News $EZPW – #EZCORP Announces First Quarter Fiscal 2016 Results

by | Feb 8, 2016 | Globe Newswire, GNW Alerts

Pawn loans outstanding (“PLO”) up 6% on a constant currency basis1 (5% on a GAAP basis)

Same store PLO up 3% on a constant currency basis1 (2% on a GAAP basis)

Quality loan growth based on consistent redemption rate and increasing portfolio yield

Strong merchandise margin expansion to 39%, a 500 basis point increase YOY

Annualized return on pawn earning assets increased to 151%, a 900 basis point increase YOY

Reviewing strategic options for Grupo Finmart, to be completed by end of Q3FY16

AUSTIN, Texas, Feb. 08, 2016 (GLOBE NEWSWIRE) — EZCORP, Inc. (NASDAQ:EZPW), a leading provider of pawn loans in the United States and Mexico and consumer loans in Mexico, today announced results for its first quarter ended December 31, 2015.

CEO COMMENTARY AND OUTLOOK

Stuart Grimshaw, EZCORP’s Chief Executive Officer, said, “In July 2015, we announced significant strategic changes in our company’s direction which included a refocus on our pawn operations in both the United States and Mexico. With the goal of increasing both our market share and efficiency, our stated path to making that a reality was to serve and satisfy our customers beyond their expectations. This quarter’s results reflect encouraging progress in meeting those expectations with growth in our customer transactions as well as the expansion in our portfolio of pawn loans, while improving the return on investment on our earning assets.”

Mr. Grimshaw continued, “Today, we also announced that we are undertaking a strategic review of Grupo Finmart. Clearly we are disappointed in the financial performance, which is affected by changes in the industry dynamics as well as the business environment over the past several quarters. With a view to maximizing our long term shareholder value, initiatives are underway for the short term while the longer term strategic options are being evaluated.”

1Note: In addition to the financial information prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information such as constant currency results (“constant currency”) where indicated. The average Mexican peso to U.S. dollar exchange rate as of December 31, 2015 was 17.3 to 1, compared to 14.7 to 1 in the prior year. The average Mexican peso to U.S. dollar exchange rate for the current three-month period ended December 31, 2015 was 16.8 to 1, compared to 13.9 to 1 in the comparable prior-year period. See additional information at the end of this release regarding non-GAAP financial measures.

CONSOLIDATED RESULTS 

  • For the quarter ended December 31, 2015, net loss from continuing operations attributable to EZCORP was $7.2 million (-$0.13 per share), compared to net income of $4.7 million ($0.09 per share) in the prior-year quarter. This year-over-year difference reflects continued improvement in our U.S. and Mexico pawn businesses (as discussed below) that was more than offset by continued challenges in Grupo Finmart.
  • Total revenues for the quarter were $198.5 million, 7% lower than the prior-year quarter, primarily due to lower scrapping revenues and lower consumer loan fees and interest income in Grupo Finmart. On a constant currency basis, total revenues were 3% lower year-over-year.
  • Net revenues for the quarter were $111.5 million, a 5% decrease from the prior-year quarter, reflecting an increase in bad debt reserves discussed below. On a constant currency basis, net revenues decreased 2%.
  • Operating expenses increased 19% on a constant currency basis (14% on a GAAP basis) reflecting costs associated with the prior-period restatements, restructuring, reversal of stock compensation costs in the prior-year quarter as a result of forfeitures, and store-level bonus programs during fiscal 2016 to better incentivize performance.
  • Annualized return on pawn earning assets (defined as average annual merchandise and scrap sales gross profit and pawn service charges (“PSC”) yield on pawn loans and inventory balances outstanding) increased to 151% in the current quarter versus 142% in the prior-year quarter.

OPERATING METRICS

U.S. Pawn 

  • Core pawn revenue increased 3% YOY driven by growth in PSC and merchandise sales.
  • We posted our first same store PLO growth since Q4FY14: up 0.5% YOY in the December 2015 quarter, an improvement from -6% YOY in the September 2015 quarter, and -11% YOY in the June 2015 quarter.
  • Quality loan growth continued with PLO increasing 4%.
  • Strong merchandise gross margin expansion to 40% from 34%.
  • Aged inventory reduction to 11% of total inventory from 16%.

Mexico Pawn 

  • Core pawn revenue increased 8% YOY on a constant currency basis (11% decrease on a GAAP basis), primarily driven by 22% growth in PSC revenue on a constant currency basis (1% increase on a GAAP basis).
  • Same store PLO increased 34% on a constant currency basis (14% increase on a GAAP basis), the sixth consecutive quarter with double-digit same store loan growth on a constant currency basis (same store YOY loan growth has both increased and decreased on a GAAP basis over the same periods).
  • Strong merchandise margin expansion to 35% from 31%.
  • Aged inventory reduction to 3% of total inventory from 16%.

Grupo Finmart 

  • Segment loss of $19.5 million on a constant currency basis ($16.9 million on a GAAP basis) compared to a segment loss of $8.2 million on a GAAP basis in the prior-year quarter. The increase in the segment loss was primarily attributable to an 87% increase on a constant currency basis (55% increase on a GAAP basis) in bad debt expense, driven predominately by industry-wide delays in payment timing.
  • We reserve for a loan at 100% of principal and accrued interest if no payment is received within a consecutive 180-day period. The bad debt expense included $2.1 million received in collections in the current quarter on loans that were fully reserved.
  • In response to the payment and collections challenges, we are refocusing our operations on higher quality, shorter term loans with the lowest risk convenios.
  • Operations expense increased 40% YOY on a constant currency basis (16% on a GAAP basis), driven by an increase in commissions and investments in the senior management team. We have initiated a cost reduction program to better align the expense structure with the revenue performance.
  • In light of the changing industry dynamics and business environment, we have initiated a review of all strategic options for Grupo Finmart, to be completed by the end of Q3FY16, with a view toward maximizing long-term shareholder value.

CONFERENCE CALL

EZCORP will host a conference call on Tuesday, February 9, 2016 at 7:30 a.m. Central Time to discuss our first quarter results. Analysts and institutional investors may participate on the conference call by dialing (888) 734-0328, Conference ID: 43999396, International dialing (678) 894-3054. The conference call will be webcast simultaneously to the public through this link: http://investors.ezcorp.com/. A replay of the conference call will be available online at http://investors.ezcorp.com/ shortly after the call.

ABOUT EZCORP

EZCORP is a leading provider of pawn loans in the United States and Mexico and consumer loans in Mexico. At our pawn stores, we also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers.

FORWARD LOOKING STATEMENTS

This announcement contains certain forward-looking statements regarding the company’s strategy, initiatives and expected performance. These statements are based on the company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the company’s strategy, initiatives and future performance, that address activities or results that the company plans, expects, believes, projects, estimates or anticipates will, should or may occur in the future, including future financial or operating results, are forward-looking statements. 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 operating risks, liquidity risks, legislative or regulatory developments, market factors or current or future litigation. 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. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

 

EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  Three Months Ended December 31,
  2015   2014
       
  (Unaudited)
  (in thousands, except per share amounts)
Revenues:      
Merchandise sales $ 108,584     $ 109,639  
Jewelry scrapping sales 9,621     18,534  
Pawn service charges 66,594     64,927  
Consumer loan fees and interest 13,188     18,971  
Other revenues 467     655  
Total revenues 198,454     212,726  
Merchandise cost of goods sold 66,259     72,478  
Jewelry scrapping cost of goods sold 8,076     14,675  
Consumer loan bad debt 12,603     8,515  
Net revenues 111,516     117,058  
Operating expenses:      
Operations 85,606     80,087  
Administrative 19,983     12,552  
Depreciation and amortization 8,059     8,008  
Loss on sale or disposal of assets 33     256  
Restructuring 1,692     22  
Total operating expenses 115,373     100,925  
Operating (loss) income (3,857 )   16,133  
Interest expense 9,192     12,034  
Interest income (140 )   (531 )
Equity in net income of unconsolidated affiliate (2,055 )   (2,194 )
Other expense 870     759  
(Loss) income from continuing operations before income taxes (11,724 )   6,065  
Income tax (benefit) expense (3,696 )   3,264  
(Loss) income from continuing operations, net of tax (8,028 )   2,801  
(Loss) income from discontinued operations, net of tax (238 )   6,877  
Net (loss) income (8,266 )   9,678  
Net loss from continuing operations attributable to redeemable noncontrolling interest (792 )   (1,934 )
Net (loss) income attributable to EZCORP, Inc. $ (7,474 )   $ 11,612  
       
Basic (loss) earnings per share attributable to EZCORP, Inc.:      
Continuing operations $ (0.13 )   $ 0.09  
Discontinued operations —     0.13  
Basic earnings (loss) per share $ (0.13 )   $ 0.22  
       
Diluted (loss) earnings per share attributable to EZCORP, Inc.:      
Continuing operations $ (0.13 )   $ 0.09  
Discontinued operations —     0.13  
Diluted (loss) earnings per share $ (0.13 )   $ 0.22  
       
Weighted-average shares outstanding:      
Basic 54,895     53,650  
Diluted 54,895     53,698  
       
Net (loss) income from continuing operations attributable to EZCORP, Inc. $ (7,236 )   $ 4,735  
Income from discontinued operations attributable to EZCORP, Inc. (238 )   6,877  
Net (loss) income attributable to EZCORP, Inc. $ (7,474 )   $ 11,612  
               

 

EZCORP, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
  December 31,
 2015		   December 31,
 2014		   September 30,
 2015
           
  (Unaudited)    
Assets:          
Current assets:          
Cash and cash equivalents $ 22,781     $ 77,599     $ 59,124  
Restricted cash 16,157     60,218     15,137  
Pawn loans 157,905     150,930     159,964  
Consumer loans, net 32,175     61,347     36,533  
Pawn service charges receivable, net 31,342     30,241     30,852  
Consumer loan fees and interest receivable, net 12,827     13,199     19,802  
Inventory, net 132,980     132,659     124,084  
Prepaid income taxes 5,929     36,580     7,945  
Income taxes receivable 35,131     16,243     37,230  
Prepaid expenses and other current assets 25,296     34,075     21,076  
Total current assets 472,523     613,091     511,747  
Investment in unconsolidated affiliate 53,404     99,219     56,182  
Property and equipment, net 69,963     104,353     75,594  
Restricted cash, non-current 2,667     4,310     2,883  
Goodwill 326,201     337,498     327,460  
Intangible assets, net 40,443     49,523     41,263  
Non-current consumer loans, net 71,502     78,362     75,824  
Deferred tax asset, net 73,655     28,189     69,121  
Other assets, net 35,482     77,352     42,985  
Total assets $ 1,145,840     $ 1,391,897     $ 1,203,059  
           
Liabilities, temporary equity and stockholders’ equity:          
Current liabilities:          
Current maturities of long-term debt $ 75,586     $ 74,832     $ 74,345  
Current capital lease obligations —     258     —  
Accounts payable and other accrued expenses 87,219     81,417     107,871  
Other current liabilities 6,470     6,000     15,384  
Customer layaway deposits 10,138     5,133     10,470  
Total current liabilities 179,413     167,640     208,070  
Long-term debt, less current maturities 281,545     374,600     297,166  
Deferred gains and other long-term liabilities 5,917     8,446     6,157  
Total liabilities 466,875     550,686     511,393  
Commitments and contingencies          
Temporary equity:          
Class A Non-voting Common Stock, subject to possible redemption at $10.06 per share; 1,168,456 shares issued and outstanding at redemption value as of December 31, 2015 and September 30, 2015; and none as of December 31, 2014 11,696     —     11,696  
Redeemable noncontrolling interest 2,379     18,550     3,235  
Total temporary equity 14,075     18,550     14,931  
Stockholders’ equity:          
Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 100 million as of December 31, 2015 and 2014 and September 30, 2015; issued and outstanding: 50,756,171 as of December 31, 2015; 50,680,358 as of December 31, 2014; and 50,726,289 as of September 30, 2015 508     506     507  
Class B Voting Common Stock, convertible, par value $.01 per share; 3 million shares authorized; issued and outstanding: 2,970,171 30     30     30  
Additional paid-in capital 309,562     329,443     307,080  
Retained earnings 415,663     521,198     423,137  
Accumulated other comprehensive loss (60,873 )   (28,516 )   (54,019 )
EZCORP, Inc. stockholders’ equity 664,890     822,661     676,735  
Total liabilities, temporary equity and stockholders’ equity $ 1,145,840     $ 1,391,897     $ 1,203,059  

 

EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
  Three Months Ended December 31,
  2015   2014
       
  (Unaudited)
  (in thousands)
Operating activities:      
Net (loss) income $ (8,266 )   $ 9,678  
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:      
Depreciation and amortization 8,090     9,030  
Amortization of debt discount and consumer loan premium, net 2,362     1,982  
Consumer loan loss provision 9,691     7,590  
Deferred income taxes (4,534 )   1,498  
Restructuring 1,692     —  
Amortization of deferred financing costs 833     1,633  
Amortization of prepaid commissions 4,023     3,013  
Other adjustments (1,966 )   (176 )
Loss on sale or disposal of assets 33     324  
Stock compensation expense (benefit) 833     (2,458 )
Income from investment in unconsolidated affiliate (2,055 )   (2,194 )
Changes in operating assets and liabilities:      
Service charges and fees receivable 6,381     (3,361 )
Inventory (2,107 )   509  
Prepaid expenses, other current assets and other assets (5,739 )   (7,824 )
Accounts payable and other accrued expenses and deferred gains and other long-term liabilities (12,707 )   (13,955 )
Customer layaway deposits (310 )   (2,895 )
Restricted cash 147     (933 )
Prepaid income taxes and income taxes receivable 4,074     3,903  
Payments of restructuring charges (4,943 )   (2,285 )
Dividends from unconsolidated affiliate —     2,407  
Net cash (used in) provided by operating activities (4,468 )   5,486  
Investing activities:      
Loans made (173,162 )   (223,748 )
Loans repaid 106,372     166,771  
Recovery of pawn loan principal through sale of forfeited collateral 58,566     69,886  
Additions to property and equipment (1,166 )   (8,954 )
Investment in unconsolidated affiliate —     (12,140 )
Proceeds from sale of assets 27     —  
Net cash used in investing activities (9,363 )   (8,185 )
Financing activities:      
Payout of deferred and contingent consideration (8,915 )   (6,000 )
Proceeds from settlement of forward currency contracts 3,557     2,313  
Change in restricted cash (1,261 )   (795 )
Proceeds from bank borrowings, net of debt issuance costs 14,302     66,560  
Payments on bank borrowings and capital lease obligations (29,358 )   (34,650 )
Net cash (used in) provided by financing activities (21,675 )   27,428  
Effect of exchange rate changes on cash and cash equivalents (837 )   (2,455 )
Net (decrease) increase in cash and cash equivalents (36,343 )   22,274  
Cash and cash equivalents at beginning of period 59,124     55,325  
Cash and cash equivalents at end of period $ 22,781     $ 77,599  
       
Non-cash investing activities:      
Pawn loans forfeited and transferred to inventory $ 65,629     $ 66,699  

 

EZCORP, Inc.
SELECTED OPERATING SEGMENT RESULTS (UNAUDITED)

 

U.S. Pawn

The following table presents selected summary financial data from continuing operations for the U.S. Pawn segment:

  Three Months Ended December 31,   Percentage
  2015   2014   Change
           
  (in thousands)    
Net revenues:          
Pawn service charges $ 58,621     $ 57,035     3   %
           
Merchandise sales 91,994     89,442     3   %
Merchandise sales gross profit 36,533     30,825     19   %
Gross margin on merchandise sales 40 %   34 %   18   %
           
Jewelry scrapping sales 9,600     17,007     (44 ) %
Jewelry scrapping sales gross profit 1,540     3,674     (58 ) %
Gross margin on jewelry scrapping sales 16 %   22 %   (27 ) %
           
Other revenues 193     184     5   %
Net revenues 96,887     91,718     6   %
           
Segment operating expenses:          
Operations 63,545     59,507     7   %
Depreciation and amortization 3,560     3,452     3   %
Segment operating contribution 29,782     28,759     4   %
           
Other segment expenses (income) 983     (8 )   *    
Segment contribution $ 28,799     $ 28,767     —   %
           
Other data:          
Net earning assets — continuing operations $ 258,798     $ 251,317     3   %
Inventory turnover — general merchandise 2.5       2.6     (4 ) %
Inventory turnover — jewelry 1.2       1.1     9   %
Average monthly ending pawn loan balance per store (a) $ 276     $ 274     1   %
Average annual yield on pawn loans outstanding 163 %   161 %   200   bps
Pawn loan redemption rate 83 %   83 %   0   bps

 

* Represents an increase or decrease in excess of 100% or not meaningful.
(a) Balance is calculated based upon the average of the monthly ending balance averages during the applicable period.

 

Mexico Pawn

The following table presents selected summary financial data from continuing operations for the Mexico Pawn segment, including constant currency results, after translation to U.S. dollars from its functional currency of the Mexican peso. See “Non-GAAP Financial Information” below.

  Three Months Ended December 31,   Percentage Change GAAP   Percentage Change Constant Currency
  2015   2015 Constant Currency (a)   2014    
                   
  (in USD thousands)        
Net revenues:                  
Pawn service charges $ 7,973     $ 9,636     $ 7,892     1 %   22 %
                   
Merchandise sales 16,586     20,046     19,580     (15 )%   2 %
Merchandise sales gross profit 5,788     6,996     6,096     (5 )%   15 %
Gross margin on merchandise sales 35 %   35 %   31 %   13 %   13 %
                   
Jewelry scrapping sales —     —     1,407     (100 )%   (100 )%
Jewelry scrapping sales gross profit —     —     146     (100 )%   (100 )%
Gross margin on jewelry scrapping sales   *       *     10 %   *     *  
                   
Other revenues 191     231     240     (20 )%   (4 )%
Net revenues 13,952     16,863     14,374     (3 )%   17 %
                   
Segment operating expenses:                  
Operations 11,193     13,528     10,520     6 %   29 %
Depreciation and amortization 801     968     1,244     (36 )%   (22 )%
Segment operating contribution 1,958     2,367     2,610     (25 )%   (9 )%
                   
Other segment expenses (b) 522     475     695     (25 )%   (32 )%
Segment contribution $ 1,436     $ 1,892     $ 1,915     (25 )%   (1 )%
                   
Other data:                  
Net earning assets — continuing operations $ 32,074     $ 37,747     $ 31,764     1 %   19 %
Inventory turnover 2.4     2.4     2.7     (11 )%   (11 )%
Average monthly ending pawn loan balance per store (c) $ 69     $ 81     $ 63     10 %   29 %
Average annual yield on pawn loans outstanding 195 %   194 %   199 %   -400 bps   -500 bps
Pawn loan redemption rate 78 %   78 %   77 %   100 bps   100 bps

 

* Represents an increase or decrease in excess of 100% or not meaningful.
(a) For income statement items, the average closing daily exchange rate for the applicable period was used. For balance sheet items, the end of the period rate for the applicable period end was used.
(b) The three-month period ended December 31, 2015 constant currency balance excludes $0.1 million of net foreign currency transaction losses resulting from movement in exchange rates. The net foreign currency transaction losses for the three-month period ended December 31, 2014 were $0.4 million and are not excluded from the above results.
(c) Balance is calculated based upon the average of the monthly ending balance averages during the applicable period.

 

Grupo Finmart

The table below presents selected summary financial data from continuing operations for the Grupo Finmart segment, including constant currency results, after translation to U.S. dollars from its functional currency of the Mexican peso. See “Non-GAAP Financial Information” below.

  Three Months Ended December 31,   Percentage Change GAAP   Percentage Change Constant Currency
  2015   2015 Constant Currency (a)   2014    
                   
  (in thousands)        
Revenues:                  
Consumer loan fees and interest $ 10,814     $ 13,070     $ 16,315     (34 )%   (20 )%
Other revenues 83     100     56     48 %   79 %
Total revenues 10,897     13,170     16,371     (33 )%   (20 )%
Consumer loan bad debt 11,991     14,493     7,740     55 %   87 %
Net revenues (1,094 )   (1,323 )   8,631     *     *  
                   
Segment expenses (income):                  
Operations 9,588     11,588     8,288     16 %   40 %
Depreciation and amortization 517     625     566     (9 )%   10 %
Interest expense 5,065     6,122     8,281     (39 )%   (26 )%
Interest income (131 )   (158 )   (481 )   (73 )%   (67 )%
Other expense (b) 768     —     174     *     (100 )%
Segment loss $ (16,901 )   $ (19,500 )   $ (8,197 )   *     *  
                   
Other data:                  
Net earning assets — continuing operations $ 101,519     $ 119,475     $ 115,186     (12 )%   4 %
Consumer loan originations (c) $ 15,970     $ 19,302     $ 21,897     (27 )%   (12 )%
Consumer loan bad debt as a percentage of gross average consumer loan balance (d) 12 %   12 %   6 %   100 %   100 %

 

* Represents an increase or decrease in excess of 100% or not meaningful.
(a) For income statement items, the average closing daily exchange rate for the applicable period was used. For balance sheet items, the end of the period rate for the applicable period end was used.
(b) The three-month period ended December 31, 2015 constant currency balance excludes a $0.8 million of net foreign currency transaction losses resulting from movement in exchange rates. The net foreign currency transaction losses for the three-month period ended December 31, 2014 were $0.2 million and are not excluded from the above results.
(c) Constant currency result is calculated as the average monthly consumer loan origination balance translated at the average closing daily exchange rate for the applicable period.
(d) Represents consumer loan bad debt expense during the applicable period as a percentage of the average monthly consumer loan balance during the applicable period. Constant currency consumer loan balance is calculated using the end of period rate for each month.

