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    EZPW   US3023011063

EZCORP, INC.

(EZPW)
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EZCORP : Reports Second Quarter Fiscal 2021 Results

05/05/2021 | 04:25pm EDT

EZCORP, Inc. (NASDAQ: EZPW) today announced results for its second quarter ended March 31, 2021.

All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") unless otherwise noted. Comparisons shown in this release are to the same period in the prior year unless otherwise noted.

CEO COMMENTARY AND OUTLOOK

Chief Executive Officer Jason Kulas stated, “We remain focused on meeting our customers’ short-term cash needs and providing access to affordable pre-owned general merchandise and jewelry, and we believe we have the right people, platform, footprint and cost structure in place to continue to strengthen and grow our core pawn business. Key highlights for the second quarter of fiscal 2021 included GAAP earnings per share of $0.10 and adjusted EPS of $0.17. The adjusted EPS was steady on a year-over-year basis despite lower pawn loans outstanding, pawn service charges and merchandise sales related to COVID-19 and related stimulus program headwinds. Merchandise sales gross profit continued to grow driven by improving inventory turns and rising merchandise margins, and we made further progress on our expense reduction initiatives. Looking ahead, even assuming store-level costs trend higher consistent with increasing transaction activity, we remain well positioned to drive higher operating margins as revenue rebuilds reflecting ongoing cost savings and simplification efforts across the business.

“In the near term, lingering impacts from the second stimulus package as well as an extended tax filing season have continued to temporarily reduce demand for pawn loans in the U.S., and in Latin America we continue to be challenged with constrained traffic, limited operating hours and increased remittances. That said, we remain confident pawn loans outstanding will rebuild given several ongoing initiatives. First, we continue to broaden customer engagement via our digital pawn servicing platform and expanded payment options. Second, our differentiated technology and data analytics capabilities are increasingly driving improving loan-to-value ratios and redemption rates. Third, we remain committed to optimizing team member development, productivity and retention through enhanced training and diversity and inclusion programs.

"Finally, we remain focused on increasingly leveraging our strong balance sheet to fund pawn loans outstanding growth and capitalize on strategic and financially accretive acquisitions to complement de novo store growth. We have opened 8 de novo stores in Latin America so far this year and recently completed the acquisition of 11 stores in the Houston, Texas metropolitan area.”

RESULTS FOR SECOND QUARTER OF FISCAL 2021

  • Diluted earnings per share was $0.10, compared to $(0.74) in the prior-year quarter. On an adjusted basis1, diluted earnings per share was $0.17, consistent with the prior-year quarter. Income before taxes increased by $40.9 million to $6.8 million.
  • Total revenues decreased $38.3 million or 17%, primarily due to a $16.8 million or 21% decrease in pawn service charges (PSC) and a $14.6 million or 11% decrease in merchandise sales.
  • The decrease in PSC was due to a $34.9 million or 22% decrease in pawn loans outstanding (PLO). Pawn loan demand was significantly reduced due to the impacts of government stimulus which led to higher loan redemptions compared to the prior year quarter.
  • Although merchandise sales decreased by $14.6 million, merchandise sales gross profit improved by 12%, driven by effective inventory management and less aged inventory leading to a 900 bps improvement in merchandise sales gross profit margin to 43%. The sales margin in the prior year quarter was negatively impacted by 200 bps due to greater sales volume of aged merchandise.
  • Total operating expenses were down $55.0 million or 35% to $103.1 million primarily due to a $47.1 million impairment charge in the prior year quarter with no similar charge in the current year quarter. Excluding the prior year impairment charge, total operating expenses decreased by 7% or $7.9 million largely driven by the decrease in store expenses of $6.5 million or 7% due to a continued focus on expense control.
  • Net inventory was $86.2 million, down 50% year-over-year and 9% sequentially. Inventory turnover improved to 3.1x from 2.1x and on a sequential basis improved 7% from 2.9x.
  • Cash and cash equivalents at the end of the quarter was $335.6 million, an increase of $141.9 million or 73% from the prior-year quarter due to the year-over-year reduction in earning assets. On a sequential basis, cash and cash equivalents increased $45.2 million or 16%, due to higher loan redemptions and merchandise sales. 

