Business Wire | Dec 14, 2020 05:22PM EST

EZCORP Reports Fourth Quarter Fiscal Year 2020 Results

Dec. 14, 2020

AUSTIN, Texas--(BUSINESS WIRE)--Dec. 14, 2020--EZCORP, Inc. (NASDAQ: EZPW) today announced results for its fourth quarter and fiscal year ended September 30, 2020.

All amounts in this release are from EZCORP continuing operations and 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.

Results for the fourth quarter of fiscal 2020 were impacted by lower pawn service charges related to stimulus payments and ongoing COVID-19 headwinds, as well as charges and non-cash write-downs associated with the Company's efforts to simplify and streamline its business and other COVID-19 impacts. Given the typical delay between growth in pawn loan originations and pawn service charges, near-term pawn service charge revenue trends will continue to lag the recent stabilization and rebound in new loans made and pawn loans outstanding.

CEO COMMENTARY AND OUTLOOK

Chief Executive Officer Jason Kulas stated, "We continue to make progress on key strategic initiatives. First, we implemented a number of initiatives that will result in a reduction of annual corporate expenses of more than $12 million beginning in fiscal 2021. We have also lowered store-level operating costs by $14 million on an annualized basis. While a majority of those store-level savings will be added back as transaction activity continues to grow, we are realizing significant expense reductions, with an ongoing focus on extracting further operating efficiencies. Second, we continue to strengthen our core pawn business by increasingly leveraging data analytics across geographies to optimize pricing, productivity and returns. Third, recent efforts to rationalize non-core activities have included closing our CASHMAX business in Canada. Finally, we remain focused on innovation to broaden customer engagement across channels, improve the customer experience and capture new business. Our digital pawn servicing platform, Lana, and our other digital efforts have been refocused on achieving these goals.

"At EZCORP, we are focused on optimizing the unique and essential elements of our core pawn business to address customers' short-term cash needs. We have implemented a culture of continuous operational improvements that will drive operating leverage as we grow and will improve earnings power and shareholder value over time. As we sharpen our focus on continuous improvement in our pawn business, our team is viewing all initiatives through the lens of whether they benefit our core business. We look forward to providing updates on these initiatives in future quarters."

RESULTS FOR FOURTH QUARTER OF FISCAL 2020

* Total revenues declined 22% to $166.9 million, and net revenues declined 26% to $89.6 million. These declines were driven by a reduction in revenue from pawn service charges (PSC), which was down 34% to $55.2 million as a result of lower average pawn loans outstanding (PLO) during the quarter. * PLO balance at the end of the quarter was $131.3 million, 34% below the prior-year quarter. Pawn loan demand was significantly reduced in the third quarter and into the fourth quarter following economic stimulus actions in the U.S. and constrained traffic in Latin America. Activity levels have started to normalize, with PLO increasing $18.0 million during the quarter as compared to the third quarter of fiscal 2020. * Operations expenses were $78.2 million, down $13.3 million, or 15%, $3.9 million of which is due to a reduction in accrued short-term and long-term incentive compensation. Administrative expenses decreased by $11.1 million due to a $17.0 million reduction in accrued short-term and long-term incentive compensation, offset by $4.9 million in increased labor costs. * Management implemented strategic initiatives to remove over $12 million in annual corporate expenses beginning in fiscal 2021 and $14 million related to store-level operating costs, a majority of which will be added back as transaction activity continues to increase. * Loss before taxes was $28.7 million and diluted loss per share was $0.42, compared to income before taxes of $0.4 million and diluted loss per share of $0.01, respectively, in the prior-year quarter. On an adjusted basis1, loss before taxes was $2.9 million and diluted earnings per share was $0.07, compared to profit before taxes of $10.0 million and diluted earnings per share of $0.13, respectively, in the prior-year quarter. * Net inventory of $95.9 million decreased 47%, reflecting annualized inventory turnover of 2.8x. Merchandise sales gross margin of 31% decreased 200 bps, but when excluding a $2.6 million increase in reserves resulting from the impact of COVID-19, merchandise sales gross margin was flat at 33%. * Cash and cash equivalents increased $147.0 million to $304.5 million as of the end of the quarter, with most of the increase attributable to the decline in PLO. * During the quarter, management began to implement cost savings and refocus initiatives designed to improve bottom line performance and position the Company for sustainable growth focused on the core pawn business. As a result of these initiatives, we recorded the following pre-tax charges in the quarter: $6.4 million in severance benefits related to the elimination of certain management positions; $4.9 million associated with the closure of the CASHMAX business in Canada and related operations; $4.1 million associated with the closure of four stores in U.S. Pawn and three stores in Latin America Pawn; and $5.0 million of other miscellaneous charges.

