EZCORP : Q2 2025 Earnings Deck

Published: 2025-04-29 01:18:08 ET EZPW

SECOND QUARTER FISCAL 2025 EARNINGS

APRIL 2025

FORWARD LOOKING STATEMENTS

This presentation contains certain forward-looking statements. 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, that address activities or results that the company plans, expects, believes, projects, estimates or anticipates will, should or may occur in the future 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 and current or future litigation.

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.

ADJUSTED INFORMATION

Unless otherwise specified, all amounts in this presentation reflect certain non-GAAP adjustments for various discrete items and constant currency. FY25 results are presented in constant currency using FY24 rates. Prior years use actual foreign exchange rates. For a discussion of the comparable GAAP amounts, see "EZCORP GAAP Results" and "GAAP to Non-GAAP Reconciliation" in the Appendix.

NASDAQ: EZPW

OTHER AVAILABLE INFORMATION

This information should be read in conjunction with, and not in lieu of, the company's annual, quarterly and other reports filed with the Securities and Exchange Commission. Those reports contain important information about the company's business and performance, including financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), as well as a description of the important risk factors that may materially and adversely affect our business, financial condition or results of operations.

COMPARISONS

All comparisons in this presentation are relative to the same period in the prior year unless otherwise stated. In addition, percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages when calculated from numbers in millions.

All market comparisons are based on available information from similar publicly traded companies.

DEFINED TERMS

See Appendix for definition of terms and acronyms used in this presentation.

NASDAQ: EZPW

LEADER IN PAWN AND PRE-OWNED AND RECYCLED RETAIL

1,284 STORES AND 8,200 TEAM MEMBERS

Formed in 1989, EZCORP has grown into a leading provider of pawn transactions and seller of pre-owned and recycled merchandise in the United States and Latin America.

We increase reach and access to financial services through a broad network of neighborhood retail locations, and promote the circular economy by recycling pre-owned merchandise and jewelry.

We are dedicated to building shareholder value by satisfying the short-term cash needs of our customers, focusing on an industry-leading experience that is fueled by continuous innovation.

PAWN PRODUCT

Pawn Loans are customer friendly

Non-recourse loans

No credit check, bank account or employment verification required

No collection activity or reporting to credit bureaus

Pawn Loans are small and short term*

U.S.: $170 to $200 pawn; 30 to 90 day term

Mexico: $65 to $85 pawn; 30 day term

GPMX: $120 to $140 pawn; 30 day term

U.S. 542 MEXICO 559 GUATEMALA 141 EL SALVADOR 19 HONDURAS 23

GUATEMALA

U.S.

EL SALVADOR

MEXICO

HONDURAS

Footnote * Cost based on averages discussed in our Annual Report on Form 10-K for the year ended September 30, 2024.

($ millions, except for store count)

STORE COUNT

EARNING ASSETS

CASH BALANCE (GAAP)

1,231

1,279

1,284

1,148

1,175

1,005

$433.6

$408.2 $399.2

$466.0 $490.8 $488.4

$505.2

$235.8

$243.3

$261.7

$271.8

$274.1

$282.9

$163.4

$164.9

$171.9

$191.9

$216.5

$207.9

FY20 FY21 FY22 FY23 FY24 Q2 FY25

Opened 9 de novo stores in LatAm, comprised of 4 stores in Guatemala, 2 stores in Mexico, 2 in Honduras and 1 in El Salvador

Acquired one store in Guatemala

Consolidated 9 stores in Mexico

Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25

$218.5

$229.1

$218.0

$170.5 $174.5

Record-setting Q2 PLO balance of $271.8M, up 15%, leading to a 12% increase in PSC

PLO/Inventory ratio remains healthy at 1.3x

Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25

$505.2M cash balance, up from $174.5 in Q1 FY25, primarily due to the $300M debt financing (less issuance costs) and cash from operating activities

Purchased $1.0M of shares in Q2

Source: Current year earning assets figures adjusted for constant currency. See Appendix for reconciliations.

($ millions, except per share amounts)

TOTAL REVENUES

$255.8

$281.4

$270.5

$294.6

$300.0

$329.7

$285.6

$318.9

Q3 FY23 Q3 FY24

Q4 FY23 Q4 FY24

Q1 FY24 Q1 FY25

Q2 FY24 Q2 FY25

PLO

$261.7

$229.4

$245.8

$274.1

$282.9

$243.3

$271.8

$235.8

Q3 FY23 Q3 FY24

Q4 FY23 Q4 FY24

Q1 FY24 Q1 FY25

Q2 FY24 Q2 FY25

Total revenues of $318.9M, up 12%, driven by higher PSC and sales

Merchandise sales of $177.4M, up 8%; same-store sales, up 6%

Gross profit of $185.0M, up 10%, primarily driven by PSC

Strong consumer demand, increase in average loan size and improved customer service continue to propel PLO, resulting in a Q2 record balance of

