NASDAQ$EZPW

EZCORP Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported mixed results with decreased revenue offset by improved merchandise sales gross profit and expense reductions.

EZCORP reported a decrease in total revenues by 17% to $184.9 million, primarily due to lower pawn service charges and merchandise sales. However, merchandise sales gross profit improved by 12%, driven by effective inventory management. Diluted earnings per share was $0.10, and adjusted EPS was $0.17, consistent with the prior-year quarter.

  • Diluted earnings per share was $0.10, compared to $(0.74) in the prior-year quarter.
  • Total revenues decreased 17% to $184.9 million.
  • Merchandise sales gross profit improved by 12%, with a 900 bps improvement in merchandise sales gross profit margin to 43%.
  • Total operating expenses decreased by 35% to $103.1 million.

Headline financials

Total Revenue

$185M

Previous: $223M-17.2%
EPS (adj)

$0.17

Previous: $0.17+0.0%
Pawn Loans Outstanding

$95.4M

Previous: -$7.50+1272000100.0%
Pawn Service Charges

$49.6M

No prior period
Inventory Turnover

2.9

No prior period
Free Cash Flow

$5.33M

Previous: -$53M+110.1%
Net Income

$5.33M

Previous: -$40.9M+113.0%
Operating Income

$10.6M

Previous: -$30.7M+134.6%
Gross Profit

$114M

Previous: $127M-10.7%
Cash & Equivalents

$336M

Previous: $194M+73.3%
Total Assets

$1.2B

Previous: $1.21B-1.4%
Stock-Based Comp

$1.09M

Previous: $1.03M+6.5%

Revenue & EPS history

EZCORP · Revenue · Quarterly

$185M

Q2 2021-17.2%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

EZCORP · $185M total across 2 segments · Q2 2021

  • U.S. Pawn
    $147M-15.4%
  • Latin America Pawn
    $37.8M-21.6%

Forward guidance

EZCORP anticipates that lingering impacts from the second stimulus package and an extended tax filing season will continue to temporarily reduce demand for pawn loans in the U.S. In Latin America, the company expects to face challenges with constrained traffic, limited operating hours, and increased remittances.

Tailwinds

  • Ongoing initiatives to broaden customer engagement via digital pawn servicing platform and expanded payment options.
  • Differentiated technology and data analytics capabilities driving improving loan-to-value ratios and redemption rates.
  • Commitment to optimizing team member development, productivity, and retention through enhanced training and diversity and inclusion programs.
  • Focus on leveraging strong balance sheet to fund pawn loans outstanding growth.
  • Capitalizing on strategic and financially accretive acquisitions to complement de novo store growth.

Headwinds

  • Lingering impacts from the second stimulus package temporarily reducing demand for pawn loans in the U.S.
  • Extended tax filing season temporarily reducing demand for pawn loans in the U.S.
  • Constrained traffic in Latin America.
  • Limited operating hours in Latin America.
  • Increased remittances in Latin America.

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 2021

Historical avgQ2 2021

+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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