Cover Page
Cover Page - shares | 9 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
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 $.01 per share | |
Trading Symbol | EZPW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0000876523 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --09-30 | |
Common Stock Class A Non-voting | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 52,101,579 | |
Common Stock Class B Voting | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,970,171 | |
No Trading Symbol Class B |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 237,974 | $ 206,028 | $ 222,342 |
Restricted cash | 8,549 | 8,341 | 8,614 |
Pawn loans | 229,379 | 210,009 | 204,155 |
Pawn service charges receivable, net | 34,959 | 33,476 | 32,000 |
Inventory, net | 154,944 | 151,615 | 132,713 |
Prepaid expenses and other current assets | 44,925 | 34,694 | 29,822 |
Total current assets | 710,730 | 644,163 | 629,646 |
Investments in unconsolidated affiliates | 10,247 | 37,733 | 43,384 |
Other investments | 39,220 | 24,220 | 18,000 |
Property and equipment, net | 61,849 | 56,725 | 51,505 |
Right-of-use asset, net | 243,100 | 221,405 | 217,506 |
Goodwill | 302,120 | 286,828 | 286,798 |
Intangible assets, net | 60,009 | 56,819 | 61,017 |
Notes receivable, net | 0 | 1,215 | 1,207 |
Deferred tax asset, net | 19,610 | 12,145 | 15,773 |
Other assets | 10,793 | 6,625 | 5,991 |
Total assets | 1,457,678 | 1,347,878 | 1,330,827 |
Current liabilities: | |||
Accounts payable, accrued expenses and other current liabilities | 74,458 | 84,509 | 76,566 |
Customer layaway deposits | 18,595 | 16,023 | 14,927 |
Operating lease liabilities, current | 56,919 | 52,334 | 53,358 |
Total current liabilities | 149,972 | 152,866 | 144,851 |
Long-term debt, net | 359,686 | 312,903 | 312,521 |
Deferred tax liability, net | 349 | 373 | 307 |
Operating lease liabilities | 197,499 | 180,756 | 175,489 |
Other long-term liabilities | 11,130 | 8,749 | 11,905 |
Total liabilities | 718,636 | 655,647 | 645,073 |
Commitments and contingencies (Note 9) | |||
Stockholders’ equity: | |||
Additional paid-in capital | 344,857 | 345,330 | 343,763 |
Retained earnings | 422,549 | 402,006 | 396,461 |
Accumulated other comprehensive loss | (28,916) | (55,669) | (55,037) |
Total equity | 739,042 | 692,231 | 685,754 |
Total liabilities and equity | 1,457,678 | 1,347,878 | 1,330,827 |
Common Stock Class A Non-voting | |||
Stockholders’ equity: | |||
Common stock | 522 | 534 | 537 |
Common Stock Class B Voting | |||
Stockholders’ equity: | |||
Common stock | $ 30 | $ 30 | $ 30 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Common Stock Class A Non-voting | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 52,214,761 | 53,454,885 | 53,685,333 |
Common stock, shares outstanding (in shares) | 52,214,761 | 53,454,885 | 53,685,333 |
Common Stock Class B Voting | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,000,000 | 3,000,000 | 3,000,000 |
Common stock, shares issued (in shares) | 2,970,171 | 2,970,171 | 2,970,171 |
Common stock, shares outstanding (in shares) | 2,970,171 | 2,970,171 | 2,970,171 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Total revenues | $ 255,812 | $ 215,842 | $ 778,562 | $ 652,818 |
Gross profit | 148,785 | 129,508 | 450,464 | 390,547 |
Operating expenses: | ||||
Store expenses | 104,932 | 89,430 | 307,004 | 261,944 |
General and administrative | 17,876 | 18,715 | 48,961 | 46,487 |
Depreciation and amortization | 8,026 | 7,746 | 23,977 | 22,770 |
(Gain) loss on sale or disposal of assets | (29) | 0 | 28 | (692) |
Other | (2,632) | 0 | (5,097) | 0 |
Total operating expenses | 128,173 | 115,891 | 374,873 | 330,509 |
Operating income | 20,612 | 13,617 | 75,591 | 60,038 |
Interest expense | 3,414 | 2,693 | 12,994 | 7,651 |
Interest income | (2,584) | (190) | (5,146) | (749) |
Equity in net (income) loss of unconsolidated affiliates | (1,523) | (1,758) | 29,394 | (1,457) |
Other (income) expense | (5) | (210) | (159) | 41 |
Income before income taxes | 21,310 | 13,082 | 38,508 | 54,552 |
Income tax expense | 3,088 | 867 | 10,298 | 11,729 |
Net income | $ 18,222 | $ 12,215 | $ 28,210 | $ 42,823 |
Basic earnings per share (in dollars per share) | $ 0.33 | $ 0.22 | $ 0.51 | $ 0.76 |
