EZCORP Reports Fourth Quarter and Full Year 2022 Results

Rhea-AI Summary

EZCORP, a leader in pawn transactions, reported robust financial results for Q4 and FY 2022, ending September 30. Highlights include a 21% revenue increase, reaching $233.4 million for the quarter, with gross profit up 15% to $137.6 million. Pawn loans outstanding rose 19% to a record $210.0 million. Net income for Q4 surged to $7.3 million, significantly up from $1.6 million year-over-year. Diluted earnings per share jumped to $0.11 from $0.03. The company also expanded its store count and launched the successful EZ+ Rewards program, enhancing customer engagement.

Positive

• Pawn loans outstanding increased 19% to $210.0 million, a record high.
• Total revenue rose by 21% to $233.4 million in Q4 2022.
• Net income for Q4 was $7.3 million, up from $1.6 million year-over-year.
• Diluted earnings per share increased to $0.11 from $0.03 for Q4.
• The company opened 16 new stores in Latin America during Q4.
• Strong return on earning assets (ROEA) at 155% for Q4.
• Cash flow enabled share repurchases of $3.0 million.

Negative

• General and administrative expenses increased 14% due to IT migration and sublease costs.
• Net inventory increased 37%, indicating higher stock levels.
• Store expenses increased 8% due to rising labor costs and rent.

Record Year End Pawn Loans Outstanding Driving Revenue and Earnings Growth

AUSTIN, Texas--(BUSINESS WIRE)-- EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its fourth quarter and full year ended September 30, 2022.

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.

FOURTH QUARTER AND FULL YEAR HIGHLIGHTS

• Pawn loans outstanding (PLO) up 19% to a record-high of $210.0 million.
• Total revenue increased 21% for the quarter and for the full year, while gross profit¹ increased 15% for the quarter and 18% for the full year.
• Merchandise sales gross margin remains within our targeted range at 37% for the quarter and 38% for the full year.
• Net income for the quarter was $7.3 million, an increase of $5.8 million, and $50.2 million for the year, an increase of $41.5 million.
• Diluted earnings per share of $0.11 for the quarter was up from $0.03 and for the year was $0.70 up significantly from $0.15. On an adjusted basis², diluted earnings per share for the quarter was $0.15, compared to $0.11, and for the year was $0.75, compared to $0.38.
• Return on earning assets (ROEA) remains strong at 155% for the quarter and 167% for the full year.

CEO COMMENTARY AND OUTLOOK

Chief Executive Officer Lachie Given stated, “We continue to execute on our three-year strategic plan and closed the fiscal year with another outstanding quarter. PLO hit a record high driving increases in pawn service charges. Strong sales margins with a relentless focus on optimizing store operating costs translated into a significant increase in earnings for the fourth quarter and full year. Inflation and other economic pressures have had a significant impact on our customers' finances, and we are able to help them by providing a unique and essential service to address their short-term cash needs. In addition, we provide an environmentally friendly retail experience at our neighborhood re-commerce stores for our expanding customer base of environmentally and cost-conscious consumers.

“During the fourth quarter, we opened 16 de novo stores in Latin America bringing the total for 2022 to 28. In the US, we acquired three stores during fiscal 2022 and another nine stores in the Houston, Texas area after the end of the year. The rollout of the EZ+ Rewards program continues to be a success, now yielding 1.9 million members across all geographies.

“We are pleased that our strong cash flow and balance sheet has enabled us to return value to shareholders through share repurchases of $3.0 million as of November 15.

“During the quarter we celebrated a team member appreciation week, created engagement action plans on both the enterprise level and team level, and conducted leadership workshop sessions to improve bench strength. We believe we have the best, most passionate, productive team members and we are focused on recruitment, retention and incentivization. They are responsible for delivering the operating performance that underpins our strong financial results,” concluded Given.

