EZCORP Reports Third Quarter 2022 Results

August 03, 2022 at 16:15 PM EDT

Record High Pawn Loans Outstanding Driving Strong Earnings Momentum

EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its third quarter ended June 30, 2022.

Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") and comparisons shown are to the same period in the prior year.

THIRD QUARTER HIGHLIGHTS

Pawn loans outstanding (PLO) up 30% to a record-high of $204.2 million.
Total revenue increased 24%, and gross profit¹ increased 20%.
Merchandise sales gross margin was at the high end of our target range at 38%.
Net income was $12.2 million, an increase of $14.8 million.
Diluted earnings per share of $0.17 was up significantly from a loss of $0.05. On an adjusted basis², diluted earnings per share was $0.16, compared to a loss of $0.03 in the prior-year quarter.
Return on earning assets (ROEA) remains strong at 165%.

CEO COMMENTARY AND OUTLOOK

Chief Executive Officer Lachie Given stated, “We have delivered another outstanding quarter of financial results. PLO, the most significant driver of revenue and earnings, hit a record high, surpassing pre-COVID levels on a total and same-store basis. This has driven significant increases in pawn service charges (PSC), and as we continue to drive strong sales margins and gain cost efficiencies across the business, we have delivered very substantial earnings improvement for the quarter."

"With persistent macro issues fueling inflation, we are proud to offer our customers a unique and essential service to address their short-term cash needs. We are also a neighborhood recycling business that extends the useful life of millions of items every year, and are working to expand our customer base of environmentally-conscious consumers across the U.S. and Latin America.

"During the third quarter, we opened eight de novo stores in Latin America and acquired three stores in the Dallas, Texas area. Our EZ+ Rewards program continues to grow across all of our regions, and we now have over 1.4 million enrolled customers. Furthering our commitment to investing in our people, we introduced Career Week for our 6,800 employees to reinforce our new Career Framework and Career Path opportunities.

"The improvement in our financial results is the outcome of our team’s focus and commitment to People, Pawn, and Passion, and on providing the best possible experience for our customers. I am extremely proud of our entire team for delivering such exceptional operating and financial results for our shareholders.”

CONSOLIDATED RESULTS

Three Months Ended June 30
in millions, except per share amounts

Total revenues	$	215.8	$	174.0		$	215.8	$	174.0
Gross profit¹	$	129.5	$	108.0		$	129.5	$	108.0
Income (loss) before tax	$	13.1	$	(0.8	)	$	14.9	$	3.6
Net income (loss)	$	12.2	$	(2.6	)	$	11.0	$	(1.4	)
Diluted earnings (loss) per share	$	0.17	$	(0.05	)	$	0.16	$	(0.03	)
EBITDA (non-GAAP measure)	$	23.3	$	11.7		$	25.1	$	12.5

Diluted earnings per share were $0.17 for the third quarter, up from a loss of $0.05. On an adjusted basis, diluted earnings per share were $0.16, up from a loss of $0.03.
Income before taxes improved to $13.1 million from a loss of $0.8 million, while adjusted EBITDA increased 100% to $25.1 million.
PLO increased 30% to $204.2 million, up $47.0 million. On a same-store basis³, PLO increased 30% to its highest level due to increased loan demand reflecting a recovery above pre-COVID levels.
Total revenues increased 24%, and gross profit increased 20%, reflecting improved pawn service charge (PSC) revenue and merchandise sales.
PSC increased 33% due to an increase in the average PLO balance during the quarter.
Merchandise sales gross margin was at the high end of our target range at 38%, reflecting our commitment to improving the core business by decreasing aged general merchandise (now less than 1% of total general merchandise inventory) and focusing on selling inventory in the first 90 days.
Net inventory increased 44% reflecting a return towards normalized inventory levels. Inventory turnover remained strong at 2.8x for the quarter, down from 3.1x.
Store expenses increased 9%, due to increased store count and labor costs in line with increased store activity. On a same-store basis, store expenses increased 5%.
General and administrative expenses increased 28%, primarily due to a litigation accrual and increased performance-based incentive compensation.
Cash and cash equivalents at the end of the quarter was $222.3 million, down 22% year-over-year. The decrease is primarily due to the increase in PLO and inventory.

