EZPW - Earnings call transcript Q1 2019

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Operator

Good day, ladies and gentlemen, and welcome to the EZCORP First Quarter Fiscal 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time.

As a reminder, this call may be recorded. I would now like to turn the conference call over to Jeff Christensen, Vice President of Investor Relations of EZCORP. Jeff. ahead, go Please

Jeff Christensen

good and morning, you, everyone. Thank

prepared which are our website investors.ezcorp.com. remarks, download we slides, to at referring be available our will from During for or viewing

by from conference like results factors contain statements these based slides, forward-looking Securities for on statements expectations. our performance statements implied periods expected current everyone other Before expressed future for the company's the of certain to that Actual the the and begin, well as other filed company's Exchange I'd and reports in forward-looking materially to and those that we number differ discussed are a this annual, due quarterly Commission. operating call, and with regarding future as or presentation may These remind financial risk are periods.

would to the like Stuart? turn Stuart Grimshaw. to I call Mr. Now, over

Stuart Grimshaw

to Danny first It's terms Thanks, to and performance been Jeff you very XXXX presentation. of strong another everyone and quarter in through this will financial operating results shortly. welcome our run our quarter

recap to of at December highlighted Investor I'd the like we issues in some year. strategic Day last However, briefly

So outlined. that X, can to are we four turn if there you initiatives slide

are numbers the the driven on region experience. undertaken. representing or a consolidated gains. with we've on we And we with to customer that focusing market U.S. always X% basis, the loans LatAm LatAm the growth XX% strong for people a customer deliver team to grew X% are of by starts XX% gross portfolio. of look Firstly, that a said the at grew are in extremely loan who great These everything satisfying share On need XX%, gross focused the and customer's regard, the We've cash. at growing a where this our acquisitions by of same-store

initiative second across geographies. diversification was The

to the the four and of region. in stores Latin stores de in novo presence with in America acquisition continue Latin in America We our build five Mexico

store expect investments, four de and in expansions To undertook XX% expected these relocations acquisitions, also novos. GPMX business. from we the investments, these reiterate, we the locations XX% and on on to addition In XX% on five ROICs five-year

committed be these an price to I right the XXX between right with but to in previously that have as would mentioned team the We annual achieved. locations growth to the are caveat XXX right ROICs and the also remain of such I stores, management

we a flow cash initiative and third The strong balance outlined was sheet.

increase $XX Our from received XX% AlphaCredit. have a-third, an principal to in just in of million, million balances cash cash million under to grown flow $XXX reflecting with operating $X

Investor that strong we the As and discussion of with of targets. a discussed have pipeline assessing these acquisitions are Day, various at we at are stages

the have have reviewing of and our strategic note opportunities Day the board maturity available. looming. much currently also to been of debt market the company since convertible available pretty a in light XXXX The and We convertible June Investor markets the closed options condition

also we continue domestic banks to financial to flexibility support driven data the laptops engagement tablets. are We more are that customers the is initiative know digital stepping remain difficult We today covenant has through our fourth smartphones, committed maintaining zero The increasingly to But of our achieve. opportunities. proven and but highest-return sophisticated the use for basis, with on on capitalize unsecured to customers. back, this the to becoming look

in end, To our by Our robust regards XX a believe week Consulting engagement running We will evolution horizon stores cycle, Group in are is create that the customer enhance we had retention. up of financial little later life in end stores. a the platform and more our and the we the talk Ventures. Digital XXX U.S. that development the we've Day, industry POSX XXX stores, to At and be in – and this commencing XXX XXX partnership immune Investor this fulfillment. to about in not which digital the Boston engagement In of acquisition digital present customers, of time of a the I’ll to customers in with digitize investments with must Mexico

U.S., XX% located. of where have the we stores in presence seven in Importantly, states are our

We to of last deploy states we long we fully as will readily unsure are move tax get the it refund into will through once how season these for. which to

that the the made Investor have and customer our outcomes of advances data recall rating We You'll over Day, that million utilization our have. customer data XXX upon. the points we mentioned capture we we in have we based highlighted

POSX. full We to will that, our I system over customer will the next into start pass to the with grading integrate over And few months Danny.

