EZCorp (EZPW)

Risks

• Changes in, or failure to comply with, laws and regulations affecting our products and services could have a material adverse effect on our operations and financial performance.
• Negative characterizations of the pawn industry by consumer advocates, media or others could result in increased legislative or regulatory activity, could adversely affect the market value of our publicly traded stock, or could make it harder to operate our business successfully.
• A significant portion of our U.S. business is concentrated in Texas and Florida.
• A significant or sudden decrease in gold values or the volume of gold transactions may have a material impact on our earnings and financial position.
• Fluctuations in our sales, PLO, sales margins and pawn redemption rates could have a material adverse impact on our operating results.
• Achievement of our growth objectives is dependent upon our ability to open and acquire new stores.
• We continue to have limited indemnity obligations to AlphaCredit for pre-closing taxes.
• One person beneficially owns all of our voting stock and generally controls the outcome of all matters requiring a vote of stockholders, which may influence the value of our publicly traded non-voting stock.
• We have a significant firearms business in the U.S., which exposes us to increased risks of regulatory fines and penalties, lawsuits and related liabilities.
• Our business is subject to Team Member and third-party robberies, burglaries and other crimes at the store level.
• Changes in competition from various sources could have a material adverse impact on our ability to achieve our plans.
• Our continued profitability and growth plans are dependent on our ability to successfully design or acquire, deploy and maintain information technology and other business systems to support our current business and our planned growth and expansion.
• We may incur property, casualty or other losses, including losses related to natural disasters such as hurricanes, earthquakes and volcanoes. Not all such losses will be covered by insurance.
• Goodwill comprises a significant portion of our total assets. We assess goodwill for impairment at least annually, which could result in a material, non-cash write-down and could have a material adverse effect on our results of operations and financial conditions.
• The conversion feature of our convertible notes, if triggered, may adversely affect our financial condition and operating results.
• Conversion of our convertible notes into stock may dilute the ownership interests of existing stockholders or may otherwise depress the price of our Class A Common Stock.
• We have a limited number of unreserved shares available for future issuance, which may limit our ability to conduct future financings and other transactions and our ability to offer equity awards to management.
• Public health issues, including the continuing COVID-19 pandemic, could adversely affect our financial condition, results of operations or liquidity.
• We have significant operations in Latin America, and changes in the business, regulatory, political or social climate could impact our operations there, which could adversely affect our results of operations and growth plans.
• A significant change in foreign currency exchange rates could have a material adverse impact on our earnings and financial position.
• Litigation and regulatory proceedings could have a material adverse impact on our business.
• Our acquisitions, investments and other transactions could disrupt our ongoing business and harm our results of operations.
• We may be exposed to liabilities under applicable anti-bribery, anti-corruption, anti-money laundering and other general business laws and regulations, and any determination that we violated these laws or regulations could have a material adverse effect on our business.
• Changes in our liquidity and capital requirements or in access to capital markets or other financing and transactional banking sources could limit our ability to achieve our plans.
• We collect and store a variety of sensitive customer information, and breaches in data security or other cyber-attacks could harm our business operations and lead to reputational damage.
• We may face business interruptions or other adverse effects on our operations and growth.