EX-99.1 2 a2022-q4pressreleaseex991.htm EX-99.1 Document

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EZCORP Reports Fourth Quarter and Full Year 2022 Results
Record Year End Pawn Loans Outstanding Driving Revenue and Earnings Growth
Austin, Texas (November 16, 2022) — EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its fourth quarter and full year ended September 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.
FOURTH QUARTER AND FULL YEAR HIGHLIGHTS
•Pawn loans outstanding (PLO) up 19% to a record-high of $210.0 million.
•Total revenue increased 21% for the quarter and for the full year, while gross profit1 increased 15% for the quarter and 18% for the full year.
•Merchandise sales gross margin remains within our targeted range at 37% for the quarter and 38% for the full year.
•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.
•Diluted earnings per share of $0.11 for the quarter was up from $0.03 and for the year was $0.70 up significantly from $0.15. On an adjusted basis2, diluted earnings per share for the quarter was $0.15, compared to $0.11, and for the year was $0.75, compared to $0.38.
•Return on earning assets (ROEA) remains strong at 155% for the quarter and 167% for the full year.
CEO COMMENTARY AND OUTLOOK

Chief Executive Officer Lachie Given stated, “We continue to execute on our three-year strategic plan and closed the fiscal year with another outstanding quarter. PLO hit a record high driving increases in pawn service charges. Strong sales margins with a relentless focus on optimizing store operating costs translated into a significant increase in earnings for the fourth quarter and full year. Inflation and other economic pressures have had a significant impact on our customers' finances, and we are able to help them by providing a unique and essential service to address their short-term cash needs. In addition, we provide an environmentally friendly retail experience at our neighborhood re-commerce stores for our expanding customer base of environmentally and cost-conscious consumers.

“During the fourth quarter, we opened 16 de novo stores in Latin America bringing the total for 2022 to 28. In the US, we acquired three stores during fiscal 2022 and another nine stores in the Houston, Texas area after the end of the year. The rollout of the EZ+ Rewards program continues to be a success, now yielding 1.9 million members across all geographies.

“We are pleased that our strong cash flow and balance sheet has enabled us to return value to shareholders through share repurchases of $3.0 million as of November 15.

“During the quarter we celebrated a team member appreciation week, created engagement action plans on both the enterprise level and team level, and conducted leadership workshop sessions to improve bench strength. We believe we have the best, most passionate, productive team members and we are focused on recruitment, retention and incentivization. They are responsible for delivering the operating performance that underpins our strong financial results,” concluded Given.



