ARLINGTON, Texas, July 21, 2010 (GLOBE NEWSWIRE) -- First Cash Financial Services, Inc. (Nasdaq:FCFS) today announced record-setting revenue, net income and earnings per share for the three months ended June 30, 2010. The Company reported second quarter earnings per share from continuing operations of $0.36, a 20% increase over the prior year. The Company is increasing fiscal 2010 earnings guidance to a range of $1.58 to $1.62 per share. In addition, the Company announced that it completed, in early July, the acquisitions of six pawn stores in existing U.S. markets.

Earnings Highlights
  • Diluted earnings per share from continuing operations for the second quarter of 2010 were $0.36, an increase of 20%, compared to $0.30 in the second quarter of 2009. Net income from continuing operations for the second quarter increased by 22% to $11.2 million, compared to $9.1 million in the prior-year quarter.
  • Year-to-date diluted earnings per share from continuing operations for the six months ended June 30, 2010 were $0.72, an increase of 18% over the prior year-to-date period. Net income from continuing operations through June 30, 2010 was $22.2 million, compared to $18.4 million in the prior year.    
  • Total diluted earnings per share, including income from discontinued operations, were $0.38 for the second quarter of 2010 and $0.78 year-to-date. Earnings per share from discontinued operations, primarily the former Auto Master operation, were $0.02 for the second quarter and $0.06 year-to-date.

Revenue Highlights
  • Consolidated second quarter revenue increased by 19% over last year, totaling $98 million. Year-to-date revenue was $195 million, a 20% increase over the prior year. 
  • Same-store revenue increased by 12% for both the second quarter and year-to-date periods. By region, same-store pawn revenue increased in the current quarter by 14% in Mexico and 10% in the United States.
  • On a geographic basis, the Company's revenue continue to be diversified between the United States and Mexico, with 52% of second quarter revenue being generated in Mexico and 48% derived from domestic operations. In Mexico, second quarter revenue increased by 26% over last year, reflecting contributions from both new and maturing stores. U.S. pawn revenue increased by 12% in the second quarter, the result of continuing strong same-store revenue growth. 
  • On a product-line basis, second quarter revenue from service fees on pawn loans increased 25%, which reflected ongoing consumer demand for micro-credit products in both the United States and Mexico.  Overall pawn merchandise sales increased by 18% for the quarter, driven by especially strong retail sales in Mexico (up 39%) and jewelry scrap sales in the United States (up 27%).
  • Total short-term loan and credit services revenue increased by 15% in the second quarter; even with this increase, revenue from the Company's remaining short-term loan and credit services operations in the United States represented only 13% of total revenue.

Key Profitability Metrics
  • Pawn receivables, from which the Company earns service fees and future inventories for sale, totaled $61 million at June 30, 2010, an increase of 16%, driven largely by 26% pawn growth in Mexico. The significant increase in Mexico reflected continued store expansion and product demand.
  • The gross margin on retail pawn merchandise sales was 42% for the quarter, a sequential improvement over the first quarter margin of 41% and approaching the prior-year margin of 43%.   Margins on wholesale scrap jewelry sales were 33% for the second quarter, comparable to prior-year margins of 36%.  Inventory turns improved in the second quarter to 4.4x, compared to 4.0x in the prior year.
  • Even with the addition of 56 new stores over the past twelve months, consolidated store-level operating profit margins were 28% for the second quarter of 2010, which equaled the prior-year margin. The net operating margin (pre-tax income) was 18% for the second quarter of 2010 and 2009. Return on equity for the trailing twelve months was 21%, while return on assets was 17%.
  • Over 80% of the Company's customer receivables are pawn loans, which are fully collateralized. For the remainder of the receivable portfolio, which is comprised of short-term loans and credit services products, credit losses were reduced in the second quarter to 26% of related revenue, compared to 28% in the prior-year quarter. Credit losses declined over the trailing twelve months to 25% of related revenue, compared to 27% in the comparable prior-year period. 

