ezpw-20230503
false000087652300008765232023-05-032023-05-03

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 3, 2023
 _______________________________________________ 
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: (512314-3400
_______________________________________________________ 
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 3, 2023, EZCORP, Inc. ("EZCORP") issued a press release announcing its results of operations and financial condition for the full year and quarter ended March 31, 2023. 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 4, 2023) 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.
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
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 3, 2023By: /s/ Timothy K. Jugmans
   Timothy K. Jugmans
   Chief Financial Officer

Document

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EZCORP Reports Second Quarter Fiscal 2023 Results
Record Second Quarter Pawn Loans Outstanding and Sales Driving Strong Revenue Growth
Austin, Texas (May 3, 2023) — 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, 2023.
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) up 19% to $206.1 million.
Total revenue increased 20%, and gross profit increased 16%.
Merchandise sales gross margin remains within our targeted range at 36%.
Net loss of $6.8 million, was down from Net Income of $14.9 million, primarily driven by our $25.6 million share of the one-time, non-cash goodwill impairment and discrete adjustments recognized by Cash Converters International in its half-year period ended December 31, 2022.
Diluted loss per share of $0.12 was down from diluted earnings per share of $0.20. On an adjusted basis1, diluted earnings per share was $0.23, compared to $0.22 in the prior-year quarter.
Return on earning assets (ROEA) remains strong at 165%.
CEO COMMENTARY AND OUTLOOK
Lachie Given, Chief Executive Officer, stated, "We achieved record second quarter PLO and merchandise sales as we continue to execute our three-year plan, put in place at the end of fiscal 2020. The macro-economic environment continues to support increased core demand for our products and services, including providing our environmentally conscious consumers with a more sustainable way to shop. Our team's relentless commitment to serving our customers with passion and respect and to operational excellence in all that we do, continues to drive our strong operating and financial results.

"During the second quarter, we expanded our store footprint, opening 13 de novo stores. Two of these stores were opened in Las Vegas, the first under our newly acquired luxury brand Max Pawn, and the other under the core EZPAWN brand. We are very excited to be growing our presence in this important pawn market. The other 11 new stores were opened across LatAm – 8 in Mexico and 3 in Guatemala, where we are extending our market leadership, with 103 stores there.

“EZ+ Rewards, our loyalty program, continues to be very well received by our customers and has grown to 2.9 million members globally, an increase of 17% over the first quarter of 2023. We are extremely happy with the increases here and are working hard on strategies to win and retain more customers in all of the local communities in which we operate.

"We continue to believe that investing in our teams and technology is essential. To ensure the continuous improvement of our Field Teams' bench strength, we completed talent and succession processes for all global operations. In Latin America we are enhancing recruiting strategies and implementing development programs for Lead Pawnbrokers and Store Managers. In the US we launched a new SharePoint in store communications program, to enhance our daily program execution and performance management strategies across all stores. We have deployed store system and network upgrades to support digital initiatives and are building out our e-commerce capabilities in a disciplined way.

"During the quarter, we repurchased $3.9 million worth of EZCORP shares as part of the up to $50 million share repurchase program announced in the second quarter of fiscal 2022.




"Our focus on People, Pawn, and Passion, along with the disciplined execution of our enhanced operating model has yielded another quarter of strong results for our shareholders. We will continue to invest in our people and technology with the goal of serving more customers, more frequently, across more locations, in an environmentally sustainable way, to ultimately drive value to our shareholders," Given concluded.

CONSOLIDATED RESULTS
Three Months Ended March 31
As Reported
Adjusted1
in millions, except per share amounts2023202220232022
Total revenues$258.4 $216.0 $253.8 $216.0 
Gross profit$149.2 $128.9 $146.7 $128.9 
(Loss) income before tax$(7.3)$20.1 $24.0 $22.3 
Net (loss) income$(6.8)$14.9 $17.0 $16.7 
Diluted (loss) earnings per share $(0.12)$0.20 $0.23 $0.22 
EBITDA (non-GAAP measure)$2.1 $29.8 $33.3 $32.1 

Diluted loss per share was $0.12, down from diluted earnings per share of $0.20. On an adjusted basis, diluted earnings per share were $0.23, up from $0.22. The primary difference between GAAP and Adjusted financial results is attributable to our share of the previously announced one-time, non-cash goodwill impairment recognized by Cash Converters International in its half-year period ended December 31 2022.
Loss before taxes was $7.3 million, down from profit before taxes of $20.1 million, while adjusted EBITDA increased 4% to $33.3 million.
PLO increased 19% to $206.1 million, up $32.5 million. On a same-store basis2, PLO increased 16% due to increased loan demand, reflecting continuing growth.
Total revenues increased 20% and gross profit increased 16%, reflecting improved pawn service charge (PSC) revenue, merchandise sales and merchandise sales gross profit.
PSC increased 21% as a result of higher average PLO and yields.
Merchandise sales gross margin remains within our targeted range at 36%. Aged general merchandise has increased to 2.2% of total general merchandise inventory.
Net inventory increased 25%, reflecting a return towards normalized inventory levels. Inventory turnover remained strong at 2.8x for the quarter, down from 2.9x.
Store expenses increased 18%, primarily due to increased labor in-line with store activity, higher store count and, to a lesser extent, expenses related to our loyalty program. On a same-store basis, store expenses increased 12%. General and administrative expenses increased 28%, primarily due to the reversal of incentive compensation for the departed CEO in the prior period and, to a lesser extent, increase in accrued incentive compensation.
Cash and cash equivalents at the end of the quarter was $243.1 million, down 5% year-over-year. The decrease was primarily due to the increase in PLO and inventory, the acquisition of new stores, and strategic investments, partially offset by the net cash proceeds associated with the convertible debt refinancing.
SEGMENT RESULTS
U.S. Pawn
PLO ended the quarter at $157.0 million, up 18% or 14% on a same store basis.
Total revenue was up 16% and gross profit increased 11%, reflecting increased PSC and higher merchandise sales.



PSC increased 19% as a result of higher average PLO.
Merchandise sales gross margin decreased to 38% from 41%, reflecting a more normalized operating environment. Aged general merchandise increased to 1.4% of total general merchandise inventory primarily driven by recent acquisitions.
Net inventory increased 20% reflecting a return towards normalized inventory levels. Inventory turnover remained flat at 2.6x.
Store expenses increased 12%, primarily due to increased labor in-line with store activity, higher store count and, to a lesser extent, expenses related to our loyalty program.
Segment contribution increased 12% to $37.8 million.
Segment store count increased by 2 de novo stores during the quarter.
Latin America Pawn
PLO improved to $49.1 million, up 22% (14% on constant currency basis). On a same store basis, PLO increased 19% (12% on a constant currency basis).
Total revenue was up 30% (22% on constant currency basis) and gross profit increased 32% (23% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved merchandise sales gross profit.
PSC increased 29% (21% on a constant currency basis) as a result of higher average PLO and yield.
Merchandise sales gross margin increased from 29% to 32%. Aged general merchandise inventory increased to 3.2% from 1.0% of total merchandise inventory.
Net inventory increased 44% (33% on a constant currency basis), reflecting a return towards normalized inventory levels. Inventory turnover remains strong at 3.5x, down from 3.8x.
Store expenses increased 38% (29% on a constant currency basis), primarily due to increased labor in-line with store activity and higher store count. Same-store expenses increased 32% (24% on a constant currency basis).
Segment contribution increased 68% (57% on a constant currency basis) to $8.0 million. On an adjusted basis, segment contribution was up 10% to $5.4 million, with the primary adjustment being the reversal of contingent consideration liability in connection with a previously completed acquisition.
Segment store count increased by 11 de novo stores during the quarter.
FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 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 4, 2023, at 8:00 am Central Time to discuss Second Quarter Fiscal 2023 results. Analysts and institutional investors may participate on the conference call by dialing (833) 470-1428, Conference ID: 721380, or internationally by dialing (404) 975-4839. 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 S&P 1000 Index and Nasdaq Composite Index. 
Follow us on social media:



Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/
EZCORP Linked In https://www.linkedin.com/company/ezcorp/

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 thousands and, as a result, may not agree to the percentages calculated from numbers in millions.
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)2023202220232022
Revenues:
Merchandise sales$152,507 $133,556 $316,294 $271,276 
Jewelry scrapping sales12,825 5,690 20,709 12,634 
Pawn service charges93,030 76,683 185,623 152,708 
Other revenues, net61 53 124 358 
Total revenues258,423 215,982 522,750 436,976 
Merchandise cost of goods sold97,339 82,246 202,216 165,357 
Jewelry scrapping cost of goods sold11,902 4,808 18,855 10,580 
Gross profit149,182 128,928 301,679 261,039 
Operating expenses:
Store expenses101,269 85,743 202,072 172,514 
General and administrative15,609 12,227 31,085 27,772 
Depreciation and amortization7,963 7,450 15,951 15,024 
Loss (gain) on sale or disposal of assets73 (697)57 (692)
Other(2,465)— (2,465)— 
Total operating expenses122,449 104,723 246,700 214,618 
Operating income26,733 24,205 54,979 46,421 
Interest expense3,390 2,527 9,580 4,958 
Interest income(1,898)(255)(2,562)(559)
Equity in net loss of unconsolidated affiliates32,501 1,439 30,917 301 
Other expense (income)80 371 (154)251 
(Loss) income before income taxes(7,340)20,123 17,198 41,470 
Income (benefit) tax expense(550)5,236 7,210 10,862 
Net (loss) income $(6,790)$14,887 $9,988 $30,608 
Basic earnings per share $(0.12)$0.26 $0.18 $0.54 
Diluted earnings per share $(0.12)$0.20 $0.11 $0.42 
Weighted-average basic shares outstanding55,648 56,561 55,981 56,370 
Weighted-average diluted shares outstanding55,648 82,407 65,269 82,270 





EZCORP, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)March 31,
2023
March 31,
2022
September 30,
2022
Assets:
Current assets:
Cash and cash equivalents$243,128 $254,964 $206,028 
Restricted cash8,451 8,713 8,341 
Pawn loans206,096 173,618 210,009 
Pawn service charges receivable, net33,116 28,319 33,476 
Inventory, net150,297 119,890 151,615 
Prepaid expenses and other current assets45,564 27,267 34,694 
Total current assets686,652 612,771 644,163 
Investments in unconsolidated affiliates10,681 42,002 37,733 
Other investments39,220 18,000 24,220 
Property and equipment, net59,775 50,874 56,725 
Right-of-use asset, net234,287 204,343 221,405 
Goodwill300,078 286,214 286,828 
Intangible assets, net59,620 62,145 56,819 
Notes receivable, net1,233 1,198 1,215 
Deferred tax asset, net19,127 15,908 12,145 
Other assets9,859 6,541 6,625 
Total assets $1,420,532 $1,299,996 $1,347,878 
Liabilities and equity:
Current liabilities:
Accounts payable, accrued expenses and other current liabilities$72,695 $69,695 $84,509 
Customer layaway deposits18,761 15,046 16,023 
Operating lease liabilities, current53,921 52,446 52,334 
Total current liabilities145,377 137,187 152,866 
Long-term debt, net359,287 312,168 312,903 
Deferred tax liability, net368 179 373 
Operating lease liabilities191,874 163,506 180,756 
Other long-term liabilities11,038 11,940 8,749 
Total liabilities707,944 624,980 655,647 
Commitments and Contingencies
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01per share; shares authorized: 100 million; issued and outstanding: 52,561,071 as of March 31, 2023; 53,685,333 as of March 31, 2022; and 53,454,885 as of September 30, 2022
526 537 534 
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 capital343,088 341,913 345,330 
Retained earnings405,961 384,246 402,006 
Accumulated other comprehensive loss(37,017)(51,710)(55,669)
Total equity712,588 675,016 692,231 
Total liabilities and equity$1,420,532 $1,299,996 $1,347,878 




EZCORP, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
March 31,
(in thousands)20232022
Operating activities:
Net income $9,988 $30,608 
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization15,951 15,024 
Amortization of debt discount and deferred financing costs736 698 
Non-cash lease expense27,546 25,746 
Deferred income taxes(6,987)212 
Other adjustments(2,386)(708)
Provision for inventory reserve280 (1,780)
Stock compensation expense3,741 2,158 
Equity in net loss of unconsolidated affiliates30,917 301 
Net loss on extinguishment of debt3,545 — 
Changes in operating assets and liabilities, net of acquisitions:
Service charges and fees receivable1,357 687 
Inventory(2,306)(2,779)
Prepaid expenses, other current assets and other assets(3,639)88 
Accounts payable, accrued expenses and other liabilities(43,969)(50,258)
Customer layaway deposits1,426 2,342 
Income taxes8,852 6,576 
Dividends from unconsolidated affiliates1,775 1,660 
Net cash provided by operating activities46,827 30,575 
Investing activities:
Loans made(378,717)(329,459)
Loans repaid230,604 199,836 
Recovery of pawn loan principal through sale of forfeited collateral171,504 129,311 
Capital expenditures, net(18,439)(10,498)
Acquisitions, net of cash acquired(12,968)— 
Issuance of notes receivable(15,500)(1,000)
Investment in unconsolidated affiliates(2,133)(3,577)
Investment in other investments(15,000)(16,500)
Net cash used in investing activities(40,649)(31,887)
Financing activities:
Taxes paid related to net share settlement of equity awards(1,149)(792)
Proceeds from issuance of debt230,000 — 
Debt issuance cost(7,458)— 
Cash paid on extinguishment of debt(1,951)— 
Payments on debt(178,488)— 
Repurchase of common stock(10,978)— 
Net cash provided by (used in) financing activities 29,976 (792)
Effect of exchange rate changes on cash and cash equivalents and restricted cash1,056 2,157 
Net increase in cash, cash equivalents and restricted cash37,210 53 
Cash, cash equivalents and restricted cash at beginning of period214,369 263,624 
Cash, cash equivalents and restricted cash at end of period$251,579 $263,677 



EZCORP, Inc.
OPERATING SEGMENT RESULTS

Three Months Ended March 31, 2023
(Unaudited)
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$108,740 $43,767 $— $152,507 $— $152,507 
Jewelry scrapping sales9,814 3,011 — 12,825 — 12,825 
Pawn service charges69,945 23,085 — 93,030 — 93,030 
Other revenues32 19 10 61 — 61 
Total revenues188,531 69,882 10 258,423 — 258,423 
Merchandise cost of goods sold67,643 29,696 — 97,339 — 97,339 
Jewelry scrapping cost of goods sold8,550 3,352 — 11,902 — 11,902 
Other cost of revenues— — — — — — 
Gross profit112,338 36,834 10 149,182 — 149,182 
Store expenses71,946 29,323 — 101,269 — 101,269 
General and administrative— — — — 15,609 15,609 
Depreciation and amortization2,560 2,332 — 4,892 3,071 7,963 
Loss (gain) loss on sale or disposal of assets81 (8)— 73 — 73 
Other— (2,465)— (2,465)— (2,465)
Interest expense— — — — 3,390 3,390 
Interest income(1)(298)— (299)(1,599)(1,898)
Equity in net loss of unconsolidated affiliates— — 32,501 32,501 — 32,501 
Other (income) expense— (46)(40)120 80 
Segment contribution (loss)$37,752 $7,996 $(32,497)$13,251 
Income (loss) before income taxes$13,251 $(20,591)$(7,340)






Three Months Ended March 31, 2022
(Unaudited)
(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 
Gross profit100,929 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 of disposal of assets and other— (9)— (9)(688)(697)
Interest expense— — — — 2,527 2,527 
Interest income— (255)— (255)— (255)
Equity in net income of unconsolidated affiliates— — 1,439 1,439 — 1,439 
Other (income) expense— 334 342 29 371 
Segment contribution $33,812 $4,758 $(1,418)$37,152 
Income (loss) before income taxes$37,152 $(17,029)$20,123 






Six Months Ended March 31, 2023
(Unaudited)
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$227,054 $89,240 $— $316,294 $— $316,294 
Jewelry scrapping sales16,990 3,719 — 20,709 — 20,709 
Pawn service charges139,255 46,368 — 185,623 — 185,623 
Other revenues57 35 32 124 — 124 
Total revenues383,356 139,362 32 522,750 — 522,750 
Merchandise cost of goods sold140,899 61,317 — 202,216 — 202,216 
Jewelry scrapping cost of goods sold14,766 4,089 — 18,855 — 18,855 
Gross profit227,691 73,956 32 301,679 — 301,679 
Segment and corporate expenses (income):
Store expenses145,250 56,822 — 202,072 — 202,072 
General and administrative— (3)— (3)31,088 31,085 
Depreciation and amortization5,315 4,547 — 9,862 6,089 15,951 
Loss (gain) on sale or disposal of assets84 (27)— 57 — 57 
Other charges— (2,465)— (2,465)— (2,465)
Interest expense— — — — 9,580 9,580 
Interest income(1)(467)— (468)(2,094)(2,562)
Equity in net loss of unconsolidated affiliates— — 30,917 30,917 — 30,917 
Other expense (income)— 24 10 34 (188)(154)
Loss on extinguishment of debt— — — — — — 
Segment contribution (loss)$77,043 $15,525 $(30,895)$61,673 
Income (loss) before income taxes$61,673 $(44,475)$17,198 



Six Months Ended March 31, 2022
(Unaudited)
(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 
Gross profit202,759 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)
Other Charges— — — — — — 
Interest expense— — — — 4,958 4,958 
Interest income— (437)— (437)(122)(559)
Equity in net income of unconsolidated affiliates— — 301 301 — 301 
Other (income) expense— 200 (4)196 55 251 
Segment contribution $68,283 $11,245 $(225)$79,303 
Income (loss) before income taxes$79,303 $(37,833)$41,470 



EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
 
Three Months Ended March 31, 2023
 U.S. PawnLatin America PawnConsolidated
As of December 31, 2022
525 661 1,186 
New locations opened11 13 
As of March 31, 2023
527 672 1,199 
 
Three Months Ended March 31, 2022
 U.S. PawnLatin America PawnConsolidated
As of December 31, 2021
516 633 1,149 
New locations opened— 
As of March 31, 2022
516 636 1,152 
 
Six Months Ended March 31, 2023
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2022515 660 1,175 
New locations opened13 15 
Locations acquired10 — 10 
Locations sold, combined or closed— (1)(1)
As of March 31, 2023527 672 1,199 
 
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 



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. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. 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, 2023 and 2022 were as follows:
March 31,
Three Months Ended
March 31,
Six Months Ended
March 31,
202320222023202220232022
Mexican peso18.1 19.9 18.7 20.5 19.2 20.6 
Guatemalan quetzal7.6 7.5 7.6 7.5 7.6 7.5 
Honduran lempira24.4 24.1 24.3 24.2 24.3 24.0 
Australian dollar1.5 1.3 1.5 1.4 1.5 1.4 
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
March 31,
(in millions)20232022
Net income$(6.8)$14.9 
Interest expense3.4 2.5 
Interest income(1.9)(0.3)
Income tax expense(0.6)5.2 
Depreciation and amortization8.0 7.5 
EBITDA$2.1 $29.8 




Total RevenuesGross ProfitIncome Before TaxTax EffectNet IncomeDiluted EPS EBITDA
2023 Q2 Reported
$258.4 $149.2 $(7.3)$7.8 $(6.8)$(0.12)$2.1 
CCV Impairment and discrete adjustments— — 34.0 8.4 25.6 0.29 34.0 
Contingent consideration liability — — (2.2)(0.6)(1.6)(0.02)(2.2)
Impact of dilutive instruments*— — — — — 0.08 — 
FX impact— — 0.1 — 0.1 — 0.1 
Constant currency impact(4.7)(2.4)(0.6)(0.3)(0.3)— (0.7)
2023 Q2 Adjusted
$253.8 $146.7 $24.0 $7.0 $17.0 $0.23 $33.3 
*Q2 Reported Diluted EPS calculated based on 55.6 million weighted average diluted shares outstanding and Q2 Adjusted Diluted EPS calculated based on weighted average diluted shares outstanding of 87.1 million
Total RevenuesGross ProfitIncome Before TaxTax EffectNet
Income
Diluted EPSEBITDA
2022 Q2 Reported
$216.0 $128.9 $20.1 $5.2 $14.9 $0.20 $29.8 
CCV Adjustment— — 2.1 0.4 1.7 0.02 2.1 
Non cash Interest— — 0.1 0.1 0.1 — 0.1 
2022 Q2 Adjusted
$216.0 $128.9 $22.3 $5.7 $16.7 $0.22 $32.1 




Three Months Ended
March 31, 2023
Six Months Ended
March 31, 2023
(in millions)U.S. Dollar AmountPercentage Change YOYU.S. Dollar AmountPercentage Change YOY
Consolidated revenue $258.4 20 %$522.8 20 %
Currency exchange rate fluctuations(4.6)(7.4)
Constant currency consolidated revenue$253.8 17 %$515.4 18 %
Consolidated gross profit $149.2 16 %$301.7 16 %
Currency exchange rate fluctuations(2.5)(3.8)
Constant currency consolidated gross profit$146.7 14 %$297.9 14 %
Consolidated net inventory$150.3 25 %$150.3 25 %
Currency exchange rate fluctuations(2.8)(2.8)
Constant currency consolidated net inventory$147.5 23 %$147.5 23 %
Latin America Pawn gross profit $36.8 32 %$74.0 27 %
Currency exchange rate fluctuations(2.4)(3.8)
Constant currency Latin America Pawn gross profit $34.4 23 %$70.2 21 %
Latin America Pawn PLO$49.1 22 %$49.1 22 %
Currency exchange rate fluctuations(3.2)(3.2)
Constant currency Latin America Pawn PLO$45.9 14 %$45.9 14 %
Latin America Pawn PSC revenues $23.1 29 %$46.4 24 %
Currency exchange rate fluctuations(1.4)(2.2)
Constant currency Latin America Pawn PSC revenues $21.7 21 %$44.2 18 %
Latin America Pawn merchandise sales $43.8 31 %$89.2 29 %
Currency exchange rate fluctuations(3.1)(5.0)
Constant currency Latin America Pawn merchandise sales $40.7 22 %$84.2 22 %
Latin America Pawn segment profit before tax$8.0 68 %$15.5 38 %
Currency exchange rate fluctuations(0.5)(0.7)
Constant currency Latin America Pawn segment profit before tax$7.5 57 %$14.8 31 %