Cover Page
Cover Page - shares | 9 Months Ended | |
Jun. 30, 2019 | Jul. 22, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-19424 | |
Entity Registrant Name | EZCORP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-2540145 | |
Entity Address, Address Line One | 2500 Bee Cave Road | |
Entity Address, Address Line Two | Bldg One | |
Entity Address, Address Line Three | Suite 200 | |
Entity Address, City or Town | Rollingwood | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78746 | |
City Area Code | 512 | |
Local Phone Number | 314-3400 | |
Title of 12(b) Security | Class A Non-voting Common Stock, par value $.01 per share | |
Trading Symbol | EZPW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0000876523 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Common Stock Class A Non-voting | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (shares) | 52,475,070 | |
Common Stock Class B Voting | ||
Document Information [Line Items] | ||
No Trading Symbol Flag | ||
Entity Common Stock, Shares Outstanding (shares) | 2,970,171 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 138,922 | $ 285,311 | $ 284,493 |
Pawn loans | 190,299 | 198,463 | 183,054 |
Pawn service charges receivable, net | 29,847 | 30,959 | 26,439 |
Inventory, net | 175,802 | 166,997 | 151,145 |
Notes receivable, net | 16,166 | 34,199 | 37,906 |
Prepaid expenses and other current assets | 37,365 | 33,456 | 43,708 |
Total current assets | 588,401 | 749,385 | 726,745 |
Investments in unconsolidated affiliates | 30,922 | 49,500 | 61,056 |
Property and equipment, net | 66,214 | 73,649 | 71,587 |
Goodwill | 300,700 | 299,248 | 294,335 |
Intangible assets, net | 63,646 | 54,923 | 59,678 |
Notes receivable, net | 10,912 | 3,226 | 13,432 |
Deferred tax asset, net | 3,956 | 7,986 | 6,146 |
Other assets | 4,472 | 3,863 | 3,575 |
Total assets | 1,069,223 | 1,241,780 | 1,236,554 |
Current liabilities: | |||
Current maturities of long-term debt, net | 215 | 190,181 | 195,796 |
Accounts payable, accrued expenses and other current liabilities | 59,981 | 57,958 | 61,595 |
Customer layaway deposits | 12,750 | 11,824 | 11,938 |
Total current liabilities | 72,946 | 259,963 | 269,329 |
Long-term debt, net | 235,449 | 226,702 | 222,897 |
Deferred tax liability, net | 7,522 | 8,817 | 4,285 |
Other long-term liabilities | 5,990 | 6,890 | 7,458 |
Total liabilities | 321,907 | 502,372 | 503,969 |
Commitments and contingencies (Note 8) | |||
Stockholders’ equity: | |||
Additional paid-in capital | 404,880 | 397,927 | 395,428 |
Retained earnings | 389,808 | 386,622 | 388,014 |
Accumulated other comprehensive loss | (47,926) | (42,356) | (47,712) |
EZCORP, Inc. stockholders’ equity | 747,316 | 742,739 | 736,275 |
Noncontrolling interest | 0 | (3,331) | (3,690) |
Total equity | 747,316 | 739,408 | 732,585 |
Total liabilities and equity | 1,069,223 | 1,241,780 | 1,236,554 |
Common Stock Class A Non-voting | |||
Stockholders’ equity: | |||
Common stock | 524 | 516 | 515 |
Common Stock Class B Voting | |||
Stockholders’ equity: | |||
Common stock | $ 30 | $ 30 | $ 30 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Common Stock Class A Non-voting | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01000 |
Common stock, shares authorized (shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (shares) | 52,475,070 | 51,614,746 | 51,494,246 |
Common stock, shares outstanding (shares) | 52,475,070 | 51,614,746 | 51,494,246 |
Common Stock Class B Voting | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01000 |
Common stock, shares authorized (shares) | 3,000,000 | 3,000,000 | 3,000,000 |
Common stock, shares issued (shares) | 2,970,171 | 2,970,171 | 2,970,171 |
Common stock, shares outstanding (shares) | 2,970,171 | 2,970,171 | 2,970,171 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 202,465 | $ 199,612 | $ 632,890 | $ 606,180 |
Net revenues | 115,853 | 114,742 | 373,592 | 357,088 |
Operating expenses: | ||||
Operations | 84,727 | 82,932 | 261,756 | 248,758 |
Administrative | 15,053 | 13,268 | 46,795 | 39,688 |
Depreciation and amortization | 7,254 | 6,124 | 21,114 | 18,298 |
Loss on sale or disposal of assets and other | 24 | 314 | 3,643 | 453 |
Total operating expenses | 107,058 | 102,638 | 333,308 | 307,197 |
Operating income | 8,795 | 12,104 | 40,284 | 49,891 |
Interest expense | 9,832 | 7,394 | 27,212 | 19,070 |
Interest income | (3,172) | (4,358) | (9,637) | (12,896) |
Equity in net income of unconsolidated affiliates | (1,320) | (1,151) | (632) | (3,477) |
Impairment of investment in unconsolidated affiliates | 0 | 0 | 19,725 | 0 |
Other income | (4) | (5,287) | (121) | (5,473) |
Income from continuing operations before income taxes | 3,459 | 15,506 | 3,737 | 52,667 |
Income tax expense | 98 | 1,502 | 1,377 | 14,710 |
Income from continuing operations, net of tax | 3,361 | 14,004 | 2,360 | 37,957 |
(Loss) income from discontinued operations, net of tax | (203) | 91 | (404) | (631) |
Net income | 3,158 | 14,095 | 1,956 | 37,326 |
Net loss attributable to noncontrolling interest | 0 | (359) | (1,230) | (1,348) |
Net income attributable to EZCORP, Inc. | $ 3,158 | $ 14,454 | $ 3,186 | $ 38,674 |
Basic earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share) | $ 0.06 | $ 0.26 | $ 0.06 | $ 0.72 |
Diluted earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share) | $ 0.06 | $ 0.25 | $ 0.06 | $ 0.69 |
Weighted-average basic shares outstanding (shares) | 55,445 | 54,464 | 55,306 | 54,453 |
Weighted-average diluted shares outstanding (shares) | 55,487 | 57,954 | 55,327 | 57,080 |
Merchandise | ||||
Revenues: | ||||
Total revenues | $ 103,902 | $ 104,737 | $ 346,186 | $ 333,270 |
Cost of revenues | 70,271 | 66,896 | 225,183 | 210,283 |
Jewelry scrapping | ||||
Revenues: | ||||
Total revenues | 18,212 | 20,428 | 37,873 | 44,166 |
Cost of revenues | 15,765 | 17,625 | 32,648 | 37,536 |
Pawn service | ||||
Revenues: | ||||
Total revenues | 78,980 | 72,544 | 244,298 | 222,597 |
Other | ||||
Revenues: | ||||
Total revenues | 1,371 | 1,903 | 4,533 | 6,147 |
Cost of revenues | $ 576 | $ 349 | $ 1,467 | $ 1,273 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,158 | $ 14,095 | $ 1,956 | $ 37,326 |
Other comprehensive gain (loss): | ||||
Foreign currency translation gain (loss), net of income tax expense (benefit) for our investment in unconsolidated affiliate of $45 and ($470) for the three and nine months ended June 30, 2019 respectively, and ($135) and $76 for the three and nine months ended June 30, 2018, respectively. | 2,024 | (7,464) | (5,570) | (7,993) |
Comprehensive income | 5,182 | 6,631 | (3,614) | 29,333 |
Comprehensive loss attributable to noncontrolling interest | 0 | (358) | (1,230) | (1,241) |
Comprehensive income attributable to EZCORP, Inc. | $ 5,182 | $ 6,989 | $ (2,384) | $ 30,574 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax | $ 45 | $ (135) | $ (470) | $ 76 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest |
Beginning balance (shares) at Sep. 30, 2017 | 54,398 | |||||
Beginning Balance at Sep. 30, 2017 | $ 656,355 | $ 544 | $ 348,532 | $ 347,885 | $ (38,157) | $ (2,449) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock compensation | 2,889 | 2,889 | ||||
Release of restricted stock (shares) | 66 | |||||
Release of restricted stock | 1 | $ 1 | ||||
Taxes paid related to net share settlement of equity awards | (311) | (311) | ||||
Foreign currency translation (loss) gain | (6,474) | (6,434) | (40) | |||
Net income (loss) | 12,024 | 12,639 | (615) | |||
Ending balance (shares) at Dec. 31, 2017 | 54,464 | |||||
Ending Balance at Dec. 31, 2017 | 664,484 | $ 545 | 351,110 | 360,524 | (44,591) | (3,104) |
Beginning balance (shares) at Sep. 30, 2017 | 54,398 | |||||
Beginning Balance at Sep. 30, 2017 | 656,355 | $ 544 | 348,532 | 347,885 | (38,157) | (2,449) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 37,326 | |||||
Ending balance (shares) at Jun. 30, 2018 | 54,464 | |||||
Ending Balance at Jun. 30, 2018 | 732,585 | $ 545 | 395,428 | 388,014 | (47,712) | (3,690) |
Beginning balance (shares) at Dec. 31, 2017 | 54,464 | |||||
Beginning Balance at Dec. 31, 2017 | 664,484 | $ 545 | 351,110 | 360,524 | (44,591) | (3,104) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock compensation | 2,588 | 2,588 | ||||
Reclassification of stranded tax effects resulting from the Tax Cuts and Jobs Act | 0 | 1,455 | (1,455) | |||
Foreign currency translation (loss) gain | 5,945 | 5,799 | 146 | |||
Net income (loss) | 11,207 | 11,581 | (374) | |||
Ending balance (shares) at Mar. 31, 2018 | 54,464 | |||||
Ending Balance at Mar. 31, 2018 | 684,224 | $ 545 | 353,698 | 373,560 | (40,247) | (3,332) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock compensation | 2,673 | 2,673 | ||||
Foreign currency translation (loss) gain | (7,464) | (7,465) | 1 | |||
Equity portion of convertible notes | 39,057 | 39,057 | ||||
Net income (loss) | 14,095 | 14,454 | (359) | |||
Ending balance (shares) at Jun. 30, 2018 | 54,464 | |||||
Ending Balance at Jun. 30, 2018 | 732,585 | $ 545 | 395,428 | 388,014 | (47,712) | (3,690) |
Beginning balance (shares) at Sep. 30, 2018 | 54,585 | |||||
Beginning Balance at Sep. 30, 2018 | 739,408 | $ 546 | 397,927 | 386,622 | (42,356) | (3,331) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock compensation | 2,247 | 2,247 | ||||
Release of restricted stock (shares) | 860 | |||||
Release of restricted stock | 8 | $ 8 | ||||
Taxes paid related to net share settlement of equity awards | (3,288) | (3,288) | ||||
Transfer of subsidiary shares to noncontrolling interest | 0 | 3,195 | (3,195) | |||
Foreign currency translation (loss) gain | (6,383) | (6,383) | ||||
Net income (loss) | (3,843) | (3,366) | (477) | |||
Ending balance (shares) at Dec. 31, 2018 | 55,445 | |||||
Ending Balance at Dec. 31, 2018 | 728,149 | $ 554 | 400,081 | 383,256 | (48,739) | (7,003) |
Beginning balance (shares) at Sep. 30, 2018 | 54,585 | |||||
Beginning Balance at Sep. 30, 2018 | 739,408 | $ 546 | 397,927 | 386,622 | (42,356) | (3,331) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 1,956 | |||||
Ending balance (shares) at Jun. 30, 2019 | 55,445 | |||||
Ending Balance at Jun. 30, 2019 | 747,316 | $ 554 | 404,880 | 389,808 | (47,926) | 0 |
Beginning balance (shares) at Dec. 31, 2018 | 55,445 | |||||
Beginning Balance at Dec. 31, 2018 | 728,149 | $ 554 | 400,081 | 383,256 | (48,739) | (7,003) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock compensation | 2,424 | 2,424 | ||||
Deconsolidation of subsidiary | 7,756 | 7,756 | ||||
Foreign currency translation (loss) gain | (1,211) | (1,211) | ||||
Net income (loss) | 2,641 | 3,394 | (753) | |||
Ending balance (shares) at Mar. 31, 2019 | 55,445 | |||||
Ending Balance at Mar. 31, 2019 | 739,759 | $ 554 | 402,505 | 386,650 | (49,950) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock compensation | 2,375 | |||||
Foreign currency translation (loss) gain | 2,024 | |||||
Net income (loss) | 3,158 | |||||
Ending balance (shares) at Jun. 30, 2019 | 55,445 | |||||
Ending Balance at Jun. 30, 2019 | $ 747,316 | $ 554 | $ 404,880 | $ 389,808 | $ (47,926) | $ 0 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net income | $ 1,956 | $ 37,326 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 21,114 | 18,298 |
Amortization of debt discount and deferred financing costs | 16,613 | 12,126 |
Accretion of notes receivable discount and deferred compensation fee | (3,788) | (7,222) |
Deferred income taxes | 5,003 | 3,135 |
Impairment of investment in unconsolidated affiliates | 19,725 | 0 |
Other adjustments | 1,875 | 1,948 |
Reserve on jewelry scrap receivable | 3,646 | 0 |
Stock compensation expense | 7,036 | 8,216 |
Income from investment in unconsolidated affiliates | (632) | (3,477) |
Changes in operating assets and liabilities, net of business acquisitions: | ||
Service charges and fees receivable | 1,301 | 2,609 |
Inventory | 1,377 | 988 |
Prepaid expenses, other current assets and other assets | (4,194) | (3,356) |
Accounts payable, accrued expenses and other liabilities | (1,477) | (4,624) |
Customer layaway deposits | 949 | 935 |
Income taxes, net of excess tax benefit from stock compensation | (5,527) | 2,419 |
Net cash provided by operating activities | 64,977 | 69,321 |
Investing activities: | ||
Loans made | (542,512) | (512,914) |
Loans repaid | 328,079 | 318,636 |
Recovery of pawn loan principal through sale of forfeited collateral | 211,979 | 202,078 |
Additions to property and equipment, net | (24,568) | (33,917) |
Acquisitions, net of cash acquired | (8,116) | (93,165) |
Investment in unconsolidated affiliate | 0 | (14,036) |
Principal collections on notes receivable | 21,900 | 16,210 |
Net cash used in investing activities | (13,238) | (117,108) |
Financing activities: | ||
Proceeds from borrowings, net of issuance costs | 1,064 | 170,496 |
Payments on borrowings | (195,877) | (28) |
Taxes paid related to net share settlement of equity awards | (3,288) | (311) |
Net cash (used in) provided by financing activities | (198,101) | 170,157 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (294) | (1,493) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (146,656) | 120,877 |
Cash, cash equivalents and restricted cash at beginning of period | 285,578 | 163,868 |
Cash, cash equivalents and restricted cash at end of period | 138,922 | 284,745 |
Non-cash investing and financing activities: | ||
