EZCORP(US:EZPW)2025-04-28 20:03Financial Performance - Net income attributable to EZCORP, Inc. increased by 18% to $25.4 million[122]. - Gross profit for the six months ended March 31, 2025, increased by 3% to $91.8 million, with a 16% increase to $103.1 million on a constant currency basis[131]. - Net income for the six months ended March 31, 2025, was $56.4 million, a 13% increase from $49.9 million in the prior year[136]. - General and administrative expenses rose by 8% to $19.6 million, primarily due to labor costs[123]. - General and administrative expenses increased by $3.5 million, or 10%, primarily due to labor costs[137]. U.S. Pawn Segment - The U.S. Pawn segment reported a 9% increase in pawn service charges (PSC) to $87.5 million for the three months ended March 31, 2025, compared to $80.0 million in the same period of 2024[111]. - Gross profit for the U.S. Pawn segment increased by 8% to $133.4 million, driven by higher PSC and merchandise sales[111]. - U.S. Pawn segment gross profit reached $272.1 million, an 8% increase year-over-year[126]. - Average monthly ending pawn loan balance per store in U.S. Pawn increased by 12% to $393[126]. - Total revenues for U.S. Pawn increased by 7%, with gross profit up by 8% due to higher pawn service charges[112]. - Segment contribution for U.S. Pawn increased by 16% to $47.1 million, reflecting improved operational performance[114]. - Jewelry scrapping sales in the U.S. Pawn segment increased by 33% to $16.9 million, with gross profit from these sales rising by 94% to $3.7 million[111]. - The gross margin on merchandise sales decreased to 36% from 37% year-over-year[111]. - Average monthly ending pawn loan balance per store rose by 13% to $390 for the three months ended March 31, 2025, compared to $345 in the prior year[111]. - General merchandise as a percentage of pawn loan outstanding in U.S. Pawn decreased to 32%, while jewelry increased to 68%[111]. Latin America Pawn Segment - Latin America Pawn segment gross profit increased by 3% to $45.1 million, with a constant currency increase of 18%[115]. - Pawn service charges rose by 4% to $28.3 million, reflecting a 19% increase on a constant currency basis[118]. - Merchandise sales grew by 5% to $52.6 million, with a 21% increase in constant currency[118]. - Segment contribution increased by 30% to $10.6 million, or 43% on a constant currency basis[120]. - Net inventory in Latin America Pawn increased by 23% to $113.4 million, with a 44% increase on a constant currency basis[119]. - Segment store count in Latin America Pawn increased to 742, with the addition of nine new stores and one acquisition[120]. - Latin America Pawn segment total revenues rose by 9% (25% on a constant currency basis) to $45.1 million, with gross profit increasing by 3% (18% on a constant currency basis) to $45.1 million[118]. Cash Flow and Capital Management - Cash and cash equivalents reached $505.2 million at March 31, 2025, compared to $170.5 million at September 30, 2024[140]. - Net cash provided by operating activities decreased by 42% to $36.5 million for the six months ended March 31, 2025[141]. - The company anticipates that cash flows from operations will be adequate to fund ongoing operations and strategic investments over the next twelve months[148]. - The company issued $300 million in 7.375% senior notes due 2032, with the full amount outstanding as of March 31, 2025[92]. - The company repurchased 3,178,147 shares of Class A Common Stock for $30.0 million under the stock repurchase program as of March 31, 2025[146]. Strategic Initiatives - The company is focused on expanding its operations through new store openings and acquisitions in both the U.S. and Latin America[98]. - The company focuses on three strategic pillars: strengthening the core, cost efficiency, and innovation for growth[94]. - The company anticipates that demand for pawn loans in Mexico will exceed downward pressures related to profit-sharing payments in fiscal 2024[99]. - The company uses constant currency results to evaluate its Latin America operations, with significant currency fluctuations noted between 2024 and 2025[105]. Risks and Forward-Looking Statements - The company includes forward-looking statements in its quarterly report, which are subject to risks and uncertainties that may affect future results[151]. - Actual results could differ materially from those expressed in forward-looking statements due to various risks beyond the company's control[151]. - The company disclaims any responsibility to publicly update forward-looking statements except as required by law[152].