EZCORP Reports Third Quarter Fiscal Year 2020 Results

AUSTIN, Texas–(BUSINESS WIRE)–EZCORP, Inc. (NASDAQ: EZPW) today announced results for its fiscal third quarter ended June 30, 2020.

All amounts in this release are from EZCORP continuing operations and 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.

HIGHLIGHTS FOR THIRD QUARTER OF FISCAL 2020

  • Total revenues grew 4% in the quarter to $210.2 million. Retail sales grew 31% to $136.5 million, driven primarily by strong demand for merchandise for working and schooling from home. Net revenues declined 12% driven by a 34% reduction in pawn service (PSC) revenue, partially offset by a 33% increase in merchandise sales gross profit.
  • Operations expenses declined by 3% to $83.8 million while total store count grew by 2%.
  • Loss before taxes was $10.2 million, compared to profit before taxes of $3.5 million in the prior-year quarter. On an adjusted basis1, loss before taxes was $3.5 million, compared to profit before taxes of $13.6 million in the prior-year quarter. Diluted loss per share was $0.10, compared to diluted earnings per share of $0.06 in the prior-year quarter. On an adjusted basis, diluted loss per share was $0.01, compared to diluted earnings per share of $0.16.
  • Pawn loan volume was reduced during the quarter by emergency stimulus payment actions in the U.S. and restrictions on customer movements and localized store closure orders in Latin America. Pawn loans outstanding (PLO) decreased 40% to $113.3 million (down 39% to $116.8 million on a constant currency basis), which led to a 34% reduction in PSC revenue to $52.5 million (down 31% to $54.4 million on a constant currency basis).
  • Net inventory of $123.1 million ($127.1 million on a constant currency basis) decreased 30%, reflecting annualized inventory turnover of 2.9x. Sales margin of 33% increased 40bps despite a $2.2 million adjustment to merchandise cost of goods sold due to looting at 30 stores during riots in the U.S.
  • Cash and cash equivalents increased to $311 million as of June 30, 2020, an increase of over $100 million compared to the prior quarter. The decline in new pawn loan originations and increased merchandise and scrap sales all benefited the cash position.
  • Following a review of strategic alternatives for the non-core CashMax business in Canada, the Company has decided to close the remaining 22 stores. The shutdown of the business and related operations will be substantially completed during the fourth quarter of fiscal 2020 and will result in charges of approximately $8.0 – $10.0 million.

     

CEO COMMENTARY AND OUTLOOK

Chief Executive Officer Jason Kulas stated: “Our results for the fiscal third quarter were highlighted by ongoing revenue growth driven by strong retail sales. As a result of stimulus payments and extended unemployment and forbearance benefits, our customers’ needs for cash were lower in the quarter, driving declines in PLO and PSC. While sales gross profit margins were strong, the tradeoff in higher-margin pawn service charges for lower-margin merchandise sales negatively impacted EBITDA and EPS in the quarter.

In these uncertain times, we are focused on the safety of our team members and customers and on our continued financial strength. Our cash balance grew by over $100 million to $311 million from the second quarter, positioning us to meet our customers’ short-term needs for cash as loan demand rebounds. In addition, our team is focused on increasing the efficiency of our operations, with significant expense reductions planned for fiscal year 2021. These efforts are expected to add an even greater level of resiliency to our business through the current environment and future economic cycles.

In addition to optimizing our cost structure to maximize profitability and better align with near-term PLO trends, we are focused on creating long-term shareholder value by strengthening our core business operations and continuing to innovate and grow. Our optimization of pricing, lending and transactional efficiencies, and the modernization of our IT and data assets, will drive more consistent profitability. Our efforts to give customers more convenient choices, both in-store and through our Lana platform, will result in a superior customer experience, and our continued de novo store growth will give us the opportunity to expand our platform.

Looking ahead, while it will take time for PLO and PSC to rebuild, we remain confident that demand for pawn loans will accelerate, thereby driving higher revenue growth and increased earnings power, particularly as we increasingly rationalize expenses and invest in value-added initiatives.”

CONSOLIDATED RESULTS

Three Months Ended June 30

in millions, except per share amounts

 

 

As Reported

 

Adjusted1

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

Total Revenues

$

210.2

 

 

$

202.5

 

 

$

216.5

 

 

$

207.0

 

Net Revenues

$

102.2

 

 

$

115.9

 

 

$

107.4

 

 

$

120.4

 

(Loss) Income from Continuing Operations, Before Tax

$

(10.2

)

 

$

3.5

 

 

$

(3.5

)

 

$

13.6

 

Net (Loss) Income from Continuing Operations

$

(5.5

)

 

$

3.4

 

 

$

(0.7

)

 

$

8.8

 

Diluted Earnings Per Share from Continuing Operations

$

(0.10

)

 

$

0.06

 

 

$

(0.01

)

 

$

0.16

 

Adjusted EBITDA1

$

2.2

 

 

$

17.4

 

 

$

5.7

 

 

$

21.9

 

  • Total revenues grew 4% to $210.2 million. PSC was down 34% to $52.5 million largely reflecting lower average PLO for the quarter, a result of a lower pawn loan demand during the quarter.
  • Merchandise sales grew 31% and scrap sales were up 11%. Merchandise sales were particularly strong in consumer electronics, while scrap sales benefited from higher gold prices.
  • Net revenues were down 12% at $102.2 million. Consolidated merchandise sales gross profit increased 33% to $44.7 million, with a 31% increase in merchandise sales.
  • Consolidated operations expenses decreased 3%. Total store count increased 2%, consisting of a net 23 stores acquired or opened since the end of the prior-year quarter. Administrative expense increased 7% to $14.7 million.
  • Gross interest expense decreased $4.5 million reflecting the June 2019 repayment of $195.0 million of cash convertible debt. Gross interest income decreased $2.5 million due to collections on notes receivable since the prior-year period.
  • Third quarter fiscal 2020 results include a loss of $1.8 million in inventory, $0.4 million in loan restitution losses and $0.2 million in property, plant and equipment due to lootings that occurred in 30 of our U.S. stores during riots in late May and early June.

     

SEGMENT RESULTS

U.S. Pawn

  • Total revenue was up 12% reflecting 39% growth in merchandise sales.
  • PSC was down 30%, largely reflecting lower average PLO for the quarter as a result of lower loan demand and increased loan redemptions believed to be related to federal economic stimulus.
  • Merchandise margins of 35% remain within our targeted range. When excluding losses from looting of $2.2 million from merchandise cost of goods sold, margins were unchanged at 37%. Aged general merchandise inventory improved to 4.9% from 6.3% in the prior year. Jewelry scrapping gross profit increased 86%, with related margins up 900bps to 25% on higher gold prices.
  • Segment contribution decreased $7.1 million to $16.6 million, the result of a $17.6 million reduction in PSC partially offset by increased merchandise sales and scrap sales gross profit.

Latin America Pawn

  • Merchandise sales grew 1%, to $20.3 million (20% to $24.0 million on a constant currency basis). Merchandise gross sales margins were 21% while aged general merchandise inventory increased to 18.5% of total general merchandise inventory, both the result of a more challenging environment in our Latin America countries, as well as store closures, limited operating hours and restrictions on mobility in GPMX.
  • Net revenues decreased 33% to $15.5 million (down 21% to $18.4 million on a constant currency basis) largely reflecting lower PSC due in part to COVID-19 related store closures, reduced public transportation and curfews imposed in some Latin America countries.
  • PSC decreased 44% to $11.4 million (down 35% to $13.3 million on a constant currency basis) as a result of lower average PLO for the quarter and a lower yield on pawn loans, reflecting our commitment to work with customers by negotiating reduced interest payments on a case-by-case basis.
  • Operations expense was tightly managed, down 18% to $15.0 million.
  • Latin America Pawn added three 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.
  • Segment loss for the quarter was $0.7 million ($0.4 million on a constant currency basis), compared to a contribution of $2.1 million in the prior year quarter, primarily reflecting lower PSC revenues.
  • Over 99% of stores in Latin America are currently open. More specifically:

    • Mexico (367 stores) — Excluding short-term closings due to regulatory decree or safety protocols, stores in Mexico were generally open most of the quarter. However, retail sales in all stores were prohibited by regulators during the last three weeks of May. During the quarter, one de novo store was opened.
    • Guatemala (85 stores) — Regulators imposed country-wide lock-downs on many weekends, 39 mall-based locations were closed for extended periods (5 of which have been closed since March 17), and certain restrictions prohibited stores to be open after 5:00 pm. Two de novo stores opened during quarter.
    • El Salvador (17 stores) — Stores were closed as part of a broad government-imposed lock-down from late March through mid-June when all stores opened.
    • Honduras (16 stores) — Honduras was on lock- down during the last half of March. We were able to reopen five stores on March 26 and another eleven stores on April 11.
    • Peru (11 stores) — Starting the second week of March through mid-May, all stores were closed. We were able to reopen six stores on May 15 and five more stores on June 20.

       

CONFERENCE CALL

EZCORP will host a conference call on Wednesday, August 5, 2020, at 7:00 am Central Time to discuss fiscal third quarter results. Analysts and institutional investors may participate on the conference call by dialing (833) 579-0921, Conference ID: 4162018, 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 loans in the United States and Latin America. We also sell merchandise, primarily collateral forfeited from pawn lending operations and used 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.

1Adjusted 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. 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.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

Three Months Ended June 30,

 

Nine Months Ended June 30,

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 

 

 

 

(Unaudited)

 

(in thousands, except per share amounts)

Revenues:

 

 

 

 

 

 

 

Merchandise sales

$

136,537

 

 

$

103,902

 

 

$

393,095

 

 

$

346,186

 

Jewelry scrapping sales

20,303

 

 

18,212

 

 

41,709

 

 

37,873

 

Pawn service charges

52,460

 

 

78,980

 

 

217,407

 

 

244,298

 

Other revenues

933

 

 

1,371

 

 

3,740

 

 

4,533

 

Total revenues

210,233

 

 

202,465

 

 

655,951

 

 

632,890

 

Merchandise cost of goods sold

91,859

 

 

70,271

 

 

261,711

 

 

225,183

 

Jewelry scrapping cost of goods sold

16,158

 

 

15,765

 

 

33,529

 

 

32,648

 

Other cost of revenues

32

 

 

576

 

 

1,093

 

 

1,467

 

Net revenues

102,184

 

 

115,853

 

 

359,618

 

 

373,592

 

Operating expenses:

 

 

 

 

 

 

 

Operations

83,838

 

 

86,095

 

 

262,835

 

 

266,737

 

Administrative

14,688

 

 

13,685

 

 

46,797

 

 

41,814

 

Impairment of goodwill and intangible assets

 

 

 

 

47,060

 

 

 

Depreciation and amortization

7,679

 

 

7,254

 

 

23,174

 

 

21,114

 

Loss on sale or disposal of assets and other

255

 

 

24

 

 

1,260

 

 

3,643

 

Total operating expenses

106,460

 

 

107,058

 

 

381,126

 

 

333,308

 

Operating (loss) income

(4,276

)

 

8,795

 

 

(21,508

)

 

40,284

 

Interest expense

5,379

 

 

9,832

 

 

16,589

 

 

27,212

 

Interest income

(628

)

 

(3,172

)

 

(2,412

)

 

(9,637

)

Equity in net (income) loss of unconsolidated affiliates

1,183

 

 

(1,320

)

 

5,896

 

 

(632

)

Impairment of investment in unconsolidated affiliates

 

 

 

 

 

 

19,725

 

Other (income) expense

8

 

 

(4

)

 

(282

)

 

(121

)

(Loss) income from continuing operations before income taxes

(10,218

)

 

3,459

 

 

(41,299

)

 

3,737

 

Income tax (benefit) expense

(4,751

)

 

98

 

 

3,757

 

 

1,377

 

(Loss) income from continuing operations, net of tax

(5,467

)

 

3,361

 

 

(45,056

)

 

2,360

 

Loss from discontinued operations, net of tax

(20

)

 

(203

)

 

(67

)

 

(404

)

Net (loss) income

(5,487

)

 

3,158

 

 

(45,123

)

 

1,956

 

Net loss attributable to noncontrolling interest

 

 

 

 

 

 

(1,230

)

Net (loss) income attributable to EZCORP, Inc.

$

(5,487

)

 

$

3,158

 

 

$

(45,123

)

 

$

3,186

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per share attributable to EZCORP, Inc. — continuing operations

$

(0.10

)

 

$

0.06

 

 

$

(0.81

)

 

$

0.06

 

Diluted (loss) earnings per share attributable to EZCORP, Inc. — continuing operations

$

(0.10

)

 

$

0.06

 

 

$

(0.81

)

 

$

0.06

 

 

 

 

 

 

 

 

 

Weighted-average basic shares outstanding

55,068

 

 

55,445

 

 

55,395

 

 

55,306

 

Weighted-average diluted shares outstanding

55,231

 

 

55,487

 

 

55,483

 

 

55,327

 

EZCORP, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 

June 30,

2020

 

June 30,

2019

 

September 30,

2019

 

 

 

 

 

 

 

(Unaudited)

 

 

Assets:

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

$

311,130

 

 

$

138,922

 

 

$

157,567

 

Restricted cash

4,000

 

 

 

 

4,875

 

Pawn loans

113,290

 

 

190,299

 

 

199,058

 

Pawn service charges receivable, net

17,432

 

 

29,847

 

 

31,802

 

Inventory, net

123,112

 

 

175,802

 

 

179,355

 

Notes receivable, net

3,866

 

 

16,166

 

 

7,182

 

Prepaid expenses and other current assets

25,754

 

 

37,365

 

 

25,921

 

Total current assets

598,584

 

 

588,401

 

 

605,760

 

Investments in unconsolidated affiliates

29,483

 

 

30,922

 

 

34,516

 

Property and equipment, net

58,098

 

 

66,214

 

 

67,357

 

Lease right-of-use asset

204,591

 

 

 

 

 

Goodwill

257,326

 

 

300,700

 

 

300,527

 

Intangible assets, net

65,003

 

 

63,646

 

 

68,044

 

Notes receivable, net

1,140

 

 

10,912

 

 

1,117

 

Deferred tax asset, net

5,505

 

 

3,956

 

 

1,998

 

Other assets

4,572

 

 

4,472

 

 

4,383

 

Total assets

$

1,224,302

 

 

$

1,069,223

 

 

$

1,083,702

 

 

 

 

 

 

 

Liabilities and equity:

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current maturities of long-term debt, net

$

268

 

 

$

215

 

 

$

214

 

Accounts payable, accrued expenses and other current liabilities

58,358

 

 

59,981

 

 

77,957

 

Customer layaway deposits

11,902

 

 

12,750

 

 

12,915

 

Lease liability

48,840

 

 

 

 

 

Total current liabilities

119,368

 

 

72,946

 

 

91,086

 

Long-term debt, net

247,618

 

 

235,449

 

 

238,380

 

Deferred tax liability, net

2,165

 

 

7,522

 

 

1,985

 

Lease liability

167,716

 

 

 

 

 

Other long-term liabilities

7,523

 

 

5,990

 

 

7,302

 

Total liabilities

544,390

 

 

321,907

 

 

338,753

 

Commitments and contingencies (Note 11)

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 100 million; issued and outstanding: 52,097,590 as of June 30, 2020; 52,475,070 as of June 30, 2019; and 52,565,064 as of September 30, 2019

521

 

 

524

 

 

526

 

Class B Voting Common Stock, convertible, par value $.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171

30

 

 

30

 

 

30

 

Additional paid-in capital

408,601

 

 

404,880

 

 

407,628

 

Retained earnings

341,517

 

 

389,808

 

 

389,163

 

Accumulated other comprehensive loss

(70,757

)

 

(47,926

)

 

(52,398

)

Total equity

679,912

 

 

747,316

 

 

744,949

 

Total liabilities and equity

$

1,224,302

 

 

$

1,069,223

 

 

$

1,083,702

 

EZCORP, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

Nine Months Ended June 30,

 

2020

 

2019

 

 

 

 

 

(Unaudited)

 

(in thousands)

Operating activities:

 

 

 

Net (loss) income

$

(45,123

)

 

$

1,956

 

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

 

 

 

Depreciation and amortization

23,174

 

 

21,114

 

Amortization of debt discount and deferred financing costs

9,814

 

 

16,613

 

Amortization of lease right-of-use asset

34,265

 

 

 

Accretion of notes receivable discount and deferred compensation fee

(688

)

 

(3,788

)

Deferred income taxes

(3,327

)

 

5,003

 

Impairment of goodwill and intangible assets

47,060

 

 

 

Impairment of investment in unconsolidated affiliate

 

 

19,725

 

Other adjustments

2,128

 

 

1,875

 

Reserve on jewelry scrap receivable

 

 

3,646

 

Stock compensation expense

5,093

 

 

7,036

 

Equity in net loss (gain) from investment in unconsolidated affiliates

5,896

 

 

(632

)

Changes in operating assets and liabilities, net of business acquisitions:

 

 

 

Service charges and fees receivable

14,076

 

 

1,301

 

Inventory

7,990

 

 

1,377

 

Prepaid expenses, other current assets and other assets

(3,348

)

 

(4,194

)

Accounts payable, accrued expenses and other liabilities

(40,450

)

 

(1,477

)

Customer layaway deposits

(709

)

 

949

 

Income taxes

514

 

 

(5,527

)

Net cash provided by operating activities

56,365

 

 

64,977

 

Investing activities:

 

 

 

Loans made

(442,752

)

 

(542,512

)

Loans repaid

321,718

 

 

328,079

 

Recovery of pawn loan principal through sale of forfeited collateral

248,290

 

 

211,979

 

Additions to property and equipment, net

(20,867

)

 

(24,568

)

Acquisitions, net of cash acquired

 

 

(8,116

)

Principal collections on notes receivable

4,000

 

 

21,900

 

Net cash provided by (used in) investing activities

110,389

 

 

(13,238

)

Financing activities:

 

 

 

Taxes paid related to net share settlement of equity awards

(1,458

)

 

(3,288

)

Payout of deferred consideration

(350

)

 

 

Proceeds from borrowings, net of issuance costs

(106

)

 

1,064

 

Payments on borrowings

(316

)

 

(195,877

)

Repurchase of common stock

(5,158

)

 

 

Net cash used in financing activities

(7,388

)

 

(198,101

)

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

(6,678

)

 

(294

)

Net increase in cash, cash equivalents and restricted cash

152,688

 

 

(146,656

)

Cash, cash equivalents and restricted cash at beginning of period

162,442

 

 

285,578

 

Cash, cash equivalents and restricted cash at end of period

$

315,130

 

 

$

138,922

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

Pawn loans forfeited and transferred to inventory

$

200,160

 

 

$

221,940

 

EZCORP, Inc.

OPERATING SEGMENT RESULTS

(Unaudited and in thousands)

 

Three Months Ended June 30, 2020

 

U.S. Pawn

 

Latin

America

Pawn

 

Lana

 

Other

International

 

Total

Segments

 

Corporate

Items

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchandise sales

$

116,258

 

 

$

20,279

 

 

$

 

 

$

 

 

$

136,537

 

 

$

 

 

$

136,537

 

Jewelry scrapping sales

17,129

 

 

3,174

 

 

 

 

 

 

20,303

 

 

 

 

20,303

 

Pawn service charges

41,069

 

 

11,391

 

 

 

 

 

 

52,460

 

 

 

 

52,460

 

Other revenues

40

 

 

 

 

9

 

 

884

 

 

933

 

 

 

 

933

 

Total revenues

174,496

 

 

34,844

 

 

9

 

 

884

 

 

210,233

 

 

 

 

210,233

 

Merchandise cost of goods sold

75,838

 

 

16,021

 

 

 

 

 

 

91,859

 

 

 

 

91,859

 

Jewelry scrapping cost of goods sold

12,875

 

 

3,283

 

 

 

 

 

 

16,158

 

 

 

 

16,158

 

Other cost of revenues

 

 

32

 

 

 

 

 

 

32

 

 

 

 

32

 

Net revenues

85,783

 

 

15,508

 

 

9

 

 

884

 

 

102,184

 

 

 

 

102,184

 

Segment and corporate expenses (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations

66,243

 

 

15,041

 

 

1,497

 

 

1,057

 

 

83,838

 

 

 

 

83,838

 

Administrative

 

 

 

 

 

 

 

 

 

 

14,688

 

 

14,688

 

Depreciation and amortization

2,749

 

 

1,647

 

 

337

 

 

3

 

 

4,736

 

 

2,943

 

 

7,679

 

Loss (gain) on sale or disposal of assets and other

234

 

 

23

 

 

 

 

(20

)

 

237

 

 

18

 

 

255

 

Interest expense

 

 

 

 

36

 

 

140

 

 

176

 

 

5,203

 

 

5,379

 

Interest income

 

 

(404

)

 

 

 

 

 

(404

)

 

(224

)

 

(628

)

Equity in net loss of unconsolidated affiliates

 

 

 

 

 

 

1,183

 

 

1,183

 

 

 

 

1,183

 

Impairment of goodwill and intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense

 

 

(61

)

 

 

 

(5

)

 

(66

)

 

74

 

 

8

 

Segment contribution (loss)

$

16,557

 

 

$

(738

)

 

$

(1,861

)

 

$

(1,474

)

 

$

12,484

 

 

 

 

 

Income (loss) from continuing operations before income taxes

 

 

 

 

 

 

 

 

$

12,484

 

 

$

(22,702

)

 

$

(10,218

)

 

Three Months Ended June 30, 2019

 

U.S. Pawn

 

Latin

America

Pawn

 

Lana

 

Other

International

 

Total

Segments

 

Corporate

Items

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

Merchandise sales

$

83,904

 

 

$

19,998

 

 

$

 

 

$

 

 

$

103,902

 

 

$

 

 

$

103,902

 

Jewelry scrapping sales

13,889

 

 

4,323

 

 

 

 

 

 

18,212

 

 

 

 

18,212

 

Pawn service charges

58,635

 

 

20,345

 

 

 

 

 

 

78,980

 

 

 

 

78,980

 

Other revenues

34

 

 

67

 

 

 

 

1,270

 

 

1,371

 

 

 

 

1,371

 

Total revenues

156,462

 

 

44,733

 

 

 

 

1,270

 

 

202,465

 

 

 

 

202,465

 

Merchandise cost of goods sold

52,855

 

 

17,416

 

 

 

 

 

 

70,271

 

 

 

 

70,271

 

Jewelry scrapping cost of goods sold

11,599

 

 

4,166

 

 

 

 

 

 

15,765

 

 

 

 

15,765

 

Other cost of revenues

 

 

 

 

 

 

576

 

 

576

 

 

 

 

576

 

Net revenues

92,008

 

 

23,151

 

 

 

 

694

 

 

115,853

 

 

 

 

115,853

 

Segment and corporate expenses (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations

65,449

 

 

18,284

 

 

1,368

 

 

994

 

 

86,095

 

 

 

 

86,095

 

Administrative

 

 

 

 

 

 

 

 

 

 

13,685

 

 

13,685

 

Depreciation and amortization

2,934

 

 

1,626

 

 

 

 

72

 

 

4,632

 

 

2,622

 

 

7,254

 

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

4

 

 

(8

)

 

 

 

6

 

 

2

 

 

22

 

 

24

 

Interest expense

 

 

1,491

 

 

 

 

76

 

 

1,567

 

 

8,265

 

 

9,832

 

Interest income

 

 

(376

)

 

 

 

 

 

(376

)

 

(2,796

)

 

(3,172

)

Equity in net income of unconsolidated affiliates

 

 

 

 

 

 

(1,320

)

 

(1,320

)

 

 

 

(1,320

)

Impairment of investment in unconsolidated affiliates

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense (income)

 

 

34

 

 

 

 

6

 

 

40

 

 

(44

)

 

(4

)

Segment contribution (loss)

$

23,621

 

 

$

2,100

 

 

$

(1,368

)

 

$

860

 

 

$

25,213

 

 

 

 

 

Income from continuing operations before income taxes

 

 

 

 

 

 

 

 

$

25,213

 

 

$

(21,754

)

 

$

3,459

 

Contacts

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

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