Sign In  |  Register  |  About Corte Madera  |  Contact Us

Corte Madera, CA
September 01, 2020 10:27am
7-Day Forecast | Traffic
  • Search Hotels in Corte Madera

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

EZCORP Reports Second Quarter Fiscal 2021 Results

EZCORP, Inc. (NASDAQ: EZPW) today announced results for its second quarter ended March 31, 2021.

All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") unless otherwise noted. Comparisons shown in this release are to the same period in the prior year unless otherwise noted.

CEO COMMENTARY AND OUTLOOK

Chief Executive Officer Jason Kulas stated, “We remain focused on meeting our customers’ short-term cash needs and providing access to affordable pre-owned general merchandise and jewelry, and we believe we have the right people, platform, footprint and cost structure in place to continue to strengthen and grow our core pawn business. Key highlights for the second quarter of fiscal 2021 included GAAP earnings per share of $0.10 and adjusted EPS of $0.17. The adjusted EPS was steady on a year-over-year basis despite lower pawn loans outstanding, pawn service charges and merchandise sales related to COVID-19 and related stimulus program headwinds. Merchandise sales gross profit continued to grow driven by improving inventory turns and rising merchandise margins, and we made further progress on our expense reduction initiatives. Looking ahead, even assuming store-level costs trend higher consistent with increasing transaction activity, we remain well positioned to drive higher operating margins as revenue rebuilds reflecting ongoing cost savings and simplification efforts across the business.

“In the near term, lingering impacts from the second stimulus package as well as an extended tax filing season have continued to temporarily reduce demand for pawn loans in the U.S., and in Latin America we continue to be challenged with constrained traffic, limited operating hours and increased remittances. That said, we remain confident pawn loans outstanding will rebuild given several ongoing initiatives. First, we continue to broaden customer engagement via our digital pawn servicing platform and expanded payment options. Second, our differentiated technology and data analytics capabilities are increasingly driving improving loan-to-value ratios and redemption rates. Third, we remain committed to optimizing team member development, productivity and retention through enhanced training and diversity and inclusion programs.

"Finally, we remain focused on increasingly leveraging our strong balance sheet to fund pawn loans outstanding growth and capitalize on strategic and financially accretive acquisitions to complement de novo store growth. We have opened 8 de novo stores in Latin America so far this year and recently completed the acquisition of 11 stores in the Houston, Texas metropolitan area.”

RESULTS FOR SECOND QUARTER OF FISCAL 2021

  • Diluted earnings per share was $0.10, compared to $(0.74) in the prior-year quarter. On an adjusted basis1, diluted earnings per share was $0.17, consistent with the prior-year quarter. Income before taxes increased by $40.9 million to $6.8 million.
  • Total revenues decreased $38.3 million or 17%, primarily due to a $16.8 million or 21% decrease in pawn service charges (PSC) and a $14.6 million or 11% decrease in merchandise sales.
  • The decrease in PSC was due to a $34.9 million or 22% decrease in pawn loans outstanding (PLO). Pawn loan demand was significantly reduced due to the impacts of government stimulus which led to higher loan redemptions compared to the prior year quarter.
  • Although merchandise sales decreased by $14.6 million, merchandise sales gross profit improved by 12%, driven by effective inventory management and less aged inventory leading to a 900 bps improvement in merchandise sales gross profit margin to 43%. The sales margin in the prior year quarter was negatively impacted by 200 bps due to greater sales volume of aged merchandise.
  • Total operating expenses were down $55.0 million or 35% to $103.1 million primarily due to a $47.1 million impairment charge in the prior year quarter with no similar charge in the current year quarter. Excluding the prior year impairment charge, total operating expenses decreased by 7% or $7.9 million largely driven by the decrease in store expenses of $6.5 million or 7% due to a continued focus on expense control.
  • Net inventory was $86.2 million, down 50% year-over-year and 9% sequentially. Inventory turnover improved to 3.1x from 2.1x and on a sequential basis improved 7% from 2.9x.
  • Cash and cash equivalents at the end of the quarter was $335.6 million, an increase of $141.9 million or 73% from the prior-year quarter due to the year-over-year reduction in earning assets. On a sequential basis, cash and cash equivalents increased $45.2 million or 16%, due to higher loan redemptions and merchandise sales. 

