EZCORP Reports Third Quarter Fiscal 2024 Results

Record PLO and Q3 Revenues

/EIN News/ -- AUSTIN, Texas, July 31, 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 third quarter ended June 30, 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.

THIRD QUARTER HIGHLIGHTS

• Pawn loans outstanding (PLO) up 14% to $261.7 million.
• Total revenues increased 10% and gross profit increased 12%, while merchandise sales gross margin remains within our targeted range at 36%.
• Net income of $18.0 million, compared to $18.2 million. On an adjusted basis¹, net income increased $2.2 million or 14%.
• Diluted earnings per share of $0.25, up from $0.24. On an adjusted basis, diluted earnings per share of $0.23, compared to $0.20.
• Return on earning assets (ROEA) remains strong at 160%.
  

CEO COMMENTARY AND OUTLOOK

Lachie Given, Chief Executive Officer, stated, “Our team delivered another outstanding quarter for our shareholders, driven by strong customer demand and continued focus on operational execution at the store level. As a result, we achieved record Q3 revenues and our highest level of PLO in Company history. The challenging macro-economic climate continues to fuel robust customer interest in short-term cash solutions and high-quality pre-owned goods, and the team’s focus on market-leading customer service drove excellent operational and financial results, increasing adjusted EBITDA by 15% with expanded margin.

“During the quarter, we grew our footprint by adding twelve new stores, including six de novo stores in Latin America and one in the U.S., as well as acquiring five stores in the U.S. We now operate 1,258 stores and employ over 8,000 team members. Our strong, liquid balance sheet enables us to continue scaling the business, organically through new store openings and through strategic acquisitions. Additionally, we demonstrated our commitment to returning capital to shareholders by repurchasing $3.0 million worth of shares during the quarter. Subsequent to quarter end, we also settled our convertible notes that matured in 2024 with $34.4 million in cash and 77,328 shares.

“We continue to prioritize convenience and a seamless customer experience to drive loyalty and engagement. Our EZ+ Rewards program now boasts 5 million members globally, up 51% year-over-year. These members accounted for 76% of unique customer transactions during the quarter, illustrating the ongoing success of the program. Online payments also continue to gain traction with a 49% increase to $21.7 million collected in the U.S.

“We remain committed to a balanced capital allocation strategy in which we invest in our people and business to drive strong organic growth, execute value-enhancing acquisitions and investments, return capital to shareholders via strategic share repurchases, and maintain substantial liquidity to manage debt. The business is performing exceptionally well and I thank the team for their relentless focus on operational excellence to produce these results for all of our stakeholders,” concluded Given.

CONSOLIDATED RESULTS

Three Months Ended June 30	As Reported						Adjusted1
in millions, except per share amounts		2024			2023			2024			2023
Total revenues	$	281.4		$	255.8		$	279.8		$	255.8
Gross profit	$	166.7		$	148.8		$	165.8		$	148.8
Income before tax	$	23.0		$	21.3		$	22.8		$	18.7
Net income	$	18.0		$	18.2		$	17.0		$	14.9
Diluted earnings per share	$	0.25		$	0.24		$	0.23		$	0.20
EBITDA (non-GAAP measure)	$	31.8		$	30.2		$	31.6		$	27.6

• PLO increased 14% to $261.7 million, up $32.3 million. On a same-store basis, PLO increased 12% due to improved operational performance and continued strong pawn demand.
• Total revenues increased 10%, 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 36%. Aged general merchandise was 3.2% of total general merchandise inventory.
• Net inventory increased 11%, as expected with the growth in PLO. Inventory turnover decreased to 2.7x, from 2.8x.
• Store expenses increased 11% and 8% on a same-store basis, primarily due to increased labor in-line with store activity and, to a lesser extent, expenses related to our loyalty program.
• General and administrative expenses increased 12%, primarily due to labor, incentive compensation and, to a lesser extent, costs related to the implementation and ongoing support of Workday.
• Income before taxes was $23.0 million, up from $21.3 million, and adjusted EBITDA increased 15% to $31.6 million, with the primary adjustment being in the prior year for the reversal of contingent consideration liability in connection with a previously completed acquisition.
• Diluted earnings per share of $0.25, up from $0.24. On an adjusted basis, diluted earnings per share of $0.23, up from $0.20.
• Cash and cash equivalents at the end of the quarter was $218.0 million, down 8% year-over-year. The decrease was due to the increase in PLO and inventory, strategic investments and acquisitions, and share repurchases, partially offset by cash from operating activities.

