Pawn Loans Outstanding of $157.2 million,
Net Revenue of $108 million, Net Loss of $2.6 million - All
Year-Over-Year Improvements
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, 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.
CEO COMMENTARY AND OUTLOOK
Chief Executive Officer Jason Kulas stated, “During the quarter,
we completed the acquisition of 128 Cash Apoyo Efectivo stores in
Mexico, our largest acquisition to date in terms of store-count,
solidifying our position as the second largest for-profit pawn
operator in Mexico. We also acquired 11 stores in the Houston,
Texas area and opened four de novo stores in Latin America,
bringing our total store count to 1,143 at the end of the quarter,
627 (55%) of which are in Latin America.
"The third quarter was a solid quarter in which we continued to
make significant strides in strengthening and growing our core pawn
business. Despite lingering transitory COVID-related impacts,
including government stimulus programs in the U.S., we continued to
drive meaningful improvements across core operating metrics. We
achieved our highest quarter-ending balance of PLO since the
beginning of the pandemic, up 25% on a sequential basis and 39%
compared to a year ago. While merchandise sales volumes were down
21% from their peak pandemic levels a year ago, we delivered a 6%
increase in sales gross profit through effective inventory
management and higher margins. These positive results reflect the
relentless focus of our store teams on meeting our customers’ needs
and executing the fundamentals.
“Net Income improved from a loss of $5.5 million to a loss of
$2.6 million, while adjusted EBITDA more than doubled, reflecting
not only the improvement in core operating metrics, but also our
ongoing commitment to expense management and efficiency. We remain
on track to realize annualized cost savings of more than $14.0
million for fiscal 2021 even assuming store-level expenses trend
higher as transaction volumes accelerate.
“Looking ahead, we remain well positioned to continue our trend
of improving financial performance, and are excited about the
increasing earnings power of the platform. Pawn transaction
activity continues to rebuild, driving PLO balances closer to
pre-pandemic levels, which will drive accelerating pawn service
charge revenue in the coming quarters given the natural lag between
pawn originations and related fees. In addition, we remain on track
to realize meaningful cost savings this year and beyond, even
assuming store-level expenses trend higher to meet accelerating
transaction volumes. And, we maintain a strong and liquid balance
sheet to fund accelerating pawn demand and capitalize on
acquisition opportunities that further enhance our scale-enabled
and geographically diverse footprint and generate strong returns on
investment.”
CONSOLIDATED RESULTS Three Months Ended
June 30 in millions, except per share amounts
As Reported
Adjusted1
2021
2020
2021
2020
Total Revenues
$
174.0
$
210.2
$
169.6
$
210.2
Net Revenues
$
108.0
$
102.2
$
105.5
$
104.4
(Loss) Income, Before Tax
$
(0.8)
$
(10.2)
$
3.2
$
(3.9)
Net Loss
$
(2.6)
$
(5.5)
$
(1.7)
$
(1.1)
Diluted Loss Per Share
$
(0.05)
$
(0.10)
$
(0.03)
$
(0.02)
EBITDA
$
11.7
$
2.2
$
12.0
$
5.3
- Diluted loss per share was $0.05, compared to a diluted loss
per share of $0.10 in the prior-year quarter. On an adjusted
basis1, diluted loss per share was $0.03, compared to diluted loss
per share of $0.02 in the prior-year quarter.
- Income before taxes improved $9.5 million or 93% from a loss of
$10.2 million to a loss of $0.8 million. Adjusted EBITDA increased
$6.7 million or 126% from $5.3 million to $12.0 million.
- Pawn loans outstanding (PLO) increased to $157.2 million up 39%
from the prior-year quarter and 25% on a sequential basis. On a
same store basis, PLO increased 34% year-over-year and 21%
sequentially.
- Net revenues increased $5.8 million or 6% while total revenues
decreased $36.2 million or 17%.
