NASDAQ$EZPW

EZCORP Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported record year end pawn loans outstanding driving revenue and earnings growth.

EZCORP reported a strong fourth quarter and full year, with pawn loans outstanding up 19% to a record high of $210.0 million. Total revenue increased 21% for both the quarter and the full year, while net income for the quarter was $7.3 million, an increase of $5.8 million, and $50.2 million for the year, an increase of $41.5 million.

  • Pawn loans outstanding (PLO) up 19% to a record-high of $210.0 million.
  • Total revenue increased 21% for the quarter.
  • Net income for the quarter was $7.3 million, an increase of $5.8 million.
  • Diluted earnings per share of $0.11 for the quarter was up from $0.03.

Headline financials

Total Revenue

$233M

Previous: $192M+21.3%
EPS (adj)

$0.15

Previous: $0.11+36.4%
Pawn Service Charges

$87.9M

No prior period
Merchandise Sales Gross Margin

37.0%

No prior period
Inventory Turnover

2.6

No prior period
Net Income

$7.34M

Previous: $1.55M+372.4%
Operating Income

$14.9M

Previous: $7.81M+90.6%
Gross Profit

$138M

Previous: $119M+15.3%
Cash & Equivalents

$206M

Previous: $254M-18.8%
Total Assets

$1.35B

Previous: $1.27B+6.4%
Stock-Based Comp

$1.05M

Previous: $790K+32.3%

Revenue & EPS history

EZCORP · Revenue · Quarterly

$233M

Q4 2022+21.3%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
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

The company continues to execute on its three-year strategic plan and closed the fiscal year with another outstanding quarter. PLO hit a record high driving increases in pawn service charges.

Tailwinds

  • Strong sales margins.
  • Focus on optimizing store operating costs.
  • Significant increase in earnings.
  • Rollout of the EZ+ Rewards program continues to be a success, now yielding 1.9 million members across all geographies.
  • Strong cash flow and balance sheet has enabled the company to return value to shareholders through share repurchases.

Headwinds

  • Inflation and other economic pressures have had a significant impact on customers' finances.
  • Net inventory increased 37%, reflecting a return towards normalized inventory levels.
  • For the fourth quarter, store expenses increased 8%, primarily due to increased labor in-line with store activity and rent associated with lease renewals.
  • General and administrative expenses increased 14%, primarily due to asset write-downs associated with IT infrastructure migration and corporate office sublease.
  • Cash and cash equivalents at the end of the quarter was $206.0 million, down 19% year-over-year.

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 Q4 2022

Historical avgQ4 2022

+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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