• EZCORP Reports Third Quarter Fiscal 2024 Results

    المصدر: Nasdaq GlobeNewswire / 31 يوليو 2024 16:12:56   America/New_York

    AUSTIN, Texas, July 31, 2024 (GLOBE NEWSWIRE) -- EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its third quarter ended June 30, 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.

    THIRD QUARTER HIGHLIGHTS

    • Pawn loans outstanding (PLO) up 14% to $261.7 million.
    • Total revenues increased 10% and gross profit increased 12%, while merchandise sales gross margin remains within our targeted range at 36%.
    • Net income of $18.0 million, compared to $18.2 million. On an adjusted basis1, net income increased $2.2 million or 14%.
    • Diluted earnings per share of $0.25, up from $0.24. On an adjusted basis, diluted earnings per share of $0.23, compared to $0.20.
    • Return on earning assets (ROEA) remains strong at 160%.

    CEO COMMENTARY AND OUTLOOK

    Lachie Given, Chief Executive Officer, stated, “Our team delivered another outstanding quarter for our shareholders, driven by strong customer demand and continued focus on operational execution at the store level. As a result, we achieved record Q3 revenues and our highest level of PLO in Company history. The challenging macro-economic climate continues to fuel robust customer interest in short-term cash solutions and high-quality pre-owned goods, and the team’s focus on market-leading customer service drove excellent operational and financial results, increasing adjusted EBITDA by 15% with expanded margin.

    “During the quarter, we grew our footprint by adding twelve new stores, including six de novo stores in Latin America and one in the U.S., as well as acquiring five stores in the U.S. We now operate 1,258 stores and employ over 8,000 team members. Our strong, liquid balance sheet enables us to continue scaling the business, organically through new store openings and through strategic acquisitions. Additionally, we demonstrated our commitment to returning capital to shareholders by repurchasing $3.0 million worth of shares during the quarter. Subsequent to quarter end, we also settled our convertible notes that matured in 2024 with $34.4 million in cash and 77,328 shares.

    “We continue to prioritize convenience and a seamless customer experience to drive loyalty and engagement. Our EZ+ Rewards program now boasts 5 million members globally, up 51% year-over-year. These members accounted for 76% of unique customer transactions during the quarter, illustrating the ongoing success of the program. Online payments also continue to gain traction with a 49% increase to $21.7 million collected in the U.S.

    “We remain committed to a balanced capital allocation strategy in which we invest in our people and business to drive strong organic growth, execute value-enhancing acquisitions and investments, return capital to shareholders via strategic share repurchases, and maintain substantial liquidity to manage debt. The business is performing exceptionally well and I thank the team for their relentless focus on operational excellence to produce these results for all of our stakeholders,” concluded Given.

    CONSOLIDATED RESULTS

    Three Months Ended June 30As Reported Adjusted1
    in millions, except per share amounts 2024  2023  2024  2023
            
    Total revenues$281.4 $255.8 $279.8 $255.8
    Gross profit$166.7 $148.8 $165.8 $148.8
    Income before tax$23.0 $21.3 $22.8 $18.7
    Net income$18.0 $18.2 $17.0 $14.9
    Diluted earnings per share$0.25 $0.24 $0.23 $0.20
    EBITDA (non-GAAP measure)$31.8 $30.2 $31.6 $27.6
                
    • PLO increased 14% to $261.7 million, up $32.3 million. On a same-store basis, PLO increased 12% due to improved operational performance and continued strong pawn demand.
    • Total revenues increased 10%, and gross profit increased 12%, reflecting improved pawn service charge (PSC) revenues, merchandise sales and merchandise sales gross profit.
    • PSC increased 15% as a result of higher average PLO.
    • Merchandise sales gross margin remains within our target range at 36%. Aged general merchandise was 3.2% of total general merchandise inventory.
    • Net inventory increased 11%, as expected with the growth in PLO. Inventory turnover decreased to 2.7x, from 2.8x.
    • Store expenses increased 11% and 8% on a same-store basis, primarily due to increased labor in-line with store activity and, to a lesser extent, expenses related to our loyalty program.
    • General and administrative expenses increased 12%, primarily due to labor, incentive compensation and, to a lesser extent, costs related to the implementation and ongoing support of Workday.
    • Income before taxes was $23.0 million, up from $21.3 million, and adjusted EBITDA increased 15% to $31.6 million, with the primary adjustment being in the prior year for the reversal of contingent consideration liability in connection with a previously completed acquisition.
    • Diluted earnings per share of $0.25, up from $0.24. On an adjusted basis, diluted earnings per share of $0.23, up from $0.20.
    • Cash and cash equivalents at the end of the quarter was $218.0 million, down 8% year-over-year. The decrease was due to the increase in PLO and inventory, strategic investments and acquisitions, and share repurchases, partially offset by cash from operating activities.

