We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
EZCORP Inc | NASDAQ:EZPW | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 10.31 | 9.15 | 13.00 | 0 | 09:00:00 |
Pawn Loans Outstanding and Record Sales Driving Strong Revenue and Earnings Growth
EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its first quarter ended December 31, 2022.
Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") and comparisons shown are to the same period in the prior year.
FIRST QUARTER HIGHLIGHTS
CEO COMMENTARY AND OUTLOOK
Chief Executive Officer Lachie Given stated, “We began fiscal 2023 with another outstanding quarter, continuing to execute on our three-year strategic plan. Our PLO was the highest on record for this quarter, and we achieved our strongest ever quarterly sales result. The challenging macro-economic backdrop continues to drive increased demand for our two core products, which are providing solutions for our customers' short-term cash needs and selling second-hand goods. And our team’s relentless focus on improving the performance of every one of our 1,186 stores, continues to drive our excellent financial and operating results.
"We remain committed to market-leading customer service, by investing in our store-based and support teams, technology improvements, process efficiencies and automation, as we provide our customers with a fast, convenient and respectful solution to address their short-term cash needs. Additionally, our neighborhood retail locations provide affordable pre-owned and recycled general merchandise and jewelry to our cost-conscious and environmentally concerned consumers.
“During the first quarter, we acquired nine stores in the Houston, Texas area and one store in Las Vegas, Nevada. We opened two de novo stores in Latin America and expect to open more this quarter. We now have 2.4 million EZ+ Rewards members across all geographies, an increase of 26% over the fourth quarter of 2022.
“We proactively addressed our near-term convertible debt maturities with a successful placement of $230 million of 7-year convertible notes, materially de-risking the balance sheet while providing a stable, low cash-cost capital base from which to continue to grow. We retired approximately $178.5 million of convertible notes maturing in 2024 and 2025 and repurchased approximately $5 million in shares as part of this financing, in addition to the $2 million in shares we acquired during the quarter as part of our announced buy-back program.
“During the quarter, we launched new initiatives to enhance work-life balance for our team members and increase employer competitiveness at all levels. I believe we have the best, most passionate, engaged and productive team members in the industry. We are committed to doing everything we can to retain and incentivize them because it is their operational excellence that drives our financial results and ultimately enhances value for all shareholders,” concluded Given.
CONSOLIDATED RESULTS
Three Months Ended December 31
As Reported
Adjusted1
in millions, except per share amounts
2022
2021
2022
2021
Total revenues
$
264.3
$
221.0
$
261.6
$
221.0
Gross profit
$
152.5
$
132.1
$
151.1
$
132.1
Income before tax
$
24.5
$
21.3
$
28.0
$
21.4
Net income
$
16.8
$
15.7
$
21.4
$
16.0
Diluted earnings per share
$
0.25
$
0.21
$
0.28
$
0.22
EBITDA (non-GAAP measure)
$
38.1
$
31.0
$
37.9
$
31.1
SEGMENT RESULTS
U.S. Pawn
Latin America Pawn
FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2022 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com.
CONFERENCE CALL
EZCORP will host a conference call on Thursday, February 2, 2023, at 8:00 am Central Time to discuss First Quarter Fiscal 2023 results. Analysts and institutional investors may participate on the conference call by dialing (844) 200-6205, Conference ID: 341829, or internationally by dialing (929) 526-1599. The conference call will be webcast simultaneously to the public through this link: http://investors.ezcorp.com/. A replay of the conference call will be available online at http://investors.ezcorp.com/ shortly after the end of the call.
ABOUT EZCORP
Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell merchandise, primarily collateral forfeited from pawn lending operations and pre-owned and recycled merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index.
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.
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. “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.
2“Same Store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.
