EX-99.1 2 fc4471ex991.htm EXHIBIT 99.1

Exhibit 99.1

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Investor Presentation
January 11, 2006

[LOGO OF FIRST CASH]

Investor contact information:
• | Phone: 817.505.3199
• | Email: investorrelations@firstcash.com
• | Website: www.firstcash.com

[LOGO OF F C F S]

Safe Harbor Statement

• | Certain statements included in this presentation which are not historical in nature – including statements regarding the company’s and/or management’s strategies, beliefs, expectations, plans for new stores, plans and expected results for new products and services, projections of earnings and revenues, expected effect of regulatory pronouncements, potential legislation, or other predictions of the future – are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the Safe Harbor provisions for forward-looking statements contained in such Act.
• | Forward-looking statements are made based on assumptions involving certain known and unknown risks and uncertainties – many of which are beyond the company’s control – and other important factors that could cause actual results, performance or achievements to differ materially from expectations expressed or implied by such forward-looking statements. These risk factors and uncertainties are listed from time to time in the company’s filings with the Securities and Exchange Commission, including – but not limited to – our annual reports on Form 10-K for the years ending December 31, 2003 and 2004 and our reports on Form 10-Q for the periods ended March 31, 2005, June 30, 2005 and September 30, 2005.

Jan. 2006

Company Overview

• | Leading provider of specialty consumer finance products
| - | Pawn loans and related retail
| - | Payday advances and credit services
• | Superior performance metrics and financial position
• | Significant growth through store expansion strategy
| - | Mexico pawn stores
| - | U.S. payday advance stores

[GRAPHICS APPEARS HERE]

Jan. 2006

Company History

[GRAPHIC APPEARS HERE]

1988 | - | Founded – 3 pawn stores in Texas
Early 90’s | - | Goes public; multi-state pawn store roll-up acquisitions
Late 90’s | - | Payday lending acquisitions; introduction of payday product in pawn stores
|  | First pawn stores opened in Mexico
2001 to present | - | Expansion through new store openings: U.S. payday & Mexico pawn
2005 | - | Introduction of credit services product

Jan. 2006

Recognition and Rankings

[LOGOS APPEAR HERE]

• | Forbes 200 Best Small Companies
| - | Recognized for four consecutive years: 2002, 2003, 2004 & 2005
• | Fortune Small Business 100
| - | America’s Fastest Growing Small Companies
| - | Recognized for two consecutive years: 2004 & 2005
• | Russell 2000 Index
| - | Added as component company effective June 25, 2004

Jan. 2006

Store Counts

[CHART APPEARS HERE]

Jan. 2006

Geographic Markets &
Product Offerings

[GRAPHIC APPEARS HERE]

Jan. 2006

Revenue Mix
Trailing 12 Months Ended Sept. 30, 2005

[CHART APPEARS HERE]

Jan. 2006

Pawn Products

[GRAPHIC APPEARS HERE]

• | Pawn loans
| - | 30 day loan
| - | 10% to 20% monthly service fee
| - | Secured by personal property
| - | Many customers are unbanked or under-banked – no credit check required
• | Pawn-related retail
| - | Merchandise sales of forfeited pawn collateral
| - | Primarily jewelry, consumer electronics & tools

Jan. 2006

Pawn Retail Metrics

Year to Date (through Q3):
• | Total merchandise margins | 40%
• | Retail margins (excludes scrap jewelry sales) | 44%
• | Inventory turns | 3.2x

Composition of Pawn Inventory

[CHART APPEARS HERE]

[GRAPHIC APPEARS HERE]

Jan. 2006

Pawn Receivables

[CHART APPEARS HERE]

Jan. 2006

Payday Advance Product

• | Payday Advances
| - | 7 to 31 day loan
| - | Requires proof of employment and bank account
| - | Secured by personal check held until due date

[GRAPHIC APPEARS HERE]

• | Financial Metrics
| - | 15% to 18% service charge per advance
| - | Annual loss provision in a range of 20% to 25% of service charges collected

Jan. 2006

Payday Advance
Regulatory Landscape

• | Payday advances currently provided for under existing regulations in 39 states
| - | First Cash writes payday advances directly in seven of these states
• | In Texas, the current payday law does not provide for a sufficient service fee
| - | As an alternative to traditional payday advances, First Cash has adopted a credit services (“CSO”) model

[GRAPHIC APPEARS HERE]