CONSOLIDATED RESULTS

Three Months Ended September 30in millions, except per share amounts

As Reported Adjusted^1

2020 2019 2020 2019



Total Revenues $ 166.9 $ 214.3 $ 170.9 $ 214.3

Net Revenues $ 89.6 $ 120.9 $ 91.3 $ 121.1

(Loss) Income from Continuing $ (28.7 ) $ 0.4 $ 2.9 $ 10.0 Operations, Before Tax

Net (Loss) Income from Continuing $ (23.3 ) $ (0.6 ) $ 3.8 $ 7.4 Operations

Diluted Earnings Per Share from $ (0.42 ) $ (0.01 ) $ 0.07 $ 0.13 Continuing Operations

Adjusted EBITDA^1 $ (16.0 ) $ 12.1 $ 12.0 $ 19.3

* Total revenues decreased 22% to $166.9 million. PSC was down 34% to $55.2 million due to lower average PLO during the quarter. PLO increased 16% from June 30 to September 30, compared to a 5% sequential gain in the same period of the prior year. * Merchandise sales declined 2%, driven primarily by lower inventory levels. * Scrap sales declined 72% due to a lack of diamond scrap sales in the quarter as compared to the prior year. Jewelry scrap activity was lower than the prior year in response to lower inventory levels, but the impact of lower volume was lessened by margin improvement to 28%, as compared to 10% in the prior-year quarter. Gross profit on scrap sales decreased 24% to $1.7 million. * Net revenues were down 26% to $89.6 million. Consolidated merchandise sales gross profit decreased 7% to $32.3 million, while consolidated merchandise sales gross margin was 31%. When excluding a $2.6 million increase in inventory reserves resulting from the impact of COVID-19, consolidated merchandise sales gross margin was 33%. * Consolidated operations expenses decreased 15% primarily due to cost-cutting initiatives at the store level. Total pawn store count increased 1%, consisting of a net 13 stores opened since the end of the prior-year quarter. Administrative expense decreased 78% to $3.1 million, primarily due to a $17.0 million reduction in accrued short-term and long-term incentive compensation, offset by $4.9 million in increased labor costs.

SEGMENT RESULTS

U.S. Pawn

* Total revenue was down 23%, reflecting the impact of lower average PLO on PSC revenue, which was down 32%. * PLO decreased 32% to $106.3 million, but increased $19.5 million, or 23%, since the end of June, compared to a 6% sequential increase during the same period of the prior year. * Gross profit on merchandise sales grew $0.7 million, or 2%, reflecting expanded sales margins, partially offset by a 3% reduction in merchandise sales volume, driven primarily by lower inventory levels. Merchandise sales gross margin was 37% (39%, when excluding an increase in inventory reserves of $1.4 million resulting from the impact of COVID-19), at the high end of our targeted range. Annualized inventory turns were 2.5x, a 32% increase over the prior year. Aged general merchandise inventory improved to 4% from 6% in the prior year. * Segment contribution decreased $14.6 million to $7.6 million. This decrease was the result of a $20.5 million reduction in PSC, partially offset by a $8.4 million reduction in operating expenses ($2.4 million of which attributable to a reduction in accrued short-term and long-term incentive compensation).

Latin America Pawn

* Merchandise sales grew 2%, to $27.3 million (11% to $30.0 million on a constant currency basis). Merchandise sales gross margin was 13% (17% when excluding an increase in inventory reserves of $1.2 million resulting from the impact of COVID-19). Aged general merchandise inventory increased to 8% from 6% in the prior year, but declined sequentially from 19% at the end of the prior quarter. * PSC decreased 38% to $12.0 million (down 32% to $13.1 million on a constant currency basis) as a result of lower average PLO for the quarter and a lower yield on pawn loans, reflecting our commitment to work with customers by negotiating reduced interest payments on a case-by-case basis. * Net revenues decreased 40% to $16.0 million (down 33% to $17.8 million on a constant currency basis) primarily due to lower PSC. * Operations expense was tightly managed, down 16% to $16.4 million. * Latin America Pawn added seven de novo stores in the quarter. New store openings typically pressure earnings in the short term as they ramp up, but drive higher profitability over time. * Segment loss for the quarter was $3.9 million ($4.2 million on a constant currency basis), compared to a contribution of $5.8 million in the prior year quarter, primarily reflecting lower PSC revenues.

FORM 10-K

EZCORP's Annual Report on Form 10-K for fiscal 2020 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 Tuesday, December 15, 2020, at 7:00 am Central Time to discuss fiscal fourth quarter results. Analysts and institutional investors may participate on the conference call by dialing (877) 407-0789, Conference ID: 13713707, or internationally by dialing (201) 689-8562. 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 loans in the United States and Latin America. We also sell merchandise, primarily collateral forfeited from pawn lending operations and used 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.

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 Fiscal Year Ended September 30, September 30,

2020 2019 2020 2019

(Unaudited)

(in thousands, except per share amounts)

Revenues:

Merchandise sales $ 105,118 $ 107,189 $ 498,213 $ 453,375

Jewelry scrapping sales 6,244 22,572 47,953 60,445

Pawn service charges 55,231 83,068 272,638 327,366

Other revenues 267 1,510 4,007 6,043

Total revenues 166,860 214,339 822,811 847,229

Merchandise cost of 72,770 72,325 334,481 297,508 goods sold

Jewelry scrapping cost 4,512 20,287 38,041 52,935 of goods sold

Other cost of revenues (39 ) 871 1,054 2,338

Net revenues 89,617 120,856 449,235 494,448

Operating expenses:

Operations 78,205 91,525 341,040 358,253

Administrative 3,100 14,167 49,897 55,990

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

Depreciation and 7,653 7,683 30,827 28,797 amortization

Loss on sale ordisposal of assets and (459 ) 756 801 4,399 other

Other charges 20,388 - 20,388 -

Total operating 116,493 114,131 497,619 447,439 expenses

Operating (loss) income (26,876 ) 6,725 (48,384 ) 47,009

Interest expense 5,883 5,425 22,472 32,637

Interest income (761 ) (1,449 ) (3,173 ) (11,086 )

