FirstCash Holdings Inc【FCFS】株式ニュース

First Cash Reports 16% Increase in Third Quarter Earnings Per Share to $0.67; Pawn Growth in Mexico Drives Record Earnings; Wit

First Cash Financial Services, Inc. (MM) (NASDAQ:FCFS)

Today : Wednesday 17 October 2012

First Cash Financial Services, Inc. (Nasdaq:FCFS) today announced record-setting revenue, net income and earnings per share for the three month period ended September 30, 2012. In addition, the Company announced that in September it completed the acquisition of 16 large format Fast Cash Pawn stores located in Denver, Colorado. The Company also noted that it was closing seven small format, payday-only stores located in Texas.
Earnings Highlights

Diluted earnings per share from continuing operations for the third quarter of 2012 were $0.67, compared to $0.58 in the third quarter of 2011, an increase of 16%. The third quarter results included non-recurring charges of approximately $0.02 per share related to acquisition expenses.
Year-to-date earnings per share from continuing operations increased 16% to $1.80, compared to $1.55 in the comparable prior-year period.
Revenue Highlights

Revenue growth rates are presented below on a constant currency basis, calculated by applying the currency exchange rate from the comparable prior-year period to the current year's Mexican peso-denominated revenue. The average exchange rate for the third quarter of 2012 was 13.2 Mexican pesos / U.S. dollar versus 12.3 Mexican pesos / U.S. dollar in the comparable prior-year period.

Consolidated third quarter revenue totaled $150 million, representing an increase of 16% on a constant currency basis compared to the third quarter of 2011. Revenue generated from operations in Mexico increased 19% on a constant currency basis and comprised 54% of total revenue.
Pawn fees, which the Company considers a core revenue stream, increased by 31% on a constant currency basis versus the prior-year third quarter, while in-store merchandise sales increased by 26%. Pawn fee growth in Mexico was particularly strong, up 35% compared to the same period last year.
While the average selling price for gold during the third quarter increased 8% compared to the prior-year quarter, the volume of scrap jewelry sold decreased 18% compared to the prior period. As a result, wholesale scrap jewelry revenues during the third quarter of 2012 decreased 12% compared to the same period last year. Scrap jewelry operations accounted for 8% of net revenue (gross profit) for the quarter.
The 12% decrease in scrap jewelry revenue caused consolidated same-store revenue (constant currency basis) to be flat in the third quarter. Excluding scrap jewelry sales, same-store revenue increased 9% in Mexico, 3% in the U.S. and 6% overall on a constant currency basis. The core revenue from same-store pawn service fees increased 12% on a consolidated basis, driven by 17% growth in Mexico and 7% growth in the U.S.
Short-term loan and credit services revenues (collectively, payday loan products) from the Company's stand-alone consumer loan stores that do not offer pawn loans, decreased 4% as compared to the prior-year period. Consolidated third quarter revenue from payday loan products increased 5%, primarily due to the acquisition of Mister Money, which offers payday loans as a minor ancillary product in their large format, full-service pawn stores. Including the acquisition of Mister Money, payday loan-related products comprised 9% of total revenue for the third quarter.
Pawn Metrics

Consolidated pawn receivables at September 30, 2012 totaled a record $108 million, an increase of 38% over the prior year (35% on a constant currency basis). In Mexico, pawn receivables increased 43% (36% on a constant currency basis), driven by 17% same-store receivable growth and the continued increase in store counts. Pawn receivables in the U.S. increased by 34% versus the prior year, primarily driven by store count growth and same-store receivable growth of 4%.
The consolidated gross margin on retail merchandise sales was 43% for the third quarter, compared to 41% in the prior-year quarter and 42% in the previous sequential quarter. The increase was driven by significantly improved retail margins in Mexico, which increased approximately 300 basis points versus the prior-year period. The consolidated gross margin on wholesale scrap jewelry was 27% for the quarter and 26% year-to-date, reflecting higher jewelry acquisition costs compared to the prior year.
Consolidated annualized inventory turns in the third quarter were 4.4 turns versus 3.9 turns during the comparable prior-year quarter, driven by improved inventory quality and retail demand.
On a consolidated basis, at September 30, 2012, 60% of total pawn loans were collateralized with hard goods (electronics, tools and appliances) with the remaining 40% collateralized by jewelry. In Mexico, 83% of the Company's pawns were collateralized with hard goods, and only 17% were collateralized with jewelry, compared to 77% and 23%, respectively, one year ago. In the U.S., jewelry comprised 64% of pawn collateral as of the quarter end, compared to a 66% jewelry mix last year.
Profitability and Return Metrics

The Company's return on equity for the trailing twelve months increased to 24% versus 22% in the comparable prior-year period.
Consolidated net operating margin (pre-tax income) was 20% for the trailing twelve month period, while store-level operating profit margins were 29% for the trailing twelve month period.
Acquisitions and New Store Openings

In total, the Company added 36 pawn store locations during the third quarter of 2012. Year-to-date, a total of 139 stores have been opened or acquired, compared to 69 additions at this point last year. The Company has completed the majority of its planned new store openings for 2012.
Pawn store openings in the third quarter included 18 new stores in Mexico. Year-to-date, a total of 89 Mexico stores have been added, which includes 60 new store openings and a 29-store acquisition in January 2012. As of September 30, 2012, First Cash had 536 stores in Mexico, of which 483 are large format, full-service stores. The Company has increased the number of large format pawn stores in Mexico by 94 locations, or 24%, over the past twelve months.
On September 14, 2012, the Company completed the acquisition of Fast Cash Pawn located in Denver, Colorado. The 16 acquired locations are all large format, full-service stores. Transaction costs and integration expenses associated with this and previously completed 2012 acquisitions reduced third quarter earnings by approximately $0.02 per share. The assets, liabilities and operating results were included in the Company's consolidated results as of the closing date. The Company has successfully completed the integration of the Fast Cash stores into its point-of-sale and management information systems.
U.S. pawn store openings in the third quarter also included two new store openings in Texas and South Carolina. Year-to-date, a total of 50 U.S. stores have been opened or acquired. As of September 30, 2012, First Cash had 274 stores in the U.S., of which 182 are large format, full-service pawn stores. The Company has increased the number of large format pawn stores in the U.S. by 58 locations, or 47%, over the past twelve months.
Financial Position & Liquidity

During the nine month period ended September 30, 2012, the Company utilized cash on-hand, operating cash flows and its credit facility to fund $108 million of pawn store acquisitions, repurchase $61 million of common stock and invest $16 million in capital expenditures.
EBITDA from continuing operations for the trailing twelve months was $126 million, an increase of 11% versus the comparable prior twelve-month period. EBITDA margins were 22% for the trailing twelve months versus 23% for the prior-year period. Free cash flow for the trailing twelve months increased to $42 million, compared to $34 million in the comparable prior-year period. EBITDA and free cash flow are defined in the detailed reconciliation of these non-GAAP financial measures provided elsewhere in this release.
In September 2012, the Company entered into an agreement to expand its bank credit facility. The number of commercial bank lenders participating in the facility increased from two to five lenders and the amount of the facility was increased from $100 million to $175 million. The facility bears interest at the prevailing LIBOR rate plus a fixed spread of 2.0% and matures in February 2015. The total interest rate on the facility is currently 2.25% annually. At September 30, 2012, the Company had $111 million outstanding on the facility.
Discontinued Payday Operations

During the third quarter, the Company elected to close seven stand-alone small format payday/consumer loan stores in the Texas cities of Austin and Dallas that were primarily focused on offering credit services products. The Company intends to continue to operate the 19 pawn stores in these markets that have pawn licenses and offer pawn products. A loss on disposal of the seven stores of $633,000 or $0.03 per share, net of tax, has been recorded in the third quarter of 2012 as a discontinued operation. The loss is primarily a non-cash charge associated with a goodwill write-down on the seven closed locations. The operating results from continuing operations have been reclassified to exclude these Texas stores' results in 2012 and comparative prior-year periods. Over the past five years, the Company has strategically divested or closed 68 payday/consumer lending locations in seven states as part of its strategy of focusing growth on large format pawn operations.
Fiscal 2012 Outlook

