EZCORP Reports Third Quarter Fiscal 2024 Results
EZCORP (NASDAQ: EZPW) reported strong Q3 fiscal 2024 results, with record pawn loans outstanding (PLO) of $261.7 million, up 14% year-over-year. Total revenues increased 10% to $281.4 million, while gross profit rose 12% to $166.7 million. Net income was $18.0 million, with diluted earnings per share of $0.25. On an adjusted basis, net income increased 14% to $17.0 million, with diluted earnings per share of $0.23.
The company expanded its footprint by adding 12 new stores, bringing the total to 1,258 locations. EZCORP's EZ+ Rewards program now has 5 million members, up 51% year-over-year. Online payments in the U.S. increased 49% to $21.7 million. The company maintains a strong balance sheet with $218.0 million in cash and cash equivalents, enabling continued growth and strategic acquisitions.
EZCORP (NASDAQ: EZPW) ha riportato risultati solidi per il terzo trimestre dell'anno fiscale 2024, registrando prestiti impegnati (PLO) record di 261,7 milioni di dollari, con un incremento del 14% rispetto all'anno precedente. I ricavi totali sono aumentati del 10% a 281,4 milioni di dollari, mentre il profitto lordo è salito del 12% a 166,7 milioni di dollari. L'utile netto è stato di 18,0 milioni di dollari, con un utili per azione diluiti di 0,25 dollari. Su base rettificata, l'utile netto è aumentato del 14% a 17,0 milioni di dollari, con un utile per azione diluiti di 0,23 dollari.
L'azienda ha ampliato la sua presenza aprendo 12 nuovi negozi, portando il totale a 1.258 sedi. Il programma EZ+ Rewards di EZCORP conta ora 5 milioni di membri, in aumento del 51% su base annua. I pagamenti online negli Stati Uniti sono aumentati del 49% a 21,7 milioni di dollari. L'azienda mantiene un forte bilancio, con 218,0 milioni di dollari in contante e equivalenti, permettendo una crescita continua e acquisizioni strategiche.
EZCORP (NASDAQ: EZPW) reportó resultados sólidos para el tercer trimestre del año fiscal 2024, con préstamos de empeño (PLO) récord de 261,7 millones de dólares, un aumento del 14% en comparación con el año anterior. Los ingresos totales aumentaron un 10% a 281,4 millones de dólares, mientras que la ganancia bruta creció un 12% a 166,7 millones de dólares. La utilidad neta fue de 18,0 millones de dólares, con ganancias por acción diluidas de 0,25 dólares. En términos ajustados, la utilidad neta aumentó un 14% a 17,0 millones de dólares, con ganancias por acción diluidas de 0,23 dólares.
La compañía amplió su presencia al agregar 12 nuevas tiendas, lo que eleva el total a 1,258 ubicaciones. El programa de recompensas EZ+ de EZCORP ahora cuenta con 5 millones de miembros, un aumento del 51% interanual. Los pagos en línea en EE. UU. aumentaron un 49% a 21,7 millones de dólares. La compañía mantiene un sólido balance con 218,0 millones de dólares en efectivo y equivalentes, lo que permite un crecimiento continuo y adquisiciones estratégicas.
EZCORP (NASDAQ: EZPW)는 2024 회계 연도 3분기 실적을 발표했으며, 담보 대출(PLO)이 2억 6,170만 달러에 도달하여 전년 대비 14% 증가했습니다. 총 수익은 2억 8,140만 달러로 10% 증가했으며, 총 이익은 1억 6,670만 달러로 12% 상승했습니다. 순이익은 1,800만 달러로 줄어들었고, 희석 주당순이익은 0.25달러로 보고되었습니다. 조정 기준으로 볼 때, 순이익이 14% 증가한 1,700만 달러로, 희석 주당순이익은 0.23달러입니다.
회사는 12개의 신규 매장을 추가하여 총 1,258개 매장으로 확대했습니다. EZCORP의 EZ+ 리워드 프로그램은 현재 500만 명의 회원을 보유하고 있으며, 이는 전년 대비 51% 증가한 수치입니다. 미국의 온라인 결제는 49% 증가하여 2,170만 달러에 달했습니다. 회사는 2억 1,800만 달러의 현금 및 현금 등가물을 보유하고 있어 지속적인 성장과 전략적 인수를 가능하게 하고 있습니다.
EZCORP (NASDAQ: EZPW) a annoncé de solides résultats pour le troisième trimestre de l'exercice 2024, avec un montant record de prêts sur gage (PLO) de 261,7 millions de dollars, en hausse de 14 % par rapport à l'année précédente. Les revenus totaux ont augmenté de 10 % pour atteindre 281,4 millions de dollars, tandis que le bénéfice brut a progressé de 12 % à 166,7 millions de dollars. Le bénéfice net s'est élevé à 18,0 millions de dollars, avec un bénéfice par action dilué de 0,25 dollar. Sur une base ajustée, le bénéfice net a augmenté de 14 % pour atteindre 17,0 millions de dollars, avec un bénéfice par action dilué de 0,23 dollar.
L'entreprise a élargi sa présence en ajoutant 12 nouveaux magasins, portant le total à 1 258 emplacements. Le programme de récompenses EZ+ d'EZCORP compte désormais 5 millions de membres, soit une augmentation de 51 % d'une année à l'autre. Les paiements en ligne aux États-Unis ont augmenté de 49 % pour atteindre 21,7 millions de dollars. L'entreprise maintient une forte solidité financière avec 218,0 millions de dollars en espèces et équivalents, permettant une croissance continue et des acquisitions stratégiques.
