EZCORP, Inc. (NASDAQ:EZPW) Q4 2019 Earnings Conference Call - Preliminary Transcript

Dec 05, 2019 • 05:00 pm ET

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EZCORP, Inc. (NASDAQ:EZPW) Q4 2019 Earnings Conference Call - Preliminary Transcript

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Q & A
Analyst
John Hecht

if you can give us a sense for how long do you think this would be sustained based on your knowledge of the political environment down in Mexico?

Executive
Daniel M. Chism

Yes we are little surprised so the social welfare programs is coming into place as with the management team down there, I'm sure our peers were also. We're still seeing cash in the economy. So, those programs are still working their way through and it's coming up to bonus time for most of the work, and so we'll see sustained cash probably through January, February of next year.

We -- I'm not an expert on Mexican politics and how -- thinks. We think it should run its cost by them, but as we have a surprise by these programs I couldn't give you comfort that they won't reappear again, John.

Analyst
John Hecht

Okay, thank you guys very much.

Executive
Daniel M. Chism

Thank you.

Executive
Stuart I. Grimshaw

Thanks John.

Operator
Operator

Your next question comes from the line of Vincent Caintic from Stephens.

Analyst
Vincent Caintic

Hey, thanks, good afternoon. Actually continuing on that line of thought of the social welfare programs. If you could -- is there a way to size perhaps the impact that's had to this quarter results and maybe an idea if you can help us of how to think about that into the next quarter what you're seeing so far. And then maybe just taking a step back so I know first cash discuss this as well, but just in your words, if you could describe exactly what's going on.

And if one of the debates is whether or not this is a one-time payment or an ongoing payment. I'm not sure if you could maybe elaborate on that.

Executive
Daniel M. Chism

Yeah. It continues to be a little bit more ongoing payment right now. So the question Stuart was alluding to is, how long do they continue to do it if President (inaudible) wants to continue it, it could continue for a good while. But I think a lot of that's probably an initial impact that they're looking for.

As far as sizing that's a little bit more difficult to isolate it but that was one of the things that I had tried to call out as well. I know it's a little tough to parse it out, but we saw a 3% decrease in same-store loan balance in Latin America overall, but when I look at Latin American territories excluding Mexico, it was actually a positive 2% same-store loan growth. So that doesn't tell you directly

Executive
Stuart I. Grimshaw

The income statement impact, but it gives you an idea of kind of the impact on the portfolio that flows through the pawn service charges.

Analyst
Vincent Caintic

Okay, got you. And then on the flip side, so you have, you have the pawn business and the retail business -- more of your customers of cash in their pockets have you seen maybe an offset somewhere on the retail side. And do you see that your customers having the propensity to spend more?

Executive
Daniel M. Chism

Yeah, we've seen a little