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Ezcorp Inc (EZPW) SEC Filing 8-K Material Event for the period ending Wednesday, November 17, 2021

Ezcorp Inc

CIK: 876523 Ticker: EZPW

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EZCORP Reports Fourth Quarter and Full Year Fiscal 2021 Results
Store Count Up 14% and PLO Up 34% for the Year
Austin, Texas (November 17, 2021) — EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its fiscal fourth quarter and full year ended September 30, 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.
FOURTH QUARTER HIGHLIGHTS
Pawn Loans Outstanding (PLO) up 34% and up 12% compared to the third quarter.
Total revenue increased 15% and net revenue increased 33%.
Merchandise sales gross profit margin was 41% up from 31%.
Diluted earnings per share was $0.03, compared to a diluted loss per share of $0.42. On an adjusted basis1, diluted earnings per share was $0.11, compared to diluted earnings per share of $0.08.
Return on Earning Assets (ROEA) improved to 175% from 154%.
CEO COMMENTARY AND OUTLOOK
Chief Executive Officer Jason Kulas stated, “I am pleased with our results in the fourth quarter and for the fiscal year, and am proud the team has executed on the strategy we put in place at the end of fiscal 2020. We are improving the customer experience, embracing technological improvements, and have launched our new loyalty program which will be rolled out in the majority of stores by the end of the calendar year. Our key financial metrics continue to improve sequentially due to the initiatives that we have taken throughout the year. We credit our team members who have embraced the renewed emphasis on culture and serving our customers while focusing on innovative ways to improve the core pawn business, grow PLO and increase margins.
“We are seeing strong signs of recovery from the pandemic and stimulus impact in the U.S., with Latin America slightly lagging due to the concerns over the Delta variant.
“The integration of the 139 stores we acquired this year is going well, and our current acquisition pipeline remains robust. In addition, we recently invested in a company that gives us increased geographical diversification by having interests in pawn stores in the Caribbean.
“As we continue to grow our footprint outside of the US, I am delighted to announce the recent promotion of Blair Powell to President of Global Pawn with management responsibility for all of our pawn operations worldwide. Blair has over 30 years of experience in the industry and has been serving as President of US Pawn for the past year. I am confident that this more streamlined global structure will enhance the in-store experience, optimize expenses and further drive profitability.
“Looking ahead toward fiscal 2022, we remain committed to maintaining operating excellence, a strong balance sheet and cost discipline while pursuing sustainable growth. Our customers and team members are critical to our success. We strive to be our customers’ first and best choice for their short-term cash needs and for affordable pre-owned and recycled goods. Enhanced training and diversity and inclusion programs are in place to help develop team members and improve productivity and retention. We are appreciative of our team members’ excellent execution and passion for pawn, and we are enthusiastic about the year ahead."



