Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — Q1 FY2021 Earnings Presentation
22 slides from Ezcorp's earnings presentation, Feb 4, 2021
Slide 1: First Quarter Fiscal 2021 Earnings
First Quarter Fiscal 2021 Earnings February 4, 2021
Slide 2: Preliminary Statements
Preliminary Statements Forward Looking Statements This document contains certain forward-looking statements. These statements are based on the company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, that address activit
Slide 3: Company Overview
Company Overview Formed in 1989, EZCORP has grown into a leading provider of pawn loans in the United States and Latin America. We also sell pre-owned merchandise through a broad network of retail locations. We are dedicated to building shareholder value by satisfying the short-term cash needs of ou
Slide 4: 2021 Q1 Key Financial Themes
2021 Q1 Key Financial Themes Positioning EZCORP for Positive Operating Leverage as Demand for Pawn Loans Returns • PLO balance of $148.9M at 12/31/20 up 11% from $133.7M at 9/30/20 • PLO Y/Y variance improved to -24% for Q1FY21 compared to -33% in the prior quarter and PLO Recovery -39% for Q3FY20 •
Slide 5: The Path Forward To Strengthen And Grow The Core
The Path Forward To Strengthen And Grow The Core As we continue to be our customers’ first and best choice for their short-term cash needs 5
Slide 6: Cost Reduction and Simplification
1 Cost Reduction and Simplification Continuous Process • We continue to execute on the strategic initiatives implemented in Q4FY20 and have increased the targeted annual cost savings from $12M+ to $13M+, mostly related to G&A expenses • In Q1FY21, while increasing PLO on a sequential basis by $15.2M
Slide 7: Strengthen the Core
2 Strengthen the Core Strategic focus on operating disciplines and modernization of critical IT systems People, Pawn & Passion Technology, Process Efficiency • Focusing on career paths, development • Leveraging POS2 to automate product pricing, programs, succession planning throughout the increasing
Slide 8: Innovate and Grow
3 Innovate and Grow Broaden customer engagement to service more customers, more frequently • Online extensions through lana.com doubled in transaction count and tripled in the amount of PSC collected when compared to Q4FY20 Lana • Layaway payments now available in select stores, with all US stores p
Slide 9: Financial Results - Consolidated
Financial Results - Consolidated • PLO balance of $148.9M, down 24% Y/ Y largely related to lingering COVID-19 headwinds • Merchandise sales down 14% Y/Y ◦ Q1FY21 same store sales down 14.1% ◦ Merchandise sales gross profit up 2% due to higher margins related to improved inventory turnover particula
Slide 10: Financial Results – U.S. Pawn
Financial Results – U.S. Pawn • PLO down 21% Y/Y reflecting ongoing COVID-19 related headwinds • PSC down 22% driven by lower average PLO for the quarter partially offset by Y/Y improvement in PLO yield due to a higher redemption rate • Merchandise sales decreased 14% Y/Y for the quarter ◦ Q1FY21 sa
Slide 11: Financial Results – Latin America Pawn
Financial Results – Latin America Pawn • PLO down 33% to $27M reflecting ongoing COVID-19 related headwinds • PSC down 32% Y/Y driven by lower average PLO for the quarter partially offset by Y/Y improvement in PLO yield due to a higher redemption rate • Merchandise sales decreased 15% Y/Y for the qu
Slide 12: Appendix
Appendix EZCORP
Slide 13: Lower PLO Balance Pressures Net Revenue: EZCORP GAAP Results
Lower PLO Balance Pressures Net Revenue EZCORP GAAP Results Q1 % $ Millions FY21 FY20 B/(W) Pawn Loans Outstanding $ 147.9 $ 195.6 (24)% Total Revenue $ 178.1 $ 222.4 (20)% Q1FY21 net revenue down, primarily driven by lower PLO/PSC reflecting ongoing Net Revenue $ 108.4 $ 130.1 (17)% COVID-19 impac
Slide 14: Lower PLO Balance Weighs on EBITDA/EPS: Adjusted Results
Lower PLO Balance Weighs on EBITDA/EPS EZCORP Adjusted Results Q1 % $ Millions FY21 FY20 B/(W) Pawn Loans Outstanding $ 148.9 $ 195.6 (24)% Total Revenue $ 180.1 $ 222.4 (19)% Q1FY21 net revenue down, primarily driven by lower PLO/PSC reflecting ongoing COVID-19 Net Revenue $ 109.5 $ 130.1 (16)% im
Slide 15: 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 loan growth (stores open the SSLG entirety of comparable periods) Same store sales growth (stores op
Slide 16: 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 17: GAAP to Non-GAAP Reconciliation Q1 – Consolidated
GAAP to Non-GAAP Reconciliation Q1 – 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 178.1 — 178.1 2.0 180.1 222.4 — 222.4 PSC Revenue 63.5 — 63.5 0.7
Slide 18: GAAP to Non-GAAP Reconciliation Q1 – U.S. Pawn
GAAP to Non-GAAP Reconciliation Q1 – 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 136.5 — 136.5 — 136.5 165.6 — 165.6 PSC Revenue 50.2 — 50.2 — 50.2 64
Slide 19: GAAP to Non-GAAP Reconciliation Q1 – Latin America Pawn
GAAP to Non-GAAP Reconciliation Q1 – 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 41.6 — 41.6 2.0 43.6 55.4 — 55.4 PSC Revenue 13.3 — 13.3 0.
Slide 20: Consolidated Growth FY19-FY21 Reconciliation
Consolidated Growth FY19-FY21 Reconciliation* FY18 FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY19 $ Millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Continuing Ops PBT 19.7 17.5 15.5 2.9 55.5 (4.7) 5.0 3.1 0.3 3.7 Add Back Net Interest 1.6 1.6 3.0 4.6 10.8 5.5 5.5 6.7 4.0 21.6 Add Back Depreciation and Amortiza
Slide 21: Pawn Businesses FY18-FY21 Reconciliation
Pawn Businesses FY18-FY21 Reconciliation* FY18 FY18 FY18 FY18 FY18 FY19 FY19 FY19 FY19 FY19 FY20 FY20 FY20 FY20 FY20 FY21 $ Millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 U.S. Pawn PBT 27.8 28.2 21.3 25.5 102.7 27.4 28.4 23.6 22.2 101.7 28.6 20.4 16.5 7.7 73.1 20.7 Add Back Net Interest —
Slide 22: Constant Currency
Constant Currency In addition to the financial information prepared in conformity with accounting principles generally accepted in the United States ("GAAP"), we provide certain other non-GAAP financial information on a constant currency basis ("constant currency"). We use constant currency results