SEGMENT RESULTS

U.S. Pawn

• PLO ended the quarter at $199.3 million, up 11% or 10% on a same-store basis.
• Total revenues were up 8% and gross profit was up 9%, reflecting increased PSC and higher merchandise sales.
• PSC increased 13% as a result of higher average PLO.
• Merchandise sales increased 6%, and gross margin decreased to 38% from 39%. Aged general merchandise increased to 5.0% to $2.0 million of total general merchandise inventory. Excluding luxury handbags in our three Max Pawn stores in Las Vegas, aged general merchandise remains under 1%.
• Net inventory increased 6%, as expected with the growth in PLO. Inventory turnover remained flat at 2.6x.
• Store expenses increased 8% and 6% on a same-store basis, primarily due to increased labor in-line with store activity and to a lesser extent, expenses related to our loyalty program.
• Segment contribution increased 12% to $36.1 million.
• During the quarter, store count increased by six, due to the acquisition of five stores and opening of one de novo store.
  

Latin America Pawn

• PLO improved to $62.4 million, up 24% (30% on constant currency basis). On a same-store basis, PLO increased 20% (26% on a constant currency basis) due to improved operational performance and increased loan demand.
• Total revenues were up 15% (13% on constant currency basis), and gross profit increased 21% (19% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved merchandise sales gross profit.
• PSC increased 22% (19% on a constant currency basis) as a result of higher average PLO.
• Merchandise sales gross margin increased to 32% from 30%. Aged general merchandise was less than 1% of total merchandise inventory.
• Net inventory increased 25% (32% on a constant currency basis). Inventory turnover decreased to 3.0x, from 3.4x.
• Store expenses increased 18% (15% on a constant currency basis) and 14% (12% on a constant currency basis) on a same-store basis, primarily due to increased labor, in line with store activity and to a lesser extent, rent.
• Segment contribution increased 6% (5% on a constant currency basis). On an adjusted basis, segment contribution was up 43% to $10.2 million, with the primary adjustment being the prior year reversal of contingent consideration liability in connection with a previously completed acquisition.
• During the quarter, store count increased by six de novo stores.

FORM 10-Q

EZCORP’s Quarterly Report on Form 10-Q for the quarter ended June 30, 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 CALL
EZCORP will host a conference call on Thursday, August 1, 2024, at 8:00 am Central Time to discuss Third Quarter Fiscal 2024 results. Analysts and institutional investors may participate on the conference call by registering online at https://register.vevent.com/register/BId4b5469876114f61a4e1f86df672523c. 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. 

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FORWARD LOOKING STATEMENTS

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

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“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.

EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended June 30,								Nine Months Ended June 30,
(in thousands, except per share amounts)		2024				2023				2024				2023
Revenues:
Merchandise sales	$	158,140			$	147,980			$	502,230			$	464,274
Jewelry scrapping sales		15,395				13,931				43,191				34,640
Pawn service charges		107,830				93,819				321,442				279,442
Other revenues		56				82				188				206
Total revenues		281,421				255,812				867,051				778,562
Merchandise cost of goods sold		101,211				95,069				322,680				297,285
Jewelry scrapping cost of goods sold		13,483				11,958				37,479				30,813
Gross profit		166,727				148,785				506,892				450,464
Operating expenses:
Store expenses		116,335				104,932				341,472				307,004
General and administrative		20,060				17,876				54,869				48,961
Depreciation and amortization		8,158				8,026				24,942				23,977
Loss (gain) on sale or disposal of assets and other		20				(29	)			(149	)			28
Other income		—				(2,632	)			(765	)			(5,097	)
Total operating expenses		144,573				128,173				420,369				374,873
Operating income		22,154				20,612				86,523				75,591
Interest expense		3,539				3,414				10,381				12,994
Interest income		(2,931	)			(2,584	)			(8,452	)			(5,146	)
Equity in net (income) loss of unconsolidated affiliates		(1,263	)			(1,523	)			(4,135	)			29,394
Other income		(191	)			(5	)			(627	)			(159	)
Income before income taxes		23,000				21,310				89,356				38,508
Income tax expense		5,050				3,088				21,457				10,298
Net income	$	17,950			$	18,222			$	67,899			$	28,210
Basic earnings per share	$	0.33			$	0.33			$	1.23			$	0.51
Diluted earnings per share	$	0.25			$	0.24			$	0.89			$	0.38
Weighted-average basic shares outstanding		54,898				55,367				55,022				55,776
Weighted-average diluted shares outstanding		83,008				86,825				84,309				79,559