CONSOLIDATED RESULTS

Three Months Ended March 31

in millions, except per share amounts

 

As Reported

Adjusted1

2021

2020

2021

2020

Total Revenues

$

184.9

$

223.3

$

185.5

$

223.3

Net Revenues

$

113.7

$

127.4

$

114.1

$

127.4

Income, Before Tax

$

6.8

$

(34.1)

$

10.4

$

16.6

Net Income

$

5.3

$

(40.9)

$

9.5

$

9.4

Diluted Earnings Per Share

$

0.10

$

(0.74)

$

0.17

$

0.17

EBITDA

$

19.8

$

(21.4)

$

20.0

$

26.0

  • Total revenues decreased 17% to $184.9 million. PSC was down 21% to $63.4 million due to lower average PLO. On a sequential basis, PLO decreased 15% from the prior quarter, compared to an 18% sequential decrease in the same period of the prior year.
  • Net revenues were down 11% to $113.7 million.
  • Consolidated merchandise sales gross profit increased 12% to $49.4 million.
  • Consolidated store expenses decreased 7% primarily due to a reduction of expenses in line with reduced activity at the store level. Total store count decreased by 16 stores or 2% since the end of the prior-year quarter due to the closure of 22 financial services stores in Canada. General and administrative expense decreased 10% to $13.8 million, due to a continued focus on expense control.

SEGMENT RESULTS

U.S. Pawn

  • Total revenue was down 15% to $147.0 million, reflecting the impact of lower PLO driving a decrease in PSC revenue.
  • PLO decreased 22% year-over-year to $95.4 million. On a sequential basis, PLO decreased 22% compared to a 23% sequential decrease in the prior-year quarter.
  • PSC decreased 20% to $49.6 million as a result of lower average PLO for the quarter, offset by an increase in PLO yield to 180% from 173%.
  • Merchandise sales declined 8% to $93.8 million. Inventory turnover improved to 2.9x from 2.0x. Merchandise sales gross profit was up 13% and related margins grew to 45% from 36%, above our targeted range. Aged general merchandise inventory improved to 1.6% from 6.4%.
  • Net revenues decreased 9% to $92.1 million primarily due to lower PSC, partially offset by increased merchandise sales gross profit.
  • Store expenses were down 6% to $63.7 million driven by a reduction in labor expense.
  • Segment contribution increased $5.3 million to $25.8 million due to a $4.0 million decrease in store expenses and a $10.0 million impairment charge taken in the prior year quarter with no similar charge in the current year quarter, partially offset by a $8.7 million decrease in net revenues driven by the decrease in PSC described above.

Latin America Pawn

  • Total revenue was down 22% to $37.8 million, reflecting the impact of lower PLO driving a decrease in PSC revenue in addition to decreased merchandise sales.
  • PLO decreased 22% year-over-year to $29.9 million as the result of the impact of constrained traffic, limited operating hours and increased remittances from the U.S. On a sequential basis, PLO increased 15% compared to a 6% decrease in the prior-year quarter.
  • PSC decreased 25% to $13.9 million (down 24% to $14.1 million on a constant currency basis) as a result of lower average PLO for the quarter, offset by an increase in yield to 199% from 184% in the prior year.
  • Merchandise sales declined 22% to $21.4 million (down 20% to $21.8 million on a constant currency basis), but merchandise sales gross profit was up 10% and related margins were 35%, up from 25%. Inventory turnover improved to 4.0x from 2.5x. Aged general merchandise inventory decreased to 3.1% from 11.4%.
  • Net revenues decreased 17% to $21.5 million (down 15% to $21.9 million on a constant currency basis) primarily due to lower PSC.
  • Store expenses were down 5% to $17.5 million driven by a reduction in labor expense.
  • Segment contribution for the quarter was $2.6 million ($2.7 million on a constant currency basis), compared to a segment loss of $30.1 million in the prior year quarter, primarily due to a $35.9 million impairment charge of goodwill, intangible and other assets taken in the prior year quarter with no similar charge in the current quarter.
  • Latin America Pawn added four de novo stores in the quarter. New store openings typically pressure earnings in the short term as they ramp up, but drive higher profitability over time.

