First Cash Financial Services, Inc. (FCFS)

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First Cash Reports 17% Increase in Second Quarter Earnings Per Share to $0.56; Growth in Pawn Loans and Retail Merchandise Sales Drive Record Earnings

ARLINGTON, Texas, Jul 18, 2012 (GlobeNewswire via COMTEX) -- 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, 2012.
Earnings Highlights

-- Diluted earnings per share from continuing operations for the second
quarter of 2012 were $0.56, an increase of 17% compared to $0.48 in the
second quarter of 2011.
-- Year-to-date earnings per share from continuing operations increased 16%
to $1.13, compared to $0.97 in the prior year.
-- Net income from continuing operations for the second quarter of 2012
increased to $16.3 million, up 8% over the prior-year quarter, while
year-to-date net income increased 9% to $33.9 million.


Revenue Highlights
-- Consolidated second quarter revenue increased 18% on a constant currency
basis to $133 million. Revenue growth rates are presented herein on a
constant currency basis, calculated by applying the currency exchange
rate from the comparable prior-year period to the current year's Mexican
peso-denominated revenue. The exchange rate for the second quarter of
2012 was 13.5 Mexican pesos / U.S. dollar versus 11.7 Mexican pesos /
U.S. dollar in the prior-year period.
-- Revenue from the Company's operations in Mexico increased by 22% on a
constant currency basis over the prior-year second quarter. U.S.
pawn-related revenues increased 15% versus the same period last year. By
country, 57% of second quarter revenue was generated in Mexico and 43%
was derived from domestic operations.
-- On a consolidated product-line basis, the primary driver of revenue
growth came from the Company's core store-based pawn operations. During
the second quarter, pawn fees increased by 21% on a constant currency
basis versus the prior-year second quarter, while pawn store merchandise
sales increased by 22%. Pawn fee growth in Mexico was particularly
strong, up 29%, and retail sales in Mexico, comprised primarily of
electronics, tools and appliances, increased 25% versus the same period
last year.
-- Wholesale scrap jewelry revenues during the second quarter of 2012
increased 13% compared to the same period last year. While the average
selling price for gold increased 12% over the prior-year quarter, volume
was essentially unchanged. Scrap jewelry operations accounted for only
7% of net revenue (gross profit) for the quarter.
-- Second quarter revenue from non-core short-term loan and credit services
(payday loan products) was flat compared to the prior-year quarter and
comprised only 9% of total revenue.
-- Consolidated same-store revenue increased by 6% (on a constant currency
basis) for the second quarter. By country, same-store revenue increased
5% in Mexico and 6% in the United States. On a regional basis in Mexico,
same store revenue increased by 13% in the interior markets, but was
partially offset by small declines in the border regions.


Pawn Metrics
-- Pawn loans in Mexico increased 22% (on a constant currency basis),
driven by continued growth in store counts and significant sequential
quarterly improvement in most border markets. Pawn receivables in the
U.S. increased by 17% versus the prior year, also driven by store count
growth and continued same-store revenue growth.
-- The consolidated gross margin on retail merchandise sales was 42% for
the second quarter, compared to 40% in the prior-year quarter. The
increase was driven by significantly improved retail margins in Mexico,
which increased 400 basis points versus the prior-year period. U.S.
retail margins remained consistent with the prior year. The consolidated
gross margin on wholesale scrap jewelry was 22% for the quarter and 25%
year-to-date, reflecting higher jewelry acquisition costs compared to
the prior year.
-- Consolidated annualized inventory turns continued to improve in the
second quarter to a record 4.5 turns versus 3.8 turns during the
comparable prior-year quarter, driven by improved inventory quality and
strong retail demand.
-- The overall composition of pawn collateral remained constant in both the
U.S. and Mexico. On a consolidated basis at June 30, 2012, 60% of total
loans were collateralized with hard goods (electronics, tools and
appliances) with the remainder collateralized by jewelry. In Mexico, 80%
of the Company's pawns were collateralized with hard goods, and only 20%
were collateralized with jewelry, compared to 78% and 22%, respectively,
one year ago. In the U.S., jewelry comprised 62% of pawn collateral as
of the quarter end, consistent with a 64% jewelry mix last year.


