The following discussion of financial condition, results of operations,
liquidity and capital resources of FirstCash Holdings, Inc. and its wholly-owned
subsidiaries (together, the "Company") should be read in conjunction with the
Company's consolidated financial statements and accompanying notes included
under Part I, Item 1 of this quarterly report on Form 10-Q, as well as with the
audited consolidated financial statements and accompanying notes and
Management's Discussion and Analysis of Financial Condition and Results of
Operations included in the Company's Annual Report on Form 10-K for the year
ended December 31, 2021.

GENERAL

The Company's primary line of business is the operation of retail pawn stores,
also known as "pawnshops," which focus on serving cash and credit-constrained
consumers. The Company is the leading operator of pawn stores in the U.S. and
Latin America. Pawn stores help customers meet small short-term cash needs by
providing non-recourse pawn loans and buying merchandise directly from
customers. Personal property, such as jewelry, electronics, tools, appliances,
sporting goods and musical instruments, is pledged and held as collateral for
the pawn loans over the typical 30-day term of the loan. Pawn stores also
generate retail sales primarily from the merchandise acquired through collateral
forfeitures and over-the-counter purchases from customers.

With the Company's acquisition of AFF on December 17, 2021 (the "AFF
Acquisition"), the Company is also a leading provider of technology-driven,
retail POS payment solutions focused on serving credit-constrained consumers.
The Company's retail POS payment solutions business line consists solely of the
operations of AFF, which focuses on LTO products and facilitating other retail
financing payment options across a large network of traditional and e-commerce
merchant partners in all 50 states in the U.S., the District of Columbia and
Puerto Rico. AFF's retail partners provide consumer goods and services to their
customers and use AFF's LTO and retail finance solutions to facilitate payments
on such transactions. As one of the largest omni-channel providers of "no credit
required" payment options, AFF's technology set provides consumers with seamless
leasing and financing experiences in-store, online, in-cart and on mobile
devices.

The Company's two business lines are organized into three reportable segments.
The U.S. pawn segment consists of all pawn operations in the U.S. and the Latin
America pawn segment consists of all pawn operations in Mexico, Guatemala,
Colombia and El Salvador. The retail POS payment solutions segment consists of
the operations of AFF in the U.S. and Puerto Rico.


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OPERATIONS AND LOCATIONS

As of June 30, 2022, the Company operated 2,834 pawn store locations comprised
of 1,076 stores in 25 U.S. states and the District of Columbia, 1,669 stores in
32 states in Mexico, 60 stores in Guatemala, 15 stores in Colombia and 14 stores
in El Salvador.

The following tables detail pawn store count activity:

Three Months Ended June 30, 2022


                                                           U.S.                           Latin America                       Total
Total locations, beginning of period                          1,078                               1,751                           2,829
New locations opened (1)                                          -                                   9                               9
Locations acquired                                                1                                   -                               1

Consolidation of existing pawn locations
(2)                                                              (3)                                 (2)                             (5)

Total locations, end of period                                1,076                               1,758                           2,834

                                                                               Six Months Ended June 30, 2022
                                                           U.S.                           Latin America                       Total
Total locations, beginning of period                          1,081                               1,744                           2,825
New locations opened (1)                                          -                                  19                              19
Locations acquired                                                1                                   -                               1

Consolidation of existing pawn locations
(2)                                                              (6)                                 (5)                            (11)

Total locations, end of period                                1,076                               1,758                           2,834



(1)In addition to new store openings, the Company strategically relocated two
stores in the U.S. during the three months ended June 30, 2022. During the six
months ended June 30, 2022, the Company relocated two stores in the U.S. and one
store in Latin America.

(2)Store consolidations were primarily acquired locations over the past five
years which have been combined with overlapping stores and for which the Company
expects to maintain a significant portion of the acquired customer base in the
consolidated location.

As of June 30, 2022, AFF provided LTO and retail POS solutions for consumer goods and services through a nationwide network of approximately 7,600 active retail merchant partner locations.

CRITICAL ACCOUNTING ESTIMATES



The financial statements have been prepared in accordance with GAAP. The
significant accounting policies and estimates that the Company believes are the
most critical to aid in fully understanding and evaluating its reported
financial results have been reported in the Company's 2021 Annual Report on Form
10-K. There have been no changes to the Company's significant accounting
policies for the six months ended June 30, 2022.