While the outlook for payday lending earnings has been reduced by approximately $0.04 per share, the Company expects full-year earnings to remain in a range of $2.70 to $2.75 per share based on the strength of its core pawn operations.
Approximately 91% to 92% of 2012 revenues are expected to be derived from growing pawn operations, with the remainder expected to come from consumer loan and credit services operations.
Commentary & Analysis

Mr. Rick Wessel, chief executive officer, commented on the third quarter results, "We are very pleased with our third quarter results, which continue to be driven by impressive growth in our core pawn business. We achieved several significant milestones during the quarter as we opened our 800th store, acquired an additional 16 pawn stores in the U.S. and continued our industry-leading record pace of large format de novo store growth in Mexico. Consolidated pawn receivables increased 35% over the prior year, topping $100 million for the first time in Company history. The growth in pawn receivables drove an impressive 31% increase in total pawn service fees for the quarter. This is a strong leading indicator for the future growth of pawn fees and positions us well for not only a strong finish to this year, but also a solid start to next year."

"We remain excited and encouraged by the strong pawn growth in Mexico, which saw a 36% increase in pawn receivables and 35% growth in pawn fees. These results demonstrate the consistency and profitability of our large format business model in Mexico, where our pawn operations are now almost entirely focused on hard good (non-gold) lending and retail sales. We have clearly differentiated ourselves in Mexico, where we have a dominant share of the large format, full-service retail pawn market."

"Regarding our payday and consumer loan businesses, the strategic decision made several years ago to focus our growth on large format retail pawn operations and reduce overall exposure to payday lending products has served us well. While we continue to see contraction in many of our payday lending-related operations due in part to regulatory challenges and product saturation from internet and other store-front providers, our pawn operations continue to grow. Although there is a marginal earnings impact as a result of our decision to reduce our exposure to the payday lending space, we continue to believe that this strategic direction is in the best interest of our shareholders over the long-term."

"The Company's strong operating cash flow and balance sheet provide us the ability to fund both organic growth and take advantage of acquisition opportunities as they arise. During the third quarter, we increased the size of our unsecured bank credit facility to $175 million to support continued store openings and potential future acquisitions. Even with the additional credit availability, we remain significantly under-levered and have ample capacity to fund continued growth both domestically and internationally."

"In summary, given our competitive strengths, growth platform and expanding customer base, we are excited about our ability to further grow our store count, revenues, margins and earnings. We believe our business model, coupled with our strong balance sheet, positions us to drive sustainable long-term growth in shareholder value."

Forward-Looking Information

This release may contain forward-looking statements about the business, financial condition and prospects of 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 "believes," "projects," "expects," "may," "estimates," "should," "plans," "targets," "intends," "could," or "anticipates," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy or objectives. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Forward-looking statements in this release include, without limitation, the Company's expectations of earnings per share, earnings growth, expansion strategies, regulatory exposures, store openings, liquidity (including the availability of capital under existing credit facilities), cash flow, consumer demand for the Company's products and services, currency exchange rates and the impact thereof, completion of disposition transactions and expected gains or losses from the disposition of such operations, earnings from acquisitions, the ability to successfully integrate acquisitions and other performance results. These statements are made to provide the public with management's current assessment of the Company's business. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, there can be no assurances that such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained in this release speak only as of the date of this statement, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in this release. Such factors are difficult to predict and many are beyond the control of the Company and may include changes in regional, national or international economic conditions, changes in the inflation rate, changes in the unemployment rate, changes in consumer purchasing, borrowing and repayment behaviors, changes in credit markets, the ability to renew and/or extend the Company's existing bank line of credit, credit losses, changes in the market value of pawn collateral and merchandise inventories, changes or increases in competition, the ability to locate, open and staff new stores, the availability or access to sources of inventory, inclement weather, the ability to successfully integrate acquisitions, the ability to hire and retain key management personnel, the ability to operate with limited regulation as a credit services organization, new federal, state or local legislative initiatives or governmental regulations (or changes to existing laws and regulations, including recently enacted ordinances in the Texas cities of Dallas, Austin and San Antonio) affecting consumer loan businesses, credit services organizations and pawn businesses (in both the United States and Mexico), changes in import/export regulations and tariffs or duties, changes in anti-money laundering regulations, unforeseen litigation, changes in interest rates, monetary inflation, changes in tax rates or policies, changes in gold prices, changes in energy prices, cost of funds, changes in foreign currency exchange rates, future business decisions, public health issues, changes in demand for the Company's services and products, changes in the Company's ability to satisfy its debt obligations or to obtain new capital to finance growth, a prolonged interruption in the Company's operations of its facilities, systems, and business functions, including its information technology and other business systems, the implementation of new, or changes in the interpretation of existing accounting principles or financial reportingrequirements, and other uncertainties. These and other risks, uncertainties and regulatory developments are further and more completely described in the Company's Annual Report on Form 10-K and updated in subsequent releases on Form 10-Q. These risks and uncertainties are beyond the ability of the Company 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.

About First Cash

First Cash Financial Services, Inc. is a leading international specialty retailer and provider of consumer financial services. Its retail pawn locations buy and sell a wide variety of jewelry, electronics, tools and other merchandise, and make small customer loans secured by pledged personal property. The Company's focus is serving cash and credit constrained consumers through deep value retailing and offering small loans and other financial products. In total, the Company owns and operates 812 stores in twelve U.S. states and 24 states in Mexico.

First Cash was named by Fortune Magazine as one of America's 100 fastest growing companies for 2011. First Cash is also a component company in both the Standard & Poor's SmallCap 600 Index® and the Russell 2000 Index®. First Cash's common stock (ticker symbol "FCFS") is traded on the Nasdaq Global Select Market, which has the highest initial listing standards of any stock exchange in the world based on financial and liquidity requirements.

The First Cash Financial Services, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3365

STORE COUNT ACTIVITY

The following table details store openings for the three months ended September 30, 2012:

Pawn Locations Consumer
Large Small Loan Total
Format (1) Format (2) Locations (3) Locations
United States:
Total locations, beginning of period 164 27 72 263
New locations opened 2 -- -- 2
Locations acquired 16 -- -- 16
Discontinued consumer loan operations -- -- (7) (7)
Total locations, end of period 182 27 65 274

Mexico:
Total locations, beginning of period 465 19 34 518
New locations opened 18 -- -- 18
Total locations, end of period 483 19 34 536

Total:
Total locations, beginning of period 629 46 106 781
New locations opened 20 -- -- 20
Locations acquired 16 -- -- 16
Discontinued consumer loan operations -- -- (7) (7)
Total locations, end of period 665 46 99 810
(1) The large format locations include retail showrooms and accept a broad array of pawn collateral including jewelry, electronics, appliances, tools and other consumer hard goods. At September 30, 2012, 111 of the U.S. large format pawn stores also offered consumer loans or credit services products, which includes the 24 locations acquired from Mister Money.

(2) The small format locations typically have limited retail operations and primarily accept jewelry and small electronic items as pawn collateral. At September 30, 2012, all of the Texas and Mexico small format pawn stores also offered consumer loans or credit services products.

(3) The Company's U.S. free-standing, small format consumer loan locations offer a credit services product and are all located in Texas. The Mexico locations offer small, short-term consumer loans. In addition to stores shown on this chart, First Cash is also an equal partner in Cash & Go, Ltd., a joint venture, which owns and operates 38 check cashing and financial services kiosks located inside convenience stores in the state of Texas.