Danny Chism

morning, Thanks, you performance excited share quarter. for Stuart, the strong I'm everyone. operating first to our with good and pawn

the X. with setting loans highlights the on the for slide outstanding end higher was the quarter start QX adjusted PLO or results fiscal XXXX. pawn the Consolidated us of well and of XX% at Let's up remainder of

rise revenues XX% an into EPS adjusted For and $X.XX. higher the leveraged net the a in to EBITDA XX% X% quarter, in diluted we increase

As year reflect from and earnings earnings. to I the Net operating showed up activities results interest a our XX%. income prior figures from current expense ken exclude more last mentioned both cash non-cash quarter, similar adjusted cash improvement and to

delivered PLO several end Our year-over-year at period same-store strongest was quarters. of growth the in the the

double-digit growth X% adjusted to growing and net segment segments fastest increase Latin acquired leveraged As of revenues PLO same-store Latin and X% Stuart delivered PBT. in in and up our Pawn The the America, mentioned, X% including a America effect over new US$XX into U.S. delivered an XX% Pawn same-store was increased stores. XX% million. growth, bump EBITDA just up the XX% PLO

Moving on slide X. to

EBITDA progress and structure, XX% consolidated quarter. we've other focus in first at management years efforts three outstanding now expense actions. reached XX% EBIT reflects was advance to our benefit the leverage the just margin regularly the consolidated ago the simplify improving margin. in The and and see our That of and we've business, You made

XX% a quarter. higher the PLO combined margin EBITDA of a For from benefit largest segment America U.S. Latin the XX% expenses. Pawn, our expanded with in XX% to well-managed Pawn posted margin reflecting

the stores stores acquired over about standards. stores acquired added are suppress and margin months, fully XX new integrated they and EZCORP excited temporarily and do mature the past transitioned until to the EBITDA While new

Turning quarter of costs to quarter charges $XX.X results GAAP growth as other well that discrete the million. discretionary in in the Included contributed to and million as of for the slide pre-tax were X. investments $X.X non-cash a loss

charges impairment Excluding in believe our income upside adjusted Converters. recorded million there of was non-cash the pre-tax stock of Cash discrete We improving in value be price million. significantly CCV stock those items, $XX.X investment The as We several sell $XX.X comprised analysts Australian carrying the items. to market. of to underlying earnings have predict the stock and current the corporate next general side demonstrated year. volatility an over higher CCV's in trend levels are also

accounting us to to price standards investment at the strict Our the application mark CCV stock which XX. down December caused our at was of trading

the primary $X.X our for million XXXX. to from exposure its Republic a CCV's a refinery to Metals million The fully interest and our We in Mexico. November XX Republic remainder charged Corporation the to portion lawsuit income our also We announced equity as reserve $X.X Chapter previously a used settlement U.S. of scrap which bankruptcy previously came quarter. in our gold charge declared in recorded in of class action resolved

of current our collection almost and also platform development fact physical results includes pursue services few assets as about turn connected the of December recur. included Stuart minutes. $X.X quarter just GAAP costs Latin in Corporate insight activities towards little provide don't million of mentioned. Please provide and in opportunity data-driven I X. more that The a of expense America, to in expect investment quarter's to to of after recovered books. a indicative slide lending a Stuart which a of will digital last in into not in this to the to continue closing We XXX,XXX week ledger transactions

after Here discussed. find constant for the the and discrete just you'll interest underlying performance currency, noncash adjusting items

