EX-99.1 2 fc4965ex991.htm EXHIBIT 99.1

Exhibit 99.1

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FIRST CASH FINANCIAL SERVICES

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INVESTOR PRESENTATION - FEBRUARY/MARCH 2006

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, 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, our reports on Form 10-Q for the periods ended March 31, 2005, June 30, 2005 and September 30, 2005 and on various Form 8-K filings in 2005 and 2006.

FIRST CASH FINANCIAL SERVICES

First Cash Overview

• | Leading provider of diversified specialty consumer finance products
• | Superior earnings performance and financial position
• | Significant future growth through store expansion
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FIRST CASH FINANCIAL SERVICES

Company History

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
[GRAPHIC APPEARS HERE] |  | 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

FIRST CASH FINANCIAL SERVICES

Store Counts

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FIRST CASH FINANCIAL SERVICES

Geographic Markets & Product Offerings

As of December 31, 2005

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FIRST CASH FINANCIAL SERVICES

Revenue Mix - 2005

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FIRST CASH FINANCIAL SERVICES

Pawn Loans

• | Short-term loan secured by pledged personal property
| – | No credit check
| – | No bank account required
• | Regulations vary by state - typically provide for:
| – | 30 day term
| – | 10% to 20% monthly service fee

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FIRST CASH FINANCIAL SERVICES

Pawn Demographics

Loan Growth

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• | Many un-banked or under-banked customers
• | Both in the U.S. and…
• | In Mexico, where:
| – | 88% of retail transactions are in cash
| – | An estimated 80% of the population is un-banked

FIRST CASH FINANCIAL SERVICES

Pawn-Related Retail

Composition of Retail Inventories

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• | Retail inventories are primarily acquired via forfeited pawn loan collateral
• | Gold jewelry represents 53% of the retail inventory

Retail Metrics for 2005 |
• | Total merchandise margins | 40%
• | Retail margins (excludes scrap jewelry sales) | 44%
• | Inventory turns | 3.2x

FIRST CASH FINANCIAL SERVICES

Payday Advance Product

• | Typical advance amount: $100 to $500
• | Term: 7 to 31 days
• | Typical service charge per advance: 15%
• | Proof of employment and bank account required – but no credit check
• | Advance secured by personal check held until due date

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FIRST CASH FINANCIAL SERVICES

Payday Advance Regulatory Landscape

FDIC regulations affect only payday lending in other states where “bank model” is used

First Cash does not utilize the bank model in any state and is therefore not subject to FDIC regulations

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FIRST CASH FINANCIAL SERVICES

Credit Services Model Utilized in Texas

• | In Texas, First Cash has elected to operate as a Credit Services Organization (“CSO”)
• | As a CSO, First Cash provides customers access to a short-term loan funded by an independent consumer lending company
| – | Customer pays a fee to CSO for its services:

|  | • | processing of application with lender
|  | • | providing letter of credit
|  | • | disbursement and collection of lender funds
| – | Customer pays interest to lender (at less than 10% APR)

FIRST CASH FINANCIAL SERVICES

Superior Performance & Financial Position

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

Revenues

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FIRST CASH FINANCIAL SERVICES

2005 - Fourth Quarter Highlights

• | 20th consecutive quarter of double-digit EPS growth
• | Q4 diluted EPS up 31% over prior year
• | Fiscal 2005 performance
| – | Revenues of $208 million
| – | Diluted EPS of $0.76*, up 25%
| – | Net income of $25 million, up 23%

* - Reflects two-for-one stock split effective February 22, 2006

Net Income
(From Continuing Operations)

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FIRST CASH FINANCIAL SERVICES

Earnings Per Share Growth

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Reflects two-for-one stock split effective February 22, 2006

FIRST CASH FINANCIAL SERVICES

Consistency of Growth & Earnings

Trailing 12 Months
Diluted Earnings per Share

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Reflects two-for-one stock split effective February 22, 2006

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Forbes 200 Best Small Companies
4 straight years

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Fortune Small Business 100
2 straight years

FIRST CASH FINANCIAL SERVICES

2006 Growth Expectations

• | Annual EPS growth in excess of 20% recorded for the past five years
• | 60 to 70 new store openings projected for 2006
• | 2006 earnings per share forecast of $0.91 to $0.93*
| – | Midpoint represents 21% increase over 2005 EPS

* - Reflects two-for-one stock split effective February 22, 2006

FIRST CASH FINANCIAL SERVICES

Increasing Market Visibility & Liquidity

Two-for-one stock split effective February 22, 2006

Market Cap

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FIRST CASH FINANCIAL SERVICES

Balance Sheet

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FIRST CASH FINANCIAL SERVICES

Net Cash Position

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FIRST CASH FINANCIAL SERVICES

Utilization of Cash Flows

• | All store openings funded from current cash flows
| – | Loan growth at new & existing stores
| – | Capital expenditures for new stores
| – | Start-up costs for new stores
• | Stock repurchases of $24 million over past two years
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FIRST CASH FINANCIAL SERVICES

Growth Strategy

• | New store openings in multiple markets
| – | United States
| – | Mexico
• | Diversified product line
| – | Pawn loans & related retail
| – | Payday advances
| – | Credit services

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FIRST CASH FINANCIAL SERVICES

New Store Openings

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FIRST CASH FINANCIAL SERVICES

New Store Financial Model

Cap Ex | $80,000 to $150,000
- 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 $360,000

FIRST CASH FINANCIAL SERVICES

Mexico Expansion Markets

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FIRST CASH FINANCIAL SERVICES

New Stores in Mexico

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FIRST CASH FINANCIAL SERVICES

U.S. 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
• | Monitoring opportunities for expansion in other states with favorable payday laws

FIRST CASH FINANCIAL SERVICES

First Cash Summary

• | Industry leader in a growth sector
| – | Strong demand for specialty consumer finance products
| – | Multiple products: pawn and payday advance
• | Superior financial metrics
| – | 20 consecutive quarters (five years) of double-digit EPS growth
| – | Strong cash flows; no debt
• | Well-defined expansion strategy will drive continued growth
| – | Significant headroom for new stores in multiple markets
| – | 20% increase in store count targeted for 2006

FIRST CASH FINANCIAL SERVICES

FIRST CASH FINANCIAL SERVICES

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Investor contact information:
• | Phone: | 817.505.3199 | [LOGO OF FCFS]
• | Email: | investorrelations@firstcash.com
• | Website: www.firstcash.com