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Business Wire 30-Jan-2019 4:01 PM
EZCORP, Inc. (NASDAQ:EZPW) today announced results for its first quarter ended December 31, 2018.
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.
HIGHLIGHTS FOR FIRST QUARTER OF FISCAL 2019
CEO COMMENTARY AND OUTLOOK
Chief Executive Officer Stuart Grimshaw commented, "We continue to deliver exceptional pawn operating performance leading to market share gains in the quarter. We maintained our intense focus on outstanding customer service and meeting our customers' need for cash.
"Our strong balance sheet and free cash flow generation enhances our ability to invest in initiatives that sustain our strong competitive advantages, leveraging our best-in-industry customer insights. Investments include: opening and acquiring more pawn stores; developing a digital platform that will provide transaction and lending services connected to a ledger of physical assets; and upgrading our POS2 that encompasses predictive product and customer analytics. These investments will build on our core pawn businesses and further differentiate us through data-driven, physical and digital customer engagement. We continually assess opportunities to better serve our customers and attract new ones. Identifying and acting on the best opportunities will allow us to further drive long-term shareholder value."
CONSOLIDATED RESULTS | ||||||||||||||||||
Three Months Ended December 31 | ||||||||||||||||||
in thousands, except per share amounts |
||||||||||||||||||
As Reported | Adjusted2 | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||
Total Revenues | $ | 215,850 | $ | 204,508 | $ | 218,100 | $ | 204,508 | ||||||||||
Income (Loss) from Continuing Operations, Before Tax | $ | (5,570 | ) | $ | 19,792 | $ | 22,475 | $ | 21,342 | |||||||||
Net Income (Loss) from Continuing Operations | $ | (4,538 | ) | $ | 12,355 | $ | 16,669 | $ | 14,697 | |||||||||
Diluted Earnings (Loss) Per Share | $ | (0.07 | ) | $ | 0.23 | $ | 0.31 | $ | 0.27 | |||||||||
EBITDA2 | $ | 6,730 | $ | 27,092 | $ | 30,617 | $ | 27,490 | ||||||||||
SEGMENT RESULTS
U.S. Pawn
Latin America Pawn
CONFERENCE CALL
EZCORP will host a conference call on Thursday, January 31, 2019, at 7:30am Central Time to discuss first quarter results. Analysts and institutional investors may participate on the conference call by dialing (877) 201-0168, Conference ID: 7987578, or internationally by dialing (647) 788-4901. 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 call ends.
ABOUT EZCORP
Formed in 1989, EZCORP has grown into a leading provider of pawn loans in the United States and Latin America. It also sells 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 SmallCap 600 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 or current or future litigation. 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"Constant currency" basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. 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. |
2Adjusted basis, which is a non-GAAP measure, excludes certain items. 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. | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
Three Months Ended December 31, | |||||||||||
2018 | 2017 | ||||||||||
(Unaudited) | |||||||||||
(in thousands, except per share amounts) | |||||||||||
Revenues: | |||||||||||
Merchandise sales | $ | 121,024 | $ | 113,588 | |||||||
Jewelry scrapping sales | 9,281 | 12,213 | |||||||||
Pawn service charges | 83,674 | 76,360 | |||||||||
Other revenues | 1,871 | 2,347 | |||||||||
Total revenues | 215,850 | 204,508 | |||||||||
Merchandise cost of goods sold | 77,112 | 71,167 | |||||||||
Jewelry scrapping cost of goods sold | 8,050 | 10,337 | |||||||||
Other cost of revenues | 484 | 577 | |||||||||