New Store Openings
  • A total of 12 new store locations were opened during the second quarter of 2010, all of which were new pawn stores located in Mexico.  The majority of the new locations were in expansion markets in central Mexico, including the State of Mexico.
  • The Company now has 354 total store locations in 20 states in Mexico, an 18% increase in the year-over-year store count. The Company's store base in Mexico is still maturing, as 44% of the stores are less than three years old.

U.S. Pawn Acquisitions
  • In early July, the Company completed the acquisitions of six pawnshops in existing U.S. markets. The combined purchase price for the six stores was $7.6 million and was comprised of $5.6 million in cash and notes payable to the selling shareholders of $2.0 million. The transactions and operating results will be included in the consolidated results beginning in the third quarter of 2010.
  • With these acquisitions, the Company now has a total of 103 U.S. pawn stores, compared to 97 at the beginning of the year.

Financial Position & Liquidity
  • Earnings before interest, taxes, depreciation and amortization ("EBITDA") from continuing operations totaled $84 million for the trailing twelve months ended June 30, 2010, an increase of 20% over the comparable prior-year period. The EBITDA margin was 21% for the current and prior-year periods. A detailed reconciliation of EBITDA and free cash flow, both non-GAAP financial measures, is provided elsewhere in this release.
  • Free cash flow for the trailing twelve months was $55 million, compared to $38 million in the prior year.  The Company's free cash flow has been used to reduce outstanding debt by $48 million over the past twelve months. At the same time,  cash balances have increased to $46 million at June 30, 2010, compared to $22 million at the same time last year.
  • As of June 30, 2010, the Company had no amounts drawn on its $25 million unsecured revolving credit facility and only $7 million of total interest bearing debt is currently outstanding.  
  • As of June 30, 2010, the ratio of total liabilities to stockholders' equity was 0.2 to 1, compared to 0.4 to 1 at June 30, 2009.

2010 Outlook
  • The Company is increasing its fiscal 2010 guidance for earnings per share from continuing operations to a range of $1.58 to $1.62 per share, which represents 14% to 17% growth over 2009 earnings.  The previous guidance was $1.53 to $1.59 per share.
  • The majority of 2010 revenue will be derived from pawn operations, with only 12% to 14% of revenue expected to be from U.S. short-term loan and credit services operations.
  • In 2010, the Company is on target to add 65 to 75 new stores, the majority of which will be in Mexico. All of the anticipated 2010 store additions will be pawn stores.

Commentary & Analysis  

Mr. Rick Wessel, First Cash's Chief Executive Officer, commented on the Company's second quarter 2010 results, "We are very pleased with the record second quarter results, as our core pawn operations continue to reflect significant strength and continued growth. Loan demand in both the United States and Mexico remains strong, and the growth of retail sales, especially in Mexico, exceeded our expectations. As a result of the strong first half results and our forecast for the remainder of 2010, we are increasing our full-year earnings guidance for 2010."   

With regard to growth and expansion, Mr. Wessel noted, "The Company continues to successfully execute its pawn-focused growth strategy through consistent new store openings and opportunistic acquisitions. Through store openings and acquisitions through early July, we have added 32 stores this year, and we remain on target to add 65 to 75 total stores for the full year.  Our new stores in Mexico are ramping quickly to profitability, and the six U.S. pawn store acquisitions will complement the Company's existing base of pawn operations in its key U.S. markets."

The Company's cash flows and balance sheet continue to strengthen. All of the store openings and receivables growth is currently being funded from operating cash flows. There are no amounts outstanding on the Company's $25 million unsecured credit facility and net investable cash balances have increased almost $20 million year to date.  

In summary, Mr. Wessel said, "We believe that First Cash remains well-positioned to deliver continued profitability and long-term earnings growth.  Our business model has proven to be recession-resistant to date and demand for our credit and retail products continues to grow. We have taken significant steps to reduce the Company's exposure to regulatory risks and our collateralized lending model limits inherent credit risk. We believe that strong cash flows will continue to support growth through our robust store expansion strategy. In addition, our significantly under-levered balance sheet provides us tremendous strategic flexibility and will allow us to generate potential additional returns for our shareholders. We are optimistic about our future and remain committed to increasing shareholder value."  

