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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 | |
---|---|---|---|---|---|---|---|---|---|---|
-0.52 | -4.71% | 10.51 | 10.21 | 10.86 | 10.69 | 9.80 | 10.69 | 1,342,406 | 00:58:48 |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 74-2540145 | ||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
2500 Bee Cave Road | Bldg One | Suite 200 | Rollingwood | TX | 78746 | ||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class A Non-voting Common Stock, par value $.01 per share | EZPW | NASDAQ Stock Market | ||||||||||||
(NASDAQ Global Select Market) |
Large Accelerated Filer | ☐ | Accelerated Filer |
☒
|
||||||||
Non-accelerated Filer | ☐ | Smaller Reporting Company |
☒
|
||||||||
Emerging Growth Company | ☐ |
(in thousands, except share and per share amounts) |
March 31,
2021
|
March 31,
2020
|
September 30,
2020
|
||||||||||||||
(Unaudited) | |||||||||||||||||
Assets: | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 335,638 | $ | 193,729 | $ | 304,542 | |||||||||||
Restricted cash | 8,006 | 4,000 | 8,011 | ||||||||||||||
Pawn loans | 125,268 | 160,179 | 131,323 | ||||||||||||||
Pawn service charges receivable, net | 20,842 | 27,304 | 20,580 | ||||||||||||||
Inventory, net | 86,214 | 173,251 | 95,891 | ||||||||||||||
Notes receivable, net | — | 3,728 | — | ||||||||||||||
Prepaid expenses and other current assets | 30,676 | 23,629 | 32,903 | ||||||||||||||
Total current assets | 606,644 | 585,820 | 593,250 | ||||||||||||||
Investments in unconsolidated affiliates | 34,961 | 27,993 | 32,458 | ||||||||||||||
Property and equipment, net | 51,836 | 58,787 | 56,986 | ||||||||||||||
Lease right-of-use asset | 170,479 | 206,839 | 183,809 | ||||||||||||||
Goodwill | 258,199 | 257,222 | 257,582 | ||||||||||||||
Intangible assets, net | 58,125 | 64,043 | 58,638 | ||||||||||||||
Notes receivable, net | 1,164 | 1,132 | 1,148 | ||||||||||||||
Deferred tax asset, net | 9,693 | 6,251 | 8,931 | ||||||||||||||
Other assets | 5,152 | 5,045 | 4,221 | ||||||||||||||
Total assets | $ | 1,196,253 | $ | 1,213,132 | $ | 1,197,023 | |||||||||||
Liabilities and equity: | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Current maturities of long-term debt, net | $ | — | $ | 267 | $ | 213 | |||||||||||
Accounts payable, accrued expenses and other current liabilities | 69,019 | 53,152 | 71,504 | ||||||||||||||
Customer layaway deposits | 11,401 | 13,060 | 11,008 | ||||||||||||||
Lease liability | 41,060 | 44,076 | 49,742 | ||||||||||||||
Total current liabilities | 121,480 | 110,555 | 132,467 | ||||||||||||||
Long-term debt, net | 257,143 | 244,288 | 251,016 | ||||||||||||||
Deferred tax liability, net | 167 | 2,540 | 524 | ||||||||||||||
Lease liability | 138,622 | 171,006 | 153,040 | ||||||||||||||
Other long-term liabilities | 9,597 | 7,190 | 10,849 | ||||||||||||||
Total liabilities | 527,009 | 535,579 | 547,896 | ||||||||||||||
Commitments and Contingencies (Note 11)
|
|||||||||||||||||
Stockholders’ equity: | |||||||||||||||||
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,873,568 as of March 31, 2021; 52,097,590 as of March 31, 2020; and 52,332,848 as of September 30, 2020
|
528 | 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 | 399,439 | 406,171 | 398,475 | ||||||||||||||
Retained earnings | 327,798 | 347,004 | 318,169 | ||||||||||||||
Accumulated other comprehensive loss | (58,551) | (76,173) | (68,068) | ||||||||||||||
Total equity | 669,244 | 677,553 | 649,127 | ||||||||||||||
Total liabilities and equity | $ | 1,196,253 | $ | 1,213,132 | $ | 1,197,023 |
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||||||||||
(in thousands, except per share amount) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Merchandise sales | $ | 115,225 | $ | 129,830 | $ | 223,008 | $ | 256,558 | |||||||||||||||
Jewelry scrapping sales | 6,075 | 11,878 | 12,834 | 21,406 | |||||||||||||||||||
Pawn service charges | 63,436 | 80,222 | 126,925 | 164,947 | |||||||||||||||||||
Other revenues | 203 | 1,350 | 307 | 2,803 | |||||||||||||||||||
Total revenues | 184,939 | 223,280 | 363,074 | 445,714 | |||||||||||||||||||
Merchandise cost of goods sold | 65,790 | 85,776 | 130,333 | 169,852 | |||||||||||||||||||
Jewelry scrapping cost of goods sold | 5,401 | 9,617 | 10,603 | 17,371 | |||||||||||||||||||
Other cost of revenues | — | 525 | — | 1,061 | |||||||||||||||||||
Net revenues | 113,748 | 127,362 | 222,138 | 257,430 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Store expenses | 81,149 | 87,648 | 160,458 | 176,923 | |||||||||||||||||||
General and administrative | 13,771 | 15,341 | 26,281 | 34,179 | |||||||||||||||||||
Impairment of goodwill, intangible and other assets | — | 47,060 | — | 47,060 | |||||||||||||||||||
Depreciation and amortization | 8,089 | 7,762 | 15,661 | 15,495 | |||||||||||||||||||
Loss on sale or disposal of assets and other | 112 | 261 | 90 | 1,005 | |||||||||||||||||||
Total operating expenses | 103,121 | 158,072 | 202,490 | 274,662 | |||||||||||||||||||
Operating income (loss) | 10,627 | (30,710) | 19,648 | (17,232) | |||||||||||||||||||
Interest expense | 5,518 | 5,881 | 10,973 | 11,210 | |||||||||||||||||||
Interest income | (585) | (941) | (1,406) | (1,784) | |||||||||||||||||||
Equity in net (income) loss of unconsolidated affiliates | (1,250) | (1,184) | (1,766) | 4,713 | |||||||||||||||||||
Other expense (income) | 145 | (341) | (454) | (243) | |||||||||||||||||||
Income (loss) before income taxes | 6,799 | (34,125) | 12,301 | (31,128) | |||||||||||||||||||
Income tax expense | 1,469 | 6,749 | 2,672 | 8,508 | |||||||||||||||||||
Net income (loss) | $ | 5,330 | $ | (40,874) | $ | 9,629 | $ | (39,636) | |||||||||||||||
Basic earnings (loss) per share | $ | 0.10 | $ | (0.74) | $ | 0.17 | $ | (0.71) | |||||||||||||||
Diluted earnings (loss) per share | $ | 0.10 | $ | (0.74) | $ | 0.17 | $ | (0.71) | |||||||||||||||
Weighted-average basic shares outstanding | 55,661 | 55,448 | 55,509 | 55,557 | |||||||||||||||||||
