FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended Commission File Number:
March 31, 1999 0-19133
FIRST CASH FINANCIAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
Delaware 75-2237318
(State of Incorporation) (IRS Employers
Identification Number
690 East Lamar, Suite 400
Arlington, Texas 76011
(Address of principal executive offices) (Zip Code)
(817)460-3947
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
--- ---
As of May 14, 1999, there were 8,624,034 shares of Company common stock, par
value $.01 per share ("Common Stock"), issued and outstanding.
Part I. Financial Information
Item 1. Financial Statements
<TABLE>
FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
March 31, December 31,
1999 1998
---- ----
(unaudited) (unaudited)
(in thousands, except
share data)
ASSETS
<S> <C> <C>
Cash and cash equivalents............................ $ 4,401 $ 4,458
Service charges receivable........................... 2,509 2,707
Receivables.......................................... 18,765 20,392
Inventories.......................................... 17,584 17,403
Income taxes receivable.............................. 386 1,471
Prepaid expenses and other current assets............ 3,102 2,908
-------- --------
Total current assets............................ 46,747 49,339
Property and equipment, net.......................... 9,568 9,146
Intangible assets, net............................... 54,709 54,494
Other................................................ 354 346
-------- --------
$111,378 $113,325
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt and
notes payable....................................... $ 2,135 $ 2,177
Accounts payable and accrued expenses................ 6,684 6,752
Income taxes payable................................. 905 989
-------- --------
Total current liabilities....................... 9,724 9,918
Revolving credit facility............................ 29,700 33,450
Long-term debt and notes payable, net of
current portion..................................... 6,286 6,283
Deferred income taxes................................ 3,116 2,966
-------- --------
48,826 52,617
-------- --------
Stockholders' equity:
Preferred stock; $.01 par value; 10,000,000
shares authorized; no shares issued or
outstanding...................................... - -
Common stock; $.01 par value; 20,000,000 shares
authorized; 9,094,993 and 9,089,305 shares
issued, respectively; 8,624,034 and 8,618,346
shares outstanding, respectively................. 91 91
Additional paid-in capital........................ 49,032 49,026
Retained earnings................................. 15,694 13,856
Common stock held in treasury, at cost,
470,959 shares................................... (2,265) (2,265)
-------- --------
62,552 60,708
-------- --------
$111,378 $113,325
======== ========
</TABLE>
The accompanying notes are an integral
part of these condensed consolidated financial statements.
<TABLE>
FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
-------------------------------------------
Three Months Ended March 31,
1999 1998
---- ----
(unaudited) (unaudited)
(in thousands, except per
share amounts)
Revenues:
<S> <C> <C>
Merchandise sales............................... $ 13,755 $ 9,625
Service charges................................. 8,959 4,805
Check cashing fees.............................. 561 -
Other........................................... 531 115
-------- --------
23,806 14,545
-------- --------
Cost of goods sold and expenses:
Cost of goods sold.............................. 9,116 6,532
Operating expenses.............................. 9,019 4,516
Interest expense................................ 580 499
Depreciation.................................... 341 221
Amortization.................................... 370 172
Administrative expenses......................... 1,391 1,005
-------- --------
20,817 12,945
-------- --------
Income before income taxes........................... 2,989 1,600
Provision for income taxes........................... 1,151 594
-------- --------
Net income........................................... $ 1,838 $ 1,006
======== ========
Basic earnings per share............................. $ .21 $ .23
Diluted earnings per share........................... $ .20 $ .17
</TABLE>
The accompanying notes are an integral part
of these condensed consolidated financial statements.