Profitability and Return Metrics
-- The Company's return on equity for the trailing twelve months increased
to a record 24% versus 21% in the respective prior-year period.
-- The return on assets over the trailing twelve months remained a
record-level 20% versus 18% in the respective prior-year period.
-- Consolidated net operating margin (pre-tax income) was 20% for the
trailing twelve month period, while store-level operating profit margins
were 29% for the trailing twelve month period.


Acquisitions and New Store Openings
-- In total, the Company added 49 pawn store locations during the second
quarter of 2012. Year-to-date, a total of 103 stores have been opened
or acquired, compared to 48 additions at this point last year.
-- In June 2012, the Company completed the acquisition of 24 pawn stores
located in the states of Colorado (13), Kentucky (7), Wyoming (3) and
Nebraska (1). The 24 acquired stores are all large format, full-service
stores. The Company also completed the acquisition of one large format
pawn store located in Maryland during the second quarter. Transaction
costs and integration expenses associated with these acquisitions
reduced second quarter earnings by approximately $0.01 per share.
-- U.S. pawn store openings in the second quarter also included two de novo
stores: one located in Texas and the other in Oklahoma. Year-to-date, a
total of 32 U.S. stores have been opened or acquired. As of June 30,
2012, First Cash had 263 stores in the U.S., of which 164 are large
format, full-service stores. The Company has increased the number of
large format pawn stores in the U.S. by 36% over the past twelve months.
-- Pawn store openings in the second quarter also included 22 de novo
stores in Mexico. Year-to-date, a total of 71 Mexico stores have been
added, which included 42 de novo openings and a 29-store acquisition in
January 2012. As of June 30, 2012, First Cash had 518 stores in Mexico,
of which 465 are large format, full-service stores. The Company has
increased the number of large format pawn stores in Mexico by 26% over
the past twelve months.
-- In June 2012, the Company increased its estimate of fiscal 2012 store
additions to be in the range of 125 to 135 total locations. All of the
2012 store additions are expected to be large format pawn stores.


Financial Position & Liquidity
-- EBITDA from continuing operations for the trailing twelve months was
$124 million, an increase of 16% versus the comparable prior
twelve-month period. EBITDA margins remained at a record 23% for the
trailing twelve months versus 22% for the prior-year period. Free cash
flow for the trailing twelve months increased to $55 million, compared
to $24 million in the comparable prior-year period. EBITDA and free cash
flow are defined in the detailed reconciliation of these non-GAAP
financial measures provided elsewhere in this release.
-- During the first half of 2012, the Company utilized cash on-hand,
operating cash flows and its credit facility to fund $71 million of pawn
store acquisitions, repurchase $61 million of common stock and invest
$10 million in capital expenditures.
-- In April 2012, the Company completed its 1,500,000 share buyback
authorization that was announced in December 2011. The 1,500,000 shares
were repurchased at a total cost of $61 million and at an average price
of $40.85 per share.
-- In June 2012, the Company expanded the term of its existing unsecured
bank credit facility from $50 million to $100 million. The facility
bears interest at the prevailing LIBOR rate plus a margin which varies
from 1.5% to 2.0%, depending on the Company's leverage ratio. The total
interest rate on the facility is currently 1.75% annually. At June 30,
2012, the Company had $72 million outstanding on the facility. Net debt
(outstanding debt less investable cash) remains less than 50% of EBITDA
for the trailing twelve-month period.


Fiscal 2012 Outlook
-- The Company is maintaining its current 2012 guidance for earnings per
diluted share of $2.70 to $2.75 which represents a 20% to 22% projected
earnings increase over fiscal 2011.
-- Approximately 91% to 92% of 2012 revenues are expected to be derived
from pawn operations, with the remainder expected to come from consumer
loan and credit services operations.