Diluted earnings per share (in dollars per share) | $ 0.24 | $ 0.17 | $ 0.38 | $ 0.59 |
Weighted-average basic shares outstanding (in shares) | 55,367 | 56,656 | 55,776 | 56,465 |
Weighted-average diluted shares outstanding (in shares) | 86,825 | 82,504 | 79,559 | 82,349 |
Merchandise sales | ||||
Revenues: | ||||
Total revenues | $ 147,980 | $ 128,334 | $ 464,274 | $ 399,610 |
Cost of revenues | 95,069 | 80,167 | 297,285 | 245,524 |
Jewelry scrapping sales | ||||
Revenues: | ||||
Total revenues | 13,931 | 7,168 | 34,640 | 19,802 |
Cost of revenues | 11,958 | 6,167 | 30,813 | 16,747 |
Pawn service charges | ||||
Revenues: | ||||
Total revenues | 93,819 | 80,291 | 279,442 | 232,999 |
Other revenues, net | ||||
Revenues: | ||||
Total revenues | $ 82 | $ 49 | $ 206 | $ 407 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 18,222 | $ 12,215 | $ 28,210 | $ 42,823 |
Other comprehensive income: | ||||
Foreign currency translation adjustment, net of tax | 8,101 | (3,327) | 26,753 | 3,378 |
Comprehensive income | $ 26,323 | $ 8,888 | $ 54,963 | $ 46,201 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained Earnings Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Sep. 30, 2021 | 56,057 | |||||||
Beginning balance at Sep. 30, 2021 | $ 672,238 | $ (37,406) | $ 560 | $ 403,312 | $ (64,263) | $ 326,781 | $ 26,857 | $ (58,415) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock compensation | 1,698 | 1,698 | ||||||
Release of restricted stock, net of shares withheld for taxes (in shares) | 257 | |||||||
Release of restricted stock, net of shares withheld for taxes | 3 | $ 3 | ||||||
Taxes paid related to net share settlement of equity awards | (792) | (792) | ||||||
Foreign currency translation gain (loss) | 3,039 | 3,039 | ||||||
Net income (loss) | 15,721 | 15,721 | ||||||
Ending balance (in shares) at Dec. 31, 2021 | 56,314 | |||||||
Ending balance at Dec. 31, 2021 | 654,501 | $ 563 | 339,955 | 369,359 | (55,376) | |||
Beginning balance (in shares) at Sep. 30, 2021 | 56,057 | |||||||
Beginning balance at Sep. 30, 2021 | 672,238 | $ (37,406) | $ 560 | 403,312 | $ (64,263) | 326,781 | $ 26,857 | (58,415) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 42,823 | |||||||
Ending balance (in shares) at Jun. 30, 2022 | 56,656 | |||||||
Ending balance at Jun. 30, 2022 | 685,754 | $ 567 | 343,763 | 396,461 | (55,037) | |||
Beginning balance (in shares) at Dec. 31, 2021 | 56,314 | |||||||
Beginning balance at Dec. 31, 2021 | 654,501 | $ 563 | 339,955 | 369,359 | (55,376) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock compensation | 460 | 460 | ||||||
Transfer of consideration for other investment (in shares) | 213 | |||||||
Transfer of consideration for other investment | 1,500 | $ 2 | 1,498 | |||||
Release of restricted stock, net of shares withheld for taxes (in shares) | 129 | |||||||
Release of restricted stock, net of shares withheld for taxes | 2 | $ 2 | ||||||
Foreign currency translation gain (loss) | 3,666 | 3,666 | ||||||
Net income (loss) | 14,887 | 14,887 | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 56,656 | |||||||
Ending balance at Mar. 31, 2022 | 675,016 | $ 567 | 341,913 | 384,246 | (51,710) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock compensation | 1,850 | 1,850 | ||||||
Foreign currency translation gain (loss) | (3,327) | (3,327) | ||||||
Net income (loss) | 12,215 | 12,215 | ||||||
Ending balance (in shares) at Jun. 30, 2022 | 56,656 | |||||||
Ending balance at Jun. 30, 2022 | 685,754 | $ 567 | 343,763 | 396,461 | (55,037) | |||
Beginning balance (in shares) at Sep. 30, 2022 | 56,425 | |||||||
Beginning balance at Sep. 30, 2022 | 692,231 | $ 564 | 345,330 | 402,006 | (55,669) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock compensation | 1,886 | 1,886 | ||||||
Transfer of equity consideration for acquisition (in shares) | 10 | |||||||
Transfer of equity consideration for acquisition | 99 | 99 | ||||||
Release of restricted stock, net of shares withheld for taxes (in shares) | 235 | |||||||
Release of restricted stock, net of shares withheld for taxes | 2 | $ 2 | ||||||
Taxes paid related to net share settlement of equity awards | (1,138) | (1,138) | ||||||
Foreign currency translation gain (loss) | 2,504 | 2,504 | ||||||
