EX-99.1 2 a2025-q1pressreleaseex991.htm EX-99.1 Document

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EZCORP Reports First Quarter Fiscal 2025 Results
Record PLO Drives Strong Increase in Net Income
Austin, Texas (February 5, 2025) — EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its first quarter ended December 31, 2024.
Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles (“GAAP”) and comparisons shown are to the same period in the prior year.
FIRST QUARTER HIGHLIGHTS
•Pawn loans outstanding (PLO) up 13% to $274.8 million.
•Net income increased 9% to $31.0 million. On an adjusted basis1, net income increased 14% to $32.6 million.
•Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
•Adjusted EBITDA increased 12% to $53.0 million.
•Total revenues increased 7% to $320.2 million, while gross profit increased 7% to $185.4 million.
CEO COMMENTARY AND OUTLOOK
Lachie Given, Chief Executive Officer, stated, “Fiscal 2025 is off to a strong start as we build on our momentum from 2024. Customer demand for immediate cash solutions and high quality, cost-effective secondhand goods remains high, as reflected by another quarter of record revenues and PLO. We also continued to drive meaningful improvements to our bottom line and deliver on the operating leverage inherent in our business, with adjusted EBITDA increasing 12% and adjusted diluted EPS increasing 17%.

“Our consistent performance across geographies underscores the strength of our operations and customer-focused strategy. In the U.S., PLO grew 15%, driven by strong loan demand and higher average loan size. In Latin America, PLO rose 19% on a constant currency basis, with revenues up 18%, reflecting robust customer demand for loans and secondhand goods, as well as our outstanding customer service. Our EZ+ Rewards program also continues to perform exceptionally well, which accounted for 77% of all transacting customers. These results demonstrate the momentum we are gaining across markets and the success of our strategic initiatives.”

“We are proud of the solid foundation we have built, which will enable us to continue driving growth both organically and through strategic M&A. Looking ahead, we plan to continue delivering exceptional service to our customers and enhancing value for our shareholders. We remain deeply committed to our core values of People, Pawn and Passion, and believe we are very well-positioned to deliver another record year of performance in fiscal 2025,” concluded Given.


CONSOLIDATED RESULTS
Three Months Ended December 31
As Reported
Adjusted1
in millions, except per share amounts2024202320242023
Total revenues$320.2 $300.0 $329.7 $300.0 
Gross profit$185.4 $172.6 $190.2 $172.6 
Income before tax$41.4 $37.7 $43.4 $37.8 
Net income$31.0 $28.5 $32.6 $28.6 
Diluted earnings per share $0.40 $0.36 $0.42 $0.36 
EBITDA (non-GAAP measure)$50.8 $47.1 $53.0 $47.2 

•PLO increased 13% to $274.8 million, up $31.6 million. On a same-store2 basis, PLO increased 12% due to increase in average loan size, continued strong pawn demand and improved operational performance.
•Total revenues and gross profit increased 7%, reflecting improved pawn service charge (PSC) revenues as a result of higher average PLO in addition to higher merchandise sales and merchandise sales gross profit.
•PSC increased 10% as a result of higher average PLO.
•Merchandise sales gross margin remains within our target range at 35%, down from 36%. Aged general merchandise was 2.1% of total general merchandise inventory.

•Net inventory increased 21%, due to the increase in PLO and decrease in inventory turnover to 2.7x, from 3.0x.
•Store expenses increased 5% and 3% on a same-store basis.
•General and administrative expenses increased 13%, primarily due to labor (including incentive compensation) and, to a lesser extent, ongoing support costs related to Workday.
•Income before taxes was $41.4 million, up 10% from $37.7 million, and adjusted EBITDA increased 12% to $53.0 million.
•Diluted earnings per share increased 11% to $0.40. On an adjusted basis, diluted earnings per share increased 17% to $0.42.
•Cash and cash equivalents at the end of the quarter was $174.5 million, up from $170.5 million as of September 30, 2024. The increase was primarily due to cash from operating activities, partially offset by increase in earning assets, capital expenditures, taxes paid related to net share settlement of equity awards and share repurchases.