CONSOLIDATED RESULTS

Three Months Ended September 30	As Reported						Adjusted2
in millions, except per share amounts	2022			2021			2022			2021
Total revenues	$	233.4		$	192.4		$	233.9		$	192.4
Gross profit1	$	137.6		$	119.3		$	137.9		$	119.3
Income before tax	$	13.2		$	4.5		$	12.9		$	9.4
Net income	$	7.3		$	1.6		$	10.6		$	6.2
Diluted earnings per share	$	0.11		$	0.03		$	0.15		$	0.11
EBITDA (non-GAAP measure)	$	24.8		$	17.2		$	24.6		$	18.5

Twelve Months Ended September 30	As Reported						Adjusted2
in millions, except per share amounts	2022			2021			2022			2021
Total revenues	$	886.2		$	729.6		$	887.4		$	729.6
Gross profit1	$	528.1		$	449.5		$	528.7		$	449.5
Income before tax	$	67.7		$	16.1		$	71.6		$	31.6
Net income	$	50.2		$	8.6		$	54.3		$	21.4
Diluted earnings per share	$	0.70		$	0.15		$	0.75		$	0.38
EBITDA	$	109.0		$	66.4		$	112.9		$	68.2

• Diluted earnings per share were $0.11 for the fourth quarter, up from $0.03. On an adjusted basis, diluted earnings per share were $0.15, up from $0.11. For the full year, diluted earnings per share was $0.70, compared to $0.15. On an adjusted basis, diluted earnings per share for the year were $0.75, compared to $0.38.
• For the fourth quarter, income before taxes improved to $13.2 million from $4.5 million, while adjusted EBITDA increased 33% to $24.6 million. For the full year, income before taxes improved to $67.7 million from $16.1 million and adjusted EBITDA increased 66% to $112.9 million.
• PLO increased 19% to $210.0 million, up $34.1 million. On a same-store basis³, PLO increased 19% to its highest level due to increased loan demand reflecting continuing recovery above pre-COVID levels.
• In the fourth quarter, total revenues increased 21% and gross profit increased 15%, reflecting improved pawn service charge (PSC) revenue and merchandise sales gross profit. Similarly for the full year, total revenues increased 21% and gross profit increased 18%.
• PSC increased 21% in the fourth quarter and 23% for the year as a result of higher average PLO.
• Merchandise sales gross margin remains within our targeted range at 37%, reflecting our commitment to improving the core business by decreasing aged general merchandise (less than 1% of total general merchandise inventory) and focusing on selling inventory in the first 90 days. For the full year, merchandise sales gross profit margin was 38%, compared to 42%.
• Net inventory increased 37%, reflecting a return towards normalized inventory levels. Inventory turnover remained strong at 2.6x for the quarter, down from 2.8x and decreased from 2.9x to 2.8x for the year.
• For the fourth quarter, store expenses increased 8%, primarily due to increased labor in-line with store activity and rent associated with lease renewals. On a same-store basis, store expenses increased 7%. In addition, general and administrative expenses increased 14%, primarily due to asset write-downs associated with IT infrastructure migration and corporate office sublease. For the full year, store expenses increased 8%, primarily due to increased labor in-line with store activity and rent associated with lease renewals. On a same-store basis, store expenses increased 4%. In addition, general and administrative expenses for the year increased 14%, primarily due to asset write-downs associated with IT infrastructure migration and corporate office sublease, litigation accrual, increased labor and software licensing costs.
• Cash and cash equivalents at the end of the quarter was $206.0 million, down 19% year-over-year. The decrease is primarily due to the increase in PLO and inventory, the acquisition of new stores, and strategic investments.