Equity in net loss(income) of (3,467 ) 767 2,429 135 unconsolidatedaffiliates

Impairment ofinvestment in - - - 19,725 unconsolidatedaffiliates

Other (income) expense 198 1,545 (17 ) 1,424

Income from continuingoperations before (28,729 ) 437 (70,095 ) 4,174 income taxes

Income tax (benefit) (5,389 ) 1,029 (1,632 ) 2,406 expense

(Loss) income fromcontinuing operations, (23,340 ) (592 ) (68,463 ) 1,768 net of tax

Loss from discontinued - (53 ) - (457 )operations, net of tax

Net (loss) income (23,340 ) (645 ) (68,463 ) 1,311

Net loss attributableto noncontrolling - - - (1,230 )interest

Net (loss) incomeattributable to EZCORP, $ (23,340 ) $ (645 ) $ (68,463 ) $ 2,541 Inc.



Basic (loss) earningsper share attributable $ (0.42 ) $ (0.01 ) $ (1.24 ) $ 0.05 to EZCORP, Inc. -continuing operations

Diluted (loss) earningsper share attributable $ (0.42 ) $ (0.01 ) $ (1.24 ) $ 0.05 to EZCORP, Inc. -continuing operations



Weighted-average basic 55,070 55,446 55,313 55,341 shares outstanding

Weighted-averagediluted shares 55,070 55,446 55,313 55,984 outstanding

EZCORP, Inc. CONSOLIDATED BALANCE SHEETS(in thousands, except share and per share amounts)

September 30,

2020

2019

Assets:

Current assets:

Cash and cash equivalents

$

304,542

$

157,567

Restricted cash

8,011

4,875

Pawn loans

131,323

199,058

Pawn service charges receivable, net

20,580

31,802

Inventory, net

95,891

179,355

Notes receivable, net

-

7,182

Prepaid expenses and other current assets

32,903

25,921

Total current assets

593,250

605,760

Investments in unconsolidated affiliates

32,458

34,516

Property and equipment, net

56,986

67,357

Lease right-of-use asset

183,809

-

Goodwill

257,582

300,527

Intangible assets, net

58,638

68,044

Notes receivable, net

1,148

1,117

Deferred tax asset, net

8,931

1,998

Other assets

4,221

4,383

Total assets

$

1,197,023

$

1,083,702

Liabilities and equity:

Current liabilities:

Current maturities of long-term debt, net

$

213

$

214

Accounts payable, accrued expenses and other current liabilities

71,504

77,957

Customer layaway deposits

11,008

12,915

Lease liability

49,742

-

Total current liabilities

132,467

91,086

Long-term debt, net

251,016

238,380

Deferred tax liability, net

524

1,985

Lease liability

153,040

-

Other long-term liabilities

10,849

7,302

Total liabilities

547,896

338,753

Commitments and contingencies

Stockholders' equity:

Class A Non-Voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,332,848 as of September 30, 2020 and 52,565,064 as of September 30, 2019

521

526

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, 2020 and 2019

30

30

Additional paid-in capital

398,475

407,628

Retained earnings

318,169

389,163

Accumulated other comprehensive loss

(68,068

)

(52,398

)

Total equity

649,127

744,949

Total liabilities and equity

$

1,197,023

$

1,083,702

EZCORP, Inc.CONSOLIDATED BALANCE SHEETS(in thousands, except share and per share amounts)

September 30,

2020 2019



Assets:

Current assets:

Cash and cash equivalents $ 304,542 $ 157,567

Restricted cash 8,011 4,875

Pawn loans 131,323 199,058

Pawn service charges receivable, net 20,580 31,802

Inventory, net 95,891 179,355

Notes receivable, net - 7,182

Prepaid expenses and other current assets 32,903 25,921

Total current assets 593,250 605,760

Investments in unconsolidated affiliates 32,458 34,516

Property and equipment, net 56,986 67,357

Lease right-of-use asset 183,809 -

Goodwill 257,582 300,527

Intangible assets, net 58,638 68,044

Notes receivable, net 1,148 1,117

Deferred tax asset, net 8,931 1,998

Other assets 4,221 4,383

Total assets $ 1,197,023 $ 1,083,702



Liabilities and equity:

Current liabilities:

Current maturities of long-term debt, net $ 213 $ 214

Accounts payable, accrued expenses and other 71,504 77,957 current liabilities

Customer layaway deposits 11,008 12,915

Lease liability 49,742 -

Total current liabilities 132,467 91,086

Long-term debt, net 251,016 238,380

Deferred tax liability, net 524 1,985

Lease liability 153,040 -

Other long-term liabilities 10,849 7,302

Total liabilities 547,896 338,753

Commitments and contingencies

Stockholders' equity:

Class A Non-Voting Common Stock, par value $0.01per share; shares authorized: 100 million;issued and outstanding: 52,332,848 as of 521 526 September 30, 2020 and 52,565,064 as ofSeptember 30, 2019

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, 2020 and 2019

Additional paid-in capital 398,475 407,628

Retained earnings 318,169 389,163

Accumulated other comprehensive loss (68,068 ) (52,398 )

Total equity 649,127 744,949

Total liabilities and equity $ 1,197,023 $ 1,083,702

EZCORP, Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

Fiscal Year Ended September 30,

2020

2019

2018

(in thousands)

Operating activities:

Net (loss) income

$

(68,463

)

