NASDAQ$EZPW

EZCORP Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

EZCORP's revenue increased, driven by strong retail demand, but earnings were negatively impacted by a non-cash asset impairment charge.

EZCORP reported a 4% increase in total revenues, driven by strong retail demand, but experienced a decrease in income before taxes due to a non-cash asset impairment charge. The company's cash position remained strong.

  • Total revenues increased by 4% to $223.3 million.
  • Operations expenses decreased by 2% to $88.4 million.
  • The company reported a cash position of $193.7 million, up 35% from the previous quarter.
  • Second quarter results included a non-cash asset impairment charge of $47.1 million.

Headline financials

Total Revenue

$223M

Previous: $215M+4.0%
EPS (adj)

$0.17

Previous: $0.22-22.7%
Pawn Loans Outstanding

-$7.50

No prior period
Store Count

1.0K

No prior period
Capital Expenditures

-$12.2M

Previous: -$13.9M+12.3%
Free Cash Flow

-$53M

Previous: -$10.5M-406.6%
Net Income

-$40.9M

Previous: $3.39M-1304.3%
Operating Income

-$30.7M

Previous: $16.8M-283.1%
Gross Profit

$127M

Previous: $128M-0.3%
Cash & Equivalents

$194M

Previous: $348M-44.3%
Total Assets

$1.21B

Previous: $1.25B-3.2%
Stock-Based Comp

$1.03M

Previous: $2.46M-58.2%

Revenue & EPS history

EZCORP · Revenue · Quarterly

$223M

Q2 2020+4%vs Q2 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

EZCORP · $222M total across 2 segments · Q2 2020

  • U.S. Pawn
    $174M
  • Latin America Pawn
    $48.1M

Forward guidance

EZCORP anticipates a rebound in loan demand as the economic backdrop becomes more challenging, while remaining focused on the health and safety of employees and customers and exploring innovative ways to meet customer needs.

Tailwinds

  • Strong retail demand continues in the U.S. and Latin America due to government stimulus.
  • Recession-resilient business positioned to perform as loan demand returns.
  • Leveraging differentiated point of sale system to optimize lending decisions and customer experience.
  • Focus on health and safety of employees and customers.
  • Finding new and innovative ways to satisfy customers’ needs.

Headwinds

  • Government stimulus programs have resulted in lower loan demand and heightened repayments.
  • Timing of rebound in loan demand remains uncertain.
  • More challenging economic backdrop in the U.S. and Latin America.
  • Uncertainty and volatility in the market.
  • Difficult to predict the future.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.2%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+2.6%

Avg return

30 days after

47%

31 / 66 earnings

Positive

+18.6%

Q4 2019

Best reaction

-26.9%

Q4 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.7%+0.3%-4.5%
Q1 2026+4.5%+12.7%+15.3%
Q4 2025+1.9%+2.8%+20.5%
Q2 2025-2.3%-4.0%-17.7%
Q1 2025+1.0%+14.1%+9.0%
Q4 2024+2.1%+2.5%+3.7%
Q3 2024+1.1%+7.3%+17.7%
Q2 2024-4.0%-6.0%-4.5%
Q1 2024+11.1%+19.5%+18.5%
Q4 2023-2.3%-1.5%+2.3%
Q3 2023+4.1%+2.9%-7.1%
Q2 2023-1.5%+3.2%-3.1%
Q1 2023-0.9%+2.2%-0.5%
Q4 2022-4.5%+0.7%-14.3%
Q3 2022+5.2%+9.7%+0.4%
Q2 2022+11.0%+6.0%+10.5%
Q1 2022+6.9%+0.8%-9.3%
Q4 2021+11.3%+4.0%-7.3%
Q3 2021+6.1%+8.0%+23.0%
Q2 2021+15.3%+13.3%+28.9%
Q1 2021+10.9%+10.0%+11.1%
Q4 2020-3.1%-10.0%-8.0%
Q3 2020+4.4%+5.1%-1.6%
Q2 2020-12.0%-12.7%+18.8%
Q1 2020-19.5%-20.4%-25.2%
Q4 2019+18.6%+18.2%+27.0%
Q3 2019-10.8%-14.3%-21.6%
Q2 2019-9.3%-14.6%-14.9%
Q1 2019+2.4%+10.5%+9.1%
Q4 2018+8.1%+2.9%-8.7%
Q3 2018-4.4%-0.4%-3.1%
Q2 2018+6.6%+9.1%-5.1%
Q1 2018+14.4%+9.3%+11.9%
Q4 2017+12.2%+16.3%+25.0%
Q3 2017+5.0%+9.4%+13.1%
Q2 2017-1.7%-0.6%+0.0%
Q1 2017-2.0%-6.5%-9.5%
Q4 2016+0.0%-6.8%-9.8%
Q3 2016-2.1%-3.2%+10.9%
Q2 2016+11.7%
Q1 2016-15.1%
Q4 2015-2.0%
Q3 2015+0.6%
Q2 2015-7.4%
Q1 2015-15.6%
Q4 2014-0.1%
Q3 2014+4.6%
Q2 2014-5.5%
Q1 2014+13.3%
Q4 2013-26.9%
Q3 2013+0.6%
Q2 2013+7.5%
Q1 2013+12.9%
Q4 2012-12.6%
Q3 2012-6.2%
Q2 2012+1.2%
Q1 2012-0.5%
Q4 2011-3.0%
Q4 2009-3.0%
Q2 2011-3.0%
Q3 2011-11.8%
Q3 2010-11.8%
Q1 2011-0.4%
Q1 2010-0.4%
Q2 2010-0.4%
Q4 2010-0.4%

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