Weighted-average diluted shares outstanding | 55,665 | 55,522 | 55,511 | 55,608 |
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net income (loss) | $ | 5,330 | $ | (40,874) | $ | 9,629 | $ | (39,636) | |||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | (1,760) | (29,846) | 9,517 | (23,775) | |||||||||||||||||||
Comprehensive income (loss) | $ | 3,570 | $ | (70,720) | $ | 19,146 | $ | (63,411) |
Common Stock |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated
Other Comprehensive (Loss) Income |
Total Equity | |||||||||||||||||||||||||||||||||||||
(in thousands) | Shares | Par Value | |||||||||||||||||||||||||||||||||||||||
Balances as of September 30, 2020 | 55,303 | $ | 551 | $ | 398,475 | $ | 318,169 | $ | (68,068) | $ | 649,127 | ||||||||||||||||||||||||||||||
Stock compensation | — | — | 524 | — | — | 524 | |||||||||||||||||||||||||||||||||||
Release of restricted stock | 296 | 5 | — | — | — | 5 | |||||||||||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | — | — | (730) | — | — | (730) | |||||||||||||||||||||||||||||||||||
Foreign currency translation gain | — | — | — | — | 11,277 | 11,277 | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | 4,299 | — | 4,299 | |||||||||||||||||||||||||||||||||||
Balances as of December 31, 2020 | 55,599 | $ | 556 | $ | 398,269 | $ | 322,468 | $ | (56,791) | $ | 664,502 | ||||||||||||||||||||||||||||||
Stock compensation | — | — | 1,094 | — | — | 1,094 | |||||||||||||||||||||||||||||||||||
Transfer of consideration for prior period acquisition | 33 | — | 185 | — | — | 185 | |||||||||||||||||||||||||||||||||||
Release of restricted stock | 212 | 2 | — | — | — | 2 | |||||||||||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | — | — | (109) | — | — | (109) | |||||||||||||||||||||||||||||||||||
Foreign currency translation loss | — | — | — | — | (1,760) | (1,760) | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | 5,330 | — | 5,330 | |||||||||||||||||||||||||||||||||||
Balances as of March 31, 2021 | 55,844 | $ | 558 | $ | 399,439 | $ | 327,798 | $ | (58,551) | $ | 669,244 | ||||||||||||||||||||||||||||||
Common Stock |
Additional
Paid-in Capital |
Retained
Earnings |
Accumulated
Other Comprehensive (Loss) Income |
Total Equity | |||||||||||||||||||||||||||||||||||||
(in thousands) | Shares | Par Value | |||||||||||||||||||||||||||||||||||||||
Balances as of September 30, 2019 | 55,535 | $ | 556 | $ | 407,628 | $ | 389,163 | $ | (52,398) | $ | 744,949 | ||||||||||||||||||||||||||||||
Stock compensation | — | — | 1,695 | — | — | 1,695 | |||||||||||||||||||||||||||||||||||
Release of restricted stock | 463 | 5 | — | — | — | 5 | |||||||||||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | — | — | (1,395) | — | — | (1,395) | |||||||||||||||||||||||||||||||||||
Foreign currency translation gain | — | — | — | — | 6,071 | 6,071 | |||||||||||||||||||||||||||||||||||
Purchase and retirement of treasury stock | (142) | (2) | (488) | (473) | — | (963) | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | 1,238 | — | 1,238 | |||||||||||||||||||||||||||||||||||
Balances as of December 31, 2019 | 55,856 | $ | 559 | $ | 407,440 | $ | 389,928 | $ | (46,327) | $ | 751,600 | ||||||||||||||||||||||||||||||
Stock compensation | — | — | 930 | — | — | 930 | |||||||||||||||||||||||||||||||||||
Release of restricted stock | 13 | 1 | — | — | — | 1 | |||||||||||||||||||||||||||||||||||
Taxes paid related to net share settlement of equity awards | — | — | (63) | — | — | (63) | |||||||||||||||||||||||||||||||||||
Foreign currency translation loss | — | — | — | — | (29,846) | (29,846) | |||||||||||||||||||||||||||||||||||
Purchase and retirement of treasury stock | (801) | (9) | (2,136) | (2,050) | — | (4,195) | |||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (40,874) | — | (40,874) | |||||||||||||||||||||||||||||||||||
Balances as of March 31, 2020 | 55,068 | $ | 551 | $ | 406,171 | $ | 347,004 | $ | (76,173) | $ | 677,553 | ||||||||||||||||||||||||||||||
Six Months Ended
March 31,
|
|||||||||||
(in thousands) | 2021 | 2020 | |||||||||
Operating activities: | |||||||||||
Net income (loss) | $ | 9,629 | $ | (39,636) | |||||||
Adjustments to reconcile net income (loss) to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 15,661 | 15,495 | |||||||||
Amortization of debt discount and deferred financing costs | 6,754 | 6,493 | |||||||||
Amortization of lease right-of-use asset | 23,835 | 22,752 | |||||||||
Accretion of notes receivable discount and deferred compensation fee | — | (546) | |||||||||
Deferred income taxes | (1,119) | (3,698) | |||||||||
Impairment of goodwill and intangible assets | — | 47,060 | |||||||||
Other adjustments | (250) | 1,810 | |||||||||
Provision for inventory reserve | (5,265) | (742) | |||||||||
Stock compensation expense | 1,618 | 2,722 | |||||||||
Equity in net (income) loss of unconsolidated affiliates | (1,766) | 4,713 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Service charges and fees receivable | (106) | 4,027 | |||||||||
Inventory | 6,481 | (539) | |||||||||
Prepaid expenses, other current assets and other assets | 3,874 | (2,791) | |||||||||
Accounts payable, accrued expenses and other liabilities | (43,436) | (37,799) | |||||||||
Customer layaway deposits | 238 | 538 | |||||||||
Income taxes | 2,573 | 1,412 | |||||||||
Net cash provided by operating activities | 18,721 | 21,271 | |||||||||
Investing activities: | |||||||||||
Loans made | (269,468) | (351,050) | |||||||||
Loans repaid | 177,888 | 229,054 | |||||||||
Recovery of pawn loan principal through sale of forfeited collateral | 109,019 | 158,792 | |||||||||
Capital expenditures, net | (8,359) | (12,160) | |||||||||
Principal collections on notes receivable | — | 4,000 | |||||||||
Net cash provided by investing activities | 9,080 | 28,636 | |||||||||
Financing activities: | |||||||||||
Taxes paid related to net share settlement of equity awards | (839) | (1,458) | |||||||||
Payout of deferred consideration | — | (175) | |||||||||
Proceeds from borrowings, net of issuance costs | — | (109) | |||||||||
