• EZCORP Reports Second Quarter Fiscal 2025 Results

    المصدر: Nasdaq GlobeNewswire / 28 أبريل 2025 15:05:06   America/Chicago

    AUSTIN, Texas, April 28, 2025 (GLOBE NEWSWIRE) -- EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its second quarter ended March 31, 2025.

    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.

    SECOND QUARTER HIGHLIGHTS

    • Pawn loans outstanding (PLO) up 11% to $261.8 million.
    • Net income increased 18% to $25.4 million. On an adjusted basis1, net income increased 25% to $26.1 million.
    • Diluted earnings per share increased 14% to $0.33. On an adjusted basis, diluted earnings per share increased 21% to $0.34.
    • Adjusted EBITDA increased 23% to $45.1 million.
    • Total revenues increased 7% to $306.3 million, while gross profit increased 6% to $178.5 million.
    • Completed a $300.0 million private offering of senior notes due 2032.

    CEO COMMENTARY AND OUTLOOK
    Lachie Given, Chief Executive Officer, stated, “Our team delivered another impressive quarter of operational and financial performance, highlighted by record Q2 PLO, which drove strong growth in revenue and pawn service charges. Persistent inflation and economic pressure continue to impact value-conscious consumers who are increasingly turning to us for short-term cash and secondhand goods. Our strengthened operating model and best-in-class customer service also fueled the bottom line, driving a material increase in adjusted EBITDA to $45.1 million, up 23%.

    “Our consistent performance across geographies reflects our company-wide commitment to our core values of People, Pawn and Passion. In the U.S., PLO and adjusted EBITDA increased 15%, reflecting strong loan demand, increased average loan size and disciplined cost management. In Latin America, PLO increased 17% on a constant currency basis, and adjusted EBITDA grew 36%, propelled by robust demand for loans and secondhand goods and our strong operational execution.

    “Our disciplined capital allocation strategy prioritizes substantial liquidity to drive strong organic growth, pursue value-enhancing acquisitions and investments and meet near-term debt maturities. In March, we completed a $300.0 million private offering of senior notes, the Company’s largest financing transaction to date, expanding our financial flexibility for continued growth and meaningfully enhancing our capital structure, as we retire our 2025 convertible notes maturing on May 1.

    “It was another outstanding quarter for EZCORP, and I thank the team for their unwavering commitment to operational excellence as we continue to drive significantly enhanced value for our shareholders.”

    CONSOLIDATED RESULTS

    Three Months Ended March 31As Reported Adjusted1
    in millions, except per share amounts2025
    		 2024
    		 2025
    		 2024
            
    Total revenues$306.3  $285.6  $318.9  $285.6 
    Gross profit$178.5  $167.6  $185.0  $167.6 
    Income before tax$34.4  $28.7  $35.4  $28.0 
    Net income$25.4  $21.5  $26.1  $21.0 
    Diluted earnings per share$0.33  $0.29  $0.34  $0.28 
    EBITDA (non-GAAP measure)$43.8  $37.4  $45.1  $36.7 
                    
    • PLO increased 11% to $261.8 million, up $26.1 million. On a same-store2 basis, PLO increased 11% due to increase in average loan size, continued strong pawn demand and improved operational performance.
    • Total revenues increased 7% and gross profit increased 6%, reflecting improved pawn service charge (PSC) revenues due to higher average PLO.
    • PSC increased 8% as a result of higher average PLO.
    • Merchandise sales gross margin at 34%, down from 35%. Aged general merchandise was 2.4% of total general merchandise inventory, up 14 basis points.
    • Net inventory increased 27%, as a result of the increase in PLO and decrease in inventory turnover to 2.5x, from 2.9x.
    • Store expenses increased 2% and were flat on a same-store basis.
    • General and administrative expenses increased 8%, primarily due to labor and a gain on a corporate lease termination in the prior year.
    • Income before taxes was $34.4 million, up 20% from $28.7 million, and adjusted EBITDA increased 23% to $45.1 million.
    • Diluted earnings per share increased 14% to $0.33. On an adjusted basis, diluted earnings per share increased 21% to $0.34.
    • Cash and cash equivalents at the end of the quarter was $505.2 million, up from $170.5 million as of September 30, 2024. The increase was primarily due to $300.0 million (less issuance costs) from the issuance of the Senior Notes due 2032 and cash from operating activities.

