EZCORP Reports Second 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 second quarter ended March 31, 2020.\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\n“These are difficult times for our people, our customers, the communities we are in and for all of us as we try to understand and manage the impacts of the COVID-19 pandemic. We remain focused on the health and safety of our people and customers and ensuring we are there to help them manage their way through this crisis. Given the challenges in this environment, we are pleased to report that EZCORP entered this crisis in a position of strength, with fiscal second quarter revenue ahead of last year, and a strong and growing cash balance that positions us exceptionally to serve our customers’ needs,” said EZCORP Chief Executive Officer Stuart Grimshaw.\n\n\nHIGHLIGHTS FOR SECOND QUARTER OF FISCAL 2020\n\n\n\nTotal revenues for the quarter were up 4% to $223.3 million, and up 5% on an adjusted basis¹. Revenue growth was driven by strong retail demand during the tax refund season and continuing into March with early impacts of the COVID-19 crisis as customers purchased items for working and schooling from home. This drove an increase in cash from retain sales and a decrease in loan demand. Pawn loans outstanding at the end of the quarter were down 7.5% from the prior-year quarter (4.6% reduction on a constant currency basis). Since the end of March, the decline in loan balances has accelerated and is continuing.\n\n\nOperations expenses declined by 2% to $88.4 million (down 1% to $88.7 million on an adjusted basis) as a result of expense control measures and even though total store count grew by 3%.\n\n\nIncome before taxes was $(34.1) million, a decrease of $39.1 million from the prior-year quarter, including a non-cash asset impairment charge of $47.1 million (pre-tax) discussed below. On an adjusted basis income before income taxes was $16.7 million, an increase of 12% from the prior year. Diluted earnings per share was $(0.74), a decrease of $(0.80) from the prior-year quarter. On an adjusted basis, diluted earnings per share...

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