SEGMENT RESULTS

U.S. Pawn

PLO continued to increase, ending the quarter at $159.7 million, up 36% (36% on a same store basis).
Total revenue was up 22% and gross profit increased 18%, reflecting increasing PSC.
PSC increased 35% as a result of higher average PLO.
Merchandise sales gross margin decreased to 41% from 46% as expected. Aged general merchandise inventory improved to 0.4% from 1.2% of total general merchandise inventory.
Net inventory increased 47%. Inventory turnover decreased to 2.5x from 2.8x due to increased inventory levels in the current quarter and stimulus impacts in the prior year.
Store expenses increased 6% primarily due to store count and labor increases in line with store activity.
Segment contribution increased 64% to $29.8 million.
Segment store count increased by three acquired stores during the quarter.

Latin America Pawn

PLO improved to $44.5 million or 11% (13% on constant currency basis). On a same store basis, PLO increased 9% (10% on a constant currency basis).
Total revenue was up 31% (same on a constant currency basis), while gross profit increased 26% (same on a constant currency basis).
PSC increased to $21.0 million or 28% (same on a constant currency basis) as a result of higher average PLO for the quarter.
Merchandise sales gross margin decreased from 35% to 29%, reflecting a return to more normalized margins.
Net inventory increased 34% (35% on a constant currency basis). Inventory turnover remains strong at 3.7x, down from 4.0x.
Store expenses increased 21% (same on a constant currency basis) primarily due to year-over-year store count and growth in labor in line with increased store activity. Same-store expenses increased 4% (6% on a constant currency basis).
Segment contribution increased to $6.1 million or 71% (48% on a constant currency basis), compared to $3.6 million.
Segment store count increased by eight de novo stores opened during the quarter.

FORM 10-Q

EZCORP’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com.

CONFERENCE CALL

EZCORP will host a conference call on Thursday, August 4, 2022, at 7:00 am Central Time to discuss Third Quarter Fiscal 2022 results. Analysts and institutional investors may participate on the conference call by dialing (844) 200-6205, Conference ID: 464794, or internationally by dialing (929) 526-1599. The conference call will be webcast simultaneously to the public through this link: http://investors.ezcorp.com/. A replay of the conference call will be available online at http://investors.ezcorp.com/ shortly after the end of the call.

ABOUT EZCORP

Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell merchandise, primarily collateral forfeited from pawn lending operations and pre-owned and recycled merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the Russell 2000 Index, S&P 1000 Index and Nasdaq Composite Index.

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FORWARD LOOKING STATEMENTS

This announcement contains certain forward-looking statements regarding the company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the company's strategy, initiatives and future performance, that address activities or results that the company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions.

¹”We have relabeled "net revenues" to "gross profit" throughout our filings, which we believe will improve comparability across industries and companies. This change is effective for this and future filings.

²”Adjusted” basis, which is a non-GAAP measure, excludes certain items. “Constant currency” basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. “Free cash flow,” which is a non-GAAP measure, includes certain adjustments to cash flow from operating activities. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see “Non-GAAP Financial Information” at the end of this release.

³”Same Store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.

EZCORP, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended June 30,						Nine Months Ended June 30,
(in thousands, except per share amounts)	2022			2021			2022			2021
Revenues:
Merchandise sales	$	128,334		$	107,808		$	399,610		$	330,816
Jewelry scrapping sales		7,168			5,673			19,802			18,507
Pawn service charges		80,291			60,431			232,999			187,356
Other revenues, net		49			121			407			428
Total revenues		215,842			174,033			652,818			537,107
Merchandise cost of goods sold		80,167			60,539			245,524			190,872
Jewelry scrapping cost of goods sold		6,167			5,473			16,747			16,076
Gross profit		129,508			108,021			390,547			330,159
Operating expenses:
Store expenses		89,430			81,803			261,944			242,261
General and administrative		18,715			14,589			46,487			40,870
Depreciation and amortization		7,746			7,419			22,770			23,080
(Gain) loss on sale or disposal of assets and other		—			—			(692	)		90
Other charges		—			497			—			497
Total operating expenses		115,891			104,308			330,509			306,798
Operating income		13,617			3,713			60,038			23,361
Interest expense		2,693			5,569			7,651			16,542
Interest income		(190	)		(512	)		(749	)		(1,918	)
Equity in net income of unconsolidated affiliates		(1,758	)		(643	)		(1,457	)		(2,409	)
Other expense (income)		(210	)		65			41			(389	)
Income (loss) before income taxes		13,082			(766	)		54,552			11,535
Income tax expense		867			1,804			11,729			4,476
Net income (loss)	$	12,215		$	(2,570	)	$	42,823		$	7,059

