NASDAQ$EZPW

EZCORP Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

EZCORP reported results with improvements in pawn loans outstanding and net revenue, despite a net loss.

EZCORP reported a net revenue increase of 6% and a significant rise in pawn loans outstanding by 39%. The company completed a major acquisition in Mexico, expanding its store count. While merchandise sales decreased, gross profit improved due to effective inventory management. Net loss was reduced compared to the previous year, and adjusted EBITDA more than doubled.

  • Pawn loans outstanding increased 39% year-over-year to $157.2 million.
  • Net revenues increased 6% to $108 million.
  • Merchandise sales gross profit increased by 6% despite a decrease in sales.
  • Net loss improved from a loss of $5.5 million to a loss of $2.6 million.

Headline financials

Total Revenue

$174M

Previous: $210M-17.2%
EPS (adj)

-$0.03

Previous: -$0.01-200.0%
Pawn Loans Outstanding

$157M

No prior period
Store Count

1.1K

No prior period
Free Cash Flow

-$2.57M

Previous: -$26.4M+90.2%
Net Income

-$2.57M

Previous: -$5.49M+53.2%
Operating Income

$3.71M

Previous: -$4.28M+186.8%
Gross Profit

$108M

Previous: $102M+5.7%
Cash & Equivalents

$284M

Previous: $311M-8.8%
Total Assets

$1.24B

Previous: $1.22B+1.2%
Stock-Based Comp

$1.54M

Previous: $2.37M-35.1%

Revenue & EPS history

EZCORP · Revenue · Quarterly

$174M

Q3 2021-17.2%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

EZCORP · $174M total across 2 segments · Q3 2021

  • U.S. Pawn
    $130M
  • Latin America Pawn
    $43.5M

Forward guidance

EZCORP anticipates continued improvement in financial performance, driven by rebuilding pawn transaction activity, realization of cost savings, and a strong balance sheet to fund pawn demand and acquisitions.

Tailwinds

  • Pawn transaction activity is rebuilding, driving PLO balances closer to pre-pandemic levels.
  • Accelerating pawn service charge revenue is expected in the coming quarters.
  • Meaningful cost savings are expected this year and beyond.
  • The company maintains a strong and liquid balance sheet.
  • The company is positioned to capitalize on acquisition opportunities.

Headwinds

  • Lingering transitory COVID-related impacts, including government stimulus programs in the U.S., may affect results.
  • Merchandise sales volumes were down 21% from their peak pandemic levels a year ago.
  • Store-level expenses may trend higher as transaction volumes accelerate.
  • Jewelry scrapping sales decreased $14.6 million or 72%.
  • Jewelry scrapping sales gross profit decreased $3.9 million or 95%.

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 2021

Historical avgQ3 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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