    SEGMENT RESULTS

    U.S. Pawn

    • PLO ended the quarter at $199.3 million, up 11% or 10% on a same-store basis.
    • Total revenues were up 8% and gross profit was up 9%, reflecting increased PSC and higher merchandise sales.
    • PSC increased 13% as a result of higher average PLO.
    • Merchandise sales increased 6%, and gross margin decreased to 38% from 39%. Aged general merchandise increased to 5.0% to $2.0 million of total general merchandise inventory. Excluding luxury handbags in our three Max Pawn stores in Las Vegas, aged general merchandise remains under 1%.
    • Net inventory increased 6%, as expected with the growth in PLO. Inventory turnover remained flat at 2.6x.
    • Store expenses increased 8% and 6% on a same-store basis, primarily due to increased labor in-line with store activity and to a lesser extent, expenses related to our loyalty program.
    • Segment contribution increased 12% to $36.1 million.
    • During the quarter, store count increased by six, due to the acquisition of five stores and opening of one de novo store.

    Latin America Pawn

    • PLO improved to $62.4 million, up 24% (30% on constant currency basis). On a same-store basis, PLO increased 20% (26% on a constant currency basis) due to improved operational performance and increased loan demand.
    • Total revenues were up 15% (13% on constant currency basis), and gross profit increased 21% (19% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved merchandise sales gross profit.
    • PSC increased 22% (19% on a constant currency basis) as a result of higher average PLO.
    • Merchandise sales gross margin increased to 32% from 30%. Aged general merchandise was less than 1% of total merchandise inventory.
    • Net inventory increased 25% (32% on a constant currency basis). Inventory turnover decreased to 3.0x, from 3.4x.
    • Store expenses increased 18% (15% on a constant currency basis) and 14% (12% on a constant currency basis) on a same-store basis, primarily due to increased labor, in line with store activity and to a lesser extent, rent.
    • Segment contribution increased 6% (5% on a constant currency basis). On an adjusted basis, segment contribution was up 43% to $10.2 million, with the primary adjustment being the prior year reversal of contingent consideration liability in connection with a previously completed acquisition.
    • During the quarter, store count increased by six de novo stores.

    FORM 10-Q

    EZCORP’s Quarterly Report on Form 10-Q for the quarter ended June 30, 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. 

    CONFERENCE CALL
    EZCORP will host a conference call on Thursday, August 1, 2024, at 8:00 am Central Time to discuss Third Quarter Fiscal 2024 results. Analysts and institutional investors may participate on the conference call by registering online at https://register.vevent.com/register/BId4b5469876114f61a4e1f86df672523c. 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. 

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    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.
    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
    June 30,    		 Nine Months Ended
    June 30,
    (in thousands, except per share amounts) 2024   2023   2024   2023 
    Revenues:       
    Merchandise sales$158,140  $147,980  $502,230  $464,274 
    Jewelry scrapping sales 15,395   13,931   43,191   34,640 
    Pawn service charges 107,830   93,819   321,442   279,442 
    Other revenues 56   82   188   206 
    Total revenues 281,421   255,812   867,051   778,562 
    Merchandise cost of goods sold 101,211   95,069   322,680   297,285 
    Jewelry scrapping cost of goods sold 13,483   11,958   37,479   30,813 
    Gross profit 166,727   148,785   506,892   450,464 
    Operating expenses:       
    Store expenses 116,335   104,932   341,472   307,004 
    General and administrative 20,060   17,876   54,869   48,961 
    Depreciation and amortization 8,158   8,026   24,942   23,977 
    Loss (gain) on sale or disposal of assets and other 20   (29)  (149)  28 
    Other income —   (2,632)  (765)  (5,097)
    Total operating expenses 144,573   128,173   420,369   374,873 
    Operating income 22,154   20,612   86,523   75,591 
    Interest expense 3,539   3,414   10,381   12,994 
    Interest income (2,931)  (2,584)  (8,452)  (5,146)
    Equity in net (income) loss of unconsolidated affiliates (1,263)  (1,523)  (4,135)  29,394 
    Other income (191)  (5)  (627)  (159)
    Income before income taxes 23,000   21,310   89,356   38,508 
    Income tax expense 5,050   3,088   21,457   10,298 
    Net income$17,950  $18,222  $67,899  $28,210 
            
