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FirstCash, Inc.$99.89($.95)(.94%)

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 FirstCash Reports Fourth Quarter and Full Year Results; Declares Quarterly Dividend and Issues 2017 Earnings Outlook
   Thursday, February 02, 2017 6:00:07 AM ET

FirstCash, Inc. (the "Company") (FCFS ), a leading international operator of more than 2,000 retail pawn stores in the U.S. and Latin America, today announced revenue, net income and earnings per share for the fourth quarter and full year ended December 31, 2016. The Board of Directors also declared a $0.19 quarterly dividend payable on February 28, 2017 to stockholders of record as of February 14, 2017.

Mr. Rick Wessel, chief executive officer, stated, "2016 was a transformational year in the 28 year history of FirstCash. Early in the first quarter, we completed the acquisition of the Maxi Prenda stores in Mexico, Guatemala and El Salvador. This was our largest Latin American acquisition and expanded our operations outside of Mexico. In the third quarter, we almost tripled the size of our U.S. operations by merging with Cash America, the largest U.S. pawnshop operator with more than 800 stores in 20 U.S. states. Today, FirstCash has a market cap and combined assets of over $2 billion and is the largest pawn operator in the Americas with more than 2,000 stores serving under banked and value conscious customers in four countries.



"The core operating results in the fourth quarter were encouraging. Despite further currency headwinds impacting dollar-translated results, our Latin American stores had double digit increases in local currency same-store pawn loans and core revenues. In the U.S., the legacy First Cash stores posted a fourth quarter increase in same-store pawn loans, marking the first positive comparative in this metric in several quarters. The merger integration with Cash America remains on track as we are beginning to realize the expected cost synergies and are rapidly integrating our store operating systems on the FirstPawn IT platform. While the integration efforts and further currency headwinds will provide certain challenges in 2017, we believe the earnings, synergies and cash flow opportunities from our expansion and growth will drive long-term shareholder value," Mr. Wessel concluded.

Earnings Highlights

-- Consolidated operating results of the Company for the year ended December 31, 2016 include the revenues and operating results of Cash America for the last four months of the year and include merger related expenses and other adjustments of approximately $35.4 million pre-tax, or $0.72 per share, net of tax for 2016.

-- The Company reported the following consolidated results for the fourth quarter and full year of 2016. Adjusted measures exclude merger related expenses and other adjustments, which are further defined and reconciled in the detailed reconciliation of non-GAAP financial measures including EBITDA and adjusted EBITDA, provided elsewhere in this release (in thousands except per share amounts):

                               
                                                                                                                                                          Three Months Ended December 31,
                                                                                                         2016                                                                              2015
                                                                         As Reported          Adjusted                                                As Reported              Adjusted
                                                                           (GAAP)                                                  (Non-GAAP)                                                 (GAAP)                                                      (Non-GAAP)
Revenue                                                                   $   462,042                                               $   462,042                                               $ 191,424                                               $              191,424
Net income                                                                $    36,692                                               $    37,448                                               $  19,410                                               $               20,600
Diluted EPS                                                               $      0.76                                               $      0.77                                               $    0.69                                               $                 0.73
EBITDA                                                                    $    77,163                                               $    78,404                                               $  35,897                                               $               37,597
Weighted avg diluted shares                                                    48,532                                                    48,532                                                  28,097                                                               28,097
                                                                       
                                                                                                                                                         Twelve Months Ended December 31,
                                                                                                         2016                                                                                                                    2015
                                                                         As Reported                                                Adjusted                                                As Reported                                                    Adjusted
                                                                           (GAAP)                                                  (Non-GAAP)                                                 (GAAP)                                                      (Non-GAAP)
Revenue                                                                   $ 1,088,377                                               $ 1,088,377                                               $ 704,602                                               $              704,602
Net income                                                                $    60,127                                               $    85,332                                               $  60,710                                               $               68,483
Diluted EPS                                                               $      1.72                                               $      2.44                                               $    2.14                                               $                 2.42
EBITDA                                                                    $   144,881                                               $   180,252                                               $ 120,448                                               $              132,201
Weighted avg diluted shares                                                    35,004                                                    35,004                                                  28,326                                                               28,326
                                                                                                                                                                                                                                                         

-- For the quarter ended December 31, 2016, which includes the results of the Cash America operations for the full quarter, GAAP net income increased 89% while adjusted net income increased 82% compared to the same prior-year period. The smaller increases in GAAP and adjusted earnings per share of 10% and 5%, respectively, were a result of an increase in the weighted average diluted shares outstanding from the merger. Additionally, both GAAP and adjusted net income per share for the fourth quarter of 2016 were negatively impacted by approximately $0.06 per share due to the 19% decline in the value of the Mexican peso compared to the fourth quarter last year.

-- GAAP net income for the full year declined approximately 1%. The added earnings contribution from Latin American growth and the post-merger earnings contribution from Cash America were offset by $35 million in merger related costs and other adjustments and the 18% decline in the average value of the Mexican peso. Full year GAAP and adjusted earnings per share were reduced by approximately $0.28 per share due to the currency fluctuation.

-- EBITDA for the fourth quarter and full year totaled $77 million and $145 million, respectively. Adjusted EBITDA, which excludes merger costs, totaled $78 million for the current quarter, an increase of 109% compared to the fourth quarter of 2015. For the full year, adjusted EBITDA increased 36% to $180 million, as compared to $132 million in 2015. EBITDA and adjusted EBITDA are non-GAAP measures and are calculated in the detailed reconciliation of non-GAAP financial measures provided elsewhere in this release.

-- The Company is providing segment level reporting beginning with this release. The two identified segments are the U.S. operations segment and the Latin America operations segment. The pre-tax operating income in the Latin America segment increased 13% and 19% for the fourth quarter and full year periods, respectively, primarily due to the acquisition of Maxi Prenda and the strong same-store sales results that were partially offset by the currency impact. On a constant currency basis, the Latin America segment pre-tax operating income increased 32% and 39%, respectively. The pre-tax operating income in the U.S. increased 262% and 83% for the fourth quarter and full year periods, respectively, primarily due to the merger with Cash America. The operating results for each segment are further detailed elsewhere in this release.

Note: Certain growth rates in "Revenue Highlights" and "Pawn Operating Metrics" are calculated on a constant currency basis, a non-GAAP measure defined elsewhere in this release and reconciled to the most comparable GAAP measures in the financial statements in this release. The average Mexican peso to U.S. dollar exchange rate for fiscal 2016 was 18.7 pesos / dollar versus 15.8 pesos / dollar in the comparable prior-year period. The average exchange rate for the fourth quarter of 2016 was 19.8 pesos / dollar versus 16.7 pesos / dollar in the comparable prior year period.

Revenue Highlights

-- Consolidated revenue for fiscal 2016 was $1.1 billion, an increase of 54%. For the fourth quarter of 2016, revenues increased 141% and totaled $462 million. On a constant currency basis, total revenues increased 64% for the full year and 152% for the fourth quarter.

-- Fiscal 2016 U.S. segment revenues increased 99% due primarily to the partial year contribution from the Cash America operations and totaled $334 million. Core U.S. same-store pawn revenues, which are composed of pawn lending fees and retail merchandise sales, in the legacy First Cash locations decreased slightly at 1% for the quarter. Fourth quarter same-store core revenues in the legacy Cash America stores declined approximately 5%, which primarily reflected lower average pawn receivables for the quarter.

-- Revenues for fiscal 2016 in Latin America increased 13% on a dollar-translated basis and increased an impressive 32% on a constant currency basis, driven by strong same-store sales results and the contribution of $65 million from the 211 Maxi Prenda stores acquired in late 2015 and early 2016. While core Latin America same-store pawn revenues declined 6% and 7% on a U.S. dollar basis during the fourth quarter and full year of 2016, respectively, Latin America core same-store pawn revenues increased by 11% and 9% on a constant currency basis, respectively.

Pawn Operating Metrics

-- Consolidated retail merchandise sales margins were 37% for both the fourth quarter and the full 2016 fiscal year, down one percentage point compared to prior-year periods. Retail margins in the Latin America segment were 36% and 37% for the fourth quarter and full year, respectively, while U.S. retail margins were 37% and 38% for the fourth quarter and full year, respectively.