FORM 10-Q

EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 has been filed with the Securities and Exchange Commission and is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com.

CONFERENCE CALL

EZCORP will host a conference call on Thursday, May 6, 2021, at 7:00 am Central Time to discuss fiscal second quarter results. Analysts and institutional investors may participate on the conference call by dialing (866) 269-4260, Conference ID: 5433254, or internationally by dialing (323) 347-3277. The conference call will be webcast simultaneously to the public through this link: http://investors.ezcorp.com/. A replay of the conference call will be available online at http://investors.ezcorp.com/ shortly after the end of the call.

ABOUT EZCORP

Formed in 1989, EZCORP has grown into a leading provider of pawn loans in the United States and Latin America. We also sell merchandise, primarily collateral forfeited from pawn lending operations and pre-owned merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the Russell 2000 Index, S&P 1000 Index and Nasdaq Composite Index.

FORWARD LOOKING STATEMENTS

This announcement contains certain forward-looking statements regarding the company’s strategy, initiatives and expected performance. 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, including all statements regarding the company's strategy, initiatives and future performance, that address activities or results that the company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

1 Adjusted basis, which is a non-GAAP measure, excludes certain items. Constant currency basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. Free cash flow, which is a non-GAAP measure, includes certain adjustments to cash flow from operating activities.

For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see Non-GAAP Financial Information at the end of this release.

EZCORP, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

Three Months Ended

March 31,

Six Months Ended

March 31,

(in thousands, except per share amount)

2021

2020

2021

2020

Revenues:

Merchandise sales

$

115,225

$

129,830

$

223,008

$

256,558

Jewelry scrapping sales

6,075

11,878

12,834

21,406

Pawn service charges

63,436

80,222

126,925

164,947

Other revenues

203

1,350

307

2,803

Total revenues

184,939

223,280

363,074

445,714

Merchandise cost of goods sold

65,790

85,776

130,333

169,852

Jewelry scrapping cost of goods sold

5,401

9,617

10,603

17,371

Other cost of revenues

525

1,061

Net revenues

113,748

127,362

222,138

257,430

Operating expenses:

Store expenses

81,149

87,648

160,458

176,923

General and administrative

13,771

15,341

26,281

34,179

Impairment of goodwill, intangible and other assets

47,060

47,060

Depreciation and amortization

8,089

7,762

15,661

15,495

Loss on sale or disposal of assets and other

112

261

90

1,005

Total operating expenses

103,121

158,072

202,490

274,662

Operating income (loss)

10,627

(30,710

)

19,648

(17,232

)

Interest expense

5,518

5,881

10,973

11,210

Interest income

(585

)

(941

)

(1,406

)

(1,784

)

Equity in net (income) loss of unconsolidated affiliates

(1,250

)

(1,184

)

(1,766

)

4,713

Other expense (income)

145

(341

)

(454

)

(243

)

Income (loss) before income taxes

6,799

(34,125

)

12,301

(31,128

)

Income tax expense

1,469

6,749

2,672

8,508

Net income (loss)

$

5,330

$

(40,874

)

$

9,629

$

(39,636

)

Basic earnings (loss) per share

$

0.10

$

(0.74

)

$

0.17

$

(0.71

)

Diluted earnings (loss) per share

$

0.10

$

(0.74

)

$

0.17

$

(0.71

)

Weighted-average basic shares outstanding

55,661

55,448

55,509

55,557

Weighted-average diluted shares outstanding

55,665

55,522

55,511

55,608

EZCORP, Inc.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands, except share and per share amounts)

March 31,

2021

March 31,

2020

September 30,

2020

(Unaudited)

Assets:

Current assets:

Cash and cash equivalents

$

335,638

$

193,729

$

304,542

Restricted cash

8,006

4,000

8,011

Pawn loans

125,268

160,179

131,323

Pawn service charges receivable, net

20,842

27,304

20,580

Inventory, net

86,214

173,251

95,891

Notes receivable, net

3,728

Prepaid expenses and other current assets

30,676

23,629

32,903

Total current assets

606,644

585,820

593,250

Investments in unconsolidated affiliates

34,961

27,993

32,458

Property and equipment, net

51,836

58,787

56,986

Lease right-of-use asset

170,479

206,839

183,809

Goodwill

258,199

257,222

257,582

Intangible assets, net

58,125

64,043

58,638

Notes receivable, net

1,164

1,132

1,148

Deferred tax asset, net

9,693

6,251

8,931

Other assets

5,152

5,045

4,221

Total assets

$

1,196,253

$

1,213,132

$

1,197,023

Liabilities and equity:

Current liabilities:

Current maturities of long-term debt, net

$

$

267

$

213

Accounts payable, accrued expenses and other current liabilities

69,019

53,152

71,504

Customer layaway deposits

11,401

13,060

11,008

Lease liability

41,060

44,076

49,742

Total current liabilities

121,480

110,555

132,467

Long-term debt, net

257,143

244,288

251,016

Deferred tax liability, net

167

2,540

524

Lease liability

138,622

171,006

153,040

Other long-term liabilities

9,597

7,190

10,849

Total liabilities

527,009

535,579

547,896

Commitments and Contingencies (Note 11)

Stockholders’ equity:

Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,873,568 as of March 31, 2021; 52,097,590 as of March 31, 2020; and 52,332,848 as of September 30, 2020

528

521

521

Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171

30

30

30

Additional paid-in capital

399,439

406,171

398,475

Retained earnings

327,798

347,004

318,169

Accumulated other comprehensive loss

(58,551

)

(76,173

)

(68,068

)

Total equity

669,244

677,553

649,127

Total liabilities and equity

$

1,196,253

$

1,213,132

$

1,197,023

EZCORP, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Six Months Ended

March 31,

(in thousands)

2021

2020

Operating activities:

Net income (loss)

$

9,629

$

(39,636

)

Adjustments to reconcile net income (loss) to net cash flows from operating activities:

Depreciation and amortization

15,661

15,495

Amortization of debt discount and deferred financing costs

6,754

6,493

Amortization of lease right-of-use asset

23,835

22,752

Accretion of notes receivable discount and deferred compensation fee

(546

)

Deferred income taxes

(1,119

)

(3,698

)

Impairment of goodwill and intangible assets

47,060

Other adjustments

(250

)

1,810

Provision for inventory reserve

(5,265

)

(742

)

Stock compensation expense

1,618

2,722

Equity in net (income) loss of unconsolidated affiliates

(1,766

)

4,713

Changes in operating assets and liabilities:

Service charges and fees receivable

(106

)

4,027

Inventory

6,481

(539

)

Prepaid expenses, other current assets and other assets

3,874

(2,791

)

Accounts payable, accrued expenses and other liabilities

(43,436

)

(37,799

)

Customer layaway deposits

238

538

Income taxes

2,573

1,412

Net cash provided by operating activities

18,721

21,271

Investing activities:

Loans made

(269,468

)

(351,050

)

Loans repaid

177,888

229,054

Recovery of pawn loan principal through sale of forfeited collateral

109,019

158,792

Capital expenditures, net

(8,359

)

(12,160

)

Net cash provided by investing activities

9,080

28,636

Financing activities:

Taxes paid related to net share settlement of equity awards

(839

)

(1,458

)

Payout of deferred consideration

(175

)

Proceeds from borrowings, net of issuance costs

(109

)

Payments on borrowings

(871

)

(355

)

Repurchase of common stock

(5,159

)

Net cash used in financing activities

(1,710

)

(7,256

)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

5,000

(7,364

)

Net increase in cash, cash equivalents and restricted cash

31,091

35,287

Cash, cash equivalents and restricted cash at beginning of period

312,553

162,442

Cash, cash equivalents and restricted cash at end of period

$

343,644

$

197,729

Supplemental disclosure of cash flow information

Cash and cash equivalents

$

335,638

$

193,729

Restricted cash

8,006

4,000

Total cash and cash equivalents and restricted cash

$

343,644

$

197,729

Non-cash investing and financing activities:

Pawn loans forfeited and transferred to inventory

$

99,285

$

156,468

EZCORP, Inc.