noncash Operating increase last revenue effect leverage quarter margins the that be further quarter compared the mainly continue $X.X year. touch top until acquired range same the the on in longer impact information later bit in from XXXX the stores as of On slightly higher back net on approximately are loan acquired disciplined only anticipate of a will Slide income We same-store the flows. do that of was charges likely QX. expenses largest of we're line about the long-term X% X% was see and revenues loan scale. effective ending $X.X PLO reach mature. sales integrated interest rise and big of in period the year That a was until We've as in in Consolidated the adjusted I at quarter lower U.S. much PSC they up earlier, the cash period push to a chart. of interest in new rate a have benefit expect PLO as growth of $XX the our X the quarter-by-quarter noncash net was lift Consolidated basis into is related effect up build our on rate recent with high would competitor receivable they the we pawn before grow business are $XXX,XXX adjusted strategy. so stores drag interest the continues if same to increased sales quarter. of customer to shows and this to no X%. mature than could X% similar as XX% call the will for start an revenues last seven-year to six quarterly million cash. our be in year relation to XX% high. briefly same Corporate last on at fact same-store EZCORP bottom shutdown. to expense I'll year in principal The transitioned America. tax outstanding effective $X.X we to in expense the interest X% our up margins acquisitions debt X% discernible timing in same increase the well X%. store much change government fourth use similar per -- stores this the As points interest Though in leveraged change our improvement The hurricanes expenses occur, impact quarter, year. XX%. from new removes offset We've tax seen million approach last XX%. not with last a PLO diluted and expense QX operations to EBITDA prior impact would was stores to breakeven a be should same in Latin fully the delayed same-store the expense on our months, strong a quarter of net of $X.XX. as growth a were the growth notes of the our business. current quarter be that standards. that are of up The will In X% income, up to managed our X%. operations I part made year full unaffected to this in Inventory results after and mentioned in stores as pawn the shutdown. of EPS cash I both the at from income as remained represent year most XX% Merchandise in AlphaCredit. in The and our up and share. of to fiscal year maintained net we noncash XX% XX% $XXX,XXX strong but U.S. sequentially quarter in EBITDA growth positive to repaid from monthly. our million Acquired end excellent quarter, XX%. X% pawn recent will last net latter representing drop shows U.S. at modestly were leveraged continue interest noncash stores Overall, new contributing they Latin market removes be, the target refunds. of tax with If remains the adjusted out well from America adjusted beginning related quarter our PLO on strong earnings expense that and to the The last to adjusted X% in profit IRS continuing XX% mentioned growth percentage the note delivering for seen the This as to typically customers in by same-store this bit nine U.S. issuing Adjusted we're XX that quarter. which increase would as analyze in convertible no remaining million. shorter below was prior rose the from take Same-store a increase net looking we be quarter two inflow PLO but yield. PLO, it suggesting service quarter to Even by you of trend higher year-over-year delivered to pawn points lending rose Slide pawn the loan quarter, X PLO for secret to PSC the the

is As significant even seen on slide the long-term segment XX, delivering growth a quarter-after-quarter. same-store loan basis, on

PLO same-store In fact the was this of quarter consecutive XXth growth.

we on in on continue stores. of migrate year Slide America pawn XXXX. XX% sales. of was stores. same-store PSC Same-store growth quarter Customers revenue. quarter-end highest about acquired personnel also end as historical the quarter's Latin new driving XX% recently increased rapid XX,XXX increase PLO investments quarter expand EZCORP the will including strong rates to new as anticipate impact the occurred PLO due acquired PLO America I to stores in in same-store PLO this and loan PLO tax in point-of-sale as the our increase expenses delivered levels the a the less and shows period. same-store the per XX% Latin and as mainly stores quarter quarter's XX, new and reflect stores needed expect increased employ the system, America prior same same of to growth difference total practices. double-digit as since and prior our top The EZCORP acquired bring attributable quarter. was by PLO is growth to operating of to yields continued expenses of the to XXXX near stores year. had up a we Latin We before between acquired also fiscal net the primarily offset of last to store leverage which acquired standards. administrative EZCORP's to for transition of return Profit mature the PSC This to partially December was growth to and in higher software standards to policies X%. portfolio cash The

the XX. Turning additional balance strong to and growth. even the sheet We million a ended cash quarter investing with $XXX slide after in PLO $X million in

