Record Second Quarter Pawn Loans Outstanding
and Sales Driving Strong Revenue Growth
EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn
transactions in the United States and Latin America, today
announced results for its second quarter ended March 31, 2023.
Unless otherwise noted, all amounts in this release are in
conformity with U.S. generally accepted accounting principles
("GAAP") and comparisons shown are to the same period in the prior
year.
SECOND QUARTER HIGHLIGHTS
- Pawn loans outstanding (PLO) up 19% to $206.1 million.
- Total revenue increased 20%, and gross profit increased
16%.
- Merchandise sales gross margin remains within our targeted
range at 36%.
- Net loss of $6.8 million, was down from Net Income of $14.9
million, primarily driven by our $25.6 million share of the
one-time, non-cash goodwill impairment and discrete adjustments
recognized by Cash Converters International in its half-year period
ended December 31, 2022.
- Diluted loss per share of $0.12 was down from diluted earnings
per share of $0.20. On an adjusted basis1, diluted earnings per
share was $0.23, compared to $0.22 in the prior-year quarter.
- Return on earning assets (ROEA) remains strong at 165%.
CEO COMMENTARY AND OUTLOOK
Lachie Given, Chief Executive Officer, stated, "We achieved
record second quarter PLO and merchandise sales as we continue to
execute our three-year plan, put in place at the end of fiscal
2020. The macro-economic environment continues to support increased
core demand for our products and services, including providing our
environmentally conscious consumers with a more sustainable way to
shop. Our team's relentless commitment to serving our customers
with passion and respect and to operational excellence in all that
we do, continues to drive our strong operating and financial
results.
"During the second quarter, we expanded our store footprint,
opening 13 de novo stores. Two of these stores were opened in Las
Vegas, the first under our newly acquired luxury brand Max Pawn,
and the other under the core EZPAWN brand. We are very excited to
be growing our presence in this important pawn market. The other 11
new stores were opened across LatAm – 8 in Mexico and 3 in
Guatemala, where we are extending our market leadership, with 103
stores there.
“EZ+ Rewards, our loyalty program, continues to be very well
received by our customers and has grown to 2.9 million members
globally, an increase of 17% over the first quarter of 2023. We are
extremely happy with the increases here and are working hard on
strategies to win and retain more customers in all of the local
communities in which we operate.
"We continue to believe that investing in our teams and
technology is essential. To ensure the continuous improvement of
our Field Teams' bench strength, we completed talent and succession
processes for all global operations. In Latin America we are
enhancing recruiting strategies and implementing development
programs for Lead Pawnbrokers and Store Managers. In the US we
launched a new SharePoint in store communications program, to
enhance our daily program execution and performance management
strategies across all stores. We have deployed store system and
network upgrades to support digital initiatives and are building
out our e-commerce capabilities in a disciplined way.
"During the quarter, we repurchased $3.9 million worth of EZCORP
shares as part of the up to $50 million share repurchase program
announced in the second quarter of fiscal 2022.
"Our focus on People, Pawn, and Passion, along with the
disciplined execution of our enhanced operating model has yielded
another quarter of strong results for our shareholders. We will
continue to invest in our people and technology with the goal of
serving more customers, more frequently, across more locations, in
an environmentally sustainable way, to ultimately drive value to
our shareholders," Given concluded.
CONSOLIDATED RESULTS
Three Months Ended March 31
As Reported
Adjusted1
in millions, except per share amounts
2023
2022
2023
2022
Total revenues
$
258.4
$
216.0
$
253.8
$
216.0
Gross profit
$
149.2
$
128.9
$
146.7
$
128.9
(Loss) income before tax
$
(7.3
)
$
20.1
$
24.0
$
22.3
Net (loss) income
$
(6.8
)
$
14.9
$
17.0
$
16.7
Diluted (loss) earnings per share
$
(0.12
)
$
0.20
$
0.23
$
0.22
EBITDA (non-GAAP measure)
$
2.1
$
29.8
$
33.3
$
32.1
- Diluted loss per share was $0.12, down from diluted earnings
per share of $0.20. On an adjusted basis, diluted earnings per
share were $0.23, up from $0.22. The primary difference between
GAAP and Adjusted financial results is attributable to our share of
the previously announced one-time, non-cash goodwill impairment
recognized by Cash Converters International in its half-year period
ended December 31 2022.
