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Mar 31, 2021
EZCORP Q2 2021 Earnings Report
Reported mixed results with decreased revenue offset by improved merchandise sales gross profit and expense reductions.
Key Takeaways
EZCORP reported a decrease in total revenues by 17% to $184.9 million, primarily due to lower pawn service charges and merchandise sales. However, merchandise sales gross profit improved by 12%, driven by effective inventory management. Diluted earnings per share was $0.10, and adjusted EPS was $0.17, consistent with the prior-year quarter.
Diluted earnings per share was $0.10, compared to $(0.74) in the prior-year quarter.
Total revenues decreased 17% to $184.9 million.
Merchandise sales gross profit improved by 12%, with a 900 bps improvement in merchandise sales gross profit margin to 43%.
Total operating expenses decreased by 35% to $103.1 million.
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
EZCORP anticipates that lingering impacts from the second stimulus package and an extended tax filing season will continue to temporarily reduce demand for pawn loans in the U.S. In Latin America, the company expects to face challenges with constrained traffic, limited operating hours, and increased remittances.
Positive Outlook
- Ongoing initiatives to broaden customer engagement via digital pawn servicing platform and expanded payment options.
- Differentiated technology and data analytics capabilities driving improving loan-to-value ratios and redemption rates.
- Commitment to optimizing team member development, productivity, and retention through enhanced training and diversity and inclusion programs.
- Focus on leveraging strong balance sheet to fund pawn loans outstanding growth.
- Capitalizing on strategic and financially accretive acquisitions to complement de novo store growth.
Challenges Ahead
- Lingering impacts from the second stimulus package temporarily reducing demand for pawn loans in the U.S.
- Extended tax filing season temporarily reducing demand for pawn loans in the U.S.
- Constrained traffic in Latin America.
- Limited operating hours in Latin America.
- Increased remittances in Latin America.
Revenue & Expenses
Visualization of income flow from segment revenue to net income