Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — Q3 2021 Earnings Presentation
25 slides from Ezcorp's earnings presentation, Aug 5, 2021
Slide 1: Third Quarter Fiscal 2021 Earnings
Third Quarter Fiscal 2021 Earnings August 5, 2021
Slide 2: Preliminary Statements
Preliminary Statements Forward Looking Statements This document contains certain forward-looking statements. 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, that address activit
Slide 3: Company Overview
Company Overview Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise through a broad network of retail locations. We are dedicated to building shareholder value by satisfying the short-t
Slide 4: Our Path To Strengthen And Grow The Core
Our Path To Strengthen And Grow The Core Continuing Progress Toward Our Strategic Goals • Engaged workforce • Enhanced talent • Launched online programs showcase • Innovative recruitment • Improved online campaigns payment user • Demonstrated cultural experience improvement • Growing PLO & PSC • Inc
Slide 5: 2021 Q3 Key Financial Themes
2021 Q3 Key Financial Themes Positioning EZCORP for Positive Operating Leverage as PLO Continues to Increase • Adjusted EPS of $(0.03) compared to $(0.02) in Q3FY20, as improved PBT was offset by higher income taxes Earnings • Net revenue up 1% Y/Y driven by higher PSC partially offset by lower merc
Slide 6: Cost Reduction and Simplification
1 Cost Reduction and Simplification Continuous Process • We continue to execute on the strategic initiatives implemented since Q4FY20 and are on target to achieve annual cost savings of $14M+, mostly related to G&A expenses. • Our focus on cost reduction and improving productivity has led to store e
Slide 7: Strengthen the Core
2 Strengthen the Core Strategic Focus on Operating Disciplines and Modernization of Critical IT Systems People, Pawn & Passion Technology, Process Efficiency • Launched Engagement Survey to benchmark Team • Focused on creating greater efficiencies in stores Member engagement, understand strengths an
Slide 8: Innovate and Grow
3 Innovate and Grow Broaden Customer Engagement to Service More Customers, More Frequently • Online extensions grew to 9% of total extension payments with more than 130,000 payments made online in the quarter Lana • Over 5,000 layaway payments made online, with participation growing each month • Rel
Slide 9: Financial Results - Consolidated
Financial Results - Consolidated • PLO balance of $153.2M, up 35% Y/Y. PAWN LOANS OUTSTANDING PAWN SERVICES CHARGES On a same store basis, PLO increased $200 $300 31% year-over-year and 21% $250 $217.4 sequentially. $186.7 ($ millions) $150 $200 ($ millions) $150 $100 • PSC up 12% driven by higher a
Slide 10: Financial Results – U.S. Pawn
Financial Results – U.S. Pawn • PLO balance of $117.2M, up 35% Y/Y. PAWN LOANS OUTSTANDING PAWN SERVICES CHARGES On a same store basis, PLO increased 34% year-over-year and 22% $150 $250 sequentially. $200 $166.9 ($ millions) $143.8 ($ millions) $100 $150 • PSC up 7% driven by higher average $100 PL
Slide 11: Financial Results – Latin America Pawn
Financial Results – Latin America Pawn • PLO balance of $36.0M, up 36% Y/Y. PAWN LOANS OUTSTANDING PAWN SERVICES CHARGES On a same store basis, PLO increased $40 $75 20% year-over-year and 17% $60 $50.5 ($ millions) sequentially. $30 $42.9 ($ millions) $45 $20 $30 • PSC up 30% Y/Y driven by higher $
Slide 12: Appendix
Appendix EZCORP
Slide 13: Higher PLO Balances Drive Increased Net Income – GAAP Results
Higher PLO Balances Drive Increased Net Income EZCORP GAAP Results Q3 % YTD % $ Millions FY21 FY20 B/(W) FY21 FY20 B/(W) Pawn Loans Outstanding $ 157.2 $ 113.2 39% $ 157.2 $ 113.2 39% Total Revenue $ 174.0 $ 210.2 (17)% $ 537.1 $ 656.0 (18)% FY21 YTD net revenue down, primarily Net Revenue $ 108.0