    SEGMENT RESULTS
    U.S. Pawn

    • PLO ended the quarter at $199.4 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 8%, reflecting higher PSC.
    • PSC increased 9% as a result of higher average PLO, partially offset by lower PLO yield.
    • Merchandise sales increased 2%, and gross margin decreased to 36% from 37%. Aged general merchandise decreased by 14 basis points to 2.8%, or $1.3 million of total general merchandise inventory. Excluding our three Max Pawn luxury stores in Las Vegas, aged general merchandise was 1.5%.
    • Net inventory increased 29%, due to increase in PLO, increase in customer layaways and a decrease in inventory turnover to 2.3x, from 2.6x.
    • Store expenses increased 3% (2% on a same-store basis) primarily due to labor, the majority of which was offset by a decrease in expenses related to our loyalty program.
    • Segment contribution increased 16% to $47.1 million.
    • Segment store count remained at 542.

    Latin America Pawn

    • PLO improved to $62.4 million, up 1% (17% on constant currency basis). On a same-store basis, PLO decreased 2% (14% increase on a constant currency basis). The constant currency increase was due to improved operational performance and increased loan demand.
    • Total revenues were up 9% (25% on constant currency basis), and gross profit increased 3% (18% on a constant currency basis), mainly due to increased PSC.
    • PSC increased to $28.3 million, up 4% (19% on a constant currency basis) as a result of higher average PLO.
    • Merchandise sales increased 5% (21% on constant currency basis) and merchandise sales gross margin decreased to 30% from 33%. Aged general merchandise increased to 1.9% from 1.4% of total general merchandise inventory.
    • Net inventory increased 23% (44% on a constant currency basis) due to increase in PLO and decrease in inventory turnover to 3.2x, from 3.6x.
    • Store expenses decreased 2% (13% increase on a constant currency basis) and decreased 4% on a same-store basis (11% increase on a constant currency basis). The constant currency increase was primarily due to increased labor, in line with store activity and minimum wage increases, offset by a decrease in expenses related to our loyalty program.
    • Segment contribution increased 30% to $10.6 million (43% on a constant currency basis). On an adjusted basis, segment contribution was up 42% to $11.6 million.
    • Segment store count increased by one to 742 due to the addition of nine de novo stores, the acquisition of one store, and the consolidation of nine stores.

    FORM 10-Q
    EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 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 Tuesday, April 29, 2025, at 8:00 am Central Time to discuss Second Quarter Fiscal 2025 results. Analysts and institutional investors may participate on the conference call by registering online at https://registrations.events/direct/NTM1088399. 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: https://edge.media-server.com/mmc/p/hqptihjy. 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:
    Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
    EZCORP Instagram Official https://www.instagram.com/ezcorp_official/
    EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/
    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

        
    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
        
     Three Months Ended
    March 31,    		 Six Months Ended
    March 31,
    (in thousands, except per share amounts)2025 2024 2025 2024
    Revenues:       
    Merchandise sales$169,467  $164,687  $355,810  $344,090 
    Jewelry scrapping sales 20,938   13,714   37,670   27,796 
    Pawn service charges 115,871   107,163   232,923   213,612 
    Other revenues 40   75   83   132 
    Total revenues 306,316   285,639   626,486   585,630 
    Merchandise cost of goods sold 111,555   106,259   233,379   221,469 
    Jewelry scrapping cost of goods sold 16,309   11,788   29,251   23,996 
    Gross profit 178,452   167,592   363,856   340,165 
    Operating expenses:       
    Store expenses 116,527   114,582   232,978   225,137 
    General and administrative 19,640   18,266   38,309   34,809 
    Depreciation and amortization 8,020   8,219   16,355   16,784 
    Loss (gain) on sale or disposal of assets and other 17   3   25   (169)
    Other income —   (765)  —   (765)
    Total operating expenses 144,204   140,305   287,667   275,796 
    Operating income 34,248   27,287   76,189   64,369 
    Interest expense 3,281   3,402   6,428   6,842 
    Interest income (1,875)  (2,882)  (3,968)  (5,521)
    Equity in net income of unconsolidated affiliates (1,505)  (1,719)  (2,980)  (2,872)
    Other (income) expense (65)  (165)  913   (436)
    Income before income taxes 34,412   28,651   75,796   66,356 
    Income tax expense 9,022   7,172   19,390   16,407 
    Net income$25,390  $21,479  $56,406  $49,949 
            