Net revenues | 130,204 | 122,427 | |||||||||
Operating expenses: | |||||||||||
Operations | 89,546 | 83,610 | |||||||||
Administrative | 15,479 | 13,318 | |||||||||
Depreciation and amortization | 6,848 | 5,723 | |||||||||
Loss on sale or disposal of assets and other | 4,442 | 39 | |||||||||
Total operating expenses | 116,315 | 102,690 | |||||||||
Operating income | 13,889 | 19,737 | |||||||||
Interest expense | 8,791 | 5,847 | |||||||||
Interest income | (3,339 | ) | (4,270 | ) | |||||||
Equity in net loss (income) of unconsolidated affiliate | 1,119 | (1,450 | ) | ||||||||
Impairment of investment in unconsolidated affiliate | 13,274 | — | |||||||||
Other income | (386 | ) | (182 | ) | |||||||
(Loss) income from continuing operations before income taxes | (5,570 | ) | 19,792 | ||||||||
Income tax (benefit) expense | (1,032 | ) | 7,437 | ||||||||
(Loss) income from continuing operations, net of tax | (4,538 | ) | 12,355 | ||||||||
Loss from discontinued operations, net of tax | (183 | ) | (222 | ) | |||||||
Net (loss) income | (4,721 | ) | 12,133 | ||||||||
Net loss attributable to noncontrolling interest | (477 | ) | (615 | ) | |||||||
Net (loss) income attributable to EZCORP, Inc. | $ | (4,244 | ) | $ | 12,748 | ||||||
Basic (loss) earnings per share attributable to EZCORP, Inc. — continuing operations | $ | (0.07 | ) | $ | 0.24 | ||||||
Diluted (loss) earnings per share attributable to EZCORP, Inc. — continuing operations | $ | (0.07 | ) | $ | 0.23 | ||||||
Weighted-average basic shares outstanding | 55,032 | 54,464 | |||||||||
Weighted-average diluted shares outstanding | 55,032 | 55,682 | |||||||||
EZCORP, Inc. | ||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
(in thousands, except share and per share amounts) |
||||||||||||||||
December 31, 2018 | December 31, 2017 | September 30, 2018 | ||||||||||||||
(Unaudited) | ||||||||||||||||
Assets: | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 297,031 | $ | 113,584 | $ | 286,015 | ||||||||||
Pawn loans | 193,984 | 177,001 | 198,463 | |||||||||||||
Pawn service charges receivable, net | 38,959 | 34,054 | 38,318 | |||||||||||||
Inventory, net | 175,422 | 163,310 | 166,997 | |||||||||||||
Notes receivable, net | 26,711 | 36,682 | 34,199 | |||||||||||||
Prepaid expenses and other current assets | 31,223 | 26,516 | 33,154 | |||||||||||||
Total current assets | 763,330 | 551,147 | 757,146 | |||||||||||||
Investment in unconsolidated affiliate | 35,511 | 45,605 | 49,500 | |||||||||||||
Property and equipment, net | 69,770 | 62,098 | 73,649 | |||||||||||||
Goodwill | 294,881 | 288,773 | 297,448 | |||||||||||||
Intangible assets, net | 55,956 | 43,974 | 54,923 | |||||||||||||
Notes receivable, net | 4,599 | 23,343 | 3,226 | |||||||||||||
Deferred tax asset, net | 9,283 | 10,997 | 7,165 | |||||||||||||
Other assets, net | 4,442 | 16,625 | 3,863 | |||||||||||||
Total assets | $ | 1,237,772 | $ | 1,042,562 | $ | 1,246,920 | ||||||||||
Liabilities and equity: | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Current maturities of long-term debt, net | $ | 190,238 | $ | — | $ | 190,181 | ||||||||||
Accounts payable, accrued expenses and other current liabilities | 57,628 | 60,207 | 57,800 | |||||||||||||
Customer layaway deposits | 11,747 | 10,686 | 11,824 | |||||||||||||
Total current liabilities | 259,613 | 70,893 | 259,805 | |||||||||||||
Long-term debt, net | 229,928 | 294,761 | 226,702 | |||||||||||||
Deferred tax liability, net | 9,617 | — | 8,817 | |||||||||||||
Other long-term liabilities | 6,150 | 8,845 | 6,890 | |||||||||||||
Total liabilities | 505,308 | 374,499 | 502,214 | |||||||||||||
Commitments and contingencies | ||||||||||||||||
Stockholders' equity: | ||||||||||||||||
Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 100million; issued and outstanding: 52,475,070 as of December 31, 2018; 51,494,246 asof December 31, 2017; and 51,614,746 as of September 30, 2018 |
524 | 515 | 516 | |||||||||||||
Class B Voting Common Stock, convertible, par value $.01 per share; sharesauthorized: 3 million; issued and outstanding: 2,970,171 |
30 | 30 | 30 | |||||||||||||
Additional paid-in capital | 400,081 | 351,110 | 397,927 | |||||||||||||
Retained earnings | 387,936 | 364,414 | 392,180 | |||||||||||||
Accumulated other comprehensive loss | (49,104 | ) | (44,902 | ) | (42,616 | ) | ||||||||||
EZCORP, Inc. stockholders' equity | 739,467 | 671,167 | 748,037 | |||||||||||||
Noncontrolling interest | (7,003 | ) | (3,104 | ) | (3,331 | ) | ||||||||||
Total equity | 732,464 | 668,063 | 744,706 | |||||||||||||
Total liabilities and equity | $ | 1,237,772 | $ | 1,042,562 | $ | 1,246,920 | ||||||||||
EZCORP, Inc. | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
Three Months Ended December 31, | |||||||||||
2018 | 2017 | ||||||||||
(Unaudited) | |||||||||||
(in thousands) | |||||||||||
Operating activities: | |||||||||||
Net (loss) income | $ | (4,721 | ) | $ | 12,133 | ||||||
Adjustments to reconcile net (loss) income to net cash flows from operating activities: | |||||||||||
Depreciation and amortization | 6,848 | 5,723 | |||||||||
Amortization of debt discount and deferred financing costs | 5,585 | 3,682 | |||||||||
Accretion of notes receivable discount and deferred compensation fee | (1,376 | ) | (2,577 | ) | |||||||
Deferred income taxes | 352 | 3,129 | |||||||||
Impairment of investment in unconsolidated affiliate | 13,274 | — | |||||||||
Other adjustments | 5,052 | 601 | |||||||||
Stock compensation expense | 2,238 | 2,919 | |||||||||
Loss (income) from investment in unconsolidated affiliate | 1,119 | (1,450 | ) | ||||||||
Changes in operating assets and liabilities, net of business acquisitions: | |||||||||||
Service charges and fees receivable | (877 | ) | (50 | ) | |||||||
Inventory | 685 | (1,087 | ) | ||||||||
Prepaid expenses, other current assets and other assets | (1,564 | ) | (500 | ) | |||||||
Accounts payable, accrued expenses and other liabilities | (461 | ) | (5,283 | ) | |||||||
Customer layaway deposits | 18 | (283 | ) | ||||||||
Income taxes, net of excess tax benefit from stock compensation | (3,412 | ) | 2,295 | ||||||||
Net cash provided by operating activities | 22,760 | 19,252 | |||||||||
Investing activities: | |||||||||||
Loans made | (186,588 | ) | (169,666 | ) | |||||||
Loans repaid | 106,643 | 103,041 | |||||||||
Recovery of pawn loan principal through sale of forfeited collateral | 70,594 | 67,144 | |||||||||
Additions to property and equipment | (5,880 | ) | (9,537 | ) | |||||||
Acquisitions, net of cash acquired | (332 | ) | (62,163 | ) | |||||||
Principal collections on notes receivable | 7,284 | 2,849 | |||||||||
Net cash used in investing activities | (8,279 | ) | (68,332 | ) | |||||||
Financing activities: | |||||||||||
Taxes paid related to net share settlement of equity awards | (3,288 | ) | (311 | ) | |||||||
Proceeds from borrowings, net of issuance costs | 743 | — | |||||||||
Payments on borrowings | (67 | ) | — | ||||||||
Net cash used in financing activities | (2,612 | ) | (311 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (865 | ) | (1,165 | ) | |||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 11,004 | (50,556 | ) | ||||||||
Cash, cash equivalents and restricted cash at beginning of period | 286,282 | 164,393 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 297,286 | $ | 113,837 | |||||||
Non-cash investing and financing activities: | |||||||||||
Pawn loans forfeited and transferred to inventory | $ | 80,301 | $ | 72,649 | |||||||
