles pre-tax operating income of the Company’s U.S. operations segment and Latin America operations segment discussed above to consolidated net income (in thousands): Three Months Ended Six Months Ended  June 30, June 30,  2020 2019 2020 2019 Consolidated Results of Operations        Segment pre-tax operating income:        U.S. operations segment pre-tax operating income$52,239  $50,892  $116,634  $118,783  Latin America operations segment pre-tax operating income20,648  36,218  52,598  68,924  Consolidated segment pre-tax operating income72,887  87,110  169,232  187,707           Corporate expenses and other income:        Administrative expenses28,386  31,696  61,288  63,850  Depreciation and amortization1,161  1,662  2,371  3,186  Interest expense6,974  8,548  15,392  16,918  Interest income(525) (155) (710) (359) Merger and other acquisition expenses134  556  202  705  (Gain) loss on foreign exchange(614) (483) 2,071  (722) Write-offs and impairments of certain lease intangibles and other assets182  —  5,712  —  Total corporate expenses and other income35,698  41,824  86,326  83,578           Income before income taxes37,189  45,286  82,906  104,129           Provision for income taxes11,316  12,238  24,115  28,426           Net income$25,873  $33,048  $58,791  $75,703  FIRSTCASH, INC. STORE COUNT ACTIVITYThe following tables detail store count activity:  Three Months Ended June 30, 2020   U.S. Latin America     Operations Segment (2) Operations Segment (3) Total Locations Total locations, beginning of period 1,052  1,688  2,740  New locations opened —  20  20  Locations acquired —  4  4  Locations closed or consolidated (1) (17) (2) (19) Total locations, end of period 1,035  1,710  2,745                    Six Months Ended June 30, 2020   U.S. Latin America     Operations Segment (2) Operations Segment (3) Total Locations Total locations, beginning of period 1,056  1,623  2,679  New locations opened —  51  51  Locations acquired —  40  40  Locations closed or consolidated (1) (21) (4) (25) Total locations, end of period 1,035  1,710  2,745  (1)  Effective June 30, 2020, the Company ceased offering unsecured consumer lending and credit services products, including all payday and installment loans, in the U.S. Store closures in the U.S. include: Three Months Ended Six Months Ended  June 30, 2020 June 30, 2020 First Cash Advance stores in Texas (credit services only) 6   6  Cashland stores in Ohio and Indiana (former consumer loan stores) 6   7  Consolidation of other pawn stores 5   8  Total locations closed or consolidated 17   21  (2)  The table does not include 42 check cashing locations operated by independent franchisees under franchising agreements with the Company.(3)  The table does not include 30 Prendamex pawn locations operated by independent franchisees under franchising agreements with the Company. FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (UNAUDITED)The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined in SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly titled measures of other companies.While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and other acquisition expenses to allow more accurate comparisons of the financial results to prior periods and because the Company does not consider these merger and other acquisition expenses to be related to the organic operations of the acquired businesses or its continuing operations and such expenses are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. Merger and other acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and to improve comparability of current periods presented with prior periods due to the adoption of ASC 842 on January 1, 2019. FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)Adjusted Net Income and Adjusted Diluted Earnings Per ShareManagement believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance of its continuing operations. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.The following table provides a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30,  2020 2019 2020 2019  In Thousands Per Share In Thousands Per Share In Thousands Per Share In Thousands Per Share Net income and diluted earnings per share, as reported$25,873  $0.62  $33,048  $0.76  $58,791  $1.41  $75,703  $1.74  Adjustments, net of tax:                Merger and other acquisition expenses96  —  426  0.01  146  —  530  0.01  Non-cash foreign currency (gain) loss related to lease liability(308) —  (136) —  2,761  0.07  (374) (0.01) Non-cash write-off of certain merger related lease intangibles (1)140  —  —  —  2,935  0.07  —  —  Non-cash impairment of certain other assets (2)—  —  —  —  1,463  0.04  —  —  Consumer lending wind-down costs and asset impairments71  —  1,959  0.05  71  —  1,959  0.05  Adjusted net income and diluted earnings per share$25,872  $0.62  $35,297  $0.82  $66,167  $1.59  $77,818  $1.79  (1) Certain above/below market store lease intangibles, recorded in conjunction with the Cash America merger in 2016, were written-off as a result of the Company purchasing the real estate from the landlords of the respective stores.