EX-99.1 2 fc5492ex991.htm EXHIBIT 99.1

Exhibit 99.1

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FIRST CASH FINANCIAL SERVICES

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INVESTOR PRESENTATION - APRIL 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, 2004 and 2005, our report on Form 10-Q for the period ended March 31, 2006, and on various Form 8-K filings in 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 Count Growth

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FIRST CASH FINANCIAL SERVICES

Geographic Markets & Product Offerings

As of March 31, 2006

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FIRST CASH FINANCIAL SERVICES

Revenue Mix

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FIRST CASH FINANCIAL SERVICES

Pawn Loan Product

• | 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 Customer Demographics

First Cash Pawn 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 Sales

Composition of Retail Inventories

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• | Retail inventories are primarily acquired via forfeited pawn loan collateral
• | Gold jewelry represents 58% of the retail inventory

Retail Metrics (trailing 12 Months) |
• | Total merchandise margins | 40%
• | Retail margins (excludes scrap jewelry sales) | 44%
• | Inventory turns | 3.1x

FIRST CASH FINANCIAL SERVICES

Payday Advance Product

• | Loan size: $100 to $1,000
• | Term: 7 to 31 days
• | Typical service charge per advance: 15%
• | Proof of employment and active 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 Product

• | In its Texas locations, 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 profit margins
• | Financial Position
| – | Debt-free
| – | Strong cash flows

Revenues

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FIRST CASH FINANCIAL SERVICES

2006 - First Quarter Highlights

• | Q1 diluted EPS of $0.23
| – | Up 28% over prior year
| – | Exceeded consensus estimate by $0.02
| – | 21st consecutive quarter of double-digit EPS growth
• | Other highlights:
| – | Quarterly revenues up 19%, to $56 million
| – | Net income of $7.6 million, up 26%
| – | 20 new stores, a record number of openings for a single quarter

FIRST CASH FINANCIAL SERVICES

Earnings Per Share Growth

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Reflects two-for-one stock split effective February 6, 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 6, 2006

[LOGO OF FORBES]

Forbes 200 Best
Small
Companies
4 straight years

[LOGO OF FORTUNE SMALL BUSINESS]

Fortune Small
Business 100
2 straight years

FIRST CASH FINANCIAL SERVICES

2006 Earnings & Growth Expectations

• | Earnings per share forecast
| – | Raised guidance at end of Q1 to:
|  |  | $0.93 to $0.94 per share
| – | Represents 22% to 24% increase over 2005 EPS
| – | Q2 earnings forecast for $0.18 to $0.19
• | Store Openings
| – | 60 - 70 new store openings projected for 2006
|  | • | Pawn (Mexico)
|  | • | Payday Advance (U.S.)
| – | 20 stores opened in the first quarter

FIRST CASH FINANCIAL SERVICES

Increasing Market Visibility & Liquidity

Two-for-one stock split effective February 6, 2006

Market Cap

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FIRST CASH FINANCIAL SERVICES

Balance Sheet Growth

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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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New location under construction in Tijuana, Mexico

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 Advance location in Hurst, Texas

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

First Cash Pawn 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
| – | Other mid-sized markets in Texas
• | First stores in Michigan opened in Q2 of 2006

FIRST CASH FINANCIAL SERVICES

First Cash Summary

• | Industry leader in a fast growth sector
| – | Strong demand for specialty consumer finance products
| – | Multiple products: pawn and payday advance
• | Superior financial metrics
| – | 21 consecutive quarters (over 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