Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — Q3 2023 Earnings Presentation
29 slides from Ezcorp's earnings presentation, Aug 3, 2023
Slide 1: Third Quarter Fiscal 2023 Earnings
THIRD QUARTER FISCAL 2023 EARNINGS AUGUST 2023
Slide 2: Preliminary Statements
PRELIMINARY STATEMENTS Forward Looking Statements Other Available Information Comparisons This presentation contains certain forward- This information should be read in All comparisons in this presentation are looking statements. These statements are conjunction with, and not in lieu of, the relativ
Slide 3: Company Overview: Leader in Pawn and Pre-Owned and Recycled Retail
COMPANY OVERVIEW Leader in Pawn and Pre-Owned and Recycled Retail Formed in 1989, EZCORP has grown 1,212 stores in 5 countries 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 • Increasing reach and access to financial services in local store neighborhoods with bu
Slide 5: Our Path to Strengthen and Grow the Core
OUR PATH TO STRENGTHEN AND GROW THE CORE Q3 FY23 Progression Toward Our Strategic Goals Team Members Customer Focus The most passionate, productive A passion for pawnbroking and and tenured team in the industry solving customer needs • Achieved 91% participation in • Reached 3.3M global members in G
Slide 6: Q3 FY23 Key Financial Themes
Q3 FY23 KEY FINANCIAL THEMES PLO & Merchandise Sales Continue to Drive Record Revenues and Earnings Growth Revenue & Earnings Focus on Inventory Management Strong Balance Sheet • Record Q3 total revenues of • Same store sales up 7% • $238.0M cash balance, down from $243.1M $249.5M, up 16%, driven by
Slide 7: EBITDA Margin Focus
EBITDA MARGIN FOCUS ($ millions) Q3 EBITDA Margins - Maintaining EBITDA Margins in a Challenging Environment Consolidated $150 13% 13% 13% 13% 12% $100 $50 • LTM EBITDA Margin decreased to 12% $0 LTM Jun FY22 LTM Sep FY22 LTM Dec FY23 LTM Mar FY23 LTM Jun FY23 from 13% as compared to LTM Jun FY22 U.
Slide 8: Strengthen the Core
STRENGTHEN THE CORE Focus on People and Technology to Drive Increased Earnings People, Pawn, and Passion Technology, Process Efficiency • Launched new intranet for LatAm stores, providing enhanced • Modernizing pricing capabilities to drive faster transaction times and access to information and comm
Slide 9: Innovate and Grow
INNOVATE AND GROW Broaden Customer Engagement to Serve More Customers, More Frequently EZ+ Grow Customer Base Store Count • Grew EZ+ Rewards members to 3.3M • Increased global transacting customers by globally, with U.S. and Mexico each 7% surpassing 1.5M total members • Grew U.S. visits to our core
Slide 10: Q3 FY23 ESG Highlights
Q3 FY23 ESG HIGHLIGHTS Providing environmentally friendly retail experiences to our customers through aREDUCE, network of neighborhood REUSE, RECYCLE recommerce stores Q3 FY23 - U.S. RACE & ETHNICITY Contributing to a Circular Economy • Resold approximately 1.4M pre-owned general merchandise and jew
Slide 11: Financial Results – Consolidated
FINANCIAL RESULTS – CONSOLIDATED ($ millions) Q3 Highlights Pawn Loans Outstanding Pawn Service Charges • PLO balance for the quarter up $220 $300 $275.2 10% in total, 7% on a same store $250 $233.0 $200 basis $180 $200 • PSC up 14% driven by same-store $160 $223.8 $150 PLO growth and acquisitions $
Slide 12: Financial Results – U.S. Pawn
FINANCIAL RESULTS – U.S. PAWN ($ millions) Q3 Highlights Pawn Loans Outstanding Pawn Service Charges • PLO balance up 12% in total and $200 $250 $208.0 9% on a same store basis $200 $174.7 $150 • PSC up 16%, driven by higher $150 average PLO for the quarter $100 $159.7 $178.9 $100 • Merchandise sale
Slide 13: Financial Results – Latin America Pawn
FINANCIAL RESULTS – LATIN AMERICA PAWN ($ millions) Q3 Highlights Pawn Loans Outstanding Pawn Service Charges • PLO balance up 1%. On a same $50 $80 $67.1 store basis, PLO decreased 2%, $58.3 The quarter negatively effected by $40 $60 a change in Mexican law, which $30 $40 significantly increased pr
Slide 14: Appendix
EZCORP APPENDIX
Slide 15: Higher PLO & Revenue Drive Increased Earnings (GAAP)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS Q3 GAAP Results ($ millions, except per share amounts) Q3 %△ YTD %△ Gross profit improvement, primarily FY23 FY22 B/(W) FY23 FY22 B/(W) driven by higher PSC as a result of higher average PLO and higher sales gross profit Pawn Loans Outstanding $ 229.4 $
Slide 16: Higher PLO & Revenue Drive Increased Earnings (Adjusted)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS Q3 Adjusted Results ($ millions, except per share amounts) Q3 %△ YTD %△ Gross profit improvement, primarily FY23 FY22 B/(W) FY23 FY22 B/(W) driven by higher PSC as a result of higher average PLO and higher sales gross profit Pawn Loans Outstanding $ 223.