EZCORP, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(in thousands, except share and per share amounts)	June 30, 2024				June 30, 2023				September 30, 2023
Assets:
Current assets:
Cash and cash equivalents	$	218,038			$	237,974			$	220,595
Restricted cash		9,204				8,549				8,373
Pawn loans		261,720				229,379				245,766
Pawn service charges receivable, net		40,638				34,959				38,885
Inventory, net		171,937				154,944				166,477
Prepaid expenses and other current assets		40,391				44,925				39,623
Total current assets		741,928				710,730				719,719
Investments in unconsolidated affiliates		12,297				10,247				10,987
Other investments		51,220				39,220				36,220
Property and equipment, net		59,926				61,849				68,096
Right-of-use assets, net		235,030				243,100				234,388
Goodwill		308,847				302,120				302,372
Intangible assets, net		60,164				60,009				58,216
Deferred tax asset, net		25,245				19,610				25,702
Other assets, net		15,506				10,793				12,011
Total assets	$	1,510,163			$	1,457,678			$	1,467,711
Liabilities and equity:
Current liabilities:
Current maturities of long-term debt, net	$	137,326			$	—			$	34,265
Accounts payable, accrued expenses and other current liabilities		69,742				74,458			$	81,605
Customer layaway deposits		20,067				18,595				18,920
Operating lease liabilities, current		58,905				56,919				57,182
Total current liabilities		286,040				149,972				191,972
Long-term debt, net		223,998				359,686				325,847
Deferred tax liability, net		416				349				435
Operating lease liabilities		188,996				197,499				193,187
Other long-term liabilities		9,258				11,130				10,502
Total liabilities		708,708				718,636				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 : 51,771,917 as of June 30, 2024; 52,214,761 as of June 30, 2023; and 51,869,569 as of September 30, 2023		518				522				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		347,082				344,857				346,181
Retained earnings		493,830				422,549				431,140
Accumulated other comprehensive loss		(40,005	)			(28,916	)			(32,102	)
Total equity		801,455				739,042				745,768
Total liabilities and equity	$	1,510,163			$	1,457,678			$	1,467,711

EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Nine Months Ended June 30,
(in thousands)		2024				2023
Operating activities:
Net income	$	67,899			$	28,210
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		24,942				23,977
Amortization of debt discount and deferred financing costs		1,212				1,135
Non-cash lease expense		43,999				41,752
Deferred income taxes		438				(7,489	)
Other adjustments		69				(4,894	)
Provision for inventory reserve		589				(160	)
Stock compensation expense		7,945				6,876
Equity in net (income) loss from investment in unconsolidated affiliates		(4,135	)			29,394
Net loss on extinguishment of debt		—				3,545
Changes in operating assets and liabilities, net of business acquisitions:
Pawn service charges receivable		(1,593	)			(316	)
Inventory		(2,775	)			(5,501	)
Prepaid expenses, other current assets and other assets		(3,625	)			(2,750	)
Accounts payable, accrued expenses and other liabilities		(65,396	)			(53,018	)
Customer layaway deposits		1,055				1,036
Income taxes		(360	)			8,923
Dividends from unconsolidated affiliates		—				3,589
Net cash provided by operating activities		70,264				74,309
Investing activities:
Loans made		(683,121	)			(592,689	)
Loans repaid		391,297				343,886
Recovery of pawn loan principal through sale of forfeited collateral		272,781				251,608
Capital expenditures, net		(16,870	)			(27,751	)
Acquisitions, net of cash acquired		(11,963	)			(12,968	)
Proceeds from (issuance of) notes receivable		1,100				(15,500	)
Investment in unconsolidated affiliate		(993	)			(2,133	)
Investment in other investments		(15,000	)			(15,000	)
Dividends from unconsolidated affiliates		3,535				—
Net cash used in investing activities		(59,234	)			(70,547	)
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		(9,009	)			(13,982	)
Payments of finance leases		(386	)			—
Net cash (used in) provided by financing activities		(12,648	)			26,972
Effect of exchange rate changes on cash and cash equivalents and restricted cash		(108	)			1,420
Net (decrease) increase in cash, cash equivalents and restricted cash		(1,726	)			32,154
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	$	227,242			$	246,523