    Basic earnings per share$0.33  $0.33  $1.23  $0.51 
    Diluted earnings per share$0.25  $0.24  $0.89  $0.38 
            
    Weighted-average basic shares outstanding 54,898   55,367   55,022   55,776 
    Weighted-average diluted shares outstanding 83,008   86,825   84,309   79,559 
                    

    EZCORP, Inc.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)

    (in thousands, except share and per share amounts)June 30,
    2024    		 June 30,
    2023    		 September 30,
    2023
          
    Assets:     
    Current assets:     
    Cash and cash equivalents$218,038  $237,974  $220,595 
    Restricted cash 9,204   8,549   8,373 
    Pawn loans 261,720   229,379   245,766 
    Pawn service charges receivable, net 40,638   34,959   38,885 
    Inventory, net 171,937   154,944   166,477 
    Prepaid expenses and other current assets 40,391   44,925   39,623 
        Total current assets 741,928   710,730   719,719 
    Investments in unconsolidated affiliates 12,297   10,247   10,987 
    Other investments 51,220   39,220   36,220 
    Property and equipment, net 59,926   61,849   68,096 
    Right-of-use assets, net 235,030   243,100   234,388 
    Goodwill 308,847   302,120   302,372 
    Intangible assets, net 60,164   60,009   58,216 
    Deferred tax asset, net 25,245   19,610   25,702 
    Other assets, net 15,506   10,793   12,011 
    Total assets$1,510,163  $1,457,678  $1,467,711 
          
    Liabilities and equity:     
    Current liabilities:     
    Current maturities of long-term debt, net$137,326  $—  $34,265 
    Accounts payable, accrued expenses and other current liabilities 69,742   74,458  $81,605 
    Customer layaway deposits 20,067   18,595   18,920 
    Operating lease liabilities, current 58,905   56,919   57,182 
        Total current liabilities 286,040   149,972   191,972 
    Long-term debt, net 223,998   359,686   325,847 
    Deferred tax liability, net 416   349   435 
    Operating lease liabilities 188,996   197,499   193,187 
    Other long-term liabilities 9,258   11,130   10,502 
        Total liabilities 708,708   718,636   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 : 51,771,917 as of June 30, 2024; 52,214,761 as of June 30, 2023; and 51,869,569 as of September 30, 2023 518   522   519 
    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 347,082   344,857   346,181 
    Retained earnings 493,830   422,549   431,140 
    Accumulated other comprehensive loss (40,005)  (28,916)  (32,102)
        Total equity 801,455   739,042   745,768 
    Total liabilities and equity$1,510,163  $1,457,678  $1,467,711 


    EZCORP, Inc.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)

