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Item 5. Market for Registrant’s Common Equity

2022-02-28 compared with 2021-02-01 · 5 added, 65 removed, 23 unchanged (75% of the section changed)

2 unchanged sentences

The Company’s common stock is quoted on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “FCFS.”

On January 27, 2021, there were approximately 258 stockholders of record of the Company’s common stock.

In January 2021, the Company’s Board of Directors declared a $0.27 per share first quarter cash dividend on common shares outstanding, or an aggregate of $11.1 million based on the December 31, 2020 share count, to be paid on February 26, 2021 to stockholders of record as of February 12, 2021.

While the Company currently expects to continue the payment of quarterly cash dividends, the declaration and payment of cash dividends in the future (quarterly or otherwise) will be made by the Board of Directors, from time to time, subject to the Company’s financial condition, results of operations, business requirements, compliance with legal requirements, expected liquidity, debt covenant restrictions and other relevant factors including the impact of COVID-19.

On February 14, 2022, there were approximately 231 stockholders of record of the Company’s common stock.

In February 2022, the Company’s Board of Directors declared a $0.30 per share first quarter cash dividend on common shares outstanding, or an aggregate of $14.5 million based on the December 31, 2021 share count, to be paid on February 28, 2022 to stockholders of record as of February 21, 2022.

While the Company currently expects to continue the payment of quarterly cash dividends, the amount, declaration and payment of cash dividends in the future (quarterly or otherwise) will be made by the Board of Directors, from time to time, subject to the Company’s financial condition, results of operations, business requirements, compliance with legal requirements, expected liquidity, debt covenant restrictions and other relevant factors including the impact of COVID-19.

Issuer Purchases of Equity Securities

During 2021, the Company repurchased a total of 688,000 shares of common stock at an aggregate cost of $49.6 million and an average cost per share of $72.10, and during 2020, repurchased 1,427,000 shares of common stock at an aggregate cost of $107.0 million and an average cost per share of $74.96.

The Company intends to continue repurchases under its active share repurchase programs, including through open market transactions under trading plans in accordance with Rule 10b5-1 and Rule 10b-18 under the Exchange Act of 1934, as amended, subject to a variety of factors, including, but not limited to, the level of cash balances, credit availability, debt covenant restrictions, general business conditions, regulatory requirements, the market price of the Company’s stock, dividend policy, the availability of alternative investment opportunities, including acquisitions, and the impact of COVID-19.

The Company intends to continue repurchases under its active share repurchase program, including through open market transactions under trading plans in accordance with Rule 10b5-1 and Rule 10b-18 under the Exchange Act of 1934, as amended, subject to a variety of factors, including, but not limited to, the level of cash balances, credit availability, debt covenant restrictions, general business conditions, regulatory requirements, the market price of the Company’s stock, dividend policy, the availability of alternative investment opportunities, including acquisitions, and the impact of COVID-19.

The following table provides the information with respect to purchases made by the Company of shares of its common stock during each month a share repurchase program was in effect during the three months ended December 31, 2021 (dollars in thousands, except per share amounts):

7 unchanged sentences

December 1 through December 31, 2021 — — — 72,217

Total 446,000 59.81 446,000

The following table provides purchases made by the Company of shares of its common stock under each share repurchase program in effect during 2021 (dollars in thousands):

Plan Authorization Date Plan Completion Date Dollar Amount Authorized Shares Purchased in 2021 Dollar Amount Purchased in 2021 Remaining Dollar Amount Authorized For Future Purchases

October 24, 2018 January 30, 2020 $ 100,000 344,000 $ 28,797 $ —

January 28, 2020 May 4, 2021 $ 100,000 318,000 $ 21,827 $ —

January 27, 2021 Currently active 100,000 370,000 27,783 72,217

5 unchanged sentences

Note that historic performance is not necessarily indicative of future performance.

Selected Financial Data

The information below should be read in conjunction with “Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Company’s consolidated financial statements and related notes thereto in “Item 8.

