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Mar 31, 2024
EZCORP Q2 2024 Earnings Report
EZCORP's Q2 2024 earnings were released, showcasing record revenues and strong earnings growth.
Key Takeaways
EZCORP reported a strong second quarter with record revenues, driven by high consumer demand and excellent customer service. Net income increased significantly, and diluted earnings per share improved from a loss to a profit. The company continued to expand its store network and enhance customer engagement through its loyalty program and online payment options.
Net income increased to $21.5 million, a significant improvement from the prior-year net loss of $6.8 million.
Diluted earnings per share rose to $0.29, compared to a diluted loss per share of $0.12 in the previous year.
Total revenues grew by 11%, and gross profit increased by 12%.
Pawn loans outstanding (PLO) increased by 14% to $235.8 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
U.S. Pawn Revenue
CapyFin.comLatin America Pawn Revenue
CapyFin.com Forward Guidance
EZCORP will continue to invest in its team, stores, technology, and other initiatives to enhance the customer experience and drive shareholder value.
Positive Outlook
- Focus on recruitment and retention of team members.
- Investment in technology to improve customer experience.
- Continued expansion of the store network through de novo stores and acquisitions.
- Enhancing customer loyalty and engagement through the EZ+ Rewards program.
- Expansion of online payment options to more stores.
Challenges Ahead
- Store expenses increased due to increased labor costs and higher store count.
- General and administrative expenses increased due to labor costs and implementation of Workday.
- Cash and cash equivalents decreased due to increased PLO and inventory, strategic investments, and share repurchases.
- Aged general merchandise increased to 3.0% of total general merchandise inventory, primarily driven by luxury handbags in our Max Pawn stores.
- Store expenses increased 12%, primarily due to salaries and benefits as we continue to support our team members as a part of People, Pawn and Passion focus, higher store count and, to a lesser extent, expenses related to our loyalty program.
Revenue & Expenses
Visualization of income flow from segment revenue to net income