Pawn loans forfeited and transferred to inventory | $ 221,940 | $ 197,163 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business When used in this report, the terms “we,” “us,” “our,” “EZCORP” and the “Company” mean EZCORP, Inc. and its consolidated subsidiaries, collectively. We are a leading provider of pawn loans in the United States and Latin America. Pawn loans are non-recourse loans collateralized by tangible property. We also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers, and operate a small number of financial services stores in Canada. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Our management has included all adjustments it considers necessary for a fair presentation which are of a normal, recurring nature. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended September 30, 2018 and as corrected below. The balance sheet as of September 30, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Our business is subject to seasonal variations, and operating results for the three and nine months ended June 30, 2019 and 2018 (the "current quarter" and "current year-to-date period" and "prior-year quarter" and "prior-year nine -months," respectively) are not necessarily indicative of the results of operations for the full fiscal year. There have been no changes in significant accounting policies as described in our Annual Report on Form 10-K for the year ended September 30, 2018 , other than those described below. Use of Estimates and Assumptions The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, inventories, loan loss allowances, long-lived and intangible assets, share-based compensation, income taxes, contingencies and litigation. We base our estimates on historical experience, observable trends and various other assumptions that we believe are reasonable under the circumstances. We use this information to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions. Corrections to Prior Period Financial Statements During the second quarter of fiscal 2019, we identified errors in our previously reported financial statements during the ordinary course of account reviews and subsequent investigation of related accounts. None of the identified errors was material to any previously reported period. These have now been corrected in all periods presented. The errors related primarily to the overstatement of historical balances of pawn service charges receivable resulting from errors in the configuration of information technology reports. These errors resulted in an overstatement of October 1, 2017 beginning retained earnings of $3.8 million . The impact of these corrections on the condensed consolidated financial statements is as follows (in thousands except per share amounts): Condensed Consolidated Balance Sheets June 30, 2018 As Previously Reported Corrections As Corrected Cash and cash equivalents $ 285,031 $ (538 ) $ 284,493 Pawn service charges receivable, net 33,388 (6,949 ) 26,439 Prepaid expenses and other current assets 43,448 260 43,708 Goodwill 292,544 1,791 294,335 Deferred tax asset, net 616 1,245 1,861 Accounts payable, accrued expenses and other current liabilities 61,813 (218 ) 61,595 Retained earnings 392,315 (4,301 ) 388,014 Accumulated other comprehensive loss (48,040 ) 328 (47,712 ) Condensed Consolidated Statements of Operations Three Months Ended June 30, 2018 As Previously Reported Corrections As Corrected Pawn service charges $ 72,874 $ (330 ) $ 72,544 Operations expense 83,032 (100 ) 82,932 Income from continuing operations before income taxes 15,736 (230 ) 15,506 Income tax expense 1,553 (51 ) 1,502 Income from continuing operations, net of tax 14,183 (179 ) 14,004 Basic earnings per share attributable to EZCORP, Inc. — continuing operations $ 0.27 $ (0.01 ) $ 0.26 Diluted earnings per share attributable to EZCORP, Inc. — continuing operations $ 0.25 $ — $ 0.25 Nine Months Ended June 30, 2018 As Previously Reported Corrections As Corrected Pawn service charges $ 223,601 $ (1,004 ) $ 222,597 Operations expense 248,802 (44 ) 248,758 Administrative expense 39,927 (239 ) 39,688 Income from continuing operations before income taxes 53,388 (721 ) 52,667 Income tax expense 14,911 (201 ) 14,710 Income from continuing operations, net of tax 38,477 (520 ) 37,957 Basic earnings per share attributable to EZCORP, Inc. — continuing operations $ 0.73 $ (0.01 ) $ 0.72 Diluted earnings per share attributable to EZCORP, Inc. — continuing operations $ 0.70 $ (0.01 ) $ 0.69 Condensed Consolidated Statements of Cash Flows Nine Months Ended June 30, 2018 As Previously Reported Corrections As Corrected Net income $ 37,846 $ (520 ) $ 37,326 Service charges and fees receivable 1,601 1,008 2,609 Accounts payable, accrued expenses and other liabilities (4,245 ) (379 ) (4,624 ) Income taxes, net of excess tax benefit from stock compensation 2,586 (167 ) 2,419 Net cash provided by operating activities* 69,379 (58 ) 69,321 Effect of exchange rate changes on cash and cash equivalents and restricted cash (1,541 ) 48 (1,493 ) * As previously reported amount includes the impact of adoption of accounting policies described below. Recently Adopted Accounting Policies • In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in Accounting Standards Codification ("ASC") 350-40 to determine which implementation costs to defer and recognize as an asset. This ASU generally aligns the guidance on recognizing implementation costs incurred in a cloud computing arrangement that is a service contract with that for implementation costs incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. Our hosting arrangements that are service contracts include various third-party software applications. We adopted this ASU during the first quarter of fiscal 2019 on a prospective basis for all service contracts entered into after adoption, with no material impact upon adoption. • In November 2016, the FASB issued ASU 2016-18 Statement of Cash Flows (Topic 230): Restricted Cash. This ASU requires the inclusion of restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. We adopted this ASU during the first quarter of fiscal 2019 with no impact on our financial position or results of operations. However, we have recast our statements of cash flows on a retrospective basis to include restricted cash when reconciling the beginning-of-period and end-of-period total amounts. • In August 2016, the FASB issued ASU 2016-15 Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. This ASU provides guidance on eight specific cash flow issues. We adopted this ASU during the first quarter of fiscal 2019 on a prospective basis with no impact on our financial position, results of operations or cash flows. • In May 2016, the FASB issued ASU 2016-01, Financial Instruments (Subtopic 825-10). The amendments in this ASU make targeted improvements to GAAP primarily as it pertains to equity investments (not including equity method of accounting), fair value disclosures, balance sheet presentation, and other items pertaining to financial instruments. We adopted this ASU during the first quarter of fiscal 2019 on a prospective basis, as applicable, with no impact on our financial position, results of operations or cash flows upon adoption. • In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) to defer the effective date to December 15, 2017 for annual reporting periods beginning after that date, with early adoption permitted, but not before the original effective date of December 15, 2016. The core principle of this ASU, and the subsequently issued ASUs modifying or clarifying this ASU, is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The new standard allows for two methods of adoption: (a) full retrospective adoption, meaning the standard is applied to all periods presented, or (b) modified retrospective adoption, meaning the cumulative effect of applying the new standard is recognized as an adjustment to the opening retained earnings balance. We adopted this ASU and related guidance as of October 1, 2018 using the modified retrospective method. We evaluated the impact of ASC 606 on our consolidated financial position, results of operations, cash flows and disclosure requirements noting no material impact to our consolidated financial statements or disclosures. See Note 9 for disaggregated information about our sources of revenue. Additionally, we have concluded that ASC 606 does not impact our revenue recognition for pawn service charges or consumer loan fees as we believe neither of those revenue streams are within the scope of ASC 606. The following is a summary of our current revenue recognition policies. Pawn Service Charges Revenue We record pawn service charges using the effective interest method over the life of the loan for all pawn loans we believe to be collectible. We base our estimate of collectible loans on several inputs, including recent redemption rates, historical trends in redemption rates and the amount of loans due in the following months. Unexpected variations in any of these factors could change our estimate of collectible loans, affecting our earnings and financial condition. If a pawn loan is not repaid, we value the forfeited collateral (inventory) at the lower of cost (pawn loan principal) or net realizable value of the item. Merchandise and Related Sales Revenue This revenue stream involves the sale of merchandise to retail customers in our pawn stores. The performance obligation is the delivery of the merchandise to the customer. Revenue and the related cost of merchandise sold is recognized at the time of sale. Customers have a limited period of time to return merchandise for a refund or exchange, and actual returns for refunds are insignificant. Sales and value added tax collected on the sale of merchandise is excluded from the amount recognized as sales and instead recorded as a liability in “Accounts payable, accrued expenses and other current liabilities” in our condensed consolidated balance sheets until remitted to the appropriate governmental authorities. Jewelry Scrapping Sales Revenue This revenue stream involves the sales of scrap (precious metals and stones) to refiners. The performance obligation is the legal transfer of scrap to the refiner. Revenue, and the related cost of scrap sold, is recognized when scrap inventory is provided to the refiner, which is when the customer obtains control of the promised good. The receivables outstanding at the end of a given reporting period are not material. Payment of the receivable from the customer is generally received within a short period of time after the legal transfer of the scrap materials to the refiner. Other Revenue Layaway fees, product protection plan revenues, and jewelry VIP package revenues are not significant. Recently Issued Accounting Pronouncements • In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequently issued related ASUs, requires financial assets (or groups of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, among other provisions. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A reporting entity should generally apply the amendment on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting periods in which the amendment is effective. We have not identified any impacts to our financial statements that we believe will be material as a result of the adoption of the ASU, although we continue to evaluate the impact of adoption. We believe we are following an appropriate timeline to allow for proper recognition, presentation and disclosure upon adoption of this ASU which is effective for fiscal 2021. • In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The provisions of this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted based upon guidance issued within the ASU. We are in the process of evaluating the impact of adopting ASU 2016-02 on our consolidated financial position, results of operations and cash flows, and anticipate a material impact on our consolidated financial position. Additionally, we are evaluating the disclosure requirements under this ASU and are identifying and preparing to implement changes to our accounting policies, practices and controls to support adoption of the ASU and have completed upgrades to our third-party software solution to support adoption. We will complete our implementation to allow for proper recognition, presentation and disclosure upon adoption of the ASU which is effective for fiscal 2020. We currently plan to adopt this ASU using the optional transition method provided under ASU 2018-11, Leases, (Topic 842): Targeted Improvement which was issued in July 2018, allowing for application of ASU 2016-02 at the adoption date. Please refer to Note 1 of Notes to Consolidated Financial Statements included in "Part II, Item 8 — Financial Statements and Supplementary Data" of our Annual Report on Form 10-K for the year ended September 30, 2018 for discussion of our significant accounting policies and other accounting pronouncements issued but not yet adopted. |
Acquisitions
Acquisitions | 9 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 2: ACQUISITIONS Fiscal 2019 Acquisitions In June 2019, we acquired assets related to seven pawn stores operating under the name "Metro Pawn" in Nevada, entering the Reno market and expanding our presence in the Las Vegas metropolitan area, for an aggregate purchase price of $7.0 million in cash, of which $3.6 million was recorded as goodwill. In December 2018, we acquired assets related to five pawn stores in Mexico, for an aggregate purchase price of $0.3 million in cash, of which $0.1 million was recorded as goodwill. We have concluded that these acquisitions were immaterial to our overall consolidated financial results and, therefore, have omitted certain information that would otherwise be required. Fiscal 2018 Acquisition of Camira Administration Corp. and Subsidiaries (“GPMX”) On October 6, 2017, we completed the acquisition of 100% of the outstanding stock of Camira Administration Corp. and subsidiaries (“GPMX”), a business that, at the time, owned and operated 112 stores located in Guatemala, El Salvador, Honduras and Peru for a total purchase price of $61.7 million . The GPMX acquisition significantly expanded our store base into Latin American countries outside of Mexico and provides us with a platform for further growth in the region. The accompanying condensed consolidated results of operations for the current year-to-date period include the results of operations for GPMX, while the comparable prior-year period includes the results of GPMX for the period October 6, 2017 to June 30, 2018, affecting comparability of fiscal 2019 and 2018 year-to-date amounts. We have performed a valuation analysis of identifiable assets acquired and liabilities assumed and allocated the total consideration based on the fair values of those identifiable assets and liabilities. All Other Fiscal 2018 Acquisitions On June 25, 2018, June 11, 2018 and December 4, 2017, we acquired pawn stores operating in Mexico under the names “Montepio San Patricio,” "Presta Dinero" and "Bazareño," respectively. These acquisitions significantly strengthened our competitive position in existing regions, gave us a presence in new regions and allowed us to achieve synergies in management and administration. The accompanying condensed consolidated results of operations for the current year-to-date period include the results of operations for these acquisitions, while the comparable prior-year periods only include the results of Bazareño for the period December 4, 2017 to June 30, 2018, affecting comparability of fiscal 2019 and 2018 amounts. We have performed a valuation analysis of identifiable assets acquired and liabilities assumed and allocated the total consideration based on the fair values of those identifiable assets and liabilities for these acquisitions. During the first quarter of fiscal 2019, we finalized accounting for the Montepio San Patricio and Presta Dinero acquisitions, which were completed in fiscal 2018, and increased associated deferred tax assets by $1.8 million with an offsetting reduction in goodwill. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 3: EARNINGS PER SHARE Components of basic and diluted earnings per share and excluded antidilutive potential common shares are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (in thousands, except per share amounts) Net income from continuing operations attributable to EZCORP (A) $ 3,361 $ 14,363 $ 3,590 $ 39,305 (Loss) income from discontinued operations, net of tax (B) (203 ) 91 (404 ) (631 ) Net income attributable to EZCORP (C) $ 3,158 $ 14,454 $ 3,186 $ 38,674 Weighted-average outstanding shares of common stock (D) 55,445 54,464 55,306 54,453 Dilutive effect of restricted stock and 2024 Convertible Notes* 42 3,490 21 2,627 Weighted-average common stock and common stock equivalents (E) 55,487 57,954 55,327 57,080 Basic earnings per share attributable to EZCORP: Continuing operations (A / D) $ 0.06 $ 0.26 $ 0.06 $ 0.72 Discontinued operations (B / D) — — — (0.01 ) Basic earnings per share (C / D) $ 0.06 $ 0.26 $ 0.06 $ 0.71 Diluted earnings per share attributable to EZCORP: Continuing operations (A / E) $ 0.06 $ 0.25 $ 0.06 $ 0.69 Discontinued operations (B / E) — — — (0.01 ) Diluted earnings per share (C / E) $ 0.06 $ 0.25 $ 0.06 $ 0.68 Potential common shares excluded from the calculation of diluted earnings per share above*: Restricted stock** 2,891 3,569 2,804 3,375 * See Note 6 for discussion of the terms and conditions of the potential impact of the 2019 Convertible Notes Warrants, 2024 Convertible Notes and 2025 Convertible Notes. ** Includes antidilutive share-based awards as well as performance-based and market conditioned share-based awards that are contingently issuable, but for which the condition for issuance has not been met as of the end of the reporting period. |
