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First Cash Reports 42% Increase In Fourth Quarter Net Income

(2)     The smaller format locations typically have limited retail operations and accept only jewelry and small electronic items as pawn collateral. At December 31, 2010, all of the U.S. and Mexico small format pawn stores also offered short-term loans or credit services products.

First Cash is also an equal partner in Cash & Go, Ltd., a joint venture, which owns and operates 39 check cashing and financial services kiosks located inside convenience stores in the United States. 

FIRST CASH FINANCIAL SERVICES, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

  Three Months Ended Twelve Months Ended
  December 31, December 31,
  2010 2009 2010 2009
  (in thousands, except per share amounts)
Revenue:        
Pawn merchandise sales $ 83,600 $ 73,372 $ 269,909 $ 229,493
Pawn service fees  29,427  22,566  102,145  80,805
Short-term loan and credit services fees  16,340  14,126  57,943  51,488
Other  272  282  1,150  1,272
   129,639  110,346  431,147  363,058
Cost of revenue:        
Cost of goods sold  49,502  45,287  162,045  138,090
Short-term loan and credit services loss provision  4,453  3,868  14,740  13,369
Other  36  35  157  162
   53,991  49,190  176,942  151,621
Net revenue  75,648  61,156  254,205  211,437
         
Expenses and other income:        
Store operating expenses  32,691  27,574  118,254  100,647
Administrative expenses  11,298  9,539  40,522  34,281
Depreciation and amortization  2,877  2,677  10,506  10,067
Interest expense  44  163  391  765
Interest income  (52)  (7)  (97)  (67)
   46,858  39,946  169,576  145,693
         
Income from continuing operations before income taxes  28,790  21,210  84,629  65,744
         
Provision for income taxes  10,215  8,135  30,374  24,588
Income from continuing operations  18,575  13,075  54,255  41,156
         
Income from discontinued operations, net of tax  981  1,922  3,403  8,608
Net income $ 19,556 $ 14,997 $ 57,658 $ 49,764
         
Basic income per share:        
Income from continuing operations $ 0.61 $ 0.44 $ 1.79 $ 1.39
Income from discontinued operations  0.03  0.06  0.11  0.29
Net income per basic share $ 0.64 $ 0.50 $ 1.90 $ 1.68
         
Diluted income per share:        
Income from continuing operations $ 0.59 $ 0.43 $ 1.75 $ 1.36
Income from discontinued operations   0.03  0.06  0.11  0.29
Net income per diluted share $ 0.62 $ 0.49 $ 1.86 $ 1.65
         
Weighted average shares outstanding:        
Basic  30,712  29,838  30,266  29,559
Diluted  31,666  30,421  31,058  30,191
         

FIRST CASH FINANCIAL SERVICES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

  December 31,
  2010 2009
  (in thousands)
ASSETS    
     
Cash and cash equivalents $ 67,240 $ 26,777
Service fees receivable  10,685  8,185
Pawn receivables  70,488  53,719
Short-term loan receivables  3,035  3,076
Inventories  47,406  34,437
Other  6,144  10,392
Total current assets  204,998  136,586
     
Property and equipment, net  58,425  47,980
Goodwill, net  76,355  69,731
Other  2,668  1,988
Total assets $ 342,446 $ 256,285
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current portion of notes payable $ 465 $ 4,111
Accounts payable and accrued liabilities  27,730  20,222
Income taxes payable and deferred tax liabilities  6,427  10,958
Total current liabilities  34,622  35,291
     
Notes payable, net of current portion  1,386  5,265
Deferred tax liabilities  8,434  3,290
Total liabilities  44,442  43,846
     
Stockholders' equity  298,004  212,439
Total liabilities and stockholders' equity $ 342,446 $ 256,285
     

FIRST CASH FINANCIAL SERVICES, INC. OPERATING INFORMATION (UNAUDITED)

The following table details the components of revenue for the three months ended December 31, 2010, as compared to the three months ended December 31, 2009 (in thousands). Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates, which is more fully described elsewhere in this release. 

  Three Months Ended     Increase/(Decrease)
  December 31,     Constant Currency
  2010 2009 Increase/(Decrease) Basis
Domestic revenue:          
Pawn retail merchandise sales $ 19,943 $ 18,537 $ 1,406 8 % 8 %
Pawn scrap jewelry sales  10,120  12,165  (2,045) (17)% (17)%
Pawn service fees  12,475  11,084  1,391 13 % 13 %
Short-term loan and          
credit services fees  15,080  13,003  2,077 16 % 16 %
Other  272  270  2 1 % 1 %
   57,890  55,059  2,831 5 % 5 %
           
