Market Overview

FirstCash Reports Second Quarter Earnings Results; Declares Quarterly Dividend and Raises 2017 Full Year Guidance

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FirstCash, Inc. (the "Company") (NYSE:FCFS), the leading international
operator of almost 2,100 retail pawn stores in the U.S. and Latin
America, today announced revenue, net income and earnings per share for
the three and six month periods ended June 30, 2017. In addition, the
Company raised its 2017 full year earnings guidance and declared a $0.19
per share quarterly dividend payable on August 31, 2017 to stockholders
of record as of August 15, 2017.

Mr. Rick Wessel, chief executive officer, stated, "We posted stronger
than expected second quarter results that continue to be driven by
exceptional revenue growth in Latin America, an improved U.S. operating
environment and further realization of merger synergies. Same-store
Latin America core pawn revenue, which is composed of pawn lending fees
and retail merchandise sales, increased 11%, or 14% on a constant
currency basis, compared to the prior year quarter while the legacy
First Cash U.S. business continued to improve with core same-store
revenues increasing 1% driven by a 5% increase in same-store pawn fees.

"During the quarter we also completed a $300 million bond offering that
enabled us to redeem and repurchase our previously issued $200 million
bonds and provides funding and greater flexibility for future dividends
and share buybacks. Concurrent with the bond offering, the Company
initiated a $100 million share repurchase authorization and already
repurchased approximately $16 million, or 290,000 shares, during the
second quarter," Mr. Wessel concluded.

Earnings Highlights

  • The Company reported the following consolidated results for the three
    and six months ended June 30, 2017. Adjusted measures exclude merger
    related expenses, the loss on extinguishment of debt as a result of
    the senior notes refinancing and other adjustments, which are further
    described and reconciled in the detailed reconciliation of non-GAAP
    financial measures provided elsewhere in this release (in thousands,
    except per share amounts):
   
Three Months Ended June 30,
2017     2016
As Reported     Adjusted As Reported     Adjusted
(GAAP) * (Non-GAAP) (GAAP) * (Non-GAAP)
Revenue $ 416,629 $ 416,629 $ 181,979 $ 181,979
Net income $ 15,239 $ 25,130 $ 11,673 $ 14,324
Diluted earnings per share $ 0.32 $ 0.52 $ 0.41 $ 0.51
EBITDA (non-GAAP measure) $ 41,349 $ 57,049 $ 26,295 $ 30,374
Weighted avg diluted shares     48,289       48,289       28,243       28,243
 

* Other than EBITDA, which is a non-GAAP financial measure. See the
detailed reconciliation of non-GAAP financial measures provided
elsewhere in this release.

   
Six Months Ended June 30,
2017     2016
As Reported     Adjusted As Reported     Adjusted
(GAAP) * (Non-GAAP) (GAAP) * (Non-GAAP)
Revenue $ 864,205 $ 864,205 $ 365,182 $ 365,182
Net income $ 47,884 $ 58,183 $ 24,847 $ 27,758
Diluted earnings per share $ 0.99 $ 1.20 $ 0.88 $ 0.98
EBITDA (non-GAAP measure) $ 113,620 $ 129,967 $ 55,079 $ 59,558
Weighted avg diluted shares     48,345       48,345       28,242       28,242
 

* Other than EBITDA, which is a non-GAAP financial measure. See the
detailed reconciliation of non-GAAP financial measures provided
elsewhere in this release.

  • As reported (GAAP) net income for the quarter and six months ended
    June 30, 2017 increased 31% and 93%, respectively, compared to the
    same prior-year periods. Reducing second quarter and year to date 2017
    GAAP net income was the tax-effected $9 million loss on extinguishment
    of debt related to the senior notes refinancing and $1 million of
    expenses related to the September 2016 merger with Cash America
    International, Inc. (the "Merger").
  • Adjusted net income increased 75% and 110% for the quarter and six
    months ended June 30, 2017, respectively, compared to the same
    prior-year periods. Adjusted net income excludes the loss on
    extinguishment of debt and merger costs.
  • GAAP earnings per share for the second quarter of 2017 decreased 22%
    as compared to the second quarter of 2016 due primarily to merger and
    debt extinguishment costs totaling approximately $0.20 per share. Even
    including these costs, GAAP earnings per share increased 13% for the
    six month year to date period as compared to the same prior-year
    period.
  • Adjusted earnings per share for the second quarter and year to date
    periods increased 2% and 22%, respectively, compared to the prior-year
    periods. Comparative GAAP and adjusted earnings for the quarter and
    year to date periods were negatively impacted by $0.01 and $0.04 per
    share due to the year-over-year decline in the value of the Mexican
    peso. The results were also impacted by the 71% increase in the
    quarter to date and year to date weighted average diluted share counts
    versus the comparable prior-year periods.
  • Adjusted EBITDA totaled $57 million for the current quarter and $130
    million for the six month year to date period, representing increases
    of 88% and 118%, respectively, compared to the prior-year periods. For
    the trailing twelve months ended June 30, 2017, adjusted EBITDA
    totaled $251 million, an increase of 93% compared to the same
    prior-year period. 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.

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 the
three-month period ended June 30, 2017 was 18.6 pesos / dollar and
decreased 3% versus the comparable prior-year period and for the
six-month period ended June 30, 2017 was 19.5 pesos / dollar declining
8% versus the prior-year period.