<TABLE>
FIRST CASH FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
Three Months Ended March 31,
1999 1998
---- ----
(unaudited) (unaudited)
(in thousands)
<S> <C> <C>
Cash flows from operating activities:
Net income........................................ $ 1,838 $ 1,006
Adjustments to reconcile net income to net
cash used for operating activities:
Depreciation and amortization................. 711 393
Changes in operating assets and liabilities,
net of effect of purchases of existing stores:
Service charges receivable.................... 231 206
Inventories................................... (28) 522
Prepaid expenses and other assets............. 883 (846)
Accounts payable and accrued expenses......... (76) 53
Current and deferred income taxes............. 66 334
-------- --------
Net cash flows from operating activities... 3,625 1,668
-------- --------
Cash flows from investing activities:
Net decrease in receivables....................... 1,818 1,326
Purchases of property and equipment............... (762) (267)
Acquisition of existing stores.................... (432) (2,772)
-------- --------
Net cash flows from investing activities.... 624 (1,713)
-------- --------
Cash flows from financing activities:
Proceeds from debt................................ 1,650 2,554
Repayments of debt................................ (5,962) (3,114)
Registration fees................................. (13) -
Proceeds from exercise of stock options........... 19 4
-------- --------
Net cash flows from financing activities.... (4,306) (556)
-------- --------
Decrease in cash and cash equivalents............... (57) (601)
Cash and cash equivalents at beginning of
the period......................................... 4,458 1,588
-------- --------
Cash and cash equivalents at end of the period...... $ 4,401 $ 987
======== ========
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest...................................... $ 585 $ 495
======== ========
Income taxes.................................. $ - $ 260
======== ========
</TABLE>
The accompanying notes are an integral part
of these condensed consolidated financial statements.
FIRST CASH FINANCIAL SERVICES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
(UNAUDITED)
Note 1 - Basis of Presentation
- ------------------------------
The accompanying unaudited condensed consolidated financial statements,
including the notes thereto, include the accounts of First Cash Financial
Services, Inc. (the "Company") and its wholly-owned subsidiaries. Such
unaudited consolidated financial statements are condensed and do not include all
disclosures and footnotes required by generally accepted accounting principles
for complete financial statements. Such interim period financial statements
should be read in conjunction with the Company's consolidated financial
statements which are included in the Company's July 31, 1998 Annual Report to
Stockholders. All significant intercompany accounts and transactions have been
eliminated in consolidation. The consolidated financial statements as of March
31, 1999 and December 31, 1998 and for the periods ended March 31, 1999 and 1998
are unaudited, but in management's opinion, include all adjustments (consisting
of only normal recurring adjustments) considered necessary to present fairly the
financial position, results of operations and cash flows for such interim
periods. Operating results for the period ended March 31, 1999 are not
necessarily indicative of the results that may be expected for the full fiscal
year.
Note 2 - Revolving Credit Facility
- ----------------------------------
The Company currently maintains a $40,000,000 long-term line of credit with
its senior commercial lender (the "Credit Facility"). At March 31, 1999,
$29,700,000 was outstanding under this Credit Facility and an additional
$10,300,000 was available to the Company pursuant to the available borrowing
base. The Credit Facility bears interest at the prevailing LIBOR rate (which
was approximately 5% at March 31, 1999) plus one percent, and matures on
November 1, 2000. Amounts available under the Credit Facility are limited to
325% of the Company's earnings before income taxes, interest, depreciation and
amortization for the trailing twelve months. Under the terms of the Credit
Facility, the Company is required to maintain certain financial ratios and
comply with certain technical covenants. The Company was in compliance with
these requirements and covenants during the three months ended March 31, 1999
and as of May 14, 1999.
Note 3 - Business Acquisitions
- ------------------------------
During the quarter ended March 31, 1999, the Company acquired two pawnshops
in El Paso, Texas. These acquisitions brought the Company's total number of
stores owned to 135 as of March 31, 1999. All acquisitions during the quarter
were financed primarily with proceeds from the Company's Credit Facility, and
seller-financed debt.
Note 4 - Earnings Per Share
- ---------------------------
The following table sets forth the computation of basic and diluted
earnings per share (in thousands, except per share data):
<TABLE>
Three Months Ended
------------------
March 31, March 31,
1999 1998
---- ----
<S> <C> <C>
Numerator:
Net income for calculating
basic earnings per share $ 1,838 $ 1,006
Plus interest expense,
net of taxes, relating to
convertible debentures - 118
-------- --------
Net income for calculating
diluted earnings per share $ 1,838 $ 1,124
======== ========
Denominator:
Weighted-average common
shares for calculating basic
earnings per share 8,619 4,467
Effect of dilutive securities:
Stock options and warrants 557 906
Contingently issuable shares
due to acquisitions 198 -
Convertible debentures - 1,402
-------- --------
Weighted-average common
shares for calculating diluted
earnings per share 9,374 6,775
======== ========
Basic earnings per share $ .21 $ .23
Diluted earnings per share $ .20 $ .17
</TABLE>
Note 5 - Stock Option and Warrant Exercises
- -------------------------------------------
During the three months ending March 31, 1999, the Company issued 4,000
shares of common stock relating to the exercise of outstanding stock options for
aggregate exercise proceeds of $19,000.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
- -------
The Company's pawnshop revenues are derived primarily from service charges
on pawn loans, and the sale of unredeemed goods, or "merchandise sales". Pawn
loans are made for a 30-day term with an automatic extension of 60 days in
Texas, South Carolina and Missouri, 30 days in Oklahoma and 15 days in Maryland
and Virginia. Pawn loans made in Washington, D.C. are made for a 30 day term
with no automatic extension. All pawn loans are collateralized by tangible
personal property placed in the custody of the Company. The annualized service
charge rates on pawn loans are set by state laws and range between 12% and 240%
in Texas and 36% and 240% in Oklahoma, depending on the size of the loan.