Payments on borrowings | (871) | (355) | |||||||||
Repurchase of common stock | — | (5,159) | |||||||||
Net cash used in financing activities | (1,710) | (7,256) | |||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 5,000 | (7,364) | |||||||||
Net increase in cash, cash equivalents and restricted cash | 31,091 | 35,287 | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 312,553 | 162,442 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 343,644 | $ | 197,729 | |||||||
Supplemental disclosure of cash flow information | |||||||||||
Cash and cash equivalents | $ | 335,638 | $ | 193,729 | |||||||
Restricted cash | 8,006 | 4,000 | |||||||||
Total cash and cash equivalents and restricted cash | $ | 343,644 | $ | 197,729 | |||||||
Non-cash investing and financing activities: | |||||||||||
Pawn loans forfeited and transferred to inventory | $ | 99,285 | $ | 156,468 |
(in thousands) | Accrued Charges at September 30, 2020 | Charges | Payments and Adjustments | Accrued Charges at December 31, 2020 | Charges | Payments and Adjustments | Accrued Charges at March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Cash charges: | |||||||||||||||||||||||||||||||||||||||||||||||
Labor reduction costs | $ | 5,946 | $ | — | $ | (2,343) | $ | 3,603 | $ | — | $ | (1,075) | $ | 2,528 | |||||||||||||||||||||||||||||||||
CASHMAX shutdown costs | 800 | — | $ | (400) | $ | 400 | — | $ | (400) | $ | — | ||||||||||||||||||||||||||||||||||||
Store closure costs | 1,806 | — | $ | (1,706) | $ | 100 | — | $ | (100) | $ | — | ||||||||||||||||||||||||||||||||||||
Other | 2,166 | — | $ | (166) | $ | 2,000 | — | $ | — | $ | 2,000 | ||||||||||||||||||||||||||||||||||||
10,718 | $ | — | $ | (4,615) | $ | 6,103 | $ | — | $ | (1,575) | $ | 4,528 | |||||||||||||||||||||||||||||||||||
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||||||||||
(in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net income (loss) | $ | 5,330 | $ | (40,874) | $ | 9,629 | $ | (39,636) | |||||||||||||||
Earnings per common share | |||||||||||||||||||||||
Average common share outstanding (denominator) | 55,661 | 55,448 | 55,509 | 55,557 | |||||||||||||||||||
Earnings per common share | $ | 0.10 | $ | (0.74) | $ | 0.17 | $ | (0.71) | |||||||||||||||
Diluted earnings per common share | |||||||||||||||||||||||
Average common share outstanding | 55,661 | 55,448 | 55,509 | 55,557 | |||||||||||||||||||
Dilutive effect of restricted stock and convertible notes* | 4 | 74 | 2 | 51 | |||||||||||||||||||
Diluted average common shares outstanding (denominator) | 55,665 | 55,522 | 55,511 | 55,608 | |||||||||||||||||||
Diluted earnings per common share | $ | 0.10 | $ | (0.74) | $ | 0.17 | $ | (0.71) | |||||||||||||||
Potential common shares excluded from the calculation of diluted earnings per share above*: | |||||||||||||||||||||||
Restricted stock** | 964 | 2,777 | $ | 831 | $ | 2,495 |
(in thousands) | March 31, 2021 | March 31, 2020 |
September 30,
2020
|
||||||||||||||||||||
Right-of-use asset | $ | 170,479 | $ | 206,839 | $ | 183,809 | |||||||||||||||||
Lease liability, current | $ | 41,060 | $ | 44,076 | $ | 49,742 | |||||||||||||||||
Lease liability, non-current | 138,622 | 171,006 | 153,040 | ||||||||||||||||||||
Total lease liability | $ | 179,682 | $ | 215,082 | $ | 202,782 |
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Operating lease expense | $ | 14,616 | $ | 15,453 | $ | 29,815 | $ | 31,978 | |||||||||||||||
Variable lease expense | 2,923 | 3,093 | 5,968 | 5,900 | |||||||||||||||||||
Other (1)
|
(859) | — | (1,725) | — | |||||||||||||||||||
Total lease expense | $ | 16,680 | $ | 18,546 | $ | 34,058 | $ | 37,878 | |||||||||||||||
(1) Includes sublease rental income.
|
Six Months Ended
March 31,
|
|||||||||||
2021 | 2020 | ||||||||||
Weighted-average remaining contractual lease term (years)
|
5.07 | 5.72 | |||||||||
Weighted-average incremental borrowing rate | 7.88 | % | 8.25 | % | |||||||
Remaining 2021
|
$ | 26,419 | |||
Fiscal 2022
|
53,629 | ||||
Fiscal 2023
|
41,651 | ||||
Fiscal 2024
|
30,463 | ||||
Fiscal 2025
|
21,522 | ||||
Thereafter | 45,866 | ||||
Total lease payments | $ | 219,550 | |||
Less: Portion representing interest | 39,868 | ||||
Present value of operating lease liabilities | $ | 179,682 | |||
Less: Current portion | 41,060 | ||||
Non-current portion | $ | 138,622 |
December 31, | |||||||||||
(in thousands) | 2020 | 2019 | |||||||||
Current assets | $ | 170,412 | $ | 164,906 | |||||||
Non-current assets | 189,810 | 199,277 | |||||||||
Total assets | $ | 360,222 | $ | 364,183 | |||||||
Current liabilities | $ | 59,962 | $ | 93,958 | |||||||
Non-current liabilities | 58,368 | 60,503 | |||||||||
Shareholders’ equity | 241,892 | 209,722 | |||||||||
Total liabilities and shareholders’ equity | $ | 360,222 | $ | 364,183 |
Half-Year Ended December 31,
|
|||||||||||
(in thousands) | 2020 | 2019 | |||||||||
Gross revenues | $ | 71,153 | $ | 98,531 | |||||||
Gross profit | 51,231 | 59,250 | |||||||||
Net profit (loss) | 5,561 | (13,280) |
Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||||||
March 31, 2021 | March 31, 2021 | Fair Value Measurement Using | ||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
2.89% promissory note receivable due April 2024
|
$ | 1,164 | $ | 1,164 | $ | — | $ | — | $ | 1,164 | ||||||||||||||||||||||
Investments in unconsolidated affiliates | 34,961 | 45,491 | 37,894 | — | 7,597 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
2024 Convertible Notes | $ | 120,307 | $ | 132,609 | $ | — | $ | 132,609 | $ | — | ||||||||||||||||||||||
2025 Convertible Notes | 136,836 | 143,175 | — | 143,175 | — | |||||||||||||||||||||||||||
Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||||||
March 31, 2020 | March 31, 2020 | Fair Value Measurement Using | ||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
Notes receivable from Grupo Finmart, net | $ | 3,728 | $ | 3,853 | $ | — | $ | — | $ | 3,853 | ||||||||||||||||||||||
2.89% promissory note receivable due April 2024
|