-- Pawn loans outstanding in Latin America at December 31, 2016 increased by 16% on a U.S. dollar basis and 37% on a constant currency basis. U.S. pawn loans outstanding at December 31, 2016 totaled $293 million, which included $224 million from the Cash America locations. Pawn loans in the legacy U.S. First Cash stores increased 1% year-over-year.

-- Significantly impacted by the 18% year-over-year decline in the value of the Mexican peso compared to the U.S. dollar, same-store pawn loans in Latin America at December 31, 2016 declined 8% on a dollar-denominated basis. On a constant currency basis, pawn loans increased 11%, matching the largest same-store increase in the Latin American stores over the past four years.

-- U.S. same-store pawn loan balances in the legacy First Cash locations increased 1%, which represented continued sequential improvement in this metric. Same-store pawn receivables at the Cash America stores remained down mid-single digits, reflecting the prior quarter trend and caused, in part, by actively reducing the number of delinquent pawn loans outstanding to conform with First Cash operating practices.

Store Count Activity

-- During fiscal 2016, a total of 1,038 stores were added, composed of 815 U.S. locations from the merger with Cash America, 220 new and acquired pawn stores in Latin America and three additional pawn stores acquired in the U.S. The Company closed 18 consumer loan stores during fiscal 2016 as part of its strategic plan to further reduce payday lending exposure. The year-over-year store count has increased 30% in Latin America and 94% overall.

-- As of December 31, 2016, the Company operated 2,085 stores, of which 96% or 2,012 were pawn stores. There are 955 total stores in Latin America and 1,130 total stores in the U.S. In addition, there were 70 check cashing locations, previously part of Cash America, that are operated by independent franchisees under franchising agreements with the Company.

Liquidity

-- As previously announced, the Company entered into a new $400 million unsecured revolving bank credit facility in conjunction with the merger. The credit facility has a five year term from the closing date of the merger, September 1, 2016, and bears interest at either the prevailing London Interbank Offered Rate (LIBOR) plus a fixed spread of 2.5% or the prevailing prime or base rate plus a fixed spread of 1.5%. The interest rate on the outstanding balance was 3.25% at year end.

-- At December 31, 2016, the Company had $260 million drawn on the facility and an additional $6 million of outstanding letters of credit. During the fourth quarter, the Company utilized proceeds from the sale of the Enova stock holdings and normal seasonal cash flows to reduce the outstanding balance on the facility by $100 million.

-- As of December 31, 2016, the Company had $90 million in cash on its balance sheet and $134 million of availability for future borrowings under its long-term U.S. revolving bank credit facility.

-- As a result of the merger with Cash America, the Company had owned approximately six million shares of Enova International, Inc. on September 1, 2016. As previously announced, all of the shares were sold in open market transactions with the final sales completed on December 6, 2016. The Company generated net proceeds of $62.1 million, which was used to pay down the balance on the unsecured revolving bank credit facility.

Cash Dividends and Share Repurchases

-- The Board of Directors declared a $0.19 per share first quarter cash dividend on common shares outstanding, which will be paid on February 28, 2017 to stockholders of record as of February 14, 2017. This represents a 52% increase over the dividend paid to First Cash Financial Services, Inc. stockholders in the first quarter of 2016.

-- The Company currently has approximately 1.1 million shares of its common stock available for repurchase under its current buyback authorization. While the Company did not repurchase shares in fiscal 2016 because of the merger, it expects to begin repurchases in fiscal 2017, subject to expected liquidity and other factors it normally considers when making share repurchases.

Fiscal 2017 Outlook

-- The outlook for 2017 is tempered by the continued volatility and decline in the value of the Mexican peso relative to the strong U.S. dollar. The Company’s currency forecast for 2017 assumes an exchange rate of approximately 22.0 Mexican pesos to 1.0 U.S. dollar. This represents a potential decline of almost 20% compared to the average exchange rate of 18.7 to 1.0 in 2016. The anticipated year-over-year earnings drag is approximately $0.17 to $0.21 per share. For reference, it is anticipated that for 2017 a one point change in the average peso to dollar exchange rate will impact annual earnings by approximately $0.06 to $0.08 per share.

-- The Company is initiating its fiscal full-year 2017 guidance for adjusted earnings per share, a non-GAAP measure that excludes merger and other acquisition expenses, to be in the range of $2.45 to $2.60 based on an expected full year weighted average share count of approximately 48.2 million shares. This compares to 2016 adjusted earnings per share of $2.44 which was based on only 35.0 million weighted average shares outstanding. -- Adjusted net income, a non-GAAP measure that excludes merger and other acquisition expenses, is projected to be in the range of approximately $118 million to $125 million, which at the midpoint, implies an increase of 43% over 2016 adjusted net income of $85 million.

-- The earnings guidance range implies adjusted EBITDA to be in the range of approximately $257 to $268 million for fiscal 2017. This compares to adjusted EBITDA of $180 million in fiscal 2016 and $132 million in fiscal 2015.

-- The guidance for fiscal 2017 is presented on a non-GAAP basis, as it does not include the impact of expenses related to the Cash America merger or any future acquisitions. Given the difficulty in predicting the amount and timing of merger related expenses, the Company cannot reasonably provide a full reconciliation of adjusted earnings per share to GAAP earnings per share.

-- These estimates of expected adjusted earnings per share include the following assumptions: -- An estimated average exchange rate of approximately 22.0 Mexican pesos / U.S. dollar for fiscal 2017 compared to the foreign exchange rate of 18.7 Mexican pesos / U.S. dollar in fiscal 2016.

-- The expected conversion of all the Cash America stores to the FirstPawn IT platform and the implementation of new operating protocols during 2017 that could have a short term negative impact on pawn receivables, inventories and margins.

-- An expected earnings drag of approximately $0.03 per share due to expected reductions in consumer lending (payday) operations during 2017.

-- An expected effective income tax rate for fiscal 2017 of approximately 36%, which compares to the 2016 effective rate of 33.8% (adjusted for merger costs). The increase in the tax rate is a result of the full year of incremental earnings from Cash America being taxed at approximately 37%.

-- As previously announced, the Company currently plans to open or acquire approximately 85 stores in 2017, primarily focused on Latin America, including its first stores in Colombia.

Additional Commentary and Analysis

Mr. Wessel further commented on the Company’s fiscal 2016 results, "Our Latin America operations team had a phenomenal year in 2016, as evidenced by the strong local currency growth in same-store pawn loans and revenues during 2016. We are excited and encouraged that the rate of revenue growth continued to accelerate over the course of the year. The integration of the Maxi Prenda stores was successfully completed and their initial performance has exceeded our expectations. With over 900 stores in Latin America, we are well-positioned for continued growth in this important market that now includes our planned expansion into Colombia in 2017.

"As discussed in previous releases during 2016, the U.S. operating environment has been challenging; however, we are encouraged by the steady stabilization in certain parts of the business, as seen in the legacy First Cash U.S. stores which recorded their first increase in same-store pawn loans in several quarters. This is a positive leading indicator for these legacy stores where we have remained disciplined in maintaining proper loan to value ratios and managing other operating fundamentals.

"During the fourth quarter, we successfully transitioned 65 of the Cash America stores onto the FirstPawn IT platform and anticipate that these stores will begin to operate more efficiently with improved tools for assessing loan to value ratios, managing inventory and implementing incentive compensation plans focused on earnings quality. In the short term, the transition will likely cause pawn loans and inventories to contract in these locations which may soften pawn fees and negatively affect retail margins during 2017. Over the long term though, we expect the transition to drive improved efficiency and profitability metrics. This year we have already transitioned 96 stores onto the FirstPawn platform and completed 161 stores in total, which puts us on target to integrate all of the remaining Cash America stores during 2017.

"We remain confident in our ability to meet or exceed the full run rate of our targeted synergies by the first half of 2018. From a corporate perspective, the merger integration and realization of expected corporate synergies remains on track. The corporate staff will be fully combined in the downtown Fort Worth location owned by Cash America by the end of the first quarter, and we are already generating significant savings through the elimination of overlapping administrative functions and processes.