$271.8M, up 15%

PSC of $119.8M, up 12%

EBITDA

$47.2 $53.0

$27.6

$31.7

$31.9

$36.0

$36.7

$45.1

Q3 FY23 Q3 FY24

Q4 FY23 Q4 FY24

Q1 FY24 Q1 FY25

Q2 FY24 Q2 FY25

DILUTED EPS

$0.36

$0.42

$0.34

$0.20

$0.24

$0.23

$0.25

$0.28

Q3 FY23 Q3 FY24

Q4 FY23 Q4 FY24

Q1 FY24 Q1 FY25

Q2 FY24 Q2 FY25

EBITDA of $45.1M, up 23%

EBITDA margin of 14.1%, up 130 bps

Diluted EPS of $0.34, up 21%

Source: All figures adjusted for discrete items and current year figures adjusted for constant currency. See Appendix for reconciliations. 5

($ millions)

TOTAL REVENUES

$255.8 $281.4 $270.5

$294.6 $300.0 $329.7

GROSS PROFIT

$148.8

$54.7

$166.7

$58.9

$159.4

$55.2

$175.4

$60.3

$172.6

$66.1

$190.2

$70.4

$167.6

$60.4

$185.0

$65.2

$94.1

$107.8

$104.2

$115.1

$106.4

$119.9

$107.2

$119.8

Q3 FY23 Q3 FY24 Q4 FY23 Q4 FY24 Q1 FY24 Q1 FY25 Q2 FY24 Q2 FY25

$285.6 $318.9

$161.7 $173.6 $166.3 $179.4 $193.5 $209.8

$94.1 $107.8 $104.2 $115.1 $106.4 $119.9

Q3 FY23 Q3 FY24 Q4 FY23 Q4 FY24 Q1 FY24 Q1 FY25

$178.5 $199.1

$107.2 $119.8

Q2 FY24 Q2 FY25

PSC growth in line with merchandise sales and scrap revenues growth, driving total revenues growth of 12%

58%

59%

60%

58%

59%

58%

Q3 FY23

Q3 FY24

Q4 FY23

Q4 FY24

Q1 FY24

Q1 FY25

Q2 FY24

Q2 FY25

Merchandise sales and scrap revenues strong growth compared to prior periods

PSC continues to outpace the growth of merchandise sales and scrap gross profit, driving gross profit growth of 10%

TOTAL REVENUES BY GEOGRAPHY

GROSS PROFIT BY GEOGRAPHY

31%

69%

28%

72%

U.S. Pawn represents

69% of revenues, down by 324 bps

US Pawn

Gross profit margin remains strong at 58%

72% of gross profit, down by 187 bps

Source: All figures adjusted for discrete items and current year figures adjusted for constant currency. See Appendix for reconciliations. 6

Footnote * Totals are calculated from the underlying numbers in thousands and, as a result, may not foot due to rounding.

Progression towards our Strategic Goals

S T R E N G T H E N T H E C O R E

Continued loan growth reflects increased average loan size, operational improvements and strong customer loan demand

Grew LatAm gross profit by 18% through ongoing focus on customer service and growing the jewelry category

In July 2024, we introduced longer term layaways in the U.S., resulting in a 15% increase in new layaways made during the quarter

Grew EZ+ Rewards members to 6.2M globally, up 34%

Increased transacting customers by 5%, with transacting EZ+ members up 6%, comprising 77% of total

Increased visits to websites to 1.7M, up 5%, enabled by non-paid search engine visitation

Maintained exemplary customer service, as evidenced by Google Review rating of 4.8+ (out of 5) across all geographies

Launched certification programs for U.S. Assistant Managers and LatAm Lead Pawnbroker to grow internal talent and strengthen operations support

Integrated our ERP with a global job search engine and hiring platform to streamline application process and significantly increase applicant flow

Enhanced team member communications, including introducing a monthly leaderboard to motivate performance

Drove growth mindset shift by delivering monthly video messages and facilitating in-store activities

Opened 9 de novo stores and acquired 1 store in LatAm

Collected $29M in U.S. online payments, up $7M

Increased EZ+ app adoption in Mexico with 17% of extensions and layaways payments now online

Grew Max Pawn luxury e-commerce sales by 25%, capturing demand for affordable luxury, driven by eBay sales. Launched new campaign 'We Know Real' to promote efforts to test for authenticity.

Expanded view-online, purchase-in-store experience to over 30% of US stores

($ millions)

Pawn Loans Outstanding

Inventory

Merchandise Margin

$235.8

$271.8

$163.4

$216.5

34.0%

35.5%

Q2 FY24 Q2 FY25

PLO up 15% on a total and same-store basis, driven by increase in average loan size, improved operational performance and continued strong pawn demand

Q2 FY24 Q2 FY25

Inventory increased 32%, due to increase in PLO and decrease in inventory turnover to 2.5x, from 2.9x

Aged GM increased to 2.4% ($2.0M) of total GM inventory, 1.7% excluding our 3 luxury stores

Q2 FY24 Q2 FY25

Merchandise sales gross profit up 3%, driven by increased sales

Margin decreased by 150 bps, due to increased price negotiations

Pawn Service Charges

Merchandise Sales

EBITDA

$119.8

$107.2

$213.6 $239.6

$344.1 $370.3

$83.9 $98.1

$177.4

$164.7

FY24 FY25

PSC up 12%, primarily driven by same-store PLO growth

FY24 FY25

Merchandise sales up 8%, 6% on a same-store basis

FY24 FY25

$36.7

$45.1

EBITDA improved $8.4M, up 23%, driven by higher PSC, partially offset by a 6% increase in expenses