SEGMENT RESULTS
U.S. Pawn
•PLO ended the quarter at $220.2 million, up 15% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance.
•Total revenues increased 7% and gross profit increased 9%, reflecting higher PSC and merchandise sales.
•PSC increased 11% as a result of higher average PLO.
•Merchandise sales increased 3%, and gross margin was flat at 37%. Aged general merchandise increased to 2.6%, or $1.2 million of total general merchandise inventory. Excluding our three Max Pawn luxury stores in Las Vegas, aged general merchandise was 1%.
•Net inventory increased 17%, in line with the growth in PLO. Inventory turnover decreased to 2.5x, from 2.7x.
•Store expenses increased 8% (5% on a same-store basis), primarily due to labor costs (including higher health benefits) supporting more store activity, offset by a decrease in expenses related to our loyalty program.
•Segment contribution increased 11% to $52.9 million.
•During the quarter, segment store count remained at 542.
Latin America Pawn
•PLO improved to $54.6 million, up 4% (19% on constant currency basis). On a same-store basis, PLO increased 2% (17% on a constant currency basis) due to improved operational performance and increased loan demand.
•Total revenues were up 7% (18% on constant currency basis), and gross profit increased 4% (14% on a constant currency basis), mainly due to increased PSC and higher merchandise sales.
•PSC increased to $29.2 million, up 7% (17% on a constant currency basis) as a result of higher average PLO.
•Merchandise sales increased 7% (19% on constant currency basis) and merchandise sales gross margin decreased to 30% from 32%. Aged general merchandise decreased to 1.4% from 1.6% of total general merchandise inventory.
•Net inventory increased 35% (57% on a constant currency basis) due to increase in PLO and decrease in inventory turnover to 3.1x, from 3.8x.
•Store expenses were flat (11% increase on a constant currency basis) and on a same-store basis decreased 2% (9% increase on a constant currency basis), primarily due to labor and rent.
•Segment contribution increased 14% to $11.6 million (24% on a constant currency basis). On an adjusted basis, segment contribution was up 22% to $12.5 million.
•During the quarter, segment store count increased by four de novo stores to 741.


FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2024 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.
CONFERENCE CALL
EZCORP will host a conference call on Thursday, February 6, 2025, at 8:00 am Central Time to discuss First Quarter Fiscal 2025 results. Analysts and institutional investors may participate on the conference call by registering online at https://register.vevent.com/register/BI86f9072cf4c447ae86954e0a22daa957. Once registered you will receive the dial-in details with a unique PIN to join the call. The conference call will be webcast simultaneously to the public through this link: http://investors.ezcorp.com. A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the end of the call. 
ABOUT EZCORP
Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index. 
Follow us on social media:
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EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/
FORWARD LOOKING STATEMENTS
This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company's strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.
Contact:
Email: Investor_Relations@ezcorp.com
Phone: (512) 314-2220
Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions. Numbers may not foot or cross foot due to rounding.
1“Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.
2“Same-store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.

EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
December 31,
(in thousands, except per share amounts)20242023
Revenues:
Merchandise sales$186,343 $179,403 
Jewelry scrapping sales16,732 14,082 
Pawn service charges117,052 106,449 
Other revenues43 57 
Total revenues320,170 299,991 
Merchandise cost of goods sold121,824 115,210 
Jewelry scrapping cost of goods sold12,942 12,208 
Gross profit185,404 172,573 
Operating expenses:
Store expenses116,451 110,555 
General and administrative18,669 16,543 
Depreciation and amortization8,335 8,565 
Loss (gain) on sale or disposal of assets and other8 (172)
Total operating expenses143,463 135,491 
Operating income41,941 37,082 
Interest expense3,147 3,440 
Interest income(2,093)(2,639)
Equity in net income of unconsolidated affiliates(1,475)(1,153)
Other expense (income)978 (271)
Income before income taxes
41,384 37,705 
Income tax expense 10,368 9,235 
Net income$31,016 $28,470 
Basic earnings per share $0.57 $0.52 
Diluted earnings per share $0.40 $0.36 
Weighted-average basic shares outstanding54,827 55,076 
Weighted-average diluted shares outstanding83,347 86,812 