"Most importantly, the merger with Cash America significantly enhances our overall cash flows. We are guiding adjusted EBITDA for 2017 to be in a range of $257 to $268 million, which represents an increase of approximately 100% over adjusted EBITDA in 2015, the last full year before the merger. Additionally, our Latin American profits, which are generated in local currencies, are being reinvested in loan balances, new stores and further expansion activities in Latin American markets. At year end, we had $134 million of availability on our U.S. credit facility that could be used for future U.S. investments and stock repurchases. During 2017, in addition to continued quarterly dividend payments, the Company intends to resume stock repurchases under its existing share repurchase plan, targeting a total shareholder payout ratio of up to 50% of GAAP net income.

"Our adjusted EPS guidance for 2017 is tempered by macro factors primarily related to foreign currency translation, conservatism in our outlook for the transitioning and consolidating of our merged U.S. operations and a higher tax rate. Despite these headwinds, we still expect adjusted net income growth in 2017 to be in the range of 39% to 47% compared to 2016. We remain optimistic and committed to our pawn-focused long-term strategies in both the U.S. and Latin America and anticipate adding approximately 85 stores this year. Through continued additions of new stores and accretive acquisitions, we believe that we are building a diversified multi-country earnings platform. Coupled with our capacity to repurchase stock and pay cash dividends, we are confident in our prospects for delivering long-term shareholder value," concluded Rick Wessel, FirstCash chief executive officer.

Forward-Looking Information

This release contains forward-looking statements about the business, financial condition and prospects of FirstCash, Inc. and its wholly owned subsidiaries. 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," "would," "anticipates," "potential," "confident," "optimistic" or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact 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.

These forward-looking statements are made to provide the public with management’s current assessment of the Company’s business. Although the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, the risks, uncertainties and regulatory developments discussed and described in (i) the Company’s 2015 annual report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on February 17, 2016, including the risks described in Part 1, Item 1A, "Risk Factors" thereof (ii) the Company’s quarterly report on Form 10-Q filed with the SEC on November 9, 2016, including the risks described in Part II, Item 1A, "Risk Factors" thereof, and (iii) the other reports filed with the SEC, including the Company’s forthcoming annual report on Form 10-K. Many of 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. The forward-looking statements contained in this release speak only as of the date of this release, 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, except as required by law.

About FirstCash

With over 2,000 retail pawn and consumer lending locations in the U.S., Mexico, Guatemala and El Salvador, FirstCash is the leading international operator of pawn stores. FirstCash focuses on serving cash and credit constrained consumers through its retail pawn locations, which buy and sell a wide variety of jewelry, consumer electronics, power tools, household appliances, sporting goods, musical instruments and other merchandise, and make small consumer pawn loans secured by pledged personal property. Approximately 96% of the Company’s revenues are from pawn operations.

FirstCash is a component company in both the Standard & Poor’s SmallCap 600 Index(R) and the Russell 2000 Index(R). FirstCash’s common stock (ticker symbol "FCFS") is traded on the NYSE, home to many of the world’s most iconic brands, technology business leaders and emerging growth companies shaping today’s global economic landscape. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.cashamerica.com .

                                                                                                                                                                                         
                                                                                                                                                                                         FIRSTCASH, INC.
                                                                                                                                                                           CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                                                                           (UNAUDITED)
                                                                                                                                                                                                                                                                       
                                                                                                                                                     Three Months Ended                                                                                                                                                   Twelve Months Ended
                                                                                                                                                        December 31,                                                                                                                                                         December 31,
                                                                                                 ---------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------
                                                                                                                 2016                                         2015                                                                              2016                                         2015
                                                                                                 ----------------------------------                                             -----------------------------------------                                             ----------------------------------                                             -----------------------------------------
                                                                                                                                                                                                                             (in thousands, except per share amounts)
Revenue:
   Retail merchandise sales                                                                            $ 282,597                                                                      $        128,280                                                                      $ 669,131                                                                      $        449,296
   Pawn loan fees                                                                                        129,941                                                                                49,329                                                                        312,757                                                                               195,448
   Consumer loan and credit services fees                                                                 22,772                                                                                 6,503                                                                         43,851                                                                                27,803
   Wholesale scrap jewelry sales                                                                          26,732                                                              7,312                                                      62,638                                                             32,055  
                                                                                                 ------------------------------------                                           -------------------------------------------                                           ------------------------------------                                           -------------------------------------------
      Total revenue                                                                                      462,042                                                            191,424                                                   1,088,377                                                            704,602  
                                                                                                 ------------------------------------                                           -------------------------------------------                                           ------------------------------------                                           -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                      
Cost of revenue:
   Cost of retail merchandise sold                                                                       179,390                                                                                79,874                                                                        418,556                                                                               278,631
   Consumer loan and credit services loss provision                                                        6,213                                                                                 2,085                                                                         11,993                                                                                 7,159
   Cost of wholesale scrap jewelry sold                                                                   22,324                                                              6,540                                                      53,025                                                             27,628  
                                                                                                 ------------------------------------                                           -------------------------------------------                                           ------------------------------------                                           -------------------------------------------
      Total cost of revenue                                                                              207,927                                                             88,499                                                     483,574                                                            313,418  
                                                                                                 ------------------------------------                                           -------------------------------------------                                           ------------------------------------                                           -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                      
Net revenue                                                                                              254,115                                                            102,925                                                     604,803                                                            391,184  
                                                                                                 ------------------------------------                                           -------------------------------------------                                           ------------------------------------                                           -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                      
Expenses and other income:
   Store operating expenses                                                                              137,451                                                                                52,510                                                                        328,014                                                                               207,572
   Administrative expenses                                                                                38,260                                                                                12,818                                                                         96,537                                                                                51,883
   Merger and other acquisition expenses                                                                   2,793                                                                                 1,700                                                                         36,670                                                                                 2,875
   Depreciation and amortization                                                                          14,700                                                                                 4,288                                                                         31,865                                                                                17,939
   Goodwill impairment - U.S. consumer loan operations                                            --                                                                        --                                                                 --                                                                                 7,913
   Interest expense                                                                                        6,461                                                                                 4,405                                                                         20,320                                                                                16,887
   Interest income                                                                                          (115 )                                                                                (423 )                                                                         (751 )                                                                              (1,566 )
   Net gain on sale of common stock of Enova                                                              (1,552 )                                                                      --                                                      (1,299 )                                                                      --  
                                                                                                 ------------------------------------                                           -------------------------------------------                                           ------------------------------------                                           -------------------------------------------
      Total expenses and other income                                                                    197,998                                                             75,298                                                     511,356                                                            303,503  
                                                                                                 ------------------------------------                                           -------------------------------------------                                           ------------------------------------                                           -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                      
Income before income taxes                                                                                56,117                                                                                27,627                                                                         93,447                                                                                87,681
                                                                                                                                                                                                                                                                                                                                                      
   Provision for income taxes                                                                             19,425                                                              8,217                                                      33,320                                                             26,971  
                                                                                                 ------------------------------------                                           -------------------------------------------                                           ------------------------------------                                           -------------------------------------------
                                                                                                                                                                                                                                                                                                                                                      
Net income                                                                                             $  36,692                                                   $         19,410                                                   $  60,127                                                   $         60,710  
                                                                                                 ======= ======= ====================                                           ======= ============== ====================                                           ======= ======= ====================                                           ======= ============== ====================
                                                                                                                                                                                                                                                                                                                                                      
Net income per share:
   Basic                                                                                               $    0.76                                                                      $           0.69                                                                      $    1.72                                                                      $           2.16
   Diluted                                                                                             $    0.76                                                                      $           0.69                                                                      $    1.72                                                                      $           2.14
                                                                                                                                                                                                                                                                                                                                                      
Weighted average shares outstanding:
   Basic                                                                                                  48,507                                                                                27,933                                                                         34,997                                                                                28,138
   Diluted                                                                                                48,532                                                                                28,097                                                                         35,004                                                                                28,326
                                                                                                                                                                                                                                                                                                                                                      
Dividends declared per common share                                                                    $   0.190                                                                      $ --                                                                      $   0.565                                                                      $ --
                                                                                                                                                                                                                                                                                                                                                                             
