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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.
Revenue by Segment
Revenue by Geographic Location
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.
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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