EZCORP, Inc.
OPERATING SEGMENT RESULTS

	Three Months Ended June 30, 2024 (Unaudited)
(in thousands)	U.S. Pawn				Latin America Pawn				Other Investments				Total Segments				Corporate Items				Consolidated
Revenues:
Merchandise sales	$	107,849			$	50,291			$	—			$	158,140			$	—			$	158,140
Jewelry scrapping sales		13,757				1,638				—				15,395				—				15,395
Pawn service charges		77,416				30,414				—				107,830				—				107,830
Other revenues		28				28				—				56				—				56
Total revenues		199,050				82,371				—				281,421				—				281,421
Merchandise cost of goods sold		67,229				33,982				—				101,211				—				101,211
Jewelry scrapping cost of goods sold		11,887				1,596				—				13,483				—				13,483
Gross profit		119,934				46,793				—				166,727				—				166,727
Segment and corporate expenses (income):
Store expenses		81,441				34,894				—				116,335				—				116,335
General and administrative		—				—				—				—				20,060				20,060
Depreciation and amortization		2,408				2,090				—				4,498				3,660				8,158
(Gain) loss on sale or disposal of assets and other		(2	)			22				—				20				—				20
Interest expense		—				—				—				—				3,539				3,539
Interest income		—				(370	)			(605	)			(975	)			(1,956	)			(2,931	)
Equity in net (income) loss of unconsolidated affiliates		—				—				(1,406	)			(1,406	)			143				(1,263	)
Other (income) expense		—				(184	)			12				(172	)			(19	)			(191	)
Segment contribution	$	36,087			$	10,341			$	1,999			$	48,427
Income (loss) before income taxes													$	48,427			$	(25,427	)		$	23,000

        

	Three Months Ended June 30, 2023 (Unaudited)
(in thousands)	U.S. Pawn				Latin America Pawn				Other Investments				Total Segments				Corporate Items				Consolidated
Revenues:
Merchandise sales	$	102,177			$	45,803			$	—			$	147,980			$	—			$	147,980
Jewelry scrapping sales		13,098				833				—				13,931				—				13,931
Pawn service charges		68,790				25,029				—				93,819				—				93,819
Other revenues		27				40				15				82				—				82
Total revenues		184,092				71,705				15				255,812				—				255,812
Merchandise cost of goods sold		62,799				32,270				—				95,069				—				95,069
Jewelry scrapping cost of goods sold		11,101				857				—				11,958				—				11,958
Gross profit		110,192				38,578				15				148,785				—				148,785
Segment and corporate expenses (income):
Store expenses		75,389				29,543				—				104,932				—				104,932
General and administrative		—				—				—				—				17,876				17,876
Depreciation and amortization		2,505				2,303				—				4,808				3,218				8,026
Gain on sale or disposal of assets		—				(29	)			—				(29	)			—				(29	)
Other income		—				(2,632	)			—				(2,632	)			—				(2,632	)
Interest expense		—				—				—				—				3,414				3,414
Interest income		(1	)			(256	)			—				(257	)			(2,327	)			(2,584	)
Equity in net income of unconsolidated affiliates		—				—				(1,523	)			(1,523	)			—				(1,523	)
Other (income) expense		—				(65	)			10				(55	)			50				(5	)
Segment contribution	$	32,299			$	9,714			$	1,528			$	43,541
Income (loss) before income taxes													$	43,541			$	(22,231	)		$	21,310

