Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — Q1 FY2022 Earnings Presentation
27 slides from Ezcorp's earnings presentation, February 2022
Slide 1: First Quarter Fiscal 2022 Earnings
FIRST QUARTER FISCAL 2022 EARNINGS FEBRUARY 2022
Slide 2: Preliminary Statements
PRELIMINARY STATEMENTS FORWARD LOOKING STATEMENTS OTHER AVAILABLE INFORMATION ADJUSTED INFORMATION This document contains certain forward-looking This information should be read in conjunction Unless otherwise specified, all amounts in this statements. These statements are based on the with, and not
Slide 3: Company Overview
COMPANY OVERVIEW Leader in Pawn and Pre-Owned and Recycled Retail 1,149 stores in 5 countries 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 locat
Slide 4: Company Overview: People, Pawn, Passion
COMPANY OVERVIEW People, Pawn, Passion • Engaged workforce • Refined talent and performance management programs • Enhanced staffing strategies • Strengthened cultural alignment Ready to Meet Our Customers’ Needs • Cash on hand to fund pawn demand • Provider of affordable pre-owned and recycled gener
Slide 5: Our Path to Strengthen and Grow the Core
OUR PATH TO STRENGTHEN AND GROW THE CORE Q1 FY22 Progression Toward Our Strategic Goals Team Members The most passionate, productive and tenured team in the industry Customer Focus • Engaged & incentivized A passion for pawnbroking and workforce solving customer needs • Global development • Launched
Slide 6: Q1 FY22 Key Financial Themes
Q1 FY22 KEY FINANCIAL THEMES PLO Continues to Increase, Driving Higher Revenue & Earnings EARNINGS FOCUS ON INVENTORY MANAGEMENT STRONG BALANCE SHEET • Net revenue of $132.3M up 22% • Merchandise sales gross profit up 27% • $233.3M cash balance down from driven by higher PSC and higher (same store s
Slide 7: Cost Efficiency and Simplification
COST EFFICIENCY AND SIMPLIFICATION ($ millions) Cost Ratio Reductions • Q1 total expenses increased $10.4M Y/Y, mainly due to increase in transaction volume, but total expenses as a 1 percent of net revenues for the last 12 months (LTM) as compared to LTM Dec FY21 decreased from 92% to 84%. • Due to
Slide 8: Strengthen the Core
STRENGTHEN THE CORE Focus on People and Systems to Drive Increased Earnings People, Pawn, Passion Technology, Process Efficiency • Enhanced staffing strategies used to attract and retain • Launched the fully POS-integrated EZ+ Rewards program talent to positively impact store vacancy rates • Improve
Slide 9: Innovate and Grow
INNOVATE AND GROW Broaden Customer Engagement to Serve More Customers, More Frequently LANA è EZ+ GROW CUSTOMER BASE STORE COUNT • Online extensions grew to 13% of total • Online inventory showcase test continues, extension payments with more than we have listed over 33,000 items online 356,000 paym
Slide 10: Q1 FY22 ESG Highlights
Q1 FY22 ESG HIGHLIGHTS Our Business is Part of the Circular Economy • Procured over 1.7 million pre-owned items through pawn forfeitures and direct purchasing from customers • Sold more than 1.4 million pre-owned items: ◦ Over 0.8 million items in the consumer electronics, camera and household goods
Slide 11: Adoption of New Convertible Accounting Rules
Adoption of New Convertible Accounting Rules ($ millions, except per share amounts) • Adoption of new accounting standards for convertible Q1 notes in ASU 2020-06 FY22 FY21 • Under the new standard the dilutive effect of the 1 Basic earnings per common share: Convertible Notes on EPS is accounted fo
Slide 12: Financial Results - Consolidated
FINANCIAL RESULTS - CONSOLIDATED ($ millions) Q1 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICE CHARGES • PLO balance of $177.3M, up 20% $180 Y/Y. On a same store basis, PLO increased 16% Y/Y and 1% $160 $50 sequentially. Now within 14% of end $177.3 $76.1 of FY19 same store PLO balances as $140 $63
Slide 13: Financial Results - U.S. Pawn