EZCORP (NASDAQ: EZPW) hat starke Ergebnisse für das dritte Quartal des Geschäftsjahres 2024 veröffentlicht, mit einem Rekordbestand an Pfandkrediten (PLO) von 261,7 Millionen Dollar, was einem Anstieg von 14% im Jahresvergleich entspricht. Die Gesamtumsätze stiegen um 10% auf 281,4 Millionen Dollar, während der Bruttogewinn um 12% auf 166,7 Millionen Dollar zunahm. Der Nettogewinn betrug 18,0 Millionen Dollar, mit einem verwässerten Gewinn pro Aktie von 0,25 Dollar. Auf bereinigter Basis stieg der Nettogewinn um 14% auf 17,0 Millionen Dollar, bei einem verwässerten Gewinn pro Aktie von 0,23 Dollar.
Das Unternehmen erweiterte seine Präsenz durch die Eröffnung von 12 neuen Filialen, sodass die Gesamtzahl auf 1.258 Standorte steigt. Das EZ+ Rewards-Programm von EZCORP hat nun 5 Millionen Mitglieder, was einem Anstieg von 51% im Jahresvergleich entspricht. Online-Zahlungen in den USA stiegen um 49% auf 21,7 Millionen Dollar. Das Unternehmen hat eine starke Bilanz mit 218,0 Millionen Dollar in Bargeld und Barmitteln, was weiteres Wachstum und strategische Übernahmen ermöglicht.
- Record Q3 revenues and highest PLO in company history
- Total revenues increased 10% to $281.4 million
- Gross profit rose 12% to $166.7 million
- Adjusted net income increased 14% to $17.0 million
- Adjusted EBITDA increased 15% to $31.6 million
- Added 12 new stores, expanding total store count to 1,258
- EZ+ Rewards program membership grew 51% to 5 million members
- Online payments in the U.S. increased 49% to $21.7 million
- Cash and cash equivalents decreased 8% year-over-year to $218.0 million
- Inventory turnover decreased to 2.7x from 2.8x
- Aged general merchandise in U.S. Pawn increased to 5.0% of total general merchandise inventory
Insights
EZCORP's Q3 FY2024 results demonstrate robust growth and operational strength in a challenging economic environment. The company reported record Q3 revenues and its highest-ever pawn loans outstanding (PLO) of
Key financial highlights include:
- Total revenues increased
10% to$281.4 million - Gross profit rose
12% to$166.7 million - Adjusted net income grew
14% to$17.0 million - Adjusted diluted EPS improved from
$0.20 to$0.23
The company's merchandise sales gross margin remained strong at
EZCORP's expansion strategy is noteworthy, with 12 new stores added during the quarter. This growth, coupled with the EZ+ Rewards program's success (now at 5 million members), positions the company well for future revenue growth. The
However, investors should note the slight increase in aged general merchandise in the U.S. segment to
Overall, EZCORP's Q3 results reflect a company capitalizing on market conditions and executing its growth strategy effectively, positioning it well for continued success in the pawn industry.
EZCORP's Q3 FY2024 results offer valuable insights into the current state of the pawn industry and broader economic trends. The
The company's expansion in both the U.S. and Latin America markets is strategic, capitalizing on the increased demand for pawn services. The addition of 12 new stores, including six de novo stores in Latin America, demonstrates EZCORP's commitment to growth and market penetration. This expansion strategy could lead to increased market share and revenue opportunities in the long term.
The success of the EZ+ Rewards program, now boasting 5 million members (up
The
Interestingly, the Latin America segment showed stronger PLO growth (
Record PLO and Q3 Revenues
AUSTIN, Texas, July 31, 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 third quarter ended June 30, 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.
THIRD QUARTER HIGHLIGHTS
- Pawn loans outstanding (PLO) up
14% to$261.7 million . - Total revenues increased
10% and gross profit increased12% , while merchandise sales gross margin remains within our targeted range at36% . - Net income of
$18.0 million , compared to$18.2 million . On an adjusted basis1, net income increased$2.2 million or14% . - Diluted earnings per share of
$0.25 , up from$0.24 . On an adjusted basis, diluted earnings per share of$0.23 , compared to$0.20 . - Return on earning assets (ROEA) remains strong at
160% .
CEO COMMENTARY AND OUTLOOK
Lachie Given, Chief Executive Officer, stated, “Our team delivered another outstanding quarter for our shareholders, driven by strong customer demand and continued focus on operational execution at the store level. As a result, we achieved record Q3 revenues and our highest level of PLO in Company history. The challenging macro-economic climate continues to fuel robust customer interest in short-term cash solutions and high-quality pre-owned goods, and the team’s focus on market-leading customer service drove excellent operational and financial results, increasing adjusted EBITDA by
“During the quarter, we grew our footprint by adding twelve new stores, including six de novo stores in Latin America and one in the U.S., as well as acquiring five stores in the U.S. We now operate 1,258 stores and employ over 8,000 team members. Our strong, liquid balance sheet enables us to continue scaling the business, organically through new store openings and through strategic acquisitions. Additionally, we demonstrated our commitment to returning capital to shareholders by repurchasing
“We continue to prioritize convenience and a seamless customer experience to drive loyalty and engagement. Our EZ+ Rewards program now boasts 5 million members globally, up
“We remain committed to a balanced capital allocation strategy in which we invest in our people and business to drive strong organic growth, execute value-enhancing acquisitions and investments, return capital to shareholders via strategic share repurchases, and maintain substantial liquidity to manage debt. The business is performing exceptionally well and I thank the team for their relentless focus on operational excellence to produce these results for all of our stakeholders,” concluded Given.
