EZCORP Reports Second Quarter Fiscal 2024 Results

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Insights

The reported increase in net income to $21.5 million from a net loss of $6.8 million signals a substantial turnaround in profitability for EZCORP, indicating a robust operational performance. This significant shift from a loss to a profit scenario could suggest an enhanced investor confidence which may, in turn, affect the stock's valuation positively. However, it's vital for an investor to understand that part of the previous year's loss stemmed from a one-time, non-cash goodwill impairment, which implies that the current growth also reflects an adjustment from that extraordinary expense.

The 11% revenue growth coupled with a 12% increase in gross profit reflects sound management of the company's revenue streams and cost control measures. The consistent gross margin at 35% within the targeted range signals stable financial control over sales profitability. Additionally, the uptick in pawn loans outstanding (PLO) by 14% seemingly indicates an expansion in the company's lending base, which could be a response to growing demand in the economic environment.

From a liquidity standpoint, the 6% year-over-year decrease in cash and cash equivalents might raise questions about the company's cash flow management. However, this should be weighed against strategic growth activities, such as the repurchase of shares and store acquisitions, which could be accretive to long-term shareholder value.

Given these factors, particularly the revenue growth, profitability and strategic expansion, the financial outlook for EZCORP appears favorable in the short to medium term.

The expansion of EZCORP's store network, both organically and through acquisitions, as well as a 61% year-over-year increase in EZ+ Rewards membership, illustrates an aggressive push for market share. This is underscored by the company's strategic investments in customer engagement and technology, such as the rollout of online payments, which saw a 72% increase in collections in the U.S. These customer-focused initiatives likely aim to build a solid foundation for long-term loyalty and revenue growth.

Additionally, the company's focus on recruitment and retention, alongside investments in technology, suggests an emphasis on operational efficiency and customer service quality. As retail investors analyze the potential of EZCORP's stock, this commitment to operational excellence could be seen as a proactive measure to mitigate risks associated with labor shortages and competitive market pressures.

Investors may also note the robustness of EZCORP's business model, which seems to thrive during challenging macro-economic conditions, as suggested by increased demand for short-term cash and pre-owned goods. This counter-cyclical dynamic might position the company favorably in periods of economic uncertainty, which could be a strategic advantage.

05/01/2024 - 04:17 PM

Record Q2 Revenues Driving Strong Earnings Growth

AUSTIN, Texas, May 01, 2024 (GLOBE NEWSWIRE) -- 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, 2024.

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

Net income of $21.5 million, up from a net loss of $6.8 million. In the prior-year we recorded our share of the one-time, non-cash goodwill impairment and discrete adjustments recognized by Cash Converters International of $25.6 million. On an adjusted basis¹, net income increased $3.6 million or 21%.
Diluted earnings per share of $0.29, up from diluted loss per share of $0.12. On an adjusted basis, diluted earnings per share of $0.28, compared to $0.23.
Total revenues increased 11%, and gross profit increased 12%.
Merchandise sales gross margin remains within our targeted range at 35%.
Pawn loans outstanding (PLO) up 14% to $235.8 million.
Return on earning assets (ROEA) remains strong at 165%.

CEO COMMENTARY AND OUTLOOK

Lachie Given, Chief Executive Officer, stated, “We achieved record second quarter revenue and PLO, driven by strong consumer demand and excellent customer service. The challenging macro-economic environment continues to fuel robust customer demand for short-term cash and pre-owned and recycled goods.

“During the second quarter, we opened nine de novo stores in Latin America and acquired six stores in the U.S. We also consolidated six stores, five in Latin America and one in the U.S., which netted an additional nine stores. We now have a total of 1,246 stores across the organization and over 7,800 team members. Our strong balance sheet allows us to continue to build scale, both organically and by acquiring new stores. In addition, we continue to return capital to our shareholders, having repurchased $3.0 million worth of EZCORP shares during the quarter.

“We have 4.6 million EZ+ Rewards members, an increase of 61% over the second quarter of 2023 and 10% over last quarter. Online payments continue to gain traction with customers, and we collected $21.8 million in the U.S., up 72%, and have expanded online payments to our stores in Mexico. These initiatives to increase customer loyalty and engagement and provide a more convenient customer experience are an integral part of our growth in the local neighborhoods in which we operate.