CONSOLIDATED RESULTS

Three Months Ended March 31

in millions, except per share amounts

 

 

As Reported

 

Adjusted1

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Total Revenues

$

184.9

 

 

$

223.3

 

 

$

185.5

 

 

$

223.3

 

Net Revenues

$

113.7

 

 

$

127.4

 

 

$

114.1

 

 

$

127.4

 

Income, Before Tax

$

6.8

 

 

$

(34.1)

 

 

$

10.4

 

 

$

16.6

 

Net Income

$

5.3

 

 

$

(40.9)

 

 

$

9.5

 

 

$

9.4

 

Diluted Earnings Per Share

$

0.10

 

 

$

(0.74)

 

 

$

0.17

 

 

$

0.17

 

EBITDA

$

19.8

 

 

$

(21.4)

 

 

$

20.0

 

 

$

26.0

 

  • Total revenues decreased 17% to $184.9 million. PSC was down 21% to $63.4 million due to lower average PLO. On a sequential basis, PLO decreased 15% from the prior quarter, compared to an 18% sequential decrease in the same period of the prior year.
  • Net revenues were down 11% to $113.7 million.
  • Consolidated merchandise sales gross profit increased 12% to $49.4 million.
  • Consolidated store expenses decreased 7% primarily due to a reduction of expenses in line with reduced activity at the store level. Total store count decreased by 16 stores or 2% since the end of the prior-year quarter due to the closure of 22 financial services stores in Canada. General and administrative expense decreased 10% to $13.8 million, due to a continued focus on expense control.

SEGMENT RESULTS

U.S. Pawn

  • Total revenue was down 15% to $147.0 million, reflecting the impact of lower PLO driving a decrease in PSC revenue.
  • PLO decreased 22% year-over-year to $95.4 million. On a sequential basis, PLO decreased 22% compared to a 23% sequential decrease in the prior-year quarter.
  • PSC decreased 20% to $49.6 million as a result of lower average PLO for the quarter, offset by an increase in PLO yield to 180% from 173%.
  • Merchandise sales declined 8% to $93.8 million. Inventory turnover improved to 2.9x from 2.0x. Merchandise sales gross profit was up 13% and related margins grew to 45% from 36%, above our targeted range. Aged general merchandise inventory improved to 1.6% from 6.4%.
  • Net revenues decreased 9% to $92.1 million primarily due to lower PSC, partially offset by increased merchandise sales gross profit.
  • Store expenses were down 6% to $63.7 million driven by a reduction in labor expense.
  • Segment contribution increased $5.3 million to $25.8 million due to a $4.0 million decrease in store expenses and a $10.0 million impairment charge taken in the prior year quarter with no similar charge in the current year quarter, partially offset by a $8.7 million decrease in net revenues driven by the decrease in PSC described above.

Latin America Pawn

  • Total revenue was down 22% to $37.8 million, reflecting the impact of lower PLO driving a decrease in PSC revenue in addition to decreased merchandise sales.
  • PLO decreased 22% year-over-year to $29.9 million as the result of the impact of constrained traffic, limited operating hours and increased remittances from the U.S. On a sequential basis, PLO increased 15% compared to a 6% decrease in the prior-year quarter.
  • PSC decreased 25% to $13.9 million (down 24% to $14.1 million on a constant currency basis) as a result of lower average PLO for the quarter, offset by an increase in yield to 199% from 184% in the prior year.
  • Merchandise sales declined 22% to $21.4 million (down 20% to $21.8 million on a constant currency basis), but merchandise sales gross profit was up 10% and related margins were 35%, up from 25%. Inventory turnover improved to 4.0x from 2.5x. Aged general merchandise inventory decreased to 3.1% from 11.4%.
  • Net revenues decreased 17% to $21.5 million (down 15% to $21.9 million on a constant currency basis) primarily due to lower PSC.
  • Store expenses were down 5% to $17.5 million driven by a reduction in labor expense.
  • Segment contribution for the quarter was $2.6 million ($2.7 million on a constant currency basis), compared to a segment loss of $30.1 million in the prior year quarter, primarily due to a $35.9 million impairment charge of goodwill, intangible and other assets taken in the prior year quarter with no similar charge in the current quarter.
  • Latin America Pawn added four de novo stores in the quarter. New store openings typically pressure earnings in the short term as they ramp up, but drive higher profitability over time.

