FirstCash Holdings Inc

Previous wording

As of June 30, 2024, the Company operated 3,018 pawn store locations composed of 1,201 stores in 29 U.S. states and the District of Columbia, 1,716 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.

Current wording

As of September 30, 2024, the Company operated 3,025 pawn store locations composed of 1,201 stores in 29 U.S. states and the District of Columbia, 1,723 stores in 32 states in Mexico, 72 stores in Guatemala, 17 stores in El Salvador and 12 stores in Colombia.

Previous wording

The following tables detail pawn store count activity for the three and six months ended June 30, 2024:

Current wording

The following tables detail pawn store count activity for the three and nine months ended September 30, 2024:

Previous wording

(1)In addition to new store openings, the Company strategically relocated four stores in the U.S. during the three months ended June 30, 2024. During the six months ended June 30, 2024, the Company strategically relocated six stores in the U.S.

Current wording

(1)In addition to new store openings, the Company strategically relocated three stores in the U.S and one store in Latin America. during the three months ended September 30, 2024. During the nine months ended September 30, 2024, the Company strategically relocated nine stores in the U.S and one store in Latin America.

Previous wording

(2)Store consolidations were primarily acquired locations over the past seven years which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.

Current wording

(2)Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.

Previous wording

As of June 30, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 12,800 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 10,500 locations at June 30, 2023.

Current wording

As of September 30, 2024, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 13,500 active retail merchant partner locations located in all 50 U.S. states, the District of Columbia and Puerto Rico. This compares to the active door count of approximately 10,800 locations at September 30, 2023.

Previous wording

The financial statements have been prepared in accordance with GAAP. The significant accounting policies and estimates that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results have been reported in the Company’s 2023 Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies for the six months ended June 30, 2024.

Current wording

The financial statements have been prepared in accordance with GAAP. The significant accounting policies and estimates that the Company believes are the most critical to aid in fully understanding and evaluating its reported financial results have been reported in the Company’s 2023 Annual Report on Form 10-K. There have been no changes to the Company’s significant accounting policies for the nine months ended September 30, 2024.

Previous wording

(1)Includes $1.1 million and $1.8 million of retail merchandise sales from intersegment transactions for the three months ended June 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. retail merchandise sales for the three months ended June 30, 2024 and 2023 totaled $229.0 million and $194.3 million, respectively.

Current wording

(1)Includes $1.0 million and $1.5 million of retail merchandise sales from intersegment transactions for the three months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. retail merchandise sales for the three months ended September 30, 2024 and 2023 totaled $234.1 million and $202.3 million, respectively.

Previous wording

(2)Includes $0.6 million and $0.9 million of cost of retail merchandise sold from intersegment transactions for the three months ended June 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold for the three months ended June 30, 2024 and 2023 totaled $131.9 million and $110.6 million, respectively.

Current wording

(2)Includes $0.5 million and $0.8 million of cost of retail merchandise sold from intersegment transactions for the three months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold for the three months ended September 30, 2024 and 2023 totaled $134.4 million and $114.9 million, respectively.

Previous wording

U.S. retail merchandise sales increased 17%, totaling $230.1 million during the second quarter of 2024 compared to $196.0 million for the second quarter of 2023. Same-store retail sales increased 7% in the second quarter of 2024 compared to the second quarter of 2023. The increase in total retail sales was primarily due to incremental sales contributions from acquired stores. The gross profit margin on retail merchandise sales in the U.S. was 42% in the second quarter of 2024 and 43% in the second quarter of 2023, reflecting continued demand for value-priced, pre-owned merchandise and low levels of aged inventory.

Current wording

U.S. retail merchandise sales increased 15%, totaling $235.0 million during the third quarter of 2024 compared to $203.8 million for the third quarter of 2023. Same-store retail sales increased 7% in the third quarter of 2024 compared to the third quarter of 2023. The increase in total retail sales was due to incremental sales contributions from acquired stores and the same-store sales increase. The gross profit margin on retail merchandise sales in the U.S. was 43% for both comparative periods, reflecting continued demand for value-priced, pre-owned merchandise and low levels of aged inventory.

