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Dec 31, 2020
EZCORP Q1 2021 Earnings Report
Reported a decrease in total revenues due to lower pawn service charges and merchandise sales, but earnings per share increased. The company focused on expense control and inventory management.
Key Takeaways
EZCORP reported a decrease in total revenues by 20% due to a decline in pawn service charges (PSC) and merchandise sales. However, diluted earnings per share increased to $0.08 compared to $0.02 in the prior-year quarter. The company focused on expense control, leading to a 15% decrease in total operating expenses.
Total revenues decreased by 20% due to lower PSC and merchandise sales.
Diluted earnings per share increased to $0.08, up from $0.02 in the prior-year quarter.
Pawn loans outstanding (PLO) ended the quarter at $148 million, up 13% sequentially.
Total operating expenses decreased by 15% due to cost-cutting initiatives.
EZCORP
EZCORP
EZCORP Revenue by Segment
EZCORP Revenue by Geographic Location
Revenue by Segment
U.S. Pawn Revenue
CapyFin.comLatin America Pawn Revenue
CapyFin.comRevenue by Geographic Location
Latin America Pawn Revenue
CapyFin.com Forward Guidance
The company anticipates continued cost savings from strategic initiatives and operating leverage as revenue trends higher. They also plan to fund PLO growth, de novo store openings, and strategic inorganic growth opportunities.
Positive Outlook
- Ongoing cost reduction and simplification efforts across the business.
- Strong balance sheet with ample liquidity.
- Continued expansion of payment options for customers.
- Enhancing the digital pawn servicing platform.
- Leveraging technology and data analytics to optimize pricing and productivity.
Challenges Ahead
- Recently implemented second stimulus package has reduced demand for pawn loans.
- Upcoming tax refund season will likely further temporarily curb loan demand.
- Pawn service charges (PSC) and merchandise sales remained depressed relative to prior-year levels.
- Rebuilding PLO following 2020 stimulus payments.
- Ongoing headwinds from the COVID-19 pandemic.
Revenue & Expenses
Visualization of income flow from segment revenue to net income