CONSOLIDATED RESULTS
| Three Months Ended June 30 | As Reported | Adjusted1 | |||||||||
| in millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | |||||||
| Total revenues | $ | 281.4 | $ | 255.8 | $ | 279.8 | $ | 255.8 | |||
| Gross profit | $ | 166.7 | $ | 148.8 | $ | 165.8 | $ | 148.8 | |||
| Income before tax | $ | 23.0 | $ | 21.3 | $ | 22.8 | $ | 18.7 | |||
| Net income | $ | 18.0 | $ | 18.2 | $ | 17.0 | $ | 14.9 | |||
| Diluted earnings per share | $ | 0.25 | $ | 0.24 | $ | 0.23 | $ | 0.20 | |||
| EBITDA (non-GAAP measure) | $ | 31.8 | $ | 30.2 | $ | 31.6 | $ | 27.6 | |||
- PLO increased
14% to$261.7 million , up$32.3 million . On a same-store basis, PLO increased12% due to improved operational performance and continued strong pawn demand. - Total revenues increased
10% , and gross profit increased12% , 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
36% . Aged general merchandise was3.2% of total general merchandise inventory. - Net inventory increased
11% , as expected with the growth in PLO. Inventory turnover decreased to 2.7x, from 2.8x. - Store expenses increased
11% and8% on a same-store basis, primarily due to increased labor in-line with store activity and, to a lesser extent, expenses related to our loyalty program. - General and administrative expenses increased
12% , primarily due to labor, incentive compensation and, to a lesser extent, costs related to the implementation and ongoing support of Workday. - Income before taxes was
$23.0 million , up from$21.3 million , and adjusted EBITDA increased15% to$31.6 million , with the primary adjustment being in the prior year for the reversal of contingent consideration liability in connection with a previously completed acquisition. - Diluted earnings per share of
$0.25 , up from$0.24 . On an adjusted basis, diluted earnings per share of$0.23 , up from$0.20 . - Cash and cash equivalents at the end of the quarter was
$218.0 million , down8% year-over-year. The decrease was due to the increase in PLO and inventory, strategic investments and acquisitions, and share repurchases, partially offset by cash from operating activities.
SEGMENT RESULTS
U.S. Pawn
- PLO ended the quarter at
$199.3 million , up11% or10% on a same-store basis. - Total revenues were up
8% and gross profit was up9% , reflecting increased PSC and higher merchandise sales. - PSC increased
13% as a result of higher average PLO. - Merchandise sales increased
6% , and gross margin decreased to38% from39% . Aged general merchandise increased to5.0% to$2.0 million of total general merchandise inventory. Excluding luxury handbags in our three Max Pawn stores in Las Vegas, aged general merchandise remains under1% . - Net inventory increased
6% , as expected with the growth in PLO. Inventory turnover remained flat at 2.6x. - Store expenses increased
8% and6% on a same-store basis, primarily due to increased labor in-line with store activity and to a lesser extent, expenses related to our loyalty program. - Segment contribution increased
12% to$36.1 million . - During the quarter, store count increased by six, due to the acquisition of five stores and opening of one de novo store.
Latin America Pawn
- PLO improved to
$62.4 million , up24% (30% on constant currency basis). On a same-store basis, PLO increased20% (26% on a constant currency basis) due to improved operational performance and increased loan demand. - Total revenues were up
15% (13% on constant currency basis), and gross profit increased21% (19% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved merchandise sales gross profit. - PSC increased
22% (19% on a constant currency basis) as a result of higher average PLO. - Merchandise sales gross margin increased to
32% from30% . Aged general merchandise was less than1% of total merchandise inventory. - Net inventory increased
25% (32% on a constant currency basis). Inventory turnover decreased to 3.0x, from 3.4x. - Store expenses increased
18% (15% on a constant currency basis) and14% (12% on a constant currency basis) on a same-store basis, primarily due to increased labor, in line with store activity and to a lesser extent, rent. - Segment contribution increased
6% (5% on a constant currency basis). On an adjusted basis, segment contribution was up43% to$10.2 million , with the primary adjustment being the prior year reversal of contingent consideration liability in connection with a previously completed acquisition. - During the quarter, store count increased by six de novo stores.
FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended June 30, 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, August 1, 2024, at 8:00 am Central Time to discuss Third Quarter Fiscal 2024 results. Analysts and institutional investors may participate on the conference call by registering online at https://register.vevent.com/register/BId4b5469876114f61a4e1f86df672523c. 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
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.
EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||
| (in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenues: | |||||||||||||||
| Merchandise sales | $ | 158,140 | $ | 147,980 | $ | 502,230 | $ | 464,274 | |||||||
| Jewelry scrapping sales | 15,395 | 13,931 | 43,191 | 34,640 | |||||||||||
| Pawn service charges | 107,830 | 93,819 | 321,442 | 279,442 | |||||||||||
| Other revenues | 56 | 82 | 188 | 206 | |||||||||||
| Total revenues | 281,421 | 255,812 | 867,051 | 778,562 | |||||||||||
| Merchandise cost of goods sold | 101,211 | 95,069 | 322,680 | 297,285 | |||||||||||
| Jewelry scrapping cost of goods sold | 13,483 | 11,958 | 37,479 | 30,813 | |||||||||||
| Gross profit | 166,727 | 148,785 | 506,892 | 450,464 | |||||||||||
| Operating expenses: | |||||||||||||||
| Store expenses | 116,335 | 104,932 | 341,472 | 307,004 | |||||||||||
| General and administrative | 20,060 | 17,876 | 54,869 | 48,961 | |||||||||||
| Depreciation and amortization | 8,158 | 8,026 | 24,942 | 23,977 | |||||||||||
| Loss (gain) on sale or disposal of assets and other | 20 | (29 | ) | (149 | ) | 28 | |||||||||
| Other income | — | (2,632 | ) | (765 | ) | (5,097 | ) | ||||||||
| Total operating expenses | 144,573 | 128,173 | 420,369 | 374,873 | |||||||||||
| Operating income | 22,154 | 20,612 | 86,523 | 75,591 | |||||||||||
| Interest expense | 3,539 | 3,414 | 10,381 | 12,994 | |||||||||||
| Interest income | (2,931 | ) | (2,584 | ) | (8,452 | ) | (5,146 | ) | |||||||
| Equity in net (income) loss of unconsolidated affiliates | (1,263 | ) | (1,523 | ) | (4,135 | ) | 29,394 | ||||||||
| Other income | (191 | ) | (5 | ) | (627 | ) | (159 | ) | |||||||
| Income before income taxes | 23,000 | 21,310 | 89,356 | 38,508 | |||||||||||
| Income tax expense | 5,050 | 3,088 | 21,457 | 10,298 | |||||||||||
| Net income | $ | 17,950 | $ | 18,222 | $ | 67,899 | $ | 28,210 | |||||||
| Basic earnings per share | $ | 0.33 | $ | 0.33 | $ | 1.23 | $ | 0.51 | |||||||
| Diluted earnings per share | $ | 0.25 | $ | 0.24 | $ | 0.89 | $ | 0.38 | |||||||
| Weighted-average basic shares outstanding | 54,898 | 55,367 | 55,022 | 55,776 | |||||||||||
| Weighted-average diluted shares outstanding | 83,008 | 86,825 | 84,309 | 79,559 | |||||||||||
EZCORP, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| (in thousands, except share and per share amounts) | June 30, 2024 | June 30, 2023 | September 30, 2023 | ||||||||
| Assets: | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 218,038 | $ | 237,974 | $ | 220,595 | |||||
| Restricted cash | 9,204 | 8,549 | 8,373 | ||||||||
| Pawn loans | 261,720 | 229,379 | 245,766 | ||||||||
| Pawn service charges receivable, net | 40,638 | 34,959 | 38,885 | ||||||||
| Inventory, net | 171,937 | 154,944 | 166,477 | ||||||||
| Prepaid expenses and other current assets | 40,391 | 44,925 | 39,623 | ||||||||
| Total current assets | 741,928 | 710,730 | 719,719 | ||||||||
| Investments in unconsolidated affiliates | 12,297 | 10,247 | 10,987 | ||||||||
| Other investments | 51,220 | 39,220 | 36,220 | ||||||||
| Property and equipment, net | 59,926 | 61,849 | 68,096 | ||||||||
| Right-of-use assets, net | 235,030 | 243,100 | 234,388 | ||||||||
| Goodwill | 308,847 | 302,120 | 302,372 | ||||||||
| Intangible assets, net | 60,164 | 60,009 | 58,216 | ||||||||
| Deferred tax asset, net | 25,245 | 19,610 | 25,702 | ||||||||
| Other assets, net | 15,506 | 10,793 | 12,011 | ||||||||
| Total assets | $ | 1,510,163 | $ | 1,457,678 | $ | 1,467,711 | |||||
| Liabilities and equity: | |||||||||||
| Current liabilities: | |||||||||||
| Current maturities of long-term debt, net | $ | 137,326 | $ | — | $ | 34,265 | |||||
| Accounts payable, accrued expenses and other current liabilities | 69,742 | 74,458 | $ | 81,605 | |||||||
| Customer layaway deposits | 20,067 | 18,595 | 18,920 | ||||||||
| Operating lease liabilities, current | 58,905 | 56,919 | 57,182 | ||||||||
| Total current liabilities | 286,040 | 149,972 | 191,972 | ||||||||
| Long-term debt, net | 223,998 | 359,686 | 325,847 | ||||||||
| Deferred tax liability, net | 416 | 349 | 435 | ||||||||
| Operating lease liabilities | 188,996 | 197,499 | 193,187 | ||||||||
| Other long-term liabilities | 9,258 | 11,130 | 10,502 | ||||||||
| Total liabilities | 708,708 | 718,636 | 721,943 | ||||||||
