EX-99.1 2 a2021-q2pressreleaseex991.htm EX-99.1 Document

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EZCORP Reports Second Quarter Fiscal 2021 Results
Austin, Texas (May 5, 2021) — EZCORP, Inc. (NASDAQ: EZPW) today announced results for its second quarter ended March 31, 2021.
All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") unless otherwise noted. Comparisons shown in this release are to the same period in the prior year unless otherwise noted.
CEO COMMENTARY AND OUTLOOK
Chief Executive Officer Jason Kulas stated, “We remain focused on meeting our customers’ short-term cash needs and providing access to affordable pre-owned general merchandise and jewelry, and we believe we have the right people, platform, footprint and cost structure in place to continue to strengthen and grow our core pawn business. Key highlights for the second quarter of fiscal 2021 included GAAP earnings per share of $0.10 and adjusted EPS of $0.17. The adjusted EPS was steady on a year-over-year basis despite lower pawn loans outstanding, pawn service charges and merchandise sales related to COVID-19 and related stimulus program headwinds. Merchandise sales gross profit continued to grow driven by improving inventory turns and rising merchandise margins, and we made further progress on our expense reduction initiatives. Looking ahead, even assuming store-level costs trend higher consistent with increasing transaction activity, we remain well positioned to drive higher operating margins as revenue rebuilds reflecting ongoing cost savings and simplification efforts across the business.

“In the near term, lingering impacts from the second stimulus package as well as an extended tax filing season have continued to temporarily reduce demand for pawn loans in the U.S., and in Latin America we continue to be challenged with constrained traffic, limited operating hours and increased remittances. That said, we remain confident pawn loans outstanding will rebuild given several ongoing initiatives. First, we continue to broaden customer engagement via our digital pawn servicing platform and expanded payment options. Second, our differentiated technology and data analytics capabilities are increasingly driving improving loan-to-value ratios and redemption rates. Third, we remain committed to optimizing team member development, productivity and retention through enhanced training and diversity and inclusion programs.

"Finally, we remain focused on increasingly leveraging our strong balance sheet to fund pawn loans outstanding growth and capitalize on strategic and financially accretive acquisitions to complement de novo store growth. We have opened 8 de novo stores in Latin America so far this year and recently completed the acquisition of 11 stores in the Houston, Texas metropolitan area.”

RESULTS FOR SECOND QUARTER OF FISCAL 2021
•Diluted earnings per share was $0.10, compared to $(0.74) in the prior-year quarter. On an adjusted basis1, diluted earnings per share was $0.17, consistent with the prior-year quarter. Income before taxes increased by $40.9 million to $6.8 million.
•Total revenues decreased $38.3 million or 17%, primarily due to a $16.8 million or 21% decrease in pawn service charges (PSC) and a $14.6 million or 11% decrease in merchandise sales.
•The decrease in PSC was due to a $34.9 million or 22% decrease in pawn loans outstanding (PLO). Pawn loan demand was significantly reduced due to the impacts of government stimulus which led to higher loan redemptions compared to the prior year quarter.
•Although merchandise sales decreased by $14.6 million, merchandise sales gross profit improved by 12%, driven by effective inventory management and less aged inventory leading to a 900 bps improvement in merchandise sales gross profit margin to 43%. The sales margin in the prior year quarter was negatively impacted by 200 bps due to greater sales volume of aged merchandise.
•Total operating expenses were down $55.0 million or 35% to $103.1 million primarily due to a $47.1 million impairment charge in the prior year quarter with no similar charge in the current year quarter. Excluding the prior year impairment charge, total operating expenses decreased by 7% or $7.9 million largely driven by the decrease in store expenses of $6.5 million or 7% due to a continued focus on expense control.


