Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — Q2 2023 Earnings Presentation
29 slides from Ezcorp's earnings presentation, May 4, 2023
Slide 1: Second Quarter Fiscal 2023 Earnings
SECOND QUARTER FISCAL 2023 EARNINGS MAY 2023
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 All comparisons in this presentation are relative to 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 1,199 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 Q2 FY23 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 • Ongoing enhancements to field • Reached 2.9M customers in our co
Slide 6: Q2 FY23 Key Financial Themes
Q2 FY23 KEY FINANCIAL THEMES PLO & Merchandise Sales Continue to Drive Higher Revenue and Adjusted Earnings Revenue & Earnings Focus on Inventory Management Strong Balance Sheet • Total revenues of $253.8M, up 17%, • Same store sales up 8% • $243.1M cash balance, up from $207.7M in driven by higher
Slide 7: EBITDA Margin Focus
EBITDA MARGIN FOCUS ($ millions) Q2 EBITDA Margins Consolidated $150 12% 13% 13% 13% 13% $100 $50 $0 • LTM EBITDA Margin increased to 13% LTM Mar FY22 LTM Jun FY22 LTM Sep FY22 LTM Dec FY23 LTM Mar FY23 from 12% as compared to LTM Mar FY22 U.S. Pawn $150 20% 21% 21% 21% 21% • U.S. Pawn LTM EBITDA Ma
Slide 8: Strengthen the Core
STRENGTHEN THE CORE Focus on People and Technology to Drive Increased Earnings People, Pawn, and Passion Technology, Process Efficiency • Launched new intranet for US stores, providing enhanced • Completed deployment of store network and system upgrades to access and clarity to relevant information
Slide 9: Innovate and Grow
INNOVATE AND GROW Broaden Customer Engagement to Serve More Customers, More Frequently EZ+ Grow Customer Base Store Count • Grew EZ+ Rewards members to 2.9M • Increased website visits for our core pawn globally, with U.S. and Mexico each brands by 13% over Q1, driven by online surpassing 1.3M total
Slide 10: Q2 FY23 ESG Highlights
Q2 FY23 ESG HIGHLIGHTS Providing environmentally friendly retail experiences to our customers through aREDUCE, network of neighborhood REUSE, RECYCLE recommerce stores Contributing to a Circular Economy Q2 FY23 - U.S. RACE & ETHNICITY • Resold over 1.4M pre-owned general merchandise and jewelry item
Slide 11: Financial Results – Consolidated
FINANCIAL RESULTS – CONSOLIDATED ($ millions) Q2 Highlights Pawn Loans Outstanding Pawn Service Charges • PLO balance for the quarter up $183.4 $220 $200 17% in total, 14% on a same store $152.7 $200 basis $150 $180 • PSC up 19% driven by same-store $160 $100 PLO growth and acquisitions $202.9 $140
Slide 12: Financial Results – U.S. Pawn
FINANCIAL RESULTS – U.S. PAWN ($ millions) Q2 Highlights Pawn Loans Outstanding Pawn Service Charges • PLO balance up 18% in total and $200 $150 $139.3 14% on a same store basis $115.3 $150 • PSC up 19%, driven by higher $100 average PLO for the quarter $100 $157.0 $50 • Merchandise sales up 9%, up
Slide 13: Financial Results – Latin America Pawn
FINANCIAL RESULTS – LATIN AMERICA PAWN ($ millions) Q2 Highlights Pawn Loans Outstanding Pawn Service Charges • PLO balance up 14%. On a same $50 $44.2 $50 store basis, PLO increased 12% $37.4 $40 $40 • PSC up 21% driven by higher $30 $30 average PLO for the quarter $20 $40.1 $45.9 $20 • Merchandise
Slide 14: Appendix
EZCORP APPENDIX
Slide 15: Higher PLO & Revenue Drive Increased Earnings (GAAP)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS Q2 GAAP Results ($ millions, except per share amounts) Q2 %△ FY23 FY22 B/(W) Gross profit improvement, primarily driven by higher PSC as a result of higher average PLO, Pawn Loans Outstanding $ 206.1 $ 173.6 19% leading to a 16% improvement for the quart
Slide 16: Higher PLO & Revenue Drive Increased Earnings (Adjusted)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS Q2 Adjusted Results ($ millions, except per share amounts) Q2 %△ FY23 FY22 B/(W) Gross profit improvement, primarily driven by higher PSC as a result of higher average PLO, leading to a Pawn Loans Outstanding $ 202.9 $ 173.6 17% 14% improvement on the qu
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 Q2 – Consolidated
GAAP TO NON-GAAP RECONCILIATION Q2 – 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 258.4 — 258.4 (4.7) 253.8 216.0 — 216
Slide 21: GAAP to Non-GAAP Reconciliation Q2 – U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION Q2 – 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 188.5 — 188.5 — 188.5 162.3 — 162.3 PSC Revenue 69.9 — 69.9 — 69.9
Slide 22: GAAP to Non-GAAP Reconciliation Q2 – Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION Q2 – 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 69.9 — 69.9 (4.7) 65.2 53.6 — 53.6 PSC Revenue 23.1 — 23.
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 522.8 — 522.8 (7.4) 515.4 437.0 — 43
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 383.4 — 383.4 — 383.4 326.0 — 326.0 PSC Revenue 139.3 — 139.3 — 13
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 139.4 — 139.4 (7.4) 132.0 110.9 — 110.9 PSC Revenue 46.4
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 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 U.S. Pawn PBT 28.6 20.4 16.5 7.7 73.1 20.7 25.7 18.2 20.9 85.5 34.5
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