 FORT WORTH, Texas, July 22, 2020 GLOBE NEWSWIRE -- FirstCash, Inc. the Company Nasdaq: FCFS, the leading international operator of over 2,700 retail pawn stores in the U.S. and Latin America, today announced operating results for the three and six month periods ended June 30, 2020, and an update on the impact of COVID-19. The Company also announced its exit from all unsecured consumer lending operations effective June 30, 2020. In addition, the Board of Directors declared a 0.27 per share quarterly cash dividend to be paid in August 2020. Mr. Rick Wessel, chief executive officer, stated, In these challenging times, we have been relentless in our efforts to safely serve customers while also protecting our employees. Today, over 99 of the Companys 2,745 stores in the United States and Latin America are open and providing essential financial services and products in our communities. As always, we are proud and appreciative of the dedication and resilience demonstrated by all of our team members.Our second quarter results demonstrated the inherent diversification and uniqueness of the pawnshop business model, which generates revenues from both specialty retail operations and small-dollar, non-recourse lending. Second quarter retail sales were especially robust in the U.S., driven by our ability to remain open and meet the significant customer demand for popular stay-at-home products such as consumer electronics and sporting goods. Consistent with the trends being experienced by other consumer lenders, originations of new pawn loans fell significantly in April due to the general economic lock-down and rapid deployment of government stimulus programs. While not fully recovered, lending demand began rebounding in May and continues to date.Cash flows were particularly impressive during the quarter, which were used to reduce outstanding debt by 156 million over the last three months, and provide substantial liquidity to fund an anticipated rebound in pawn loan demand. We continued to make long-term investments in store growth as well, as demonstrated by the addition of 91 locations so far this year, including 24 stores in the second quarter. Additionally, we are pleased to report that the Board of Directors has again declared our quarterly cash dividend, concluded Mr. Wessel.This release contains adjusted earnings measures, which exclude, among other things, merger and other acquisition expenses, certain non-cash foreign currency exchange gains and losses, non-cash write-offs of certain lease intangibles and the impairment of certain other assets which are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release. Three Months Ended June 30, As Reported GAAP Adjusted Non-GAAP In thousands, except per share amounts 2020 2019 2020 2019 Revenue 412,746 446,014 412,746 446,014 Net income 25,873 33,048 25,872 35,297 Diluted earnings per share 0.62 0.76 0.62 0.82 EBITDA non-GAAP measure 53,962 64,189 53,930 67,094 Weighted-average diluted shares 41,531 43,256 41,531 43,256 Six Months Ended June 30, As Reported GAAP Adjusted Non-GAAP In thousands, except per share amounts 2020 2019 2020 2019 Revenue 879,236 913,618 879,236 913,618 Net income 58,791 75,703 66,167 77,818 Diluted earnings per share 1.41 1.74 1.59 1.79 EBITDA non-GAAP measure 118,586 141,072 128,536 143,786 Weighted-average diluted shares 41,769 43,456 41,769 43,456 Consolidated Earnings Highlights Due primarily to the impacts of COVID-19, lower foreign exchange rates and the wind-down of consumer lending operations, diluted earnings per share decreased 18 on a GAAP basis and 24 on an adjusted non-GAAP basis in the second quarter of 2020 compared to the prior-year quarter. For the six month year-to-date period, diluted earnings per share decreased 19 on a GAAP basis and 11 on an adjusted non-GAAP basis. The COVID-19 related impact on lending demand resulted in pawn fee revenues declining 26 in the second quarter and 12 year-to-date, as compared to the respective prior-year periods. The impact on pawn fees was partially offset by increases in net revenues gross profit from retail operations of 13 in the second quarter and 10 year-to-date. Foreign exchange rates in Latin America were also impacted by COVID-19, affecting U.S. dollar-reported earnings per share and representing approximately 0.04 of earnings drag in the second quarter and 0.05 year-to-date. While contraction and termination of non-core unsecured consumer lending operations did not impact second quarter 2020 earnings per share on a GAAP basis and reduced year-over-year GAAP earnings by just 0.05 per share year-to-date, it reduced adjusted non-GAAP earnings per share by 0.03 in the