CONSOLIDATED RESULTS
Three Months Ended September 30
As Reported
Adjusted2
in millions, except per share amounts2022202120222021
Total revenues$233.4 $192.4 $233.9 $192.4 
Gross profit1
$137.6 $119.3 $137.9 $119.3 
Income before tax$13.2 $4.5 $12.9 $9.4 
Net income$7.3 $1.6 $10.6 $6.2 
Diluted earnings per share $0.11 $0.03 $0.15 $0.11 
EBITDA (non-GAAP measure)$24.8 $17.2 $24.6 $18.5 
Twelve Months Ended September 30As Reported
Adjusted2
in millions, except per share amounts2022202120222021
Total revenues$886.2 $729.6 $887.4 $729.6 
Gross profit1
$528.1 $449.5 $528.7 $449.5 
Income before tax$67.7 $16.1 $71.6 $31.6 
Net income$50.2 $8.6 $54.3 $21.4 
Diluted earnings per share $0.70 $0.15 $0.75 $0.38 
EBITDA$109.0 $66.4 $112.9 $68.2 
•Diluted earnings per share were $0.11 for the fourth quarter, up from $0.03. On an adjusted basis, diluted earnings per share were $0.15, up from $0.11. For the full year, diluted earnings per share was $0.70, compared to $0.15. On an adjusted basis, diluted earnings per share for the year were $0.75, compared to $0.38.
•For the fourth quarter, income before taxes improved to $13.2 million from $4.5 million, while adjusted EBITDA increased 33% to $24.6 million. For the full year, income before taxes improved to $67.7 million from $16.1 million and adjusted EBITDA increased 66% to $112.9 million.
•PLO increased 19% to $210.0 million, up $34.1 million. On a same-store basis3, PLO increased 19% to its highest level due to increased loan demand reflecting continuing recovery above pre-COVID levels.
•In the fourth quarter, total revenues increased 21% and gross profit increased 15%, reflecting improved pawn service charge (PSC) revenue and merchandise sales gross profit. Similarly for the full year, total revenues increased 21% and gross profit increased 18%.
•PSC increased 21% in the fourth quarter and 23% for the year as a result of higher average PLO.
•Merchandise sales gross margin remains within our targeted range at 37%, reflecting our commitment to improving the core business by decreasing aged general merchandise (less than 1% of total general merchandise inventory) and focusing on selling inventory in the first 90 days. For the full year, merchandise sales gross profit margin was 38%, compared to 42%.
•Net inventory increased 37%, reflecting a return towards normalized inventory levels. Inventory turnover remained strong at 2.6x for the quarter, down from 2.8x and decreased from 2.9x to 2.8x for the year.
•For the fourth quarter, store expenses increased 8%, primarily due to increased labor in-line with store activity and rent associated with lease renewals. On a same-store basis, store expenses increased 7%. In addition, general and administrative expenses increased 14%, primarily due to asset write-downs associated with IT infrastructure migration and corporate office sublease. For the full year, store expenses increased 8%, primarily due to increased labor in-line with store activity and rent associated with lease renewals. On a same-store basis, store expenses increased 4%. In addition, general and administrative expenses for the year increased 14%, primarily due to asset write-downs associated with IT infrastructure migration and corporate office sublease, litigation accrual, increased labor and software licensing costs.
•Cash and cash equivalents at the end of the quarter was $206.0 million, down 19% year-over-year. The decrease is primarily due to the increase in PLO and inventory, the acquisition of new stores, and strategic investments.


SEGMENT RESULTS
U.S. Pawn
•PLO continued to increase, ending the year at $163.5 million, up 20% and on a same store basis.
•In the fourth quarter, total revenue was up 25% and gross profit increased 18%, reflecting increasing PSC, higher sales and improved merchandise sales gross profit. For the full year, total revenues increased 19% and gross profit increased 16%, reflecting higher average PLO for the year driving higher PSC.
•PSC increased 25% in the fourth quarter and 22% for the year as a result of higher average PLO.
•During the fourth quarter, merchandise sales gross margin decreased to 40% from 43%. For the year, merchandise sales gross profit gross margins decreased 300 bps to 41%, reflecting a focus on improving retailing and lower levels of aged general merchandise inventory (which continues to be less than 1% of total merchandise inventory).
•Net inventory increased 40% reflecting a return towards normalized inventory levels. Inventory turnover decreased to 2.5x from 2.7x in the quarter and decreased to 2.6x from 2.7x for the year.
•In the fourth quarter, store expenses increased 9%, primarily due to increased labor in-line with store activity and rent associated with lease renewals. Similarly for the full year, store expenses increased 5% (4% on a same store basis).
•Segment contribution increased 49% to $31.0 million in the fourth quarter and increased 51% to $129.1 million for the year.
•Segment store count decreased by one store due to the net impact of the acquisition of three stores and consolidation of four stores during the year.
Latin America Pawn
•PLO improved to $46.6 million, up 17% (15% on constant currency basis). On a same store basis, PLO increased 15% (13% on a constant currency basis).
•In the fourth quarter, total revenue was up 13% and on a constant currency basis, while gross profit increased 8% and on a constant currency basis. For the year, total revenues were up 30% and on a constant currency basis, while gross profit increased by 23% and on a constant currency basis.
•PSC increased to $21.5 million, up 8% (9% on a constant currency basis) as a result of higher average PLO. Similarly for the full year, PSC increased 26% and on a constant currency basis.
•Merchandise sales gross margin decreased in the fourth quarter from 34% to 31%, and for the year it decreased 500 bps to 30%, reflecting a return to more normalized margins. Aged general merchandise inventory increased to 1.9% from 0.3% of total merchandise inventory.
•Net inventory increased 28% (26% on a constant currency basis) reflecting a return towards normalized inventory levels. Inventory turnover remains strong at 3.1x, down from 3.3x for the quarter and decreased for the year to 3.5x from 3.7x.
•In the fourth quarter, store expenses increased 5% (6% on a constant currency basis) primarily due to increased labor in-line with store activity. Same-store expenses increased $0.7 million or 3% (5% on a constant currency basis). For the year, store expenses increased 18% (18% on a constant currency basis) primarily due to increased labor in-line with store activity and rent associated with lease renewals and annual inflation adjustments. Same-store expenses increased 5% and on a constant currency basis).
•For the fourth quarter, segment contribution increased to $6.7 million, up 9% (10% on a constant currency basis). For the year, segment contribution was up 39% to $24.1 million (40% increase to $24.2 million on a constant currency basis). On an adjusted basis, segment contribution for the fourth quarter was $6.7 million, flat from prior year, and the increase for the year was 33% to $24.2 million.
•Segment store count increased by 28 de novo stores opened during the year.


FORM 10-K
EZCORP’s Annual Report on Form 10-K for the year ended September 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, November 17, 2022, at 7:00 am Central Time to discuss Fourth Quarter and Full Year Fiscal 2022 results. Analysts and institutional investors may participate on the conference call by dialing (844) 200-6205, Conference ID: 977401, 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 S&P 1000 Index and Nasdaq Composite Index. 
Follow us on social media:
Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
EZCORP Instagram Official https://www.instagram.com/ezcorp_official/
EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/
EZCORP Linked In https://www.linkedin.com/company/ezcorp/

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






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
Three Months Ended
September 30,		Twelve Months Ended
September 30,
(in thousands, except per share amounts)2022202120222021
(Unaudited)
Revenues:
Merchandise sales$133,276 $111,982 $532,886 $442,798 
Jewelry scrapping sales12,231 7,518 32,033 26,025 
Pawn service charges87,866 72,840 320,865 260,196 
Other revenues, net34 104 441 532 
Total revenues233,407 192,444 886,225 729,551 
Merchandise cost of goods sold83,858 66,346 329,382 257,218 
Jewelry scrapping cost of goods sold11,949 6,772 28,696 22,848 
Gross profit137,600 119,326 528,147 449,485 
Operating expenses:
Store expenses95,473 88,576 357,417 330,837 
General and administrative17,855 15,625 64,342 56,495 
Depreciation and amortization9,370 7,592 32,140 30,672 
(Gain) loss on sale or disposal of assets and other18 (7)(674)83 
Other charges— (268)— 229 
Total operating expenses122,716 111,518 453,225 418,316 
Operating income14,884 7,808 74,922 31,169 
Interest expense2,321 5,635 9,972 22,177 
Interest income(68)(559)(817)(2,477)
Equity in net income of unconsolidated affiliates(322)(1,394)(1,779)(3,803)
Other income(208)(401)(167)(790)
Income before income taxes13,161 4,527 67,713 16,062 
Income tax expense5,824 2,974 17,553 7,450 
Net income$7,337 $1,553 $50,160 $8,612 
Basic earnings per share $0.13 $0.03 $0.89 $0.15 
Diluted earnings per share $0.11 $0.03 $0.70 $0.15 
Weighted-average basic shares outstanding56,598 56,057 56,498 55,744 
Weighted-average diluted shares outstanding82,539 56,441 82,400 55,949 




