Ezcorp, Inc. · NASDAQ:EZPW
Ezcorp — Q1 2024 Earnings Presentation
27 slides from Ezcorp's earnings presentation, Feb 1, 2024
Slide 1: First Quarter Fiscal 2024 Earnings
FIRST QUARTER FISCAL 2024 EARNINGS FEBRUARY 2024
Slide 2: Preliminary Statements
PRELIMINARY STATEMENTS NASDAQ: EZPW FORWARD LOOKING STATEMENTS ADJUSTED INFORMATION This presentation contains certain forward-looking statements. These statements are based Unless otherwise specified, all amounts in this presentation reflect certain on the company’s current expectations as to the o
Slide 3: Company Overview
COMPANY OVERVIEW NASDAQ: EZPW LEADER IN PAWN AND PRE-OWNED AND RECYCLED RETAIL 1,237 STORES AND OVER 7,700 TEAM MEMBERS • Formed in 1989, EZCORP has grown into a leading provider of pawn transactions and seller of pre-owned and recycled merchandise in the United States and Latin America. • We increa
Slide 4: Store Growth and Balance Sheet Highlights
Q1 FY24 STORE GROWTH AND BALANCE SHEET HIGHLIGHTS ($ millions, except for store count) STORE COUNT EARNING ASSETS CASH BALANCE (GAAP) 1,231 1,237 $412.3 $243.1 $238.0 1,175 $399.3 1,148 $384.3 $220.6 $218.5 $366.0 $356.4 $166.5 $207.7 $160.9 $154.9 1,005 $156.1 $150.3 $245.8 $238.4 $229.4 $209.9 $20
Slide 5: Financial Highlights
Q1 FY24 FINANCIAL HIGHLIGHTS ($ millions, except per share amounts) TOTAL REVENUES PLO $270.5 $292.9 $229.4 $245.8 $238.4 $264.3 $258.4 $255.8 $209.9 $206.1 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 • Total revenues record of $292.9M, up 11%, driven by higher PS
Slide 6: Business Strategy Highlights
Q1 FY24 BUSINESS STRATEGY HIGHLIGHTS Progression towards our Strategic Goals STRENGTHEN THE CORE CUSTOMER FOCUS • Launched rebuild of intelligent pricing engine for better price • Grew EZ+ Rewards members to 4.2M globally, with 1.4M accuracy across more products globally transacting in Q1, 0.7M of w
Slide 7: Sustainability Highlights
Q1 FY24 SUSTAINABILITY HIGHLIGHTS Providing environmentally friendly retail experiences to our customers through a network of neighborhood recommerce stores Contributing to a Circular Economy Q1 FY24 U.S. Race and Ethnicity Demographics Sold approximately 1.4M pre-owned general merchandise and jewel
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 9: Financial Results – Consolidated
Q1 FY24 FINANCIAL RESULTS – CONSOLIDATED ($ millions) Pawn Loans Outstanding Inventory Merchandise Margin $238.4 36% 36% $209.9 $156.1 $160.9 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 • PLO balance up 14%, 12% on a same store basis, • Inventory increased 3% • Merchandise sales gross profit up
Slide 10: U.S. Pawn Segment
Q1 FY24 U.S. PAWN SEGMENT ($ millions) Revenues $194.8 $217.4 Q1 FY23 Q1 FY24 • Total Revenues increased $22.6M or 12% Earning Assets $317.8 $284.9 $127.0 $118.0 PLO Inventory $166.9 $190.8 Q1 FY23 Q1 FY24 • Earning Assets increased 12%, driven by PLO increase of 14% and an Inventory increase of 8%
Slide 11: U.S. Pawn Segment
Q1 FY24 U.S. PAWN SEGMENT 530 stores in 19 states Store Count Average Loan Size (GAAP) 516 529 530 $181 505 515 $170 $159 $142 $116 d OR MN 5 6 WI 3 PA FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24 IA 1 NV 11 IN • Acquired 1 store in the quarter • Average loan size up 6% from the IL 28 UT
Slide 12: Financial Results – U.S. Pawn
Q1 FY24 FINANCIAL RESULTS – U.S. PAWN ($ millions) Pawn Loans Outstanding Inventory Merchandise Margin $190.8 $127.0 38% 37% $166.9 $118.0 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 • PLO balance up 14%, 13% on a same store basis, • Inventory increased 8% • Merchandise sales gross profit up 4%,
Slide 13: Latin America Pawn Segment
Q1 FY24 LATIN AMERICA PAWN SEGMENT ($ millions) Revenues $69.5 $75.5 Q1 FY23 Q1 FY24 • Total Revenues increased $6.0M or 9% Earning Assets $81.1 $81.5 $38.1 $33.9 PLO Inventory $43.0 $47.6 Q1 FY23 Q1 FY24 • Earning Assets increased 1%, driven by PLO up 11%, offset by Inventory down 11% All figures a
Slide 14: Latin America Pawn Segment
Q1 FY24 LATIN AMERICA PAWN SEGMENT 707 stores in 4 countries Store Count Average Loan Size (GAAP) 702 707 660 632 $91 $77 $78 $84 $73 500 FY20 FY21 FY22 FY23 Q1 FY24 FY20 FY21 FY22 FY23 Q1 FY24 • Opened 2 stores in Mexico and 3 • Average loan size up 8% from the stores in Guatemala in the quarter en