EBITDA margin up 130 bps to 14.1% 9

($ millions)

Revenues

$221.4

$207.6

$425.0 $453.6

FY24 FY25

Total revenues increased $13.8M or 7%

Earning Assets

$173.7

$121.9

$295.6

$356.2

$156.8

Inventory

$199.4

Q2 FY24 Q2 FY25

Earning assets increased 21%, driven by PLO increase of 15% and inventory increase of 29%

Approximately half of the increase in inventory is 10

attributable to the increase in layaways

542 stores in 19 states

Store Count

Average Loan Size (GAAP)

516

515

$170

$185

$207

$142 $159

529 542 542

OR 5

MN 8

WI 3

PA 1

NV 29

IA 11

UT 9

CO 31

IL 20

IN 15

TN 14

AZ 19

OK 21

AR 1

MS 1

AL 5

GA 8

TX 247

FL 94

FY21 FY22 FY23 FY24 Q2 FY25

No changes in the quarter

FY21 FY22 FY23 FY24 Q2 FY25

Average loan size up 15%, primarily driven by higher prices on jewelry and GM

PLO Composition (GAAP)

Inventory Composition (GAAP)

32%

35%

68%

65%

EZCORP corporate headquarters located in Austin, Texas

Jewelry composition up 100 bps, due to increased jewelry volume and higher gold price

Jewelry composition up 120 bps, in line with PLO growth

($ millions)

Pawn Loans Outstanding

Inventory

Merchandise Margin

$173.7

$199.4

$121.9

$156.8

36.0%

36.6%

Q2 FY24 Q2 FY25

PLO up 15% on a total and same-store basis, driven by increase in average loan size, improved operational performance and continued strong pawn demand

Q2 FY24 Q2 FY25

Inventory up 29%, when excluding increase due to customer layaways, in line with the PLO increase

Inventory turnover decreased to 2.3x from 2.6x

Aged GM decreased to 2.8% ($1.3M) of total GM inventory, 1.5% excluding our 3 luxury stores

Q2 FY24 Q2 FY25

Merchandise sales gross profit is flat, driven by increased sales, offset by a decrease in merchandise margin of 58 bps

Pawn Service Charges

Merchandise Sales

EBITDA

$87.5

$80.0

$159.1 $175.4

$240.4 $245.7

$93.3 $105.4

$116.9

$114.8

$49.8

$43.2

FY24 FY25

PSC up 9%, primarily driven by same-store PLO growth, partially offset by lower PLO yield

FY24 FY25

Merchandise sales up 2%, 1% on a same-store basis

FY24 FY25

EBITDA up $6.7M or 15%, primarily due to higher PSC, offset by 3% increase in expenses

Same-store expenses up 2%, primarily due to labor, offset by a decrease in loyalty program expenses

EBITDA margin 22.5%, up 173 bps 12

($ millions)

Revenues

$78.0

$97.5

$160.6

$194.9

FY24 FY25

Total revenues increased $19.4M or 25%

Earning Assets

$62.0

$41.6

$103.6

$132.1

$72.4

$59.7

Q2 FY24 Q2 FY25

Earning assets increased 28%, driven by PLO up 17% and inventory up 44%

Prior year inventory balances were at a historically low level

All figures adjusted for discrete items and constant currency. See Appendix for reconciliations. 13

742 stores in 4 countries

Store Count

Average Loan Size (GAAP)

702

737

742

632

660

$77

$78

$84

$92

$87

Mexico 559

FY21 FY22 FY23 FY24 Q2 FY25

Opened 9 de novo stores in LatAm

Acquired 1 store in Guatemala

Consolidated 9 stores in Mexico

FY21 FY22 FY23 FY24 Q2 FY25

Average loan size down 9% (up 4% on a constant currency basis)

PLO Composition (GAAP)

Inventory Composition (GAAP)

Honduras 23

El Salvador 19

Guatemala 141

61%

39%

66%

34%

Jewelry composition up 400 bps, with an operational focus on growing this category, especially in Mexico

Jewelry composition down 90 bps due to increased jewelry scrapping

($ millions)

Pawn Loans Outstanding

Inventory

Merchandise Margin

$62.0

$72.4

$41.6

$59.7

Q2 FY24 Q2 FY25

PLO up 17%, 14% on a same-store basis, driven by improved operational performance and increased loan demand

Q2 FY24 Q2 FY25

Inventory up 44%, driven by faster loan than merchandise sales growth

Inventory turnover decreased to 3.2x from 3.6x

Pawn Service Charges

Merchandise Sales

Aged GM increased to 1.9% ($0.6M) of total GM inventory

30.1%

32.9%

Q2 FY24 Q2 FY25

Merchandise sales gross profit up 11%, driven by increased sales, up 21%, offset by decrease in margin of 274 bps, due to increased price negotiations

EBITDA

$64.2

$27.2

$32.2

$54.5

$124.6

$49.8

$60.5

$103.7

$28.2

$10.0

$13.6

$22.2

FY24 FY25

PSC up 19%, driven by same-store PLO growth • Merchandise sales up 21%, 18% on a same-store

basis

EBITDA up $3.6M or 36%, primarily driven by higher PSC, offset by increased expenses of 13%