Previous wording

U.S. inventories increased 24% from $180.4 million at June 30, 2023 to $223.4 million at June 30, 2024. The increase was primarily due to incremental inventories from acquired stores and an increase in same-store inventories as a result of the higher pawn loan balances noted below. Inventories aged greater than one year in the U.S. decreased to 1% at June 30, 2024 compared to 2% at June 30, 2023.

Current wording

U.S. inventories increased 10% from $217.4 million at September 30, 2023 to $238.7 million at September 30, 2024. The increase was primarily due to incremental inventories from acquired stores and an increase in same-store inventories as a result of the higher pawn loan balances noted below. Inventories aged greater than one year in the U.S. were 2% at September 30, 2024 compared to 1% at September 30, 2023.

Previous wording

U.S. pawn loan receivables as of June 30, 2024 increased 22% in total and 11% on a same-store basis compared to June 30, 2023. The increase in total pawn receivables was due to incremental pawn loans from acquired stores and an increase in same-store pawn receivables, which the Company believes was primarily due to continued inflationary pressures driving additional demand for pawn loans and tightened underwriting for other competing forms of consumer credit.

Current wording

U.S. pawn loan receivables as of September 30, 2024 increased 12% in total and 10% on a same-store basis compared to September 30, 2023. The Company believes the increase in same-store pawn receivables was primarily due to continued inflationary pressures driving additional demand for pawn loans and higher gold prices, which increased customers’ collateral value.

Previous wording

U.S. pawn loan fees increased 22% to $120.3 million during the second quarter of 2024 compared to $99.0 million for the second quarter of 2023. Same-store pawn fees in the second quarter of 2024 increased 12% compared to the second quarter of 2023. The increase in total and same-store pawn loan fees was primarily due to store growth and continued growth in demand for pawn loans.

Current wording

U.S. pawn loan fees increased 13% to $128.4 million during the third quarter of 2024 compared to $114.0 million for the third quarter of 2023. Same-store pawn fees in the third quarter of 2024 increased 8% compared to the third quarter of 2023. The increase in total and same-store pawn loan fees was primarily due to store growth and continued growth in demand for pawn loans.

Previous wording

U.S. operating expenses increased 16% to $125.2 million during the second quarter of 2024 compared to $108.2 million during the second quarter of 2023. The increase in operating expenses was primarily due to store growth.

Current wording

U.S. operating expenses increased 12% to $128.1 million during the third quarter of 2024 compared to $114.0 million during the third quarter of 2023 while same-store operating expenses increased 6% compared with the prior-year period. The increase in operating expenses was primarily due to store growth.

Previous wording

The U.S. segment pre-tax operating income for the second quarter of 2024 was $90.6 million, which generated a pre-tax segment operating margin of 24% compared to $72.4 million and 23% in the prior year, respectively. The increase in the segment pre-tax operating income and margin reflected increased net revenue from both acquired and existing stores partially offset by an increase in segment expenses.

Current wording

The U.S. segment pre-tax operating income for the third quarter of 2024 was $98.3 million, which generated a pre-tax segment operating margin of 25% compared to $84.4 million and 25% in the prior year, respectively. The increase in the segment pre-tax operating income reflected increased net revenue from both acquired and existing stores partially offset by an increase in segment expenses.

Previous wording

Latin American segment pre-tax operating income for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 benefited from a 3% favorable change in the average value of the Mexican peso compared to the U.S. dollar. The translated value of Latin American earning assets as of June 30, 2024 compared to June 30, 2023 was also impacted by an 8% unfavorable change in the end-of-period Mexican peso compared to the U.S. dollar. Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section in “Non-GAAP Financial Information” below for additional discussion of constant currency operating results.

Current wording

Latin American segment pre-tax operating income for the three months ended September 30, 2024 compared to the three months ended September 30, 2023 was impacted by an 11% unfavorable change in the average value of the Mexican peso compared to the U.S. dollar. The translated value of Latin American earning assets as of September 30, 2024 compared to September 30, 2023 was also impacted by an 11% unfavorable change in the end-of-period Mexican peso compared to the U.S. dollar. Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section in “Non-GAAP Financial Information” below for additional discussion of constant currency operating results.