$

1,311

$

36,294

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

Depreciation and amortization

30,827

28,797

25,484

Amortization of debt discount and deferred financing costs

13,200

19,759

17,595

Amortization of lease right-of-use asset

45,649

-

-

Accretion of notes receivable discount and deferred compensation fee

(821

)

(4,524

)

(9,150

)

Deferred income taxes

(8,393

)

1,616

7,916

Impairment of goodwill, intangibles and other assets

54,666

-

-

Other adjustments

1,652

5,776

2,607

Reserve on jewelry scrap receivable

-

3,646

-

Stock compensation expense

(5,094

)

9,751

10,784

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

2,429

135

(5,529

)

Impairment of investment in unconsolidated affiliates

-

19,725

11,712

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

Pawn service charges receivable

11,021

(732

)

(1,788

)

Inventory

17,043

(493

)

(1,074

)

Prepaid expenses, other current assets and other assets

(875

)

5,732

477

Accounts payable, accrued expenses and other liabilities

(37,401

)

22,246

(3,271

)

Customer layaway deposits

(1,647

)

1,176

709

Income taxes, net of excess tax benefit from stock compensation

(4,715

)

(10,404

)

(3,785

)

Net cash provided by operating activities

49,078

103,517

88,981

Investing activities:

Loans made

(568,368

)

(737,585

)

(707,220

)

Loans repaid

394,469

434,142

421,331

Recovery of pawn loan principal through sale of forfeited collateral

304,323

288,502

266,962

Capital expenditures, net

(28,526

)

(38,839

)

(40,474

)

Acquisitions, net of cash acquired

-

(8,116

)

(93,165

)

Investment in unconsolidated affiliate

-

-

(14,036

)

Principal collections on notes receivable

8,000

34,067

32,396

Net cash provided by (used in) investing activities

109,898

(27,829

)

(134,206

)

Financing activities:

Taxes paid related to net share settlement of equity awards

(1,459

)

(3,288

)

(311

)

Payout of deferred consideration

(350

)

-

-

Proceeds from borrowings, net of issuance costs

912

1,064

171,409

Payments on borrowings

(198

)

(196,093

)

(3,510

)

Repurchase of common stock

(5,158

)

-

-

Net cash (used in) provided by financing activities

(6,253

)

(198,317

)

167,588

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

(2,612

)

(507

)

(654

)

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

150,111

(123,136

)

121,709

Cash and cash equivalents and restricted cash at beginning of period

162,442

285,578

163,869

Cash and cash equivalents and restricted cash at end of period

$

312,553

$

162,442

$

285,578

Supplemental disclosure of cash flow information

Cash and cash equivalents

$

304,542

$

157,567

$

285,311

Restricted cash

8,011

4,875

267

Total cash and cash equivalents and restricted cash

$

312,553

$

162,442

$

285,578

Cash paid during the period for interest

$

8,489

$

12,900

$

8,412

Cash paid during the period for income taxes, net

$

9,753

$

11,132

$

13,676

Non-cash investing and financing activities:

Pawn loans forfeited and transferred to inventory

$

241,252

$

301,357

$

274,590

EZCORP, Inc.CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

Fiscal Year Ended September 30,

2020 2019 2018

(in thousands)

Operating activities:

Net (loss) income $ (68,463 ) $ 1,311 $ 36,294

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

Depreciation and amortization 30,827 28,797 25,484

Amortization of debt discount and 13,200 19,759 17,595 deferred financing costs

Amortization of lease right-of-use 45,649 - - asset

Accretion of notes receivable discount (821 ) (4,524 ) (9,150 )and deferred compensation fee

Deferred income taxes (8,393 ) 1,616 7,916

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

Other adjustments 1,652 5,776 2,607

Reserve on jewelry scrap receivable - 3,646 -

Stock compensation expense (5,094 ) 9,751 10,784

Equity in net loss (gain) frominvestment in unconsolidated 2,429 135 (5,529 )affiliates

Impairment of investment in - 19,725 11,712 unconsolidated affiliates

Changes in operating assets andliabilities, net of business acquisitions:

Pawn service charges receivable 11,021 (732 ) (1,788 )

Inventory 17,043 (493 ) (1,074 )

Prepaid expenses, other current assets (875 ) 5,732 477 and other assets

Accounts payable, accrued expenses and (37,401 ) 22,246 (3,271 )other liabilities

Customer layaway deposits (1,647 ) 1,176 709

Income taxes, net of excess tax (4,715 ) (10,404 ) (3,785 )benefit from stock compensation

Net cash provided by operating 49,078 103,517 88,981 activities

Investing activities:

Loans made (568,368 ) (737,585 ) (707,220 )

Loans repaid 394,469 434,142 421,331

Recovery of pawn loan principal 304,323 288,502 266,962 through sale of forfeited collateral

Capital expenditures, net (28,526 ) (38,839 ) (40,474 )

Acquisitions, net of cash acquired - (8,116 ) (93,165 )

Investment in unconsolidated affiliate - - (14,036 )

Principal collections on notes 8,000 34,067 32,396 receivable

Net cash provided by (used in) 109,898 (27,829 ) (134,206 )investing activities

Financing activities:

Taxes paid related to net share (1,459 ) (3,288 ) (311 )settlement of equity awards

Payout of deferred consideration (350 ) - -

Proceeds from borrowings, net of 912 1,064 171,409 issuance costs

Payments on borrowings (198 ) (196,093 ) (3,510 )