- Merchandise sales gross profit increased by 6%, even though
merchandise sales decreased by $28.7 million or 21% as a result of
effective inventory management. Merchandise sales gross profit
margin was 44%, a 1,100 bps improvement over the prior-year quarter
(which was adversely impacted by a cost of goods sold adjustment
for merchandise lost during looting at 30 U.S. stores during that
quarter) and 100 bps over the immediately preceding quarter.
- PSC increased $8.0 million or 15% due to an increase in the
average PLO balance during the quarter.
- Jewelry scrapping sales decreased $14.6 million or 72% and
jewelry scrapping sales gross profit decreased $3.9 million or 95%.
Jewelry scrapping sales gross profit margin decreased to 4% from
20%. This reflects our strategy of focusing on selling jewelry at
higher retail margins than the scrapping process provides.
- Net inventory was $92.2 million, down 25% year-over-year and 7%
sequentially. Inventory turnover improved to 3.1x from 2.9x.
- Total operating expenses were down $2.1 million or 2% to $104.3
million. Store expenses decreased 1% even though store count grew
by 11%. In addition, general and administrative expenses decreased
$1.6 million or 10% due to continued focus on expense control
initiatives implemented since the fourth quarter of 2020.
- Cash and cash equivalents at the end of the quarter was $283.7
million, down $27.5 million or 9% year-over-year and $52.0 million
or 15% on a sequential basis. The decrease is primarily due to the
increase in PLO and the acquisition of new stores.
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.
SEGMENT RESULTS
U.S. Pawn
- PLO increased 35% year-over-year to $117.2 million. On a
sequential basis, PLO increased 23% compared to a 29% sequential
decrease in the prior-year quarter. On a same store basis, PLO
increased 34% year-over-year and 22% sequentially.
- Total revenue was down 25% to $130.4 million, while net
revenues decreased 3% to $83.3 million.
- Merchandise sales and same store sales declined 27% to $84.5
million, but merchandise sales gross profit was down only 3%,
reflecting increased gross margins of 46% compared to 35% in the
prior-year-quarter (37% when excluding a loss from looting of $2.2
million from merchandise cost of goods sold in the
prior-year-quarter). Aged general merchandise inventory as a
percentage of total inventory improved to 1.2% from 4.9%.
- PSC increased 7% to $44.0 million as a result of higher average
PLO for the quarter.
- Jewelry scrapping sales decreased $15.2 million or 89% and
jewelry scrapping sales gross profit decreased $4.2 million or 99%
Jewelry scrapping sales gross profit margin decreased to 2% from
25%.
- Net inventory was down $20.9 million or 23% year-over-year and
1% sequentially. Inventory turnover decreased to 2.8x from
3.2x.
- Store expenses were down 6% to $62.5 million driven by a
reduction in labor expense.
- Segment contribution increased $1.6 million to $18.1 million.
When excluding the looting charge taken in the prior year quarter,
segment contribution decreased $0.6 million.
- Segment store count increased by 11 during the quarter, due to
the acquisition of 11 pawn stores in the Houston, Texas area.
Latin America Pawn
- PLO increased 51% year-over-year to $40.0 million (36% on
constant currency basis). On a sequential basis, PLO increased 34%
compared to a 31% sequential decrease in the prior-year quarter. On
a same store basis, PLO increased 32% year-over-year and 17%
sequentially.
- Total revenue was up 25% to $43.5 million (12% on a constant
currency basis), while net revenues increased 59% to $24.7 million
(43% on a constant currency basis).
- Merchandise sales grew 15% to $23.3 million (up 3% to $20.8
million on a constant currency basis) and same store sales grew 8%
(down 4% on a constant currency basis). Merchandise sales gross
profit was up 91%, reflecting significantly improved margins of 35%
compared to 21% in the prior-year quarter. Aged general merchandise
as a percentage of total inventory improved to 0.9% from
18.1%.
- PSC increased $5.0 million to $16.4 million (up 30% to $14.8
million on a constant currency basis) as a result of higher average
PLO for the quarter.