Previous wording

Latin America retail merchandise sales increased 6% (3% on a constant currency basis) to $134.4 million during the second quarter of 2024 compared to $126.6 million for the second quarter of 2023. Same-store retail sales also increased 6% (3% on a constant currency basis) during the second quarter of 2024 compared to the second quarter of 2023. The increase in total and same-store retail sales was primarily due to increased inventory levels during the second quarter of 2024 compared to the second quarter of 2023 and greater demand for value-priced, pre-owned merchandise. The gross profit margin on retail merchandise sales was 36% during the second quarter of 2024 compared to 35% during the second quarter of 2023.

Current wording

Latin America retail merchandise sales decreased 3% (7% increase on a constant currency basis) to $129.1 million during the third quarter of 2024 compared to $132.8 million for the third quarter of 2023. Same-store retail sales also decreased 3% (7% increase on a constant currency basis) during the third quarter of 2024 compared to the third quarter of 2023. The increase in constant currency total and same-store retail sales was primarily due to increased inventory levels during the third quarter of 2024 compared to the third quarter of 2023 and greater demand for value-priced, pre-owned merchandise. The gross profit margin on retail merchandise sales was 35% during the third quarter of 2024 compared to 36% during the third quarter of 2023.

Previous wording

Latin America inventories increased 6% (14% on a constant currency basis) from $86.7 million at June 30, 2023 to $92.0 million at June 30, 2024. The increased inventories were primarily due to increases in pawn loan receivable balances over the past several quarters creating more forfeited inventory. Inventories aged greater than one year in Latin America were 1% at both June 30, 2024 and 2023.

Current wording

Latin America inventories decreased 1% (9% increase on a constant currency basis) from $97.0 million at September 30, 2023 to $95.7 million at September 30, 2024. The increase in constant currency inventories was primarily due to increases in pawn loan receivable balances over the past several quarters creating more forfeited inventory. Inventories aged greater than one year in Latin America were 1% at both September 30, 2024 and 2023.

Previous wording

Latin America pawn loan receivables were flat (8% increase on a constant currency basis) as of June 30, 2024 compared to June 30, 2023. On a same-store basis, pawn loan receivables increased 1% (8% on a constant currency basis) as of June 30, 2024 compared to June 30, 2023. The increase in constant currency total and same-store pawn receivables is primarily due to increasing demand for pawn loans and larger loan sizes driven in part by a slightly increased mix of higher value jewelry loans.

Current wording

Latin America pawn loan receivables decreased 4% (6% increase on a constant currency basis) as of September 30, 2024 compared to September 30, 2023. On a same-store basis, pawn loan receivables also decreased 4% (6% increase on a constant currency basis) as of September 30, 2024 compared to September 30, 2023. The increase in constant currency total and same-store pawn receivables is primarily due to increasing demand for pawn loans and larger loan sizes driven in part by higher gold prices and a slightly increased mix of higher value jewelry loans.

Previous wording

Latin America pawn loan fees increased 10% (7% on a constant currency basis), totaling $60.7 million during the second quarter of 2024 compared to $55.2 million for the second quarter of 2023. Same-store pawn fees also increased 10% (7% on a constant currency basis) in the second quarter of 2024 compared to the second quarter of 2023. The increase in total and same-store constant currency pawn loan fees was primarily due to increased average pawn loan receivable balances outstanding during the second quarter of 2024 compared to the second quarter of 2023.

Current wording

Latin America pawn loan fees decreased 4% (6% increase on a constant currency basis), totaling $58.2 million during the third quarter of 2024 compared to $60.5 million for the third quarter of 2023. Same-store pawn fees also decreased 4% (6% increase on a constant currency basis) in the third quarter of 2024 compared to the third quarter of 2023. The increase in total and same-store constant currency pawn loan fees was primarily due to increased constant currency average pawn loan receivable balances outstanding during the third quarter of 2024 compared to the third quarter of 2023.

Previous wording

Operating expenses increased 14% (11% on a constant currency basis) to $67.9 million during the second quarter of 2024 compared to $59.5 million during the second quarter of 2023. Same-store operating expenses increased 12% (9% on a constant currency basis) compared to the prior-year period. The increase in total and same-store constant currency operating expenses was primarily driven by increased store counts, accelerated store opening activity, general inflationary impacts and continued increases in the federally mandated minimum wage and increased costs associated with required employee benefit programs.