Deferred and contingent consideration | — | 1,920 | |||||||||
EZCORP, Inc. | ||||||||||||||||||||||||||||||
OPERATING SEGMENT RESULTS (UNAUDITED) | ||||||||||||||||||||||||||||||
Three Months Ended December 31, 2018 | ||||||||||||||||||||||||||||||
U.S. Pawn |
LatinAmericaPawn |
OtherInternational |
TotalSegments |
CorporateItems |
Consolidated | |||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||
Merchandise sales | $ | 95,103 | $ | 25,921 | $ | — | $ | 121,024 | $ | — | $ | 121,024 | ||||||||||||||||||
Jewelry scrapping sales | 6,552 | 2,729 | — | 9,281 | — | 9,281 | ||||||||||||||||||||||||
Pawn service charges | 64,303 | 19,371 | — | 83,674 | — | 83,674 | ||||||||||||||||||||||||
Other revenues | 48 | 42 | 1,781 | 1,871 | — | 1,871 | ||||||||||||||||||||||||
Total revenues | 166,006 | 48,063 | 1,781 | 215,850 | — | 215,850 | ||||||||||||||||||||||||
Merchandise cost of goods sold | 59,148 | 17,964 | — | 77,112 | — | 77,112 | ||||||||||||||||||||||||
Jewelry scrapping cost of goods sold | 5,510 | 2,540 | — | 8,050 | — | 8,050 | ||||||||||||||||||||||||
Other cost of revenues | — | — | 484 | 484 | — | 484 | ||||||||||||||||||||||||
Net revenues | 101,348 | 27,559 | 1,297 | 130,204 | — | 130,204 | ||||||||||||||||||||||||
Segment and corporate expenses (income): | ||||||||||||||||||||||||||||||
Operations | 68,068 | 18,848 | 2,630 | 89,546 | — | 89,546 | ||||||||||||||||||||||||
Administrative | — | — | — | — | 15,479 | 15,479 | ||||||||||||||||||||||||
Depreciation and amortization | 3,035 | 1,422 | 41 | 4,498 | 2,350 | 6,848 | ||||||||||||||||||||||||
Loss on sale or disposal of assets and other | 2,853 | 1,589 | — | 4,442 | — | 4,442 | ||||||||||||||||||||||||
Interest expense | — | 29 | 72 | 101 | 8,690 | 8,791 | ||||||||||||||||||||||||
Interest income | — | (419 | ) | — | (419 | ) | (2,920 | ) | (3,339 | ) | ||||||||||||||||||||
Equity in net loss of unconsolidated affiliate | — | — | 1,119 | 1,119 | — | 1,119 | ||||||||||||||||||||||||
Impairment of investment in unconsolidated affiliate | — | — | 13,274 | 13,274 | — | 13,274 | ||||||||||||||||||||||||
Other (income) expense | — | (126 | ) | 22 | (104 | ) | (282 | ) | (386 | ) | ||||||||||||||||||||
Segment contribution (loss) | $ | 27,392 | $ | 6,216 | $ | (15,861 | ) | $ | 17,747 | |||||||||||||||||||||
(Loss) income from continuing operations before income taxes | $ | 17,747 | $ | (23,317 | ) | $ | (5,570 | ) | ||||||||||||||||||||||
EZCORP, Inc. | |||||||||||||||||||||||||||||||
OPERATING SEGMENT RESULTS (UNAUDITED) | |||||||||||||||||||||||||||||||
Three Months Ended December 31, 2017 | |||||||||||||||||||||||||||||||
U.S. Pawn |
LatinAmericaPawn |
OtherInternational |
TotalSegments |
CorporateItems |
Consolidated | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||
Merchandise sales | $ | 91,494 | $ | 22,094 | $ | — | $ | 113,588 | $ | — | $ | 113,588 | |||||||||||||||||||
Jewelry scrapping sales | 8,525 | 3,688 | — | 12,213 | — | 12,213 | |||||||||||||||||||||||||
Pawn service charges | 59,705 | 16,655 | — | 76,360 | — | 76,360 | |||||||||||||||||||||||||
Other revenues | 74 | 169 | 2,104 | 2,347 | — | 2,347 | |||||||||||||||||||||||||
Total revenues | 159,798 | 42,606 | 2,104 | 204,508 | — | 204,508 | |||||||||||||||||||||||||
Merchandise cost of goods sold | 56,088 | 15,079 | — | 71,167 | — | 71,167 | |||||||||||||||||||||||||
Jewelry scrapping cost of goods sold | 6,842 | 3,495 | — | 10,337 | — | 10,337 | |||||||||||||||||||||||||
Other cost of revenues | — | — | 577 | 577 | — | 577 | |||||||||||||||||||||||||
Net revenues | 96,868 | 24,032 | 1,527 | 122,427 | — | 122,427 | |||||||||||||||||||||||||
Segment and corporate expenses (income): | |||||||||||||||||||||||||||||||
Operations | 66,300 | 14,687 | 2,623 | 83,610 | — | 83,610 | |||||||||||||||||||||||||