Same-store expenses up 11%, primarily due to increased labor, offset by a decrease in expenses related to our loyalty program 15

EBITDA margin 13.9%, up 99 bps

Q2 & YTD GAAP Results

($ millions, except per share amounts)

FY25

FY24

%△ B/(W)

YTD

FY25

FY24

%△ B/(W)

Q2 gross profit improved, primarily due to higher PSC, driven by higher average PLO

Pawn Loans Outstanding

$ 261.8

$ 235.8

11%

$ 261.8

$ 235.8

11%

Total Revenues

306.3

285.6

626.5

585.6

Gross Profit

$ 178.5

$ 167.6

$ 363.9

$ 340.2

Equity in Net Income of Investments

(1.5)

(1.7)

(12)%

(3.0)

(2.9)

Q2 store expenses increased, primarily due to new stores and labor costs (including higher health benefits) supporting more store activity, offset by a decrease in expenses related to our loyalty program

Store Expenses

116.5

114.6

(2)%

233.0

225.1

(3)%

General and Administrative Expenses

19.6

18.3

(8)%

38.3

34.8

(10)%

Other (Income)/Expense

(0.9)

(95)%

0.9

(1.4)

(168)%

EBITDA

$ 43.8

$ 37.4

17%

$ 94.6

$ 84.5

12%

Q2 G&A expenses increased, primarily due to labor

Q2 lower interest income, primarily due to

Depreciation/Amortization

8.0

8.2

16.4

16.8

Interest Expense, Net

1.4

0.5

(171)%

2.5

1.3

(86)%

Profit Before Tax

$ 34.4

$ 28.7

20%

$ 75.8

$ 66.4

14%

Income Tax Expense

9.0

7.2

(26)%

19.4

16.4

(18)%

Net Income

$ 25.4

$ 21.5

18%

$ 56.4

$ 49.9

13%

Diluted EPS

$ 0.33

$ 0.29

14%

$ 0.74

$ 0.65

14%

Footnote * Includes immaterial presentation reclassifications. Numbers may not foot or cross foot due to rounding

Q2 & YTD Adjusted Results

Q2 lower interest income, primarily due to lower market interest rates and lower cash balance

Q2 G&A expenses increased, primarily due to labor

Q2 gross profit improved, primarily due to higher PSC, driven by higher average PLO

Q2 %△

FY25 FY24 B/(W)

YTD

FY25 FY24

%△ B/(W)

$ 271.8

$ 235.8

15%

648.5

585.6

11%

$ 375.2

$ 340.2

10%

(3.0)

(2.9)

241.8

225.1

(7)%

38.4

34.8

(10)%

(0.1)

(0.8)

(91)%

$ 98.1

$ 83.9

17%

16.9

16.8

(1)%

2.4

1.3

(83)%

$ 78.8

$ 65.8

20%

20.1

16.2

(24)%

$ 58.7

$ 49.6

18%

($ millions, except per share amounts)

Pawn Loans Outstanding

$ 271.8

$ 235.8

15%

Total Revenues

318.9

285.6

12%

Gross Profit

$ 185.0

$ 167.6

10%

Equity in Net Income of Investments

(1.5)

(1.7)

(12)%

Store Expenses

121.7

114.6

(6)%

General and Administrative Expenses

19.7

18.3

(8)%

Other Income

(0.2)

(106)%

EBITDA

$ 45.1

$ 36.7

23%

Depreciation/Amortization

8.3

8.2

(1)%

Interest Expense, Net

1.4

0.5

(164)%

Profit Before Tax

$ 35.4

$ 28.0

27%

Income Tax Expense

9.3

7.0

(33)%

Net Income

$ 26.1

$ 21.0

25%

Diluted EPS

$ 0.34

$ 0.28

21%

$ 0.76

$ 0.64

19%

See "EZCORP GAAP Results" and "GAAP to Non-GAAP Reconciliation."

Footnote * Includes immaterial presentation reclassifications. Numbers may not foot or cross foot due to rounding

BPS

Basis points

CCV

Cash Converters International Limited, a publicly-traded company based in Australia, in which EZCORP holds a minority interest

ESG

Environmental, Social and Governance

General merchandise (non-jewelry)

GPMX

Guatemala, El Salvador and Honduras

LatAm

Latin America, including Mexico, Central America and South America

LTM

Last Twelve Months

Millions

Net Debt

Par value of debt less cash and cash equivalents

PLO

Pawn loans outstanding

POS2

Second generation point-of-sale system

PSC

Pawn service charges

Same-Store

Stores open the entirety of the comparable periods

In addition to the financial information prepared in conformity with U.S. generally accepted accounting principles ("GAAP"), we provide certain other financial information that is adjusted to exclude the impact of restructuring and restatement charges and other discrete items and to reflect the results of our Latin America Pawn operations on a constant currency basis. We believe that presentation of the non-GAAP financial information is meaningful and useful in evaluating and comparing our operating results across accounting periods and understanding the operating and financial performance of our business. We believe that the non-GAAP financial information reflects an additional way of viewing aspects of our business that, when viewed with our 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.

You should consider the non-GAAP information in addition to, but not instead of or superior to, our results prepared in accordance with GAAP. Non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of that information for comparative purposes.