Current wording

Operating expenses decreased 1% (8% increase on a constant currency basis) to $63.1 million during the third quarter of 2024 compared to $63.9 million during the third quarter of 2023. Same-store operating expenses decreased 2% (8% increase on a constant currency basis) compared to the prior-year period. The constant currency increase in total and same-store constant currency operating expenses was primarily driven by increased store counts, accelerated store opening activity, general inflationary impacts and continued increases in the federally mandated minimum wage and increased costs associated with required employee benefit programs.

Previous wording

The segment pre-tax operating income for the second quarter of 2024 was $37.1 million, which generated a pre-tax segment operating margin of 18% compared to $37.7 million and 20% in the prior year, respectively. The decrease in the segment pre-tax operating income and margin reflected the increase in operating expenses, partially offset by an increase in net revenue.

Current wording

The segment pre-tax operating income for the third quarter of 2024 was $38.5 million, which generated a pre-tax segment operating margin of 19% compared to $41.0 million and 20% in the prior year, respectively. The decrease in the segment pre-tax operating income and margin reflected the decrease in net revenue, partially offset by a decrease in operating expenses.

Previous wording

The following table presents segment pre-tax operating income of the retail POS payment solutions segment for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023 (dollars in thousands). Operating expenses include salary and benefit expenses of certain operations-focused departments, merchant partner incentives, bank and other payment processing charges, credit reporting costs, information technology costs, advertising costs and other operational costs incurred by AFF.

Current wording

The following table presents segment pre-tax operating income of the retail POS payment solutions segment for the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 (dollars in thousands). Operating expenses include salary and benefit expenses of certain operations-focused departments, merchant partner incentives, bank and other payment processing charges, credit reporting costs, information technology costs, advertising costs and other operational costs incurred by AFF. Administrative expenses and amortization expense of intangible assets related to the purchase of AFF are not included in the segment pre-tax operating income.

Previous wording

(1)Includes $0.4 million and $0.5 million of depreciation of leased merchandise from intersegment transactions for the three months ended June 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated depreciation of leased merchandise for the three months ended June 30, 2024 and 2023 totaled $110.2 million and $102.5 million, respectively.

Current wording

(1)Includes $0.4 million and $0.5 million of depreciation of leased merchandise from intersegment transactions for the three months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated depreciation of leased merchandise for the three months ended September 30, 2024 and 2023 totaled $104.9 million and $103.7 million, respectively.

Previous wording

(1)Includes $0.2 million and $1.4 million of intersegment transactions as of June 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated net leased merchandise as of June 30, 2024 and 2023 totaled $142.9 million and $143.1 million, respectively.

Current wording

(1)Includes $0.2 million and $1.7 million of intersegment transactions as of September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment transactions, consolidated net leased merchandise as of September 30, 2024 and 2023 totaled $137.8 million and $143.2 million, respectively.

Previous wording

Leased merchandise, before allowance for lease losses, decreased 4% as of June 30, 2024 compared to June 30, 2023. The decrease was primarily due to decreased transaction volumes and a slight increase in the number of customers taking advantage of the early buyout or other early payment options.

Current wording

Leased merchandise, before allowance for lease losses, decreased 7% as of September 30, 2024 compared to September 30, 2023. The decrease was primarily due to decreased gross transaction volumes originated by retail furniture merchant partners.

Previous wording

The allowance for lease losses decreased 7% to $103.3 million as of June 30, 2024 compared to $111.0 million as of June 30, 2023, which was primarily due to the decrease in leased merchandise. As a percentage of lease merchandise, the allowance was 42% at June 30, 2024 and 43% at June 30, 2023.

Current wording

The allowance for lease losses decreased 11% to $93.8 million as of September 30, 2024 compared to $105.5 million as of September 30, 2023, which was primarily due to the decrease in leased merchandise. As a percentage of lease merchandise, the allowance was 40% at September 30, 2024 and 42% at September 30, 2023.

Previous wording

Leased merchandise income increased 3% to $194.6 million during the second quarter of 2024 compared to $189.8 million during the second quarter of 2023, which was primarily due to higher average leased merchandise balances outstanding during the second quarter of 2024 compared to the second quarter of 2023.

Current wording

Leased merchandise income decreased slightly to $188.6 million during the third quarter of 2024 compared to $189.4 million during the third quarter of 2023, which was primarily due to lower average leased merchandise balances outstanding during the third quarter of 2024 compared to the third quarter of 2023.