FINANCIAL RESULTS – U.S. PAWN ($ millions) Q1 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICE CHARGES • PLO balance of $141.0M, up 16% $150 $60 Y/Y. On a same store basis, PLO increased 15% Y/Y and 4% $40 $100 sequentially $141.0 $50.2 $56.6 • PSC up 13% Y/Y driven by higher $121.9 $20 $50 average PL
Slide 14: Financial Results - Latin America Pawn
FINANCIAL RESULTS – LATIN AMERICA PAWN ($ millions) Q1 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICE CHARGES • PLO balance of $36.2M, up 40% Y/Y. $25 $40 On a same store basis, PLO increased 20% Y/Y and 8% decrease $30 $20 sequentially consistent with $20 $15 seasonality $36.2 $19.6 $25.9 $10 • PSC
Slide 15: Appendix
APPENDIX
Slide 16: Higher PLO & Revenue Drive Increased Earnings (GAAP)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS ($ millions, except per share amounts) Q1 GAAP Results Q1 % FY22 FY21 B/(W) Pawn Loans Outstanding $ 176.6 $ 147.9 19% Net revenue improvement primarily driven by higher PSC as a result of higher average PLO, and higher sales gross Total Revenue $ 221.0
Slide 17: Higher PLO & Revenue Drive Increased Earnings (Adjusted)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS ($ millions, except per share amounts) Q1 Adjusted Results Q1 % FY22 FY21 B/(W) Pawn Loans Outstanding $ 177.3 $ 147.9 20% Net revenue improvement primarily driven by higher PSC Total Revenue $ 221.5 $ 178.1 24% as a result of higher average PLO, and hi
Slide 18: Environmental, Social and Governance
ENVIRONMENTAL, SOCIAL AND GOVERNANCE Our Business is Unique, Essential and Sustainable We are committed to meeting our customers’ needs in a responsible manner and contributing to a sustainable future by limiting our environmental impact, serving underserved customers and communities and maintaining
Slide 19: Definition of Terms
DEFINITION OF TERMS Cash Converters International Limited, a publicly-traded company based in CCV Australia, in which EZCORP holds a minority interest ESG Environmental, Social and Governance GM General merchandise (non-jewelry) Latin America, including Mexico, Central LatAm America and South Americ
Slide 20: 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 21: GAAP to Non-GAAP Reconciliation Q1 - Consolidated
GAAP TO NON-GAAP RECONCILIATION Q1 – CONSOLIDATED* ($ millions, except per share amounts) Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base FY22 FY22 FY22 FY22 FY22 FY21 FY21 FY21 Revenues 221.0 — 221.0 0.5 221.5 178.1 — 178.1
Slide 22: GAAP to Non-GAAP Reconciliation Q1 - U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION Q1 – U.S. PAWN ($ millions) Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base FY22 FY22 FY22 FY22 FY22 FY21 FY21 FY21 Revenues 163.6 — 163.6 — 163.6 136.5 — 136.5 PSC Revenue 56.6 — 56.6 — 56.6
Slide 23: GAAP to Non-GAAP Reconciliation Q1 - Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION Q1 – LATIN AMERICA PAWN* ($ millions) Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base FY22 FY22 FY22 FY22 FY22 FY21 FY21 FY21 Revenues 57.3 — 57.3 0.5 57.8 41.6 — 41.6 PSC Revenue 19.5 — 19.5
Slide 24: Consolidated Growth FY19-FY22 Reconciliation
CONSOLIDATED GROWTH FY19-FY22 RECONCILIATION* Consolidated Growth FY19-FY21 Reconciliation* ($ millions) FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Continuing Ops PBT (4.7) 5.0 3.1 0.3 3.7 3.0 (34.2) (10.2) (28.7) (70.1) Add Back Net Interest 5.5 5.5 6.7 4.0 21.6
Slide 25: Pawn Businesses FY19-FY22 Reconciliation
PAWN BUSINESSES FY19-FY22 RECONCILIATION* Pawn Businesses FY18-FY21 Reconciliation* ($ millions) FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY21 FY22 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 U.S. Pawn PBT 27.4 28.4 23.6 22.2 101.7 28.6 20.4 16.5 7.7 73.1 20.7 25.7 1
Slide 26: Constant Currency
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
Slide 27: Thank You
EZCORP THANK YOU