Base

Item Adjustments

Adjusted Base

FY25

Constant Currency Impact

FY25

Adjusted Constant Currency

FY25

Base FY24

Item Adjustments FY24

Adjusted Base FY24

$ 285.6

$ -

$ 285.6

107.2

58.4

36 %

- %

36 %

1.9

14 %

- %

14 %

$ 167.6

$ -

$ 167.6

114.6

18.3

(2.6)

0.7

(B)

(2.0)

$ 37.4

$ (0.7)

$ 36.7

8.2

$ 29.2

$ (0.7)

$ 28.5

0.5

$ 28.7

$ (0.7)

$ 28.0

7.2

(0.2)

(C)

7.0

$ 21.5

$ (0.5)

$ 21.0

$ 0.29

$ (0.01)

$ 0.28

83.0

235.8

163.4

$ 399.2

$ -

$ 399.2

($ millions, except per share amounts)

Revenues

$ 306.3

$ -

$ 306.3

$ 12.5

$ 318.9

PSC Revenues

115.9

3.9

119.8

Merchandise Gross Profit

57.9

2.5

60.4

Merchandise Margin

34 %

- %

34 %

- %

34 %

Scrap Gross Profit

4.6

0.2

4.8

Scrap Gross Margin

22 %

- %

22 %

- %

22 %

Gross Profit

$ 178.5

$ -

$ 178.5

$ 6.5

$ 185.0

Store Expenses

116.5

5.1

121.7

General and Administrative Expenses

19.6

0.1

19.7

Other Income

(1.6)

0.1

(A)

(1.5)

EBITDA

$ 43.8

$ (0.1)

$ 43.8

$ 1.3

$ 45.1

Depreciation and Amortization

8.0

0.3

8.3

EBIT

$ 35.8

$ (0.1)

$ 35.7

$ 1.0

$ 36.8

Interest Expense, net

1.4

Profit Before Tax

$ 34.4

$ (0.1)

$ 34.3

$ 1.1

$ 35.4

Income Tax Expense

9.0

0.2

9.3

Net Income

$ 25.4

$ (0.1)

$ 25.3

$ 0.8

$ 26.1

Diluted EPS

$ 0.33

$ -

$ 0.33

$ 0.01

$ 0.34

Diluted Shares Outstanding

83.1

Pawn Loans Outstanding

261.8

10.0

271.8

Inventory, Net

207.8

8.8

216.5

Net Earning Assets

$ 469.6

$ -

$ 469.6

$ 18.8

$ 488.4

FY25 Change (GAAP)

FY25 Change (Constant Currency)

Same-store data:

PLO

11%

15%

Merchandise Sales

Footnote * Includes immaterial presentation reclassifications. Numbers may not foot or cross foot due to rounding Footnote (A) Amount includes $0.1 million FX gain

Footnote (B) Amount includes a gain of $0.8 million Corporate lease termination and a $0.1 million FX loss Footnote (C) Amount includes FY25 tax impact of the items listed above

Base

Item Adjustments

Adjusted Base

Constant Currency Impact

FY25

Adjusted Constant Currency

FY25

($ millions)

Revenues

$ 221.4

$ -

$ 221.4

$ -

$ 221.4

PSC Revenues

87.5

Merchandise Gross Profit

42.1

Merchandise Margin

36 %

- %

36 %

- %

36 %

Scrap Gross Profit

3.7

Scrap Gross Margin

22 %

- %

22 %

- %

22 %

Gross Profit

$ 133.4

$ -

$ 133.4

$ -

$ 133.4

Store Expenses

83.5

EBITDA

$ 49.8

$ -

$ 49.8

$ -

$ 49.8

Depreciation and Amortization

2.7

EBIT

$ 47.1

$ -

$ 47.1

$ -

$ 47.1

Profit Before Tax

$ 47.1

$ -

$ 47.1

$ -

$ 47.1

Pawn Loans Outstanding

199.4

Inventory, Net

156.8

Net Earning Assets

$ 356.2

$ -

$ 356.2

$ -

$ 356.2

Base FY24

Item Adjustments FY24

Adjusted Base FY24

$ 207.6

$ -

$ 207.6

80.0

42.1

37 %

- %

37 %

1.9

15 %

- %

15 %

$ 124.0

$ -

$ 124.0

80.8

$ 43.2

$ -

$ 43.2

2.5

$ 40.7

$ -

$ 40.7

$ -

$ 40.7

173.7

121.9

$ 295.6

$ -

$ 295.6

Footnote * Includes immaterial presentation reclassifications. Numbers may not foot or cross foot due to rounding 22

Base

Item Adjustments

Adjusted Base

Constant Currency Impact

FY25

Adjusted Constant Currency

FY25

($ millions)

Same-store data:

PLO

(2)%

14%

Merchandise Sales

18%

Base FY24

Item Adjustments FY24

Adjusted Base FY24

$ 78.0

$ -

$ 78.0

27.2

16.4

33 %

- %

33 %

3 %

- %

3 %

$ 43.6

$ -

$ 43.6

33.7

(0.1)

(B)

(0.1)

$ 9.9

$ 0.1

$ 10.0

2.4

$ 7.5

$ 0.1

$ 7.6

(0.6)

$ 8.1

$ 0.1

$ 8.2

62.0

41.6

$ 103.6

$ -

$ 103.6

FY25 Change (GAAP)

