EZCORP Reports Second Quarter Fiscal 2024 Results
Record Q2 Revenues Driving Strong Earnings Growth
AUSTIN, Texas, May 01, 2024 (GLOBE NEWSWIRE) -- EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its second quarter ended March 31, 2024. 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. SECOND QUARTER HIGHLIGHTS Net income of $21.5 million, up from a net loss of $6.8 million. In the prior-year we recorded our share of the one-time, non-cash goodwill impairment and discrete adjustments recognized by Cash Converters International of $25.6 million. On an adjusted basis1, net income increased $3.6 million or 21%.Diluted earnings per share of $0.29, up from diluted loss per share of $0.12. On an adjusted basis, diluted earnings per share of $0.28, compared to $0.23.Total revenues increased 11%, and gross profit increased 12%.Merchandise sales gross margin remains within our targeted range at 35%.Pawn loans outstanding (PLO) up 14% to $235.8 million.Return on earning assets (ROEA) remains strong at 165%. CEO COMMENTARY AND OUTLOOK Lachie Given, Chief Executive Officer, stated, “We achieved record second quarter revenue and PLO, driven by strong consumer demand and excellent customer service. The challenging macro-economic environment continues to fuel robust customer demand for short-term cash and pre-owned and recycled goods. “During the second quarter, we opened nine de novo stores in Latin America and acquired six stores in the U.S. We also consolidated six stores, five in Latin America and one in the U.S., which netted an additional nine stores. We now have a total of 1,246 stores across the organization and over 7,800 team members. Our strong balance sheet allows us to continue to build scale, both organically and by acquiring new stores. In addition, we continue to return capital to our shareholders, having repurchased $3.0 million worth of EZCORP shares during the quarter. “We have 4.6 million EZ+ Rewards members, an increase of 61% over the second quarter of 2023 and 10% over last quarter. Online payments continue to gain traction with customers, and we collected $21.8 million in the U.S., up 72%, and have expanded online payments to our stores in Mexico. These initiatives to increase customer loyalty and engagement and provide a more convenient customer experience are an integral part of our growth in the local neighborhoods in which we operate. “Thank you to our exceptional EZCORP team members for delivering another outstanding quarter of excellent operating and financial results for our shareholders. We will continue to invest in our team and our stores, focusing on recruitment and retention, while also investing in technology and other initiatives to enhance the customer experience. This focus and investment continues to enhance value for all of our shareholders,” concluded Given. CONSOLIDATED RESULTS Three Months Ended March 31As Reported Adjusted1in millions, except per share amounts 2024 2023 2024 2023 Total revenues$285.6 $258.4 $280.2 $258.4Gross profit$167.6 $149.2 $164.6 $149.2Income (loss) before tax$28.7 $(7.3) $27.6 $24.3Net income (loss)$21.5 $(6.8) $20.7 $17.1Diluted earnings (loss) per share$0.29 $(0.12) $0.28 $0.23EBITDA (non-GAAP measure)$37.4 $2.1 $36.2 $33.8 Diluted earnings per share of $0.29, up from diluted loss per share of $0.12. On an adjusted basis, diluted earnings per share of $0.28, up from $0.23. The primary difference between GAAP and Adjusted financial results is attributable to our share of the previously announced prior year one-time, non-cash goodwill impairment recognized by Cash Converters International.Income before taxes was $28.7 million, up from loss before taxes of $7.3 million, and adjusted EBITDA increased 7% to $36.2 million.PLO increased 14% to $235.8 million, up $29.7 million. On a same-store basis2, PLO increased 12% due to improved operational performance