Strategic Investments
Strategic Investments | 9 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
STRATEGIC INVESTMENTS | NOTE 4: STRATEGIC INVESTMENTS As of June 30, 2019 , we owned 214,183,714 shares, or approximately 34.75% , of Cash Converters International Limited ("Cash Converters International"). The following tables present summary financial information for Cash Converters International’s most recently reported results after translation to U.S. dollars: December 31, 2018 2017 (in thousands) Current assets $ 172,836 $ 203,664 Non-current assets 151,492 151,189 Total assets $ 324,328 $ 354,853 Current liabilities $ 81,165 $ 128,731 Non-current liabilities 22,109 14,559 Shareholders’ equity 221,054 211,563 Total liabilities and shareholders’ equity $ 324,328 $ 354,853 Half-Year Ended December 31, 2018 2017 (in thousands) Gross revenues $ 99,390 $ 95,784 Gross profit 56,884 63,212 Net (loss) profit (3,791 ) 7,292 Through the first three quarters of fiscal 2019, the fair value of our investment in Cash Converters International, as estimated by reference to its quoted market price per share and the applicable foreign currency exchange rate, declined from its value at September 30, 2018 and ended each quarter below its carrying value. As of March 31, 2019 and December 31, 2018, we determined that our investment was impaired and that such impairment was "other-than-temporary." In reaching this conclusion, we considered all available evidence, including evidence in existence as of September 30, 2018 as discussed in Note 4 of Notes to Consolidated Financial Statements included in "Part II, Item 8 — Financial Statements and Supplementary Data" of our Annual Report on Form 10-K for the year ended September 30, 2018 . Additionally, we noted the following developments subsequent to September 30, 2018: (i) continued decline in Cash Converters International's share price; and (ii) ongoing uncertainty around the remaining Queensland, Australia class action lawsuit. As a result, we recognized "other-than-temporary" impairments in Cash Converters International of $13.3 million ( $10.3 million , net of taxes) and $6.5 million ( $5.0 million , net of taxes) during the first and second quarters of fiscal 2019, respectively. As of June 30, 2019, we determined that our investment was impaired by $3.8 million and that such impairment was not "other-than-temporary." In reaching this conclusion, we considered all available evidence including primarily the time and extent to which our investment was impaired during the current quarter. Should the value of our investment continue to decline further, we may record additional impairments. The above impairments increased the difference between the amount at which our investment was carried and the amount of underlying equity in net assets of Cash Converters International and was recorded in “Impairment of investment in unconsolidated affiliate” in our condensed consolidated statements of operations in the “Other International” segment. We will continue to monitor the fair value of our investment in Cash Converters International for "other-than-temporary" impairments in future reporting periods and may record additional impairment charges should the fair value of our investment in Cash Converters International further decline below its carrying value for an extended period of time. See Note 5 for the fair value and carrying value of our investment in Cash Converters International. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 5: FAIR VALUE MEASUREMENTS Our assets and liabilities discussed below are classified in one of the following three categories based on the inputs used to develop their fair values: Level 1 — Quoted market prices in active markets for identical assets or liabilities; Level 2 — Other observable market-based inputs or unobservable inputs that are corroborated by market data; and Level 3 — Unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements The tables below present our financial assets (liabilities) that were carried and measured at fair value on a recurring basis: Financial Assets (Liabilities) Balance Sheet Location June 30, 2019 June 30, 2018 September 30, 2018 (in thousands) 2019 Convertible Notes Hedges — Level 2 Prepaid expenses and other current assets $ — $ 7,491 $ 2,552 2019 Convertible Notes Embedded Derivative — Level 2 Current maturities of long-term debt, net — (7,491 ) (2,552 ) We repaid our outstanding 2.125% Cash Convertible Senior Notes Due 2019 in June 2019 with expiration of the associated cash-settled call options (the “2019 Convertible Notes Hedges”) and the 2019 Convertible Notes derivative instrument (the “2019 Convertible Notes Embedded Derivative”). There were no transfers in or out of Level 1, Level 2 or Level 3 for financial assets or liabilities measured at fair value on a recurring basis during the periods presented. Financial Assets and Liabilities Not Measured at Fair Value The tables below present our financial assets and liabilities that were not measured at fair value on a recurring basis: Carrying Value Estimated Fair Value June 30, 2019 June 30, 2019 Fair Value Measurement Using Level 1 Level 2 Level 3 (in thousands) Financial assets: Notes receivable from Grupo Finmart, net $ 18,744 $ 19,517 $ — $ — $ 19,517 Zero-coupon convertible promissory note due January 2021 7,226 7,226 — — 7,226 2.89% promissory note receivable due April 2024 1,108 1,108 — — 1,108 Investments in unconsolidated affiliates 30,922 27,158 24,464 — 2,694 Financial liabilities: 2024 Convertible Notes $ 109,909 $ 161,719 $ — $ 161,719 $ — 2025 Convertible Notes 124,542 159,873 — 159,873 — 8.5% unsecured debt due 2024 1,148 1,148 — — 1,148 CASHMAX secured borrowing facility 65 804 — — 804 Carrying Value Estimated Fair Value June 30, 2018 June 30, 2018 Fair Value Measurement Using Level 1 Level 2 Level 3 (in thousands) Financial assets: Notes receivable from Grupo Finmart, net $ 51,338 $ 57,116 $ — $ — $ 57,116 Investments in unconsolidated affiliates 61,056 49,205 49,205 — — Financial liabilities: 2019 Convertible Notes $ 184,823 $ 197,925 $ — $ 197,925 $ — 2024 Convertible Notes 104,562 195,974 — 195,974 — 2025 Convertible Notes 118,335 168,464 — 168,464 — Carrying Value Estimated Fair Value September 30, 2018 September 30, 2018 Fair Value Measurement Using Level 1 Level 2 Level 3 (in thousands) Financial assets: Notes receivable from Grupo Finmart, net $ 37,425 $ 41,153 $ — $ — $ 41,153 Investments in unconsolidated affiliates 49,500 49,500 49,500 — — Financial liabilities: 2019 Convertible Notes $ 187,433 $ 189,150 $ — $ 189,150 $ — 2024 Convertible Notes 105,858 180,399 — 180,399 — 2025 Convertible Notes 119,736 161,253 — 161,253 — 8.5% unsecured debt due 2024 1,304 1,304 — — 1,304 Based primarily on the short-term nature of cash and cash equivalents, pawn loans, pawn service charges receivable, current consumer loans, fees and interest receivable and other debt, we estimate that their carrying value approximates fair value. We consider our cash and cash equivalents to be measured using Level 1 inputs and our pawn loans, pawn service charges receivable, consumer loans, fees and interest receivable and other debt to be measured using Level 3 inputs. Significant increases or decreases in the underlying assumptions used to value pawn loans, pawn service charges receivable, consumer loans, fees and interest receivable and other debt could significantly increase or decrease these fair value estimates. In March 2019, we deconsolidated a previously consolidated variable interest entity ("RDC") over which we no longer have the power to direct the activities that most significantly affect its economic performance. After the deconsolidation, we continue to hold the following interests in RDC: • A 5% equity interest and a call option to repurchase an additional 43% equity interest for $1 in September 2019 in the event that RDC has not received a qualified third party investment. These interests were recorded at a combined fair value of $2.8 million and included in "Investment in unconsolidated affiliates" in our condensed consolidated balance sheets. • A $9.1 million non-interest bearing convertible promissory note due January 2021, which is automatically convertible into a 10% equity interest when RDC has received a qualified third party investment. This note was recorded at its fair value of $6.8 million in "Notes receivable, net" in our condensed consolidated balance sheets and will accrete to par value through maturity unless converted. In conjunction with the deconsolidation and recording of the above amounts, we recognized a loss of $0.3 million , included in "Other income" in our condensed consolidated statements of operations included in our "Other International" segment and in "Other adjustments" in our condensed consolidated statements of cash flows for the current year-to-date period. The retained equity interest, call option and convertible promissory note are valued using weighted discounted cash flow and market approaches using Level 3 inputs. Significant increases or decreases in the underlying assumptions used to value these interests could significantly increase or decrease the fair value estimate. In March 2019, we received $1.1 million in previously escrowed seller funds as a result of settling certain indemnification claims with the seller of GPMX. In April 2019, we loaned the $1.1 million back to the seller of GPMX in exchange for a promissory note. The note bears interest at the rate of 2.89% per annum and is secured by certain marketable securities owned by the seller and held in a U.S. brokerage account. All principal and accrued interest is due and payable in April 2024. Subsequent to the sale of Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. ("Grupo Finmart") to Alpha Holding, S.A. de C.V. (“AlphaCredit”) in September 2016, we determined that we retained a variable interest in Grupo Finmart including notes receivable. We determined that we are not the primary beneficiary of Grupo Finmart subsequent to its disposition as we lack a controlling financial interest in Grupo Finmart. We measured the fair value of the notes receivable as of June 30, 2019 under a discounted cash flow approach considering the estimated credit ratings for Grupo Finmart and AlphaCredit and as determined with external consultation, with discount rates of primarily 7% . Certain of the significant inputs used for the valuation were not observable in the market. Included in the fair value of the notes receivable is the estimated fair value of the deferred compensation fee negotiated in September 2017. Significant increases or decreases in the underlying assumptions used to value the notes receivable could significantly increase or decrease these fair value estimates. The inputs used to measure the fair value of the investment in unconsolidated affiliate Cash Converters International were considered Level 1 inputs. These inputs are comprised of (a) the quoted stock price on the Australian Stock Exchange multiplied by (b) the number of shares we owned multiplied by (c) the applicable foreign currency exchange rate as of the end of our reporting period. We included no control premium for owning a large percentage of outstanding shares. We measured the fair value of the 2024 and 2025 Convertible Notes using quoted price inputs. The notes are not actively traded, and thus the price inputs represent a Level 2 measurement. As the quoted price inputs are highly variable from day to day, the fair value estimates disclosed above could significantly increase or decrease. |
Debt
Debt | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | NOTE 6: DEBT The following tables present our debt instruments outstanding as well as future principal payments due, contractual maturities and interest expense: June 30, 2019 June 30, 2018 September 30, 2018 Gross Amount Debt Discount and Issuance Costs Carrying Amount Gross Amount Debt Discount and Issuance Costs Carrying Amount Gross Amount Debt Discount and Issuance Costs Carrying Amount (in thousands) 2019 Convertible Notes $ — $ — $ — $ 195,000 $ (10,177 ) $ 184,823 $ 195,000 $ (7,567 ) $ 187,433 2019 Convertible Notes Embedded Derivative — — — 7,491 — 7,491 2,552 — 2,552 2024 Convertible Notes 143,750 (33,841 ) 109,909 143,750 (39,188 ) 104,562 143,750 (37,892 ) 105,858 2025 Convertible Notes 172,500 (47,958 ) 124,542 172,500 (54,165 ) 118,335 172,500 (52,764 ) 119,736 8.5% unsecured debt due 2024* 1,148 — 1,148 — — — 1,304 — 1,304 Other debt — — — 3,482 — 3,482 — — — CASHMAX secured borrowing facility* 804 (739 ) 65 — — — — — — Total $ 318,202 $ (82,538 ) $ 235,664 $ 522,223 $ (103,530 ) $ 418,693 $ 515,106 $ (98,223 ) $ 416,883 Less current portion 215 — 215 205,973 (10,177 ) 195,796 197,748 (7,567 ) 190,181 Total long-term debt $ 317,987 $ (82,538 ) $ 235,449 $ 316,250 $ (93,353 ) $ 222,897 $ 317,358 $ (90,656 ) $ 226,702 * Amount translated from Guatemalan quetzals and Canadian dollars as of applicable period end. Certain disclosures omitted due to materiality considerations. Schedule of Contractual Maturities Total Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years (in thousands) 2024 Convertible Notes* 143,750 — — 143,750 — 2025 Convertible Notes* 172,500 — — 172,500 — 8.5% unsecured debt due 2024 1,148 215 430 430 73 CASHMAX secured borrowing facility 804 — 804 — — $ 318,202 $ 215 $ 1,234 $ 316,680 $ 73 * Excludes the potential impact of embedded derivatives. Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (in thousands) 2019 Convertible Notes: Contractual interest expense $ 896 $ 1,069 $ 3,034 $ 3,207 Amortization of debt discount and deferred financing costs 2,314 2,527 7,567 7,470 Total interest expense $ 3,210 $ 3,596 $ 10,601 $ 10,677 2024 Convertible Notes: Contractual interest expense $ 1,033 $ 1,033 $ 3,099 $ 3,099 Amortization of debt discount and deferred financing costs 1,376 1,275 4,051 3,756 Total interest expense $ 2,409 $ 2,308 $ 7,150 $ 6,855 2025 Convertible Notes: Contractual interest expense $ 1,024 $ 535 $ 3,072 $ 535 Amortization of debt discount and deferred financing costs 1,630 836 4,806 836 Total interest expense $ 2,654 $ 1,371 $ 7,878 $ 1,371 2.375% Convertible Senior Notes Due 2025 In May 2018, we issued $172.5 million aggregate principal amount of 2.375% Convertible Senior Notes Due 2025 (the “2025 Convertible Notes”). The 2025 Convertible Notes were issued pursuant to an indenture dated May 14, 2018 (the "2018 Indenture") by and between us and Wells Fargo Bank, National Association, as the trustee. The 2025 Convertible Notes were issued in a private offering under Rule 144A under the Securities Act of 1933. The 2025 Convertible Notes pay interest semi-annually in arrears at a rate of 2.375% per annum on May 1 and November 1 of each year, commencing November 1, 2018, and mature on May 1, 2025 (the "2025 Maturity Date"), unless converted, redeemed or repurchased in accordance with their terms prior to such date. The carrying amount of the 2025 Convertible Notes as a separate equity-classified instrument (the “2025 Convertible Notes Embedded Derivative”) included in “Additional paid-in capital” in our condensed consolidated balance sheets of June 30, 2019 was $39.0 million . The effective interest rate for the three and nine months ended June 30, 2019 was approximately 9% . As of June 30, 2019 , the remaining unamortized debt discount and issuance costs will be amortized through the 2025 Maturity Date assuming no early conversion. The 2025 Convertible Notes are convertible into cash or shares of Class A Non-Voting Common Stock ("Class A Common Stock"), or any combination thereof, at our option subject to satisfaction of certain conditions and during the periods described in the 2018 Indenture, based on an initial conversion rate of 62.8931 shares of Class A Common Stock per $1,000 principal amount of 2025 Convertible Notes (equivalent to an initial conversion price of $15.90 per share of our Class A Common Stock). We account for the Class A Common Stock issuable upon conversion under the treasury stock method. To the extent our average share price is over $15.90 per share for any fiscal quarter or year-to-date period, we are required to recognize incremental dilution of our earnings per share. If, among other triggers described in the 2018 Indenture, the market price of our Class A Common Stock meets the threshold based on at least 20 of the final 30 trading days of the quarter for the 2025 Convertible Notes to become convertible at the option of the holders during the subsequent quarter, we may be required to classify the 2025 Convertible Notes as current on our condensed consolidated balance sheets for each quarter in which such triggers are met. The stock trading price condition and other triggers are measured on a quarter-by-quarter basis and were not met as of June 30, 2019 . As of June 30, 2019 , the if-converted value of the 2025 Convertible Notes did not exceed the principal amount. 