Forward-Looking Information      

This release may contain forward-looking statements about the business, financial condition and prospects of 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," or "anticipates," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy or objectives. Forward-looking statements can also be identified by the fact that 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. Forward-looking statements in this release include, without limitation, the Company's expectations of earnings per share, earnings growth, income and losses related to discontinued operations, collections results, future tax benefits, expansion strategies, store openings, liquidity, cash flow, credit losses and related provisions, debt repayments, consumer demand for the Company's products and services, competition, regulatory risks, and other performance results. These statements are made to provide the public with management's current assessment of the Company's business. Although the Company believes that the expectations reflected in forward-looking statements are reasonable, there can be no assurances that such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. The forward-looking statements contained in this release speak only as of the date of this statement, 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. Certain factors may cause results to differ materially from those anticipated by some of the statements made in this release. Such factors are difficult to predict and many are beyond the control of the Company and may include changes in regional, national or international economic conditions, changes in the inflation rate, changes in the unemployment rate, changes in consumer purchasing, borrowing and repayment behaviors, changes in credit markets, the ability to renew and/or extend the Company's existing bank line of credit, credit losses, changes or increases in competition, the ability to locate, open and staff new stores, the availability or access to sources of inventory, inclement weather, the ability to successfully integrate acquisitions, the ability to hire and retain key management personnel, the ability to operate with limited regulation as a credit services organization, new federal, state or local legislative initiatives or governmental regulations (or changes to existing laws and regulations) affecting short-term/payday loan businesses, credit services organizations and pawn businesses (in both the United States and Mexico), changes in import/export regulations and tariffs or duties, unforeseen litigation, changes in interest rates, monetary inflation, changes in tax rates or policies, changes in gold prices, changes in energy prices, cost of funds, changes in foreign currency exchange rates, future business decisions, public health issues and other uncertainties. These and other risks, uncertainties and regulatory developments are further and more completely described in the Company's 2009 Annual Report on Form 10-K and updated in subsequent releases on Form 10-Q.

About First Cash

First Cash Financial Services, Inc. is a leading specialty retailer and provider of consumer financial services. Its pawn stores make small loans secured by pledged personal property and retail a wide variety of jewelry, electronics, tools and other merchandise. The Company's short-term loan locations provide various combinations of financial services products, including short-term loans, check cashing, and credit services. The Company owns and operates 577 stores in eight U.S. states and 20 states in Mexico. 

First Cash is a component company in both the Standard & Poor's SmallCap 600 Index ® and the Russell 2000 Index ® . First Cash's common stock (ticker symbol " FCFS") is traded on the Nasdaq Global Select Market, which has the highest initial listing standards of any stock exchange in the world based on financial and liquidity requirements. 

The First Cash Financial Services, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3365

STORE COUNT ACTIVITY

The following table details store openings and closings for the three and six months ended June 30, 2010: 
  U.S. Locations Mexico Locations Total Locations
Three Months Ended June 30, 2010      
Total locations, beginning of period  216  343  559
New locations opened  --   12  12
Locations closed or consolidated  --   (1)  (1)
Total locations, end of period  216  354  570
       
Six Months Ended June 30, 2010      
Total locations, beginning of period  217  329  546
New locations opened  --   26  26
Locations closed or consolidated  (1)  (1)  (2)
Total locations, end of period  216  354  570

At June 30, 2010, U.S. locations include 97 pawn stores and 119 short-term loan stores. Subsequent to quarter-end, the Company acquired six U.S. pawn stores, bringing the current total of U.S. pawn locations to 103. The Mexico locations as of June 30 are comprised of 305 large format pawn stores and 49 small format CashYa! pawn/short-term loan stores. The Company closed one under-performing short-term loan store located in Mexico during the second quarter of 2010. 

