EX-99.1 2 a2021-q3pressreleaseex991.htm EX-99.1 Document

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EZCORP Reports Third Quarter Fiscal 2021 Results
Pawn Loans Outstanding of $157.2 million, Net Revenue of $108 million, Net Loss of $2.6 million - All Year-Over-Year Improvements
Austin, Texas (August 4, 2021) — 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, 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, “During the quarter, we completed the acquisition of 128 Cash Apoyo Efectivo stores in Mexico, our largest acquisition to date in terms of store-count, solidifying our position as the second largest for-profit pawn operator in Mexico. We also acquired 11 stores in the Houston, Texas area and opened four de novo stores in Latin America, bringing our total store count to 1,143 at the end of the quarter, 627 (55%) of which are in Latin America.

"The third quarter was a solid quarter in which we continued to make significant strides in strengthening and growing our core pawn business. Despite lingering transitory COVID-related impacts, including government stimulus programs in the U.S., we continued to drive meaningful improvements across core operating metrics. We achieved our highest quarter-ending balance of PLO since the beginning of the pandemic, up 25% on a sequential basis and 39% compared to a year ago. While merchandise sales volumes were down 21% from their peak pandemic levels a year ago, we delivered a 6% increase in sales gross profit through effective inventory management and higher margins. These positive results reflect the relentless focus of our store teams on meeting our customers’ needs and executing the fundamentals.
“Net Income improved from a loss of $5.5 million to a loss of $2.6 million, while adjusted EBITDA more than doubled, reflecting not only the improvement in core operating metrics, but also our ongoing commitment to expense management and efficiency. We remain on track to realize annualized cost savings of more than $14.0 million for fiscal 2021 even assuming store-level expenses trend higher as transaction volumes accelerate.
“Looking ahead, we remain well positioned to continue our trend of improving financial performance, and are excited about the increasing earnings power of the platform. Pawn transaction activity continues to rebuild, driving PLO balances closer to pre-pandemic levels, which will drive accelerating pawn service charge revenue in the coming quarters given the natural lag between pawn originations and related fees. In addition, we remain on track to realize meaningful cost savings this year and beyond, even assuming store-level expenses trend higher to meet accelerating transaction volumes. And, we maintain a strong and liquid balance sheet to fund accelerating pawn demand and capitalize on acquisition opportunities that further enhance our scale-enabled and geographically diverse footprint and generate strong returns on investment.”
CONSOLIDATED RESULTS
Three Months Ended June 30
in millions, except per share amounts
As Reported
Adjusted1
2021202020212020
Total Revenues$174.0 $210.2 $169.6 $210.2 
Net Revenues$108.0 $102.2 $105.5 $104.4 
(Loss) Income, Before Tax$(0.8)$(10.2)$3.2 $(3.9)
Net Loss$(2.6)$(5.5)$(1.7)$(1.1)
Diluted Loss Per Share $(0.05)$(0.10)$(0.03)$(0.02)
EBITDA$11.7 $2.2 $12.0 $5.3 


