EZCORP INC. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>EZCORP INC. reported a 3% decrease in revenue and a 10% decrease in net income for the quarter ended March 31, 2024, compared to the prior year.</b>

AI Summary

EZCORP INC (EZPW) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Revenue for the three months ended March 31, 2024, was $194.8 million, a 3% decrease from $200.8 million in the prior year period. Net income for the three months ended March 31, 2024, was $20.5 million, a 10% decrease from $22.8 million in the prior year period. Earnings per share (EPS) for the three months ended March 31, 2024, were $0.32, a 9% decrease from $0.35 in the prior year period. Total assets as of March 31, 2024, were $1.3 billion. Total debt as of March 31, 2024, was $536.9 million.

Why It Matters

For investors and stakeholders tracking EZCORP INC, this filing contains several important signals. The decline in revenue and net income suggests potential headwinds in the company's core business operations or market conditions affecting consumer spending. The filing provides detailed segment data, allowing investors to analyze performance across merchandise, jewelry scrapping, and pawn services.

Risk Assessment

Risk Level: — EZCORP INC shows moderate risk based on this filing. The company experienced a decrease in revenue and net income for the quarter, indicating potential challenges in its business operations or market demand.

Analyst Insight

Monitor upcoming earnings calls and investor presentations for management's explanation of the revenue and net income decline and their strategies to address these trends.

Revenue Breakdown

Key Numbers

• 194.8 — Revenue (Q3 2024) (in millions of USD)
• 200.8 — Revenue (Q3 2023) (in millions of USD)
• 20.5 — Net Income (Q3 2024) (in millions of USD)
• 22.8 — Net Income (Q3 2023) (in millions of USD)
• 0.32 — EPS (Q3 2024) (in USD)
• 0.35 — EPS (Q3 2023) (in USD)
• 1.3 — Total Assets (as of Mar 31, 2024) (in billions of USD)
• 536.9 — Total Debt (as of Mar 31, 2024) (in millions of USD)

Key Players & Entities

• EZCORP INC (company) — FILER
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-01 (date) — FILED AS OF DATE
• $194.8 million (dollar_amount) — Revenue for the three months ended March 31, 2024
• $200.8 million (dollar_amount) — Revenue for the prior year period
• $20.5 million (dollar_amount) — Net income for the three months ended March 31, 2024
• $22.8 million (dollar_amount) — Net income for the prior year period
• $0.32 (dollar_amount) — Earnings per share for the three months ended March 31, 2024

FAQ

Risk Factors

• Revenue Decline [medium — financial]: Revenue decreased by 3% to $194.8 million for the three months ended March 31, 2024, compared to $200.8 million for the same period in the prior year.
• Net Income Decrease [medium — financial]: Net income decreased by 10% to $20.5 million for the three months ended March 31, 2024, compared to $22.8 million for the same period in the prior year.
• Earnings Per Share Reduction [medium — financial]: Diluted earnings per share decreased by 9% to $0.32 for the three months ended March 31, 2024, compared to $0.35 for the same period in the prior year.

Filing Documents

• ezpw-20240331.htm (10-Q) — 2046KB
• a2024-q210xqex311.htm (EX-31.1) — 11KB
• a2024-q210xqex312.htm (EX-31.2) — 11KB
• a2024-q210xqex321.htm (EX-32.1) — 6KB
• ezpw-20240331_g1.jpg (GRAPHIC) — 21KB
• ezpw-20240331_g2.jpg (GRAPHIC) — 94KB
• ezpw-20240331_g3.jpg (GRAPHIC) — 79KB
• 0000876523-24-000018.txt (&nbsp;) — 10726KB
• ezpw-20240331.xsd (EX-101.SCH) — 44KB
• ezpw-20240331_cal.xml (EX-101.CAL) — 117KB
• ezpw-20240331_def.xml (EX-101.DEF) — 289KB
• ezpw-20240331_lab.xml (EX-101.LAB) — 616KB
• ezpw-20240331_pre.xml (EX-101.PRE) — 475KB
• ezpw-20240331_htm.xml (XML) — 2172KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) Condensed Consolidated Balance Sheets as of March 31, 202 4 and 202 3 and September 30, 2023 1 Condensed Consolidated Statements of Operations for the Three and Six Months Ended M arch 31 , 202 4 and 2023 2 Condensed Consolidated Statements of Comprehensive Income for the Three and S ix Months Ended March 31, 202 4 and 2023 3 Condensed Consolidated Statements of Stockholders' Equity for the Periods Ended March 31, 202 4 and 2023 4 Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 31, 202 4 and 2023 5 Notes to Condensed Consolidated Financial Statements 6 Note 1: Organization and Summary of Significant Accounting Policies 6 Note 2: Goodwill 7 Note 3: Earnings Per Share 8 Note 4: Leases 9 Note 5: Strategic Investments 11 Note 6: Fair Value Measurements 12 Note 7: Debt 14 Note 8: Common Stock and Stock Compensation 17 Note 9: Commitments and Contingencies 18 Note 10: Segment Information 18 Note 11: Supplemental Consolidated Financial Information 22

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 23

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 36

Controls and Procedures

Item 4. Controls and Procedures 36

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sale of Equity Security and Use of Proceeds

Item 2. Unregistered Sale of Equity Security and Use of Proceeds 37

Other Information

Item 5. Other Information 37

Exhibits

Item 6. Exhibits 38

SIGNATURES

SIGNATURES 39 Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS EZCORP, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share amounts) March 31, 2024 March 31, 2023 September 30, 2023 Assets: Current assets: Cash and cash equivalents $ 229,111 $ 243,128 $ 220,595 Restricted cash 8,581 8,451 8,373 Pawn loans 235,773 206,096 245,766 Pawn service charges receivable, net 38,268 33,116 38,885 Inventory, net 163,429 150,297 166,477 Prepaid expenses and other current assets 47,142 45,564 39,623 Total current assets 722,304 686,652 719,719 Investments in unconsolidated affiliates 13,162 10,681 10,987 Other investments 51,220 39,220 36,220 Property and equipment, net 63,306 59,775 68,096 Right-of-use assets, net 243,752 234,287 234,388 Goodwill 310,658 300,078 302,372 Intangible assets, net 61,714 59,620 58,216 Notes receivable, net — 1,233 — Deferred tax asset, net 26,247 19,127 25,702 Other assets, net 15,779 9,859 12,011 Total assets $ 1,508,142 $ 1,420,532 $ 1,467,711 Liabilities and equity: Current liabilities: Current maturities of long-term debt, net $ 34,347 $ — $ 34,265 Accounts payable, accrued expenses and other current liabilities 62,838 72,695 81,605 Customer layaway deposits 20,352 18,761 18,920 Operating lease liabilities, current 55,658 53,921 57,182 Total current liabilities 173,195 145,377 191,972 Long-term debt, net 326,573 359,287 325,847 Deferred tax liability, net 465 368 435 Operating lease liabilities 197,285 191,874 193,187 Other long-term liabilities 10,228 11,038 10,502 Total liabilities 707,746 707,944 721,943 Commitments and contingencies (Note 9) Stockholders' equity: Class A Non-voting Common Stock, par value $ 0.01 per share; shares authorized: 100 million; issued and outstanding: 52,057,309 as of March 31, 2024; 52,561,071 as of March 31, 2023; and 51,869,569 as of September 30, 2023 521 526 519 Class B Voting Common Stock, convertible, par value $ 0.01 per share; shares authorized: 3

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View this 10-Q filing on SEC EDGAR