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
Operator
Operator

(Operator Instructions)Your first question comes from John Hecht from Jefferies.

Analyst
John Hecht

Afternoon guys. Thanks very much. Just trying to get a sense for some of these one-time questions (inaudible) you talked about RDC the call options that maybe I'm not aware of what that is, can you tell us some background on that.

Executive
Stuart I. Grimshaw

RDC is a (ph) chemical rich data cooperation. We've got , about a 13% interest in that. That's for (inaudible) a lending platform that goes with our Canadian operations. They do the capital raise during the year and we had a call option that was attached to it, which expired and that was just the theoretical value of that call option being written off.

Analyst
John Hecht

Okay. And then, I understand the upcoming charge with Cash Converters instead of the lawsuit but there is a discrete items charge this quarter. What's the background of that?

Executive
Stuart I. Grimshaw

Yeah. Those were some that actually Cash Converters took on their books. So they recently got a new CEO and they wrote off a bit of software and they had to increased reserve on some loans receivable number of other things that I think it was about AUD12 million total that they took a charge.So it's five or six unique items that they have specifically called out in their earnings pre-announcement.

Analyst
John Hecht

And then the final one is the digital platform. There is some discretionary investment, how are those aside from these, -- I guess how are they discrete or different from some of the investments in the point of sale stuff?

Executive
Stuart I. Grimshaw

Yeah so primarily around (inaudible), I think it is what you're the section, you're asking about that some of the discrete investments and in technologies where we're investing what we've traditionally called Evergreen that now is branded as (ph) Lana .

Analyst
John Hecht

So, I see so you're, -- it's just simply because of discretionary you're doing it as a one-off expense, not a recurring expense is that the way to think about it.

Executive
Daniel M. Chism

Yeah. We've adjusted (ph) Lana throughout the year for the adjusted financials.

Analyst
John Hecht

Okay. And then, where do the four stores next year?

Executive
Daniel M. Chism

Yes -- by the way you John on that I just want to let you know, we will going into this next year, we would not plan on adjusting for (inaudible). So that's one that it will, -- it should start producing revenue here fairly shortly. So we will either put that into the other segment that we've got now or reported as a separate segment probably but I would not expect that to be an adjustment going forward.

Analyst
John Hecht

Okay. And then you might have.

(inaudible) it's in the call that the locations of store openings that you're expecting next year.

Executive
Daniel M. Chism

They'll be in Latin America, with the majority being in Mexico.

Analyst
John Hecht

Yeah. And then last question, and appreciate you guys (inaudible) all these. We've heard about the impact of seven social welfare programs in the Latin America from your peers. So that's not terribly surprising, but I'm wondering