EZCORP, Inc. (NASDAQ:EZPW) Q3 2023 Earnings Conference Call August 3, 2023 9:00 AM ET

Company Participants

Jeff Elliott - Investor Relations

Lachlan Given - Chief Executive Officer

Timothy Jugmans - Chief Financial Officer

Conference Call Participants

Brian McNamara - Canaccord Genuity

Andrew Chasanoff - Oppenheimer

Operator

Good morning, ladies and gentlemen and welcome to the EZCORP Third Quarter Fiscal 2023 Earnings Call. [Operator Instructions] As a reminder, this call may be recorded.

I would now like to turn the conference over to Jeff Elliott, Investor Relations with Three Part Advisors. Please go ahead, Jeff.

Jeff Elliott

Thank you and good morning, everyone. During our prepared remarks, we will be referring to slides which are available for viewing or download from our website, investors.ezcorp.com.

Before we begin, I'd like to remind everyone that this conference call, as well as the presentation slides contain certain forward-looking statements regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations. Actual results for future periods may differ materially from those expressed due to a number of risks or other factors that are discussed in our annual, quarterly and other reports filed with the Securities and Exchange Commission. As noted in our presentation materials and unless otherwise identified, results are presented on an adjusted basis to remove the effect of foreign currency fluctuations and other discrete items.

Joining us on the call today are EZCORP's Chief Executive Officer, Lachie Given; and Tim Jugmans, Chief Financial Officer. I'd now like to turn the call over to Lachie Given. Lachie?

Lachlan Given

Thank you, Tim and good morning, everyone. Our team's persistent pursuit of operational excellence in executing our current 3-year plan as again yielded strong financial results for our stakeholders. Pawn loans outstanding hit a new all-time record of $223.8 million, up 10% for the quarter and 7% on a same-store basis. Merchandise sales were up 12% for the quarter, 7% on a same-store basis. Total Q3 revenue hit a record $249.5 million, driven by higher PSC and sales volumes across all of our regions. Merchandise sales gross margins remained within our targeted range of 36% with strong inventory turns at 2.8x. Aged GM inventory was 1.6% of total GM inventory for the quarter, showing an improvement of 60 basis points over Q2.

Beginning on Slide 3. We are a global leader in pawn broking and pre-owned and recycled retail. We operate 1,212 stores in the U.S. and Latin America, having added another 13 stores this quarter. The macroeconomic environment continues to be a challenge for our customer base as consumers seek cash to satisfy their short-term needs as well as value for money secondhand products which also represent a more environmentally responsible way to shop. We strive to provide the best, most convenient experience for our consumers through continuous innovation, while positively impacting the environment and the communities in which we serve.