Exhibit 99.5

Supplemental Unaudited Pro Forma Condensed Combined Financial Information

For the Periods Indicated Below

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Management 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 and AFF’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 and AFF’s core operating performance.

The following tables provide a reconciliation between net income and diluted earnings per share to adjusted net income and adjusted diluted earnings per share, both on a FirstCash standalone basis and on a pro forma combined basis, which are shown net of tax (in thousands, except per share amounts):

 

     Year Ended December 31,
2020
     Nine Months Ended
September 30, 2020
     Nine Months Ended
September 30, 2021
     Trailing Twelve Months
Ended September 30, 2021
 
     FirstCash
Stand
Alone
     Pro Forma
Combined
     FirstCash
Stand
Alone
     Pro
Forma
Combined
     FirstCash
Stand
Alone
     Pro
Forma
Combined
     FirstCash
Stand
Alone
    Pro
Forma
Combined
 

Net income

   $ 106,579      $ 62,583      $ 73,853      $ 39,898      $ 95,538      $ 74,091      $ 128,264     $ 96,776  

Adjustments, net of tax:

                      

Merger and acquisition expenses

     991        991        151        151        950        950        1,790       1,790  

Non-cash foreign currency loss (gain) related to lease liability

     874        874        2,453        2,453        256        256        (1,323     (1,323

Non-cash write-off of certain Cash America merger related lease intangibles

     5,432        5,432        3,579        3,579        1,263        1,263        3,116       3,116  

Non-cash impairment of certain other assets

     1,463        1,463        1,463        1,463        —          —          —         —    

Loss on extinguishment of debt

     9,037        9,037        9,037        9,037        —          —          —         —    

Accrual of pre-merger Cash America income tax liability

     693        693        —          —          —          —          693       693  

Consumer lending wind-down costs and asset impairments

     84        84        84        84        —          —          —         —    

Amortization of premium resulting from the fair market value adjustment to finance receivables (1)

     —          23,545        —          17,658        —          5,886        —         11,773  

Amortization of acquisition related intangible assets (2)

     —          49,798        —          37,349        —          51,459        —         63,908  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted net income

   $ 125,153      $ 154,500      $ 90,620      $ 111,672      $ 98,007      $ 133,905      $ 132,540     $ 176,733  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

     Year Ended December 31,
2020
     Nine Months Ended
September 30, 2020
     Nine Months Ended
September 30, 2021
     Trailing Twelve Months
Ended September 30, 2021
 
     FirstCash
Stand
Alone
     Pro
Forma
Combined
     FirstCash
Stand
Alone
     Pro
Forma
Combined
     FirstCash
Stand
Alone
     Pro
Forma
Combined
     FirstCash
Stand
Alone
    Pro
Forma
Combined
 

Diluted earnings per share

   $ 2.56      $ 1.26      $ 1.77      $ 0.80      $ 2.34      $ 1.52      $ 3.13     $ 1.98  

Adjustments, net of tax:

                      

Merger and acquisition expenses

     0.02        0.02        —          —          0.02        0.02        0.04       0.04  

Non-cash foreign currency loss (gain) related to lease liability

     0.02        0.02        0.06        0.05        0.01        0.01        (0.03     (0.03

Non-cash write-off of certain Cash America merger related lease intangibles

     0.13        0.11        0.09        0.07        0.03        0.03        0.07       0.06  

Non-cash impairment of certain other assets

     0.04        0.03        0.03        0.03        —          —          0.01       —    

Loss on extinguishment of debt

     0.22        0.18        0.22        0.18        —          —          —         —    

Accrual of pre-merger Cash America income tax liability

     0.02        0.01        —          —          —          —          0.02       0.01  

Consumer lending wind-down costs and asset impairments

     —          —          —          —          —          —          —         —    

Amortization of premium resulting from the fair market value adjustment to finance receivables (1)

     —          0.47        —          0.36        —          0.12        —         0.24  

Amortization of acquisition related intangible assets (2)

     —          1.00           0.75        —          1.05        —         1.31  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted diluted earnings per share

   $ 3.01      $ 3.10      $ 2.17      $ 2.24      $ 2.40      $ 2.75      $ 3.24     $ 3.61  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

(1) 

See description of this adjustment in footnote 3(p) in the Unaudited Pro Forma Condensed Combined Financial Information included as Exhibit 99.4 to this Current Report.

 

(2) 

See description of this adjustment in footnote 3(t) in the Unaudited Pro Forma Condensed Combined Financial Information included as Exhibit 99.4 to this Current Report.


Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

The 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-recurring 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 as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA, both on a FirstCash standalone and on a pro forma combined basis (in thousands):

 

     Year Ended December 31,
2020
    Nine Months Ended
September 30, 2020
    Nine Months Ended
September 30, 2021
    Trailing Twelve Months
Ended September 30, 2021
 
     FirstCash
Stand
Alone
    Pro
Forma
Combined
    FirstCash
Stand
Alone
    Pro
Forma
Combined
    FirstCash
Stand
Alone
    Pro
Forma
Combined
    FirstCash
Stand
Alone
    Pro
Forma
Combined
 

Net income

   $ 106,579     $ 62,583     $ 73,853     $ 39,898     $ 95,538     $ 74,091     $ 128,264     $ 96,776  

Income taxes

     37,120       23,981       26,739       16,597       33,834       27,427       44,215       34,811  

Depreciation and amortization

     42,105       108,171       31,424       80,944       32,731       100,933       43,412       128,160  

Interest expense

     29,344       54,045       21,953       40,479       22,389       40,915       29,780       54,481  