Basic earnings (loss) per share	$	0.22		$	(0.05	)	$	0.76		$	0.13
Diluted earnings (loss) per share	$	0.17		$	(0.05	)	$	0.59		$	0.13

Weighted-average basic shares outstanding		56,656			55,898			56,465			55,639
Weighted-average diluted shares outstanding		82,504			55,898			82,349			55,653

EZCORP, Inc.
CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)	June 30,			June 30,			September 30,
	2022			2021			2021

	(Unaudited)
Assets:
Current assets:
Cash and cash equivalents	$	222,342		$	283,668		$	253,667
Restricted cash		8,614			13,795			9,957
Pawn loans		204,155			157,155			175,901
Pawn service charges receivable, net		32,000			24,965			29,337
Inventory, net		132,713			92,242			110,989
Prepaid expenses and other current assets		29,822			28,343			31,010
Total current assets		629,646			600,168			610,861
Investments in unconsolidated affiliates		43,384			35,387			37,724
Other investments		18,000			—			—
Property and equipment, net		51,505			55,630			53,811
Right-of-use asset, net		217,506			185,467			200,990
Goodwill		286,798			283,619			285,758
Intangible assets, net		61,017			61,922			62,104
Notes receivable, net		1,207			1,173			1,181
Deferred tax asset, net		15,773			10,292			9,746
Other assets		5,991			4,992			4,736
Total assets	$	1,330,827		$	1,238,650		$	1,266,911

Liabilities and stockholders' equity:
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	76,566		$	84,966		$	90,268
Customer layaway deposits		14,927			11,884			12,557
Lease liability		53,358			47,241			52,263
Total current liabilities		144,851			144,091			155,088
Long-term debt, net		312,521			260,632			264,186
Deferred tax liability, net		307			1,309			3,684
Lease liability		175,489			149,342			161,330
Other long-term liabilities		11,905			10,058			10,385
Total liabilities		645,073			565,432			594,673
Commitments and Contingencies
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 53,685,333 as of June 30, 2022; 53,086,438 as of June 30, 2021; and 53,086,438 as of September 30, 2021		537			530			530
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171		30			30			30
Additional paid-in capital		343,763			402,522			403,312
Retained earnings		396,461			325,228			326,781
Accumulated other comprehensive loss		(55,037	)		(55,092	)		(58,415	)
Total stockholders' equity		685,754			673,218			672,238
Total liabilities and stockholders' equity	$	1,330,827		$	1,238,650		$	1,266,911

EZCORP, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS

	Nine Months Ended
	June 30,
(in thousands)	2022			2021

Operating activities:
Net income	$	42,823		$	7,059
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		22,770			23,080
Amortization of debt discount and deferred financing costs		1,051			10,243
Amortization of lease right-of-use asset		39,061			35,885
Deferred income taxes		475			(576	)
Other adjustments		(734	)		(331	)
Provision for inventory reserve		(2,096	)		(6,812	)
Stock compensation expense		4,008			3,156
Equity in net income of unconsolidated affiliates		(1,457	)		(2,409	)
Changes in operating assets and liabilities:
Service charges and fees receivable		(2,949	)		(2,832	)
Inventory		(7,837	)		5,382
Prepaid expenses, other current assets and other assets		2,025			7,908
Accounts payable, accrued expenses and other liabilities		(53,209	)		(51,565	)
Customer layaway deposits		2,265			511
Income taxes		(1,068	)		4,423
Dividends from unconsolidated affiliates		3,366			—
Net cash provided by operating activities		48,494			33,122
Investing activities:
Loans made		(524,965	)		(423,450	)
Loans repaid		295,823			260,536
Recovery of pawn loan principal through sale of forfeited collateral		191,082			155,595
Capital expenditures, net		(18,100	)		(14,635	)
Acquisitions, net of cash acquired		(1,850	)		(15,132	)
Issuance of note receivable		(1,000	)		—
Investment in unconsolidated affiliates		(6,079	)		—
Investment in other investments		(16,500	)		—
Net cash used in investing activities		(81,589	)		(37,086	)
Financing activities:
Taxes paid related to net share settlement of equity awards		(792	)		(839	)
Payments on assumed debt and other borrowings		—			(15,363	)
Net cash used in financing activities		(792	)		(16,202	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		1,219			5,076
Net decrease in cash, cash equivalents and restricted cash		(32,668	)		(15,090	)
Cash, cash equivalents and restricted cash at beginning of period		263,624			312,553
Cash, cash equivalents and restricted cash at end of period	$	230,956		$	297,463