Slide 15: Financial Results – Latin America Pawn
Q1 FY24 FINANCIAL RESULTS – LATIN AMERICA PAWN ($ millions) Pawn Loans Outstanding Inventory Merchandise Margin $43.0 $47.6 $38.1 30% 32% $33.9 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 • PLO balance up 11%, 8% on a same store basis, • Inventory decreased 11%, due to increased • Merchandise sa
Slide 16: Appendix
APPENDIX
Slide 17: Higher PLO & Revenues Drive Increased Earnings (GAAP)
HIGHER PLO & REVENUES DRIVE INCREASED EARNINGS Q1 GAAP Results ($ millions, except per share amounts) Q1 %△ Gross profit improved 13%, primarily due to FY24 FY23 B/(W) higher PSC and sales growth profit, driven by Pawn Loans Outstanding $ 243.3 $ 209.9 16% higher average PLO and merchandise sales, r
Slide 18: Higher PLO & Revenues Drive Increased Earnings (Adjusted)
HIGHER PLO & REVENUES DRIVE INCREASED EARNINGS Q1 Adjusted Results ($ millions, except per share amounts) Q1 %△ FY24 FY23 B/(W) Gross profit improved 11%, primarily due to higher PSC and sales growth profit, driven by Pawn Loans Outstanding $ 238.4 $ 209.9 14% higher average PLO and merchandise sale
Slide 19: Definition of Terms
DEFINITION OF TERMS Cash Converters International Limited, a publicly-traded company based CCV in Australia, in which EZCORP holds a minority interest ESG Environmental, Social and Governance GM General merchandise (non-jewelry) LatAm Latin America, including Mexico, Central 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 U.S. generally accepted accounting You should consider the non-GAAP information in principles (“GAAP”), we provide certain other financial information that is adjusted to exclude the impact of additi
Slide 21: GAAP to Non-GAAP Reconciliation Q1 – Consolidated
GAAP TO NON-GAAP RECONCILIATION Q1 – CONSOLIDATED* ($ millions, except per share amounts) Adjusted Constant Base Item Adjustments Adjusted Base Constant Base Item Adjustments Adjusted Base Currency Impact Currency FY24 FY24 FY24 FY24 FY24 FY23 FY23 FY23 Revenues $ 300.0 $ — $ 300.0 $ (7.1) $ 292.9 $
Slide 22: GAAP to Non-GAAP Reconciliation Q1 – U.S. Pawn
GAAP TO NON-GAAP RECONCILIATION Q1 – U.S. PAWN* ($ millions) Adjusted Constant Base Item Adjustments Adjusted Base Constant Base Item Adjustments Adjusted Base Currency Impact Currency FY24 FY24 FY24 FY24 FY24 FY23 FY23 FY23 Revenues $ 217.4 $ — $ 217.4 $ — $ 217.4 $ 194.8 $ — $ 194.8 PSC Revenues $
Slide 23: GAAP to Non-GAAP Reconciliation Q1 – Latin America Pawn
GAAP TO NON-GAAP RECONCILIATION Q1 – LATIN AMERICA PAWN* ($ millions) Adjusted Constant Base Item Adjustments Adjusted Base Constant Base Item Adjustments Adjusted Base Currency Impact Currency FY24 FY24 FY24 FY24 FY24 FY23 FY23 FY23 Revenues $ 82.5 $ — $ 82.5 $ (7.1) $ 75.5 $ 69.5 $ — $ 69.5 PSC Re
Slide 24: Consolidated Growth FY23-FY24 Reconciliation
CONSOLIDATED GROWTH FY23-FY24 RECONCILIATION* ($ millions) FY23 FY23 FY23 FY23 FY24 Q1 Q2 Q3 Q4 Q1 Continuing Ops PBT $ 24.5 $ (7.3) $ 21.3 $ 13.1 $ 37.7 Add Back Net Interest $ 5.5 $ 1.5 $ 0.8 $ 1.1 $ 0.8 Add Back Depreciation and Amortization $ 8.0 $ 8.0 $ 8.0 $ 8.2 $ 8.6 Continuing Ops EBITDA $ 3
Slide 25: Adjusted Diluted EPS Calculation
Q1 FY24 Adjusted Diluted EPS Calculation ($ millions, except per share amounts) Q1 GAAP Q1 Adjusted FY24 FY23 FY24 FY23 • Adoption of new accounting standards for convertible Basic earnings per common share: notes in ASU 2020-06 at the beginning of Q1 2022 Net income - Basic (Adjusted) $ 28.5 $ 16.8
Slide 26: Constant Currency
CONSTANT CURRENCY Mexican Guatemalan Honduran Australian In addition to the financial information prepared in conformity with generally accepted Peso Quetzal Lempira Dollar accounting principles in the United States (“GAAP”), we provide certain other non-GAAP financial information on a constant curr
Slide 27: Thank You
THANK YOU Contact us Website Investors.ezcorp.com Email Investor_relations@ezcorp.com Phone Number 512.314.2220 Address 2500 Bee Cave Rd., Bldg. 1, Suite 200, Austin, TX 78746 Social Media LinkedIn: EZCORP Instagram: @ezcorp_official, @ezpawnofficial, @valuepawnofficial Facebook: @ezpawn, @valuepawn