| Commitments and contingencies (Note 9) | |||||||||||
| Stockholders’ equity: | |||||||||||
| Class A Non-voting Common Stock, par value | 518 | 522 | 519 | ||||||||
| Class B Voting Common Stock, convertible, par value | 30 | 30 | 30 | ||||||||
| Additional paid-in capital | 347,082 | 344,857 | 346,181 | ||||||||
| Retained earnings | 493,830 | 422,549 | 431,140 | ||||||||
| Accumulated other comprehensive loss | (40,005 | ) | (28,916 | ) | (32,102 | ) | |||||
| Total equity | 801,455 | 739,042 | 745,768 | ||||||||
| Total liabilities and equity | $ | 1,510,163 | $ | 1,457,678 | $ | 1,467,711 | |||||
EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended June 30, | |||||||
| (in thousands) | 2024 | 2023 | |||||
| Operating activities: | |||||||
| Net income | $ | 67,899 | $ | 28,210 | |||
| Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
| Depreciation and amortization | 24,942 | 23,977 | |||||
| Amortization of debt discount and deferred financing costs | 1,212 | 1,135 | |||||
| Non-cash lease expense | 43,999 | 41,752 | |||||
| Deferred income taxes | 438 | (7,489 | ) | ||||
| Other adjustments | 69 | (4,894 | ) | ||||
| Provision for inventory reserve | 589 | (160 | ) | ||||
| Stock compensation expense | 7,945 | 6,876 | |||||
| Equity in net (income) loss from investment in unconsolidated affiliates | (4,135 | ) | 29,394 | ||||
| Net loss on extinguishment of debt | — | 3,545 | |||||
| Changes in operating assets and liabilities, net of business acquisitions: | |||||||
| Pawn service charges receivable | (1,593 | ) | (316 | ) | |||
| Inventory | (2,775 | ) | (5,501 | ) | |||
| Prepaid expenses, other current assets and other assets | (3,625 | ) | (2,750 | ) | |||
| Accounts payable, accrued expenses and other liabilities | (65,396 | ) | (53,018 | ) | |||
| Customer layaway deposits | 1,055 | 1,036 | |||||
| Income taxes | (360 | ) | 8,923 | ||||
| Dividends from unconsolidated affiliates | — | 3,589 | |||||
| Net cash provided by operating activities | 70,264 | 74,309 | |||||
| Investing activities: | |||||||
| Loans made | (683,121 | ) | (592,689 | ) | |||
| Loans repaid | 391,297 | 343,886 | |||||
| Recovery of pawn loan principal through sale of forfeited collateral | 272,781 | 251,608 | |||||
| Capital expenditures, net | (16,870 | ) | (27,751 | ) | |||
| Acquisitions, net of cash acquired | (11,963 | ) | (12,968 | ) | |||
| Proceeds from (issuance of) notes receivable | 1,100 | (15,500 | ) | ||||
| Investment in unconsolidated affiliate | (993 | ) | (2,133 | ) | |||
| Investment in other investments | (15,000 | ) | (15,000 | ) | |||
| Dividends from unconsolidated affiliates | 3,535 | — | |||||
| Net cash used in investing activities | (59,234 | ) | (70,547 | ) | |||
| 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 | (9,009 | ) | (13,982 | ) | |||
| Payments of finance leases | (386 | ) | — | ||||
| Net cash (used in) provided by financing activities | (12,648 | ) | 26,972 | ||||
| Effect of exchange rate changes on cash and cash equivalents and restricted cash | (108 | ) | 1,420 | ||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (1,726 | ) | 32,154 | ||||
| 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 | $ | 227,242 | $ | 246,523 | |||
EZCORP, Inc.
OPERATING SEGMENT RESULTS
| Three Months Ended June 30, 2024 (Unaudited) | |||||||||||||||||||||||
| (in thousands) | U.S. Pawn | Latin America Pawn | Other Investments | Total Segments | Corporate Items | Consolidated | |||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Merchandise sales | $ | 107,849 | $ | 50,291 | $ | — | $ | 158,140 | $ | — | $ | 158,140 | |||||||||||
| Jewelry scrapping sales | 13,757 | 1,638 | — | 15,395 | — | 15,395 | |||||||||||||||||
| Pawn service charges | 77,416 | 30,414 | — | 107,830 | — | 107,830 | |||||||||||||||||
| Other revenues | 28 | 28 | — | 56 | — | 56 | |||||||||||||||||
| Total revenues | 199,050 | 82,371 | — | 281,421 | — | 281,421 | |||||||||||||||||
| Merchandise cost of goods sold | 67,229 | 33,982 | — | 101,211 | — | 101,211 | |||||||||||||||||
| Jewelry scrapping cost of goods sold | 11,887 | 1,596 | — | 13,483 | — | 13,483 | |||||||||||||||||
| Gross profit | 119,934 | 46,793 | — | 166,727 | — | 166,727 | |||||||||||||||||