EZCORP, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(in thousands, except per share amounts)
2022
2021
(Unaudited)
Revenues:
Merchandise sales
$
163,787
$
137,720
Jewelry scrapping sales
7,884
6,944
Pawn service charges
92,593
76,025
Other revenues, net
63
305
Total revenues
264,327
220,994
Merchandise cost of goods sold
104,877
83,111
Jewelry scrapping cost of goods sold
6,953
5,772
Gross profit
152,497
132,111
Operating expenses:
Store expenses
100,803
86,771
General and administrative
15,476
15,545
Depreciation and amortization
7,988
7,574
(Gain) loss on sale or disposal of assets and other
(16
)
5
Total operating expenses
124,251
109,895
Operating income
28,246
22,216
Interest expense
6,190
2,431
Interest income
(664
)
(304
)
Equity in net income of unconsolidated affiliates
(1,584
)
(1,138
)
Other income
(234
)
(120
)
Income before income taxes
24,538
21,347
Income tax expense
7,760
5,626
Net income
$
16,778
$
15,721
Basic earnings per share
$
0.30
$
0.28
Diluted earnings per share
$
0.25
$
0.21
Weighted-average basic shares outstanding
56,308
56,183
Weighted-average diluted shares outstanding
83,779
81,948
EZCORP, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
December 31, 2022
December 31, 2021
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents
$
207,658
$
233,274
Restricted cash
8,359
8,692
Pawn loans
209,855
176,586
Pawn service charges receivable, net
34,921
29,765
Inventory, net
156,064
119,313
Prepaid expenses and other current assets
45,559
31,209
Total current assets
662,416
598,839
Investments in unconsolidated affiliates
37,789
42,513
Other investments
39,220
16,500
Property and equipment, net
55,612
52,201
Right-of-use asset, net
230,554
201,527
Goodwill
297,361
284,619
Intangible assets, net
58,029
61,458
Notes receivable, net
1,224
1,190
Deferred tax asset, net
12,428
15,623
Other assets
7,682
5,851
Total assets
$
1,402,315
$
1,280,321
Liabilities and equity:
Current liabilities:
Accounts payable, accrued expenses and other current liabilities
$
69,930
$
75,531
Customer layaway deposits
16,276
13,142
Operating lease liabilities, current
52,799
51,843
Total current liabilities
139,005
140,516
Long-term debt, net
358,984
311,844
Deferred tax liability, net
—
221
Operating lease liabilities
188,730
161,841
Other long-term liabilities
10,261
11,398
Total liabilities
696,980
625,820
Commitments and Contingencies
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01per share; shares authorized: 100 million; issued and outstanding: 52,877,930 as of December 31, 2022; 53,344,218 as of December 31, 2021; and 53,454,885 as of September 30, 2022
529
533
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171
30
30
Additional paid-in capital
343,012
339,955
Retained earnings
414,929
369,359
Accumulated other comprehensive loss
(53,165
)
(55,376
)
Total equity
705,335
654,501
Total liabilities and equity
$
1,402,315
$
1,280,321
EZCORP, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended December 31,
(in thousands)
2022
2021
(Unaudited)
Operating activities:
Net income
$
16,778
$
15,721
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization
7,988
7,574
Amortization of debt discount and deferred financing costs
378
374
Non-cash lease expense
13,596
12,694
Deferred income taxes
656
587
Other adjustments
(91
)
(30
)
Provision for inventory reserve
532
(820
)
Stock compensation expense
1,886
1,698
Equity in net income of unconsolidated affiliates
(1,584
)
(1,138
)
Loss on extinguishment of debt
3,545
—
Changes in operating assets and liabilities:
Service charges and fees receivable
(691
)
(419
)
Inventory
(1,881
)
(2,314
)
Prepaid expenses, other current assets and other assets
(2,280
)
(2,330
)
Accounts payable, accrued expenses and other liabilities
(34,761
)
(29,531
)
Customer layaway deposits
(752
)
551
Income taxes
6,574
4,741
Dividends from unconsolidated affiliates
1,775
1,660
Net cash provided by operating activities
11,668
9,018
Investing activities:
Loans made
(189,074
)
(166,480
)
Loans repaid
109,125
95,542
Recovery of pawn loan principal through sale of forfeited collateral
88,030
65,297
Capital expenditures, net
(7,182
)
(4,985
)
Acquisitions, net of cash acquired
(12,884
)
—
Issuance of notes receivable
(15,500
)
(1,000
)
Investment in unconsolidated affiliates
(2,133
)
(2,477
)
Investment in other investments
(15,000
)
(16,500
)
Net cash used in investing activities
(44,618
)
(30,603
)
Financing activities:
Taxes paid related to net share settlement of equity awards
(1,138
)
(792
)
Proceeds from issuance of debt
230,000
—
Debt issuance cost
(7,403
)
—
Cash paid on extinguishment of debt
(1,951
)
—
Payments on debt
(178,488
)
—
Repurchase of common stock
(7,027
)
—
Net cash provided by (used in) financing activities
33,993
(792
)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
605
719
Net increase (decrease) in cash, cash equivalents and restricted cash
1,648
(21,658
)
Cash, cash equivalents and restricted cash at beginning of period
214,369
263,624
Cash, cash equivalents and restricted cash at end of period
$
216,017
$
241,966
EZCORP, Inc.