	Nine Months Ended June 30, 2024 (Unaudited)
(in thousands)	U.S. Pawn				Latin America Pawn				Other Investments				Total Segments				Corporate Items				Consolidated
Revenues:
Merchandise sales	$	348,211			$	154,019			$	—			$	502,230			$	—			$	502,230
Jewelry scrapping sales		39,258				3,933				—				43,191				—				43,191
Pawn service charges		236,499				84,943				—				321,442				—				321,442
Other revenues		94				59				35				188				—				188
Total revenues		624,062				242,954				35				867,051				—				867,051
Merchandise cost of goods sold		218,736				103,944				—				322,680				—				322,680
Jewelry scrapping cost of goods sold		33,965				3,514				—				37,479				—				37,479
Gross profit		371,361				135,496				35				506,892				—				506,892
Segment and corporate expenses (income):
Store expenses		239,536				101,936				—				341,472				—				341,472
General and administrative		—				—				—				—				54,869				54,869
Depreciation and amortization		7,548				6,821				—				14,369				10,573				24,942
(Gain) loss on sale or disposal of assets and other		(6	)			(240	)			—				(246	)			97				(149	)
Other income		—				—				—				—				(765	)			(765	)
Interest expense		—				—				—				—				10,381				10,381
Interest income		—				(1,398	)			(1,811	)			(3,209	)			(5,243	)			(8,452	)
Equity in net (income) loss of unconsolidated affiliates		—				—				(4,278	)			(4,278	)			143				(4,135	)
Other (income) expense		—				(231	)			27				(204	)			(423	)			(627	)
Segment contribution		124,283				28,608			$	6,097			$	158,988
Income (loss) before income taxes													$	158,988			$	(69,632	)		$	89,356

	Nine Months Ended June 30, 2023 (Unaudited)
(in thousands)	U.S. Pawn				Latin America Pawn				Other Investments				Total Segments				Corporate Items				Consolidated
Revenues:
Merchandise sales	$	329,231			$	135,043			$	—			$	464,274			$	—			$	464,274
Jewelry scrapping sales		30,088				4,552				—				34,640				—				34,640
Pawn service charges		208,045				71,397				—				279,442				—				279,442
Other revenues		84				75				47				206				—				206
Total revenues		567,448				211,067				47				778,562				—				778,562
Merchandise cost of goods sold		203,698				93,587				—				297,285				—				297,285
Jewelry scrapping cost of goods sold		25,867				4,946				—				30,813				—				30,813
Gross profit		337,883				112,534				47				450,464				—				450,464
Segment and corporate expenses (income):
Store expenses		220,639				86,365				—				307,004				—				307,004
General and administrative		—				(3	)			—				(3	)			48,964				48,961
Depreciation and amortization		7,820				6,850				—				14,670				9,307				23,977
Loss (gain) on sale or disposal of assets		84				(56	)			—				28				—				28
Other income		—				(5,097	)			—				(5,097	)			—				(5,097	)
Interest expense		—				—				—				—				12,994				12,994
Interest income		(2	)			(723	)			—				(725	)			(4,421	)			(5,146	)
Equity in net loss of unconsolidated affiliates		—				—				29,394				29,394				—				29,394
Other (income) expense		—				(41	)			20				(21	)			(138	)			(159	)
Segment contribution (loss)	$	109,342			$	25,239			$	(29,367	)		$	105,214
Income (loss) before income taxes													$	105,214			$	(66,706	)		$	38,508

EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)

	Three Months Ended June 30, 2024
	U.S. Pawn		Latin America Pawn		Consolidated
As of March 31, 2024	535		711		1,246
New locations opened	1		6		7
Locations acquired	5		—		5
As of June 30, 2024	541		717		1,258

	Three Months Ended June 30, 2023
	U.S. Pawn		Latin America Pawn		Consolidated
As of March 31, 2023	527		672		1,199
New locations opened	1		12		13
As of June 30, 2023	528		684		1,212

	Nine Months Ended June 30, 2024
	U.S. Pawn			Latin America Pawn			Consolidated
As of September 30, 2023	529			702			1,231
New locations opened	1			20			21
Locations acquired	12			—			12
Locations combined or closed	(1	)		(5	)		(6	)
As of June 30, 2024	541			717			1,258

	Nine Months Ended June 30, 2023
	U.S. Pawn		Latin America Pawn			Consolidated
As of September 30, 2022	515		660			1,175
New locations opened	3		25			28
Locations acquired	10		—			10
Locations combined or closed	—		(1	)		(1	)
As of June 30, 2023	528		684			1,212