OPERATING SEGMENT RESULTS

(Unaudited)

 

Three Months Ended March 31, 2021

(in thousands)

U.S. Pawn

Latin America

Pawn

Other

International

Total Segments

Corporate

Items

Consolidated

Revenues:

Merchandise sales

$

93,827

$

21,398

$

$

115,225

$

$

115,225

Jewelry scrapping sales

3,581

2,494

6,075

6,075

Pawn service charges

49,577

13,859

63,436

63,436

Other revenues

29

174

203

203

Total revenues

147,014

37,751

174

184,939

184,939

Merchandise cost of goods sold

51,812

13,978

65,790

65,790

Jewelry scrapping cost of goods sold

3,149

2,252

5,401

5,401

Other cost of revenues

Net revenues

92,053

21,521

174

113,748

113,748

Segment and corporate expenses (income):

Store expenses

63,657

17,492

81,149

81,149

General and administrative

13,771

13,771

Depreciation and amortization

2,636

1,793

4,429

3,660

8,089

Loss on sale or disposal of assets and other

101

101

11

112

Interest expense

5,518

5,518

Interest income

(571

)

(571

)

(14

)

(585

)

Equity in net income of unconsolidated affiliates

(1,250

)

(1,250

)

(1,250

)

Other expense

85

9

94

51

145

Segment contribution

$

25,760

$

2,621

$

1,415

$

29,796

Income (loss) before income taxes

$

29,796

$

(22,997

)

$

6,799

Three Months Ended March 31, 2020

(in thousands)

U.S. Pawn

Latin America

Pawn

Other

International

Total Segments

Corporate

Items

Consolidated

Revenues:

Merchandise sales

$

102,447

$

27,383

$

$

129,830

$

$

129,830

Jewelry scrapping sales

9,659

2,219

11,878

11,878

Pawn service charges

61,700

18,522

80,222

80,222

Other revenues

31

25

1,294

1,350

1,350

Total revenues

173,837

48,149

1,294

223,280

223,280

Merchandise cost of goods sold

65,286

20,490

85,776

85,776

Jewelry scrapping cost of goods sold

7,800

1,817

9,617

9,617

Other cost of revenues

37

488

525

525

Net revenues

100,751

25,805

806

127,362

127,362

Segment and corporate expenses (income):

Store expenses

67,619

18,469

1,560

87,648

87,648

General and administrative

15,341

15,341

Impairment of goodwill, intangible and other assets

10,000

35,936

1,124

47,060

47,060

Depreciation and amortization

2,711

1,940

23

4,674

3,088

7,762

(Gain) loss on sale or disposal of assets and other

(123

)

(123

)

384

261

Interest expense

402

154

556

5,325

5,881

Interest income

(369

)

(369

)

(572

)

(941

)

Equity in net income of unconsolidated affiliates

(1,184

)

(1,184

)

(1,184

)

Other (income) expense

(309

)

20

(289

)

(52

)

(341

)

Segment contribution (loss)

$

20,421

$

(30,141

)

$

(891

)

$

(10,611

)

Loss before income taxes

$

(10,611

)

$

(23,514

)

$

(34,125

)

Six Months Ended March 31, 2021

(in thousands)

U.S. Pawn

Latin America

Pawn

Other

International

Total

Segments

Corporate

Items

Consolidated

Revenues:

Merchandise sales

$

176,080

$

46,928

$

$

223,008

$

$

223,008

Jewelry scrapping sales

7,585

5,249

12,834

12,834

Pawn service charges

99,797

27,128

126,925

126,925

Other revenues

51

7

249

307

307

Total revenues

283,513

79,312

249

363,074

363,074

Merchandise cost of goods sold

99,871

30,462

130,333

130,333

Jewelry scrapping cost of goods sold

5,993

4,610

10,603

10,603

Other cost of revenues

Net revenues

177,649

44,240

249

222,138

222,138

Segment and corporate expenses (income):