- Loss before taxes was $7.3 million, down from profit before
taxes of $20.1 million, while adjusted EBITDA increased 4% to $33.3
million.
- PLO increased 19% to $206.1 million, up $32.5 million. On a
same-store basis2, PLO increased 16% due to increased loan demand,
reflecting continuing growth.
- Total revenues increased 20% and gross profit increased 16%,
reflecting improved pawn service charge (PSC) revenue, merchandise
sales and merchandise sales gross profit.
- PSC increased 21% as a result of higher average PLO and
yields.
- Merchandise sales gross margin remains within our targeted
range at 36%. Aged general merchandise has increased to 2.2% of
total general merchandise inventory.
- Net inventory increased 25%, reflecting a return towards
normalized inventory levels. Inventory turnover remained strong at
2.8x for the quarter, down from 2.9x.
- Store expenses increased 18%, primarily due to increased labor
in-line with store activity, higher store count and, to a lesser
extent, expenses related to our loyalty program. On a same-store
basis, store expenses increased 12%. General and administrative
expenses increased 28%, primarily due to the reversal of incentive
compensation for the departed CEO in the prior period and, to a
lesser extent, increase in accrued incentive compensation.
- Cash and cash equivalents at the end of the quarter was $243.1
million, down 5% year-over-year. The decrease was primarily due to
the increase in PLO and inventory, the acquisition of new stores,
and strategic investments, partially offset by the net cash
proceeds associated with the convertible debt refinancing.
SEGMENT RESULTS
U.S. Pawn
- PLO ended the quarter at $157.0 million, up 18% or 14% on a
same store basis.
- Total revenue was up 16% and gross profit increased 11%,
reflecting increased PSC and higher merchandise sales.
- PSC increased 19% as a result of higher average PLO.
- Merchandise sales gross margin decreased to 38% from 41%,
reflecting a more normalized operating environment. Aged general
merchandise increased to 1.4% of total general merchandise
inventory primarily driven by recent acquisitions.
- Net inventory increased 20% reflecting a return towards
normalized inventory levels. Inventory turnover remained flat at
2.6x.
- Store expenses increased 12%, primarily due to increased labor
in-line with store activity, higher store count and, to a lesser
extent, expenses related to our loyalty program.
- Segment contribution increased 12% to $37.8 million.
- Segment store count increased by 2 de novo stores during the
quarter.
Latin America Pawn
- PLO improved to $49.1 million, up 22% (14% on constant currency
basis). On a same store basis, PLO increased 19% (12% on a constant
currency basis).
- Total revenue was up 30% (22% on constant currency basis) and
gross profit increased 32% (23% on a constant currency basis),
reflecting increased PSC, higher merchandise sales and improved
merchandise sales gross profit.
- PSC increased 29% (21% on a constant currency basis) as a
result of higher average PLO and yield.
- Merchandise sales gross margin increased from 29% to 32%. Aged
general merchandise inventory increased to 3.2% from 1.0% of total
merchandise inventory.
- Net inventory increased 44% (33% on a constant currency basis),
reflecting a return towards normalized inventory levels. Inventory
turnover remains strong at 3.5x, down from 3.8x.
- Store expenses increased 38% (29% on a constant currency
basis), primarily due to increased labor in-line with store
activity and higher store count. Same-store expenses increased 32%
(24% on a constant currency basis).
- Segment contribution increased 68% (57% on a constant currency
basis) to $8.0 million. On an adjusted basis, segment contribution
was up 10% to $5.4 million, with the primary adjustment being the
reversal of contingent consideration liability in connection with a
previously completed acquisition.
- Segment store count increased by 11 de novo stores during the
quarter.
FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2023 has been filed with the Securities and Exchange
Commission. The report is available in the Investor Relations
section of the Company’s website at
http://investors.ezcorp.com.