•Net inventory was $86.2 million, down 50% year-over-year and 9% sequentially. Inventory turnover improved to 3.1x from 2.1x and on a sequential basis improved 7% from 2.9x.
•Cash and cash equivalents at the end of the quarter was $335.6 million, an increase of $141.9 million or 73% from the prior-year quarter due to the year-over-year reduction in earning assets. On a sequential basis, cash and cash equivalents increased $45.2 million or 16%, due to higher loan redemptions and merchandise sales.
CONSOLIDATED RESULTS
Three Months Ended March 31
in millions, except per share amounts
As Reported
Adjusted1
2021202020212020
Total Revenues$184.9 $223.3 $185.5 $223.3 
Net Revenues$113.7 $127.4 $114.1 $127.4 
Income, Before Tax$6.8 $(34.1)$10.4 $16.6 
Net Income$5.3 $(40.9)$9.5 $9.4 
Diluted Earnings Per Share $0.10 $(0.74)$0.17 $0.17 
EBITDA$19.8 $(21.4)$20.0 $26.0 
•Total revenues decreased 17% to $184.9 million. PSC was down 21% to $63.4 million due to lower average PLO. On a sequential basis, PLO decreased 15% from the prior quarter, compared to an 18% sequential decrease in the same period of the prior year.
•Net revenues were down 11% to $113.7 million.
•Consolidated merchandise sales gross profit increased 12% to $49.4 million.
•Consolidated store expenses decreased 7% primarily due to a reduction of expenses in line with reduced activity at the store level. Total store count decreased by 16 stores or 2% since the end of the prior-year quarter due to the closure of 22 financial services stores in Canada. General and administrative expense decreased 10% to $13.8 million, due to a continued focus on expense control.
SEGMENT RESULTS
U.S. Pawn
•Total revenue was down 15% to $147.0 million, reflecting the impact of lower PLO driving a decrease in PSC revenue.
•PLO decreased 22% year-over-year to $95.4 million. On a sequential basis, PLO decreased 22% compared to a 23% sequential decrease in the prior-year quarter.
•PSC decreased 20% to $49.6 million as a result of lower average PLO for the quarter, offset by an increase in PLO yield to 180% from 173%.
•Merchandise sales declined 8% to $93.8 million. Inventory turnover improved to 2.9x from 2.0x. Merchandise sales gross profit was up 13% and related margins grew to 45% from 36%, above our targeted range. Aged general merchandise inventory improved to 1.6% from 6.4%.
•Net revenues decreased 9% to $92.1 million primarily due to lower PSC, partially offset by increased merchandise sales gross profit.
•Store expenses were down 6% to $63.7 million driven by a reduction in labor expense.
•Segment contribution increased $5.3 million to $25.8 million due to a $4.0 million decrease in store expenses and a $10.0 million impairment charge taken in the prior year quarter with no similar charge in the current year quarter, partially offset by a $8.7 million decrease in net revenues driven by the decrease in PSC described above.


Latin America Pawn
•Total revenue was down 22% to $37.8 million, reflecting the impact of lower PLO driving a decrease in PSC revenue in addition to decreased merchandise sales.
•PLO decreased 22% year-over-year to $29.9 million as the result of the impact of constrained traffic, limited operating hours and increased remittances from the U.S. On a sequential basis, PLO increased 15% compared to a 6% decrease in the prior-year quarter.
•PSC decreased 25% to $13.9 million (down 24% to $14.1 million on a constant currency basis) as a result of lower average PLO for the quarter, offset by an increase in yield to 199% from 184% in the prior year.
•Merchandise sales declined 22% to $21.4 million (down 20% to $21.8 million on a constant currency basis), but merchandise sales gross profit was up 10% and related margins were 35%, up from 25%. Inventory turnover improved to 4.0x from 2.5x. Aged general merchandise inventory decreased to 3.1% from 11.4%.
•Net revenues decreased 17% to $21.5 million (down 15% to $21.9 million on a constant currency basis) primarily due to lower PSC.
•Store expenses were down 5% to $17.5 million driven by a reduction in labor expense.
•Segment contribution for the quarter was $2.6 million ($2.7 million on a constant currency basis), compared to a segment loss of $30.1 million in the prior year quarter, primarily due to a $35.9 million impairment charge of goodwill, intangible and other assets taken in the prior year quarter with no similar charge in the current quarter.
•Latin America Pawn added four de novo stores in the quarter. New store openings typically pressure earnings in the short term as they ramp up, but drive higher profitability over time.
FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 has been filed with the Securities and Exchange Commission and 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, May 6, 2021, at 7:00 am Central Time to discuss fiscal second quarter results. Analysts and institutional investors may participate on the conference call by dialing (866) 269-4260, Conference ID: 5433254, or internationally by dialing (323) 347-3277. 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 loans in the United States and Latin America. We also sell merchandise, primarily collateral forfeited from pawn lending operations and pre-owned 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. 



