EZCORP, Inc. (NASDAQ:EZPW) Q4 2017 Earnings Conference Call Transcript

Nov 16, 2017 • 08:30 am ET


EZCORP, Inc. (NASDAQ:EZPW) Q4 2017 Earnings Conference Call Transcript


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Good morning, ladies and gentlemen, and welcome to the EZCORP Fourth Quarter and Full Fiscal Year 2017 Results Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to turn the call over to -- the conference over to Jeff Christensen, VP of IR for EZCORP. Please go ahead, Jeff.

Jeff Christensen

Thank you, Kelly, and good morning, everyone. During our prepared remarks, we will be referring to slides, which were available for viewing or download from our website at investors.ezcorp.com.

(Forward-Looking Cautionary Statements)

Now I'd like to turn the call over to Mr. Stuart Grimshaw. Stuart?

Stuart Grimshaw

Thanks, Jeff, and good morning, everyone. I'd just like to start by acknowledging that we've probably had a quarter of unprecedented natural disasters, and sometimes, it's actually great to be involved with -- in an industry that responds to the customers positively after such tragedies occurred. And I think both ourselves and First Cash, in particular, had a great job in meeting the needs of our customers in a timely manner, and we are there for them in their time of need. And I think being part of an industry such as that is something that I know that our team feel very proud of. So I'd just like to mention that going into it.

We started this journey in July 2015, where we said to each of you that we want to be the leader and responsibly and respectfully meeting our customers' desire or access to cash whenever they need it. Over that period of time, I think we've delivered really well, and this quarter that we've just entered into continues the trend and represents a very strong outcome in light of some of the natural disasters that we have confronted through this period of time.

So we turn to Page 3. I think there are four key highlights that we just want to touch on. Our first is the US Pawn stores have had a terrific year, which is a big scale business to deliver outstanding performance. And those areas aren't affected by the natural disasters. Store PLO -- same-store PLO is up 3%. Our PLO per store unadjusted continues to lead the market, and we've maintained their constant yield around 14% on that PLO indicating that it is a quality portfolio that we have been driving for quite a period of time.

US Pawn is now 83% of total pawn profit before tax. That was 87% in 2016. So when we drop down to the extraordinary performance our Mexican business has achieved, we've seen the Mexican Pawn contribution is now 17%, up from 13% in 2016 and growing rapidly. Same-store PLO is up 11%, 13 consecutive double-digit quarters that we're compounding on double-digit numbers, which is quite extraordinary. Profit growth up 80% CAGR in the two-year period, which we'll refer to in Slide 5. Based upon 10 new do novo stores in FY 2017, we believe there's future capability within that geography for both acquisition and