EZCORP, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)September 30,
2022		September 30,
2021
Assets:
Current assets:
Cash and cash equivalents$206,028 $253,667 
Restricted cash8,341 9,957 
Pawn loans210,009 175,901 
Pawn service charges receivable, net33,476 29,337 
Inventory, net151,615 110,989 
Prepaid expenses and other current assets34,694 31,010 
Total current assets644,163 610,861 
Investments in unconsolidated affiliates37,733 37,724 
Other investments24,220 — 
Property and equipment, net56,725 53,811 
Right-of-use asset, net221,586 200,990 
Goodwill286,828 285,758 
Intangible assets, net56,819 62,104 
Notes receivable, net1,215 1,181 
Deferred tax asset, net12,145 9,746 
Other assets6,444 4,736 
Total assets $1,347,878 $1,266,911 
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable, accrued expenses and other current liabilities$84,509 $90,268 
Customer layaway deposits16,023 12,557 
Operating lease liabilities, current52,334 52,263 
Total current liabilities152,866 155,088 
Long-term debt, net312,903 264,186 
Deferred tax liability, net373 3,684 
Operating lease liabilities180,756 161,330 
Other long-term liabilities8,749 10,385 
Total liabilities655,647 594,673 
Commitments and Contingencies
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 53,454,885 as of September 30, 2022; 53,086,438 as of September 30, 2021; and 53,086,438 as of September 30, 2021
534 530 
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171
30 30 
Additional paid-in capital345,330 403,312 
Retained earnings402,006 326,781 
Accumulated other comprehensive loss(55,669)(58,415)
Total stockholders' equity692,231 672,238 
Total liabilities and stockholders' equity$1,347,878 $1,266,911 



EZCORP, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
Twelve Months Ended
September 30,
(in thousands)20222021
Operating activities:
Net income $50,160 $8,612 
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization32,140 30,672 
Amortization of debt discount and deferred financing costs1,433 13,797 
Amortization of lease right-of-use asset52,201 48,480 
Deferred income taxes4,945 3,283 
Other adjustments2,511 (185)
Provision for inventory reserve(2,253)(8,003)
Stock compensation expense5,053 3,946 
Equity in net income of unconsolidated affiliates(1,779)(3,803)
Changes in operating assets and liabilities:
Service charges and fees receivable(4,572)(7,332)
Inventory(15,341)371 
Prepaid expenses, other current assets and other assets3,238 7,373 
Accounts payable, accrued expenses and other liabilities(65,141)(54,209)
Customer layaway deposits3,359 1,256 
Income taxes(2,785)2,180 
Dividends from unconsolidated affiliates3,366 
Net cash provided by operating activities66,535 46,438 
Investing activities:
Loans made(740,057)(601,638)
Loans repaid410,523 351,092 
Recovery of pawn loan principal through sale of forfeited collateral274,423 208,551 
Capital expenditures, net(31,895)(23,601)
Acquisitions, net of cash acquired(1,850)(19,015)
Issuance of note receivable(1,000)— 
Investment in unconsolidated affiliates(6,927)— 
Investment in other investments(16,500)— 
Net cash used in investing activities(113,283)(84,611)
Financing activities:
Taxes paid related to net share settlement of equity awards(792)(839)
Payments on assumed debt and other borrowings— (15,414)
Repurchase of common stock(2,040)— 
Net cash used in financing activities (2,832)(16,253)
Effect of exchange rate changes on cash and cash equivalents and restricted cash325 5,497 
Net decrease in cash, cash equivalents and restricted cash(49,255)(48,929)
Cash, cash equivalents and restricted cash at beginning of period263,624 312,553 
Cash, cash equivalents and restricted cash at end of period$214,369 $263,624 