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.
Contact:
Email: Investor_Relations@ezcorp.com
Phone: (512) 314-2220

1”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.


EZCORP, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,		Six Months Ended
March 31,
(in thousands, except per share amount)2021202020212020
Revenues:
Merchandise sales$115,225 $129,830 $223,008 $256,558 
Jewelry scrapping sales6,075 11,878 12,834 21,406 
Pawn service charges63,436 80,222 126,925 164,947 
Other revenues203 1,350 307 2,803 
Total revenues184,939 223,280 363,074 445,714 
Merchandise cost of goods sold65,790 85,776 130,333 169,852 
Jewelry scrapping cost of goods sold5,401 9,617 10,603 17,371 
Other cost of revenues— 525 — 1,061 
Net revenues113,748 127,362 222,138 257,430 
Operating expenses:
Store expenses81,149 87,648 160,458 176,923 
General and administrative13,771 15,341 26,281 34,179 
Impairment of goodwill, intangible and other assets— 47,060 — 47,060 
Depreciation and amortization8,089 7,762 15,661 15,495 
Loss on sale or disposal of assets and other112 261 90 1,005 
Total operating expenses103,121 158,072 202,490 274,662 
Operating income (loss)10,627 (30,710)19,648 (17,232)
Interest expense5,518 5,881 10,973 11,210 
Interest income(585)(941)(1,406)(1,784)
Equity in net (income) loss of unconsolidated affiliates(1,250)(1,184)(1,766)4,713 
Other expense (income)145 (341)(454)(243)
Income (loss) before income taxes6,799 (34,125)12,301 (31,128)
Income tax expense1,469 6,749 2,672 8,508 
Net income (loss)$5,330 $(40,874)$9,629 $(39,636)
Basic earnings (loss) per share $0.10 $(0.74)$0.17 $(0.71)
Diluted earnings (loss) per share $0.10 $(0.74)$0.17 $(0.71)
Weighted-average basic shares outstanding55,661 55,448 55,509 55,557 
Weighted-average diluted shares outstanding55,665 55,522 55,511 55,608 




EZCORP, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in thousands, except share and per share amounts)March 31,
2021		March 31,
2020		September 30,
2020
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents$335,638 $193,729 $304,542 
Restricted cash8,006 4,000 8,011 
Pawn loans125,268 160,179 131,323 
Pawn service charges receivable, net20,842 27,304 20,580 
Inventory, net86,214 173,251 95,891 
Notes receivable, net— 3,728 — 
Prepaid expenses and other current assets30,676 23,629 32,903 
Total current assets606,644 585,820 593,250 
Investments in unconsolidated affiliates34,961 27,993 32,458 
Property and equipment, net51,836 58,787 56,986 
Lease right-of-use asset170,479 206,839 183,809 
Goodwill258,199 257,222 257,582 
Intangible assets, net58,125 64,043 58,638 
Notes receivable, net1,164 1,132 1,148 
Deferred tax asset, net9,693 6,251 8,931 
Other assets5,152 5,045 4,221 
Total assets $1,196,253 $1,213,132 $1,197,023 
Liabilities and equity:
Current liabilities:
Current maturities of long-term debt, net $— $267 $213 
Accounts payable, accrued expenses and other current liabilities69,019 53,152 71,504 
Customer layaway deposits11,401 13,060 11,008 
Lease liability41,060 44,076 49,742 
Total current liabilities121,480 110,555 132,467 
Long-term debt, net257,143 244,288 251,016 
Deferred tax liability, net167 2,540 524 
Lease liability138,622 171,006 153,040 
Other long-term liabilities9,597 7,190 10,849 
Total liabilities527,009 535,579 547,896 
Commitments and Contingencies (Note 11)
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,873,568 as of March 31, 2021; 52,097,590 as of March 31, 2020; and 52,332,848 as of September 30, 2020528 521 521 
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,17130 30 30 
Additional paid-in capital399,439 406,171 398,475 
Retained earnings327,798 347,004 318,169 
Accumulated other comprehensive loss(58,551)(76,173)(68,068)
Total equity669,244 677,553 649,127 
Total liabilities and equity$1,196,253 $1,213,132 $1,197,023 