EZCORP, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)December 31,
2024		December 31,
2023
September 30,
2024
Assets:
Current assets:
Cash and cash equivalents$174,506 $218,516 $170,513 
Restricted cash9,386 8,470 9,294 
Pawn loans274,824 243,252 274,084 
Pawn service charges receivable, net45,198 40,002 44,013 
Inventory, net199,481 164,927 191,923 
Prepaid expenses and other current assets36,562 44,001 39,171 
Total current assets739,957 719,168 728,998 
Investments in unconsolidated affiliates13,555 10,125 13,329 
Other investments51,903 51,220 51,900 
Property and equipment, net63,231 68,998 65,973 
Right-of-use assets, net227,810 231,103 226,602 
Goodwill304,722 303,799 306,478 
Intangible assets, net57,093 56,977 58,451 
Deferred tax asset, net24,990 25,984 25,362 
Other assets, net15,872 13,819 16,144 
Total assets $1,499,133 $1,481,193 $1,493,237 
Liabilities and equity:
Current liabilities:
Current maturities of long-term debt, net $103,205 $34,307 $103,072 
Accounts payable, accrued expenses and other current liabilities68,682 69,386 85,737 
Customer layaway deposits24,216 18,324 21,570 
Operating lease liabilities, current57,900 57,980 58,998 
Total current liabilities254,003 179,997 269,377 
Long-term debt, net224,505 326,223 224,256 
Deferred tax liability, net2,186 372 2,080 
Operating lease liabilities182,228 188,475 180,616 
Other long-term liabilities12,317 11,243 12,337 
Total liabilities675,239 706,310 688,666 
Commitments and contingencies
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,050,550 as of December 31, 2024; 52,272,594 as of December 31, 2023; and 51,582,698 as of September 30, 2024
520 523 516 
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171
30 30 30 
Additional paid-in capital345,783 343,870 348,366 
Retained earnings536,427 457,929 507,206 
Accumulated other comprehensive loss(58,866)(27,469)(51,547)
Total equity823,894 774,883 804,571 
Total liabilities and equity$1,499,133 $1,481,193 $1,493,237 



EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
December 31,
(in thousands)20242023
Operating activities:
Net income $31,016 $28,470 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization8,335 8,565 
Amortization of debt discount and deferred financing costs382 417 
Non-cash lease expense14,421 14,744 
Deferred income taxes478 345 
Other adjustments(617)(857)
Provision for inventory reserve59 (156)
Stock compensation expense2,597 2,264 
Equity in net income from investment in unconsolidated affiliates(1,475)(1,153)
Changes in operating assets and liabilities, net of business acquisitions:
Pawn service charges receivable(1,368)(1,000)
Inventory(2,384)2,066 
Prepaid expenses, other current assets and other assets1,375 (5,823)
Accounts payable, accrued expenses and other liabilities(38,737)(33,991)
Customer layaway deposits2,909 (719)
Income taxes9,000 8,309 
Net cash provided by operating activities25,991 21,481 
Investing activities:
Loans made(247,225)(216,978)
Loans repaid135,190 123,021 
Recovery of pawn loan principal through sale of forfeited collateral101,850 98,209 
Capital expenditures, net(5,609)(7,184)
Investment in other investments— (15,000)
Dividends from unconsolidated affiliates1,902 1,745 
Other(148)(677)
Net cash used in investing activities(14,040)(16,864)
Financing activities:
Taxes paid related to net share settlement of equity awards(3,971)(3,253)
Purchase and retirement of treasury stock(3,000)(3,007)
Payments of finance leases(131)(132)
Net cash used in financing activities (7,102)(6,392)
Effect of exchange rate changes on cash and cash equivalents and restricted cash(764)(207)
Net increase (decrease) in cash, cash equivalents and restricted cash4,085 (1,982)
Cash and cash equivalents and restricted cash at beginning of period179,807 228,968 
Cash and cash equivalents and restricted cash at end of period$183,892 $226,986 
                                                                    


EZCORP, Inc.
OPERATING SEGMENT RESULTS

Three Months Ended December 31, 2024
(Unaudited)
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$128,800 $57,543 $— $186,343 $— $186,343 
Jewelry scrapping sales15,498 1,234 — 16,732 — 16,732 
Pawn service charges87,876 29,176 — 117,052 — 117,052 
Other revenues27 16 — 43 — 43 
Total revenues232,201 87,969 — 320,170 — 320,170 
Merchandise cost of goods sold81,556 40,268 — 121,824 — 121,824 
Jewelry scrapping cost of goods sold11,968 974 — 12,942 — 12,942 
Gross profit138,677 46,727 — 185,404 — 185,404 
Segment and corporate expenses (income):
Store expenses83,089 33,362 — 116,451 — 116,451 
General and administrative— — — — 18,669 18,669 
Depreciation and amortization2,717 2,046 — 4,763 3,572 8,335 
Loss on sale or disposal of assets and other— 8 — 8 — 8 
Interest expense— — — — 3,147 3,147 
Interest income— (202)(594)(796)(1,297)(2,093)
Equity in net (income) loss of unconsolidated affiliates— — (1,623)(1,623)148 (1,475)
Other (income) expense(11)(71)— (82)1,060 978 
Segment contribution$52,882 $11,584 $2,217 $66,683 
Income (loss) before income taxes$66,683 $(25,299)$41,384 
    