1,132 | 1,132 | — | — | 1,132 | |||||||||||||||||||||||||||
Investments in unconsolidated affiliates | 27,993 | 27,513 | 19,734 | — | 7,779 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
2024 Convertible Notes | $ | 114,196 | $ | 106,203 | $ | — | $ | 106,203 | $ | — | ||||||||||||||||||||||
2025 Convertible Notes | 129,624 | 128,081 | — | 128,081 | — | |||||||||||||||||||||||||||
8.5% unsecured debt due 2024
|
983 | 983 | — | — | 983 | |||||||||||||||||||||||||||
CASHMAX secured borrowing facility | (248) | 281 | — | — | 281 |
Carrying Value | Estimated Fair Value | |||||||||||||||||||||||||||||||
September 30,
2020
|
September 30, 2020
|
Fair Value Measurement Using | ||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||||||||
2.89% promissory note receivable due April 2024
|
$ | 1,148 | $ | 1,148 | $ | — | $ | — | $ | 1,148 | ||||||||||||||||||||||
Investments in unconsolidated affiliates | 32,458 | 32,597 | 24,833 | — | 7,764 | |||||||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||||||||
2024 Convertible Notes | $ | 117,193 | $ | 129,979 | $ | — | $ | 129,979 | $ | — | ||||||||||||||||||||||
2025 Convertible Notes | 133,164 | 137,569 | — | 137,569 | — | |||||||||||||||||||||||||||
8.5% unsecured debt due 2024
|
872 | 872 | — | — | 872 |
March 31, 2021 | March 31, 2020 |
September 30, 2020
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Gross Amount | Debt Discount and Issuance Costs | Carrying Amount | Gross Amount | Debt Discount and Issuance Costs | Carrying Amount | Gross Amount | Debt Discount and Issuance Costs | Carrying Amount | ||||||||||||||||||||||||||||||||||||||||||||
2024 Convertible Notes | $ | 143,750 | $ | (23,443) | $ | 120,307 | $ | 143,750 | $ | (29,554) | $ | 114,196 | $ | 143,750 | $ | (26,557) | $ | 117,193 | |||||||||||||||||||||||||||||||||||
2025 Convertible Notes | 172,500 | (35,664) | 136,836 | 172,500 | (42,876) | 129,624 | 172,500 | (39,336) | 133,164 | ||||||||||||||||||||||||||||||||||||||||||||
8.5% unsecured debt due 2024*
|
— | — | — | 983 | — | 983 | 872 | — | 872 | ||||||||||||||||||||||||||||||||||||||||||||
CASHMAX secured borrowing facility* | — | — | — | 281 | (529) | (248) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 316,250 | $ | (59,107) | $ | 257,143 | $ | 317,514 | $ | (72,959) | $ | 244,555 | $ | 317,122 | $ | (65,893) | $ | 251,229 | |||||||||||||||||||||||||||||||||||
Less current portion | — | — | — | 267 | — | 267 | 213 | — | 213 | ||||||||||||||||||||||||||||||||||||||||||||
Total long-term debt | $ | 316,250 | $ | (59,107) | $ | 257,143 | $ | 317,247 | $ | (72,959) | $ | 244,288 | $ | 316,909 | $ | (65,893) | $ | 251,016 |
Schedule of Contractual Maturities | |||||||||||||||||||||||||||||
(in thousands) | Total | Less Than 1 Year | 1 - 3 Years | 3 - 5 Years | More Than 5 Years | ||||||||||||||||||||||||
2024 Convertible Notes* | $ | 143,750 | $ | — | $ | — | $ | 143,750 | $ | — | |||||||||||||||||||
2025 Convertible Notes* | 172,500 | — | — | 172,500 | — | ||||||||||||||||||||||||
$ | 316,250 | $ | — | $ | — | $ | 316,250 | $ | — |
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
2024 Convertible Notes: | |||||||||||||||||||||||
Contractual interest expense | $ | 1,033 | $ | 1,033 | $ | 2,066 | $ | 2,066 | |||||||||||||||
Amortization of debt discount and deferred financing costs | 1,572 | 1,457 | 3,114 | 2,886 | |||||||||||||||||||
Total interest expense | $ | 2,605 | $ | 2,490 | $ | 5,180 | $ | 4,952 | |||||||||||||||
2025 Convertible Notes: | |||||||||||||||||||||||
Contractual interest expense | $ | 1,024 | $ | 1,024 | $ | 2,048 | $ | 2,048 | |||||||||||||||
Amortization of debt discount and deferred financing costs | 1,853 | 1,722 | 3,672 | 3,413 | |||||||||||||||||||
Total interest expense | $ | 2,877 | $ | 2,746 | $ | 5,720 | $ | 5,461 |
Three Months Ended March 31, 2021
|
|||||||||||||||||||||||||||||||||||
(in thousands) | U.S. Pawn | Latin America Pawn | Other International | Total Segments | Corporate Items | Consolidated | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Merchandise sales | $ | 93,827 | $ | 21,398 | $ | — | $ | 115,225 | $ | — | $ | 115,225 | |||||||||||||||||||||||
Jewelry scrapping sales | 3,581 | 2,494 | — | 6,075 | — | 6,075 | |||||||||||||||||||||||||||||
Pawn service charges | 49,577 | 13,859 | — | 63,436 | — | 63,436 | |||||||||||||||||||||||||||||
Other revenues | 29 | — | 174 | 203 | — | 203 | |||||||||||||||||||||||||||||
Total revenues | 147,014 | 37,751 | 174 | 184,939 | — | 184,939 | |||||||||||||||||||||||||||||
Merchandise cost of goods sold | 51,812 | 13,978 | — | 65,790 | — | 65,790 | |||||||||||||||||||||||||||||
Jewelry scrapping cost of goods sold | 3,149 | 2,252 | — | 5,401 | — | 5,401 | |||||||||||||||||||||||||||||
Other cost of revenues | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Net revenues | 92,053 | 21,521 | 174 | 113,748 | — | 113,748 | |||||||||||||||||||||||||||||
Segment and corporate expenses (income): | |||||||||||||||||||||||||||||||||||
Store expenses | 63,657 | 17,492 | — | 81,149 | — | 81,149 | |||||||||||||||||||||||||||||
General and administrative | — | — | — | — | 13,771 | 13,771 | |||||||||||||||||||||||||||||
Depreciation and amortization | 2,636 | 1,793 | — | 4,429 | 3,660 | 8,089 | |||||||||||||||||||||||||||||
Loss on sale or disposal of assets and other | — | 101 | — | 101 | 11 | 112 | |||||||||||||||||||||||||||||
Interest expense | — | — | — | — | 5,518 | 5,518 | |||||||||||||||||||||||||||||
Interest income | — | (571) | — | (571) | (14) | (585) | |||||||||||||||||||||||||||||
Equity in net income of unconsolidated affiliates | — | — | (1,250) | (1,250) | — | (1,250) | |||||||||||||||||||||||||||||
Other expense | — | 85 | 9 | 94 | 51 | 145 | |||||||||||||||||||||||||||||
Segment contribution | $ | 25,760 | $ | 2,621 | $ | 1,415 | $ | 29,796 | |||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 29,796 | $ | (22,997) | $ | 6,799 |
Three Months Ended March 31, 2020
|
|||||||||||||||||||||||||||||||||||
