Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — Q3 FY2022 Earnings Presentation
29 slides from Ezcorp's earnings presentation, August 2022
Slide 1: Third Quarter Fiscal 2022 Earnings
THIRD QUARTER FISCAL 2022 EARNINGS AUGUST 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 1,163 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 Q3 FY22 Progression Toward Our Strategic Goals Customer Focus A passion for pawnbroking and Team Members solving customer needs The most passionate, productive and tenured team in the industry • Continued expansion of points-based loyalty • Celebrated Global
Slide 6: Q3 FY22 Key Financial Themes
Q3 FY22 KEY FINANCIAL THEMES Record PLO driving Higher Revenue and Strong Earnings Momentum REVENUE & EARNINGS FOCUS ON INVENTORY MANAGEMENT STRONG BALANCE SHEET • Total revenues of $215.8, up 24%, • Same store sales up 14% and • $222.3M cash balance down from driven by higher sales and PSC merchand
Slide 7: Cost Efficiency and Simplification
COST EFFICIENCY AND SIMPLIFICATION ($ millions) Cost Ratio Reductions • Q3 total expenses increased $10.1M Y/Y, primarily due to increase in store count and labor increases, but 1 total expenses as a percent of gross profit for the last 12 months (LTM) as compared to LTM Jun FY21 decreased from 92%
Slide 8: Strengthen the Core
STRENGTHEN THE CORE Focus on People and Systems to Drive Increased Earnings People, Pawn, Passion Technology, Process Efficiency • Ongoing improvement of vacancy rates as a result of • Improved resiliency and quality of store infrastructure focused “hiring events” and decrease in COVID-19 positive ◦
Slide 9: Innovate and Grow
INNOVATE AND GROW Broaden Customer Engagement to Serve More Customers, More Frequently EZ+ GROW CUSTOMER BASE STORE COUNT • EZ+ Rewards growing members across • Online inventory showcase test continues, with US, Mexico and Guatemala 183 US stores participating and 13 stores offering a full eCommerce
Slide 10: Q3 FY22 ESG Highlights
Q3 FY22 ESG HIGHLIGHTS Our Business is Part of the Circular Economy Providing environmentally friendly • Procured 1.6 million pre-owned items through pawn forfeitures and retail experiences to our direct purchasing from customers customers through a network of • Sold approximately 1.4 million pre-ow
Slide 11: Financial Results – Consolidated
FINANCIAL RESULTS – CONSOLIDATED ($ millions) Q3 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICE CHARGES • PLO balance up 30% in total and $233.1 $220 $240 on a same store basis; now 5% $187.4 $200 higher than Q3 FY19 same store $180 $180 PLO balance $160 $120 • PSC up 33% driven by same-store $204.7
Slide 12: Financial Results – U.S. Pawn
FINANCIAL RESULTS – U.S. PAWN ($ millions) Q3 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICE CHARGES $174.7 • PLO balance up 36% in total and $200 on a same store basis $160 $143.8 $150 $120 • PSC up 35% driven by higher average PLO for the quarter $100 $80 $159.7 • Merchandise sales up 11% in $117.
Slide 13: Financial Results – Latin America Pawn
FINANCIAL RESULTS – LATIN AMERICA PAWN ($ millions) Q3 HIGHLIGHTS PAWN LOANS OUTSTANDING PAWN SERVICE CHARGES • PLO balance up 13%. On a same $58.5 $50 $60 store basis, PLO increased 10% $40 $43.5 $45 • PSC up 28% driven by increase in $30 store count and higher average PLO for the quarter $20 $40.0
Slide 14: Appendix
APPENDIX
Slide 15: Higher PLO & Revenue Drive Increased Earnings (GAAP)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS ($ millions, except per share amounts) Q3 GAAP Results Q3 %△ YTD %△ 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 $ 204.2 $ 157.2 30% $ 204.2 $ 157.2 30% PLO,
Slide 16: Higher PLO & Revenue Drive Increased Earnings (Adjusted)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS ($ millions, except per share amounts) Q3 Adjusted Results Q3 %△ YTD %△ 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 $ 204.7 $ 157.2 30% $ 204.7 $ 157.2 30% P
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 FY22 FY22 FY22 FY22 FY22 FY21 FY21 FY21 Revenues 215.8 — 215.8 — 215.8 174.0 — 174.0 P
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 FY22 FY22 FY22 FY22 FY22 FY21 FY21 FY21 Revenues 158.8 — 158.8 — 158.8 130.4 — 130.4 PSC Revenue 59.3 — 59.3 — 59.3
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 FY22 FY22 FY22 FY22 FY22 FY21 FY21 FY21 Revenues 57.1 — 57.1 — 57.0 43.5 — 43.5 PSC Revenue 21.0 — 21.0 —
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 FY22 FY22 FY22 FY22 FY22 FY21 FY21 FY21 Revenues 652.8 — 652.8 0.7 653.5 537.1 — 537.
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 FY22 FY22 FY22 FY22 FY22 FY21 FY21 FY21 Revenues 484.7 — 484.7 — 484.7 414.0 — 414.0 PSC Revenue 174.7 — 174.7 — 17
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 FY22 FY22 FY22 FY22 FY22 FY21 FY21 FY21 Revenues 168.0 — 168.0 0.7 168.7 122.8 — 122.8 PSC Revenue 58.3 —
Slide 26: 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 27: 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 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 U.S. Pawn PBT 27.4 28.4 23.6 22.2 101.7 28.6 20.4 16.5 7.7
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