Repurchase of common stock (5,158 ) - -

Net cash (used in) provided by (6,253 ) (198,317 ) 167,588 financing activities

Effect of exchange rate changes oncash and cash equivalents and (2,612 ) (507 ) (654 )restricted cash

Net increase (decrease) in cash and 150,111 (123,136 ) 121,709 cash equivalents and restricted cash

Cash and cash equivalents and 162,442 285,578 163,869 restricted cash at beginning of period

Cash and cash equivalents and $ 312,553 $ 162,442 $ 285,578 restricted cash at end of period

Supplemental disclosure of cash flow information

Cash and cash equivalents $ 304,542 $ 157,567 $ 285,311

Restricted cash 8,011 4,875 267

Total cash and cash equivalents and $ 312,553 $ 162,442 $ 285,578 restricted cash

Cash paid during the period for $ 8,489 $ 12,900 $ 8,412 interest

Cash paid during the period for income $ 9,753 $ 11,132 $ 13,676 taxes, net



Non-cash investing and financing activities:

Pawn loans forfeited and transferred $ 241,252 $ 301,357 $ 274,590 to inventory

EZCORP, Inc. OPERATING SEGMENT RESULTS(Unaudited and in thousands)

Three Months Ended September 30, 2020

U.S. Pawn

Latin America Pawn

Lana

Other International

Total Segments

Corporate Items

Consolidated

(in thousands)

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

)

21

253

267

-

267

Total revenues

124,913

41,673

21

253

166,860

-

166,860

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

21

324

89,617

-

89,617

Operating expenses (income):

Operations

59,687

16,423

699

1,396

78,205

-

78,205

Administrative

-

-

-

-

-

3,100

3,100

Impairment of goodwill, intangibles and other assets

-

2

-

25

27

7,579

7,606

Depreciation and amortization

2,705

1,839

332

8

4,884

2,769

7,653

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

151

-

-

-

151

(610

)

(459

)

Other Charges

3,106

1,715

3,258

3,802

11,881

8,507

20,388

Interest expense

-

255

-

85

340

5,543

5,883

Interest income

-

(425

)

-

-

(425

)

(336

)

(761

)

Equity in net loss of unconsolidated affiliates

-

-

-

(3,467

)

(3,467

)

-

(3,467

)

Other expense (income)

-

147

-

(8

)

139

59

198

Segment contribution (loss)

$

7,574

$

(3,907

)

$

(4,268

)

$

(1,517

)

$

(2,118

)

Income (loss) from continuing operations before income taxes

$

(2,118

)

$

(26,611

)

$

(28,729

)

EZCORP, Inc.OPERATING SEGMENT RESULTS(Unaudited and in thousands)

Three Months Ended September 30, 2020

Latin Other Total Corporate U.S. Pawn America Lana International Segments Items Consolidated Pawn

(in thousands)

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 ) 21 253 267 - 267

Total revenues 124,913 41,673 21 253 166,860 - 166,860

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 21 324 89,617 - 89,617

Operatingexpenses (income):

Operations 59,687 16,423 699 1,396 78,205 - 78,205

Administrative - - - - - 3,100 3,100

Impairment ofgoodwill,intangibles - 2 - 25 27 7,579 7,606 and otherassets

Depreciationand 2,705 1,839 332 8 4,884 2,769 7,653 amortization

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

Other Charges 3,106 1,715 3,258 3,802 11,881 8,507 20,388

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

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

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

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

Segmentcontribution $ 7,574 $ (3,907 ) $ (4,268 ) $ (1,517 ) $ (2,118 ) (loss)

Income (loss)fromcontinuing $ (2,118 ) $ (26,611 ) $ (28,729 )operationsbefore incometaxes

Three Months Ended September 30, 2019

U.S. Pawn

Latin America Pawn

Lana

Other International

Total Segments

Corporate Items

Consolidated

(in thousands)

Revenues:

Merchandise sales

$

80,357

$

26,832

$

-

$

-

$

107,189

$

-

$

107,189

Jewelry scrapping sales

17,458

5,114

-

-

22,572

-

22,572

Pawn service charges

63,711

19,357

-

-

83,068

-

83,068

Other revenues

108

45

-

1,357

1,510

-

1,510

Total revenues

161,634

51,348

-

1,357

214,339

-

214,339

Merchandise cost of goods sold

52,205

20,120

-

-

72,325

-

72,325

Jewelry scrapping cost of goods sold

15,638

4,649

-

-

20,287

-

20,287

Other cost of revenues

-

-

-

871

871

-

871

Net revenues

93,791

26,579

-

486

120,856

-

120,856

Operating expenses (income):

Operations

68,119

19,496

2,694

1,207

91,516

-

91,516

Administrative

-

-

-

-

-

14,176

14,176

Depreciation and amortization

2,928

1,724

10

29

4,691

2,992

7,683

Loss (gain) on sale or disposal of assets

546

(52

)

-

260

754

2

756

Interest expense

-

39

-

211

250

5,175

5,425

Interest income

-

(375

)

-

-

(375

)

(1,074

)

(1,449

)

Equity in net income of unconsolidated affiliates

-

-

-

767

767

-

767

Other (income) expense

-

(30

)

-

1,605

1,575

(30

)

1,545

Segment contribution (loss)

$

22,198

$

5,777

$

(2,704

)

$

(3,593

)

$

21,678

Income from continuing operations before income taxes

$

21,678

$

(21,241

)

$

437

Three Months Ended September 30, 2019

Latin Other Total Corporate U.S. Pawn America Lana International Segments Items Consolidated Pawn