EZCORP, Inc.
OPERATING SEGMENT RESULTS

Three Months Ended September 30, 2022
(Unaudited)
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$95,811 $37,465 $— $133,276 $— $133,276 
Jewelry scrapping sales11,875 356 — 12,231 — 12,231 
Pawn service charges66,331 21,535 — 87,866 — 87,866 
Other revenues16 — 18 34 — 34 
Total revenues174,033 59,356 18 233,407 — 233,407 
Merchandise cost of goods sold57,911 25,947 — 83,858 — 83,858 
Jewelry scrapping cost of goods sold11,476 473 — 11,949 — 11,949 
Other cost of revenues— — — — — — 
Gross profit104,646 32,936 18 137,600 — 137,600 
Store expenses70,897 24,576 — 95,473 — 95,473 
General and administrative— — — — 17,855 17,855 
Depreciation and amortization2,685 2,055 — 4,740 4,630 9,370 
Gain on sale or disposal of assets and other51 (33)— 18 — 18 
Interest expense— — — — 2,321 2,321 
Interest income(1)(189)— (190)122 (68)
Equity in net income of unconsolidated affiliates— — (322)(322)— (322)
Other (income) expense— (185)37 (148)(60)(208)
Segment contribution$31,014 $6,712 $303 $38,029 
Income (loss) before income taxes$38,029 $(24,868)$13,161 





Three Months Ended September 30, 2021
(Unaudited)
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$80,950 $31,032 $— $111,982 $— $111,982 
Jewelry scrapping sales5,767 1,751 — 7,518 — 7,518 
Pawn service charges52,885 19,955 — 72,840 — 72,840 
Other revenues22 — 82 104 — 104 
Total revenues139,624 52,738 82 192,444 — 192,444 
Merchandise cost of goods sold45,858 20,488 — 66,346 — 66,346 
Jewelry scrapping cost of goods sold5,130 1,642 — 6,772 — 6,772 
Gross profit88,636 30,608 82 119,326 — 119,326 
Segment and corporate expenses (income):
Store expenses65,088 23,488 — 88,576 — 88,576 
General and administrative— — — — 15,625 15,625 
Depreciation and amortization2,678 1,912 — 4,590 3,002 7,592 
Gain on sale of disposal of assets and other— (6)— (6)(1)(7)
Other Charges— (268)— (268)— (268)
Interest expense— — — — 5,635 5,635 
Interest income— (197)— (197)(362)(559)
Equity in net income of unconsolidated affiliates— — (1,394)(1,394)— (1,394)
Other (income) expense— (465)10 (455)54 (401)
Segment contribution $20,870 $6,144 $1,466 $28,480 
Income (loss) before income taxes$28,480 $(23,953)$4,527 





Twelve Months Ended September 30, 2022
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$391,958 $140,928 $— $532,886 $— $532,886 
Jewelry scrapping sales25,739 6,294 — 32,033 — 32,033 
Pawn service charges240,982 79,883 — 320,865 — 320,865 
Other revenues83 247 111 441 — 441 
Total revenues658,762 227,352 111 886,225 — 886,225 
Merchandise cost of goods sold230,241 99,141 — 329,382 — 329,382 
Jewelry scrapping cost of goods sold22,755 5,941 — 28,696 — 28,696 
Gross profit405,766 122,270 111 528,147 — 528,147 
Segment and corporate expenses (income):
Store expenses266,114 91,303 — 357,417 — 357,417 
General and administrative— — — — 64,342 64,342 
Depreciation and amortization10,552 7,913 — 18,465 13,675 32,140 
Gain on sale or disposal of assets and other51 (37)— 14 (688)(674)
Interest expense— — — — 9,972 9,972 
Interest income(2)(815)— (817)— (817)
Equity in net income of unconsolidated affiliates— — (1,779)(1,779)— (1,779)
Other expense (income)— (148)52 (96)(71)(167)
Segment contribution$129,051 $24,054 $1,838 $154,943 
Income (loss) before income taxes$154,943 $(87,230)$67,713 


