Business Wire | Nov 17, 2021 04:52PM EST

EZCORP Reports Fourth Quarter and Full Year Fiscal 2021 Results

Nov. 17, 2021

AUSTIN, Texas--(BUSINESS WIRE)--Nov. 17, 2021--EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its fiscal fourth quarter and full year ended September 30, 2021.

All amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") unless otherwise noted. Comparisons shown in this release are to the same period in the prior year unless otherwise noted.

FOURTH QUARTER HIGHLIGHTS

* Pawn Loans Outstanding (PLO) up 34% and up 12% compared to the third quarter. * Total revenue increased 15% and net revenue increased 33%. * Merchandise sales gross profit margin was 41% up from 31%. * Diluted earnings per share was $0.03, compared to a diluted loss per share of $0.42. On an adjusted basis1, diluted earnings per share was $0.11, compared to diluted earnings per share of $0.08. * Return on Earning Assets (ROEA) improved to 175% from 154%.

CEO COMMENTARY AND OUTLOOK

Chief Executive Officer Jason Kulas stated, "I am pleased with our results in the fourth quarter and for the fiscal year, and am proud the team has executed on the strategy we put in place at the end of fiscal 2020. We are improving the customer experience, embracing technological improvements, and have launched our new loyalty program which will be rolled out in the majority of stores by the end of the calendar year. Our key financial metrics continue to improve sequentially due to the initiatives that we have taken throughout the year. We credit our team members who have embraced the renewed emphasis on culture and serving our customers while focusing on innovative ways to improve the core pawn business, grow PLO and increase margins.

"We are seeing strong signs of recovery from the pandemic and stimulus impact in the U.S., with Latin America slightly lagging due to the concerns over the Delta variant.

"The integration of the 139 stores we acquired this year is going well, and our current acquisition pipeline remains robust. In addition, we recently invested in a company that gives us increased geographical diversification by having interests in pawn stores in the Caribbean.

"As we continue to grow our footprint outside of the US, I am delighted to announce the recent promotion of Blair Powell to President of Global Pawn with management responsibility for all of our pawn operations worldwide. Blair has over 30 years of experience in the industry and has been serving as President of US Pawn for the past year. I am confident that this more streamlined global structure will enhance the in-store experience, optimize expenses and further drive profitability.

"Looking ahead toward fiscal 2022, we remain committed to maintaining operating excellence, a strong balance sheet and cost discipline while pursuing sustainable growth. Our customers and team members are critical to our success. We strive to be our customers' first and best choice for their short-term cash needs and for affordable pre-owned and recycled goods. Enhanced training and diversity and inclusion programs are in place to help develop team members and improve productivity and retention. We are appreciative of our team members' excellent execution and passion for pawn, and we are enthusiastic about the year ahead."

CONSOLIDATED RESULTS

Three Months Ended September 30 As Reported Adjusted^1

in millions, except per share 2021 2020 2021 2020amounts



Total Revenues $ 192.4 $ 166.8 $ 188.7 $ 166.8

Net Revenues $ 119.3 $ 89.6 $ 117.2 $ 89.6

Income (Loss), Before Tax $ 4.5 $ (28.7 ) $ 9.0 $ 3.3

Net Income (Loss) $ 1.6 $ (23.3 ) $ 6.0 $ 4.2

Diluted Earnings (Loss) Per Share $ 0.03 $ (0.42 ) $ 0.11 $ 0.08

EBITDA $ 17.2 $ (16.0 ) $ 18.1 $ 12.3

Twelve Months Ended September 30

As Reported

Adjusted1

in millions, except per share amounts

2021

2020

2021

2020

Total Revenues

$

729.6

$

822.8

$

724.1

$

822.8

Net Revenues

$

449.5

$

449.2

$

446.3

$

451.5

Income (Loss), Before Tax

$

16.1

$

(70.1

)

$

31.1

$

29.4

Net Income (Loss)

$

8.6

$

(68.5

)

$

21.0

$

21.6

Diluted Earnings (Loss) Per Share

$

0.15

$

(1.24

)

$

0.38

$

0.39

EBITDA

$

66.4

$

(20.0

)

$

67.5

$

66.3

* Diluted earnings per share was $0.03 for the fourth quarter, compared to a loss of $0.42. On an adjusted basis, diluted earnings per share was $0.11, compared to $0.08. For the full year, diluted earnings per share was $0.15, compared to a loss of $1.24. On an adjusted basis, diluted earnings per share for the year was $0.38, compared to $0.39. * For the fourth quarter, income before taxes improved 116% from a loss of $28.7 million to income of $4.5 million. Adjusted EBITDA increased 47% from $12.3 million to $18.1 million. For the full year, income before taxes improved by 123% to $16.1 million from a loss of $70.1 million and adjusted EBITDA increased 2% to $67.5 million from $66.3 million. * PLO significantly increased to $175.9 million, up 34% and 12% on a sequential basis. On a same-store basis2, PLO increased 29% year-over-year and 12% sequentially. * In the fourth quarter, total revenues increased 15% and net revenues increased 33%, reflecting improved PSC and merchandise sales gross profit. For the full year, total revenues decreased 11% and net revenues were flat, reflecting lower average PLO (driving lower PSC) for the year, offset by improved sales profit margins. * Merchandise sales gross profit margin was 41% in the fourth quarter, up from 31%. For the full year, merchandise sales gross profit margin was 42% compared to 33%. These improvements reflect the commitment to improving the core business by driving down aged general merchandise (now less than 1% of total general merchandise inventory) and focusing on selling inventory in the first 90 days. * For the fourth quarter, PSC increased 32% due to an increase in the average PLO balance during the quarter. Though PLO significantly increased during the year, average PLO for fiscal 2021 was lower than in fiscal 2020, which led to a full year PSC decrease of 5%. * Net inventory increased 16% year-over-year and 20% sequentially, reflecting an increase in pawn activity. Due to significant improvements at the store level, inventory turnover remained strong at a flat 2.8x for the fourth quarter and increased from 2.4x to 2.9x for the year. * In the fourth quarter, store expenses increased $11.1 million or 14.3%, primarily due to the store count increase of 14.2% and increased incentive compensation. On a same-store basis, store expenses increased 7%. In addition, general and administrative expenses increased $11.8 million or 314%, primarily due to increased incentive compensation. For the full year, when removing the fiscal 2020 incentive compensation reversal of $20.9 million, store expenses on a same-store basis decreased $15.9 million or 5% and G&A expenses decreased $14.6 million or 21%. * Cash and cash equivalents at the end of the quarter was $253.7 million, down $50.9 million or 17% and $30.0 million or 11% on a sequential basis. The decrease is primarily due to the increase in PLO and the acquisition of new stores.

