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AUSTIN, Texas--(BUSINESS WIRE)-- 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
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 |
|
SEGMENT RESULTS
U.S. Pawn
Latin America Pawn
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 |
)% |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210505006089/en/
Email: Investor_Relations@ezcorp.com Phone: (512) 314-2220
Source: EZCORP, Inc.