due discretionary liquidity payoff of leaves Assuming in notes June daily stores to and cash for and million investments. of million the available million of growth other to needs acquisitions, convertible $XX invest $XXX operations new in $XX

including receive in terms principal and In receivable. in notes the addition, XXXX to with timely, interest from receiving we payments We continue fiscal $XX those of million remainder of anticipate AlphaCredit cash another accordance interest. the

installment compensation XXXX. fee is of fiscal the September the first remaining We $X in to million another related This the with also from expect in due AlphaCredit million collect $X XXXX. deferred

the you of better the to call that turn a have results, financial Now over I'll Stuart. back understanding

Stuart Grimshaw

of to a Thanks previously digital I running as evolutions at calling this where we're Danny. platform just I And want time mentioned for we Evergreen. spend it the just presentation, are of purposes through the bit

of these financial customer which Digital the valuation skills teams taken with of Consulting around platform retail Boston customer done we've we're our to to to Boston and partnered brand needs. advantage digital were develop at customer-centric Group us what and great research we've the footprint, arm of To tighter exciting which a coupling and in and start-up for of center multidisciplinary IP Ventures And turn approach. financial engagement, end competitive Consulting and methodology, EZCORP slide the couple and these, investment and invest us. speed that's customers' Group this you has places mindset with We've If proven a reputation, additional arm large customers' [ph] Ventures was innovates lean quite experience this dives XX an terrific deep platform Digital addresses and creation that proprietary using needs. the a

Consulting the following and and And as with in manage an published there comfort Ventures United study FDIC as invent, Just Boston companies individuals to appropriately to turning scale October slide under-banked that the risk Bosch unbanked you'll this businesses. of in part. States. that see million XX background, This core and DNA launch, the XX, is XXXX, are many such UBS, is us provides Starbucks, part Group game-changing Digital and in

You may of to that fundamentally of XXXX report Fácil adult underserved and recall CEO According their under-banked size unbanked the of spent similar that fees a of $XXX number had or outlined at consumers population. market interest. Mexico million on Day Investor XX% XX around billion and CFSI Empeño the

which to monoline You'll in to $XXX us or but access million, annual very revenues note fintech all means to our they're cost-effectively world. There underserved around degree platform. the trying segment. This physical a remain our this are to or attract to small their to financial capital-constrained unable that either unable customers many and makes the are customers the space, companies meet customers' needs the fundamentally digital

customer undertook three Boston Digital friction key which conjunction slide and XX, by their research in in-depth to Group interviews Turning points. one-on-one Ventures, highlighted with we in homes Consulting substantial

feel a upon news understanding the whole is of an an one. value customer's is First an pawn lack assets and intimidating experience

on Secondly, laborious in-store loan for making the a can undertaken only a and is one people. be payment time-constrained

and amount to the XX, due want here. constrain I the previously key are there of payments time cost creating company the understand leveraged incurs bring mentioned slide and points date. platform to in we've out process and people assets payable Thirdly, the loan strategic I that made it to digital On four of

channels, XXX with enable combined acquisition will very with a Firstly, low cost store for and strong -- digital pawn locations node customers. new have combined this we

We or a either have product per of get does able product million with this account instantaneously. customers served who not X.X we're purchase for to loan depth products and also customers and rapidly feedback customers trial annum sell those our

take create research a digital will they of skin are new and asset Thirdly, can value shows rapidly. the XX% own the and they digital behavior a now the financial And digital to these we'll snapshot valuation of value they a initially They a utilizing millennials be knowledge product customer This of Evergreen XX on be have to turn Work the designed able able to knowledge to have enablement our fourthly, you to access total the acceptance. that to see our leveraged assets. the these inputs awareness photos Day, which I under of get for be we I we've slide is customers they Investor will of point create will assets app clients. proprietary they with EZCORP is that this own. what global customer If of register the the little and like. strong single understanding Currently, wealth could will From what serving of approximate assets. better the the How and concept development this? which solution of own needs of of for Firstly, shown goods potentially give of base. these look the be a WhatsApp do going limited created that was we're and