(2) Impairment related to a non-operating asset in which the Company determined that an other than temporary impairment existed as of March 31, 2020. FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)The following tables provide a reconciliation of the gross amounts, the impact of income taxes and the net amounts for the adjustments included in the table above (in thousands): Three Months Ended June 30,  2020 2019  Pre-tax Tax After-tax Pre-tax Tax After-tax Merger and other acquisition expenses$134  $38  $96  $556  $130  $426  Non-cash foreign currency gain related to lease liability(440) (132) (308) (195) (59) (136) Non-cash write-off of certain merger related lease intangibles182  42  140  —  —  —  Consumer lending wind-down costs and asset impairments92  21  71  2,544  585  1,959  Total adjustments$(32) $(31) $(1) $2,905  $656  $2,249                             Six Months Ended June 30,  2020 2019  Pre-tax Tax After-tax Pre-tax Tax After-tax Merger and other acquisition expenses$202  $56  $146  $705  $175  $530  Non-cash foreign currency loss (gain) related to lease liability3,944  1,183  2,761  (535) (161) (374) Non-cash write-off of certain merger related lease intangibles3,812  877  2,935  —  —  —  Non-cash impairment of certain other assets1,900  437  1,463  —  —  —  Consumer lending wind-down costs and asset impairments92  21  71  2,544  585  1,959  Total adjustments$9,950  $2,574  $7,376  $2,714  $599  $2,115  FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDAThe Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items as listed below that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used in the calculation of the net debt ratio as defined in the Company’s senior unsecured notes covenants. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (dollars in thousands):              Trailing Twelve  Three Months Ended Six Months Ended Months Ended  June 30, June 30, June 30,  2020 2019 2020 2019 2020 2019 Net income$25,873  $33,048  $58,791  $75,703  $147,706  $157,103  Income taxes 11,316   12,238   24,115   28,426   55,682   54,285  Depreciation and amortization 10,324   10,510   20,998   20,384   42,518   41,110  Interest expense 6,974   8,548   15,392   16,918   32,509   33,364  Interest income (525)  (155)  (710)  (359)  (1,406)  (1,082) EBITDA 53,962   64,189   118,586   141,072   277,009   284,780  Adjustments:                  Merger and other acquisition expenses 134   556   202   705   1,263   5,996  Non-cash foreign currency (gain) loss related to lease liability (440)  (195)  3,944   (535)  3,546   (535) Non-cash write-off of certain merger related lease intangibles 182   —   3,812   —   3,812   —  Non-cash impairment of certain other assets —   —   1,900   —   1,900   —  Consumer lending wind-down costs and asset impairments 92   2,544   92   2,544   1,002   4,058  Adjusted EBITDA$53,930  $67,094  $128,536  $143,786  $288,532  $294,299                     Net debt ratio calculation:                  Total debt (outstanding principal)            $500,000  $640,000  Less: cash and cash equivalents             (70,956)  (67,012) Net debt            $429,044  $572,988  Adjusted EBITDA            $288,532  $294,299  Net debt ratio (net debt divided by adjusted EBITDA)            1.5:1  1.9:1  FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)Free Cash Flow and Adjusted Free Cash FlowFor purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn and consumer loans, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and other acquisition expenses paid that management considers to be non-operating in nature.Free cash flow and adjusted free cash flow are commonly used by investors as an additional measure of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):         Trailing Twelve  Three Months Ended Six Months Ended Months Ended  June 30, June 30, June 30,  2020 2019 2020 2019 2020 2019 Cash flow from operating activities$65,914  $34,276  $143,299  $105,973  $268,922  $229,435  Cash flow from investing activities:            Loan receivables, net of cash repayments126,000  (22,642) 178,279  19,574  193,111  (1,214) Purchases of furniture, fixtures, equipment and improvements(9,895) (13,246) (20,476) (22,904) (41,883) (44,113) Free cash flow182,019  (1,612) 301,102  102,643  420,150  184,108  Merger and other acquisition expenses paid, net of tax benefit96  426  146  530  892  4,503  Adjusted free cash flow$182,115  $(1,186) $301,248  $103,173  $421,042  $188,611  FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)Constant Currency ResultsThe Company’s reporting currency is the U.S. dollar. However, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are primarily transacted in local currencies.The Company believes constant currency results provide investors with valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. Business operations in Mexico, Guatemala and Colombia are transacted in Mexican pesos, Guatemalan quetzales and Colombian pesos, respectively. The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. See the Latin America operations segment tables elsewhere in this release for an additional reconciliation of certain constant currency amounts to as reported GAAP amounts.For further information, please contact: Gar Jackson Global IR Group Phone:    (817) 886-6998 Email:     gar@globalirgroup.comDoug Orr, Executive Vice President and Chief Financial Officer Phone:    (817) 258-2650 Email:     investorrelations@firstcash.com Website:  investors.firstcash.com