•Diluted loss per share was $0.05, compared to a diluted loss per share of $0.10 in the prior-year quarter. On an adjusted basis1, diluted loss per share was $0.03, compared to diluted loss per share of $0.02 in the prior-year quarter.
•Income before taxes improved $9.5 million or 93% from a loss of $10.2 million to a loss of $0.8 million. Adjusted EBITDA increased $6.7 million or 126% from $5.3 million to $12.0 million.
•Pawn loans outstanding (PLO) increased to $157.2 million up 39% from the prior-year quarter and 25% on a sequential basis. On a same store basis, PLO increased 34% year-over-year and 21% sequentially.
•Net revenues increased $5.8 million or 6% while total revenues decreased $36.2 million or 17%.
•Merchandise sales gross profit increased by 6%, even though merchandise sales decreased by $28.7 million or 21% as a result of effective inventory management. Merchandise sales gross profit margin was 44%, a 1,100 bps improvement over the prior-year quarter (which was adversely impacted by a cost of goods sold adjustment for merchandise lost during looting at 30 U.S. stores during that quarter) and 100 bps over the immediately preceding quarter.
•PSC increased $8.0 million or 15% due to an increase in the average PLO balance during the quarter.
•Jewelry scrapping sales decreased $14.6 million or 72% and jewelry scrapping sales gross profit decreased $3.9 million or 95%. Jewelry scrapping sales gross profit margin decreased to 4% from 20%. This reflects our strategy of focusing on selling jewelry at higher retail margins than the scrapping process provides.
•Net inventory was $92.2 million, down 25% year-over-year and 7% sequentially. Inventory turnover improved to 3.1x from 2.9x.
•Total operating expenses were down $2.1 million or 2% to $104.3 million. Store expenses decreased 1% even though store count grew by 11%. In addition, general and administrative expenses decreased $1.6 million or 10% due to continued focus on expense control initiatives implemented since the fourth quarter of 2020.
•Cash and cash equivalents at the end of the quarter was $283.7 million, down $27.5 million or 9% year-over-year and $52.0 million or 15% on a sequential basis. The decrease is primarily due to the increase in PLO and the acquisition of new stores.
SEGMENT RESULTS
U.S. Pawn
•PLO increased 35% year-over-year to $117.2 million. On a sequential basis, PLO increased 23% compared to a 29% sequential decrease in the prior-year quarter. On a same store basis, PLO increased 34% year-over-year and 22% sequentially.
•Total revenue was down 25% to $130.4 million, while net revenues decreased 3% to $83.3 million.
•Merchandise sales and same store sales declined 27% to $84.5 million, but merchandise sales gross profit was down only 3%, reflecting increased gross margins of 46% compared to 35% in the prior-year-quarter (37% when excluding a loss from looting of $2.2 million from merchandise cost of goods sold in the prior-year-quarter). Aged general merchandise inventory as a percentage of total inventory improved to 1.2% from 4.9%.
•PSC increased 7% to $44.0 million as a result of higher average PLO for the quarter.
•Jewelry scrapping sales decreased $15.2 million or 89% and jewelry scrapping sales gross profit decreased $4.2 million or 99% Jewelry scrapping sales gross profit margin decreased to 2% from 25%.
•Net inventory was down $20.9 million or 23% year-over-year and 1% sequentially. Inventory turnover decreased to 2.8x from 3.2x.
•Store expenses were down 6% to $62.5 million driven by a reduction in labor expense.



•Segment contribution increased $1.6 million to $18.1 million. When excluding the looting charge taken in the prior year quarter, segment contribution decreased $0.6 million.
•Segment store count increased by 11 during the quarter, due to the acquisition of 11 pawn stores in the Houston, Texas area.
Latin America Pawn
•PLO increased 51% year-over-year to $40.0 million (36% on constant currency basis). On a sequential basis, PLO increased 34% compared to a 31% sequential decrease in the prior-year quarter. On a same store basis, PLO increased 32% year-over-year and 17% sequentially.
•Total revenue was up 25% to $43.5 million (12% on a constant currency basis), while net revenues increased 59% to $24.7 million (43% on a constant currency basis).
•Merchandise sales grew 15% to $23.3 million (up 3% to $20.8 million on a constant currency basis) and same store sales grew 8% (down 4% on a constant currency basis). Merchandise sales gross profit was up 91%, reflecting significantly improved margins of 35% compared to 21% in the prior-year quarter. Aged general merchandise as a percentage of total inventory improved to 0.9% from 18.1%.
•PSC increased $5.0 million to $16.4 million (up 30% to $14.8 million on a constant currency basis) as a result of higher average PLO for the quarter.
•Net inventory was down $9.9 million or 30% year-over-year (38% on a constant currency basis), but up 41% sequentially. Inventory turnover improved to 4.0x from 2.2x.
•Store expenses were up $4.3 million or 28% ($2.2 million or 15% on a constant currency basis) primarily due to an increase in transaction volume and costs resulting from the re-opening of stores impacted by the COVID-19 pandemic last year.
•Segment contribution was $3.6 million ($3.2 million on a constant currency basis), compared to a segment loss of $0.7 million in the prior year quarter.
•Segment store count increased by 121 during the quarter, reflecting the acquisition of 128 Cash Apoyo Efectivo stores, the addition of four de novo stores and the closure of 11 stores in Peru.
FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended June 30, 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, August 5, 2021, at 7:00 am Central Time to discuss fiscal third quarter results. Analysts and institutional investors may participate on the conference call by dialing (866) 269-4262, Conference ID: 8885759, or internationally by dialing (323) 347-3281. 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. 



