Store Count Up 14% and PLO Up 34% for the
Year
EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn
transactions in the United States and Latin America, today
announced results for its fiscal fourth quarter and full year ended
September 30, 2021.
All amounts in this release are in conformity with U.S.
generally accepted accounting principles ("GAAP") unless otherwise
noted. Comparisons shown in this release are to the same period in
the prior year unless otherwise noted.
FOURTH QUARTER HIGHLIGHTS
- Pawn Loans Outstanding (PLO) up 34% and up 12% compared to the
third quarter.
- Total revenue increased 15% and net revenue increased 33%.
- Merchandise sales gross profit margin was 41% up from 31%.
- Diluted earnings per share was $0.03, compared to a diluted
loss per share of $0.42. On an adjusted basis1, diluted earnings
per share was $0.11, compared to diluted earnings per share of
$0.08.
- Return on Earning Assets (ROEA) improved to 175% from
154%.
CEO COMMENTARY AND OUTLOOK
Chief Executive Officer Jason Kulas stated, “I am pleased with
our results in the fourth quarter and for the fiscal year, and am
proud the team has executed on the strategy we put in place at the
end of fiscal 2020. We are improving the customer experience,
embracing technological improvements, and have launched our new
loyalty program which will be rolled out in the majority of stores
by the end of the calendar year. Our key financial metrics continue
to improve sequentially due to the initiatives that we have taken
throughout the year. We credit our team members who have embraced
the renewed emphasis on culture and serving our customers while
focusing on innovative ways to improve the core pawn business, grow
PLO and increase margins.
“We are seeing strong signs of recovery from the pandemic and
stimulus impact in the U.S., with Latin America slightly lagging
due to the concerns over the Delta variant.
“The integration of the 139 stores we acquired this year is
going well, and our current acquisition pipeline remains robust. In
addition, we recently invested in a company that gives us increased
geographical diversification by having interests in pawn stores in
the Caribbean.
“As we continue to grow our footprint outside of the US, I am
delighted to announce the recent promotion of Blair Powell to
President of Global Pawn with management responsibility for all of
our pawn operations worldwide. Blair has over 30 years of
experience in the industry and has been serving as President of US
Pawn for the past year. I am confident that this more streamlined
global structure will enhance the in-store experience, optimize
expenses and further drive profitability.
“Looking ahead toward fiscal 2022, we remain committed to
maintaining operating excellence, a strong balance sheet and cost
discipline while pursuing sustainable growth. Our customers and
team members are critical to our success. We strive to be our
customers’ first and best choice for their short-term cash needs
and for affordable pre-owned and recycled goods. Enhanced training
and diversity and inclusion programs are in place to help develop
team members and improve productivity and retention. We are
appreciative of our team members’ excellent execution and passion
for pawn, and we are enthusiastic about the year ahead."
CONSOLIDATED RESULTS
Three Months Ended September 30
As Reported
Adjusted1
in millions, except per share amounts
2021
2020
2021
2020
Total Revenues
$
192.4
$
166.8
$
188.7
$
166.8
Net Revenues
$
119.3
$
89.6
$
117.2
$
89.6
Income (Loss), Before Tax
$
4.5
$
(28.7
)
$
9.0
$
3.3
Net Income (Loss)
$
1.6
$
(23.3
)
$
6.0
$
4.2
Diluted Earnings (Loss) Per Share
$
0.03
$
(0.42
)
$
0.11
$
0.08
EBITDA
$
17.2
$
(16.0
)
$
18.1
$
12.3
Twelve Months Ended September
30
As Reported
Adjusted1
in millions, except per share amounts
2021
2020
2021
2020
Total Revenues
$
729.6
$
822.8
$
724.1
$
822.8
Net Revenues
$
449.5
$
449.2
$
446.3
$
451.5
Income (Loss), Before Tax
$
16.1
$
(70.1
)
$
31.1
$
29.4
Net Income (Loss)
$
8.6
$
(68.5
)
$
21.0
$
21.6
Diluted Earnings (Loss) Per Share
$
0.15
$
(1.24
)
$
0.38
$
0.39
EBITDA
$
66.4
$
(20.0
)
$
67.5
$
66.3
- Diluted earnings per share was $0.03 for the fourth quarter,
compared to a loss of $0.42. On an adjusted basis, diluted earnings
per share was $0.11, compared to $0.08. For the full year, diluted
earnings per share was $0.15, compared to a loss of $1.24. On an
adjusted basis, diluted earnings per share for the year was $0.38,
compared to $0.39.