EZCORP, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Six Months Ended
March 31,
(in thousands)20212020
Operating activities:
Net income (loss)$9,629 $(39,636)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization15,661 15,495 
Amortization of debt discount and deferred financing costs6,754 6,493 
Amortization of lease right-of-use asset23,835 22,752 
Accretion of notes receivable discount and deferred compensation fee— (546)
Deferred income taxes(1,119)(3,698)
Impairment of goodwill and intangible assets— 47,060 
Other adjustments(250)1,810 
Provision for inventory reserve(5,265)(742)
Stock compensation expense1,618 2,722 
Equity in net (income) loss of unconsolidated affiliates(1,766)4,713 
Changes in operating assets and liabilities:
Service charges and fees receivable(106)4,027 
Inventory6,481 (539)
Prepaid expenses, other current assets and other assets3,874 (2,791)
Accounts payable, accrued expenses and other liabilities(43,436)(37,799)
Customer layaway deposits238 538 
Income taxes2,573 1,412 
Net cash provided by operating activities18,721 21,271 
Investing activities:
Loans made(269,468)(351,050)
Loans repaid177,888 229,054 
Recovery of pawn loan principal through sale of forfeited collateral109,019 158,792 
Capital expenditures, net(8,359)(12,160)
Net cash provided by investing activities9,080 28,636 
Financing activities:
Taxes paid related to net share settlement of equity awards(839)(1,458)
Payout of deferred consideration— (175)
Proceeds from borrowings, net of issuance costs— (109)
Payments on borrowings(871)(355)
Repurchase of common stock— (5,159)
Net cash used in financing activities (1,710)(7,256)
Effect of exchange rate changes on cash and cash equivalents and restricted cash5,000 (7,364)
Net increase in cash, cash equivalents and restricted cash31,091 35,287 
Cash, cash equivalents and restricted cash at beginning of period312,553 162,442 
Cash, cash equivalents and restricted cash at end of period$343,644 $197,729 
Supplemental disclosure of cash flow information
Cash and cash equivalents$335,638 $193,729 
Restricted cash8,006 4,000 
Total cash and cash equivalents and restricted cash$343,644 $197,729 
Non-cash investing and financing activities:
Pawn loans forfeited and transferred to inventory$99,285 $156,468 


EZCORP, Inc.
OPERATING SEGMENT RESULTS
(Unaudited)
Three Months Ended March 31, 2021
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$93,827 $21,398 $— $115,225 $— $115,225 
Jewelry scrapping sales3,581 2,494 — 6,075 — 6,075 
Pawn service charges49,577 13,859 — 63,436 — 63,436 
Other revenues29 — 174 203 — 203 
Total revenues147,014 37,751 174 184,939 — 184,939 
Merchandise cost of goods sold51,812 13,978 — 65,790 — 65,790 
Jewelry scrapping cost of goods sold3,149 2,252 — 5,401 — 5,401 
Other cost of revenues— — — — — — 
Net revenues92,053 21,521 174 113,748 — 113,748 
Segment and corporate expenses (income):
Store expenses63,657 17,492 — 81,149 — 81,149 
General and administrative— — — — 13,771 13,771 
Depreciation and amortization2,636 1,793 — 4,429 3,660 8,089 
Loss on sale or disposal of assets and other— 101 — 101 11 112 
Interest expense— — — — 5,518 5,518 
Interest income— (571)— (571)(14)(585)
Equity in net income of unconsolidated affiliates— — (1,250)(1,250)— (1,250)
Other expense— 85 9 94 51 145 
Segment contribution $25,760 $2,621 $1,415 $29,796 
Income (loss) before income taxes$29,796 $(22,997)$6,799 