“Thank you to our exceptional EZCORP team members for delivering another outstanding quarter of excellent operating and financial results for our shareholders. We will continue to invest in our team and our stores, focusing on recruitment and retention, while also investing in technology and other initiatives to enhance the customer experience. This focus and investment continues to enhance value for all of our shareholders,” concluded Given.

CONSOLIDATED RESULTS

Three Months Ended March 31	As Reported					Adjusted¹
in millions, except per share amounts		2024		2023			2024		2023

Total revenues	$	285.6	$	258.4		$	280.2	$	258.4
Gross profit	$	167.6	$	149.2		$	164.6	$	149.2
Income (loss) before tax	$	28.7	$	(7.3	)	$	27.6	$	24.3
Net income (loss)	$	21.5	$	(6.8	)	$	20.7	$	17.1
Diluted earnings (loss) per share	$	0.29	$	(0.12	)	$	0.28	$	0.23
EBITDA (non-GAAP measure)	$	37.4	$	2.1		$	36.2	$	33.8

Diluted earnings per share of $0.29, up from diluted loss per share of $0.12. On an adjusted basis, diluted earnings per share of $0.28, up from $0.23. The primary difference between GAAP and Adjusted financial results is attributable to our share of the previously announced prior year one-time, non-cash goodwill impairment recognized by Cash Converters International.
Income before taxes was $28.7 million, up from loss before taxes of $7.3 million, and adjusted EBITDA increased 7% to $36.2 million.
PLO increased 14% to $235.8 million, up $29.7 million. On a same-store basis², PLO increased 12% due to improved operational performance and continued strong pawn demand.
Total revenues increased 11%, and gross profit increased 12%, reflecting improved pawn service charge (PSC) revenues, merchandise sales and merchandise sales gross profit.
PSC increased 15% as a result of higher average PLO.
Merchandise sales gross margin remains within our target range at 35%. Aged general merchandise was 2.3% of total general merchandise inventory.
Net inventory increased 9%, as expected with the growth in PLO. Inventory turnover increased to 2.9x, from 2.8x.
Store expenses increased 13%, 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 11%.
General and administrative expenses increased 17%, primarily due to labor driven by incentive compensation related to an increase in share price and, to a lesser extent, costs related to the implementation of Workday.
Cash and cash equivalents at the end of the quarter was $229.1 million, down 6% year-over-year. The decrease was due to the increase in PLO and inventory, strategic investments, share repurchases, and the acquisition of new stores, partially offset by cash inflows provided by operating activities.

SEGMENT RESULTS

U.S. Pawn

PLO ended the quarter at $173.7 million, up 11% or 9% on a same store basis.
Total revenue and gross profit was up 10%, reflecting increased PSC and higher merchandise sales.
PSC increased 14% as a result of higher average PLO.
Merchandise sales increased 6%, and gross margin decreased to 37% from 38%. Aged general merchandise increased to 3.0% of total general merchandise inventory, primarily driven by luxury handbags in our Max Pawn stores.
Net inventory increased 9%, as expected with the growth in PLO. Inventory turnover remained flat at 2.6x.
Store expenses increased 12%, primarily due to salaries and benefits as we continue to support our team members as a part of People, Pawn and Passion focus, higher store count and, to a lesser extent, expenses related to our loyalty program.
Segment contribution increased 8% to $40.7 million.
During the quarter, net store count increased by five due to the acquisition of six stores and the consolidation of one store.

Latin America Pawn

PLO improved to $62.0 million, up 26% (19% on constant currency basis). On a same store basis, PLO increased 22% (15% on a constant currency basis) due to improved operational performance and continued strong pawn demand.
Total revenues was up 12% (4% on constant currency basis), and gross profit increased 18% (10% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved merchandise sales gross profit.
PSC increased 18% (10% on a constant currency basis) as a result of higher average PLO.
Merchandise sales gross margin increased to 33% from 32%. Aged general merchandise was 1.4% of total merchandise inventory.
Net inventory increased 9% (2% on a constant currency basis). Inventory turnover increased to 3.6x from 3.5x.
Store expenses increased 15% (7% on a constant currency basis), primarily due to higher store count. Same-store expenses increased 10% (2% on a constant currency basis).
Segment contribution increased 2% (decreased 3% on a constant currency basis). On an adjusted basis, segment contribution was up 38% to $7.7 million, with the primary adjustment being the prior year reversal of contingent consideration liability of $2.5 million in connection with a previously completed acquisition.
During the quarter, net store count increased by four due to the opening of nine de novo stores and the consolidation of five stores.