     Nine Months Ended
    June 30,
    (in thousands) 2024   2023 
      
    Operating activities:   
    Net income$67,899  $28,210 
    Adjustments to reconcile net income to net cash flows from operating activities:   
    Depreciation and amortization 24,942   23,977 
    Amortization of debt discount and deferred financing costs 1,212   1,135 
    Non-cash lease expense 43,999   41,752 
    Deferred income taxes 438   (7,489)
    Other adjustments 69   (4,894)
    Provision for inventory reserve 589   (160)
    Stock compensation expense 7,945   6,876 
    Equity in net (income) loss from investment in unconsolidated affiliates (4,135)  29,394 
    Net loss on extinguishment of debt —   3,545 
    Changes in operating assets and liabilities, net of business acquisitions:   
    Pawn service charges receivable (1,593)  (316)
    Inventory (2,775)  (5,501)
    Prepaid expenses, other current assets and other assets (3,625)  (2,750)
    Accounts payable, accrued expenses and other liabilities (65,396)  (53,018)
    Customer layaway deposits 1,055   1,036 
    Income taxes (360)  8,923 
    Dividends from unconsolidated affiliates —   3,589 
       Net cash provided by operating activities 70,264   74,309 
    Investing activities:   
    Loans made (683,121)  (592,689)
    Loans repaid 391,297   343,886 
    Recovery of pawn loan principal through sale of forfeited collateral 272,781   251,608 
    Capital expenditures, net (16,870)  (27,751)
    Acquisitions, net of cash acquired (11,963)  (12,968)
    Proceeds from (issuance of) notes receivable 1,100   (15,500)
    Investment in unconsolidated affiliate (993)  (2,133)
    Investment in other investments (15,000)  (15,000)
    Dividends from unconsolidated affiliates 3,535   — 
       Net cash used in investing activities (59,234)  (70,547)
    Financing activities:   
    Taxes paid related to net share settlement of equity awards (3,253)  (1,149)
    Proceeds from issuance of debt —   230,000 
    Debt issuance cost —   (7,458)
    Cash paid on extinguishment of debt —   (1,951)
    Payments on debt —   (178,488)
    Purchase and retirement of treasury stock (9,009)  (13,982)
    Payments of finance leases (386)  — 
       Net cash (used in) provided by financing activities (12,648)  26,972 
    Effect of exchange rate changes on cash and cash equivalents and restricted cash (108)  1,420 
    Net (decrease) increase in cash, cash equivalents and restricted cash (1,726)  32,154 
    Cash and cash equivalents and restricted cash at beginning of period 228,968   214,369 
    Cash and cash equivalents and restricted cash at end of period$227,242  $246,523 
        

    EZCORP, Inc.
    OPERATING SEGMENT RESULTS

     Three Months Ended June 30, 2024
    (Unaudited)
    (in thousands)U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated
                
    Revenues:           
    Merchandise sales$107,849  $50,291  $—  $158,140  $—  $158,140 
    Jewelry scrapping sales 13,757   1,638   —   15,395   —   15,395 
    Pawn service charges 77,416   30,414   —   107,830   —   107,830 
    Other revenues 28   28   —   56   —   56 
    Total revenues 199,050   82,371   —   281,421   —   281,421 
    Merchandise cost of goods sold 67,229   33,982   —   101,211   —   101,211 
    Jewelry scrapping cost of goods sold 11,887   1,596   —   13,483   —   13,483 
    Gross profit 119,934   46,793   —   166,727   —   166,727 
    Segment and corporate expenses (income):           
    Store expenses 81,441   34,894   —   116,335   —   116,335 
    General and administrative —   —   —   —   20,060   20,060 
    Depreciation and amortization 2,408   2,090   —   4,498   3,660   8,158 
    (Gain) loss on sale or disposal of assets and other (2)  22   —   20   —   20 
    Interest expense —   —   —   —   3,539   3,539 
    Interest income —   (370)  (605)  (975)  (1,956)  (2,931)
    Equity in net (income) loss of unconsolidated affiliates —   —   (1,406)  (1,406)  143   (1,263)
    Other (income) expense —   (184)  12   (172)  (19)  (191)
    Segment contribution$36,087  $10,341  $1,999  $48,427     
    Income (loss) before income taxes      $48,427  $(25,427) $23,000 

            

      
     Three Months Ended June 30, 2023
    (Unaudited)
    (in thousands)U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated
                
    Revenues:           
    Merchandise sales$102,177  $45,803  $—  $147,980  $—  $147,980 
    Jewelry scrapping sales 13,098   833   —   13,931   —   13,931 
    Pawn service charges 68,790   25,029   —   93,819   —   93,819 
    Other revenues 27   40   15   82   —   82 
    Total revenues 184,092   71,705   15   255,812   —   255,812 
    Merchandise cost of goods sold 62,799   32,270   —   95,069   —   95,069 
    Jewelry scrapping cost of goods sold 11,101   857   —   11,958   —   11,958 
    Gross profit 110,192   38,578   15   148,785   —   148,785 
    Segment and corporate expenses (income):           
    Store expenses 75,389   29,543   —   104,932   —   104,932 
    General and administrative —   —   —   —   17,876   17,876 
    Depreciation and amortization 2,505   2,303   —   4,808   3,218   8,026 
    Gain on sale or disposal of assets —   (29)  —   (29)  —   (29)
    Other income —   (2,632)  —   (2,632)  —   (2,632)
    Interest expense —   —   —   —   3,414   3,414 
    Interest income (1)  (256)  —   (257)  (2,327)  (2,584)
    Equity in net income of unconsolidated affiliates —   —   (1,523)  (1,523)  —   (1,523)
    Other (income) expense —   (65)  10   (55)  50   (5)
    Segment contribution$32,299  $9,714  $1,528  $43,541     
    Income (loss) before income taxes      $43,541  $(22,231) $21,310 
                