CONFERENCE CALL
EZCORP will host a conference call on Thursday, May 4, 2023, at
8:00 am Central Time to discuss Second Quarter Fiscal 2023 results.
Analysts and institutional investors may participate on the
conference call by dialing (833) 470-1428, Conference ID: 721380,
or internationally by dialing (404) 975-4839. The conference call
will be webcast simultaneously to the public through this link:
http://investors.ezcorp.com/. A replay of the conference call will
be available online at http://investors.ezcorp.com/ shortly after
the end of the call.
ABOUT EZCORP
Formed in 1989, EZCORP has grown into a leading provider of pawn
transactions in the United States and Latin America. We also sell
merchandise, primarily collateral forfeited from pawn lending
operations and pre-owned and recycled merchandise purchased from
customers. We are dedicated to satisfying the short-term cash needs
of consumers who are both cash and credit constrained, focusing on
an industry-leading customer experience. EZCORP is traded on NASDAQ
under the symbol EZPW and is a member of the S&P 1000 Index and
Nasdaq Composite Index.
Follow us on social media:
Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
EZPAWN Instagram Official
https://www.instagram.com/ezpawnofficial/
EZCORP Linked In https://www.linkedin.com/company/ezcorp/
FORWARD-LOOKING STATEMENTS
This announcement contains certain forward-looking statements
regarding the company’s strategy, initiatives and expected
performance. These statements are based on the Company’s current
expectations as to the outcome and timing of future events. All
statements, other than statements of historical facts, including
all statements regarding the company's strategy, initiatives and
future performance, that address activities or results that the
company plans, expects, believes, projects, estimates or
anticipates, will, should or may occur in the future, including
future financial or operating results, are forward-looking
statements. Actual results for future periods may differ materially
from those expressed or implied by these forward-looking statements
due to a number of uncertainties and other factors, including
operating risks, liquidity risks, legislative or regulatory
developments, market factors, current or future litigation and
risks associated with the COVID-19 pandemic. For a discussion of
these and other factors affecting the Company’s business and
prospects, see the Company’s annual, quarterly and other reports
filed with the Securities and Exchange Commission. The Company
undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results over
time.
Note: Percentages are calculated from the underlying numbers in
thousands and, as a result, may not agree to the percentages
calculated from numbers in millions.
1“Adjusted” basis, which is a non-GAAP measure, excludes certain
items. “Constant currency” basis, which is a non-GAAP measure,
excludes the impact of foreign currency exchange rate fluctuations.
“Free cash flow”, which is a non-GAAP measure, includes certain
adjustments to cash flow from operating activities. For additional
information about these calculations, as well as a reconciliation
to the most comparable GAAP financial measures, see “Non-GAAP
Financial Information” at the end of this release.
2“Same Store” basis, which is a financial measure, includes
stores open the entirety of the comparable periods.
EZCORP, Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
March 31,
Six Months Ended March
31,
(in thousands, except per share
amounts)
2023
2022
2023
2022
Revenues:
Merchandise sales
$
152,507
$
133,556
$
316,294
$
271,276
Jewelry scrapping sales
12,825
5,690
20,709
12,634
Pawn service charges
93,030
76,683
185,623
152,708
Other revenues, net
61
53
124
358
Total revenues
258,423
215,982
522,750
436,976
Merchandise cost of goods sold
97,339
82,246
202,216
165,357
Jewelry scrapping cost of goods sold
11,902
4,808
18,855
10,580
Gross profit
149,182
128,928
301,679
261,039
Operating expenses:
Store expenses
101,269
85,743
202,072
172,514
General and administrative
15,609
12,227
31,085
27,772
Depreciation and amortization
7,963
7,450
15,951
15,024
Loss (gain) on sale or disposal of
assets
73
(697
)
57
(692
)
Other
(2,465
)
—
(2,465
)
—
Total operating expenses
122,449
104,723
246,700
214,618
Operating income
26,733
24,205
54,979
46,421
Interest expense
3,390
2,527
9,580
4,958
Interest income
(1,898
)
(255
)
(2,562
)
(559
)
Equity in net loss of unconsolidated
affiliates
32,501
1,439
30,917
301
Other expense (income)
80
371
(154
)
251
(Loss) income before income taxes
(7,340
)
20,123
17,198
41,470
Income (benefit) tax expense
(550
)
5,236
7,210
10,862
Net (loss) income
$
(6,790
)
$
14,887
$
9,988
$
30,608
Basic earnings per share
$
(0.12
)
$
0.26
$
0.18
$
0.54
Diluted earnings per share
$
(0.12
)
$
0.20
$
0.11
$
0.42
Weighted-average basic shares
outstanding
55,648
56,561
55,981
56,370
Weighted-average diluted shares
outstanding
55,648
82,407
65,269
82,270
EZCORP, Inc.