                                                                                 
                                                                                                                         FIRSTCASH, INC.
                                                                                                              CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                                                           (UNAUDITED)
                                                                                                                                            
                                                                                                                                                                                                December 31,
                                                                                                                                           ----------------------------------------------------------------------------------------------------------------------
                                                                                                                                                            2016                                      2015
                                                                                                                                           ------------------------------------                                             ----------------------------------
                                                                                                                                                                                               (in thousands)
                                   ASSETS
Cash and cash equivalents                                                                                                                        $    89,955                                                                      $  86,954
Pawn loan fees and service charges receivable                                                                                                         41,013                                                                         16,406
Pawn loans                                                                                                                                           350,506                                                                        117,601
Consumer loans, net                                                                                                                                   29,204                                                                          1,118
Inventories                                                                                                                                          330,683                                                                         93,458
Income taxes receivable                                                                                                                               25,510                                                                          3,567
Prepaid expenses and other current assets                                                                                                             25,264                                                       6,330  
                                                                                                                                           --------------------------------------                                           ------------------------------------
      Total current assets                                                                                                                           892,135                                                                        325,434
                                                                                                                                                                                                                             
Property and equipment, net                                                                                                                          236,057                                                                        112,447
Goodwill                                                                                                                                             831,151                                                                        295,609
Other assets                                                                                                                                         176,153                                                                         10,084
Deferred tax assets                                                                                                                                    9,707                                                       9,321  
                                                                                                                                           --------------------------------------                                           ------------------------------------
      Total assets                                                                                                                               $ 2,145,203                                                   $ 752,895  
                                                                                                                                           ======= ========= ====================                                           ======= ======= ====================
                                                                                                                                                                                                                             
       LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities                                                                                                         $   109,354                                                                      $  27,826
Customer deposits                                                                                                                                     33,536                                                                         14,426
Income taxes payable                                                                                                                                     738                                                       3,923  
                                                                                                                                           --------------------------------------                                           ------------------------------------
      Total current liabilities                                                                                                                      143,628                                                                         46,175
                                                                                                                                                                                                                             
Revolving unsecured credit facility                                                                                                                  260,000                                                                         58,000
Senior unsecured notes                                                                                                                               196,545                                                                        195,874
Deferred tax liabilities                                                                                                                              61,275                                                                         21,464
Other liabilities                                                                                                                                     33,769                                              --  
                                                                                                                                           ----------------  --------------------                                           --------------  --------------------
      Total liabilities                                                                                                                              695,217                                                     321,513  
                                                                                                                                           ----------------  --------------------                                           --------------  --------------------
                                                                                                                                                                                                                             
Stockholders’ equity:
   Preferred stock                                                                                                                            --                                                                 --
   Common stock                                                                                                                                          493                                                                            403
   Additional paid-in capital                                                                                                                      1,217,969                                                                        202,393
   Retained earnings                                                                                                                                 387,401                                                                        643,604
   Accumulated other comprehensive loss                                                                                                             (119,806 )                                                                      (78,410 )
   Common stock held in treasury, at cost                                                                                                            (36,071 )                                                                     (336,608 )
                                                                                                                                           --------------------------------------                                           ------------------------------------
      Total stockholders’ equity                                                                                        1,449,986                                                     431,382  
                                                                                                                                           --------------------------------------                                           ------------------------------------
      Total liabilities and stockholders’ equity                                                                      $ 2,145,203                                                   $ 752,895  
                                                                                                                                           ======= ========= ====================                                           ======= ======= ====================
                                                                                                                                                                                                                                             
Note: The presentation of the Cash America assets and assumed
liabilities in the Company’s financial statements is preliminary
and will likely change, perhaps significantly, as fair value
estimates are refined during the measurement period. The Company
will complete its purchase price allocation no later than the
third quarter of 2017.
                                                                                                                                                                                                                                      
Additionally, certain balances as of December 31, 2015 have been
reclassified in order to conform to the current year presentation.
 

FIRSTCASH, INC. OPERATING INFORMATION (UNAUDITED)

The Company is providing segment level reporting beginning with this release. The Company’s new reportable segments are as follows:

-- U.S. operations - Includes all pawn and consumer loan operations in the United States

-- Latin America operations - Includes all pawn and consumer loan operations in Latin America, which currently includes operations in Mexico, Guatemala and El Salvador

The Company has provided a detail of pre-tax operating income by segment, which is a measure of pre-tax store-level operating performance. Store operating expenses include salary and benefit expense of store-level employees, occupancy costs, bank charges, security, insurance, utilities, supplies, cash shortages and other costs incurred by the stores.

Operating Results for the Three Months Ended December 31, 2016 Compared to the Three Months Ended December 31, 2015

The following table presents segment pre-tax operating income of the U.S. operations segment for the three months ended December 31, 2016 as compared to the three months ended December 31, 2015 (in thousands).

                                                                                                                                                                        
                                                                                                                                          Three Months Ended
                                                                                                                                             December 31,                                                                                                          Increase /
                                                                                              -----------------------------------------------------------------------------------------------------------
U.S. Operations Segment                                                                                     2016                                 2015                                                                        (Decrease)
                                                                                              ------------------------------                                             -----------------------------                                             ----------------------------------------
Revenue:
   Retail merchandise sales                                                                     $ 199,353                                                                  $ 54,056                                                                                                      269%
   Pawn loan fees                                                                                 100,954                                                                    24,545                                                                                                      311%
   Consumer loan and credit services fees                                                          22,303                                                                     5,965                                                                                                      274%
   Wholesale scrap jewelry sales                                                                   21,770                                                  4,391                                                                                   396%
                                                                                              --------------------------------                                           -------------------------------
      Total revenue                                                                               344,380                                                 88,957                                                                                   287%
                                                                                              --------------------------------                                           -------------------------------
                                                                                                                                                                                                                                                    
Cost of revenue:
   Cost of retail merchandise sold                                                                126,454                                                                    32,360                                                                                                      291%
   Consumer loan and credit services loss provision                                                 6,114                                                                     1,956                                                                                                      213%
   Cost of wholesale scrap jewelry sold                                                            18,443                                                  4,040                                                                                   357%
                                                                                              --------------------------------                                           -------------------------------
      Total cost of revenue                                                                       151,011                                                 38,356                                                                                   294%
                                                                                              --------------------------------                                           -------------------------------
                                                                                                                                                                                                                                                    
Net revenue                                                                                       193,369                                                 50,601                                                                                   282%
                                                                                              --------------------------------                                           -------------------------------
                                                                                                                                                                                                                                                    
Segment expenses:
   Store operating expenses                                                                       108,031                                                                    27,785                                                                                                      289%
   Depreciation and amortization                                                                    7,791                                                  1,390                                                                                   461%
                                                                                              --------------------------------                                           -------------------------------
      Total segment expenses                                                                      115,822                                                 29,175                                                                                   297%
                                                                                              --------------------------------                                           -------------------------------
                                                                                                                                                                                                                                                    
Segment pre-tax operating income                                                                $  77,547                                               $ 21,426                                                                                   262%
                                                                                              === ======= ====================                                           === ====== ====================
                                                                                                                                                                                                                                                                         

FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)

The following table presents segment pre-tax operating income of the Latin America operations segment for the three months ended December 31, 2016 as compared to the three months ended December 31, 2015 (in thousands). Constant currency results are non-GAAP measures which 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.

