Business
EZCORP Reports Fourth Quarter and Full Year Fiscal 2023 Results
Strong Consumer Demand Driving Record Pawn Loans Outstanding and Revenue to Over $1 Billion for the Year AUSTIN, Texas--(BUSINESS WIRE)-- EZCORP, Inc.
About this update from Ezcorp, Inc.
[{"type":"text","content":"\nStrong Consumer Demand Driving Record Pawn Loans Outstanding and Revenue to Over $1 Billion for the Year\n\n\n AUSTIN, Texas--(BUSINESS WIRE)--\nEZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its fourth quarter and full year ended September 30, 2023.\n\n\nUnless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles (“GAAP”) and comparisons shown are to the same period in the prior year.\n\n\nFOURTH QUARTER AND FULL YEAR HIGHLIGHTS\n\n\n\nPawn loans outstanding (PLO) up 17% to $245.8 million.\n\n\n\nTotal revenue increased 16% for the quarter and 18% for the full year, while gross profit1 increased 16% for the quarter and 15% for the full year.\n\n\n\nMerchandise sales gross margin remains within our targeted range at 36% for both the quarter and full year.\n\n\n\nNet income for the quarter was $10.3 million, an increase of $2.9 million. Net income for the year was $38.5 million, a decrease of $11.7 million. The majority of the decrease was driven by our $26.3 million (after tax) share of the one-time, non-cash goodwill impairment and other discrete adjustments recognized by Cash Converters International, which we primarily recorded in our second quarter.\n\n\n\nDiluted earnings per share was $0.15 for the quarter, up from $0.11 and for the year was $0.53 down from $0.70. On an adjusted basis1, diluted earnings per share for the quarter was $0.23, compared to $0.15, and for the year was $0.92, compared to $0.75.\n\n\n\nReturn on earning assets (ROEA) remains strong at 157% for the quarter and 161% for the full year.\n\n\n\nCEO COMMENTARY AND OUTLOOK\n\n\nLachie Given, Chief Executive Officer, stated, “Due to our team's relentless focus on superior execution and operational excellence, we achieved another quarter of outstanding financial results. PLO, revenues, and merchandise sales all reached new records for the fourth quarter and for the year.\n\n\n“We added 21 stores during the quarter, further expanding our store footprint. Two of the new stores were acquired in the U.S. and 19 were opened in Latin America. Ten of those were opened in Mexico, taking our store count there to 549; seven were in Guatemala, expanding our market leadership there to 117 stores; and the remaining 2, ...