The following table details store openings for the nine months ended September 30, 2012:

Pawn Locations Consumer
Large Small Loan Total
Format (1) Format (2) Locations (3) Locations
United States:
Total locations, beginning of period 132 25 74 231
New locations opened 6 -- -- 6
Locations acquired 44 -- -- 44
Store format conversions -- 2 (2) --
Discontinued consumer loan operations -- -- (7) (7)
Total locations, end of period 182 27 65 274

Mexico:
Total locations, beginning of period 394 19 34 447
New locations opened 60 -- -- 60
Locations acquired 29 -- -- 29
Total locations, end of period 483 19 34 536

Total:
Total locations, beginning of period 526 44 108 678
New locations opened 66 -- -- 66
Locations acquired 73 -- -- 73
Store format conversions -- 2 (2) --
Discontinued consumer loan operations -- -- (7) (7)
Total locations, end of period 665 46 99 810
(1) The large format locations include retail showrooms and accept a broad array of pawn collateral including jewelry, electronics, appliances, tools and other consumer hard goods. At September 30, 2012, 111 of the U.S. large format pawn stores also offered consumer loans or credit services products, which includes the 24 locations acquired from Mister Money.

(2) The small format locations typically have limited retail operations and primarily accept jewelry and small electronic items as pawn collateral. At September 30, 2012, all of the Texas and Mexico small format pawn stores also offered consumer loans or credit services products.

(3) The Company's U.S. free-standing, small format consumer loan locations offer a credit services product and are all located in Texas. The Mexico locations offer small, short-term consumer loans. In addition to stores shown on this chart, First Cash is also an equal partner in Cash & Go, Ltd., a joint venture, which owns and operates 38 check cashing and financial services kiosks located inside convenience stores in the state of Texas.

FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

Three Months Ended Nine Months Ended
September 30, September 30,
2012 2011 2012 2011
(in thousands, except per share amounts)
Revenue:
Merchandise sales $ 96,006 $ 87,794 $ 269,204 $ 243,447
Pawn loan fees 39,768 31,741 108,612 91,277
Consumer loan and credit services fees 13,717 13,078 38,157 37,831
Other revenue 204 239 733 808
Total revenue 149,695 132,852 416,706 373,363

Cost of revenue:
Cost of goods sold 59,328 53,164 168,212 150,278
Consumer loan and credit services loss provision 4,397 3,908 9,587 8,587
Other cost of revenue 32 54 80 147
Total cost of revenue 63,757 57,126 177,879 159,012

Net revenue 85,938 75,726 238,827 214,351

Expenses and other income:
Store operating expenses 39,889 33,313 111,003 96,352
Administrative expenses 12,330 11,531 36,248 33,995
Depreciation and amortization 3,328 2,815 9,467 8,259
Interest expense 444 39 697 105
Interest income (30) (56) (147) (221)
Total expenses and other income 55,961 47,642 157,268 138,490

Income from continuing operations before income taxes 29,977 28,084 81,559 75,861

Provision for income taxes 10,341 9,832 28,138 26,554

Income from continuing operations 19,636 18,252 53,421 49,307

Income (loss) from discontinued operations, net of tax (747) 181 (671) 7,020
Net income $ 18,889 $ 18,433 $ 52,750 $ 56,327

Basic income per share:
Income from continuing operations $ 0.69 $ 0.60 $ 1.85 $ 1.59
Income (loss) from discontinued operations (0.03) -- (0.03) 0.23
Net income per basic share $ 0.66 $ 0.60 $ 1.82 $ 1.82

Diluted income per share:
Income from continuing operations $ 0.67 $ 0.58 $ 1.80 $ 1.55
Income (loss) from discontinued operations (0.03) 0.01 (0.03) 0.23
Net income per diluted share $ 0.64 $ 0.59 $ 1.77 $ 1.78

Weighted average shares outstanding:
Basic 28,616 30,348 28,951 30,915
Diluted 29,430 31,195 29,729 31,713

FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

September 30, December 31,
2012 2011 2011
(in thousands)
ASSETS

Cash and cash equivalents $ 25,744 $ 48,410 $ 70,296
Pawn loan fees and service charges receivable 15,888 11,472 10,842
Pawn loans 107,714 77,973 73,287
Consumer loans, net 2,027 929 858
Inventories 65,692 54,916 44,412
Other current assets 12,441 6,745 10,783
Total current assets 229,506 200,445 210,478

Property and equipment, net 89,621 68,620 73,451
Goodwill, net 162,675 68,704 69,695
Other non-current assets 6,418 3,504 3,472
Total assets $ 488,220 $ 341,273 $ 357,096

LIABILITIES AND STOCKHOLDERS' EQUITY

Current portion of notes payable $ 3,184 $ 487 $ --
Accounts payable and accrued liabilities 35,707 31,140 25,629
Income taxes payable and deferred taxes payable -- 7,280 9,776
Total current liabilities 38,891 38,907 35,405

Revolving unsecured credit facility 111,000 -- --
Notes payable, net of current portion 9,165 1,018 --
Deferred income tax liabilities 12,278 5,461 6,319
Total liabilities 171,334 45,386 41,724

Stockholders' equity
Preferred stock -- -- --
Common stock 383 383 383
Additional paid-in capital 149,606 147,385 147,649
Retained earnings 386,273 312,068 333,523
Accumulated other comprehensive income (loss) from cumulative foreign currency translation adjustments (5,381) (11,229) (13,463)
Common stock held in treasury, at cost (213,995) (152,720) (152,720)
Total stockholders' equity 316,886 295,887 315,372
Total liabilities and stockholders' equity $ 488,220 $ 341,273 $ 357,096

FIRST CASH FINANCIAL SERVICES, INC.

OPERATING INFORMATION

(UNAUDITED)

The following table details the components of revenue for the three months ended September 30, 2012, as compared to the three months ended September 30, 2011 (in thousands). Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates, which is more fully described elsewhere in this release.

Three Months Ended Increase/(Decrease)
September 30, Constant Currency
2012 2011 Increase/(Decrease) Basis
United States revenue:
Retail merchandise sales $ 25,801 $ 20,000 $ 5,801 29 % 29 %
Scrap jewelry sales 13,822 15,653 (1,831) (12)% (12)%
Pawn loan fees 16,747 13,452 3,295 24 % 24 %
Consumer loan and credit services fees 12,785 11,887 898 8 % 8 %
Other revenue 204 239 (35) (15)% (15)%
69,359 61,231 8,128 13 % 13 %

Mexico revenue:
Retail merchandise sales 44,137 38,157 5,980 16 % 24 %
Scrap jewelry sales 12,246 13,984 (1,738) (12)% (12)%
Pawn loan fees 23,021 18,289 4,732 26 % 35 %
Consumer loan and credit services fees 932 1,191 (259) (22)% (16)%
80,336 71,621 8,715 12 % 19 %

Total revenue:
Retail merchandise sales 69,938 58,157 11,781 20 % 26 %
Scrap jewelry sales 26,068 29,637 (3,569) (12)% (12)%
Pawn loan fees 39,768 31,741 8,027 25 % 31 %
Consumer loan and credit services fees 13,717 13,078 639 5 % 5 %
Other revenue 204 239 (35) (15)% (15)%
$ 149,695 $ 132,852 $ 16,843 13 % 16 %

FIRST CASH FINANCIAL SERVICES, INC.

OPERATING INFORMATION (CONTINUED)

(UNAUDITED)

The following table details the components of revenue for the nine months ended September 30, 2012, as compared to the nine months ended September 30, 2011 (in thousands). Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates, which is more fully described elsewhere in this release.