FORM 10-Q

EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 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 2, 2024, at 8:00 am Central Time to discuss Second Quarter Fiscal 2024 results. Analysts and institutional investors may participate on the conference call by registering online at: https://register.vevent.com/register/BIc16d26b733bc44b7aecc33d2d530fef4. Once registered you will receive the dial-in details with a unique PIN to join the call. 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 pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and 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.

Contact:
Email: Investor_Relations@ezcorp.com
Phone: (512) 314-2220

EZCORP, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended March 31,						Six Months Ended March 31,
(in thousands, except per share amounts)		2024			2023			2024			2023
Revenues:
Merchandise sales	$	164,687		$	152,507		$	344,090		$	316,294
Jewelry scrapping sales		13,714			12,825			27,796			20,709
Pawn service charges		107,163			93,030			213,612			185,623
Other revenues		75			61			132			124
Total revenues		285,639			258,423			585,630			522,750
Merchandise cost of goods sold		106,259			97,339			221,469			202,216
Jewelry scrapping cost of goods sold		11,788			11,902			23,996			18,855
Gross profit		167,592			149,182			340,165			301,679
Operating expenses:
Store expenses		114,582			101,269			225,137			202,072
General and administrative		18,266			15,609			34,809			31,085
Depreciation and amortization		8,219			7,963			16,784			15,951
Loss (gain) on sale or disposal of assets and other		3			73			(169	)		57
Other income		(765	)		(2,465	)		(765	)		(2,465	)
Total operating expenses		140,305			122,449			275,796			246,700
Operating income		27,287			26,733			64,369			54,979
Interest expense		3,402			3,390			6,842			9,580
Interest income		(2,882	)		(1,898	)		(5,521	)		(2,562	)
Equity in net (income) loss of unconsolidated affiliates		(1,719	)		32,501			(2,872	)		30,917
Other (income) expense		(165	)		80			(436	)		(154	)
Income (loss) before income taxes		28,651			(7,340	)		66,356			17,198
Income tax expense (benefit)		7,172			(550	)		16,407			7,210
Net income (loss)	$	21,479		$	(6,790	)	$	49,949		$	9,988

Basic earnings (loss) per share	$	0.39		$	(0.12	)	$	0.91		$	0.18
Diluted earnings (loss) per share	$	0.29		$	(0.12	)	$	0.65		$	0.11

Weighted-average basic shares outstanding		55,093			55,648			55,084			55,981
Weighted-average diluted shares outstanding		83,045			55,648			84,948			65,269

EZCORP, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except share and per share amounts)	March 31, 2024			March 31, 2023			September 30, 2023

Assets:
Current assets:
Cash and cash equivalents	$	229,111		$	243,128		$	220,595
Restricted cash		8,581			8,451			8,373
Pawn loans		235,773			206,096			245,766
Pawn service charges receivable, net		38,268			33,116			38,885
Inventory, net		163,429			150,297			166,477
Prepaid expenses and other current assets		47,142			45,564			39,623
Total current assets		722,304			686,652			719,719
Investments in unconsolidated affiliates		13,162			10,681			10,987
Other investments		51,220			39,220			36,220
Property and equipment, net		63,306			59,775			68,096
Right-of-use assets, net		243,752			234,287			234,388
Goodwill		310,658			300,078			302,372
Intangible assets, net		61,714			59,620			58,216
Notes receivable, net		—			1,233			—
Deferred tax asset, net		26,247			19,127			25,702
Other assets, net		15,779			9,859			12,011
Total assets	$	1,508,142		$	1,420,532		$	1,467,711

