Ezcorp Inc (EZPW) 10-Q Quarterly Report February 2022

EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its first quarter ended December 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.

FIRST QUARTER HIGHLIGHTS

•Pawn loans outstanding (PLO) was up 19%.

•Total revenue increased 24%, and net revenue increased 22%.

•Merchandise sales gross profit margin remains high at 40%.

•Diluted earnings per share of $0.21 were up significantly from $0.08. On an adjusted basis1, diluted earnings per share were $0.22, compared to diluted earnings per share of $0.13.

•Return on earning assets (ROEA) remains strong at 177%.

CEO COMMENTARY AND OUTLOOK

Co-Interim Chief Executive Officer Lachie Given stated, “It was a very strong first quarter, as our passionate and productive team continued to execute on the plan we put in place at the end of fiscal 2020. These initiatives are driving better returns and improved financial metrics. PLO continues to recover, getting closer to pre-pandemic levels, and margins remain strong as our team has adopted the changes we implemented 18 months ago to improve inventory turns and reduce aged merchandise.

“In the first quarter we invested in a company with interests in 20 pawn stores primarily in the Caribbean with plans for further expansion. Our acquisition pipeline remains robust and we will continue to look for opportunities to diversify into new pawn markets.

“We are truly proud to provide a unique and essential service to our customers, that by its very nature contributes to the circular economy by extending the useful life of items and reducing waste. I am very excited to continue working with this team as we go forward to collectively grow the business and increase value for our shareholders,” concluded Given.

Co-Interim Chief Executive Officer Blair Powell said, “In my 30 plus years at EZCORP I have never before seen the level of enthusiasm and pride throughout the organization. Our team has thoroughly embraced our operating themes of People, Pawn and Passion. At every level the focus is on looking for ways to be more efficient and cost effective and to provide the optimal customer experience. Our refocused efforts continue to deliver tangible results, as we have seen our store level operating metrics continue to improve.

“Improving the customer experience is essential to our mission. The launch of our points-based loyalty program incentivizes customers to transact with us and has performed better than expected in the first quarter. We continue to enhance our online payment options and roll out our online showcase in selected markets for customers to view inventory. Our team members and customers drive our success, and we are laser focused on doing everything we can to optimize the customer and team member experience throughout the company,” concluded Powell.

The following information was filed by Ezcorp Inc (EZPW) on Wednesday, February 2, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Ezcorp Inc's 10-Q Quarterly Report:

Other - Other Highlight
Important risk factors that could cause results or events to differ from current expectations are identified and described in "Part I, Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended September 30, 2021 and "Part II, Item 1A - Risk Factors" of this Report.

Financial - Cash Flow Highlight
Cash Flows The table and discussion below presents a summary of the selected sources and uses of our cash: The increase in cash flows provided by operating activities year-over-year was primarily due to a $11.4 million increase in net income.
Other - Other Highlight
See "Part I, Item 1A - Risk Factors" of our Annual Report on Form 10-K for the year ended September 30, 2021, as supplemented by the information set forth in "Part I, Item 3 - Quantitative and Qualitative Disclosures about Market Risk" and "Part II, Item 1A - Risk Factors" of this Report, for a discussion of certain risks, uncertainties and assumptions associated with these statements.
Financial - Expense Highlight
Interest expense decreased $3.0 million primarily driven by the ASU 2020-06 accounting policy change which no longer requires debt discount be included on our balance sheet effective October 1, 2021.
Other - Other Highlight
Sources and Uses of Cash In December 2019, our Board of Directors authorized a stock repurchase program that will allow us to repurchase up to $60 million of our Class A Non-voting Common Stock over three years.
Financial - Cash Flow
We anticipate that cash flows...Read more
Financial - Shares
This purchase increased our total...Read more
Other - Other
Results of Operations Non-GAAP Constant...Read more
Financial - Expense
Store expenses increased $4.9 million...Read more
Financial - Cash Flow
The $15.5 million increase in...Read more
Other - Other
At December 31, 2021, our...Read more
Revenue - Geography
In Latin America, most of...Read more
Financial - Expense
On a same-store basis, store...Read more
Financial - Debt
The effect of eliminating our...Read more
Revenue - Product
Merchandise sales gross profit increased...Read more
Financial - Expense
Store expenses increased 4% primarily...Read more
Financial - Income
25 Table of Contents Income...Read more
Financial - Earnings
Other Items The following table...Read more
Revenue - Product
Overall, merchandise sales gross profit...Read more
Financial - Debt
Recently Adopted Accounting Policies and...Read more
Mgmt Change - Other
The same day, the Board...Read more
Financial - Expense
General and administrative expenses increased...Read more
Revenue - Geography
23 Table of Contents Latin...Read more
Revenue - Product
During the latter part of...Read more
Revenue - Product
Merchandise sales increased 24% compared...Read more
Revenue - Geography
These items include the net...Read more
Other - Other
This non-GAAP financial information may...Read more
Revenue - Geography
Other Investments The following table...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Ezcorp Inc provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: EZPW
CIK: 876523
Form Type: 10-Q Quarterly Report
Accession Number: 0000876523-22-000019
Submitted to the SEC: Wed Feb 02 2022 4:05:26 PM EST
Accepted by the SEC: Wed Feb 02 2022
Period: Friday, December 31, 2021
Industry: Retail Miscellaneous Retail