Supplemental disclosure of cash flow information
Cash and cash equivalents	$	222,342		$	283,668
Restricted cash		8,614			13,795
Total cash and cash equivalents and restricted cash	$	230,956		$	297,463


Non-cash investing and financing activities:
Pawn loans forfeited and transferred to inventory	$	204,662		$	145,839
Transfer of consideration for other investment		1,500			—
Transfer of consideration for acquisition		—			1,547
Acquisition earn-out contingency		—			4,608
Accrued acquisition consideration held as restricted cash		—			5,824

EZCORP, Inc.
OPERATING SEGMENT RESULTS
(Unaudited)

	Three Months Ended June 30, 2022
				Latin America			Other			Total			Corporate
(in thousands)	U.S. Pawn			Pawn			Investments			Segments			Items			Consolidated

Revenues:
Merchandise sales	$	94,005		$	34,329		$	—		$	128,334		$	—		$	128,334
Jewelry scrapping sales		5,404			1,764			—			7,168			—			7,168
Pawn service charges		59,322			20,969			—			80,291			—			80,291
Other revenues		21			7			21			49			—			49
Total revenues		158,752			57,069			21			215,842			—			215,842
Merchandise cost of goods sold		55,885			24,282			—			80,167			—			80,167
Jewelry scrapping cost of goods sold		4,506			1,661			—			6,167			—			6,167
Gross profit		98,361			31,126			21			129,508			—			129,508
Segment and corporate expenses (income):
Store expenses		66,036			23,394			—			89,430			—			89,430
General and administrative		—			—			—			—			18,715			18,715
Depreciation and amortization		2,572			1,987			—			4,559			3,187			7,746
Interest expense		—			—			—			—			2,693			2,693
Interest income		(1	)		(189	)		—			(190	)		—			(190	)
Equity in net income of unconsolidated affiliates		—			—			(1,758	)		(1,758	)		—			(1,758	)
Other (income) expense		—			(163	)		19			(144	)		(66	)		(210	)
Segment contribution	$	29,754		$	6,097		$	1,760		$	37,611
Income (loss) before income taxes										$	37,611		$	(24,529	)	$	13,082

	Three Months Ended June 30, 2021
			Latin America			Other			Total			Corporate
(in thousands)	U.S. Pawn		Pawn			Investments			Segments			Items			Consolidated

Revenues:
Merchandise sales	$	84,465	$	23,343		$	—		$	107,808		$	—		$	107,808
Jewelry scrapping sales		1,908		3,765			—			5,673			—			5,673
Pawn service charges		44,039		16,392			—			60,431			—			60,431
Other revenues		32		—			89			121			—			121
Total revenues		130,444		43,500			89			174,033			—			174,033
Merchandise cost of goods sold		45,310		15,229			—			60,539			—			60,539
Jewelry scrapping cost of goods sold		1,878		3,595			—			5,473			—			5,473
Gross profit		83,256		24,676			89			108,021			—			108,021
Segment and corporate expenses (income):
Store expenses		62,507		19,296			—			81,803			—			81,803
General and administrative		—		—			—			—			14,589			14,589
Depreciation and amortization		2,600		1,806			—			4,406			3,013			7,419
Other Charges		—		497			—			497			—			497
Interest expense		—		—			—			—			5,569			5,569
Interest income		—		(484	)		—			(484	)		(28	)		(512	)
Equity in net income of unconsolidated affiliates		—		—			(643	)		(643	)		—			(643	)
Other (income) expense		—		(5	)		18			13			52			65
Segment contribution	$	18,149	$	3,566		$	714		$	22,429
Income (loss) before income taxes									$	22,429		$	(23,195	)	$	(766	)

	Nine Months Ended June 30, 2022
				Latin America			Other			Total			Corporate
(in thousands)	U.S. Pawn			Pawn			Investments			Segments			Items			Consolidated