Administrative | — | — | — | — | 13,318 | 13,318 | |||||||||||||||||||||||||
Depreciation and amortization | 2,799 | 845 | 47 | 3,691 | 2,032 | 5,723 | |||||||||||||||||||||||||
Loss on sale or disposal of assets | 16 | 10 | — | 26 | 13 | 39 | |||||||||||||||||||||||||
Interest expense | — | 1 | — | 1 | 5,846 | 5,847 | |||||||||||||||||||||||||
Interest income | — | (637 | ) | — | (637 | ) | (3,633 | ) | (4,270 | ) | |||||||||||||||||||||
Equity in net income of unconsolidated affiliate | — | — | (1,450 | ) | (1,450 | ) | — | (1,450 | ) | ||||||||||||||||||||||
Other (income) expense | (4 | ) | 115 | (83 | ) | 28 | (210 | ) | (182 | ) | |||||||||||||||||||||
Segment contribution | $ | 27,757 | $ | 9,011 | $ | 390 | $ | 37,158 | |||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 37,158 | $ | (17,366 | ) | $ | 19,792 | ||||||||||||||||||||||||
EZCORP, Inc. | |||||||||||||
STORE COUNT ACTIVITY (UNAUDITED) | |||||||||||||
Three Months Ended December 31, 2018 | |||||||||||||
U.S. Pawn |
Latin AmericaPawn |
OtherInternational |
Consolidated | ||||||||||
As of September 30, 2018 | 508 | 453 | 27 | 988 | |||||||||
New locations opened | — | 4 | — | 4 | |||||||||
Locations acquired | — | 5 | — | 5 | |||||||||
As of December 31, 2018 | 508 | 462 | 27 | 997 |
Three Months Ended December 31, 2017 | |||||||||||||
U.S. Pawn |
Latin AmericaPawn |
OtherInternational |
Consolidated | ||||||||||
As of September 30, 2017 | 513 | 246 | 27 | 786 | |||||||||
New locations opened | — | 4 | — | 4 | |||||||||
Locations acquired | — | 133 | — | 133 | |||||||||
As of December 31, 2017 | 513 | 383 | 27 | 923 | |||||||||
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 non-GAAP financial information on a constant currency basis ("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 results is meaningful and useful in understanding the activities and business metrics of our Latin America Pawn 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 believe that presentation of adjusted results is meaningful and useful in understanding the activities and business metrics of our operations exclusive of certain non-core operating or other infrequent charges. This will assist users of our financial statements in forecasting, and assessing the performance of the Company's businesses, providing a meaningful comparison of results of the current period against results of past periods, and performing a comparable analysis to peers. This is intended to provide users of our financial statements with a view of the business's results similarly to how management of the company views and evaluates it.
In addition to constant currency adjustments, we have recorded the following adjustments to present our financial results consistent with the core operating results of our business:
We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. 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 Mexican pesos, Guatemalan quetzals, Honduran lempiras and Peruvian sols 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 currency as compared to U.S. dollars as of and for the three months ended December 31, 2018 and 2017 were as follows:
December 31, | Three Months Ended December 31, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
Mexican peso | 19.6 | 19.7 | 19.8 | 19.0 | |||||||||
Guatemalan quetzal | 7.7 | 7.3 | 7.6 | 7.2 | |||||||||
Honduran lempira | 24.2 | 23.5 | 24.0 | 23.3 | |||||||||
Peruvian sol | 3.4 | 3.2 | 3.3 | 3.2 | |||||||||
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. We have experienced a prolonged weakening of the Mexican peso to the U.S. dollar and may continue to experience further weakening in future reporting periods, which may adversely impact our future operating results when stated on a GAAP basis.