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RESULTS OF OPERATIONS (unaudited)

Continuing Impact of COVID-19



The COVID-19 pandemic and its contributory impacts on the economy continue to
impact numerous aspects of the Company's business and the continuing long-term
impact to its business remains unknown. The extent to which COVID-19 continues
to impact the Company's operations, results of operations, liquidity and
financial condition will depend on future developments, which are highly
uncertain and cannot be predicted with confidence, including the unknown
duration and severity of the COVID-19 pandemic, which may be impacted by
variants of concern and the efficacy and adoption rate of the COVID-19 vaccines
in the jurisdictions in which the Company operates. In addition, changes in
economic conditions and consumer spending, rising inflation, increases in
interest rates and the actions taken to limit the economic impact of COVID-19
have and may continue to have a material adverse impact on demand for pawn loans
in future periods. Moreover, safety protocols, staffing constraints and supply
chain delays continue to impact operations and traffic counts for many
retailers, which include the Company's pawn stores and many of AFF's retail
merchant partners.

Constant Currency Results



The Company's management reviews and analyzes operating results in Latin America
on a constant currency basis because the Company believes this better represents
the Company's underlying business trends. Constant currency results are non-GAAP
financial measures, which exclude the effects of foreign currency translation
and are calculated by translating current-year results at prior-year average
exchange rates. The wholesale scrap jewelry sales in Latin America are priced
and settled in U.S. dollars and are not affected by foreign currency
translation, as are a small percentage of the operating and administrative
expenses in Latin America, which are billed and paid in U.S. dollars. Amounts
presented on a constant currency basis are denoted as such. See "Non-GAAP
Financial Information" for additional discussion of constant currency operating
results.

Business operations in Mexico, Guatemala and Colombia are transacted in Mexican
pesos, Guatemalan quetzales and Colombian pesos. The Company also has operations
in El Salvador, where the reporting and functional currency is the U.S. dollar.
The following table provides exchange rates for the Mexican peso, Guatemalan
quetzal and Colombian peso for the current and prior-year periods:

                                                           June 30,         

Favorable /


                                                      2022          2021    

(Unfavorable)


Mexican peso / U.S. dollar exchange rate:
End-of-period                                           20.0          19.8                     (1) %
Three months ended                                      20.0          20.1                      -  %
Six months ended                                        20.3          20.2                      -  %

Guatemalan quetzal / U.S. dollar exchange rate:
End-of-period                                            7.8           7.7                     (1) %
Three months ended                                       7.7           7.7                      -  %
Six months ended                                         7.7           7.7                      -  %

Colombian peso / U.S. dollar exchange rate:
End-of-period                                          4,127         3,757                    (10) %
Three months ended                                     3,914         3,690                     (6) %
Six months ended                                       3,914         3,622                     (8) %





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Operating Results for the Three Months Ended June 30, 2022 Compared to the Three Months Ended June 30, 2021

U.S. Pawn Segment

The following table details earning assets, which consist of pawn loans and
inventories, as well as other earning asset metrics of the U.S. pawn segment as
of June 30, 2022 compared to June 30, 2021 (dollars in thousands, except as
otherwise noted):

                                                                          As of June 30,
                                                                 2022                        2021                         Increase
U.S. Pawn Segment
Earning assets:
Pawn loans                                               $          271,255          $          203,838                          33  %
Inventories                                                         185,921                     144,083                          29  %
                                                         $          457,176          $          347,921                          31  %

Average outstanding pawn loan amount (in ones)           $              222          $              209                           6  %

Composition of pawn collateral:
General merchandise                                                      35  %                       35  %
Jewelry                                                                  65  %                       65  %
                                                                        100  %                      100  %

Composition of inventories:
General merchandise                                                      45  %                       49  %
Jewelry                                                                  55  %                       51  %
                                                                        100  %                      100  %

Percentage of inventory aged greater than one year                        1  %                        1  %

Inventory turns (trailing twelve months cost of
merchandise sales divided by average inventories)                    2.7 times                   3.1 times



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The following table presents segment pre-tax operating income and other
operating metrics of the U.S. pawn segment for the three months ended June 30,
2022 compared to the three months ended June 30, 2021 (dollars in thousands).
Operating expenses include salary and benefit expense of pawn-store-level
employees, occupancy costs, bank charges, security, insurance, utilities,
supplies and other costs incurred by the pawn stores.