FORM 10-Q

EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 has been filed with the Securities and Exchange Commission and is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com.

CONFERENCE CALL

EZCORP will host a conference call on Thursday, May 6, 2021, at 7:00 am Central Time to discuss fiscal second quarter results. Analysts and institutional investors may participate on the conference call by dialing (866) 269-4260, Conference ID: 5433254, or internationally by dialing (323) 347-3277. 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 loans in the United States and Latin America. We also sell merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the Russell 2000 Index, S&P 1000 Index and Nasdaq Composite Index.

FORWARD LOOKING STATEMENTS

This announcement contains certain forward-looking statements regarding the company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the company's strategy, initiatives and future performance, that address activities or results that the company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

1 Adjusted basis, which is a non-GAAP measure, excludes certain items. Constant currency basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. Free cash flow, which is a non-GAAP measure, includes certain adjustments to cash flow from operating activities.

For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see Non-GAAP Financial Information at the end of this release.

EZCORP, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

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

 

EZCORP, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(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

 

EZCORP, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

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

)

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

 

EZCORP, Inc.

OPERATING SEGMENT RESULTS

(Unaudited)

 

 

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

)

EZCORP, Inc.

STORE COUNT ACTIVITY

(Unaudited)

     

 

   

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

Locations acquired

   

 

 

Locations sold, combined or closed

   

 

 

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

Locations acquired

   

 

 

 

Locations sold, combined or closed

   

 

 

 

As of March 31, 2020

   

512

 

493

 

22

 

1,027

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 and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflect an additional way of viewing aspects of our business that, when viewed with GAAP results, provide a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three and six months ended March 31, 2021 and 2020 were as follows:

 

 

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

Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

Miscellaneous Non-GAAP Financial Measures

 

   

2021 Q2

 

2020 Q2

 

   

 

 

 

 

   

(in millions)

Net income (loss)

   

$

5.3

 

 

$

(40.9

)

Interest expense

   

5.5

 

 

5.9

 

Interest income

   

(0.6

)

 

(0.9

)

Income tax expense

   

1.5

 

 

6.7

 

Depreciation and amortization

   

8.1

 

 

7.8

 

EBITDA

   

$

19.8

 

 

$

(21.4

)

 

Total

Revenues

 

Net

Revenues

 

Income

Before Tax

 

Tax Effect

 

Net

Income

 

Diluted EPS

 

EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021 Q2 Reported

$

184.9

 

 

$

113.7

 

 

$

6.8

 

 

$

1.5

 

 

$

5.3

 

 

$

0.10

 

 

$

19.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition expenses

 

 

 

 

0.2

 

 

 

 

0.2

 

 

 

 

0.2

 

Non cash interest

 

 

 

 

3.4

 

 

0.8

 

 

2.6

 

 

0.05

 

 

 

Non-recurring tax expense

 

 

 

 

 

 

(1.4

)

 

1.4

 

 

0.03

 

 

 

Constant currency impact

0.6

 

 

0.4

 

 

 

 

 

 

0.1

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021 Q2 Adjusted

$

185.5

 

 

$

114.1

 

 

$

10.4

 

 

$

0.9

 

 

$

9.5

 

 

$

0.17

 

 

$

20.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

Revenues

 

Net

Revenues

 

(Loss) Income

Before Tax

 

Tax Effect

 

Net (Loss)

Income

 

Diluted EPS

 

EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020 Q2 Reported

$

223.3

 

 

$

127.4

 

 

$

(34.1

)

 

$

6.8

 

 

$

(40.9

)

 

$

(0.74

)

 

$

(21.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Termination of non-core software project

 

 

 

 

0.5

 

 

(0.1

)

 

0.4

 

 

0.01

 

 

0.5

 

Lobbying expense

 

 

 

 

0.2

 

 

 

 

0.2

 

 

 

 

0.2

 

Non-recurring tax expense

 

 

 

 

 

 

1.9

 

 

1.9

 

 

0.03

 

 

 

Impairment of goodwill, intangible assets and other

 