Commentary & Analysis
Mr. Rick Wessel, chief executive officer, commented on the second quarter results, "We are very pleased with our second quarter results, which were driven by strong growth in our core pawn business. We achieved several significant milestones during the quarter as we opened our 750th store, acquired 25 pawn stores in the U.S. and continued our de novo store growth in Mexico. During the quarter, we added operations in four additional states in the U.S. and one additional state in Mexico. We now operate in 24 of the 32 total states in Mexico."

"Customer demand in our full-service pawn stores remains robust. The consolidated 21% growth in pawn service fees was particularly impressive, as was the 22% increase in retail sales. Of particular importance is the 29% growth in pawn fees and the 25% growth in retail sales in Mexico. In addition, both retail margins and inventory turns improved significantly over the prior year, reflecting the continued strength of consumer demand, the quality of our inventory and the training and systems utilized by our sales associates. These results demonstrate the consistency and profitability of our business model across regions and business cycles, both in the U.S. and particularly in Mexico, where our pawn operations are now almost entirely focused on hard good (non-gold) lending and retail sales."

"The Company's strong operating cash flow and balance sheet provide us the ability to fund both organic growth and take advantage of acquisition opportunities as they arise. During the quarter, we doubled the size of our unsecured bank credit facility to $100 million, providing us with increased flexibility for growth. The significant pawn acquisitions that we completed this year position us well for the future. While we have invested over $70 million in acquisitions year-to-date and incurred associated non-recurring costs of approximately $0.02 per share, we believe that these acquisitions will become significantly accretive in 2013 and beyond."

"In summary, given our competitive strengths, growth platform and expanding customer base, we are excited about our ability to further grow our store count, revenues, margins and earnings. Our business model, coupled with our strong balance sheet, should position us to drive sustainable long-term growth in 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, expansion strategies, regulatory exposures, store openings, liquidity, cash flow, consumer demand for the Company's products and services, currency exchange rates, future share repurchases and the impact thereof, completion of disposition transactions and expected gains from the sale of such operations, earnings from acquisitions, the ability to successfully integrate acquisitions 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 in the market value of pawn collateral and merchandise inventories, 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 consumer loan businesses, credit services organizations and pawn businesses (in both the United States and Mexico), changes in import/export regulations and tariffs or duties, changes in anti-money laundering regulations, 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 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 international specialty retailer and provider of consumer financial services. Its retail pawn locations buy and sell a wide variety of jewelry, electronics, tools and other merchandise, and make small customer loans secured by pledged personal property. The Company's focus is serving cash and credit constrained consumers through deep value retailing and offering small loans and other financial products. In total, the Company owns and operates 783 stores in twelve U.S. states and 24 states in Mexico.

First Cash was named by Fortune Magazine as one of America's 100 fastest growing companies for 2011. First Cash is also a component company in both the Standard & Poor's SmallCap 600 Index(R) and the Russell 2000 Index(R). 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 for the three months ended June 30, 2012:

Pawn Locations
----------------- Consumer
Large Small Loan Total

Format Format Locations
(1) (2) (3) Locations
--------- ------ --------- ---------
United States:
Total locations, beginning of
period 137 27 72 236
New locations opened 2 -- -- 2

Locations acquired 25 -- -- 25
--------- ------ --------- ---------

Total locations, end of period 164 27 72 263
========= ====== ========= =========

Mexico:
Total locations, beginning of
period 443 19 34 496
New locations opened 22 -- -- 22

Locations acquired -- -- -- --
--------- ------ --------- ---------

Total locations, end of period 465 19 34 518
========= ====== ========= =========

Total:
Total locations, beginning of
period 580 46 106 732
New locations opened 24 -- -- 24

Locations acquired 25 -- -- 25
--------- ------ --------- ---------

Total locations, end of period 629 46 106 781
========= ====== ========= =========