CONSOLIDATED RESULTS
Three Months Ended September 30
As Reported
Adjusted1
in millions, except per share amounts2021202020212020
Total Revenues$192.4 $166.8 $188.7 $166.8 
Net Revenues$119.3 $89.6 $117.2 $89.6 
Income (Loss), Before Tax$4.5 $(28.7)$9.0 $3.3 
Net Income (Loss)$1.6 $(23.3)$6.0 $4.2 
Diluted Earnings (Loss) Per Share $0.03 $(0.42)$0.11 $0.08 
EBITDA$17.2 $(16.0)$18.1 $12.3 
Twelve Months Ended September 30As Reported
Adjusted1
in millions, except per share amounts2021202020212020
Total Revenues$729.6 $822.8 $724.1 $822.8 
Net Revenues$449.5 $449.2 $446.3 $451.5 
Income (Loss), Before Tax$16.1 $(70.1)$31.1 $29.4 
Net Income (Loss)$8.6 $(68.5)$21.0 $21.6 
Diluted Earnings (Loss) Per Share $0.15 $(1.24)$0.38 $0.39 
EBITDA$66.4 $(20.0)$67.5 $66.3 
Diluted earnings per share was $0.03 for the fourth quarter, compared to a loss of $0.42. On an adjusted basis, diluted earnings per share was $0.11, compared to $0.08. For the full year, diluted earnings per share was $0.15, compared to a loss of $1.24. On an adjusted basis, diluted earnings per share for the year was $0.38, compared to $0.39.
For the fourth quarter, income before taxes improved 116% from a loss of $28.7 million to income of $4.5 million. Adjusted EBITDA increased 47% from $12.3 million to $18.1 million. For the full year, income before taxes improved by 123% to $16.1 million from a loss of $70.1 million and adjusted EBITDA increased 2% to $67.5 million from $66.3 million.
PLO significantly increased to $175.9 million, up 34% and 12% on a sequential basis. On a same-store basis2, PLO increased 29% year-over-year and 12% sequentially.
In the fourth quarter, total revenues increased 15% and net revenues increased 33%, reflecting improved PSC and merchandise sales gross profit. For the full year, total revenues decreased 11% and net revenues were flat, reflecting lower average PLO (driving lower PSC) for the year, offset by improved sales profit margins.
Merchandise sales gross profit margin was 41% in the fourth quarter, up from 31%. For the full year, merchandise sales gross profit margin was 42% compared to 33%. These improvements reflect the commitment to improving the core business by driving down aged general merchandise (now less than 1% of total general merchandise inventory) and focusing on selling inventory in the first 90 days.
For the fourth quarter, PSC increased 32% due to an increase in the average PLO balance during the quarter. Though PLO significantly increased during the year, average PLO for fiscal 2021 was lower than in fiscal 2020, which led to a full year PSC decrease of 5%.
Net inventory increased 16% year-over-year and 20% sequentially, reflecting an increase in pawn activity. Due to significant improvements at the store level, inventory turnover remained strong at a flat 2.8x for the fourth quarter and increased from 2.4x to 2.9x for the year.
In the fourth quarter, store expenses increased $11.1 million or 14.3%, primarily due to the store count increase of 14.2% and increased incentive compensation. On a same-store basis, store expenses increased 7%. In addition, general and administrative expenses increased $11.8 million or 314%, primarily due to increased incentive compensation. For the full year, when removing the fiscal 2020 incentive compensation reversal of $20.9 million, store expenses on a same-store basis decreased $15.9 million or 5% and G&A expenses decreased $14.6 million or 21%.



