EZCORP Reports First Quarter Fiscal Year 2020 Results

About this update from Ezcorp, Inc.

[{"type":"text","content":" AUSTIN, Texas--(BUSINESS WIRE)--\nEZCORP, Inc. (NASDAQ:EZPW) today announced results for its first quarter ended December 31, 2019.\n\n\nAll amounts in this release are from EZCORP continuing operations and 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.\n\n\nHIGHLIGHTS FOR FIRST QUARTER OF FISCAL 2020\n\n\n\nTotal revenues for the quarter were up 3% to $222.4 million, reflecting record revenues in our pawn business. Merchandise sales increased 5% from the prior-year quarter, complemented by 1% growth in pawn service charge (PSC) revenue.\n\n\nAs anticipated, efforts to rebalance our inventory profile to drive long-term profitability depressed merchandise sales margin by approximately 260 basis points to 34%, slightly below our target range of 35-38%. Aged general merchandise in U.S. Pawn was reduced 23% from the prior-year quarter, resulting in a $1.3 million, or 3%, decrease in merchandise sales gross profit.\n\n\nThe Latin America segment contribution improved 20% to $8.1 million, with a 21% increase in merchandise sales and a 15% growth in total revenues. PSC increased 7% on a 74 basis point improvement in monthly yield reflecting the quality of the loan portfolio.\n\n\nContinued focus on expense control drove a $0.2 million improvement in operations expenses despite a 2% growth in store count since the prior-year quarter. Corporate expense increased $4.3 million, including $2.0 million of costs not expected to recur in future periods.\n\n\nIncome from continuing operations before income taxes was $3.0 million, up $7.7 million compared to a $4.7 million loss in the prior-year quarter, and diluted earnings per share were $0.02 versus a loss of $0.06 in the prior-year quarter. Year-over-year comparisons were impacted by charges of $7.1 million in the current quarter and $2.9 million in the prior-year quarter for our portion of legal settlements reached by Cash Converters International Limited and a $13.3 million impairment of the Cash Converters investment in the prior-year quarter. Excluding those items and adjusting for constant currency1, adjusted1 income from continuing operations before income taxes was $13.4 million compared to $20.2 million in the prior-year quarter, and...

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