This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

First Cash Reports 42% Increase In Fourth Quarter Net Income

In addition to record revenue and earnings, the Company achieved other key milestones in 2010. For the first time in Company history, over 50% of total revenues were generated in Mexico. In addition, the full year operating margin reached 20%, which was another first, while the Company also added its 600 th store during the fourth quarter of 2010. According to Mr. Wessel, "We are proud of these accomplishments. They are a credit to our diverse and talented team of managers and store associates and reflect their energy and commitment to excellence."

In looking at fourth quarter results, growth in net income was driven by a combination of strong loan demand, impressive retail sales and increased operating margins.  The rate of year-over-year pawn receivable growth, 57% in Mexico and 13% in the U.S., accelerated during the quarter as compared to growth rates at the end of the third quarter. In addition, the important fourth quarter retail sales were up 44% in Mexico and 8% in the U.S. Mr. Wessel noted, "The growth in pawn receivables drove a 30% increase in consolidated fourth quarter pawn service fee revenue, providing visibility for pawn revenue and earnings growth in the first half of 2011. In short, the current operating environment for our pawn stores is robust, given increasing consumer demand for micro-credit and deep-value retail products in both the United States and Mexico."

The Company continues to execute on its growth strategy in Mexico through new store openings and maturation of the existing, but largely immature, store base. The total store count in Mexico now stands at 386 locations, which represents 63% of the Company's consolidated total store count. According to Mr. Wessel, "We believe that First Cash has a significant competitive advantage in Mexico where we are by far the largest operator of full-service pawn stores. The 333 large format stores we have in Mexico allow us to lend on a broader array of products, including many popular consumer electronic items, appliances and power tools. In addition, the size of the stores and their prominent locations attract heavy retail traffic. We opened a total of 58 stores in Mexico this year, and our pipeline of stores slated for opening in 2011 is well-positioned."

2 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs