Record Pawn Loans Outstanding and Third Quarter Merchandise Sales Drive Strong Revenue and Earnings Growth

EZCORP, Inc. (NASDAQ:EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its third quarter ended June 30, 2023.

Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles ("GAAP") and comparisons shown are to the same period in the prior year.

THIRD QUARTER HIGHLIGHTS

Pawn loans outstanding (PLO) up 12% to $229.4 million.
Total revenue increased 19%, and gross profit increased 15%.
Merchandise sales gross margin remains within our targeted range at 36%.
Net income increased $6.0 million to $18.2 million.
Diluted earnings per share of $0.24, up from $0.17. On an adjusted basis¹, diluted earnings per share of $0.20, compared to $0.16.
Return on earning assets (ROEA) remains strong at 161%.

CEO COMMENTARY AND OUTLOOK

Lachie Given, Chief Executive Officer, stated, "As a result of our team's persistent pursuit of operational excellence, we achieved record PLO and third quarter revenue and merchandise sales, driving another quarter of robust operating results for our stakeholders.

"We grew our store footprint, opening 13 de novo stores during the quarter. Twelve of the new stores are in Latin America, with five in Mexico, taking our store count there to 540, and seven in Guatemala, expanding our market leadership there to 110 stores. In Las Vegas, we opened an additional Max Pawn luxury store, giving us three luxury pawn stores in that market.

"Our EZ+ Rewards loyalty program has grown to 3.3 million members, an 18% increase over the previous quarter. We continue to implement strategies to win and retain customers and drive customer engagement, enhancing their experience through targeted EZ+ marketing, moving payments online, and improving our retail showrooms. In the local communities we serve, we continue to provide a unique and essential service to our customers, focusing on meeting our customers' immediate cash needs with pawn loans and purchases, while providing outstanding value-for-money, offering a broad array of second-hand goods and a more sustainable way to shop.

"We delivered another strong quarter of operating and financial results through our commitment to People, Pawn, and Passion. Team recruitment, retention, rewards and recognition remain focal points, as we employ the most passionate, productive, and tenured team in the industry. Investing in our people and technology to grow our customer base and improve the customer experience continues to be a successful formula for us in driving excellent financial and operating results for our shareholders," Given concluded.

CONSOLIDATED RESULTS

Three Months Ended June 30	As Reported				Adjusted¹
in millions, except per share amounts	2023		2022		2023		2022

Total revenues	$	255.8	$	215.8	$	249.5	$	215.8
Gross profit	$	148.8	$	129.5	$	145.5	$	129.5
Income before tax	$	21.3	$	13.1	$	18.3	$	14.8
Net income	$	18.2	$	12.2	$	14.6	$	11.0
Diluted earnings per share	$	0.24	$	0.17	$	0.20	$	0.16
EBITDA (non-GAAP measure)	$	30.2	$	23.3	$	27.0	$	25.1

Diluted earnings per share of $0.24, up from $0.17. On an adjusted basis, diluted earnings per share of $0.20, up from $0.16.
Income before taxes was $21.3 million, up from $13.1 million, and adjusted EBITDA increased 8% to $27.0 million.
PLO increased 12% to $229.4 million, up $25.2 million. On a same-store basis², PLO increased 9% due to improved operational performance and continued strong loan demand.
Total revenues increased 19% and gross profit increased 15%, reflecting improved pawn service charge (PSC) revenue, merchandise sales and merchandise sales gross profit.
PSC increased 17% as a result of higher average PLO and yields.
Merchandise sales gross margin remains within our targeted range at 36%. Aged general merchandise was 1.6% of total general merchandise inventory. This is a 60 bps improvement over the second quarter.
Net inventory increased 17%, as expected with the growth in PLO. Inventory turnover remained strong at 2.8x.
Store expenses increased 17%, primarily due to increased labor in-line with store activity, higher store count and, to a lesser extent, expenses related to our loyalty program and rent. On a same-store basis, store expenses increased 12%. General and administrative expenses decreased 4%, primarily due to the litigation accrual charge of $2.0 million recorded in prior period partially offset by an increase in costs related to our Workday implementation.
Cash and cash equivalents at the end of the quarter was $238.0 million, up 7% year-over-year. The increase was primarily due to cash inflows provided by operating activities and the net cash proceeds associated with the convertible debt refinancing offset by the increase in PLO and inventory, the acquisition of new stores, and strategic investments.

SEGMENT RESULTS

U.S. Pawn

PLO ended the quarter at $178.9 million, up 12% or 9% on a same store basis.
Total revenue was up 16% and gross profit increased 12%, reflecting increased PSC and higher merchandise sales.
PSC increased 16% as a result of higher average PLO.
Merchandise sales gross margin decreased to 39% from 41%, within our target range. Aged general merchandise was 1.0% of total general merchandise inventory. This is a 40 bps improvement over the second quarter.
Net inventory increased 13%, as expected with the growth in PLO. Inventory turnover increased to 2.6x from 2.5x.
Store expenses increased 14%, primarily due to increased labor in-line with store activity, higher store count and, to a lesser extent, expenses related to our loyalty program.
Segment contribution increased 9% to $32.3 million.
Segment store count increased by 1 de novo store during the quarter.

Latin America Pawn

PLO improved to $50.5 million, up 14% (1% on constant currency basis). On a same store basis, PLO increased 11% (decreased 2% on a constant currency basis). PLO balance was lower than expected with a greater pay down during the quarter driven by a change in Mexican law, which significantly increased profit share required to be paid by companies to employees by May 30.
Total revenue was up 26% (15% on constant currency basis) and gross profit increased 24% (14% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved merchandise sales gross profit.
PSC increased 19% (10% on a constant currency basis) as a result of higher average PLO and yield.
Merchandise sales gross margin increased from 29% to 30%. Aged general merchandise increased to 2.4% from 1.3% of total merchandise inventory. This is a 80 bps improvement over the second quarter.
Net inventory increased 30% (13% on a constant currency basis), as expected with the growth in PLO. Inventory turnover remained strong at 3.4x, down from 3.7x.
Store expenses increased 26% (14% on a constant currency basis), primarily due to rent linked to inflation, higher store count and, to a lesser extent, expenses related to our loyalty program. Same-store expenses increased 21% (9% on a constant currency basis).
Segment contribution increased 59% (48% on a constant currency basis) to $9.7 million. On an adjusted basis, segment contribution was up 12% to $6.7 million, with the primary adjustment being the reversal of contingent consideration liability in connection with a previously completed acquisition.
Segment store count increased by 12 de novo stores during the quarter.

FORM 10-Q

EZCORP's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company's website at http://investors.ezcorp.com.

CONFERENCE CALL

EZCORP will host a conference call on Thursday, August 3, 2023, at 8:00 am Central Time to discuss Third Quarter Fiscal 2023 results. Analysts and institutional investors may participate on the conference call by dialing (833) 470-1428, Conference ID: 870985, or internationally by dialing (404) 975-4839. 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 end of the call.

ABOUT EZCORP

Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell merchandise, primarily collateral forfeited from pawn lending operations and pre-owned and recycled merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index.

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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, current or future litigation and risks associated with the COVID-19 pandemic. 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.

Note: Percentages are calculated from the underlying numbers in thousands and, as a result, may not agree to the percentages calculated from numbers in millions.

¹"Adjusted" basis, which is a non-GAAP measure, excludes certain items. "Constant currency" basis, which is a non-GAAP measure, excludes the impact of foreign currency exchange rate fluctuations. "Free cash flow", which is a non-GAAP measure, includes certain adjustments to cash flow from operating activities. For additional information about these calculations, as well as a reconciliation to the most comparable GAAP financial measures, see "Non-GAAP Financial Information" at the end of this release.

²"Same Store" basis, which is a financial measure, includes stores open the entirety of the comparable periods.

EZCORP, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended June 30,						Nine Months Ended June 30,
(in thousands, except per share amounts)		2023			2022			2023			2022
Revenues:
Merchandise sales	$	147,980		$	128,334		$	464,274		$	399,610
Jewelry scrapping sales		13,931			7,168			34,640			19,802
Pawn service charges		93,819			80,291			279,442			232,999
Other revenues, net		82			49			206			407
Total revenues		255,812			215,842			778,562			652,818
Merchandise cost of goods sold		95,069			80,167			297,285			245,524
Jewelry scrapping cost of goods sold		11,958			6,167			30,813			16,747
Gross profit		148,785			129,508			450,464			390,547
Operating expenses:
Store expenses		104,932			89,430			307,004			261,944
General and administrative		17,876			18,715			48,961			46,487
Depreciation and amortization		8,026			7,746			23,977			22,770
(Gain) loss on sale or disposal of assets		(29	)		—			28			(692	)
Other		(2,632	)		—			(5,097	)		—
Total operating expenses		128,173			115,891			374,873			330,509
Operating income		20,612			13,617			75,591			60,038
Interest expense		3,414			2,693			12,994			7,651
Interest income		(2,584	)		(190	)		(5,146	)		(749	)
Equity in net (income) loss of unconsolidated affiliates		(1,523	)		(1,758	)		29,394			(1,457	)
Other (income) expense		(5	)		(210	)		(159	)		41
Income before income taxes		21,310			13,082			38,508			54,552
Income tax expense		3,088			867			10,298			11,729
Net income	$	18,222		$	12,215		$	28,210		$	42,823

Basic earnings per share	$	0.33		$	0.22		$	0.51		$	0.76
Diluted earnings per share	$	0.24		$	0.17		$	0.38		$	0.59

Weighted-average basic shares outstanding		55,367			56,656			55,776			56,465
Weighted-average diluted shares outstanding		86,825			82,504			79,559			82,349

EZCORP, Inc.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

(in thousands, except share and per share amounts)	June 30, 2023			June 30, 2022			September 30, 2022

Assets:
Current assets:
Cash and cash equivalents	$	237,974		$	222,342		$	206,028
Restricted cash		8,549			8,614			8,341
Pawn loans		229,379			204,155			210,009
Pawn service charges receivable, net		34,959			32,000			33,476
Inventory, net		154,944			132,713			151,615
Prepaid expenses and other current assets		44,925			29,822			34,694
Total current assets		710,730			629,646			644,163
Investments in unconsolidated affiliates		10,247			43,384			37,733
Other investments		39,220			18,000			24,220
Property and equipment, net		61,849			51,505			56,725
Right-of-use asset, net		243,100			217,506			221,405
Goodwill		302,120			286,798			286,828
Intangible assets, net		60,009			61,017			56,819
Notes receivable, net		—			1,207			1,215
Deferred tax asset, net		19,610			15,773			12,145
Other assets		10,793			5,991			6,625
Total assets	$	1,457,678		$	1,330,827		$	1,347,878

Liabilities and equity:
Current liabilities:
Accounts payable, accrued expenses and other current liabilities	$	74,458		$	76,566		$	84,509
Customer layaway deposits		18,595			14,927			16,023
Operating lease liabilities, current		56,919			53,358			52,334
Total current liabilities		149,972			144,851			152,866
Long-term debt, net		359,686			312,521			312,903
Deferred tax liability, net		349			307			373
Operating lease liabilities		197,499			175,489			180,756
Other long-term liabilities		11,130			11,905			8,749
Total liabilities		718,636			645,073			655,647
Commitments and Contingencies
Stockholders' equity:
Class A Non-voting Common Stock, par value $0.01per share; shares authorized: 100 million; issued and outstanding: 52,214,761 as of June 30, 2023; 53,685,333 as of June 30, 2022; and 53,454,885 as of September 30, 2022		522			537			534
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171		30			30			30
Additional paid-in capital		344,857			343,763			345,330
Retained earnings		422,549			396,461			402,006
Accumulated other comprehensive loss		(28,916	)		(55,037	)		(55,669	)
Total equity		739,042			685,754			692,231
Total liabilities and equity	$	1,457,678		$	1,330,827		$	1,347,878

EZCORP, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Nine Months Ended June 30,
(in thousands)		2023			2022

Operating activities:
Net income	$	28,210		$	42,823
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		23,977			22,770
Amortization of debt discount and deferred financing costs		1,135			1,051
Non-cash lease expense		41,752			39,061
Deferred income taxes		(7,489	)		475
Other adjustments		(4,894	)		(734	)
Provision for inventory reserve		(160	)		(2,096	)
Stock compensation expense		6,876			4,008
Equity in net loss of unconsolidated affiliates		29,394			(1,457	)
Net loss on extinguishment of debt		3,545			—
Changes in operating assets and liabilities, net of acquisitions:
Service charges and fees receivable		(316	)		(2,949	)
Inventory		(5,501	)		(7,837	)
Prepaid expenses, other current assets and other assets		(2,750	)		2,025
Accounts payable, accrued expenses and other liabilities		(53,018	)		(53,209	)
Customer layaway deposits		1,036			2,265
Income taxes		8,923			(1,068	)
Dividends from unconsolidated affiliates		3,589			3,366
Net cash provided by operating activities		74,309			48,494
Investing activities:
Loans made		(592,689	)		(524,965	)
Loans repaid		343,886			295,823
Recovery of pawn loan principal through sale of forfeited collateral		251,608			191,082
Capital expenditures, net		(27,751	)		(18,100	)
Acquisitions, net of cash acquired		(12,968	)		(1,850	)
Issuance of notes receivable		(15,500	)		(1,000	)
Investment in unconsolidated affiliates		(2,133	)		(6,079	)
Investment in other investments		(15,000	)		(16,500	)
Net cash used in investing activities		(70,547	)		(81,589	)
Financing activities:
Taxes paid related to net share settlement of equity awards		(1,149	)		(792	)
Proceeds from issuance of debt		230,000			—
Debt issuance cost		(7,458	)		—
Cash paid on extinguishment of debt		(1,951	)		—
Payments on debt		(178,488	)		—
Repurchase of common stock		(13,982	)		—
Net cash provided by (used in) financing activities		26,972			(792	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		1,420			1,219
Net increase (decrease) in cash, cash equivalents and restricted cash		32,154			(32,668	)
Cash, cash equivalents and restricted cash at beginning of period		214,369			263,624
Cash, cash equivalents and restricted cash at end of period	$	246,523		$	230,956

EZCORP, Inc.
OPERATING SEGMENT RESULTS

	Three Months Ended June 30, 2023 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	102,177		$	45,803		$	—		$	147,980		$	—		$	147,980
Jewelry scrapping sales		13,098			833			—			13,931			—			13,931
Pawn service charges		68,790			25,029			—			93,819			—			93,819
Other revenues		27			40			15			82			—			82
Total revenues		184,092			71,705			15			255,812			—			255,812
Merchandise cost of goods sold		62,799			32,270			—			95,069			—			95,069
Jewelry scrapping cost of goods sold		11,101			857			—			11,958			—			11,958
Gross profit		110,192			38,578			15			148,785			—			148,785
Segment and corporate expenses (income):
Store expenses		75,389			29,543			—			104,932			—			104,932
General and administrative		—			—			—			—			17,876			17,876
Depreciation and amortization		2,505			2,303			—			4,808			3,218			8,026
Gain on sale or disposal of assets		—			(29	)		—			(29	)		—			(29	)
Other		—			(2,632	)		—			(2,632	)		—			(2,632	)
Interest expense		—			—			—			—			3,414			3,414
Interest income		(1	)		(256	)		—			(257	)		(2,327	)		(2,584	)
Equity in net income of unconsolidated affiliates		—			—			(1,523	)		(1,523	)		—			(1,523	)
Other (income) expense		—			(65	)		10			(55	)		50			(5	)
Segment contribution	$	32,299		$	9,714		$	1,528		$	43,541
Income (loss) before income taxes										$	43,541		$	(22,231	)	$	21,310

	Three Months Ended June 30, 2022 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	94,005		$	34,329		$	—		$	128,334		$	—		$	128,334
Jewelry scrapping sales		5,404			1,764			—			7,168			—			7,168
Pawn service charges		59,322			20,969			—			80,291			—			80,291
Other revenues		21			7			21			49			—			49
Total revenues		158,752			57,069			21			215,842			—			215,842
Merchandise cost of goods sold		55,885			24,282			—			80,167			—			80,167
Jewelry scrapping cost of goods sold		4,506			1,661			—			6,167			—			6,167
Gross profit		98,361			31,126			21			129,508			—			129,508
Segment and corporate expenses (income):
Store expenses		66,036			23,394			—			89,430			—			89,430
General and administrative		—			—			—			—			18,715			18,715
Depreciation and amortization		2,572			1,987			—			4,559			3,187			7,746
Interest expense		—			—			—			—			2,693			2,693
Interest income		(1	)		(189	)		—			(190	)		—			(190	)
Equity in net income of unconsolidated affiliates		—			—			(1,758	)		(1,758	)		—			(1,758	)
Other (income) expense		—			(163	)		19			(144	)		(66	)		(210	)
Segment contribution	$	29,754		$	6,097		$	1,760		$	37,611
Income (loss) before income taxes										$	37,611		$	(24,529	)	$	13,082

	Nine Months Ended June 30, 2023 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	329,231		$	135,043		$	—		$	464,274		$	—		$	464,274
Jewelry scrapping sales		30,088			4,552			—			34,640			—			34,640
Pawn service charges		208,045			71,397			—			279,442			—			279,442
Other revenues		84			75			47			206			—			206
Total revenues		567,448			211,067			47			778,562			—			778,562
Merchandise cost of goods sold		203,698			93,587			—			297,285			—			297,285
Jewelry scrapping cost of goods sold		25,867			4,946			—			30,813			—			30,813
Gross profit		337,883			112,534			47			450,464			—			450,464
Segment and corporate expenses (income):
Store expenses		220,639			86,365			—			307,004			—			307,004
General and administrative		—			(3	)		—			(3	)		48,964			48,961
Depreciation and amortization		7,820			6,850			—			14,670			9,307			23,977
Loss (gain) on sale or disposal of assets		84			(56	)		—			28			—			28
Other charges		—			(5,097	)		—			(5,097	)		—			(5,097	)
Interest expense		—			—			—			—			12,994			12,994
Interest income		(2	)		(723	)		—			(725	)		(4,421	)		(5,146	)
Equity in net loss of unconsolidated affiliates		—			—			29,394			29,394			—			29,394
Other (income) expense		—			(41	)		20			(21	)		(138	)		(159	)
Segment contribution (loss)	$	109,342		$	25,239		$	(29,367	)	$	105,214
Income (loss) before income taxes										$	105,214		$	(66,706	)	$	38,508

	Nine Months Ended June 30, 2022 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	296,147		$	103,463		$	—		$	399,610		$	—		$	399,610
Jewelry scrapping sales		13,864			5,938			—			19,802			—			19,802
Pawn service charges		174,651			58,348			—			232,999			—			232,999
Other revenues		67			247			93			407			—			407
Total revenues		484,729			167,996			93			652,818			—			652,818
Merchandise cost of goods sold		172,330			73,194			—			245,524			—			245,524
Jewelry scrapping cost of goods sold		11,279			5,468			—			16,747			—			16,747
Gross profit		301,120			89,334			93			390,547			—			390,547
Segment and corporate expenses (income):
Store expenses		195,217			66,727			—			261,944			—			261,944
General and administrative		—			—			—			—			46,487			46,487
Depreciation and amortization		7,867			5,858			—			13,725			9,045			22,770
Gain on sale or disposal of assets and other		—			(4	)		—			(4	)		(688	)		(692	)
Interest expense		—			—			—			—			7,651			7,651
Interest income		(1	)		(626	)		—			(627	)		(122	)		(749	)
Equity in net income of unconsolidated affiliates		—			—			(1,457	)		(1,457	)		—			(1,457	)
Other expense (income)		—			37			15			52			(11	)		41
Segment contribution	$	98,037		$	17,342		$	1,535		$	116,914
Income (loss) before income taxes										$	116,914		$	(62,362	)	$	54,552

EZCORP, Inc.
STORE COUNT ACTIVITY
(Unaudited)

	Three Months Ended June 30, 2023
	U.S. Pawn	Latin America Pawn	Consolidated

As of March 31, 2023	527	672	1,199
New locations opened	1	12	13
As of June 30, 2023	528	684	1,212

	Three Months Ended June 30, 2022
	U.S. Pawn	Latin America Pawn	Consolidated

As of March 31, 2022	516	636	1,152
New locations opened	—	8	8
Locations acquired	3	—	3
As of June 30, 2022	519	644	1,163

	Nine Months Ended June 30, 2023
	U.S. Pawn	Latin America Pawn		Consolidated

As of September 30, 2022	515	660		1,175
New locations opened	3	25		28
Locations acquired	10	—		10
Locations sold, combined or closed	—	(1	)	(1	)
As of June 30, 2023	528	684		1,212

	Nine Months Ended June 30, 2022
	U.S. Pawn	Latin America Pawn	Consolidated

As of September 30, 2021	516	632	1,148
New locations opened	—	12	12
Locations acquired	3	—	3
As of June 30, 2022	519	644	1,163

Non-GAAP Financial Information (Unaudited)

In addition to the financial information prepared in conformity with accounting principles generally accepted in the United States ("GAAP"), we provide certain other non-GAAP financial information on a constant currency ("constant currency") and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflect an additional way of viewing aspects of our business that, when viewed with 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. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

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 local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three and nine months ended June 30, 2023 and 2022 were as follows:

	June 30,		Three Months Ended June 30,		Nine Months Ended June 30,
	2023	2022	2023	2022	2023	2022

Mexican peso	17.1	20.2	17.7	20.0	18.7	20.4
Guatemalan quetzal	7.7	7.6	7.6	7.5	7.6	7.5
Honduran lempira	24.4	24.2	24.3	24.2	24.3	24.1
Australian dollar	1.5	1.5	1.5	1.4	1.5	1.4

Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

Miscellaneous Non-GAAP Financial Measures

	Three Months Ended June 30,
(in millions)		2023			2022

Net income	$	18.2		$	12.2
Interest expense		3.4			2.7
Interest income		(2.6	)		(0.2	)
Income tax expense		3.1			0.9
Depreciation and amortization		8.0			7.7
EBITDA	$	30.2		$	23.3

	Total Revenues			Gross Profit			Income Before Tax			Tax Effect			Net Income			Diluted EPS			EBITDA

2023 Q3 Reported	$	255.8		$	148.8		$	21.3		$	3.1		$	18.2		$	0.24		$	30.2
Contingent consideration liability		—			—			(2.6	)		(0.5	)		(2.1	)		(0.02	)		(2.6	)
Tax Impact		—			—			—			1.0			(1.0	)		(0.01	)		—
Constant currency impact		(6.3	)		(3.3	)		(0.4	)		0.1			(0.5	)		(0.01	)		(0.6	)
2023 Q3 Adjusted	$	249.5		$	145.5		$	18.3		$	3.7		$	14.6		$	0.20		$	27.0

	Total Revenues			Gross Profit			Income Before Tax			Tax Effect			Net Income			Diluted EPS			EBITDA

2022 Q3 Reported	$	215.8		$	129.5		$	13.1		$	0.9		$	12.2		$	0.17		$	23.3
Litigation accrual		—			—			2.0			0.1			1.9			0.02			2.0
Release of FIN 48 reserves		—			—			—			2.8			(2.8	)		(0.03	)		—
FX impact		—			—			(0.3	)		—			(0.3	)		—			(0.2	)
2022 Q3 Adjusted	$	215.8		$	129.5		$	14.8		$	3.8		$	11.0		$	0.16		$	25.1

	Three Months Ended June 30, 2023					Nine Months Ended June 30, 2023
(in millions)	U.S. Dollar Amount			Percentage Change YOY		U.S. Dollar Amount			Percentage Change YOY

Consolidated revenue	$	255.8		19	%	$	778.6		19	%
Currency exchange rate fluctuations		(6.3	)				(13.7	)
Constant currency consolidated revenue	$	249.5		16	%	$	764.9		17	%

Consolidated gross profit	$	148.8		15	%	$	450.5		15	%
Currency exchange rate fluctuations		(3.3	)				(7.0	)
Constant currency consolidated gross profit	$	145.5		12	%	$	443.5		14	%

Consolidated net inventory	$	154.9		17	%	$	154.9		17	%
Currency exchange rate fluctuations		(5.0	)				(5.0	)
Constant currency consolidated net inventory	$	149.9		13	%	$	149.9		13	%

Latin America Pawn gross profit	$	38.6		24	%	$	112.5		26	%
Currency exchange rate fluctuations		(3.2	)				(7.0	)
Constant currency Latin America Pawn gross profit	$	35.4		14	%	$	105.5		18	%

Latin America Pawn PLO	$	50.5		13	%	$	50.5		13	%
Currency exchange rate fluctuations		(5.5	)				(5.5	)
Constant currency Latin America Pawn PLO	$	45.0		1	%	$	45.0		1	%

Latin America Pawn PSC revenues	$	25.0		19	%	$	71.4		22	%
Currency exchange rate fluctuations		(2.0	)				(4.3	)
Constant currency Latin America Pawn PSC revenues	$	23.0		10	%	$	67.1		15	%

Latin America Pawn merchandise sales	$	45.8		33	%	$	135.0		31	%
Currency exchange rate fluctuations		(4.2	)				(9.1	)
Constant currency Latin America Pawn merchandise sales	$	41.6		21	%	$	125.9		22	%

Latin America Pawn segment profit before tax	$	9.7		59	%	$	25.2		46	%
Currency exchange rate fluctuations		(0.4	)				(0.9	)
Constant currency Latin America Pawn segment profit before tax	$	9.3		53	%	$	24.4		39	%

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