(in thousands)

Revenues:

Merchandise $ 80,357 $ 26,832 $ - $ - $ 107,189 $ - $ 107,189 sales

Jewelryscrapping 17,458 5,114 - - 22,572 - 22,572 sales

Pawn service 63,711 19,357 - - 83,068 - 83,068 charges

Other revenues 108 45 - 1,357 1,510 - 1,510

Total revenues 161,634 51,348 - 1,357 214,339 - 214,339

Merchandisecost of goods 52,205 20,120 - - 72,325 - 72,325 sold

Jewelryscrapping cost 15,638 4,649 - - 20,287 - 20,287 of goods sold

Other cost of - - - 871 871 - 871 revenues

Net revenues 93,791 26,579 - 486 120,856 - 120,856

Operatingexpenses (income):

Operations 68,119 19,496 2,694 1,207 91,516 - 91,516

Administrative - - - - - 14,176 14,176

Depreciationand 2,928 1,724 10 29 4,691 2,992 7,683 amortization

Loss (gain) onsale or 546 (52 ) - 260 754 2 756 disposal ofassets

Interest - 39 - 211 250 5,175 5,425 expense

Interest - (375 ) - - (375 ) (1,074 ) (1,449 )income

Equity in netincome of - - - 767 767 - 767 unconsolidatedaffiliates

Other (income) - (30 ) - 1,605 1,575 (30 ) 1,545 expense

Segmentcontribution $ 22,198 $ 5,777 $ (2,704 ) $ (3,593 ) $ 21,678 (loss)

Income fromcontinuingoperations $ 21,678 $ (21,241 ) $ 437 before incometaxes

Fiscal Year Ended September 30, 2020

U.S. Pawn

Latin America Pawn

Lana

Other International

Total Segments

Corporate Items

Consolidated

(in thousands)

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

-

34

3,823

4,007

-

4,007

Total revenues

638,843

180,111

34

3,823

822,811

-

822,811

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

34

2,870

449,235

-

449,235

Operating expenses (income):

Operations

261,608

69,916

4,270

5,246

341,040

-

341,040

Administrative

-

-

-

-

-

49,897

49,897

Impairment of goodwill, intangibles and other assets

10,000

35,938

-

1,149

47,087

7,579

54,666

Depreciation and amortization

11,030

7,315

1,058

68

19,471

11,356

30,827

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

385

(72

)

-

(20

)

293

508

801

Other Charges

3,106

1,715

3,258

3,802

11,881

8,507

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 expense (income)

-

(156

)

-

6

(150

)

133

(17

)

Segment contribution (loss)

$

73,106

$

(26,659

)

$

(8,552

)

$

(10,359

)

$

27,536

Income from continuing operations before income taxes

$

27,536

$

(97,631

)

$

(70,095

)

Fiscal Year Ended September 30, 2020

Latin Other Total Corporate U.S. Pawn America Lana International Segments Items Consolidated Pawn

(in thousands)

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 - 34 3,823 4,007 - 4,007

Total revenues 638,843 180,111 34 3,823 822,811 - 822,811

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 34 2,870 449,235 - 449,235

Operatingexpenses (income):

Operations 261,608 69,916 4,270 5,246 341,040 - 341,040

Administrative - - - - - 49,897 49,897

Impairment ofgoodwill,intangibles 10,000 35,938 - 1,149 47,087 7,579 54,666 and otherassets

Depreciationand 11,030 7,315 1,058 68 19,471 11,356 30,827 amortization

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

Other Charges 3,106 1,715 3,258 3,802 11,881 8,507 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 expense - (156 ) - 6 (150 ) 133 (17 )(income)

Segmentcontribution $ 73,106 $ (26,659 ) $ (8,552 ) $ (10,359 ) $ 27,536 (loss)

Income fromcontinuingoperations $ 27,536 $ (97,631 ) $ (70,095 )before incometaxes

Fiscal Year Ended September 30, 2019

U.S. Pawn

Latin America Pawn

Lana

Other International

Total Segments

Corporate Items

Consolidated

(in thousands)

Revenues:

Merchandise sales

$

355,996

$

97,379

$

-

$

-

$

453,375

$

-

$

453,375

Jewelry scrapping sales

45,815

14,630

-

-

60,445

-

60,445

Pawn service charges

248,369

78,997

-

-

327,366

-

327,366

Other revenues

233

179

-

5,631

6,043

-

6,043

Total revenues

650,413

191,185

-

5,631

847,229

-

847,229

Merchandise cost of goods sold

225,136

72,372

-

-

297,508

-

297,508

Jewelry scrapping cost of goods sold

39,318

13,617

-

-

52,935

-

52,935

Other cost of revenues

-

-

-

2,338

2,338

-

2,338

Net revenues

385,959

105,196

-

3,293

494,448

-

494,448

Operating expenses (income):

Operations

269,003

74,199

7,675

7,376

358,253

-

358,253

Administrative

-

-

-

-

-

55,990

55,990

Depreciation and amortization

11,879

6,267

10

219

18,375

10,422

28,797

Loss on sale or disposal of assets

3,402

691

-

282

4,375

24

4,399

Interest expense

-

1,609

-

491

2,100

30,537

32,637

Interest income

-

(1,601

)

-

-

(1,601

)

(9,485

)

(11,086

)

Equity in net income of unconsolidated affiliates

-

-

-

135

135

-

135

Impairment of investment in unconsolidated affiliates

-

-

-

19,725

19,725

-

19,725

Other income

-

(93

)