                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                           Constant Currency Basis
                                                                                                                                                                                                                                                                                                                      ------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                Three Months              
                                                                                                                                             Three Months                                                                                                                                                                           Ended
                                                                                                                                                 Ended                                                                                                                                                                          December 31,                                                          Increase /
                                                                                                                                             December 31,                                                                                                 Increase /                                                                2016                                                              (Decrease)
                                                                                              ----------------------------------------------------------------------------------------------------------
                                                                                                            2016                                                                      2015                                                                (Decrease)                                                             (Non-GAAP)                                                           (Non-GAAP)
                                                                                              -----------------------------                                             -----------------------------                                             ----------------------                                              ------------------------------                                             -------------------
Latin America Operations Segment
Revenue:
   Retail merchandise sales                                                                     $ 83,244                                                                  $ 74,224                                                                                    12 %                                               $ 97,933                                                                        32 %
   Pawn loan fees                                                                                 28,987                                                                    24,784                                                                                    17 %                                                 33,989                                                                        37 %
   Consumer loan and credit services fees                                                            469                                                                       538                                                                                   (13 )%                                                   555                                                                         3 %
   Wholesale scrap jewelry sales                                                                   4,962                                                  2,921                                                                 70 %                                                  4,962                                                     70 %
                                                                                              -------------------------------                                           -------------------------------                                                                                                               --------------------------------
      Total revenue                                                                              117,662                                                102,467                                                                 15 %                                                137,439                                                     34 %
                                                                                              -------------------------------                                           -------------------------------                                                                                                               --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Cost of revenue:
   Cost of retail merchandise sold                                                                52,936                                                                    47,514                                                                                    11 %                                                 62,242                                                                        31 %
   Consumer loan and credit services loss provision                                                   99                                                                       129                                                                                   (23 )%                                                   117                                                                        (9 )%
   Cost of wholesale scrap jewelry sold                                                            3,881                                                  2,500                                                                 55 %                                                  4,594                                                     84 %
                                                                                              -------------------------------                                           -------------------------------                                                                                                               --------------------------------
      Total cost of revenue                                                                       56,916                                                 50,143                                                                 14 %                                                 66,953                                                     34 %
                                                                                              -------------------------------                                           -------------------------------                                                                                                               --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Net revenue                                                                                       60,746                                                 52,324                                                                 16 %                                                 70,486                                                     35 %
                                                                                              -------------------------------                                           -------------------------------                                                                                                               --------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Segment expenses:
   Store operating expenses                                                                       29,420                                                                    24,725                                                                                    19 %                                                 34,072                                                                        38 %
   Depreciation and amortization                                                                   2,510                                                  2,128                                                                 18 %                                                  2,913                                                     37 %
                                                                                              ---------  --------------------                                           ---------  --------------------                                                                                                               ----------  --------------------
      Total segment expenses                                                                      31,930                                                 26,853                                                                 19 %                                                 36,985                                                     38 %
                                                                                              ---------  --------------------                                           ---------  --------------------                                                                                                               ----------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                  
Segment pre-tax operating income                                                                $ 28,816                                               $ 25,471                                                                 13 %                                               $ 33,501                                                     32 %
                                                                                              === ====== ====================                                           === ====== ====================                                                                                                               ==== ====== ====================
                                                                                                                                                                                                                                                   

FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)

The following table reconciles pre-tax operating income of the Company’s U.S. operations segment and Latin America operations segment discussed above to consolidated net income for the three months ended December 31, 2016 as compared to the three months ended December 31, 2015 (in thousands).

                                                                                                               Three Months Ended                                                    
                                                                                                                                                        December 31,                                                                                                                 Increase /
                                                                                                       ---------------------------------------------------------------------------------------------------------------
                                                                                                                     2016                                  2015                                                                                (Decrease)
                                                                                                       -----------------------------                                             ----------------------------------                                             --------------------------------------------------
Other Items
   U.S. operations segment pre-tax operating income                                                      $ 77,547                                                                      $  21,426                                                                                            262 %
   Latin America operations segment pre-tax operating income                                               28,816                                                      25,471                                                                          13 %
                                                                                                       -------------------------------                                           ------------------------------------
      Consolidated segment pre-tax operating income                                                       106,363                                                      46,897                                                                         127 %
                                                                                                       -------------------------------                                           ------------------------------------
                                                                                                                                                                                                                                                                                      
Corporate expenses and other income:
   Administrative expenses                                                                                 38,260                                                                         12,818                                                                                            198 %
   Merger and other acquisition expenses                                                                    2,793                                                                          1,700                                                                                             64 %
   Depreciation and amortization                                                                            4,399                                                                            770                                                                                            471 %
   Interest expense                                                                                         6,461                                                                          4,405                                                                                             47 %
   Interest income                                                                                           (115 )                                                                         (423 )                                                                                          (73 )%
   Net gain on sale of common stock of Enova                                                               (1,552 )                                                               --                                                              -- %
                                                                                                       -------------------------------                                           ------------------------------------
      Total corporate expenses and other income                                                            50,246                                                      19,270                                                                         161 %
                                                                                                       -------------------------------                                           ------------------------------------
                                                                                                                                                                                                                                                                                      
Income before income taxes                                                                                 56,117                                                                         27,627                                                                                            103 %
                                                                                                                                                                                                                                                                                      
   Provision for income taxes                                                                              19,425                                                       8,217                                                                         136 %
                                                                                                       -------------------------------                                           ------------------------------------
                                                                                                                                                                                                                                                                                      
Net income                                                                                               $ 36,692                                                   $  19,410                                                                          89 %
                                                                                                       === ====== ====================                                           ======= ======= ====================
                                                                                                                                                                                                                                                                                                 

FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)

Operating Results for the Twelve Months Ended December 31, 2016 Compared to the Twelve Months Ended December 31, 2015

The following table presents segment pre-tax operating income of the U.S. operations segment for the twelve months ended December 31, 2016 as compared to the twelve months ended December 31, 2015 (in thousands):

                                                                                                                                                                         
                                                                                                                                           Twelve Months Ended
                                                                                                                                              December 31,                                                                                                          Increase /
                                                                                              ------------------------------------------------------------------------------------------------------------
U.S. Operations Segment                                                                                     2016                                 2015                                                                         (Decrease)
                                                                                              ------------------------------                                             ------------------------------                                             ---------------------------------------
Revenue:
   Retail merchandise sales                                                                     $ 386,026                                                                  $ 197,011                                                                                             96 %
   Pawn loan fees                                                                                 195,883                                                                     94,761                                                                                            107 %
   Consumer loan and credit services fees                                                          41,922                                                                     25,696                                                                                             63 %
   Wholesale scrap jewelry sales                                                                   47,680                                                  19,380                                                                         146 %
                                                                                              --------------------------------                                           --------------------------------
      Total revenue                                                                               671,511                                                 336,848                                                                          99 %
                                                                                              --------------------------------                                           --------------------------------
                                                                                                                                                                                                                                                                          
Cost of revenue:
   Cost of retail merchandise sold                                                                241,086                                                                    117,059                                                                                            106 %
   Consumer loan and credit services loss provision                                                11,494                                                                      6,770                                                                                             70 %
   Cost of wholesale scrap jewelry sold                                                            41,357                                                  17,530                                                                         136 %
                                                                                              --------------------------------                                           --------------------------------
      Total cost of revenue                                                                       293,937                                                 141,359                                                                         108 %
                                                                                              --------------------------------                                           --------------------------------
                                                                                                                                                                                                                                                                          
Net revenue                                                                                       377,574                                                 195,489                                                                          93 %
                                                                                              --------------------------------                                           --------------------------------
                                                                                                                                                                                                                                                                          
Segment expenses:
   Store operating expenses                                                                       215,227                                                                    107,852                                                                                            100 %
   Depreciation and amortization                                                                   13,618                                                   6,146                                                                         122 %
                                                                                              --------------------------------                                           --------------------------------
      Total segment expenses                                                                      228,845                                                 113,998                                                                         101 %
                                                                                              --------------------------------                                           --------------------------------
                                                                                                                                                                                                                                                                          
Segment pre-tax operating income                                                                $ 148,729                                               $  81,491                                                                          83 %
                                                                                              === ======= ====================                                           === ======= ====================
                                                                                                                                                                                                                                                     

FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)

The following table presents segment pre-tax operating income of the Latin America operations segment for the twelve months ended December 31, 2016 as compared to the twelve months ended December 31, 2015 (in thousands). Constant currency results are non-GAAP measures which 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.