Jan. 2006

Credit Services Model
Utilized in Texas

• | Texas Finance Code Section 393 provides for credit services organizations (“CSO”s)
• | CSO provides customers access to a short-term loan funded by an independent consumer lending company
| - | Customer pays fee to CSO for its services:
|  | • | processing of application
|  | • | providing letter of credit
|  | • | disbursement and collection of lender funds
| - | Customer pays interest to lender (at less than 10% APR)

Jan. 2006

Comparison of Texas
Bank Model to CSO Model

|  | Former Bank-Funded Payday Model |  | New CSO Model
Maximum loan amount |  | $500 |  | $1,000
Rate charged to customers |  | 18% per loan |  | 20% CSO fee per loan*
Net fee realized by First Cash |  | Approx. 16% per loan |  | 20% per loan
Expected loss provision (as% of fee) |  | 20% to 25% |  | 20% to 25%

* - In addition, customer pays small interest charge to third-party lender. Interest capped at 10% APR.

Jan. 2006

Superior Performance &
Financial Position

• | Operating results
| - | Industry leading performance metrics
| - | Consistent growth
| - | Increasing margins
• | Financial Position
| - | Debt-free
| - | Strong cash flows

Jan. 2006

Third Quarter 2005
Highlights

• | Q3 diluted EPS of $0.39
| - | Up 26% over prior year
| - | Ahead of $0.37 consensus
• | 19th consecutive quarter of double-digit EPS growth
• | Significant year-to-date net growth
| - | Diluted EPS up 23%
| - | Net income up 21%

Jan. 2006

Earnings Per Share Growth

[CHART APPEARS HERE]

Jan. 2006

Consistency of Earnings

Trailing 12 Months
Diluted Earnings per Share

[CHART APPEARS HERE]

Jan. 2006

Operational Focus

Pre-Tax Operating Income as
Percentage of Revenues

[CHART APPEARS HERE]

• | Attention to key operational metrics:
| - | Loan growth
| - | Loan yields
| - | Retail margins
| - | Inventory management
• | Expense control important part of corporate culture
• | Sales associate & manager compensation plans reward store profitability

Jan. 2006

Net Cash Position

[CHART APPEARS HERE]

Jan. 2006

Utilization of
Free Cash Flows

[GRAPHIC APPEARS HERE]

• | Growth funded from current cash flows
| - | Loan growth at new & existing stores
| - | Capital expenditures for new stores
| - | Start-up costs for new stores
• | Repurchased $24 million of stock over past 15 months

Jan. 2006

Balance Sheet

[CHART APPEARS HERE]

Jan. 2006

Growth Strategy

• | New store openings in multiple markets
| - | United States
| - | Mexico
• | Multiple products
| - | Pawn loans & related retail
| - | Payday advances
| - | Credit services

Jan. 2006

New Store Openings

[CHART APPEARS HERE]

Jan. 2006

Mexico Pawn Demographics

[GRAPHIC APPEARS HERE]

• | Over 80% of the population is estimated to be “unbanked”
• | 88% of all consumer transactions are made in cash

Jan. 2006

Mexico Expansion Markets

2004 Presence

[GRAPHICS APPEARS HERE]

2005/2006 expansion:
Baja California & Tampico

Jan. 2006

2006 Payday Expansion

• | Continued growth in key Texas markets:
| - | Dallas/Fort Worth
| - | Houston
| - | San Antonio/Austin
| - | Many other mid-sized markets
• | First stores in Michigan projected in Q2 of 2006
| - | Populous state
| - | New law
• | Monitoring opportunities for expansion in other states

Jan. 2006

New Store Financial Model

Cap Ex |  | $80,000 to $125,000
- Leasehold improvements |  |
- Computer & security equipment |  |
Working Capital (first year) |  | $80,000 to $150,000
- Operating cash |  |
- Loan funding |  |
- Inventory (pawn only) |  |
Start-up Losses |  | $40,000 to $60,000
- Pre-opening |  |
- First six months of operation |  |
Totals |  | $200,000 to $335,000

Jan. 2006

First Cash Summary

• | Industry leader
| - | Operational focus
| - | Strong cash flows and no debt
| - | 19 consecutive quarters of double digit EPS growth
• | Well-defined expansion strategy
| - | New store opening model
| - | Multiple product lines
| - | Geographic diversification
• | Meaningful growth goals
| - | 20% annual increase in store counts
| - | Short & long-term EPS growth

Jan. 2006

[LOGO OF FIRST CASH]

Investor contact information:
• | Phone: 817.505.3199
• | Email: investorrelations@firstcash.com
• | Website: www.firstcash.com

[LOGO OF F C F S]