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Dec 31, 2019
EZCORP Q1 2020 Earnings Report
EZCORP's first quarter results for fiscal year 2020 were announced, showing a 3% increase in total revenues driven by record pawn business revenues.
Key Takeaways
EZCORP reported a 3% increase in total revenues to $222.4 million for the first quarter of fiscal year 2020. Diluted earnings per share were $0.02, compared to a loss of $0.06 in the prior-year quarter. The company focused on reducing aged inventory and optimizing systems, while also launching its Lana digital platform.
Total revenues increased by 3% to $222.4 million due to record revenues in the pawn business.
Merchandise sales increased by 5%, and pawn service charge (PSC) revenue grew by 1%.
Latin America segment contribution improved by 20% to $8.1 million.
Diluted earnings per share were $0.02, compared to a loss of $0.06 in the prior-year quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
EZCORP is focused on driving operating efficiencies, free cash flow, and higher returns on earning assets, as well as reducing corporate expense. The company expects its initiatives, including the Lana digital platform and the new point-of-sale system, to enhance customer acquisition and retention, optimize lending decisions, and expand earnings.
Positive Outlook
- Enhance growth via new store openings
- Pursue M&A opportunities
- Reinvest in the business
- Return capital to shareholders through share repurchases
- Expected initiatives to enhance customer acquisition and retention
Challenges Ahead
- Ongoing efforts to optimize inventory impact near-term results
- System upgrades impact near-term results
- Government social welfare programs in Mexico impact near-term results
- Reduction in merchandise margin
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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