Nine Months Ended Increase/(Decrease)
September 30, Constant Currency
2012 2011 Increase/(Decrease) Basis
United States revenue:
Retail merchandise sales $ 72,063 $ 59,182 $ 12,881 22 % 22 %
Scrap jewelry sales 40,588 39,969 619 2 % 2 %
Pawn loan fees 44,394 37,853 6,541 17 % 17 %
Consumer loan and credit services fees 35,275 34,170 1,105 3 % 3 %
Other revenue 733 806 (73) (9)% (9)%
193,053 171,980 21,073 12 % 12 %

Mexico revenue:
Retail merchandise sales 122,780 109,420 13,360 12 % 23 %
Scrap jewelry sales 33,773 34,876 (1,103) (3)% (3)%
Pawn loan fees 64,218 53,424 10,794 20 % 32 %
Consumer loan and credit services fees 2,882 3,661 (779) (21)% (13)%
Other revenue -- 2 (2) (100)% (100)%
223,653 201,383 22,270 11 % 21 %

Total revenue:
Retail merchandise sales 194,843 168,602 26,241 16 % 23 %
Scrap jewelry sales 74,361 74,845 (484) (1)% (1)%
Pawn loan fees 108,612 91,277 17,335 19 % 26 %
Consumer loan and credit services fees 38,157 37,831 326 1 % 2 %
Other revenue 733 808 (75) (9)% (9)%
$ 416,706 $ 373,363 $ 43,343 12 % 17 %

FIRST CASH FINANCIAL SERVICES, INC.

OPERATING INFORMATION (CONTINUED)

(UNAUDITED)

The following table details customer loans and inventories held by the Company and active CSO credit extensions from an independent third-party lender as of September 30, 2012, as compared to September 30, 2011 (in thousands). Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year balances at the prior year end-of-period exchange rate, which is more fully described elsewhere in this release.

Balance at Increase/(Decrease)
September 30, Constant Currency
2012 2011 Increase/(Decrease) Basis
United States:
Pawn loans $ 51,875 $ 38,791 $ 13,084 34 % 34 %
CSO credit extensions held by independent third-party (1) 14,048 12,226 1,822 15 % 15 %
Other consumer loans 1,194 41 1,153 2,812 % 2,812 %
67,117 51,058 16,059 31 % 31 %

Mexico:
Pawn loans 55,839 39,182 16,657 43 % 36 %
Other consumer loans 833 888 (55) (6)% (10)%
56,672 40,070 16,602 41 % 35 %

Total:
Pawn loans 107,714 77,973 29,741 38 % 35 %
CSO credit extensions held by independent third-party (1) 14,048 12,226 1,822 15 % 15 %
Other consumer loans 2,027 929 1,098 118 % 114 %
$ 123,789 $ 91,128 $ 32,661 36 % 33 %

Pawn inventories:
U.S. pawn inventories $ 29,649 $ 23,149 $ 6,500 28 % 28 %
Mexico pawn inventories 36,043 31,767 4,276 13 % 8 %
$ 65,692 $ 54,916 $ 10,776 20 % 17 %
(1) CSO amounts are comprised of the principal portion of active CSO extensions of credit by an independent third-party lender, which are not included on the Company's balance sheet, net of the Company's estimated fair value of its liability under the letters of credit guaranteeing the loans.

FIRST CASH FINANCIAL SERVICES, INC.

UNAUDITED NON-GAAP FINANCIAL INFORMATION

The Company uses certain financial calculations, such as free cash flow, EBITDA and constant currency results, which are not considered measures of financial performance under U.S. generally accepted accounting principles ("GAAP"). Items excluded from the calculation of free cash flow, EBITDA and constant currency results are significant components in understanding and assessing the Company's financial performance. Since free cash flow, EBITDA and constant currency results are not measures determined in accordance with GAAP and are thus susceptible to varying calculations, free cash flow, EBITDA and constant currency results, as presented, may not be comparable to other similarly titled measures of other companies. Free cash flow, EBITDA and constant currency results should not be considered as alternatives to net income, cash flow provided by or used in operating, investing or financing activities or other financial statement data presented in the Company's consolidated financial statements as indicators of financial performance or liquidity. Non-GAAP measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures.

Earnings Before Interest, Taxes, Depreciation and Amortization

EBITDA is commonly used by investors to assess a company's leverage capacity, liquidity and financial performance. The following table provides a reconciliation of income from continuing operations to EBITDA (in thousands):

Trailing Twelve Months Ended
September 30,
2012 2011

Income from continuing operations $ 74,825 $ 67,018

Adjustments:
Income taxes 38,841 36,260
Depreciation and amortization 12,177 11,107
Interest expense 727 149
Interest income (204) (273)
Earnings from continuing operations before interest, taxes, depreciation and amortization $ 126,366 $ 114,261

EBITDA margin calculated as follows:
Total revenue from continuing operations $ 562,696 $ 500,335
Earnings from continuing operations before interest, taxes, depreciation and amortization 126,366 114,261
EBITDA as a percentage of revenue 22% 23%

FIRST CASH FINANCIAL SERVICES, INC.

UNAUDITED NON-GAAP FINANCIAL INFORMATION (CONTINUED)

Free Cash Flow

For purposes of its internal liquidity assessments, the Company considers free cash flow, which is defined as cash flow from the operating activities of continuing and discontinued operations reduced by purchases of property and equipment and net cash outflow from pawn and consumer loans. Free cash flow is commonly used by investors as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, repurchase stock, or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company's ability to generate cash flow from business operations and the impact that this cash flow has on the Company's liquidity. The following table reconciles "net cash flow from operating activities" to "free cash flow" (in thousands):

Trailing Twelve Months Ended
September 30,
2012 2011
Cash flow from operating activities, including discontinued operations $ 80,233 $ 78,506
Cash flow from investing activities:
Pawn and consumer loans (13,793) (18,113)
Purchases of property and equipment (24,079) (26,540)
Free cash flow $ 42,361 $ 33,853
Constant Currency

Certain performance metrics discussed in this release are presented on a "constant currency" basis, which may be considered a non-GAAP financial measurement of financial performance under GAAP. The Company's management uses constant currency results to evaluate operating results of certain business operations in Mexico, which are transacted primarily in Mexican pesos. Pawn scrap jewelry in Mexico is sold in U.S. dollars and, accordingly, does not require a constant currency adjustment. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in Mexican pesos using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. For balance sheet items, the closing exchange rate at the end of the applicable prior-year period (September 30, 2011) of 13.5 to 1 was used, compared to the current end of period (September 30, 2012) exchange rate of 12.9 to 1. For income statement items, the average closing daily exchange rate for the appropriate period was used. The average exchange rate for the prior-year quarter ended September 30, 2011 was 12.3 to 1, compared to the current-quarter rate of 13.2 to 1. The average exchange rate for the prior-year nine-month period ended September 30, 2011 was 12.0 to 1, compared to the current year-to-date rate of 13.2 to 1.

CONTACT: Gar Jackson
Phone: (949) 873-2789
Email: gar@irsense.com

Rick Wessel, Chairman and Chief Executive Officer
Doug Orr, Executive Vice President and Chief Financial Officer
Phone: (817) 505-3199
Email: investorrelations@firstcash.com
Website: www.firstcash.com

First Cash Reports 17% Increase in Second Quarter Earnings Per Share to $0.56; Growth in Pawn Loans and Retail Merchandise Sales Drive Record Earnings

ARLINGTON, Texas, Jul 18, 2012 (GlobeNewswire via COMTEX) -- First Cash Financial Services, Inc. (Nasdaq:FCFS) today announced record-setting revenue, net income and earnings per share for the three months ended June 30, 2012.
Earnings Highlights

-- Diluted earnings per share from continuing operations for the second
quarter of 2012 were $0.56, an increase of 17% compared to $0.48 in the
second quarter of 2011.
-- Year-to-date earnings per share from continuing operations increased 16%
to $1.13, compared to $0.97 in the prior year.
-- Net income from continuing operations for the second quarter of 2012
increased to $16.3 million, up 8% over the prior-year quarter, while
year-to-date net income increased 9% to $33.9 million.