(1) The large format locations include retail showrooms and accept a broad
array of pawn collateral including jewelry, electronics, appliances, tools
and other consumer hard goods. At June 30, 2012, 109 of the U.S. large
format pawn stores also offered consumer loans or credit services products,
which includes the 24 locations acquired from Mister Money.
(2) The small format locations typically have limited retail operations and
primarily accept jewelry and small electronic items as pawn collateral. At
June 30, 2012, all of the Texas and Mexico small format pawn stores also
offered consumer loans or credit services products.
(3) The Company's U.S. free-standing, small format consumer loan locations
offer a credit services product and are all located in Texas. The Mexico
locations offer small, short-term consumer loans. In addition to stores
shown on this chart, First Cash is also an equal partner in Cash & Go,
Ltd., a joint venture, which owns and operates 38 check cashing and
financial services kiosks located inside convenience stores in the state of
Texas.

The following table details store openings for the six months ended June 30, 2012:

Pawn Locations
----------------- Consumer
Large Small Loan Total

Format Format Locations
(1) (2) (3) Locations
--------- ------ --------- ---------
United States:
Total locations, beginning
of period 132 25 74 231
New locations opened 4 -- -- 4
Locations acquired 28 -- -- 28

Store format conversions -- 2 (2) --
--------- ------ --------- ---------
Total locations, end of
period 164 27 72 263
========= ====== ========= =========

Mexico:
Total locations, beginning
of period 394 19 34 447
New locations opened 42 -- -- 42

Locations acquired 29 -- -- 29
--------- ------ --------- ---------
Total locations, end of
period 465 19 34 518
========= ====== ========= =========

Total:
Total locations, beginning
of period 526 44 108 678
New locations opened 46 -- -- 46
Locations acquired 57 -- -- 57

Store format conversions -- 2 (2) --
--------- ------ --------- ---------
Total locations, end of
period 629 46 106 781
========= ====== ========= =========

(1) The large format locations include retail showrooms and accept a
broad array of pawn collateral including jewelry, electronics,
appliances, tools and other consumer hard goods. At June 30, 2012,
109 of the U.S. large format pawn stores also offered consumer loans
or credit services products, which includes the 24 locations acquired
from Mister Money.
(2) The small format locations typically have limited retail
operations and primarily accept jewelry and small electronic items as
pawn collateral. At June 30, 2012, all of the Texas and Mexico small
format pawn stores also offered consumer loans or credit services
products.
(3) The Company's U.S. free-standing, small format consumer loan
locations offer a credit services product and are all located in
Texas. The Mexico locations offer small, short-term consumer loans.
In addition to stores shown on this chart, First Cash is also an
equal partner in Cash & Go, Ltd., a joint venture, which owns and
operates 38 check cashing and financial services kiosks located
inside convenience stores in the state of Texas.



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

Three Months Ended Six Months Ended

June 30, June 30,
--------------------- ----------------------

2012 2011 2012 2011
---------- --------- ---------- ----------
(in thousands, except per share amounts)
Revenue:
Merchandise sales $ 86,307 $ 77,358 $ 173,213 $ 155,663
Pawn loan fees 33,932 30,564 68,844 59,536
Consumer loan and credit
services fees 12,304 12,410 25,291 25,634

Other revenue 235 249 546 586
---------- --------- ---------- ----------

Total revenue 132,778 120,581 267,894 241,419
---------- --------- ---------- ----------

Cost of revenue:
Cost of goods sold 54,579 48,879 108,894 97,121
Consumer loan and credit
services loss provision 3,093 2,716 5,481 4,973

Other cost of revenue 33 52 53 98
---------- --------- ---------- ----------

Total cost of revenue 57,705 51,647 114,428 102,192
---------- --------- ---------- ----------


Net revenue 75,073 68,934 153,466 139,227
---------- --------- ---------- ----------