(in thousands) | U.S. Pawn | Latin America Pawn | Other International | Total Segments | Corporate Items | Consolidated | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Merchandise sales | $ | 102,447 | $ | 27,383 | $ | 129,830 | $ | — | $ | 129,830 | |||||||||||||||||||||||||
Jewelry scrapping sales | 9,659 | 2,219 | 11,878 | — | 11,878 | ||||||||||||||||||||||||||||||
Pawn service charges | 61,700 | 18,522 | 80,222 | — | 80,222 | ||||||||||||||||||||||||||||||
Other revenues | 31 | 25 | 1,294 | 1,350 | 1,350 | ||||||||||||||||||||||||||||||
Total revenues | 173,837 | 48,149 | 1,294 | 223,280 | — | 223,280 | |||||||||||||||||||||||||||||
Merchandise cost of goods sold | 65,286 | 20,490 | — | 85,776 | — | 85,776 | |||||||||||||||||||||||||||||
Jewelry scrapping cost of goods sold | 7,800 | 1,817 | — | 9,617 | — | 9,617 | |||||||||||||||||||||||||||||
Other cost of revenues | — | 37 | 488 | 525 | — | 525 | |||||||||||||||||||||||||||||
Net revenues | 100,751 | 25,805 | 806 | 127,362 | — | 127,362 | |||||||||||||||||||||||||||||
Segment and corporate expenses (income): | |||||||||||||||||||||||||||||||||||
Store expenses | 67,619 | 18,469 | 1,560 | 87,648 | — | 87,648 | |||||||||||||||||||||||||||||
General and administrative | — | — | — | — | 15,341 | 15,341 | |||||||||||||||||||||||||||||
Impairment of goodwill, intangible and other assets | 10,000 | 35,936 | 1,124 | 47,060 | — | 47,060 | |||||||||||||||||||||||||||||
Depreciation and amortization | 2,711 | 1,940 | 23 | 4,674 | 3,088 | 7,762 | |||||||||||||||||||||||||||||
(Gain) loss on sale or disposal of assets and other | — | (123) | — | (123) | 384 | 261 | |||||||||||||||||||||||||||||
Interest expense | — | 402 | 154 | 556 | 5,325 | 5,881 | |||||||||||||||||||||||||||||
Interest income | — | (369) | — | (369) | (572) | (941) | |||||||||||||||||||||||||||||
Equity in net income of unconsolidated affiliates | — | — | (1,184) | (1,184) | — | (1,184) | |||||||||||||||||||||||||||||
Other (income) expense | — | (309) | 20 | (289) | (52) | (341) | |||||||||||||||||||||||||||||
Segment contribution (loss) | $ | 20,421 | $ | (30,141) | $ | (891) | $ | (10,611) | |||||||||||||||||||||||||||
Loss before income taxes | $ | (10,611) | $ | (23,514) | $ | (34,125) |
Six Months Ended March 31, 2021
|
|||||||||||||||||||||||||||||||||||
(in thousands) | U.S. Pawn | Latin America Pawn | Other International | Total Segments | Corporate Items | Consolidated | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Merchandise sales | $ | 176,080 | $ | 46,928 | $ | — | $ | 223,008 | $ | — | $ | 223,008 | |||||||||||||||||||||||
Jewelry scrapping sales | 7,585 | 5,249 | — | 12,834 | — | 12,834 | |||||||||||||||||||||||||||||
Pawn service charges | 99,797 | 27,128 | — | 126,925 | — | 126,925 | |||||||||||||||||||||||||||||
Other revenues | 51 | 7 | 249 | 307 | — | 307 | |||||||||||||||||||||||||||||
Total revenues | 283,513 | 79,312 | 249 | 363,074 | — | 363,074 | |||||||||||||||||||||||||||||
Merchandise cost of goods sold | 99,871 | 30,462 | — | 130,333 | — | 130,333 | |||||||||||||||||||||||||||||
Jewelry scrapping cost of goods sold | 5,993 | 4,610 | — | 10,603 | — | 10,603 | |||||||||||||||||||||||||||||
Other cost of revenues | — | — | — | — | — | ||||||||||||||||||||||||||||||
Net revenues | 177,649 | 44,240 | 249 | 222,138 | — | 222,138 | |||||||||||||||||||||||||||||
Segment and corporate expenses (income): | |||||||||||||||||||||||||||||||||||
Store expenses | 125,749 | 34,709 | — | 160,458 | — | 160,458 | |||||||||||||||||||||||||||||
General and administrative | — | — | — | — | 26,281 | 26,281 | |||||||||||||||||||||||||||||
Depreciation and amortization | 5,372 | 3,653 | — | 9,025 | 6,636 | 15,661 | |||||||||||||||||||||||||||||
Loss on sale or disposal of assets and other | 27 | — | — | 27 | 63 | 90 | |||||||||||||||||||||||||||||
Interest expense | — | — | — | — | 10,973 | 10,973 | |||||||||||||||||||||||||||||
Interest income | — | (1,335) | — | (1,335) | (71) | (1,406) | |||||||||||||||||||||||||||||
Equity in net income of unconsolidated affiliates | — | — | (1,766) | (1,766) | — | (1,766) | |||||||||||||||||||||||||||||
Other (income) expense | — | (370) | (201) | (571) | 117 | (454) | |||||||||||||||||||||||||||||
Segment contribution | $ | 46,501 | $ | 7,583 | $ | 2,216 | $ | 56,300 | |||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 56,300 | $ | (43,999) | $ | 12,301 |
Six Months Ended March 31, 2020
|
|||||||||||||||||||||||||||||||||||
(in thousands) | U.S. Pawn | Latin America Pawn | Other International | Total Segments | Corporate Items | Consolidated | |||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Merchandise sales | $ | 197,801 | $ | 58,757 | $ | — | $ | 256,558 | $ | — | $ | 256,558 | |||||||||||||||||||||||
Jewelry scrapping sales | 15,776 | 5,630 | — | 21,406 | — | 21,406 | |||||||||||||||||||||||||||||
Pawn service charges | 125,790 | 39,157 | — | 164,947 | — | 164,947 | |||||||||||||||||||||||||||||
Other revenues | 67 | 50 | 2,686 | 2,803 | — | 2,803 | |||||||||||||||||||||||||||||
Total revenues | 339,434 | 103,594 | 2,686 | 445,714 | — | 445,714 | |||||||||||||||||||||||||||||
Merchandise cost of goods sold | 126,650 | 43,202 | — | 169,852 | — | 169,852 | |||||||||||||||||||||||||||||
Jewelry scrapping cost of goods sold | 12,555 | 4,816 | — | 17,371 | — | 17,371 | |||||||||||||||||||||||||||||
Other cost of revenues | — | 37 | 1,024 | 1,061 | — | 1,061 | |||||||||||||||||||||||||||||
Net revenues | 200,229 | 55,539 | 1,662 | 257,430 | — | 257,430 | |||||||||||||||||||||||||||||
Segment and corporate expenses (income): | |||||||||||||||||||||||||||||||||||
Store expenses | 135,678 | 38,452 | 2,793 | 176,923 | — | 176,923 | |||||||||||||||||||||||||||||
General and administrative | — | — | — | — | 34,179 | 34,179 | |||||||||||||||||||||||||||||
Impairment of goodwill, intangible and other assets | 10,000 | 35,936 | 1,124 | 47,060 | — | 47,060 | |||||||||||||||||||||||||||||
Depreciation and amortization | 5,576 | 3,829 | 57 | 9,462 | 6,033 | 15,495 | |||||||||||||||||||||||||||||