Slide 14: Lingering COVID Impact Weighs on EPS – Adjusted Results
Lingering COVID Impact Weighs on EPS EZCORP Adjusted Results Q3 % YTD % $ Millions FY21 FY20 B/(W) FY21 FY20 B/(W) Pawn Loans Outstanding $ 153.2 $ 113.2 35% $ 153.2 $ 113.2 35% Total Revenue $ 169.6 $ 210.2 (19)% $ 535.4 $ 656.0 (18)% FY21 YTD net revenue down, primarily driven by lower PSC refle
Slide 15: Definition of Terms
Definition of Terms PLO Pawn loans outstanding PSC Pawn service charges Latin America, including Mexico, Central LatAm America and South America POS2 Second generation point-of-sale system Same store loan growth (stores open the SSLG entirety of comparable periods) Same store sales growth (stores op
Slide 16: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation In addition to the financial information prepared in conformity with generally accepted accounting principles in the United States of America ("GAAP"), we provide certain other financial information that is adjusted to exclude the impact of restructuring and restateme
Slide 17: GAAP to Non-GAAP Reconciliation Q3 – Consolidated
GAAP to Non-GAAP Reconciliation Q3 – Consolidated* Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base $ Millions FY21 FY21 FY21 FY21 FY21 FY20 FY20 FY20 Revenues 174.0 — 174.0 (4.4) 169.6 210.2 — 210.2 PSC Revenue 60.4 — 60.4 (
Slide 18: GAAP to Non-GAAP Reconciliation Q3 – U.S. Pawn
GAAP to Non-GAAP Reconciliation Q3 – U.S. Pawn* Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base $ Millions FY21 FY21 FY21 FY21 FY21 FY20 FY20 FY20 Revenues 130.4 — 130.4 — 130.4 174.5 — 174.5 PSC Revenue 44.0 — 44.0 — 44.0 4
Slide 19: GAAP to Non-GAAP Reconciliation Q3 – Latin America Pawn
GAAP to Non-GAAP Reconciliation Q3 – Latin America Pawn* Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base $ Millions FY21 FY21 FY21 FY21 FY21 FY20 FY20 FY20 Revenues 43.5 — 43.5 (4.4) 39.1 34.8 — 34.8 PSC Revenue 16.4 — 16.4
Slide 20: GAAP to Non-GAAP Reconciliation YTD – Continuing Operations
GAAP to Non-GAAP Reconciliation YTD – Continuing Operations* Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base $ Millions FY21 FY21 FY21 FY21 FY21 FY20 FY20 FY20 Revenues 537.1 — 537.1 (1.7) 535.4 656.0 — 656.0 PSC Revenue 187
Slide 21: GAAP to Non-GAAP Reconciliation YTD – U.S. Pawn
GAAP to Non-GAAP Reconciliation YTD – U.S. Pawn* Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base $ Millions FY21 FY21 FY21 FY21 FY21 FY20 FY20 FY20 Revenues 414.0 — 414.0 — 414.0 513.9 — 513.9 PSC Revenue 143.8 — 143.8 — 143
Slide 22: GAAP to Non-GAAP Reconciliation YTD – Latin America Pawn
GAAP to Non-GAAP Reconciliation YTD – Latin America Pawn* Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base $ Millions FY21 FY21 FY21 FY21 FY21 FY20 FY20 FY20 Revenues 122.8 — 122.8 (1.7) 121.0 138.4 — 138.4 PSC Revenue 43.5 —
Slide 23: Consolidated Growth FY19-FY21 Reconciliation
Consolidated Growth FY19-FY21 Reconciliation* FY18 FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY19 $ Millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Continuing Ops PBT 19.7 17.5 15.5 2.9 55.5 (4.7) 5.0 3.1 0.3 3.7 Add Back Net Interest 1.6 1.6 3.0 4.6 10.8 5.5 5.5 6.7 4.0 21.6 Add Back Depreciation and Amortiza
Slide 24: Pawn Businesses FY18-FY21 Reconciliation
Pawn Businesses FY18-FY21 Reconciliation* FY18 FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 FY21 FY21 FY21 $ Millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 U.S. Pawn PBT 27.8 28.2 21.3 25.5 102.7 27.4 28.4 23.6 22.2 101.7 28.6 20.4 16.5 7.7 73.1 20.7 25.7 18.
Slide 25: Constant Currency
Constant Currency In addition to the financial information prepared in conformity with generally accepted accounting principles in the United States ("GAAP"), we provide certain other non-GAAP financial information on a constant currency basis ("constant currency"). We use constant currency results