Service charge rates are 144% to 240% on an annualized basis in Maryland, with a
$6 monthly minimum charge. In Washington, D.C., loans up to $40 bear a flat $2
charge per month, while loans over $40 bear a 48% to 60% annualized rate.
Missouri pawn loans bear service and storage charges totaling 240% per year,
Virginia rates range from 120% to 180% annually, and South Carolina rates range
from 60% to 300%. In its Texas stores, the Company recognizes service charges
at the inception of the pawn loan at the lesser of the amount allowed by the
state law for the initial 30-day term or $15, in accordance with state law. In
Oklahoma, Maryland, Virginia, South Carolina, Missouri and Washington, D.C., the
Company recognizes service charges at the inception of the loan at the amount
allowed by law for the first 30 days. Pawn service charge income applicable to
the remaining term and/or extension period is not recognized until the loan is
repaid or renewed. If a loan is not repaid prior to the expiration of the
automatic extension period, if applicable, the property is forfeited to the
Company and held for resale.
As a result of the Company's policy of accruing pawn service charges only
for the initial 30-day term, unredeemed merchandise is transferred to inventory
at a value equal to the loan principal plus one-month's accrued interest. The
Company's accounting policy defers recognition of an amount of income equal to
the amount of pawn service charges relating to the extension period until the
loan is repaid or renewed, or until the merchandise is resold. This policy, in
the Company's opinion, lessens the risk that the inventory's cost will exceed
its realizable value when sold.
Revenues at the Company's check cashing stores are derived primarily from
check cashing fees, fees on payday advances, and fees from the sale of money
orders and wire transfers. Payday advances have a term of thirty days or less,
and carry a 15% service charge in both California and Washington, and a 10%
service charge in Illinois. The Company recognizes service charge income on
payday advances at the inception of the advance. Bad debts on payday advances
are charged to operating expense in the month that the items are returned by the
bank, and are credited to operating expense in the period the items are
subsequently collected.
Although the Company has had significant increases in revenues due
primarily to acquisitions and secondarily to new store openings, the Company has
also incurred increases in operating expenses attributable to the additional
stores and increases in administrative expenses attributable to building a
management team and the support personnel required by the Company's growth.
Operating expenses consist of all items directly related to the operation of the
Company's stores, including salaries and related payroll costs, rent, utilities,
advertising, property taxes, licenses, supplies, security and net returned
checks. Administrative expenses consist of items relating to the operation of
the corporate office, including the salaries of corporate officers, area
supervisors and other management, accounting and administrative costs, liability
and casualty insurance, outside legal and accounting fees and stockholder
related expenses.
RESULTS OF OPERATIONS
- ---------------------
Three months ended March 31, 1999 compared to the three months ended March 31,
1998
Total revenues increased 64% to $23,806,000 for the three months ended
March 31, 1999 ("the First Quarter of 1999") as compared to $14,545,000 for the
three months ended March 31, 1998 ("the First Quarter of 1998"). Of the
$9,261,000 increase in total revenues, $8,453,000 relates to revenues generated
by the 69 stores acquired or opened subsequent to January 1, 1998. The
remaining increase of $808,000 relates to the 6% same store revenue increase at
the 66 stores which were in operation during all of the First Quarter of 1998
and the First Quarter of 1999. Of the $9,261,000 increase in total revenues,
45%, or $4,130,000 was attributable to increased merchandise sales, 45%, or
$4,154,000 was attributable to increased service charges, 6%, or $561,000 was
attributable to increased check cashing fees, and the remaining increase of
$416,000 was attributable to an increase in other income. As a percentage of
total revenues, merchandise sales decreased from 66% to 58%, service charges
increased from 33% to 38%, check cashing fees increased from zero to 2%, and
other income increased from 1% to 2% during the First Quarter of 1999 as
compared to the First Quarter of 1998. The gross profit as a percentage of
merchandise sales increased to 34% during the First Quarter of 1999 compared to
32% during the First Quarter of 1998.
