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Mar 31, 2020
EZCORP Q2 2020 Earnings Report
EZCORP's revenue increased, driven by strong retail demand, but earnings were negatively impacted by a non-cash asset impairment charge.
Key Takeaways
EZCORP reported a 4% increase in total revenues, driven by strong retail demand, but experienced a decrease in income before taxes due to a non-cash asset impairment charge. The company's cash position remained strong.
Total revenues increased by 4% to $223.3 million.
Operations expenses decreased by 2% to $88.4 million.
The company reported a cash position of $193.7 million, up 35% from the previous quarter.
Second quarter results included a non-cash asset impairment charge of $47.1 million.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
EZCORP anticipates a rebound in loan demand as the economic backdrop becomes more challenging, while remaining focused on the health and safety of employees and customers and exploring innovative ways to meet customer needs.
Positive Outlook
- Strong retail demand continues in the U.S. and Latin America due to government stimulus.
- Recession-resilient business positioned to perform as loan demand returns.
- Leveraging differentiated point of sale system to optimize lending decisions and customer experience.
- Focus on health and safety of employees and customers.
- Finding new and innovative ways to satisfy customers’ needs.
Challenges Ahead
- Government stimulus programs have resulted in lower loan demand and heightened repayments.
- Timing of rebound in loan demand remains uncertain.
- More challenging economic backdrop in the U.S. and Latin America.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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