    Basic earnings per share$0.46  $0.39  $1.03  $0.91 
    Diluted earnings per share$0.33  $0.29  $0.74  $0.65 
            
    Weighted-average basic shares outstanding 54,965   55,093   54,895   55,084 
    Weighted-average diluted shares outstanding 83,140   83,045   83,247   84,948 
                    


    EZCORP, Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
          
    (in thousands, except share and per share amounts)March 31,
    2025    		 March 31,
    2024    		 September 30,
    2024
          
    Assets:     
    Current assets:     
    Cash and cash equivalents$505,239  $229,111  $170,513 
    Restricted cash 9,499   8,581   9,294 
    Pawn loans 261,830   235,773   274,084 
    Pawn service charges receivable, net 42,323   38,268   44,013 
    Inventory, net 207,783   163,429   191,923 
    Prepaid expenses and other current assets 40,283   47,142   39,171 
    Total current assets 1,066,957   722,304   728,998 
    Investments in unconsolidated affiliates 13,967   13,162   13,329 
    Other investments 51,903   51,220   51,900 
    Property and equipment, net 64,150   63,306   65,973 
    Right-of-use assets, net 229,878   243,752   226,602 
    Goodwill 305,239   310,658   306,478 
    Intangible assets, net 57,079   61,714   58,451 
    Deferred tax asset, net 25,090   26,247   25,362 
    Other assets, net 15,365   15,779   16,144 
    Total assets$1,829,628  $1,508,142  $1,493,237 
          
    Liabilities and equity:     
    Current liabilities:     
    Current maturities of long-term debt, net$103,325  $34,347  $103,072 
    Accounts payable, accrued expenses and other current liabilities 70,843   62,838   85,737 
    Customer layaway deposits 31,016   20,352   21,570 
    Operating lease liabilities, current 58,855   55,658   58,998 
    Total current liabilities 264,039   173,195   269,377 
    Long-term debt, net 517,188   326,573   224,256 
    Deferred tax liability, net 1,818   465   2,080 
    Operating lease liabilities 182,873   197,285   180,616 
    Other long-term liabilities 12,135   10,228   12,337 
    Total liabilities 978,053   707,746   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: 52,043,599 as of March 31, 2025; 52,057,309 as of March 31, 2024; and 51,582,698 as of September 30, 2024 520   521   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 capital 347,796   345,174   348,366 
    Retained earnings 561,211   477,683   507,206 
    Accumulated other comprehensive loss (57,982)  (23,012)  (51,547)
    Total equity 851,575   800,396   804,571 
    Total liabilities and equity$1,829,628  $1,508,142  $1,493,237 
                


    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
      
     Six Months Ended
    March 31,
    (in thousands)2025 2024
      
    Operating activities:   
    Net income$56,406  $49,949 
    Adjustments to reconcile net income to net cash provided by operating activities:   
    Depreciation and amortization 16,355   16,784 
    Amortization of deferred financing costs 725   807 
    Non-cash lease expense 28,943   29,514 
    Deferred income taxes 10   515 
    Other adjustments (1,241)  (1,429)
    Provision for inventory reserve 39   183 
    Stock compensation expense 5,001   4,844 
    Equity in net income from investment in unconsolidated affiliates (2,980)  (2,872)
    Changes in operating assets and liabilities, net of business acquisitions:   
    Pawn service charges receivable 1,547   1,071 
    Inventory (5,390)  1,617 
    Prepaid expenses, other current assets and other assets 444   (8,699)
    Accounts payable, accrued expenses and other liabilities (45,490)  (57,531)
    Customer layaway deposits 9,640   886 
    Income taxes (1,081)  909 
    Net cash provided by operating activities 62,928   36,548 
    Investing activities:   
    Loans made (484,611)  (433,194)
    Loans repaid 284,095   262,970 
    Recovery of pawn loan principal through sale of forfeited collateral 198,387   188,351 
    Capital expenditures, net (13,966)  (13,654)
    Acquisitions, net of cash acquired (79)  (8,610)
    Investment in unconsolidated affiliate (509)  (850)
    Investment in other investments —   (15,000)
    Dividends from unconsolidated affiliates 1,902   1,745 
    Net cash used in investing activities (14,781)  (18,242)
    Financing activities:   
    Taxes paid related to net share settlement of equity awards (3,971)  (3,253)
    Proceeds from borrowings 300,000   — 
    Debt issuance cost (5,310)  — 
    Purchase and retirement of treasury stock (3,997)  (6,010)
    Payments of finance leases (266)  (276)
    Net cash provided by (used in) financing activities 286,456   (9,539)
    Effect of exchange rate changes on cash and cash equivalents and restricted cash 328   (43)
    Net increase in cash, cash equivalents and restricted cash 334,931   8,724 
    Cash and cash equivalents and restricted cash at beginning of period 179,807   228,968 
    Cash and cash equivalents and restricted cash at end of period$514,738  $237,692 
        