Revenue Highlights

  • Consolidated revenues for the second quarter of 2017 totaled $417
    million, an increase of 129% compared to the second quarter of 2016.
    For the six months ended June 30, 2017, revenues totaled $864 million,
    an increase of 137% compared to the prior-year period. On a constant
    currency basis, total revenues increased 131% for the quarter and 141%
    for the six month period compared to the prior-year period.
  • Pro forma consolidated revenues for the trailing twelve months ended
    June 30, 2017, which include pre-Merger Cash America revenues of $163
    million, totaled $1.8 billion.
  • Second quarter U.S. segment revenues totaled $299 million, an increase
    of 277% compared to the second quarter of 2016 due primarily to the
    impact of the Merger. U.S. same-store core pawn revenues in the legacy
    First Cash stores increased by 1% for the quarter. Same-store pawn fee
    revenues in the legacy First Cash stores increased 5%, consistent with
    growth in pawn receivables, while same-store retail sales were flat
    compared to the prior year. Same-store retail sales in the legacy Cash
    America stores improved significantly on a sequential basis to down 3%
    compared to a decline of 7% in the first quarter of 2017. While
    same-store pawn fee revenues in these stores declined 11%, the pawn
    yield improved meaningfully compared to the prior year.
  • Revenues in Latin America for the second quarter of 2017 increased 14%
    on a U.S. dollar translated basis and increased 17% on a constant
    currency basis as compared to the second quarter of 2016, driven by
    strong same-store sales results and the impact of 38 store additions
    over the past twelve months. Core Latin America same-store pawn
    revenues increased 11% on a U.S. dollar translated basis driven by a
    13% increase in retail sales and a 5% increase in pawn fees. On a
    constant currency basis, Latin America same-store core pawn revenues
    increased 14% with a 16% increase in retail sales and an 8% increase
    in pawn fees.

Pawn Operating Metrics

  • Consolidated retail merchandise sales margins were 36% during the
    second quarter of 2017 compared to the prior-year quarter margin of
    38%. Retail margins for the quarter were 37% in Latin America compared
    to 38% for the prior-year quarter. U.S. segment retail margins for the
    quarter were 35% compared to 38% for the prior-year quarter, which
    reflected the expected impact of the Merger.
  • Consolidated pawn loans outstanding totaled $353 million at June 30,
    2017, an increase of 162%, or 161% on a constant currency basis, from
    June 30, 2016 primarily due to the Merger and continued same-store
    growth in Latin America.
  • Pawn loans in Latin America totaled $80 million at June 30, 2017 and
    increased by 17% on a U.S. dollar basis and 13% on a constant currency
    basis from June 30, 2016. Same-store pawn loans in Latin America at
    quarter end increased 14% on a dollar-denominated basis and increased
    11% on a local currency basis compared to the prior-year.
  • U.S. segment pawn loans outstanding at June 30, 2017 totaled $274
    million, which included $205 million from the Cash America locations.
    Pawn loans in the legacy U.S. First Cash stores increased 3% on a
    same-store basis from June 30, 2016, marking the third sequential
    quarter of positive year-over-year comparisons, and was significantly
    better than the 4% decline at this point a year ago. Same-store pawn
    receivables at the Cash America stores decreased 13% from June 30,
    2016, which was consistent with the first quarter trend, primarily
    reflecting the expected impact of reducing the holding period on
    delinquent pawn loans and reducing loan values on general merchandise
    pawns. The decline in the Cash America pawn receivables was partially
    offset from a revenue perspective by an increase in the annualized
    yield on pawn receivables in the second quarter as compared to the
    prior year.
  • Total inventories at June 30, 2017 were $301 million, compared to $92
    million at June 30, 2016, which is a result of the additional 826
    stores primarily related to the Merger and further growth in Latin
    America. As of June 30, 2017, inventories aged greater than one year
    in the Latin America stores remain extremely low at 1% while they were
    12% in the U.S., the result of 14% aged inventories in the Cash
    America stores, partially offset by the 5% aged inventories in the
    legacy First Cash stores, which was an improvement over the 6% aged
    level a year ago.

Store Expansion Activity

  • During the second quarter of 2017, the Company added 15 stores in
    Mexico, which included ten new locations and five acquired locations.
    For the six months ended June 30, 2017, the Company added 28 pawn
    stores in Latin America and two pawn stores in the U.S.
  • A total of eight locations in the U.S. and Mexico were closed or
    consolidated during the quarter, most of which were small format pawn
    stores or stores focused on consumer lending.
  • As of June 30, 2017, FirstCash operated 2,097 stores, an increase of
    65% over the prior year, composed of 980 stores in Latin America and
    1,117 stores in the U.S. In addition, there were 64 check cashing
    locations operated by independent franchisees under franchising
    agreements with the Company at quarter end.