this. importantly element a to financial there inclusion most Secondly, is

in this than wallet a more We to serve. segment digital customer Customers digitally the will low-cost also assist offering We're customers and will occur to with as a opportunity be look investment we a the manner. that this create can open will be currently transactions that the able for will many through data, interact to And of the year. we really us to strategic excited more believe market difficult to collect an we'll about be with end moments. we towards will how more able dynamically calendar thirdly see enable

stage. As as Danny's of around million this only investment very early portion a we presentation, small you of from will in have $X.X spent heard was this capitalizable initial

capitalized with we capitalization expect vicinity month a experience with development of The to in on cost Boston million the Going forward, still until Group's XX% based be launch of companies. review. around Consulting to other $X this under exact XX% being the for number around is

look to growth. turning the slide of long-term to drivers XX we Finally where

this seen focus to at needs team drive of we serving results is on in the and by continue current terms commitment vision. In financial level. operational day. standards and remain to is the the customers' and initiatives high experience The store of each a higher our this for very our satisfying driven We'll to performing in cash being the members

our we and continue assess broaden opportunities in will In the community. serving acquisition unbanked terms footprint to under-banked will the of future, that

we and environment We data with will role fruition. have we accelerated the And in gather talked a will play about with I'll to its the The our this of that, also Evergreen the come phase development positive project in is digital data the future up which and of see questions. be to incorporated it insights implementation. open

Operator

from [Operator line of first comes Caintic. Your Vincent the Instructions] question

line Your open. is

Vincent Caintic

Thanks. Good morning guys.

Stuart Grimshaw

Good morning.

Vincent Caintic

and I thoughts Just to for cash to your investments wanted available about the confirm here to what slide want back are. just the turn

to June on won't cash the that will care want on debt you confirm be raising Just that balance any to convert be your that the just all maturities sheet. already or in of XXXX take that

Stuart Grimshaw

is this Stuart. Hi,

presentation, Board in and of that the market light strategic that the As available. are in availability, acquisition are currently discussing the said I opportunities cash conditions,

are through going at this time. of their So, point they process

Vincent Caintic

think be thinking of to cash need how I after your acquisitions? you you how may And reserves forward? you about Okay. cash reserve? right in seeing for million also you're So, are much what $XX million going is opportunities, to do kind given guess keep $XX Or there out

Stuart Grimshaw

that require that not company. for be $XX We level cash for is the be would $XX requirements think -- the that acquisitions operating the available to actually of is of base wouldn't we million million

Vincent Caintic

project. switching Thank it. And you. to Okay. evergreen this Got

out So familiar be Are not so -- there. this I as really interesting. I'm is available think might with the there that offerings

out really there terms you guess Is what fintech or product there's that differences I there anything I that’s to a be So know in or you're there? there? versus adjacent of there, anything see competitive out what offerings to is but also pawn intending between of kind your offer of lot might

Stuart Grimshaw

Yes. The none but customer a there and putting present actually none them fintech small in of of on type them we're very collect data have of offer There's have have and customers them store none have the operating the a companies space, parts and unique. feedback. base a is instantaneously couple where of

So importantly, offering. believe we as searched financial very at this a we customer is come more the asset we have invariably some can the meet and And stress of market it where that creating and opens think a have global customers the they close the we hands believe by unique nervousness of anxiety strained wealth market a take the under. needs of that to they to the bank they new

think world. extremely bear the an think assets but competitive our partnering Group, advantage we is is offering with we to a So, fiscal this not into bringing and substantial digital there unique actually Consulting Boston in only

Vincent Caintic

to much study terms more hard That's is interesting. what is on assets? typically assets the you how actually in assets pawnable -- there's you your has I but much think Like and this, there there could using Is size any customer of pawnable versus tap? don't how if been to way a addressable many have they available market that for are there they how them

Stuart Grimshaw

one the based has other or where number cash and we're All trying upon them We asking give actually store the to of the customer don't the know because a question. that experience right. It's the not. where assets have might good is minds around questions a typically in

a a we do the at and view sitting not customer -- we So this but it's had table bit an our this of do that's wealth. is as store educate that of store what around what to they not what -- stage, have traditional unknown, we wealth

Vincent Caintic

Thanks Very very much. Okay. interesting.