SEGMENT RESULTS

U.S. Pawn

• PLO continued to increase, ending the year at $163.5 million, up 20% and on a same store basis.
• In the fourth quarter, total revenue was up 25% and gross profit increased 18%, reflecting increasing PSC, higher sales and improved merchandise sales gross profit. For the full year, total revenues increased 19% and gross profit increased 16%, reflecting higher average PLO for the year driving higher PSC.
• PSC increased 25% in the fourth quarter and 22% for the year as a result of higher average PLO.
• During the fourth quarter, merchandise sales gross margin decreased to 40% from 43%. For the year, merchandise sales gross profit gross margins decreased 300 bps to 41%, reflecting a focus on improving retailing and lower levels of aged general merchandise inventory (which continues to be less than 1% of total merchandise inventory).
• Net inventory increased 40% reflecting a return towards normalized inventory levels. Inventory turnover decreased to 2.5x from 2.7x in the quarter and decreased to 2.6x from 2.7x for the year.
• In the fourth quarter, store expenses increased 9%, primarily due to increased labor in-line with store activity and rent associated with lease renewals. Similarly for the full year, store expenses increased 5% (4% on a same store basis).
• Segment contribution increased 49% to $31.0 million in the fourth quarter and increased 51% to $129.1 million for the year.
• Segment store count decreased by one store due to the net impact of the acquisition of three stores and consolidation of four stores during the year.

Latin America Pawn

• PLO improved to $46.6 million, up 17% (15% on constant currency basis). On a same store basis, PLO increased 15% (13% on a constant currency basis).
• In the fourth quarter, total revenue was up 13% and on a constant currency basis, while gross profit increased 8% and on a constant currency basis. For the year, total revenues were up 30% and on a constant currency basis, while gross profit increased by 23% and on a constant currency basis.
• PSC increased to $21.5 million, up 8% (9% on a constant currency basis) as a result of higher average PLO. Similarly for the full year, PSC increased 26% and on a constant currency basis.
• Merchandise sales gross margin decreased in the fourth quarter from 34% to 31%, and for the year it decreased 500 bps to 30%, reflecting a return to more normalized margins. Aged general merchandise inventory increased to 1.9% from 0.3% of total merchandise inventory.
• Net inventory increased 28% (26% on a constant currency basis) reflecting a return towards normalized inventory levels. Inventory turnover remains strong at 3.1x, down from 3.3x for the quarter and decreased for the year to 3.5x from 3.7x.
• In the fourth quarter, store expenses increased 5% (6% on a constant currency basis) primarily due to increased labor in-line with store activity. Same-store expenses increased $0.7 million or 3% (5% on a constant currency basis). For the year, store expenses increased 18% (18% on a constant currency basis) primarily due to increased labor in-line with store activity and rent associated with lease renewals and annual inflation adjustments. Same-store expenses increased 5% and on a constant currency basis).
• For the fourth quarter, segment contribution increased to $6.7 million, up 9% (10% on a constant currency basis). For the year, segment contribution was up 39% to $24.1 million (40% increase to $24.2 million on a constant currency basis). On an adjusted basis, segment contribution for the fourth quarter was $6.7 million, flat from prior year, and the increase for the year was 33% to $24.2 million.
• Segment store count increased by 28 de novo stores opened during the year.

FORM 10-K

EZCORP’s Annual Report on Form 10-K for the year ended September 30, 2022 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, November 17, 2022, at 7:00 am Central Time to discuss Fourth Quarter and Full Year Fiscal 2022 results. Analysts and institutional investors may participate on the conference call by dialing (844) 200-6205, Conference ID: 977401, or internationally by dialing (929) 526-1599. 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.

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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”We have relabeled "net revenues" to "gross profit" throughout our filings, which we believe will improve comparability across industries and companies. This change is effective for this and future filings.
²”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.
³”Same Store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.