| Segment and corporate expenses (income): | |||||||||||||||||||||||
| Store expenses | 81,441 | 34,894 | — | 116,335 | — | 116,335 | |||||||||||||||||
| General and administrative | — | — | — | — | 20,060 | 20,060 | |||||||||||||||||
| Depreciation and amortization | 2,408 | 2,090 | — | 4,498 | 3,660 | 8,158 | |||||||||||||||||
| (Gain) loss on sale or disposal of assets and other | (2 | ) | 22 | — | 20 | — | 20 | ||||||||||||||||
| Interest expense | — | — | — | — | 3,539 | 3,539 | |||||||||||||||||
| Interest income | — | (370 | ) | (605 | ) | (975 | ) | (1,956 | ) | (2,931 | ) | ||||||||||||
| Equity in net (income) loss of unconsolidated affiliates | — | — | (1,406 | ) | (1,406 | ) | 143 | (1,263 | ) | ||||||||||||||
| Other (income) expense | — | (184 | ) | 12 | (172 | ) | (19 | ) | (191 | ) | |||||||||||||
| Segment contribution | $ | 36,087 | $ | 10,341 | $ | 1,999 | $ | 48,427 | |||||||||||||||
| Income (loss) before income taxes | $ | 48,427 | $ | (25,427 | ) | $ | 23,000 | ||||||||||||||||
| Three Months Ended June 30, 2023 (Unaudited) | |||||||||||||||||||||||
| (in thousands) | U.S. Pawn | Latin America Pawn | Other Investments | Total Segments | Corporate Items | Consolidated | |||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Merchandise sales | $ | 102,177 | $ | 45,803 | $ | — | $ | 147,980 | $ | — | $ | 147,980 | |||||||||||
| Jewelry scrapping sales | 13,098 | 833 | — | 13,931 | — | 13,931 | |||||||||||||||||
| Pawn service charges | 68,790 | 25,029 | — | 93,819 | — | 93,819 | |||||||||||||||||
| Other revenues | 27 | 40 | 15 | 82 | — | 82 | |||||||||||||||||
| Total revenues | 184,092 | 71,705 | 15 | 255,812 | — | 255,812 | |||||||||||||||||
| Merchandise cost of goods sold | 62,799 | 32,270 | — | 95,069 | — | 95,069 | |||||||||||||||||
| Jewelry scrapping cost of goods sold | 11,101 | 857 | — | 11,958 | — | 11,958 | |||||||||||||||||
| Gross profit | 110,192 | 38,578 | 15 | 148,785 | — | 148,785 | |||||||||||||||||
| Segment and corporate expenses (income): | |||||||||||||||||||||||
| Store expenses | 75,389 | 29,543 | — | 104,932 | — | 104,932 | |||||||||||||||||
| General and administrative | — | — | — | — | 17,876 | 17,876 | |||||||||||||||||
| Depreciation and amortization | 2,505 | 2,303 | — | 4,808 | 3,218 | 8,026 | |||||||||||||||||
| Gain on sale or disposal of assets | — | (29 | ) | — | (29 | ) | — | (29 | ) | ||||||||||||||
| Other income | — | (2,632 | ) | — | (2,632 | ) | — | (2,632 | ) | ||||||||||||||
| Interest expense | — | — | — | — | 3,414 | 3,414 | |||||||||||||||||
| Interest income | (1 | ) | (256 | ) | — | (257 | ) | (2,327 | ) | (2,584 | ) | ||||||||||||
| Equity in net income of unconsolidated affiliates | — | — | (1,523 | ) | (1,523 | ) | — | (1,523 | ) | ||||||||||||||
| Other (income) expense | — | (65 | ) | 10 | (55 | ) | 50 | (5 | ) | ||||||||||||||
| Segment contribution | $ | 32,299 | $ | 9,714 | $ | 1,528 | $ | 43,541 | |||||||||||||||
| Income (loss) before income taxes | $ | 43,541 | $ | (22,231 | ) | $ | 21,310 | ||||||||||||||||
| Nine Months Ended June 30, 2024 (Unaudited) | |||||||||||||||||||||||
| (in thousands) | U.S. Pawn | Latin America Pawn | Other Investments | Total Segments | Corporate Items | Consolidated | |||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Merchandise sales | $ | 348,211 | $ | 154,019 | $ | — | $ | 502,230 | $ | — | $ | 502,230 | |||||||||||
| Jewelry scrapping sales | 39,258 | 3,933 | — | 43,191 | — | 43,191 | |||||||||||||||||
| Pawn service charges | 236,499 | 84,943 | — | 321,442 | — | 321,442 | |||||||||||||||||
| Other revenues | 94 | 59 | 35 | 188 | — | 188 | |||||||||||||||||
| Total revenues | 624,062 | 242,954 | 35 | 867,051 | — | 867,051 | |||||||||||||||||
| Merchandise cost of goods sold | 218,736 | 103,944 | — | 322,680 | — | 322,680 | |||||||||||||||||
| Jewelry scrapping cost of goods sold | 33,965 | 3,514 | — | 37,479 | — | 37,479 | |||||||||||||||||
| Gross profit | 371,361 | 135,496 | 35 | 506,892 | — | 506,892 | |||||||||||||||||
| Segment and corporate expenses (income): | |||||||||||||||||||||||
| Store expenses | 239,536 | 101,936 | — | 341,472 | — | 341,472 | |||||||||||||||||
| General and administrative | — | — | — | — | 54,869 | 54,869 | |||||||||||||||||
| Depreciation and amortization | 7,548 | 6,821 | — | 14,369 | 10,573 | 24,942 | |||||||||||||||||
