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Jun 30, 2021
EZCORP Q3 2021 Earnings Report
EZCORP reported results with improvements in pawn loans outstanding and net revenue, despite a net loss.
Key Takeaways
EZCORP reported a net revenue increase of 6% and a significant rise in pawn loans outstanding by 39%. The company completed a major acquisition in Mexico, expanding its store count. While merchandise sales decreased, gross profit improved due to effective inventory management. Net loss was reduced compared to the previous year, and adjusted EBITDA more than doubled.
Pawn loans outstanding increased 39% year-over-year to $157.2 million.
Net revenues increased 6% to $108 million.
Merchandise sales gross profit increased by 6% despite a decrease in sales.
Net loss improved from a loss of $5.5 million to a loss of $2.6 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 continued improvement in financial performance, driven by rebuilding pawn transaction activity, realization of cost savings, and a strong balance sheet to fund pawn demand and acquisitions.
Positive Outlook
- Pawn transaction activity is rebuilding, driving PLO balances closer to pre-pandemic levels.
- Accelerating pawn service charge revenue is expected in the coming quarters.
- Meaningful cost savings are expected this year and beyond.
- The company maintains a strong and liquid balance sheet.
- The company is positioned to capitalize on acquisition opportunities.
Challenges Ahead
- Lingering transitory COVID-related impacts, including government stimulus programs in the U.S., may affect results.
- Merchandise sales volumes were down 21% from their peak pandemic levels a year ago.
- Store-level expenses may trend higher as transaction volumes accelerate.
- Jewelry scrapping sales decreased $14.6 million or 72%.
- Jewelry scrapping sales gross profit decreased $3.9 million or 95%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income