Revenue Highlights
-- Consolidated second quarter revenue increased 18% on a constant currency
basis to $133 million. Revenue growth rates are presented herein on a
constant currency basis, calculated by applying the currency exchange
rate from the comparable prior-year period to the current year's Mexican
peso-denominated revenue. The exchange rate for the second quarter of
2012 was 13.5 Mexican pesos / U.S. dollar versus 11.7 Mexican pesos /
U.S. dollar in the prior-year period.
-- Revenue from the Company's operations in Mexico increased by 22% on a
constant currency basis over the prior-year second quarter. U.S.
pawn-related revenues increased 15% versus the same period last year. By
country, 57% of second quarter revenue was generated in Mexico and 43%
was derived from domestic operations.
-- On a consolidated product-line basis, the primary driver of revenue
growth came from the Company's core store-based pawn operations. During
the second quarter, pawn fees increased by 21% on a constant currency
basis versus the prior-year second quarter, while pawn store merchandise
sales increased by 22%. Pawn fee growth in Mexico was particularly
strong, up 29%, and retail sales in Mexico, comprised primarily of
electronics, tools and appliances, increased 25% versus the same period
last year.
-- Wholesale scrap jewelry revenues during the second quarter of 2012
increased 13% compared to the same period last year. While the average
selling price for gold increased 12% over the prior-year quarter, volume
was essentially unchanged. Scrap jewelry operations accounted for only
7% of net revenue (gross profit) for the quarter.
-- Second quarter revenue from non-core short-term loan and credit services
(payday loan products) was flat compared to the prior-year quarter and
comprised only 9% of total revenue.
-- Consolidated same-store revenue increased by 6% (on a constant currency
basis) for the second quarter. By country, same-store revenue increased
5% in Mexico and 6% in the United States. On a regional basis in Mexico,
same store revenue increased by 13% in the interior markets, but was
partially offset by small declines in the border regions.

Pawn Metrics
-- Pawn loans in Mexico increased 22% (on a constant currency basis),
driven by continued growth in store counts and significant sequential
quarterly improvement in most border markets. Pawn receivables in the
U.S. increased by 17% versus the prior year, also driven by store count
growth and continued same-store revenue growth.
-- The consolidated gross margin on retail merchandise sales was 42% for
the second quarter, compared to 40% in the prior-year quarter. The
increase was driven by significantly improved retail margins in Mexico,
which increased 400 basis points versus the prior-year period. U.S.
retail margins remained consistent with the prior year. The consolidated
gross margin on wholesale scrap jewelry was 22% for the quarter and 25%
year-to-date, reflecting higher jewelry acquisition costs compared to
the prior year.
-- Consolidated annualized inventory turns continued to improve in the
second quarter to a record 4.5 turns versus 3.8 turns during the
comparable prior-year quarter, driven by improved inventory quality and
strong retail demand.
-- The overall composition of pawn collateral remained constant in both the
U.S. and Mexico. On a consolidated basis at June 30, 2012, 60% of total
loans were collateralized with hard goods (electronics, tools and
appliances) with the remainder collateralized by jewelry. In Mexico, 80%
of the Company's pawns were collateralized with hard goods, and only 20%
were collateralized with jewelry, compared to 78% and 22%, respectively,
one year ago. In the U.S., jewelry comprised 62% of pawn collateral as
of the quarter end, consistent with a 64% jewelry mix last year.

Profitability and Return Metrics
-- The Company's return on equity for the trailing twelve months increased
to a record 24% versus 21% in the respective prior-year period.
-- The return on assets over the trailing twelve months remained a
record-level 20% versus 18% in the respective prior-year period.
-- Consolidated net operating margin (pre-tax income) was 20% for the
trailing twelve month period, while store-level operating profit margins
were 29% for the trailing twelve month period.

Acquisitions and New Store Openings
-- In total, the Company added 49 pawn store locations during the second
quarter of 2012. Year-to-date, a total of 103 stores have been opened
or acquired, compared to 48 additions at this point last year.
-- In June 2012, the Company completed the acquisition of 24 pawn stores
located in the states of Colorado (13), Kentucky (7), Wyoming (3) and
Nebraska (1). The 24 acquired stores are all large format, full-service
stores. The Company also completed the acquisition of one large format
pawn store located in Maryland during the second quarter. Transaction
costs and integration expenses associated with these acquisitions
reduced second quarter earnings by approximately $0.01 per share.
-- U.S. pawn store openings in the second quarter also included two de novo
stores: one located in Texas and the other in Oklahoma. Year-to-date, a
total of 32 U.S. stores have been opened or acquired. As of June 30,
2012, First Cash had 263 stores in the U.S., of which 164 are large
format, full-service stores. The Company has increased the number of
large format pawn stores in the U.S. by 36% over the past twelve months.
-- Pawn store openings in the second quarter also included 22 de novo
stores in Mexico. Year-to-date, a total of 71 Mexico stores have been
added, which included 42 de novo openings and a 29-store acquisition in
January 2012. As of June 30, 2012, First Cash had 518 stores in Mexico,
of which 465 are large format, full-service stores. The Company has
increased the number of large format pawn stores in Mexico by 26% over
the past twelve months.
-- In June 2012, the Company increased its estimate of fiscal 2012 store
additions to be in the range of 125 to 135 total locations. All of the
2012 store additions are expected to be large format pawn stores.

Financial Position & Liquidity
-- EBITDA from continuing operations for the trailing twelve months was
$124 million, an increase of 16% versus the comparable prior
twelve-month period. EBITDA margins remained at a record 23% for the
trailing twelve months versus 22% for the prior-year period. Free cash
flow for the trailing twelve months increased to $55 million, compared
to $24 million in the comparable prior-year period. EBITDA and free cash
flow are defined in the detailed reconciliation of these non-GAAP
financial measures provided elsewhere in this release.
-- During the first half of 2012, the Company utilized cash on-hand,
operating cash flows and its credit facility to fund $71 million of pawn
store acquisitions, repurchase $61 million of common stock and invest
$10 million in capital expenditures.
-- In April 2012, the Company completed its 1,500,000 share buyback
authorization that was announced in December 2011. The 1,500,000 shares
were repurchased at a total cost of $61 million and at an average price
of $40.85 per share.
-- In June 2012, the Company expanded the term of its existing unsecured
bank credit facility from $50 million to $100 million. The facility
bears interest at the prevailing LIBOR rate plus a margin which varies
from 1.5% to 2.0%, depending on the Company's leverage ratio. The total
interest rate on the facility is currently 1.75% annually. At June 30,
2012, the Company had $72 million outstanding on the facility. Net debt
(outstanding debt less investable cash) remains less than 50% of EBITDA
for the trailing twelve-month period.

Fiscal 2012 Outlook
-- The Company is maintaining its current 2012 guidance for earnings per
diluted share of $2.70 to $2.75 which represents a 20% to 22% projected
earnings increase over fiscal 2011.
-- Approximately 91% to 92% of 2012 revenues are expected to be derived
from pawn operations, with the remainder expected to come from consumer
loan and credit services operations.

Commentary & Analysis
Mr. Rick Wessel, chief executive officer, commented on the second quarter results, "We are very pleased with our second quarter results, which were driven by strong growth in our core pawn business. We achieved several significant milestones during the quarter as we opened our 750th store, acquired 25 pawn stores in the U.S. and continued our de novo store growth in Mexico. During the quarter, we added operations in four additional states in the U.S. and one additional state in Mexico. We now operate in 24 of the 32 total states in Mexico."