The aggregate receivables balance (pawn loans plus payday advances)
increased 52% from $12,316,000 as of March 31, 1998 to $18,765,000 as of March
31, 1999. Of the $6,449,000 increase, $6,173,000 was attributable to the
addition of 67 stores acquired subsequent to March 31, 1998. The remaining
increase was attributable to increases in aggregate loan balances of $276,000 at
the 68 stores in operation at both March 31, 1998 and March 31, 1999.
Operating expenses increased 100% to $9,019,000 during the First Quarter
of 1999 compared to $4,516,000 during the First Quarter of 1998, primarily as a
result of the addition of the 69 stores subsequent to January 1, 1998.
Administrative expenses increased 38% to $1,391,000 during the First Quarter of
1999 compared to $1,005,000 during the First Quarter of 1998, primarily due to
the addition of supervisory staff and other overhead related to the above
mentioned 69 stores acquired. Interest expense increased 16% from $499,000 in
the First Quarter of 1998 to $580,000 in the First Quarter of 1999, primarily
due to the overall higher level of debt relating to recent store acquisitions.
For the First Quarter of 1999 and the First Quarter of 1998, the Company's
tax provisions of 39% and 37%, respectively, of income before income taxes
differed from the statutory federal rate of 34% primarily due to state income
taxes, net of the federal tax benefit.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Company's operations and acquisitions have been financed with funds
generated from operations, bank borrowings, and seller-financed indebtedness
The Company currently maintains a $40,000,000 long-term line of credit with
its senior commercial lender (the "Credit Facility"). At March 31, 1999,
$29,700,000 was outstanding under this Credit Facility and an additional
$10,300,000 was available to the Company pursuant to the available borrowing
base. The Credit Facility bears interest at the prevailing LIBOR rate (which
was approximately 5% at March 31, 1999) plus one percent, and matures on
November 1, 2000. Amounts available under the Credit Facility are limited to
325% of the Company's earnings before income taxes, interest, depreciation and
amortization for the trailing twelve months. Under the terms of the Credit
Facility, the Company is required to maintain certain financial ratios and
comply with certain technical covenants. The Company was in compliance with
these requirements and covenants during the three months ended March 31, 1999
and as of May 14, 1999.
During the quarter ended March 31, 1999, the Company acquired two pawnshops
in El Paso, Texas. These acquisitions brought the Company's total number of
stores owned to 135 as of March 31, 1999. These acquisitions were financed
primarily with proceeds from the Company's Credit Facility, and seller-financed
debt.
As of March 31, 1999, the Company's primary sources of liquidity were
$4,401,000 in cash and cash equivalents, $2,509,000 in service charges
receivable, $18,765,000 in receivables, $17,584,000 in inventories and
$10,300,000 of available and unused funds under the Company's Credit Facility.
The Company had working capital as of March 31, 1999 of $37,023,000 and a total
liabilities to equity ratio of 0.78 to 1. During the First Quarter of 1999, the
Company received proceeds of $19,000 from the issuance of 4,000 shares of common
stock relating to the exercise of outstanding common stock options.
Net cash provided by operating activities for the Company during the First
Quarter of 1999 was $3,625,000 as compared with $1,668,000 provided by operating
activities during the First Quarter of 1998. Net cash provided by investing
activities during the First Quarter of 1999 was $624,000 as compared with
$1,713,000 used for investing activities during the First Quarter of 1998. Net
cash used for financing activities of $4,306,000 during the First Quarter of
1999 compares to net cash used for financing activities of $556,000 during the
First Quarter of 1998.
