Company: FCFS
Filing Date: 2025-02-03
Form Type: 10-K
Source: 0000840489-25-000032
Chunk: 32

Company: FirstCash Holdings, Inc.
Filing Date: 2025-02-03
Form: 10-K
Item: Item 7
Chunk 32
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 Adjusted EBITDA

The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (unaudited, in thousands): 

Year Ended December 31,202420232022Net income$258,815 $219,301 $253,495 Income taxes83,961 73,548 70,138 Depreciation and amortization (1)104,941 109,161 103,832 Interest expense105,226 93,243 70,708 Interest income(1,935)(1,469)(1,313)EBITDA551,008 493,784 496,860 Adjustments:Merger and acquisition expenses2,228 7,922 3,739 Non-cash foreign currency loss (gain) related to lease liability3,755 (2,540)(1,329)AFF purchase accounting and other adjustments (2)— 13,968 50,354 Gain on revaluation of contingent acquisition consideration— — (109,549)Other expenses (income), net1,446 (1,402)(2,731)Adjusted EBITDA$558,437 $511,732 $437,344 

(1)Includes $49.7 million, $56.6 million and $56.7 million of amortization expense related to identifiable intangible assets as a result of the AFF acquisition for 2024, 2023 and 2022, respectively.

(2)The following table details AFF purchase accounting and other adjustments (in thousands): 

Year Ended December 31,202420232022Pre-taxPre-taxPre-taxAmortization of fair value adjustment on acquired finance receivables$— $— $42,657 Amortization of fair value adjustment on acquired leased merchandise— — 7,697 Other non-recurring costs