Twelve Months Ended September 30, 2021
(in thousands)U.S. PawnLatin America PawnOther InvestmentsTotal SegmentsCorporate ItemsConsolidated
Revenues:
Merchandise sales$341,495 $101,303 $— $442,798 $— $442,798 
Jewelry scrapping sales15,260 10,765 — 26,025 — 26,025 
Pawn service charges196,721 63,475 — 260,196 — 260,196 
Other revenues105 7 420 532 — 532 
Total revenues553,581 175,550 420 729,551 — 729,551 
Merchandise cost of goods sold191,039 66,179 — 257,218 — 257,218 
Jewelry scrapping cost of goods sold13,001 9,847 — 22,848 — 22,848 
Gross profit349,541 99,524 420 449,485 — 449,485 
Segment and corporate expenses (income):
Store expenses253,344 77,493 — 330,837 — 330,837 
General and administrative— — — — 56,495 56,495 
Depreciation and amortization10,650 7,371 — 18,021 12,651 30,672 
Loss on sale or disposal of assets and other27 (6)— 21 62 83 
Other Charges— 229 — 229 — 229 
Interest expense— — — — 22,177 22,177 
Interest income— (2,016)— (2,016)(461)(2,477)
Equity in net income of unconsolidated affiliates— — (3,803)(3,803)— (3,803)
Other (income) expense— (840)(173)(1,013)223 (790)
Segment contribution $85,520 $17,293 $4,396 $107,209 
Income (loss) before income taxes$107,209 $(91,147)$16,062 


EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)
 
Three Months Ended September 30, 2022
 U.S. PawnLatin America PawnConsolidated
As of June 30, 2022
519 644 1,163 
New locations opened— 16 16 
Locations acquired— — — 
Locations sold, combined or closed(4)— (4)
As of September 30, 2022
515 660 1,175 
 
Three Months Ended September 30, 2021
 U.S. PawnLatin America PawnConsolidated
As of June 30, 2021
516 627 1,143 
New locations opened— 5 5 
Locations acquired— — — 
Locations sold, combined or closed— — — 
As of September 30, 2021
516 632 1,148 
 
Twelve Months Ended September 30, 2022
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2021516 632 1,148 
New locations opened— 28 28 
Locations acquired3 — 3 
Locations sold, combined or closed(4)— (4)
As of September 30, 2022515 660 1,175 
 
Twelve Months Ended September 30, 2021
 U.S. PawnLatin America PawnConsolidated
As of September 30, 2020505 500 1,005 
New locations opened— 15 15 
Locations acquired11 128 139 
Locations sold, combined or closed— (11)(11)
As of September 30, 2021516 632 1,148 


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 twelve months ended September 30, 2022 and 2021 were as follows:
September 30,
Three Months Ended
September 30,
Twelve Months Ended
September 30,
202220212022202120222021
Mexican peso20.1 20.5 20.2 20.0 20.4 20.2 
Guatemalan quetzal7.6 7.6 7.6 7.6 7.5 7.6 
Honduran lempira24.1 23.9 24.2 23.5 24.1 23.8 
Peruvian sol3.9 4.1 3.8 4.0 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
September 30,
Twelve Months Ended
September 30,
(in millions)2022202120222021
Net income$7.3 $1.6 $50.2 $8.6 
Interest expense2.3 5.6 10.0 22.2 
Interest income(0.1)(0.6)(0.8)(2.5)
Income tax expense5.8 3.0 17.6 7.5 
Depreciation and amortization9.4 7.6 32.1 30.7 
EBITDA$24.8 $17.2 $109.0 $66.5 

Total RevenuesGross ProfitIncome Before TaxTax EffectNet IncomeDiluted EPS EBITDA
2022 Q4 Reported
$233.4 $137.6 $13.2 $5.9 $7.3 $0.11 $24.8 
Tax impact— — — (3.5)3.5 0.04 — 
Constant currency impact0.5 0.3 (0.3)(0.1)(0.2)— (0.2)
2022 Q4 Adjusted
$233.9 $137.9 $12.9 $2.3 $10.6 $0.15 $24.6 