EZCORP, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS
	Three Months Ended September 30,								Twelve Months Ended September 30,
(in thousands, except per share amounts)	2022				2021				2022				2021
	(Unaudited)
Revenues:
Merchandise sales	$	133,276			$	111,982			$	532,886			$	442,798
Jewelry scrapping sales		12,231				7,518				32,033				26,025
Pawn service charges		87,866				72,840				320,865				260,196
Other revenues, net		34				104				441				532
Total revenues		233,407				192,444				886,225				729,551
Merchandise cost of goods sold		83,858				66,346				329,382				257,218
Jewelry scrapping cost of goods sold		11,949				6,772				28,696				22,848
Gross profit		137,600				119,326				528,147				449,485
Operating expenses:
Store expenses		95,473				88,576				357,417				330,837
General and administrative		17,855				15,625				64,342				56,495
Depreciation and amortization		9,370				7,592				32,140				30,672
(Gain) loss on sale or disposal of assets and other		18				(7	)			(674	)			83
Other charges		—				(268	)			—				229
Total operating expenses		122,716				111,518				453,225				418,316
Operating income		14,884				7,808				74,922				31,169
Interest expense		2,321				5,635				9,972				22,177
Interest income		(68	)			(559	)			(817	)			(2,477	)
Equity in net income of unconsolidated affiliates		(322	)			(1,394	)			(1,779	)			(3,803	)
Other income		(208	)			(401	)			(167	)			(790	)
Income before income taxes		13,161				4,527				67,713				16,062
Income tax expense		5,824				2,974				17,553				7,450
Net income	$	7,337			$	1,553			$	50,160			$	8,612
Basic earnings per share	$	0.13			$	0.03			$	0.89			$	0.15
Diluted earnings per share	$	0.11			$	0.03			$	0.70			$	0.15
Weighted-average basic shares outstanding		56,598				56,057				56,498				55,744
Weighted-average diluted shares outstanding		82,539				56,441				82,400				55,949

EZCORP, Inc. CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)	September 30, 2022				September 30, 2021
Assets:
Current assets:
Cash and cash equivalents	$	206,028			$	253,667
Restricted cash		8,341				9,957
Pawn loans		210,009				175,901
Pawn service charges receivable, net		33,476				29,337
Inventory, net		151,615				110,989
Prepaid expenses and other current assets		34,694				31,010
Total current assets		644,163				610,861
Investments in unconsolidated affiliates		37,733				37,724
Other investments		24,220				—
Property and equipment, net		56,725				53,811
Right-of-use asset, net		221,586				200,990
Goodwill		286,828				285,758
Intangible assets, net		56,819				62,104
Notes receivable, net		1,215				1,181
Deferred tax asset, net		12,145				9,746
Other assets		6,444				4,736
Total assets	$	1,347,878			$	1,266,911
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	84,509			$	90,268
Customer layaway deposits		16,023				12,557
Operating lease liabilities, current		52,334				52,263
Total current liabilities		152,866				155,088
Long-term debt, net		312,903				264,186
Deferred tax liability, net		373				3,684
Operating lease liabilities		180,756				161,330
Other long-term liabilities		8,749				10,385
Total liabilities		655,647				594,673
Commitments and Contingencies
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 53,454,885 as of September 30, 2022; 53,086,438 as of September 30, 2021; and 53,086,438 as of September 30, 2021		534				530
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171		30				30
Additional paid-in capital		345,330				403,312
Retained earnings		402,006				326,781
Accumulated other comprehensive loss		(55,669	)			(58,415	)
Total stockholders' equity		692,231				672,238
Total liabilities and stockholders' equity	$	1,347,878			$	1,266,911

