Date post: | 23-Jun-2015 |
Category: |
Documents |
Upload: | juliet-diiorio |
View: | 718 times |
Download: | 0 times |
ezcorp.com | nasdaq:ezpw | february 2011
: EZPW
february 2011
shareholder presentation
ezcorp.com | nasdaq:ezpw | february 2011ezcorp.com | nasdaq:ezpw | february 2011
safe harbor statement
This presentation contains certain forward-looking statements regarding the Company’s expected
operating and financial performance for future periods. These statements are based on the Company’s
current expectations. 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 changing market conditions in the overall economy and the industry, consumer demand for the
Company’s services and merchandise, and changes in the regulatory environment. 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.
ezcorp.com | nasdaq:ezpw | february 2011ezcorp.com | nasdaq:ezpw | february 2011
mission
delivers financial services
our customers want . . .
their way . . .
any time, every time.
ezcorp.com | nasdaq:ezpw | february 2011
geographic footprint
north america
africa
europe
australia & asia
EZCORP Albemarle & Bond Cash Converters
ezcorp.com | nasdaq:ezpw | february 2011
our business
312Locations
90Locations
90Locations
42Locations
pawn operations | 534 locations
ezmoney operations | 498 locations
442Locations
56Locations
1,032 storefronts
844Locations
132Locations
56Locations
our business
affiliate locations 730+
As of 12.31.10
ezcorp.com | nasdaq:ezpw | february 2011
us pawn
• grow pawn loan balances• augment product offering (VIP/PPP)• increase inventory purchases
- gold- general merchandise
• leverage infrastructure• acquisitions and greenfields
netrevenue
operatingincome
20082009 2010
$311.4M
$249.8M
$183.8M
20082009
2010
$150.2M
$109.3M
$85.2M
growth drivers
ezcorp.com | nasdaq:ezpw | february 2011
empeño fácil
• grow pawn loan balances
• maturing stores / leveraging infrastructure
• augment product offering - PPP/cell phone recharge
• greenfield- full line/jewelry only
netrevenue
operatingincome
20082009 2010
20082009
2010
$150M$16.0M
$9.8M$7.4M
$4.4M$3.9M
$3.2M
growth drivers
ezcorp.com | nasdaq:ezpw | february 2011
ezmoney
netrevenue
operatingincome
20082009 2010
20082009
2010
$56.2M$121.1M
$100.3M$89.7M $40.5M$33.4M
growth drivers
• new and enhanced products- installment loans
- auto title loans
• greenfields (Canada)- 56 stores in less than 2 years
- maturing stores / leveraging infrastructure
- selective acquisitions
- line of credit
- integrated debit card
ezcorp.com | nasdaq:ezpw | february 2011
• single, global brand• stores
- 72 company-owned, Australia, UK- 600+ locations, 18 countries
• operations- buy/sell model- short-term unsecured lending
• EZCORP investment- $63.3M, 33% total- 2 of 5 board seats
cash converters (CCV.ASX)international limited
revenue netincome
20082009 2010
20082009
2010
$19.1M
$112.7M
$70.9M$66.7M
$12.1M$13.6M
growth drivers
contribution to EZCORP
$3.9M
ezcorp.com | nasdaq:ezpw | february 2011
• two-brand strategy, UK only• stores
- 146 full-line jewelry pawn- 35 ‘pop up’ gold buying
• operations- jewelry only pawn/gold buying- short-term unsecured lending
• EZCORP investment- $45.7M, 30% total- 3 of 9 board seats
albemarle & bond (ABM.L)holdings PLC
revenue netincome
20082009 2010
20082009
2010
$22.8M$129.8M
$89.7M$93.9M
$17.2M$14.5M
contribution to EZCORP
$6.8M$5.0M
$4.3M
growth drivers
ezcorp.com | nasdaq:ezpw | february 2011
consolidated financials
ezcorp.com | nasdaq:ezpw | february 2011
revenue & earnings growth
$447.5M
$359.9M
$280.9M
20082009
2010
20072006
1Q’11
$112.9M
$225.7M$191.1M
$134.2M
earningsper share
$1.96
$1.42$1.21
20082009
2010
20072006
1Q’11*
$0.52
$0.88
$0.69$0.69
FYE 9/30 unless noted
* Non-GAAP, adjusted for one-time charge. See appendix.
