EZCORP INC Q1 FY2025 earnings call

• Kicked off fiscal 2025 with strong results: total revenue $329.7 million (up 10% YOY), PLO $282.9 million (up 16% YOY).
• Operate 1,283 stores in U.S. and Latin America, added 4 de novo stores in Latin America.
• Earning assets grew 20% YOY, cash balance $174.5 million.
• Strengthened core pawn operation; expanded third-party buy now pay later program in U.S. stores; launched longer-term layaway option.
• Easy Plus rewards members accounted for 77% of transactions; traffic to core pawn website up 5%.
• Enhanced fuel compensation plans; announced assistant manager certification program; held Easy Elite celebrations.
• U.S. online payment collections up over 30%; Mexico digital adoption rising; MaxPawn's luxury e-commerce sales up 50%.
• Sold over 1.5 million pre-owned items; advanced inclusivity; donated to charities; 461 hours of volunteer time.

U.S. Pawn Segment

• Q1 revenue was $232.2 million, up 7% year-over-year. Earning assets grew 16%. Average U.S. loan size increased 14%. Merchandise sales increased 3%, but merchandise gross margin decreased 61 basis points. EBITDA was $55.6 million, up 11%, with an EBITDA margin of 24%.

Latin American Segment

• Total revenues increased 18% to $97.5 million, a record high for the fiscal first quarter. Earning assets increased 35%. PLO grew 19%, PSC rose 17%. Merchandise sales grew 19%, merchandise gross profit increased 11%, but margin decreased 223 basis points. EBITDA climbed 20% to $14.6 million, with an EBITDA margin of 15%.

• Focus on driving organic growth through higher PLO, PSC, and merchandise sales.
• Margin expected to remain at low end of target range 35%-38%.
• Anticipate moderation in same store expense growth, but wage increases in Latin America to impact expenses.
• M&A pipeline strong; Auto De Niro acquisition pending due diligence.

• Potential impact of undocumented immigrants and deportations on business (no impact seen yet).
• Uncertainty around tax refund season seasonality and its impact on PLO.
• Refinancing of convertible notes in May 2025 and associated uncertainties.

Q: About merchandise margin dip and LatAm wage increases A: Tim Jugmans discussed strong loan growth and customer negotiation impacting margins; Lachie Given talked about wage increases in Latin America and business growth Q: Tax refund season and PLO seasonality A: Tim Jugmans mentioned shorter tax refund periods and stable refund dollars Q: Auto De Niro acquisition status A: Lachie Given said pending due diligence Q: Wage increases in Mexico and impact on business A: Lachie Given discussed wage increases and strong growth in Latin America Q: Domestic growth acceleration and normalization A: Lachie Given talked about strong engagement in stores and continued strong loan growth