2.875% Convertible Senior Notes Due 2024 In July 2017, we issued $143.75 million aggregate principal amount of 2.875% Convertible Senior Notes Due 2024 (the “2024 Convertible Notes”). The 2024 Convertible Notes were issued pursuant to an indenture dated July 5, 2017 (the "2017 Indenture") by and between us and Wells Fargo Bank, National Association, as the trustee. The 2024 Convertible Notes were issued in a private offering under Rule 144A under the Securities Act of 1933. The 2024 Convertible Notes pay interest semi-annually in arrears at a rate of 2.875% per annum on January 1 and July 1 of each year, commencing January 1, 2018, and mature on July 1, 2024 (the "2024 Maturity Date"), unless converted, redeemed or repurchased in accordance with their terms prior to such date. The carrying amount of the 2024 Convertible Notes as a separate equity-classified instrument (the “2024 Convertible Notes Embedded Derivative”) included in “Additional paid-in capital” in our condensed consolidated balance sheets of June 30, 2019 was $25.3 million . The effective interest rate for the three and nine months ended June 30, 2019 was approximately 9% . As of June 30, 2019 , the remaining unamortized debt discount and issuance costs will be amortized through the 2024 Maturity Date assuming no early conversion. The 2024 Convertible Notes are convertible into cash or shares of Class A Common Stock, or any combination thereof, at our option subject to satisfaction of certain conditions and during the periods described in the 2017 Indenture, based on an initial conversion rate of 100 shares of Class A Common Stock per $1,000 principal amount of 2024 Convertible Notes (equivalent to an initial conversion price of $10.00 per share of our Class A Common Stock). We account for the Class A Common Stock issuable upon conversion under the treasury stock method. To the extent our average share price is over $10.00 per share for any fiscal quarter, we are required to recognize incremental dilution of our earnings per share. If, among other triggers described in the 2017 Indenture, the market price of our Class A Common Stock meets the threshold based on at least 20 of the final 30 trading days of the quarter for the 2024 Convertible Notes to become convertible at the option of the holders during the subsequent quarter, we may be required to classify the 2024 Convertible Notes as current on our condensed consolidated balance sheets for each quarter in which such triggers are met. The stock trading price condition and other triggers are measured on a quarter-by-quarter basis and were not met as of June 30, 2019 . As of June 30, 2019 , the if-converted value of the 2024 Convertible Notes did not exceed the principal amount. 2.125% Cash Convertible Senior Notes Due 2019 In June 2014, we issued $200 million aggregate principal amount of 2.125% Cash Convertible Senior Notes Due 2019 (the "2019 Convertible Notes"), with an additional $30 million principal amount of 2019 Convertible Notes issued in July 2014. In July 2017, we used $34.4 million of net proceeds from the 2024 Convertible Notes offering to repurchase and retire $35.0 million aggregate principal amount of 2019 Convertible Notes. The 2019 Convertible Notes were issued pursuant to an indenture dated June 23, 2014 (the "2014 Indenture") by and between us and Wells Fargo Bank, National Association, as the trustee. The 2019 Convertible Notes were issued in a private offering and resold under Rule 144A under the Securities Act of 1933. The 2019 Convertible Notes paid interest semi-annually in arrears at a rate of 2.125% per annum on June 15 and December 15 of each year. The 2019 Convertible Notes matured on June 15, 2019 (the "2019 Maturity Date") , and the remaining $195.0 million aggregate principal amount outstanding plus accrued interest was repaid using cash on hand. The effective interest rate for the three and nine months ended June 30, 2019 was approximately 8% . The cash-settled call options (the “2019 Convertible Notes Hedges”) purchased in conjunction with the issuance of the 2019 Convertible Notes expired worthless. 2019 Convertible Notes Warrants In connection with the issuance of the 2019 Convertible Notes, we also sold net-share-settled warrants (the “2019 Convertible Notes Warrants”). The 2019 Convertible Notes Warrants allow for the purchase of up to approximately 12.1 million shares of our Class A Common Stock at a strike price of $20.83 per share. We account for the Class A Common Stock issuable upon exercise under the treasury stock method. As a result of the 2019 Convertible Notes Warrants, we are required to recognize incremental dilution of our earnings per share to the extent our average share price is over $20.83 for any fiscal quarter. The 2019 Convertible Notes Warrants expire on various dates from September 2019 through February 2020 and must be settled in net shares of our Class A Common Stock. CASHMAX Secured Borrowing Facility In November 2018, we entered into a receivables securitization facility with a third-party lender (the "lender") to provide funding for installment loan originations in our Canadian CASHMAX business. Under the facility, an unconsolidated variable interest entity (the "trust") has the right, subject to various conditions, to borrow up to CAD $25 million from the lender (the "third-party loan") and use the proceeds to purchase interests in installment loan receivables generated by CASHMAX. The trust uses collections on the transferred receivables to pay various amounts in accordance with an agreed priority arrangement, including expenses, its obligations under the third-party loan and, to the extent available, amounts owned to CASHMAX with respect to the purchase price of the transferred receivables and CASHMAX's retained interest in the receivables. CASHMAX has no obligation with respect to the third-party loan or the transferred receivables except to (a) service the underlying installment loans on behalf of the trust and (b) pay amounts owing under or repurchase the underlying installment loans in the event of a breach by CASHMAX or in certain other limited circumstances. The facility is generally nonrecourse to EZCORP, allows borrowing through November 2019, and fully matures in November 2021. The amount outstanding under the facility as of June 30, 2019 was $0.8 million . |
Stock Compensation
Stock Compensation | 9 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK COMPENSATION | NOTE 7: STOCK COMPENSATION On May 1, 2010 our Board of Directors approved the adoption of the EZCORP, Inc. 2010 Long-Term Incentive Plan (the “2010 Plan”). As of September 30, 2018, the 2010 Plan permitted grants of options, restricted stock awards and stock appreciation rights covering up to 5,085,649 shares of our Class A Common Stock. In November 2018, the Board of Directors and the voting stockholder approved the addition of 400,000 shares to the 2010 Plan. In the current quarter, we granted our seven new non-employee directors a total of 60,088 restricted stock awards with a grant date fair value of primarily $10.64 per share. In November 2018, we granted 59,812 restricted stock awards to non-employee directors with a grant date fair value of $9.18 per share. The awards granted to non-employee directors vest on September 30, 2019 and are subject only to service conditions. In November 2018, we granted 971,615 restricted stock unit awards to employees with a grant date fair value of primarily $9.18 per share. The awards granted to employees vest on September 30, 2021, subject to the achievement of certain adjusted net income and adjusted diluted earnings per share performance targets. As of June 30, 2019 , we considered the achievement of these performance targets probable. The number of long-term incentive award shares and units granted are generally determined based on our share price as of October 1 each year, which was $10.51 |
Contingencies
Contingencies | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | NOTE 8: CONTINGENCIES Currently and from time to time, we are involved in various claims, suits, investigations and legal proceedings, including the lawsuit described below. While we are unable to determine the ultimate outcome of any current litigation or regulatory actions (except as noted below), we believe their resolution will not have a material adverse effect on our financial condition, results of operations or liquidity. Federal Securities Litigation — In July 2015 and August 2015, two substantially identical lawsuits were filed in the United States District Court for the Western District of Texas. Those lawsuits were subsequently consolidated into a single action under the caption In re EZCORP, Inc. Securities Litigation (Master File No. 1:15-cv-00608-SS). The original complaint related to the Company’s announcement on July 17, 2015 that it will restate its financial statements for fiscal 2014 and the first quarter of fiscal 2015, and alleged generally that the Company issued materially false or misleading statements concerning the Company, its finances, business operations and prospects and that the Company misrepresented the financial performance of the Grupo Finmart business. In January 2016, the plaintiffs filed an Amended Class Action Complaint (the "Amended Complaint"), which asserted that the Company and Mark E. Kuchenrither, our former Chief Financial Officer, violated Section 10(b) of the Securities Exchange Act and Rule 10b-5, issued materially false or misleading statements concerning the Company and its internal controls, specifically regarding the financial performance of Grupo Finmart. The plaintiffs also allege that Mr. Kuchenrither, as a controlling person of the Company, violated Section 20(a) of the Securities Exchange Act. In October 2016, the Court granted the defendants’ motion to dismiss and dismissed the Amended Complaint without prejudice. In November 2016, the plaintiffs filed a Second Amended Consolidated Class Action Complaint (“Second Amended Complaint”), raising the same claims previously dismissed by the Court, but reducing the class period (November 7, 2013 to October 20, 2015 instead of November 6, 2012 to October 20, 2015). In May 2017, the Court granted the defendants’ motion to dismiss with regard to claims related to accounting errors relating to Grupo Finmart’s bad debt reserve calculations for “nonperforming” loans, but denied the motion to dismiss with regard to claims relating to accounting errors related to certain sales of loan portfolios to third parties. Following discovery on the surviving claims, the plaintiff filed a Motion for Leave to File a Third Amended Complaint, seeking to revive the "nonperforming" loan claims that the Court previously dismissed, and on July 26, 2018, the Court granted the plaintiff's motion for leave to amend, thus accepting the Third Amended Consolidated Class Action Complaint. The Court issued an order certifying the class and approving the class representative and class counsel in February 2019, and we appealed that order to the U.S. Fifth Circuit Court of Appeals, which appeal was granted in March 2019. On May 30, 2019, the parties agreed to a mediated settlement of all remaining claims and entered into a Memorandum of Understanding regarding that settlement. The proposed settlement provides for the payment of $4.875 million by the defendants (which will be covered by applicable directors' and officers' liability insurance). The accrued settlement and offsetting insurance receivable are included in "Accounts payable, accrued expenses and other current liabilities" and "Prepaid expenses and other current assets" in our condensed consolidated balance sheets as of June 30, 2019 . On July 18, 2019, the parties entered into a Stipulation and Agreement of Settlement reflecting the terms of the agreed settlement and the lead plaintiff filed an unopposed motion requesting the Court to preliminarily approve the proposed settlement and set a settlement fairness hearing. The parties are awaiting the Court's action on that motion. The proposed settlement remains subject to several conditions, including Court approval. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 9: SEGMENT INFORMATION We currently report our segments as follows: U.S. Pawn — all pawn activities in the United States; Latin America Pawn — all pawn activities in Mexico and other parts of Latin America; and Other International — primarily our equity interest in the net income of Cash Converters International and consumer finance activities in Canada. There are no inter-segment revenues, and the amounts below were determined in accordance with the same accounting principles used in our condensed consolidated financial statements. Three Months Ended June 30, 2019 U.S. Pawn Latin America Pawn Other Total Segments Corporate Items Consolidated (in thousands) Revenues: Merchandise sales $ 83,904 $ 19,998 $ — $ 103,902 $ — $ 103,902 Jewelry scrapping sales 13,889 4,323 — 18,212 — 18,212 Pawn service charges 58,635 20,345 — 78,980 — 78,980 Other revenues 34 67 1,270 1,371 — 1,371 Total revenues 156,462 44,733 1,270 202,465 — 202,465 Merchandise cost of goods sold 52,855 17,416 — 70,271 — 70,271 Jewelry scrapping cost of goods sold 11,599 4,166 — 15,765 — 15,765 Other cost of revenues — — 576 576 — 576 Net revenues 92,008 23,151 694 115,853 — 115,853 Segment and corporate expenses (income): Operations 65,449 18,284 994 84,727 — 84,727 Administrative — — — — 15,053 15,053 Depreciation and amortization 2,934 1,626 72 4,632 2,622 7,254 Loss (gain) on sale or disposal of assets and other 4 (8 ) 6 2 22 24 Interest expense — 1,491 76 1,567 8,265 9,832 Interest income — (376 ) — (376 ) (2,796 ) (3,172 ) Equity in net income of unconsolidated affiliates — — (1,320 ) (1,320 ) — (1,320 ) Other (income) expense — 34 6 40 (44 ) (4 ) Segment contribution $ 23,621 $ 2,100 $ 860 $ 26,581 Income from continuing operations before income taxes $ 26,581 $ (23,122 ) $ 3,459 Three Months Ended June 30, 2018 U.S. Pawn Latin America Pawn Other Total Segments Corporate Items Consolidated (in thousands) Revenues: Merchandise sales $ 83,898 $ 20,839 $ — $ 104,737 $ — $ 104,737 Jewelry scrapping sales 17,813 2,615 — 20,428 — 20,428 Pawn service charges 55,536 17,008 — 72,544 — 72,544 Other revenues 55 245 1,603 1,903 — 1,903 Total revenues 157,302 40,707 1,603 199,612 — 199,612 Merchandise cost of goods sold 52,340 14,556 — 66,896 — 66,896 Jewelry scrapping cost of goods sold 15,329 2,296 — 17,625 — 17,625 Other cost of revenues — — 349 349 — 349 Net revenues 89,633 23,855 1,254 114,742 — 114,742 Segment and corporate expenses (income): Operations 65,257 14,997 2,678 82,932 — 82,932 Administrative — — — — 13,268 13,268 Depreciation and amortization 3,010 951 48 4,009 2,115 6,124 Loss on sale or disposal of assets and other 74 26 — 100 214 314 Interest expense — 3 — 3 7,391 7,394 Interest income — (672 ) — (672 ) (3,686 ) (4,358 ) Equity in net income of unconsolidated affiliates — — (1,151 ) (1,151 ) — (1,151 ) O ther income — (103 ) — (103 ) (5,184 ) (5,287 ) Segment contribution (loss) $ 21,292 $ 8,653 $ (321 ) $ 29,624 Income from continuing operations before income taxes $ 29,624 $ (14,118 ) $ 15,506 Nine Months Ended June 30, 2019 U.S. Pawn Latin America Pawn Other Total Segments Corporate Items Consolidated (in thousands) Revenues: Merchandise sales $ 275,639 $ 70,547 $ — $ 346,186 $ — $ 346,186 Jewelry scrapping sales 28,357 9,516 — 37,873 — 37,873 Pawn service charges 184,658 59,640 — 244,298 — 244,298 Other revenues 125 134 4,274 4,533 — 4,533 Total revenues 488,779 139,837 4,274 632,890 — 632,890 Merchandise cost of goods sold 172,931 52,252 — 225,183 — 225,183 Jewelry scrapping cost of goods sold 23,680 8,968 — 32,648 — 32,648 Other cost of revenues — — 1,467 1,467 — 1,467 Net revenues 292,168 78,617 2,807 373,592 — 373,592 Segment and corporate expenses (income): Operations 200,884 54,703 6,169 261,756 — 261,756 Administrative — — — — 46,795 46,795 Depreciation and amortization 8,951 4,543 190 13,684 7,430 21,114 Loss on sale or disposal of assets and other 2,856 743 22 3,621 22 3,643 Interest expense — 1,570 280 1,850 25,362 27,212 Interest income — (1,226 ) — (1,226 ) (8,411 ) (9,637 ) Equity in net income of unconsolidated affiliates — — (632 ) (632 ) — (632 ) Impairment of investment in unconsolidated affiliates — — 19,725 19,725 — 19,725 Other (income) expense — (63 ) 290 227 (348 ) (121 ) Segment contribution (loss) $ 79,477 $ 18,347 $ (23,237 ) $ 74,587 Income from continuing operations before income taxes $ 74,587 $ (70,850 ) $ 3,737 Nine Months Ended June 30, 2018 U.S. Pawn Latin America Pawn Other Total Segments Corporate Items Consolidated (in thousands) Revenues: Merchandise sales $ 270,145 $ 63,125 $ — $ 333,270 $ — $ 333,270 Jewelry scrapping sales 34,515 9,651 — 44,166 — 44,166 Pawn service charges 174,180 48,417 — 222,597 — 222,597 Other revenues 205 588 5,354 6,147 — 6,147 Total revenues 479,045 121,781 5,354 606,180 — 606,180 Merchandise cost of goods sold 166,965 43,318 — 210,283 — 210,283 Jewelry scrapping cost of goods sold 28,683 8,853 — 37,536 — 37,536 Other cost of revenues — — 1,273 1,273 — 1,273 Net revenues 283,397 69,610 4,081 357,088 — 357,088 Segment and corporate expenses (income): Operations 196,635 44,847 7,276 248,758 — 248,758 Administrative — — — — 39,688 39,688 Depreciation and amortization 9,340 2,712 142 12,194 6,104 18,298 Loss on sale or disposal of assets and other 197 31 — 228 225 453 Interest expense — 6 — 6 19,064 19,070 Interest income — (2,072 ) — (2,072 ) (10,824 ) (12,896 ) Equity in net income of unconsolidated affiliates — — (3,477 ) (3,477 ) — (3,477 ) Other (income) expense (3 ) 11 (118 ) (110 ) (5,363 ) (5,473 ) Segment contribution $ 77,228 $ 24,075 $ 258 $ 101,561 Income from continuing operations before income taxes $ 101,561 $ (48,894 ) $ 52,667 |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Information | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION | NOTE 10: SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION AND OTHER Supplemental Consolidated Financial Information The following table provides supplemental information on net amounts included in our condensed consolidated balance sheets: June 30, 2019 June 30, 2018 September 30, 2018 (in thousands) Gross pawn service charges receivable $ 39,443 $ 36,079 $ 40,719 Allowance for uncollectible pawn service charges receivable (9,596 ) (9,640 ) (9,760 ) Pawn service charges receivable, net $ 29,847 $ 26,439 $ 30,959 Gross inventory $ 184,886 $ 160,159 $ 176,198 Inventory reserves (9,084 ) (9,014 ) (9,201 ) Inventory, net $ 175,802 $ 151,145 $ 166,997 Prepaid expenses and other $ 13,189 $ 10,836 $ 9,705 Accounts receivable and other 20,335 25,129 18,901 Income taxes receivable 3,841 — 2,031 Restricted cash — 252 267 2019 Convertible Notes Hedges — 7,491 2,552 Prepaid expenses and other current assets $ 37,365 $ 43,708 $ 33,456 Property and equipment, gross $ 260,216 $ 248,880 $ 253,022 Accumulated depreciation (194,002 ) (177,293 ) (179,373 ) Property and equipment, net $ 66,214 $ 71,587 $ 73,649 Accounts payable $ 18,329 $ 12,381 $ 10,500 Accrued expenses and other 41,652 49,214 47,458 Accounts payable, accrued expenses and other current liabilities $ 59,981 $ 61,595 $ 57,958 Jewelry Scrap Receivable In November 2018, our principal refiner that processed our scrap jewelry announced Chapter 11 bankruptcy restructuring proceedings in the U.S. As of June 30, 2019 , we had a reserve against receivables from this refiner of $3.6 million which is included in "Loss on sale or disposal of assets and other" and "Reserve on jewelry scrap receivable" in our condensed consolidated statements of operations and cash flows, respectively for the current year-to-date period. We continue to monitor the bankruptcy process and may record recoveries of such reserved amounts in a future period as we gather more information. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. Our management has included all adjustments it considers necessary for a fair presentation which are of a normal, recurring nature. All intercompany accounts and transactions have been eliminated in consolidation. The accompanying financial statements should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended September 30, 2018 and as corrected below. The balance sheet as of September 30, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. Our business is subject to seasonal variations, and operating results for the three and nine months ended June 30, 2019 and 2018 (the "current quarter" and "current year-to-date period" and "prior-year quarter" and "prior-year nine -months," respectively) are not necessarily indicative of the results of operations for the full fiscal year. There have been no changes in significant accounting policies as described in our Annual Report on Form 10-K for the year ended September 30, 2018 , other than those described below. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and judgments, including those related to revenue recognition, inventories, loan loss allowances, long-lived and intangible assets, share-based compensation, income taxes, contingencies and litigation. We base our estimates on historical experience, observable trends and various other assumptions that we believe are reasonable under the circumstances. We use this information to make judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates under different assumptions or conditions. |
Recently Issued Accounting Pronouncements and Significant Accounting Policies | Recently Issued Accounting Pronouncements • In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequently issued related ASUs, requires financial assets (or groups of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected, among other provisions. The provisions of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A reporting entity should generally apply the amendment on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting periods in which the amendment is effective. We have not identified any impacts to our financial statements that we believe will be material as a result of the adoption of the ASU, although we continue to evaluate the impact of adoption. We believe we are following an appropriate timeline to allow for proper recognition, presentation and disclosure upon adoption of this ASU which is effective for fiscal 2021. • In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This ASU requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. The provisions of this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted based upon guidance issued within the ASU. We are in the process of evaluating the impact of adopting ASU 2016-02 on our consolidated financial position, results of operations and cash flows, and anticipate a material impact on our consolidated financial position. Additionally, we are evaluating the disclosure requirements under this ASU and are identifying and preparing to implement changes to our accounting policies, practices and controls to support adoption of the ASU and have completed upgrades to our third-party software solution to support adoption. We will complete our implementation to allow for proper recognition, presentation and disclosure upon adoption of the ASU which is effective for fiscal 2020. We currently plan to adopt this ASU using the optional transition method provided under ASU 2018-11, Leases, (Topic 842): Targeted Improvement which was issued in July 2018, allowing for application of ASU 2016-02 at the adoption date. Please refer to Note 1 of Notes to Consolidated Financial Statements included in "Part II, Item 8 — Financial Statements and Supplementary Data" of our Annual Report on Form 10-K for the year ended September 30, 2018 for discussion of our significant accounting policies and other accounting pronouncements issued but not yet adopted. |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of impact of corrections on face statements | The impact of these corrections on the condensed consolidated financial statements is as follows (in thousands except per share amounts): Condensed Consolidated Balance Sheets June 30, 2018 As Previously Reported Corrections As Corrected Cash and cash equivalents $ 285,031 $ (538 ) $ 284,493 Pawn service charges receivable, net 33,388 (6,949 ) 26,439 Prepaid expenses and other current assets 43,448 260 43,708 Goodwill 292,544 1,791 294,335 Deferred tax asset, net 616 1,245 1,861 Accounts payable, accrued expenses and other current liabilities 61,813 (218 ) 61,595 Retained earnings 392,315 (4,301 ) 388,014 Accumulated other comprehensive loss (48,040 ) 328 (47,712 ) Condensed Consolidated Statements of Operations Three Months Ended June 30, 2018 As Previously Reported Corrections As Corrected Pawn service charges $ 72,874 $ (330 ) $ 72,544 Operations expense 83,032 (100 ) 82,932 Income from continuing operations before income taxes 15,736 (230 ) 15,506 Income tax expense 1,553 (51 ) 1,502 Income from continuing operations, net of tax 14,183 (179 ) 14,004 Basic earnings per share attributable to EZCORP, Inc. — continuing operations $ 0.27 $ (0.01 ) $ 0.26 Diluted earnings per share attributable to EZCORP, Inc. — continuing operations $ 0.25 $ — $ 0.25 Nine Months Ended June 30, 2018 As Previously Reported Corrections As Corrected Pawn service charges $ 223,601 $ (1,004 ) $ 222,597 Operations expense 248,802 (44 ) 248,758 Administrative expense 39,927 (239 ) 39,688 Income from continuing operations before income taxes 53,388 (721 ) 52,667 Income tax expense 14,911 (201 ) 14,710 Income from continuing operations, net of tax 38,477 (520 ) 37,957 Basic earnings per share attributable to EZCORP, Inc. — continuing operations $ 0.73 $ (0.01 ) $ 0.72 Diluted earnings per share attributable to EZCORP, Inc. — continuing operations $ 0.70 $ (0.01 ) $ 0.69 Condensed Consolidated Statements of Cash Flows Nine Months Ended June 30, 2018 As Previously Reported Corrections As Corrected Net income $ 37,846 $ (520 ) $ 37,326 Service charges and fees receivable 1,601 1,008 2,609 Accounts payable, accrued expenses and other liabilities (4,245 ) (379 ) (4,624 ) Income taxes, net of excess tax benefit from stock compensation 2,586 (167 ) 2,419 Net cash provided by operating activities* 69,379 (58 ) 69,321 Effect of exchange rate changes on cash and cash equivalents and restricted cash (1,541 ) 48 (1,493 ) * As previously reported amount includes the impact of adoption of accounting policies described below. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net components of basic and diluted earnings per share | Components of basic and diluted earnings per share and excluded antidilutive potential common shares are as follows: Three Months Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (in thousands, except per share amounts) Net income from continuing operations attributable to EZCORP (A) $ 3,361 $ 14,363 $ 3,590 $ 39,305 (Loss) income from discontinued operations, net of tax (B) (203 ) 91 (404 ) (631 ) Net income attributable to EZCORP (C) $ 3,158 $ 14,454 $ 3,186 $ 38,674 Weighted-average outstanding shares of common stock (D) 55,445 54,464 55,306 54,453 Dilutive effect of restricted stock and 2024 Convertible Notes* 42 3,490 21 2,627 Weighted-average common stock and common stock equivalents (E) 55,487 57,954 55,327 57,080 Basic earnings per share attributable to EZCORP: Continuing operations (A / D) $ 0.06 $ 0.26 $ 0.06 $ 0.72 Discontinued operations (B / D) — — — (0.01 ) Basic earnings per share (C / D) $ 0.06 $ 0.26 $ 0.06 $ 0.71 Diluted earnings per share attributable to EZCORP: Continuing operations (A / E) $ 0.06 $ 0.25 $ 0.06 $ 0.69 Discontinued operations (B / E) — — — (0.01 ) Diluted earnings per share (C / E) $ 0.06 $ 0.25 $ 0.06 $ 0.68 Potential common shares excluded from the calculation of diluted earnings per share above*: Restricted stock** 2,891 3,569 2,804 3,375 * See Note 6 for discussion of the terms and conditions of the potential impact of the 2019 Convertible Notes Warrants, 2024 Convertible Notes and 2025 Convertible Notes. ** Includes antidilutive share-based awards as well as performance-based and market conditioned share-based awards that are contingently issuable, but for which the condition for issuance has not been met as of the end of the reporting period. |
Strategic Investments (Tables)
Strategic Investments (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | The following tables present summary financial information for Cash Converters International’s most recently reported results after translation to U.S. dollars: December 31, 2018 2017 (in thousands) Current assets $ 172,836 $ 203,664 Non-current assets 151,492 151,189 Total assets $ 324,328 $ 354,853 Current liabilities $ 81,165 $ 128,731 Non-current liabilities 22,109 14,559 Shareholders’ equity 221,054 211,563 Total liabilities and shareholders’ equity $ 324,328 $ 354,853 Half-Year Ended December 31, 2018 2017 (in thousands) Gross revenues $ 99,390 $ 95,784 Gross profit 56,884 63,212 Net (loss) profit (3,791 ) 7,292 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial assets (liabilities) that are measured at fair value on a recurring basis | The tables below present our financial assets (liabilities) that were carried and measured at fair value on a recurring basis: Financial Assets (Liabilities) Balance Sheet Location June 30, 2019 June 30, 2018 September 30, 2018 (in thousands) 2019 Convertible Notes Hedges — Level 2 Prepaid expenses and other current assets $ — $ 7,491 $ 2,552 2019 Convertible Notes Embedded Derivative — Level 2 Current maturities of long-term debt, net — (7,491 ) (2,552 ) |