                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                      Constant Currency Basis
                                                                                                                                                                                                                                                                                                                                                                 -------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                            Twelve Months             
                                                                                                                                              Twelve Months                                                                                                                                                                                                                     Ended
                                                                                                                                                  Ended                                                                                                                                                                                                                     December 31,                                                          Increase /
                                                                                                                                              December 31,                                                                                                                      Increase /                                                                                      2016                                                              (Decrease)
                                                                                              ------------------------------------------------------------------------------------------------------------
                                                                                                            2016                                                                       2015                                                                                     (Decrease)                                                                                   (Non-GAAP)                                                           (Non-GAAP)
                                                                                              ------------------------------                                             ------------------------------                                             --------------------------------------------------------------                                               -------------------------------                                             -------------------
Latin America Operations Segment
Revenue:
   Retail merchandise sales                                                                     $ 283,105                                                                  $ 252,285                                                                                                                             12 %                                               $ 331,325                                                                        31 %
   Pawn loan fees                                                                                 116,874                                                                    100,687                                                                                                                             16 %                                                 136,259                                                                        35 %
   Consumer loan and credit services fees                                                           1,929                                                                      2,107                                                                                                                             (8 )%                                                  2,271                                                                         8 %
   Wholesale scrap jewelry sales                                                                   14,958                                                  12,675                                                                                                          18 %                                                  14,958                                                     18 %
                                                                                              --------------------------------                                           --------------------------------                                                                                                                                                        ---------------------------------
      Total revenue                                                                               416,866                                                 367,754                                                                                                          13 %                                                 484,813                                                     32 %
                                                                                              ----------  --------------------                                           ----------  --------------------                                                                                                                                                        -----------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Cost of revenue:
   Cost of retail merchandise sold                                                                177,470                                                                    161,572                                                                                                                             10 %                                                 207,615                                                                        28 %
   Consumer loan and credit services loss provision                                                   499                                                                        389                                                                                                                             28 %                                                     587                                                                        51 %
   Cost of wholesale scrap jewelry sold                                                            11,668                                                  10,098                                                                                                          16 %                                                  13,505                                                     34 %
                                                                                              --------------------------------                                           --------------------------------                                                                                                                                                        ---------------------------------
      Total cost of revenue                                                                       189,637                                                 172,059                                                                                                          10 %                                                 221,707                                                     29 %
                                                                                              --------------------------------                                           --------------------------------                                                                                                                                                        ---------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Net revenue                                                                                       227,229                                                 195,695                                                                                                          16 %                                                 263,106                                                     34 %
                                                                                              --------------------------------                                           --------------------------------                                                                                                                                                        ---------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Segment expenses:
   Store operating expenses                                                                       112,787                                                                     99,720                                                                                                                             13 %                                                 130,029                                                                        30 %
   Depreciation and amortization                                                                   10,429                                                   8,803                                                                                                          18 %                                                  12,064                                                     37 %
                                                                                              ----------  --------------------                                           ----------  --------------------                                                                                                                                                        -----------  --------------------
      Total segment expenses                                                                      123,216                                                 108,523                                                                                                          14 %                                                 142,093                                                     31 %
                                                                                              ----------  --------------------                                           ----------  --------------------                                                                                                                                                        -----------  --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                              
Segment pre-tax operating income                                                                $ 104,013                                               $  87,172                                                                                                          19 %                                               $ 121,013                                                     39 %
                                                                                              === ======= ====================                                           === ======= ====================                                                                                                                                                        ==== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                              

FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)

The following table reconciles pre-tax operating income of the Company’s U.S. operations segment and Latin America operations segment discussed above to consolidated net income for the twelve months ended December 31, 2016 as compared to the twelve months ended December 31, 2015 (in thousands):

                                                                                                                                                                                        
                                                                                                                                   Twelve Months Ended
                                                                                                                                      December 31,                                                                                                                   Increase /
                                                                                  --------------------------------------------------------------------------------------------------------------------
                                                                                                  2016                                     2015                                                                                (Decrease)
                                                                                  ----------------------------------                                             ----------------------------------                                             --------------------------------------------------
Other Items
   U.S. operations segment pre-tax operating income                                     $ 148,729                                                                      $  81,491                                                                                             83 %
   Latin America operations segment pre-tax operating income                              104,013                                                      87,172                                                                          19 %
                                                                                  ------------------------------------                                           ------------------------------------
      Consolidated segment pre-tax operating income                                       252,742                                                     168,663                                                                          50 %
                                                                                  ------------------------------------                                           ------------------------------------
                                                                                                                                                                                                                                                                      
Corporate expenses and other income:
   Administrative expenses                                                                 96,537                                                                         51,883                                                                                             86 %
   Merger and other acquisition expenses                                                   36,670                                                                          2,875                                                                                          1,175 %
   Depreciation and amortization                                                            7,818                                                                          2,990                                                                                            161 %
   Goodwill impairment - U.S. consumer loan operations                             --                                                                          7,913                                                                                           (100 )%
   Interest expense                                                                        20,320                                                                         16,887                                                                                             20 %
   Interest income                                                                           (751 )                                                                       (1,566 )                                                                                          (52 )%
   Net gain on sale of common stock of Enova                                               (1,299 )                                                               --                                                              -- %
                                                                                  ------------------------------------                                           ------------------------------------
      Total corporate expenses and other income                                           159,295                                                      80,982                                                                          97 %
                                                                                  ------------------------------------                                           ------------------------------------
                                                                                                                                                                                                                                                                      
Income before income taxes                                                                 93,447                                                                         87,681                                                                                              7 %
                                                                                                                                                                                                                                                                      
   Provision for income taxes                                                              33,320                                                      26,971                                                                          24 %
                                                                                  ------------------------------------                                           ------------------------------------
                                                                                                                                                                                                                                                                      
Net income                                                                              $  60,127                                                   $  60,710                                                                          (1 )%
                                                                                  ======= ======= ====================                                           ======= ======= ====================
                                                                                                                                                                                                                                                                                 

FIRSTCASH, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)

Pawn and Consumer Lending Earning Assets at December 31, 2016 Compared to December 31, 2015

The following table details pawn loans, inventories and other consumer loans held by the Company and active credit service organization ("CSO") credit extensions from independent third-party lenders for each reportable segment as of December 31, 2016 as compared to December 31, 2015 (in thousands). Constant currency results are non-GAAP measures which 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.

                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                               Constant Currency Basis
                                                                                                                                                                                                                                                                                                                                                                         --------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                     Balance at                 
                                                                                                                                                                                                                                                                                                                                                                                    December 31,                                                           Increase /
                                                                                                                                                                         Balance at December 31,                                                                                                    Increase /                                                                          2016                                                               (Decrease)
                                                                                                                              ------------------------------------------------------------------------------------------------------------
                                                                                                                                            2016                                                                       2015                                                                         (Decrease)                                                                       (Non-GAAP)                                                            (Non-GAAP)
                                                                                                                              ------------------------------                                             ------------------------------                                             ----------------------------------------                                             -------------------------------                                             --------------------
                     U.S. operations segment:
                        Pawn loans                                                                                              $ 293,392                                                                  $  68,153                                                                                                      330%                                              $ 293,392                                                                                 330%
                        CSO credit extensions held by independent third-party (1)                                                  12,098                                                                      7,005                                                                                                       73%                                                 12,098                                                                                  73%
                        Other consumer loans                                                                                       28,847                                                     688                                                                                 4,093%                                                 28,847                                                            4,093%
                                                                                                                              --------------------------------                                           --------------------------------                                                                                                                                ---------------------------------
                           Combined customer loans (2)                                                                            334,337                                                  75,846                                                                                   341%                                                334,337                                                              341%
                                                                                                                              --------------------------------                                           --------------------------------                                                                                                                                ---------------------------------
                     Latin America operations segment:
                        Pawn loans                                                                                                 57,114                                                                     49,448                                                                                                       16%                                                 67,745                                                                                  37%
                        Other consumer loans                                                                                          357                                                     430                                                                                  (17)%                                                    429                                                   --%
                                                                                                                              --------------------------------                                           --------------------------------                                                                                                                                ---------------------------------
                           Combined customer loans                                                                                 57,471                                                  49,878                                                                                    15%                                                 68,174                                                               37%
                                                                                                                              --------------------------------                                           --------------------------------                                                                                                                                ---------------------------------
                     Total (2):
                        Pawn loans                                                                                                350,506                                                                    117,601                                                                                                      198%                                                361,137                                                                                 207%
                        CSO credit extensions held by independent third-parties (1)                                                12,098                                                                      7,005                                                                                                       73%                                                 12,098                                                                                  73%
                        Other consumer loans                                                                                       29,204                                                   1,118                                                                                 2,512%                                                 29,276                                                            2,519%
                                                                                                                              --------------------------------                                           --------------------------------                                                                                                                                ---------------------------------
                           Combined customer loans (2)                                                                          $ 391,808                                               $ 125,724                                                                                   212%                                              $ 402,511                                                              220%
                                                                                                                              === ======= ====================                                           === ======= ====================                                                                                                                                ==== ======= ====================
                     Pawn inventories:
                        U.S. operations segment                                                                                 $ 282,860                                                                  $  56,040                                                                                                      405%                                              $ 282,860                                                                                 405%
                        Latin America operations segment                                                                           47,823                                                  37,418                                                                                    28%                                                 56,908                                                               52%
                                                                                                                              --------------------------------                                           --------------------------------                                                                                                                                ---------------------------------
        Combined inventories                                                                                 $ 330,683                                               $  93,458                                                                                   254%                                              $ 339,768                                                              264%
                                                                                                                              === ======= ====================                                           === ======= ====================                                                                                                                                ==== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
(1)     CSO amounts outstanding are composed of the principal portion of
                                              active CSO extensions of credit by independent third-party
                                              lenders, 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 extensions of credit.
                                               