The profitability and liquidity of the Company are affected by the amount
of loans outstanding, which is controlled in part by the Company's loan
decisions. The Company is able to influence the frequency of forfeiture of
collateral by increasing or decreasing the amount loaned in relation to the
resale value of the pledged property. Tighter credit decisions generally result
in smaller loans in relation to the estimated resale value of the pledged
property and can thereby decrease the Company's aggregate loan balance and,
consequently, decrease pawn service charges. Additionally, small loans in
relation to the pledged property's estimated sale value tend to increase loan
redemptions and improve the Company's liquidity. Conversely, providing larger
loans in relation to the estimated sale value of the pledged property can result
in an increase in the Company's pawn service charge income. Also larger average
loan balances can result in an increase in loan forfeitures, which increases the
quantity of goods on hand and, unless the Company increases inventory turnover,
reduces the Company's liquidity. In each of the Company's last three fiscal
years, at least 70% of the amounts loaned were either paid in full or renewed.
The Company's renewal policy allows customers to renew pawn loans by repaying
all accrued interest on such pawn loans. In addition to these factors, the
Company's liquidity is affected by merchandise sales and the pace of store
expansions.
Management believes that the Credit Facility, current assets and cash
generated from operations will be sufficient to accommodate the Company's
current operations for at least the next twelve months. The Company has no
significant capital commitments as of May 14, 1999. The Company currently has
no written commitments for additional borrowings or future acquisitions;
however, the Company intends to continue to grow and will likely seek additional
capital to facilitate expansion. The Company will evaluate acquisitions, if
any, based upon opportunities, acceptable financing, purchase price, strategic
fit and qualified management personnel.
The Company intends to continue to engage in a plan of expansion through
existing store acquisitions and new store openings. While the Company
continually looks for, and is presented with, potential acquisition candidates,
the Company has no definitive plans or commitments for further acquisitions. If
the Company encounters an attractive opportunity to acquire or open a new store
in the near future, the Company will seek additional financing, the terms of
which will be negotiated on a case-by-case basis. Between April 1, 1999 and May
14, 1999, the Company opened one new check cashing store in Oregon. All store
openings and acquisitions during and after the quarter ended March 31, 1999 were
financed with proceeds from the Company's Credit Facility and with seller
financed debt.
The Company plans to open its first pawnshop in Mexico in May 1999, and
anticipates opening three additional pawnshops in Mexico by the end of August
1999. Additional locations in Mexico may be added in the future. The Company
has also invested significant capital and internal resources between January 1,
1999 and May 14, 1999 in an effort to upgrade and improve its internet website,
"firstcash.com", including adding pictures of all inventory available for sale.
The Company anticipates that this project will be completed by the end of June
1999.
YEAR 2000 ISSUE
- ---------------
The "Year 2000 Issue" is the result of computer programs that use two
digits instead of four to record the applicable year. Computer programs that
have date-sensitive software might recognize a date using "00" as the Year 1900
instead of the Year 2000. This could result in a system failure or
miscalculations causing disruptions of operations, including among other events,
a temporary inability to process transactions or engage in similar normal
business activities. The Year 2000 is a leap year, which may also lead to
incorrect calculations, functions or system failure. The Company has
established a committee to gather, test, and produce information about the
Company's operations systems impacted by the Year 2000 transition. The Company
has utilized both internal and external resources to identify, correct or
reprogram, and test systems for Year 2000 compliance.
Management currently believes that the Company has acquired all of the
hardware and software necessary to be able to bring the Company's own internally
developed point-of-sale operating system into Year 2000 compliance. Through
March 31, 1999, the Company has incurred costs of approximately $20,000 to
acquire the necessary hardware and software for its Year 2000 remediation. The
Company is currently in the process of installing such hardware and software,
and believes that its own point-of-sale system will be fully compliant by the
end of August 1999. The Company's contingency plan in the event of a widespread
Year 2000 failure includes operating the Company's stores on a manual, non
computerized basis.
Although the Company's Year 2000 remediation has not been completed,
management currently believes, based on available information, that the
completion of these matters will not require any additional material
expenditures, and that it will not have a material adverse impact on the
Company's financial position or it's results of operations. In addition, the
Company has contacted its significant vendors and suppliers to determine the
extent to which the Company may be vulnerable to those parties' failure to
remediate their own Year 2000 issues. While there can be no guarantee that the
systems of other companies with which the Company's systems interface will be
timely converted, or that a failure to convert by another company, or a
conversion that is incompatible with the Company's systems would not require the
Company to spend more time or money than anticipated, or even have a material
adverse effect on the Company, management currently believes that all of its
significant vendors and suppliers have achieved Year 2000 compliance.