Previous wording

Depreciation of leased merchandise increased 7% to $110.6 million during the second quarter of 2024 compared to $103.1 million during the second quarter of 2023. As a percentage of leased merchandise income, depreciation of leased merchandise increased from 54% during the second quarter of 2023 to 57% during the second quarter of 2024 primarily as a result of a slight increase in the number of customers taking advantage of the early buyout or other early payment options.

Current wording

Depreciation of leased merchandise increased 1% to $105.3 million during the third quarter of 2024 compared to $104.2 million during the third quarter of 2023. As a percentage of leased merchandise income, depreciation of leased merchandise increased slightly from 55% during the third quarter of 2023 to 56% during the third quarter of 2024.

Previous wording

Finance receivables, before allowance for loan losses, increased 1% as of June 30, 2024 compared to June 30, 2023. The increase was primarily due to increased transaction volumes.

Current wording

Finance receivables, before allowance for loan losses, increased 11% as of September 30, 2024 compared to September 30, 2023. The increase was primarily due to increased gross transaction volumes in certain non-furniture industry verticals.

Previous wording

The allowance for loan losses increased 7% to $100.0 million as of June 30, 2024 compared to $93.1 million as of June 30, 2023, which was primarily due to the increase in finance receivables and a slight increase in loan loss provisioning rates used during the second quarter of 2024 compared to the second quarter of 2023. As a percentage of finance receivables, the allowance was 46% at June 30, 2023 compared to 49% at June 30, 2024.

Current wording

The allowance for loan losses increased 13% to $109.2 million as of September 30, 2024 compared to $96.7 million as of September 30, 2023, which was primarily due to the increase in finance receivables. As a percentage of finance receivables, the allowance was 47% at September 30, 2024 compared to 46% at September 30, 2023.

Previous wording

Interest and fees on finance receivables decreased 2% to $56.8 million during the second quarter of 2024 compared to $58.2 million during the second quarter of 2023, which was primarily due to a slight decline in portfolio yield primarily as a result of AFF expanding its offerings and merchant relationships in certain services sector verticals in the second quarter of 2024, some of which provide slightly lower interest rates.

Current wording

Interest and fees on finance receivables decreased slightly to $61.2 million during the third quarter of 2024 compared to $61.4 million during the third quarter of 2023, which was primarily due to a slight decline in portfolio yield primarily as a result of AFF expanding its offerings and merchant relationships in certain services sector verticals in the third quarter of 2024, some of which provide slightly lower interest rates.

Previous wording

The retail POS payment solutions segment pre-tax operating income for the second quarter of 2024 was $25.9 million compared to $25.8 million in the second quarter of 2023. The slight increase was primarily the result of the decrease in segment expenses, partially offset by a decrease in net revenue.

Current wording

The retail POS payment solutions segment pre-tax operating income for the third quarter of 2024 was $30.2 million compared to $39.4 million in the third quarter of 2023. The decrease was primarily the result of the decrease in segment net revenue.

Previous wording

Administrative expenses increased 13% to $45.6 million during the second quarter of 2024 compared to $40.4 million in the second quarter of 2023, primarily due to increased incentive compensation expense, the increase in pawn store count and a 3% change in the average value of the Mexican peso resulting in higher U.S. dollar translated administrative expenses in Latin America. As a percentage of revenue, administrative expenses were 5% during both the second quarter of 2023 and the second quarter of 2024.

Current wording

Administrative expenses decreased 9% to $40.9 million during the third quarter of 2024 compared to $45.1 million in the third quarter of 2023, primarily due to decreased management incentive compensation expense and an 11% change in the average value of the Mexican peso resulting in lower U.S. dollar translated administrative expenses in Latin America, partially offset by the increase in the pawn store count. As a percentage of revenue, administrative expenses were 5% in the third quarter of 2024 compared to 6% during the third quarter of 2023.

Previous wording

Depreciation and amortization decreased 10% to $13.2 million during the second quarter of 2024 compared to $14.8 million in the second quarter of 2023, primarily due to a $1.7 million decrease in amortization of acquired AFF intangible assets.

Current wording

Depreciation and amortization decreased 11% to $13.2 million during the third quarter of 2024 compared to $14.8 million in the third quarter of 2023, primarily due to a $1.7 million decrease in amortization of acquired AFF intangible assets.