$2.40
guid
ance
netrevenue
ezcorp.com | nasdaq:ezpw | february 2011
margins
store operatingincome
47.1%
42.7%
2009
2010
2008
1Q’11
$54.8M
$121.9M
51.9%
operatingincome
$141.9M
$101.5M
2009
2010
2008
1Q’11*
$38.9M
$73.7M37.5%
48.5%
$210.8M
43.4%$153.7M
$69.7M
26.2%
28.2%
31.7%
34.4%
$50.3M
FYE 9/30 unless noted
* Non-GAAP, adjusted for one-time charge. See appendix.
ezcorp.com | nasdaq:ezpw | february 2011
EBITDA & cash flow
EBITDA
$156.5M
$114.2M
2009
2010
2008
1Q’11*
$42.2M$54.5M
cash flowfrom operations
$141.9M
2009
2010
2008
1Q’11*
$30.1M $31.6M
$86.0M
$35.8M
$65.1M
$89.2M
FYE 9/30 unless noted
* Non-GAAP, adjusted for one-time charge. See appendix.
ezcorp.com | nasdaq:ezpw | february 2011
balance sheet / liquidity
pawn loans 124.4
signature loans 12.0
auto title loans 3.3
turnover 3.8x
fair value 170.1
debt/equity 4.0%
debt/EBITDA 0.41x
12.31.09 12.31.10cash 17.0 23.9
loan book(s) 114.5 139.6
receivables 26.5 31.8
inventory 63.5 77.7
deferred tax 20.7 23.2
investments 90.5 109.0
prepaids/other 24.6 28.7
PP & E 52.4 66.6
goodwill/intangibles 117.1 144.5
debt 32.5 22.5
payables 39.7 49.0
customer deposits 2.7 5.9
taxes/other 9.3 7.7
stockholders’ equity 442.6 558.3
net tangible assets 325.5 413.8
$(millions)
note: loan balances do not include loans from an affiliated lenders but brokered by EZCORP of 32.4M in 2010, 31.9M in 2009.
ezcorp.com | nasdaq:ezpw | february 2011
strategic initiatives
ezcorp.com | nasdaq:ezpw | february 2011
strategic initiativesbattleship stores
• make the best better - top 10% stores deliver 25%+ of
total store operating income
• operating margins 10%+ higher than average
• focus on investment & innovation- enhanced fixture and store design
- jeweler on premises
- technology investment and process improvements
- investment in human capital
- elevated marketing spend
ezcorp.com | nasdaq:ezpw | february 2011
strategic initiativesgreenfield / acquisitions
• robust pipeline of acquisition and greenfield location opportunities• rigorous evaluation process with target returns• proven methodology
fiscal ’11fiscal ’11fiscal ’11
YTDYTD guidance
greenfield acquisition greenfield
3 9 10
17 - 55-60
5 - 35-40
fiscal ’10fiscal ’10
actualactual
greenfield acquisition
7 16
53 -
51 -
ezcorp.com | nasdaq:ezpw | february 2011
strategic initiativesnew products
2007 2011201020092008
installment
loanauto title
loan
DINERO. CONVENIENCIA. CONTROL.
¡Dile SÍ al Change!
Con Tarifas Bajas | Deposita y Transfiere Fondos | Cargar el Cheque a la Tarjeta*
Realiza Compras | Paga Facturas | Usa los Cajeros Automáticos | Comience a Ahorrar
changedebitcard.com
Cash. Convenience. Control.
Dinero. Conveniencia. Control. Servicios disponibles para titulares de la tarjeta. Rigen los términos y condiciones para los cargos de la tarjeta. La Tarjeta Change MasterCard® Prepagada está emitida por Inter National Bank, miembro FDIC, conforme a una licencia otorgada por MasterCard International, Inc.* No se aceptan todos los tipos de cheques para cargar en la tarjeta. Consulte los términos y condiciones de la tarjeta para obtener información detallada.
