For Immediate Release:
First Cash Acquires 29-Store Chain of Pawn Stores; Pre-Announces 2011 Earnings per Share and Initiates 2012 Guidance
ARLINGTON, Texas (January 17, 2012) -- First Cash Financial
Services, Inc. (Nasdaq Stock Market: "FCFS") today
announced the acquisition of a 29-store chain of pawn stores
located in Mexico. In addition, the Company announced that
expected earnings per share from continuing operations were
$0.70 for the quarter ending December 31, 2011 and $2.25 for
all of fiscal 2011. The full earnings release for fourth
quarter and full year results for 2011 is scheduled for
January
25, 2012. In addition, the Company is initiating its fiscal
2012 earnings per share guidance to be in a range of $2.65 to
$2.70 per share, an increase of 18% to 20% over the prior
year.
The Company acquired 100% of the ownership equity in a
29-store Mexico-based pawn operation per a purchase
agreement, which was signed and closed on January 10, 2012.
The 29 acquired stores are all large format, full service
stores located in two states in western Mexico. In addition,
the Company has an exclusive option until January 2015 to
purchase up to eight additional stores located in a third
state in western Mexico. The effective purchase price, net of
cash acquired, was approximately $46.7 million and was paid
in a combination of cash and a $4.9 million note payable to
the seller. The operations and earnings of the acquired
stores will be consolidated effective January 10, 2012, and
the Company believes the transaction will be accretive to its
earnings in 2012.
Rick Wessel, chief executive officer of First Cash, stated,
"This is an important strategic acquisition which will
further expand our market-leading position in Mexico. The
acquired operation has a strong presence in each of its
operating territories and provides us a valuable entry point
into these additional markets in western Mexico. All of the
stores are large format locations, similar to our existing
First Cash stores, which support both lending and retail
operations for jewelry and a wide variety of hardgood items.
With the average age of the acquired stores being less than
four years, and one-third of the locations being opened
within the past 30 months, we believe that the stores have
the capacity to generate additional revenues and profits as
they mature. We are excited about the addition of these
stores as we further advance our significant leadership
position in Mexico."
With the acquisition and including 2012 store openings to
date, First Cash now operates 720 stores in total, of which
488 are in Mexico and 232 are in the U.S. During the first
two weeks of
2012, the Company completed the 29-store acquisition and
opened an additional 13 new stores for a total of 42
year-to-date additions. For fiscal 2011, a total of 82 new
store locations were opened or acquired.
For 2012, the Company anticipates opening approximately 81 to
91 new stores in addition to the
29 stores just acquired, for a total full-year increase of
110 to 120 stores. Over 100 of the expected 2012 additions
will be in Mexico and the remainder will be in the U.S.,
primarily in Texas. All of the anticipated 2012 store
openings will be large format pawn stores.
The Company announced preliminary diluted earnings per share from continuing operations for the quarter and year ended December 31, 2011. It expects net income from continuing operations of $2.25 per share for the full year of 2011, which represents an increase of 36% over the prior year earnings of $1.65 per share. For the quarter ended December 31, 2011, earnings are projected at $0.70 per share, compared to $0.56 per share in the prior-year quarter. The regular fiscal 2011 earnings announcement is scheduled for release before the market opens on Wednesday, January 25, 2012.
2012 Earnings ForecastThe Company is initiating its fiscal 2012 guidance for diluted earnings per share from continuing operations to be in a range of $2.65 to $2.70, an 18% to 20% increase over expected 2011 earnings. The 2012 guidance includes expected earnings accretion from the 29-store acquisition, but also reflects approximately $0.05 to $0.06 of earnings drag from the weaker Mexican peso, which is currently 13.6 to 1, compared to the average exchange rate of 12.4 to 1 in fiscal 2011.
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, future share repurchases and the
impact thereof, completion of disposition transactions and
expected gains from the sale of such operations, earnings
from 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 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.
First Cash Financial Services, Inc. is a leading
international specialty retailer and provider of consumer
financial services. Its 612 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 108 consumer loan locations
provide various combinations of financial services products,
including consumer loans, check cashing and credit services.
In total, the Company owns and operates 720 stores in eight
U.S. states and 23 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.
For further information, please contact:
Rick Wessel, Chairman & Chief Executive Officer
Doug Orr, Executive Vice President & Chief Financial
Officer
Phone: (817) 505-3199
Email: investorrelations@firstcash.com
Website: www.firstcash.com
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