Revenues:
Merchandise sales	$	296,147		$	103,463		$	—		$	399,610		$	—		$	399,610
Jewelry scrapping sales		13,864			5,938			—			19,802			—			19,802
Pawn service charges		174,651			58,348			—			232,999			—			232,999
Other revenues		67			247			93			407			—			407
Total revenues		484,729			167,996			93			652,818			—			652,818
Merchandise cost of goods sold		172,330			73,194			—			245,524			—			245,524
Jewelry scrapping cost of goods sold		11,279			5,468			—			16,747			—			16,747
Gross profit		301,120			89,334			93			390,547			—			390,547
Segment and corporate expenses (income):
Store expenses		195,217			66,727			—			261,944			—			261,944
General and administrative		—			—			—			—			46,487			46,487
Depreciation and amortization		7,867			5,858			—			13,725			9,045			22,770
Gain on sale or disposal of assets and other		—			(4	)		—			(4	)		(688	)		(692	)
Interest expense		—			—			—			—			7,651			7,651
Interest income		(1	)		(626	)		—			(627	)		(122	)		(749	)
Equity in net income of unconsolidated affiliates		—			—			(1,457	)		(1,457	)		—			(1,457	)
Other expense (income)		—			37			15			52			(11	)		41
Segment contribution	$	98,037		$	17,342		$	1,535		$	116,914
Income (loss) before income taxes										$	116,914		$	(62,362	)	$	54,552

	Nine Months Ended June 30, 2021
			Latin America			Other			Total			Corporate
(in thousands)	U.S. Pawn		Pawn			Investments			Segments			Items			Consolidated

Revenues:
Merchandise sales	$	260,545	$	70,271		$	—		$	330,816		$	—		$	330,816
Jewelry scrapping sales		9,493		9,014			—			18,507			—			18,507
Pawn service charges		143,836		43,520			—			187,356			—			187,356
Other revenues		83		7			338			428			—			428
Total revenues		413,957		122,812			338			537,107			—			537,107
Merchandise cost of goods sold		145,181		45,691			—			190,872			—			190,872
Jewelry scrapping cost of goods sold		7,871		8,205			—			16,076			—			16,076
Gross profit		260,905		68,916			338			330,159			—			330,159
Segment and corporate expenses (income):
Store expenses		188,256		54,005			—			242,261			—			242,261
General and administrative		—		—			—			—			40,870			40,870
Depreciation and amortization		7,972		5,459			—			13,431			9,649			23,080
Loss on sale or disposal of assets and other		27		—			—			27			63			90
Other Charges		—		497			—			497			—			497
Interest expense		—		—			—			—			16,542			16,542
Interest income		—		(1,819	)		—			(1,819	)		(99	)		(1,918	)
Equity in net income of unconsolidated affiliates		—		—			(2,409	)		(2,409	)		—			(2,409	)
Other (income) expense		—		(375	)		(183	)		(558	)		169			(389	)
Segment contribution	$	64,650	$	11,149		$	2,930		$	78,729
Income (loss) before income taxes									$	78,729		$	(67,194	)	$	11,535

EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)

	Three Months Ended June 30, 2022
	U.S. Pawn	Latin America Pawn		Consolidated

As of March 31, 2022	516	636		1,152
New locations opened	—	8		8
Locations acquired	3	—		3
As of June 30, 2022	519	644		1,163

	Three Months Ended June 30, 2021
	U.S. Pawn	Latin America Pawn		Consolidated

As of March 31, 2021	505	506		1,011
New locations opened	—	4		4
Locations acquired	11	128		139
Locations sold, combined or closed	—	(11	)	(11	)
As of June 30, 2021	516	627		1,143

	Nine Months Ended June 30, 2022
	U.S. Pawn	Latin America Pawn		Consolidated

As of September 30, 2021	516	632		1,148
New locations opened	—	12		12
Locations acquired	3	—		3
As of June 30, 2022	519	644		1,163

	Nine Months Ended June 30, 2021
	U.S. Pawn	Latin America Pawn		Consolidated

As of September 30, 2020	505	500		1,005
New locations opened	—	10		10
Locations acquired	11	128		139
Locations sold, combined or closed	—	(11	)	(11	)
As of June 30, 2021	516	627		1,143

Non-GAAP Financial Information (Unaudited)

In addition to the financial information prepared in conformity with accounting principles generally accepted in the United States ("GAAP"), we provide certain other non-GAAP financial information on a constant currency ("constant currency") and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflect an additional way of viewing aspects of our business that, when viewed with GAAP results, provide a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three and nine months ended June 30, 2022 and 2021 were as follows:

			Three Months Ended		Nine Months Ended
	June 30,		June 30,		June 30,
	2022	2021	2022	2021	2022	2021

Mexican peso	20.2	19.9	20.0	20.0	20.4	20.3
Guatemalan quetzal	7.6	7.6	7.5	7.6	7.5	7.6
Honduran lempira	24.2	23.6	24.2	23.7	24.1	23.8
Peruvian sol	3.7	3.9	3.7	3.8	3.8	3.7

Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

Miscellaneous Non-GAAP Financial Measures

	Three Months Ended June 30,
(in millions)	2022			2021

Net income (loss)	$	12.2		$	(2.6	)
Interest expense		2.7			5.6
Interest income		(0.2	)		(0.5	)
Income tax expense		0.9			1.8
Depreciation and amortization		7.7			7.4
EBITDA	$	23.3		$	11.7

	Total		Gross		Income					Net			Diluted
	Revenues		Profit		Before Tax			Tax Effect		Income			EPS			EBITDA

2022 Q3 Reported	$	215.8	$	129.5	$	13.1		$	0.9	$	12.2		$	0.17		$	23.3
Litigation accrual		—		—		2.0			0.1		1.8			0.02			2.0
FX impact		—		—		(0.2	)		—		(0.2	)		—			(0.2	)
Release of FIN 48 reserves		—		—		—			2.8		(2.8	)		(0.03	)		—
Constant currency impact		—		—		—			—		0.1			—			—
2022 Q3 Adjusted	$	215.8	$	129.5	$	14.9		$	3.9	$	11.0		$	0.16		$	25.1

	Total		Gross		Income					Net			Diluted
	Revenues		Profit		Before Tax			Tax Effect		Income			EPS			EBITDA

2021 Q3 Reported	$	174.0	$	108.0	$	(0.8	)	$	1.8	$	(2.6	)	$	(0.05	)	$	11.7
Acquisition expenses		—		—		0.4			0.3		0.1			—			0.4
Peru Reserve		—		—		0.5			0.4		0.1			—			0.4
Non cash Interest		—		—		3.5			2.5		1.0			0.02			—
2021 Q3 Adjusted	$	174.0	$	108.0	$	3.6		$	5.0	$	(1.4	)	$	(0.03	)	$	12.5

	Three Months Ended				Nine Months Ended
	June 30, 2022				June 30, 2022
	U.S. Dollar		Percentage		U.S. Dollar		Percentage
(in millions)	Amount		Change YOY		Amount		Change YOY

Consolidated revenue	$	215.8	24	%	$	652.8	22	%
Currency exchange rate fluctuations		—				0.7
Constant currency consolidated revenue	$	215.8	24	%	$	653.5	22	%

Consolidated gross profit	$	129.5	20	%	$	390.5	18	%
Currency exchange rate fluctuations		—				0.3
Constant currency consolidated gross profit	$	129.5	20	%	$	390.8	18	%

Consolidated net inventory	$	132.7	44	%	$	132.7	44	%
Currency exchange rate fluctuations		0.4				0.4
Constant currency consolidated net inventory	$	133.1	44	%	$	133.1	44	%

Latin America Pawn gross profit	$	31.1	26	%	$	89.3	30	%
Currency exchange rate fluctuations		—				0.3
Constant currency Latin America Pawn gross profit	$	31.1	26	%	$	89.6	30	%

Latin America Pawn PLO	$	44.5	11	%	$	44.5	11	%
Currency exchange rate fluctuations		0.5				0.5
Constant currency Latin America Pawn PLO	$	45.0	13	%	$	45.0	13	%

Latin America Pawn PSC revenues	$	21.0	28	%	$	58.3	34	%
Currency exchange rate fluctuations		—				0.1
Constant currency Latin America Pawn PSC revenues	$	21.0	28	%	$	58.4	34	%

Latin America Pawn merchandise sales	$	34.3	47	%	$	103.5	47	%
Currency exchange rate fluctuations		—				0.6
Constant currency Latin America Pawn merchandise sales	$	34.3	47	%	$	104.1	48	%

Latin America Pawn segment profit before tax	$	6.1	71	%	$	17.3	56	%
Currency exchange rate fluctuations		—				0.1
Constant currency Latin America Pawn segment profit before tax	$	6.1	71	%	$	17.4	56	%

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Contacts

Email: Investor_Relations@ezcorp.com

Phone: (512) 314-2220