| (Gain) loss on sale or disposal of assets and other | (6 | ) | (240 | ) | — | (246 | ) | 97 | (149 | ) | |||||||||||||
| Other income | — | — | — | — | (765 | ) | (765 | ) | |||||||||||||||
| Interest expense | — | — | — | — | 10,381 | 10,381 | |||||||||||||||||
| Interest income | — | (1,398 | ) | (1,811 | ) | (3,209 | ) | (5,243 | ) | (8,452 | ) | ||||||||||||
| Equity in net (income) loss of unconsolidated affiliates | — | — | (4,278 | ) | (4,278 | ) | 143 | (4,135 | ) | ||||||||||||||
| Other (income) expense | — | (231 | ) | 27 | (204 | ) | (423 | ) | (627 | ) | |||||||||||||
| Segment contribution | 124,283 | 28,608 | $ | 6,097 | $ | 158,988 | |||||||||||||||||
| Income (loss) before income taxes | $ | 158,988 | $ | (69,632 | ) | $ | 89,356 | ||||||||||||||||
| Nine Months Ended June 30, 2023 (Unaudited) | |||||||||||||||||||||||
| (in thousands) | U.S. Pawn | Latin America Pawn | Other Investments | Total Segments | Corporate Items | Consolidated | |||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Merchandise sales | $ | 329,231 | $ | 135,043 | $ | — | $ | 464,274 | $ | — | $ | 464,274 | |||||||||||
| Jewelry scrapping sales | 30,088 | 4,552 | — | 34,640 | — | 34,640 | |||||||||||||||||
| Pawn service charges | 208,045 | 71,397 | — | 279,442 | — | 279,442 | |||||||||||||||||
| Other revenues | 84 | 75 | 47 | 206 | — | 206 | |||||||||||||||||
| Total revenues | 567,448 | 211,067 | 47 | 778,562 | — | 778,562 | |||||||||||||||||
| Merchandise cost of goods sold | 203,698 | 93,587 | — | 297,285 | — | 297,285 | |||||||||||||||||
| Jewelry scrapping cost of goods sold | 25,867 | 4,946 | — | 30,813 | — | 30,813 | |||||||||||||||||
| Gross profit | 337,883 | 112,534 | 47 | 450,464 | — | 450,464 | |||||||||||||||||
| Segment and corporate expenses (income): | |||||||||||||||||||||||
| Store expenses | 220,639 | 86,365 | — | 307,004 | — | 307,004 | |||||||||||||||||
| General and administrative | — | (3 | ) | — | (3 | ) | 48,964 | 48,961 | |||||||||||||||
| Depreciation and amortization | 7,820 | 6,850 | — | 14,670 | 9,307 | 23,977 | |||||||||||||||||
| Loss (gain) on sale or disposal of assets | 84 | (56 | ) | — | 28 | — | 28 | ||||||||||||||||
| Other income | — | (5,097 | ) | — | (5,097 | ) | — | (5,097 | ) | ||||||||||||||
| Interest expense | — | — | — | — | 12,994 | 12,994 | |||||||||||||||||
| Interest income | (2 | ) | (723 | ) | — | (725 | ) | (4,421 | ) | (5,146 | ) | ||||||||||||
| Equity in net loss of unconsolidated affiliates | — | — | 29,394 | 29,394 | — | 29,394 | |||||||||||||||||
| Other (income) expense | — | (41 | ) | 20 | (21 | ) | (138 | ) | (159 | ) | |||||||||||||
| Segment contribution (loss) | $ | 109,342 | $ | 25,239 | $ | (29,367 | ) | $ | 105,214 | ||||||||||||||
| Income (loss) before income taxes | $ | 105,214 | $ | (66,706 | ) | $ | 38,508 | ||||||||||||||||
EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
| Three Months Ended June 30, 2024 | |||||
| U.S. Pawn | Latin America Pawn | Consolidated | |||
| As of March 31, 2024 | 535 | 711 | 1,246 | ||
| New locations opened | 1 | 6 | 7 | ||
| Locations acquired | 5 | — | 5 | ||
| As of June 30, 2024 | 541 | 717 | 1,258 | ||
| Three Months Ended June 30, 2023 | |||||
| U.S. Pawn | Latin America Pawn | Consolidated | |||
| As of March 31, 2023 | 527 | 672 | 1,199 | ||
| New locations opened | 1 | 12 | 13 | ||
| As of June 30, 2023 | 528 | 684 | 1,212 | ||
| Nine Months Ended June 30, 2024 | ||||||||
| U.S. Pawn | Latin America Pawn | Consolidated | ||||||
| As of September 30, 2023 | 529 | 702 | 1,231 | |||||
| New locations opened | 1 | 20 | 21 | |||||
| Locations acquired | 12 | — | 12 | |||||
| Locations combined or closed | (1 | ) | (5 | ) | (6 | ) | ||
| As of June 30, 2024 | 541 | 717 | 1,258 | |||||
| Nine Months Ended June 30, 2023 | |||||||
| U.S. Pawn | Latin America Pawn | Consolidated | |||||
| As of September 30, 2022 | 515 | 660 | 1,175 | ||||
| New locations opened | 3 | 25 | 28 | ||||
| Locations acquired | 10 | — | 10 | ||||
| Locations combined or closed | — | (1 | ) | (1 | ) | ||
| As of June 30, 2023 | 528 | 684 | 1,212 | ||||
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 nine months ended June 30, 2024 and 2023 were as follows:
| June 30, | Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||
| Mexican peso | 18.3 | 17.1 | 17.2 | 17.7 | 17.3 | 18.7 | ||||||
| Guatemalan quetzal | 7.6 | 7.7 | 7.6 | 7.6 | 7.6 | 7.6 | ||||||
| Honduran lempira | 24.3 | 24.4 | 24.3 | 24.3 | 24.3 | 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 June 30, | |||||||
| (in millions) | 2024 | 2023 | |||||
| Net income | $ | 18.0 | $ | 18.2 | |||
| Interest expense | 3.5 | 3.4 | |||||
| Interest income | (2.9 | ) | (2.6 | ) | |||
| Income tax expense | 5.0 | 3.1 | |||||
| Depreciation and amortization | 8.2 | 8.0 | |||||
| EBITDA | $ | 31.8 | $ | 30.2 | |||
| Total Revenues | Gross Profit | Income Before Tax | Tax Effect | Net Income | Diluted EPS | EBITDA | ||||||||||||||||||||
| 2024 Q3 Reported | $ | 281.4 | $ | 166.7 | $ | 23.0 | $ | 5.0 | $ | 18.0 | $ | 0.25 | $ | 31.8 | ||||||||||||
| Impact of dilutive instruments* | — | — | — | — | — | (0.01 | ) | — | ||||||||||||||||||
| FX Impact | — | — | 0.1 | — | — | — | 0.1 | |||||||||||||||||||
| Constant Currency and other impact | (1.6 | ) | (0.9 | ) | (0.3 | ) | 0.8 | (1.0 | ) | (0.01 | ) | (0.3 | ) | |||||||||||||
| 2024 Q3 Adjusted | $ | 279.8 | $ | 165.8 | $ | 22.8 | $ | 5.8 | $ | 17.0 | $ | 0.23 | $ | 31.6 | ||||||||||||
| Total Revenues | Gross Profit | Income Before Tax | Tax Effect | Net Income | Diluted EPS | EBITDA | |||||||||||||||||||
| 2023 Q3 Reported | $ | 255.8 | $ | 148.8 | $ | 21.3 | $ | 3.1 | $ | 18.2 | $ | 0.24 | $ | 30.2 | |||||||||||
| Contingent consideration acquisition transaction | — | — | (2.6 | ) | (0.5 | ) | (2.1 | ) | (0.02 | ) | (2.6 | ) | |||||||||||||
| Tax Impact | — | — | — | 1.2 | (1.2 | ) | (0.02 | ) | — | ||||||||||||||||
| 2023 Q3 Adjusted | $ | 255.8 | $ | 148.8 | $ | 18.7 | $ | 3.8 | $ | 14.9 | $ | 0.20 | $ | 27.6 | |||||||||||
| Three Months Ended June 30, 2024 | Nine Months Ended June 30, 2024 | ||||||||||||
| (in millions) | U.S. Dollar Amount | Percentage Change YOY | U.S. Dollar Amount | Percentage Change YOY | |||||||||
| Consolidated revenues | $ | 281.4 | 10 | % | $ | 867.1 | 11 | % | |||||
| Currency exchange rate fluctuations | (1.6 | ) | (14.2 | ) | |||||||||
| Constant currency consolidated revenues | $ | 279.8 | 9 | % | $ | 852.8 | 10 | % | |||||
| Consolidated gross profit | $ | 166.7 | 12 | % | $ | 506.9 | 13 | % | |||||
| Currency exchange rate fluctuations | (0.9 | ) | (7.7 | ) | |||||||||
| Constant currency consolidated gross profit | $ | 165.8 | 11 | % | $ | 499.2 | 11 | % | |||||
| Consolidated net inventory | $ | 171.9 | 11 | % | $ | 171.9 | 11 | % | |||||
| Currency exchange rate fluctuations | 2.7 | 2.7 | |||||||||||
| Constant currency consolidated net inventory | $ | 174.6 | 13 | % | $ | 174.6 | 13 | % | |||||
| Latin America Pawn gross profit | $ | 46.8 | 21 | % | $ | 135.5 | 20 | % | |||||
| Currency exchange rate fluctuations | (0.9 | ) | (7.7 | ) | |||||||||
| Constant currency Latin America Pawn gross profit | $ | 45.9 | 19 | % | $ | 127.8 | 14 | % | |||||
| Latin America Pawn PLO | $ | 62.4 | 24 | % | $ | 62.4 | 24 | % | |||||
| Currency exchange rate fluctuations | 3.0 | 3.0 | |||||||||||
| Constant currency Latin America Pawn PLO | $ | 65.4 | 30 | % | $ | 65.4 | 30 | % | |||||
| Latin America Pawn PSC revenues | $ | 30.4 | 22 | % | $ | 84.9 | 19 | % | |||||
| Currency exchange rate fluctuations | (0.6 | ) | (4.5 | ) | |||||||||
| Constant currency Latin America Pawn PSC revenues | $ | 29.8 | 19 | % | $ | 80.4 | 13 | % | |||||
| Latin America Pawn merchandise sales | $ | 50.3 | 10 | % | $ | 154.0 | 14 | % | |||||
| Currency exchange rate fluctuations | (1.0 | ) | (9.5 | ) | |||||||||
| Constant currency Latin America Pawn merchandise sales | $ | 49.3 | 8 | % | $ | 144.5 | 7 | % | |||||
| Latin America Pawn segment profit before tax | $ | 10.3 | 6 | % | $ | 28.6 | 13 | % | |||||
| Currency exchange rate fluctuations | (0.1 | ) | (1.1 | ) | |||||||||
| Constant currency Latin America Pawn segment profit before tax | $ | 10.2 | 5 | % | $ | 27.5 | 9 | % | |||||
FAQ
What was EZCORP's pawn loans outstanding (PLO) in Q3 2024?
How much did EZCORP's total revenues increase in Q3 2024?
What was EZCORP's (EZPW) diluted earnings per share in Q3 2024?
How many stores did EZCORP (EZPW) add in Q3 2024?
What was the growth in EZCORP's EZ+ Rewards program membership?