Expenses and other income:
Store operating expenses 35,240 31,778 71,559 63,496
Administrative expenses 11,612 10,971 23,918 22,503
Depreciation and amortization 3,119 2,821 6,155 5,468
Interest expense 176 40 253 66

Interest income (36) (66) (117) (165)
---------- --------- ---------- ----------
Total expenses and other
income 50,111 45,544 101,768 91,368
---------- --------- ---------- ----------

Income from continuing
operations before income taxes 24,962 23,390 51,698 47,859


Provision for income taxes 8,613 8,186 17,837 16,750
---------- --------- ---------- ----------

Income from continuing
operations 16,349 15,204 33,861 31,109

Income from discontinued
operations, net of tax (1) -- 134 -- 6,785
---------- --------- ---------- ----------

Net income $ 16,349 $ 15,338 $ 33,861 $ 37,894
========== ========= ========== ==========

Basic income per share:
Income from continuing
operations (basic) $ 0.57 $ 0.49 $ 1.16 $ 1.00
Income from discontinued
operations (basic) -- -- -- 0.21
---------- --------- ---------- ----------

Net income per basic share $ 0.57 $ 0.49 $ 1.16 $ 1.21
========== ========= ========== ==========

Diluted income per share:
Income from continuing
operations (diluted) $ 0.56 $ 0.48 $ 1.13 $ 0.97
Income from discontinued
operations (diluted) -- -- -- 0.21
---------- --------- ---------- ----------

Net income per diluted share $ 0.56 $ 0.48 $ 1.13 $ 1.18
========== ========= ========== ==========

Weighted average shares
outstanding:
Basic 28,658 31,087 29,119 31,199
Diluted 29,404 31,869 29,878 31,972

(1) Represents non-recurring gain on the sale of the discontinued
Illinois consumer loan stores in March 2011.



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


December
June 30, 31,
---------------------- ----------

2012 2011 2011
---------- ---------- ----------
(in thousands)
ASSETS

Cash and cash equivalents $ 29,793 $ 68,259 $ 70,296
Pawn loan fees and service
charges receivable 13,159 11,862 10,842
Pawn loans 88,298 79,654 73,287
Consumer loans, net 2,035 1,072 858
Inventories 52,978 54,636 44,412

Other current assets 2,841 10,266 10,783
---------- ---------- ----------
Total current assets 189,104 225,749 210,478

Property and equipment, net 83,577 69,909 73,451
Goodwill, net 127,603 72,523 70,395

Other non-current assets 4,948 3,036 2,772
---------- ---------- ----------

Total assets $ 405,232 $ 371,217 $ 357,096
========== ========== ==========

LIABILITIES AND STOCKHOLDERS'
EQUITY

Current portion of notes
payable $ 1,605 $ 479 $ --
Accounts payable and accrued
liabilities 30,126 29,584 25,629
Income taxes payable and
deferred taxes payable 440 7,417 9,776
---------- ---------- ----------
Total current liabilities 32,171 37,480 35,405

Revolving unsecured credit
facility 71,600 -- --
Notes payable, net of current
portion 2,641 1,143 --

Deferred income tax liabilities 8,362 9,899 6,319
---------- ---------- ----------

Total liabilities 114,774 48,522 41,724
---------- ---------- ----------

Stockholders' equity
Preferred stock -- -- --
Common stock 383 383 383
Additional paid-in capital 148,474 147,204 147,649
Retained earnings 367,384 293,635 333,523
Accumulated other
comprehensive income (loss)
from cumulative foreign
currency translation
adjustments (11,788) 1,285 (13,463)
Common stock held in treasury,
at cost (213,995) (119,812) (152,720)
---------- ---------- ----------

Total stockholders' equity 290,458 322,695 315,372
---------- ---------- ----------
Total liabilities and
stockholders' equity $ 405,232 $ 371,217 $ 357,096
========== ========== ==========

