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Sep 30, 2022
EZCORP Q4 2022 Earnings Report
Reported record year end pawn loans outstanding driving revenue and earnings growth.
Key Takeaways
EZCORP reported a strong fourth quarter and full year, with pawn loans outstanding up 19% to a record high of $210.0 million. Total revenue increased 21% for both the quarter and the full year, while net income for the quarter was $7.3 million, an increase of $5.8 million, and $50.2 million for the year, an increase of $41.5 million.
Pawn loans outstanding (PLO) up 19% to a record-high of $210.0 million.
Total revenue increased 21% for the quarter.
Net income for the quarter was $7.3 million, an increase of $5.8 million.
Diluted earnings per share of $0.11 for the quarter was up from $0.03.
EZCORP
EZCORP
Forward Guidance
The company continues to execute on its three-year strategic plan and closed the fiscal year with another outstanding quarter. PLO hit a record high driving increases in pawn service charges.
Positive Outlook
- Strong sales margins.
- Focus on optimizing store operating costs.
- Significant increase in earnings.
- Rollout of the EZ+ Rewards program continues to be a success, now yielding 1.9 million members across all geographies.
- Strong cash flow and balance sheet has enabled the company to return value to shareholders through share repurchases.
Challenges Ahead
- Inflation and other economic pressures have had a significant impact on customers' finances.
- Net inventory increased 37%, reflecting a return towards normalized inventory levels.
- For the fourth quarter, store expenses increased 8%, primarily due to increased labor in-line with store activity and rent associated with lease renewals.
- General and administrative expenses increased 14%, primarily due to asset write-downs associated with IT infrastructure migration and corporate office sublease.
- Cash and cash equivalents at the end of the quarter was $206.0 million, down 19% year-over-year.