Cash and cash equivalents at the end of the quarter was $253.7 million, down $50.9 million or 17% and $30.0 million or 11% on a sequential basis. The decrease is primarily due to the increase in PLO and the acquisition of new stores.
SEGMENT RESULTS
U.S. Pawn
PLO continued to increase, ending the year up 28% (27% on a same store basis) and up 16% compared to the end of the third quarter.
In the fourth quarter, total revenue was up 12% and net revenues increased 21%, reflecting increasing PSC, higher sales and improved merchandise sales gross profit. For the full year, total revenues decreased 13% and net revenues decreased 3%, reflecting lower average PLO for the year (driving lower PSC) offset by improved sales profit margins.
For the fourth quarter, merchandise sales gross profit gross margins continued to remain high at 43% compared to 37%. During the year, merchandise sales gross profit gross margins increased 768 bps to 44%, reflecting a focus on improving retailing and lower levels of aged general merchandise inventory (which improved to 0.7% from 4.3% of total merchandise inventory).
PSC increased 22% in the fourth quarter as a result of higher average PLO. Though PLO significantly increased during the year, the average PLO for the year was lower than in fiscal 2020 which led to a full year PSC decrease of 6%.
Net inventory increased 9% and 19% sequentially. Inventory turnover continued to improve, increasing to 2.7x from 2.5x for the prior year quarter and increasing to 2.7x from 2.3x for the year.
In the fourth quarter, store expenses increased 9% or $5.4 million to $65.1 million, primarily due to the increase of incentive compensation of approximately $7.0 million, reflecting improved performance compared to the prior year. For the full year, when removing the fiscal 2020 incentive compensation reversal, store expenses on a same-store basis decreased $11.9 million or 4%, reflecting expense optimization.
Segment contribution increased $13.3 million to $20.9 million in the fourth quarter and increased $12.4 million to $85.5 million for the year. On an adjusted basis, segment contribution increased $10.2 million in the quarter and decreased $3.5 million in the year.
Segment store count increased by 11 during the year resulting from the acquisition in the Houston, Texas area completed in May.
Latin America Pawn
PLO significantly improved, increasing 60% to $40.0 million (51% on constant currency basis). On a sequential basis, PLO was flat compared to a 5% sequential decrease in the prior-year quarter. On a same store basis, PLO increased 37% (29% on a constant currency basis) and decreased 2% (increased 2% on a constant currency basis) sequentially.
In the fourth quarter, total revenue was up 27% (18% on a constant currency basis), while net revenues increased 91% (78% on a constant currency basis). For the fiscal year, total revenues were down 3% (6% on a constant currency basis), while net revenues increased by 14% (11% on a constant currency basis) reflecting significantly improved margins.
Merchandise sales gross profit margins significantly improved in the fourth quarter to 34% compared to 13%. During the year, merchandise sales gross profit gross margins increased 1,270 bps to 35% (up 1,266 bps to 35% on a constant currency basis), reflecting a focus on improving retailing and lower levels of aged general merchandise inventory (which improved to 0.3% from 7.8% of total merchandise inventory).
PSC increased by 66% in the fourth quarter to $20.0 million (up 55% to $18.7 million on a constant currency basis) as a result of higher average PLO for the quarter. For the fiscal year, PSC increased 1% (down 2% on a constant currency basis) as a result of lower average PLO for the year.
Net inventory increased 42% (34% on a constant currency basis), but was up 24% sequentially (up 31% on a constant currency basis). Inventory turnover remains strong at 3.3x down from 3.8x for the prior year quarter and increased substantially for the year to 3.7x from 2.8x.




In the fourth quarter, store expenses increased $7.1 million or 43% ($4.9 million or 30% on a constant currency basis) primarily due to growth in store count and the increase in incentive compensation, reflecting improved performance compared to fiscal 2020. Same-store expenses increased $2.4 million or 15% ($0.9 million or 5% on a constant currency basis). For the full year, when removing the fiscal 2020 incentive compensation reversal, store expenses on a same-store basis increased $1.7 million or 2% (down 1% on a constant currency basis).
Segment contribution for the fourth quarter was $6.1 million ($5.8 million on a constant currency basis), compared to a segment loss of $3.9 million in the prior year quarter. For the year, segment contribution was up by $44.0 million to $17.3 million (a $43.2 million increase to $16.7 million on a constant currency basis). On an adjusted basis, the increase in segment contribution for the fourth quarter was $7.0 million to $6.3 million and the increase for the year was $5.2 million to $17.6 million.
Segment store count increased by 5 de novo stores during the fourth quarter and increased by 132 stores for the year through acquisitions and de novo stores.
FORM 10-K
EZCORP’s Annual Report on Form 10-K for fiscal 2021 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.
CONFERENCE CALL
EZCORP will host a conference call on Thursday, November 18, 2021, at 7:00 am Central Time to discuss Fourth Quarter and Full Year Fiscal 2021 results. Analysts and institutional investors may participate on the conference call by dialing (833) 579-0921, Conference ID: 1962857, or internationally by dialing (778) 560-2579. 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 transactions in the United States and Latin America. We also sell merchandise, primarily collateral forfeited from pawn lending operations and pre-owned and recycled 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. 
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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.
2”Same Store” basis, which is a non-GAAP measure, includes stores open the entirety of the comparable periods.
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.


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

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
Three Months Ended
September 30,
Twelve Months Ended
September 30,
(in thousands, except per share amounts)2021202020212020
(Unaudited)
Revenues:
Merchandise sales$111,982 $105,118 $442,798 $498,213 
Jewelry scrapping sales7,518 6,244 26,025 47,953 
Pawn service charges72,840 55,231 260,196 272,638 
Other revenues104 246 532 3,973 
Total revenues192,444 166,839 729,551 822,777 
Merchandise cost of goods sold66,346 72,770 257,218 334,481 
Jewelry scrapping cost of goods sold6,772 4,512 22,848 38,041 
Other cost of revenues— (39)— 1,054 
Net revenues119,326 89,596 449,485 449,201 
Operating expenses:
Store expenses88,576 77,506 330,837 336,770 
General and administrative15,625 3,778 56,495 54,133 
Impairment of goodwill, intangible and other assets— 7,606 — 54,666 
Depreciation and amortization7,592 7,653 30,672 30,827 
(Gain) loss on sale or disposal of assets and other(7)(459)83 801 
Other charges(268)20,388 229 20,388 
Total operating expenses111,518 116,472 418,316 497,585 
Operating income (loss)7,808 (26,876)31,169 (48,384)
Interest expense5,635 5,883 22,177 22,472 
Interest income(559)(761)(2,477)(3,173)
Equity in net (income) loss of unconsolidated affiliates(1,394)(3,467)(3,803)2,429 
Other (income) expense(401)198 (790)(17)
Income (loss) before income taxes4,527 (28,729)16,062 (70,095)
Income tax expense (benefit)2,974 (5,389)7,450 (1,632)
Net income (loss)$1,553 $(23,340)$8,612 $(68,463)
Basic earnings (loss) per share $0.03 $(0.42)$0.15 $(1.24)
Diluted earnings (loss) per share $0.03 $(0.42)$0.15 $(1.24)
Weighted-average basic shares outstanding56,057 55,070 55,744 55,313 
Weighted-average diluted shares outstanding56,441 55,070 55,949 55,313 





EZCORP, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)September 30,
2021
September 30,
2020
Assets:
Current assets:
Cash and cash equivalents$253,667 $304,542 
Restricted cash9,957 8,011 
Pawn loans175,901 131,323 
Pawn service charges receivable, net29,337 20,580 
Inventory, net110,989 95,891 
Notes receivable, net— — 
Prepaid expenses and other current assets31,010 32,903 
Total current assets610,861 593,250 
Investments in unconsolidated affiliates37,724 32,458 
Property and equipment, net53,811 56,986 
Right-of-use asset, net200,990 183,809 
Goodwill285,758 257,582 
Intangible assets, net62,104 58,638 
Notes receivable, net1,181 1,148 
Deferred tax asset, net9,746 8,931 
Other assets4,736 4,221 
Total assets$1,266,911 $1,197,023 
Liabilities and equity:
Current liabilities:
Current maturities of long-term debt, net$— $213 
Accounts payable, accrued expenses and other current liabilities90,268 71,504 
Customer layaway deposits12,557 11,008 
Lease liability52,263 49,742 
Total current liabilities155,088 132,467 
Long-term debt, net264,186 251,016 
Deferred tax liability, net3,684 524 
Lease liability161,330 153,040 
Other long-term liabilities10,385 10,849 
Total liabilities594,673 547,896 
Commitments and contingencies (Note 13)
Stockholders’ equity:
Class A Non-Voting Common Stock, par value $0.01 per share; shares authorized: 100 million; 53,086,438 issued and outstanding as of September 30, 2021; and issued and outstanding of 52,332,848 as of September 30, 2020530 521 
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171 as of September 30, 2021 and 202030 30 
Additional paid-in capital403,312 398,475 
Retained earnings326,781 318,169 
Accumulated other comprehensive loss(58,415)(68,068)
Total equity672,238 649,127 
Total liabilities and equity$1,266,911 $1,197,023 