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
June 30,		Nine Months Ended
June 30,
(in thousands, except per share amount)2021202020212020
Revenues:
Merchandise sales$107,808 $136,537 $330,816 $393,095 
Jewelry scrapping sales5,673 20,303 18,507 41,709 
Pawn service charges60,431 52,460 187,356 217,407 
Other revenues121 924 428 3,727 
Total revenues174,033 210,224 537,107 655,938 
Merchandise cost of goods sold60,539 91,859 190,872 261,711 
Jewelry scrapping cost of goods sold5,473 16,158 16,076 33,529 
Other cost of revenues— 32 — 1,093 
Net revenues108,021 102,175 330,159 359,605 
Operating expenses:
Store expenses81,803 82,341 242,261 259,264 
General and administrative14,589 16,176 40,870 50,355 
Impairment of goodwill, intangible and other assets— — — 47,060 
Depreciation and amortization7,419 7,679 23,080 23,174 
Loss on sale or disposal of assets and other— 255 90 1,260 
Other charges497 — 497 — 
Total operating expenses104,308 106,451 306,798 381,113 
Operating income (loss)3,713 (4,276)23,361 (21,508)
Interest expense5,569 5,379 16,542 16,589 
Interest income(512)(628)(1,918)(2,412)
Equity in net (income) loss of unconsolidated affiliates(643)1,183 (2,409)5,896 
Other expense (income)65 28 (389)(215)
(Loss) income before income taxes(766)(10,238)11,535 (41,366)
Income tax expense (benefit)1,804 (4,751)4,476 3,757 
Net (loss) income$(2,570)$(5,487)$7,059 $(45,123)
Basic (loss) earnings per share $(0.05)$(0.10)$0.13 $(0.81)
Diluted (loss) earnings per share $(0.05)$(0.10)$0.13 $(0.81)
Weighted-average basic shares outstanding55,898 55,068 55,639 55,395 
Weighted-average diluted shares outstanding55,898 55,068 55,653 55,395 




EZCORP, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)June 30,
2021		June 30,
2020		September 30,
2020
(Unaudited)
Assets:
Current assets:
Cash and cash equivalents$283,668 $311,130 $304,542 
Restricted cash13,795 4,000 8,011 
Pawn loans157,155 113,290 131,323 
Pawn service charges receivable, net24,965 17,432 20,580 
Inventory, net92,242 123,112 95,891 
Notes receivable, net— 3,866 — 
Prepaid expenses and other current assets28,343 25,754 32,903 
Total current assets600,168 598,584 593,250 
Investments in unconsolidated affiliates35,387 29,483 32,458 
Property and equipment, net55,630 58,098 56,986 
Lease right-of-use asset185,467 204,591 183,809 
Goodwill283,619 257,326 257,582 
Intangible assets, net61,922 65,003 58,638 
Notes receivable, net1,173 1,140 1,148 
Deferred tax asset, net10,292 5,505 8,931 
Other assets4,992 4,572 4,221 
Total assets $1,238,650 $1,224,302 $1,197,023 
Liabilities and equity:
Current liabilities:
Current maturities of long-term debt, net $— $268 $213 
Accounts payable, accrued expenses and other current liabilities84,966 58,358 71,504 
Customer layaway deposits11,884 11,902 11,008 
Lease liability47,241 48,840 49,742 
Total current liabilities144,091 119,368 132,467 
Long-term debt, net260,632 247,618 251,016 
Deferred tax liability, net1,309 2,165 524 
Lease liability149,342 167,716 153,040 
Other long-term liabilities10,058 7,523 10,849 
Total liabilities565,432 544,390 547,896 
Commitments and Contingencies (Note 13)
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 53,086,438 as of June 30, 2021; 52,097,590 as of June 30, 2020; and 52,332,848 as of September 30, 2020530 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 capital402,522 408,601 398,475 
Retained earnings325,228 341,517 318,169 
Accumulated other comprehensive loss(55,092)(70,757)(68,068)
Total equity673,218 679,912 649,127 
Total liabilities and equity$1,238,650 $1,224,302 $1,197,023 



