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Mar 31, 2023
EZCORP Q2 2023 Earnings Report
Reported record second quarter pawn loans outstanding and sales, driving strong revenue growth.
Key Takeaways
EZCORP reported a 20% increase in total revenue and a 16% increase in gross profit for the second quarter of fiscal year 2023. Pawn loans outstanding rose by 19% to $206.1 million. However, the company experienced a net loss of $6.8 million, primarily due to a share of a one-time, non-cash goodwill impairment recognized by Cash Converters International.
Pawn loans outstanding (PLO) increased 19% to $206.1 million.
Total revenue increased 20%, and gross profit increased 16%.
Merchandise sales gross margin remains within our targeted range at 36%.
Diluted loss per share of $0.12, was down from diluted earnings per share of $0.20. On an adjusted basis, diluted earnings per share was $0.23, compared to $0.22 in the prior-year quarter.
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 will continue to invest in their people and technology with the goal of serving more customers, more frequently, across more locations, in an environmentally sustainable way, to ultimately drive value to its shareholders
Positive Outlook
- Expanding store footprint with 13 de novo stores opened (2 in Las Vegas under Max Pawn and EZPAWN brands, 8 in Mexico, and 3 in Guatemala).
- EZ+ Rewards loyalty program continues to grow, reaching 2.9 million members globally, a 17% increase over the first quarter of 2023.
- Enhancing recruiting strategies and implementing development programs for Lead Pawnbrokers and Store Managers in Latin America.
- Launched a new SharePoint in-store communications program in the US to enhance daily program execution and performance management strategies.
- Deployed store system and network upgrades to support digital initiatives and building out e-commerce capabilities.
Challenges Ahead
- Macro-economic environment continues to support increased core demand for our products and services.
- Aged general merchandise has increased to 2.2% of total general merchandise inventory.
- Net loss of $6.8 million, was down from Net Income of $14.9 million, primarily driven by our $25.6 million share of the one-time, non-cash goodwill impairment and discrete adjustments recognized by Cash Converters International
- General and administrative expenses increased 28%, primarily due to the reversal of incentive compensation for the departed CEO in the prior period and, to a lesser extent, increase in accrued incentive compensation.
- Merchandise sales gross margin decreased to 38% from 41%, reflecting a more normalized operating environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income