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 nine months ended June 30, 2024 and 2023 were as follows:

		June 30,				Three Months Ended June 30,				Nine Months Ended June 30,
		2024		2023		2024		2023		2024		2023
Mexican peso		18.3		17.1		17.2		17.7		17.3		18.7
Guatemalan quetzal		7.6		7.7		7.6		7.6		7.6		7.6
Honduran lempira		24.3		24.4		24.3		24.3		24.3		24.3
Australian 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 Ended June 30,
(in millions)		2024				2023
Net income	$	18.0			$	18.2
Interest expense		3.5				3.4
Interest income		(2.9	)			(2.6	)
Income tax expense		5.0				3.1
Depreciation and amortization		8.2				8.0
EBITDA	$	31.8			$	30.2

	Total Revenues				Gross Profit				Income Before Tax				Tax Effect			Net Income				Diluted EPS				EBITDA
2024 Q3 Reported	$	281.4			$	166.7			$	23.0			$	5.0		$	18.0			$	0.25			$	31.8
Impact of dilutive instruments*		—				—				—				—			—				(0.01	)			—
FX Impact		—				—				0.1				—			—				—				0.1
Constant Currency and other impact		(1.6	)			(0.9	)			(0.3	)			0.8			(1.0	)			(0.01	)			(0.3	)
2024 Q3 Adjusted	$	279.8			$	165.8			$	22.8			$	5.8		$	17.0			$	0.23			$	31.6

	Total Revenues			Gross Profit			Income Before Tax				Tax Effect				Net Income				Diluted EPS				EBITDA
2023 Q3 Reported	$	255.8		$	148.8		$	21.3			$	3.1			$	18.2			$	0.24			$	30.2
Contingent consideration acquisition transaction		—			—			(2.6	)			(0.5	)			(2.1	)			(0.02	)			(2.6	)
Tax Impact		—			—			—				1.2				(1.2	)			(0.02	)			—
2023 Q3 Adjusted	$	255.8		$	148.8		$	18.7			$	3.8			$	14.9			$	0.20			$	27.6

	Three Months Ended June 30, 2024							Nine Months Ended June 30, 2024
(in millions)	U.S. Dollar Amount				Percentage Change YOY			U.S. Dollar Amount				Percentage Change YOY
Consolidated revenues	$	281.4			10	%		$	867.1			11	%
Currency exchange rate fluctuations		(1.6	)						(14.2	)
Constant currency consolidated revenues	$	279.8			9	%		$	852.8			10	%
Consolidated gross profit	$	166.7			12	%		$	506.9			13	%
Currency exchange rate fluctuations		(0.9	)						(7.7	)
Constant currency consolidated gross profit	$	165.8			11	%		$	499.2			11	%
Consolidated net inventory	$	171.9			11	%		$	171.9			11	%
Currency exchange rate fluctuations		2.7							2.7
Constant currency consolidated net inventory	$	174.6			13	%		$	174.6			13	%
Latin America Pawn gross profit	$	46.8			21	%		$	135.5			20	%
Currency exchange rate fluctuations		(0.9	)						(7.7	)
Constant currency Latin America Pawn gross profit	$	45.9			19	%		$	127.8			14	%
Latin America Pawn PLO	$	62.4			24	%		$	62.4			24	%
Currency exchange rate fluctuations		3.0							3.0
Constant currency Latin America Pawn PLO	$	65.4			30	%		$	65.4			30	%
Latin America Pawn PSC revenues	$	30.4			22	%		$	84.9			19	%
Currency exchange rate fluctuations		(0.6	)						(4.5	)
Constant currency Latin America Pawn PSC revenues	$	29.8			19	%		$	80.4			13	%
Latin America Pawn merchandise sales	$	50.3			10	%		$	154.0			14	%
Currency exchange rate fluctuations		(1.0	)						(9.5	)
Constant currency Latin America Pawn merchandise sales	$	49.3			8	%		$	144.5			7	%
Latin America Pawn segment profit before tax	$	10.3			6	%		$	28.6			13	%
Currency exchange rate fluctuations		(0.1	)						(1.1	)
Constant currency Latin America Pawn segment profit before tax	$	10.2			5	%		$	27.5			9	%