-

1,895

1,802

(378

)

1,424

Segment contribution (loss)

$

101,675

$

24,124

$

(7,685

)

$

(26,830

)

$

91,284

Income from continuing operations before income taxes

$

91,284

$

(87,110

)

$

4,174

Fiscal Year Ended September 30, 2019

Latin Other Total Corporate U.S. Pawn America Lana International Segments Items Consolidated Pawn

(in thousands)

Revenues:

Merchandise $ 355,996 $ 97,379 $ - $ - $ 453,375 $ - $ 453,375 sales

Jewelryscrapping 45,815 14,630 - - 60,445 - 60,445 sales

Pawn service 248,369 78,997 - - 327,366 - 327,366 charges

Other revenues 233 179 - 5,631 6,043 - 6,043

Total revenues 650,413 191,185 - 5,631 847,229 - 847,229

Merchandisecost of goods 225,136 72,372 - - 297,508 - 297,508 sold

Jewelryscrapping cost 39,318 13,617 - - 52,935 - 52,935 of goods sold

Other cost of - - - 2,338 2,338 - 2,338 revenues

Net revenues 385,959 105,196 - 3,293 494,448 - 494,448

Operatingexpenses (income):

Operations 269,003 74,199 7,675 7,376 358,253 - 358,253

Administrative - - - - - 55,990 55,990

Depreciationand 11,879 6,267 10 219 18,375 10,422 28,797 amortization

Loss on saleor disposal of 3,402 691 - 282 4,375 24 4,399 assets

Interest - 1,609 - 491 2,100 30,537 32,637 expense

Interest - (1,601 ) - - (1,601 ) (9,485 ) (11,086 )income

Equity in netincome of - - - 135 135 - 135 unconsolidatedaffiliates

Impairment ofinvestment in - - - 19,725 19,725 - 19,725 unconsolidatedaffiliates

Other income - (93 ) - 1,895 1,802 (378 ) 1,424

Segmentcontribution $ 101,675 $ 24,124 $ (7,685 ) $ (26,830 ) $ 91,284 (loss)

Income fromcontinuingoperations $ 91,284 $ (87,110 ) $ 4,174 before incometaxes

EZCORP, Inc. STORE COUNT ACTIVITY(Unaudited)

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 acquired

-

-

-

-

Locations sold, combined or closed

(6

)

(3

)

(22

)

(31

)

As of September 30, 2020

505

500

-

1,005

Three Months Ended September 30, 2019

U.S. Pawn

Latin America Pawn

Other International

Consolidated

As of June 30, 2019

514

470

22

1,006

New locations opened

-

10

-

10

Locations acquired

-

-

-

-

Locations sold, combined or closed

(2

)

-

-

(2

)

As of September 30, 2019

512

480

22

1,014

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 acquired

-

-

-

-

Locations sold, combined or closed

(7

)

(3

)

(22

)

(32

)

As of September 30, 2020

505

500

-

1,005

Twelve Months Ended September 30, 2019

U.S. Pawn

Latin America Pawn

Other International

Consolidated

As of September 30, 2018

508

453

27

988

New locations opened

-

22

-

22

Locations acquired

7

5

-

12

Locations sold, combined or closed

(3

)

-

(5

)

(8

)

As of September 30, 2019

512

480

22

1,014

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 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, 2020 and 2019 were as follows:

EZCORP, Inc.STORE COUNT ACTIVITY(Unaudited)

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 acquired - - - -

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

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

Three Months Ended September 30, 2019

U.S. Latin Other Pawn America International Consolidated Pawn



As of June 30, 2019 514 470 22 1,006

New locations opened - 10 - 10

Locations acquired - - - -

Locations sold, combined or (2 ) - - (2 )closed

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

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 acquired - - - -

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

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

Twelve Months Ended September 30, 2019

U.S. Latin Other Pawn America International Consolidated Pawn



As of September 30, 2018 508 453 27 988

New locations opened - 22 - 22

Locations acquired 7 5 - 12

Locations sold, combined or (3 ) - (5 ) (8 )closed

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

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 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, 2020 and 2019 were as follows:

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

2020 2019 2020 2019 2020 2019



Mexican peso 21.6 19.7 22.1 19.4 21.0 19.4

Guatemalan quetzal 7.6 7.6 7.5 7.5 7.5 7.6

Honduran lempira 24.3 24.2 24.3 24.1 24.3 24.1

Peruvian sol 3.5 3.4 3.5 3.3 3.4 3.3

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

2020 Q4 2019 Q4

(in millions)

Net loss $ (23.3 ) $ (0.6 )

Loss from discontinued operations, net of tax - 0.1

Interest expense 5.9 5.4

Interest income (0.8 ) (1.4 )

Income tax (benefit) expense (5.4 ) 1.0

Depreciation and amortization 7.7 7.7

Adjusted EBITDA $ (16.0 ) $ 12.1

Total Revenues

Net Revenues

(Loss) Income Before Tax

Tax Effect

Net (Loss) Income

Adjusted EBITDA

Diluted EPS

2020 Q4 Reported

$

166.9

$

89.6

$

(28.7

)

$

5.4

$

(23.3

)

$

(16.0

)

$

(0.42

)

Other charges

-

-

20.4

(3.7

)

16.7

20.4

0.30

Impairment of intangible assets

-

-

7.6

(1.7

)