and continued strong pawn demand.Total revenues increased 11%, and gross profit increased 12%, reflecting improved pawn service charge (PSC) revenues, merchandise sales and merchandise sales gross profit.PSC increased 15% as a result of higher average PLO.Merchandise sales gross margin remains within our target range at 35%. Aged general merchandise was 2.3% of total general merchandise inventory.Net inventory increased 9%, as expected with the growth in PLO. Inventory turnover increased to 2.9x, from 2.8x.Store expenses increased 13%, primarily due to increased labor, in-line with store activity, higher store count and, to a lesser extent, expenses related to our loyalty program. On a same-store basis, store expenses increased 11%.General and administrative expenses increased 17%, primarily due to labor driven by incentive compensation related to an increase in share price and, to a lesser extent, costs related to the implementation of Workday.Cash and cash equivalents at the end of the quarter was $229.1 million, down 6% year-over-year. The decrease was due to the increase in PLO and inventory, strategic investments, share repurchases, and the acquisition of new stores, partially offset by cash inflows provided by operating activities. SEGMENT RESULTS U.S. Pawn PLO ended the quarter at $173.7 million, up 11% or 9% on a same store basis.Total revenue and gross profit was up 10%, reflecting increased PSC and higher merchandise sales.PSC increased 14% as a result of higher average PLO.Merchandise sales increased 6%, and gross margin decreased to 37% from 38%. Aged general merchandise increased to 3.0% of total general merchandise inventory, primarily driven by luxury handbags in our Max Pawn stores.Net inventory increased 9%, as expected with the growth in PLO. Inventory turnover remained flat at 2.6x.Store expenses increased 12%, primarily due to salaries and benefits as we continue to support our team members as a part of People, Pawn and Passion focus, higher store count and, to a lesser extent, expenses related to our loyalty program.Segment contribution increased 8% to $40.7 million.During the quarter, net store count increased by five due to the acquisition of six stores and the consolidation of one store. Latin America Pawn PLO improved to $62.0 million, up 26% (19% on constant currency basis). On a same store basis, PLO increased 22% (15% on a constant currency basis) due to improved operational performance and continued strong pawn demand.Total revenues was up 12% (4% on constant currency basis), and gross profit increased 18% (10% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved merchandise sales gross profit.PSC increased 18% (10% on a constant currency basis) as a result of higher average PLO.Merchandise sales gross margin increased to 33% from 32%. Aged general merchandise was 1.4% of total merchandise inventory.Net inventory increased 9% (2% on a constant currency basis). Inventory turnover increased to 3.6x from 3.5x.Store expenses increased 15% (7% on a constant currency basis), primarily due to higher store count. Same-store expenses increased 10% (2% on a constant currency basis).Segment contribution increased 2% (decreased 3% on a constant currency basis). On an adjusted basis, segment contribution was up 38% to $7.7 million, with the primary adjustment being the prior year reversal of contingent consideration liability of $2.5 million in connection with a previously completed acquisition.During the quarter, net store count increased by four due to the opening of nine de novo stores and the consolidation of five stores. FORM 10-Q EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 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 CALLEZCORP will host a conference call on Thursday, May 2, 2024, at 8:00 am Central Time to discuss Second Quarter Fiscal 2024 results. Analysts and institutional investors may participate on the conference call by registering online at: https://register.vevent.com/register/BIc16d26b733bc44b7aecc33d2d530fef4. Once registered you will receive the dial-in details with a unique PIN to join the call. 