EZCORP, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Nine Months Ended
June 30,
(in thousands)20212020
Operating activities:
Net income (loss)$7,059 $(45,123)
Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization23,080 23,174 
Amortization of debt discount and deferred financing costs10,243 9,814 
Amortization of lease right-of-use asset35,885 34,265 
Accretion of notes receivable discount and deferred compensation fee— (688)
Deferred income taxes(576)(3,327)
Impairment of goodwill and intangible assets— 47,060 
Other adjustments(331)2,128 
Provision for inventory reserve(6,812)(4,477)
Stock compensation expense3,156 5,093 
Equity in net (income) loss of unconsolidated affiliates(2,409)5,896 
Changes in operating assets and liabilities, net of business acquisitions:
Service charges and fees receivable(2,832)14,076 
Inventory5,382 12,467 
Prepaid expenses, other current assets and other assets7,908 (3,348)
Accounts payable, accrued expenses and other liabilities(51,565)(40,450)
Customer layaway deposits511 (709)
Income taxes4,423 514 
Net cash provided by operating activities33,122 56,365 
Investing activities:
Loans made(423,450)(442,752)
Loans repaid260,536 321,718 
Recovery of pawn loan principal through sale of forfeited collateral155,595 248,290 
Capital expenditures, net(14,635)(20,867)
Acquisitions, net of cash acquired(15,132)— 
Principal collections on notes receivable— 4,000 
Net cash (used in) provided by investing activities(37,086)110,389 
Financing activities:
Taxes paid related to net share settlement of equity awards(839)(1,458)
Payout of deferred consideration— (350)
Proceeds from borrowings, net of issuance costs— (106)
Payments on assumed debt and other borrowings(15,363)(316)
Repurchase of common stock— (5,158)
Net cash used in financing activities (16,202)(7,388)
Effect of exchange rate changes on cash and cash equivalents and restricted cash5,076 (6,678)
Net (decrease) increase in cash, cash equivalents and restricted cash(15,090)152,688 
Cash, cash equivalents and restricted cash at beginning of period312,553 162,442 
Cash, cash equivalents and restricted cash at end of period$297,463 $315,130 
Supplemental disclosure of cash flow information
Cash and cash equivalents$283,668 $311,130 
Restricted cash13,795 4,000 
Total cash and cash equivalents and restricted cash$297,463 $315,130 
Non-cash investing and financing activities:
Pawn loans forfeited and transferred to inventory$145,839 $200,160 
Transfer of consideration for current period acquisition1,547 — 
Acquisition earn-out contingency4,608 — 
Accrued acquisition consideration held as restricted cash5,824 — 


EZCORP, Inc.
OPERATING SEGMENT RESULTS
(Unaudited)
Three Months Ended June 30, 2021
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$84,465 $23,343 $— $107,808 $— $107,808 
Jewelry scrapping sales1,908 3,765 — 5,673 — 5,673 
Pawn service charges44,039 16,392 — 60,431 — 60,431 
Other revenues32 — 89 121 — 121 
Total revenues130,444 43,500 89 174,033 — 174,033 
Merchandise cost of goods sold45,310 15,229 — 60,539 — 60,539 
Jewelry scrapping cost of goods sold1,878 3,595 — 5,473 — 5,473 
Other cost of revenues— — — — — — 
Net revenues83,256 24,676 89 108,021 — 108,021 
Segment and corporate expenses (income):
Store expenses62,507 19,296 — 81,803 — 81,803 
General and administrative— — — — 14,589 14,589 
Depreciation and amortization2,600 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)





