NASDAQ$EZPW

EZCORP Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

EZCORP's Q3 2020 performance was marked by revenue growth driven by retail sales, but impacted by decreased pawn loan demand and related pawn service charge revenue.

EZCORP reported a 4% increase in total revenues to $210.2 million, driven by strong retail sales growth of 31%. However, net revenues decreased by 12% due to a 34% decline in pawn service revenue, which was attributed to lower pawn loan demand influenced by stimulus payments and restrictions in Latin America. The company's loss before taxes was $10.2 million, and diluted loss per share was $0.10.

  • Total revenues increased by 4% to $210.2 million, while retail sales grew by 31% due to demand for work-from-home and school-from-home merchandise.
  • Net revenues decreased by 12% due to a 34% reduction in pawn service revenue, partially offset by a 33% increase in merchandise sales gross profit.
  • Loss before taxes was $10.2 million, and diluted loss per share was $0.10, impacted by lower pawn loan volume and shifts in revenue mix.
  • Cash and cash equivalents increased to $311 million, driven by a decline in new pawn loan originations and increased merchandise and scrap sales.

Headline financials

Total Revenue

$210M

Previous: $202M+3.8%
EPS (adj)

-$0.01

Previous: $0.18-105.6%
Pawn Service Charges

$52.5M

No prior period
Capital Expenditures

-$20.9M

Previous: -$24.6M+15.1%
Free Cash Flow

-$26.4M

Previous: -$21.4M-23.1%
Net Income

-$5.49M

Previous: $3.16M-273.7%
Operating Income

-$4.28M

Previous: $8.8M-148.6%
Gross Profit

$102M

Previous: $116M-11.8%
Cash & Equivalents

$311M

Previous: $139M+124.0%
Total Assets

$1.22B

Previous: $1.07B+14.5%
Stock-Based Comp

$2.37M

Previous: $2.34M+1.4%

Revenue & EPS history

EZCORP · Revenue · Quarterly

$210M

Q3 2020+3.8%vs Q3 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

EZCORP · $256M total across 2 segments · Q3 2023

  • U.S. Pawn
    $184M+16.0%
  • Latin America Pawn
    $71.7M+25.6%

Forward guidance

EZCORP anticipates that it will take time for PLO and PSC to rebuild, but remains confident that demand for pawn loans will accelerate, thereby driving higher revenue growth and increased earnings power, particularly as expenses are rationalized and investments are made in value-added initiatives.

Tailwinds

  • Demand for pawn loans will accelerate.
  • Higher revenue growth.
  • Increased earnings power.
  • Rationalizing expenses.
  • Investments in value-added initiatives.

Headwinds

  • It will take time for PLO to rebuild.
  • It will take time for PSC to rebuild.
  • Customers’ needs for cash were lower in the quarter.
  • Shutdown of CashMax business will result in charges of approximately $8.0 - $10.0 million.
  • Uncertain times regarding safety of team members and customers.

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 Q3 2020

Historical avgQ3 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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