EZCORP, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
Twelve Months Ended
September 30,
(in thousands)20212020
Operating activities:
Net income (loss)$8,612 $(68,463)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization30,672 30,827 
Amortization of debt discount and deferred financing costs13,797 13,200 
Amortization of right-of-use asset48,480 45,649 
Accretion of notes receivable discount and deferred compensation fee— (821)
Deferred income taxes3,283 (8,393)
Impairment of goodwill, intangibles and other assets— 54,666 
Other adjustments(185)1,652 
Provision for inventory reserve(8,003)2,577 
Stock compensation expense3,946 (5,094)
Equity in net (income) loss from investment in unconsolidated affiliates(3,803)2,429 
Changes in operating assets and liabilities, net of business acquisitions:
Service charges and fees receivable(7,332)11,021 
Inventory371 14,466 
Prepaid expenses, other current assets and other assets7,373 (875)
Accounts payable, accrued expenses and other liabilities(54,209)(37,401)
Customer layaway deposits1,256 (1,647)
Income taxes2,180 (4,715)
Net cash provided by operating activities46,438 49,078 
Investing activities:
Loans made(601,638)(568,368)
Loans repaid351,092 394,469 
Recovery of pawn loan principal through sale of forfeited collateral208,551 304,323 
Capital expenditures, net(23,601)(28,526)
Acquisitions, net of cash acquired(19,015)— 
Principal collections on notes receivable— 8,000 
Net cash (used in) provided by investing activities(84,611)109,898 
Financing activities:
Taxes paid related to net share settlement of equity awards(839)(1,459)
Payout of deferred consideration— (350)
Proceeds from borrowings, net of issuance costs— 912 
Payments on assumed debt and other borrowings(15,414)(198)
Repurchase of common stock— (5,158)
Net cash used in financing activities(16,253)(6,253)
Effect of exchange rate changes on cash and cash equivalents and restricted cash5,497 (2,612)
Net (decrease) increase in cash and cash equivalents and restricted cash(48,929)150,111 
Cash and cash equivalents and restricted cash at beginning of period312,553 162,442 
Cash and cash equivalents and restricted cash at end of period$263,624 $312,553 
Supplemental disclosure of cash flow information
Cash and cash equivalents$253,667 $304,542 
Restricted cash9,957 8,011 
Total cash and cash equivalents and restricted cash$263,624 $312,553 
Cash paid during the period for interest$8,230 $8,489 
Cash paid during the period for income taxes, net3,696 9,753 
Non-cash investing and financing activities:
Pawn loans forfeited and transferred to inventory$212,756 $241,252 
Transfer of consideration for current period acquisition1,545 — 
Acquisition earn-out contingency4,608 — 
Accrued acquisition consideration held as restricted cash1,986 — 



EZCORP, Inc.
OPERATING SEGMENT RESULTS
(Unaudited)
Three Months Ended September 30, 2021
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$80,950 $31,032 $— $111,982 $— $111,982 
Jewelry scrapping sales5,767 1,751 — 7,518 — 7,518 
Pawn service charges52,885 19,955 — 72,840 — 72,840 
Other revenues22 — 82 104 — 104 
Total revenues139,624 52,738 82 192,444 — 192,444 
Merchandise cost of goods sold45,858 20,488 — 66,346 — 66,346 
Jewelry scrapping cost of goods sold5,130 1,642 — 6,772 — 6,772 
Net revenues88,636 30,608 82 119,326 — 119,326 
Segment and corporate expenses (income):
Store expenses65,088 23,488 — 88,576 — 88,576 
General and administrative— — — — 15,625 15,625 
Depreciation and amortization2,678 1,912 — 4,590 3,002 7,592 
Gain on sale or disposal of assets and other— (6)— (6)(1)(7)
Other charges— (268)— (268)— (268)
Interest expense— — — — 5,635 5,635 
Interest income— (197)— (197)(362)(559)
Equity in net income of unconsolidated affiliates— — (1,394)(1,394)— (1,394)
Other (income) expense— (465)10 (455)54 (401)
Segment contribution $20,870 $6,144 $1,466 $28,480 
Income (loss) before income taxes$28,480 $(23,953)$4,527 






