EZCORP(US:EZPW)2025-07-31 14:00Financial Data and Key Metrics Changes - The company reported record third-quarter revenue of $319.9 million, up 14% year over year, with adjusted EBITDA rising 42% to $45.2 million and diluted EPS increasing 38% to $0.33 [3][10][19] - The total pawn loans outstanding (PLO) reached $293.2 million, reflecting a 12% year-over-year increase [17][20] - Cash at the end of the quarter was $472.1 million, down from $505.2 million last quarter, due to capital deployment into store acquisitions [8][9] Business Line Data and Key Metrics Changes - U.S. pawn segment revenue increased 11% year over year to $220 million, with PLO up 11% and inventory rising 36% [20][24] - Latin American segment revenue grew 21% to $99.9 million, with PLO up 16% [27][29] - Merchandise sales rose 10%, with same-store sales up 9%, supported by strong customer demand [10][11] Market Data and Key Metrics Changes - The company operates 1,336 pawn stores across the U.S. and Latin America, including 604 in Mexico [4][6] - The U.S. market continues to drive the majority of business, contributing 69% of revenue and 71% of gross profit [12] - In Latin America, the company has expanded its footprint with 791 stores across four countries, focusing on operational best practices [28][29] Company Strategy and Development Direction - The company is focused on expanding its store footprint and earning asset base, with a disciplined capital deployment strategy [5][6] - The EZ Plus rewards program has grown to 6.5 million members, accounting for over 70% of known customer transactions [13][14] - The strategy emphasizes investing in the platform, empowering employees, and delivering consistent service at scale [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to scale operations and deliver long-term value for shareholders, citing strong operational execution and a robust balance sheet [33][34] - The company anticipates continued growth in PLO and inventory efficiency, with a focus on capitalizing on acquisition opportunities [30][31] - Management acknowledged the impact of gold prices on margins but emphasized the ongoing demand for cash among consumers [100][101] Other Important Information - The company repurchased $3 million worth of shares during the quarter and provided an additional $3 million in secured loans to Founders One [9] - The acquisition pipeline remains robust, with a focus on both existing and new markets [39][90] Q&A Session Summary Question: What is driving the strong margin performance in U.S. retail? - Management attributed the strong margin performance to increased gold prices and improved lending practices [36][37] Question: Can you discuss the acquisition pipeline and market pricing? - Management indicated a strong balance sheet allows for opportunistic acquisitions, with a robust pipeline across existing and new markets [38][39] Question: Why is the company not buying back more stock? - Management emphasized prioritizing growth and scale over stock buybacks, despite recognizing the undervaluation of shares [47][51] Question: What is the focus on acquisitions in Latin America versus the U.S.? - Management stated that the focus is balanced between both regions, with significant opportunities in existing markets [89][94] Question: How is the digitization of storefronts progressing? - Management noted that while progress has been made, the company is still in the early stages of fully digitizing its storefronts [107][108]