second quarter and 0.10 year-to-date compared to the respective prior-year periods. Net income for the second quarter totaled 26 million on both a GAAP and adjusted non-GAAP basis. For the trailing twelve months ended June 30, 2020, consolidated net income was 148 million, while adjusted EBITDA totaled 289 million. Cash flow from operating activities was 66 million in the second quarter and 269 million for the trailing twelve months ended June 30, 2020. Adjusted free cash flow, a non-GAAP financial measure, was a record 182 million for the quarter and on a trailing twelve months basis was a record 421 million.Acquisitions and Store Opening Highlights A total of 20 de novo locations were opened in Latin America during the second quarter, which included 18 locations in Mexico, one in Colombia and one in Guatemala. Year-to-date, a total of 51 de novo stores have been opened, including 44 locations in Mexico, five in Colombia and two in Guatemala. The Company acquired four Prendamex stores from a franchisee during the second quarter of 2020. Year-to-date, a total of 40 stores have been acquired in Mexico. The Company added a total 91 locations in the first six months of 2020 and 133 over the trailing twelve month period ended June 30, 2020.U.S. Pawn Operations During the second quarter, all of the current 1,035 U.S. stores remained operational, excluding a very limited number of temporary closures primarily related to local decrees or the Companys COVID-19 safety protocols. Total domestic revenues for the second quarter increased 4. Revenues increased 6, excluding the decline in fees from non-core unsecured consumer lending operations. Despite incremental expenses related to COVID-19 and the contraction of non-core unsecured consumer lending operations, domestic pre-tax operating income increased 3 in the second quarter compared to the prior-year quarter. With the onset of COVID-19 related lock-downs of the economy and the rapid federal stimulus response, pawn loan originations in the U.S. fell significantly in April, declining almost 60 for the month. Beginning in May, pawn loan originations began to slowly improve but were still down 30 to 35 in early July. Resulting pawn balances at June 30 were down 40 in total and on a same-store basis compared to the prior year. Resulting pawn fee revenues for the quarter were down 20 in total and on a same-store basis. The revenue decline was smaller than the decrease in loan balances, reflecting strong collections of fees and principal on loans outstanding at the beginning of the quarter and a smaller percentage of forfeited loans during the quarter. The resulting average monthly yield of 15 on the pawn loan portfolio represented an improvement of approximately 300 basis points compared to the yield in the prior-year quarter. Retail sales and margins in the second quarter were especially strong and fully offset the impact from the decline in domestic pawn fee revenue. Total retail sales increased 24 in the second quarter, while same-store retail sales increased a record 24. The Companys ability to keep its stores open during the quarter as an essential business and offer popular stay-at-home products such as laptops, tablets, monitors, gaming systems and sporting goods drove the strong retail sales demand. Second quarter retail margins of 42 improved significantly compared to margins of 38 in the same quarter last year, reflecting the strong retail demand and lower levels of aged inventory which limited the need for normal discounting. The margin improvement coupled with the increase in top-line retail sales drove a 36 increase in gross profit from retail operations for the quarter. Inventory turns continued to improve and aged inventories continued to decline, accounting for less than 3 of total inventories at June 30, compared to 4 a year ago. Net revenue from non-core scrap jewelry sales increased 20 for the quarter and 6 year-to-date compared to the respective prior-year periods, driven primarily by accelerating margin improvement related to increased gold prices.U.S. Consumer Lending Operations The Company made the strategic decision to cease offering unsecured consumer loan and credit services products, including all payday and installment loans, in the U.S. Effective June 30, 2020, the Company no longer has any unsecured consumer lending or credit services operations in the U.S. or Latin America. Revenues from consumer lending operations totaled only 0.6 million in the second quarter compared to 5.4 million in the second quarter of last year.Note: Certain growth rates in Latin America Operations below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. 