Three Months Ended September 30, 2020
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$77,862 $27,256 $— $105,118 $— $105,118 
Jewelry scrapping sales3,786 2,458 — 6,244 — 6,244 
Pawn service charges43,222 12,009 — 55,231 — 55,231 
Other revenues43 (50)253 246 — 246 
Total revenues124,913 41,673 253 166,839 — 166,839 
Merchandise cost of goods sold49,056 23,714 — 72,770 — 72,770 
Jewelry scrapping cost of goods sold2,634 1,878 — 4,512 — 4,512 
Other cost of revenues— 32 (71)(39)— (39)
Net revenues73,223 16,049 324 89,596 — 89,596 
Segment and corporate expenses (income):
Store expenses59,687 16,423 1,396 77,506 — 77,506 
General and administrative— — — — 3,778 3,778 
Impairment of goodwill, intangible and other assets— 25 27 7,579 7,606 
Depreciation and amortization2,705 1,839 4,552 3,101 7,653 
Loss (gain) on sale or disposal of assets and other151 — — 151 (610)(459)
Other Charges3,106 1,715 3,802 8,623 11,765 20,388 
Interest expense— 255 85 340 5,543 5,883 
Interest income— (425)— (425)(336)(761)
Equity in net income of unconsolidated affiliates— — (3,467)(3,467)— (3,467)
Other expense (income)— 147 (8)139 59 198 
Segment contribution (loss)$7,574 $(3,907)$(1,517)$2,150 
Income (loss) before income taxes$2,150 $(30,879)$(28,729)






Twelve Months Ended September 30, 2021
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$341,495 $101,303 $— $442,798 $— $442,798 
Jewelry scrapping sales15,260 10,765 — 26,025 — 26,025 
Pawn service charges196,721 63,475 — 260,196 — 260,196 
Other revenues105 420 532 — 532 
Total revenues553,581 175,550 420 729,551 — 729,551 
Merchandise cost of goods sold191,039 66,179 — 257,218 — 257,218 
Jewelry scrapping cost of goods sold13,001 9,847 — 22,848 — 22,848 
Net revenues349,541 99,524 420 449,485 — 449,485 
Segment and corporate expenses (income):
Store expenses253,344 77,493 — 330,837 — 330,837 
General and administrative— — — — 56,495 56,495 
Depreciation and amortization10,650 7,371 — 18,021 12,651 30,672 
Loss (gain) on sale or disposal of assets and other27 (6)— 21 62 83 
Other charges— 229 — 229 — 229 
Interest expense— — — — 22,177 22,177 
Interest income— (2,016)— (2,016)(461)(2,477)
Equity in net income of unconsolidated affiliates— — (3,803)(3,803)— (3,803)
Other (income) expense— (840)(173)(1,013)223 (790)
Segment contribution $85,520 $17,293 $4,396 $107,209 
Income (loss) before income taxes$107,209 $(91,147)$16,062 



Twelve Months Ended September 30, 2020
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$391,921 $106,292 $— $498,213 $— $498,213 
Jewelry scrapping sales36,691 11,262 — 47,953 — 47,953 
Pawn service charges210,081 62,557 — 272,638 — 272,638 
Other revenues150 — 3,823 3,973 — 3,973 
Total revenues638,843 180,111 3,823 822,777 — 822,777 
Merchandise cost of goods sold251,544 82,937 — 334,481 — 334,481 
Jewelry scrapping cost of goods sold28,064 9,977 — 38,041 — 38,041 
Other cost of revenues— 101 953 1,054 — 1,054 
Net revenues359,235 87,096 2,870 449,201 — 449,201 
Segment and corporate expenses (income):
Store expenses261,608 69,916 5,246 336,770 — 336,770 
General and administrative— — — — 54,133 54,133 
Impairment of goodwill, intangible and other assets10,000 35,938 1,149 47,087 7,579 54,666 
Depreciation and amortization11,030 7,315 68 18,413 12,414 30,827 
Loss (gain) on sale or disposal of assets and other385 (72)(20)293 508 801 
Other Charges3,106 1,715 3,802 8,623 11,765 20,388 
Interest expense— 685 549 1,234 21,238 22,472 
Interest income— (1,586)— (1,586)(1,587)(3,173)
Equity in net loss of unconsolidated affiliates— — 2,429 2,429 — 2,429 
Other (income) expense— (156)(150)133 (17)
Segment contribution (loss)$73,106 $(26,659)$(10,359)$36,088 
Income (loss) before income taxes$36,088 $(106,183)$(70,095)



EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
 
Three Months Ended September 30, 2021
 U.S. PawnLatin America PawnConsolidated
As of June 30, 2021516 627 1,143 
New locations opened— 
As of September 30, 2021516 632 1,148 
 
Three Months Ended September 30, 2020
 U.S. PawnLatin America PawnOther InternationalConsolidated
As of June 30, 2020511 496 22 1,029 
New locations opened— — 
Locations sold, combined or closed(6)(3)(22)(31)
As of September 30, 2020
505 500 — 1,005 
 
Twelve Months Ended September 30, 2021
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2020505 500 1,005 
New locations opened— 15 15 
Locations acquired11 128 139 
Locations sold, combined or closed— (11)(11)
As of September 30, 2021516 632 1,148 
 
Twelve Months Ended September 30, 2020
 U.S. PawnLatin America PawnOther InternationalConsolidated
As of September 30, 2019512 480 22 1,014 
New locations opened— 23 — 23 
Locations sold, combined or closed(7)(3)(22)(32)
As of September 30, 2020505 500 — 1,005 



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, Guatemalan quetzales 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 twelve months ended September 30, 2021 and 2020 were as follows:
September 30,
Three Months Ended
September 30,
Twelve Months Ended
September 30,
202120202021202020212020
Mexican peso20.5 22.3 20.0 22.1 20.2 21.1 
Guatemalan quetzal7.6 7.6 7.6 7.5 7.6 7.5 
Honduran lempira23.9 24.2 23.5 24.3 23.8 24.3 
Peruvian sol4.1 3.6 4.0 3.5 3.7 3.4 
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
Three Months Ended
September 30,
Twelve Months Ended
September 30,
(in millions)2021 2020 2021 2020
Net income (loss)$1.6 $(23.3)$8.6 $(68.5)
Interest expense5.6 5.9 22.2 22.5 
Interest income(0.6)(0.8)(2.5)(3.2)
Income tax expense (benefit)3.0 (5.4)7.5 (1.6)
Depreciation and amortization7.6 7.7 30.7 30.8 
EBITDA$17.2 $(16.0)$66.5 $(20.0)




Total RevenuesNet RevenuesIncome (Loss) Before TaxTax EffectNet Income (Loss)Diluted EPS EBITDA
2021 Q4 Reported$192.4 $119.3 $4.5 $2.9 $1.6 $0.03 $17.2 
Acquisition expenses— — 1.5 0.1 1.4 0.02 1.5 
Peru reserve— — (0.3)— (0.3)— (0.3)
Non cash net interest expense— — 3.6 0.1 3.5 0.06 — 
Constant currency impact(3.7)(2.1)(0.3)(0.1)(0.2)— (0.3)
2021 Q4 Adjusted$188.7 $117.2 $9.0 $3.0 $6.0 $0.11 $18.1 
Total RevenuesNet RevenuesIncome (Loss) Before TaxTax EffectNet Income (Loss)Diluted EPS EBITDA
2021 Full Year Reported$729.6 $449.5 $16.1 $7.5 $8.6 $0.15 $66.5 
Acquisition expenses— — 2.0 0.4 1.6 0.03 2.0 
Peru reserve— — 0.2 0.1 0.1 — 0.2 
FY20 Contract write-off over-accrual— — (0.4)(0.1)(0.3)(0.01)(0.4)
Non cash net interest expense— — 13.8 2.3 11.5 0.21 — 
Constant currency impact(5.5)(3.2)(0.6)(0.1)(0.5)— (0.8)
2021 Full Year Adjusted$724.1 $446.3 $31.1 $10.1 $21.0 $0.38 $67.5 
Total RevenuesNet Revenues(Loss) Income Before TaxTax EffectNet (Loss) IncomeDiluted EPSEBITDA
2020 Q4 Reported$166.8 $89.6 $(28.7)$(5.4)$(23.3)$(0.42)$(16.0)
Other Charges— — 20.4 3.7 16.7 0.30 20.4 
Impairment of intangible assets— — 7.6 1.7 5.9 0.11 7.6 
Non cash interest— — 3.3 0.8 2.5 0.05 — 
Other adjustments— — 0.7 (1.7)2.4 0.04 0.3 
2020 Q4 Adjusted$166.8 $89.6 $3.3 $(0.9)$4.2 $0.08 $12.3 