Liquidity

  • As previously announced, in May 2017 the Company completed an offering
    of $300 million of 5.375% senior unsecured notes due in 2024. The
    Company used the proceeds from the offering to repurchase, or
    otherwise redeem, all of its previously outstanding 6.75% senior notes
    totaling $200 million due 2021, make payments on the Company's credit
    facility, pay related fees and expenses associated with the notes
    offering and for other general corporate purposes. In addition to the
    lower interest rate and the extended term, the new notes provide
    greater flexibility for opportunistic acquisitions and increasing
    future potential shareholder payouts in the form of dividends and
    share repurchases.
  • As a result of the early redemption of the previously outstanding $200
    million senior notes during the second quarter, the Company incurred a
    loss on extinguishment of debt of approximately $14 million ($9
    million tax-effected) primarily related to the redemption and tender
    offer premiums paid. This loss is excluded from the Company's non-GAAP
    adjusted financial measures (see detailed reconciliation of non-GAAP
    financial measures provided elsewhere in this release).
  • In May 2017, the Company announced the extension of the term of its
    $400 million unsecured credit facility through September 2, 2022. The
    financial covenants in the facility were also amended to provide
    greater flexibility for making future share repurchases. At June 30,
    2017, the Company had $97 million drawn on the $400 million unsecured
    credit facility and had a $4 million outstanding letter of credit.
  • Total outstanding debt at June 30, 2017 was $397 million and the
    leverage ratio, defined as total debt to trailing twelve months
    adjusted EBITDA, was 1.6 to 1. The ratio of net debt, defined as total
    debt less cash and cash equivalents, to trailing twelve months
    adjusted EBITDA, as defined in the Company's senior notes covenants,
    was 1.2 to 1.
  • The Company generated $176 million in adjusted free cash flow during
    the twelve months ended June 30, 2017 compared to $53 million during
    the same prior-year period. The 231% year-over-year increase is due to
    the incremental operating cash flows from the Cash America stores and
    reflects the strength of the post-Merger combined company cash flows.
    Adjusted free cash flow is a non-GAAP measure and is calculated in the
    detailed reconciliation of non-GAAP financial measures provided
    elsewhere in this release.
  • As of June 30, 2017, the Company had $91 million in cash on its
    balance sheet and $299 million of availability for future borrowings
    under its long-term, unsecured credit facility.

Cash Dividend and Stock Repurchases

  • The Board of Directors declared a $0.19 per share third quarter cash
    dividend on common shares outstanding, which will be paid on August
    31, 2017 to stockholders of record as of August 15, 2017.
  • As previously announced, the Company's Board of Directors authorized a
    new share repurchase plan for up to $100 million of its common stock
    effective May 15, 2017. Under the new plan, the Company repurchased
    approximately 559,000 shares of its common stock consisting of
    approximately 290,000 shares at quarter end and an additional 269,000
    shares through July 26th at an aggregate cost of approximately $32
    million, or $57.09 per share. There is approximately $68 million
    available for future share repurchases under the current buyback
    authorization. The Company expects to continue repurchasing common
    stock in fiscal 2017 subject to expected liquidity, debt covenant
    restrictions and other relevant factors, and based on the current
    run-rate, anticipates completing the $100 million repurchase plan
    later this year or early in 2018.

Fiscal 2017 Outlook

  • Based upon second quarter results, the Company is increasing its
    fiscal full-year 2017 guidance for adjusted earnings per share, a
    non-GAAP measure that excludes merger related expenses and the loss on
    extinguishment of debt as a result of the senior notes refinancing, to
    be in the range of $2.60 to $2.70. This compares to its prior adjusted
    annual guidance given on April 27, 2017 of $2.50 to $2.65 per share.
  • The guidance for fiscal 2017 is presented on a non-GAAP basis, as it
    does not include the impact of merger and other acquisition expenses
    or the loss on extinguishment of debt. Given the difficulty in
    predicting the amount and timing of future merger and other
    acquisition expenses, the Company cannot reasonably provide a full
    reconciliation of adjusted guidance to GAAP guidance.
  • The Company's updated guidance includes the following estimates:
    • 2017 adjusted net income, a non-GAAP measure that excludes merger
      related expenses and the loss on extinguishment of debt, is
      projected to be in the range of approximately $124 million to $129
      million versus 2016 adjusted net income of $85 million.
    • The 2017 earnings guidance range implies adjusted EBITDA, also a
      non-GAAP measure, to be in the range of approximately $271 million
      to $278 million for fiscal 2017. This compares to adjusted EBITDA
      of $180 million in fiscal 2016 and $132 million in fiscal 2015.
  • These estimates of expected adjusted earnings per share, adjusted net
    income and adjusted EBITDA include the following assumptions:
    • An estimated second half exchange rate of 19.0 Mexican pesos /
      U.S. dollar, which implies a full year 2017 average rate of 19.2
      Mexican pesos / U.S. dollar, and compares to an average rate of
      19.5 to 1 in the first half of 2017. The expected impact of the
      currency improvement will primarily benefit the fourth quarter,
      given its greater volume of seasonal revenues.
    • The ongoing conversion of all the Cash America stores to the
      FirstPawn IT platform and the implementation of new operating
      protocols during 2017 will continue to have a negative impact on
      domestic pawn receivables for much of the year.
    • The Company will discontinue its small online consumer lending
      operation during the third quarter. This action, combined with
      consumer lending store closures, are anticipated to contribute to
      an 11% decline in 2017 consumer lending revenues compared to
      merged pro forma revenues in 2016.
    • An expected full year effective income tax rate for fiscal 2017 of
      approximately 35% to 36%, which compares to the first half of 2017
      effective rate of 35% and the 2016 effective rate of 34% (adjusted
      for merger costs). The increase in the year-over-year tax rate is
      a result of the full year of incremental earnings from Cash
      America being taxed at approximately 37%.
    • The Company currently plans to open or acquire approximately 65 to
      85 stores in 2017. Approximately 50 to 65 stores will be de novo
      openings with the remaining additions contingent on opportunistic
      acquisitions. The Company recently signed its first store lease in
      Colombia and expects to have stores open in late 2017 or early
      2018.