SEGMENT RESULTS

U.S. Pawn

* PLO continued to increase, ending the year up 28% (27% on a same store basis) and up 16% compared to the end of the third quarter. * In the fourth quarter, total revenue was up 12% and net revenues increased 21%, reflecting increasing PSC, higher sales and improved merchandise sales gross profit. For the full year, total revenues decreased 13% and net revenues decreased 3%, reflecting lower average PLO for the year (driving lower PSC) offset by improved sales profit margins. * For the fourth quarter, merchandise sales gross profit gross margins continued to remain high at 43% compared to 37%. During the year, merchandise sales gross profit gross margins increased 768 bps to 44%, reflecting a focus on improving retailing and lower levels of aged general merchandise inventory (which improved to 0.7% from 4.3% of total merchandise inventory). * PSC increased 22% in the fourth quarter as a result of higher average PLO. Though PLO significantly increased during the year, the average PLO for the year was lower than in fiscal 2020 which led to a full year PSC decrease of 6%. * Net inventory increased 9% and 19% sequentially. Inventory turnover continued to improve, increasing to 2.7x from 2.5x for the prior year quarter and increasing to 2.7x from 2.3x for the year. * In the fourth quarter, store expenses increased 9% or $5.4 million to $65.1 million, primarily due to the increase of incentive compensation of approximately $7.0 million, reflecting improved performance compared to the prior year. For the full year, when removing the fiscal 2020 incentive compensation reversal, store expenses on a same-store basis decreased $11.9 million or 4%, reflecting expense optimization. * Segment contribution increased $13.3 million to $20.9 million in the fourth quarter and increased $12.4 million to $85.5 million for the year. On an adjusted basis, segment contribution increased $10.2 million in the quarter and decreased $3.5 million in the year. * Segment store count increased by 11 during the year resulting from the acquisition in the Houston, Texas area completed in May.

Latin America Pawn

* PLO significantly improved, increasing 60% to $40.0 million (51% on constant currency basis). On a sequential basis, PLO was flat compared to a 5% sequential decrease in the prior-year quarter. On a same store basis, PLO increased 37% (29% on a constant currency basis) and decreased 2% (increased 2% on a constant currency basis) sequentially. * In the fourth quarter, total revenue was up 27% (18% on a constant currency basis), while net revenues increased 91% (78% on a constant currency basis). For the fiscal year, total revenues were down 3% (6% on a constant currency basis), while net revenues increased by 14% (11% on a constant currency basis) reflecting significantly improved margins. * Merchandise sales gross profit margins significantly improved in the fourth quarter to 34% compared to 13%. During the year, merchandise sales gross profit gross margins increased 1,270 bps to 35% (up 1,266 bps to 35% on a constant currency basis), reflecting a focus on improving retailing and lower levels of aged general merchandise inventory (which improved to 0.3% from 7.8% of total merchandise inventory). * PSC increased by 66% in the fourth quarter to $20.0 million (up 55% to $18.7 million on a constant currency basis) as a result of higher average PLO for the quarter. For the fiscal year, PSC increased 1% (down 2% on a constant currency basis) as a result of lower average PLO for the year. * Net inventory increased 42% (34% on a constant currency basis), but was up 24% sequentially (up 31% on a constant currency basis). Inventory turnover remains strong at 3.3x down from 3.8x for the prior year quarter and increased substantially for the year to 3.7x from 2.8x. * In the fourth quarter, store expenses increased $7.1 million or 43% ($4.9 million or 30% on a constant currency basis) primarily due to growth in store count and the increase in incentive compensation, reflecting improved performance compared to fiscal 2020. Same-store expenses increased $2.4 million or 15% ($0.9 million or 5% on a constant currency basis). For the full year, when removing the fiscal 2020 incentive compensation reversal, store expenses on a same-store basis increased $1.7 million or 2% (down 1% on a constant currency basis). * Segment contribution for the fourth quarter was $6.1 million ($5.8 million on a constant currency basis), compared to a segment loss of $3.9 million in the prior year quarter. For the year, segment contribution was up by $44.0 million to $17.3 million (a $43.2 million increase to $16.7 million on a constant currency basis). On an adjusted basis, the increase in segment contribution for the fourth quarter was $7.0 million to $6.3 million and the increase for the year was $5.2 million to $17.6 million. * Segment store count increased by 5 de novo stores during the fourth quarter and increased by 132 stores for the year through acquisitions and de novo stores.

FORM 10-K

EZCORP's Annual Report on Form 10-K for fiscal 2021 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. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.

CONFERENCE CALL

EZCORP will host a conference call on Thursday, November 18, 2021, at 7:00 am Central Time to discuss Fourth Quarter and Full Year Fiscal 2021 results. Analysts and institutional investors may participate on the conference call by dialing (833) 579-0921, Conference ID: 1962857, or internationally by dialing (778) 560-2579. 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 merchandise, primarily collateral forfeited from pawn lending operations and pre-owned and recycled 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 Russell 2000 Index, S&P 1000 Index and Nasdaq Composite Index.

Follow us on social media:

Facebook EZPAWN Official https://www.facebook.com/EZPAWN/

EZCORP Instagram Official https://www.instagram.com/ezcorp_official/

EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/

EZCORP Linked In https://www.linkedin.com/company/ezcorp/

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.

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. "Free cash flow," which is a non-GAAP measure, includes certain adjustments to cash flow from operating activities.

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.

Twelve Months Ended September 30 As Reported Adjusted^1

in millions, except per share 2021 2020 2021 2020amounts



Total Revenues $ 729.6 $ 822.8 $ 724.1 $ 822.8

Net Revenues $ 449.5 $ 449.2 $ 446.3 $ 451.5

Income (Loss), Before Tax $ 16.1 $ (70.1 ) $ 31.1 $ 29.4

Net Income (Loss) $ 8.6 $ (68.5 ) $ 21.0 $ 21.6

Diluted Earnings (Loss) Per Share $ 0.15 $ (1.24 ) $ 0.38 $ 0.39

EBITDA $ 66.4 $ (20.0 ) $ 67.5 $ 66.3

* Diluted earnings per share was $0.03 for the fourth quarter, compared to a loss of $0.42. On an adjusted basis, diluted earnings per share was $0.11, compared to $0.08. For the full year, diluted earnings per share was $0.15, compared to a loss of $1.24. On an adjusted basis, diluted earnings per share for the year was $0.38, compared to $0.39. * For the fourth quarter, income before taxes improved 116% from a loss of $28.7 million to income of $4.5 million. Adjusted EBITDA increased 47% from $12.3 million to $18.1 million. For the full year, income before taxes improved by 123% to $16.1 million from a loss of $70.1 million and adjusted EBITDA increased 2% to $67.5 million from $66.3 million. * PLO significantly increased to $175.9 million, up 34% and 12% on a sequential basis. On a same-store basis2, PLO increased 29% year-over-year and 12% sequentially. * In the fourth quarter, total revenues increased 15% and net revenues increased 33%, reflecting improved PSC and merchandise sales gross profit. For the full year, total revenues decreased 11% and net revenues were flat, reflecting lower average PLO (driving lower PSC) for the year, offset by improved sales profit margins. * Merchandise sales gross profit margin was 41% in the fourth quarter, up from 31%. For the full year, merchandise sales gross profit margin was 42% compared to 33%. These improvements reflect the commitment to improving the core business by driving down aged general merchandise (now less than 1% of total general merchandise inventory) and focusing on selling inventory in the first 90 days. * For the fourth quarter, PSC increased 32% due to an increase in the average PLO balance during the quarter. Though PLO significantly increased during the year, average PLO for fiscal 2021 was lower than in fiscal 2020, which led to a full year PSC decrease of 5%. * Net inventory increased 16% year-over-year and 20% sequentially, reflecting an increase in pawn activity. Due to significant improvements at the store level, inventory turnover remained strong at a flat 2.8x for the fourth quarter and increased from 2.4x to 2.9x for the year. * In the fourth quarter, store expenses increased $11.1 million or 14.3%, primarily due to the store count increase of 14.2% and increased incentive compensation. On a same-store basis, store expenses increased 7%. In addition, general and administrative expenses increased $11.8 million or 314%, primarily due to increased incentive compensation. For the full year, when removing the fiscal 2020 incentive compensation reversal of $20.9 million, store expenses on a same-store basis decreased $15.9 million or 5% and G&A expenses decreased $14.6 million or 21%. * Cash and cash equivalents at the end of the quarter was $253.7 million, down $50.9 million or 17% and $30.0 million or 11% on a sequential basis. The decrease is primarily due to the increase in PLO and the acquisition of new stores.