- For the fourth quarter, income before taxes improved 116% from
a loss of $28.7 million to income of $4.5 million. Adjusted EBITDA
increased 47% from $12.3 million to $18.1 million. For the full
year, income before taxes improved by 123% to $16.1 million from a
loss of $70.1 million and adjusted EBITDA increased 2% to $67.5
million from $66.3 million.
- PLO significantly increased to $175.9 million, up 34% and 12%
on a sequential basis. On a same-store basis2, PLO increased 29%
year-over-year and 12% sequentially.
- In the fourth quarter, total revenues increased 15% and net
revenues increased 33%, reflecting improved PSC and merchandise
sales gross profit. For the full year, total revenues decreased 11%
and net revenues were flat, reflecting lower average PLO (driving
lower PSC) for the year, offset by improved sales profit
margins.
- Merchandise sales gross profit margin was 41% in the fourth
quarter, up from 31%. For the full year, merchandise sales gross
profit margin was 42% compared to 33%. These improvements reflect
the commitment to improving the core business by driving down aged
general merchandise (now less than 1% of total general merchandise
inventory) and focusing on selling inventory in the first 90
days.
- For the fourth quarter, PSC increased 32% due to an increase in
the average PLO balance during the quarter. Though PLO
significantly increased during the year, average PLO for fiscal
2021 was lower than in fiscal 2020, which led to a full year PSC
decrease of 5%.
- Net inventory increased 16% year-over-year and 20%
sequentially, reflecting an increase in pawn activity. Due to
significant improvements at the store level, inventory turnover
remained strong at a flat 2.8x for the fourth quarter and increased
from 2.4x to 2.9x for the year.
- In the fourth quarter, store expenses increased $11.1 million
or 14.3%, primarily due to the store count increase of 14.2% and
increased incentive compensation. On a same-store basis, store
expenses increased 7%. In addition, general and administrative
expenses increased $11.8 million or 314%, primarily due to
increased incentive compensation. For the full year, when removing
the fiscal 2020 incentive compensation reversal of $20.9 million,
store expenses on a same-store basis decreased $15.9 million or 5%
and G&A expenses decreased $14.6 million or 21%.
- Cash and cash equivalents at the end of the quarter was $253.7
million, down $50.9 million or 17% and $30.0 million or 11% on a
sequential basis. The decrease is primarily due to the increase in
PLO and the acquisition of new stores.
SEGMENT RESULTS
U.S. Pawn
- PLO continued to increase, ending the year up 28% (27% on a
same store basis) and up 16% compared to the end of the third
quarter.
- In the fourth quarter, total revenue was up 12% and net
revenues increased 21%, reflecting increasing PSC, higher sales and
improved merchandise sales gross profit. For the full year, total
revenues decreased 13% and net revenues decreased 3%, reflecting
lower average PLO for the year (driving lower PSC) offset by
improved sales profit margins.
- For the fourth quarter, merchandise sales gross profit gross
margins continued to remain high at 43% compared to 37%. During the
year, merchandise sales gross profit gross margins increased 768
bps to 44%, reflecting a focus on improving retailing and lower
levels of aged general merchandise inventory (which improved to
0.7% from 4.3% of total merchandise inventory).
- PSC increased 22% in the fourth quarter as a result of higher
average PLO. Though PLO significantly increased during the year,
the average PLO for the year was lower than in fiscal 2020 which
led to a full year PSC decrease of 6%.
- Net inventory increased 9% and 19% sequentially. Inventory
turnover continued to improve, increasing to 2.7x from 2.5x for the
prior year quarter and increasing to 2.7x from 2.3x for the
year.
