EZCORP Stock Earnings Reports

PLO Growth:

Pawn loan originations (PLO) grew 14% to a record $279.2 million.

Profitability: Q4 EBITDA rose 15% to $36.7 million, with diluted EPS increasing 13% to $0.26 per share.

Total Revenue for Fiscal 2024: Breakdown for the full year performance shows PLO at historic levels and merchandise sales experiencing significant growth.

Cash Position: Cash balance decreased to $171 million, primarily due to the payoff of convertible notes and increased PLO activity.

Strategic Growth:

• Store Expansion: Opened 21 stores in Q4, with a total of 1,279 stores across the U.S. and Latin America.
• Increased Demand: Economic pressures have driven more customers to seek short-term cash solutions via pawn services.
• Customer Engagement: EZ+ Rewards membership grew by 44%, now at 5.4 million members, contributing to increased foot traffic and transaction volume.

Regional Highlights:

• U.S. Performance: U.S. revenue in Q4 reached $212 million, up 9% year-over-year; jewelry pawn loans benefited from rising gold prices.
• Latin America Growth: Revenues increased 17% to $88.9 million, with a significant focus on enhancing operational efficiencies and customer service.

Operational Efficiency:

• Investment in Technology: Online payment collections showed strong growth, allowing staff to focus more on customer service rather than administrative tasks.
• Employee Development: Better scheduling processes and training programs were introduced to improve work-life balance and employee performance.
• M&A Opportunities: EZCORP maintains a robust pipeline for potential acquisitions, particularly in Latin America.
• Capital Allocation: Plans are in place for managing upcoming convertible notes due in May 2025, with options including cash repayment, traditional debt, or equity-linked instruments.

Risks and Considerations:

• Inflation: While inflation is stabilizing in the U.S., its impact and customer behavior in Latin America remain under observation.
• Inventory Management: Continuous monitoring of inventory levels is crucial, especially as PLO demand grows.

Conclusion:

EZCORP has demonstrated significant growth in both revenues and profitability, driven by strategic expansions and enhancements in core operations. Investors should note the company’s strong performance metrics, customer engagement strategies, and a proactive approach toward managing financial obligations as indicators of continued progress and potential for growth in fiscal 2025.