SEGMENT RESULTS

U.S. Pawn

* PLO continued to increase, ending the year up 28% (27% on a same store basis) and up 16% compared to the end of the third quarter. * In the fourth quarter, total revenue was up 12% and net revenues increased 21%, reflecting increasing PSC, higher sales and improved merchandise sales gross profit. For the full year, total revenues decreased 13% and net revenues decreased 3%, reflecting lower average PLO for the year (driving lower PSC) offset by improved sales profit margins. * For the fourth quarter, merchandise sales gross profit gross margins continued to remain high at 43% compared to 37%. During the year, merchandise sales gross profit gross margins increased 768 bps to 44%, reflecting a focus on improving retailing and lower levels of aged general merchandise inventory (which improved to 0.7% from 4.3% of total merchandise inventory). * PSC increased 22% in the fourth quarter as a result of higher average PLO. Though PLO significantly increased during the year, the average PLO for the year was lower than in fiscal 2020 which led to a full year PSC decrease of 6%. * Net inventory increased 9% and 19% sequentially. Inventory turnover continued to improve, increasing to 2.7x from 2.5x for the prior year quarter and increasing to 2.7x from 2.3x for the year. * In the fourth quarter, store expenses increased 9% or $5.4 million to $65.1 million, primarily due to the increase of incentive compensation of approximately $7.0 million, reflecting improved performance compared to the prior year. For the full year, when removing the fiscal 2020 incentive compensation reversal, store expenses on a same-store basis decreased $11.9 million or 4%, reflecting expense optimization. * Segment contribution increased $13.3 million to $20.9 million in the fourth quarter and increased $12.4 million to $85.5 million for the year. On an adjusted basis, segment contribution increased $10.2 million in the quarter and decreased $3.5 million in the year. * Segment store count increased by 11 during the year resulting from the acquisition in the Houston, Texas area completed in May.

Latin America Pawn

* PLO significantly improved, increasing 60% to $40.0 million (51% on constant currency basis). On a sequential basis, PLO was flat compared to a 5% sequential decrease in the prior-year quarter. On a same store basis, PLO increased 37% (29% on a constant currency basis) and decreased 2% (increased 2% on a constant currency basis) sequentially. * In the fourth quarter, total revenue was up 27% (18% on a constant currency basis), while net revenues increased 91% (78% on a constant currency basis). For the fiscal year, total revenues were down 3% (6% on a constant currency basis), while net revenues increased by 14% (11% on a constant currency basis) reflecting significantly improved margins. * Merchandise sales gross profit margins significantly improved in the fourth quarter to 34% compared to 13%. During the year, merchandise sales gross profit gross margins increased 1,270 bps to 35% (up 1,266 bps to 35% on a constant currency basis), reflecting a focus on improving retailing and lower levels of aged general merchandise inventory (which improved to 0.3% from 7.8% of total merchandise inventory). * PSC increased by 66% in the fourth quarter to $20.0 million (up 55% to $18.7 million on a constant currency basis) as a result of higher average PLO for the quarter. For the fiscal year, PSC increased 1% (down 2% on a constant currency basis) as a result of lower average PLO for the year. * Net inventory increased 42% (34% on a constant currency basis), but was up 24% sequentially (up 31% on a constant currency basis). Inventory turnover remains strong at 3.3x down from 3.8x for the prior year quarter and increased substantially for the year to 3.7x from 2.8x. * In the fourth quarter, store expenses increased $7.1 million or 43% ($4.9 million or 30% on a constant currency basis) primarily due to growth in store count and the increase in incentive compensation, reflecting improved performance compared to fiscal 2020. Same-store expenses increased $2.4 million or 15% ($0.9 million or 5% on a constant currency basis). For the full year, when removing the fiscal 2020 incentive compensation reversal, store expenses on a same-store basis increased $1.7 million or 2% (down 1% on a constant currency basis). * Segment contribution for the fourth quarter was $6.1 million ($5.8 million on a constant currency basis), compared to a segment loss of $3.9 million in the prior year quarter. For the year, segment contribution was up by $44.0 million to $17.3 million (a $43.2 million increase to $16.7 million on a constant currency basis). On an adjusted basis, the increase in segment contribution for the fourth quarter was $7.0 million to $6.3 million and the increase for the year was $5.2 million to $17.6 million. * Segment store count increased by 5 de novo stores during the fourth quarter and increased by 132 stores for the year through acquisitions and de novo stores.

FORM 10-K

EZCORP's Annual Report on Form 10-K for fiscal 2021 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. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.

CONFERENCE CALL

EZCORP will host a conference call on Thursday, November 18, 2021, at 7:00 am Central Time to discuss Fourth Quarter and Full Year Fiscal 2021 results. Analysts and institutional investors may participate on the conference call by dialing (833) 579-0921, Conference ID: 1962857, or internationally by dialing (778) 560-2579. 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 merchandise, primarily collateral forfeited from pawn lending operations and pre-owned and recycled 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 Russell 2000 Index, S&P 1000 Index and Nasdaq Composite Index.

Follow us on social media:

Facebook EZPAWN Official https://www.facebook.com/EZPAWN/

EZCORP Instagram Official https://www.instagram.com/ezcorp_official/

EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/

EZCORP Linked In https://www.linkedin.com/company/ezcorp/

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.

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. "Free cash flow," which is a non-GAAP measure, includes certain adjustments to cash flow from operating activities.

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.

EZCORP, Inc.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended Twelve Months Ended September 30, September 30,

(in thousands, except per 2021 2020 2021 2020share amounts)

(Unaudited)

Revenues:

Merchandise sales $ 111,982 $ 105,118 $ 442,798 $ 498,213

Jewelry scrapping sales 7,518 6,244 26,025 47,953

Pawn service charges 72,840 55,231 260,196 272,638

Other revenues 104 246 532 3,973

Total revenues 192,444 166,839 729,551 822,777

Merchandise cost of goods 66,346 72,770 257,218 334,481 sold

Jewelry scrapping cost of 6,772 4,512 22,848 38,041 goods sold

Other cost of revenues - (39 ) - 1,054

Net revenues 119,326 89,596 449,485 449,201

Operating expenses:

Store expenses 88,576 77,506 330,837 336,770

General and 15,625 3,778 56,495 54,133 administrative

Impairment of goodwill,intangible and other - 7,606 - 54,666 assets

Depreciation and 7,592 7,653 30,672 30,827 amortization

(Gain) loss on sale ordisposal of assets and (7 ) (459 ) 83 801 other

Other charges (268 ) 20,388 229 20,388

Total operating expenses 111,518 116,472 418,316 497,585

Operating income (loss) 7,808 (26,876 ) 31,169 (48,384 )

Interest expense 5,635 5,883 22,177 22,472

Interest income (559 ) (761 ) (2,477 ) (3,173 )

Equity in net (income)loss of unconsolidated (1,394 ) (3,467 ) (3,803 ) 2,429 affiliates

Other (income) expense (401 ) 198 (790 ) (17 )

Income (loss) before 4,527 (28,729 ) 16,062 (70,095 )income taxes

Income tax expense 2,974 (5,389 ) 7,450 (1,632 )(benefit)

Net income (loss) $ 1,553 $ (23,340 ) $ 8,612 $ (68,463 )