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


The following table details the components of revenue for the three months ended June 30, 2012, as compared to the three months ended June 30, 2011 (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.
Increase/
(Decrease
Three Months Ended )

June 30, Constant
---------------------- Currency

2012 2011 Increase/(Decrease) Basis
---------- ---------- --------------------------- ---------
United States revenue:
Retail merchandise
sales $ 21,200 $ 18,254 $ 2,946 16 % 16 %
Scrap jewelry sales 11,745 9,744 2,001 21 % 21 %
Pawn loan fees 13,108 11,894 1,214 10 % 10 %
Credit services fees 11,208 11,114 94 1 % 1 %
Consumer loan fees 147 31 116 374 % 374 %

Other revenue 235 247 (12)
---------- ---------- ------------------- (5)% (5)%

57,643 51,284 6,359
---------- ---------- ------------------- 12 % 12 %

Mexico revenue:
Retail merchandise
sales 41,061 37,836 3,225 9 % 25 %
Scrap jewelry sales 12,301 11,524 777 7 % 7 %
Pawn loan fees 20,824 18,670 2,154 12 % 29 %
Consumer loan fees 949 1,265 (316) (25)% (13)%

Other revenue -- 2 (2)
---------- ---------- ------------------- (100)% (100)%

75,135 69,297 5,838
---------- ---------- ------------------- 8 % 22 %

Total revenue:
Retail merchandise
sales 62,261 56,090 6,171 11 % 22 %
Scrap jewelry sales 24,046 21,268 2,778 13 % 13 %
Pawn loan fees 33,932 30,564 3,368 11 % 21 %
Credit services fees 11,208 11,114 94 1 % 1 %
Consumer loan fees 1,096 1,296 (200) (15)% (4)%

Other revenue 235 249 (14)
---------- ---------- ------------------- (6)% (6)%

$ 132,778 $ 120,581 $ 12,197
========== ========== =================== 10 % 18 %

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


The following table details the components of revenue for the six months ended June 30, 2012, as compared to the six months ended June 30, 2011 (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.
Increase/
(Decrease
Six Months Ended )

June 30, Constant
---------------------- Currency

2012 2011 Increase/(Decrease) Basis
---------- ---------- --------------------------- ---------
United States revenue:
Retail merchandise
sales $ 46,262 $ 39,182 $ 7,080 18 % 18 %
Scrap jewelry sales 26,781 24,326 2,455 10 % 10 %
Pawn loan fees 27,647 24,401 3,246 13 % 13 %
Credit services fees 23,163 23,037 126 1 % 1 %
Consumer loan fees 178 127 51 40 % 40 %

Other revenue 546 584 (38)
---------- ---------- ------------------- (7)% (7)%

124,577 111,657 12,920
---------- ---------- ------------------- 12 % 12 %

Mexico revenue:
Retail merchandise
sales 78,643 71,263 7,380 10 % 23 %
Scrap jewelry sales 21,527 20,892 635 3 % 3 %
Pawn loan fees 41,197 35,135 6,062 17 % 31 %
Consumer loan fees 1,950 2,470 (520) (21)% (12)%

Other revenue -- 2 (2)
---------- ---------- ------------------- (100)% (100)%

143,317 129,762 13,555
---------- ---------- ------------------- 10 % 21 %

Total revenue:
Retail merchandise
sales 124,905 110,445 14,460 13 % 21 %
Scrap jewelry sales 48,308 45,218 3,090 7 % 7 %
Pawn loan fees 68,844 59,536 9,308 16 % 24 %
Credit services fees 23,163 23,037 126 1 % 1 %
Consumer loan fees 2,128 2,597 (469) (18)% (9)%

Other revenue 546 586 (40)
---------- ---------- ------------------- (7)% (7)%

$ 267,894 $ 241,419 $ 26,475
========== ========== =================== 11 % 17 %

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


The following table details customer loans and inventories held by the Company and active CSO credit extensions from an independent third-party lender as of June 30, 2012, as compared to June 30, 2011 (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.
Increase/
(Decrease
Balance at )