"Customer demand in our full-service pawn stores remains robust. The consolidated 21% growth in pawn service fees was particularly impressive, as was the 22% increase in retail sales. Of particular importance is the 29% growth in pawn fees and the 25% growth in retail sales in Mexico. In addition, both retail margins and inventory turns improved significantly over the prior year, reflecting the continued strength of consumer demand, the quality of our inventory and the training and systems utilized by our sales associates. These results demonstrate the consistency and profitability of our business model across regions and business cycles, both in the U.S. and particularly in Mexico, where our pawn operations are now almost entirely focused on hard good (non-gold) lending and retail sales."

"The Company's strong operating cash flow and balance sheet provide us the ability to fund both organic growth and take advantage of acquisition opportunities as they arise. During the quarter, we doubled the size of our unsecured bank credit facility to $100 million, providing us with increased flexibility for growth. The significant pawn acquisitions that we completed this year position us well for the future. While we have invested over $70 million in acquisitions year-to-date and incurred associated non-recurring costs of approximately $0.02 per share, we believe that these acquisitions will become significantly accretive in 2013 and beyond."

"In summary, given our competitive strengths, growth platform and expanding customer base, we are excited about our ability to further grow our store count, revenues, margins and earnings. Our business model, coupled with our strong balance sheet, should position us to drive sustainable long-term growth in shareholder value."

Forward-Looking Information

This release may contain forward-looking statements about the business, financial condition and prospects of 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 "believes," "projects," "expects," "may," "estimates," "should," "plans," "targets," "intends," "could," or "anticipates," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy or objectives. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Forward-looking statements in this release include, without limitation, the Company's expectations of earnings per share, earnings growth, expansion strategies, regulatory exposures, store openings, liquidity, cash flow, consumer demand for the Company's products and services, currency exchange rates, future share repurchases and the impact thereof, completion of disposition transactions and expected gains from the sale of such operations, earnings from acquisitions, the ability to successfully integrate acquisitions and other performance results. These statements are made to provide the public with management's current assessment of the Company's business. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, there can be no assurances that such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained in this release speak only as of the date of this statement, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based. Certain factors may cause results to differ materially from those anticipated by some of the statements made in this release. Such factors are difficult to predict and many are beyond the control of the Company and may include changes in regional, national or international economic conditions, changes in the inflation rate, changes in the unemployment rate, changes in consumer purchasing, borrowing and repayment behaviors, changes in credit markets, the ability to renew and/or extend the Company's existing bank line of credit, credit losses, changes in the market value of pawn collateral and merchandise inventories, changes or increases in competition, the ability to locate, open and staff new stores, the availability or access to sources of inventory, inclement weather, the ability to successfully integrate acquisitions, the ability to hire and retain key management personnel, the ability to operate with limited regulation as a credit services organization, new federal, state or local legislative initiatives or governmental regulations (or changes to existing laws and regulations) affecting consumer loan businesses, credit services organizations and pawn businesses (in both the United States and Mexico), changes in import/export regulations and tariffs or duties, changes in anti-money laundering regulations, unforeseen litigation, changes in interest rates, monetary inflation, changes in tax rates or policies, changes in gold prices, changes in energy prices, cost of funds, changes in foreign currency exchange rates, future business decisions, public health issues and other uncertainties. These and other risks, uncertainties and regulatory developments are further and more completely described in the Company's Annual Report on Form 10-K and updated in subsequent releases on Form 10-Q.

About First Cash

First Cash Financial Services, Inc. is a leading international specialty retailer and provider of consumer financial services. Its retail pawn locations buy and sell a wide variety of jewelry, electronics, tools and other merchandise, and make small customer loans secured by pledged personal property. The Company's focus is serving cash and credit constrained consumers through deep value retailing and offering small loans and other financial products. In total, the Company owns and operates 783 stores in twelve U.S. states and 24 states in Mexico.

First Cash was named by Fortune Magazine as one of America's 100 fastest growing companies for 2011. First Cash is also a component company in both the Standard & Poor's SmallCap 600 Index(R) and the Russell 2000 Index(R). First Cash's common stock (ticker symbol "FCFS") is traded on the Nasdaq Global Select Market, which has the highest initial listing standards of any stock exchange in the world based on financial and liquidity requirements.

The First Cash Financial Services, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3365

STORE COUNT ACTIVITY

The following table details store openings for the three months ended June 30, 2012:

Pawn Locations
----------------- Consumer
Large Small Loan Total

Format Format Locations
(1) (2) (3) Locations
--------- ------ --------- ---------
United States:
Total locations, beginning of
period 137 27 72 236
New locations opened 2 -- -- 2

Locations acquired 25 -- -- 25
--------- ------ --------- ---------

Total locations, end of period 164 27 72 263
========= ====== ========= =========

Mexico:
Total locations, beginning of
period 443 19 34 496
New locations opened 22 -- -- 22

Locations acquired -- -- -- --
--------- ------ --------- ---------

Total locations, end of period 465 19 34 518
========= ====== ========= =========

Total:
Total locations, beginning of
period 580 46 106 732
New locations opened 24 -- -- 24

Locations acquired 25 -- -- 25
--------- ------ --------- ---------

Total locations, end of period 629 46 106 781
========= ====== ========= =========

(1) The large format locations include retail showrooms and accept a broad
array of pawn collateral including jewelry, electronics, appliances, tools
and other consumer hard goods. At June 30, 2012, 109 of the U.S. large
format pawn stores also offered consumer loans or credit services products,
which includes the 24 locations acquired from Mister Money.
(2) The small format locations typically have limited retail operations and
primarily accept jewelry and small electronic items as pawn collateral. At
June 30, 2012, all of the Texas and Mexico small format pawn stores also
offered consumer loans or credit services products.
(3) The Company's U.S. free-standing, small format consumer loan locations
offer a credit services product and are all located in Texas. The Mexico
locations offer small, short-term consumer loans. In addition to stores
shown on this chart, First Cash is also an equal partner in Cash & Go,
Ltd., a joint venture, which owns and operates 38 check cashing and
financial services kiosks located inside convenience stores in the state of
Texas.

The following table details store openings for the six months ended June 30, 2012:

Pawn Locations
----------------- Consumer
Large Small Loan Total

Format Format Locations
(1) (2) (3) Locations
--------- ------ --------- ---------
United States:
Total locations, beginning
of period 132 25 74 231
New locations opened 4 -- -- 4
Locations acquired 28 -- -- 28

Store format conversions -- 2 (2) --
--------- ------ --------- ---------
Total locations, end of
period 164 27 72 263
========= ====== ========= =========

Mexico:
Total locations, beginning
of period 394 19 34 447
New locations opened 42 -- -- 42

Locations acquired 29 -- -- 29
--------- ------ --------- ---------
Total locations, end of
period 465 19 34 518
========= ====== ========= =========

Total:
Total locations, beginning
of period 526 44 108 678
New locations opened 46 -- -- 46
Locations acquired 57 -- -- 57

Store format conversions -- 2 (2) --
--------- ------ --------- ---------
Total locations, end of
period 629 46 106 781
========= ====== ========= =========

(1) The large format locations include retail showrooms and accept a
broad array of pawn collateral including jewelry, electronics,
appliances, tools and other consumer hard goods. At June 30, 2012,
109 of the U.S. large format pawn stores also offered consumer loans
or credit services products, which includes the 24 locations acquired
from Mister Money.
(2) The small format locations typically have limited retail
operations and primarily accept jewelry and small electronic items as
pawn collateral. At June 30, 2012, all of the Texas and Mexico small
format pawn stores also offered consumer loans or credit services
products.
(3) The Company's U.S. free-standing, small format consumer loan
locations offer a credit services product and are all located in
Texas. The Mexico locations offer small, short-term consumer loans.
In addition to stores shown on this chart, First Cash is also an
equal partner in Cash & Go, Ltd., a joint venture, which owns and
operates 38 check cashing and financial services kiosks located
inside convenience stores in the state of Texas.

FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

Three Months Ended Six Months Ended

June 30, June 30,
--------------------- ----------------------

2012 2011 2012 2011
---------- --------- ---------- ----------
(in thousands, except per share amounts)
Revenue:
Merchandise sales $ 86,307 $ 77,358 $ 173,213 $ 155,663
Pawn loan fees 33,932 30,564 68,844 59,536
Consumer loan and credit
services fees 12,304 12,410 25,291 25,634

Other revenue 235 249 546 586
---------- --------- ---------- ----------

Total revenue 132,778 120,581 267,894 241,419
---------- --------- ---------- ----------

Cost of revenue:
Cost of goods sold 54,579 48,879 108,894 97,121
Consumer loan and credit
services loss provision 3,093 2,716 5,481 4,973

Other cost of revenue 33 52 53 98
---------- --------- ---------- ----------

Total cost of revenue 57,705 51,647 114,428 102,192
---------- --------- ---------- ----------

Net revenue 75,073 68,934 153,466 139,227
---------- --------- ---------- ----------

Expenses and other income:
Store operating expenses 35,240 31,778 71,559 63,496
Administrative expenses 11,612 10,971 23,918 22,503
Depreciation and amortization 3,119 2,821 6,155 5,468
Interest expense 176 40 253 66

Interest income (36) (66) (117) (165)
---------- --------- ---------- ----------
Total expenses and other
income 50,111 45,544 101,768 91,368
---------- --------- ---------- ----------

Income from continuing
operations before income taxes 24,962 23,390 51,698 47,859

Provision for income taxes 8,613 8,186 17,837 16,750
---------- --------- ---------- ----------

Income from continuing
operations 16,349 15,204 33,861 31,109

Income from discontinued
operations, net of tax (1) -- 134 -- 6,785
---------- --------- ---------- ----------

Net income $ 16,349 $ 15,338 $ 33,861 $ 37,894
========== ========= ========== ==========

Basic income per share:
Income from continuing
operations (basic) $ 0.57 $ 0.49 $ 1.16 $ 1.00
Income from discontinued
operations (basic) -- -- -- 0.21
---------- --------- ---------- ----------

Net income per basic share $ 0.57 $ 0.49 $ 1.16 $ 1.21
========== ========= ========== ==========

Diluted income per share:
Income from continuing
operations (diluted) $ 0.56 $ 0.48 $ 1.13 $ 0.97
Income from discontinued
operations (diluted) -- -- -- 0.21
---------- --------- ---------- ----------

Net income per diluted share $ 0.56 $ 0.48 $ 1.13 $ 1.18
========== ========= ========== ==========

Weighted average shares
outstanding:
Basic 28,658 31,087 29,119 31,199
Diluted 29,404 31,869 29,878 31,972

(1) Represents non-recurring gain on the sale of the discontinued
Illinois consumer loan stores in March 2011.

FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

December
June 30, 31,
---------------------- ----------

2012 2011 2011
---------- ---------- ----------
(in thousands)
ASSETS

Cash and cash equivalents $ 29,793 $ 68,259 $ 70,296
Pawn loan fees and service
charges receivable 13,159 11,862 10,842
Pawn loans 88,298 79,654 73,287
Consumer loans, net 2,035 1,072 858
Inventories 52,978 54,636 44,412

Other current assets 2,841 10,266 10,783
---------- ---------- ----------
Total current assets 189,104 225,749 210,478

Property and equipment, net 83,577 69,909 73,451
Goodwill, net 127,603 72,523 70,395

Other non-current assets 4,948 3,036 2,772
---------- ---------- ----------

Total assets $ 405,232 $ 371,217 $ 357,096
========== ========== ==========

LIABILITIES AND STOCKHOLDERS'
EQUITY

Current portion of notes
payable $ 1,605 $ 479 $ --
Accounts payable and accrued
liabilities 30,126 29,584 25,629
Income taxes payable and
deferred taxes payable 440 7,417 9,776
---------- ---------- ----------
Total current liabilities 32,171 37,480 35,405

Revolving unsecured credit
facility 71,600 -- --
Notes payable, net of current
portion 2,641 1,143 --

Deferred income tax liabilities 8,362 9,899 6,319
---------- ---------- ----------

Total liabilities 114,774 48,522 41,724
---------- ---------- ----------

Stockholders' equity
Preferred stock -- -- --
Common stock 383 383 383
Additional paid-in capital 148,474 147,204 147,649
Retained earnings 367,384 293,635 333,523
Accumulated other
comprehensive income (loss)
from cumulative foreign
currency translation
adjustments (11,788) 1,285 (13,463)
Common stock held in treasury,
at cost (213,995) (119,812) (152,720)
---------- ---------- ----------

Total stockholders' equity 290,458 322,695 315,372
---------- ---------- ----------
Total liabilities and
stockholders' equity $ 405,232 $ 371,217 $ 357,096
========== ========== ==========

FIRST CASH FINANCIAL SERVICES, INC.
OPERATING INFORMATION
(UNAUDITED)

The following table details the components of revenue for the three months ended June 30, 2012, as compared to the three months ended June 30, 2011 (in thousands). Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates, which is more fully described elsewhere in this release.
Increase/
(Decrease
Three Months Ended )

June 30, Constant
---------------------- Currency

2012 2011 Increase/(Decrease) Basis
---------- ---------- --------------------------- ---------
United States revenue:
Retail merchandise
sales $ 21,200 $ 18,254 $ 2,946 16 % 16 %
Scrap jewelry sales 11,745 9,744 2,001 21 % 21 %
Pawn loan fees 13,108 11,894 1,214 10 % 10 %
Credit services fees 11,208 11,114 94 1 % 1 %
Consumer loan fees 147 31 116 374 % 374 %

Other revenue 235 247 (12)
---------- ---------- ------------------- (5)% (5)%

57,643 51,284 6,359
---------- ---------- ------------------- 12 % 12 %

Mexico revenue:
Retail merchandise
sales 41,061 37,836 3,225 9 % 25 %
Scrap jewelry sales 12,301 11,524 777 7 % 7 %
Pawn loan fees 20,824 18,670 2,154 12 % 29 %
Consumer loan fees 949 1,265 (316) (25)% (13)%

Other revenue -- 2 (2)
---------- ---------- ------------------- (100)% (100)%

75,135 69,297 5,838
---------- ---------- ------------------- 8 % 22 %

Total revenue:
Retail merchandise
sales 62,261 56,090 6,171 11 % 22 %
Scrap jewelry sales 24,046 21,268 2,778 13 % 13 %
Pawn loan fees 33,932 30,564 3,368 11 % 21 %
Credit services fees 11,208 11,114 94 1 % 1 %
Consumer loan fees 1,096 1,296 (200) (15)% (4)%

Other revenue 235 249 (14)
---------- ---------- ------------------- (6)% (6)%

$ 132,778 $ 120,581 $ 12,197
========== ========== =================== 10 % 18 %

FIRST CASH FINANCIAL SERVICES, INC.
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)

The following table details the components of revenue for the six months ended June 30, 2012, as compared to the six months ended June 30, 2011 (in thousands). Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates, which is more fully described elsewhere in this release.
Increase/
(Decrease
Six Months Ended )

June 30, Constant
---------------------- Currency

2012 2011 Increase/(Decrease) Basis
---------- ---------- --------------------------- ---------
United States revenue:
Retail merchandise
sales $ 46,262 $ 39,182 $ 7,080 18 % 18 %
Scrap jewelry sales 26,781 24,326 2,455 10 % 10 %
Pawn loan fees 27,647 24,401 3,246 13 % 13 %
Credit services fees 23,163 23,037 126 1 % 1 %
Consumer loan fees 178 127 51 40 % 40 %