Basic earnings (loss) per $ 0.03 $ (0.42 ) $ 0.15 $ (1.24 )share

Diluted earnings (loss) $ 0.03 $ (0.42 ) $ 0.15 $ (1.24 )per share



Weighted-average basic 56,057 55,070 55,744 55,313 shares outstanding

Weighted-average diluted 56,441 55,070 55,949 55,313 shares outstanding



EZCORP, Inc.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

September 30, 2021

September 30, 2020

Assets:

Current assets:

Cash and cash equivalents

$

253,667

$

304,542

Restricted cash

9,957

8,011

Pawn loans

175,901

131,323

Pawn service charges receivable, net

29,337

20,580

Inventory, net

110,989

95,891

Notes receivable, net

-

-

Prepaid expenses and other current assets

31,010

32,903

Total current assets

610,861

593,250

Investments in unconsolidated affiliates

37,724

32,458

Property and equipment, net

53,811

56,986

Right-of-use asset, net

200,990

183,809

Goodwill

285,758

257,582

Intangible assets, net

62,104

58,638

Notes receivable, net

1,181

1,148

Deferred tax asset, net

9,746

8,931

Other assets

4,736

4,221

Total assets

$

1,266,911

$

1,197,023

Liabilities and equity:

Current liabilities:

Current maturities of long-term debt, net

$

-

$

213

Accounts payable, accrued expenses and other current liabilities

90,268

71,504

Customer layaway deposits

12,557

11,008

Lease liability

52,263

49,742

Total current liabilities

155,088

132,467

Long-term debt, net

264,186

251,016

Deferred tax liability, net

3,684

524

Lease liability

161,330

153,040

Other long-term liabilities

10,385

10,849

Total liabilities

594,673

547,896

Commitments and contingencies (Note 13)

Stockholders' equity:

Class A Non-Voting Common Stock, par value $0.01 per share; shares authorized: 100 million; 53,086,438 issued and outstanding as of September 30, 2021; and issued and outstanding of 52,332,848 as of September 30, 2020

530

521

Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171 as of September 30, 2021 and 2020

30

30

Additional paid-in capital

403,312

398,475

Retained earnings

326,781

318,169

Accumulated other comprehensive loss

(58,415

)

(68,068

)

Total equity

672,238

649,127

Total liabilities and equity

$

1,266,911

$

1,197,023

EZCORP, Inc.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share September 30, September 30,amounts) 2021 2020



Assets:

Current assets:

Cash and cash equivalents $ 253,667 $ 304,542

Restricted cash 9,957 8,011

Pawn loans 175,901 131,323

Pawn service charges receivable, net 29,337 20,580

Inventory, net 110,989 95,891

Notes receivable, net - -

Prepaid expenses and other current assets 31,010 32,903

Total current assets 610,861 593,250

Investments in unconsolidated affiliates 37,724 32,458

Property and equipment, net 53,811 56,986

Right-of-use asset, net 200,990 183,809

Goodwill 285,758 257,582

Intangible assets, net 62,104 58,638

Notes receivable, net 1,181 1,148

Deferred tax asset, net 9,746 8,931

Other assets 4,736 4,221

Total assets $ 1,266,911 $ 1,197,023



Liabilities and equity:

Current liabilities:

Current maturities of long-term debt, net $ - $ 213

Accounts payable, accrued expenses and other 90,268 71,504 current liabilities

Customer layaway deposits 12,557 11,008

Lease liability 52,263 49,742

Total current liabilities 155,088 132,467

Long-term debt, net 264,186 251,016

Deferred tax liability, net 3,684 524

Lease liability 161,330 153,040

Other long-term liabilities 10,385 10,849

Total liabilities 594,673 547,896

Commitments and contingencies (Note 13)

Stockholders' equity:

Class A Non-Voting Common Stock, par value $0.01per share; shares authorized: 100 million;53,086,438 issued and outstanding as of September 530 521 30, 2021; and issued and outstanding of52,332,848 as of September 30, 2020

Class B Voting Common Stock, convertible, parvalue $0.01 per share; shares authorized: 3 30 30 million; issued and outstanding: 2,970,171 as ofSeptember 30, 2021 and 2020

Additional paid-in capital 403,312 398,475

Retained earnings 326,781 318,169

Accumulated other comprehensive loss (58,415 ) (68,068 )

Total equity 672,238 649,127

Total liabilities and equity $ 1,266,911 $ 1,197,023

EZCORP, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Twelve Months Ended September 30,

(in thousands)

2021

2020

Operating activities:

Net income (loss)

$

8,612

$

(68,463

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

30,672

30,827

Amortization of debt discount and deferred financing costs

13,797

13,200

Amortization of right-of-use asset

48,480

45,649

Accretion of notes receivable discount and deferred compensation fee

-

(821

)

Deferred income taxes

3,283

(8,393

)

Impairment of goodwill, intangibles and other assets

-

54,666

Other adjustments

(185

)

1,652

Provision for inventory reserve

(8,003

)

2,577

Stock compensation expense

3,946

(5,094

)

Equity in net (income) loss from investment in unconsolidated affiliates

(3,803

)

2,429

Changes in operating assets and liabilities, net of business acquisitions:

Service charges and fees receivable

(7,332

)

11,021

Inventory

371

14,466

Prepaid expenses, other current assets and other assets

7,373

(875

)

Accounts payable, accrued expenses and other liabilities

(54,209

)

(37,401

)

Customer layaway deposits

1,256

(1,647

)

Income taxes

2,180

(4,715

)

Net cash provided by operating activities

46,438

49,078

Investing activities:

Loans made

(601,638

)

(568,368

)

Loans repaid

351,092

394,469

Recovery of pawn loan principal through sale of forfeited collateral

208,551

304,323

Capital expenditures, net

(23,601

)

(28,526

)

Acquisitions, net of cash acquired

(19,015

)

-

Principal collections on notes receivable

-

8,000

Net cash (used in) provided by investing activities

(84,611

)

109,898

Financing activities:

Taxes paid related to net share settlement of equity awards

(839

)

(1,459

)

Payout of deferred consideration

-

(350

)

Proceeds from borrowings, net of issuance costs

-

912

Payments on assumed debt and other borrowings

(15,414

)

(198

)

Repurchase of common stock

-

(5,158

)

Net cash used in financing activities

(16,253

)

(6,253

)

Effect of exchange rate changes on cash and cash equivalents and restricted cash

5,497

(2,612

)

Net (decrease) increase in cash and cash equivalents and restricted cash

(48,929

)

150,111

Cash and cash equivalents and restricted cash at beginning of period

312,553

162,442

Cash and cash equivalents and restricted cash at end of period

$

263,624

$

312,553

Supplemental disclosure of cash flow information

Cash and cash equivalents

$

253,667

$

304,542

Restricted cash

9,957

8,011

Total cash and cash equivalents and restricted cash

$

263,624

$

312,553

Cash paid during the period for interest

$

8,230

$

8,489

Cash paid during the period for income taxes, net

3,696

9,753

Non-cash investing and financing activities:

Pawn loans forfeited and transferred to inventory

$

212,756

$

241,252

Transfer of consideration for current period acquisition

1,545

-

Acquisition earn-out contingency

4,608

-

Accrued acquisition consideration held as restricted cash

1,986

-

EZCORP, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Twelve Months Ended September 30,

(in thousands) 2021 2020



Operating activities:

Net income (loss) $ 8,612 $ (68,463 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization 30,672 30,827

Amortization of debt discount and deferred financing 13,797 13,200 costs

Amortization of right-of-use asset 48,480 45,649

Accretion of notes receivable discount and deferred - (821 )compensation fee

Deferred income taxes 3,283 (8,393 )