June 30, Constant
--------------------- Currency

2012 2011 Increase/(Decrease) Basis
---------- --------- ---------------------------- ---------
United States:
Pawn loans $ 42,596 $ 36,383 $ 6,213 17 % 17 %
CSO credit extensions
held by independent
third-party (1) 13,462 12,167 1,295 11 % 11 %

Other consumer loans 1,242 46 1,196
---------- --------- ------------------- 2,600 % 2,600 %

57,300 48,596 8,704
---------- --------- ------------------- 18 % 18 %

Mexico:
Pawn loans 45,702 43,271 2,431 6 % 22 %

Other consumer loans 793 1,026 (233)
---------- --------- ------------------- (23)% (10)%

46,495 44,297 2,198
---------- --------- ------------------- 5 % 22 %

Total:
Pawn loans 88,298 79,654 8,644 11 % 20 %
CSO credit extensions
held by independent
third-party (1) 13,462 12,167 1,295 11 % 11 %

Other consumer loans 2,035 1,072 963
---------- --------- ------------------- 90 % 102 %

$ 103,795 $ 92,893 $ 10,902
========== ========= =================== 12 % 20 %


Pawn inventories:
U.S. pawn inventories $ 24,415 $ 20,030 $ 4,385 22 % 22 %

Mexico pawn inventories 28,563 34,606 (6,043)
---------- --------- ------------------- (17)% (4)%

$ 52,978 $ 54,636 $ (1,658)
========== ========= =================== (3)% 5 %

(1) CSO amounts are comprised of the principal portion of active CSO extensions of credit
by 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.
Earnings Before Interest, Taxes, Depreciation and Amortization

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 (in thousands):

Trailing Twelve Months
Ended

June 30,
----------------------

2012 2011
---------- ----------

Income from continuing operations $ 73,617 $ 62,091
Adjustments:
Income taxes 38,425 33,687
Depreciation and amortization 11,701 10,837
Interest expense 322 184

Interest income (230) (239)
---------- ----------
Earnings from continuing operations
before interest, taxes, depreciation
and amortization $ 123,835 $ 106,560
========== ==========

EBITDA margin calculated as follows:
Total revenue from continuing
operations $ 547,777 $ 475,008
Earnings from continuing operations
before interest, taxes, depreciation
and amortization 123,835 106,560
---------- ----------

EBITDA as a percentage of revenue 23% 22%
========== ==========

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


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 consumer loans. 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" (in thousands):

Trailing Twelve
Months Ended

June 30,
--------------------

2012 2011
--------- ---------
Cash flow from operating activities,
including discontinued operations $ 84,693 $ 75,938
Cash flow from investing activities:
Pawn and consumer loans (5,620) (26,156)

Purchases of property and equipment (23,720) (25,872)
--------- ---------

Free cash flow $ 55,353 $ 23,910
========= =========

Constant Currency
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, 2011) of 11.8 to 1 was used, compared to the current end of period (June 30, 2012) exchange rate of 13.7 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, 2011 was 11.7 to 1, compared to the current-quarter rate of 13.5 to 1. The average exchange rate for the prior-year six-month period ended June 30, 2011 was 11.9 to 1, compared to the current year-to-date rate of 13.3 to 1.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: First Cash Financial Services, Inc.

(Logo: http://media.primezone.com/cache/8120/int/3774.jpg)

By Staff

CONTACT: CONTACT: Gar Jackson
Phone: [phone]
Email: [e-mail]

Rick Wessel, Chairman and Chief Executive Officer
Doug Orr, Executive Vice President and Chief Financial Officer
Phone: [phone]
Email: [e-mail]
Website: www.firstcash.com

(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
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INDUSTRY KEYWORD: Financial Services
SUBJECT CODE: EARNINGS
BANKING
Earnings Releases and Operating Results