Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — Q1 2020 Earnings Presentation
23 slides from Ezcorp's earnings presentation, Feb 3, 2020
Slide 1: Growth Through Superior Customer Experience
Growth Through Superior Customer Experience First Quarter Fiscal 2020 Earnings February 3, 2020
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: Agenda
Agenda I. Strategic Initiatives Progress Report II. F1Q20 Highlights III. Financial Highlights A. Consolidated B. US Pawn C. Latin America Pawn IV. Appendix 3
Slide 4: Strategic Initiatives Progress Report
Strategic Initiatives Progress Report INITIATIVES RECENT ACCOMPLISHMENTS1 • Pawn service charge (PSC) revenue up 5% in LatAm and flat in US • Same store sales up 16% in LatAm and up 1% in US Best at Serving • All stores in US and Mexico on new Point of Sale (POS) with 100% Customers’ Need for Cash s
Slide 5: F1Q20 Highlights
F1Q20 Highlights KEY THEMES QUARTERLY HIGHLIGHTS • Total revenue up 3% year-over-year driven by record high revenues in the pawn business. Revenue Growth • PSC up 1% reflects increasing loan portfolio efficiency / yield • Merchandise sales up 5% and US aged general merchandise improved 23% Y/Y; lowe
Slide 6: Long-Term EBITDA Growth/Margins
Long-Term EBITDA Growth/Margins Recent De Novo Store Openings Expected to Drive EBITDA Growth Long-Term Growth Consistent EBITDA Growth Market 17% CAGR (F2016-F2019) 1% CAGR (F2016-F2019) 36% CAGR (F2016-F2019) 6 EBITDA figures adjusted for discrete items. See Appendix for reconciliations.
Slide 7: Financial Highlights – F1Q20 Consolidated
Financial Highlights – F1Q20 Consolidated • PLO balance of $194m up slightly Y/Y • PSC up 1% to $84.3m reflecting a higher yield for the quarter • Merchandise sales grew 5% • Same store sales growth (SSSG) of 3% • Total inventory increase of 6% inclusive of de novo growth and GM expansion in Latin A
Slide 8: Financial Highlights – US Pawn
Financial Highlights – US Pawn • Quarter-end PLO/store of $303k (GAAP) • PSC about flat Y/Y as a slightly higher yield mostly offset a modestly lower average PLO balance for the quarter • Ending PLO up $0.2m • Same store and total merchandise sales up 1% Y/Y • Merchandise margin dip reflects liquida
Slide 9: Financial Highlights – Latin America Pawn
Financial Highlights – Latin America Pawn • PLO up 1% to $39.2m • Same Store PLO down 1% largely reflecting recently introduced social welfare programs in Mexico • PSC up 5% to $20.2m • Improved yield from refined lending guidance in POS2 • Merchandise sales grew 18% • SSSG of 16% • Inventory up 16%
Slide 10: Appendix
Appendix EZCORP
Slide 11: Profit Impacted By Discrete Items and Discretionary Growth Investments
Profit Impacted By Discrete Items and Discretionary Growth Investments EZCORP GAAP Results Q1 %∆ $ Millions FY20 FY19 B/(W) Pawn Loans Outstanding $195.6 $194.0 1% Revenue growth driven by 7% increase in LatAm pawn service charges on a GAAP basis. Total Revenue $222.4 $215.7 3% Net Revenue $130.1 $1
Slide 12: Solid PLO and Revenue Growth
Solid PLO and Revenue Growth EZCORP Continuing Operations Adjusted Results Q1 %∆ $ Millions FY20 FY19 B/(W) Pawn Loans Outstanding $194.4 $194.0 0% High per store loan balances reflect focus on meeting customers’ needs Total Revenue $221.1 $215.7 3% Q1 revenue growth driven by Lat Am on a 5% increas
Slide 13: Social Welfare Programs in Mexico
Social Welfare Programs in Mexico • Various social programs benefitting different cohorts (i.e., elderly, people with disabilities, farmers, working parents, small business WHAT • owners, etc.) Benefits span various dollar amounts/payments • Mostly direct cash payments on debit cards administered th
Slide 14: Convertible Senior Notes Potential EPS Dilution
Convertible Senior Notes Potential EPS Dilution The following is provided for purposes of calculating the potentially dilutive shares to be included in accounting for diluted EPS at a hypothetical conversion price of $10.00 on the convertible notes due 2024, and $15.90 on the convertible notes due 2
Slide 15: Definition of Terms
Definition of Terms PLO Pawn loan outstanding PSC Pawn service charges Latin America, including Mexico, Central America and South LatAm America POS2 Second generation point-of-sale system Same store loan growth (stores open the entirety of SSLG comparable periods) Same store sales growth (stores ope
Slide 16: Definition of Terms, Continued
Definition of Terms, Continued pawn service charges X 365 days in period / 12 Monthly PLO Yield = average PLO sales gross profit days in period X 365 Inventory Yield = average net inventory sales gross profit + PSC Return on Earning X 365 = days in period Assets average net inventory + average PLO t
Slide 17: 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 18: GAAP to Non-GAAP Reconciliation Q1 – Continuing Operations
GAAP to Non-GAAP Reconciliation Q1 – Continuing Operations* (D) (E) (A) (F) (B) (G) (C) (H) Footnote * - Includes immaterial presentation reclassifications and rounding Footnote (A) Amount includes $7.1m impact on CCV earnings from litigation settlement and $0.6m of impact from termination of a non-
Slide 19: GAAP to Non-GAAP Reconciliation Q1 – U.S. Pawn
GAAP to Non-GAAP Reconciliation Q1 – U.S. Pawn* (A) Footnote * - Includes immaterial presentation reclassifications and rounding 19 Footnote (A) Amount includes $2.9m reserve on exposure to Republic Metals Corporation bankruptcy.
Slide 20: GAAP to Non-GAAP Reconciliation Q1 – Latin America Pawn
GAAP to Non-GAAP Reconciliation Q1 – Latin America Pawn* (B) (A) (C) Footnote * - Includes immaterial presentation reclassifications and rounding Footnote (A) Amount includes $0.1m of acquisition and investment expense. Footnote (B) Amount includes $1.5m reserve on exposure to Republic Metals Corpor
Slide 21: Consolidated Growth FY17-FY19 Reconciliation
Consolidated Growth FY17-FY19 Reconciliation* 21 Footnote * - Includes immaterial presentation reclassifications and rounding - see final page of reconciliations for constant currency assumption
Slide 22: Pawn Businesses FY17-FY19 Reconciliation
Pawn Businesses FY17-FY19 Reconciliation* 22 Footnote * - Includes immaterial presentation reclassifications and rounding - see final page of reconciliations for constant currency assumption
Slide 23: 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