(Gain) loss on sale or disposal of assets and other | — | (95) | — | (95) | 1,100 | 1,005 | |||||||||||||||||||||||||||||
Interest expense | — | 430 | 324 | 754 | 10,456 | 11,210 | |||||||||||||||||||||||||||||
Interest income | — | (757) | — | (757) | (1,027) | (1,784) | |||||||||||||||||||||||||||||
Equity in net loss of unconsolidated affiliates | — | — | 4,713 | 4,713 | — | 4,713 | |||||||||||||||||||||||||||||
Other (income) expense | — | (242) | 19 | (223) | (20) | (243) | |||||||||||||||||||||||||||||
Segment contribution (loss) | $ | 48,975 | $ | (22,014) | $ | (7,368) | $ | 19,593 | |||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 19,593 | $ | (50,721) | $ | (31,128) |
(in thousands) | March 31, 2021 | March 31, 2020 |
September 30,
2020
|
||||||||||||||
Gross pawn service charges receivable | $ | 26,607 | $ | 34,843 | $ | 27,259 | |||||||||||
Allowance for uncollectible pawn service charges receivable | (5,765) | (7,539) | (6,679) | ||||||||||||||
Pawn service charges receivable, net | $ | 20,842 | $ | 27,304 | $ | 20,580 | |||||||||||
Gross inventory | $ | 93,470 | $ | 182,794 | $ | 108,205 | |||||||||||
Inventory reserves | (7,256) | (9,543) | (12,314) | ||||||||||||||
Inventory, net | $ | 86,214 | $ | 173,251 | $ | 95,891 | |||||||||||
Prepaid expenses and other | $ | 7,881 | $ | 8,953 | $ | 10,614 | |||||||||||
Accounts receivable and other | 8,442 | 10,934 | 6,991 | ||||||||||||||
Income taxes receivable | 14,353 | 3,742 | 15,298 | ||||||||||||||
Prepaid expenses and other current assets | $ | 30,676 | $ | 23,629 | $ | 32,903 | |||||||||||
Property and equipment, gross | $ | 273,513 | $ | 261,234 | $ | 267,509 | |||||||||||
Accumulated depreciation | (221,677) | (202,447) | (210,523) | ||||||||||||||
Property and equipment, net | $ | 51,836 | $ | 58,787 | $ | 56,986 | |||||||||||
Accounts payable | $ | 17,957 | $ | 15,582 | $ | 19,114 | |||||||||||
Accrued expenses and other | 51,062 | 37,570 | 52,390 | ||||||||||||||
Accounts payable, accrued expenses and other current liabilities | $ | 69,019 | $ | 53,152 | $ | 71,504 |
Strengthen the Core | Renewed focus on the unique and essential elements of our pawn business | |||||||
Cost Reduction and Simplification | Significant and sustained adjustment of cost base through ongoing simplification | |||||||
Innovate and Grow | Broaden customer engagement to service more customers more frequently in more locations |
March 31,
|
Three Months Ended
March 31,
|
Six Months Ended
March 31, |
|||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||
Mexican peso | 20.5 | 23.8 | 20.3 | 20.0 | 20.4 | 19.6 | |||||||||||||||||||||||||||||
Guatemalan quetzal | 7.6 | 7.6 | 7.6 | 7.5 | 7.6 | 7.5 | |||||||||||||||||||||||||||||
Honduran lempira | 23.7 | 24.4 | 23.8 | 24.3 | 23.9 | 24.3 | |||||||||||||||||||||||||||||
Peruvian sol | 3.7 | 3.4 | 3.6 | 3.4 | 3.6 | 3.3 |
Three Months Ended March 31, 2021
|
|||||||||||||||||||||||
U.S. Pawn | Latin America Pawn | Consolidated | |||||||||||||||||||||
As of December 31, 2020 | 505 | 502 | 1,007 | ||||||||||||||||||||
New locations opened | — | 4 | 4 | ||||||||||||||||||||
As of March 31, 2021
|
505 | 506 | 1,011 |
Three Months Ended March 31, 2020
|
|||||||||||||||||||||||
U.S. Pawn | Latin America Pawn | Other International | Consolidated | ||||||||||||||||||||
As of December 31, 2019 | 512 | 484 | 22 | 1,018 | |||||||||||||||||||
New locations opened | — | 9 | — | 9 | |||||||||||||||||||
As of March 31, 2020
|
512 | 493 | 22 | 1,027 |
Six Months Ended March 31, 2021
|
|||||||||||||||||||||||
U.S. Pawn | Latin America Pawn | Consolidated | |||||||||||||||||||||
As of September 30, 2020 | 505 | 500 | 1,005 | ||||||||||||||||||||
New locations opened | — | 6 | 6 | ||||||||||||||||||||
As of March 31, 2021
|
505 | 506 | 1,011 |
Six Months Ended March 31, 2020
|
|||||||||||||||||||||||
U.S. Pawn | Latin America Pawn | Other International | Consolidated | ||||||||||||||||||||
As of September 30, 2019 | 512 | 480 | 22 | 1,014 | |||||||||||||||||||
New locations opened | — | 13 | — | 13 | |||||||||||||||||||
As of March 31, 2020
|
512 | 493 | 22 | 1,027 |
Three Months Ended March 31,
|
Change | ||||||||||||||||
(in thousands) | 2021 | 2020 | |||||||||||||||
Net revenues: | |||||||||||||||||
Pawn service charges | $ | 49,577 | $ | 61,700 | (20)% | ||||||||||||
Merchandise sales | 93,827 | 102,447 | (8)% | ||||||||||||||
Merchandise sales gross profit | 42,015 | 37,161 | 13% | ||||||||||||||
Gross margin on merchandise sales | 45 | % | 36 | % | 900bps | ||||||||||||
Jewelry scrapping sales | 3,581 | 9,659 | (63)% | ||||||||||||||
Jewelry scrapping sales gross profit | 432 | 1,859 | (77)% | ||||||||||||||
Gross margin on jewelry scrapping sales | 12 | % | 19 | % | (700)bps | ||||||||||||
Other revenues | 29 | 31 | (6)% | ||||||||||||||
Net revenues | 92,053 | 100,751 | (9)% | ||||||||||||||
Segment operating expenses: | |||||||||||||||||
Store expenses | 63,657 | 67,619 | (6)% | ||||||||||||||
Impairment of goodwill, intangibles and other assets | — | 10,000 | * | ||||||||||||||
Depreciation and amortization | 2,636 | 2,711 | (3)% | ||||||||||||||
Segment contribution | $ | 25,760 | $ | 20,421 | 26% | ||||||||||||
Other data: | |||||||||||||||||
Net earning assets (a) | $ | 165,151 | $ | 263,112 | (37)% | ||||||||||||
Inventory turnover | 2.9 | 2.0 | 45% | ||||||||||||||
Average monthly ending pawn loan balance per store (b) | $ | 214 | $ | 271 | (21)% | ||||||||||||
Monthly average yield on pawn loans outstanding | 15 | % | 14 | % | 100bps | ||||||||||||
Pawn loan redemption rate | 87 | % | 86 | % | 100bps |
* | Represents a percentage computation that is not mathematically meaningful. | ||||
(a) | Balance includes pawn loans and inventory. | ||||
(b) | Balance is calculated based upon the average of the monthly ending balances during the applicable period. |
Three Months Ended March 31,
|
|||||||||||||||||||||||||||||
(in thousands) |
2021 (GAAP)
|
2020 (GAAP)
|
Change (GAAP) |
2021 (Constant Currency)
|