CONSOLIDATED BALANCE
SHEETS
(Unaudited)
(in thousands, except share and per share
amounts)
March 31, 2023
March 31, 2022
September 30,
2022
Assets:
Current assets:
Cash and cash equivalents
$
243,128
$
254,964
$
206,028
Restricted cash
8,451
8,713
8,341
Pawn loans
206,096
173,618
210,009
Pawn service charges receivable, net
33,116
28,319
33,476
Inventory, net
150,297
119,890
151,615
Prepaid expenses and other current
assets
45,564
27,267
34,694
Total current assets
686,652
612,771
644,163
Investments in unconsolidated
affiliates
10,681
42,002
37,733
Other investments
39,220
18,000
24,220
Property and equipment, net
59,775
50,874
56,725
Right-of-use asset, net
234,287
204,343
221,405
Goodwill
300,078
286,214
286,828
Intangible assets, net
59,620
62,145
56,819
Notes receivable, net
1,233
1,198
1,215
Deferred tax asset, net
19,127
15,908
12,145
Other assets
9,859
6,541
6,625
Total assets
$
1,420,532
$
1,299,996
$
1,347,878
Liabilities and equity:
Current liabilities:
Accounts payable, accrued expenses and
other current liabilities
$
72,695
$
69,695
$
84,509
Customer layaway deposits
18,761
15,046
16,023
Operating lease liabilities, current
53,921
52,446
52,334
Total current liabilities
145,377
137,187
152,866
Long-term debt, net
359,287
312,168
312,903
Deferred tax liability, net
368
179
373
Operating lease liabilities
191,874
163,506
180,756
Other long-term liabilities
11,038
11,940
8,749
Total liabilities
707,944
624,980
655,647
Commitments and Contingencies
Stockholders’ equity:
Class A Non-voting Common Stock, par value
$0.01 per share; shares authorized: 100 million; issued and
outstanding: 52,561,071 as of March 31, 2023; 53,685,333 as of
March 31, 2022; and 53,454,885 as of September 30, 2022
526
537
534
Class B Voting Common Stock, convertible,
par value $0.01 per share; shares authorized: 3 million; issued and
outstanding: 2,970,171
30
30
30
Additional paid-in capital
343,088
341,913
345,330
Retained earnings
405,961
384,246
402,006
Accumulated other comprehensive loss
(37,017
)
(51,710
)
(55,669
)
Total equity
712,588
675,016
692,231
Total liabilities and equity
$
1,420,532
$
1,299,996
$
1,347,878
EZCORP, Inc.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited)
Six Months Ended March
31,
(in thousands)
2023
2022
Operating activities:
Net income
$
9,988
$
30,608
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation and amortization
15,951
15,024
Amortization of debt discount and deferred
financing costs
736
698
Non-cash lease expense
27,546
25,746
Deferred income taxes
(6,987
)
212
Other adjustments
(2,386
)
(708
)
Provision for inventory reserve
280
(1,780
)
Stock compensation expense
3,741
2,158
Equity in net loss of unconsolidated
affiliates
30,917
301
Net loss on extinguishment of debt
3,545
—
Changes in operating assets and
liabilities, net of acquisitions:
Service charges and fees receivable
1,357
687
Inventory
(2,306
)
(2,779
)
Prepaid expenses, other current assets and
other assets
(3,639
)
88
Accounts payable, accrued expenses and
other liabilities
(43,969
)
(50,258
)
Customer layaway deposits
1,426
2,342
Income taxes
8,852
6,576
Dividends from unconsolidated
affiliates
1,775
1,660
Net cash provided by operating
activities
46,827
30,575
Investing activities:
Loans made
(378,717
)
(329,459
)
Loans repaid
230,604
199,836
Recovery of pawn loan principal through
sale of forfeited collateral
171,504
129,311
Capital expenditures, net
(18,439
)
(10,498
)
Acquisitions, net of cash acquired
(12,968
)
—
Issuance of notes receivable
(15,500
)
(1,000
)
Investment in unconsolidated
affiliates
(2,133
)
(3,577
)
Investment in other investments
(15,000
)
(16,500
)
Net cash used in investing activities
(40,649
)
(31,887
)
Financing activities:
Taxes paid related to net share settlement
of equity awards
(1,149
)
(792
)
Proceeds from issuance of debt
230,000
—
Debt issuance cost
(7,458
)
—
Cash paid on extinguishment of debt
(1,951
)
—
Payments on debt
(178,488
)
—
Repurchase of common stock
(10,978
)
—
Net cash provided by (used in) financing
activities
29,976
(792
)
Effect of exchange rate changes on cash
and cash equivalents and restricted cash
1,056
2,157
Net increase in cash, cash equivalents and
restricted cash
37,210
53
Cash, cash equivalents and restricted cash
at beginning of period
214,369
263,624
Cash, cash equivalents and restricted cash
at end of period
$
251,579
$
263,677
EZCORP, Inc.
OPERATING SEGMENT
RESULTS
Three Months Ended March 31,
2023 (Unaudited)
(in thousands)
U.S. Pawn
Latin America Pawn
Other Investments
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
108,740
$
43,767
$
—
$
152,507
$
—
$
152,507
Jewelry scrapping sales
9,814
3,011
—
12,825
—
12,825
Pawn service charges
69,945
23,085
—
93,030
—
93,030
Other revenues
32
19
10
61
—
61
Total revenues
188,531
69,882
10
258,423
—
258,423
Merchandise cost of goods sold
67,643
29,696
—
97,339
—
97,339
Jewelry scrapping cost of goods sold
8,550
3,352
—
11,902
—
11,902
Other cost of revenues
—
—
—
—
—
—
Gross profit
112,338
36,834
10
149,182
—
149,182
Store expenses
71,946
29,323
—
101,269
—
101,269
General and administrative
—
—
—
—
15,609
15,609
Depreciation and amortization
2,560
2,332
—
4,892
3,071
7,963
Loss (gain) loss on sale or disposal of
assets
81
(8
)
—
73
—
73
Other
—
(2,465
)
—
(2,465
)
—
(2,465
)
Interest expense
—
—
—
—
3,390
3,390
Interest income
(1
)
(298
)
—
(299
)
(1,599
)
(1,898
)
Equity in net loss of unconsolidated
affiliates
—
—
32,501
32,501
—
32,501
Other (income) expense
—
(46
)
6
(40
)
120
80
Segment contribution (loss)
$
37,752
$
7,996
$
(32,497
)
$
13,251
Income (loss) before income taxes
$
13,251
$
(20,591
)
$
(7,340
)
Three Months Ended March 31,
2022 (Unaudited)
(in thousands)
U.S. Pawn
Latin America Pawn
Other Investments
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
100,064
$
33,492
$
—
$
133,556
$
—
$
133,556
Jewelry scrapping sales
3,480
2,210
—
5,690
—
5,690
Pawn service charges
58,772
17,911
—
76,683
—
76,683
Other revenues
24
—
29
53
—
53
Total revenues
162,340
53,613
29
215,982
—
215,982
Merchandise cost of goods sold
58,613
23,633
—
82,246
—
82,246
Jewelry scrapping cost of goods sold
2,798
2,010
—
4,808
—
4,808
Gross profit
100,929
27,970
29
128,928
—
128,928
Segment and corporate expenses
(income):
Store expenses
64,492
21,251
—
85,743
—
85,743
General and administrative
—
—
—
—
12,227
12,227
Depreciation and amortization
2,625
1,891
—
4,516
2,934
7,450
Gain on sale of disposal of assets and
other
—
(9
)
—
(9
)
(688
)
(697