Additional Commentary and Analysis

Mr. Wessel further commented on the Company's second quarter results,
"We are excited about the continued strength of the business as evident
in many of our key performance measures. Pawn demand remains exceptional
in Latin America, which now includes the same-store results from our
successfully integrated Maxi Prenda acquisition. The momentum continues
as demonstrated by another quarter of double-digit loan growth in this
important market where we now have almost 1,000 stores. The legacy First
Cash U.S. business recorded another robust quarter of loan growth and we
see significant opportunities ahead as we continue to integrate the Cash
America stores.

"Our solid retail results were again led by Latin America, which grew
same-store sales an impressive 16% on a constant currency basis, driven
in part by strong results in the Maxi Prenda stores. Legacy First Cash
U.S. same-store retail sales were flat over the prior year, which is a
respectable result considering the tax refund season with smaller
average refunds and the current headwinds seen by other traditional
retailers in the U.S. We believe that our deep-value, treasure hunt
retail format and the fact that many of our customers lack credit cards
or bank accounts required to facilitate online transactions continue to
make our retail model attractive and less impacted by online retailers.
For cash constrained customers, our interest free layaway program, which
typically is not offered by online retailers, is also an attractive
option for their retail purchases.

"The integration with Cash America is progressing on schedule and we
have converted approximately two-thirds of the stores onto our FirstPawn
IT platform, and we are on track to complete the conversion schedule by
year-end. We also remain on target to meet or exceed cost synergy
targets and are focused on realizing additional store level expense
reductions. While the Cash America stores saw a decline in pawn loans
outstanding versus the prior year, most of this decline was expected. We
are starting to see early signs that lending trends have begun to
stabilize. As a whole, the Cash America markets converted to the
FirstPawn system through March of 2017 saw smaller declines in
year-over-year pawn loan balances at quarter end than those markets yet
to be converted and, as expected, are now reporting increases in their
annualized pawn yield when compared to the prior year. We continue to
believe that after the integration is complete we should see long-term
improvements in margins and lending yields in the Cash America stores.

"During the quarter, the Company completed a $300 million bond offering
that enabled us to redeem the previously outstanding $200 million senior
notes. These new seven-year unsecured notes have a 5.375% interest rate
versus the rate on the redeemed notes of 6.75%. Additionally, we
extended the term of the $400 million unsecured credit facility to a
full five years. Given the limited amount of current leverage and the
less restrictive shareholder payout covenants under the new bonds and
amended credit facility, we now have much greater flexibility for paying
dividends and making more significant stock repurchases.

"With the significant growth of FirstCash's operations in both the U.S.
and Latin America over the past few years, we are generating record
levels of cash earnings and free cash flow. For the trailing twelve
months ended June 30, 2017, our adjusted EBITDA of $251 million has
almost doubled over the comparative prior-year period, while adjusted
free cash flow stands at $176 million and has more than tripled over the
same period. Strong balance sheet and free cash flow metrics continue to
increase and provide significant resources for both further store growth
and shareholder returns in the form of dividends and stock buybacks,"
Mr. Wessel concluded.

Forward-Looking Information

This release contains forward-looking statements about the business,
financial condition and prospects of FirstCash, Inc. and its wholly
owned subsidiaries (together, the "Company"). Forward-looking
statements, as that term is defined in the Private Securities Litigation
Reform Act of 1995, can be identified by the use of forward-looking
terminology such as "believes," "projects," "expects," "may,"
"estimates," "should," "plans," "targets," "intends," "could," "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 2016 annual
report on Form 10-K filed with the Securities and Exchange Commission
(the "SEC") on March 1, 2017, 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 May 4, 2017, 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
Quarterly Report on Form 10-Q. 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

FirstCash is the leading international operator of pawn stores with
almost 2,100 retail pawn and consumer lending locations in 26 U.S.
states and Latin America, which includes all the states in Mexico and
the countries of Guatemala and El Salvador. The Company employs more
than 16,000 people between the U.S. and Latin America. FirstCash focuses
on serving cash and credit constrained consumers primarily 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 95% of the
Company's revenues are from pawn operations.

FirstCash is a component company in both the Standard & Poor's
SmallCap 600 Index®
and the Russell 2000 Index®. 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, in thousands, except per share amounts)

       
Three Months Ended Six Months Ended
June 30, June 30,
2017     2016 2017     2016
Revenue:
Retail merchandise sales $ 243,822 $ 115,543 $ 503,816 $ 234,319
Pawn loan fees 122,632 51,878 250,883 103,311
Consumer loan and credit services fees 18,529 4,916 39,749 10,602
Wholesale scrap jewelry sales 31,646   9,642   69,757   16,950  
Total revenue 416,629   181,979   864,205   365,182  
 
Cost of revenue:
Cost of retail merchandise sold 156,473 71,345 322,108 145,767
Consumer loan and credit services loss provision 5,142 1,320 9,234 2,367
Cost of wholesale scrap jewelry sold 30,590   7,853   65,539   13,724  
Total cost of revenue 192,205   80,518   396,881   161,858  
 
