Slide 1: First Quarter Fiscal 2023 Earnings
FIRST QUARTER FISCAL 2023 EARNINGS FEBRUARY 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 1,186 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 Q1 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 • Key initiatives implemented in • Continued growing and engaging
Slide 6: Q1 FY23 Key Financial Themes
Q1 FY23 KEY FINANCIAL THEMES PLO & Record Merchandise Sales Continue to Drive Higher Revenue and Earnings Revenue & Earnings Focus on Inventory Management Strong Balance Sheet • Total revenues of $261.6M, up 18%, • Same store sales up 14% • $207.7M cash balance up from $206.0M in driven by higher sa
Slide 7: EBITDA Margin Focus
EBITDA MARGIN FOCUS ($ millions) Q1 EBITDA Margins Consolidated $150 13% 13% 13% 12% $100 11% $50 $0 • LTM EBITDA Margin increased to 13% LTM Dec FY22 LTM Mar FY22 LTM Jun FY22 LTM Sep FY22 LTM Dec FY23 from 11% as compared to LTM Dec FY22 U.S. Pawn 20% 21% 21% 21% $150 19% • U.S. Pawn LTM EBITDA Ma
Slide 8: Strengthen the Core
STRENGTHEN THE CORE Focus on People and Technology to Drive Increased Earnings People, Pawn, Passion Technology, Process Efficiency • Implemented simplified field incentive plans and changed • Improved resiliency and quality of store infrastructure participation eligibility to Day 1 ◦ All in-house a
Slide 9: Innovate and Grow
INNOVATE AND GROW Broaden Customer Engagement to Serve More Customers, More Frequently EZ+ Grow Customer Base Store Count • Grew EZ+ Rewards members to 2.4 million • Grew website visits for our top 5 brands by globally with U.S. and Mexico both 35% over prior quarter, driven by increased surpassing
Slide 10: Q1 FY23 ESG Highlights
Q1 FY23 ESG HIGHLIGHTS Providing environmentally friendly retail experiences to our customers through aREDUCE, network of neighborhood REUSE, RECYCLE recommerce stores Contributing to a Circular Economy Q1 FY23 - U.S. RACE & ETHNICITY • Resold over 1.6 million pre-owned general merchandise and jewel
Slide 11: Convertible Debt Refinancing Summary
Convertible Debt Refinancing Summary ($ millions) Extending the Maturities of our Convertible Debt Prior to Post Impact Refinancing Refinancing • 2024 Convertible Notes mature on July 1, 2024, have a conversion price Convertible Note Debt of $10.00 per share and an interest 2024 Convertible Notes 14
Slide 12: Financial Results – Consolidated
FINANCIAL RESULTS – CONSOLIDATED ($ millions) Q1 Highlights Pawn Loans Outstanding Pawn Service Charges • PLO balance up 18% in total, and $220 $120 15% on a same store basis $200 $100 • PSC up 21% driven by same-store $180 $80 PLO growth and acquisitions $160 $208.6 $60 $91.8 • Record merchandise s
Slide 13: Financial Results – U.S. Pawn
FINANCIAL RESULTS – U.S. PAWN ($ millions) Q1 Highlights Pawn Loans Outstanding Pawn Service Charges • PLO balance up 18% in total (to the $200 $100 highest ever for the segment), and $80 15% on a same store basis $150 $60 • PSC up 23% driven by higher $100 average PLO for the quarter $166.9 $40 $69
Slide 14: Financial Results – Latin America Pawn
FINANCIAL RESULTS – LATIN AMERICA PAWN ($ millions) Q1 Highlights Pawn Loans Outstanding Pawn Service Charges • PLO balance up 17%. On a same $50 $30 store basis, PLO increased 15% $40 • PSC up 15% driven by higher $20 $30 average PLO for the quarter $20 $35.5 $41.7 $10 $19.5 $22.5 • Merchandise sal
Slide 15: Appendix
EZCORP APPENDIX
Slide 16: Higher PLO & Revenue Drive Increased Earnings (GAAP)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS Q1 GAAP Results ($ millions, except per share amounts) Q1 %△ FY23 FY22 B/(W) Gross profit improvement primarily driven by higher PSC as a result of higher average PLO, Pawn Loans Outstanding $ 209.9 $ 176.6 19% and higher sales gross profit leading to a
Slide 17: Higher PLO & Revenue Drive Increased Earnings (Adjusted)
HIGHER PLO & REVENUE DRIVE INCREASED EARNINGS Q1 Adjusted Results ($ millions, except per share amounts) Q1 %△ FY23 FY22 B/(W) Gross profit improvement primarily driven by higher PSC as a result of higher average PLO, and higher Pawn Loans Outstanding $ 208.6 $ 176.6 18% sales gross profit leading t
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 Q1 – Consolidated
GAAP TO NON-GAAP RECONCILIATION Q1 – 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 264.3 — 264.3 (2.7) 261.6 221.0 — 221
Slide 22: GAAP to Non-GAAP Reconciliation Q1 – U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION Q1 – 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 194.8 — 194.8 — 194.8 163.6 — 163.6 PSC Revenue 69.3 — 69.3 — 69.3
Slide 23: GAAP to Non-GAAP Reconciliation Q1 – Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION Q1 – 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 69.5 — 69.5 (2.7) 66.8 57.3 — 57.3 PSC Revenue 23.3 — 23.
Slide 24: 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 25: 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 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 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 33.8 29
Slide 26: 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 27: Thank You
EZCORP THANK YOU