Unless otherwise noted, all amounts in this release are in conformity with
SECOND QUARTER HIGHLIGHTS
- Net income of
$21.5 million , up from a net loss of$6.8 million . In the prior-year we recorded our share of the one-time, non-cash goodwill impairment and discrete adjustments recognized by Cash Converters International of$25.6 million . On an adjusted basis1, net income increased$3.6 million or 21%. - Diluted earnings per share of
$0.29 , up from diluted loss per share of$0.12 . On an adjusted basis, diluted earnings per share of$0.28 , compared to$0.23 . - Total revenues increased 11%, and gross profit increased 12%.
- Merchandise sales gross margin remains within our targeted range at 35%.
- Pawn loans outstanding (PLO) up 14% to
$235.8 million . - Return on earning assets (ROEA) remains strong at 165%.
CEO COMMENTARY AND OUTLOOK
“During the second quarter, we opened nine de novo stores in
“We have 4.6 million EZ+ Rewards members, an increase of 61% over the second quarter of 2023 and 10% over last quarter. Online payments continue to gain traction with customers, and we collected
“Thank you to our exceptional
CONSOLIDATED RESULTS
Three Months Ended | As Reported | Adjusted1 | |||||||||||
in millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | |||||||||
Total revenues | $ | 285.6 | $ | 258.4 | $ | 280.2 | $ | 258.4 | |||||
Gross profit | $ | 167.6 | $ | 149.2 | $ | 164.6 | $ | 149.2 | |||||
Income (loss) before tax | $ | 28.7 | $ | (7.3 | ) | $ | 27.6 | $ | 24.3 | ||||
Net income (loss) | $ | 21.5 | $ | (6.8 | ) | $ | 20.7 | $ | 17.1 | ||||
Diluted earnings (loss) per share | $ | 0.29 | $ | (0.12 | ) | $ | 0.28 | $ | 0.23 | ||||
EBITDA (non-GAAP measure) | $ | 37.4 | $ | 2.1 | $ | 36.2 | $ | 33.8 |
- Diluted earnings per share of
$0.29 , up from diluted loss per share of$0.12 . On an adjusted basis, diluted earnings per share of$0.28 , up from$0.23 . The primary difference between GAAP and Adjusted financial results is attributable to our share of the previously announced prior year one-time, non-cash goodwill impairment recognized by Cash Converters International. - Income before taxes was
$28 .7 million, up from loss before taxes of$7 .3 million, and adjusted EBITDA increased 7% to$36.2 million . PLO increased 14% to$235.8 million , up$29 .7 million. On a same-store basis2,PLO increased 12% due to improved operational performance and continued strong pawn demand.- Total revenues increased 11%, and gross profit increased 12%, reflecting improved pawn service charge (PSC) revenues, merchandise sales and merchandise sales gross profit.
- PSC increased 15% as a result of higher average
PLO . - Merchandise sales gross margin remains within our target range at 35%. Aged general merchandise was 2.3% of total general merchandise inventory.
- Net inventory increased 9%, as expected with the growth in
PLO . Inventory turnover increased to 2.9x, from 2.8x. - Store expenses increased 13%, primarily due to increased labor, in-line with store activity, higher store count and, to a lesser extent, expenses related to our loyalty program. On a same-store basis, store expenses increased 11%.
- General and administrative expenses increased 17%, primarily due to labor driven by incentive compensation related to an increase in share price and, to a lesser extent, costs related to the implementation of Workday.
- Cash and cash equivalents at the end of the quarter was
$229.1 million , down 6% year-over-year. The decrease was due to the increase inPLO and inventory, strategic investments, share repurchases, and the acquisition of new stores, partially offset by cash inflows provided by operating activities.
SEGMENT RESULTS
PLO ended the quarter at$173.7 million , up 11% or 9% on a same store basis.- Total revenue and gross profit was up 10%, reflecting increased PSC and higher merchandise sales.
- PSC increased 14% as a result of higher average
PLO . - Merchandise sales increased 6%, and gross margin decreased to 37% from 38%. Aged general merchandise increased to 3.0% of total general merchandise inventory, primarily driven by luxury handbags in our Max Pawn stores.
- Net inventory increased 9%, as expected with the growth in
PLO . Inventory turnover remained flat at 2.6x. - Store expenses increased 12%, primarily due to salaries and benefits as we continue to support our team members as a part of People, Pawn and Passion focus, higher store count and, to a lesser extent, expenses related to our loyalty program.
- Segment contribution increased 8% to
$40.7 million . - During the quarter, net store count increased by five due to the acquisition of six stores and the consolidation of one store.
Latin America Pawn
- PLO improved to
$62.0 million , up 26% (19% on constant currency basis). On a same store basis,PLO increased 22% (15% on a constant currency basis) due to improved operational performance and continued strong pawn demand. - Total revenues was up 12% (4% on constant currency basis), and gross profit increased 18% (10% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved merchandise sales gross profit.
- PSC increased 18% (10% on a constant currency basis) as a result of higher average
PLO . - Merchandise sales gross margin increased to 33% from 32%. Aged general merchandise was 1.4% of total merchandise inventory.
- Net inventory increased 9% (2% on a constant currency basis). Inventory turnover increased to 3.6x from 3.5x.
- Store expenses increased 15% (7% on a constant currency basis), primarily due to higher store count. Same-store expenses increased 10% (2% on a constant currency basis).
- Segment contribution increased 2% (decreased 3% on a constant currency basis). On an adjusted basis, segment contribution was up 38% to
$7.7 million , with the primary adjustment being the prior year reversal of contingent consideration liability of$2.5 million in connection with a previously completed acquisition. - During the quarter, net store count increased by four due to the opening of nine de novo stores and the consolidation of five stores.
FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended
CONFERENCE CALL
ABOUT
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FORWARD LOOKING STATEMENTS
This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company's strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the
Contact:
Email: Investor_Relations@ezcorp.com
Phone: (512) 314-2220
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
(in thousands, except per share amounts) | 2024 | 2023 | 2024 | 2023 | |||||||||||
Revenues: | |||||||||||||||
Merchandise sales | $ | 164,687 | $ | 152,507 | $ | 344,090 | $ | 316,294 | |||||||
Jewelry scrapping sales | 13,714 | 12,825 | 27,796 | 20,709 | |||||||||||
Pawn service charges | 107,163 | 93,030 | 213,612 | 185,623 | |||||||||||
Other revenues | 75 | 61 | 132 | 124 | |||||||||||
Total revenues | 285,639 | 258,423 | 585,630 | 522,750 | |||||||||||
Merchandise cost of goods sold | 106,259 | 97,339 | 221,469 | 202,216 | |||||||||||
Jewelry scrapping cost of goods sold | 11,788 | 11,902 | 23,996 | 18,855 | |||||||||||
Gross profit | 167,592 | 149,182 | 340,165 | 301,679 | |||||||||||
Operating expenses: | |||||||||||||||
Store expenses | 114,582 | 101,269 | 225,137 | 202,072 | |||||||||||
General and administrative | 18,266 | 15,609 | 34,809 | 31,085 | |||||||||||
Depreciation and amortization | 8,219 | 7,963 | 16,784 | 15,951 | |||||||||||
Loss (gain) on sale or disposal of assets and other | 3 | 73 | (169 | ) | 57 | ||||||||||
Other income | (765 | ) | (2,465 | ) | (765 | ) | (2,465 | ) | |||||||
Total operating expenses | 140,305 | 122,449 | 275,796 | 246,700 | |||||||||||
Operating income | 27,287 | 26,733 | 64,369 | 54,979 | |||||||||||
Interest expense | 3,402 | 3,390 | 6,842 | 9,580 | |||||||||||
Interest income | (2,882 | ) | (1,898 | ) | (5,521 | ) | (2,562 | ) | |||||||
Equity in net (income) loss of unconsolidated affiliates | (1,719 | ) | 32,501 | (2,872 | ) | 30,917 | |||||||||
Other (income) expense | (165 | ) | 80 | (436 | ) | (154 | ) | ||||||||
Income (loss) before income taxes | 28,651 | (7,340 | ) | 66,356 | 17,198 | ||||||||||
Income tax expense (benefit) | 7,172 | (550 | ) | 16,407 | 7,210 | ||||||||||
Net income (loss) | $ | 21,479 | $ | (6,790 | ) | $ | 49,949 | $ | 9,988 | ||||||
Basic earnings (loss) per share | $ | 0.39 | $ | (0.12 | ) | $ | 0.91 | $ | 0.18 | ||||||
Diluted earnings (loss) per share | $ | 0.29 | $ | (0.12 | ) | $ | 0.65 | $ | 0.11 | ||||||
Weighted-average basic shares outstanding | 55,093 | 55,648 | 55,084 | 55,981 | |||||||||||
Weighted-average diluted shares outstanding | 83,045 | 55,648 | 84,948 | 65,269 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||||
(in thousands, except share and per share amounts) | 2024 | 2023 | 2023 | ||||||||
Assets: | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 229,111 | $ | 243,128 | $ | 220,595 | |||||
Restricted cash | 8,581 | 8,451 | 8,373 | ||||||||
Pawn loans | 235,773 | 206,096 | 245,766 | ||||||||
Pawn service charges receivable, net | 38,268 | 33,116 | 38,885 | ||||||||
Inventory, net | 163,429 | 150,297 | 166,477 | ||||||||
Prepaid expenses and other current assets | 47,142 | 45,564 | 39,623 | ||||||||
Total current assets | 722,304 | 686,652 | 719,719 | ||||||||
Investments in unconsolidated affiliates | 13,162 | 10,681 | 10,987 | ||||||||
Other investments | 51,220 | 39,220 | 36,220 | ||||||||
Property and equipment, net | 63,306 | 59,775 | 68,096 | ||||||||
Right-of-use assets, net | 243,752 | 234,287 | 234,388 | ||||||||
310,658 | 300,078 | 302,372 | |||||||||
Intangible assets, net | 61,714 | 59,620 | 58,216 | ||||||||
Notes receivable, net | — | 1,233 | — | ||||||||
Deferred tax asset, net | 26,247 | 19,127 | 25,702 | ||||||||
Other assets, net | 15,779 | 9,859 | 12,011 | ||||||||
Total assets | $ | 1,508,142 | $ | 1,420,532 | $ | 1,467,711 | |||||
Liabilities and equity: | |||||||||||
Current liabilities: | |||||||||||
Current maturities of long-term debt, net | $ | 34,347 | $ | — | $ | 34,265 | |||||
Accounts payable, accrued expenses and other current liabilities | 62,838 | 72,695 | $ | 81,605 | |||||||
Customer layaway deposits | 20,352 | 18,761 | 18,920 | ||||||||
Operating lease liabilities, current | 55,658 | 53,921 | 57,182 | ||||||||
Total current liabilities | 173,195 | 145,377 | 191,972 | ||||||||
Long-term debt, net | 326,573 | 359,287 | 325,847 | ||||||||
Deferred tax liability, net | 465 | 368 | 435 | ||||||||
Operating lease liabilities | 197,285 | 191,874 | 193,187 | ||||||||
Other long-term liabilities | 10,228 | 11,038 | 10,502 | ||||||||
Total liabilities | 707,746 | 707,944 | 721,943 | ||||||||
Commitments and contingencies (Note 9) | |||||||||||
Stockholders’ equity: | |||||||||||
Class A Non-voting Common Stock, par value | 521 | 526 | 519 | ||||||||
Class B Voting Common Stock, convertible, par value | 30 | 30 | 30 | ||||||||
Additional paid-in capital | 345,174 | 343,088 | 346,181 | ||||||||
Retained earnings | 477,683 | 405,961 | 431,140 | ||||||||
Accumulated other comprehensive loss | (23,012 | ) | (37,017 | ) | (32,102 | ) | |||||
Total equity | 800,396 | 712,588 | 745,768 | ||||||||
Total liabilities and equity | $ | 1,508,142 | $ | 1,420,532 | $ | 1,467,711 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
Six Months Ended | |||||||
(in thousands) | 2024 | 2023 | |||||
Operating activities: | |||||||
Net income | $ | 49,949 | $ | 9,988 | |||
Adjustments to reconcile net income to net cash flows from operating activities: | |||||||
Depreciation and amortization | 16,784 | 15,951 | |||||
Amortization of debt discount and deferred financing costs | 807 | 736 | |||||
Non-cash lease expense | 29,514 | 27,546 | |||||
Deferred income taxes | 515 | (6,987 | ) | ||||
Other adjustments | (1,429 | ) | (2,386 | ) | |||
Provision for inventory reserve | 183 | 280 | |||||
Stock compensation expense | 4,844 | 3,741 | |||||
Equity in net (income) loss from investment in unconsolidated affiliates | (2,872 | ) | 30,917 | ||||
Net loss on extinguishment of debt | — | 3,545 | |||||
Changes in operating assets and liabilities, net of business acquisitions: | |||||||
Pawn service charges receivable | 1,071 | 1,357 | |||||
Inventory | 1,617 | (2,306 | ) | ||||
Prepaid expenses, other current assets and other assets | (8,699 | ) | (3,639 | ) | |||
Accounts payable, accrued expenses and other liabilities | (57,531 | ) | (43,969 | ) | |||
Customer layaway deposits | 886 | 1,426 | |||||
Income taxes | 909 | 8,852 | |||||
Dividends from unconsolidated affiliates | — | 1,775 | |||||
Net cash provided by operating activities | 36,548 | 46,827 | |||||
Investing activities: | |||||||
Loans made | (433,194 | ) | (378,717 | ) | |||
Loans repaid | 262,970 | 230,604 | |||||
Recovery of pawn loan principal through sale of forfeited collateral | 188,351 | 171,504 | |||||
Capital expenditures, net | (13,654 | ) | (18,439 | ) | |||
Acquisitions, net of cash acquired | (8,610 | ) | (12,968 | ) | |||
Issuance of notes receivable | — | (15,500 | ) | ||||
Investment in unconsolidated affiliate | (850 | ) | (2,133 | ) | |||
Investment in other investments | (15,000 | ) | (15,000 | ) | |||
Dividends from unconsolidated affiliates | 1,745 | — | |||||
Net cash used in investing activities | (18,242 | ) | (40,649 | ) | |||
Financing activities: | |||||||
Taxes paid related to net share settlement of equity awards | (3,253 | ) | (1,149 | ) | |||
Proceeds from issuance of debt | — | 230,000 | |||||
Debt issuance cost | — | (7,458 | ) | ||||
Cash paid on extinguishment of debt | — | (1,951 | ) | ||||
Payments on debt | — | (178,488 | ) | ||||
Purchase and retirement of treasury stock | (6,010 | ) | (10,978 | ) | |||
Payments of finance leases | (276 | ) | — | ||||
Net cash (used in) provided by financing activities | (9,539 | ) | 29,976 | ||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (43 | ) | 1,056 | ||||
Net increase in cash, cash equivalents and restricted cash | 8,724 | 37,210 | |||||
Cash and cash equivalents and restricted cash at beginning of period | 228,968 | 214,369 | |||||
Cash and cash equivalents and restricted cash at end of period | $ | 237,692 | $ | 251,579 | |||
OPERATING SEGMENT RESULTS | |||||||||||||||||||||||
Three Months Ended (Unaudited) | |||||||||||||||||||||||
(in thousands) | Latin America Pawn | Other Investments | Total Segments | Corporate Items | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Merchandise sales | $ | 114,849 | $ | 49,838 | $ | — | $ | 164,687 | $ | — | $ | 164,687 | |||||||||||
Jewelry scrapping sales | 12,686 | 1,028 | — | 13,714 | — | 13,714 | |||||||||||||||||
Pawn service charges | 80,010 | 27,153 | — | 107,163 | — | 107,163 | |||||||||||||||||
Other revenues | 29 | 15 | 31 | 75 | — | 75 | |||||||||||||||||
Total revenues | 207,574 | 78,034 | 31 | 285,639 | — | 285,639 | |||||||||||||||||
Merchandise cost of goods sold | 72,798 | 33,461 | — | 106,259 | — | 106,259 | |||||||||||||||||
Jewelry scrapping cost of goods sold | 10,794 | 994 | — | 11,788 | — | 11,788 | |||||||||||||||||
Gross profit | 123,982 | 43,579 | 31 | 167,592 | — | 167,592 | |||||||||||||||||
Segment and corporate expenses (income): | |||||||||||||||||||||||
Store expenses | 80,840 | 33,742 | — | 114,582 | — | 114,582 | |||||||||||||||||
General and administrative | — | — | — | — | 18,266 | 18,266 | |||||||||||||||||
Depreciation and amortization | 2,516 | 2,392 | — | 4,908 | 3,311 | 8,219 | |||||||||||||||||
(Gain) loss on sale or disposal of assets and other | (30 | ) | (66 | ) | — | (96 | ) | 99 | 3 | ||||||||||||||
Other income | — | — | — | — | (765 | ) | (765 | ) | |||||||||||||||
Interest expense | — | — | — | — | 3,402 | 3,402 | |||||||||||||||||
Interest income | — | (608 | ) | (633 | ) | (1,241 | ) | (1,641 | ) | (2,882 | ) | ||||||||||||
Equity in net income of unconsolidated affiliates | — | — | (1,719 | ) | (1,719 | ) | — | (1,719 | ) | ||||||||||||||
Other expense (income) | — | 1 | 14 | 15 | (180 | ) | (165 | ) | |||||||||||||||
Segment contribution | $ | 40,656 | $ | 8,118 | $ | 2,369 | $ | 51,143 | |||||||||||||||
Income (loss) before income taxes | $ | 51,143 | $ | (22,492 | ) | $ | 28,651 |
Three Months Ended (Unaudited) | |||||||||||||||||||||||
(in thousands) | Latin America Pawn | Other Investments | Total Segments | Corporate Items | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Merchandise sales | $ | 108,740 | $ | 43,767 | $ | — | $ | 152,507 | $ | — | $ | 152,507 | |||||||||||
Jewelry scrapping sales | 9,814 | 3,011 | — | 12,825 | — | 12,825 | |||||||||||||||||
Pawn service charges | 69,945 | 23,085 | — | 93,030 | — | 93,030 | |||||||||||||||||
Other revenues | 32 | 19 | 10 | 61 | — | 61 | |||||||||||||||||
Total revenues | 188,531 | 69,882 | 10 | 258,423 | — | 258,423 | |||||||||||||||||
Merchandise cost of goods sold | 67,643 | 29,696 | — | 97,339 | — | 97,339 | |||||||||||||||||
Jewelry scrapping cost of goods sold | 8,550 | 3,352 | — | 11,902 | — | 11,902 | |||||||||||||||||
Gross profit | 112,338 | 36,834 | 10 | 149,182 | — | 149,182 | |||||||||||||||||
Segment and corporate expenses (income): | |||||||||||||||||||||||
Store expenses | 71,946 | 29,323 | — | 101,269 | — | 101,269 | |||||||||||||||||
General and administrative | — | — | — | — | 15,609 | 15,609 | |||||||||||||||||
Depreciation and amortization | 2,560 | 2,332 | — | 4,892 | 3,071 | 7,963 | |||||||||||||||||
Loss (gain) on sale or disposal of assets | 81 | (8 | ) | — | 73 | — | 73 | ||||||||||||||||
Other income | — | (2,465 | ) | — | (2,465 | ) | — | (2,465 | ) | ||||||||||||||
Interest expense | — | — | — | — | 3,390 | 3,390 | |||||||||||||||||
Interest income | (1 | ) | (298 | ) | — | (299 | ) | (1,599 | ) | (1,898 | ) | ||||||||||||
Equity in net loss of unconsolidated affiliates | — | — | 32,501 | 32,501 | — | 32,501 | |||||||||||||||||
Other (income) expense | — | (46 | ) | 6 | (40 | ) | 120 | 80 | |||||||||||||||
Segment contribution (loss) | $ | 37,752 | $ | 7,996 | $ | (32,497 | ) | $ | 13,251 | ||||||||||||||
Income (loss) before income taxes | $ | 13,251 | $ | (20,591 | ) | $ | (7,340 | ) | |||||||||||||||
Six Months Ended (Unaudited) | |||||||||||||||||||||||
(in thousands) | Latin America Pawn | Other Investments | Total Segments | Corporate Items | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Merchandise sales | $ | 240,362 | $ | 103,728 | $ | — | $ | 344,090 | $ | — | $ | 344,090 | |||||||||||
Jewelry scrapping sales | 25,501 | 2,295 | — | 27,796 | — | 27,796 | |||||||||||||||||
Pawn service charges | 159,083 | 54,529 | — | 213,612 | — | 213,612 | |||||||||||||||||
Other revenues | 66 | 31 | 35 | 132 | — | 132 | |||||||||||||||||
Total revenues | 425,012 | 160,583 | 35 | 585,630 | — | 585,630 | |||||||||||||||||
Merchandise cost of goods sold | 151,507 | 69,962 | — | 221,469 | — | 221,469 | |||||||||||||||||
Jewelry scrapping cost of goods sold | 22,078 | 1,918 | — | 23,996 | — | 23,996 | |||||||||||||||||
Gross profit | 251,427 | 88,703 | 35 | 340,165 | — | 340,165 | |||||||||||||||||
Segment and corporate expenses (income): | |||||||||||||||||||||||
Store expenses | 158,095 | 67,042 | — | 225,137 | — | 225,137 | |||||||||||||||||
General and administrative | — | — | — | — | 34,809 | 34,809 | |||||||||||||||||
Depreciation and amortization | 5,140 | 4,731 | — | 9,871 | 6,913 | 16,784 | |||||||||||||||||
(Gain) loss on sale or disposal of assets and other | (4 | ) | (262 | ) | — | (266 | ) | 97 | (169 | ) | |||||||||||||
Other income | — | — | — | — | (765 | ) | (765 | ) | |||||||||||||||
Interest expense | — | — | — | — | 6,842 | 6,842 | |||||||||||||||||
Interest income | — | (1,028 | ) | (1,206 | ) | (2,234 | ) | (3,287 | ) | (5,521 | ) | ||||||||||||
Equity in net loss of unconsolidated affiliates | — | — | (2,872 | ) | (2,872 | ) | — | (2,872 | ) | ||||||||||||||
Other (income) expense | — | (47 | ) | 15 | (32 | ) | (404 | ) | (436 | ) | |||||||||||||
Segment contribution | 88,196 | 18,267 | $ | 4,098 | $ | 110,561 | |||||||||||||||||
Income (loss) before income taxes | $ | 110,561 | $ | (44,205 | ) | $ | 66,356 |
Six Months Ended (Unaudited) | |||||||||||||||||||||||
(in thousands) | Latin America Pawn | Other Investments | Total Segments | Corporate Items | Consolidated | ||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Merchandise sales | $ | 227,054 | $ | 89,240 | $ | — | $ | 316,294 | $ | — | $ | 316,294 | |||||||||||
Jewelry scrapping sales | 16,990 | 3,719 | — | 20,709 | — | 20,709 | |||||||||||||||||
Pawn service charges | 139,255 | 46,368 | — | 185,623 | — | 185,623 | |||||||||||||||||
Other revenues | 57 | 35 | 32 | 124 | — | 124 | |||||||||||||||||
Total revenues | 383,356 | 139,362 | 32 | 522,750 | — | 522,750 | |||||||||||||||||
Merchandise cost of goods sold | 140,899 | 61,317 | — | 202,216 | — | 202,216 | |||||||||||||||||
Jewelry scrapping cost of goods sold | 14,766 | 4,089 | — | 18,855 | — | 18,855 | |||||||||||||||||
Gross profit | 227,691 | 73,956 | 32 | 301,679 | — | 301,679 | |||||||||||||||||
Segment and corporate expenses (income): | |||||||||||||||||||||||
Store expenses | 145,250 | 56,822 | — | 202,072 | — | 202,072 | |||||||||||||||||
General and administrative | — | (3 | ) | — | (3 | ) | 31,088 | 31,085 | |||||||||||||||
Depreciation and amortization | 5,315 | 4,547 | — | 9,862 | 6,089 | 15,951 | |||||||||||||||||
Loss (gain) on sale or disposal of assets | 84 | (27 | ) | — | 57 | — | 57 | ||||||||||||||||
Other income | — | (2,465 | ) | — | (2,465 | ) | — | (2,465 | ) | ||||||||||||||
Interest expense | — | — | — | — | 9,580 | 9,580 | |||||||||||||||||
Interest income | (1 | ) | (467 | ) | — | (468 | ) | (2,094 | ) | (2,562 | ) | ||||||||||||
Equity in net loss of unconsolidated affiliates | — | — | 30,917 | 30,917 | — | 30,917 | |||||||||||||||||
Other expense (income) | — | 24 | 10 | 34 | (188 | ) | (154 | ) | |||||||||||||||
Segment contribution (loss) | $ | 77,043 | $ | 15,525 | $ | (30,895 | ) | $ | 61,673 | ||||||||||||||
Income (loss) before income taxes | $ | 61,673 | $ | (44,475 | ) | $ | 17,198 |
STORE COUNT ACTIVITY
(Unaudited)
Three Months Ended | ||||||||
Latin America Pawn | Consolidated | |||||||
As of | 530 | 707 | 1,237 | |||||
New locations opened | — | 9 | 9 | |||||
Locations acquired | 6 | — | 6 | |||||
Locations combined or closed | (1 | ) | (5 | ) | (6 | ) | ||
As of | 535 | 711 | 1,246 |
Three Months Ended | |||||
Latin America Pawn | Consolidated | ||||
As of | 525 | 661 | 1,186 | ||
New locations opened | 2 | 11 | 13 | ||
As of | 527 | 672 | 1,199 |
Six Months Ended | ||||||||
Latin America Pawn | Consolidated | |||||||
As of | 529 | 702 | 1,231 | |||||
New locations opened | — | 14 | 14 | |||||
Locations acquired | 7 | — | 7 | |||||
Locations combined or closed | (1 | ) | (5 | ) | (6 | ) | ||
As of | 535 | 711 | 1,246 |
Six Months Ended | |||||||
Latin America Pawn | Consolidated | ||||||
As of | 515 | 660 | 1,175 | ||||
New locations opened | 2 | 13 | 15 | ||||
Locations acquired | 10 | — | 10 | ||||
Locations combined or closed | — | (1 | ) | (1 | ) | ||
As of | 527 | 672 | 1,199 |
Non-GAAP Financial Information (Unaudited)
In addition to the financial information prepared in conformity with accounting
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
Three Months Ended | Six Months Ended | |||||||||||
2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||
Mexican peso | 16.6 | 18.1 | 17.0 | 18.7 | 17.3 | 19.2 | ||||||
Guatemalan quetzal | 7.6 | 7.6 | 7.6 | 7.6 | 7.6 | 7.6 | ||||||
Honduran lempira | 24.4 | 24.4 | 24.4 | 24.3 | 24.4 | 24.3 | ||||||
Australian dollar | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 | 1.5 |
Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.
Miscellaneous Non-GAAP Financial Measures
Three Months Ended | |||||||
(in millions) | 2024 | 2023 | |||||
Net income (loss) | $ | 21.5 | $ | (6.8 | ) | ||
Interest expense | 3.4 | 3.4 | |||||
Interest income | (2.9 | ) | (1.9 | ) | |||
Income tax expense (benefit) | 7.2 | (0.6 | ) | ||||
Depreciation and amortization | 8.2 | 8.0 | |||||
EBITDA | $ | 37.4 | $ | 2.1 |
Total Revenues | Gross Profit | Income Before Tax | Tax Effect | Net Income | Diluted EPS | EBITDA | |||||||||||||||||||||
2024 Q2 Reported | $ | 285.6 | $ | 167.6 | $ | 28.7 | $ | 7.2 | $ | 21.5 | $ | 0.29 | $ | 37.4 | |||||||||||||
Corporate lease termination | — | — | (0.8 | ) | (0.2 | ) | (0.6 | ) | (0.01 | ) | (0.8 | ) | |||||||||||||||
FX Impact | — | — | 0.1 | — | 0.1 | — | 0.1 | ||||||||||||||||||||
Constant Currency and other impact | (5.4 | ) | (3.0 | ) | (0.4 | ) | (0.1 | ) | (0.3 | ) | — | (0.5 | ) | ||||||||||||||
2024 Q2 Adjusted | $ | 280.2 | $ | 164.6 | $ | 27.6 | $ | 6.9 | $ | 20.7 | $ | 0.28 | $ | 36.2 |
Total Revenues | Gross Profit | Income Before Tax | Tax Effect | Net Income | Diluted EPS | EBITDA | |||||||||||||||||||
2023 Q2 Reported | $ | 258.4 | $ | 149.2 | $ | (7.3 | ) | $ | (0.5 | ) | $ | (6.8 | ) | $ | (0.12 | ) | $ | 2.1 | |||||||
CCV Impairment and discrete adjustments | — | — | 34.0 | 8.4 | 25.6 | 0.29 | 34.0 | ||||||||||||||||||
Contingent consideration liability | — | — | (2.4 | ) | (0.7 | ) | (1.7 | ) | (0.02 | ) | (2.4 | ) | |||||||||||||
Impact of dilutive instruments* | — | — | — | — | — | 0.08 | — | ||||||||||||||||||
2023 Q2 Adjusted | $ | 258.4 | $ | 149.2 | $ | 24.3 | $ | 7.2 | $ | 17.1 | $ | 0.23 | $ | 33.8 |
Three Months Ended | Six Months Ended | ||||||||||||
(in millions) | Percentage Change YOY | Percentage Change YOY | |||||||||||
Consolidated revenues | $ | 285.6 | 11 | % | $ | 585.6 | 12 | % | |||||
Currency exchange rate fluctuations | (5.4 | ) | (12.6 | ) | |||||||||
Constant currency consolidated revenues | $ | 280.2 | 8 | % | $ | 573.0 | 10 | % | |||||
Consolidated gross profit | $ | 167.6 | 12 | % | $ | 340.2 | 13 | % | |||||
Currency exchange rate fluctuations | (3.0 | ) | (6.8 | ) | |||||||||
Constant currency consolidated gross profit | $ | 164.6 | 10 | % | $ | 333.4 | 11 | % | |||||
Consolidated net inventory | $ | 163.4 | 9 | % | $ | 163.4 | 9 | % | |||||
Currency exchange rate fluctuations | (2.8 | ) | (2.8 | ) | |||||||||
Constant currency consolidated net inventory | $ | 160.6 | 7 | % | $ | 160.6 | 7 | % | |||||
Latin America Pawn gross profit | $ | 43.6 | 18 | % | $ | 88.7 | 20 | % | |||||
Currency exchange rate fluctuations | (3.0 | ) | (6.8 | ) | |||||||||
Constant currency Latin America Pawn gross profit | $ | 40.6 | 10 | % | $ | 81.9 | 11 | % | |||||
Latin America Pawn PLO | $ | 62.0 | 26 | % | $ | 62.0 | 26 | % | |||||
Currency exchange rate fluctuations | (3.7 | ) | (3.7 | ) | |||||||||
Constant currency Latin America Pawn PLO | $ | 58.3 | 19 | % | $ | 58.3 | 19 | % | |||||
Latin America Pawn PSC revenues | $ | 27.2 | 18 | % | $ | 54.5 | 18 | % | |||||
Currency exchange rate fluctuations | (1.8 | ) | (3.9 | ) | |||||||||
Constant currency Latin America Pawn PSC revenues | $ | 25.4 | 10 | % | $ | 50.6 | 9 | % | |||||
Latin America Pawn merchandise sales | $ | 49.8 | 14 | % | $ | 103.7 | 16 | % | |||||
Currency exchange rate fluctuations | (3.6 | ) | (8.5 | ) | |||||||||
Constant currency Latin America Pawn merchandise sales | $ | 46.2 | 6 | % | $ | 95.2 | 7 | % | |||||
Latin America Pawn segment profit before tax | $ | 8.1 | 2 | % | $ | 18.3 | 18 | % | |||||
Currency exchange rate fluctuations | (0.4 | ) | (1.1 | ) | |||||||||
Constant currency Latin America Pawn segment profit before tax | $ | 7.7 | (4) % | $ | 17.1 | 10 | % |
Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions.
1“Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.
2“Same Store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.
Source:
2024 GlobeNewswire, Inc., source