Three Months Ended March 31, 2020
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$102,447 $27,383 $— $129,830 $— $129,830 
Jewelry scrapping sales9,659 2,219 — 11,878 — 11,878 
Pawn service charges61,700 18,522 — 80,222 — 80,222 
Other revenues31 25 1,294 1,350 — 1,350 
Total revenues173,837 48,149 1,294 223,280 — 223,280 
Merchandise cost of goods sold65,286 20,490 — 85,776 — 85,776 
Jewelry scrapping cost of goods sold7,800 1,817 — 9,617 — 9,617 
Other cost of revenues— 37 488 525 — 525 
Net revenues100,751 25,805 806 127,362 — 127,362 
Segment and corporate expenses (income):
Store expenses67,619 18,469 1,560 87,648 — 87,648 
General and administrative— — — — 15,341 15,341 
Impairment of goodwill, intangible and other assets10,000 35,936 1,124 47,060 — 47,060 
Depreciation and amortization2,711 1,940 23 4,674 3,088 7,762 
(Gain) loss on sale or disposal of assets and other— (123)— (123)384 261 
Interest expense— 402 154 556 5,325 5,881 
Interest income— (369)— (369)(572)(941)
Equity in net income of unconsolidated affiliates— — (1,184)(1,184)— (1,184)
Other (income) expense— (309)20 (289)(52)(341)
Segment contribution (loss)$20,421 $(30,141)$(891)$(10,611)
Loss before income taxes$(10,611)$(23,514)$(34,125)





Six Months Ended March 31, 2021
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$176,080 $46,928 $— $223,008 $— $223,008 
Jewelry scrapping sales7,585 5,249 — 12,834 — 12,834 
Pawn service charges99,797 27,128 — 126,925 — 126,925 
Other revenues51 7 249 307 — 307 
Total revenues283,513 79,312 249 363,074 — 363,074 
Merchandise cost of goods sold99,871 30,462 — 130,333 — 130,333 
Jewelry scrapping cost of goods sold5,993 4,610 — 10,603 — 10,603 
Other cost of revenues— — — — — 
Net revenues177,649 44,240 249 222,138 — 222,138 
Segment and corporate expenses (income):
Store expenses125,749 34,709 — 160,458 — 160,458 
General and administrative— — — — 26,281 26,281 
Depreciation and amortization5,372 3,653 — 9,025 6,636 15,661 
Loss on sale or disposal of assets and other27 — — 27 63 90 
Interest expense— — — — 10,973 10,973 
Interest income— (1,335)— (1,335)(71)(1,406)
Equity in net income of unconsolidated affiliates— — (1,766)(1,766)— (1,766)
Other (income) expense— (370)(201)(571)117 (454)
Segment contribution $46,501 $7,583 $2,216 $56,300 
Income (loss) before income taxes$56,300 $(43,999)$12,301 


Six Months Ended March 31, 2020
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$197,801 $58,757 $— $256,558 $— $256,558 
Jewelry scrapping sales15,776 5,630 — 21,406 — 21,406 
Pawn service charges125,790 39,157 — 164,947 — 164,947 
Other revenues67 50 2,686 2,803 — 2,803 
Total revenues339,434 103,594 2,686 445,714 — 445,714 
Merchandise cost of goods sold126,650 43,202 — 169,852 — 169,852 
Jewelry scrapping cost of goods sold12,555 4,816 — 17,371 — 17,371 
Other cost of revenues— 37 1,024 1,061 — 1,061 
Net revenues200,229 55,539 1,662 257,430 — 257,430 
Segment and corporate expenses (income):
Store expenses135,678 38,452 2,793 176,923 — 176,923 
General and administrative— — — — 34,179 34,179 
Impairment of goodwill, intangible and other assets10,000 35,936 1,124 47,060 — 47,060 
Depreciation and amortization5,576 3,829 57 9,462 6,033 15,495 
(Gain) loss on sale or disposal of assets and other— (95)— (95)1,100 1,005 
Interest expense— 430 324 754 10,456 11,210 
Interest income— (757)— (757)(1,027)(1,784)
Equity in net loss of unconsolidated affiliates— — 4,713 4,713 — 4,713 
Other (income) expense— (242)19 (223)(20)(243)
Segment contribution (loss)$48,975 $(22,014)$(7,368)$19,593 
Income (loss) before income taxes$19,593 $(50,721)$(31,128)


EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
 
Three Months Ended March 31, 2021
 U.S. PawnLatin America PawnConsolidated
As of December 31, 2020505 502 1,007 
New locations opened— 4 4 
As of March 31, 2021505 506 1,011 
 
Three Months Ended March 31, 2020
 U.S. PawnLatin America PawnOther InternationalConsolidated
As of December 31, 2019512 484 22 1,018 
New locations opened— 9 — 9 
As of March 31, 2020512 493 22 1,027 
 