CO_CHANGE_1010_ST_ES
change
cardcheck load
moneytransfersavings
ATM
The money you need. The respect you deserve. So you can get back to enjoying life.KS_VERSA_1110_ST_A
El dinero que necesita. El respeto que usted merece. Así que puede volver a disfrutar la vida.
Loans up to $2,000!*¡Préstamos hasta de $2,000!*
V E R S ALOAN
The versatile way to get the funds you need, for whatever you need.
As you pay it back, the funds are available to use again — you’re in control!**
Not a Payday Loan | No un préstamo de día de paga
See store associate for details.
line of
credit
ezcorp.com | nasdaq:ezpw | february 2011
strategic initiativesdigital
SMS (text messaging)
•collections•marketing
email•marketing
customer experience•qualitative customer data - via survey system
•quantitative customer data - via business intelligence data mining
•qualitative market data - via market surveys
online advertising•internet yellow pages•pay-per-click advertising (facebook & google)
integrated website•website design
social media marketing•facebook•you tube•twitter
online lending
mobile applications•loyalty programs•marketing
currentin
development
ezcorp.com | nasdaq:ezpw | february 2011
strategic initiativesfinancial servicescurrent future
pawnloans
goldscrap
retailsales
VIPPPP
paydayloan
autotitleloan
installment
loan
line ofcredit
brick & mortar ezmoney products brick & mortar pawn products web or mobile based financial services
pawnloans financial
services
ATM
gold scrap
retail salespayday loans
bill pay
line of credit
auto title loanscheck loads
installmentloans
moneytransfer
savingsaccount
VIP PPP
ezcorp.com | nasdaq:ezpw | february 2011
investor considerations
strong balance sheet/cash flow
track record of delivery
stability
23% 5 year eps CAGR
future
large underserved markets
fragmented industry
opportunities for growth/scale
geographic diversification
EZCORP delivers financial services our customers want . . . their way . . . any time, every time.
current
future
new product innovation
multi-channel delivery
integrated financial services hub
multiple customer touch points
ezcorp.com | nasdaq:ezpw | february 2011
appendix
ezcorp.com | nasdaq:ezpw | february 2011ezcorp.com | nasdaq:ezpw | february 2011
use of non-GAAP financial measures
We have provided earnings before interest, tax, depreciation and amortization (EBITDA) and consolidated cash flow
from operations for fiscal 2008, 2009 and 2010 and the first quarter of fiscal 2010 and 2011. These are non-GAAP
financial measures that management uses, along with GAAP financial measures, to assess operating performance.
We believe that, like management, investors frequently use EBITDA and cash flow from operations to assess our
operating performance and compare it with that of other companies. We also believe that this information, when
viewed together with GAAP measures such as gross margin, operating income, net income and net cash provided by
operations, allows us to better evaluate profitability, profit margin and cash generating trends.
In addition, for the first quarter of fiscal 2011, we have presented non-GAAP operating income and earnings per
share, and have adjusted EBITDA, by excluding a one-time charge related to the retirement of our former Chief
Executive Officer and the related tax benefit. We made these non-GAAP adjustments because we do not believe
that the excluded one-time charge is reflective of underlying operating performance, and thus, we believe
information as presented facilitates an enhanced understanding of our actual and expected performance and
enables more meaningful period-to-period comparisons.
The accompanying financial schedules reconcile each non-GAAP financial measure to the most closely comparable
GAAP financial measure and show the non-GAAP adjustments described above. The non-GAAP information
presented is not meant to be considered in isolation or as a substitute for, and should be reviewed in conjunction
with, the corresponding GAAP information.