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 June 30, Six Months Ended June 30,
  2010 2009 2010 2009
  (in thousands, except per share amounts)
Revenue:        
Pawn merchandise sales $59,598  $50,457  $120,372  $100,063
Pawn service fees  23,518  18,840  46,340  36,448
Short-term loan and credit services fees  14,290  12,434  27,552  25,230
Other  270  278  625  690
   97,676  82,009  194,889  162,431
Cost of revenue:        
Cost of goods sold  36,022  29,962  73,550  58,506
Short-term loan and credit services loss provision  3,761  3,426  5,859  5,649
Other  48  49  82  82
   39,831  33,437  79,491  64,237
Net revenue  57,845  48,572  115,398  98,194
         
Expenses and other income:        
Store operating expenses  28,293  23,866  56,042  48,227
Administrative expenses  9,325  7,597  18,928  15,683
Depreciation and amortization  2,580  2,436  5,114  4,858
Interest expense  133  192  273  428
Interest income  (19)  (7)  (23)  (57)
   40,312  34,084  80,334  69,139
         
Income from continuing operations before income taxes  17,533  14,488  35,064  29,055
         
Provision for income taxes  6,336  5,340  12,823  10,700
Income from continuing operations  11,197  9,148  22,241  18,355
         
Income from discontinued operations, net of tax  586  2,402  1,624  4,438
Net income  $11,783  $11,550  $23,865  $22,793
         
Basic income per share:        
Income from continuing operations  $0.37  $0.31  $0.74  $0.63
Income from discontinued operations  0.02  0.08  0.05  0.15
Net income per basic share  $0.39  $0.39  $0.79  $0.78
         
Diluted income per share:        
Income from continuing operations  $0.36  $0.30  $0.72  $0.61
Income from discontinued operations   0.02  0.08  0.06  0.15
Net income per diluted share  $0.38  $0.38  $0.78  $0.76
         
Weighted average shares outstanding:        
Basic  30,121  29,338  30,051  29,298
Diluted  30,791  30,117  30,762  30,011
FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
       
  June 30, December 31,
  2010 2009 2009
    (in thousands)
ASSETS      
       
Cash and cash equivalents  $45,838  $22,206  $26,777
Service fees receivable  9,386  7,907  8,263
Pawn receivables  60,964  52,685  53,719
Short-term loan receivables, net of allowance  2,792  2,772  3,076
Inventories  34,871  30,748  34,437
Other  6,130  12,890  10,314
Total current assets  159,981  129,208  136,586
       
Property and equipment, net  51,433  44,777  47,980
Goodwill and intangible assets, net  70,582  76,530  70,252
Other  1,597  15,175  1,467
Total assets  $283,593  $265,690  $256,285
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Current portion of notes payable  $3,057  $4,612  $4,111
Revolving credit facility  --   43,500  -- 
Accounts payable and accrued liabilities  24,704  18,921  19,984
Income taxes payable and deferred tax liabilities  7,568  5,744  10,958
Other  --   819  238
Total current liabilities  35,329  73,596  35,291
       
Notes payable, net of current portion  4,008  7,067  5,265
Deferred tax liabilities  3,641  1,328  3,290
Total liabilities  42,978  81,991  43,846
       
Stockholders' equity  240,615  183,699  212,439
Total liabilities and stockholders' equity  $283,593  $265,690  $256,285

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

The following table details the components of revenue for the three months ended June 30, 2010, as compared to the three months ended June 30, 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 June 30,     Increase/(Decrease) Constant Currency
  2010 2009 Increase/(Decrease) Basis
Domestic revenue:          
Pawn retail merchandise sales  $15,380  $15,016  $364 2 % 2 %
Pawn scrap jewelry sales  8,339  6,550  1,789 27 % 27 %
Pawn service fees  9,802  8,468  1,334 16 % 16 %
Short-term loan and credit services fees  13,155  11,558  1,597 14 % 14 %
Other  266  267  (1) -- --
   46,942  41,859  5,083 12 % 12 %
           