Foreign revenue:          
Pawn retail merchandise sales  40,745  28,300  12,445 44 % 37 %
Pawn scrap jewelry sales  12,792  14,370  (1,578) (11)% (11)%
Pawn service fees  16,952  11,482  5,470 48 % 40 %
Short-term loan fees  1,260  1,123  137 12 % 6 %
Other  --   12  (12) (100)% (100)%
   71,749  55,287  16,462 30 % 24 %
           
Total revenue:          
Pawn retail merchandise sales  60,688  46,837  13,851 30 % 25 %
Pawn scrap jewelry sales  22,912  26,535  (3,623) (14)% (14)%
Pawn service fees  29,427  22,566  6,861 30 % 27 %
Short-term loan and          
credit services fees  16,340  14,126  2,214 16 % 15 %
Other  272  282  (10) (4)% (4)%
  $ 129,639 $ 110,346 $ 19,293 17 % 15 %
           

FIRST CASH FINANCIAL SERVICES, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)

The following table details the components of revenue for the twelve months ended December 31, 2010, as compared to the twelve months ended December 31, 2009 (in thousands). Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year results at prior year average exchange rates, which is more fully described elsewhere in this release. 

  Twelve Months Ended     Increase/(Decrease)
  December 31,     Constant Currency
  2010 2009 Increase/(Decrease) Basis
Domestic revenue:          
Pawn retail merchandise sales $ 70,980 $ 66,376 $ 4,604 7 % 7 %
Pawn scrap jewelry sales  39,416  34,454  4,962 14 % 14 %
Pawn service fees  44,071  38,323  5,748 15 % 15 %
Short-term loan and          
credit services fees  53,318  47,648  5,670 12 % 12 %
Other  1,138  1,211  (73) (6)% (6)%
   208,923  188,012  20,911 11 % 11 %
           
Foreign revenue:          
Pawn retail merchandise sales  117,556  84,566  32,990 39 % 30 %
Pawn scrap jewelry sales  41,957  44,097  (2,140) (5)% (5)%
Pawn service fees  58,074  42,482  15,592 37 % 28 %
Short-term loan fees  4,625  3,840  785 20 % 13 %
Other  12  61  (49) (80)% (82)%
   222,224  175,046  47,178 27 % 20 %
           
Total revenue:          
Pawn retail merchandise sales  188,536  150,942  37,594 25 % 20 %
Pawn scrap jewelry sales  81,373  78,551  2,822 4 % 4 %
Pawn service fees  102,145  80,805  21,340 26 % 22 %
Short-term loan and          
credit services fees  57,943  51,488  6,455 13 % 12 %
Other  1,150  1,272  (122) (10)% (10)%
  $ 431,147 $ 363,058 $ 68,089 19 % 16 %
           

FIRST CASH FINANCIAL SERVICES, INC. OPERATING INFORMATION (CONTINUED) (UNAUDITED)

The following table details pawn receivables, short-term loan receivables, active CSO loans outstanding from an independent third-party lender and inventories as of December 31, 2010, as compared to December 31, 2009 (in thousands).  Constant currency results exclude the effects of foreign currency translation and are calculated by translating current year balances at the prior year end-of-period exchange rate, which is more fully described elsewhere in this release. 

  Balance at     Increase/(Decrease)
  December 31,     Constant Currency
  2010 2009 Increase/(Decrease) Basis
Domestic customer receivables:          
Pawn receivables $ 35,319 $ 31,277 $ 4,042 13 % 13 %
Short-term loan receivables,           
net of allowance  2,079  2,189  (110) (5)% (5)%
CSO short-term loans held           
by independent third-party (1)  14,587  11,837  2,750 23 % 23 %
   51,985  45,303  6,682 15 % 15 %
           
Foreign customer receivables:          
Pawn receivables  35,169  22,442  12,727 57 % 49 %
Short-term loan receivables,           
net of allowance  956  887  69 8 % 2 %
   36,125  23,329  12,796 55 % 47 %
           
Total customer receivables:          
Pawn receivables  70,488  53,719  16,769 31 % 28 %
Short-term loan receivables,           
net of allowance  3,035  3,076  (41) (1)% (3)%
CSO short-term loans held           
by independent third-party (1)  14,587  11,837  2,750 23 % 23 %
  $ 88,110 $ 68,632 $ 19,478 28 % 26 %
           
           
Pawn inventories:          
Domestic pawn inventories $ 19,730 $ 17,285 $ 2,445 14 % 14 %
Foreign pawn inventories  27,676  17,152  10,524 61 % 53 %
  $ 47,406 $ 34,437 $ 12,969 38 % 33 %
           

(1)   CSO short-term loans outstanding are comprised of the principal portion of active CSO loans outstanding from an independent third-party lender, which are not included on the Company's balance sheet, net of the Company's estimated fair value of its liability under the letters of credit guaranteeing the loans.

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