Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — FY2021 Earnings Presentation
29 slides from Ezcorp's earnings presentation, November 2021
Slide 1: Fourth Quarter and Full Year Fiscal 2021 Earnings
FOURTH QUARTER AND FULL YEAR FISCAL 2021 EARNINGS NOVEMBER 2021
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 1,148 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 Q4FY21 Progression Toward Our Strategic Goals Team Members The most passionate, productive Customer Focus and tenured team in the industry A passion for pawnbroking and • Engaged & incentivized solving customer needs workforce • Points-based loyalty • Enhance
Slide 6: Q4 FY21 Key Financial Themes
Q4 FY21 KEY FINANCIAL THEMES PLO Continues to Increase Driving Higher Earnings EARNINGS FOCUS ON INVENTORY MANAGEMENT STRONG BALANCE SHEET • Net revenue up 31% Y/Y driven by • Merchandise sales gross profit up • $253.7M cash balance down from higher PSC and higher sales gross 38% Y/Y due to higher s
Slide 7: Cost Reduction and Simplification
COST REDUCTION AND SIMPLIFICATION ($ millions) Achieved Targeted Cost Savings for the Year 1 • Execution of strategic initiatives started in Q4FY20 resulted in a $27.0M or 7% reduction in total expenses for FY21 on a normalized basis 2 • FY21 store expenses on a normalized basis reduced by $12.0M or
Slide 8: Strengthen the Core
STRENGTHEN THE CORE Focus on People and Systems to Drive Increased Earnings People, Pawn, Passion Technology, Process Efficiency • Strengthened staffing strategies used to identify and • Completed updates to our proprietary POS to support the retain talent to positively impact store vacancy rates la
Slide 9: Innovate and Grow
INNOVATE AND GROW Broaden Customer Engagement to Serve More Customers, More Frequently LANA è EZ+ GROW CUSTOMER BASE STORE COUNT • Online extensions grew to 11% of total • After launching the inventory showcase extension payments with more than test in May, we now have over 18,000 340,000 payments m
Slide 10: Environmental, Social and Governance (ESG)
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) Our Business is Unique, Essential and Sustainable We are committed to meeting our customers’ needs in a responsible manner and contributing to a sustainable future by limiting our environmental impact, serving underserved customers and communities and maint
Slide 11: Fiscal 2021 ESG Highlights
FISCAL 2021 ESG HIGHLIGHTS Our Business is Part of the Circular Economy • Procured over 7 million pre-owned items through pawn forfeitures and direct purchasing from customers • Sold more than 5 million pre-owned items: ◦ Over 2.8 million items in the consumer electronics, camera and household goods
Slide 12: Financial Results - Consolidated
FINANCIAL RESULTS - CONSOLIDATED ($ millions) Q4 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICES CHARGES • PLO balance of $173.6M, up 32% $272.6 $150 $300 $258.2 Y/Y. On a same store basis, PLO increased 27% Y/Y and 13% $100 $200 sequentially. Now within 16% of FY19 same store PLO balances as $173.6
Slide 13: Financial Results - US Pawn
FINANCIAL RESULTS – US PAWN ($ millions) Q4 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICES CHARGES • PLO balance of $135.9M, up 28% $150 $225 $210.1 Y/Y. On a same store basis, PLO $196.7 increased 27% Y/Y and 16% $100 $150 sequentially. Now within 14% of FY19 same store PLO balances as $135.9 comp
Slide 14: Financial Results - Latin America Pawn
FINANCIAL RESULTS – LATIN AMERICA PAWN ($ millions) Q4 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICES CHARGES • PLO balance of $37.7M, up 51% Y/Y. $40 $80 On a same store basis, PLO $62.6 $61.5 increased 29% Y/Y and 2% $30 $60 sequentially. Now within 23% of FY19 same store PLO balances as $20 $37.
Slide 15: Appendix
APPENDIX
Slide 16: Higher PLO Balances & Margins Drive Increased Earnings
HIGHER PLO BALANCES & MARGINS DRIVE INCREASED EARNINGS EZCORP GAAP Results Q4 % YTD % $ Millions FY21 FY20 B/(W) FY21 FY20 B/(W) Q4FY21 saw strong improvements in PSC Pawn Loans Outstanding $ 175.9 $ 131.3 34% $ 175.9 $ 131.3 34% and sales gross profit leading to a 33% improvement. Total Revenue $
Slide 17: Focus on the Core & Cost Reduction Driving Earnings
FOCUS ON THE CORE & COST REDUCTION DRIVING EARNINGS EZCORP Adjusted Results Q4 % YTD % $ Millions FY21 FY20 B/(W) FY21 FY20 B/(W) Pawn Loans Outstanding $ 173.6 $ 131.3 32% $ 173.6 $ 131.3 32% FY21 net revenue down, primarily driven Total Revenue $ 188.7 $ 166.8 13% $ 724.1 $ 822.8 (12)% by lower
Slide 18: 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 Stores open the entirety of the comparable periods GM General merchandise (non-jewelry) Par value of
Slide 19: 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 20: GAAP to Non-GAAP Reconciliation Q4 - Consolidated
GAAP TO NON-GAAP RECONCILIATION Q4 – 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 192.4 — 192.4 (3.7) 188.7 166.8 — 166.8 PSC Revenue 72.8 — 72.8 (
Slide 21: GAAP to Non-GAAP Reconciliation Q4 - U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION Q4 – 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 139.6 — 139.6 — 139.6 124.9 — 124.9 PSC Revenue 52.9 — 52.9 — 52.9 4
Slide 22: GAAP to Non-GAAP Reconciliation Q4 - Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION Q4 – 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 52.7 — 52.7 (3.7) 49.0 41.7 — 41.7 PSC Revenue 20.0 — 20.0
Slide 23: GAAP to Non-GAAP Reconciliation Full Year - Continuing Operations
GAAP TO NON-GAAP RECONCILIATION FULL YEAR – 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 729.6 — 729.6 (5.4) 724.1 822.8 — 822.8 PSC Reven
Slide 24: GAAP to Non-GAAP Reconciliation Full Year - U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION FULL YEAR – 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 553.6 — 553.6 — 553.6 638.8 — 638.8 PSC Revenue 196.7 — 196.7
Slide 25: GAAP to Non-GAAP Reconciliation Full Year - Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION FULL YEAR – 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 175.6 — 175.6 (5.4) 170.1 180.1 — 180.1 PSC Revenue
Slide 26: Consolidated Growth FY19-FY21 Reconciliation
CONSOLIDATED GROWTH FY19-FY21 RECONCILIATION* Consolidated Growth FY19-FY21 Reconciliation* FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 $ Millions 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 4
Slide 27: Pawn Businesses FY19-FY21 Reconciliation
PAWN BUSINESSES FY19-FY21 RECONCILIATION* Pawn Businesses FY18-FY21 Reconciliation* FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY21 $ Millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 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 18.2 20.9 8
Slide 28: 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 29: Thank You
EZCORP THANK YOU