(2)                                           Combined customer loans is a non-GAAP measure as it includes CSO
                                              credit extensions held by independent third-parties not included
                                              on the Company’s balance sheet. The Company believes this non-GAAP
                                              measure provides investors with important information needed to
                                              evaluate the magnitude of potential loan losses and the
                                              opportunity for revenue performance of the consumer loan portfolio
                                              on an aggregate basis. The Company also believes the comparison of
                                              the aggregate amounts from period to period is more meaningful
                                              than comparing only the amounts reflected on the Company’s balance
                                              sheet since both credit services fees revenue and the
                                              corresponding loss provision are impacted by the aggregate amount
                                              of loans owned by the Company and those guaranteed by the Company
                                              as reflected in its financial statements.
                                               

FIRSTCASH, INC. STORE COUNT ACTIVITY

The following table details store count activity for the twelve months ended December 31, 2016:

                                                                                                                   
                                                                                              Pawn                                                                    Consumer                                                                      Total
                                                                                          Locations (1)                                                                 Loan                                                                      Locations
                                                                                                                                                                    Locations (2)
                                                                                  --------------------------                                            ----------------------------------                                            ------------------------------
U.S. operations segment:
   Total locations, beginning of period                                              296                                                                            42                                                                       338
      Merged Cash America locations                                                  794                                                                            21                                                                       815
      Locations acquired                                                               3                                                                --                                                                         3
      Locations closed or consolidated                                                (8 )                                                                         (18 )                                                                     (26 )
                                                                                  ------ --------------------                                           -------------- --------------------                                           ---------- --------------------
         Total locations, end of period                                            1,085                                                         45                                                  1,130  
                                                                                  ====== ====================                                           ============== ====================                                           ========== ====================
                                                                                                                                                                                                                                       
Latin America operations segment:
   Total locations, beginning of period                                              709                                                                            28                                                                       737
      New locations opened                                                            41                                                                --                                                                        41
      Locations acquired                                                             179                                                                --                                                                       179
      Locations closed or consolidated                                                (2 )                                                              --                                                     (2 )
                                                                                  ------ --------------------                                           -------------- --------------------                                           ---------- --------------------
         Total locations, end of period                                              927                                                         28                                                    955  
                                                                                  ====== ====================                                           ============== ====================                                           ========== ====================
                                                                                                                                                                                                                                       
Total:
   Total locations, beginning of period                                            1,005                                                                            70                                                                     1,075
      Merged Cash America locations                                                  794                                                                            21                                                                       815
      New locations opened                                                            41                                                                --                                                                        41
      Locations acquired                                                             182                                                                --                                                                       182
      Locations closed or consolidated                                               (10 )                                                                         (18 )                                                                     (28 )
                                                                                  ------ --------------------                                           -------------- --------------------                                           ---------- --------------------
         Total locations, end of period                                            2,012                                                         73                                                  2,085  
                                                                                  ====== ====================                                           ============== ====================                                           ========== ====================
                                                                                                                                                                                                                                                  
(1)   At December 31, 2016, 326 of the U.S. pawn stores, which are
                         primarily located in Texas and Ohio, also offered consumer loans
                         or credit services products, while 49 Mexico pawn stores offer
                         consumer loan products.
                          
(2)                      The Company’s U.S. free-standing consumer loan locations offer
                         consumer loans and/or credit services products and are located in
                         Ohio, Texas, California and limited markets in Mexico. The table
                         does not include 70 check cashing locations operated by
                         independent franchisees under franchising agreements with the
                         Company.
                          

FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (UNAUDITED)

The Company uses certain financial calculations such as adjusted net income, adjusted net income per share, adjusted EBITDA and constant currency results (as defined or explained below) as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles ("GAAP"), primarily by excluding from a comparable GAAP measure certain items that the Company does not consider to be representative of its actual operating performance. These financial calculations are "non-GAAP financial measures" as defined in Securities and Exchange Commission ("SEC") rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s operating performance and because management believes they provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating adjusted net income, adjusted net income per share, adjusted EBITDA and constant currency results are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP and are thus susceptible to varying calculations, adjusted net income, adjusted net income per share, adjusted EBITDA and constant currency results as presented may not be comparable to other similarly titled measures of other companies.

The Company expects to incur significant expenses over the next two years in connection with its merger and integration with Cash America. The Company has adjusted the applicable financial measures to exclude these items because it generally would not incur such costs and expenses as part of its continuing operations. The merger related expenses are predominantly incremental costs directly associated with the merger and integration of Cash America, including professional fees, legal expenses, severance and retention payments, accelerated vesting of certain equity compensation awards, contract breakage costs and costs related to consolidation of technology systems and corporate facilities.

Adjusted Net Income and Adjusted Net Income Per Share

Management believes the presentation of adjusted net income and adjusted net income per share ("Adjusted Income Measures") provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)

The following tables provide a reconciliation between the net income and diluted earnings per share calculated in accordance with GAAP to the Adjusted Income Measures, which are shown net of tax (in thousands, except per share data):

                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                       Three Months Ended December 31,                                                                                                                                                                                                                                                                                        Twelve Months Ended December 31,
                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                     2016                                                                                                                    2015                                                                                                                                                          2016                                                                                                                2015
                                                                                                             --------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------
                                                                                                                              In                                       Per                                                                            In                                       Per                                                                            In                                       Per                                                                            In                                   Per
                                                                                                                           Thousands                                                                        Share                                                                        Thousands                                                                        Share                                                                        Thousands                                                                        Share                                                                        Thousands                                                                    Share
                                                                                                             ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             ---------------------------
Net income, as reported                                                                                            $  36,692                                                                      $    0.76                                                                      $  19,410                                                                      $    0.69                                                                      $  60,127                                                                      $    1.72                                                                      $  60,710                                                                      $                 2.14
Adjustments, net of tax:
   Merger related expenses:
     Transaction                                                                                                         667                                                                           0.01                                                                 --                                                                 --                                                                         14,399                                                                           0.41                                                                 --                                                                              --
     Severance and retention                                                                                             857                                                                           0.02                                                                 --                                                                 --                                                                          9,594                                                                           0.27                                                                 --                                                                              --
     Other                                                                                                    --                                              --                                              --                                              --                                                       1,726                                                        0.05                                              --                                                           --
                                                                                                             ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -----------------------------
   Total merger related expenses                                                                                       1,524                                                                           0.03                                                                 --                                                                 --                                                                         25,719                                                                           0.73                                                                 --                                                                              --
   Other acquisition expenses                                                                                            210                                                                 --                                                                          1,190                                                                           0.04                                                                            304                                                                           0.01                                                                          1,989                                                                                        0.07
   Restructuring expenses related to U.S. consumer loan operations                                            --                                                                 --                                                                 --                                                                 --                                                                 --                                                                 --                                                                          5,784                                                                                        0.21
   Net gain on sale of common stock of Enova                                                                            (978 )                                                                        (0.02 )                                                               --                                              --                                                        (818 )                                                                        (0.02 )                                                               --                                                           --
                                                                                                             ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -----------------------------
Adjusted net income                                                                                                $  37,448                                                   $    0.77                                                   $  20,600                                                   $    0.73                                                   $  85,332                                                   $    2.44                                                   $  68,483                                                   $                 2.42
                                                                                                             ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)