Purchase and retirement of treasury stock (in shares) | (822) | |||||||
Purchase and retirement of treasury stock | (7,027) | $ (7) | (3,165) | (3,855) | ||||
Net income (loss) | 16,778 | 16,778 | ||||||
Ending balance (in shares) at Dec. 31, 2022 | 55,848 | |||||||
Ending balance at Dec. 31, 2022 | 705,335 | $ 559 | 343,012 | 414,929 | (53,165) | |||
Beginning balance (in shares) at Sep. 30, 2022 | 56,425 | |||||||
Beginning balance at Sep. 30, 2022 | 692,231 | $ 564 | 345,330 | 402,006 | (55,669) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 28,210 | |||||||
Ending balance (in shares) at Jun. 30, 2023 | 55,185 | |||||||
Ending balance at Jun. 30, 2023 | 739,042 | $ 552 | 344,857 | 422,549 | (28,916) | |||
Beginning balance (in shares) at Dec. 31, 2022 | 55,848 | |||||||
Beginning balance at Dec. 31, 2022 | 705,335 | $ 559 | 343,012 | 414,929 | (53,165) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock compensation | 1,855 | 1,855 | ||||||
Release of restricted stock, net of shares withheld for taxes (in shares) | 132 | |||||||
Release of restricted stock, net of shares withheld for taxes | 2 | $ 2 | ||||||
Taxes paid related to net share settlement of equity awards (in shares) | (1) | |||||||
Taxes paid related to net share settlement of equity awards | (11) | (11) | ||||||
Foreign currency translation gain (loss) | 16,148 | 16,148 | ||||||
Purchase and retirement of treasury stock (in shares) | (448) | |||||||
Purchase and retirement of treasury stock | (3,951) | $ (5) | (1,768) | (2,178) | ||||
Net income (loss) | (6,790) | (6,790) | ||||||
Ending balance (in shares) at Mar. 31, 2023 | 55,531 | |||||||
Ending balance at Mar. 31, 2023 | 712,588 | $ 556 | 343,088 | 405,961 | (37,017) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock compensation | 3,135 | 3,135 | ||||||
Foreign currency translation gain (loss) | 8,101 | 8,101 | ||||||
Purchase and retirement of treasury stock (in shares) | (346) | |||||||
Purchase and retirement of treasury stock | (3,004) | $ (4) | (1,366) | (1,634) | ||||
Net income (loss) | 18,222 | 18,222 | ||||||
Ending balance (in shares) at Jun. 30, 2023 | 55,185 | |||||||
Ending balance at Jun. 30, 2023 | $ 739,042 | $ 552 | $ 344,857 | $ 422,549 | $ (28,916) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities: | ||
Net income | $ 28,210 | $ 42,823 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 23,977 | 22,770 |
Amortization of debt discount and deferred financing costs | 1,135 | 1,051 |
Non-cash lease expense | 41,752 | 39,061 |
Deferred income taxes | (7,489) | 475 |
Other adjustments | (4,894) | (734) |
Provision for inventory reserve | (160) | (2,096) |
Stock compensation expense | 6,876 | 4,008 |
Equity in net loss of unconsolidated affiliates | 29,394 | (1,457) |
Net loss on extinguishment of debt | 3,545 | 0 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Service charges and fees receivable | (316) | (2,949) |
Inventory | (5,501) | (7,837) |
Prepaid expenses, other current assets and other assets | (2,750) | 2,025 |
Accounts payable, accrued expenses and other liabilities | (53,018) | (53,209) |
Customer layaway deposits | 1,036 | 2,265 |
Income taxes | 8,923 | (1,068) |
Dividends from unconsolidated affiliates | 3,589 | 3,366 |
Net cash provided by operating activities | 74,309 | 48,494 |
Investing activities: | ||
Loans made | (592,689) | (524,965) |
Loans repaid | 343,886 | 295,823 |
Recovery of pawn loan principal through sale of forfeited collateral | 251,608 | 191,082 |
Capital expenditures, net | (27,751) | (18,100) |
Acquisitions, net of cash acquired | (12,968) | (1,850) |
Issuance of notes receivable | (15,500) | (1,000) |
Investment in unconsolidated affiliates | (2,133) | (6,079) |
Investment in other investments | (15,000) | (16,500) |
Net cash used in investing activities | (70,547) | (81,589) |
Financing activities: | ||
Taxes paid related to net share settlement of equity awards | (1,149) | (792) |
Proceeds from issuance of debt | 230,000 | 0 |
Debt issuance cost | (7,458) | 0 |
Cash paid on extinguishment of debt | (1,951) | 0 |
Payments on debt | (178,488) | 0 |
Repurchase of common stock | (13,982) | 0 |