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 pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and 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 LinkedIn 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: [email protected]: (512) 314-2220 EZCORP, Inc.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) Three Months EndedMarch 31, Six Months EndedMarch 31,(in thousands, except per share amounts) 2024 2023 2024 2023 Revenues: Merchandise sales$164,687 $152,507 $344,090 $316,294 Jewelry scrapping sales 13,714 12,825 27,796 20,709 Pawn service charges 107,163 93,030 213,612 185,623 Other revenues 75 61 132 124 Total revenues 285,639 258,423 585,630 522,750 Merchandise cost of goods sold 106,259 97,339 221,469 202,216 Jewelry scrapping cost of goods sold 11,788 11,902 23,996 18,855 Gross profit 167,592 149,182 340,165 301,679 Operating expenses: Store expenses 114,582 101,269 225,137 202,072 General and administrative 18,266 15,609 34,809 31,085 Depreciation and amortization 8,219 7,963 16,784 15,951 Loss (gain) on sale or disposal of assets and other 3 73 (169) 57 Other income (765) (2,465) (765) (2,465)Total operating expenses 140,305 122,449 275,796 246,700 Operating income 27,287 26,733 64,369 54,979 Interest expense 3,402 3,390 6,842 9,580 Interest income (2,882) (1,898) (5,521) (2,562)Equity in net (income) loss of unconsolidated affiliates (1,719) 32,501 (2,872) 30,917 Other (income) expense (165) 80 (436) (154)Income (loss) before income taxes 28,651 (7,340) 66,356 17,198 Income tax expense (benefit) 7,172 (550) 16,407 7,210 Net income (loss)$21,479 $(6,790) $49,949 $9,988 Basic earnings (loss) per share$0.39 $(0.12) $0.91 $0.18 Diluted earnings (loss) per share$0.29 $(0.12) $0.65 $0.11 Weighted-average basic shares outstanding 55,093 55,648 55,084 55,981 Weighted-average diluted shares outstanding 83,045 55,648 84,948 65,269 EZCORP, Inc.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(in thousands, except share and per share amounts)March 31,2024 March 31,2023 September 30,2023 Assets: Current assets: Cash and cash equivalents$229,111 $243,128 $220,595 Restricted cash 8,581 8,451 8,373 Pawn loans 235,773 206,096 245,766 Pawn service charges receivable, net 38,268 33,116 38,885 Inventory, net 163,429 150,297 166,477 Prepaid expenses and other current assets 47,142 45,564 39,623 Total current assets 722,304 686,652 719,719 Investments in unconsolidated affiliates 13,162 10,681 10,987 Other investments 51,220 39,220 36,220 Property and equipment, net 63,306 59,775 68,096 Right-of-use assets, net 243,752 234,287 234,388 Goodwill 310,658 300,078 302,372 Intangible assets, net 61,714 59,620 58,216 Notes receivable, net — 1,233 — Deferred tax asset, net 26,247 19,127 25,702 Other assets, net 15,779 9,859 12,011 Total assets$1,508,142 $1,420,532 $1,467,711 Liabilities and equity: Current liabilities: Current maturities of long-term debt, net$34,347 $— $34,265 Accounts payable, accrued expenses and other current liabilities 62,838 72,695 $81,605 Customer layaway deposits 20,352 18,761 18,920 Operating lease liabilities, current 55,658 53,921 57,182 Total current liabilities 173,195 145,377 191,972 Long-term debt, net 326,573 359,287 325,847 Deferred tax liability, net 465 368 435 Operating lease liabilities 197,285 191,874 193,187 Other long-term liabilities 10,228 11,038 10,502 Total liabilities 707,746 707,944 721,943 Commitments and contingencies (Note 9) Stockholders’ equity: Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding : 52,057,309 as of March 31, 2024; 52,561,071 as of March 31, 2023; and 51,869,569 as of September 30, 2023 521 526 519 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 345,174 343,088 346,181 Retained earnings 477,683 405,961 431,140 Accumulated other comprehensive loss (23,012) (37,017) (32,102)Total equity 800,396 712,588 745,768 Total liabilities and equity$1,508,142 $1,420,532 $1,467,711 EZCORP, Inc.