)
Interest expense
—
—
—
—
2,527
2,527
Interest income
—
(255
)
—
(255
)
—
(255
)
Equity in net income of unconsolidated
affiliates
—
—
1,439
1,439
—
1,439
Other (income) expense
—
334
8
342
29
371
Segment contribution
$
33,812
$
4,758
$
(1,418
)
$
37,152
Income (loss) before income taxes
$
37,152
$
(17,029
)
$
20,123
Six Months Ended March 31,
2023
(Unaudited)
(in thousands)
U.S. Pawn
Latin America Pawn
Other Investments
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
227,054
$
89,240
$
—
$
316,294
$
—
$
316,294
Jewelry scrapping sales
16,990
3,719
—
20,709
—
20,709
Pawn service charges
139,255
46,368
—
185,623
—
185,623
Other revenues
57
35
32
124
—
124
Total revenues
383,356
139,362
32
522,750
—
522,750
Merchandise cost of goods sold
140,899
61,317
—
202,216
—
202,216
Jewelry scrapping cost of goods sold
14,766
4,089
—
18,855
—
18,855
Gross profit
227,691
73,956
32
301,679
—
301,679
Segment and corporate expenses
(income):
Store expenses
145,250
56,822
—
202,072
—
202,072
General and administrative
—
(3
)
—
(3
)
31,088
31,085
Depreciation and amortization
5,315
4,547
—
9,862
6,089
15,951
Loss (gain) on sale or disposal of
assets
84
(27
)
—
57
—
57
Other charges
—
(2,465
)
—
(2,465
)
—
(2,465
)
Interest expense
—
—
—
—
9,580
9,580
Interest income
(1
)
(467
)
—
(468
)
(2,094
)
(2,562
)
Equity in net loss of unconsolidated
affiliates
—
—
30,917
30,917
—
30,917
Other expense (income)
—
24
10
34
(188
)
(154
)
Loss on extinguishment of debt
—
—
—
—
—
—
Segment contribution (loss)
$
77,043
$
15,525
$
(30,895
)
$
61,673
Income (loss) before income taxes
$
61,673
$
(44,475
)
$
17,198
Six Months Ended March 31,
2022
(Unaudited)
(in thousands)
U.S. Pawn
Latin America Pawn
Other Investments
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
202,142
$
69,134
$
—
$
271,276
$
—
$
271,276
Jewelry scrapping sales
8,460
4,174
—
12,634
—
12,634
Pawn service charges
115,329
37,379
—
152,708
—
152,708
Other revenues
46
240
72
358
—
358
Total revenues
325,977
110,927
72
436,976
—
436,976
Merchandise cost of goods sold
116,445
48,912
—
165,357
—
165,357
Jewelry scrapping cost of goods sold
6,773
3,807
—
10,580
—
10,580
Gross profit
202,759
58,208
72
261,039
—
261,039
Segment and corporate expenses
(income):
Store expenses
129,181
43,333
—
172,514
—
172,514
General and administrative
—
—
—
—
27,772
27,772
Depreciation and amortization
5,295
3,871
—
9,166
5,858
15,024
Gain on sale or disposal of assets and
other
—
(4
)
—
(4
)
(688
)
(692
)
Other Charges
—
—
—
—
—
—
Interest expense
—
—
—
—
4,958
4,958
Interest income
—
(437
)
—
(437
)
(122
)
(559
)
Equity in net income of unconsolidated
affiliates
—
—
301
301
—
301
Other (income) expense
—
200
(4
)
196
55
251
Segment contribution
$
68,283
$
11,245
$
(225
)
$
79,303
Income (loss) before income taxes
$
79,303
$
(37,833
)
$
41,470
EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
Three Months Ended March 31,
2023
U.S. Pawn
Latin America Pawn
Consolidated
As of December 31, 2022
525
661
1,186
New locations opened
2
11
13
As of March 31, 2023
527
672
1,199
Three Months Ended March 31,
2022
U.S. Pawn
Latin America Pawn
Consolidated
As of December 31, 2021
516
633
1,149
New locations opened
—
3
3
As of March 31, 2022
516
636
1,152