Three Months Ended June 30, 2020
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$116,258 $20,279 $— $136,537 $136,537 
Jewelry scrapping sales17,129 3,174 — 20,303 — 20,303 
Pawn service charges41,069 11,391 — 52,460 — 52,460 
Other revenues40 — 884 924 — 924 
Total revenues174,496 34,844 884 210,224 — 210,224 
Merchandise cost of goods sold75,838 16,021 — 91,859 — 91,859 
Jewelry scrapping cost of goods sold12,875 3,283 — 16,158 — 16,158 
Other cost of revenues— 32 — 32 — 32 
Net revenues85,783 15,508 884 102,175 — 102,175 
Segment and corporate expenses (income):
Store expenses66,243 15,041 1,057 82,341 — 82,341 
General and administrative— — — — 16,176 16,176 
Depreciation and amortization2,749 1,647 3 4,399 3,280 7,679 
(Gain) loss on sale or disposal of assets and other234 23 (20)237 18 255 
Interest expense— — 140 140 5,239 5,379 
Interest income— (404)— (404)(224)(628)
Equity in net income of unconsolidated affiliates— — 1,183 1,183 — 1,183 
Other (income) expense— (61)(5)(66)94 28 
Segment contribution (loss)$16,557 $(738)$(1,474)$14,345 
Loss before income taxes$14,345 $(24,583)$(10,238)





Nine Months Ended June 30, 2021
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$260,545 $70,271 $— $330,816 $— $330,816 
Jewelry scrapping sales9,493 9,014 — 18,507 — 18,507 
Pawn service charges143,836 43,520 — 187,356 — 187,356 
Other revenues83 7 338 428 — 428 
Total revenues413,957 122,812 338 537,107 — 537,107 
Merchandise cost of goods sold145,181 45,691 — 190,872 — 190,872 
Jewelry scrapping cost of goods sold7,871 8,205 — 16,076 — 16,076 
Net revenues260,905 68,916 338 330,159 — 330,159 
Segment and corporate expenses (income):
Store expenses188,256 54,005 — 242,261 — 242,261 
General and administrative— — — — 40,870 40,870 
Depreciation and amortization7,972 5,459 — 13,431 9,649 23,080 
Loss on sale or disposal of assets and other27 — — 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 


Nine Months Ended June 30, 2020
(in thousands)U.S. PawnLatin America PawnOther InternationalTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$314,059 $79,036 $— $393,095 $— $393,095 
Jewelry scrapping sales32,905 8,804 — 41,709 — 41,709 
Pawn service charges166,859 50,548 — 217,407 — 217,407 
Other revenues107 50 3,570 3,727 — 3,727 
Total revenues513,930 138,438 3,570 655,938 — 655,938 
Merchandise cost of goods sold202,488 59,223 — 261,711 — 261,711 
Jewelry scrapping cost of goods sold25,430 8,099 — 33,529 — 33,529 
Other cost of revenues— 69 1,024 1,093 — 1,093 
Net revenues286,012 71,047 2,546 359,605 — 359,605 
Segment and corporate expenses (income):
Store expenses201,921 53,493 3,850 259,264 — 259,264 
General and administrative— — — — 50,355 50,355 
Impairment of goodwill, intangible and other assets10,000 35,936 1,124 47,060 — 47,060 
Depreciation and amortization8,325 5,476 60 13,861 9,313 23,174 
(Gain) loss on sale or disposal of assets and other234 (72)(20)142 1,118 1,260 
Interest expense— 430 464 894 15,695 16,589 
Interest income— (1,161)— (1,161)(1,251)(2,412)
Equity in net loss of unconsolidated affiliates— 5,896 5,896 — 5,896 
Other (income) expense— (303)14 (289)74 (215)
Segment contribution (loss)$65,532 $(22,752)$(8,842)$33,938 
Income (loss) before income taxes$33,938 $(75,304)$(41,366)


EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
 
Three Months Ended June 30, 2021
 U.S. PawnLatin America PawnConsolidated
As of March 31, 2021505 506 1,011 
New locations opened— 4 4 
Locations acquired11 128 139 
Locations sold, combined or closed— (11)(11)
As of June 30, 2021516 627 1,143 
 
Three Months Ended June 30, 2020
 U.S. PawnLatin America PawnOther InternationalConsolidated
As of March 31, 2020512 493 22 1,027 
New locations opened— 3 — 3 
Locations sold, combined or closed(1)— — (1)
As of June 30, 2020
511 496 22 1,029 
 
