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Ezcorp Inc (EZPW) SEC Filing 8-K Material Event for the period ending Wednesday, May 4, 2022

Ezcorp Inc

CIK: 876523 Ticker: EZPW

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EZCORP Reports Second Quarter 2022 Results
PLO Up 39%; Revenue up 17%; Net Income up 179%
Board of Directors Authorizes a Three-Year $50 Million Share Repurchase Program
Austin, Texas (May 4, 2022) —
EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its second quarter ended March 31, 2022.
Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") and comparisons shown are to the same period in the prior year.
SECOND QUARTER HIGHLIGHTS
Pawn loans outstanding (PLO) was up 39%.
Total revenue increased 17%, and net revenue increased 13%.
Merchandise sales gross profit margin was at the high end of our stated range at 38%.
Net income increased 179%.
Diluted earnings per share of $0.20 were up significantly from $0.10. On an adjusted basis1, diluted earnings per share were $0.22, compared to $0.17 in the prior-year quarter.
Return on earning assets (ROEA) remains strong at 175%.
CEO COMMENTARY AND OUTLOOK
Chief Executive Officer Lachie Given stated, “We continue to execute on the plan we put in place at the end of fiscal 2020 and drove another quarter of successful results. We had a significant increase in net income, and PLO continues to grow strongly. PLO is at the highest level it has ever been at the end of the second quarter, and is now within 4% of pre-pandemic levels on a same store basis.
“Our Board of Directors has approved a new three-year share repurchase program for up to $50 million that enables us to return capital to shareholders by buying back shares at what we believe to be attractive valuations. This share repurchase program underscores our confidence in our balance sheet and strong cash flow generation. We believe our consistent and positive business momentum provides us with capacity to return cash to shareholders while continuing to innovate and grow the business.
“In the second quarter, we opened three de novo stores in Latin America, and after the end of the quarter, we acquired three stores in the Dallas, Texas area. We continue to look for opportunities to grow and diversify in new and established pawn markets.
“We have expanded our EZ+ Rewards program beyond the US and Mexico into Guatemala. We are now live in our three largest regions, with over 900,000 customers enrolled. We have also improved our online customer experience with live chat support. Our focus is on providing our customers with a unique and essential service by addressing their short-term cash needs, as well as an environmentally friendly retail experience. The nature of our business contributes to the circular economy, extending the useful life of items and reducing waste, and we are looking to further expand our customer base with programs focused on environmentally conscious consumers.
“Improving the experience for team members as well as our customers is the foundation for improving our financial results. Attracting and retaining talent is a high priority. We engage with team members at all levels to understand their goals, identify future leaders and make sure we are rewarding performance.
“People, Pawn and Passion is our operating theme, and our team is focused on improving efficiency, optimizing costs and providing the best experience for our customers. I am extremely proud of our team members, who have driven another successful quarter. We are committed to continuous improvement for all stakeholders: our team, our customers and our shareholders.”



