FirstCash Raises 2016 Earnings Guidance; Declares Increased Dividend

(RTTNews) - FirstCash Inc. (FCFS), the leading international operator of retail pawn stores in the U.S. and Latin America, announced the company expects fourth quarter adjusted earnings per share to be in the range of $0.74 to $0.81. The full year fiscal 2016 guidance for adjusted earnings per share, based on a lower expected full year weighted average share count of approximately 35.0 million shares, is $2.40 to $2.50.

The company expects to open at least five new stores in Latin America during the fourth quarter of fiscal 2016. This will bring expected Latin America additions in fiscal 2016 to a total of 221 stores.

The company announced its initial store addition targets for fiscal 2017. For 2017, it currently plans to open approximately 65 stores in Mexico and ten additional stores in Central and South America.

Third-quarter as-reported GAAP net income and earnings per share declined 113% and 110%, respectively, compared to the prior year primarily due to the merger related costs. Adjusted net income increased 21% over the prior year. Adjusted earnings per share decreased 2% over the prior year primarily due to expected short-term earnings dilution from the merger and in part to a 14% decline in the average value of the Mexican peso, which reduced year-over-year comparable earnings by approximately $0.05 per share for the quarter.

During the third quarter, the company added 815 U.S. locations from the merger with Cash America and opened six new locations in Latin America. The company closed seven consumer loan stores during the quarter as part of its strategic plan to further reduce payday lending exposure. The year-over-year store count has increased 36% in Latin America and 99% overall. Consolidated revenues for the third quarter of 2016 totaled $261 million, an increase of 54% compared to the third quarter of 2015.

The company announced that the Board declared a fourth quarter dividend of $0.19 per share, representing an annualized dividend of $0.76 per share and an increase of 52% over its previous dividend policy.