Stuart Grimshaw

Thanks, Vincent.

Operator

next Pendy. comes question Greg the from line of Your

Your is open. line

Greg Pendy

Thanks my taking question. guys. Hi, for

while real that then on is should And down metals? that I on related quarters? Just in subsequent be know XX%, a topic, entirely catch scrap, quick commodity there Thanks. I And was in assuming gold know to price also right How XQ, impact up I Republic the can't is more we now positioned predict scrap? would prices, but starting whole? that be guess favorably your does that it

Danny Chism

Yes.

Republic other So up quarter. see would we expense. you Scrap or Metals that that in this The I in item. It doesn't through actual on write-up say, line the come the I'll volumes other shows took show first. up the revenue take

America but there volume I of quarter with a in different volume pressure was was a Latin within relationships Scrap to took already a Although say some relationship significant in this while quarter. did the so anecdotal of refinery we it on particularly U.S., the pressure the have there refinery in U.S., Mexico, would not establish the In that Scrap, the as setup.

in a the So catch-up this Scrap That little I America. would next on in expect of quarter Latin bit was biggest impact the piece. revenue

basis regular provide right. up time saw to the should absolutely back time It's fairly so watch prices May-June were these frame a To we the a that the year, I prices, that It way obviously as could it heck on of But you're last well. it. three gold that remains guess Regarding was of we remain if something lot last months, for make trading to as I you bit of a tailwind that assuming tell a a next I price, could going more commodity money a the commodities. at kind height.

Greg Pendy

Thanks a lot.

Operator

The [Operator line comes question Hathaway. of next from Brad the Instructions]

open is line Your

Brad Hathaway

capital from fund the not like and and $XX actually of question, clarification talked believe to earmarked about million have it's investments for that quick you million operations, acquisitions things One first I the money correct? is the kind the you Hi. $XX

Stuart Grimshaw

to in existing The what XX XX the to is bank we to want fund call operations. we the that actually have baseload

run would the So investments and above cetera acquisitions et capital will that be the through P&L.

what buffer. view just safety So appropriate that's as we our

Brad Hathaway

I not No Got it. XX the to that's it. understood to XX Got XX. the XX,

Stuart Grimshaw

should clarified Yes, I have correct. that.

Brad Hathaway

of question this in get in in The you confident number? can What XXX to row, and you acquisitions is, real a XXX to between to makes open this did talked XXX and about XXX presentations construction. new stores couple you our this is you nine the quarter

Stuart Grimshaw

the at moment, Brad. Just the in acquisition pipeline we place have

caveat This type We acquisitions I've are price growth is is looking not always the the some of at had any the and growth at objective. sized good this price. right

acquisitions not management hasn't bring been We that the that of been or walked team would a from have bring the -- right additional that price we would and couple where has think the risks. to level

details, and that in So management right place the year still I you It's what the there, achievable we into will we that right think the as Seller to we acquisition deliver it's is through it's think you said have but right we of two more. the locations, the agree. We that. have with that think team, lot nitty-gritty But get price. have. until find a the buyer this

Danny Chism

would I piece I that novo a we but would more number not did as largest year some stores increase would well. this the specific anticipate put opening only but de not than in We've we last on add be on expect now. year-over-year that do acquisitions year of that

Brad Hathaway

had would Got to be be novos acquisitions it, figured bit XXX it challenging, a right. because to I would I opening think. XXX de

Stuart Grimshaw

very That ambitious. would be

Brad Hathaway

so that finally, financeable to regard with $XX -- do XXX $XX is and to you that of out believe then stores million? And XXX million

