FirstCash provides FY23 outlook

Pawn operations are expected to remain the primary earnings driver in 2023 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be approximately 80% of total segment level pre-tax income. Inflationary economic environments have historically driven increased customer demand for both pawn loans and value-priced merchandise offered in pawn stores. In addition, credit tightening by competing unsecured lenders has historically driven additional demand for pawn products. Pawn receivables at March 31, 2023 were up 6% in the U.S. while Latin American balances were up 18%, or 8% on a currency adjusted basis. U.S. pawn receivables are trending higher thus far in April compared to last year, now up nearly 8% over the same point a year ago and reflecting a strong post tax season recovery. The Company continues to expect mid-single digit or better growth in total pawn receivables in both markets over the full year. Full year retail sales are expected to grow in both markets as well, with margins anticipated to remain above 40% in the U.S. and in the mid-thirty percent range in Latin America. While operating expenses are expected to rise moderately in both the U.S. and Latin America in 2022 due to increased store counts along with continued inflationary impacts, the Company continues to project robust full year earnings growth from its pawn segments. The Company expects approximately 60 de novo store additions in Latin America in 2023 along with four U.S. de novo locations expected to be opened this year as well. Additionally, three U.S. locations have been acquired year-to-date and management continues to evaluate additional opportunities for acquisitions in both the U.S. and Latin America.