EZCORP, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS
	Twelve Months Ended September 30,
(in thousands)	2022				2021
Operating activities:
Net income	$	50,160			$	8,612
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		32,140				30,672
Amortization of debt discount and deferred financing costs		1,433				13,797
Amortization of lease right-of-use asset		52,201				48,480
Deferred income taxes		4,945				3,283
Other adjustments		2,511				(185	)
Provision for inventory reserve		(2,253	)			(8,003	)
Stock compensation expense		5,053				3,946
Equity in net income of unconsolidated affiliates		(1,779	)			(3,803	)
Changes in operating assets and liabilities:
Service charges and fees receivable		(4,572	)			(7,332	)
Inventory		(15,341	)			371
Prepaid expenses, other current assets and other assets		3,238				7,373
Accounts payable, accrued expenses and other liabilities		(65,141	)			(54,209	)
Customer layaway deposits		3,359				1,256
Income taxes		(2,785	)			2,180
Dividends from unconsolidated affiliates		3,366
Net cash provided by operating activities		66,535				46,438
Investing activities:
Loans made		(740,057	)			(601,638	)
Loans repaid		410,523				351,092
Recovery of pawn loan principal through sale of forfeited collateral		274,423				208,551
Capital expenditures, net		(31,895	)			(23,601	)
Acquisitions, net of cash acquired		(1,850	)			(19,015	)
Issuance of note receivable		(1,000	)			—
Investment in unconsolidated affiliates		(6,927	)			—
Investment in other investments		(16,500	)			—
Net cash used in investing activities		(113,283	)			(84,611	)
Financing activities:
Taxes paid related to net share settlement of equity awards		(792	)			(839	)
Payments on assumed debt and other borrowings		—				(15,414	)
Repurchase of common stock		(2,040	)			—
Net cash used in financing activities		(2,832	)			(16,253	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		325				5,497
Net decrease in cash, cash equivalents and restricted cash		(49,255	)			(48,929	)
Cash, cash equivalents and restricted cash at beginning of period		263,624				312,553
Cash, cash equivalents and restricted cash at end of period	$	214,369			$	263,624

EZCORP, Inc. OPERATING SEGMENT RESULTS
	Three Months Ended September 30, 2022 (Unaudited)
(in thousands)	U.S. Pawn				Latin America Pawn				Other Investments				Total Segments				Corporate Items				Consolidated
Revenues:
Merchandise sales	$	95,811			$	37,465			$	—			$	133,276			$	—			$	133,276
Jewelry scrapping sales		11,875				356				—				12,231				—				12,231
Pawn service charges		66,331				21,535				—				87,866				—				87,866
Other revenues		16				—				18				34				—				34
Total revenues		174,033				59,356				18				233,407				—				233,407
Merchandise cost of goods sold		57,911				25,947				—				83,858				—				83,858
Jewelry scrapping cost of goods sold		11,476				473				—				11,949				—				11,949
Other cost of revenues		—				—				—				—				—				—
Gross profit		104,646				32,936				18				137,600				—				137,600
Store expenses		70,897				24,576				—				95,473				—				95,473
General and administrative		—				—				—				—				17,855				17,855
Depreciation and amortization		2,685				2,055				—				4,740				4,630				9,370
Gain on sale or disposal of assets and other		51				(33	)			—				18				—				18
Interest expense		—				—				—				—				2,321				2,321
Interest income		(1	)			(189	)			—				(190	)			122				(68	)
Equity in net income of unconsolidated affiliates		—				—				(322	)			(322	)			—				(322	)
Other (income) expense		—				(185	)			37				(148	)			(60	)			(208	)
Segment contribution	$	31,014			$	6,712			$	303			$	38,029
Income (loss) before income taxes													$	38,029			$	(24,868	)		$	13,161

	Three Months Ended September 30, 2021 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn				Other Investments				Total Segments				Corporate Items				Consolidated
Revenues:
Merchandise sales	$	80,950		$	31,032			$	—			$	111,982			$	—			$	111,982
Jewelry scrapping sales		5,767			1,751				—				7,518				—				7,518
Pawn service charges		52,885			19,955				—				72,840				—				72,840
Other revenues		22			—				82				104				—				104
Total revenues		139,624			52,738				82				192,444				—				192,444
Merchandise cost of goods sold		45,858			20,488				—				66,346				—				66,346
Jewelry scrapping cost of goods sold		5,130			1,642				—				6,772				—				6,772
Gross profit		88,636			30,608				82				119,326				—				119,326
Segment and corporate expenses (income):
Store expenses		65,088			23,488				—				88,576				—				88,576
General and administrative		—			—				—				—				15,625				15,625
Depreciation and amortization		2,678			1,912				—				4,590				3,002				7,592
Gain on sale of disposal of assets and other		—			(6	)			—				(6	)			(1	)			(7	)
Other Charges		—			(268	)			—				(268	)			—				(268	)
Interest expense		—			—				—				—				5,635				5,635
Interest income		—			(197	)			—				(197	)			(362	)			(559	)
Equity in net income of unconsolidated affiliates		—			—				(1,394	)			(1,394	)			—				(1,394	)
Other (income) expense		—			(465	)			10				(455	)			54				(401	)
Segment contribution	$	20,870		$	6,144			$	1,466			$	28,480
Income (loss) before income taxes												$	28,480			$	(23,953	)		$	4,527