- In the fourth quarter, store expenses increased 9% or $5.4
million to $65.1 million, primarily due to the increase of
incentive compensation of approximately $7.0 million, reflecting
improved performance compared to the prior year. For the full year,
when removing the fiscal 2020 incentive compensation reversal,
store expenses on a same-store basis decreased $11.9 million or 4%,
reflecting expense optimization.
- Segment contribution increased $13.3 million to $20.9 million
in the fourth quarter and increased $12.4 million to $85.5 million
for the year. On an adjusted basis, segment contribution increased
$10.2 million in the quarter and decreased $3.5 million in the
year.
- Segment store count increased by 11 during the year resulting
from the acquisition in the Houston, Texas area completed in
May.
Latin America Pawn
- PLO significantly improved, increasing 60% to $40.0 million
(51% on constant currency basis). On a sequential basis, PLO was
flat compared to a 5% sequential decrease in the prior-year
quarter. On a same store basis, PLO increased 37% (29% on a
constant currency basis) and decreased 2% (increased 2% on a
constant currency basis) sequentially.
- In the fourth quarter, total revenue was up 27% (18% on a
constant currency basis), while net revenues increased 91% (78% on
a constant currency basis). For the fiscal year, total revenues
were down 3% (6% on a constant currency basis), while net revenues
increased by 14% (11% on a constant currency basis) reflecting
significantly improved margins.
- Merchandise sales gross profit margins significantly improved
in the fourth quarter to 34% compared to 13%. During the year,
merchandise sales gross profit gross margins increased 1,270 bps to
35% (up 1,266 bps to 35% on a constant currency basis), reflecting
a focus on improving retailing and lower levels of aged general
merchandise inventory (which improved to 0.3% from 7.8% of total
merchandise inventory).
- PSC increased by 66% in the fourth quarter to $20.0 million (up
55% to $18.7 million on a constant currency basis) as a result of
higher average PLO for the quarter. For the fiscal year, PSC
increased 1% (down 2% on a constant currency basis) as a result of
lower average PLO for the year.
- Net inventory increased 42% (34% on a constant currency basis),
but was up 24% sequentially (up 31% on a constant currency basis).
Inventory turnover remains strong at 3.3x down from 3.8x for the
prior year quarter and increased substantially for the year to 3.7x
from 2.8x.
- In the fourth quarter, store expenses increased $7.1 million or
43% ($4.9 million or 30% on a constant currency basis) primarily
due to growth in store count and the increase in incentive
compensation, reflecting improved performance compared to fiscal
2020. Same-store expenses increased $2.4 million or 15% ($0.9
million or 5% on a constant currency basis). For the full year,
when removing the fiscal 2020 incentive compensation reversal,
store expenses on a same-store basis increased $1.7 million or 2%
(down 1% on a constant currency basis).
- Segment contribution for the fourth quarter was $6.1 million
($5.8 million on a constant currency basis), compared to a segment
loss of $3.9 million in the prior year quarter. For the year,
segment contribution was up by $44.0 million to $17.3 million (a
$43.2 million increase to $16.7 million on a constant currency
basis). On an adjusted basis, the increase in segment contribution
for the fourth quarter was $7.0 million to $6.3 million and the
increase for the year was $5.2 million to $17.6 million.
- Segment store count increased by 5 de novo stores during the
fourth quarter and increased by 132 stores for the year through
acquisitions and de novo stores.
FORM 10-K
EZCORP’s Annual Report on Form 10-K for fiscal 2021 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. EZCORP shareholders may
obtain a paper copy of the report, free of charge, by sending a
request to the investor relations contact below.
CONFERENCE CALL
EZCORP will host a conference call on Thursday, November 18,
2021, at 7:00 am Central Time to discuss Fourth Quarter and Full
Year Fiscal 2021 results. Analysts and institutional investors may
participate on the conference call by dialing (833) 579-0921,
Conference ID: 1962857, or internationally by dialing (778)
560-2579. 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 Russell 2000 Index,
S&P 1000 Index and Nasdaq Composite Index.