Six Months Ended March 31,
2023
U.S. Pawn
Latin America Pawn
Consolidated
As of September 30, 2022
515
660
1,175
New locations opened
2
13
15
Locations acquired
10
—
10
Locations sold, combined or closed
—
(1
)
(1
)
As of March 31, 2023
527
672
1,199
Six Months Ended March 31,
2022
U.S. Pawn
Latin America Pawn
Consolidated
As of September 30, 2021
516
632
1,148
New locations opened
—
4
4
As of March 31, 2022
516
636
1,152
Non-GAAP Financial Information (Unaudited)
In addition to the financial information prepared in conformity
with accounting principles generally accepted in the United States
("GAAP"), we provide certain other non-GAAP financial information
on a constant currency ("constant currency") and adjusted basis. We
use constant currency results to evaluate our Latin America Pawn
operations, which are denominated primarily in Mexican pesos,
Guatemalan quetzales and other Latin American currencies. We
believe that presentation of constant currency and adjusted results
is meaningful and useful in understanding the activities and
business metrics of our operations and reflect an additional way of
viewing aspects of our business that, when viewed with GAAP
results, provide a more complete understanding of factors and
trends affecting our business. We provide non-GAAP financial
information for informational purposes and to enhance understanding
of our GAAP consolidated financial statements. We use this non-GAAP
financial information primarily to evaluate and compare operating
results across accounting periods.
Readers should consider the information in addition to, but not
instead of or superior to, our financial statements prepared in
accordance with GAAP. This non-GAAP financial information may be
determined or calculated differently by other companies, limiting
the usefulness of those measures for comparative purposes.
Constant currency results reported herein are calculated by
translating consolidated balance sheet and consolidated statement
of operations items denominated in local currency to U.S. dollars
using the exchange rate from the prior-year comparable period, as
opposed to the current period, in order to exclude the effects of
foreign currency rate fluctuations. In addition, we have an equity
method investment that is denominated in Australian dollars and is
translated into U.S. dollars. We used the end-of-period rate for
balance sheet items and the average closing daily exchange rate on
a monthly basis during the appropriate period for statement of
operations items. The end-of-period and approximate average
exchange rates for each applicable currency as compared to U.S.
dollars as of and for the three and six months ended March 31, 2023
and 2022 were as follows:
March 31,
Three Months Ended
March 31,
Six Months Ended March
31,
2023
2022
2023
2022
2023
2022
Mexican peso
18.1
19.9
18.7
20.5
19.2
20.6
Guatemalan quetzal
7.6
7.5
7.6
7.5
7.6
7.5
Honduran lempira
24.4
24.1
24.3
24.2
24.3
24.0
Australian dollar
1.5
1.3
1.5
1.4
1.5
1.4
Our statement of operations constant currency results reflect
the monthly exchange rate fluctuations and so are not directly
calculable from the above rates. Constant currency results, where
presented, also exclude the foreign currency gain or loss.