	Twelve Months Ended September 30, 2022
(in thousands)	U.S. Pawn				Latin America Pawn				Other Investments				Total Segments				Corporate Items				Consolidated
Revenues:
Merchandise sales	$	391,958			$	140,928			$	—			$	532,886			$	—			$	532,886
Jewelry scrapping sales		25,739				6,294				—				32,033				—				32,033
Pawn service charges		240,982				79,883				—				320,865				—				320,865
Other revenues		83				247				111				441				—				441
Total revenues		658,762				227,352				111				886,225				—				886,225
Merchandise cost of goods sold		230,241				99,141				—				329,382				—				329,382
Jewelry scrapping cost of goods sold		22,755				5,941				—				28,696				—				28,696
Gross profit		405,766				122,270				111				528,147				—				528,147
Segment and corporate expenses (income):
Store expenses		266,114				91,303				—				357,417				—				357,417
General and administrative		—				—				—				—				64,342				64,342
Depreciation and amortization		10,552				7,913				—				18,465				13,675				32,140
Gain on sale or disposal of assets and other		51				(37	)			—				14				(688	)			(674	)
Interest expense		—				—				—				—				9,972				9,972
Interest income		(2	)			(815	)			—				(817	)			—				(817	)
Equity in net income of unconsolidated affiliates		—				—				(1,779	)			(1,779	)			—				(1,779	)
Other expense (income)		—				(148	)			52				(96	)			(71	)			(167	)
Segment contribution	$	129,051			$	24,054			$	1,838			$	154,943
Income (loss) before income taxes													$	154,943			$	(87,230	)		$	67,713

	Twelve Months Ended September 30, 2021
(in thousands)	U.S. Pawn			Latin America Pawn				Other Investments				Total Segments				Corporate Items				Consolidated
Revenues:
Merchandise sales	$	341,495		$	101,303			$	—			$	442,798			$	—			$	442,798
Jewelry scrapping sales		15,260			10,765				—				26,025				—				26,025
Pawn service charges		196,721			63,475				—				260,196				—				260,196
Other revenues		105			7				420				532				—				532
Total revenues		553,581			175,550				420				729,551				—				729,551
Merchandise cost of goods sold		191,039			66,179				—				257,218				—				257,218
Jewelry scrapping cost of goods sold		13,001			9,847				—				22,848				—				22,848
Gross profit		349,541			99,524				420				449,485				—				449,485
Segment and corporate expenses (income):
Store expenses		253,344			77,493				—				330,837				—				330,837
General and administrative		—			—				—				—				56,495				56,495
Depreciation and amortization		10,650			7,371				—				18,021				12,651				30,672
Loss on sale or disposal of assets and other		27			(6	)			—				21				62				83
Other Charges		—			229				—				229				—				229
Interest expense		—			—				—				—				22,177				22,177
Interest income		—			(2,016	)			—				(2,016	)			(461	)			(2,477	)
Equity in net income of unconsolidated affiliates		—			—				(3,803	)			(3,803	)			—				(3,803	)
Other (income) expense		—			(840	)			(173	)			(1,013	)			223				(790	)
Segment contribution	$	85,520		$	17,293			$	4,396			$	107,209
Income (loss) before income taxes												$	107,209			$	(91,147	)		$	16,062