Change (Constant Currency) | ||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Pawn service charges | $ | 13,859 | $ | 18,522 | (25)% | $ | 14,096 | (24)% | |||||||||||||||||||||
Merchandise sales | 21,398 | 27,383 | (22)% | 21,804 | (20)% | ||||||||||||||||||||||||
Merchandise sales gross profit | 7,420 | 6,893 | 8% | 7,567 | 10% | ||||||||||||||||||||||||
Gross margin on merchandise sales | 35 | % | 25 | % | 1,000bps | 35 | % | 1,000bps | |||||||||||||||||||||
Jewelry scrapping sales | 2,494 | 2,219 | 12% | 2,472 | 11% | ||||||||||||||||||||||||
Jewelry scrapping sales gross profit | 242 | 402 | (40)% | 248 | (38)% | ||||||||||||||||||||||||
Gross margin on jewelry scrapping sales | 10 | % | 18 | % | (800)bps | 10 | % | (800)bps | |||||||||||||||||||||
Other revenues, net | — | (12) | (100)% | — | (100)% | ||||||||||||||||||||||||
Net revenues | 21,521 | 25,805 | (17)% | 21,911 | (15)% | ||||||||||||||||||||||||
Segment operating expenses: | |||||||||||||||||||||||||||||
Store Expenses | 17,492 | 18,469 | (5)% | 17,834 | (3)% | ||||||||||||||||||||||||
Impairment of goodwill, intangible and other assets | — | 35,936 | (100)% | — | (100)% | ||||||||||||||||||||||||
Depreciation and amortization | 1,793 | 1,940 | (8)% | 1,830 | (6)% | ||||||||||||||||||||||||
Segment operating contribution | 2,236 | (30,540) | 107% | 2,247 | 107% | ||||||||||||||||||||||||
Other segment income (a) | (385) | (399) | (4)% | (425) | 7% | ||||||||||||||||||||||||
Segment contribution | $ | 2,621 | $ | (30,141) | 109% | $ | 2,672 | 109% | |||||||||||||||||||||
Other data: | |||||||||||||||||||||||||||||
Net earning assets (b) | $ | 46,331 | $ | 70,318 | (34)% | $ | 41,845 | (40)% | |||||||||||||||||||||
Inventory turnover | 4.0 | 2.5 | 60% | 4.0 | 60% | ||||||||||||||||||||||||
Average monthly ending pawn loan balance per store (c) | $ | 56 | $ | 83 | (33)% | $ | 56 | (33)% | |||||||||||||||||||||
Monthly average yield on pawn loans outstanding | 17 | % | 15 | % | 200bps | 17 | % | 200bps | |||||||||||||||||||||
Pawn loan redemption rate (d) | 82 | % | 78 | % | 400bps | 82 | % | 400bps |
(a) |
Fiscal 2021 constant currency amount excludes a nominal net GAAP basis foreign currency transaction adjustment resulting from movement in exchange rates. The net foreign currency transaction adjustment for fiscal 2020 was nominal and are included in the above results.
|
||||
(b) | Balance includes pawn loans and inventory. | ||||
(c) | Balance is calculated based upon the average of the monthly ending balances during the applicable period. | ||||
(d) | Rate is solely inclusive of results from Mexico Pawn. |
Three Months Ended March 31,
|
Change | ||||||||||||||||
(in thousands) | 2021 | 2020 | |||||||||||||||
Net revenues: | |||||||||||||||||
Consumer loan fees, interest and other | $ | 174 | $ | 1,294 | (87)% | ||||||||||||
Consumer loan debt | — | 488 | * | ||||||||||||||
Net revenues | 174 | 806 | (78)% | ||||||||||||||
Segment operating expenses: | |||||||||||||||||
Store expenses | — | 1,560 | * | ||||||||||||||
Impairment of goodwill, intangibles and other assets | — | 1,124 | * | ||||||||||||||
Depreciation and amortization | — | 23 | * | ||||||||||||||
Equity in net income on unconsolidated affiliates | (1,250) | (1,184) | 6% | ||||||||||||||
Segment operating contribution | 1,424 | (717) | 299% | ||||||||||||||
Other segment expense | 9 | 174 | (95)% | ||||||||||||||
Segment contribution (loss) | $ | 1,415 | $ | (891) | 259% |
* | Represents a percentage computation that is not mathematically meaningful. |
Three Months Ended March 31,
|
Percentage Change | ||||||||||||||||
(in thousands) | 2021 | 2020 | |||||||||||||||
Segment contribution (loss) | $ | 29,796 | $ | (10,611) | 381% | ||||||||||||
Corporate expenses (income): | |||||||||||||||||
General and administrative | 13,771 | 15,341 | (10)% | ||||||||||||||
Depreciation and amortization | 3,660 | 3,088 | 19% | ||||||||||||||
Gain on sale or disposal of assets and other | 11 | 384 | (97)% | ||||||||||||||
Interest expense | 5,518 | 5,325 | 4% | ||||||||||||||
Interest income | (14) | (572) | (98)% | ||||||||||||||
Other expense | 51 | (52) | * | ||||||||||||||
Income before income taxes | 6,799 | (34,125) | 120% | ||||||||||||||
Income tax expense | 1,469 | 6,749 | (78)% | ||||||||||||||
Net income | $ | 5,330 | $ | (40,874) | 113% |
* | Represents a percentage computation that is not mathematically meaningful. |
Six Months Ended March 31,
|
Change | ||||||||||||||||
(in thousands) | 2021 | 2020 | |||||||||||||||
Net revenues: | |||||||||||||||||
Pawn service charges | $ | 99,797 | $ | 125,790 | (21)% | ||||||||||||
Merchandise sales | 176,080 | 197,801 | (11)% | ||||||||||||||
Merchandise sales gross profit | 76,209 | 71,151 | 7% | ||||||||||||||
Gross margin on merchandise sales | 43 | % | 36 | % | 700bps | ||||||||||||
Jewelry scrapping sales | 7,585 | 15,776 | (52)% | ||||||||||||||
Jewelry scrapping sales gross profit | 1,592 | 3,221 | (51)% | ||||||||||||||
Gross margin on jewelry scrapping sales | 21 | % | 20 | % | 100bps | ||||||||||||
Other revenues | 51 | 67 | (24)% | ||||||||||||||
Net revenues | 177,649 | 200,229 | (11)% | ||||||||||||||
Segment operating expenses: | |||||||||||||||||
Store expenses | 125,749 | 135,678 | (7)% | ||||||||||||||
Impairment of goodwill, intangibles and other assets | — | 10,000 | * | ||||||||||||||
Depreciation and amortization | 5,372 | 5,576 | (4)% | ||||||||||||||
Segment operating contribution | 46,528 | 48,975 | (5)% | ||||||||||||||
Other segment expense | 27 | — | * | ||||||||||||||
Segment contribution | $ | 46,501 | $ | 48,975 | (5)% | ||||||||||||
Other data: | |||||||||||||||||
Average monthly ending pawn loan balance per store (a) | $ | 224 | $ | 286 | (22)% | ||||||||||||
Monthly average yield on pawn loans outstanding | 15 | % | 14 | % | 100bps | ||||||||||||
Pawn loan redemption rate | 86 | % | 86 | % | —bps |
* | Represents a percentage computation that is not mathematically meaningful. | ||||
(a) | Balance is calculated based upon the average of the monthly ending balances during the applicable period. |
