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ARLINGTON, Texas, June 25, 2013 (GLOBE NEWSWIRE) -- First Cash Financial Services, Inc. (Nasdaq:FCFS) today announced the acquisition of 19 large format U.S. pawn stores located in Texas. The acquired locations are in the Houston, Dallas and Fort Worth markets, operating primarily under the Valu + Pawn brand.
Rick Wessel, chief executive officer of First Cash, stated, "We are pleased to add Valu + Pawn to the First Cash family of operations. This acquisition provides us a new and meaningful presence in the large and growing Houston market, while expanding on our existing store base in the Dallas/Fort Worth area. Valu + Pawn has developed profitable, high-performing locations with experienced personnel, large pawn receivable balances and significant operating cash flows. We expect meaningful earnings accretion from the transaction, especially beginning in 2014."
The price for the all-cash asset purchase transaction was approximately $70 million, which was funded primarily with the Company's revolving credit facility. The operations and earnings of the Valu + Pawn stores have been consolidated into First Cash effective with the closing of the transaction on June 25, 2013.
Including the acquired stores, First Cash now operates a total of 866 locations and has increased its store count by 17% since the beginning of June a year ago. The Company currently operates in twelve U.S. states and 24 states in Mexico.
The Company projects second quarter earnings to be in the range of $0.52 to $0.55 per diluted share. This estimate includes approximately $0.04 per share of non-recurring acquisition expenses, primarily associated with the Valu + Pawn transaction. Excluding the non-recurring acquisition expenses, the Company anticipates second quarter earnings to be in the range of $0.56 to $0.59 per share. The expected second quarter earnings results reflect the negative impact on revenue and scrap jewelry margins caused by significantly lower gold prices and the weaker Mexican peso.