- Net inventory was down $9.9 million or 30% year-over-year (38%
on a constant currency basis), but up 41% sequentially. Inventory
turnover improved to 4.0x from 2.2x.
- Store expenses were up $4.3 million or 28% ($2.2 million or 15%
on a constant currency basis) primarily due to an increase in
transaction volume and costs resulting from the re-opening of
stores impacted by the COVID-19 pandemic last year.
- Segment contribution was $3.6 million ($3.2 million on a
constant currency basis), compared to a segment loss of $0.7
million in the prior year quarter.
- Segment store count increased by 121 during the quarter,
reflecting the acquisition of 128 Cash Apoyo Efectivo stores, the
addition of four de novo stores and the closure of 11 stores in
Peru.
FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2021 has been filed with the Securities and Exchange
Commission and 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 5, 2021,
at 7:00 am Central Time to discuss fiscal third quarter results.
Analysts and institutional investors may participate on the
conference call by dialing (866) 269-4262, Conference ID: 8885759,
or internationally by dialing (323) 347-3281. 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.
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.
EZCORP, Inc. CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended June
30,
Nine Months Ended June
30,
(in thousands, except per share
amount)
2021
2020
2021
2020
Revenues:
Merchandise sales
$
107,808
$
136,537
$
330,816
$
393,095
Jewelry scrapping sales
5,673
20,303
18,507
41,709
Pawn service charges
60,431
52,460
187,356
217,407
Other revenues
121
924
428
3,727
Total revenues
174,033
210,224
537,107
655,938
Merchandise cost of goods sold
60,539
91,859
190,872
261,711
Jewelry scrapping cost of goods sold
5,473
16,158
16,076
33,529
Other cost of revenues
—
32
—
1,093
Net revenues
108,021
102,175
330,159
359,605
Operating expenses:
Store expenses
81,803
82,341
242,261
259,264
General and administrative
14,589
16,176
40,870
50,355
Impairment of goodwill, intangible and
other assets
—
—
—
47,060
Depreciation and amortization
7,419
7,679
23,080
23,174
Loss on sale or disposal of assets and
other
—
255
90
1,260
Other charges
497
—
497
—
Total operating expenses
104,308
106,451
306,798
381,113
Operating income (loss)
3,713
(4,276)
23,361
(21,508)
Interest expense
5,569
5,379
16,542
16,589
Interest income
(512)
(628)
(1,918)
(2,412)
Equity in net (income) loss of
unconsolidated affiliates
(643)
1,183
(2,409)
5,896
Other expense (income)
65
28
(389)
(215)
(Loss) income before income taxes
(766)
(10,238)
11,535
(41,366)
Income tax expense (benefit)
1,804
(4,751)
4,476
3,757
Net (loss) income
$
(2,570)
$
(5,487)
$
7,059
$
(45,123)
Basic (loss) earnings per share
$
(0.05)
$
(0.10)
$
0.13
$
(0.81)
Diluted (loss) earnings per share
$
(0.05)
$
(0.10)
$
0.13
$
(0.81)
Weighted-average basic shares
outstanding
55,898
55,068
55,639
55,395
Weighted-average diluted shares
outstanding
55,898
55,068
55,653
55,395
EZCORP, Inc. CONSOLIDATED
BALANCE SHEETS
(in thousands, except share and per share
amounts)
June 30, 2021
June 30, 2020
September 30, 2020
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents
$
283,668
$
311,130
$
304,542
Restricted cash
13,795
4,000
8,011
Pawn loans
157,155
113,290
131,323
Pawn service charges receivable, net