The following table provides a reconciliation of the gross amounts, the impact of income taxes and the net amounts for each of the adjustments included in the table above (in thousands):

                                                                   
                                                                                                                                                                                                                                                                                                                      Three Months Ended December 31,
                                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                         2016                                                                                                                                                                                                      2015
                                                                                                          ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Pre-tax                                    Tax                                   After-tax                                                                           Pre-tax                                           Tax                                  After-tax
                                                                                                          ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             ---------------------------
Merger related expenses (1)                                                                                     $   2,493                                                                      $     969                                                                      $   1,524                                                                      $ --                                                                      $ --                                                                      $       --
Other acquisition expenses                                                                                            300                                                                             90                                                                            210                                                                                 1,700                                                                                   510                                                                                       1,190
Net gain on sale of common stock of Enova                                                                          (1,552 )                                                                         (574 )                                                                         (978 )                                                                      --                                                     --                                                           --
                                                                                                          ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -----------------------------
   Total adjustments                                                                                            $   1,241                                                   $     485                                                   $     756                                                   $          1,700                                                   $            510                                                   $                1,190
                                                                                                          ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ======= ====================
                                                                                                           
   (1) Resulting tax benefit is less than the statutory
   rate as a portion of the transaction costs are not deductible for
   tax purposes.
                                                                                                           
                                                                                                                                                                                                                                                                                                                     Twelve Months Ended December 31,
                                                                                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                         2016                                                                                                                                                                                                                                            2015
                                                                                                          ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Pre-tax                                                                          Tax                                                                         After-tax                                                                           Pre-tax                                                                                 Tax                                                                        After-tax
                                                                                                          ----------------------------------                                             ----------------------------------                                             ----------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             ---------------------------
Merger related expenses (1)                                                                                     $  36,220                                                                      $  10,501                                                                      $  25,719                                                                      $ --                                                                      $ --                                                                      $       --
Other acquisition expenses                                                                                            450                                                                            146                                                                            304                                                                                 2,875                                                                                   886                                                                                       1,989
Restructuring expenses related to U.S. consumer loan operations                                            --                                                                 --                                                                 --                                                                                 8,878                                                                                 3,094                                                                                       5,784
Net gain on sale of common stock of Enova                                                                          (1,299 )                                                                         (481 )                                                                         (818 )                                                                      --                                                     --                                                           --
                                                                                                          ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -----------------------------
   Total adjustments                                                                                            $  35,371                                                   $  10,166                                                   $  25,205                                                   $         11,753                                                   $          3,980                                                   $                7,773
                                                                                                          ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
   (1) Resulting tax benefit is less than the statutory
   rate as a portion of the transaction costs are not deductible for
   tax purposes.
 

FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization

The Company defines adjusted EBITDA as net income before income taxes, depreciation and amortization, interest expense, interest income and 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 adjusted EBITDA is commonly used by investors to assess a company’s financial performance. However, adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for net income or other statement of income data prepared in accordance with GAAP. The following table provides a reconciliation of net income to adjusted EBITDA (in thousands):

                                                                                                                   Three Months Ended                                                                                Twelve Months Ended
                                                                                                                                                            December 31,                                                                                                         December 31,
                                                                                                                   -----------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------
                                                                                                                                   2016                                   2015                                                       2016                                    2015
                                                                                                                   ----------------------------------                        ----------------------------------                        ------------------------------------                        ----------------------------------
                         Net income                                                                                      $  36,692                                                 $  19,410                                                 $    60,127                                                 $  60,710
                            Income taxes                                                                                    19,425                                                     8,217                                                      33,320                                                    26,971
                            Depreciation and amortization (1)                                                               14,700                                                     4,288                                                      31,865                                                    17,446
                            Interest expense                                                                                 6,461                                                     4,405                                                      20,320                                                    16,887
                            Interest income                                                                                   (115 )                                                    (423 )                                                      (751 )                                                  (1,566 )
                                                                                                                   ------------------------------------                      ------------------------------------                      --------------------------------------                      ------------------------------------
                         EBITDA                                                                                             77,163                                                    35,897                                                     144,881                                                   120,448
                            Adjustments:
                              Merger related expenses                                                                        2,493                                            --                                                      36,220                                            --
                              Other acquisition expenses                                                                       300                                                     1,700                                                         450                                                     2,875
                              Restructuring expenses related to U.S. consumer loan operations                       --                                            --                                              --                                                     8,878
                            Gain on sale of equity securities                                                               (1,552 )                                          --                                   (1,299 )                                          --  
                                                                                                                   ------------------------------------                      ------------------------------------                      --------------------------------------                      ------------------------------------
                         Adjusted EBITDA                                                                                 $  78,404                              $  37,597                              $   180,252                              $ 132,201  
                                                                                                                   ======= ======= ====================                      ======= ======= ====================                      ======= ========= ====================                      ======= ======= ====================
                                                                                                                                                                                                                                                                                                    
                         Adjusted EBITDA margin calculated as follows:
                            Total revenue                                                                                $ 462,042                                                 $ 191,424                                                 $ 1,088,377                                                 $ 704,602
                            Adjusted EBITDA                                                                              $  78,404                              $  37,597                              $   180,252                              $ 132,201  
                                                                                                                           ------- --------------------                              ------- --------------------                      ------- --------- --------------------                      ------- ------- --------------------
                         Adjusted EBITDA as a percentage of revenue                                                             17                    %                                   20                    %                                     17                    %                                   19                    %
                                                                                                                   ====================================                      ====================================                      ======================================                      ====================================
                                                                                                                                                                                                                                                                                                                    
(1)                      For the twelve months ended December 31, 2015, excludes $493 of
                         depreciation and amortization, which is included in the
                         restructuring expenses related to U.S. consumer loan operations.
                          

FIRSTCASH, INC. RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES (CONTINUED) (UNAUDITED)

Constant Currency

The Company’s reporting currency is the U.S. dollar. However, certain performance metrics discussed in this release are presented on a "constant currency" basis, which may be considered a non-GAAP measurement of financial performance. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are primarily transacted in local currencies. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies 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. Business operations in Mexico and Guatemala are transacted in Mexican pesos and Guatemalan quetzales, respectively. The Company also has operations in El Salvador where the reporting and functional currency is the U.S. dollar. In addition, see the tables detailing the components of revenue elsewhere in this release for additional reconciliation of revenues to constant currency revenues.

The following table provides exchange rates for the Mexican peso and Guatemalan quetzal for the current and prior year periods:

                                                                                December 31,                                     Increase /
                                                                                          --------------------------------------------------------------------
                                                                                          2016             2015                                                        (Decrease)
                                                                                          ----                                           --------------------                                           --------------------
Mexican peso / U.S. dollar exchange rate:                                                                                                 
   End-of-period                                                                          20.7                                                           17.2                                                          (20)%
   Three months ended                                                                     19.8                                                           16.7                                                          (19)%
   Twelve months ended                                                                    18.7                                                           15.8                                                          (18)%
                                                                                                                                                                                                         
Guatemalan quetzal / U.S. dollar exchange rate:
   End-of-period                                                                           7.5                                                            7.6                                                             1%
   Three months ended                                                                      7.5                                                            7.6                                                             1%
   Twelve months ended                                                                     7.6                                                            7.7                                                             1%
                                                                                                                                                                                                         

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170202005390r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170202005390/en/

SOURCE: FirstCash, Inc.

Global IR Group 
Gar Jackson, 949-873-2789 
gar@globalirgroup.com 
or 
FirstCash, Inc. 
Doug Orr, 817-258-2650 
Executive Vice President and Chief Financial Officer 
investorrelations@firstcash.com 
ir.firstcash.com


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