Financial assets, temporary equity, and liabilities not measured at fair value in the consolidated balance sheet | The tables below present our financial assets and liabilities that were not measured at fair value on a recurring basis: Carrying Value Estimated Fair Value June 30, 2019 June 30, 2019 Fair Value Measurement Using Level 1 Level 2 Level 3 (in thousands) Financial assets: Notes receivable from Grupo Finmart, net $ 18,744 $ 19,517 $ — $ — $ 19,517 Zero-coupon convertible promissory note due January 2021 7,226 7,226 — — 7,226 2.89% promissory note receivable due April 2024 1,108 1,108 — — 1,108 Investments in unconsolidated affiliates 30,922 27,158 24,464 — 2,694 Financial liabilities: 2024 Convertible Notes $ 109,909 $ 161,719 $ — $ 161,719 $ — 2025 Convertible Notes 124,542 159,873 — 159,873 — 8.5% unsecured debt due 2024 1,148 1,148 — — 1,148 CASHMAX secured borrowing facility 65 804 — — 804 Carrying Value Estimated Fair Value June 30, 2018 June 30, 2018 Fair Value Measurement Using Level 1 Level 2 Level 3 (in thousands) Financial assets: Notes receivable from Grupo Finmart, net $ 51,338 $ 57,116 $ — $ — $ 57,116 Investments in unconsolidated affiliates 61,056 49,205 49,205 — — Financial liabilities: 2019 Convertible Notes $ 184,823 $ 197,925 $ — $ 197,925 $ — 2024 Convertible Notes 104,562 195,974 — 195,974 — 2025 Convertible Notes 118,335 168,464 — 168,464 — Carrying Value Estimated Fair Value September 30, 2018 September 30, 2018 Fair Value Measurement Using Level 1 Level 2 Level 3 (in thousands) Financial assets: Notes receivable from Grupo Finmart, net $ 37,425 $ 41,153 $ — $ — $ 41,153 Investments in unconsolidated affiliates 49,500 49,500 49,500 — — Financial liabilities: 2019 Convertible Notes $ 187,433 $ 189,150 $ — $ 189,150 $ — 2024 Convertible Notes 105,858 180,399 — 180,399 — 2025 Convertible Notes 119,736 161,253 — 161,253 — 8.5% unsecured debt due 2024 1,304 1,304 — — 1,304 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long term debt instruments | The following tables present our debt instruments outstanding as well as future principal payments due, contractual maturities and interest expense: June 30, 2019 June 30, 2018 September 30, 2018 Gross Amount Debt Discount and Issuance Costs Carrying Amount Gross Amount Debt Discount and Issuance Costs Carrying Amount Gross Amount Debt Discount and Issuance Costs Carrying Amount (in thousands) 2019 Convertible Notes $ — $ — $ — $ 195,000 $ (10,177 ) $ 184,823 $ 195,000 $ (7,567 ) $ 187,433 2019 Convertible Notes Embedded Derivative — — — 7,491 — 7,491 2,552 — 2,552 2024 Convertible Notes 143,750 (33,841 ) 109,909 143,750 (39,188 ) 104,562 143,750 (37,892 ) 105,858 2025 Convertible Notes 172,500 (47,958 ) 124,542 172,500 (54,165 ) 118,335 172,500 (52,764 ) 119,736 8.5% unsecured debt due 2024* 1,148 — 1,148 — — — 1,304 — 1,304 Other debt — — — 3,482 — 3,482 — — — CASHMAX secured borrowing facility* 804 (739 ) 65 — — — — — — Total $ 318,202 $ (82,538 ) $ 235,664 $ 522,223 $ (103,530 ) $ 418,693 $ 515,106 $ (98,223 ) $ 416,883 Less current portion 215 — 215 205,973 (10,177 ) 195,796 197,748 (7,567 ) 190,181 Total long-term debt $ 317,987 $ (82,538 ) $ 235,449 $ 316,250 $ (93,353 ) $ 222,897 $ 317,358 $ (90,656 ) $ 226,702 * Amount translated from Guatemalan quetzals and Canadian dollars as of applicable period end. Certain disclosures omitted due to materiality considerations. |
Principal payment schedule | Schedule of Contractual Maturities Total Less Than 1 Year 1 - 3 Years 3 - 5 Years More Than 5 Years (in thousands) 2024 Convertible Notes* 143,750 — — 143,750 — 2025 Convertible Notes* 172,500 — — 172,500 — 8.5% unsecured debt due 2024 1,148 215 430 430 73 CASHMAX secured borrowing facility 804 — 804 — — $ 318,202 $ 215 $ 1,234 $ 316,680 $ 73 * Excludes the potential impact of embedded derivatives. |
Schedule of Interest Expense | * |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Operating segment information | Three Months Ended June 30, 2019 U.S. Pawn Latin America Pawn Other Total Segments Corporate Items Consolidated (in thousands) Revenues: Merchandise sales $ 83,904 $ 19,998 $ — $ 103,902 $ — $ 103,902 Jewelry scrapping sales 13,889 4,323 — 18,212 — 18,212 Pawn service charges 58,635 20,345 — 78,980 — 78,980 Other revenues 34 67 1,270 1,371 — 1,371 Total revenues 156,462 44,733 1,270 202,465 — 202,465 Merchandise cost of goods sold 52,855 17,416 — 70,271 — 70,271 Jewelry scrapping cost of goods sold 11,599 4,166 — 15,765 — 15,765 Other cost of revenues — — 576 576 — 576 Net revenues 92,008 23,151 694 115,853 — 115,853 Segment and corporate expenses (income): Operations 65,449 18,284 994 84,727 — 84,727 Administrative — — — — 15,053 15,053 Depreciation and amortization 2,934 1,626 72 4,632 2,622 7,254 Loss (gain) on sale or disposal of assets and other 4 (8 ) 6 2 22 24 Interest expense — 1,491 76 1,567 8,265 9,832 Interest income — (376 ) — (376 ) (2,796 ) (3,172 ) Equity in net income of unconsolidated affiliates — — (1,320 ) (1,320 ) — (1,320 ) Other (income) expense — 34 6 40 (44 ) (4 ) Segment contribution $ 23,621 $ 2,100 $ 860 $ 26,581 Income from continuing operations before income taxes $ 26,581 $ (23,122 ) $ 3,459 Three Months Ended June 30, 2018 U.S. Pawn Latin America Pawn Other Total Segments Corporate Items Consolidated (in thousands) Revenues: Merchandise sales $ 83,898 $ 20,839 $ — $ 104,737 $ — $ 104,737 Jewelry scrapping sales 17,813 2,615 — 20,428 — 20,428 Pawn service charges 55,536 17,008 — 72,544 — 72,544 Other revenues 55 245 1,603 1,903 — 1,903 Total revenues 157,302 40,707 1,603 199,612 — 199,612 Merchandise cost of goods sold 52,340 14,556 — 66,896 — 66,896 Jewelry scrapping cost of goods sold 15,329 2,296 — 17,625 — 17,625 Other cost of revenues — — 349 349 — 349 Net revenues 89,633 23,855 1,254 114,742 — 114,742 Segment and corporate expenses (income): Operations 65,257 14,997 2,678 82,932 — 82,932 Administrative — — — — 13,268 13,268 Depreciation and amortization 3,010 951 48 4,009 2,115 6,124 Loss on sale or disposal of assets and other 74 26 — 100 214 314 Interest expense — 3 — 3 7,391 7,394 Interest income — (672 ) — (672 ) (3,686 ) (4,358 ) Equity in net income of unconsolidated affiliates — — (1,151 ) (1,151 ) — (1,151 ) O ther income — (103 ) — (103 ) (5,184 ) (5,287 ) Segment contribution (loss) $ 21,292 $ 8,653 $ (321 ) $ 29,624 Income from continuing operations before income taxes $ 29,624 $ (14,118 ) $ 15,506 Nine Months Ended June 30, 2019 U.S. Pawn Latin America Pawn Other Total Segments Corporate Items Consolidated (in thousands) Revenues: Merchandise sales $ 275,639 $ 70,547 $ — $ 346,186 $ — $ 346,186 Jewelry scrapping sales 28,357 9,516 — 37,873 — 37,873 Pawn service charges 184,658 59,640 — 244,298 — 244,298 Other revenues 125 134 4,274 4,533 — 4,533 Total revenues 488,779 139,837 4,274 632,890 — 632,890 Merchandise cost of goods sold 172,931 52,252 — 225,183 — 225,183 Jewelry scrapping cost of goods sold 23,680 8,968 — 32,648 — 32,648 Other cost of revenues — — 1,467 1,467 — 1,467 Net revenues 292,168 78,617 2,807 373,592 — 373,592 Segment and corporate expenses (income): Operations 200,884 54,703 6,169 261,756 — 261,756 Administrative — — — — 46,795 46,795 Depreciation and amortization 8,951 4,543 190 13,684 7,430 21,114 Loss on sale or disposal of assets and other 2,856 743 22 3,621 22 3,643 Interest expense — 1,570 280 1,850 25,362 27,212 Interest income — (1,226 ) — (1,226 ) (8,411 ) (9,637 ) Equity in net income of unconsolidated affiliates — — (632 ) (632 ) — (632 ) Impairment of investment in unconsolidated affiliates — — 19,725 19,725 — 19,725 Other (income) expense — (63 ) 290 227 (348 ) (121 ) Segment contribution (loss) $ 79,477 $ 18,347 $ (23,237 ) $ 74,587 Income from continuing operations before income taxes $ 74,587 $ (70,850 ) $ 3,737 Nine Months Ended June 30, 2018 U.S. Pawn Latin America Pawn Other Total Segments Corporate Items Consolidated (in thousands) Revenues: Merchandise sales $ 270,145 $ 63,125 $ — $ 333,270 $ — $ 333,270 Jewelry scrapping sales 34,515 9,651 — 44,166 — 44,166 Pawn service charges 174,180 48,417 — 222,597 — 222,597 Other revenues 205 588 5,354 6,147 — 6,147 Total revenues 479,045 121,781 5,354 606,180 — 606,180 Merchandise cost of goods sold 166,965 43,318 — 210,283 — 210,283 Jewelry scrapping cost of goods sold 28,683 8,853 — 37,536 — 37,536 Other cost of revenues — — 1,273 1,273 — 1,273 Net revenues 283,397 69,610 4,081 357,088 — 357,088 Segment and corporate expenses (income): Operations 196,635 44,847 7,276 248,758 — 248,758 Administrative — — — — 39,688 39,688 Depreciation and amortization 9,340 2,712 142 12,194 6,104 18,298 Loss on sale or disposal of assets and other 197 31 — 228 225 453 Interest expense — 6 — 6 19,064 19,070 Interest income — (2,072 ) — (2,072 ) (10,824 ) (12,896 ) Equity in net income of unconsolidated affiliates — — (3,477 ) (3,477 ) — (3,477 ) Other (income) expense (3 ) 11 (118 ) (110 ) (5,363 ) (5,473 ) Segment contribution $ 77,228 $ 24,075 $ 258 $ 101,561 Income from continuing operations before income taxes $ 101,561 $ (48,894 ) $ 52,667 |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Information on accounts receivable, net, inventories, net, property and equipment, net | The following table provides supplemental information on net amounts included in our condensed consolidated balance sheets: June 30, 2019 June 30, 2018 September 30, 2018 (in thousands) Gross pawn service charges receivable $ 39,443 $ 36,079 $ 40,719 Allowance for uncollectible pawn service charges receivable (9,596 ) (9,640 ) (9,760 ) Pawn service charges receivable, net $ 29,847 $ 26,439 $ 30,959 Gross inventory $ 184,886 $ 160,159 $ 176,198 Inventory reserves (9,084 ) (9,014 ) (9,201 ) Inventory, net $ 175,802 $ 151,145 $ 166,997 Prepaid expenses and other $ 13,189 $ 10,836 $ 9,705 Accounts receivable and other 20,335 25,129 18,901 Income taxes receivable 3,841 — 2,031 Restricted cash — 252 267 2019 Convertible Notes Hedges — 7,491 2,552 Prepaid expenses and other current assets $ 37,365 $ 43,708 $ 33,456 Property and equipment, gross $ 260,216 $ 248,880 $ 253,022 Accumulated depreciation (194,002 ) (177,293 ) (179,373 ) Property and equipment, net $ 66,214 $ 71,587 $ 73,649 Accounts payable $ 18,329 $ 12,381 $ 10,500 Accrued expenses and other 41,652 49,214 47,458 Accounts payable, accrued expenses and other current liabilities $ 59,981 $ 61,595 $ 57,958 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | Oct. 01, 2017USD ($) |
Accounting Policies [Abstract] | |
Overstatement of prior retained earnings | $ 3.8 |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Impact of Corrections on Face Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Cash and cash equivalents | $ 138,922 | $ 284,493 | $ 138,922 | $ 284,493 | $ 285,311 | ||||
Pawn service charges receivable, net | 29,847 | 26,439 | 29,847 | 26,439 | 30,959 | ||||
Prepaid expenses and other current assets | 37,365 | 43,708 | 37,365 | 43,708 | 33,456 | ||||
Goodwill | 300,700 | 294,335 | 300,700 | 294,335 | 299,248 | ||||
Deferred tax asset, net | 1,861 | 1,861 | |||||||
Accounts payable, accrued expenses and other current liabilities | 59,981 | 61,595 | 59,981 | 61,595 | 57,958 | ||||
Retained earnings | 389,808 | 388,014 | 389,808 | 388,014 | 386,622 | ||||
Accumulated other comprehensive loss | (47,926) | (47,712) | (47,926) | (47,712) | $ (42,356) | ||||
Pawn service charges | 72,544 | 222,597 | |||||||
Operations expense | 84,727 | 82,932 | 261,756 | 248,758 | |||||
Administrative expense | 15,053 | 13,268 | 46,795 | 39,688 | |||||
Loss from continuing operations before income taxes | 3,459 | 15,506 | 3,737 | 52,667 | |||||
Income tax expense | 98 | 1,502 | 1,377 | 14,710 | |||||
Loss from continuing operations, net of tax | $ 3,361 | $ 14,004 | $ 2,360 | $ 37,957 | |||||
Basic earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share) | $ 0.06 | $ 0.26 | $ 0.06 | $ 0.72 | |||||
Diluted earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share) | $ 0.06 | $ 0.25 | $ 0.06 | $ 0.69 | |||||
Net income | $ 3,158 | $ 2,641 | $ (3,843) | $ 14,095 | $ 11,207 | $ 12,024 | $ 1,956 | $ 37,326 | |
Service charges and fees receivable | 1,301 | 2,609 | |||||||
Accounts payable, accrued expenses and other liabilities | (1,477) | (4,624) | |||||||
Income taxes, net of excess tax benefit from stock compensation | (5,527) | 2,419 | |||||||
Net cash provided by operating activities | 64,977 | 69,321 | |||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | $ (294) | (1,493) | |||||||
As Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Cash and cash equivalents | 285,031 | 285,031 | |||||||
Pawn service charges receivable, net | 33,388 | 33,388 | |||||||
Prepaid expenses and other current assets | 43,448 | 43,448 | |||||||
Goodwill | 292,544 | 292,544 | |||||||
Deferred tax asset, net | 616 | 616 | |||||||
Accounts payable, accrued expenses and other current liabilities | 61,813 | 61,813 | |||||||
Retained earnings | 392,315 | 392,315 | |||||||
Accumulated other comprehensive loss | (48,040) | (48,040) | |||||||
Pawn service charges | 72,874 | 223,601 | |||||||
Operations expense | 83,032 | 248,802 | |||||||
Administrative expense | 39,927 | ||||||||
Loss from continuing operations before income taxes | 15,736 | 53,388 | |||||||
Income tax expense | 1,553 | 14,911 | |||||||
Loss from continuing operations, net of tax | $ 14,183 | $ 38,477 | |||||||
Basic earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share) | $ 0.27 | $ 0.73 | |||||||
Diluted earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share) | $ 0.25 | $ 0.70 | |||||||
Net income | $ 37,846 | ||||||||
Service charges and fees receivable | 1,601 | ||||||||
Accounts payable, accrued expenses and other liabilities | (4,245) | ||||||||
Income taxes, net of excess tax benefit from stock compensation | 2,586 | ||||||||
Net cash provided by operating activities | 69,379 | ||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (1,541) | ||||||||
Corrections | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Cash and cash equivalents | $ (538) | (538) | |||||||
Pawn service charges receivable, net | (6,949) | (6,949) | |||||||
Prepaid expenses and other current assets | 260 | 260 | |||||||
Goodwill | 1,791 | 1,791 | |||||||
Deferred tax asset, net | 1,245 | 1,245 | |||||||
Accounts payable, accrued expenses and other current liabilities | (218) | (218) | |||||||
Retained earnings | (4,301) | (4,301) | |||||||
Accumulated other comprehensive loss | 328 | 328 | |||||||
Pawn service charges | (330) | (1,004) | |||||||
Operations expense | (100) | (44) | |||||||
Administrative expense | (239) | ||||||||
Loss from continuing operations before income taxes | (230) | (721) | |||||||
Income tax expense | (51) | (201) | |||||||
Loss from continuing operations, net of tax | $ (179) | $ (520) | |||||||
Basic earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share) | $ (0.01) | $ (0.01) | |||||||
Diluted earnings per share attributable to EZCORP, Inc. — continuing operations (usd per share) | $ 0 | $ (0.01) | |||||||
Net income | $ (520) | ||||||||
Service charges and fees receivable | 1,008 | ||||||||
Accounts payable, accrued expenses and other liabilities | (379) | ||||||||
Income taxes, net of excess tax benefit from stock compensation | (167) | ||||||||
Net cash provided by operating activities | (58) | ||||||||
Effect of exchange rate changes on cash and cash equivalents and restricted cash | $ 48 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | Oct. 06, 2017USD ($)store | Jun. 30, 2019USD ($)store | Dec. 31, 2018USD ($)store | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 300,700 | $ 299,248 | $ 294,335 | ||
Metro Pawn | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 7 | ||||
Payments to acquire businesses | $ 7,000 | ||||
Goodwill | $ 3,600 | ||||