Net revenue 224,424   101,461   467,324   203,324  
 
Expenses and other income:
Store operating expenses 137,070 54,578 273,814 109,989
Administrative expenses 30,305 16,509 63,543 33,777
Depreciation and amortization 14,689 4,947 28,932 9,884
Interest expense 5,585 4,326 11,698 8,786
Interest income (393 ) (224 ) (720 ) (498 )
Merger and other acquisition expenses 1,606 4,079 2,253 4,479
Loss on extinguishment of debt 14,094     14,094    
Total expenses and other income 202,956   84,215   393,614   166,417  
 
Income before income taxes 21,468 17,246 73,710 36,907
 
Provision for income taxes 6,229   5,573   25,826   12,060  
 
Net income $ 15,239   $ 11,673   $ 47,884   $ 24,847  
 
Net income per share:
Basic $ 0.32 $ 0.41 $ 0.99 $ 0.88
Diluted $ 0.32 $ 0.41 $ 0.99 $ 0.88
 
Weighted average shares outstanding:
Basic 48,261 28,243 48,324 28,242
Diluted 48,289 28,243 48,345 28,242
 
Dividends declared per common share $ 0.190

$

0.125

$

0.380

$

0.250

 
 

FIRSTCASH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited,
in thousands)

       
June 30, December 31,
2017     2016 2016

ASSETS

Cash and cash equivalents $ 91,434 $ 46,274 $ 89,955
Fees and service charges receivable 42,810 18,259 41,013
Pawn loans 353,399 134,658 350,506
Consumer loans, net 24,192 1,060 29,204
Inventories 301,361 91,861 330,683
Income taxes receivable 23,866 3,938 25,510
Prepaid expenses and other current assets 19,667   3,843   25,264  
Total current assets 856,729 299,893 892,135
 
Property and equipment, net 237,282 123,895 236,057
Goodwill 838,111 312,488 831,151
Intangible assets, net 98,664 5,601 104,474
Other assets 61,145 4,007 71,679
Deferred tax assets 12,388   10,720   9,707  
Total assets $ 2,104,319   $ 756,604   $ 2,145,203  
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 85,684 $ 35,566 $ 109,354
Customer deposits 37,601 15,490 33,536
Income taxes payable 1,807   1,559   738  
Total current liabilities 125,092 52,615 143,628
 
Revolving unsecured credit facility 97,000 50,500 260,000
Senior unsecured notes 294,804 196,203 196,545
Deferred tax liabilities 74,298 23,800 61,275
Other liabilities 21,693     33,769  
Total liabilities 612,887   323,118   695,217  
 
Stockholders' equity:
Preferred stock
Common stock 493 403 493
Additional paid-in capital 1,218,822 203,414 1,217,969
Retained earnings 416,937 661,390 387,401
Accumulated other comprehensive loss (83,464 ) (95,113 ) (119,806 )
Common stock held in treasury, at cost (61,356 ) (336,608 ) (36,071 )
Total stockholders' equity 1,491,432   433,486   1,449,986  
Total liabilities and stockholders' equity $ 2,104,319   $ 756,604   $ 2,145,203  
 

Note: Given the timing and financial reporting complexity of
the Merger with Cash America, the presentation of the Cash America
assets acquired and liabilities assumed 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 June 30, 2016 have been
reclassified in order to conform to current year presentation.

 

FIRSTCASH, INC.
OPERATING INFORMATION
(UNAUDITED)

The Company's reportable segments are as follows:

  • U.S. operations - Includes all pawn and consumer loan operations in
    the U.S.
  • 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 and other costs incurred by the stores.

U.S. Operations Segment Results

The following table details earning assets, which consist of pawn loans,
consumer loans, net and inventories as well as other earning asset
metrics of the U.S. operations segment as of June 30, 2017 as compared
to June 30, 2016 (in thousands):

       
Balance at June 30, Increase /
2017     2016 (Decrease)
U.S. Operations Segment  
Earning assets:
Pawn loans $ 273,823 $ 66,457 312 %
Consumer loans, net (1) 23,801 653 3,545 %
Inventories   243,991     47,934   409 %
$ 541,615   $ 115,044   371 %
 
Average outstanding pawn loan amount (in ones) $ 148 $ 160 (8 )%
 
Composition of pawn collateral:
General merchandise 38 % 47 %
Jewelry 62 % 53 %
100 % 100 %
 
Composition of inventories:
General merchandise 44 % 60 %
Jewelry 56 % 40 %
100 % 100 %
 
Percentage of inventory aged greater than one year 12 % 6 %
 
(1)    

Does not include the off-balance sheet principal portion of
active CSO extensions of credit made by independent third-party
lenders. These amounts, net of the Company's estimated fair value
of its liability for guaranteeing the extensions of credit,
totaled $9,128 and $5,161 as of June 30, 2017 and 2016,
respectively.