The following information provides reconciliations of certain non-GAAP financial measures presented in this press release to the most directly comparable financial measures calculated and presented in accordance with GAAP as of and for the three months ended December 31, 2018 and 2017 (2019 Q1 and 2018 Q1, respectively).
Miscellaneous Non-GAAP Financial Measures
2019 Q1 | 2018 Q1 | ||||||||||
(in millions) | |||||||||||
Income (loss) from continuing operations | $ | (4.5 | ) | $ | 12.4 | ||||||
Interest expense | 8.7 | 5.9 | |||||||||
Interest income | (3.3 | ) | (4.3 | ) | |||||||
Income tax expense (benefit) | (1.0 | ) | 7.4 | ||||||||
Depreciation and amortization | 6.8 | 5.7 | |||||||||
EBITDA | $ | 6.7 | $ | 27.1 | |||||||
2019 Q1 | |||||
(in millions) | |||||
Impairment on CCV investment | $ | 13.3 | |||
Impact on CCV earnings from litigation settlement | 2.9 | ||||
Adjustment for Republic Metals Corporation reserve | 4.4 | ||||
Non-cash charges | $ | 20.6 | |||
Income(Loss) fromContinuingOperations,Before Tax |
TaxEffect |
Net Income(Loss) fromContinuingOperations |
EBITDA | EPS | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||
2019 Q1 reported | $ | (5.6 | ) | $ | 1.1 | $ | (4.5 | ) | $ | 6.7 | $ | (0.07 | ) | ||||||||||||
Acquisition costs | 0.1 | — | 0.1 | 0.1 | — | ||||||||||||||||||||
Charge-off of aged assets and other | 0.8 | (0.2 | ) | 0.6 | 0.8 | 0.01 | |||||||||||||||||||
Impairment on CCV investment | 13.3 | (3.0 | ) | 10.3 | 13.3 | 0.17 | |||||||||||||||||||
Impact on CCV earnings from litigation settlement | 2.9 | (0.7 | ) | 2.2 | 2.9 | 0.04 | |||||||||||||||||||
Adjustment for Republic Metals Corporation reserve | 4.4 | (1.3 | ) | 3.1 | 4.4 | 0.06 | |||||||||||||||||||
Currency exchange rate fluctuations | 0.2 | (0.1 | ) | 0.1 | 0.3 | 0.01 | |||||||||||||||||||
Non-cash net interest expense | 4.3 | (1.1 | ) | 3.2 | — | 0.06 | |||||||||||||||||||
Discretionary strategic investment in digital platform | 2.1 | (0.5 | ) | 1.6 | 2.1 | 0.03 | |||||||||||||||||||
2019 Q1 adjusted | $ | 22.5 | $ | (5.8 | ) | $ | 16.7 | $ | 30.6 | $ | 0.31 | ||||||||||||||
Income fromContinuingOperations,Before Tax |
TaxEffect |
Net IncomefromContinuingOperations |
EBITDA | EPS | ||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
2018 Q1 reported | $ | 19.8 | $ | (7.4 | ) | $ | 12.4 | $ | 27.1 | $ | 0.23 | |||||||||||||||
Expiration of statute of limitation on uncertain tax positions | — | (1.6 | ) | (1.6 | ) | — | (0.03 | ) | ||||||||||||||||||
Revaluation of deferred tax assets upon tax reform | — | 2.8 | 2.8 | — | 0.04 | |||||||||||||||||||||
Acquisition costs | 0.4 | (0.1 | ) | 0.3 | 0.4 | 0.01 | ||||||||||||||||||||
Impact from hurricane store operating expenses | 0.3 | — | 0.3 | 0.3 | 0.01 | |||||||||||||||||||||
Currency exchange rate fluctuations | (0.3 | ) | 0.1 | (0.2 | ) | (0.3 | ) | — | ||||||||||||||||||
Non-cash net interest expense | 1.1 | (0.4 | ) | 0.7 | — | 0.01 | ||||||||||||||||||||