Previous wording

Interest expense increased 20% to $25.2 million during the second quarter of 2024 compared to $21.1 million in the second quarter of 2023, primarily due to higher floating interest rates on the Company’s unsecured bank credit facilities and higher average total long-term debt balances outstanding. See Note 8 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”

Current wording

Interest expense increased 11% to $27.4 million during the third quarter of 2024 compared to $24.7 million in the third quarter of 2023, primarily due to higher floating interest rates on the Company’s unsecured bank credit facilities and slightly higher average outstanding debt balances. See Note 8 of Notes to Consolidated Financial Statements and “Liquidity and Capital Resources.”

Previous wording

Consolidated effective income tax rates for the second quarter of 2024 and 2023 were 25.8% and 25.4%, respectively.

Current wording

Consolidated effective income tax rates for the third quarter of 2024 and 2023 were 23.9% and 26.4%, respectively. The decrease in the effective tax rate was primarily due to an increase in U.S.-sourced income as a result of the U.S. store acquisition activity since the beginning of 2023, which is taxed at a lower rate than the Latin American countries in which the Company operates. In addition, the Company recorded an increased foreign permanent tax benefit in the third quarter of 2024 compared to the third quarter of 2023, related to an inflation index adjustment allowed in Mexico.

Previous wording

(1)Includes $2.1 million and $3.5 million of retail merchandise sales from intersegment transactions for the six months ended June 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. retail merchandise sales for the six months ended June 30, 2024 and 2023 totaled $465.0 million and $403.3 million, respectively.

Current wording

(1)Includes $3.1 million and $4.9 million of retail merchandise sales from intersegment transactions for the nine months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. retail merchandise sales for the nine months ended September 30, 2024 and 2023 totaled $699.1 million and $605.6 million, respectively.

Previous wording

(2)Includes $1.1 million and $1.8 million of cost of retail merchandise sold from intersegment transactions for the six months ended June 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold for the six months ended June 30, 2024 and 2023 totaled $271.2 million and $231.6 million, respectively.

Current wording

(2)Includes $1.7 million and $2.6 million of cost of retail merchandise sold from intersegment transactions for the nine months ended September 30, 2024 and 2023, respectively, related to the Company offering AFF’s LTO payment solution in its U.S. pawn stores that are eliminated upon consolidation. Excluding these intersegment sales, consolidated U.S. cost of retail merchandise sold for the nine months ended September 30, 2024 and 2023 totaled $405.7 million and $346.6 million, respectively.

Previous wording

U.S. retail merchandise sales increased 15% to $467.1 million during the six months ended June 30, 2024 compared to $406.7 million for the six months ended June 30, 2023. Same-store retail sales increased 5% during the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase in total retail sales was primarily due to incremental sales contributions from acquired stores. During the six months ended June 30, 2024, the gross profit margin on retail merchandise sales in the U.S. was 42% compared to a margin of 43% during the six months ended June 30, 2023 reflecting continued demand for value-priced, pre-owned merchandise and low levels of aged inventory.

Current wording

U.S. retail merchandise sales increased 15% to $702.1 million during the nine months ended September 30, 2024 compared to $610.5 million for the nine months ended September 30, 2023. Same-store retail sales increased 6% during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase in total retail sales was primarily due to incremental sales contributions from acquired stores and the same-store sales increase. During the nine months ended September 30, 2024, the gross profit margin on retail merchandise sales in the U.S. was 42% compared to a margin of 43% during the nine months ended September 30, 2023, reflecting continued demand for value-priced, pre-owned merchandise and low levels of aged inventory.

Previous wording

U.S. pawn loan fees increased 21% to $243.3 million during the six months ended June 30, 2024 compared to $201.7 million for the six months ended June 30, 2023. Same-store pawn fees increased 12% during the six months ended June 30, 2024 compared to the six months ended June 30, 2023. The increase in total and same-store pawn loan fees was primarily due to store growth and continued growth in demand for pawn loans.

Current wording

U.S. pawn loan fees increased 18% to $371.7 million during the nine months ended September 30, 2024 compared to $315.7 million for the nine months ended September 30, 2023. Same-store pawn fees increased 11% during the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023. The increase in total and same-store pawn loan fees was primarily due to store growth and continued growth in demand for pawn loans.