Nine Months Ended June 30, 2021
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2020505 500 1,005 
New locations opened— 10 10 
Locations acquired11 128 139 
Locations sold, combined or closed— (11)(11)
As of June 30, 2021516 627 1,143 
 
Nine Months Ended June 30, 2020
 U.S. PawnLatin America PawnOther InternationalConsolidated
As of September 30, 2019512 480 22 1,014 
New locations opened— 16 — 16 
Locations sold, combined or closed(1)— — (1)
As of June 30, 2020511 496 22 1,029 


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, 2021 and 2020 were as follows:
June 30,
Three Months Ended
June 30,
Nine Months Ended
June 30,
202120202021202020212020
Mexican peso19.9 23.1 20.0 23.3 20.3 20.8 
Guatemalan quetzal7.6 7.5 7.6 7.5 7.6 7.5 
Honduran lempira23.6 24.4 23.7 24.4 23.8 24.3 
Peruvian sol3.9 3.5 3.8 3.4 3.7 3.4 
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 Q32020 Q3
(in millions)
Net loss$(2.6)$(5.5)
Interest expense5.6 5.4 
Interest income(0.5)(0.6)
Income tax expense1.8 (4.8)
Depreciation and amortization7.4 7.7 
EBITDA$11.7 $2.2 



Total RevenuesNet RevenuesIncome Before TaxTax EffectNet IncomeDiluted EPS EBITDA
2021 Q3 Reported$174.0 $108.0 $(0.8)$1.8 $(2.6)$(0.05)$11.7 
Acquisition expenses— — 0.3 0.2 0.1 — 0.3 
Peru reserve— — 0.5 0.4 0.1 — — 
Non cash net interest expense— — 3.5 2.5 1.0 0.02 — 
Constant currency impact(4.4)(2.5)(0.3)— (0.3)— — 
2021 Q3 Adjusted$169.6 $105.5 $3.2 $4.9 $(1.7)$(0.03)$12.0 
Total RevenuesNet Revenues(Loss) Income Before TaxTax EffectNet (Loss) IncomeDiluted EPSEBITDA
2020 Q3 Reported$210.2 $102.2 $(10.2)$(4.7)$(5.5)$(0.10)$2.2 
COVID-19 expenses— — 0.5 0.1 0.4 0.01 0.5 
Civil unrest - asset disposal— — 0.2 — 0.2 — 0.2 
Civil unrest - looting— — 2.2 0.7 1.5 0.03 2.2 
Currency exchange rate fluctuations— — 0.6 0.1 0.5 0.01 0.5 
Non cash interest— — 3.2 1.0 2.2 0.04 — 
Constant currency impact— 2.2 (0.4)— (0.4)(0.01)(0.3)
2020 Q3 Adjusted$210.2 $104.4 $(3.9)$(2.8)$(1.1)$(0.02)$5.3 



2021 Q3:
U.S. Dollar AmountPercentage Change YOY
(in millions)
Consolidated revenue $174.0 (17)%
Currency exchange rate fluctuations(4.4)
Constant currency consolidated revenue$169.6 (19)%
Consolidated net revenue $108.0 6 %
Currency exchange rate fluctuations(2.5)
Constant currency consolidated net revenue$105.5 1 %
Consolidated net inventory$92.2 (25)%
Currency exchange rate fluctuations(2.6)
Constant currency consolidated net inventory$89.6 (27)%
Latin America Pawn net revenue $24.7 59 %
Currency exchange rate fluctuations(2.5)
Constant currency Latin America Pawn net revenue $22.2 44 %
Latin America Pawn PLO$40.0 51 %
Currency exchange rate fluctuations(4.0)
Constant currency Latin America Pawn PLO$36.0 36 %
Latin America Pawn PSC revenues $16.4 44 %
Currency exchange rate fluctuations(1.6)
Constant currency Latin America Pawn PSC revenues $14.8 30 %
Latin America Pawn merchandise sales $23.3 15 %
Currency exchange rate fluctuations(2.5)
Constant currency Latin America Pawn merchandise sales $20.8 2 %
Latin America Pawn segment profit before tax$3.6 583 %
Currency exchange rate fluctuations(0.4)
Constant currency Latin America Pawn segment profit before tax$3.2 535 %