Six Months Ended March 31, 2021
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2020505 500 1,005 
New locations opened— 6 6 
Locations acquired— — — 
Locations sold, combined or closed— — — 
As of March 31, 2021505 506 1,011 
 
Six Months Ended March 31, 2020
 U.S. PawnLatin America PawnOther InternationalConsolidated
As of September 30, 2019512 480 22 1,014 
New locations opened— 13 — 13 
Locations acquired— — — — 
Locations sold, combined or closed— — — — 
As of March 31, 2020512 493 22 1,027 


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 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 six months ended March 31, 2021 and 2020 were as follows:
March 31,
Three Months Ended
March 31,
Six Months Ended
March 31,
202120202021202020212020
Mexican peso20.5 23.8 20.3 20.0 20.4 19.6 
Guatemalan quetzal7.6 7.6 7.6 7.5 7.6 7.5 
Honduran lempira23.7 24.4 23.8 24.3 23.9 24.3 
Peruvian sol3.7 3.4 3.6 3.4 3.6 3.3 
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
2021 Q22020 Q2
(in millions)
Net income (loss)$5.3 $(40.9)
Interest expense5.5 5.9 
Interest income(0.6)(0.9)
Income tax expense1.5 6.7 
Depreciation and amortization8.1 7.8 
EBITDA$19.8 $(21.4)



Total RevenuesNet RevenuesIncome Before TaxTax EffectNet IncomeDiluted EPS EBITDA
2021 Q2 Reported$184.9 $113.7 $6.8 $1.5 $5.3 $0.10 $19.8 
Acquisition expenses— — 0.2 — 0.2 — 0.2 
Non cash interest— — 3.4 0.8 2.6 0.05 — 
Non-recurring tax expense— — — (1.4)1.4 0.03 — 
Constant currency impact0.6 0.4 — — 0.1 (0.01)— 
2021 Q2 Adjusted$185.5 $114.1 $10.4 $0.9 $9.5 $0.17 $20.0 
Total RevenuesNet Revenues(Loss) Income Before TaxTax EffectNet (Loss) IncomeDiluted EPSEBITDA
2020 Q2 Reported$223.3 $127.4 $(34.1)$6.8 $(40.9)$(0.74)$(21.4)
Termination of non-core software project— — 0.5 (0.1)0.4 0.01 0.5 
Lobbying expense— — 0.2 — 0.2 — 0.2 
Non-recurring tax expense— — — 1.9 1.9 0.03 — 
Impairment of goodwill, intangible assets and other— — 47.1 (1.7)45.4 0.83 47.1 
Non cash interest— — 3.3 (0.7)2.6 0.05 — 
Constant currency impact— — (0.3)— (0.3)(0.01)(0.3)
2020 Q2 Adjusted$223.3 $127.4 $16.6 $7.2 $9.4 $0.17 $26.0 



2021 Q2:
U.S. Dollar AmountPercentage Change YOY
(in millions)
Consolidated revenue $184.9 (17)%
Currency exchange rate fluctuations0.6 
Constant currency consolidated revenue$185.5 (17)%
Consolidated net revenue $113.7 (11)%
Currency exchange rate fluctuations0.4 
Constant currency consolidated net revenue$114.1 (10)%
Consolidated net inventory$86.2 (50)%
Currency exchange rate fluctuations(1.7)
Constant currency consolidated net inventory$84.5 (51)%
Latin America Pawn net revenue $21.5 (17)%
Currency exchange rate fluctuations0.4 
Constant currency Latin America Pawn net revenue $21.9 (15)%
Latin America Pawn PLO$29.9 (22)%
Currency exchange rate fluctuations(2.8)
Constant currency Latin America Pawn PLO$27.1 (29)%
Latin America Pawn PSC revenues $13.9 (25)%
Currency exchange rate fluctuations0.2 
Constant currency Latin America Pawn PSC revenues $14.1 (24)%
Latin America Pawn merchandise sales $21.4 (22)%
Currency exchange rate fluctuations0.4 
Constant currency Latin America Pawn merchandise sales $21.8 (20)%
Latin America Pawn segment profit before tax$2.6 109 %
Currency exchange rate fluctuations0.1 
Constant currency Latin America Pawn segment profit before tax$2.7 (54)%