Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — FY2022 Earnings Presentation
30 slides from Ezcorp's earnings presentation, November 2022
Slide 1: Fourth Quarter and Full Year Fiscal 2022 Earnings
FOURTH QUARTER AND FULL YEAR FISCAL 2022 EARNINGS NOVEMBER 2022
Slide 2: Preliminary Statements
PRELIMINARY STATEMENTS FORWARD LOOKING STATEMENTS OTHER AVAILABLE INFORMATION COMPARISONS This presentation contains certain forward-looking This information should be read in conjunction statements. These statements are based on the with, and not in lieu of, the company’s annual, All comparisons in
Slide 3: Company Overview
COMPANY OVERVIEW Leader in Pawn and Pre-Owned and Recycled Retail 1,175 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 Q4 FY22 Progression Toward Our Strategic Goals Team Members Customer Focus The most passionate, productive and A passion for pawnbroking and solving tenured team in the industry customer needs • Celebrated Team Member • Continued expansion of points- apprecia
Slide 6: Q4 FY22 Key Financial Themes
Q4 FY22 KEY FINANCIAL THEMES Record Year End PLO driving Higher Revenue and Strong Earnings Momentum REVENUE & EARNINGS FOCUS ON INVENTORY MANAGEMENT STRONG BALANCE SHEET • Total revenues of $233.9M, up 22%, • Same store sales up 19% and • $206.0M cash balance down from $222.3M driven by higher sale
Slide 7: Cost Efficiency and Simplification
COST EFFICIENCY AND SIMPLIFICATION ($ millions) Q4 Cost Ratios • Total expenses increased $11.1M Y/Y, primarily due to labor increases, but total expenses as a percent of gross profit for the last 12 months (LTM) as compared to LTM Sep FY21 decreased from 86% to 80% • Store expenses increased $8.0M
Slide 8: Strengthen the Core
STRENGTHEN THE CORE Focus on People and Systems to Drive Increased Earnings People, Pawn, Passion Technology, Process Efficiency • Address decreasing vacancy rates through ongoing focus • Improved resiliency and quality of store infrastructure of retention and concentrated LatAm compensation ◦ Core
Slide 9: Innovate and Grow
INNOVATE AND GROW Broaden Customer Engagement to Serve More Customers, More Frequently EZ+ GROW CUSTOMER BASE STORE COUNT • Grew EZ+ Rewards members to 1.9 • Online inventory showcase test continues, million globally and launched Honduras with 183 US stores participating and El Salvador in Q4. • Gre
Slide 10: FY22 ESG Highlights
FY22 ESG HIGHLIGHTS Contributing to a Circular Economy • Resold over 5.6 million pre-owned general merchandise and jewelry items that were procured through direct purchasing from customers and pawn forfeitures back into the local economies, extending the useful life of these products. Waste Disposal
Slide 11: FY22 ESG Highlights
FY22 ESG HIGHLIGHTS FY22 - US RACE & ETHNICITY Improving Team Member Experience • Completed Global Talent Review and Succession Planning for field Team Members in the US and LATAM. • Enhanced global training and development programs to improve Team Member learning. • Implemented “Next Level Training
Slide 12: Financial Results – Consolidated
FINANCIAL RESULTS – CONSOLIDATED ($ millions) Q4 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICE CHARGES • PLO balance up 19% in total, and $220 $321.2 on a same store basis $300 $260.2 $200 $240 • PSC up 21% driven by same-store $180 PLO growth and acquisitions $180 $160 $209.5 $120 • Merchandise sa
Slide 13: Financial Results – U.S. Pawn
FINANCIAL RESULTS – U.S. PAWN ($ millions) Q4 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICE CHARGES $241.0 • PLO balance up 20% in total, and $200 $240 on a same store basis $196.7 $200 $150 • PSC up 25% driven by higher $160 average PLO for the quarter $100 $120 $163.5 $80 • Merchandise sales up 1
Slide 14: Financial Results – Latin America Pawn
FINANCIAL RESULTS – LATIN AMERICA PAWN ($ millions) Q4 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICE CHARGES • PLO balance up 15%. On a same $80.2 $50 store basis, PLO increased 13% $75 $63.5 $40 • PSC up 9% driven by increase in $60 $30 store count and higher average PLO $45 for the quarter $46.0
Slide 15: Appendix
APPENDIX
Slide 16: Higher PLO & Revenue Drive Increased Earnings: GAAP Results
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS Q4 GAAP Results ($ millions, except per share amounts) Q4 %△ FY %△ FY22 FY21 B/(W) FY22 FY21 B/(W) Gross profit improvement primarily driven by higher PSC as a result of higher average Pawn Loans Outstanding $ 210.1 $ 175.9 19% $ 210.1 $ 175.9 19% PLO, a
Slide 17: Higher PLO & Revenue Drive Increased Earnings: Adjusted Results
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS Q4 Adjusted Results ($ millions, except per share amounts) Q4 %△ FY %△ FY22 FY21 B/(W) FY22 FY21 B/(W) Gross profit improvement primarily driven by higher PSC as a result of higher average Pawn Loans Outstanding $ 209.5 $ 175.9 19% $ 209.5 $ 175.9 19% PL
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 Q4 – Consolidated
GAAP TO NON-GAAP RECONCILIATION Q4 – 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 233.4 — 233.4 0.5 233.9 192.4 — 192.4
Slide 22: GAAP to Non-GAAP Reconciliation Q4 – U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION Q4 – 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 174.0 — 174.0 — 174.0 139.6 — 139.6 PSC Revenue 66.3 — 66.3 — 66.3
Slide 23: GAAP to Non-GAAP Reconciliation Q4 – Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION Q4 – 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 59.4 — 59.4 0.5 59.8 52.7 — 52.7 PSC Revenue 21.5 — 21.5
Slide 24: GAAP to Non-GAAP Reconciliation FY – Consolidated
GAAP TO NON-GAAP RECONCILIATION FY – 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 886.2 — 886.2 1.2 887.4 729.6 — 729.6
Slide 25: GAAP to Non-GAAP Reconciliation FY – U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION FY – 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 658.8 — 658.8 — 658.8 553.6 — 553.6 PSC Revenue 241.0 — 241.0 — 241
Slide 26: GAAP to Non-GAAP Reconciliation FY – Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION FY – 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 227.4 — 227.4 1.2 228.6 175.6 — 175.6 PSC Revenue 79.9 —
Slide 27: 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 28: 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 FY22 FY22 FY22 FY22 Q1 Q2 Q3 Q4 FY 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.
Slide 29: 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 30: Thank You
EZCORP THANK YOU