Store expenses

125,749

34,709

160,458

160,458

General and administrative

26,281

26,281

Depreciation and amortization

5,372

3,653

9,025

6,636

15,661

Loss on sale or disposal of assets and other

27

27

63

90

Interest expense

10,973

10,973

Interest income

(1,335

)

(1,335

)

(71

)

(1,406

)

Equity in net income of unconsolidated affiliates

(1,766

)

(1,766

)

(1,766

)

Other (income) expense

(370

)

(201

)

(571

)

117

(454

)

Segment contribution

$

46,501

$

7,583

$

2,216

$

56,300

Income (loss) before income taxes

$

56,300

$

(43,999

)

$

12,301

Six Months Ended March 31, 2020

(in thousands)

U.S. Pawn

Latin America

Pawn

Other

International

Total

Segments

Corporate

Items

Consolidated

Revenues:

Merchandise sales

$

197,801

$

58,757

$

$

256,558

$

$

256,558

Jewelry scrapping sales

15,776

5,630

21,406

21,406

Pawn service charges

125,790

39,157

164,947

164,947

Other revenues

67

50

2,686

2,803

2,803

Total revenues

339,434

103,594

2,686

445,714

445,714

Merchandise cost of goods sold

126,650

43,202

169,852

169,852

Jewelry scrapping cost of goods sold

12,555

4,816

17,371

17,371

Other cost of revenues

37

1,024

1,061

1,061

Net revenues

200,229

55,539

1,662

257,430

257,430

Segment and corporate expenses (income):

Store expenses

135,678

38,452

2,793

176,923

176,923

General and administrative

34,179

34,179

Impairment of goodwill, intangible and other assets

10,000

35,936

1,124

47,060

47,060

Depreciation and amortization

5,576

3,829

57

9,462

6,033

15,495

(Gain) loss on sale or disposal of assets and other

(95

)

(95

)

1,100

1,005

Interest expense

430

324

754

10,456

11,210

Interest income

(757

)

(757

)

(1,027

)

(1,784

)

Equity in net loss of unconsolidated affiliates

4,713

4,713

4,713

Other (income) expense

(242

)

19

(223

)

(20

)

(243

)

Segment contribution (loss)

$

48,975

$

(22,014

)

$

(7,368

)

$

19,593

Income (loss) before income taxes

$

19,593

$

(50,721

)

$

(31,128

)

EZCORP, Inc.

STORE COUNT ACTIVITY

(Unaudited)

   

  

Three Months Ended March 31, 2021

  

U.S. Pawn

Latin America

Pawn

Consolidated

  

As of December 31, 2020

  

505

502

1,007

New locations opened

  

4

4

As of March 31, 2021

  

505

506

1,011

   
   

  

Three Months Ended March 31, 2020

  

U.S. Pawn

Latin America

Pawn

Other

International

Consolidated

  

As of December 31, 2019

  

512

484

22

1,018

New locations opened

  

9

9

As of March 31, 2020

  

512

493

22

1,027

   
   

  

Six Months Ended March 31, 2021

  

U.S. Pawn

Latin America

Pawn

Consolidated

  

As of September 30, 2020

  

505

500

1,005

New locations opened

  

6

6

Locations acquired

  

Locations sold, combined or closed

  

As of March 31, 2021

  

505

506

1,011

   
   

  

Six Months Ended March 31, 2020

  

U.S. Pawn

Latin America

Pawn

Other

International

Consolidated

  

As of September 30, 2019

  

512

480

22

1,014

New locations opened

  

13

13

Locations acquired

  

Locations sold, combined or closed

  

As of March 31, 2020

  

512

493

22

1,027

Non-GAAP Financial Information (Unaudited)

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 ("constant currency") and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflect an additional way of viewing aspects of our business that, when viewed with GAAP results, provide a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three and six months ended March 31, 2021 and 2020 were as follows:

March 31,

Three Months Ended

March 31,

Six Months Ended

March 31,

2021

2020

2021

2020

2021

2020

Mexican peso

20.5

23.8

20.3

20.0

20.4

19.6

Guatemalan quetzal

7.6

7.6

7.6

7.5

7.6

7.5

Honduran lempira

23.7

24.4

23.8

24.3

23.9

24.3

Peruvian sol

3.7

3.4

3.6

3.4

3.6

3.3

Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

Miscellaneous Non-GAAP Financial Measures

  

2021 Q2

2020 Q2

  

  

(in millions)

Net income (loss)

  

$

5.3

$

(40.9

)

Interest expense

  

5.5

5.9

Interest income

  

(0.6

)

(0.9

)

Income tax expense

  

1.5

6.7

Depreciation and amortization

  

8.1

7.8

EBITDA

  

$

19.8

$

(21.4

)

Total

Revenues

Net

Revenues

Income

Before Tax

Tax Effect

Net

Income

Diluted EPS

EBITDA

2021 Q2 Reported

$

184.9

$

113.7

$

6.8

$

1.5

$

5.3

$

0.10

$

19.8

Acquisition expenses

0.2

0.2

0.2

Non cash interest

3.4

0.8

2.6

0.05

Non-recurring tax expense

(1.4

)

1.4

0.03

Constant currency impact

0.6

0.4

0.1

(0.01

)

2021 Q2 Adjusted

$

185.5

$

114.1

$

10.4

$

0.9

$

9.5

$

0.17

$

20.0

 

Total

Revenues

Net

Revenues

(Loss) Income

Before Tax

Tax Effect

Net (Loss)

Income

Diluted EPS

EBITDA

2020 Q2 Reported

$

223.3

$

127.4

$

(34.1

)

$

6.8

$

(40.9

)

$

(0.74

)

$

(21.4

)

Termination of non-core software project

0.5

(0.1

)

0.4

0.01

0.5

Lobbying expense

0.2

0.2

0.2

Non-recurring tax expense

1.9

1.9

0.03

Impairment of goodwill, intangible assets and other

47.1

(1.7

)

45.4

0.83

47.1

Non cash interest

3.3

(0.7

)

2.6

0.05

Constant currency impact

(0.3

)

(0.3

)

(0.01

)

(0.3

)

2020 Q2 Adjusted

$

223.3

$

127.4

$

16.6

$

7.2

$

9.4

$

0.17

$

26.0

2021 Q2: 

U.S. Dollar

Amount

Percentage

Change YOY

 

 

(in millions)

Consolidated revenue

 

$

184.9

(17

)%

Currency exchange rate fluctuations

 

0.6

Constant currency consolidated revenue

 

$

185.5

(17

)%

 

Consolidated net revenue

 

$

113.7

(11

)%

Currency exchange rate fluctuations

 

0.4

Constant currency consolidated net revenue

 

$

114.1

(10

)%

 

Consolidated net inventory

 

$

86.2

(50

)%

Currency exchange rate fluctuations

 

(1.7

)

Constant currency consolidated net inventory

 

$

84.5

(51

)%

 

Latin America Pawn net revenue

 

$

21.5

(17

)%

Currency exchange rate fluctuations

 

0.4

Constant currency Latin America Pawn net revenue

 

$

21.9

(15

)%

 

Latin America Pawn PLO

 

$

29.9

(22

)%

Currency exchange rate fluctuations

 

(2.8

)

Constant currency Latin America Pawn PLO

 

$

27.1

(29

)%

 

Latin America Pawn PSC revenues

 

$

13.9

(25

)%

Currency exchange rate fluctuations

 

0.2

Constant currency Latin America Pawn PSC revenues

 

$

14.1

(24

)%

 

Latin America Pawn merchandise sales

 

$

21.4

(22

)%

Currency exchange rate fluctuations

 

0.4

Constant currency Latin America Pawn merchandise sales

 

$

21.8

(20

)%

 

Latin America Pawn segment profit before tax

 

$

2.6

109

%

Currency exchange rate fluctuations

 

0.1

Constant currency Latin America Pawn segment profit before tax

 

$

2.7

(54

)%

Contacts:

Email: Investor_Relations@ezcorp.com
Phone: (512) 314-2220

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 CorteMadera.com & California Media Partners, LLC. All rights reserved.