ezcorp.com | nasdaq:ezpw | february 2011
GAAP to non-GAAP adjustments
Adjustment to reflect one-‐0me charge related to the re0rement of previous CEOAdjustment to reflect one-‐0me charge related to the re0rement of previous CEOAdjustment to reflect one-‐0me charge related to the re0rement of previous CEOAdjustment to reflect one-‐0me charge related to the re0rement of previous CEOAdjustment to reflect one-‐0me charge related to the re0rement of previous CEO
$000$000 Three months ended December 31, 2010Three months ended December 31, 2010Three months ended December 31, 2010Non-‐GAAP
GAAP Adjustments Non-‐GAAP
Net revenueNet revenue 134,232 134,232 -‐
Opera<ons expenseOpera<ons expense 64,504 64,504 Administra<ve expenseAdministra<ve expense 26,138 (10,945) 15,193 Deprecia<on and amor<za<onDeprecia<on and amor<za<on 4,179 4,179 Loss on sale of assetsLoss on sale of assets 7 7 Opera<ng income 39,404 10,945 50,349
Interest incomeInterest income (3) (3)Interest expenseInterest expense 300 300 Equity in net income of affiliatesEquity in net income of affiliates (3,367) (3,367)OtherOther (61) (61)Income before income taxesIncome before income taxes 42,535 10,945 53,480 Income tax expenseIncome tax expense 15,105 3,831 18,936 Net incomeNet income 27,430 7,114 34,544
Earnings per share (diluted)Earnings per share (diluted) $ 0.55 $ 0.14 $ 0.69
ezcorp.com | nasdaq:ezpw | february 2011
GAAP to non-GAAP adjustments
EBITDAEBITDAEBITDAEBITDAEBITDAEBITDAEBITDAEBITDAEBITDAEBITDA
$000$000 Year ended September 30,Year ended September 30,Year ended September 30, Three months ended December 31,Three months ended December 31,Three months ended December 31,Three months ended December 31,2008 2009 2010 2009 201020102010
Non-‐GAAPAdjustments
Net incomeNet income 52,429 68,472 97,294 25,707 27,429 7,114 34,543
Adjustments:Adjustments:Income taxes 25,642 36,840 54,236 14,120 15,106 3,831 18,937 Other expenses / (income) 8 38 (93) (15) (61) (61)Equity in net income of affiliates (4,342) (5,016) (10,750) (1,283) (3,367) (3,367)Interest expense 420 1,425 1,385 365 300 300 Interest income (477) (281) (186) (8) (3) (3)Deprecia<on & amor<za<on 12,354 12,746 14,661 3,356 4,179 4,179
EBITDAEBITDA 86,034 114,224 156,547 42,242 43,583 10,945 54,528
Cash Flow from Opera0onsCash Flow from Opera0onsCash Flow from Opera0onsCash Flow from Opera0onsCash Flow from Opera0onsCash Flow from Opera0onsCash Flow from Opera0onsCash Flow from Opera0onsCash Flow from Opera0onsCash Flow from Opera0ons
$000$000 Year ended September 30,Year ended September 30,Year ended September 30, Three months ended December 31,Three months ended December 31,Three months ended December 31,Three months ended December 31,2008 2009 2010 2009 201020102010
Non-‐GAAPAdjustments
Net cash provided by opera<ng ac<vi<esNet cash provided by opera<ng ac<vi<es 62,344 80,617 124,725 35,327 35,151 7,114 42,265 -‐
Loans madeLoans made (344,450) (446,023) (545,579) (128,315) (152,860) (152,860)Loans repaidLoans repaid 207,718 276,255 335,832 77,849 91,380 91,380 Recovery of pawn loan principal throughRecovery of pawn loan principal through -‐
sale of forfeited collateral 110,211 154,235 174,224 45,256 50,833 50,833
Cash flow from opera<onsCash flow from opera<ons 35,823 65,084 89,202 30,117 24,504 7,114 31,618
ezcorp.com | nasdaq:ezpw | february 2011
fact sheet
corporate headquartersEZCORP Inc.1901 capital parkwayaustin, tx, 78746512.314.3400
investor relationsstephen stamp, sr. vp, cfo512.314.2220
executive managementpaul rothamel, president and ceoeric fosse, president pawn americasstephen stamp, sr. vice president and cfomark kuchenrither, sr. vice president strategic developmenttom welch, sr. vice president and general counseltony sanders, sr. vice president human resources
analyst coveragecl king & associates - william r. armstrong, cfa 518-431-3259craig-hallum capital group - brian r. popiel, j.d. 617-275-5176 jmp securities - john hecht 415-835-3912roth capital research - elizabeth o. pierce, cfa 949-720-7130sidoti & company, llc - john j. rowan 212-453-7080stephens, inc. - david burtzlaff, cfa 214-258-2723sterne agee & leech inc. - henry j. coffey, jr., cfa 205-949-3646