    EZCORP, Inc.
    OPERATING SEGMENT RESULTS
      
     Three Months Ended March 31, 2025
    (Unaudited)
    (in thousands)U.S. Pawn Latin America
    Pawn    		 Other
    Investments    		 Total Segments Corporate
    Items    		 Consolidated
                
    Revenues:           
    Merchandise sales$116,915  $52,552  $—  $169,467  $—  $169,467 
    Jewelry scrapping sales 16,898   4,040   —   20,938   —   20,938 
    Pawn service charges 87,548   28,323   —   115,871   —   115,871 
    Other revenues 24   16   —   40   —   40 
    Total revenues 221,385   84,931   —   306,316   —   306,316 
    Merchandise cost of goods sold 74,772   36,783   —   111,555   —   111,555 
    Jewelry scrapping cost of goods sold 13,235   3,074   —   16,309   —   16,309 
    Gross profit 133,378   45,074   —   178,452   —   178,452 
    Segment and corporate expenses (income):           
    Store expenses 83,532   32,995   —   116,527   —   116,527 
    General and administrative —   —   —   —   19,640   19,640 
    Depreciation and amortization 2,682   1,989   —   4,671   3,349   8,020 
    Loss on sale or disposal of assets and other 17   —   —   17   —   17 
    Interest expense —   —   —   —   3,281   3,281 
    Interest income —   (337)  (605)  (942)  (933)  (1,875)
    Equity in net (income) loss of unconsolidated affiliates —   —   (1,866)  (1,866)  361   (1,505)
    Other expense (income) 4   (137)  —   (133)  68   (65)
    Segment contribution$47,143  $10,564  $2,471  $60,178     
    Income (loss) before income taxes      $60,178  $(25,766) $34,412 
                      


     Three Months Ended March 31, 2024
    (Unaudited)
    (in thousands)U.S. Pawn Latin America
    Pawn    		 Other
    Investments    		 Total Segments Corporate
    Items    		 Consolidated
                
    Revenues:           
    Merchandise sales$114,849  $49,838  $—  $164,687  $—  $164,687 
    Jewelry scrapping sales 12,686   1,028   —   13,714   —   13,714 
    Pawn service charges 80,010   27,153   —   107,163   —   107,163 
    Other revenues 29   15   31   75   —   75 
    Total revenues 207,574   78,034   31   285,639   —   285,639 
    Merchandise cost of goods sold 72,798   33,461   —   106,259   —   106,259 
    Jewelry scrapping cost of goods sold 10,794   994   —   11,788   —   11,788 
    Gross profit 123,982   43,579   31   167,592   —   167,592 
    Segment and corporate expenses (income):           
    Store expenses 80,840   33,742   —   114,582   —   114,582 
    General and administrative —   —   —   —   18,266   18,266 
    Depreciation and amortization 2,516   2,392   —   4,908   3,311   8,219 
    (Gain) loss on sale or disposal of assets and other (30)  (66)  —   (96)  99   3 
    Other income —   —   —   —   (765)  (765)
    Interest expense —   —   —   —   3,402   3,402 
    Interest income —   (608)  (633)  (1,241)  (1,641)  (2,882)
    Equity in net income of unconsolidated affiliates —   —   (1,719)  (1,719)  —   (1,719)
    Other expense (income) —   1   14   15   (180)  (165)
    Segment contribution$40,656  $8,118  $2,369  $51,143     
    Income (loss) before income taxes      $51,143  $(22,492) $28,651 
                      


     Six Months Ended March 31, 2025
    (Unaudited)
    (in thousands)U.S. Pawn Latin America
    Pawn    		 Other
    Investments    		 Total Segments Corporate
    Items    		 Consolidated
                