                                                                    Three Months Ended
                                                                         June 30,
                                                            2022                          2021                          Increase
U.S. Pawn Segment
Revenue:
Retail merchandise sales                          $             195,369          $            173,254                         13  %
Pawn loan fees                                                   87,743                        66,942                         31  %
Wholesale scrap jewelry sales                                    15,673                         6,846                        129  %
Total revenue                                                   298,785                       247,042                         21  %

Cost of revenue:
Cost of retail merchandise sold                                 114,390                        95,599                         20  %
Cost of wholesale scrap jewelry sold                             13,282                         5,387                        147  %
Total cost of revenue                                           127,672                       100,986                         26  %

Net revenue                                                     171,113                       146,056                         17  %

Segment expenses:
Operating expenses                                              101,242                        93,574                          8  %
Depreciation and amortization                                     5,868                         5,347                         10  %
Total segment expenses                                          107,110                        98,921                          8  %

Segment pre-tax operating income                  $              64,003          $             47,135                         36  %

Operating metrics:
Retail merchandise sales margin                                      41  %                         45  %

Net revenue margin                                                   57  %                         59  %
Segment pre-tax operating margin                                     21  %                         19  %



Retail Merchandise Sales Operations

U.S. retail merchandise sales increased 13% to $195.4 million during the second
quarter of 2022 compared to $173.3 million for the second quarter of 2021.
Same-store retail sales increased 10% in the second quarter of 2022 compared to
the second quarter of 2021. The increase in total and same-store retail sales
was primarily due to increased inventory levels during the second quarter of
2022 compared to the second quarter of 2021. The gross profit margin on retail
merchandise sales in the U.S. was 41% in the second quarter of 2022 and 45% in
the second quarter of 2021. The decrease in the retail merchandise margins was
primarily due to lower inventory levels during the second quarter of 2021, which
limited the need for normal discounting.

U.S. inventories increased 29% from $144.1 million at June 30, 2021 to $185.9
million at June 30, 2022. The increase was primarily due to lower-than-normal
inventory balances at June 30, 2021 due to the impacts of the COVID-19 pandemic.
Inventories aged greater than one year in the U.S. were 1% at both June 30, 2022
and 2021.


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Pawn Lending Operations

U.S. pawn loan receivables as of June 30, 2022 increased 33% in total and on a
same-store basis compared to June 30, 2021. The increase in total and same-store
pawn receivables was primarily due to the continued recovery in pawn lending
demand during the second quarter of 2022 to pre-pandemic levels.

U.S. pawn loan fees increased 31% to $87.7 million during the second quarter of
2022 compared to $66.9 million for the second quarter of 2021. Same-store pawn
fees in the second quarter of 2022 increased 29% compared to the second quarter
of 2021. The increase in total and same-store pawn loan fees was primarily due
to the continued recovery in pawn loan receivables, as described above.

Segment Expenses

U.S. operating expenses increased 8% to $101.2 million during the second quarter
of 2022 compared to $93.6 million during the second quarter of 2021 while
same-store operating expenses increased 6% compared with the prior-year period.
The increase in total and same-store operating expenses was primarily due to
inflationary increases in wages and other certain operating costs and increased
store-level incentive compensation driven by increased revenues and segment
profit during the second quarter of 2022.

Segment Pre-Tax Operating Income



The U.S. segment pre-tax operating income for the second quarter of 2022 was
$64.0 million, which generated a pre-tax segment operating margin of 21%
compared to $47.1 million and 19% in the prior year, respectively. The increase
in the segment pre-tax operating income and margin reflected a 17% increase in
net revenue further leveraged by the 8% increase in operating expenses.

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Latin America Operations Segment



Latin American results of operations for the three months ended June 30, 2022
compared to the three months ended June 30, 2021 were not materially affected by
the change in the average Mexican peso to U.S. dollar exchange rate as it was
materially consistent with the prior-year period. The translated value of Latin
American earning assets as of June 30, 2022 compared to June 30, 2021 was
impacted by a 1% unfavorable change in the end-of-period value of the Mexican
peso compared to the U.S. dollar.