 

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

The following table presents segment pre-tax operating income of the
U.S. operations segment for the three months ended June 30, 2017 as
compared to the three months ended June 30, 2016 (in thousands):

         
Three Months Ended
June 30,
2017     2016 Increase
U.S. Operations Segment
Revenue:
Retail merchandise sales $ 164,852 $ 47,065 250 %
Pawn loan fees 90,254 21,844 313 %
Consumer loan and credit services fees 18,085 4,419 309 %
Wholesale scrap jewelry sales 26,136   6,070   331 %
Total revenue 299,327   79,398   277 %
 
Cost of revenue:
Cost of retail merchandise sold 106,731 29,043 267 %
Consumer loan and credit services loss provision 5,057 1,198 322 %
Cost of wholesale scrap jewelry sold 25,400   5,097   398 %
Total cost of revenue 137,188   35,338   288 %
 
Net revenue 162,139   44,060   268 %
 
Segment expenses:
Store operating expenses 105,521 26,847 293 %
Depreciation and amortization 6,421   1,423   351 %
Total segment expenses 111,942   28,270   296 %
 
Segment pre-tax operating income $ 50,197   $ 15,790   218 %
 

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

The following table presents segment pre-tax operating income of the
U.S. operations segment for the six months ended June 30, 2017 as
compared to the six months ended June 30, 2016 (in thousands):

       
Six Months Ended
June 30,
2017     2016 Increase
U.S. Operations Segment
Revenue:
Retail merchandise sales $ 358,518 $ 102,126 251 %
Pawn loan fees 192,072 46,089 317 %
Consumer loan and credit services fees 38,900 9,628 304 %
Wholesale scrap jewelry sales 59,033   10,864   443 %
Total revenue 648,523   168,707   284 %
 
Cost of revenue:
Cost of retail merchandise sold 230,228 62,710 267 %
Consumer loan and credit services loss provision 9,047 2,105 330 %
Cost of wholesale scrap jewelry sold 56,082   8,959   526 %
Total cost of revenue 295,357   73,774   300 %
 
Net revenue 353,166   94,933   272 %
 
Segment expenses:
Store operating expenses 213,489 54,716 290 %
Depreciation and amortization 12,840   2,921   340 %
Total segment expenses 226,329   57,637   293 %
 
Segment pre-tax operating income $ 126,837   $ 37,296   240 %
 

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

Latin America Operations Segment Results

The Company's management reviews and analyzes certain operating results
in Latin America on a constant currency basis because the Company
believes this better represents the Company's underlying business
trends. 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.
The scrap jewelry generated in Latin America is sold and settled in U.S.
dollars and is therefore not affected by foreign currency translation. A
small percentage of the operating and administrative expenses in Latin
America are also billed and paid in U.S. dollars which are not affected
by foreign currency translation. Amounts presented on a constant
currency basis are denoted as such. See the "Constant Currency Results"
section below for additional discussion of constant currency results.

The following table details earning assets, which consist of pawn loans,
consumer loans, net and inventories as well as other earning asset
metrics of the Latin America operations segment as of June 30, 2017 as
compared to June 30, 2016 (in thousands):

                Constant Currency Basis
Balance at    
June 30, Increase /
Balance at June 30, Increase / 2017 (Decrease)
2017 2016 (Decrease) (Non-GAAP) (Non-GAAP)
Latin America Operations Segment
Earning assets:
Pawn loans $ 79,576 $ 68,201 17 % $ 77,146 13 %
Consumer loans, net 391 407 (4 )% 379 (7 )%
Inventories   57,370     43,927   31 %   55,610 27 %
$ 137,337   $ 112,535   22 % $ 133,135 18 %
 
Average outstanding pawn loan amount (in ones) $ 66 $ 62 6 % $ 64 3 %
 
Composition of pawn collateral:
General merchandise 81 % 82 %
Jewelry   19 %   18 %
  100 %   100 %
 
Composition of inventories:
General merchandise 74 % 80 %
Jewelry   26 %   20 %
  100 %   100 %
 
Percentage of inventory aged greater than one year 1 % 1 %
 

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 June 30,
2017 as compared to the three months ended June 30, 2016 (in thousands):

               
Constant Currency Basis
Three Months  
Ended
Three Months Ended June 30, Increase /
June 30, Increase / 2017 (Decrease)
2017 2016 (Decrease) (Non-GAAP) (Non-GAAP)
Latin America Operations Segment
Revenue:
Retail merchandise sales $ 78,970 $ 68,478 15 % $ 81,129 18 %
Pawn loan fees 32,378 30,034 8 % 33,245 11 %
Consumer loan and credit services fees 444 497 (11 )% 457 (8 )%
Wholesale scrap jewelry sales   5,510     3,572 54 % 5,510   54 %
Total revenue   117,302     102,581 14 % 120,341   17 %
 
Cost of revenue:
Cost of retail merchandise sold 49,742 42,302 18 % 51,084 21 %
Consumer loan and credit services loss provision 85 122 (30 )% 88 (28 )%
Cost of wholesale scrap jewelry sold   5,190     2,756 88 % 5,298   92 %
Total cost of revenue   55,017     45,180 22 % 56,470   25 %
 
Net revenue   62,285     57,401 9 % 63,871   11 %
 
Segment expenses:
Store operating expenses 31,549 27,731 14 % 32,308 17 %
Depreciation and amortization   2,622     2,667 (2 )% 2,686   1 %
Total segment expenses   34,171     30,398 12 % 34,994   15 %
 
Segment pre-tax operating income $ 28,114   $ 27,003 4 % $ 28,877   7 %
 

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

The following table presents segment pre-tax operating income of the
Latin America operations segment for the six months ended June 30, 2017
as compared to the six months ended June 30, 2016 (in thousands):