EZCORP, Inc. STORE COUNT ACTIVITY (Unaudited)
	Three Months Ended September 30, 2022
	U.S. Pawn			Latin America Pawn			Consolidated
As of June 30, 2022	519			644			1,163
New locations opened	—			16			16
Locations acquired	—			—			—
Locations sold, combined or closed	(4	)		—			(4	)
As of September 30, 2022	515			660			1,175
	Three Months Ended September 30, 2021
	U.S. Pawn			Latin America Pawn			Consolidated
As of June 30, 2021	516			627			1,143
New locations opened	—			5			5
Locations acquired	—			—			—
Locations sold, combined or closed	—			—			—
As of September 30, 2021	516			632			1,148
	Twelve Months Ended September 30, 2022
	U.S. Pawn			Latin America Pawn			Consolidated
As of September 30, 2021	516			632			1,148
New locations opened	—			28			28
Locations acquired	3			—			3
Locations sold, combined or closed	(4	)		—			(4	)
As of September 30, 2022	515			660			1,175
	Twelve Months Ended September 30, 2021
	U.S. Pawn			Latin America Pawn			Consolidated
As of September 30, 2020	505			500			1,005
New locations opened	—			15			15
Locations acquired	11			128			139
Locations sold, combined or closed	—			(11	)		(11	)
As of September 30, 2021	516			632			1,148

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. 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 twelve months ended September 30, 2022 and 2021 were as follows:

		September 30,				Three Months Ended September 30,				Twelve Months Ended September 30,
		2022		2021		2022		2021		2022		2021
Mexican peso		20.1		20.5		20.2		20.0		20.4		20.2
Guatemalan quetzal		7.6		7.6		7.6		7.6		7.5		7.6
Honduran lempira		24.1		23.9		24.2		23.5		24.1		23.8
Peruvian sol		3.9		4.1		3.8		4.0		3.8		3.7

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 September 30,								Twelve Months Ended September 30,
(in millions)	2022				2021				2022				2021
Net income	$	7.3			$	1.6			$	50.2			$	8.6
Interest expense		2.3				5.6				10.0				22.2
Interest income		(0.1	)			(0.6	)			(0.8	)			(2.5	)
Income tax expense		5.8				3.0				17.6				7.5
Depreciation and amortization		9.4				7.6				32.1				30.7
EBITDA	$	24.8			$	17.2			$	109.0			$	66.5

		Total Revenues			Gross Profit			Income Before Tax				Tax Effect				Net Income				Diluted EPS				EBITDA
2022 Q4 Reported		$	233.4		$	137.6		$	13.2			$	5.9			$	7.3			$	0.11			$	24.8
Tax impact			—			—			—				(3.5	)			3.5				0.04				—
Constant currency impact			0.5			0.3			(0.3	)			(0.1	)			(0.2	)			—				(0.2	)
2022 Q4 Adjusted		$	233.9		$	137.9		$	12.9			$	2.3			$	10.6			$	0.15			$	24.6
		Total Revenues			Gross Profit			Income Before Tax				Tax Effect				Net Income				Diluted EPS				EBITDA
2022 Full Year Reported		$	886.2		$	528.1		$	67.7			$	17.5			$	50.2			$	0.70			$	109.0
Litigation Accrual			—			—			2.0				0.5				1.5				0.02				2.0
CCV Adjustment for Impairment			—			—			2.1				0.5				1.6				0.02				2.1
Tax Impact			—			—			—				(1.3	)			0.4				—				—
Constant Currency and other impact			1.2			0.6			(0.2	)			—				0.6				0.01				(0.2	)
2022 Full Year Adjusted		$	887.4		$	528.7		$	71.6			$	17.3			$	54.3			$	0.75			$	112.9
		Total Revenues			Gross Profit			Income Before Tax				Tax Effect				Net Income				Diluted EPS				EBITDA
2021 Q4 Reported		$	192.4		$	119.3		$	4.5			$	2.9			$	1.6			$	0.03			$	17.2
Acquisition expenses			—			—			1.6				0.1				1.5				0.03				1.6
Peru Reserve			—			—			(0.3	)			—				(0.3	)			—				(0.3	)
Non cash Interest			—			—			3.6				0.2				3.4				0.06				—
2021 Q4 Adjusted		$	192.4		$	119.3		$	9.4			$	3.2			$	6.2			$	0.11			$	18.5
		Total Revenues			Gross Profit			Income Before Tax				Tax Effect				Net Income				Diluted EPS				EBITDA
2021 Full Year Reported		$	729.6		$	449.5		$	16.1			$	7.5			$	8.6			$	0.15			$	66.4
Acquisition expenses			—			—			1.9				0.5				1.4				0.02				2.0
Peru Reserve			—			—			0.2				0.1				0.1				—				0.2
FY20 Contract write-off over-accrual			—			—			(0.4	)			(0.1	)			(0.3	)			(0.01	)			(0.4	)
Non cash net interest			—			—			13.8				2.3				11.6				0.21				—
2021 Full Year Adjusted		$	729.6		$	449.5		$	31.6			$	10.3			$	21.4			$	0.38			$	68.2

