EZCORP(EZPW) - 2025 Q1 - Quarterly Report

Financial Performance - Pawn service charges (PSC) increased by 11% to $87.9 million for the three months ended December 31, 2024, compared to$ 79.1 million in the same period of 2023[99]. - Gross profit for the U.S. Pawn segment rose by 9% to $138.7 million, up from$ 127.4 million year-over-year[99]. - Total revenues for the company increased by 7% (18% on a constant currency basis) with gross profit rising by 4% (14% on a constant currency basis)[106]. - Latin America Pawn segment gross profit increased by 4% to $46.7 million, with a 14% increase on a constant currency basis[106]. - Segment contribution for Latin America Pawn increased by 14% to$ 11.6 million (24% on a constant currency basis)[107]. - Segment contribution for Other Investments increased by 28% to $2.2 million, primarily due to an increase in equity in net income of unconsolidated affiliates[109]. - Net cash provided by operating activities increased by 21% year-over-year to$ 25.99 million[116]. - Cash and cash equivalents balance was $174.5 million at December 31, 2024, up from$ 170.5 million at September 30, 2024[114]. Operational Metrics - The average monthly ending pawn loan balance per store increased by 10% to $396, compared to$ 359 in the prior year[99]. - The total number of pawn stores increased to 1,283 as of December 31, 2024, from 1,237 a year earlier, with 4 new locations opened in the U.S.[96]. - The company announced an acquisition agreement for 53 pawn stores in Mexico, expected to close by October 31, 2024[86]. - Net inventory increased by 17%, aligning with the growth in pawn loans outstanding (PLO), which ended the quarter at $220.2 million, up 15%[100]. - Net inventory increased by 35% (57% on a constant currency basis), while inventory turnover decreased to 3.1x from 3.8x[107]. - The company reported a decrease in inventory turnover to 2.5x from 2.7x, indicating slower sales relative to inventory levels[101]. Sales and Margins - Jewelry scrapping sales gross profit surged by 131% to$ 3.5 million, reflecting a gross margin increase from 12% to 23%[99]. - Merchandise sales increased by 7% to $57.5 million, with a gross margin decrease to 30% from 32%[106]. - The gross margin on merchandise sales remained flat at 37%, with merchandise sales increasing by 3% to$ 128.8 million[99]. - Total revenues for the U.S. Pawn segment increased by 7%, driven by higher PSC and merchandise sales[100]. Expenses and Contributions - Store expenses rose by 8%, primarily due to increased labor costs, while segment contribution increased by 11% to $52.9 million[102]. - The company maintains a focus on expanding its operations through new store openings and acquisitions in both the U.S. and Latin America[90]. Forward-Looking Statements - The company includes forward-looking statements in its quarterly report, which are subject to risks and uncertainties[126]. - Actual results may differ materially from those expressed in forward-looking statements due to various risks beyond the company's control[126]. - The company disclaims any responsibility to publicly update forward-looking statements except as required by law[127].