The following table details earning assets, which consist of pawn loans and
inventories as well as other earning asset metrics of the Latin America pawn
segment as of June 30, 2022 compared to June 30, 2021 (dollars in thousands,
except as otherwise noted):

                                                                                                                                        Constant Currency Basis
                                                                                                                               As of
                                                                                                                              June 30,
                                                     As of June 30,                                                                2022                   Increase
                                             2022                       2021                       Increase                  (Non-GAAP)                  (Non-GAAP)
Latin America Pawn Segment
Earning assets:
Pawn loans                           $         114,453                $   108,328                         6  %             $   115,482                             7  %
Inventories                                     74,607                     72,872                         2  %                  75,278                             3  %

                                     $         189,060                $   181,200                         4  %             $   190,760                             5  %

Average outstanding pawn loan amount
(in ones)                            $              80                $        80                         -  %             $        81                             1  %

Composition of pawn collateral:
General merchandise                                 69  %                      67  %
Jewelry                                             31  %                      33  %
                                                   100  %                     100  %

Composition of inventories:
General merchandise                                 70  %                      64  %
Jewelry                                             30  %                      36  %
                                                   100  %                     100  %

Percentage of inventory aged greater
than one year                                        1  %                   

1 %



Inventory turns (trailing twelve
months cost of merchandise sales
divided by average inventories)                 4.2 times                  4.4 times





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The following table presents segment pre-tax operating income and other
operating metrics of the Latin America pawn segment for the three months ended
June 30, 2022 compared to the three months ended June 30, 2021 (dollars in
thousands). Operating expenses include salary and benefit expense of
pawn-store-level employees, occupancy costs, bank charges, security, insurance,
utilities, supplies and other costs incurred by the pawn stores.

                                                                                                                                      Constant Currency Basis
                                                                                                                          Three Months
                                                                                                                             Ended
                                                     Three Months Ended                                                     June 30,
                                                          June 30,                                                            2022                       Increase
                                                2022                    2021                    Increase                   (Non-GAAP)                   (Non-GAAP)
Latin America Pawn Segment
Revenue:
Retail merchandise sales                    $ 102,888                $ 92,313                         11  %             $   102,841                              11  %
Pawn loan fees                                 46,324                  42,967                          8  %                  46,304                               8  %
Wholesale scrap jewelry sales                   8,175                   7,256                         13  %                   8,175                              13  %

Total revenue                                 157,387                 142,536                         10  %                 157,320                              10  %

Cost of revenue:
Cost of retail merchandise sold                64,919                  57,825                         12  %                  64,888                              12  %
Cost of wholesale scrap jewelry sold            6,613                   6,545                          1  %                   6,609                               1  %

Total cost of revenue                          71,532                  64,370                         11  %                  71,497                              11  %

Net revenue                                    85,855                  78,166                         10  %                  85,823                              10  %

Segment expenses:
Operating expenses                             48,053                  45,554                          5  %                  48,048                               5  %
Depreciation and amortization                   4,553                   4,534                          -  %                   4,559                               1  %
Total segment expenses                         52,606                  50,088                          5  %                  52,607                               5  %

Segment pre-tax operating income            $  33,249                $ 28,078                         18  %             $    33,216                              18  %

Operating metrics:
Retail merchandise sales margin                    37  %                   37  %                                                 37    %

Net revenue margin                                 55  %                   55  %                                                 55    %
Segment pre-tax operating margin                   21  %                   20  %                                                 21    %




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Retail Merchandise Sales Operations

Latin America retail merchandise sales increased 11% (also 11% on a constant
currency basis) to $102.9 million during the second quarter of 2022 compared to
$92.3 million for the second quarter of 2021. Same-store retail sales increased
11% (also 11% on a constant currency basis) during the second quarter of 2022
compared to the second quarter of 2021. The increase in total and same-store
retail sales was primarily due to increased inventory levels during the second
quarter of 2022 compared to the second quarter of 2021 and strong demand for
deep value goods. The gross profit margin on retail merchandise sales was 37%
during both the second quarter of 2022 and 2021.

Latin America inventories increased 2% (3% on a constant currency basis) from
$72.9 million at June 30, 2021 to $74.6 million at June 30, 2022. The increase
was primarily due to lower-than-normal inventory balances at June 30, 2021 due
to the impacts of the COVID-19 pandemic. Inventories aged greater than one year
in Latin America were 1% at both June 30, 2022 and 2021.

Pawn Lending Operations

Latin America pawn loan receivables increased 6% (7% on a constant currency
basis) as of June 30, 2022 compared to June 30, 2021, and on a same-store basis
pawn loan receivables increased 5% (6% on a constant currency basis). The
increase in total and same-store pawn receivables was primarily due to the
continued recovery in pawn lending demand during the second quarter of 2022
towards pre-pandemic levels. The Company attributes the slower growth in Latin
American pawn receivables in part to continued, elevated currency remittances
from the U.S.