24,965
17,432
20,580
Inventory, net
92,242
123,112
95,891
Notes receivable, net
—
3,866
—
Prepaid expenses and other current
assets
28,343
25,754
32,903
Total current assets
600,168
598,584
593,250
Investments in unconsolidated
affiliates
35,387
29,483
32,458
Property and equipment, net
55,630
58,098
56,986
Lease right-of-use asset
185,467
204,591
183,809
Goodwill
283,619
257,326
257,582
Intangible assets, net
61,922
65,003
58,638
Notes receivable, net
1,173
1,140
1,148
Deferred tax asset, net
10,292
5,505
8,931
Other assets
4,992
4,572
4,221
Total assets
$
1,238,650
$
1,224,302
$
1,197,023
Liabilities and equity:
Current liabilities:
Current maturities of long-term debt,
net
$
—
$
268
$
213
Accounts payable, accrued expenses and
other current liabilities
84,966
58,358
71,504
Customer layaway deposits
11,884
11,902
11,008
Lease liability
47,241
48,840
49,742
Total current liabilities
144,091
119,368
132,467
Long-term debt, net
260,632
247,618
251,016
Deferred tax liability, net
1,309
2,165
524
Lease liability
149,342
167,716
153,040
Other long-term liabilities
10,058
7,523
10,849
Total liabilities
565,432
544,390
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; issued and
outstanding: 53,086,438 as of June 30, 2021; 52,097,590 as of June
30, 2020; and 52,332,848 as of September 30, 2020
530
521
521
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
402,522
408,601
398,475
Retained earnings
325,228
341,517
318,169
Accumulated other comprehensive loss
(55,092)
(70,757)
(68,068)
Total equity
673,218
679,912
649,127
Total liabilities and equity
$
1,238,650
$
1,224,302
$
1,197,023
EZCORP, Inc. CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended June
30,
(in thousands)
2021
2020
Operating activities:
Net income (loss)
$
7,059
$
(45,123)
Adjustments to reconcile net income (loss)
to net cash flows from operating activities:
Depreciation and amortization
23,080
23,174
Amortization of debt discount and deferred
financing costs
10,243
9,814
Amortization of lease right-of-use
asset
35,885
34,265
Accretion of notes receivable discount and
deferred compensation fee
—
(688)
Deferred income taxes
(576)
(3,327)
Impairment of goodwill and intangible
assets
—
47,060
Other adjustments
(331)
2,128
Provision for inventory reserve
(6,812)
(4,477)
Stock compensation expense
3,156
5,093
Equity in net (income) loss of
unconsolidated affiliates
(2,409)
5,896
Changes in operating assets and
liabilities, net of business acquisitions:
Service charges and fees receivable
(2,832)
14,076
Inventory
5,382
12,467
Prepaid expenses, other current assets and
other assets
7,908
(3,348)
Accounts payable, accrued expenses and
other liabilities
(51,565)
(40,450)
Customer layaway deposits
511
(709)
Income taxes
4,423
514
Net cash provided by operating
activities
33,122
56,365
Investing activities:
Loans made
(423,450)
(442,752)
Loans repaid
260,536
321,718
Recovery of pawn loan principal through
sale of forfeited collateral
155,595
248,290
Capital expenditures, net
(14,635)
(20,867)
Acquisitions, net of cash acquired
(15,132)
—
Principal collections on notes
receivable
—
4,000
Net cash (used in) provided by investing
activities
(37,086)
110,389
Financing activities:
Taxes paid related to net share settlement
of equity awards
(839)
(1,458)
Payout of deferred consideration
—
(350)