Liabilities and equity:
Current liabilities:
Current maturities of long-term debt, net	$	34,347		$	—		$	34,265
Accounts payable, accrued expenses and other current liabilities		62,838			72,695		$	81,605
Customer layaway deposits		20,352			18,761			18,920
Operating lease liabilities, current		55,658			53,921			57,182
Total current liabilities		173,195			145,377			191,972
Long-term debt, net		326,573			359,287			325,847
Deferred tax liability, net		465			368			435
Operating lease liabilities		197,285			191,874			193,187
Other long-term liabilities		10,228			11,038			10,502
Total liabilities		707,746			707,944			721,943
Commitments and contingencies (Note 9)
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding : 52,057,309 as of March 31, 2024; 52,561,071 as of March 31, 2023; and 51,869,569 as of September 30, 2023		521			526			519
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		345,174			343,088			346,181
Retained earnings		477,683			405,961			431,140
Accumulated other comprehensive loss		(23,012	)		(37,017	)		(32,102	)
Total equity		800,396			712,588			745,768
Total liabilities and equity	$	1,508,142		$	1,420,532		$	1,467,711

EZCORP, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Six Months Ended March 31,
(in thousands)		2024			2023

Operating activities:
Net income	$	49,949		$	9,988
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		16,784			15,951
Amortization of debt discount and deferred financing costs		807			736
Non-cash lease expense		29,514			27,546
Deferred income taxes		515			(6,987	)
Other adjustments		(1,429	)		(2,386	)
Provision for inventory reserve		183			280
Stock compensation expense		4,844			3,741
Equity in net (income) loss from investment in unconsolidated affiliates		(2,872	)		30,917
Net loss on extinguishment of debt		—			3,545
Changes in operating assets and liabilities, net of business acquisitions:
Pawn service charges receivable		1,071			1,357
Inventory		1,617			(2,306	)
Prepaid expenses, other current assets and other assets		(8,699	)		(3,639	)
Accounts payable, accrued expenses and other liabilities		(57,531	)		(43,969	)
Customer layaway deposits		886			1,426
Income taxes		909			8,852
Dividends from unconsolidated affiliates		—			1,775
Net cash provided by operating activities		36,548			46,827
Investing activities:
Loans made		(433,194	)		(378,717	)
Loans repaid		262,970			230,604
Recovery of pawn loan principal through sale of forfeited collateral		188,351			171,504
Capital expenditures, net		(13,654	)		(18,439	)
Acquisitions, net of cash acquired		(8,610	)		(12,968	)
Issuance of notes receivable		—			(15,500	)
Investment in unconsolidated affiliate		(850	)		(2,133	)
Investment in other investments		(15,000	)		(15,000	)
Dividends from unconsolidated affiliates		1,745			—
Net cash used in investing activities		(18,242	)		(40,649	)
Financing activities:
Taxes paid related to net share settlement of equity awards		(3,253	)		(1,149	)
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	)
Purchase and retirement of treasury stock		(6,010	)		(10,978	)
Payments of finance leases		(276	)		—
Net cash (used in) provided by financing activities		(9,539	)		29,976
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(43	)		1,056
Net increase in cash, cash equivalents and restricted cash		8,724			37,210
Cash and cash equivalents and restricted cash at beginning of period		228,968			214,369
Cash and cash equivalents and restricted cash at end of period	$	237,692		$	251,579

EZCORP, Inc. OPERATING SEGMENT RESULTS

	Three Months Ended March 31, 2024 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	114,849		$	49,838		$	—		$	164,687		$	—		$	164,687
Jewelry scrapping sales		12,686			1,028			—			13,714			—			13,714
Pawn service charges		80,010			27,153			—			107,163			—			107,163
Other revenues		29			15			31			75			—			75
Total revenues		207,574			78,034			31			285,639			—			285,639
Merchandise cost of goods sold		72,798			33,461			—			106,259			—			106,259
Jewelry scrapping cost of goods sold		10,794			994			—			11,788			—			11,788
Gross profit		123,982			43,579			31			167,592			—			167,592
Segment and corporate expenses (income):
Store expenses		80,840			33,742			—			114,582			—			114,582
General and administrative		—			—			—			—			18,266			18,266
Depreciation and amortization		2,516			2,392			—			4,908			3,311			8,219
(Gain) loss on sale or disposal of assets and other		(30	)		(66	)		—			(96	)		99			3
Other income		—			—			—			—			(765	)		(765	)
Interest expense		—			—			—			—			3,402			3,402
Interest income		—			(608	)		(633	)		(1,241	)		(1,641	)		(2,882	)
Equity in net income of unconsolidated affiliates		—			—			(1,719	)		(1,719	)		—			(1,719	)
Other expense (income)		—			1			14			15			(180	)		(165	)
Segment contribution	$	40,656		$	8,118		$	2,369		$	51,143
Income (loss) before income taxes										$	51,143		$	(22,492	)	$	28,651