    Revenues:           
    Merchandise sales$245,715  $110,095  $—  $355,810  $—  $355,810 
    Jewelry scrapping sales 32,396   5,274   —   37,670   —   37,670 
    Pawn service charges 175,424   57,499   —   232,923   —   232,923 
    Other revenues 51   32   —   83   —   83 
    Total revenues 453,586   172,900   —   626,486   —   626,486 
    Merchandise cost of goods sold 156,328   77,051   —   233,379   —   233,379 
    Jewelry scrapping cost of goods sold 25,203   4,048   —   29,251   —   29,251 
    Gross profit 272,055   91,801   —   363,856   —   363,856 
    Segment and corporate expenses (income):           
    Store expenses 166,621   66,357   —   232,978   —   232,978 
    General and administrative —   —   —   —   38,309   38,309 
    Depreciation and amortization 5,399   4,035   —   9,434   6,921   16,355 
    Loss on sale or disposal of assets and other 17   8   —   25   —   25 
    Interest expense —   —   —   —   6,428   6,428 
    Interest income —   (539)  (1,199)  (1,738)  (2,230)  (3,968)
    Equity in net (income) loss of unconsolidated affiliates —   —   (3,489)  (3,489)  509   (2,980)
    Other (income) loss (7)  (208)  —   (215)  1,128   913 
    Segment contribution 100,025   22,148  $4,688  $126,861     
    Income (loss) before income taxes      $126,861  $(51,065) $75,796 
                      


     Six Months Ended March 31, 2024
    (Unaudited)
    (in thousands)U.S. Pawn Latin America
    Pawn    		 Other
    Investments    		 Total Segments Corporate
    Items    		 Consolidated
                
    Revenues:           
    Merchandise sales$240,362  $103,728  $—  $344,090  $—  $344,090 
    Jewelry scrapping sales 25,501   2,295   —   27,796   —   27,796 
    Pawn service charges 159,083   54,529   —   213,612   —   213,612 
    Other revenues 66   31   35   132   —   132 
    Total revenues 425,012   160,583   35   585,630   —   585,630 
    Merchandise cost of goods sold 151,507   69,962   —   221,469   —   221,469 
    Jewelry scrapping cost of goods sold 22,078   1,918   —   23,996   —   23,996 
    Gross profit 251,427   88,703   35   340,165   —   340,165 
    Segment and corporate expenses (income):           
    Store expenses 158,095   67,042   —   225,137   —   225,137 
    General and administrative —   —   —   —   34,809   34,809 
    Depreciation and amortization 5,140   4,731   —   9,871   6,913   16,784 
    (Gain) loss on sale or disposal of assets and other (4)  (262)  —   (266)  97   (169)
    Other income —   —   —   —   (765)  (765)
    Interest expense —   —   —   —   6,842   6,842 
    Interest income —   (1,028)  (1,206)  (2,234)  (3,287)  (5,521)
    Equity in net income of unconsolidated affiliates —   —   (2,872)  (2,872)  —   (2,872)
    Other (income) expense —   (47)  15   (32)  (404)  (436)
    Segment contribution$88,196  $18,267  $4,098  $110,561     
    Income (loss) before income taxes      $110,561  $(44,205) $66,356 
                      


    EZCORP, Inc.
    STORE COUNT ACTIVITY
    (Unaudited)
      
     Three Months Ended March 31, 2025
     U.S. Pawn
    		 Latin America
    Pawn    		 Consolidated
            
    As of December 31, 2024 542   741   1,283 
    New locations opened —   9   9 
    Locations acquired —   1   1 
    Locations combined or closed —   (9)  (9)
    As of March 31, 2025 542   742   1,284 
                


     Three Months Ended March 31, 2024
     U.S. Pawn Latin America
    Pawn    		 Consolidated
          
    As of December 31, 2023 530   707   1,237 
    New locations opened —   9   9 
    Locations acquired 6   —   6 
    Locations combined or closed (1)  (5)  (6)
    As of March 31, 2024 535   711   1,246 
                


     Six Months Ended March 31, 2025
     U.S. Pawn
    		 Latin America
    Pawn    		 Consolidated
            
    As of September 30, 2024 542   737   1,279 
    New locations opened —   13   13 
    Locations acquired —   1   1 
    Locations combined or closed —   (9)  (9)
    As of March 31, 2025 542   742   1,284 
                


     Six Months Ended March 31, 2024
     U.S. Pawn Latin America
    Pawn    		 Consolidated
          