	Three Months Ended September 30, 2022							Twelve Months Ended September 30, 2022
(in millions)	U.S. Dollar Amount				Percentage Change YOY			U.S. Dollar Amount				Percentage Change YOY
Consolidated revenue	$	233.4			21	%		$	886.2			21	%
Currency exchange rate fluctuations		0.5							1.2
Constant currency consolidated revenue	$	233.9			22	%		$	887.4			22	%
Consolidated gross profit	$	137.6			15	%		$	528.1			18	%
Currency exchange rate fluctuations		0.3							0.6
Constant currency consolidated gross profit	$	137.9			16	%		$	528.7			18	%
Consolidated net inventory	$	151.6			37	%		$	151.6			37	%
Currency exchange rate fluctuations		(0.5	)						(0.5	)
Constant currency consolidated net inventory	$	151.1			36	%		$	151.1			36	%
Latin America Pawn gross profit	$	32.9			8	%		$	122.3			23	%
Currency exchange rate fluctuations		0.3							0.6
Constant currency Latin America Pawn gross profit	$	33.2			8	%		$	122.9			23	%
Latin America Pawn PLO	$	46.6			17	%		$	46.6			17	%
Currency exchange rate fluctuations		(0.6	)						(0.6	)
Constant currency Latin America Pawn PLO	$	46.0			15	%		$	46.0			15	%
Latin America Pawn PSC revenues	$	21.5			8	%		$	79.9			26	%
Currency exchange rate fluctuations		0.2							0.3
Constant currency Latin America Pawn PSC revenues	$	21.7			9	%		$	80.2			26	%
Latin America Pawn merchandise sales	$	37.5			21	%		$	140.9			39	%
Currency exchange rate fluctuations		0.3							0.9
Constant currency Latin America Pawn merchandise sales	$	37.8			22	%		$	141.8			40	%
Latin America Pawn segment profit before tax	$	6.7			9	%		$	24.1			39	%
Currency exchange rate fluctuations		—							0.1
Constant currency Latin America Pawn segment profit before tax	$	6.7			10	%		$	24.2			39	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221116005953/en/

Email: Investor_Relations@ezcorp.com

Phone: (512) 314-2220

Source: EZCORP, Inc.

FAQ

What were EZCORP's earnings for Q4 2022?

EZCORP reported net income of $7.3 million for Q4 2022.

How much did EZCORP's revenue increase in Q4 2022?

Revenue increased by 21% to $233.4 million in Q4 2022.

What is the current pawn loans outstanding for EZCORP?

Pawn loans outstanding reached a record high of $210.0 million.

What is the diluted earnings per share for EZCORP in Q4 2022?

The diluted earnings per share for Q4 2022 was $0.11.

How many new stores did EZCORP open in Q4 2022?

EZCORP opened 16 new stores in Latin America during Q4 2022.