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) Six Months EndedMarch 31,(in thousands) 2024 2023 Operating activities: Net income$49,949 $9,988 Adjustments to reconcile net income to net cash flows from operating activities: Depreciation and amortization 16,784 15,951 Amortization of debt discount and deferred financing costs 807 736 Non-cash lease expense 29,514 27,546 Deferred income taxes 515 (6,987)Other adjustments (1,429) (2,386)Provision for inventory reserve 183 280 Stock compensation expense 4,844 3,741 Equity in net (income) loss from investment in unconsolidated affiliates (2,872) 30,917 Net loss on extinguishment of debt — 3,545 Changes in operating assets and liabilities, net of business acquisitions: Pawn service charges receivable 1,071 1,357 Inventory 1,617 (2,306)Prepaid expenses, other current assets and other assets (8,699) (3,639)Accounts payable, accrued expenses and other liabilities (57,531) (43,969)Customer layaway deposits 886 1,426 Income taxes 909 8,852 Dividends from unconsolidated affiliates — 1,775 Net cash provided by operating activities 36,548 46,827 Investing activities: Loans made (433,194) (378,717)Loans repaid 262,970 230,604 Recovery of pawn loan principal through sale of forfeited collateral 188,351 171,504 Capital expenditures, net (13,654) (18,439)Acquisitions, net of cash acquired (8,610) (12,968)Issuance of notes receivable — (15,500)Investment in unconsolidated affiliate (850) (2,133)Investment in other investments (15,000) (15,000)Dividends from unconsolidated affiliates 1,745 — Net cash used in investing activities (18,242) (40,649)Financing activities: Taxes paid related to net share settlement of equity awards (3,253) (1,149)Proceeds from issuance of debt — 230,000 Debt issuance cost — (7,458)Cash paid on extinguishment of debt — (1,951)Payments on debt — (178,488)Purchase and retirement of treasury stock (6,010) (10,978)Payments of finance leases (276) — Net cash (used in) provided by financing activities (9,539) 29,976 Effect of exchange rate changes on cash and cash equivalents and restricted cash (43) 1,056 Net increase in cash, cash equivalents and restricted cash 8,724 37,210 Cash and cash equivalents and restricted cash at beginning of period 228,968 214,369 Cash and cash equivalents and restricted cash at end of period$237,692 $251,579 EZCORP, Inc.OPERATING SEGMENT RESULTS Three Months Ended March 31, 2024(Unaudited)(in thousands)U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales$114,849 $49,838 $— $164,687 $— $164,687 Jewelry scrapping sales 12,686 1,028 — 13,714 — 13,714 Pawn service charges 80,010 27,153 — 107,163 — 107,163 Other revenues 29 15 31 75 — 75 Total revenues 207,574 78,034 31 285,639 — 285,639 Merchandise cost of goods sold 72,798 33,461 — 106,259 — 106,259 Jewelry scrapping cost of goods sold 10,794 994 — 11,788 — 11,788 Gross profit 123,982 43,579 31 167,592 — 167,592 Segment and corporate expenses (income): Store expenses 80,840 33,742 — 114,582 — 114,582 General and administrative — — — — 18,266 18,266 Depreciation and amortization 2,516 2,392 — 4,908 3,311 8,219 (Gain) loss on sale or disposal of assets and other (30) (66) — (96) 99 3 Other income — — — — (765) (765)Interest expense — — — — 3,402 3,402 Interest income — (608) (633) (1,241) (1,641) (2,882)Equity in net income of unconsolidated affiliates — — (1,719) (1,719) — (1,719)Other expense (income) — 1 14 15 (180) (165)Segment contribution$40,656 $8,118 $2,369 $51,143 Income (loss) before income taxes $51,143 $(22,492) $28,651 Three Months Ended March 31, 2023(Unaudited)(in