Latin America pawn loan fees increased 8% (also 8% on a constant currency
basis), totaling $46.3 million during the second quarter of 2022 compared to
$43.0 million for the second quarter of 2021. Same-store pawn fees increased 7%
(also 7% on a constant currency basis) in the second quarter of 2022 compared to
the second quarter of 2021. The increase in total and same-store constant
currency pawn loan fees was primarily due to the continued recovery in pawn loan
receivables as described above.

Segment Expenses



Operating expenses increased 5% (also 5% on a constant currency basis) to $48.1
million during the second quarter of 2022 compared to $45.6 million during the
second quarter of 2021, reflecting continued store growth and modest
inflationary pressure on labor and other operating expenses in the current
quarter. Same-store operating expenses increased 5% (also 5% on a constant
currency basis) compared to the prior-year period.

Segment Pre-Tax Operating Income



The segment pre-tax operating income for the second quarter of 2022 was $33.2
million, which generated a pre-tax segment operating margin of 21% compared to
$28.1 million and 20% in the prior year, respectively. The increase in the
segment pre-tax operating income and margin reflected a 10% increase in net
revenue further leveraged by a 5% increase in operating expenses.

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Retail POS Payment Solutions Segment



The Company completed the AFF Acquisition on December 17, 2021, and the results
of operations of AFF have been consolidated since the acquisition date. As a
result of purchase accounting, AFF's as reported earning assets, consisting of
finance receivables and leased merchandise, contain significant fair value
adjustments. The fair value adjustments will be amortized over the life of the
finance receivables and lease contracts acquired at the time of acquisition.

The following table provides a detail of finance receivables as reported and as
adjusted to exclude the impacts of purchase accounting as of June 30, 2022 (in
thousands):

                                                                   As of June 30, 2022
                                                As Reported                                     Adjusted
                                                   (GAAP)              Adjustments             (Non-GAAP)
Finance receivables, before allowance for
loan losses (1)                               $     199,555          $     (14,970)         $     184,585
Less allowance for loan losses                      (73,936)                     -                (73,936)
Finance receivables, net                      $     125,619          $     

(14,970) $ 110,649

(1) As reported acquired finance receivables was recorded at fair value in conjunction with purchase accounting. Adjustment represents the difference between the original amortized cost basis and fair value of the remaining acquired finance receivables.



The following table provides a detail of leased merchandise as reported and as
adjusted to exclude the impacts of purchase accounting as of June 30, 2022 (in
thousands):

                                                                   As of June 30, 2022
                                                As Reported                                     Adjusted
                                                   (GAAP)              Adjustments             (Non-GAAP)
Leased merchandise, before allowance for
lease losses (1)                              $     188,025          $      15,174          $     203,199
Less allowance for lease losses                     (69,101)               (16,913)               (86,014)
Leased merchandise, net                       $     118,924          $      (1,739)         $     117,185



(1)  As reported acquired leased merchandise was recorded at fair value (which
includes estimates for charge-offs) in conjunction with purchase accounting.
Adjustment represents the difference between the original depreciated cost and
fair value of the remaining acquired leased merchandise.



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AFF's as reported results of operations contain significant purchase accounting
impacts. The following table presents segment pre-tax operating income as
reported and as adjusted to exclude the impacts of purchase accounting for the
three months ended June 30, 2022 (in thousands). Operating expenses include
salary and benefit expense of certain operations focused departments, merchant
partner incentives, bank and other payment processing charges, credit reporting
costs, information technology costs, advertising costs and other operational
costs incurred by AFF.

                                                                    Three 

Months Ended June 30, 2022


                                                         As Reported                                    Adjusted
                                                            (GAAP)                Adjustments          (Non-GAAP)
Retail POS Payment Solutions Segment
Revenue:
Leased merchandise income                            $    147,700               $          -          $  147,700
Interest and fees on finance receivables                   43,744                     11,514              55,258

Total revenue                                             191,444                     11,514             202,958

Cost of revenue:
Depreciation of leased merchandise                         82,605                     (1,598)             81,007
Provision for lease losses                                 38,035                          -              38,035
Provision for loan losses                                  26,800                          -              26,800

Total cost of revenue                                     147,440                     (1,598)            145,842

Net revenue                                                44,004                     13,112              57,116

Segment expenses:
Operating expenses                                         31,260                          -              31,260
Depreciation and amortization                                 699                          -                 699
Total segment expenses                                     31,959                          -              31,959

Segment pre-tax operating income                     $     12,045               $     13,112          $   25,157



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