Foreign revenue:          
Pawn retail merchandise sales  26,366  19,032  7,334 39 % 30 %
Pawn scrap jewelry sales  9,513  9,859  (346) (4)% (4)%
Pawn service fees  13,716  10,372  3,344 32 % 24 %
Short-term loan fees  1,135  876  259 30 % 22 %
Other  4  11  (7) (64)% (66)%
   50,734  40,150  10,584 26 % 20 %
           
Total revenue:          
Pawn retail merchandise sales  41,746  34,048  7,698 23 % 18 %
Pawn scrap jewelry sales  17,852  16,409  1,443 9 % 9 %
Pawn service fees  23,518  18,840  4,678 25 % 21 %
Short-term loan and credit services fees  14,290  12,434  1,856 15 % 14 %
Other  270  278  (8) (3)% (3)%
   $97,676  $82,009  $15,667 19 % 16 %

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

The following table details the components of revenue for the six months ended June 30, 2010, as compared to the six months ended June 30, 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. 
         
  Six Months Ended June 30,     Increase/(Decrease) Constant Currency
  2010 2009 Increase/(Decrease) Basis
Domestic revenue:          
Pawn retail merchandise sales  $33,838  $32,073  $1,765 6 % 6 %
Pawn scrap jewelry sales  18,405  13,318  5,087 38 % 38 %
Pawn service fees  20,574  17,165  3,409 20 % 20 %
Short-term loan and credit services fees  25,357  23,543  1,814 8 % 8 %
Other  614  672  (58) (9)% (9)%
   98,788  86,771  12,017 14 % 14 %
           
Foreign revenue:          
Pawn retail merchandise sales  48,676  35,676  13,000 36 % 25 %
Pawn scrap jewelry sales  19,453  18,996  457 2 % 2 %
Pawn service fees  25,766  19,283  6,483 34 % 22 %
Short-term loan fees  2,195  1,687  508 30 % 19 %
Other  11  18  (7) (39)% (44)%
   96,101  75,660  20,441 27 % 18 %
           
Total revenue:          
Pawn retail merchandise sales  82,514  67,749  14,765 22 % 16 %
Pawn scrap jewelry sales  37,858  32,314  5,544 17 % 17 %
Pawn service fees  46,340  36,448  9,892 27 % 21 %
Short-term loan and credit services fees  27,552  25,230  2,322 9 % 8 %
Other  625  690  (65) (9)% (10)%
   $194,889  $162,431  $32,458 20 % 16 %

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

The following table details pawn receivables, short-term loan receivables, and active CSO loans outstanding from an independent third-party lender as of June 30, 2010, as compared to June 30, 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 June 30,     Increase/(Decrease) Constant Currency
   2010  2009 Increase/(Decrease) Basis
Domestic customer receivables:          
Pawn receivables  $29,939  $28,056  $1,883 7 % 7 %
Short-term loan receivables, net of allowance  1,901  1,937  (36) (2)% (2)%
CSO short-term loans held by independent third-party (1)  12,833  10,910  1,923 18 % 18 %
   44,673  40,903  3,770 9 % 9 %
           
Foreign customer receivables:          
Pawn receivables  31,025  24,629  6,396 26 % 22 %
Short-term loan receivables, net of allowance  891  835  56 7 % 4 %
   31,916  25,464  6,452 25 % 22 %
           
Total customer receivables:          
Pawn receivables  60,964  52,685  8,279 16 % 14 %
Short-term loan receivables, net of allowance  2,792  2,772  20 1 % --
CSO short-term loans held by independent third-party (1)  12,833  10,910  1,923 18 % 18 %
   $76,589  $66,367  $10,222 15 % 14 %
           
(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.