Total RevenuesNet Revenues(Loss) Income Before TaxTax EffectNet (Loss) IncomeDiluted EPSEBITDA
2020 Full Year Reported$822.8 $449.2 $(70.1)$(1.6)$(68.5)$(1.24)$(20.0)
Other Charges— — 20.4 1.9 18.5 0.34 20.4 
Impairment of intangible assets— — 47.1 4.5 42.6 0.77 47.1 
ROU asset impairment— — 5.0 0.5 4.5 0.08 5.0 
COVID-19 related expenses— — 1.4 0.1 1.3 0.02 1.4 
Shrink/robbery/property loss (US stores)— 2.3 2.3 0.2 2.1 0.04 2.3 
Mexico VAT adjustment costs— — 1.1 0.1 1.0 0.02 1.1 
CCV adjustments— — 7.1 0.7 6.4 0.12 7.1 
IT Project write-offs— — 2.6 0.2 2.4 0.04 2.6 
Non cash interest expense— — 12.4 1.2 11.2 0.20 — 
Other adjustments— — 0.1 — 0.1 — (0.7)
2020 Full Year Adjusted$822.8 $451.5 $29.4 $7.8 $21.6 $0.39 $66.3 

Three Months Ended
September 30, 2021
Twelve Months Ended
September 30, 2021
(in millions)U.S. Dollar AmountPercentage Change YOYU.S. Dollar AmountPercentage Change YOY
Consolidated revenue $192.4 15 %$729.6 (11)%
Currency exchange rate fluctuations(3.7)(5.5)
Constant currency consolidated revenue$188.7 13 %$724.1 (12)%
Consolidated net revenue $119.3 33 %$449.5 — %
Currency exchange rate fluctuations(2.1)(3.2)
Constant currency consolidated net revenue$117.2 31 %$446.3 (1)%
Consolidated net inventory$111.0 16 %$111.0 16 %
Currency exchange rate fluctuations(1.8)(1.8)
Constant currency consolidated net inventory$109.2 14 %$109.2 14 %
Latin America Pawn net revenue $30.6 91 %$99.5 14 %
Currency exchange rate fluctuations(2.1)(3.1)
Constant currency Latin America Pawn net revenue $28.5 77 %$96.4 11 %
Latin America Pawn PLO$40.0 60 %$40.0 60 %
Currency exchange rate fluctuations(2.3)(2.3)
Constant currency Latin America Pawn PLO$37.7 51 %$37.7 51 %
Latin America Pawn PSC revenues $20.0 66 %$63.5 %
Currency exchange rate fluctuations(1.3)(2.0)
Constant currency Latin America Pawn PSC revenues $18.6 55 %$61.5 (2)%
Latin America Pawn merchandise sales $31.0 14 %$101.3 (5)%
Currency exchange rate fluctuations(2.3)(3.1)
Constant currency Latin America Pawn merchandise sales $28.7 %$98.2 (8)%
Latin America Pawn segment profit before tax$6.1 257 %$17.3 165 %
Currency exchange rate fluctuations(0.3)(0.6)
Constant currency Latin America Pawn segment profit before tax$5.8 249 %$16.7 163 %

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Ticker: EZPW
CIK: 876523
Form Type: 8-K Corporate News
Accession Number: 0000876523-21-000069
Submitted to the SEC: Wed Nov 17 2021 4:52:44 PM EST
Accepted by the SEC: Wed Nov 17 2021
Period: Wednesday, November 17, 2021
Industry: Retail Miscellaneous Retail
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Regulated Disclosure

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