thousands)U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales$108,740 $43,767 $— $152,507 $— $152,507 Jewelry scrapping sales 9,814 3,011 — 12,825 — 12,825 Pawn service charges 69,945 23,085 — 93,030 — 93,030 Other revenues 32 19 10 61 — 61 Total revenues 188,531 69,882 10 258,423 — 258,423 Merchandise cost of goods sold 67,643 29,696 — 97,339 — 97,339 Jewelry scrapping cost of goods sold 8,550 3,352 — 11,902 — 11,902 Gross profit 112,338 36,834 10 149,182 — 149,182 Segment and corporate expenses (income): Store expenses 71,946 29,323 — 101,269 — 101,269 General and administrative — — — — 15,609 15,609 Depreciation and amortization 2,560 2,332 — 4,892 3,071 7,963 Loss (gain) on sale or disposal of assets 81 (8) — 73 — 73 Other income — (2,465) — (2,465) — (2,465)Interest expense — — — — 3,390 3,390 Interest income (1) (298) — (299) (1,599) (1,898)Equity in net loss of unconsolidated affiliates — — 32,501 32,501 — 32,501 Other (income) expense — (46) 6 (40) 120 80 Segment contribution (loss)$37,752 $7,996 $(32,497) $13,251 Income (loss) before income taxes $13,251 $(20,591) $(7,340) Six Months Ended March 31, 2024(Unaudited)(in thousands)U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales$240,362 $103,728 $— $344,090 $— $344,090 Jewelry scrapping sales 25,501 2,295 — 27,796 — 27,796 Pawn service charges 159,083 54,529 — 213,612 — 213,612 Other revenues 66 31 35 132 — 132 Total revenues 425,012 160,583 35 585,630 — 585,630 Merchandise cost of goods sold 151,507 69,962 — 221,469 — 221,469 Jewelry scrapping cost of goods sold 22,078 1,918 — 23,996 — 23,996 Gross profit 251,427 88,703 35 340,165 — 340,165 Segment and corporate expenses (income): Store expenses 158,095 67,042 — 225,137 — 225,137 General and administrative — — — — 34,809 34,809 Depreciation and amortization 5,140 4,731 — 9,871 6,913 16,784 (Gain) loss on sale or disposal of assets and other (4) (262) — (266) 97 (169)Other income — — — — (765) (765)Interest expense — — — — 6,842 6,842 Interest income — (1,028) (1,206) (2,234) (3,287) (5,521)Equity in net loss of unconsolidated affiliates — — (2,872) (2,872) — (2,872)Other (income) expense — (47) 15 (32) (404) (436)Segment contribution 88,196 18,267 $4,098 $110,561 Income (loss) before income taxes $110,561 $(44,205) $66,356 Six Months Ended March 31, 2023(Unaudited)(in thousands)U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales$227,054 $89,240 $— $316,294 $— $316,294 Jewelry scrapping sales 16,990 3,719 — 20,709 — 20,709 Pawn service charges 139,255 46,368 — 185,623 — 185,623 Other revenues 57 35 32 124 — 124 Total revenues 383,356 139,362 32 522,750 — 522,750 Merchandise cost of goods sold 140,899 61,317 — 202,216 — 202,216 Jewelry scrapping cost of goods sold 14,766 4,089 — 18,855 — 18,855 Gross profit 227,691 73,956 32 301,679 — 301,679 Segment and corporate expenses (income): Store expenses 145,250 56,822 — 202,072 — 202,072 General and administrative — (3) — (3) 31,088 31,085 Depreciation and amortization 5,315 4,547 — 9,862 6,089 15,951 Loss (gain) on sale or disposal of assets 84 (27) — 57 — 57 Other income — (2,465) — (2,465) — (2,465)Interest expense — — — — 9,580 9,580 Interest income (1) (467) — (468) (2,094) (2,562)Equity in net loss of unconsolidated affiliates — — 30,917 30,917 — 30,917 Other expense (income) — 24 10 34 (188) (154)Segment contribution (loss)$77,043 $15,525 $(30,895) $61,673 Income (loss) before income taxes $61,673 $(44,475) $17,198 EZCORP, Inc.STORE COUNT ACTIVITY(Unaudited) Three Months Ended March 31, 2024 U.S. Pawn Latin America Pawn Consolidated As of December 31, 2023530 707 1,237 New locations opened— 9 9 Locations acquired6 — 6 Locations combined or closed(1) (5) (6)As of March 31, 2024535 711 1,246 Three Months Ended March 31, 2023 U.S. Pawn Latin America Pawn Consolidated As of December 31, 2022525 661 1,186New locations opened2 11 13As of March 31, 