EZCORP Inc (EZPW) Reports Record Revenue Over $1 Billion in FY2023
EZCORP Inc (NASDAQ:EZPW) achieves record total revenue of $1.049 billion for the fiscal year 2023, marking an 18% increase year-over-year.
Fourth quarter net income rises to $10.3 million, with a 17% increase in Pawn Loans Outstanding (PLO).
Adjusted diluted earnings per share for the year reach $0.92, up from $0.75 in the previous year.
Company expands store footprint with 21 new stores in Q4 and invests in loyalty program, now boasting 3.8 million members globally.
On November 15, 2023, EZCORP Inc (NASDAQ:EZPW) released its 8-K filing, announcing its financial results for the fourth quarter and full fiscal year ended September 30, 2023. The company reported a significant increase in revenue and Pawn Loans Outstanding (PLO), driven by strong consumer demand and operational excellence.
Fiscal Year 2023 Financial Highlights
EZCORP Inc (NASDAQ:EZPW) reported a record total revenue of $1.049 billion for the fiscal year 2023, an 18% increase compared to the previous year. The company's PLO grew by 17% to $245.8 million, reflecting improved operational performance and continued strong pawn demand. Gross profit for the year increased by 15% to $609.8 million, while merchandise sales gross margin remained steady at 36%.
Despite these gains, net income for the year decreased to $38.5 million, a decline of $11.7 million from the previous year. This decrease was primarily due to EZCORP Inc (NASDAQ:EZPW)'s share of a one-time, non-cash goodwill impairment and other discrete adjustments recognized by Cash Converters International, recorded in the second quarter. Adjusted diluted earnings per share for the year were $0.92, up from $0.75 in the previous year, reflecting the company's strong underlying performance.
Quarterly Performance and Strategic Growth
For the fourth quarter, EZCORP Inc (NASDAQ:EZPW) reported a net income of $10.3 million, an increase of $2.9 million from the same period last year. Total revenues for the quarter rose by 16% to $270.5 million, and gross profit increased by the same percentage to $159.4 million. The company's CEO, Lachie Given, commented on the results:
"Due to our team's relentless focus on superior execution and operational excellence, we achieved another quarter of outstanding financial results. PLO, revenues, and merchandise sales all reached new records for the fourth quarter and for the year."
The company continued to expand its store footprint, adding 21 new stores during the quarter, with a notable presence in Latin America. The EZ+ Rewards loyalty program also saw rapid growth, now with 3.8 million members globally, doubling from the previous year.
Balance Sheet and Cash Flow
As of September 30, 2023, EZCORP Inc (NASDAQ:EZPW) reported cash and cash equivalents of $220.6 million, a 7% increase year-over-year. The company's net inventory increased by 10%, in line with the growth in PLO. Store expenses for the year rose by 17%, primarily due to increased labor aligned with store activity and a higher store count.
The company's strategic investments and store acquisitions were supported by a robust balance sheet and liquidity, positioning EZCORP Inc (NASDAQ:EZPW) for continued growth in the global pawn industry.
To access the full 8-K filing and detailed financial statements, shareholders and interested parties can visit the Investor Relations section of EZCORP Inc (NASDAQ:EZPW)'s website or request a paper copy from the investor relations contact.
With a strong fiscal year behind it, EZCORP Inc (NASDAQ:EZPW) looks forward to executing its next three-year strategic plan, focusing on "People, Pawn, and Passion," and driving value for all shareholders.
Explore the complete 8-K earnings release (here) from EZCORP Inc for further details.
This article first appeared on GuruFocus.