Impairment of goodwill, intangibles and other assets - 54,666

Other adjustments (185 ) 1,652

Provision for inventory reserve (8,003 ) 2,577

Stock compensation expense 3,946 (5,094 )

Equity in net (income) loss from investment in (3,803 ) 2,429 unconsolidated affiliates

Changes in operating assets and liabilities, net of business acquisitions:

Service charges and fees receivable (7,332 ) 11,021

Inventory 371 14,466

Prepaid expenses, other current assets and other 7,373 (875 )assets

Accounts payable, accrued expenses and other (54,209 ) (37,401 )liabilities

Customer layaway deposits 1,256 (1,647 )

Income taxes 2,180 (4,715 )

Net cash provided by operating activities 46,438 49,078

Investing activities:

Loans made (601,638 ) (568,368 )

Loans repaid 351,092 394,469

Recovery of pawn loan principal through sale of 208,551 304,323 forfeited collateral

Capital expenditures, net (23,601 ) (28,526 )

Acquisitions, net of cash acquired (19,015 ) -

Principal collections on notes receivable - 8,000

Net cash (used in) provided by investing activities (84,611 ) 109,898

Financing activities:

Taxes paid related to net share settlement of equity (839 ) (1,459 )awards

Payout of deferred consideration - (350 )

Proceeds from borrowings, net of issuance costs - 912

Payments on assumed debt and other borrowings (15,414 ) (198 )

Repurchase of common stock - (5,158 )

Net cash used in financing activities (16,253 ) (6,253 )

Effect of exchange rate changes on cash and cash 5,497 (2,612 )equivalents and restricted cash

Net (decrease) increase in cash and cash equivalents (48,929 ) 150,111 and restricted cash

Cash and cash equivalents and restricted cash at 312,553 162,442 beginning of period

Cash and cash equivalents and restricted cash at end $ 263,624 $ 312,553 of period



Supplemental disclosure of cash flow information

Cash and cash equivalents $ 253,667 $ 304,542

Restricted cash 9,957 8,011

Total cash and cash equivalents and restricted cash $ 263,624 $ 312,553



Cash paid during the period for interest $ 8,230 $ 8,489

Cash paid during the period for income taxes, net 3,696 9,753



Non-cash investing and financing activities:

Pawn loans forfeited and transferred to inventory $ 212,756 $ 241,252

Transfer of consideration for current period 1,545 - acquisition

Acquisition earn-out contingency 4,608 -

Accrued acquisition consideration held as restricted 1,986 - cash

EZCORP, Inc.

OPERATING SEGMENT RESULTS

(Unaudited)

Three Months Ended September 30, 2021

(in thousands)

U.S. Pawn

Latin America Pawn

Other International

Total Segments

Corporate Items

Consolidated

Revenues:

Merchandise sales

$

80,950

$

31,032

$

-

$

111,982

$

-

$

111,982

Jewelry scrapping sales

5,767

1,751

-

7,518

-

7,518

Pawn service charges

52,885

19,955

-

72,840

-

72,840

Other revenues

22

-

82

104

-

104

Total revenues

139,624

52,738

82

192,444

-

192,444

Merchandise cost of goods sold

45,858

20,488

-

66,346

-

66,346

Jewelry scrapping cost of goods sold

5,130

1,642

-

6,772

-

6,772

Net revenues

88,636

30,608

82

119,326

-

119,326

Segment and corporate expenses (income):

Store expenses

65,088

23,488

-

88,576

-

88,576

General and administrative

-

-

-

-

15,625

15,625

Depreciation and amortization

2,678

1,912

-

4,590

3,002

7,592

Gain on sale or disposal of assets and other

-

(6

)

-

(6

)

(1

)

(7

)

Other charges

-

(268

)

-

(268

)

-

(268

)

Interest expense

-

-

-

-

5,635

5,635

Interest income

-

(197

)

-

(197

)

(362

)

(559

)

Equity in net income of unconsolidated affiliates

-

-

(1,394

)

(1,394

)

-

(1,394

)

Other (income) expense

-

(465

)

10

(455

)

54

(401

)

Segment contribution

$

20,870

$

6,144

$

1,466

$

28,480

Income (loss) before income taxes

$

28,480

$

(23,953

)

$

4,527

EZCORP, Inc.

OPERATING SEGMENT RESULTS

(Unaudited)

Three Months Ended September 30, 2021

Latin Other Total Corporate(in thousands) U.S. Pawn America International Segments Items Consolidated Pawn



Revenues:

Merchandise $ 80,950 $ 31,032 $ - $ 111,982 $ - $ 111,982 sales

Jewelryscrapping 5,767 1,751 - 7,518 - 7,518 sales

Pawn service 52,885 19,955 - 72,840 - 72,840 charges

Other revenues 22 - 82 104 - 104

Total revenues 139,624 52,738 82 192,444 - 192,444

Merchandisecost of goods 45,858 20,488 - 66,346 - 66,346 sold

Jewelryscrapping cost 5,130 1,642 - 6,772 - 6,772 of goods sold

Net revenues 88,636 30,608 82 119,326 - 119,326

Segment andcorporate expenses(income):

Store expenses 65,088 23,488 - 88,576 - 88,576

General and - - - - 15,625 15,625 administrative

Depreciationand 2,678 1,912 - 4,590 3,002 7,592 amortization

Gain on saleor disposal of - (6 ) - (6 ) (1 ) (7 )assets andother

Other charges - (268 ) - (268 ) - (268 )

Interest - - - - 5,635 5,635 expense

Interest - (197 ) - (197 ) (362 ) (559 )income

Equity in netincome of - - (1,394 ) (1,394 ) - (1,394 )unconsolidatedaffiliates

Other (income) - (465 ) 10 (455 ) 54 (401 )expense

Segment $ 20,870 $ 6,144 $ 1,466 $ 28,480 contribution

Income (loss)before income $ 28,480 $ (23,953 ) $ 4,527 taxes

Three Months Ended September 30, 2020

(in thousands)

U.S. Pawn

Latin America Pawn

Other International

Total Segments

Corporate Items

Consolidated

Revenues:

Merchandise sales

$

77,862

$

27,256

$

-

$

105,118

$

-

$

105,118

Jewelry scrapping sales

3,786

2,458

-

6,244

-

6,244

Pawn service charges

43,222

12,009

-

55,231

-

55,231

Other revenues

43

(50

)

253

246

-

246

Total revenues

124,913

41,673

253

166,839

-

166,839

Merchandise cost of goods sold

49,056

23,714

-

72,770

-

72,770

Jewelry scrapping cost of goods sold

2,634

1,878

-

4,512

-

4,512

Other cost of revenues

-

32

(71

)

(39

)

-

(39

)

Net revenues

73,223

16,049

324

89,596

-

89,596

Segment and corporate expenses (income):

Store expenses

59,687

16,423

1,396

77,506

-

77,506

General and administrative

-

-

-

-

3,778

3,778

Impairment of goodwill, intangible and other assets

-

2

25

27

7,579

7,606

Depreciation and amortization

2,705

1,839

8

4,552

3,101

7,653

Loss (gain) on sale or disposal of assets and other

151

-

-

151

(610

)

(459

)

Other Charges

3,106

1,715

3,802

8,623

11,765

20,388

Interest expense

-

255

85

340

5,543

5,883

Interest income

-

(425

)

-

(425

)

(336

)

(761

)

Equity in net income of unconsolidated affiliates

-

-

(3,467

)

(3,467

)

-

(3,467

)

Other expense (income)

-

147

(8

)

139

59

198

Segment contribution (loss)

$

7,574

$

(3,907

)

$

(1,517

)