Miscellaneous Non-GAAP Financial Measures
Three Months Ended
March 31,
(in millions)
2023
2022
Net income
$
(6.8
)
$
14.9
Interest expense
3.4
2.5
Interest income
(1.9
)
(0.3
)
Income tax expense
(0.6
)
5.2
Depreciation and amortization
8.0
7.5
EBITDA
$
2.1
$
29.8
Total Revenues
Gross Profit
Income Before Tax
Tax Effect
Net Income
Diluted EPS
EBITDA
2023 Q2 Reported
$
258.4
$
149.2
$
(7.3
)
$
7.8
$
(6.8
)
$
(0.12
)
$
2.1
CCV Impairment and discrete
adjustments
—
—
34.0
8.4
25.6
0.29
34.0
Contingent consideration liability
—
—
(2.2
)
(0.6
)
(1.6
)
(0.02
)
(2.2
)
Impact of dilutive instruments*
—
—
—
—
—
0.08
—
FX impact
—
—
0.1
—
0.1
—
0.1
Constant currency impact
(4.7
)
(2.4
)
(0.6
)
(0.3
)
(0.3
)
—
(0.7
)
2023 Q2 Adjusted
$
253.8
$
146.7
$
24.0
$
7.0
$
17.0
$
0.23
$
33.3
*Q2 Reported Diluted EPS calculated based on 55.6 million
weighted average diluted shares outstanding and Q2 Adjusted Diluted
EPS calculated based on weighted average diluted shares outstanding
of 87.1 million
Total Revenues
Gross Profit
Income Before Tax
Tax Effect
Net Income
Diluted EPS
EBITDA
2022 Q2 Reported
$
216.0
$
128.9
$
20.1
$
5.2
$
14.9
$
0.20
$
29.8
CCV Adjustment
—
—
2.1
0.4
1.7
0.02
2.1
Non cash Interest
—
—
0.1
0.1
0.1
—
0.1
2022 Q2 Adjusted
$
216.0
$
128.9
$
22.3
$
5.7
$
16.7
$
0.22
$
32.1
Three Months Ended
March 31, 2023
Six Months Ended March
31, 2023
(in millions)
U.S. Dollar Amount
Percentage Change YOY
U.S. Dollar Amount
Percentage Change YOY
Consolidated revenue
$
258.4
20
%
$
522.8
20
%
Currency exchange rate fluctuations
(4.6
)
(7.4
)
Constant currency consolidated revenue
$
253.8
17
%
$
515.4
18
%
Consolidated gross profit
$
149.2
16
%
$
301.7
16
%
Currency exchange rate fluctuations
(2.5
)
(3.8
)
Constant currency consolidated gross
profit
$
146.7
14
%
$
297.9
14
%
Consolidated net inventory
$
150.3
25
%
$
150.3
25
%
Currency exchange rate fluctuations
(2.8
)
(2.8
)
Constant currency consolidated net
inventory
$
147.5
23
%
$
147.5
23
%
Latin America Pawn gross profit
$
36.8
32
%
$
74.0
27
%
Currency exchange rate fluctuations
(2.4
)
(3.8
)
Constant currency Latin America Pawn gross
profit
$
34.4
23
%
$
70.2
21
%
Latin America Pawn PLO
$
49.1
22
%
$
49.1
22
%
Currency exchange rate fluctuations
(3.2
)
(3.2
)
Constant currency Latin America Pawn
PLO
$
45.9
14
%
$
45.9
14
%
Latin America Pawn PSC revenues
$
23.1
29
%
$
46.4
24
%
Currency exchange rate fluctuations
(1.4
)
(2.2
)
Constant currency Latin America Pawn PSC
revenues
$
21.7
21
%
$
44.2
18
%
Latin America Pawn merchandise sales
$
43.8
31
%
$
89.2
29
%
Currency exchange rate fluctuations
(3.1
)
(5.0
)
Constant currency Latin America Pawn
merchandise sales
$
40.7
22
%
$
84.2
22
%
Latin America Pawn segment profit before
tax
$
8.0
68
%
$
15.5
38
%
Currency exchange rate fluctuations
(0.5
)
(0.7
)
Constant currency Latin America Pawn
segment profit before tax
$
7.5
57
%
$
14.8
31
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503005844/en/
Email: Investor_Relations@ezcorp.com Phone: (512) 314-2220
EZCORP (NASDAQ:EZPW)
Gráfico Histórico do Ativo
De Abr 2024 até Mai 2024
EZCORP (NASDAQ:EZPW)
Gráfico Histórico do Ativo
De Mai 2023 até Mai 2024