EZCORP Reports Third Quarter Fiscal Year 2019 Results

About this update from Ezcorp, Inc.

[{"type":"text","content":" AUSTIN, Texas--(BUSINESS WIRE)--\nEZCORP, Inc. (NASDAQ: EZPW) today announced results for its third quarter ended June 30, 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 THIRD QUARTER OF FISCAL 2019\n\n\n\nTotal revenues for the quarter were up 1% to $202.5 million. Included in the GAAP results is a discrete $6.1 million adjustment in Latin America to correct the calculation of certain transaction tax liabilities in prior periods ($4.6 million of which reduced merchandise sales and $1.5 million of which increased interest expense). Adjusted1 total revenues increased 4% to $206.9 million, driven by continued growth in key pawn operating metrics including pawn loans outstanding (PLO), pawn service charges (PSC) and merchandise sales, across U.S. and Latin America.\n\n\n\n\nIncome before tax was $3.5 million, down 78%, and diluted earnings per share were $0.06, down 76%. These year-over-year comparisons were impacted primarily by a favorable litigation settlement in the prior-year quarter, the inclusion in the current quarter of costs related to certain growth investments, and other discrete items. Excluding those items and adjusting for constant currency2, adjusted income before tax was $15.0 million, up 16%, and adjusted diluted earnings per share were $0.18, up 13%.\n\n\n\n\nCash and cash equivalents ended the current quarter at $138.9 million, after the retirement of $195.0 million of convertible notes in June 2019 using cash on hand and continued investment in growth initiatives. During the quarter, the company completed the acquisition of seven pawn stores in Nevada for $7.0 million and collected another $7.3 million of principal under the Alpha Credit / Grupo Finmart notes.\n\n \n\n\n\n\nCEO COMMENTARY AND OUTLOOK\n\n\nChief Executive Officer Stuart Grimshaw commented, \"Current quarter activities delivered solid operating results highlighted by ongoing momentum across all geographies. Steady growth in PLO and slightly improving yields, reflecting the health of the loan balance, drove strong growth in our primary net revenue component, PSC. On an adjusted basis, EBITDA and EP...

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