FY25 Change (Constant Currency)

Revenues

$ 84.9

$ -

$ 84.9

$ 12.5

$ 97.5

PSC Revenues

28.3

3.9

32.2

Merchandise Gross Profit

15.8

2.5

18.2

Merchandise Margin

30 %

- %

30 %

- %

30 %

Scrap Gross Profit

1.0

0.2

1.1

Scrap Gross Margin

24 %

- %

24 %

- %

24 %

Gross Profit

$ 45.1

$ -

$ 45.1

$ 6.5

$ 51.6

Store Expenses

33.0

5.1

38.1

Other (Income) Expense

(0.1)

0.1

(A)

(0.1)

EBITDA

$ 12.2

$ (0.1)

$ 12.2

$ 1.4

$ 13.6

Depreciation and Amortization

2.0

0.3

2.3

EBIT

$ 10.2

$ (0.1)

$ 10.2

$ 1.1

$ 11.3

Interest Income, net

(0.3)

(0.4)

Profit Before Tax

$ 10.6

$ (0.1)

$ 10.5

$ 1.1

$ 11.6

Pawn Loans Outstanding

62.4

10.0

72.4

Inventory, Net

51.0

8.8

59.7

Net Earning Assets

$ 113.4

$ -

$ 113.4

$ 18.8

$ 132.1

Footnote * Includes immaterial presentation reclassifications. Numbers may not foot or cross foot due to rounding Footnote (A) Amount includes $0.1 million FX gain

Footnote (B) Amount includes $0.1 million FX loss

($ millions, except per share amounts)

Base FY25

Item Adjustments FY25

Adjusted Base FY25

Constant Currency Impact

FY25

Adjusted Constant Currency

FY25

Revenues

$ 626.5

$ -

$ 626.5

$ 22.0

$ 648.5

PSC Revenues

232.9

6.7

239.6

Merchandise Gross Profit

122.4

4.4

126.9

Merchandise Margin

34 %

- %

34 %

- %

34 %

Scrap Gross Profit

8.4

0.2

8.6

Scrap Gross Margin

22 %

- %

22 %

- %

22 %

Gross Profit

$ 363.9

$ -

$ 363.9

$ 11.3

$ 375.2

Store Expenses

233.0

8.8

241.8

General and Administrative Expenses

38.3

38.4

Other (Income) Loss

(2.0)

(1.0)

(A)

(3.0)

(3.1)

EBITDA

$ 94.6

$ 1.0

$ 95.6

$ 2.5

$ 98.1

Depreciation and Amortization

16.4

0.5

16.9

EBIT

$ 78.3

$ 1.0

$ 79.2

$ 2.0

$ 81.2

Interest Expense (Income)

2.5

2.4

Profit (Loss) Before Tax

$ 75.8

$ 1.0

$ 76.8

$ 2.0

$ 78.8

Income Tax Expense (Benefit)

19.4

0.2

(B)

19.6

0.5

20.1

Net Income (Loss)

$ 56.4

$ 0.7

$ 57.1

$ 1.6

$ 58.7

Diluted EPS

$ 0.74

$ -

$ 0.74

$ 0.02

$ 0.76

Diluted Shares Outstanding

83.2

Pawn Loans Outstanding

261.8

10.0

271.8

Inventory, Net

207.8

8.8

216.5

Net Earning Assets

$ 469.6

$ -

$ 469.6

$ 18.8

$ 488.4

Base FY24

Item Adjustments FY24

Adjusted Base FY24

$ 585.6

$ -

$ 585.6

213.6

122.6

36 %

- %

36 %

3.8

14 %

- %

14 %

$ 340.2

$ -

$ 340.2

225.1

34.8

(4.2)

0.6

(C)

(3.7)

$ 84.5

$ (0.6)

$ 83.9

16.8

$ 67.7

$ (0.6)

$ 67.1

1.3

$ 66.4

$ (0.6)

$ 65.8

16.4

(0.2)

(D)

16.2

$ 49.9

$ (0.3)

$ 49.6

$ 0.65

$ (0.01)

$ 0.64

84.9

235.8

163.4

$ 399.2

$ -

$ 399.2

FY25 Change (GAAP)

FY25 Change (Constant Currency)

Same-store data:

PLO

11%

15%

Merchandise Sales

Footnote * Includes immaterial presentation reclassifications. Numbers may not foot or cross foot due to rounding Footnote (A) Amount includes $1.0 million FX loss

Footnote (B) Amount includes FY25 tax impact of the items listed above

Footnote (C) Amount includes a gain of $0.8 million Corporate lease termination and a $0.2 million FX loss

Footnote (D) Amount includes FY24 tax impact of the items listed above 24

Base

Item Adjustments

Adjusted Base

Constant Currency Impact

FY25

Adjusted Constant Currency

FY25

($ millions)