Proceeds from borrowings, net of issuance
costs
—
(106)
Payments on assumed debt and other
borrowings
(15,363)
(316)
Repurchase of common stock
—
(5,158)
Net cash used in financing activities
(16,202)
(7,388)
Effect of exchange rate changes on cash
and cash equivalents and restricted cash
5,076
(6,678)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(15,090)
152,688
Cash, cash equivalents and restricted cash
at beginning of period
312,553
162,442
Cash, cash equivalents and restricted cash
at end of period
$
297,463
$
315,130
Supplemental disclosure of cash flow
information
Cash and cash equivalents
$
283,668
$
311,130
Restricted cash
13,795
4,000
Total cash and cash equivalents and
restricted cash
$
297,463
$
315,130
Non-cash investing and financing
activities:
Pawn loans forfeited and transferred to
inventory
$
145,839
$
200,160
Transfer of consideration for current
period acquisition
1,547
—
Acquisition earn-out contingency
4,608
—
Accrued acquisition consideration held as
restricted cash
5,824
—
EZCORP, Inc. OPERATING SEGMENT
RESULTS (Unaudited)
Three Months Ended June 30,
2021
(in thousands)
U.S. Pawn
Latin America Pawn
Other International
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
84,465
$
23,343
$
—
$
107,808
$
—
$
107,808
Jewelry scrapping sales
1,908
3,765
—
5,673
—
5,673
Pawn service charges
44,039
16,392
—
60,431
—
60,431
Other revenues
32
—
89
121
—
121
Total revenues
130,444
43,500
89
174,033
—
174,033
Merchandise cost of goods sold
45,310
15,229
—
60,539
—
60,539
Jewelry scrapping cost of goods sold
1,878
3,595
—
5,473
—
5,473
Other cost of revenues
—
—
—
—
—
—
Net revenues
83,256
24,676
89
108,021
—
108,021
Segment and corporate expenses
(income):
Store expenses
62,507
19,296
—
81,803
—
81,803
General and administrative
—
—
—
—
14,589
14,589
Depreciation and amortization
2,600
1,806
—
4,406
3,013
7,419
Other charges
—
497
—
497
—
497
Interest expense
—
—
—
—
5,569
5,569
Interest income
—
(484)
—
(484)
(28)
(512)
Equity in net income of unconsolidated
affiliates
—
—
(643)
(643)
—
(643)
Other (income) expense
—
(5)
18
13
52
65
Segment contribution
$
18,149
$
3,566
$
714
$
22,429
Income (loss) before income taxes
$
22,429
$
(23,195)
$
(766)
Three Months Ended June 30,
2020
(in thousands)
U.S. Pawn
Latin America Pawn
Other International
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
116,258
$
20,279
$
—
$
136,537
$
136,537
Jewelry scrapping sales
17,129
3,174
—
20,303
—
20,303
Pawn service charges
41,069
11,391
—
52,460
—
52,460
Other revenues
40
—
884
924
—
924
Total revenues
174,496
34,844
884
210,224
—
210,224
Merchandise cost of goods sold
75,838
16,021
—
91,859
—
91,859
Jewelry scrapping cost of goods sold
12,875
3,283
—
16,158
—
16,158
Other cost of revenues
—
32
—
32
—
32
Net revenues
85,783
15,508
884
102,175
—
102,175
Segment and corporate expenses
(income):
Store expenses
66,243
15,041
1,057
82,341
—
82,341
General and administrative
—
—
—
—
16,176
16,176
Depreciation and amortization
2,749
1,647
3
4,399
3,280
7,679
(Gain) loss on sale or disposal of assets
and other
234
23
(20)
237
18
255
Interest expense
—
—
140
140
5,239
5,379
Interest income
—
(404)
—
(404)
(224)
(628)
Equity in net income of unconsolidated
affiliates
—
—
1,183
1,183
—
1,183
Other (income) expense
—
(61)
(5)
(66)
94
28
Segment contribution (loss)
$
16,557
$
(738)
$