Interest income

     (1,540     (1,951     (1,209     (1,608     (420     (422     (751     (765
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     213,608       246,829       152,760       176,310       184,072       242,944       244,920       313,463  

Adjustments:

                

Merger and acquisition expenses

     1,316       1,316       209       209       1,264       1,264       2,371       2,371  

Non-cash foreign currency loss (gain) related to lease liability

     1,249       1,249       3,505       3,505       366       366       (1,890     (1,890

Non-cash write-off of certain Cash America merger related lease intangibles

     7,055       7,055       4,649       4,649       1,640       1,640       4,046       4,046  

Non-cash impairment of certain other assets

     1,900       1,900       1,900       1,900       —         —         —         —    

Loss on extinguishment of debt

     11,737       11,737       11,737       11,737       —         —         —         —    

Consumer lending wind-down costs and asset impairments

     109       109       109       109       —         —         —         —    

Amortization of premium resulting from the fair market value adjustment to finance receivables (1)

     —         30,578       —         22,933       —         7,644       —         15,289  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 236,974     $ 300,773     $ 174,869     $ 221,352     $ 187,342     $ 253,858     $ 249,447     $ 333,279  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

See description of this adjustment in footnote 3(p) in the Unaudited Pro Forma Condensed Combined Financial Information included as Exhibit 99.4 to this Current Report.


Adjusted Unaudited Summary Pro Forma Combined Statement of Operations

For the Trailing Twelve Months Ended September 30, 2021

(in thousands, except per share data)

 

     Pro Forma
Combined (1)
    Adjustments (2)     Adjusted
Pro Forma
Combined
 

Revenue:

      

Retail merchandise sales

   $ 1,062,842     $ —       $ 1,062,842  

Pawn loan fees

     460,638       —         460,638  

Leased merchandise income

     315,042       —         315,042  

Interest and fees

     193,344       15,289       208,633  

Wholesale scrap jewelry revenue

     65,856       —         65,856  
  

 

 

   

 

 

   

 

 

 

Total revenue

     2,097,722       15,289       2,113,011  
  

 

 

   

 

 

   

 

 

 

Cost of revenue:

      

Cost of retail merchandise sold

     616,285       —         616,285  

Depreciation of leased merchandise

     180,834       —         180,834  

Provision for lease losses

     66,093       —         66,093  

Provision for loan losses

     67,257       —         67,257  

Cost of wholesale scrap jewelry sold

     56,181       —         56,181  
  

 

 

   

 

 

   

 

 

 

Total cost of revenue

     986,650       —         986,650  
  

 

 

   

 

 

   

 

 

 

Net revenue

     1,111,072       15,289       1,126,361  
  

 

 

   

 

 

   

 

 

 

Expenses and other income:

      

Operating expenses

     660,052       —         660,052  

Administrative expenses

     130,097       —         130,097  

Depreciation and amortization

     128,160       (82,998     45,162  

Interest expense

     54,481       —         54,481  

Interest income

     (765     —         (765

Merger and acquisition expenses

     2,371       (2,371     —    

(Gain) loss on foreign exchange

     (507     1,890       1,383  

Write-offs and impairments of certain lease intangibles and other assets

     5,596       (4,046     1,550  
  

 

 

   

 

 

   

 

 

 

Total expenses and other income

     979,485       (87,525     891,960  
  

 

 

   

 

 

   

 

 

 

Income before income taxes

     131,587       102,814       234,401  

Provision for income taxes

     34,811       22,857       57,668  
  

 

 

   

 

 

   

 

 

 

Net income

   $ 96,776     $ 79,957     $ 176,733  
  

 

 

   

 

 

   

 

 

 

Net income per share:

      

Basic

   $ 1.98       $ 3.61  

Diluted

   $ 1.98       $ 3.61  

Weighted average common shares outstanding:

      

Basic

     48,910         48,910  

Diluted

     48,967         48,967  

 

(1) 

Represents the unaudited pro forma condensed combined statement of operations of the Combined Company for the trailing twelve months ended September 30, 2021. See Exhibit 99.4 to this Current Report for further information including the pro forma adjustments made to the historical financials of the Company and AFF to arrive at this condensed combined statement of operations.

 

(2) 

See descriptions of these adjustments in the reconciliations of adjusted net income, adjusted diluted earnings per share and adjusted EBITDA above and in the footnotes to the Unaudited Pro Forma Condensed Combined Financial Information included as Exhibit 99.4 to this Current Report.


Supplemental Consolidated Financial Information of American First Finance Inc. and its Subsidiary

For the Periods Indicated Below

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

AFF defines EBITDA as net income before income taxes, depreciation and amortization of property and equipment, net, interest expense and bank 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. The following table provides a reconciliation of AFF’s net income to EBITDA and adjusted EBITDA (in thousands):

 

     Year Ended December 31,     Nine Months Ended
September 30,
    Trailing Twelve
Months Ended
September 30,
2021
 
     2020     2019     2021     2020  

Net income

   $ 58,598     $ 53,458     $ 64,385     $ 43,828     $ 79,155  

Income taxes

     —         —         —         —         —    

Depreciation and amortization of property and equipment, net

     2,335       1,054       2,858       1,641       3,552  

Interest expense

     9,800       10,386       10,794       7,007       13,587  

Bank interest income

     (411     (422     (2     (399     (14
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA

     70,322       64,476       78,035       52,077       96,280  

Adjustments:

          

Merger and acquisition expenses

     —         —         70       —         70  

Non-recurring gain on sale of securities

     (4,406     —         —         (4,406     —    

Non-recurring gain on forgiveness of PPP loan

     —         —         (4,716     —         (4,716
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 65,916     $ 64,476     $ 73,389     $ 47,671     $ 91,634