	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
Gross profit		112,338			36,834			10			149,182			—			149,182
Segment and corporate expenses (income):
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) on sale or disposal of assets		81			(8	)		—			73			—			73
Other income		—			(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	)

	Six Months Ended March 31, 2024 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	240,362		$	103,728		$	—		$	344,090		$	—		$	344,090
Jewelry scrapping sales		25,501			2,295			—			27,796			—			27,796
Pawn service charges		159,083			54,529			—			213,612			—			213,612
Other revenues		66			31			35			132			—			132
Total revenues		425,012			160,583			35			585,630			—			585,630
Merchandise cost of goods sold		151,507			69,962			—			221,469			—			221,469
Jewelry scrapping cost of goods sold		22,078			1,918			—			23,996			—			23,996
Gross profit		251,427			88,703			35			340,165			—			340,165
Segment and corporate expenses (income):
Store expenses		158,095			67,042			—			225,137			—			225,137
General and administrative		—			—			—			—			34,809			34,809
Depreciation and amortization		5,140			4,731			—			9,871			6,913			16,784
(Gain) loss on sale or disposal of assets and other		(4	)		(262	)		—			(266	)		97			(169	)
Other income		—			—			—			—			(765	)		(765	)
Interest expense		—			—			—			—			6,842			6,842
Interest income		—			(1,028	)		(1,206	)		(2,234	)		(3,287	)		(5,521	)
Equity in net loss of unconsolidated affiliates		—			—			(2,872	)		(2,872	)		—			(2,872	)
Other (income) expense		—			(47	)		15			(32	)		(404	)		(436	)
Segment contribution		88,196			18,267		$	4,098		$	110,561
Income (loss) before income taxes										$	110,561		$	(44,205	)	$	66,356

	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 income		—			(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	)
Segment contribution (loss)	$	77,043		$	15,525		$	(30,895	)	$	61,673
Income (loss) before income taxes										$	61,673		$	(44,475	)	$	17,198

EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)

	Three Months Ended March 31, 2024
	U.S. Pawn		Latin America Pawn		Consolidated

As of December 31, 2023	530		707		1,237
New locations opened	—		9		9
Locations acquired	6		—		6
Locations combined or closed	(1	)	(5	)	(6	)
As of March 31, 2024	535		711		1,246

	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

	Six Months Ended March 31, 2024
	U.S. Pawn		Latin America Pawn		Consolidated

As of September 30, 2023	529		702		1,231
New locations opened	—		14		14
Locations acquired	7		—		7
Locations combined or closed	(1	)	(5	)	(6	)
As of March 31, 2024	535		711		1,246

	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 combined or closed	—	(1	)	(1	)
As of March 31, 2023	527	672		1,199

Non-GAAP Financial Information (Unaudited)

In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“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, 2024 and 2023 were as follows:

	March 31,		Three Months Ended March 31,		Six Months Ended March 31,
	2024	2023	2024	2023	2024	2023

Mexican peso	16.6	18.1	17.0	18.7	17.3	19.2
Guatemalan quetzal	7.6	7.6	7.6	7.6	7.6	7.6
Honduran lempira	24.4	24.4	24.4	24.3	24.4	24.3
Australian dollar	1.5	1.5	1.5	1.5	1.5	1.5

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)		2024			2023

Net income (loss)	$	21.5		$	(6.8	)
Interest expense		3.4			3.4
Interest income		(2.9	)		(1.9	)
Income tax expense (benefit)		7.2			(0.6	)
Depreciation and amortization		8.2			8.0
EBITDA	$	37.4		$	2.1

	Total Revenues			Gross Profit			Income Before Tax			Tax Effect			Net Income			Diluted EPS			EBITDA

2024 Q2 Reported	$	285.6		$	167.6		$	28.7		$	7.2		$	21.5		$	0.29		$	37.4
Corporate lease termination		—			—			(0.8	)		(0.2	)		(0.6	)		(0.01	)		(0.8	)
FX Impact		—			—			0.1			—			0.1			—			0.1
Constant Currency and other impact		(5.4	)		(3.0	)		(0.4	)		(0.1	)		(0.3	)		—			(0.5	)
2024 Q2 Adjusted	$	280.2		$	164.6		$	27.6		$	6.9		$	20.7		$	0.28		$	36.2