Financial Statements and Supplementary Data.” The information below is derived from and qualified by reference to the Company’s audited financial statements for each of the five years ended December 31, 2020.

Year Ended December 31,

2020 2019 2018 2017 2016

(in thousands, except per share amounts and location counts)

Income Statement Data (1) :

Retail merchandise sales $ 1,075,518 $ 1,175,561 $ 1,091,614 $ 1,051,099 $ 669,131

Pawn loan fees 457,517 564,824 525,146 510,905 312,757

Wholesale scrap jewelry sales 96,233 103,876 107,821 140,842 62,638

Consumer loan and credit services fees 2,016 20,178 56,277 76,976 43,851

Total revenue 1,631,284 1,864,439 1,780,858 1,779,822 1,088,377

Cost of revenue:

Cost of retail merchandise sold 641,087 745,861 696,666 679,703 418,556

Cost of wholesale scrap jewelry sold 79,546 96,072 99,964 132,794 53,025

Consumer loan and credit services loss provision (488) 4,159 17,461 19,819 11,993

Total cost of revenue 720,145 846,092 814,091 832,316 483,574

Net revenue 911,139 1,018,347 966,767 947,506 604,803

Expenses and other income:

Store operating expenses 562,158 595,539 563,321 552,191 327,062

Administrative expenses 110,931 122,334 120,042 122,473 96,537

Depreciation and amortization 42,105 41,904 42,961 55,233 31,865

Interest expense, net 27,804 32,980 26,729 22,438 19,569

Merger and acquisition expenses 1,316 1,766 7,643 9,062 36,670

Loss (gain) on foreign exchange 884 (787) 762 (317) 952

Loss on extinguishment of debt 11,737 — — 14,114 —

Write-offs and impairments of certain lease intangibles and other assets 10,505 — — — —

Net gain on sale of common stock of Enova — — — — (1,299)

Total expenses and other income 767,440 793,736 761,458 775,194 511,356

Income before income taxes 143,699 224,611 205,309 172,312 93,447

Provision for income taxes 37,120 59,993 52,103 28,420 33,320

Net income $ 106,579 $ 164,618 $ 153,206 $ 143,892 $ 60,127

Dividends declared per common share $ 1.08 $ 1.02 $ 0.91 $ 0.77 $ 0.565

Year Ended December 31,

2020 2019 2018 2017 2016

Income Statement Data (Continued) (1) :

Earnings per share:

Basic $ 2.57 $ 3.83 $ 3.42 $ 3.01 $ 1.72

Diluted 2.56 3.81 3.41 3.00 1.72

Balance Sheet Data:

Inventories $ 190,352 $ 265,256 $ 275,130 $ 276,771 $ 330,683

Pawn loans 308,231 369,527 362,941 344,748 350,506

Net working capital 418,159 538,087 656,847 721,626 748,507

2,372,197 2,439,440 2,107,974 2,062,784 2,145,203

Long-term liabilities 881,976 886,503 656,825 466,880 551,589

Total liabilities 1,088,382 1,089,405 789,870 587,451 695,217

Stockholders’ equity 1,283,815 1,350,035 1,318,104 1,475,333 1,449,986

Statement of Cash Flows Data:

Net cash flows provided by (used in):

Operating activities $ 222,264 $ 231,596 $ 243,429 $ 220,357 $ 96,854

Investing activities (20,352) (137,053) (159,247) 1,397 (25,967)

Financing activities (186,502) (120,806) (127,061) (197,506) (58,713)

Location Counts:

Pawn stores 2,748 2,673 2,456 2,039 2,012

Consumer loan stores — 6 17 72 73

2,748 2,679 2,473 2,111 2,085

(1) See “Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Information—Adjusted Net Income and Adjusted Diluted Earnings Per Share” for additional information about certain 2020 , 2019 and 2018 income and expense items that affected the Company’s consolidated net income and diluted earnings per share.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 5. Market for Registrant’s Common Equity