FIRST CASH FINANCIAL SERVICES, INC. UNAUDITED NON-GAAP FINANCIAL INFORMATION

The Company uses certain financial calculations, such as free cash flow, EBITDA and constant currency results, which are not considered measures of financial performance under U.S. generally accepted accounting principles ("GAAP"). Items excluded from the calculation of free cash flow, EBITDA and constant currency results are significant components in understanding and assessing the Company's financial performance. Since free cash flow, EBITDA and constant currency results are not measures determined in accordance with GAAP and are thus susceptible to varying calculations, free cash flow, EBITDA and constant currency results, as presented, may not be comparable to other similarly titled measures of other companies. Free cash flow, EBITDA and constant currency results should not be considered as alternatives to net income, cash flow provided by or used in operating, investing or financing activities or other financial statement data presented in the Company's consolidated financial statements as indicators of financial performance or liquidity. Non-GAAP measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. 

Free Cash Flow

For purposes of its internal liquidity assessments, the Company considers free cash flow, which is defined as cash flow from the operating activities of continuing and discontinued operations reduced by purchases of property and equipment and net cash outflow from pawn and short-term/payday loan customer receivables. Free cash flow is commonly used by investors as a measure of cash generated by business operations that will be used to repay scheduled debt maturities and can be used to invest in future growth through new business development activities or acquisitions, repurchase stock, 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. The following table reconciles "net cash flow from operating activities" to "free cash flow" (unaudited, in thousands):
   
  Trailing Twelve Months Ended June 30,
  2010 2009
Cash flow from operating activities  $78,521  $67,207
Cash flow from investing activities:    
Pawn and short-term loan receivables  (7,702)  (11,478)
Purchases of property and equipment  (15,347)  (17,485)
Free cash flow  $55,472  $38,244

FIRST CASH FINANCIAL SERVICES, INC. UNAUDITED NON-GAAP FINANCIAL INFORMATION (CONTINUED)

EBITDA

EBITDA is commonly used by investors to assess a company's leverage capacity, liquidity and financial performance. The following table provides a reconciliation of income from continuing operations to EBITDA (unaudited, in thousands): 
   
  Trailing Twelve Months Ended June 30,
  2010 2009
     
Income from continuing operations  $45,737  $37,195
Adjustments:    
Income taxes  27,126  21,945
Depreciation and amortization  10,329  9,910
Interest expense  610  795
Interest income  (33)  (82)
     
Earnings from continuing operations before interest, taxes, depreciation and amortization  $83,769 $69,763
     
EBITDA margin calculated as follows:    
Total revenue from continuing operations  $398,412  $332,026
Earnings from continuing operations before interest, taxes, depreciation and amortization  83,769  69,763
EBITDA as a percent of revenue 21% 21%

Constant Currency Results

Certain performance metrics discussed in this release are presented on a "constant currency" basis, which may be considered a non-GAAP financial measurement of financial performance under GAAP. The Company's management uses constant currency results to evaluate operating results of certain business operations in Mexico, which are transacted primarily in Mexican pesos. Pawn scrap jewelry in Mexico is sold in U.S. dollars and, accordingly, does not require a constant currency adjustment. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in Mexican pesos 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. For balance sheet items, the closing exchange rate at the end of the applicable prior-year period (June 30, 2009) of 13.2 to 1 was used, compared to the current end of period (June 30, 2010) exchange rate of 12.8 to 1. For income statement items, the average closing daily exchange rate for the appropriate period was used. The average exchange rate for the prior-year quarter ended June 30, 2009 was 13.3 to 1, compared to the current quarter rate of 12.6 to 1. The average exchange rate for the prior-year six-month period ended June 30, 2009 was 13.9 to 1, compared to the current year-to-date rate of 12.7 to 1. 
CONTACT:  First Cash Financial Services, Inc.          Rick Wessel, Vice Chairman and Chief Executive Officer          Doug Orr, Executive Vice President and            Chief Financial Officer          (817) 505-3199          investorrelations@firstcash.com          www.firstcash.com

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