OPERATING SEGMENT RESULTS
Three Months Ended December 31, 2022 (Unaudited)
(in thousands)
U.S. Pawn
Latin America Pawn
Other Investments
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
118,314
$
45,473
$
—
$
163,787
$
—
$
163,787
Jewelry scrapping sales
7,176
708
—
7,884
—
7,884
Pawn service charges
69,310
23,283
—
92,593
—
92,593
Other revenues
25
16
22
63
—
63
Total revenues
194,825
69,480
22
264,327
—
264,327
Merchandise cost of goods sold
73,256
31,621
—
104,877
—
104,877
Jewelry scrapping cost of goods sold
6,216
737
—
6,953
—
6,953
Other cost of revenues
—
—
—
—
—
—
Gross profit
115,353
37,122
22
152,497
—
152,497
Store expenses
73,304
27,499
—
100,803
—
100,803
General and administrative
—
(3
)
—
(3
)
15,479
15,476
Depreciation and amortization
2,755
2,215
—
4,970
3,018
7,988
(Gain) loss on sale or disposal of assets and other
3
(19
)
—
(16
)
—
(16
)
Interest expense
—
—
—
—
6,190
6,190
Interest income
—
(169
)
—
(169
)
(495
)
(664
)
Equity in net income of unconsolidated affiliates
—
—
(1,584
)
(1,584
)
—
(1,584
)
Other (income) expense
—
70
4
74
(308
)
(234
)
Segment contribution
$
39,291
$
7,529
$
1,602
$
48,422
Income (loss) before income taxes
$
48,422
$
(23,884
)
$
24,538
Three Months Ended December 31, 2021 (Unaudited)
(in thousands)
U.S. Pawn
Latin America Pawn
Other Investments
Total Segments
Corporate Items
Consolidated
Revenues:
Merchandise sales
$
102,078
$
35,642
$
—
$
137,720
$
—
$
137,720
Jewelry scrapping sales
4,980
1,964
—
6,944
—
6,944
Pawn service charges
56,557
19,468
—
76,025
—
76,025
Other revenues
22
240
43
305
—
305
Total revenues
163,637
57,314
43
220,994
—
220,994
Merchandise cost of goods sold
57,832
25,279
—
83,111
—
83,111
Jewelry scrapping cost of goods sold
3,975
1,797
—
5,772
—
5,772
Gross profit
101,830
30,238
43
132,111
—
132,111
Segment and corporate expenses (income):
Store expenses
64,689
22,082
—
86,771
—
86,771
General and administrative
—
—
—
—
15,545
15,545
Depreciation and amortization
2,670
1,980
—
4,650
2,924
7,574
Gain on sale of disposal of assets and other
—
5
—
5
—
5
Interest expense
—
—
—
—
2,431
2,431
Interest income
—
(182
)
—
(182
)
(122
)
(304
)
Equity in net income of unconsolidated affiliates
—
—
(1,138
)
(1,138
)
—
(1,138
)
Other (income) expense
—
(134
)
(12
)
(146
)
26
(120
)
Segment contribution
$
34,471
$
6,487
$
1,193
$
42,151
Income (loss) before income taxes
$
42,151
$
(20,804
)
$
21,347
EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
Three Months Ended December 31, 2022
U.S. Pawn
Latin America Pawn
Consolidated
As of September 30, 2022
515
660
1,175
New locations opened
—
2
2
Locations acquired
10
—
10
Locations sold, combined or closed
—
(1
)
(1
)
As of December 31, 2022
525
661
1,186
Three Months Ended December 31, 2021
U.S. Pawn
Latin America Pawn
Consolidated
As of September 30, 2021
516
632
1,148
New locations opened