 

 

 

47.1

 

 

(1.7

)

 

45.4

 

 

0.83

 

 

47.1

 

Non cash interest

 

 

 

 

3.3

 

 

(0.7

)

 

2.6

 

 

0.05

 

 

 

Constant currency impact

 

 

 

 

(0.3

)

 

 

 

(0.3

)

 

(0.01

)

 

(0.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020 Q2 Adjusted

$

223.3

 

 

$

127.4

 

 

$

16.6

 

 

$

7.2

 

 

$

9.4

 

 

$

0.17

 

 

$

26.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2021 Q2:  

U.S. Dollar

Amount

 

Percentage

Change YOY

 

 

 

 

 

 

 

(in millions)

 

 

Consolidated revenue

 

$

184.9

 

 

(17

)%

Currency exchange rate fluctuations

 

0.6

 

 

 

Constant currency consolidated revenue

 

$

185.5

 

 

(17

)%

 

 

 

 

 

Consolidated net revenue

 

$

113.7

 

 

(11

)%

Currency exchange rate fluctuations

 

0.4

 

 

 

Constant currency consolidated net revenue

 

$

114.1

 

 

(10

)%

 

 

 

 

 

Consolidated net inventory

 

$

86.2

 

 

(50

)%

Currency exchange rate fluctuations

 

(1.7

)

 

 

Constant currency consolidated net inventory

 

$

84.5

 

 

(51

)%

 

 

 

 

 

Latin America Pawn net revenue

 

$

21.5

 

 

(17

)%

Currency exchange rate fluctuations

 

0.4

 

 

 

Constant currency Latin America Pawn net revenue

 

$

21.9

 

 

(15

)%

 

 

 

 

 

Latin America Pawn PLO

 

$

29.9

 

 

(22

)%

Currency exchange rate fluctuations

 

(2.8

)

 

 

Constant currency Latin America Pawn PLO

 

$

27.1

 

 

(29

)%

 

 

 

 

 

Latin America Pawn PSC revenues

 

$

13.9

 

 

(25

)%

Currency exchange rate fluctuations

 

0.2

 

 

 

Constant currency Latin America Pawn PSC revenues

 

$

14.1

 

 

(24

)%

 

 

 

 

 

Latin America Pawn merchandise sales

 

$

21.4

 

 

(22

)%

Currency exchange rate fluctuations

 

0.4

 

 

 

Constant currency Latin America Pawn merchandise sales

 

$

21.8

 

 

(20

)%

 

 

 

 

 

Latin America Pawn segment profit before tax

 

$

2.6

 

 

109

%

Currency exchange rate fluctuations

 

0.1

 

 

 

Constant currency Latin America Pawn segment profit before tax

 

$

2.7

 

 

(54

)%

 


© Business Wire 2021
All news about EZCORP, INC.
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More news
Financials (USD)
Sales 2021 709 M - -
Net income 2021 1,11 M - -
Net Debt 2021 - - -
P/E ratio 2021 282x
Yield 2021 -
Capitalization 394 M 394 M -
Capi. / Sales 2021 0,56x
Capi. / Sales 2022 0,48x
Nbr of Employees 5 900
Free-Float 90,6%
Chart EZCORP, INC.
Duration : Period :
EZCORP, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends EZCORP, INC.
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 2
Average target price 6,75 $
Last Close Price 7,05 $
Spread / Highest target 13,5%
Spread / Average Target -4,26%
Spread / Lowest Target -22,0%
EPS Revisions
Managers and Directors
NameTitle
Jason A. Kulas President, Chief Executive Officer & Director
Timothy K. Jugmans CFO, Treasury, VP-Mergers & Acquisitions
Philip Ean Cohen Executive Chairman
Keith Robertson Chief Information Officer
Nicole Swies Chief Revenue & Operations Officer
Sector and Competitors
1st jan.Capitalization (M$)
EZCORP, INC.47.18%394
BAJAJ FINANCE LIMITED0.00%49 778
SYNCHRONY FINANCIAL42.64%28 795
ORIX CORPORATION22.94%21 554
MUTHOOT FINANCE LIMITED25.12%8 289
ONEMAIN HOLDINGS, INC.24.98%8 094