Pawn Stores, Mexico in 2019 | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 5 | ||||
Payments to acquire businesses | $ 300 | ||||
Goodwill | $ 100 | ||||
GPMX | |||||
Business Acquisition [Line Items] | |||||
Number of stores acquired | store | 112 | ||||
Percentage of voting interests acquired | 100.00% | ||||
Aggregate purchase price for acquisition | $ 61,700 | ||||
Montepio San Patricio And Presta Dinero | |||||
Business Acquisition [Line Items] | |||||
Increase in deferred tax assets with offsetting goodwill reduction | $ 1,800 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income from continuing operations attributable to EZCORP | $ 3,361 | $ 14,363 | $ 3,590 | $ 39,305 |
(Loss) income from discontinued operations, net of tax | (203) | 91 | (404) | (631) |
Net income attributable to EZCORP, Inc. | $ 3,158 | $ 14,454 | $ 3,186 | $ 38,674 |
Weighted average outstanding shares of common stock (shares) | 55,445 | 54,464 | 55,306 | 54,453 |
Dilutive effect of restricted stock and 2024 Convertible Notes (shares) | 42 | 3,490 | 21 | 2,627 |
Weighted average common stock and common stock equivalents (shares) | 55,487 | 57,954 | 55,327 | 57,080 |
Basic earnings per share attributable to EZCORP: | ||||
Continuing operations (in dollars per share) | $ 0.06 | $ 0.26 | $ 0.06 | $ 0.72 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) |
Basic earnings per share (in dollars per share) | 0.06 | 0.26 | 0.06 | 0.71 |
Diluted earnings per share attributable to EZCORP: | ||||
Continuing operations (in dollars per share) | 0.06 | 0.25 | 0.06 | 0.69 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) |
Diluted earnings per share (in dollars per share) | $ 0.06 | $ 0.25 | $ 0.06 | $ 0.68 |
Potential common shares excluded from the calculation of diluted EPS, restricted stock (shares) | 2,891 | 3,569 | 2,804 | 3,375 |
Strategic Investments - Additio
Strategic Investments - Additional Disclosures (Details) - Cash Converters International Limited - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Number of common shares owned (shares) | 214,183,714 | ||
Percentage of common shares owned | 34.75% | ||
Other than temporary impairment, before taxes | $ 6.5 | $ 13.3 | |
Other than temporary impairment, net of taxes | $ 5 | $ 10.3 | |
Impairment of investment, not other-than-temporary | $ 3.8 |
Strategic Investments - Summari
Strategic Investments - Summarized Financial Information (Details) - Cash Converters International Limited - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of financial information for Cash Converters International Limited | ||
Current assets | $ 172,836 | $ 203,664 |
Non-current assets | 151,492 | 151,189 |
Total assets | 324,328 | 354,853 |
Current liabilities | 81,165 | 128,731 |
Non-current liabilities | 22,109 | 14,559 |
Shareholders’ equity | 221,054 | 211,563 |
Total liabilities and shareholders’ equity | 324,328 | 354,853 |
Gross revenues | 99,390 | 95,784 |
Gross profit | 56,884 | 63,212 |
Net (loss) profit | $ (3,791) | $ 7,292 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - Level 2 - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Prepaid expenses and other current assets | 2019 Convertible Notes Hedges — Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | $ 0 | $ 2,552 | $ 7,491 |
Current maturities of long-term debt, net | 2019 Convertible Notes Embedded Derivative — Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative liability | $ 0 | $ (2,552) | $ (7,491) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Apr. 30, 2019USD ($) | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value of interest in variable interest entity | $ 2,800,000 | $ 2,800,000 | ||||
Loss on deconsolidation | 300,000 | |||||
Proceeds from escrowed seller funds | $ 1,100,000 | |||||
2019 Convertible Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Stated interest rate | 2.125% | |||||
Zero-coupon convertible promissory note due January 2021 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Convertible promissory note, face value | $ 9,100,000 | |||||
Interest in VIE available upon triggering event | 10.00% | |||||
Note receivable, fair value | $ 6,800,000 | $ 6,800,000 | ||||
2.89% secured promissory note due April 2024 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Note receivable, fair value | $ 1,100,000 | |||||
Interest on note receivable | 2.89% | 2.89% | ||||
Forecast | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest in VIE available upon non-triggering event | 43.00% | |||||
Price of additional interest in VIE | $ 1 | |||||
Retained Investment in Subsidiary | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Interest in variable interest entity | 5.00% | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Grupo Finmart | Notes Receivable | Discount Rate | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Measurement input of note receivable | 0.07 | 0.07 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Mar. 31, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | |
Notes receivable from Grupo Finmart, net | Carrying Value | ||||
Financial assets: | ||||
Financial assets | $ 18,744 | $ 37,425 | $ 51,338 | |
Notes receivable from Grupo Finmart, net | Estimated Fair Value | ||||
Financial assets: | ||||
Financial assets | 19,517 | 41,153 | 57,116 | |
Notes receivable from Grupo Finmart, net | Estimated Fair Value | Level 1 | ||||
Financial assets: | ||||
Financial assets | 0 | 0 | 0 | |
Notes receivable from Grupo Finmart, net | Estimated Fair Value | Level 2 | ||||
Financial assets: | ||||
Financial assets | 0 | 0 | 0 | |
Notes receivable from Grupo Finmart, net | Estimated Fair Value | Level 3 | ||||
Financial assets: | ||||
Financial assets | 19,517 | 41,153 | 57,116 | |
Zero-coupon convertible promissory note due January 2021 | Carrying Value | ||||
Financial assets: | ||||
Financial assets | 7,226 | |||
Zero-coupon convertible promissory note due January 2021 | Estimated Fair Value | ||||
Financial assets: | ||||
Financial assets | 7,226 | |||
Zero-coupon convertible promissory note due January 2021 | Estimated Fair Value | Level 1 | ||||
Financial assets: | ||||
Financial assets | 0 | |||
Zero-coupon convertible promissory note due January 2021 | Estimated Fair Value | Level 2 | ||||
Financial assets: | ||||
Financial assets | 0 | |||
Zero-coupon convertible promissory note due January 2021 | Estimated Fair Value | Level 3 | ||||
Financial assets: | ||||
Financial assets | $ 7,226 | |||
2.89% promissory note receivable due April 2024 | ||||
Financial liabilities: | ||||
Interest on note receivable | 2.89% | 2.89% | ||
2.89% promissory note receivable due April 2024 | Carrying Value | ||||
Financial assets: | ||||
Financial assets | $ 1,108 | |||
2.89% promissory note receivable due April 2024 | Estimated Fair Value | ||||
Financial assets: | ||||
Financial assets | 1,108 | |||
2.89% promissory note receivable due April 2024 | Estimated Fair Value | Level 1 | ||||
Financial assets: | ||||
Financial assets | 0 | |||
2.89% promissory note receivable due April 2024 | Estimated Fair Value | Level 2 | ||||
Financial assets: | ||||
Financial assets | 0 | |||
2.89% promissory note receivable due April 2024 | Estimated Fair Value | Level 3 | ||||
Financial assets: | ||||
Financial assets | 1,108 | |||
Investments in unconsolidated affiliates | Carrying Value | ||||
Financial assets: | ||||
Financial assets | 30,922 | 49,500 | 61,056 | |
Investments in unconsolidated affiliates | Estimated Fair Value | ||||
Financial assets: | ||||
Financial assets | 27,158 | 49,500 | 49,205 | |
Investments in unconsolidated affiliates | Estimated Fair Value | Level 1 | ||||
Financial assets: | ||||
Financial assets | 24,464 | 49,500 | 49,205 | |
Investments in unconsolidated affiliates | Estimated Fair Value | Level 2 | ||||
Financial assets: | ||||
Financial assets | 0 | 0 | 0 | |
Investments in unconsolidated affiliates | Estimated Fair Value | Level 3 | ||||
Financial assets: | ||||
Financial assets | 2,694 | 0 | 0 | |
2019 Convertible Notes | Carrying Value | ||||
Financial liabilities: | ||||
Financial liabilities | 187,433 | 184,823 | ||
2019 Convertible Notes | Estimated Fair Value | ||||
Financial liabilities: | ||||
Financial liabilities | 189,150 | 197,925 | ||
2019 Convertible Notes | Estimated Fair Value | Level 1 | ||||
Financial liabilities: | ||||
Financial liabilities | 0 | 0 | ||
2019 Convertible Notes | Estimated Fair Value | Level 2 | ||||
Financial liabilities: | ||||
Financial liabilities | 189,150 | 197,925 | ||
2019 Convertible Notes | Estimated Fair Value | Level 3 | ||||
Financial liabilities: | ||||
Financial liabilities | 0 | 0 | ||
2024 Convertible Notes | Carrying Value | ||||
Financial liabilities: | ||||
Financial liabilities | 109,909 | 105,858 | 104,562 | |
2024 Convertible Notes | Estimated Fair Value | ||||
Financial liabilities: | ||||
Financial liabilities | 161,719 | 180,399 | 195,974 | |
2024 Convertible Notes | Estimated Fair Value | Level 1 | ||||
Financial liabilities: | ||||
Financial liabilities | 0 | 0 | 0 | |
2024 Convertible Notes | Estimated Fair Value | Level 2 | ||||
Financial liabilities: | ||||
Financial liabilities | 161,719 | 180,399 | 195,974 | |
2024 Convertible Notes | Estimated Fair Value | Level 3 | ||||
Financial liabilities: | ||||
Financial liabilities | 0 | 0 | 0 | |
2025 Convertible Notes | Carrying Value | ||||
Financial liabilities: | ||||
Financial liabilities | 124,542 | 119,736 | ||
2025 Convertible Notes | Estimated Fair Value | ||||
Financial liabilities: | ||||
Financial liabilities | 159,873 | 161,253 | 168,464 | |
2025 Convertible Notes | Estimated Fair Value | Level 1 | ||||
Financial liabilities: | ||||
Financial liabilities | 0 | 0 | 0 | |
2025 Convertible Notes | Estimated Fair Value | Level 2 | ||||
Financial liabilities: | ||||
Financial liabilities | 159,873 | 161,253 | 168,464 | |
2025 Convertible Notes | Estimated Fair Value | Level 3 | ||||
Financial liabilities: | ||||
Financial liabilities | $ 0 | 0 | $ 0 | |
8.5% unsecured debt due 2024 | ||||
Financial liabilities: | ||||
Stated interest rate | 8.50% | |||
8.5% unsecured debt due 2024 | Carrying Value | ||||
Financial liabilities: | ||||
Financial liabilities | $ 1,148 | 1,304 | ||
8.5% unsecured debt due 2024 | Estimated Fair Value | ||||
Financial liabilities: | ||||
Financial liabilities | 1,148 | 1,304 | ||
8.5% unsecured debt due 2024 | Estimated Fair Value | Level 1 | ||||
Financial liabilities: | ||||
Financial liabilities | 0 | 0 | ||
8.5% unsecured debt due 2024 | Estimated Fair Value | Level 2 | ||||
Financial liabilities: | ||||
Financial liabilities | 0 | 0 | ||
8.5% unsecured debt due 2024 | Estimated Fair Value | Level 3 | ||||
Financial liabilities: | ||||
Financial liabilities | 1,148 | $ 1,304 | ||
CASHMAX secured borrowing facility | Carrying Value | ||||
Financial liabilities: | ||||
Financial liabilities | 65 | |||
CASHMAX secured borrowing facility | Estimated Fair Value | ||||
Financial liabilities: | ||||
Financial liabilities | 804 | |||
CASHMAX secured borrowing facility | Estimated Fair Value | Level 1 | ||||
Financial liabilities: | ||||
Financial liabilities | 0 | |||
CASHMAX secured borrowing facility | Estimated Fair Value | Level 2 | ||||
Financial liabilities: | ||||
Financial liabilities | 0 | |||
CASHMAX secured borrowing facility | Estimated Fair Value | Level 3 | ||||
Financial liabilities: | ||||
Financial liabilities | $ 804 |
Debt - Outstanding Obligations
Debt - Outstanding Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | May 14, 2018 | Jul. 31, 2017 | Jun. 30, 2014 |
Gross Amount | ||||||
Total | $ 318,202 | $ 515,106 | $ 522,223 | |||
Less current portion | 215 | 197,748 | 205,973 | |||
Total long-term debt | 317,987 | 317,358 | 316,250 | |||
Debt Discount and Issuance Costs | ||||||
Total | (82,538) | (98,223) | (103,530) | |||
Less current portion | 0 | (7,567) | (10,177) | |||
Total long-term debt | (82,538) | (90,656) | (93,353) | |||
Long-term Debt, Current Maturities [Abstract] | ||||||
Carrying Amount | 235,664 | 416,883 | 418,693 | |||
Current maturities of long-term debt, net | 215 | 190,181 | 195,796 | |||
Total long-term debt | 235,449 | 226,702 | 222,897 | |||
2019 Convertible Notes | ||||||
Long-term Debt, Current Maturities [Abstract] | ||||||
Stated interest rate | 2.125% | |||||
2024 Convertible Notes | ||||||
Long-term Debt, Current Maturities [Abstract] | ||||||
Stated interest rate | 2.875% | |||||
Other debt | ||||||
Gross Amount | ||||||
Total | 0 | 0 | 3,482 | |||
Debt Discount and Issuance Costs | ||||||
Total | 0 | 0 | 0 | |||
Long-term Debt, Current Maturities [Abstract] | ||||||
Carrying Amount | 0 | 0 | 3,482 | |||
Senior Notes | 2019 Convertible Notes | ||||||
Gross Amount | ||||||
Total | 0 | 195,000 | 195,000 | |||
Debt Discount and Issuance Costs | ||||||
Total | 0 | (7,567) | (10,177) | |||
Long-term Debt, Current Maturities [Abstract] | ||||||
Carrying Amount | 0 | 187,433 | 184,823 | |||
Senior Notes | 2019 Convertible Notes Embedded Derivative | ||||||
Gross Amount | ||||||
Total | 0 | 2,552 | 7,491 | |||
Debt Discount and Issuance Costs | ||||||
Total | 0 | 0 | 0 | |||
Long-term Debt, Current Maturities [Abstract] | ||||||
Carrying Amount | 0 | 2,552 | 7,491 | |||
Senior Notes | 2024 Convertible Notes | ||||||
Gross Amount | ||||||
Total | 143,750 | 143,750 | 143,750 | |||
Debt Discount and Issuance Costs | ||||||
Total | (33,841) | (37,892) | (39,188) | |||
Long-term Debt, Current Maturities [Abstract] | ||||||
Carrying Amount | 109,909 | 105,858 | 104,562 | |||
Senior Notes | 2025 Convertible Notes | ||||||
Gross Amount | ||||||
Total | 172,500 | 172,500 | 172,500 | |||
Debt Discount and Issuance Costs | ||||||
Total | (47,958) | (52,764) | (54,165) | |||
Long-term Debt, Current Maturities [Abstract] | ||||||
Carrying Amount | 124,542 | 119,736 | 118,335 | |||
Stated interest rate | 2.375% | |||||
Unsecured Debt | 8.5% unsecured debt due 2024 | ||||||
Gross Amount | ||||||
Total | 1,148 | 1,304 | 0 | |||
Debt Discount and Issuance Costs | ||||||
Total | 0 | 0 | 0 | |||
Long-term Debt, Current Maturities [Abstract] | ||||||
Carrying Amount | $ 1,148 | 1,304 | 0 | |||
Stated interest rate | 8.50% | |||||
Receivables Securitization Facility | CASHMAX secured borrowing facility | ||||||
Gross Amount | ||||||
Total | $ 804 | 0 | 0 | |||
Debt Discount and Issuance Costs | ||||||
Total | (739) | 0 | 0 | |||
Long-term Debt, Current Maturities [Abstract] | ||||||
Carrying Amount | $ 65 | $ 0 | $ 0 |
Debt - Principal Payments (Deta
Debt - Principal Payments (Details) - USD ($) | Jun. 30, 2019 | May 14, 2018 | Jul. 31, 2017 |
Debt Instrument [Line Items] | |||
Total | $ 318,202,000 | ||
Less Than 1 Year | 215,000 | ||
1 - 3 Years | 1,234,000 | ||
3 - 5 Years | 316,680,000 | ||
More Than 5 Years | 73,000 | ||
2024 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Total | $ 143,750,000 | ||
Stated interest rate | 2.875% | ||
Senior Notes | 2024 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Total | 143,750,000 | ||
Less Than 1 Year | 0 | ||
1 - 3 Years | 0 | ||
3 - 5 Years | 143,750,000 | ||
More Than 5 Years | 0 | ||
Senior Notes | 2025 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Total | 172,500,000 | $ 172,500,000 | |
Less Than 1 Year | 0 | ||
1 - 3 Years | 0 | ||
3 - 5 Years | 172,500,000 | ||
More Than 5 Years | 0 | ||
Stated interest rate | 2.375% | ||
Unsecured Debt | 8.5% unsecured debt due 2024 | |||
Debt Instrument [Line Items] | |||
Total | 1,148,000 | ||
Less Than 1 Year | 215,000 | ||
1 - 3 Years | 430,000 | ||
3 - 5 Years | 430,000 | ||
More Than 5 Years | $ 73,000 | ||
Stated interest rate | 8.50% | ||
Receivables Securitization Facility | CASHMAX secured borrowing facility | |||