(1,474)
$
14,345
Loss before income taxes
$
14,345
$
(24,583)
$
(10,238)
Nine Months Ended June 30,
2021
(in thousands)
U.S. Pawn
Latin America Pawn
Other International
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
260,545
$
70,271
$
—
$
330,816
$
—
$
330,816
Jewelry scrapping sales
9,493
9,014
—
18,507
—
18,507
Pawn service charges
143,836
43,520
—
187,356
—
187,356
Other revenues
83
7
338
428
—
428
Total revenues
413,957
122,812
338
537,107
—
537,107
Merchandise cost of goods sold
145,181
45,691
—
190,872
—
190,872
Jewelry scrapping cost of goods sold
7,871
8,205
—
16,076
—
16,076
Net revenues
260,905
68,916
338
330,159
—
330,159
Segment and corporate expenses
(income):
Store expenses
188,256
54,005
—
242,261
—
242,261
General and administrative
—
—
—
—
40,870
40,870
Depreciation and amortization
7,972
5,459
—
13,431
9,649
23,080
Loss on sale or disposal of assets and
other
27
—
—
27
63
90
Other charges
—
497
—
497
—
497
Interest expense
—
—
—
—
16,542
16,542
Interest income
—
(1,819)
—
(1,819)
(99)
(1,918)
Equity in net income of unconsolidated
affiliates
—
—
(2,409)
(2,409)
—
(2,409)
Other (income) expense
—
(375)
(183)
(558)
169
(389)
Segment contribution
$
64,650
$
11,149
$
2,930
$
78,729
Income (loss) before income taxes
$
78,729
$
(67,194)
$
11,535
Nine Months Ended June 30,
2020
(in thousands)
U.S. Pawn
Latin America Pawn
Other International
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
314,059
$
79,036
$
—
$
393,095
$
—
$
393,095
Jewelry scrapping sales
32,905
8,804
—
41,709
—
41,709
Pawn service charges
166,859
50,548
—
217,407
—
217,407
Other revenues
107
50
3,570
3,727
—
3,727
Total revenues
513,930
138,438
3,570
655,938
—
655,938
Merchandise cost of goods sold
202,488
59,223
—
261,711
—
261,711
Jewelry scrapping cost of goods sold
25,430
8,099
—
33,529
—
33,529
Other cost of revenues
—
69
1,024
1,093
—
1,093
Net revenues
286,012
71,047
2,546
359,605
—
359,605
Segment and corporate expenses
(income):
Store expenses
201,921
53,493
3,850
259,264
—
259,264
General and administrative
—
—
—
—
50,355
50,355
Impairment of goodwill, intangible and
other assets
10,000
35,936
1,124
47,060
—
47,060
Depreciation and amortization
8,325
5,476
60
13,861
9,313
23,174
(Gain) loss on sale or disposal of assets
and other
234
(72)
(20)
142
1,118
1,260
Interest expense
—
430
464
894
15,695
16,589
Interest income
—
(1,161)
—
(1,161)
(1,251)
(2,412)
Equity in net loss of unconsolidated
affiliates
—
5,896
5,896
—
5,896
Other (income) expense
—
(303)
14
(289)
74
(215)
Segment contribution (loss)
$
65,532
$
(22,752)
$
(8,842)
$
33,938
Income (loss) before income taxes
$
33,938
$
(75,304)
$
(41,366)
EZCORP, Inc. STORE COUNT
ACTIVITY (Unaudited)
Three Months Ended June 30,
2021
U.S. Pawn
Latin America Pawn
Consolidated
As of March 31, 2021
505
506
1,011
New locations opened
—
4
4
Locations acquired
11
128
139
Locations sold, combined or closed
—
(11)
(11)
As of June 30, 2021
516
627
1,143
Three Months Ended June 30,
2020
U.S. Pawn
Latin America Pawn
Other International
Consolidated
As of March 31, 2020
512
493
22
1,027
New locations opened
—
3
—
3
Locations sold, combined or closed
(1)
—
—
(1)
As of June 30, 2020
511
496
22
1,029
Nine Months Ended June 30,
2021
U.S. Pawn
Latin America Pawn
Consolidated
As of September 30, 2020
505
500
1,005
New locations opened
—
10
10