 

EZCORP, Inc.
STORE COUNT ACTIVITY

  Three Months Ended December 31, 2015
  Company-owned Stores    
  U.S. Pawn   Mexico Pawn   Grupo Finmart   Other International   Consolidated   Franchises
                       
As of September 30, 2015 522     237   * 53     27     839     1  
New locations opened —     1     —     —     1     —  
Locations sold, combined or closed (6 )   (1 )   (7 )   —     (14 )   —  
As of December 31, 2015 516     237     46     27     826     1  

 

* Includes five buy/sell stores.

 

  Three Months Ended December 31, 2014
  Company-owned Stores    
  U.S. Pawn   Mexico Pawn   Grupo Finmart   Other International   Consolidated   Franchises
                       
As of September 30, 2014 504     261     53     39     857     5  
New locations opened 5     1     —     —     6     —  
Locations sold, combined or closed —     —     —     —     —     (1 )
As of December 31, 2014 509     262     53     39     863     4  

 

NON-GAAP FINANCIAL INFORMATION

In addition to the financial information prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), we provide certain other non-GAAP financial information on a constant currency basis (“constant currency”). We use constant currency results to evaluate results of the Mexico Pawn and Grupo Finmart segment operations, which are denominated in Mexican pesos and believe that presentation of constant currency results is meaningful and useful in understanding the activities and business metrics of our Mexico Pawn and Grupo Finmart operations and reflect an additional way of viewing aspects of our business that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in Mexican pesos to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations. For condensed consolidated balance sheet items, the average Mexican peso to U.S. dollar exchange rate as of December 31, 2015 of 17.3 to 1 was used, compared to the end of period rate as of December 31, 2014 of 14.7 to 1. For condensed consolidated statement of operations items, the average closing daily exchange rate for the appropriate period was used. The average Mexican peso to U.S. dollar exchange rate for the current three-month period ended December 31, 2015 was 16.8 to 1 as compared to the prior year three-month period ended December 31, 2014 rate of 13.9 to 1. Constant currency results, where presented, also exclude foreign currency gain or loss and the related foreign currency derivative gain or loss impact.

The following information provides reconciliations of certain non-GAAP financial measures presented in this press release to the most directly comparable financial measures calculated and presented in accordance with GAAP.

Miscellaneous Non-GAAP Financial Measures

  Dollar Amount   Percentage Change YOY
       
  (in thousands)
Consolidated pawn loans outstanding $ 157,905     5 %
Currency exchange rate fluctuations 2,561      
Constant currency consolidated pawn loans outstanding $ 160,466     6 %
       
Same store consolidated pawn loans outstanding $ 151,393     2 %
Currency exchange rate fluctuations 2,532      
Constant currency same store consolidated pawn loans outstanding $ 153,925     3 %
       
Consolidated revenue $ 198,454     (7 )%
Currency exchange rate fluctuations 7,436      
Constant currency consolidated revenue $ 205,890     (3 )%
       
Consolidated net revenue $ 111,516     (5 )%
Currency exchange rate fluctuations 2,682      
Constant currency consolidated net revenue $ 114,198     (2 )%
       
Consolidated operating expenses $ 115,373     14 %
Currency exchange rate fluctuations 4,825      
Constant currency consolidated operating expenses $ 120,198     19 %
       
Mexico Pawn core pawn revenue $ 24,559     (11 )%
Currency exchange rate fluctuations 5,123      
Constant currency Mexico Pawn core pawn revenue $ 29,682     8 %
       
Mexico Pawn service charge revenue $ 7,973     1 %
Currency exchange rate fluctuations 1,663      
Constant currency Mexico Pawn core pawn revenue $ 9,636     22 %
       
Same store Mexico Pawn loans outstanding $ 14,324     14 %
Currency exchange rate fluctuations 2,532      
Constant currency same store Mexico Pawn loans outstanding $ 16,856     34 %
       
Grupo Finmart segment loss $ (16,901 )   (106 )%
Currency exchange rate fluctuations (2,599 )    
Constant currency Grupo Finmart segment loss $ (19,500 )   (138 )%
       
Grupo Finmart operations expenses $ 9,588     16 %
Currency exchange rate fluctuations 2,000      
Constant currency Grupo Finmart operations expenses $ 11,588     40 %

 

 
 
 
 
CONTACT: Contact:
Jeff Christensen
Vice President, Investor Relations
Email: [email protected]
Phone: (512) 437-3545