     Nine Months Ended June 30, 2024
    (Unaudited)
    (in thousands)U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated
                
    Revenues:           
    Merchandise sales$348,211  $154,019  $—  $502,230  $—  $502,230 
    Jewelry scrapping sales 39,258   3,933   —   43,191   —   43,191 
    Pawn service charges 236,499   84,943   —   321,442   —   321,442 
    Other revenues 94   59   35   188   —   188 
    Total revenues 624,062   242,954   35   867,051   —   867,051 
    Merchandise cost of goods sold 218,736   103,944   —   322,680   —   322,680 
    Jewelry scrapping cost of goods sold 33,965   3,514   —   37,479   —   37,479 
    Gross profit 371,361   135,496   35   506,892   —   506,892 
    Segment and corporate expenses (income):           
    Store expenses 239,536   101,936   —   341,472   —   341,472 
    General and administrative —   —   —   —   54,869   54,869 
    Depreciation and amortization 7,548   6,821   —   14,369   10,573   24,942 
    (Gain) loss on sale or disposal of assets and other (6)  (240)  —   (246)  97   (149)
    Other income —   —   —   —   (765)  (765)
    Interest expense —   —   —   —   10,381   10,381 
    Interest income —   (1,398)  (1,811)  (3,209)  (5,243)  (8,452)
    Equity in net (income) loss of unconsolidated affiliates —   —   (4,278)  (4,278)  143   (4,135)
    Other (income) expense —   (231)  27   (204)  (423)  (627)
    Segment contribution 124,283   28,608  $6,097  $158,988     
    Income (loss) before income taxes      $158,988  $(69,632) $89,356 


      
     Nine Months Ended June 30, 2023
    (Unaudited)
    (in thousands)U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated
                
    Revenues:           
    Merchandise sales$329,231  $135,043  $—  $464,274  $—  $464,274 
    Jewelry scrapping sales 30,088   4,552   —   34,640   —   34,640 
    Pawn service charges 208,045   71,397   —   279,442   —   279,442 
    Other revenues 84   75   47   206   —   206 
    Total revenues 567,448   211,067   47   778,562   —   778,562 
    Merchandise cost of goods sold 203,698   93,587   —   297,285   —   297,285 
    Jewelry scrapping cost of goods sold 25,867   4,946   —   30,813   —   30,813 
    Gross profit 337,883   112,534   47   450,464   —   450,464 
    Segment and corporate expenses (income):           
    Store expenses 220,639   86,365   —   307,004   —   307,004 
    General and administrative —   (3)  —   (3)  48,964   48,961 
    Depreciation and amortization 7,820   6,850   —   14,670   9,307   23,977 
    Loss (gain) on sale or disposal of assets 84   (56)  —   28   —   28 
    Other income —   (5,097)  —   (5,097)  —   (5,097)
    Interest expense —   —   —   —   12,994   12,994 
    Interest income (2)  (723)  —   (725)  (4,421)  (5,146)
    Equity in net loss of unconsolidated affiliates —   —   29,394   29,394   —   29,394 
    Other (income) expense —   (41)  20   (21)  (138)  (159)
    Segment contribution (loss)$109,342  $25,239  $(29,367) $105,214     
    Income (loss) before income taxes      $105,214  $(66,706) $38,508 

    EZCORP, Inc.
    STORE COUNT ACTIVITY
    (Unaudited)

     Three Months Ended June 30, 2024
     U.S. Pawn Latin America Pawn Consolidated
          
    As of March 31, 2024535 711 1,246
    New locations opened1 6 7
    Locations acquired5 — 5
    As of June 30, 2024541 717 1,258


     Three Months Ended June 30, 2023
     U.S. Pawn Latin America Pawn Consolidated
          
    As of March 31, 2023527 672 1,199
    New locations opened1 12 13
    As of June 30, 2023528 684 1,212


     Nine Months Ended June 30, 2024
     U.S. Pawn Latin America Pawn Consolidated
          
    As of September 30, 2023529  702  1,231 
    New locations opened1  20  21 
    Locations acquired12  —  12 
    Locations combined or closed(1) (5) (6)
    As of June 30, 2024541  717  1,258 