Locations acquired
11
128
139
Locations sold, combined or closed
—
(11)
(11)
As of June 30, 2021
516
627
1,143
Nine Months Ended June 30,
2020
U.S. Pawn
Latin America Pawn
Other
International
Consolidated
As of September 30, 2019
512
480
22
1,014
New locations opened
—
16
—
16
Locations sold, combined or closed
(1)
—
—
(1)
As of June 30, 2020
511
496
22
1,029
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 nine months ended June 30, 2021
and 2020 were as follows:
June 30,
Three Months Ended June
30,
Nine Months Ended June
30,
2021
2020
2021
2020
2021
2020
Mexican peso
19.9
23.1
20.0
23.3
20.3
20.8
Guatemalan quetzal
7.6
7.5
7.6
7.5
7.6
7.5
Honduran lempira
23.6
24.4
23.7
24.4
23.8
24.3
Peruvian sol
3.9
3.5
3.8
3.4
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
2021 Q3
2020 Q3
(in millions)
Net loss
$
(2.6)
$
(5.5)
Interest expense
5.6
5.4
Interest income
(0.5)
(0.6)
Income tax expense
1.8
(4.8)
Depreciation and amortization
7.4
7.7
EBITDA
$
11.7
$
2.2
Total Revenues
Net Revenues
Income Before Tax
Tax Effect
Net Income
Diluted EPS
EBITDA
2021 Q3 Reported
$
174.0
$
108.0
$
(0.8)
$
1.8
$
(2.6)
$
(0.05)
$
11.7
Acquisition expenses
—
—
0.3
0.2
0.1
—
0.3
Peru reserve
—
—
0.5
0.4
0.1
—
—
Non cash net interest expense
—
—
3.5
2.5
1.0
0.02
—
Constant currency impact
(4.4)
(2.5)
(0.3)
—
(0.3)
—
—
2021 Q3 Adjusted
$
169.6
$
105.5
$
3.2
$
4.9
$
(1.7)
$
(0.03)
$
12.0
Total Revenues
Net Revenues
(Loss) Income Before
Tax
Tax Effect
Net (Loss) Income
Diluted EPS
EBITDA
2020 Q3 Reported
$
210.2
$
102.2
$
(10.2)
$
(4.7)
$
(5.5)
$
(0.10)
$
2.2
COVID-19 expenses
—
—
0.5
0.1
0.4
0.01
0.5
Civil unrest - asset disposal
—
—
0.2
—
0.2
—
0.2
Civil unrest - looting
—
—
2.2
0.7
1.5
0.03
2.2
Currency exchange rate fluctuations
—
—
0.6
0.1
0.5
0.01
0.5
Non cash interest
—
—
3.2
1.0
2.2
0.04
—
Constant currency impact
—
2.2
(0.4)
—
(0.4)
(0.01)
(0.3)
2020 Q3 Adjusted
$
210.2
$
104.4
$
(3.9)
$
(2.8)
$
(1.1)
$
(0.02)
$
5.3
2021 Q3:
U.S. Dollar Amount
Percentage Change YOY
(in millions)
Consolidated revenue
$
174.0
(17)
%
Currency exchange rate fluctuations
(4.4)
Constant currency consolidated revenue
$
169.6
(19)
%
Consolidated net revenue
$
108.0
6
%
Currency exchange rate fluctuations
(2.5)
Constant currency consolidated net
revenue
$
105.5
1
%
Consolidated net inventory
$
92.2
(25)
%
Currency exchange rate fluctuations
(2.6)
Constant currency consolidated net
inventory
$
89.6
(27)
%
Latin America Pawn net revenue
$
24.7
59
%
Currency exchange rate fluctuations
(2.5)
Constant currency Latin America Pawn net
revenue
$
22.2
44
%
Latin America Pawn PLO
$
40.0
51
%
Currency exchange rate fluctuations
(4.0)
Constant currency Latin America Pawn
PLO
$
36.0
36
%
Latin America Pawn PSC revenues
$
16.4
44
%
Currency exchange rate fluctuations
(1.6)
Constant currency Latin America Pawn PSC
revenues
$
14.8
30
%
Latin America Pawn merchandise sales
$
23.3
15
%
Currency exchange rate fluctuations
(2.5)
Constant currency Latin America Pawn
merchandise sales
$
20.8
2
%
Latin America Pawn segment profit before
tax
$
3.6
583
%
Currency exchange rate fluctuations
(0.4)
Constant currency Latin America Pawn
segment profit before tax
$
3.2
535
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210804006122/en/
Email: Investor_Relations@ezcorp.com Phone: (512) 314-2220
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