Revenues

$ 453.6

$ -

$ 453.6

$ -

$ 453.6

PSC Revenues

175.4

Merchandise Gross Profit

89.4

Merchandise Margin

36 %

- %

36 %

- %

36 %

Scrap Gross Profit

7.2

Scrap Gross Margin

22 %

- %

22 %

- %

22 %

Gross Profit

$ 272.1

$ -

$ 272.1

$ -

$ 272.1

Store Expenses

166.6

EBITDA

$ 105.4

$ -

$ 105.4

$ -

$ 105.4

Depreciation and Amortization

5.4

EBIT

$ 100.0

$ -

$ 100.0

$ -

$ 100.0

Profit Before Tax

$ 100.0

$ -

$ 100.0

$ -

$ 100.0

Pawn Loans Outstanding

199.4

Inventory, Net

156.8

Net Earning Assets

$ 356.2

$ -

$ 356.2

$ -

$ 356.2

Base FY24

Item Adjustments FY24

Adjusted Base FY24

$ 425.0

$ -

$ 425.0

159.1

88.9

37 %

- %

37 %

3.4

13 %

- %

13 %

$ 251.4

$ -

$ 251.4

158.1

$ 93.3

$ -

$ 93.3

5.1

$ 88.2

$ -

$ 88.2

$ -

$ 88.2

173.7

121.9

$ 295.6

$ -

$ 295.6

Footnote * Includes immaterial presentation reclassifications. Numbers may not foot or cross foot due to rounding 25

Base

Item Adjustments

Adjusted Base

Constant Currency Impact

FY25

Adjusted Constant Currency

FY25

($ millions)

Same-store data:

PLO

(2)%

14%

Merchandise Sales

17%

Base FY24

Item Adjustments FY24

Adjusted Base FY24

$ 160.6

$ -

$ 160.6

54.5

33.8

33 %

- %

33 %

0.4

17 %

- %

17 %

$ 88.7

$ -

$ 88.7

67.0

(0.3)

(0.2)

(B)

(0.5)

$ 22.0

$ 0.2

$ 22.2

4.7

$ 17.2

$ 0.2

$ 17.3

(1.0)

$ 18.3

$ 0.2

$ 18.5

62.0

41.6

$ 103.6

$ -

$ 103.6

FY25 Change (GAAP)

FY25 Change (Constant Currency)

Revenues

$ 172.9

$ -

$ 172.9

$ 22.0

$ 194.9

PSC Revenues

57.5

6.7

64.2

Merchandise Gross Profit

33.0

4.4

37.5

Merchandise Margin

30 %

- %

30 %

- %

30 %

Scrap Gross Profit

1.2

0.2

1.4

Scrap Gross Margin

23 %

- %

23 %

1 %

24 %

Gross Profit

$ 91.8

$ -

$ 91.8

$ 11.3

$ 103.1

Store Expenses

66.4

8.8

75.2

Other (Income) Expense

(0.2)

0.1

(A)

(0.1)

(0.2)

EBITDA

$ 25.7

$ (0.1)

$ 25.6

$ 2.6

$ 28.2

Depreciation and Amortization

4.0

0.5

4.6

EBIT

$ 21.6

$ (0.1)

$ 21.6

$ 2.1

$ 23.6

Interest

(0.5)

(0.6)

Profit Before Tax

$ 22.2

$ (0.1)

$ 22.1

$ 2.1

$ 24.2

Pawn Loans Outstanding

62.4

10.0

72.4

Inventory, Net

51.0

8.8

59.7

Net Earning Assets

$ 113.4

$ -

$ 113.4

$ 18.8

$ 132.1

Footnote * Includes immaterial presentation reclassifications. Numbers may not foot or cross foot due to rounding Footnote (A) Amount includes a $0.1 million FX gain

Footnote (B) Amount includes a $0.2 million FX loss

FY24

($ millions)

Continuing Ops PBT

$ 37.7

$ 28.7

$ 23.0

$ 26.3

$ 115.6

Add Back Net Interest

0.8

0.5

0.6

1.1

3.0

Add Back Depreciation and Amortization

8.6

8.2

8.1

33.1

Continuing Ops EBITDA

$ 47.1

$ 37.4

$ 31.8

$ 35.5

$ 151.7

Discrete Adjustments

0.1

(0.7)

(0.1)

0.5

(0.1)

Adjusted EBITDA

$ 47.2

$ 36.7

$ 31.7

$ 36.0

$ 151.6

Constant Currency

Currency Adjusted Continuing Ops EBITDA

$ 47.2

$ 36.7

$ 31.7

$ 36.0

$ 151.6

Continuing Ops Gross Profit

$ 172.6

$ 167.6

$ 166.7

$ 175.4

$ 682.3

Discrete Adjustments

Adjusted Gross Profit

$ 172.6

$ 167.6

$ 166.7

$ 175.4

$ 682.3

Constant Currency

Currency Adjusted Continuing Ops Gross Profit

$ 172.6

$ 167.6

$ 166.7

$ 175.4

$ 682.3

EBITDA Margin

15.7 %

12.8 %

11.3 %

12.2 %

13.0 %

GAAP Diluted EPS

$ 0.36

$ 0.29

$ 0.25

$ 0.21

$ 1.10

Discrete Adjustments Impact to EPS

(0.01)

0.04

0.03

Constant Currency

Adjusted Diluted EPS

$ 0.36

$ 0.28

$ 0.24

$ 0.25

$ 1.13

FY25 FY25

Q1 Q2

$ 41.4

$ 34.4

1.1

1.4

8.3

8.0

$ 50.8

$ 43.8

1.0

(0.1)