2018 Q1 adjusted | $ | 21.3 | $ | (6.6 | ) | $ | 14.7 | $ | 27.5 | $ | 0.27 | |||||||||||||||
U.S. Pawn |
Latin America Pawn |
Total | |||||||||||
(in millions) | |||||||||||||
Segment contribution 2019 Q1 | $ | 27.4 | $ | 6.2 | $ | 33.6 | |||||||
Adjustment for Republic Metals Corporation reserve | 2.8 | 1.5 | 4.3 | ||||||||||
Charge-off of aged assets and other | — | 0.8 | 0.8 | ||||||||||
Currency exchange rate fluctuations | — | 0.3 | 0.3 | ||||||||||
Adjusted segment contribution 2019 Q1 | $ | 30.2 | $ | 8.8 | $ | 39.0 | |||||||
U.S. Pawn | |||||
(in millions) | |||||
Segment contribution 2018 Q1 | $ | 27.8 | |||
Impact from hurricane store operating expenses | 0.3 | ||||
Adjusted segment contribution 2018 Q1 | $ | 28.1 | |||
2019 Q1: |
U.S. DollarAmount |
PercentageChange YOY |
||||||||
(in millions) | ||||||||||
Latin America Pawn PLO | $ | 39.0 | 26 | % | ||||||
Currency exchange rate fluctuations | 0.5 | |||||||||
Constant currency Latin America Pawn PLO | $ | 39.5 | 27 | % | ||||||
Latin America Pawn same store PLO | $ | 34.1 | 10 | % | ||||||
Currency exchange rate fluctuations | 0.4 | |||||||||
Constant currency Latin America Pawn same store PLO | $ | 34.5 | 11 | % | ||||||
Latin America Pawn same store PSC revenue | $ | 17.1 | 3 | % | ||||||
Currency exchange rate fluctuations | 0.8 | |||||||||
Constant currency Latin America Pawn same store PSC revenue | $ | 17.9 | 7 | % | ||||||
Consolidated revenue | $ | 215.9 | 6 | % | ||||||
Currency exchange rate fluctuations | 2.2 | |||||||||
Constant currency consolidated revenue | $ | 218.1 | 7 | % | ||||||
Consolidated net revenue | $ | 130.2 | 6 | % | ||||||
Currency exchange rate fluctuations | 1.3 | |||||||||
Constant currency consolidated net revenue |
$ |
131.5 |
|
7 | % | |||||
Consolidated PSC revenue | $ | 83.7 | 10 | % | ||||||
Currency exchange rate fluctuations | 0.9 | |||||||||
Constant currency consolidated PSC revenue | $ | 84.6 | 11 | % | ||||||
Consolidated merchandise sales gross profit | $ | 43.9 | 4 | % | ||||||
Currency exchange rate fluctuations | 0.4 | |||||||||
Constant currency consolidated merchandise sales gross profit | $ | 44.3 | 4 | % | ||||||
Consolidated operations expenses | $ | 89.5 | 7 | % | ||||||
Currency exchange rate fluctuations | 0.9 | |||||||||
Constant currency consolidated operations expenses | $ | 90.4 | 8 | % | ||||||
Latin America Pawn net revenue | $ | 27.6 | 15 | % | ||||||
Currency exchange rate fluctuations | 1.2 | |||||||||
Constant currency Latin America Pawn net revenue | $ | 28.8 | 20 | % | ||||||
Latin America Pawn PSC revenue | $ | 19.4 | 16 | % | ||||||
Currency exchange rate fluctuations | 0.9 | |||||||||
Constant currency Latin America Pawn PSC revenue | $ | 20.3 | 22 | % | ||||||
Latin America Pawn segment profit before tax | $ | 6.2 | (31 | )% | ||||||
Currency exchange rate fluctuations | 0.2 | |||||||||
Constant currency Latin America Pawn segment profit before tax | $ | 6.4 | (29 | )% |
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