Debt Instrument [Line Items] | |||
Total | $ 804,000 | ||
Less Than 1 Year | 0 | ||
1 - 3 Years | 804,000 | ||
3 - 5 Years | 0 | ||
More Than 5 Years | $ 0 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - Senior Notes - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Convertible Notes, Due 2019 | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 896 | $ 1,069 | $ 3,034 | $ 3,207 |
Amortization of debt discount and deferred financing costs | 2,314 | 2,527 | 7,567 | 7,470 |
Total interest expense | 3,210 | 3,596 | 10,601 | 10,677 |
2024 Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 1,033 | 1,033 | 3,099 | 3,099 |
Amortization of debt discount and deferred financing costs | 1,376 | 1,275 | 4,051 | 3,756 |
Total interest expense | 2,409 | 2,308 | 7,150 | 6,855 |
2025 Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 1,024 | 535 | 3,072 | 535 |
Amortization of debt discount and deferred financing costs | 1,630 | 836 | 4,806 | 836 |
Total interest expense | $ 2,654 | $ 1,371 | $ 7,878 | $ 1,371 |
Debt - Additional Information (
Debt - Additional Information (Details) $ / shares in Units, shares in Millions | May 14, 2018USD ($)day$ / shares | Jul. 31, 2017USD ($)$ / shares | Jul. 31, 2014USD ($) | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 15, 2019USD ($) | Nov. 30, 2018CAD ($) | Oct. 01, 2018$ / shares | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) |
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 318,202,000 | $ 318,202,000 | |||||||||
Share price (usd per share) | $ / shares | $ 10.51 | ||||||||||
Carrying amount | 235,664,000 | 235,664,000 | $ 416,883,000 | $ 418,693,000 | |||||||
Amount outstanding | $ 318,202,000 | 318,202,000 | 515,106,000 | 522,223,000 | |||||||
2025 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
If-converted value in excess of principal amount | $ 0 | ||||||||||
2024 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 2.875% | ||||||||||
Principal amount | $ 143,750,000 | ||||||||||
Effective interest rate | 9.00% | 9.00% | |||||||||
If-converted value in excess of principal amount | $ 0 | ||||||||||
Convertible senior notes issued and settled | 34,400,000 | ||||||||||
2019 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 2.125% | ||||||||||
Effective interest rate | 8.00% | 8.00% | |||||||||
Convertible senior notes issued and settled | $ 30,000,000 | $ 200,000,000 | |||||||||
Convertible senior notes repurchased and retired | $ 35,000,000 | ||||||||||
Remaining aggregate principal amount repurchased | $ 195,000,000 | ||||||||||
Common Stock Class A Non-voting | 2024 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Conversion rate per $1,000 principal amount | 100 | ||||||||||
Conversion price, per share (in dollars per share) | $ / shares | $ 10 | ||||||||||
Additional Paid-in Capital | 2024 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Carrying amount | $ 25,300,000 | $ 25,300,000 | |||||||||
Senior Notes | 2025 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Stated interest rate | 2.375% | ||||||||||
Principal amount | $ 172,500,000 | 172,500,000 | 172,500,000 | ||||||||
Semi-annual stated rate | 2.375% | ||||||||||
Equity component of debt | $ 39,000,000 | $ 39,000,000 | |||||||||
Effective interest rate | 9.00% | 9.00% | |||||||||
Conversion rate per $1,000 principal amount | 62.8931 | ||||||||||
Conversion price, per share (in dollars per share) | $ / shares | $ 15.90 | ||||||||||
Share price (usd per share) | $ / shares | $ 15.90 | ||||||||||
Carrying amount | $ 124,542,000 | $ 124,542,000 | 119,736,000 | 118,335,000 | |||||||
Amount outstanding | 172,500,000 | 172,500,000 | 172,500,000 | 172,500,000 | |||||||
Senior Notes | 2024 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 143,750,000 | 143,750,000 | |||||||||
Carrying amount | 109,909,000 | 109,909,000 | 105,858,000 | 104,562,000 | |||||||
Amount outstanding | 143,750,000 | 143,750,000 | 143,750,000 | 143,750,000 | |||||||
Senior Notes | 2019 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Carrying amount | 0 | 0 | 187,433,000 | 184,823,000 | |||||||
Amount outstanding | 0 | 0 | 195,000,000 | 195,000,000 | |||||||
Receivables Securitization Facility | CASHMAX secured borrowing facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 804,000 | 804,000 | |||||||||
Carrying amount | 65,000 | 65,000 | 0 | 0 | |||||||
Amount outstanding | $ 804,000 | $ 804,000 | $ 0 | $ 0 | |||||||
Debt Conversion, Condition One | Senior Notes | 2025 Convertible Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Trading days threshold | day | 20 | ||||||||||
Consecutive trading day threshold | day | 30 | ||||||||||
Net-share-settled Warrants | Common Stock Class A Non-voting | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of securities called (shares) | shares | 12.1 | ||||||||||
Strike price for warrants (in dollars per share) | $ / shares | $ 20.83 | ||||||||||
Variable Interest Entity, Primary Beneficiary | Receivables Securitization Facility | CASHMAX secured borrowing facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing amount | $ 25,000,000 |
Stock Compensation (Details)
Stock Compensation (Details) - $ / shares | 1 Months Ended | 3 Months Ended | ||
Nov. 30, 2018 | Jun. 30, 2019 | Oct. 01, 2018 | May 01, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share price (usd per share) | $ 10.51 | |||
Long-Term Incentive Plan 2010 | Common Stock Class A Non-voting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (shares) | 5,085,649 | |||
Increase of shares authorized for grant (shares) | 400,000 | |||
Non-employee Directors | Long-Term Incentive Plan 2010 | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted in period (shares) | 59,812 | 60,088 | ||
Options granted (in dollars per share) | $ 9.18 | $ 10.64 | ||
Employee | Long-Term Incentive Plan 2010 | Restricted stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted in period (shares) | 971,615 | |||
Options granted (in dollars per share) | $ 9.18 |
Contingencies (Details)
Contingencies (Details) $ in Thousands | 2 Months Ended | ||
Aug. 31, 2015lawsuit | Jun. 30, 2019USD ($) | May 30, 2019USD ($) | |
Loss Contingencies [Line Items] | |||
Proposed settlement | $ 3,600 | ||
In re EZCORP, Inc. Securities Litigation | |||
Loss Contingencies [Line Items] | |||
Number of lawsuits consolidated | lawsuit | 2 | ||
Pending Court Approval | In re EZCORP, Inc. Securities Litigation | |||
Loss Contingencies [Line Items] | |||
Proposed settlement | $ 4,875 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 202,465 | $ 199,612 | $ 632,890 | $ 606,180 |
Net revenues | 115,853 | 114,742 | 373,592 | 357,088 |
Segment and corporate expenses (income): | ||||
Operations | 84,727 | 82,932 | 261,756 | 248,758 |
Administrative | 15,053 | 13,268 | 46,795 | 39,688 |
Depreciation and amortization | 7,254 | 6,124 | 21,114 | 18,298 |
Loss (gain) on sale or disposal of assets and other | 24 | 314 | 3,643 | 453 |
Interest expense | 9,832 | 7,394 | 27,212 | 19,070 |
Interest income | (3,172) | (4,358) | (9,637) | (12,896) |
Equity in net income of unconsolidated affiliates | (1,320) | (1,151) | (632) | (3,477) |
Impairment of investment in unconsolidated affiliates | 0 | 0 | 19,725 | 0 |
Other (income) expense | (4) | (5,287) | (121) | (5,473) |
Income from continuing operations before income taxes | 3,459 | 15,506 | 3,737 | 52,667 |
Segments | ||||
Revenues: | ||||
Total revenues | 202,465 | 199,612 | 632,890 | 606,180 |
Net revenues | 115,853 | 114,742 | 373,592 | 357,088 |
Segment and corporate expenses (income): | ||||
Operations | 84,727 | 82,932 | 261,756 | 248,758 |
Administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 4,632 | 4,009 | 13,684 | 12,194 |
Loss (gain) on sale or disposal of assets and other | 2 | 100 | 3,621 | 228 |
Interest expense | 1,567 | 3 | 1,850 | 6 |
Interest income | (376) | (672) | (1,226) | (2,072) |
Equity in net income of unconsolidated affiliates | (1,320) | (1,151) | (632) | (3,477) |
Impairment of investment in unconsolidated affiliates | 19,725 | |||
Other (income) expense | 40 | (103) | 227 | (110) |
Income from continuing operations before income taxes | 26,581 | 29,624 | 74,587 | 101,561 |
Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 156,462 | 157,302 | 488,779 | 479,045 |
Net revenues | 92,008 | 89,633 | 292,168 | 283,397 |
Segment and corporate expenses (income): | ||||
Operations | 65,449 | 65,257 | 200,884 | 196,635 |
Administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 2,934 | 3,010 | 8,951 | 9,340 |
Loss (gain) on sale or disposal of assets and other | 4 | 74 | 2,856 | 197 |
Interest expense | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Equity in net income of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Impairment of investment in unconsolidated affiliates | 0 | |||
Other (income) expense | 0 | 0 | 0 | (3) |
Income from continuing operations before income taxes | 23,621 | 21,292 | 79,477 | 77,228 |
Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 44,733 | 40,707 | 139,837 | 121,781 |
Net revenues | 23,151 | 23,855 | 78,617 | 69,610 |
Segment and corporate expenses (income): | ||||
Operations | 18,284 | 14,997 | 54,703 | 44,847 |
Administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 1,626 | 951 | 4,543 | 2,712 |
Loss (gain) on sale or disposal of assets and other | (8) | 26 | 743 | 31 |
Interest expense | 1,491 | 3 | 1,570 | 6 |
Interest income | (376) | (672) | (1,226) | (2,072) |
Equity in net income of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Impairment of investment in unconsolidated affiliates | 0 | |||
Other (income) expense | 34 | (103) | (63) | 11 |
Income from continuing operations before income taxes | 2,100 | 8,653 | 18,347 | 24,075 |
Segments | Other International | ||||
Revenues: | ||||
Total revenues | 1,270 | 1,603 | 4,274 | 5,354 |
Net revenues | 694 | 1,254 | 2,807 | 4,081 |
Segment and corporate expenses (income): | ||||
Operations | 994 | 2,678 | 6,169 | 7,276 |
Administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 72 | 48 | 190 | 142 |
Loss (gain) on sale or disposal of assets and other | 6 | 0 | 22 | 0 |
Interest expense | 76 | 0 | 280 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Equity in net income of unconsolidated affiliates | (1,320) | (1,151) | (632) | (3,477) |
Impairment of investment in unconsolidated affiliates | 19,725 | |||
Other (income) expense | 6 | 0 | 290 | (118) |
Income from continuing operations before income taxes | 860 | (321) | (23,237) | 258 |
Corporate Items | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Net revenues | 0 | 0 | 0 | 0 |
Segment and corporate expenses (income): | ||||
Operations | 0 | 0 | 0 | 0 |
Administrative | 15,053 | 13,268 | 46,795 | 39,688 |
Depreciation and amortization | 2,622 | 2,115 | 7,430 | 6,104 |
Loss (gain) on sale or disposal of assets and other | 22 | 214 | 22 | 225 |
Interest expense | 8,265 | 7,391 | 25,362 | 19,064 |
Interest income | (2,796) | (3,686) | (8,411) | (10,824) |
Equity in net income of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Impairment of investment in unconsolidated affiliates | 0 | |||
Other (income) expense | (44) | (5,184) | (348) | (5,363) |
Income from continuing operations before income taxes | (23,122) | (14,118) | (70,850) | (48,894) |
Merchandise | ||||
Revenues: | ||||
Total revenues | 103,902 | 104,737 | 346,186 | 333,270 |
Cost of revenues | 70,271 | 66,896 | 225,183 | 210,283 |
Merchandise | Segments | ||||
Revenues: | ||||
Total revenues | 103,902 | 104,737 | 346,186 | 333,270 |
Cost of revenues | 70,271 | 66,896 | 225,183 | 210,283 |
Merchandise | Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 83,904 | 83,898 | 275,639 | 270,145 |
Cost of revenues | 52,855 | 52,340 | 172,931 | 166,965 |
Merchandise | Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 19,998 | 20,839 | 70,547 | 63,125 |
Cost of revenues | 17,416 | 14,556 | 52,252 | 43,318 |
Merchandise | Segments | Other International | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 | 0 |
Merchandise | Corporate Items | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 | 0 |
Jewelry scrapping | ||||
Revenues: | ||||
Total revenues | 18,212 | 20,428 | 37,873 | 44,166 |
Cost of revenues | 15,765 | 17,625 | 32,648 | 37,536 |
Jewelry scrapping | Segments | ||||
Revenues: | ||||
Total revenues | 18,212 | 20,428 | 37,873 | 44,166 |
Cost of revenues | 15,765 | 17,625 | 32,648 | 37,536 |
Jewelry scrapping | Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 13,889 | 17,813 | 28,357 | 34,515 |
Cost of revenues | 11,599 | 15,329 | 23,680 | 28,683 |
Jewelry scrapping | Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 4,323 | 2,615 | 9,516 | 9,651 |
Cost of revenues | 4,166 | 2,296 | 8,968 | 8,853 |
Jewelry scrapping | Segments | Other International | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 | 0 |
Jewelry scrapping | Corporate Items | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Cost of revenues | 0 | 0 | 0 | 0 |
Pawn service | ||||
Revenues: | ||||
Total revenues | 78,980 | 72,544 | 244,298 | 222,597 |
Pawn service | Segments | ||||
Revenues: | ||||
Total revenues | 78,980 | 72,544 | 244,298 | 222,597 |
Pawn service | Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 58,635 | 55,536 | 184,658 | 174,180 |
Pawn service | Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 20,345 | 17,008 | 59,640 | 48,417 |
Pawn service | Segments | Other International | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Pawn service | Corporate Items | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other | ||||
Revenues: | ||||
Total revenues | 1,371 | 1,903 | 4,533 | 6,147 |
Cost of revenues | 576 | 349 | 1,467 | 1,273 |
Other | Segments | ||||
Revenues: | ||||
Total revenues | 1,371 | 1,903 | 4,533 | 6,147 |
Cost of revenues | 576 | 349 | 1,467 | 1,273 |
Other | Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 34 | 55 | 125 | 205 |
Cost of revenues | 0 | 0 | 0 | 0 |
Other | Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 67 | 245 | 134 | 588 |
Cost of revenues | 0 | 0 | 0 | 0 |
Other | Segments | Other International | ||||
Revenues: | ||||
Total revenues | 1,270 | 1,603 | 4,274 | 5,354 |
Cost of revenues | 576 | 349 | 1,467 | 1,273 |
Other | Corporate Items | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Cost of revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Information (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Pawn service charges receivable, net: | |||
Gross pawn service charges receivable | $ 39,443 | $ 40,719 | $ 36,079 |
Allowance for uncollectible pawn service charges receivable | (9,596) | (9,760) | (9,640) |
Pawn service charges receivable, net | 29,847 | 30,959 | 26,439 |
Inventory, net: | |||
Gross inventory | 184,886 | 176,198 | 160,159 |
Inventory reserves | (9,084) | (9,201) | (9,014) |
Inventory, net | 175,802 | 166,997 | 151,145 |
Prepaid expenses and other | 13,189 | 9,705 | 10,836 |
Accounts receivable and other | 20,335 | 18,901 | 25,129 |
Income taxes receivable | 3,841 | 2,031 | 0 |
Restricted cash | 0 | 267 | 252 |
2019 Convertible Notes Hedges | 0 | 2,552 | 7,491 |
Prepaid expenses and other current assets | 37,365 | 33,456 | 43,708 |
Property and equipment, net: | |||
Property and equipment, gross | 260,216 | 253,022 | 248,880 |
Accumulated depreciation | (194,002) | (179,373) | (177,293) |
Total | 66,214 | 73,649 | 71,587 |
Accounts payable | 18,329 | 10,500 | 12,381 |
Accrued expenses and other | 41,652 | 47,458 | 49,214 |
Accounts payable, accrued expenses and other current liabilities | 59,981 | $ 57,958 | $ 61,595 |
Potential exposure from refiner | $ 3,600 |