$ 51.8

$ 43.8

1.2

1.3

$ 53.0

$ 45.1

$ 185.4

$ 178.5

$ 185.4

$ 178.5

4.8

6.5

$ 190.2

$ 185.0

16.1 %

14.1 %

$ 0.40

$ 0.33

0.01

$ 0.42

$ 0.34

Footnote * Includes immaterial presentation reclassifications. Numbers may not foot or cross foot due to rounding. See final page of reconciliations for constant currency assumption

(in millions)

Prior to Refinancing

Proforma Impact

Proforma Post Refinancing**

Gross Debt

2025 Convertible Notes

$ 103.4

$ (103.4)

$ -

2029 Convertible Notes

230.0

2032 Senior Notes

300.0

Total

$ 333.4

$ 196.6

$ 530.0

Diluted Shares Outstanding due to Convertible Notes

2025 Convertible Notes*

6.5

(6.5)

2029 Convertible Notes

20.5

Total

27.0

(6.5)

20.5

Annual Cash Interest Expense

2025 Convertible Notes

$ 2.5

$ (2.5)

$ -

2029 Convertible Notes

8.6

2032 Senior Notes

22.1

Total

$ 11.1

$ 19.6

$ 30.7

2025 Convertible Notes mature on May 1, 2025, have a conversion price of $15.90 per share and an interest rate of 2.375% per annum

If holders elect to convert the 2025 Convertible Notes, the 6.5M shares would continue to be outstanding. $103.4M of cash that was earmarked to redeem these notes would remain with the Company for general corporate purposes

2029 Convertible Notes mature on December 15, 2029, have a conversion price of $11.232 per share and an interest rate of 3.75% per annum

2032 Senior Notes mature on April 1, 2032 and have an interest rate of 7.375% per annum

Debt financing costs have increased by approximately $7.5M, which will be amortized in interest expense through 2032

Footnote * Assumes 2025 Convertible Notes are paid off in cash at maturity on May 1, 2025 28

Footnote ** After 2025 Convertible Notes mature

GAAP

FY25 Q2

FY24 Q2 FY25 YTD FY24 YTD

(in millions, except per share amounts)

Basic earnings per common share:

Net income - Basic

$ 25.4

$ 21.5

$ 56.4

$ 49.9

Weighted shares outstanding - Basic

55.0

55.1

54.9

55.1

Basic earnings per common share

$ 0.46

$ 0.39

$ 1.03

$ 0.91

Diluted earnings per common share:

Net income - Basic

$ 25.4

$ 21.5

$ 56.4

$ 49.9

Add: Convertible notes interest expense, net of tax

2.4

4.8

5.1

Net income - Diluted

$ 27.8

$ 23.9

$ 61.3

$ 55.0

Weighted shares outstanding - Basic

55.0

55.1

54.9

55.1

Effect of dilution from if-converted convertible notes

27.0

28.7

Effect of dilution from equity-based compensation awards

1.2

1.0

1.4

1.2

Weighted shares outstanding - Diluted

83.1

83.0

83.2

84.9

Diluted earnings per common share

$ 0.33

$ 0.29

$ 0.74

$ 0.65

Adjusted

FY25 Q2 FY24 Q2 FY25 YTD FY24 YTD

$ 26.1

$ 21.0

$ 58.7

$ 49.6

55.0

55.1

54.9

55.1

$ 0.48

$ 0.38

$ 1.07

$ 0.90

$ 26.1

$ 21.0

$ 58.7

$ 49.6

2.4

4.8

5.1

$ 28.5

$ 23.4

$ 63.5

$ 54.7

55.0

55.1

54.9

55.1

27.0

28.7

1.2

1.0

1.4

1.2

83.1

83.0

83.2

84.9

$ 0.34

$ 0.28

$ 0.76

$ 0.64

Adoption of new accounting standards for convertible notes in ASU 2020-06 at the beginning of Q1 2022

Under this standard the dilutive effect of the convertible notes on EPS is accounted for by the if-converted method

This method requires that the numerator be adjusted by the interest expense on an after-tax basis

This method also assumes the notes are converted at the beginning of the period and the resulting common shares should be included in the denominator

Application of the if-converted method is only applicable if impact is dilutive

The if-converted calculations are not affected by the company's current stock price in relation to the conversion price

Impact to diluted EPS is only accounted for on a prospective basis (not retroactive) 29

Typical Transaction

Collateral Returned to Customer

Customer Repays Loan

Collateral Forfeits

Customer Does Not Repay Loan

PSC

Pawn Loan (Collateralized with Asset)

Purchase

(Company Buys Asset)

Customer Brings Personal Asset to Pawn Store

Inventory

Sales

Asset Type Gold Chain

Value assessed $400

Loan to Value 40% to 65%

Loan Term 30 to 90 days

Loan amount $200

Pawn Loan/Purchase 85%/15%

Redemption Rate* 80% to 90%

% of Pawn Loans Repaid 55% to 65%

Monthly Average Yield on PLO 14%

Retail Sales Margin 35% to 39%

Footnote * Redemption Rate represents the percentage of pawns made that are repaid, renewed or extended, including pawns that may be extended more than once.

Disclaimer

EZCORP Inc. published this content on April 28, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2025 at 05:15 UTC.