    As of September 30, 2023 529   702   1,231 
    New locations opened —   14   14 
    Locations acquired 7   —   7 
    Locations combined or closed (1)  (5)  (6)
    As of March 31, 2024 535   711   1,246 
                

    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 and six months ended March 31, 2025 and 2024 were as follows:

     March 31, Three Months Ended
    March 31,    		 Six Months Ended
    March 31,
     2025
    		 2024
    		 2025
    		 2024
    		 2025
    		 2024
                            
    Mexican peso 20.4   16.6   20.4   17.0   20.3   17.3 
    Guatemalan quetzal 7.6   7.6   7.6   7.6   7.5   7.6 
    Honduran lempira 25.2   24.4   25.2   24.4   25.0   24.4 
    Australian dollar 1.6   1.5   1.6   1.5   1.6   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
    March 31,
    (in millions)2025 2024
        
    Net income$25.4  $21.5 
    Interest expense 3.3   3.4 
    Interest income (1.9)  (2.9)
    Income tax expense 9.0   7.2 
    Depreciation and amortization 8.0   8.2 
    EBITDA$43.8  $37.4 
            


     Total
    Revenues    		 Gross
    Profit    		 Income
    Before Tax    		 Tax Effect Net
    Income    		 Diluted EPS  EBITDA
                  
    2025 Q2 Reported$306.3  $178.5  $34.4  $9.0  $25.4  $0.33  $43.8 
    FX Impact —   —   0.1   —   0.1   —   0.1 
    Constant Currency 12.6   6.5   0.9   0.3   0.6   0.01   1.2 
    2025 Q2 Adjusted$318.9  $185.0  $35.4  $9.3  $26.1  $0.34  $45.1 
                                


     Total
    Revenues    		 Gross
    Profit    		 Income
    Before Tax    		 Tax Effect Net
    Income    		 Diluted EPS  EBITDA
                  
    2024 Q2 Reported$285.6  $167.6  $28.7  $7.2  $21.5  $0.29  $37.4 
    Corporate Lease Termination —   —   (0.8)  (0.2)  (0.6)  (0.01)  (0.8)
    FX Impact —   —   0.1   —   0.1   —   0.1 
    2024 Q2 Adjusted$285.6  $167.6  $28.0  $7.0  $21.0  $0.28  $36.7 
                                


     Three Months Ended
    March 31, 2025    		 Six Months Ended
    March 31, 2025
    (in millions)U.S. Dollar
    Amount    		 Percentage
    Change YOY    		 U.S. Dollar
    Amount    		 Percentage
    Change YOY
            
    Consolidated revenues$306.3   7% $626.5   7%
    Currency exchange rate fluctuations 12.6     22.0   
    Constant currency consolidated revenues$318.9   12% $648.5   11%
            
    Consolidated gross profit$178.5   6% $363.9   7%
    Currency exchange rate fluctuations 6.5     11.3   
    Constant currency consolidated gross profit$185.0   10% $375.2   10%
            
    Consolidated net inventory$207.8   27% $207.8   27%
    Currency exchange rate fluctuations 8.7     8.7   
    Constant currency consolidated net inventory$216.5   32% $216.5   32%
            
    Latin America Pawn gross profit$45.1   3% $91.8   3%
    Currency exchange rate fluctuations 6.5     11.3   
    Constant currency Latin America Pawn gross profit$51.6   18% $103.1   16%
            
    Latin America Pawn PLO$62.4   1% $62.4   1%
    Currency exchange rate fluctuations 10.0     10.0   
    Constant currency Latin America Pawn PLO$72.4   17% $72.4   17%
            
    Latin America Pawn PSC revenues$28.3   4% $57.5   5%
    Currency exchange rate fluctuations 3.9     6.7   
    Constant currency Latin America Pawn PSC revenues$32.2   19% $64.2   18%
            
    Latin America Pawn merchandise sales$52.6   5% $110.1   6%
    Currency exchange rate fluctuations 7.9     14.5   
    Constant currency Latin America Pawn merchandise sales$60.5   21% $124.6   20%
            
    Latin America Pawn segment profit before tax$10.6   30% $22.2   21%
    Currency exchange rate fluctuations 1.0     2.0   
    Constant currency Latin America Pawn segment profit before tax$11.6   43% $24.2   32%
                    

    Primary Logo

شارك على،