—
1
1
Locations acquired
—
—
—
Locations sold, combined or closed
—
—
—
As of December 31, 2021
516
633
1,149
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. 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 three months ended December 31, 2022 and 2021 were as follows:
December 31,
Three Months Ended December 31,
2022
2021
2022
2021
Mexican peso
19.5
20.5
19.7
20.7
Guatemalan quetzal
7.7
7.5
7.7
7.6
Honduran lempira
24.4
24.1
24.3
23.9
Australian dollar
1.5
1.4
1.5
1.4
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 December 31,
(in millions)
2022
2021
Net income
$
16.8
$
15.7
Interest expense
6.2
2.4
Interest income
(0.7
)
(0.3
)
Income tax expense
7.8
5.6
Depreciation and amortization
8.0
7.6
EBITDA
$
38.1
$
31.0
Total Revenues
Gross Profit
Income Before Tax
Tax Effect
Net Income
Diluted EPS
EBITDA
2023 Q1 Reported
$
264.3
$
152.5
$
24.5
$
7.8
$
16.8
$
0.25
$
38.1
Extinguishment of Debt Impact
3.5
(1.0
)
4.5
0.03
—
FX Impact
0.2
0.1
0.1
—
0.2
Constant currency impact
(2.7
)
(1.4
)
(0.2
)
(0.3
)
—
—
(0.4
)
2023 Q1 Adjusted
$
261.6
$
151.1
$
28.0
$
6.6
$
21.4
$
0.28
$
37.9
Total Revenues
Gross Profit
Income Before Tax
Tax Effect
Net Income
Diluted EPS
EBITDA
2022 Q1 Reported
$
221.0
$
132.1
$
21.3
$
5.6
$
15.7
$
0.21
$
31.0
FX Impact
0.1
(0.1
)
0.3
0.01
0.1
2022 Q1 Adjusted
$
221.0
$
132.1
$
21.4
$
5.5
$
16.0
$
0.22
$
31.1
Three Months Ended December 31, 2022
(in millions)
U.S. Dollar Amount
Percentage Change YOY
Consolidated revenue
$
264.3
20
%
Currency exchange rate fluctuations
(2.7
)
Constant currency consolidated revenue
$
261.6
18
%
Consolidated gross profit
$
152.5
15
%
Currency exchange rate fluctuations
(1.4
)
Constant currency consolidated gross profit
$
151.1
14
%
Consolidated net inventory
$
156.1
31
%
Currency exchange rate fluctuations
(1.4
)
Constant currency consolidated net inventory
$
154.7
30
%
Latin America Pawn gross profit
$
37.1
23
%
Currency exchange rate fluctuations
(1.4
)
Constant currency Latin America Pawn gross profit
$
35.7
18
%
Latin America Pawn PLO
$
43.0
21
%
Currency exchange rate fluctuations
(1.4
)
Constant currency Latin America Pawn PLO
$
41.6
17
%
Latin America Pawn PSC revenues
$
23.3
20
%
Currency exchange rate fluctuations
(0.8
)
Constant currency Latin America Pawn PSC revenues
$
22.5
15
%
Latin America Pawn merchandise sales
$
45.5
28
%
Currency exchange rate fluctuations
(1.9
)
Constant currency Latin America Pawn merchandise sales
$
43.6
22
%
Latin America Pawn segment profit before tax
$
7.5
16
%
Currency exchange rate fluctuations
(0.2
)
Constant currency Latin America Pawn segment profit before tax
$
7.3
12
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20230201005841/en/
Email: Investor_Relations@ezcorp.com Phone: (512) 314-2220
1 Year EZCORP Chart |
1 Month EZCORP Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions