EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its first quarter ended December 31, 2021.
All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") unless otherwise noted. Comparisons shown in this release are to the same period in the prior year unless otherwise noted.
FIRST QUARTER HIGHLIGHTS
CEO COMMENTARY AND OUTLOOK
Co-Interim Chief Executive Officer Lachie Given stated, "It was a very strong first quarter, as our passionate and productive team continued to execute on the plan we put in place at the end of fiscal 2020. These initiatives are driving better returns and improved financial metrics. PLO continues to recover, getting closer to pre-pandemic levels, and margins remain strong as our team has adopted the changes we implemented 18 months ago to improve inventory turns and reduce aged merchandise.
"In the first quarter we invested in a company with interests in 20 pawn stores primarily in the Caribbean with plans for further expansion. Our acquisition pipeline remains robust and we will continue to look for opportunities to diversify into new pawn markets.
"We are truly proud to provide a unique and essential service to our customers, that by its very nature contributes to the circular economy by extending the useful life of items and reducing waste. I am very excited to continue working with this team as we go forward to collectively grow the business and increase value for our shareholders," concluded Given.
Co-Interim Chief Executive Officer Blair Powell said, "In my 30 plus years at EZCORP I have never before seen the level of enthusiasm and pride throughout the organization. Our team has thoroughly embraced our operating themes of People, Pawn and Passion. At every level the focus is on looking for ways to be more efficient and cost effective and to provide the optimal customer experience. Our refocused efforts continue to deliver tangible results, as we have seen our store level operating metrics continue to improve.
"Improving the customer experience is essential to our mission. The launch of our points-based loyalty program incentivizes customers to transact with us and has performed better than expected in the first quarter. We continue to enhance our online payment options and roll out our online showcase in selected markets for customers to view inventory. Our team members and customers drive our success, and we are laser focused on doing everything we can to optimize the customer and team member experience throughout the company," concluded Powell.
CONSOLIDATED RESULTS
Three Months Ended December 31 |
As Reported |
|
Adjusted1 |
||||||||
in millions, except per share amounts |
2021 |
|
2020 |
|
2021 |
|
2020 |
||||
|
|
|
|
|
|
|
|
||||
Total revenues |
$ |
221.0 |
|
$ |
178.1 |
|
$ |
221.5 |
|
$ |
178.1 |
Net revenues |
$ |
132.1 |
|
$ |
108.4 |
|
$ |
132.3 |
|
$ |
108.4 |
Income before tax |
$ |
21.3 |
|
$ |
5.5 |
|
$ |
21.5 |
|
$ |
8.3 |
Net income |
$ |
15.7 |
|
$ |
4.3 |
|
$ |
16.0 |
|
$ |
7.2 |
Diluted earnings per share |
$ |
0.21 |
|
$ |
0.08 |
|
$ |
0.22 |
|
$ |
0.13 |
EBITDA (non-GAAP measure) |
$ |
31.0 |
|
$ |
17.7 |
|
$ |
31.2 |
|
$ |
17.2 |
SEGMENT RESULTS
U.S. Pawn
Latin America Pawn
FORM 10-Q
EZCORP's Quarterly Report on Form 10-Q for the quarter ended December 31, 2021 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company's website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.
CONFERENCE CALL
EZCORP will host a conference call on Thursday, February 3, 2022, at 7:00 am Central Time to discuss First Quarter Fiscal 2022 results. Analysts and institutional investors may participate on the conference call by dialing (833) 579-0921, Conference ID: 3989568, 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.
Follow us on social media:
Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
EZCORP Instagram Official https://www.instagram.com/ezcorp_official/
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.
1"Adjusted" basis, which is a non-GAAP measure, excludes certain items. "Constant currency" basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. "Free cash flow," which is a non-GAAP measure, includes certain adjustments to cash flow from operating activities.
For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see "Non-GAAP Financial Information" at the end of this release.
EZCORP, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
|
Three Months Ended
|
||||||
(in thousands, except per share amounts) |
2021 |
|
2020 |
||||
|
(Unaudited) |
||||||
Revenues: |
|
|
|
||||
Merchandise sales |
$ |
137,720 |
|
|
$ |
107,783 |
|
Jewelry scrapping sales |
|
6,944 |
|
|
|
6,759 |
|
Pawn service charges |
|
76,025 |
|
|
|
63,489 |
|
Other revenues |
|
305 |
|
|
|
104 |
|
Total revenues |
|
220,994 |
|
|
|
178,135 |
|
Merchandise cost of goods sold |
|
83,111 |
|
|
|
64,543 |
|
Jewelry scrapping cost of goods sold |
|
5,772 |
|
|
|
5,202 |
|
Net revenues |
|
132,111 |
|
|
|
108,390 |
|
Operating expenses: |
|
|
|
||||
Store expenses |
|
86,771 |
|
|
|
79,309 |
|
General and administrative |
|
15,545 |
|
|
|
12,510 |
|
Depreciation and amortization |
|
7,574 |
|
|
|
7,572 |
|
Loss (gain) on sale or disposal of assets and other |
|
5 |
|
|
|
(22 |
) |
Total operating expenses |
|
109,895 |
|
|
|
99,369 |
|
Operating income |
|
22,216 |
|
|
|
9,021 |
|
Interest expense |
|
2,431 |
|
|
|
5,455 |
|
Interest income |
|
(304 |
) |
|
|
(821 |
) |
Equity in net income of unconsolidated affiliates |
|
(1,138 |
) |
|
|
(516 |
) |
Other income |
|
(120 |
) |
|
|
(599 |
) |
Income before income taxes |
|
21,347 |
|
|
|
5,502 |
|
Income tax expense |
|
5,626 |
|
|
|
1,203 |
|
Net income |
$ |
15,721 |
|
|
$ |
4,299 |
|
|
|
|
|
||||
Basic earnings per share |
$ |
0.28 |
|
|
$ |
0.08 |
|
Diluted earnings per share |
$ |
0.21 |
|
|
$ |
0.08 |
|
|
|
|
|
||||
Weighted-average basic shares outstanding |
|
56,183 |
|
|
|
55,361 |
|
Weighted-average diluted shares outstanding |
|
81,948 |
|
|
|
55,428 |
|
|
|
|
|
EZCORP, Inc. CONSOLIDATED BALANCE SHEETS |
|||||||||||
(in thousands, except share and per share amounts) |
December 31,
|
|
December 31,
|
|
September 30,
|
||||||
|
|
|
|
|
|
||||||
|
(Unaudited) |
|
|
||||||||
Assets: |
|
|
|
|
|
||||||
Current assets: |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
233,274 |
|
|
$ |
290,450 |
|
|
$ |
253,667 |
|
Restricted cash |
|
8,692 |
|
|
|
8,011 |
|
|
|
9,957 |
|
Pawn loans |
|
176,586 |
|
|
|
147,852 |
|
|
|
175,901 |
|
Pawn service charges receivable, net |
|
29,765 |
|
|
|
24,825 |
|
|
|
29,337 |
|
Inventory, net |
|
119,313 |
|
|
|
94,980 |
|
|
|
110,989 |
|
Prepaid expenses and other current assets |
|
31,209 |
|
|
|
32,824 |
|
|
|
31,010 |
|
Total current assets |
|
598,839 |
|
|
|
598,942 |
|
|
|
610,861 |
|
Investments in unconsolidated affiliates |
|
42,513 |
|
|
|
31,773 |
|
|
|
37,724 |
|
Other investments |
|
16,500 |
|
|
|
? |
|
|
|
? |
|
Property and equipment, net |
|
52,201 |
|
|
|
55,204 |
|
|
|
53,811 |
|
Right-of-use asset, net |
|
201,527 |
|
|
|
177,308 |
|
|
|
200,990 |
|
Goodwill |
|
284,619 |
|
|
|
258,453 |
|
|
|
285,758 |
|
Intangible assets, net |
|
61,458 |
|
|
|
58,794 |
|
|
|
62,104 |
|
Notes receivable, net |
|
1,190 |
|
|
|
1,156 |
|
|
|
1,181 |
|
Deferred tax asset, net |
|
15,623 |
|
|
|
10,000 |
|
|
|
9,746 |
|
Other assets |
|
5,851 |
|
|
|
5,534 |
|
|
|
4,736 |
|
Total assets |
$ |
1,280,321 |
|
|
$ |
1,197,164 |
|
|
$ |
1,266,911 |
|
|
|
|
|
|
|
||||||
Liabilities and equity: |
|
|
|
|
|
||||||
Current liabilities: |
|
|
|
|
|
||||||
Current maturities of long-term debt, net |
$ |
? |
|
|
$ |
213 |
|
|
$ |
? |
|
Accounts payable, accrued expenses and other current liabilities |
|
75,531 |
|
|
|
67,777 |
|
|
|
90,268 |
|
Customer layaway deposits |
|
13,142 |
|
|
|
9,904 |
|
|
|
12,557 |
|
Lease liability |
|
51,843 |
|
|
|
45,351 |
|
|
|
52,263 |
|
Total current liabilities |
|
140,516 |
|
|
|
123,245 |
|
|
|
155,088 |
|
Long-term debt, net |
|
311,844 |
|
|
|
254,322 |
|
|
|
264,186 |
|
Deferred tax liability, net |
|
221 |
|
|
|
172 |
|
|
|
3,684 |
|
Lease liability |
|
161,841 |
|
|
|
143,620 |
|
|
|
161,330 |
|
Other long-term liabilities |
|
11,398 |
|
|
|
11,303 |
|
|
|
10,385 |
|
Total liabilities |
|
625,820 |
|
|
|
532,662 |
|
|
|
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: 53,344,218 as of December 31, 2021; 52,628,588 as of December 31, 2020; and 53,086,438 as of September 30, 2021 |
|
533 |
|
|
|
526 |
|
|
|
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 capital |
|
339,955 |
|
|
|
398,269 |
|
|
|
403,312 |
|
Retained earnings |
|
369,359 |
|
|
|
322,468 |
|
|
|
326,781 |
|
Accumulated other comprehensive loss |
|
(55,376 |
) |
|
|
(56,791 |
) |
|
|
(58,415 |
) |
Total equity |
|
654,501 |
|
|
|
664,502 |
|
|
|
672,238 |
|
Total liabilities and equity |
$ |
1,280,321 |
|
|
$ |
1,197,164 |
|
|
$ |
1,266,911 |
|
EZCORP, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
Three Months Ended December 31, |
||||||
(in thousands) |
2021 |
|
2020 |
||||
|
|
||||||
Operating activities: |
|
|
|
||||
Net income |
$ |
15,721 |
|
|
$ |
4,299 |
|
Adjustments to reconcile net income to net cash flows from operating activities: |
|
|
|
||||
Depreciation and amortization |
|
7,574 |
|
|
|
7,572 |
|
Amortization of debt discount and deferred financing costs |
|
374 |
|
|
|
3,329 |
|
Amortization of lease right-of-use asset |
|
12,694 |
|
|
|
11,504 |
|
Deferred income taxes |
|
587 |
|
|
|
(1,421 |
) |
Other adjustments |
|
(30 |
) |
|
|
(167 |
) |
Provision for inventory reserve |
|
(820 |
) |
|
|
(1,510 |
) |
Stock compensation expense |
|
1,698 |
|
|
|
524 |
|
Equity in net income of unconsolidated affiliates |
|
(1,138 |
) |
|
|
(516 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Service charges and fees receivable |
|
(419 |
) |
|
|
(4,034 |
) |
Inventory |
|
(2,314 |
) |
|
|
1,323 |
|
Prepaid expenses, other current assets and other assets |
|
(2,330 |
) |
|
|
(713 |
) |
Accounts payable, accrued expenses and other liabilities |
|
(29,531 |
) |
|
|
(23,460 |
) |
Customer layaway deposits |
|
551 |
|
|
|
(1,311 |
) |
Income taxes |
|
4,741 |
|
|
|
68 |
|
Dividends from unconsolidated affiliates |
|
1,660 |
|
|
|
? |
|
Net cash provided by (used in) operating activities |
|
9,018 |
|
|
|
(4,513 |
) |
Investing activities: |
|
|
|
||||
Loans made |
|
(166,480 |
) |
|
|
(142,936 |
) |
Loans repaid |
|
95,542 |
|
|
|
77,116 |
|
Recovery of pawn loan principal through sale of forfeited collateral |
|
65,297 |
|
|
|
53,981 |
|
Capital expenditures, net |
|
(4,985 |
) |
|
|
(3,223 |
) |
Issuance of note receivable |
|
(1,000 |
) |
|
|
? |
|
Investment in unconsolidated affiliates |
|
(2,477 |
) |
|
|
? |
|
Investment in other investments |
|
(16,500 |
) |
|
|
? |
|
Net cash used in investing activities |
|
(30,603 |
) |
|
|
(15,062 |
) |
Financing activities: |
|
|
|
||||
Taxes paid related to net share settlement of equity awards |
|
(792 |
) |
|
|
(730 |
) |
Payments on assumed debt and other borrowings |
|
? |
|
|
|
(53 |
) |
Net cash used in financing activities |
|
(792 |
) |
|
|
(783 |
) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
719 |
|
|
|
6,266 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
(21,658 |
) |
|
|
(14,092 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
263,624 |
|
|
|
312,553 |
|
Cash, cash equivalents and restricted cash at end of period |
$ |
241,966 |
|
|
$ |
298,461 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow information |
|
|
|
||||
Cash and cash equivalents |
$ |
233,274 |
|
|
$ |
290,450 |
|
Restricted cash |
|
8,692 |
|
|
|
8,011 |
|
Total cash and cash equivalents and restricted cash |
$ |
241,966 |
|
|
$ |
298,461 |
|
|
|
|
|
||||
|
|
|
|
||||
Non-cash investing and financing activities: |
|
|
|
||||
Pawn loans forfeited and transferred to inventory |
$ |
70,966 |
|
|
$ |
50,921 |
|
EZCORP, Inc. OPERATING SEGMENT RESULTS (Unaudited) |
||||||||||||||||||||||
|
Three Months Ended December 31, 2021 |
|||||||||||||||||||||
(in thousands) |
U.S. Pawn |
|
Latin America
|
|
Other
|
|
Total Segments |
|
Corporate
|
|
Consolidated |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchandise sales |
$ |
102,078 |
|
$ |
35,642 |
|
|
$ |
? |
|
|
$ |
137,720 |
|
|
$ |
? |
|
|
$ |
137,720 |
|
Jewelry scrapping sales |
|
4,980 |
|
|
1,964 |
|
|
|
? |
|
|
|
6,944 |
|
|
|
? |
|
|
|
6,944 |
|
Pawn service charges |
|
56,557 |
|
|
19,468 |
|
|
|
? |
|
|
|
76,025 |
|
|
|
? |
|
|
|
76,025 |
|
Other revenues |
|
22 |
|
|
240 |
|
|
|
43 |
|
|
|
305 |
|
|
|
? |
|
|
|
305 |
|
Total revenues |
|
163,637 |
|
|
57,314 |
|
|
|
43 |
|
|
|
220,994 |
|
|
|
? |
|
|
|
220,994 |
|
Merchandise cost of goods sold |
|
57,832 |
|
|
25,279 |
|
|
|
? |
|
|
|
83,111 |
|
|
|
? |
|
|
|
83,111 |
|
Jewelry scrapping cost of goods sold |
|
3,975 |
|
|
1,797 |
|
|
|
? |
|
|
|
5,772 |
|
|
|
? |
|
|
|
5,772 |
|
Net revenues |
|
101,830 |
|
|
30,238 |
|
|
|
43 |
|
|
|
132,111 |
|
|
|
? |
|
|
|
132,111 |
|
Segment and corporate expenses (income): |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Store expenses |
|
64,689 |
|
|
22,082 |
|
|
|
? |
|
|
|
86,771 |
|
|
|
? |
|
|
|
86,771 |
|
General and administrative |
|
? |
|
|
? |
|
|
|
? |
|
|
|
? |
|
|
|
15,545 |
|
|
|
15,545 |
|
Depreciation and amortization |
|
2,670 |
|
|
1,980 |
|
|
|
? |
|
|
|
4,650 |
|
|
|
2,924 |
|
|
|
7,574 |
|
Loss on sale or disposal of assets and other |
|
? |
|
|
5 |
|
|
|
? |
|
|
|
5 |
|
|
|
? |
|
|
|
5 |
|
Interest expense |
|
? |
|
|
? |
|
|
|
? |
|
|
|
? |
|
|
|
2,431 |
|
|
|
2,431 |
|
Interest income |
|
? |
|
|
(182 |
) |
|
|
? |
|
|
|
(182 |
) |
|
|
(122 |
) |
|
|
(304 |
) |
Equity in net income of unconsolidated affiliates |
|
? |
|
|
? |
|
|
|
(1,138 |
) |
|
|
(1,138 |
) |
|
|
? |
|
|
|
(1,138 |
) |
Other (income) expense |
|
? |
|
|
(134 |
) |
|
|
(12 |
) |
|
|
(146 |
) |
|
|
26 |
|
|
|
(120 |
) |
Segment contribution |
$ |
34,471 |
|
$ |
6,487 |
|
|
$ |
1,193 |
|
|
$ |
42,151 |
|
|
|
|
|
||||
Income (loss) before income taxes |
|
|
|
|
|
|
$ |
42,151 |
|
|
$ |
(20,804 |
) |
|
$ |
21,347 |
|
|||||
|
Three Months Ended December 31, 2020 |
|||||||||||||||||||||
(in thousands) |
U.S. Pawn |
|
Latin America
|
|
Other
|
|
Total Segments |
|
Corporate
|
|
Consolidated |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Merchandise sales |
$ |
82,253 |
|
$ |
25,530 |
|
|
$ |
? |
|
|
$ |
107,783 |
|
|
$ |
? |
|
|
$ |
107,783 |
|
Jewelry scrapping sales |
|
4,004 |
|
|
2,755 |
|
|
|
? |
|
|
|
6,759 |
|
|
|
? |
|
|
|
6,759 |
|
Pawn service charges |
|
50,220 |
|
|
13,269 |
|
|
|
? |
|
|
|
63,489 |
|
|
|
? |
|
|
|
63,489 |
|
Other revenues |
|
22 |
|
|
7 |
|
|
|
75 |
|
|
|
104 |
|
|
|
? |
|
|
|
104 |
|
Total revenues |
|
136,499 |
|
|
41,561 |
|
|
|
75 |
|
|
|
178,135 |
|
|
|
? |
|
|
|
178,135 |
|
Merchandise cost of goods sold |
|
48,059 |
|
|
16,484 |
|
|
|
? |
|
|
|
64,543 |
|
|
|
? |
|
|
|
64,543 |
|
Jewelry scrapping cost of goods sold |
|
2,844 |
|
|
2,358 |
|
|
|
? |
|
|
|
5,202 |
|
|
|
? |
|
|
|
5,202 |
|
Net revenues |
|
85,596 |
|
|
22,719 |
|
|
|
75 |
|
|
|
108,390 |
|
|
|
? |
|
|
|
108,390 |
|
Segment and corporate expenses (income): |
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Store expenses |
|
62,092 |
|
|
17,217 |
|
|
|
? |
|
|
|
79,309 |
|
|
|
? |
|
|
|
79,309 |
|
General and administrative |
|
? |
|
|
? |
|
|
|
? |
|
|
|
? |
|
|
|
12,510 |
|
|
|
12,510 |
|
Depreciation and amortization |
|
2,736 |
|
|
1,860 |
|
|
|
? |
|
|
|
4,596 |
|
|
|
2,976 |
|
|
|
7,572 |
|
Loss (gain) on sale or disposal of assets and other |
|
27 |
|
|
(101 |
) |
|
|
? |
|
|
|
(74 |
) |
|
|
52 |
|
|
|
(22 |
) |
Interest expense |
|
? |
|
|
? |
|
|
|
? |
|
|
|
? |
|
|
|
5,455 |
|
|
|
5,455 |
|
Interest income |
|
? |
|
|
(764 |
) |
|
|
? |
|
|
|
(764 |
) |
|
|
(57 |
) |
|
|
(821 |
) |
Equity in net income of unconsolidated affiliates |
|
? |
|
|
? |
|
|
|
(516 |
) |
|
|
(516 |
) |
|
|
? |
|
|
|
(516 |
) |
Other (income) expense |
|
? |
|
|
(455 |
) |
|
|
(210 |
) |
|
|
(665 |
) |
|
|
66 |
|
|
|
(599 |
) |
Segment contribution |
$ |
20,741 |
|
$ |
4,962 |
|
|
$ |
801 |
|
|
$ |
26,504 |
|
|
|
|
|
||||
Income (loss) before income taxes |
|
|
|
|
|
|
$ |
26,504 |
|
|
$ |
(21,002 |
) |
|
$ |
5,502 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
EZCORP, Inc. STORE COUNT ACTIVITY (Unaudited) |
|||||
|
Three Months Ended December 31, 2021 |
||||
|
U.S. Pawn |
|
Latin America
|
|
Consolidated |
|
|
|
|
|
|
As of September 30, 2021 |
516 |
|
632 |
|
1,148 |
New locations opened |
? |
|
1 |
|
1 |
As of December 31, 2021 |
516 |
|
633 |
|
1,149 |
|
Three Months Ended December 31, 2020 |
||||
|
U.S. Pawn |
|
Latin America
|
|
Consolidated |
|
|
|
|
|
|
As of September 30, 2020 |
505 |
|
500 |
|
1,005 |
New locations opened |
? |
|
2 |
|
2 |
As of December 31, 2020 |
505 |
|
502 |
|
1,007 |
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 months ended December 31, 2021 and 2020 were as follows:
|
|
December 31, |
|
Three Months Ended
|
||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
Mexican peso |
|
20.5 |
|
19.9 |
|
20.7 |
|
20.5 |
Guatemalan quetzal |
|
7.5 |
|
7.6 |
|
7.6 |
|
7.6 |
Honduran lempira |
|
24.1 |
|
23.8 |
|
23.9 |
|
24.1 |
Peruvian sol |
|
4.0 |
|
3.6 |
|
4.0 |
|
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
|
||||||
(in millions) |
2021 |
|
2020 |
||||
|
|
|
|
||||
Net income |
$ |
15.7 |
|
|
$ |
4.3 |
|
Interest expense |
|
2.4 |
|
|
|
5.4 |
|
Interest income |
|
(0.3 |
) |
|
|
(0.8 |
) |
Income tax expense |
|
5.6 |
|
|
|
1.2 |
|
Depreciation and amortization |
|
7.6 |
|
|
|
7.6 |
|
EBITDA |
$ |
31.0 |
|
|
$ |
17.7 |
|
|
Total
|
|
Net
|
|
Income
|
|
Tax Effect |
|
Net
|
|
Diluted EPS |
|
EBITDA |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2022 Q1 Reported |
$ |
221.0 |
|
$ |
132.1 |
|
$ |
21.3 |
|
$ |
5.6 |
|
|
$ |
15.7 |
|
$ |
0.21 |
|
$ |
31.0 |
||||
FX impact |
|
? |
|
|
? |
|
|
0.1 |
|
|
(0.1 |
) |
|
|
0.2 |
|
|
? |
|
|
0.1 |
||||
Constant currency impact |
|
0.5 |
|
|
0.2 |
|
|
0.1 |
|
|
? |
|
|
|
0.1 |
|
|
0.01 |
|
|
0.1 |
||||
2022 Q1 Adjusted |
$ |
221.5 |
|
$ |
132.3 |
|
$ |
21.5 |
|
$ |
5.5 |
|
|
$ |
16.0 |
|
$ |
0.22 |
|
$ |
31.2 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Net
|
|
Income
|
|
Tax Effect |
|
Net
|
|
Diluted EPS |
|
EBITDA |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2021 Q1 Reported |
$ |
178.1 |
|
$ |
108.4 |
|
$ |
5.5 |
|
|
$ |
1.2 |
|
|
$ |
4.3 |
|
|
$ |
0.08 |
|
|
$ |
17.7 |
|
Contract termination costs |
|
? |
|
|
? |
|
|
(0.4 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(0.01 |
) |
|
|
(0.4 |
) |
Non cash interest |
|
? |
|
|
? |
|
|
3.3 |
|
|
|
? |
|
|
|
3.3 |
|
|
|
0.06 |
|
|
|
3.3 |
|
Other adjustments |
|
? |
|
|
? |
|
|
(0.1 |
) |
|
|
? |
|
|
|
(0.1 |
) |
|
|
? |
|
|
|
(3.4 |
) |
2021 Q1 Adjusted |
$ |
178.1 |
|
$ |
108.4 |
|
$ |
8.3 |
|
|
$ |
1.1 |
|
|
$ |
7.2 |
|
|
$ |
0.13 |
|
|
$ |
17.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
||||
(in millions) |
U.S. Dollar
|
|
Percentage
|
||
|
|
|
|
||
Consolidated revenue |
$ |
221.0 |
|
24 |
% |
Currency exchange rate fluctuations |
|
0.5 |
|
|
|
Constant currency consolidated revenue |
$ |
221.5 |
|
24 |
% |
|
|
|
|
||
Consolidated net revenue |
$ |
132.1 |
|
22 |
% |
Currency exchange rate fluctuations |
|
0.2 |
|
|
|
Constant currency consolidated net revenue |
$ |
132.3 |
|
22 |
% |
|
|
|
|
||
Consolidated net inventory |
$ |
119.3 |
|
26 |
% |
Currency exchange rate fluctuations |
|
0.6 |
|
|
|
Constant currency consolidated net inventory |
$ |
119.9 |
|
26 |
% |
|
|
|
|
||
Latin America Pawn net revenue |
$ |
30.2 |
|
33 |
% |
Currency exchange rate fluctuations |
|
0.2 |
|
|
|
Constant currency Latin America Pawn net revenue |
$ |
30.4 |
|
34 |
% |
|
|
|
|
||
Latin America Pawn PLO |
$ |
35.5 |
|
37 |
% |
Currency exchange rate fluctuations |
|
0.7 |
|
|
|
Constant currency Latin America Pawn PLO |
$ |
36.2 |
|
40 |
% |
|
|
|
|
||
Latin America Pawn PSC revenues |
$ |
19.5 |
|
47 |
% |
Currency exchange rate fluctuations |
|
0.1 |
|
|
|
Constant currency Latin America Pawn PSC revenues |
$ |
19.6 |
|
47 |
% |
|
|
|
|
||
Latin America Pawn merchandise sales |
$ |
35.6 |
|
40 |
% |
Currency exchange rate fluctuations |
|
0.4 |
|
|
|
Constant currency Latin America Pawn merchandise sales |
$ |
36.0 |
|
41 |
% |
|
|
|
|
||
Latin America Pawn segment profit before tax |
$ |
6.5 |
|
30 |
% |
Currency exchange rate fluctuations |
|
0.1 |
|
|
|
Constant currency Latin America Pawn segment profit before tax |
$ |
6.6 |
|
32 |
% |
These press releases may also interest you
|