Follow us on social media:
Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
EZCORP Instagram Official
https://www.instagram.com/ezcorp_official/
EZPAWN Instagram Official
https://www.instagram.com/ezpawnofficial/
EZCORP Linked In https://www.linkedin.com/company/ezcorp/
FORWARD LOOKING STATEMENTS
This announcement contains certain forward-looking statements
regarding the company’s strategy, initiatives and expected
performance. These statements are based on the Company’s current
expectations as to the outcome and timing of future events. All
statements, other than statements of historical facts, including
all statements regarding the company's strategy, initiatives and
future performance, that address activities or results that the
company plans, expects, believes, projects, estimates or
anticipates, will, should or may occur in the future, including
future financial or operating results, are forward-looking
statements. Actual results for future periods may differ materially
from those expressed or implied by these forward-looking statements
due to a number of uncertainties and other factors, including
operating risks, liquidity risks, legislative or regulatory
developments, market factors, current or future litigation and
risks associated with the COVID-19 pandemic. For a discussion of
these and other factors affecting the Company’s business and
prospects, see the Company’s annual, quarterly and other reports
filed with the Securities and Exchange Commission. The Company
undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results over
time.
1”Adjusted” basis, which is a non-GAAP measure, excludes certain
items. “Constant currency” basis, which is a non-GAAP measure,
excludes the impact of foreign currency exchange rate fluctuations.
“Free cash flow,” which is a non-GAAP measure, includes certain
adjustments to cash flow from operating activities.
For additional information about these calculations, as well as
a reconciliation to the most comparable GAAP financial measures,
see “Non-GAAP Financial Information” at the end of this
release.
EZCORP, Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three Months Ended September
30,
Twelve Months Ended September
30,
(in thousands, except per share
amounts)
2021
2020
2021
2020
(Unaudited)
Revenues:
Merchandise sales
$
111,982
$
105,118
$
442,798
$
498,213
Jewelry scrapping sales
7,518
6,244
26,025
47,953
Pawn service charges
72,840
55,231
260,196
272,638
Other revenues
104
246
532
3,973
Total revenues
192,444
166,839
729,551
822,777
Merchandise cost of goods sold
66,346
72,770
257,218
334,481
Jewelry scrapping cost of goods sold
6,772
4,512
22,848
38,041
Other cost of revenues
—
(39
)
—
1,054
Net revenues
119,326
89,596
449,485
449,201
Operating expenses:
Store expenses
88,576
77,506
330,837
336,770
General and administrative
15,625
3,778
56,495
54,133
Impairment of goodwill, intangible and
other assets
—
7,606
—
54,666
Depreciation and amortization
7,592
7,653
30,672
30,827
(Gain) loss on sale or disposal of assets
and other
(7
)
(459
)
83
801
Other charges
(268
)
20,388
229
20,388
Total operating expenses
111,518
116,472
418,316
497,585
Operating income (loss)
7,808
(26,876
)
31,169
(48,384
)
Interest expense
5,635
5,883
22,177
22,472
Interest income
(559
)
(761
)
(2,477
)
(3,173
)
Equity in net (income) loss of
unconsolidated affiliates
(1,394
)
(3,467
)
(3,803
)
2,429
Other (income) expense
(401
)
198
(790
)
(17
)
Income (loss) before income taxes
4,527
(28,729
)
16,062
(70,095
)
Income tax expense (benefit)
2,974
(5,389
)
7,450
(1,632
)
Net income (loss)
$
1,553
$
(23,340
)
$
8,612
$
(68,463
)
Basic earnings (loss) per share
$
0.03
$
(0.42
)
$
0.15
$
(1.24
)
Diluted earnings (loss) per share
$
0.03
$
(0.42
)
$
0.15
$
(1.24
)
Weighted-average basic shares
outstanding
56,057
55,070
55,744
55,313
Weighted-average diluted shares
outstanding
56,441
55,070
55,949
55,313
EZCORP, Inc.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share and per share
amounts)
September 30, 2021
September 30, 2020
Assets:
Current assets:
Cash and cash equivalents
$
253,667
$
304,542
Restricted cash
9,957
8,011
Pawn loans
175,901
131,323
Pawn service charges receivable, net
29,337
20,580
Inventory, net
110,989
95,891
Notes receivable, net
—
—
Prepaid expenses and other current
assets
31,010
32,903
Total current assets
610,861
593,250