$

2,150

Income (loss) before income taxes

$

2,150

$

(30,879

)

$

(28,729

)

Three Months Ended September 30, 2020

Latin Other Total Corporate(in thousands) U.S. Pawn America International Segments Items Consolidated Pawn



Revenues:

Merchandise $ 77,862 $ 27,256 $ - $ 105,118 $ - $ 105,118 sales

Jewelryscrapping 3,786 2,458 - 6,244 - 6,244 sales

Pawn service 43,222 12,009 - 55,231 - 55,231 charges

Other revenues 43 (50 ) 253 246 - 246

Total revenues 124,913 41,673 253 166,839 - 166,839

Merchandisecost of goods 49,056 23,714 - 72,770 - 72,770 sold

Jewelryscrapping cost 2,634 1,878 - 4,512 - 4,512 of goods sold

Other cost of - 32 (71 ) (39 ) - (39 )revenues

Net revenues 73,223 16,049 324 89,596 - 89,596

Segment andcorporate expenses(income):

Store expenses 59,687 16,423 1,396 77,506 - 77,506

General and - - - - 3,778 3,778 administrative

Impairment ofgoodwill, - 2 25 27 7,579 7,606 intangible andother assets

Depreciationand 2,705 1,839 8 4,552 3,101 7,653 amortization

Loss (gain) onsale ordisposal of 151 - - 151 (610 ) (459 )assets andother

Other Charges 3,106 1,715 3,802 8,623 11,765 20,388

Interest - 255 85 340 5,543 5,883 expense

Interest - (425 ) - (425 ) (336 ) (761 )income

Equity in netincome of - - (3,467 ) (3,467 ) - (3,467 )unconsolidatedaffiliates

Other expense - 147 (8 ) 139 59 198 (income)

Segmentcontribution $ 7,574 $ (3,907 ) $ (1,517 ) $ 2,150 (loss)

Income (loss)before income $ 2,150 $ (30,879 ) $ (28,729 )taxes



Twelve Months Ended September 30, 2021

(in thousands)

U.S. Pawn

Latin America Pawn

Other International

Total Segments

Corporate Items

Consolidated

Revenues:

Merchandise sales

$

341,495

$

101,303

$

-

$

442,798

$

-

$

442,798

Jewelry scrapping sales

15,260

10,765

-

26,025

-

26,025

Pawn service charges

196,721

63,475

-

260,196

-

260,196

Other revenues

105

7

420

532

-

532

Total revenues

553,581

175,550

420

729,551

-

729,551

Merchandise cost of goods sold

191,039

66,179

-

257,218

-

257,218

Jewelry scrapping cost of goods sold

13,001

9,847

-

22,848

-

22,848

Net revenues

349,541

99,524

420

449,485

-

449,485

Segment and corporate expenses (income):

Store expenses

253,344

77,493

-

330,837

-

330,837

General and administrative

-

-

-

-

56,495

56,495

Depreciation and amortization

10,650

7,371

-

18,021

12,651

30,672

Loss (gain) on sale or disposal of assets and other

27

(6

)

-

21

62

83

Other charges

-

229

-

229

-

229

Interest expense

-

-

-

-

22,177

22,177

Interest income

-

(2,016

)

-

(2,016

)

(461

)

(2,477

)

Equity in net income of unconsolidated affiliates

-

-

(3,803

)

(3,803

)

-

(3,803

)

Other (income) expense

-

(840

)

(173

)

(1,013

)

223

(790

)

Segment contribution

$

85,520

$

17,293

$

4,396

$

107,209

Income (loss) before income taxes

$

107,209

$

(91,147

)

$

16,062

Twelve Months Ended September 30, 2021

Latin Other Total Corporate(in thousands) U.S. Pawn America International Segments Items Consolidated Pawn



Revenues:

Merchandise $ 341,495 $ 101,303 $ - $ 442,798 $ - $ 442,798 sales

Jewelryscrapping 15,260 10,765 - 26,025 - 26,025 sales

Pawn service 196,721 63,475 - 260,196 - 260,196 charges

Other revenues 105 7 420 532 - 532

Total revenues 553,581 175,550 420 729,551 - 729,551

Merchandisecost of goods 191,039 66,179 - 257,218 - 257,218 sold

Jewelryscrapping cost 13,001 9,847 - 22,848 - 22,848 of goods sold

Net revenues 349,541 99,524 420 449,485 - 449,485

Segment andcorporate expenses(income):

Store expenses 253,344 77,493 - 330,837 - 330,837

General and - - - - 56,495 56,495 administrative

Depreciationand 10,650 7,371 - 18,021 12,651 30,672 amortization

Loss (gain) onsale ordisposal of 27 (6 ) - 21 62 83 assets andother

Other charges - 229 - 229 - 229

Interest - - - - 22,177 22,177 expense

Interest - (2,016 ) - (2,016 ) (461 ) (2,477 )income

Equity in netincome of - - (3,803 ) (3,803 ) - (3,803 )unconsolidatedaffiliates

Other (income) - (840 ) (173 ) (1,013 ) 223 (790 )expense

Segment $ 85,520 $ 17,293 $ 4,396 $ 107,209 contribution

Income (loss)before income $ 107,209 $ (91,147 ) $ 16,062 taxes

Twelve Months Ended September 30, 2020

(in thousands)

U.S. Pawn

Latin America Pawn

Other International

Total Segments

Corporate Items

Consolidated

Revenues:

Merchandise sales

$

391,921

$

106,292

$

-

$

498,213

$

-

$

498,213

Jewelry scrapping sales

36,691

11,262

-

47,953

-

47,953

Pawn service charges

210,081

62,557

-

272,638

-

272,638

Other revenues

150

-

3,823

3,973

-

3,973

Total revenues

638,843

180,111

3,823

822,777

-

822,777

Merchandise cost of goods sold

251,544

82,937

-

334,481

-

334,481

Jewelry scrapping cost of goods sold

28,064

9,977

-

38,041

-

38,041

Other cost of revenues

-

101

953

1,054

-

1,054

Net revenues

359,235

87,096

2,870

449,201

-

449,201

Segment and corporate expenses (income):

Store expenses

261,608

69,916

5,246

336,770

-

336,770

General and administrative

-

-

-

-

54,133

54,133

Impairment of goodwill, intangible and other assets

10,000

35,938

1,149

47,087

7,579

54,666

Depreciation and amortization

11,030

7,315

68

18,413

12,414

30,827

Loss (gain) on sale or disposal of assets and other

385

(72

)

(20

)

293

508

801

Other Charges

3,106

1,715

3,802

8,623

11,765

20,388

Interest expense

-

685

549

1,234

21,238

22,472

Interest income

-

(1,586

)

-

(1,586

)

(1,587

)

(3,173

)

Equity in net loss of unconsolidated affiliates

-

-

2,429

2,429

-

2,429

Other (income) expense

-

(156

)

6

(150

)

133

(17

)

Segment contribution (loss)

$

73,106

$

(26,659

)

$

(10,359

)

$

36,088

Income (loss) before income taxes

$

36,088

$

(106,183

)

$

(70,095

)

Twelve Months Ended September 30, 2020

Latin Other Total Corporate(in thousands) U.S. Pawn America International Segments Items Consolidated Pawn



Revenues:

Merchandise $ 391,921 $ 106,292 $ - $ 498,213 $ - $ 498,213 sales

Jewelryscrapping 36,691 11,262 - 47,953 - 47,953 sales

Pawn service 210,081 62,557 - 272,638 - 272,638 charges

Other revenues 150 - 3,823 3,973 - 3,973

Total revenues 638,843 180,111 3,823 822,777 - 822,777

Merchandisecost of goods 251,544 82,937 - 334,481 - 334,481 sold

Jewelryscrapping cost 28,064 9,977 - 38,041 - 38,041 of goods sold

Other cost of - 101 953 1,054 - 1,054 revenues

Net revenues 359,235 87,096 2,870 449,201 - 449,201

Segment andcorporate expenses(income):