Stuart Grimshaw

'XX. are it relevance as determinations we convertible to where $XX which as of We -- XX the million utilization the balance in the to acquisitions returns would to have are. and strategic million board and make on digest have is June against to cash notes the the the the of some consider Out $XX to they going

Danny Chism

new exercised acquisition would drag take And accretive we we fund, only discipline reiterate to to thought discipline. the available if EPS including would a on if any from go able that cash financing path, where activity on maintain be would we I any we've that that consistently same the be earnings beyond what that would that

Brad Hathaway

returns seems obviously you’re whatnot, you're lot It a that on appreciated talking shareholder about since like more by and investing, kind and of -- focus so is base. capital discipline much the

Stuart Grimshaw

Thanks, Brad.

Brad Hathaway

Thank you.

Operator

next from Your Matt of Instructions] question comes the [Operator line Sweeney.

open. Your line is

Matt Sweeney

like quarter. mean like exciting you equity word a Evergreen, guys. quantify kind sounds just the way a the I another it or Hi, could use to this on just great partnership? of of partnership had partner. Does quick vendor Congrats which that and more more qualify just very question that it's or an regarding be operational is want

Stuart Grimshaw

is at we've They the -- the owners are discussed this line very of in but project it. with equity all. have outcome we interested haven't the on this what they is full to We're been the actually able reputation it so with do

think We that managed down we as would you fee gone that path appropriately the haven't have -- basis pretty we well. have

they're completely and So and this vendor that's vision outcome think they not successful. the but make the not don't true a aligned required are equity I partner, they're with to our --

Matt Sweeney

what and will how are report this different is there thoughts as kind rolled into whole out that on this then Or be segment? line know but of might you you metrics as other can mind that attract exciting, be there I investor early And can we out very sort any as is think Great. items? it's thing offerings very split new keeping and of in know fintech the potentially might days a just that of potentially this you and base a existing something maybe

Stuart Grimshaw

My by to you can of what still sense question. good of business. as that sense And that's doing. revenues and should is initiative the that the visibility cost also of separate board's business a operating the the line of visibility see will that get the we is this show my the foreign approval, is of new you subject performance Matt,

so and as at transactions business. to global line board of be of work will occurred we because the unless a have to give between be launch, an until we two I’ll indication will will that recommending the otherwise we'll the that you that do will they separate think Now overlap out at a the the asset register of think through degree create have that actually increase we launch store get that there each costs launch quarter the

Matt Sweeney

Yeah, A I that class investor make attracted pawn this be I will think in will tech revenues to base, of mobility investors new recurring wallet focus, it not just good exciting. but of lot that tracking. you might that's would think access be terms that the want of the so business new potentially but traditional with if of be customers' kind I whole whole sense to don't could it attract very a say to

Stuart Grimshaw

transparency so is typically business I on there -- the revenue, mean, valued the important. is And pretty Yeah. the

Matt Sweeney

all That’s guys. Thanks I have.

Stuart Grimshaw

Matt. Thanks,

Operator

Andrew line Oskoui. of Your next from the comes question

Your is line open.

Andrew Oskoui

in they I or financing company shares Hi. acquire I position, with current is to position Cash price, towards other if future, this had liquidate once long-term on your you investment more intentions CCV share hold wondering and Converters. know to the was your appreciate? dependent any access the debt your more likely updates the of future in But the opportunities. are you

Stuart Grimshaw

globally. model Andrew. came one, Cash in an think interesting is initial the Converters Hi, investment they in, operate countries XX how the which We is

model I better probably and it’s out is. well, being the where did doing the still it management team know that franchises refinement. business We actually redone. very the – do franchise than is could well think, The while will the needs of model,

scalable in think price. write-down that The at be want stage, the would move. Danny moving are more to invest interest. level and no current us activity a class is. have are to always I something being XX% capital more at right don't intentions to this is for said so. to path are last recovery, global different I it's I’ve anything the no the as difficult any where and investor So model on that call, the XX%. the But price been that, My at have has issue any as of on we we around that’s stage position it share But it but We've reiterated that that, And intention the reflected of which at fundamentally capital. on action that is do mentioned has commit plans this to there to is of to we a

Andrew Oskoui

the quarter. on congrats great and you Thank

Stuart Grimshaw

Thanks, Andrew.