2023527 672 1,199 Six Months Ended March 31, 2024 U.S. Pawn Latin America Pawn Consolidated As of September 30, 2023529 702 1,231 New locations opened— 14 14 Locations acquired7 — 7 Locations combined or closed(1) (5) (6)As of March 31, 2024535 711 1,246 Six Months Ended March 31, 2023 U.S. Pawn Latin America Pawn Consolidated As of September 30, 2022515 660 1,175 New locations opened2 13 15 Locations acquired10 — 10 Locations combined or closed— (1) (1)As of March 31, 2023527 672 1,199 Non-GAAP Financial Information (Unaudited) In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“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. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. 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, 2024 and 2023 were as follows: March 31, Three Months EndedMarch 31, Six Months EndedMarch 31, 2024 2023 2024 2023 2024 2023 Mexican peso 16.6 18.1 17.0 18.7 17.3 19.2Guatemalan quetzal 7.6 7.6 7.6 7.6 7.6 7.6Honduran lempira 24.4 24.4 24.4 24.3 24.4 24.3Australian dollar 1.5 1.5 1.5 1.5 1.5 1.5 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 EndedMarch 31,(in millions) 2024 2023 Net income (loss)$21.5 $(6.8)Interest expense 3.4 3.4 Interest income (2.9) (1.9)Income tax expense (benefit) 7.2 (0.6)Depreciation and amortization 8.2 8.0 EBITDA$37.4 $2.1 Total Revenues Gross Profit Income Before Tax Tax Effect Net Income Diluted EPS EBITDA 2024 Q2 Reported$285.6 $167.6 $28.7 $7.2 $21.5 $0.29 $37.4 Corporate lease termination — — (0.8) (0.2) (0.6) (0.01) (0.8)FX Impact — — 0.1 — 0.1 — 0.1 Constant Currency and other impact (5.4) (3.0) (0.4) (0.1) (0.3) — (0.5)2024 Q2 Adjusted$280.2 $164.6 $27.6 $6.9 $20.7 $0.28 $36.2 Total Revenues Gross Profit Income Before Tax Tax Effect Net Income Diluted EPS EBITDA 2023 Q2 Reported$258.4 $149.2 $(7.3) $(0.5) $(6.8) $(0.12) $2.1 CCV Impairment and discrete adjustments — — 34.0 8.4 25.6 0.29 34.0 Contingent consideration liability — — (2.4) (0.7) (1.7) (0.02) (2.4)Impact of dilutive instruments* — — — — — 0.08 — 2023 Q2 Adjusted$258.4 $149.2 $24.3 $7.2 $17.1 $0.23 $33.8 Three Months Ended March 31, 2024 Six Months EndedMarch 31, 2024(in millions)U.S. Dollar Amount Percentage Change YOY U.S. Dollar Amount Percentage Change YOY Consolidated revenues$285.6 11% $585.6 12%Currency exchange rate fluctuations (5.4) (12.6) Constant currency consolidated revenues$280.2 8% $573.0 10% Consolidated gross profit$167.6 12% $340.2 13%Currency exchange rate fluctuations (3.0) (6.8) Constant currency consolidated gross profit$164.6 10% $333.4 11% Consolidated net inventory$163.4 9% $163.4 9%Currency exchange rate fluctuations (2.8) (2.8) Constant currency consolidated net inventory$160.6 7% $160.6 7% Latin America Pawn gross profit$43.6 18% $88.7 20%Currency exchange rate fluctuations (3.0) (6.8) Constant currency Latin America Pawn gross profit$40.6 10% $81.9 11% Latin America Pawn PLO$62.0 26% $62.0 26%Currency exchange rate fluctuations (3.7) (3.7) Constant currency Latin America Pawn PLO$58.3 19% $58.3 19% Latin America Pawn PSC revenues$27.2 18% $54.5 18%Currency exchange rate fluctuations (1.8) (3.9) Constant currency Latin America Pawn PSC revenues$25.4 10% $50.6 9% Latin America Pawn merchandise sales$49.8 14% $103.7 16%Currency exchange rate fluctuations (3.6) (8.5) Constant currency Latin America Pawn merchandise sales$46.2 6% $95.2 7% Latin America Pawn segment profit before tax$8.1 2% $18.3 18%Currency exchange rate fluctuations (0.4) (1.1) Constant currency Latin America Pawn segment profit before tax$7.7 (4) % $17.1 10% 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“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. 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.2“Same Store” basis, which is a financial measure, includes stores open the entirety of the comparable periods.
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