Investments in unconsolidated
affiliates
37,724
32,458
Property and equipment, net
53,811
56,986
Right-of-use asset, net
200,990
183,809
Goodwill
285,758
257,582
Intangible assets, net
62,104
58,638
Notes receivable, net
1,181
1,148
Deferred tax asset, net
9,746
8,931
Other assets
4,736
4,221
Total assets
$
1,266,911
$
1,197,023
Liabilities and equity:
Current liabilities:
Current maturities of long-term debt,
net
$
—
$
213
Accounts payable, accrued expenses and
other current liabilities
90,268
71,504
Customer layaway deposits
12,557
11,008
Lease liability
52,263
49,742
Total current liabilities
155,088
132,467
Long-term debt, net
264,186
251,016
Deferred tax liability, net
3,684
524
Lease liability
161,330
153,040
Other long-term liabilities
10,385
10,849
Total liabilities
594,673
547,896
Commitments and contingencies (Note
13)
Stockholders’ equity:
Class A Non-Voting Common Stock, par value
$0.01 per share; shares authorized: 100 million; 53,086,438 issued
and outstanding as of September 30, 2021; and issued and
outstanding of 52,332,848 as of September 30, 2020
530
521
Class B Voting Common Stock, convertible,
par value $0.01 per share; shares authorized: 3 million; issued and
outstanding: 2,970,171 as of September 30, 2021 and 2020
30
30
Additional paid-in capital
403,312
398,475
Retained earnings
326,781
318,169
Accumulated other comprehensive loss
(58,415
)
(68,068
)
Total equity
672,238
649,127
Total liabilities and equity
$
1,266,911
$
1,197,023
EZCORP, Inc.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Twelve Months Ended September
30,
(in thousands)
2021
2020
Operating activities:
Net income (loss)
$
8,612
$
(68,463
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
30,672
30,827
Amortization of debt discount and deferred
financing costs
13,797
13,200
Amortization of right-of-use asset
48,480
45,649
Accretion of notes receivable discount and
deferred compensation fee
—
(821
)
Deferred income taxes
3,283
(8,393
)
Impairment of goodwill, intangibles and
other assets
—
54,666
Other adjustments
(185
)
1,652
Provision for inventory reserve
(8,003
)
2,577
Stock compensation expense
3,946
(5,094
)
Equity in net (income) loss from
investment in unconsolidated affiliates
(3,803
)
2,429
Changes in operating assets and
liabilities, net of business acquisitions:
Service charges and fees receivable
(7,332
)
11,021
Inventory
371
14,466
Prepaid expenses, other current assets and
other assets
7,373
(875
)
Accounts payable, accrued expenses and
other liabilities
(54,209
)
(37,401
)
Customer layaway deposits
1,256
(1,647
)
Income taxes
2,180
(4,715
)
Net cash provided by operating
activities
46,438
49,078
Investing activities:
Loans made
(601,638
)
(568,368
)
Loans repaid
351,092
394,469
Recovery of pawn loan principal through
sale of forfeited collateral
208,551
304,323
Capital expenditures, net
(23,601
)
(28,526
)
Acquisitions, net of cash acquired
(19,015
)
—
Principal collections on notes
receivable
—
8,000
Net cash (used in) provided by investing
activities
(84,611
)
109,898
Financing activities:
Taxes paid related to net share settlement
of equity awards
(839
)
(1,459
)
Payout of deferred consideration
—
(350
)
Proceeds from borrowings, net of issuance
costs
—
912
Payments on assumed debt and other
borrowings
(15,414
)
(198
)
Repurchase of common stock
—
(5,158
)
Net cash used in financing activities
(16,253
)
(6,253
)
Effect of exchange rate changes on cash
and cash equivalents and restricted cash
5,497
(2,612
)
Net (decrease) increase in cash and cash
equivalents and restricted cash
(48,929
)
150,111
Cash and cash equivalents and restricted
cash at beginning of period
312,553
162,442
Cash and cash equivalents and restricted
cash at end of period
$
263,624
$
312,553
Supplemental disclosure of cash flow
information
Cash and cash equivalents
$
253,667
$
304,542
Restricted cash
9,957
8,011
Total cash and cash equivalents and
restricted cash
$
263,624
$
312,553
Cash paid during the period for
interest
$
8,230
$
8,489
Cash paid during the period for income
taxes, net
3,696
9,753
Non-cash investing and financing
activities:
Pawn loans forfeited and transferred to
inventory
$
212,756
$
241,252
Transfer of consideration for current
period acquisition
1,545
—
Acquisition earn-out contingency
4,608
—
Accrued acquisition consideration held as
restricted cash
1,986
—
EZCORP, Inc.