               
Constant Currency Basis
Six Months    
Ended
Six Months Ended June 30, Increase /
June 30, Increase / 2017 (Decrease)
2017 2016 (Decrease) (Non-GAAP) (Non-GAAP)
Latin America Operations Segment
Revenue:
Retail merchandise sales $ 145,298 $ 132,193 10 % $ 156,291 18 %
Pawn loan fees 58,811 57,222 3 % 63,180 10 %
Consumer loan and credit services fees 849 974 (13 )% 917 (6 )%
Wholesale scrap jewelry sales 10,724 6,086 76 % 10,724 76 %
Total revenue 215,682 196,475 10 % 231,112 18 %
 
Cost of revenue:
Cost of retail merchandise sold 91,880 83,057 11 % 98,778 19 %
Consumer loan and credit services loss provision 187 262 (29 )% 202 (23 )%
Cost of wholesale scrap jewelry sold 9,457 4,765 98 % 10,130 113 %
Total cost of revenue 101,524 88,084 15 % 109,110 24 %
 
Net revenue 114,158 108,391 5 % 122,002 13 %
 
Segment expenses:
Store operating expenses 60,325 55,273 9 % 64,385 16 %
Depreciation and amortization 5,019 5,317 (6 )% 5,358 1 %
Total segment expenses 65,344 60,590 8 % 69,743 15 %
 
Segment pre-tax operating income $ 48,814 $ 47,801 2 % $ 52,259 9 %
 

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

Consolidated Results of Operations

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 (in thousands):

       
Three Months Ended Six Months Ended
June 30, June 30,
2017     2016 2017     2016
Consolidated results of operations
U.S. operations segment pre-tax operating income $ 50,197 $ 15,790 $ 126,837 $ 37,296
Latin America operations segment pre-tax operating income 28,114   27,003   48,814   47,801  
Consolidated segment pre-tax operating income 78,311   42,793   175,651   85,097  
 
Corporate expenses and other income:
Administrative expenses 30,305 16,509 63,543 33,777
Depreciation and amortization 5,646 857 11,073 1,646
Interest expense 5,585 4,326 11,698 8,786
Interest income (393 ) (224 ) (720 ) (498 )
Merger and other acquisition expenses 1,606 4,079 2,253 4,479
Loss on extinguishment of debt 14,094     14,094    
Total corporate expenses and other income 56,843   25,547   101,941   48,190  
 
Income before income taxes 21,468 17,246 73,710 36,907
 
Provision for income taxes 6,229   5,573   25,826   12,060  
 
Net income $ 15,239   $ 11,673   $ 47,884   $ 24,847  
 

FIRSTCASH, INC.
STORE COUNT ACTIVITY

The following table details store count activity for the six months
ended June 30, 2017:

 
        Consumer    
Pawn Loan Total
Locations (1) Locations (2) Locations
U.S. operations segment:
Total locations, beginning of period 1,085 45 1,130
New locations opened 1 1
Locations acquired 1 1
Locations closed or consolidated (14 ) (1 ) (15 )
Total locations, end of period 1,073   44   1,117  
 
Latin America operations segment:
Total locations, beginning of period 927 28 955
New locations opened 23 23
Locations acquired 5 5
Locations closed or consolidated (3 )   (3 )
Total locations, end of period 952   28   980  
 
Total:
Total locations, beginning of period 2,012 73 2,085
New locations opened 24 24
Locations acquired 6 6
Locations closed or consolidated (17 ) (1 ) (18 )
Total locations, end of period 2,025   72   2,097  
 

(1)

At June 30, 2017, 317 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 a credit services product and are
located in Ohio, Texas, California and limited markets in Mexico.
The table does not include 64 check cashing locations operated by
independent franchises 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, EBITDA, adjusted EBITDA, free
cash flow, adjusted free cash flow 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 the Company does not consider to be representative of its actual
operating performance. These financial calculations are "non-GAAP
financial measures" as defined in 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 from and other adjustments and assumptions that
are made in calculating adjusted net income, adjusted net income per
share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow
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, EBITDA, adjusted
EBITDA, free cash flow, adjusted free cash flow and constant currency
results, as presented, may not be comparable to other similarly titled
measures of other companies.

The Company expects to incur additional expenses in 2017 and 2018 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.

FIRSTCASH, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES

TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

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 by
excluding items that management believes are non-operating in nature and
not representative of the Company's core operating performance. 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.

The following table provides 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 June 30,     Six Months Ended June 30,
2017     2016 2017     2016
In Thousands     Per Share In Thousands     Per Share In Thousands     Per Share In Thousands     Per Share
Net income, as reported $ 15,239 $ 0.32 $ 11,673 $ 0.41 $ 47,884 $ 0.99 $ 24,847 $ 0.88
Adjustments, net of tax:
Merger related expenses:
Transaction 2,651 0.10 2,817 0.10
Severance and retention 447 0.01 801 0.02
Other 565   0.01       619   0.01    
Total merger related expenses 1,012 0.02 2,651 0.10 1,420 0.03 2,817 0.10
Other acquisition expenses 94
Loss on extinguishment of debt 8,879   0.18       8,879   0.18    
Adjusted net income $ 25,130   $ 0.52   $ 14,324   $ 0.51   $ 58,183   $ 1.20   $ 27,758   $ 0.98
 

FIRSTCASH, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES

TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

The following tables provide 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 June 30,
2017     2016
Pre-tax   Tax   After-tax Pre-tax   Tax   After-tax
Merger related expenses $ 1,606 $ 594 $ 1,012 $ 4,079 $ 1,428 $ 2,651
Loss on extinguishment of debt 14,094   5,215   8,879      
Total adjustments $ 15,700   $ 5,809   $ 9,891   $ 4,079   $ 1,428   $ 2,651
 