Total RevenuesGross ProfitIncome Before TaxTax EffectNet IncomeDiluted EPS EBITDA
2022 Full Year Reported
$886.2 $528.1 $67.7 $17.5 $50.2 $0.70 $109.0 
Litigation Accrual— — 2.0 0.5 1.5 0.02 2.0 
CCV Adjustment for Impairment— — 2.1 0.5 1.6 0.02 2.1 
Tax Impact— — — (1.3)0.4 — — 
Constant Currency and other impact1.2 0.6 (0.2)— 0.6 0.01 (0.2)
2022 Full Year Adjusted
$887.4 $528.7 $71.6 $17.3 $54.3 $0.75 $112.9 
Total RevenuesGross ProfitIncome Before TaxTax EffectNet
Income		Diluted EPSEBITDA
2021 Q4 Reported
$192.4 $119.3 $4.5 $2.9 $1.6 $0.03 $17.2 
Acquisition expenses— — 1.6 0.1 1.5 0.03 1.6 
Peru Reserve— — (0.3)— (0.3)— (0.3)
Non cash Interest— — 3.6 0.2 3.4 0.06 — 
2021 Q4 Adjusted
$192.4 $119.3 $9.4 $3.2 $6.2 $0.11 $18.5 
Total RevenuesGross ProfitIncome Before TaxTax EffectNet
Income		Diluted EPSEBITDA
2021 Full Year Reported
$729.6 $449.5 $16.1 $7.5 $8.6 $0.15 $66.4 
Acquisition expenses— — 1.9 0.5 1.4 0.02 2.0 
Peru Reserve— — 0.2 0.1 0.1 — 0.2 
FY20 Contract write-off over-accrual— — (0.4)(0.1)(0.3)(0.01)(0.4)
Non cash net interest— — 13.8 2.3 11.6 0.21 — 
2021 Full Year Adjusted
$729.6 $449.5 $31.6 $10.3 $21.4 $0.38 $68.2 


Three Months Ended
September 30, 2022
Twelve Months Ended
September 30, 2022
(in millions)U.S. Dollar AmountPercentage Change YOYU.S. Dollar AmountPercentage Change YOY
Consolidated revenue $233.4 21 %$886.2 21 %
Currency exchange rate fluctuations0.5 1.2 
Constant currency consolidated revenue$233.9 22 %$887.4 22 %
Consolidated gross profit $137.6 15 %$528.1 18 %
Currency exchange rate fluctuations0.3 0.6 
Constant currency consolidated gross profit$137.9 16 %$528.7 18 %
Consolidated net inventory$151.6 37 %$151.6 37 %
Currency exchange rate fluctuations(0.5)(0.5)
Constant currency consolidated net inventory$151.1 36 %$151.1 36 %
Latin America Pawn gross profit $32.9 8 %$122.3 23 %
Currency exchange rate fluctuations0.3 0.6 
Constant currency Latin America Pawn gross profit $33.2 8 %$122.9 23 %
Latin America Pawn PLO$46.6 17 %$46.6 17 %
Currency exchange rate fluctuations(0.6)(0.6)
Constant currency Latin America Pawn PLO$46.0 15 %$46.0 15 %
Latin America Pawn PSC revenues $21.5 8 %$79.9 26 %
Currency exchange rate fluctuations0.2 0.3 
Constant currency Latin America Pawn PSC revenues $21.7 9 %$80.2 26 %
Latin America Pawn merchandise sales $37.5 21 %$140.9 39 %
Currency exchange rate fluctuations0.3 0.9 
Constant currency Latin America Pawn merchandise sales $37.8 22 %$141.8 40 %
Latin America Pawn segment profit before tax$6.7 9 %$24.1 39 %
Currency exchange rate fluctuations— 0.1 
Constant currency Latin America Pawn segment profit before tax$6.7 10 %$24.2 39 %