Other revenue 546 584 (38)
---------- ---------- ------------------- (7)% (7)%

124,577 111,657 12,920
---------- ---------- ------------------- 12 % 12 %

Mexico revenue:
Retail merchandise
sales 78,643 71,263 7,380 10 % 23 %
Scrap jewelry sales 21,527 20,892 635 3 % 3 %
Pawn loan fees 41,197 35,135 6,062 17 % 31 %
Consumer loan fees 1,950 2,470 (520) (21)% (12)%

Other revenue -- 2 (2)
---------- ---------- ------------------- (100)% (100)%

143,317 129,762 13,555
---------- ---------- ------------------- 10 % 21 %

Total revenue:
Retail merchandise
sales 124,905 110,445 14,460 13 % 21 %
Scrap jewelry sales 48,308 45,218 3,090 7 % 7 %
Pawn loan fees 68,844 59,536 9,308 16 % 24 %
Credit services fees 23,163 23,037 126 1 % 1 %
Consumer loan fees 2,128 2,597 (469) (18)% (9)%

Other revenue 546 586 (40)
---------- ---------- ------------------- (7)% (7)%

$ 267,894 $ 241,419 $ 26,475
========== ========== =================== 11 % 17 %

FIRST CASH FINANCIAL SERVICES, INC.
OPERATING INFORMATION (CONTINUED)
(UNAUDITED)

The following table details customer loans and inventories held by the Company and active CSO credit extensions from an independent third-party lender as of June 30, 2012, as compared to June 30, 2011 (in thousands). Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year balances at the prior year end-of-period exchange rate, which is more fully described elsewhere in this release.
Increase/
(Decrease
Balance at )

June 30, Constant
--------------------- Currency

2012 2011 Increase/(Decrease) Basis
---------- --------- ---------------------------- ---------
United States:
Pawn loans $ 42,596 $ 36,383 $ 6,213 17 % 17 %
CSO credit extensions
held by independent
third-party (1) 13,462 12,167 1,295 11 % 11 %

Other consumer loans 1,242 46 1,196
---------- --------- ------------------- 2,600 % 2,600 %

57,300 48,596 8,704
---------- --------- ------------------- 18 % 18 %

Mexico:
Pawn loans 45,702 43,271 2,431 6 % 22 %

Other consumer loans 793 1,026 (233)
---------- --------- ------------------- (23)% (10)%

46,495 44,297 2,198
---------- --------- ------------------- 5 % 22 %

Total:
Pawn loans 88,298 79,654 8,644 11 % 20 %
CSO credit extensions
held by independent
third-party (1) 13,462 12,167 1,295 11 % 11 %

Other consumer loans 2,035 1,072 963
---------- --------- ------------------- 90 % 102 %

$ 103,795 $ 92,893 $ 10,902
========== ========= =================== 12 % 20 %

Pawn inventories:
U.S. pawn inventories $ 24,415 $ 20,030 $ 4,385 22 % 22 %

Mexico pawn inventories 28,563 34,606 (6,043)
---------- --------- ------------------- (17)% (4)%

$ 52,978 $ 54,636 $ (1,658)
========== ========= =================== (3)% 5 %

(1) CSO amounts are comprised of the principal portion of active CSO extensions of credit
by an independent third-party lender, which are not included on the Company's balance
sheet, net of the Company's estimated fair value of its liability under the letters of
credit guaranteeing the loans.

FIRST CASH FINANCIAL SERVICES, INC.
UNAUDITED NON-GAAP FINANCIAL INFORMATION

The Company uses certain financial calculations, such as free cash flow, EBITDA and constant currency results, which are not considered measures of financial performance under U.S. generally accepted accounting principles ("GAAP"). Items excluded from the calculation of free cash flow, EBITDA and constant currency results are significant components in understanding and assessing the Company's financial performance. Since free cash flow, EBITDA and constant currency results are not measures determined in accordance with GAAP and are thus susceptible to varying calculations, free cash flow, EBITDA and constant currency results, as presented, may not be comparable to other similarly titled measures of other companies. Free cash flow, EBITDA and constant currency results should not be considered as alternatives to net income, cash flow provided by or used in operating, investing or financing activities or other financial statement data presented in the Company's consolidated financial statements as indicators of financial performance or liquidity. Non-GAAP measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures.
Earnings Before Interest, Taxes, Depreciation and Amortization

EBITDA is commonly used by investors to assess a company's leverage capacity, liquidity and financial performance. The following table provides a reconciliation of income from continuing operations to EBITDA (in thousands):

Trailing Twelve Months
Ended

June 30,
----------------------

2012 2011
---------- ----------

Income from continuing operations $ 73,617 $ 62,091
Adjustments:
Income taxes 38,425 33,687
Depreciation and amortization 11,701 10,837
Interest expense 322 184

Interest income (230) (239)
---------- ----------
Earnings from continuing operations
before interest, taxes, depreciation
and amortization $ 123,835 $ 106,560
========== ==========

EBITDA margin calculated as follows:
Total revenue from continuing
operations $ 547,777 $ 475,008
Earnings from continuing operations
before interest, taxes, depreciation
and amortization 123,835 106,560
---------- ----------

EBITDA as a percentage of revenue 23% 22%
========== ==========

FIRST CASH FINANCIAL SERVICES, INC.
UNAUDITED NON-GAAP FINANCIAL INFORMATION (CONTINUED)

Free Cash Flow
For purposes of its internal liquidity assessments, the Company considers free cash flow, which is defined as cash flow from the operating activities of continuing and discontinued operations reduced by purchases of property and equipment and net cash outflow from pawn and consumer loans. Free cash flow is commonly used by investors as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, repurchase stock, or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company's ability to generate cash flow from business operations and the impact that this cash flow has on the Company's liquidity. The following table reconciles "net cash flow from operating activities" to "free cash flow" (in thousands):

Trailing Twelve
Months Ended

June 30,
--------------------

2012 2011
--------- ---------
Cash flow from operating activities,
including discontinued operations $ 84,693 $ 75,938
Cash flow from investing activities:
Pawn and consumer loans (5,620) (26,156)

Purchases of property and equipment (23,720) (25,872)
--------- ---------

Free cash flow $ 55,353 $ 23,910
========= =========

Constant Currency
Certain performance metrics discussed in this release are presented on a "constant currency" basis, which may be considered a non-GAAP financial measurement of financial performance under GAAP. The Company's management uses constant currency results to evaluate operating results of certain business operations in Mexico, which are transacted primarily in Mexican pesos. Pawn scrap jewelry in Mexico is sold in U.S. dollars and, accordingly, does not require a constant currency adjustment. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in Mexican pesos using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. For balance sheet items, the closing exchange rate at the end of the applicable prior-year period (June 30, 2011) of 11.8 to 1 was used, compared to the current end of period (June 30, 2012) exchange rate of 13.7 to 1. For income statement items, the average closing daily exchange rate for the appropriate period was used. The average exchange rate for the prior-year quarter ended June 30, 2011 was 11.7 to 1, compared to the current-quarter rate of 13.5 to 1. The average exchange rate for the prior-year six-month period ended June 30, 2011 was 11.9 to 1, compared to the current year-to-date rate of 13.3 to 1.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: First Cash Financial Services, Inc.

(Logo: http://media.primezone.com/cache/8120/int/3774.jpg)

By Staff

CONTACT: CONTACT: Gar Jackson
Phone: (949) 873-2789
Email: gar@irsense.com

Rick Wessel, Chairman and Chief Executive Officer
Doug Orr, Executive Vice President and Chief Financial Officer
Phone: (817) 505-3199
Email: investorrelations@firstcash.com
Website: www.firstcash.com

(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
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INDUSTRY KEYWORD: Financial Services
SUBJECT CODE: EARNINGS
BANKING
Earnings Releases and Operating Results