	Total Revenues		Gross Profit		Income Before Tax			Tax Effect			Net Income			Diluted EPS			EBITDA

2023 Q2 Reported	$	258.4	$	149.2	$	(7.3	)	$	(0.5	)	$	(6.8	)	$	(0.12	)	$	2.1
CCV Impairment and discrete adjustments		—		—		34.0			8.4			25.6			0.29			34.0
Contingent consideration liability		—		—		(2.4	)		(0.7	)		(1.7	)		(0.02	)		(2.4	)
Impact of dilutive instruments*		—		—		—			—			—			0.08			—
2023 Q2 Adjusted	$	258.4	$	149.2	$	24.3		$	7.2		$	17.1		$	0.23		$	33.8

	Three Months Ended March 31, 2024					Six Months Ended March 31, 2024
(in millions)	U.S. Dollar Amount			Percentage Change YOY		U.S. Dollar Amount			Percentage Change YOY

Consolidated revenues	$	285.6		11	%	$	585.6		12	%
Currency exchange rate fluctuations		(5.4	)				(12.6	)
Constant currency consolidated revenues	$	280.2		8	%	$	573.0		10	%

Consolidated gross profit	$	167.6		12	%	$	340.2		13	%
Currency exchange rate fluctuations		(3.0	)				(6.8	)
Constant currency consolidated gross profit	$	164.6		10	%	$	333.4		11	%

Consolidated net inventory	$	163.4		9	%	$	163.4		9	%
Currency exchange rate fluctuations		(2.8	)				(2.8	)
Constant currency consolidated net inventory	$	160.6		7	%	$	160.6		7	%

Latin America Pawn gross profit	$	43.6		18	%	$	88.7		20	%
Currency exchange rate fluctuations		(3.0	)				(6.8	)
Constant currency Latin America Pawn gross profit	$	40.6		10	%	$	81.9		11	%

Latin America Pawn PLO	$	62.0		26	%	$	62.0		26	%
Currency exchange rate fluctuations		(3.7	)				(3.7	)
Constant currency Latin America Pawn PLO	$	58.3		19	%	$	58.3		19	%

Latin America Pawn PSC revenues	$	27.2		18	%	$	54.5		18	%
Currency exchange rate fluctuations		(1.8	)				(3.9	)
Constant currency Latin America Pawn PSC revenues	$	25.4		10	%	$	50.6		9	%

Latin America Pawn merchandise sales	$	49.8		14	%	$	103.7		16	%
Currency exchange rate fluctuations		(3.6	)				(8.5	)
Constant currency Latin America Pawn merchandise sales	$	46.2		6	%	$	95.2		7	%

Latin America Pawn segment profit before tax	$	8.1		2	%	$	18.3		18	%
Currency exchange rate fluctuations		(0.4	)				(1.1	)
Constant currency Latin America Pawn segment profit before tax	$	7.7		(4) %		$	17.1		10	%

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. 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.

FAQ

What was EZCORP's net income in Q2 2024?

EZCORP reported a net income of $21.5 million in Q2 2024.

What was the change in diluted earnings per share from the previous year?

Diluted earnings per share increased to $0.29 from a loss per share of $0.12 year-over-year.

How much did total revenues and gross profit increase by?

Total revenues grew by 11% and gross profit by 12% in Q2 2024.

What was the percentage increase in pawn loans outstanding?

Pawn loans outstanding rose by 14% to $235.8 million in Q2 2024.

What was the return on earning assets (ROEA) for EZCORP?

The return on earning assets (ROEA) remained strong at 165% for EZCORP.

EZCORP Reports Second Quarter Fiscal 2024 Results

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What was EZCORP's net income in Q2 2024?

What was the change in diluted earnings per share from the previous year?

How much did total revenues and gross profit increase by?

What was the percentage increase in pawn loans outstanding?

What was the return on earning assets (ROEA) for EZCORP?

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EZCORP Reports Second Quarter Fiscal 2024 Results

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What was EZCORP's net income in Q2 2024?

What was the change in diluted earnings per share from the previous year?

How much did total revenues and gross profit increase by?

What was the percentage increase in pawn loans outstanding?

What was the return on earning assets (ROEA) for EZCORP?

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