Six Months Ended March 31,
|
|||||||||||||||||||||||||||||
(in thousands) |
2021 (GAAP)
|
2020 (GAAP)
|
Change (GAAP) |
2021 (Constant Currency)
|
Change (Constant Currency) | ||||||||||||||||||||||||
Net revenues: | |||||||||||||||||||||||||||||
Pawn service charges | $ | 27,128 | $ | 39,157 | (31)% | $ | 28,045 | (28)% | |||||||||||||||||||||
Merchandise sales | 46,928 | 58,757 | (20)% | 48,588 | (17)% | ||||||||||||||||||||||||
Merchandise sales gross profit | 16,466 | 15,555 | 6% | 17,013 | 9% | ||||||||||||||||||||||||
Gross margin on merchandise sales | 35 | % | 26 | % | 900bps | 35 | % | 900bps | |||||||||||||||||||||
Jewelry scrapping sales | 5,249 | 5,630 | (7)% | 5,327 | (5)% | ||||||||||||||||||||||||
Jewelry scrapping sales gross profit | 639 | 814 | (21)% | 666 | (18)% | ||||||||||||||||||||||||
Gross margin on jewelry scrapping sales | 12 | % | 14 | % | (200)bps | 13 | % | (100)bps | |||||||||||||||||||||
Other revenues, net | 7 | 13 | (46)% | 7 | (46)% | ||||||||||||||||||||||||
Net revenues | 44,240 | 55,539 | (20)% | 45,731 | (18)% | ||||||||||||||||||||||||
Segment operating expenses: | |||||||||||||||||||||||||||||
Store expenses | 34,709 | 38,452 | (10)% | 35,931 | (7)% | ||||||||||||||||||||||||
Depreciation and amortization | 3,653 | 3,829 | (5)% | 3,785 | (1)% | ||||||||||||||||||||||||
Impairment of goodwill, intangibles and other assets | — | 35,936 | (100)% | — | (100)% | ||||||||||||||||||||||||
Segment operating contribution (loss) | 5,878 | (22,678) | 126% | 6,015 | 127% | ||||||||||||||||||||||||
Other segment income (a) | (1,705) | (664) | 157% | (1,684) | 154% | ||||||||||||||||||||||||
Segment contribution (loss) | $ | 7,583 | $ | (22,014) | 134% | $ | 7,699 | 135% | |||||||||||||||||||||
Other data: | |||||||||||||||||||||||||||||
Average monthly ending pawn loan balance per store (b) | $ | 55 | $ | 89 | (38)% | $ | 56 | (37)% | |||||||||||||||||||||
Monthly average yield on pawn loans outstanding | 17 | % | 16 | % | 100bps | 17 | % | 100bps | |||||||||||||||||||||
Pawn loan redemption rate | 82 | % | 78 | % | 400bps | 82 | % | 400bps |
(a) |
Fiscal 2021 constant currency amount excludes a nominal net GAAP basis foreign currency transaction adjustment resulting from movement in exchange rates. The net foreign currency transaction adjustment for fiscal 2020 was nominal and are included in the above results.
|
||||
(b) | Balance is calculated based upon the average of the monthly ending balances during the applicable period. |
Six Months Ended March 31,
|
Change | ||||||||||||||||
(in thousands) | 2021 | 2020 | |||||||||||||||
Net revenues: | |||||||||||||||||
Consumer loan fees, interest and other | $ | 249 | $ | 2,686 | (91)% | ||||||||||||
Consumer loan debt | — | 1,024 | (100)% | ||||||||||||||
Net revenues | 249 | 1,662 | (85)% | ||||||||||||||
Segment operating expenses: | |||||||||||||||||
Store expenses | — | 2,850 | (100)% | ||||||||||||||
Impairment of goodwill, intangible and other assets | — | 1,124 | (100)% | ||||||||||||||
Equity in net (income) loss on unconsolidated affiliates | (1,766) | 4,713 | 137% | ||||||||||||||
Segment operating contribution | 2,015 | (7,025) | 129% | ||||||||||||||
Other segment (income) expense | (201) | 343 | 159% | ||||||||||||||
Segment contribution (loss) | $ | 2,216 | $ | (7,368) | 130% |
Six Months Ended March 31,
|
Percentage Change | ||||||||||||||||
(in thousands) | 2021 | 2020 | |||||||||||||||
Segment contribution | $ | 56,300 | $ | 19,593 | 187% | ||||||||||||
Corporate expenses (income): | |||||||||||||||||
General and administrative | 26,281 | 34,179 | (23)% | ||||||||||||||
Depreciation and amortization | 6,636 | 6,033 | 10% | ||||||||||||||
Loss on sale or disposal of assets | 63 | 1,100 | (94)% | ||||||||||||||
Interest expense | 10,973 | 10,456 | 5% | ||||||||||||||
Interest income | (71) | (1,027) | (93)% | ||||||||||||||
Other expense (income) | 117 | (20) | 685% | ||||||||||||||
Income (loss) from continuing operations before income taxes | 12,301 | (31,128) | 140% | ||||||||||||||
Income tax expense | 2,672 | 8,508 | (69)% | ||||||||||||||
Net income (loss) attributable to EZCORP, Inc. | $ | 9,629 | $ | (39,636) | 124% |
Six Months Ended
March 31,
|
Percentage
Change |
||||||||||||||||
(in thousands) | 2021 | 2020 | |||||||||||||||
Cash flows provided by operating activities | $ | 18,721 | $ | 21,271 | (12)% | ||||||||||||
Cash flows provided by investing activities | 9,080 | 28,636 | (68)% | ||||||||||||||
Cash flows used in financing activities | (1,710) | (7,256) | 76% | ||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 5,000 | (7,364) | 168% | ||||||||||||||
Net increase in cash, cash equivalents and restricted cash | $ | 31,091 | $ | 35,287 | (12)% |
Incorporated by Reference | Filed Herewith | |||||||||||||||||||||||||
Exhibit | Description of Exhibit | Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||
10.1 | x | |||||||||||||||||||||||||
31.1 | x | |||||||||||||||||||||||||
31.2 | x | |||||||||||||||||||||||||
32.1† | x | |||||||||||||||||||||||||
32.2† | x | |||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the interactive data files because the XBRL tags are embedded within the Inline XBRL document) | |||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | x | ||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | x | ||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | x | ||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | x | ||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | x | ||||||||||||||||||||||||
104 | Cover Page Interactive Data File in Inline XBRL format (contained in Exhibit 101) |
† | The certifications furnished in Exhibit 32.1 and Exhibit 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference. |
EZCORP, INC. | |||||||||||
Date: | May 5, 2021 | /s/ Jason A. Kulas | |||||||||
Jason A. Kulas,
Chief Executive Officer |
1 Year EZCORP Chart |
1 Month EZCORP Chart |
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