OPERATING SEGMENT
RESULTS
(Unaudited)
Three Months Ended September
30, 2021
(in thousands)
U.S. Pawn
Latin America Pawn
Other International
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
Net revenues
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 or 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
Three Months Ended September
30, 2020
(in thousands)
U.S. Pawn
Latin America Pawn
Other International
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
77,862
$
27,256
$
—
$
105,118
$
—
$
105,118
Jewelry scrapping sales
3,786
2,458
—
6,244
—
6,244
Pawn service charges
43,222
12,009
—
55,231
—
55,231
Other revenues
43
(50
)
253
246
—
246
Total revenues
124,913
41,673
253
166,839
—
166,839
Merchandise cost of goods sold
49,056
23,714
—
72,770
—
72,770
Jewelry scrapping cost of goods sold
2,634
1,878
—
4,512
—
4,512
Other cost of revenues
—
32
(71
)
(39
)
—
(39
)
Net revenues
73,223
16,049
324
89,596
—
89,596
Segment and corporate expenses
(income):
Store expenses
59,687
16,423
1,396
77,506
—
77,506
General and administrative
—
—
—
—
3,778
3,778
Impairment of goodwill, intangible and
other assets
—
2
25
27
7,579
7,606
Depreciation and amortization
2,705
1,839
8
4,552
3,101
7,653
Loss (gain) on sale or disposal of assets
and other
151
—
—
151
(610
)
(459
)
Other Charges
3,106
1,715
3,802
8,623
11,765
20,388
Interest expense
—
255
85
340
5,543
5,883
Interest income
—
(425
)
—
(425
)
(336
)
(761
)
Equity in net income of unconsolidated
affiliates
—
—
(3,467
)
(3,467
)
—
(3,467
)
Other expense (income)
—
147
(8
)
139
59
198
Segment contribution (loss)
$
7,574
$
(3,907
)
$
(1,517
)
$
2,150
Income (loss) before income taxes
$
2,150
$
(30,879
)
$
(28,729
)
Twelve Months Ended September
30, 2021
(in thousands)
U.S. Pawn
Latin America Pawn
Other International
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
Net revenues
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 (gain) 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
Twelve Months Ended September
30, 2020
(in thousands)
U.S. Pawn
Latin America Pawn
Other International
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
391,921
$
106,292
$
—
$
498,213
$
—
$
498,213
Jewelry scrapping sales
36,691
11,262
—
47,953
—
47,953
Pawn service charges
210,081
62,557
—
272,638
—
272,638
Other revenues
150
—
3,823
3,973
—
3,973
Total revenues
638,843
180,111
3,823
822,777
—
822,777
Merchandise cost of goods sold
251,544
82,937
—
334,481
—
334,481
Jewelry scrapping cost of goods sold
28,064
9,977
—
38,041
—
38,041
Other cost of revenues
—
101
953
1,054
—
1,054
Net revenues
359,235
87,096
2,870
449,201
—
449,201
Segment and corporate expenses
(income):
Store expenses
261,608
69,916
5,246
336,770
—
336,770
General and administrative
—
—
—
—
54,133
54,133
Impairment of goodwill, intangible and
other assets
10,000
35,938
1,149
47,087
7,579
54,666
Depreciation and amortization
11,030
7,315
68
18,413
12,414
30,827
Loss (gain) on sale or disposal of assets
and other
385
(72
)
(20
)
293
508
801
Other Charges
3,106
1,715
3,802
8,623
11,765
20,388
Interest expense
—
685
549
1,234
21,238
22,472
Interest income
—
(1,586
)
—
(1,586
)
(1,587
)
(3,173
)
Equity in net loss of unconsolidated
affiliates
—
—
2,429
2,429
—
2,429
Other (income) expense
—
(156
)
6
(150
)
133
(17
)
Segment contribution (loss)
$
73,106
$
(26,659
)
$
(10,359
)
$
36,088
Income (loss) before income taxes
$
36,088
$
(106,183
)
$
(70,095
)
EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
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
As of September 30, 2021
516
632
1,148
Three Months Ended September
30, 2020
U.S. Pawn
Latin America Pawn
Other International
Consolidated
As of June 30, 2020
511
496
22
1,029
New locations opened
—
7
—
7
Locations sold, combined or closed
(6
)
(3
)
(22
)
(31
)
As of September 30, 2020
505
500
—
1,005
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
Twelve Months Ended September
30, 2020
U.S. Pawn
Latin America Pawn
Other International
Consolidated
As of September 30, 2019
512
480
22
1,014
New locations opened
—
23
—
23
Locations sold, combined or closed
(7
)
(3
)
(22
)
(32
)
As of September 30, 2020
505
500
—
1,005
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, 2021 and 2020 were as follows:
September 30,
Three Months Ended September
30,
Twelve Months Ended September
30,
2021
2020
2021
2020
2021
2020
Mexican peso
20.5
22.3
20.0
22.1
20.2
21.1
Guatemalan quetzal
7.6
7.6
7.6
7.5
7.6
7.5
Honduran lempira
23.9
24.2
23.5
24.3
23.8
24.3
Peruvian sol
4.1
3.6
4.0
3.5
3.7
3.4
Our statement of operations constant currency results reflect
the monthly exchange rate fluctuations and so are not directly
calculable from the above rates. Constant currency results, where
presented, also exclude the foreign currency gain or loss.
Miscellaneous Non-GAAP Financial Measures
Three Months Ended September
30,
Twelve Months Ended September
30,
(in millions)
2021
2020
2021
2020
Net income (loss)
$
1.6
$
(23.3
)
$
8.6
$
(68.5
)
Interest expense
5.6
5.9
22.2
22.5
Interest income
(0.6
)
(0.8
)
(2.5
)
(3.2
)
Income tax expense (benefit)
3.0
(5.4
)
7.5
(1.6
)
Depreciation and amortization
7.6
7.7
30.7
30.8
EBITDA
$
17.2
$
(16.0
)
$
66.5
$
(20.0
)
Total Revenues
Net Revenues
Income (Loss) Before
Tax
Tax Effect
Net Income (Loss)
Diluted EPS
EBITDA
2021 Q4 Reported
$
192.4
$
119.3
$
4.5
$
2.9
$
1.6
$
0.03
$
17.2
Acquisition expenses
—
—
1.5
0.1
1.4
0.02
1.5
Peru reserve
—
—
(0.3
)
—
(0.3
)
—
(0.3
)
Non cash net interest expense
—
—
3.6
0.1
3.5
0.06
—
Constant currency impact
(3.7
)
(2.1
)
(0.3
)
(0.1
)
(0.2
)
—
(0.3
)
2021 Q4 Adjusted
$
188.7
$
117.2
$
9.0
$
3.0
$
6.0
$
0.11
$
18.1
Total Revenues
Net Revenues
Income (Loss) Before
Tax
Tax Effect
Net Income (Loss)
Diluted EPS
EBITDA
2021 Full Year Reported
$
729.6
$
449.5
$
16.1
$
7.5
$
8.6
$
0.15
$
66.5
Acquisition expenses
—
—
2.0
0.4
1.6
0.03
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 expense
—
—
13.8
2.3
11.5
0.21
—
Constant currency impact
(5.5
)
(3.2
)
(0.6
)
(0.1
)
(0.5
)
—
(0.8
)
2021 Full Year Adjusted
$
724.1
$
446.3
$
31.1
$
10.1
$
21.0
$
0.38
$
67.5
Total Revenues
Net Revenues
(Loss) Income Before
Tax
Tax Effect
Net (Loss) Income
Diluted EPS
EBITDA
2020 Q4 Reported
$
166.8
$
89.6
$
(28.7
)
$
(5.4
)
$
(23.3
)
$
(0.42
)
$
(16.0
)
Other Charges
—
—
20.4
3.7
16.7
0.30
20.4
Impairment of intangible assets
—
—
7.6
1.7
5.9
0.11
7.6
Non cash interest
—
—
3.3
0.8
2.5
0.05
—
Other adjustments
—
—
0.7
(1.7
)
2.4
0.04
0.3
2020 Q4 Adjusted
$
166.8
$
89.6
$
3.3
$
(0.9
)
$
4.2
$
0.08
$
12.3
Total Revenues
Net Revenues
(Loss) Income Before
Tax
Tax Effect
Net (Loss) Income
Diluted EPS
EBITDA
2020 Full Year Reported
$
822.8
$
449.2
$
(70.1
)
$
(1.6
)
$
(68.5
)
$
(1.24
)
$
(20.0
)
Other Charges
—
—
20.4
1.9
18.5
0.34
20.4
Impairment of intangible assets
—
—
47.1
4.5
42.6
0.77
47.1
ROU asset impairment
—
—
5.0
0.5
4.5
0.08
5.0
COVID-19 related expenses
—
—
1.4
0.1
1.3
0.02
1.4
Shrink/robbery/property loss (US
stores)
—
2.3
2.3
0.2
2.1
0.04
2.3
Mexico VAT adjustment costs
—
—
1.1
0.1
1.0
0.02
1.1
CCV adjustments
—
—
7.1
0.7
6.4
0.12
7.1
IT Project write-offs
—
—
2.6
0.2
2.4
0.04
2.6
Non cash interest expense
—
—
12.4
1.2
11.2
0.20
—
Other adjustments
—
—
0.1
—
0.1
—
(0.7
)
2020 Full Year Adjusted
$
822.8
$
451.5
$
29.4
$
7.8
$
21.6
$
0.39
$
66.3
Three Months Ended September
30, 2021
Twelve Months Ended September
30, 2021
(in millions)
U.S. Dollar Amount
Percentage Change YOY
U.S. Dollar Amount
Percentage Change YOY
Consolidated revenue
$
192.4
15
%
$
729.6
(11
)%
Currency exchange rate fluctuations
(3.7
)
(5.5
)
Constant currency consolidated revenue
$
188.7
13
%
$
724.1
(12
)%
Consolidated net revenue
$
119.3
33
%
$
449.5
—
%
Currency exchange rate fluctuations
(2.1
)
(3.2
)
Constant currency consolidated net
revenue
$
117.2
31
%
$
446.3
(1
)%
Consolidated net inventory
$
111.0
16
%
$
111.0
16
%
Currency exchange rate fluctuations
(1.8
)
(1.8
)
Constant currency consolidated net
inventory
$
109.2
14
%
$
109.2
14
%
Latin America Pawn net revenue
$
30.6
91
%
$
99.5
14
%
Currency exchange rate fluctuations
(2.1
)
(3.1
)
Constant currency Latin America Pawn net
revenue
$
28.5
77
%
$
96.4
11
%
Latin America Pawn PLO
$
40.0
60
%
$
40.0
60
%
Currency exchange rate fluctuations
(2.3
)
(2.3
)
Constant currency Latin America Pawn
PLO
$
37.7
51
%
$
37.7
51
%
Latin America Pawn PSC revenues
$
20.0
66
%
$
63.5
1
%
Currency exchange rate fluctuations
(1.3
)
(2.0
)
Constant currency Latin America Pawn PSC
revenues
$
18.6
55
%
$
61.5
(2
)%
Latin America Pawn merchandise sales
$
31.0
14
%
$
101.3
(5
)%
Currency exchange rate fluctuations
(2.3
)
(3.1
)
Constant currency Latin America Pawn
merchandise sales
$
28.7
5
%
$
98.2
(8
)%
Latin America Pawn segment profit before
tax
$
6.1
257
%
$
17.3
165
%
Currency exchange rate fluctuations
(0.3
)
(0.6
)
Constant currency Latin America Pawn
segment profit before tax
$
5.8
249
%
$
16.7
163
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211117006361/en/
Email: Investor_Relations@ezcorp.com Phone: (512) 314-2220
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