     Nine Months Ended June 30, 2023
     U.S. Pawn Latin America Pawn Consolidated
          
    As of September 30, 2022515 660  1,175 
    New locations opened3 25  28 
    Locations acquired10 —  10 
    Locations combined or closed— (1) (1)
    As of June 30, 2023528 684  1,212 


    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 reflect an additional way of viewing aspects of our business that, when viewed with GAAP results, provide 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 nine months ended June 30, 2024 and 2023 were as follows:

      June 30, Three Months Ended
    June 30,    		 Nine Months Ended
    June 30,
      2024 2023 2024 2023 2024 2023
                 
    Mexican peso 18.3 17.1 17.2 17.7 17.3 18.7
    Guatemalan quetzal 7.6 7.7 7.6 7.6 7.6 7.6
    Honduran lempira 24.3 24.4 24.3 24.3 24.3 24.3
    Australian dollar 1.5 1.5 1.5 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
    June 30,
    (in millions) 2024   2023 
        
    Net income$18.0  $18.2 
    Interest expense 3.5   3.4 
    Interest income (2.9)  (2.6)
    Income tax expense 5.0   3.1 
    Depreciation and amortization 8.2   8.0 
    EBITDA$31.8  $30.2 


     Total Revenues Gross Profit Income Before Tax Tax Effect Net Income Diluted EPS  EBITDA
                  
    2024 Q3 Reported$281.4  $166.7  $23.0  $5.0 $18.0  $0.25  $31.8 
    Impact of dilutive instruments* —   —   —   —  —   (0.01)  — 
    FX Impact —   —   0.1   —  —   —   0.1 
    Constant Currency and other impact (1.6)  (0.9)  (0.3)  0.8  (1.0)  (0.01)  (0.3)
    2024 Q3 Adjusted$279.8  $165.8  $22.8  $5.8 $17.0  $0.23  $31.6 


     Total Revenues Gross Profit Income Before Tax Tax Effect Net Income Diluted EPS  EBITDA
                  
    2023 Q3 Reported$255.8 $148.8 $21.3  $3.1  $18.2  $0.24  $30.2 
    Contingent consideration acquisition transaction —  —  (2.6)  (0.5)  (2.1)  (0.02)  (2.6)
    Tax Impact —  —  —   1.2   (1.2)  (0.02)  — 
    2023 Q3 Adjusted$255.8 $148.8 $18.7  $3.8  $14.9  $0.20  $27.6 


     Three Months Ended
    June 30, 2024    		 Nine Months Ended
    June 30, 2024
    (in millions)U.S. Dollar Amount Percentage Change YOY U.S. Dollar Amount Percentage Change YOY
            
    Consolidated revenues$281.4  10% $867.1  11%
    Currency exchange rate fluctuations (1.6)    (14.2)  
    Constant currency consolidated revenues$279.8  9% $852.8  10%
            
    Consolidated gross profit$166.7  12% $506.9  13%
    Currency exchange rate fluctuations (0.9)    (7.7)  
    Constant currency consolidated gross profit$165.8  11% $499.2  11%
            
    Consolidated net inventory$171.9  11% $171.9  11%
    Currency exchange rate fluctuations 2.7     2.7   
    Constant currency consolidated net inventory$174.6  13% $174.6  13%
            
    Latin America Pawn gross profit$46.8  21% $135.5  20%
    Currency exchange rate fluctuations (0.9)    (7.7)  
    Constant currency Latin America Pawn gross profit$45.9  19% $127.8  14%
            
    Latin America Pawn PLO$62.4  24% $62.4  24%
    Currency exchange rate fluctuations 3.0     3.0   
    Constant currency Latin America Pawn PLO$65.4  30% $65.4  30%
            
    Latin America Pawn PSC revenues$30.4  22% $84.9  19%
    Currency exchange rate fluctuations (0.6)    (4.5)  
    Constant currency Latin America Pawn PSC revenues$29.8  19% $80.4  13%
            
    Latin America Pawn merchandise sales$50.3  10% $154.0  14%
    Currency exchange rate fluctuations (1.0)    (9.5)  
    Constant currency Latin America Pawn merchandise sales$49.3  8% $144.5  7%
            
    Latin America Pawn segment profit before tax$10.3  6% $28.6  13%
    Currency exchange rate fluctuations (0.1)    (1.1)  
    Constant currency Latin America Pawn segment profit before tax$10.2  5% $27.5  9%

                                             


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