Slide 17: 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 18: 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 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 Q3 – Consolidated
GAAP TO NON-GAAP RECONCILIATION Q3 – CONSOLIDATED* ($ millions, except per share amounts) Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base FY23 FY23 FY23 FY23 FY23 FY22 FY22 FY22 Revenues 255.8 — 255.8 (6.3) 249.5 215.8 — 215
Slide 21: GAAP to Non-GAAP Reconciliation Q3 – U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION Q3 – U.S. PAWN ($ millions) Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base FY23 FY23 FY23 FY23 FY23 FY22 FY22 FY22 Revenues 184.1 — 184.1 — 184.1 158.8 — 158.8 PSC Revenue 68.8 — 68.8 — 68.8
Slide 22: GAAP to Non-GAAP Reconciliation Q3 – Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION Q3 – LATIN AMERICA PAWN* ($ millions) Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base FY23 FY23 FY23 FY23 FY23 FY22 FY22 FY22 Revenues 71.7 — 71.7 (6.3) 65.4 57.1 — 57.1 PSC Revenue 25.0 — 25.
Slide 23: GAAP to Non-GAAP Reconciliation YTD – Consolidated
GAAP TO NON-GAAP RECONCILIATION YTD – CONSOLIDATED* ($ millions, except per share amounts) Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base FY23 FY23 FY23 FY23 FY23 FY22 FY22 FY22 Revenues 778.6 — 778.6 (13.7) 764.9 652.8 — 6
Slide 24: GAAP to Non-GAAP Reconciliation YTD – U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION YTD – U.S. PAWN ($ millions) Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base FY23 FY23 FY23 FY23 FY23 FY22 FY22 FY22 Revenues 567.4 — 567.4 — 567.4 484.7 — 484.7 PSC Revenue 208.0 — 208.0 — 20
Slide 25: GAAP to Non-GAAP Reconciliation YTD – Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION YTD – LATIN AMERICA PAWN* ($ millions) Constant Adjusted Item Adjusted Currency Constant Item Adjusted Base Adjustments Base Impact Currency Base Adjustments Base FY23 FY23 FY23 FY23 FY23 FY22 FY22 FY22 Revenues 211.1 — 211.1 (13.7) 197.4 168.0 — 168.0 PSC Revenue 71.
Slide 26: Consolidated Growth FY20-FY23 Reconciliation
CONSOLIDATED GROWTH FY20-FY23 RECONCILIATION* Consolidated Growth FY19-FY21 Reconciliation* ($ millions) FY20 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY21 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Continuing Ops PBT 3.0 (34.2) (10.2) (28.7) (70.1) 5.5 6.8 (0.8) 4.5 16.1 Add Back Net Interest 4.5 4.9 4.8 5.1 19.
Slide 27: Pawn Businesses FY20-FY23 Reconciliation
PAWN BUSINESSES FY20-FY23 RECONCILIATION* Pawn Businesses FY18-FY21 Reconciliation* ($ millions) FY20 FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY22 FY23 FY23 FY23 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 U.S. Pawn PBT 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