 
Six Months Ended June 30,
2017 2016
Pre-tax Tax After-tax Pre-tax Tax After-tax
Merger related expenses $ 2,253 $ 833 $ 1,420 $ 4,329 $ 1,512 $ 2,817
Other acquisition expenses 150 56 94
Loss on extinguishment of debt 14,094   5,215   8,879      
Total adjustments $ 16,347   $ 6,048   $ 10,299   $ 4,479   $ 1,568   $ 2,911
 

FIRSTCASH, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL
MEASURES

TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Earnings Before Interest, Taxes, Depreciation
and Amortization (EBITDA) and Adjusted EBITDA

The Company defines EBITDA as net income before income taxes,
depreciation and amortization, interest expense and interest income and
adjusted EBITDA as EBITDA adjusted for 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
EBITDA and adjusted EBITDA are commonly used by investors to assess a
company's financial performance. The following table provides a
reconciliation of net income to EBITDA and adjusted EBITDA (in
thousands):

                     
Trailing Twelve
Three Months Ended Six Months Ended Months Ended
June 30, June 30, June 30,
2017 2016 2017 2016 2017     2016
Net income $ 15,239 $ 11,673 $ 47,884 $ 24,847 $ 83,164 $ 55,430
Income taxes 6,229 5,573 25,826 12,060 47,086 25,338
Depreciation and amortization (1) 14,689 4,947 28,932 9,884 50,913 18,545
Interest expense 5,585 4,326 11,698 8,786 23,232 17,527
Interest income (393 ) (224 ) (720 ) (498 ) (973 ) (1,327 )
EBITDA 41,349 26,295 113,620 55,079 203,422 115,513
Adjustments:
Merger related expenses 1,606 4,079 2,253 4,329 34,144 4,329
Other acquisition expenses 150 300 1,850
Loss on extinguishment of debt 14,094 14,094 14,094
Restructuring expenses related to U.S. consumer loan operations 8,439
Net gain on sale of common stock of Enova         (1,299 )  
Adjusted EBITDA $ 57,049   $ 30,374   $ 129,967   $ 59,558   $ 250,661   $ 130,131  
 

(1)

For the trailing twelve months ended June 30, 2016, excludes
$264,000 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)

Free Cash Flow and Adjusted Free Cash Flow

For purposes of its internal liquidity assessments, the Company
considers free cash flow and adjusted free cash flow. The Company
defines free cash flow as cash flow from operating activities less
purchases of property and equipment and net fundings/repayments of pawn
and consumer loans, which are considered to be operating in nature by
the Company but are included in cash flow from investing activities and
adjusted free cash flow as free cash flow adjusted for merger related
expenses paid that management considers to be non-operating in nature.
Free cash flow and adjusted free cash flow are commonly used by
investors as an additional measure of cash generated by business
operations that may be used to repay scheduled debt maturities and debt
service or, following payment of such debt obligations and other
non-discretionary items, may be available to invest in future growth
through new business development activities or acquisitions, repurchase
stock, pay cash dividends or repay debt obligations prior to their
maturities. These metrics can also be used to evaluate the Company's
ability to generate cash flow from business operations and the impact
that this cash flow has on the Company's liquidity. However, free cash
flow and adjusted free cash flow have limitations as analytical tools
and should not be considered in isolation or as a substitute for cash
flow from operating activities or other income statement data prepared
in accordance with GAAP. The following table reconciles net cash flow
from operating activities to free cash flow and adjusted free cash flow
(in thousands):

                    Trailing Twelve
Three Months Ended Six Months Ended Months Ended
June 30, June 30, June 30,
2017 2016 2017 2016 2017     2016
Cash flow from operating activities $ 38,948 $ 14,497 $ 102,813 $ 39,573 $ 160,094 $ 90,413
Cash flow from investing activities:
Loan receivables, net of cash repayments (33,226 ) (14,759 ) 33,963 (9,466 ) 27,357 (9,211 )
Purchases of property and equipment (9,325 ) (10,730 ) (17,401 ) (17,073 ) (34,191 ) (29,546 )
Free cash flow (3,603 ) (10,992 ) 119,375 13,034 153,260 51,656
Merger related expenses paid, net of tax 1,743   1,391   3,545   1,557   22,929   1,557  
Adjusted free cash flow $ (1,860 ) $ (9,601 ) $ 122,920   $ 14,591   $ 176,189   $ 53,213  
 

Constant Currency Results

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 is 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.

The Company believes constant currency results provide investors with
valuable supplemental information regarding the underlying performance
of its business operations in Latin America, consistent with how the
Company's management evaluates such performance and operating results.
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. See the Latin
America operations segment tables elsewhere in this release for an
additional reconciliation of certain constant currency amounts to as
reported GAAP amounts.

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

       
June 30, Increase /
2017     2016 (Decrease)
Mexican peso / U.S. dollar exchange rate:
End-of-period 17.9 18.5 3 %
Three months ended 18.6 18.1 (3 )%
Six months ended 19.5 18.0 (8 )%
 
Guatemalan quetzal / U.S. dollar exchange rate:
End-of-period 7.3 7.6 4 %
Three months ended 7.3 7.7 5 %
Six months ended 7.4 7.7 4 %
 

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