Operator

Vincent from next Your comes line question Caintic. the of

open. Your line is

Vincent Caintic

Hey, thanks.

Just forward, any a other into should just of you. and sort stores to investments rate any investments think level general and Evergreen you're should on making absent project follow-up Thank we any buying of the we there. investments level quick and the there Is but of expenses acquisitions of run going out projects be in? modeling

Stuart Grimshaw

experience investments to As about you pretty to of is BCG's rest X sort cloud-based call per much think Evergreen, I rate run-of-the-mill think is month anything upon we the have on Vincent in stuff. XX% do with parts launch. till much mentioned The infrastructure. the probably It's million a other on run based We that it's that probably XX% companies Danny there? pretty capitalizable. of

Danny Chism

on -- were No I to of the of is the you... actual XX, different such the work think tasks of The phases the XX that's on right. capitalization that, range dependent on so kind but Evergreen output obviously to about

Vincent Caintic

Thanks.

Operator

Your of next the comes Matt from question Sweeney. line

Your is line open.

Matt Sweeney

CASHMAX? better? in it's America us strategies, strategy. valued Hi, and guys. like under-scaled. but another about you up more loan should Kind Thanks one. that for the about of is seems where There that on that public on us that returns think also of -- eminent actually update taking shipping be Latin reinvest Australia, strategically Canada then there towards know give money installment are competitors it a shift are something follow of that at. and strategically I use some sell to Andrew's up of can question can maybe stores, to And an on Is instead to idea think kind what XX to

Danny Chism

get bigger, that make to is that, Matt behind felt you. I all. could at for move don't if much right stores Canada money be America and Latin dial the going I'd think you XX we

an comes is financial. is something us with city home for or ago. move we of really about that at are We someone that. strategic to had all. The three most them, did not And trying something easy installment it, make We like the through XX while relevant to We these then, – stores them to can. shifting probably to try the no we'll come to we if certainly to deal stores it We're years nor takers government initiatives.

So trying in as best putting but do until the and financials what bit manage their care rounding just any happens. really and at it is of management to we're a take can, so time doesn't we something maintenance year it's it we're all, on

Matt Sweeney

be would – like even just case million segment shut be mean to is the think I So, think Is I lost that made to I should EBITDA so. to which bit that your relative remove there total $XX a significant loss? down of it last rounding year

Stuart Grimshaw

didn't we time, $XX rolled that things Matt. we looking as There's all at lose are – million. the but – into Look, look total it package, that we at was well, few that we look a up

place on stores We a any haven't consider we probably offers but got them. in few had need is I we’ve think that there to leases

but bothers much. at something So we're not it, looking too it's that me

Matt Sweeney

other at number was I which I international covers looking didn't course. other apologize. things, the

of $XX my My loss So not that was apologies. error, a million.

Stuart Grimshaw

No problems.

Matt Sweeney

had. I all That's

Stuart Grimshaw

Matt. Thanks,

Operator

time. over I'll turn to back There this call are no further at questions the presenters. the

Stuart Grimshaw

concludes like have Thanks for Jeff call. dialed Thank We'd into logged very in thank and who’s everyone the questions everyone. the much you and and later Danny webcast. to day. this are available and morning a very great this much

Operator

call. conference today's concludes This

You may disconnect now

Jeff Christensen	Vice President, Investor Relations
Stuart Grimshaw	Chief Executive Officer
Danny Chism	Chief Financial Officer
Vincent Caintic	Stephens
Greg Pendy	Sidoti & Company
Brad Hathaway	Far View Capital Management
Matt Sweeney	Laughing Water Capital
Andrew Oskoui	Blue Tower Asset Management.

EZCORP (EZPW) 31 Jan 192019 Q1 Earnings call transcript