Three Months Ended December 31, 2023
(Unaudited)
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$125,513 $53,890 $— $179,403 $— $179,403 
Jewelry scrapping sales12,815 1,267 — 14,082 — 14,082 
Pawn service charges79,073 27,376 — 106,449 — 106,449 
Other revenues37 16 4 57 — 57 
Total revenues217,438 82,549 4 299,991 — 299,991 
Merchandise cost of goods sold78,709 36,501 — 115,210 — 115,210 
Jewelry scrapping cost of goods sold11,284 924 — 12,208 — 12,208 
Gross profit127,445 45,124 4 172,573 — 172,573 
Segment and corporate expenses (income):
Store expenses77,255 33,300 — 110,555 — 110,555 
General and administrative— — — — 16,543 16,543 
Depreciation and amortization2,624 2,339 — 4,963 3,602 8,565 
Loss (gain) on sale or disposal of assets and other26 (196)— (170)(2)(172)
Interest expense— — — — 3,440 3,440 
Interest income— (420)(573)(993)(1,646)(2,639)
Equity in net income of unconsolidated affiliates— — (1,153)(1,153)— (1,153)
Other (income) expense— (48)1 (47)(224)(271)
Segment contribution$47,540 $10,149 $1,729 $59,418 
Income (loss) before income taxes$59,418 $(21,713)$37,705 


EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
 
Three Months Ended December 31, 2024
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2024
542 737 1,279 
New locations opened— 4 4 
As of December 31, 2024
542 741 1,283 
 
Three Months Ended December 31, 2023
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2023
529 702 1,231 
New locations opened— 5 5 
Locations acquired1 — 1 
As of December 31, 2023
530 707 1,237 
Non-GAAP Financial Information (Unaudited)
In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information on a constant currency (“constant currency”) and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.
Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.
Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three months ended December 31, 2024 and 2023 were as follows:
December 31,
Three Months Ended
December 31,
2024202320242023
Mexican peso20.8 17.0 20.1 17.5 
Guatemalan quetzal7.5 7.7 7.5 7.6 
Honduran lempira25.0 24.3 24.8 24.4 
Australian dollar1.6 1.5 1.5 1.5 
Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.


Miscellaneous Non-GAAP Financial Measures
Three Months Ended
December 31,
(in millions)20242023
Net income$31.0 $28.5 
Interest expense3.1 3.4 
Interest income(2.1)(2.6)
Income tax expense10.4 9.2 
Depreciation and amortization8.3 8.6 
EBITDA$50.8 $47.1 
    
Total RevenuesGross ProfitIncome Before TaxTax EffectNet IncomeDiluted EPS EBITDA
2025 Q1 Reported$320.2 $185.4 $41.4 $10.4 $31.0 $0.40 $50.8 
FX Impact— — 1.0 0.2 0.8 0.01 1.0 
Constant Currency9.5 4.8 1.0 0.2 0.8 0.01 1.2 
2025 Q1 Adjusted $329.7 $190.2 $43.4 $10.8 $32.6 $0.42 $53.0 

Total RevenuesGross ProfitIncome Before TaxTax EffectNet IncomeDiluted EPS EBITDA
2024 Q1 Reported$300.0 $172.6 $37.7 $9.2 $28.5 $0.36 $47.1 
FX Impact— — 0.1 — 0.1 — 0.1 
2024 Q1 Adjusted $300.0 $172.6 $37.8 $9.2 $28.6 $0.36 $47.2 



Three Months Ended
December 31, 2024
(in millions)U.S. Dollar AmountPercentage Change YOY
Consolidated revenues $320.2 7 %
Currency exchange rate fluctuations9.5 
Constant currency consolidated revenues$329.7 10 %
Consolidated gross profit $185.4 7 %
Currency exchange rate fluctuations4.8 
Constant currency consolidated gross profit$190.2 10 %
Consolidated net inventory$199.5 21 %
Currency exchange rate fluctuations8.5 
Constant currency consolidated net inventory$208.0 26 %
Latin America Pawn gross profit $46.7 4 %
Currency exchange rate fluctuations4.8 
Constant currency Latin America Pawn gross profit $51.5 14 %
Latin America Pawn PLO$54.6 4 %
Currency exchange rate fluctuations8.1 
Constant currency Latin America Pawn PLO$62.7 19 %
Latin America Pawn PSC revenues $29.2 7 %
Currency exchange rate fluctuations2.8 
Constant currency Latin America Pawn PSC revenues $32.0 17 %
Latin America Pawn merchandise sales $57.5 7 %
Currency exchange rate fluctuations6.6 
Constant currency Latin America Pawn merchandise sales $64.1 19 %
Latin America Pawn segment profit before tax$11.6 14 %
Currency exchange rate fluctuations0.9 
Constant currency Latin America Pawn segment profit before tax$12.5 24 %