5.9

7.6

0.11

Non cash interest

-

-

3.3

(0.8

)

2.5

-

0.05

Other adjustments

-

-

0.7

1.8

2.5

(0.2

)

0.04

Constant currency impact

4.0

1.7

(0.4

)

(0.1

)

(0.5

)

0.2

(0.01

)

2020 Q4 Adjusted

$

170.9

$

91.3

$

2.9

$

0.9

$

3.8

$

12.0

$

0.07

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



2020 Q4 $ 166.9 $ 89.6 $ (28.7 ) $ 5.4 $ (23.3 ) $ (16.0 ) $ (0.42 )Reported



Other - - 20.4 (3.7 ) 16.7 20.4 0.30 charges

Impairmentof - - 7.6 (1.7 ) 5.9 7.6 0.11 intangibleassets

Non cash - - 3.3 (0.8 ) 2.5 - 0.05 interest

Other - - 0.7 1.8 2.5 (0.2 ) 0.04 adjustments

Constantcurrency 4.0 1.7 (0.4 ) (0.1 ) (0.5 ) 0.2 (0.01 )impact



2020 Q4 $ 170.9 $ 91.3 $ 2.9 $ 0.9 $ 3.8 $ 12.0 $ 0.07 Adjusted

Total Revenues

Net Revenues

(Loss) Income Before Tax

Tax Effect

Net (Loss) Income

Adjusted EBITDA

Diluted EPS

2019 Q4 Reported

$

214.3

$

120.9

$

0.4

$

1.0

$

(0.6

)

$

12.1

$

(0.01

)

Other charges

-

-

2.4

0.4

2.0

-

0.04

Impairment of intangible assets

-

-

2.0

0.3

1.7

2.0

0.03

Non cash interest

-

-

1.9

0.3

1.6

1.9

0.03

Other adjustments

-

0.2

1.7

0.3

1.4

1.7

0.02

Constant currency impact

-

-

1.6

0.3

1.3

1.6

0.02

2019 Q4 Adjusted*

$

214.3

$

121.1

$

10.0

$

2.6

$

7.4

$

19.3

$

0.13

* During the first quarter of fiscal 2020, we revised the financial information our chief operating decision maker (our chief executive officer) reviews for operational decision-making purposes to include the separate financial results of our Lana business. Our historical segment results have been recast to conform to current presentation including the removal of discretionary strategic investment in digital platform costs in historically adjusted results. We additionally recast certain other adjustments to conform to restated historical results.

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



2019 Q4 $ 214.3 $ 120.9 $ 0.4 $ 1.0 $ (0.6 ) $ 12.1 $ (0.01 )Reported



Other - - 2.4 0.4 2.0 - 0.04 charges

Impairmentof - - 2.0 0.3 1.7 2.0 0.03 intangibleassets

Non cash - - 1.9 0.3 1.6 1.9 0.03 interest

Other - 0.2 1.7 0.3 1.4 1.7 0.02 adjustments

Constantcurrency - - 1.6 0.3 1.3 1.6 0.02 impact



2019 Q4 $ 214.3 $ 121.1 $ 10.0 $ 2.6 $ 7.4 $ 19.3 $ 0.13 Adjusted*

* During the first quarter of fiscal 2020, we revised the financial information our chief operating decision maker (our chief executive officer) reviews for operational decision-making purposes to include the separate financial results of our Lana business. Our historical segment results have been recast to conform to current presentation including the removal of discretionary strategic investment in digital platform costs in historically adjusted results. We additionally recast certain other adjustments to conform to restated historical results.

U.S. Percentage2020 Q4: Dollar Change YOY Amount

(in millions)

Consolidated revenue (three months ended September $ 166.9 (22) %30, 2020)

Currency exchange rate fluctuations 4.0

Constant currency consolidated revenue (three months $ 170.9 (20) %ended September 30, 2020)



Consolidated net revenue (three months ended $ 89.6 (26) %September 30, 2020)

Currency exchange rate fluctuations $ 1.7

Constant currency consolidated net revenue (three $ 91.3 (24) %months ended September 30, 2020)



Consolidated net inventory $ 95.9 (47) %

Currency exchange rate fluctuations $ 1.7

Constant currency consolidated net inventory $ 97.6 (46) %



Latin America Pawn net revenue (three months ended $ 16.0 (40) %September 30, 2020)

Currency exchange rate fluctuations $ 1.7

Constant currency Latin America Pawn net revenue $ 17.8 (33) %(three months ended September 30, 2020)



Latin America Pawn PLO $ 25.0 (40) %

Currency exchange rate fluctuations $ 2.4

Constant currency Latin America Pawn PLO $ 27.4 (34) %



Latin America Pawn PSC revenues (three months ended $ 12.0 (38) %September 30, 2020)

Currency exchange rate fluctuations $ 1.1

Constant currency Latin America Pawn PSC revenues $ 13.1 (32) %(three months ended September 30, 2020)



Latin America Pawn merchandise sales (three months $ 27.3 2 %ended September 30, 2020)

Currency exchange rate fluctuations $ 2.8

Constant currency Latin America Pawn merchandise $ 30.0 12 %sales (three months ended September 30, 2020)



Latin America Pawn segment profit before tax (three $ (3.9) (168) %months ended September 30, 2020)

Currency exchange rate fluctuations $ (0.3)

Constant currency Latin America Pawn segment profit $ (4.2) (103) %before tax (three months ended September 30, 2020)

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