FORWARD-LOOKING INFORMATION
- ---------------------------
This report contains certain statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act. Forward-looking statements can be identified by the
use of forward-looking terminology such as "believes," "expects," "may,"
"estimates," "will," "should," "plans," or "anticipates" or the negative
thereof, or other variations thereon, or comparable terminology, or by
discussions of strategy. Such statements include, but are not limited to, the
discussions of the Company's operations, liquidity, and capital resources.
Forward-looking statements are included in the "Liquidity and Capital Resources"
section of this annual report. 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. Generally,
these statements relate to business plans, strategies, anticipated strategies,
levels of capital expenditures, liquidity and anticipated capital funding needed
to effect the business plan. All phases of the Company's operations are
subject to a number of uncertainties, risks and other influences, many of which
are outside the control of the Company and cannot be predicted with any degree
of accuracy. Factors such as changes in regional or national economic
conditions, changes in governmental regulations, unforeseen litigation, changes
in interest rates or tax rates, significant changes in the prevailing market
price of gold, future business decisions and other uncertainties may cause
results to differ materially from those anticipated by some of the statements
made in this report. In light of the significant uncertainties inherent in the
forward-looking statements made in this report, the inclusion of such statements
should not be regarded as a representation by the Company or any other person
that the objectives and plans of the Company will be achieved. Security holders
are cautioned that such forward-looking statements involve risks and
uncertainties. The forward-looking statements contained this report speak only
as of the date of this report and the Company expressly disclaims any obligation
or undertaking to release any updates or revisions to any such statement to
reflect any change in the Company's expectations or any change in events,
conditions or circumstance on which any such statement is based.
PART II. OTHER INFORMATION
---------------------------
ITEM 2. Changes in securities
b. During the three months ending March 31, 1999, the Company issued 4,000
shares of common stock relating to the exercise of outstanding stock
options for an aggregate exercise price of $19,000.
ITEM 4. Submission of matters to a vote of security holders
On January 14, 1999, the Company held its annual meeting of stockholders
and its stockholders voted for (or ratified) the following proxy proposals
as a result of a majority of the Company's outstanding capital stock voting
in favor of the proposals. The proposals ratified at the January 14, 1999
annual stockholders' meeting are as follows:
1. The stockholders re-elected Phillip E. Powell as a director of First
Cash Financial Services, Inc.
2. The stockholders ratified the selection of Deloitte & Touche LLP as
independent auditors of the Company for the five months ending December 31,
1998 and for the year ending December 31, 1999.
3. The stockholders ratified the change in the Company's name from "First
Cash, Inc." to "First Cash Financial Services, Inc."
4. The stockholders ratified the 1999 Stock Option Plan.
ITEM 6. Exhibits and reports on Form 8-K
a. Exhibits
27.0 Financial Data Schedules (Edgar version only).
b. On January 20, 1999, the Company filed a Form 8-K to report a change in
the Company's name from "First Cash, Inc." to "First Cash Financial
Services, Inc."
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: May 14, 1999 FIRST CASH FINANCIAL SERVICES, INC.
-----------------------------------
(Registrant)
Phillip E. Powell Rick L. Wessel
- ---------------------- ------------------------
Phillip E. Powell Rick L. Wessel
Chairman of the Board and Chief Accounting Officer
Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
condensed consolidated balance sheets and condensed consolidated statements of
income found in the company's Form 10-Q for the year to date, and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 4,401
<SECURITIES> 0
<RECEIVABLES> 21,274
<ALLOWANCES> 0
<INVENTORY> 17,584
<CURRENT-ASSETS> 46,747
<PP&E> 14,018
<DEPRECIATION> 4,450
<TOTAL-ASSETS> 111,378
<CURRENT-LIABILITIES> 9,724
<BONDS> 0
0
0
<COMMON> 91
<OTHER-SE> 62,461
<TOTAL-LIABILITY-AND-EQUITY> 111,378
<SALES> 13,755
<TOTAL-REVENUES> 23,806
<CGS> 9,116
<TOTAL-COSTS> 9,116
<OTHER-EXPENSES> 11,121
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 580
<INCOME-PRETAX> 2,989
<INCOME-TAX> 1,151
<INCOME-CONTINUING> 1,838
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,838
<EPS-PRIMARY> .21
<EPS-DILUTED> .20
</TABLE>