CONSOLIDATED RESULTS
Three Months Ended March 31
As Reported
Adjusted1
in millions, except per share amounts2022202120222021
Total revenues$216.0 $184.9 $216.3 $184.9 
Net revenues$128.9 $113.7 $129.1 $113.7 
Income before tax$20.1 $6.8 $22.3 $10.4 
Net income $14.9 $5.3 $16.6 $9.5 
Diluted earnings per share $0.20 $0.10 $0.22 $0.17 
EBITDA (non-GAAP measure)$29.8 $19.8 $32.1 $20.0 
Diluted earnings per share were $0.20 for the second quarter, up from $0.10. On an adjusted basis, diluted earnings per share were $0.22, up from $0.17.
Income before taxes improved by 196% to $20.1 million, while adjusted EBITDA increased 61% to $32.1 million.
PLO increased 39% to $173.6 million, up $48.4 million. On a same-store basis2, PLO increased 33% due to increased loan demand reflecting a recovery towards pre-COVID levels.
Total revenues increased 17%, and net revenues increased 13%, reflecting improved pawn service charge (PSC) revenue and merchandise sales.
PSC increased 21% due to an increase in the average PLO balance during the quarter.
Merchandise sales gross profit margin was at the high end of our stated range at 38%, reflecting the commitment to improving the core business by decreasing aged general merchandise (less than 1% of total general merchandise inventory) and focusing on selling inventory in the first 90 days.
Net inventory increased 39% reflecting a return towards normalized inventory levels. Inventory turnover remained strong at 2.9x for the quarter, down from 3.1x.
Store expenses increased 6%, primarily due to increased store count. On a same-store basis, store expenses were flat.
General and administrative expenses decreased 11%, primarily due to the reversal of incentive compensation for the departing CEO.
Cash and cash equivalents at the end of the quarter was $255.0 million, down 24% year-over-year. The decrease is primarily due to the increase in PLO and inventory, strategic investments and the acquisition of new stores.
SEGMENT RESULTS
U.S. Pawn
PLO continued to increase, ending the quarter at $133.5 million, up 40% (39% on a same store basis).
Total revenue was up 10% and net revenues increased 10%, reflecting increasing PSC and higher sales.
PSC increased 19% as a result of higher average PLO.
Merchandise sales gross profit gross margins decreased to 41% from 45% as expected. Aged general merchandise inventory improved to 0.4% from 1.6% of total merchandise inventory.
Net inventory increased 34%. Inventory turnover decreased to 2.6x from 2.9x due to increased inventory levels in the current quarter and stimulus impacts in the prior year.
Store expenses increased 1% primarily due to increased store count.
Segment contribution increased 31% to $33.8 million.



Latin America Pawn
PLO improved to $40.1 million or 34% (31% on constant currency basis). On a same store basis, PLO increased 15% (13% on a constant currency basis).
Total revenue was up 42% (43% on a constant currency basis), while net revenues increased 30% (31% on a constant currency basis).
PSC increased to $17.9 million or 29% (30% on a constant currency basis) as a result of higher average PLO for the quarter.
Merchandise sales gross profit margins decreased from 35% to 29%, reflecting a return to more normalized margins.
Net inventory increased 62% (58% on a constant currency basis). Inventory turnover remains strong at 3.8x, down from 4.0x.
Store expenses increased 22% (22% on a constant currency basis) primarily due to growth in year-over-year store count. Same-store expenses decreased 1% (1% on a constant currency basis).
Segment contribution increased to $4.8 million or 85% (88% on a constant currency basis), compared to $2.6 million.
Segment store count increased by three de novo stores opened during the quarter.
SHARE REPURCHASE PROGRAM
The Board of Directors has approved a new share repurchase program, which will replace the previous program that was suspended in March 2020 at the onset of the COVID-19 pandemic. Under the new program, the Company is authorized to repurchase up to $50 million of our Class A Non-Voting common shares over the next three years. This decision reflects the strength of our balance sheet and the successful recovery from the adverse impacts of the pandemic, as well as the Board’s confidence in our continued ability to generate significant cash flows and our commitment to driving long-term shareholder value through efficient capital deployment. Execution of the program will be responsive to fluctuating market conditions and valuations, liquidity needs and the expected return on investment compared to other opportunities.
Under the stock repurchase program, the Company may purchase Class A Non-Voting common stock from time to time at management’s discretion in accordance with applicable securities laws, including through open market transactions, block or privately negotiated transactions, or any combination thereof. In addition, the Company may purchase shares pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934.
The amount and timing of purchases will be dependent on a variety of factors, including stock price, trading volume, general market conditions, legal and regulatory requirements, general business conditions, the level of cash flows, and corporate considerations determined by management and the Board, such as liquidity and capital needs and the availability of attractive alternative investment opportunities. The Board of Directors has reserved the right to modify, suspend or terminate the program at any time.
FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 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.
CONFERENCE CALL
EZCORP will host a conference call on Thursday, May 5, 2022, at 7:00 am Central Time to discuss Second Quarter Fiscal 2022 results. Analysts and institutional investors may participate on the conference call by dialing (833) 579-0921, Conference ID: 5093419, 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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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



Note: Percentages are calculated from the underlying numbers in millions and, as a result, may not agree to the percentages calculated from numbers in thousands.
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.
2”Same Store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.




EZCORP, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
Six Months Ended
March 31,
(in thousands, except per share amounts)2022202120222021
Revenues:
Merchandise sales$133,556 $115,225 $271,276 $223,008 
Jewelry scrapping sales5,690 6,075 12,634 12,834 
Pawn service charges76,683 63,436 152,708 126,925 
Other revenues, net53 203 358 307 
Total revenues215,982 184,939 436,976 363,074 
Merchandise cost of goods sold82,246 65,790 165,357 130,333 
Jewelry scrapping cost of goods sold4,808 5,401 10,580 10,603 
Net revenues128,928 113,748 261,039 222,138 
Operating expenses:
Store expenses85,743 81,149 172,514 160,458 
General and administrative12,227 13,771 27,772 26,281 
Depreciation and amortization7,450 8,089 15,024 15,661 
(Gain) loss on sale or disposal of assets and other(697)112 (692)90 
Total operating expenses104,723 103,121 214,618 202,490 
Operating income24,205 10,627 46,421 19,648 
Interest expense2,527 5,518 4,958 10,973 
Interest income(255)(585)(559)(1,406)
Equity in net loss (income) of unconsolidated affiliates1,439 (1,250)301 (1,766)
Other expense (income)371 145 251 (454)
Income before income taxes20,123 6,799 41,470 12,301 
Income tax expense5,236 1,469 10,862 2,672 
Net income$14,887 $5,330 $30,608 $9,629 
Basic earnings per share $0.26 $0.10 $0.54 $0.17 
Diluted earnings per share $0.20 $0.10 $0.42 $0.17 
Weighted-average basic shares outstanding56,561 55,661 56,370 55,509 
Weighted-average diluted shares outstanding82,407 55,665 82,270 55,511 





EZCORP, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)March 31,
2022
March 31,
2021
September 30,
2021
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents$254,964 $335,638 $253,667 
Restricted cash8,713 8,006 9,957 
Pawn loans173,618 125,268 175,901 
Pawn service charges receivable, net28,319 20,842 29,337 
Inventory, net119,890 86,214 110,989 
Prepaid expenses and other current assets27,267 30,676 31,010 
Total current assets612,771 606,644 610,861 
Investments in unconsolidated affiliates42,002 34,961 37,724 
Other investments18,000 — — 
Property and equipment, net50,874 51,836 53,811 
Right-of-use asset, net204,343 170,479 200,990 
Goodwill286,214 258,199 285,758 
Intangible assets, net62,145 58,125 62,104 
Notes receivable, net1,198 1,164 1,181 
Deferred tax asset, net15,908 9,693 9,746 
Other assets6,541 5,152 4,736 
Total assets $1,299,996 $1,196,253 $1,266,911 
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable, accrued expenses and other current liabilities$69,695 $69,019 $90,268 
Customer layaway deposits15,046 11,401 12,557 
Lease liability52,446 41,060 52,263 
Total current liabilities137,187 121,480 155,088 
Long-term debt, net312,168 257,143 264,186 
Deferred tax liability, net179 167 3,684 
Lease liability163,506 138,622 161,330 
Other long-term liabilities11,940 9,597 10,385 
Total liabilities624,980 527,009 594,673 
Commitments and Contingencies
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 53,685,333 as of March 31, 2022; 52,873,568 as of March 31, 2021; and 53,086,438 as of September 30, 2021
537 528 530 
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 capital341,913 399,439 403,312 
Retained earnings384,246 327,798 326,781 
Accumulated other comprehensive loss(51,710)(58,551)(58,415)
Total stockholders' equity675,016 669,244 672,238 
Total liabilities and stockholders' equity$1,299,996 $1,196,253 $1,266,911 




EZCORP, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
Six Months Ended
March 31,
(in thousands)20222021
Operating activities:
Net income $30,608 $9,629 
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization15,024 15,661 
Amortization of debt discount and deferred financing costs698 6,754 
Amortization of lease right-of-use asset25,746 23,835 
Deferred income taxes212 (1,119)
Other adjustments(708)(250)
Provision for inventory reserve(1,780)(5,265)
Stock compensation expense2,158 1,618 
Equity in net loss (income) of unconsolidated affiliates301 (1,766)
Changes in operating assets and liabilities:
Service charges and fees receivable687 (106)
Inventory(2,779)6,481 
Prepaid expenses, other current assets and other assets88 3,874 
Accounts payable, accrued expenses and other liabilities(50,258)(43,436)
Customer layaway deposits2,342 238 
Income taxes6,576 2,573 
Dividends from unconsolidated affiliates1,660 — 
Net cash provided by operating activities30,575 18,721 
Investing activities:
Loans made(329,459)(269,468)
Loans repaid199,836 177,888 
Recovery of pawn loan principal through sale of forfeited collateral129,311 109,019 
Capital expenditures, net(10,498)(8,359)
Issuance of note receivable(1,000)— 
Investment in unconsolidated affiliates(3,577)— 
Investment in other investments(16,500)— 
Net cash (used in) provided by investing activities(31,887)9,080 
Financing activities:
Taxes paid related to net share settlement of equity awards(792)(839)
Payments on assumed debt and other borrowings— (871)
Net cash used in financing activities (792)(1,710)
Effect of exchange rate changes on cash and cash equivalents and restricted cash2,157 5,000 
Net increase in cash, cash equivalents and restricted cash53 31,091 
Cash, cash equivalents and restricted cash at beginning of period263,624 312,553 
Cash, cash equivalents and restricted cash at end of period$263,677 $343,644 
Supplemental disclosure of cash flow information
Cash and cash equivalents$254,964 $335,638 
Restricted cash8,713 8,006 
Total cash and cash equivalents and restricted cash$263,677 $343,644 
Non-cash investing and financing activities:
Pawn loans forfeited and transferred to inventory$134,562 $99,285 
Transfer of consideration for other investment1,500 — 



EZCORP, Inc.
OPERATING SEGMENT RESULTS
(Unaudited)
Three Months Ended March 31, 2022
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$100,064 $33,492 $— $133,556 $— $133,556 
Jewelry scrapping sales3,480 2,210 — 5,690 — 5,690 
Pawn service charges58,772 17,911 — 76,683 — 76,683 
Other revenues24 — 29 53 — 53 
Total revenues162,340 53,613 29 215,982 — 215,982 
Merchandise cost of goods sold58,613 23,633 — 82,246 — 82,246 
Jewelry scrapping cost of goods sold2,798 2,010 — 4,808 — 4,808 
Net revenues100,929 27,970 29 128,928 — 128,928 
Segment and corporate expenses (income):
Store expenses64,492 21,251 — 85,743 — 85,743 
General and administrative— — — — 12,227 12,227 
Depreciation and amortization2,625 1,891 — 4,516 2,934 7,450 
Gain on sale or disposal of assets and other— (9)— (9)(688)(697)
Interest expense— — — — 2,527 2,527 
Interest income— (255)— (255)— (255)
Equity in net loss of unconsolidated affiliates— — 1,439 1,439 — 1,439 
Other expense— 334 342 29 371 
Segment contribution (loss)$33,812 $4,758 $(1,418)$37,152 
Income (loss) before income taxes$37,152 $(17,029)$20,123 






Three Months Ended March 31, 2021
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$93,827 $21,398 $— $115,225 $— $115,225 
Jewelry scrapping sales3,581 2,494 — 6,075 — 6,075 
Pawn service charges49,577 13,859 — 63,436 — 63,436 
Other revenues29 — 174 203 — 203 
Total revenues147,014 37,751 174 184,939 — 184,939 
Merchandise cost of goods sold51,812 13,978 — 65,790 — 65,790 
Jewelry scrapping cost of goods sold3,149 2,252 — 5,401 — 5,401 
Net revenues92,053 21,521 174 113,748 — 113,748 
Segment and corporate expenses (income):
Store expenses63,657 17,492 — 81,149 — 81,149 
General and administrative— — — — 13,771 13,771 
Depreciation and amortization2,636 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 94 51 145 
Segment contribution $25,760 $2,621 $1,415 $29,796 
Income (loss) before income taxes$29,796 $(22,997)$6,799 






Six Months Ended March 31, 2022
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$202,142 $69,134 $— $271,276 $— $271,276 
Jewelry scrapping sales8,460 4,174 — 12,634 — 12,634 
Pawn service charges115,329 37,379 — 152,708 — 152,708 
Other revenues46 240 72 358 — 358 
Total revenues325,977 110,927 72 436,976 — 436,976 
Merchandise cost of goods sold116,445 48,912 — 165,357 — 165,357 
Jewelry scrapping cost of goods sold6,773 3,807 — 10,580 — 10,580 
Net revenues202,759 58,208 72 261,039 — 261,039 
Segment and corporate expenses (income):
Store expenses129,181 43,333 — 172,514 — 172,514 
General and administrative— — — — 27,772 27,772 
Depreciation and amortization5,295 3,871 — 9,166 5,858 15,024 
Gain on sale or disposal of assets and other— (4)— (4)(688)(692)
Interest expense— — — — 4,958 4,958 
Interest income— (437)— (437)(122)(559)
Equity in net loss of unconsolidated affiliates— — 301 301 — 301 
Other expense (income)— 200 (4)196 55 251 
Segment contribution (loss)$68,283 $11,245 $(225)$79,303 
Income (loss) before income taxes$79,303 $(37,833)$41,470 



Six Months Ended March 31, 2021
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$176,080 $46,928 $— $223,008 $— $223,008 
Jewelry scrapping sales7,585 5,249 — 12,834 — 12,834 
Pawn service charges99,797 27,128 — 126,925 — 126,925 
Other revenues51 249 307 — 307 
Total revenues283,513 79,312 249 363,074 — 363,074 
Merchandise cost of goods sold99,871 30,462 — 130,333 — 130,333 
Jewelry scrapping cost of goods sold5,993 4,610 — 10,603 — 10,603 
Other cost of revenues— — — — — 
Net revenues177,649 44,240 249 222,138 — 222,138 
Segment and corporate expenses (income):
Store expenses125,749 34,709 — 160,458 — 160,458 
General and administrative— — — — 26,281 26,281 
Depreciation and amortization5,372 3,653 — 9,025 6,636 15,661 
Loss on sale or disposal of assets and other27 — — 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 



EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
 
Three Months Ended March 31, 2022
 U.S. PawnLatin America PawnConsolidated
As of December 31, 2021516 633 1,149 
New locations opened— 
As of March 31, 2022
516 636 1,152 
 
Three Months Ended March 31, 2021
 U.S. PawnLatin America PawnConsolidated
As of December 31, 2020505 500 1,005 
New locations opened— 
As of March 31, 2021
505 506 1,011 
 
Six Months Ended March 31, 2022
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2021516 632 1,148 
New locations opened— 
As of March 31, 2022516 636 1,152 
 
Six Months Ended March 31, 2021
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2020505 500 1,005 
New locations opened— 
As of March 31, 2021505 506 1,011 



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 six months ended March 31, 2022 and 2021 were as follows:
March 31,
Three Months Ended
March 31,
Six Months Ended
March 31,
202220212022202120212020
Mexican peso19.9 20.5 20.5 20.3 20.6 20.4 
Guatemalan quetzal7.5 7.6 7.5 7.6 7.5 7.6 
Honduran lempira24.1 23.7 24.2 23.8 24.0 23.9 
Peruvian sol3.7 3.7 3.8 3.6 3.9 3.6 
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
March 31,
(in millions)20222021
Net income$14.9 $5.3 
Interest expense2.5 5.5 
Interest income(0.3)(0.6)
Income tax expense5.2 1.5 
Depreciation and amortization7.5 8.1 
EBITDA$29.8 $19.8 




Total RevenuesNet RevenuesIncome Before TaxTax EffectNet IncomeDiluted EPS EBITDA
2022 Q2 Reported
$216.0 $128.9 $20.1 $5.2 $14.9 $0.20 $29.8 
CCV Adjustment— — 2.1 0.1 2.0 0.02 2.1 
FX impact— — 0.1 0.1 — — 0.1 
Constant currency impact0.3 0.2 — 0.3 (0.3)— 0.1 
2022 Q2 Adjusted
$216.3 $129.1 $22.3 $5.7 $16.6 $0.22 $32.1 
Total RevenuesNet RevenuesIncome Before TaxTax EffectNet
Income
Diluted EPSEBITDA
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— — — (1.3)1.4 0.02 — 
2021 Q2 Adjusted
$184.9 $113.7 $10.4 $1.0 $9.5 $0.17 $20.0 
Three Months Ended
March 31, 2022
Six Months Ended
March 31, 2022
(in millions)U.S. Dollar AmountPercentage Change YOYU.S. Dollar AmountPercentage Change YOY
Consolidated revenue $216.0 17 %$437.0 20 %
Currency exchange rate fluctuations0.3 0.8 
Constant currency consolidated revenue$216.3 17 %$437.8 21 %
Consolidated net revenue $128.9 13 %$261.0 18 %
Currency exchange rate fluctuations0.1 0.3 
Constant currency consolidated net revenue$129.0 14 %$261.3 18 %
Consolidated net inventory$119.9 39 %$119.9 39 %
Currency exchange rate fluctuations(0.7)(0.7)
Constant currency consolidated net inventory$119.2 38 %$109.2 38 %
Latin America Pawn net revenue $28.0 30 %$58.2 32 %
Currency exchange rate fluctuations0.1 0.3 
Constant currency Latin America Pawn net revenue $28.1 31 %$58.5 32 %
Latin America Pawn PLO$40.1 34 %$40.1 34 %
Currency exchange rate fluctuations(0.9)(0.9)
Constant currency Latin America Pawn PLO$39.2 31 %$39.2 31 %
Latin America Pawn PSC revenues $17.9 29 %$37.4 38 %
Currency exchange rate fluctuations0.1 0.2 
Constant currency Latin America Pawn PSC revenues $18.0 29 %$37.6 38 %
Latin America Pawn merchandise sales $33.5 57 %$69.1 47 %
Currency exchange rate fluctuations0.2 0.6 
Constant currency Latin America Pawn merchandise sales $33.7 57 %$69.7 49 %
Latin America Pawn segment profit before tax$4.8 85 %$11.2 48 %
Currency exchange rate fluctuations— — 
Constant currency Latin America Pawn segment profit before tax$4.8 85 %$11.2 48 %


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________ 
FORM 8-K
_______________________________________________________ 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 4, 2022
 _______________________________________________ 
EZCORP, Inc.
(Exact name of registrant as specified in its charter)
 _______________________________________________________ 
Delaware 0-19424 74-2540145
(State or other jurisdiction
of incorporation)
 (Commission
File Number)
 (IRS Employer
Identification No.)
2500 Bee Cave Road, Bldg One, Suite 200, Rollingwood, Texas 78746
(Address of principal executive offices) (zip code)
Registrant’s telephone number, including area code: (512) 314-3400
_______________________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Non-voting Common Stock, par value $.01 per shareEZPWNASDAQ Stock Market (NASDAQ Global Select Market)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
  Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02 — Results of Operations and Financial Condition
On May 4, 2022, EZCORP, Inc. ("EZCORP") issued a press release announcing its results of operations and financial condition for the quarter ended March 31, 2022. A copy of that press release is attached as Exhibit 99.1.

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.

The information set forth under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference in any filing made by EZCORP under the Securities Act of 1933 or the Securities Exchange Act of 1934.
Item 7.01 — Regulation FD Disclosure
A copy of the presentation materials that management will review during the Company’s earnings conference call (to be held on May 5, 2022) will be posted in the Investor Relations section of the company’s website at www.ezcorp.com.

The information set forth, or referred to, in this Item 7.01 shall not be deemed "filed" for purposes of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference into any registration statement or other filing made by EZCORP under the Securities Act of 1933 or the Securities Exchange Act of 1934, unless such subsequent filing specifically references this Item 7.01 of this Report.
Item 9.01 — Financial Statements and Exhibits
(d)Exhibits.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  EZCORP, INC.
Date:May 4, 2022By: /s/ Timothy K. Jugmans
   Timothy K. Jugmans
   Chief Financial Officer

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Ticker: EZPW
CIK: 876523
Form Type: 8-K Corporate News
Accession Number: 0000876523-22-000044
Submitted to the SEC: Wed May 04 2022 4:09:57 PM EST
Accepted by the SEC: Wed May 04 2022
Period: Wednesday, May 4, 2022
Industry: Retail Miscellaneous Retail
Events:
  1. Earnings Release
  2. Financial Exhibit
  3. Regulated Disclosure

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