Store expenses 261,608 69,916 5,246 336,770 - 336,770

General and - - - - 54,133 54,133 administrative

Impairment ofgoodwill, 10,000 35,938 1,149 47,087 7,579 54,666 intangible andother assets

Depreciationand 11,030 7,315 68 18,413 12,414 30,827 amortization

Loss (gain) onsale ordisposal of 385 (72 ) (20 ) 293 508 801 assets andother

Other Charges 3,106 1,715 3,802 8,623 11,765 20,388

Interest - 685 549 1,234 21,238 22,472 expense

Interest - (1,586 ) - (1,586 ) (1,587 ) (3,173 )income

Equity in netloss of - - 2,429 2,429 - 2,429 unconsolidatedaffiliates

Other (income) - (156 ) 6 (150 ) 133 (17 )expense

Segmentcontribution $ 73,106 $ (26,659 ) $ (10,359 ) $ 36,088 (loss)

Income (loss)before income $ 36,088 $ (106,183 ) $ (70,095 )taxes



EZCORP, Inc.

STORE COUNT ACTIVITY

(Unaudited)

Three Months Ended September 30, 2021

U.S. Pawn

Latin America Pawn

Consolidated

As of June 30, 2021

516

627

1,143

New locations opened

-

5

5

As of September 30, 2021

516

632

1,148

EZCORP, Inc.

STORE COUNT ACTIVITY

(Unaudited)

Three Months Ended September 30, 2021

U.S. Pawn Latin America Consolidated Pawn



As of June 30, 2021 516 627 1,143

New locations opened - 5 5

As of September 30, 2021 516 632 1,148

Three Months Ended September 30, 2020

U.S. Pawn

Latin America Pawn

Other International

Consolidated

As of June 30, 2020

511

496

22

1,029

New locations opened

-

7

-

7

Locations sold, combined or closed

(6

)

(3

)

(22

)

(31

)

As of September 30, 2020

505

500

-

1,005

Three Months Ended September 30, 2020

U.S. Latin Other Pawn America International Consolidated Pawn



As of June 30, 2020 511 496 22 1,029

New locations opened - 7 - 7

Locations sold, combined or (6 ) (3 ) (22 ) (31 )closed

As of September 30, 2020 505 500 - 1,005



Twelve Months Ended September 30, 2021

U.S. Pawn

Latin America Pawn

Consolidated

As of September 30, 2020

505

500

1,005

New locations opened

-

15

15

Locations acquired

11

128

139

Locations sold, combined or closed

-

(11

)

(11

)

As of September 30, 2021

516

632

1,148

Twelve Months Ended September 30, 2021

Latin U.S. Pawn America Consolidated Pawn



As of September 30, 2020 505 500 1,005

New locations opened - 15 15

Locations acquired 11 128 139

Locations sold, combined or closed - (11 ) (11 )

As of September 30, 2021 516 632 1,148

Twelve Months Ended September 30, 2020

U.S. Pawn

Latin America Pawn

Other International

Consolidated

As of September 30, 2019

512

480

22

1,014

New locations opened

-

23

-

23

Locations sold, combined or closed

(7

)

(3

)

(22

)

(32

)

As of September 30, 2020

505

500

-

1,005

Non-GAAP Financial Information (Unaudited)

In addition to the financial information prepared in conformity with accounting principles generally accepted in the United States ("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. 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 twelve months ended September 30, 2021 and 2020 were as follows:

Twelve Months Ended September 30, 2020

U.S. Latin Other Pawn America International Consolidated Pawn



As of September 30, 2019 512 480 22 1,014

New locations opened - 23 - 23

Locations sold, combined or (7 ) (3 ) (22 ) (32 )closed

As of September 30, 2020 505 500 - 1,005

Non-GAAP Financial Information (Unaudited)

In addition to the financial information prepared in conformity with accounting principles generally accepted in the United States ("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. 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 twelve months ended September 30, 2021 and 2020 were as follows:

Three Months Twelve Months Ended September 30, Ended September 30, September 30,

2021 2020 2021 2020 2021 2020



Mexican peso 20.5 22.3 20.0 22.1 20.2 21.1

Guatemalan quetzal 7.6 7.6 7.6 7.5 7.6 7.5

Honduran lempira 23.9 24.2 23.5 24.3 23.8 24.3

Peruvian sol 4.1 3.6 4.0 3.5 3.7 3.4

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 Twelve Months Ended September 30, September 30,

(in millions) 2021 2020 2021 2020



Net income (loss) $ 1.6 $ (23.3 ) $ 8.6 $ (68.5 )

Interest expense 5.6 5.9 22.2 22.5

Interest income (0.6 ) (0.8 ) (2.5 ) (3.2 )

Income tax expense (benefit) 3.0 (5.4 ) 7.5 (1.6 )

Depreciation and amortization 7.6 7.7 30.7 30.8

EBITDA $ 17.2 $ (16.0 ) $ 66.5 $ (20.0 )

Total Revenues

Net Revenues

Income (Loss) Before Tax

Tax Effect

Net Income (Loss)

Diluted EPS

EBITDA

2021 Q4 Reported

$

192.4

$

119.3

$

4.5

$

2.9

$

1.6

$

0.03

$

17.2

Acquisition expenses

-

-

1.5

0.1

1.4

0.02

1.5

Peru reserve

-

-

(0.3

)

-

(0.3

)

-

(0.3

)

Non cash net interest expense

-

-

3.6

0.1

3.5

0.06

-

Constant currency impact

(3.7

)

(2.1

)

(0.3

)

(0.1

)

(0.2

)

-

(0.3

)

2021 Q4 Adjusted

$

188.7

$

117.2

$

9.0

$

3.0

$

6.0

$

0.11

$

18.1

Income Net Total Net (Loss) Tax Income Diluted EBITDA Revenues Revenues Before Effect (Loss) EPS Tax



2021 Q4 $ 192.4 $ 119.3 $ 4.5 $ 2.9 $ 1.6 $ 0.03 $ 17.2 Reported

Acquisition - - 1.5 0.1 1.4 0.02 1.5 expenses

Peru - - (0.3 ) - (0.3 ) - (0.3 )reserve

Non cashnet - - 3.6 0.1 3.5 0.06 - interestexpense

Constantcurrency (3.7 ) (2.1 ) (0.3 ) (0.1 ) (0.2 ) - (0.3 )impact

2021 Q4 $ 188.7 $ 117.2 $ 9.0 $ 3.0 $ 6.0 $ 0.11 $ 18.1 Adjusted



Total Revenues

Net Revenues

Income (Loss) Before Tax

Tax Effect

Net Income (Loss)

Diluted EPS

EBITDA

2021 Full Year Reported

$

729.6

$

449.5

$

16.1

$

7.5

$

8.6

$

0.15

$

66.5

Acquisition expenses

-

-

2.0

0.4

1.6

0.03

2.0

Peru reserve

-

-

0.2

0.1

0.1

-

0.2

FY20 Contract write-off over-accrual

-

-

(0.4

)

(0.1

)

(0.3

)

(0.01

)

(0.4

)

Non cash net interest expense

-

-

13.8

2.3

11.5

0.21

-

Constant currency impact

(5.5

)

(3.2

)

(0.6

)

