FirstCash is discontinuing unsecured consumer loan products in

FORT WORTH, Texas, May 03, 2019 (GLOBE NEWSWIRE) — FirstCash, Inc. (the “Company”) (Nasdaq: FCFS), the leading international operator of more than 2,600 pawn shops in the United States and Latin America today announced that it has ceased offering unsecured consumer credit and loan servicing products in Ohio. The Company does not expect these decisions to impact its previous guidance for adjusted net earnings and adjusted earnings per share for the remainder of 2019 and reiterates its previous guidance of $3.80 to $4.00 for adjusted earnings per share.

FirstCash operates 113 Cashland locations and six Cash America Pawn locations in Ohio. As previously reported, the recent amendment to the Ohio law on unsecured consumer loans and related credit extensions using the credit services model (collectively “unsecured consumer loan products”) entered effective April 26, 2019. This new law imposes significant additional restrictions on unsecured loans. consumer credit products. After a thorough evaluation of alternative products that meet new legal requirements, the company has elected to discontinue offering unsecured consumer loan products at all of its 119 Ohio locations. As a result, over the next few months, the company plans to close approximately 54 Cashland locations whose revenue came primarily from unsecured consumer loan products. The new law does not affect pawnshop operations, and the remaining 65 locations in Ohio have significant pawnbroking revenue and are expected to continue operating as full-service pawnbrokers.

A significant reduction in revenue and earnings resulting from the anticipated change in Ohio law has already been factored into the company’s most recent earnings forecast for 2019. The gradual reduction in revenue resulting from the subsequent decision to completely eliminate unsecured consumer loan products in Ohio is expected to be offset by approximately $7-8 million in pre-tax cost savings from planned store closures and remaining store expense reductions, collection processing and other administrative costs over the remainder of 2019. For the second quarter of 2019, the company expects consumer unsecured loan and credit services revenue to be less than 4 millions of dollars. Beginning in the second half of 2019, the Company will only offer unsecured consumer loans and credit services at approximately 81 locations in the United States, 75 of which are pawnbrokers providing them as an ancillary product and the Company now expects second-half revenue from unsecured consumer loan products to be in the range of $3 million to $4 million.

Due to store closures in Ohio, the Company expects to incur one-time liquidation charges of approximately $1-2 million, net of tax, for the quarter ending June 30, 2019, which will be excluded from adjusted net income. and adjusted earnings per share. These charges include employee severance, lease termination costs, provisions for losses on consumer loans and unsecured credit services and other asset impairments.

Mr. Rick Wessel, Managing Director, said, “Our primary operational focus continues to be on the phenomenal growth of our core pawnbroking business as we continue to open and acquire new locations in the United States and in Latin America. In April alone, we added 23 pawn shops in Latin America through acquisitions and new store openings and also acquired ten pawn shops in the United States.

“Given significant growth opportunities in the pawnbroking space, we have methodically reduced revenue from non-core consumer lending and unsecured credit services businesses over the past several years. Upon our merger with Cash America in September 2016, we had 448 locations offering unsecured consumer loans and credit services products, which generated approximately $93 million in consumer loans and unsecured credit services revenue in 2016 on a pro forma basis With today’s announcement, we will now have closed or ceased offering unsecured consumer loan products in 367 stores since the merger.

“Going forward, we only have 81 locations offering unsecured consumer loan products, most of which are full-service pawnshops offering them as ancillary products to their core pawnshop business. Projected revenue of $3-4 million from consumer finance products in the second half of 2019 will be less than half of 1% of expected consolidated revenue,” concluded Wessel.

About FirstCash

FirstCash is the leading international pawnshop operator with over 2,600 pawn shops in 24 US states and the District of Columbia and Latin America, which includes all states of Mexico and the countries of Guatemala, El Salvador and from Colombia. The company employs approximately 20,000 people between the United States and Latin America. FirstCash is focused on serving cash-strapped and credit-strapped consumers primarily through its retail outlets, which buy and sell a wide variety of jewelry, consumer electronics, tools, and accessories. appliances, sporting goods, musical instruments and other merchandise, and underwrite small consumer pawnbrokers. by pledged movable property.

FirstCash is a component company in both the Standard & Poor’s SmallCap 600® Index and the Russell 2000® Index. The common shares of FirstCash (ticker symbol “FCFS”) is listed on Nasdaq, the creator of the world’s first electronic stock market. For more information about FirstCash and the services it provides, visit the FirstCash websites located at and

Forward-looking information

This 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 “outlooks”, “believes”, “plans”, “would expects”, “may”, “estimates”, “should”, “plans”, “targets”, “intends”, “could”, “would”, “anticipates”, “potential”, “confident ‘, ‘optimistic’ or the negative thereof, or other variations thereof, or comparable terminology, or through discussions of strategy, objectives, estimates, directions, expectations and future plans Forward-looking statements can also be identified by the fact that such statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. forecasts concern s matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Securityholders are cautioned that these forward-looking statements involve risks and uncertainties. Certain factors could cause actual results to differ materially from those anticipated by the forward-looking statements made in this press release. These factors may include, but are not limited to, the risks, uncertainties and regulatory developments discussed and described in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”). on February 5, 2019, including the risks described in Part 1, Section 1A, “Risk Factors” thereof, and other reports subsequently filed by the Company with the SEC. Many of these risks and uncertainties are beyond the Company’s ability 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 provide any update or revision to such statement to reflect any change in the expectations of the Company or any change in events, conditions or circumstances on which such statement is based, except as required by law.

For more information, please contact:
Gar Jackson
Global IR Group
Telephone: (817) 886-6998
Email: [email protected]

Doug Orr, Executive Vice President and Chief Financial Officer
Telephone: (817) 258-2650
Email: [email protected]

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