(0.1

)

(0.5

)

-

(0.8

)

2021 Full Year Adjusted

$

724.1

$

446.3

$

31.1

$

10.1

$

21.0

$

0.38

$

67.5

Income Net Total Net (Loss) Tax Income Diluted EBITDA Revenues Revenues Before Effect (Loss) EPS Tax



2021 FullYear $ 729.6 $ 449.5 $ 16.1 $ 7.5 $ 8.6 $ 0.15 $ 66.5 Reported

Acquisition - - 2.0 0.4 1.6 0.03 2.0 expenses

Peru reserve - - 0.2 0.1 0.1 - 0.2

FY20Contract - - (0.4 ) (0.1 ) (0.3 ) (0.01 ) (0.4 )write-offover-accrual

Non cash netinterest - - 13.8 2.3 11.5 0.21 - expense

Constantcurrency (5.5 ) (3.2 ) (0.6 ) (0.1 ) (0.5 ) - (0.8 )impact

2021 FullYear $ 724.1 $ 446.3 $ 31.1 $ 10.1 $ 21.0 $ 0.38 $ 67.5 Adjusted



Total Revenues

Net Revenues

(Loss) Income Before Tax

Tax Effect

Net (Loss) Income

Diluted EPS

EBITDA

2020 Q4 Reported

$

166.8

$

89.6

$

(28.7

)

$

(5.4

)

$

(23.3

)

$

(0.42

)

$

(16.0

)

Other Charges

-

-

20.4

3.7

16.7

0.30

20.4

Impairment of intangible assets

-

-

7.6

1.7

5.9

0.11

7.6

Non cash interest

-

-

3.3

0.8

2.5

0.05

-

Other adjustments

-

-

0.7

(1.7

)

2.4

0.04

0.3

2020 Q4 Adjusted

$

166.8

$

89.6

$

3.3

$

(0.9

)

$

4.2

$

0.08

$

12.3

(Loss) Net Total Net Income Tax (Loss) Diluted EBITDA Revenues Revenues Before Effect Income EPS Tax



2020 Q4 $ 166.8 $ 89.6 $ (28.7 ) $ (5.4 ) $ (23.3 ) $ (0.42 ) $ (16.0 )Reported

Other - - 20.4 3.7 16.7 0.30 20.4 Charges

Impairmentof - - 7.6 1.7 5.9 0.11 7.6 intangibleassets

Non cash - - 3.3 0.8 2.5 0.05 - interest

Other - - 0.7 (1.7 ) 2.4 0.04 0.3 adjustments

2020 Q4 $ 166.8 $ 89.6 $ 3.3 $ (0.9 ) $ 4.2 $ 0.08 $ 12.3 Adjusted



Total Revenues

Net Revenues

(Loss) Income Before Tax

Tax Effect

Net (Loss) Income

Diluted EPS

EBITDA

2020 Full Year Reported

$

822.8

$

449.2

$

(70.1

)

$

(1.6

)

$

(68.5

)

$

(1.24

)

$

(20.0

)

Other Charges

-

-

20.4

1.9

18.5

0.34

20.4

Impairment of intangible assets

-

-

47.1

4.5

42.6

0.77

47.1

ROU asset impairment

-

-

5.0

0.5

4.5

0.08

5.0

COVID-19 related expenses

-

-

1.4

0.1

1.3

0.02

1.4

Shrink/robbery/property loss (US stores)

-

2.3

2.3

0.2

2.1

0.04

2.3

Mexico VAT adjustment costs

-

-

1.1

0.1

1.0

0.02

1.1

CCV adjustments

-

-

7.1

0.7

6.4

0.12

7.1

IT Project write-offs

-

-

2.6

0.2

2.4

0.04

2.6

Non cash interest expense

-

-

12.4

1.2

11.2

0.20

-

Other adjustments

-

-

0.1

-

0.1

-

(0.7

)

2020 Full Year Adjusted

$

822.8

$

451.5

$

29.4

$

7.8

$

21.6

$

0.39

$

66.3

(Loss) Net Total Net Income Tax (Loss) Diluted EBITDA Revenues Revenues Before Effect Income EPS Tax



2020 FullYear $ 822.8 $ 449.2 $ (70.1 ) $ (1.6 ) $ (68.5 ) $ (1.24 ) $ (20.0 )Reported

Other - - 20.4 1.9 18.5 0.34 20.4 Charges

Impairmentof - - 47.1 4.5 42.6 0.77 47.1 intangibleassets

ROU asset - - 5.0 0.5 4.5 0.08 5.0 impairment

COVID-19related - - 1.4 0.1 1.3 0.02 1.4 expenses

Shrink/robbery/property - 2.3 2.3 0.2 2.1 0.04 2.3 loss (USstores)

Mexico VATadjustment - - 1.1 0.1 1.0 0.02 1.1 costs

CCV - - 7.1 0.7 6.4 0.12 7.1 adjustments

IT Project - - 2.6 0.2 2.4 0.04 2.6 write-offs

Non cashinterest - - 12.4 1.2 11.2 0.20 - expense

Other - - 0.1 - 0.1 - (0.7 )adjustments

2020 FullYear $ 822.8 $ 451.5 $ 29.4 $ 7.8 $ 21.6 $ 0.39 $ 66.3 Adjusted



Three Months Ended September 30, 2021

Twelve Months Ended September 30, 2021

(in millions)

U.S. Dollar Amount

Percentage Change YOY

U.S. Dollar Amount

Percentage Change YOY

Consolidated revenue

$

192.4

15

%

$

729.6

(11

)%

Currency exchange rate fluctuations

(3.7

)

(5.5

)

Constant currency consolidated revenue

$

188.7

13

%

$

724.1

(12

)%

Consolidated net revenue

$

119.3

33

%

$

449.5

-

%

Currency exchange rate fluctuations

(2.1

)

(3.2

)

Constant currency consolidated net revenue

$

117.2

31

%

$

446.3

(1

)%

Consolidated net inventory

$

111.0

16

%

$

111.0

16

%

Currency exchange rate fluctuations

(1.8

)

(1.8

)

Constant currency consolidated net inventory

$

109.2

14

%

$

109.2

14

%

Latin America Pawn net revenue

$

30.6

91

%

$

99.5

14

%

Currency exchange rate fluctuations

(2.1

)

(3.1

)

Constant currency Latin America Pawn net revenue

$

28.5

77

%

$

96.4

11

%

Latin America Pawn PLO

$

40.0

60

%

$

40.0

60

%

Currency exchange rate fluctuations

(2.3

)

(2.3

)

Constant currency Latin America Pawn PLO

$

37.7

51

%

$

37.7

51

%

Latin America Pawn PSC revenues

$

20.0

66

%

$

63.5

1

%

Currency exchange rate fluctuations

(1.3

)

(2.0

)

Constant currency Latin America Pawn PSC revenues

$

18.6

55

%

$

61.5

(2

)%

Latin America Pawn merchandise sales

$

31.0

14

%

$

101.3

(5

)%

Currency exchange rate fluctuations

(2.3

)

(3.1

)

Constant currency Latin America Pawn merchandise sales

$

28.7

5

%

$

98.2

(8

)%

Latin America Pawn segment profit before tax

$

6.1

257

%

$

17.3

165

%

Currency exchange rate fluctuations

(0.3

)

(0.6

)

Constant currency Latin America Pawn segment profit before tax

$

5.8

249

%

$

16.7

163

%

View source version on businesswire.com: https://www.businesswire.com/news/home/20211117006361/en/

CONTACT: Email: Investor_Relations@ezcorp.com Phone: (512) 314-2220