Net cash provided by (used in) financing activities | 26,972 | (792) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | 1,420 | 1,219 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 32,154 | (32,668) |
Cash, cash equivalents and restricted cash at beginning of period | 214,369 | 263,624 |
Cash, cash equivalents and restricted cash at end of period | $ 246,523 | $ 230,956 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business EZCORP, Inc. (collectively with its subsidiaries, the “Company,” “we,” “us,” or “our”) is a provider of pawn loans in the United States (“U.S.”) 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 pre-owned merchandise purchased from customers. Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements (“Condensed Consolidated Financial Statements”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the year ended September 30, In the opinion of management, the accompanying Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. Financial results for the three and nine-month periods ended June 30, 2023, are not necessarily indicative of results that may be expected for the fiscal year ending September 30, 2023 or any other period due, in part, to seasonal variations. There have been no changes that have had a material impact in significant accounting policies as described in our 2022 Annual Report Principles of Consolidation The accompanying Condensed Consolidated Financial Statements include the accounts of EZCORP, Inc. and its wholly-owned subsidiaries. We use the equity method of accounting for entities in which we have a 50% or less investment and exercise significant influence. We account for equity investments for which we do not have significant influence and without readily determinable fair values at cost with adjustments for observable changes in price in orderly transactions for identical or similar investments of the same issuer or impairments. All inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates and Assumptions The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions include the determination of inventory reserves, expected credit losses, useful lives of long-lived and intangible assets, valuation of share-based compensation, valuation of equity investments, valuation of deferred tax assets and liabilities, loss contingencies related to litigation and discount rates used for operating leases. We base our estimates on historical experience, observable trends and various other assumptions we believe are reasonable. Actual results may differ materially from these estimates under different assumptions or conditions. Recently Issued Accounting Pronouncements |
Goodwill
Goodwill | 9 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 2: GOODWILL The following table summarizes the changes in the carrying amount of goodwill by segment and in total: Nine Months Ended June 30, 2023 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2022 $ 245,503 $ 41,325 $ 286,828 Acquisitions 9,468 — 9,468 Effect of foreign currency translation changes — 5,824 5,824 Balances as of June 30, 2023 $ 254,971 $ 47,149 $ 302,120 Nine Months Ended June 30, 2022 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2021 $ 244,471 $ 41,287 $ 285,758 Acquisitions 1,032 — 1,032 Measurement period adjustments — (678) (678) Effect of foreign currency translation changes — 686 686 Balances as of June 30, 2022 $ 245,503 $ 41,295 $ 286,798 During the first quarter of fiscal 2023, we acquired nine pawn stores located in Houston, Texas and one luxury pawn store in Las Vegas, Nevada for total cash consideration of $13.0 million , inclusive of all ancillary arrangements, of which $9.5 million was recorded as goodwill. These acquisitions expand our position in these strategic markets, a nd the luxury pawn transaction expands our offerings by providing a dedicated and targeted focus on higher-end products. These acquisitions were immaterial, individually and in the aggregate, and we have therefore omitted or aggregated certain disclosures. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | NOTE 3: EARNINGS PER SHARE The following table reconciles the number of common shares used to compute basic and diluted earnings per share attributable to EZCORP Inc., shareholders: Three Months Ended June 30, Nine Months Ended June 30, (in thousands, except per share amounts) 2023 2022 2023 2022 Basic earnings per common share: Net income - basic $ 18,222 $ 12,215 $ 28,210 $ 42,823 Weighted shares outstanding - basic 55,367 56,656 55,776 56,465 Basic earnings per common share $ 0.33 $ 0.22 $ 0.51 $ 0.76 Diluted earnings per common share: Net income - basic $ 18,222 $ 12,215 $ 28,210 $ 42,823 Add: Convertible Notes interest expense, net of tax* 2,644 1,868 1,885 5,598 Net income - diluted $ 20,866 $ 14,083 $ 30,095 $ 48,421 Weighted shares outstanding - basic 55,367 56,656 55,776 56,465 Equity-based compensation awards - effect of dilution** 1,041 624 1,058 660 Convertible Notes - effect of dilution 30,417 25,224 22,725 25,224 Weighted shares outstanding - diluted 86,825 82,504 79,559 82,349 Diluted earnings per common share $ 0.24 $ 0.17 $ 0.38 $ 0.59 Potential common shares excluded from the calculation of diluted earnings per common share above: Convertible Notes*** — — 6,323 — Restricted stock**** 1,705 1,825 1,728 2,066 Total 1,705 1,825 8,051 2,066 * The nine months ended June 30, 2023 includes $5.4 million gain on the partial extinguishment of debt, associated with the 2025 Convertible Notes, which was recorded to “Interest expense” in the Company’s condensed consolidated statement of operations. See Note 7: Debt for additional information. ** Includes time-based share-based awards and performance based awards for which targets for fiscal year tranches have been achieved and vesting is subject only to achievement of service conditions. *** See Note 7: Debt for conversion rate of the 2024 Convertible Notes, 2025 Convertible Notes, and 2029 Convertible Notes. **** Includes antidilutive share-based awards as well as performance-based 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. |
Leases
Leases | 9 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | NOTE 4: LEASES We determine if a contract contains a lease at inception. Our lease portfolio consists primarily of operating leases for pawn store locations and corporate offices with lease terms ranging from three The table below presents balances of our lease assets and liabilities and their balance sheet locations for both operating and financing leases: (in thousands) Balance Sheet Location June 30, 2023 June 30, 2022 September 30, 2022 Lease assets: Operating lease right-of-use assets Right-of-use assets, net $ 243,100 $ 217,506 $ 221,405 Financing lease assets Other assets 2,076 — 181 Total lease assets $ 245,176 $ 217,506 $ 221,586 Lease liabilities: Current: Operating lease liabilities Operating lease liabilities, current $ 56,919 $ 53,358 $ 52,334 Financing lease liabilities Accounts payable, accrued expenses and other current liabilities 472 — 37 Total current lease liabilities $ 57,391 $ 53,358 $ 52,371 Non-current: Operating lease liabilities Operating lease liabilities $ 197,499 $ 175,489 $ 180,756 Financing lease liabilities Other long-term liabilities 1,645 — 148 Total non-current lease liabilities $ 199,144 $ 175,489 $ 180,904 Total lease liabilities $ 256,535 $ 228,847 $ 233,275 The table below provides major components of our lease costs: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Operating lease cost: Operating lease cost * $ 18,701 $ 17,264 $ 54,219 $ 50,415 Variable lease cost 4,188 3,824 12,068 11,200 Total operating lease cost $ 22,889 $ 21,088 $ 66,287 $ 61,615 Financing lease cost: Amortization of financing lease assets $ 106 $ — $ 180 $ — Interest on financing lease liabilities 47 — 82 — Total financing lease cost $ 153 $ — $ 262 $ — Total lease cost $ 23,042 $ 21,088 $ 66,549 $ 61,615 * Includes a reduction for sublease rental income of $1.0 million and $0.9 million for the three months ended June 30, 2023 and 2022, respectively, and $2.8 million and $2.6 million for the nine months ended June 30, 2023 and 2022, respectively. Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in “Store” and “General and Administrative” expense, based on the underlying lease use. Cash paid for operating leases was $19.5 million and $18.4 million for the three months ended June 30, 2023 and 2022, respectively, and $56.9 million and $54.0 million for the nine months ended June 30, 2023 and 2022, respectively. The weighted-average term and discount rates for leases are as follows: Nine Months Ended June 30, 2023 2022 Weighted-average remaining lease term (years): Operating leases 5.11 5.14 Financing leases 3.88 N/A Weighted-average discount rate: Operating leases 8.52 % 8.20 % Financing leases 11.14 % N/A As of June 30, 2023, maturities of lease liabilities under ASC 842 by fiscal year were as follows: (in thousands) Operating Leases Financing Leases Remaining 2023 $ 19,064 $ 171 Fiscal 2024 74,063 685 Fiscal 2025 64,559 685 Fiscal 2026 53,543 685 Fiscal 2027 39,921 384 Thereafter 61,874 — Total lease liabilities $ 313,024 $ 2,610 Less: portion representing imputed interest 58,606 493 Total net lease liabilities $ 254,418 $ 2,117 Less: current portion 56,919 472 Total long term net lease liabilities $ 197,499 $ 1,645 We recorded $55.2 million and $55.3 million in non-cash additions to our operating right-of-use assets and lease liabilities for the nine months ended June 30, 2023 and June 30, 2022, respectively. We recorded $2.1 million in non-cash additions to our finance right-of-use assets and leases liabilities for the nine months ended June 30, 2023. |
Leases | NOTE 4: LEASES We determine if a contract contains a lease at inception. Our lease portfolio consists primarily of operating leases for pawn store locations and corporate offices with lease terms ranging from three The table below presents balances of our lease assets and liabilities and their balance sheet locations for both operating and financing leases: (in thousands) Balance Sheet Location June 30, 2023 June 30, 2022 September 30, 2022 Lease assets: Operating lease right-of-use assets Right-of-use assets, net $ 243,100 $ 217,506 $ 221,405 Financing lease assets Other assets 2,076 — 181 Total lease assets $ 245,176 $ 217,506 $ 221,586 Lease liabilities: Current: Operating lease liabilities Operating lease liabilities, current $ 56,919 $ 53,358 $ 52,334 Financing lease liabilities Accounts payable, accrued expenses and other current liabilities 472 — 37 Total current lease liabilities $ 57,391 $ 53,358 $ 52,371 Non-current: Operating lease liabilities Operating lease liabilities $ 197,499 $ 175,489 $ 180,756 Financing lease liabilities Other long-term liabilities 1,645 — 148 Total non-current lease liabilities $ 199,144 $ 175,489 $ 180,904 Total lease liabilities $ 256,535 $ 228,847 $ 233,275 The table below provides major components of our lease costs: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Operating lease cost: Operating lease cost * $ 18,701 $ 17,264 $ 54,219 $ 50,415 Variable lease cost 4,188 3,824 12,068 11,200 Total operating lease cost $ 22,889 $ 21,088 $ 66,287 $ 61,615 Financing lease cost: Amortization of financing lease assets $ 106 $ — $ 180 $ — Interest on financing lease liabilities 47 — 82 — Total financing lease cost $ 153 $ — $ 262 $ — Total lease cost $ 23,042 $ 21,088 $ 66,549 $ 61,615 * Includes a reduction for sublease rental income of $1.0 million and $0.9 million for the three months ended June 30, 2023 and 2022, respectively, and $2.8 million and $2.6 million for the nine months ended June 30, 2023 and 2022, respectively. Lease expense is recognized on a straight-line basis over the lease term with variable lease expense recognized in the period in which the costs are incurred. The components of lease expense are included in “Store” and “General and Administrative” expense, based on the underlying lease use. Cash paid for operating leases was $19.5 million and $18.4 million for the three months ended June 30, 2023 and 2022, respectively, and $56.9 million and $54.0 million for the nine months ended June 30, 2023 and 2022, respectively. The weighted-average term and discount rates for leases are as follows: Nine Months Ended June 30, 2023 2022 Weighted-average remaining lease term (years): Operating leases 5.11 5.14 Financing leases 3.88 N/A Weighted-average discount rate: Operating leases 8.52 % 8.20 % Financing leases 11.14 % N/A As of June 30, 2023, maturities of lease liabilities under ASC 842 by fiscal year were as follows: (in thousands) Operating Leases Financing Leases Remaining 2023 $ 19,064 $ 171 Fiscal 2024 74,063 685 Fiscal 2025 64,559 685 Fiscal 2026 53,543 685 Fiscal 2027 39,921 384 Thereafter 61,874 — Total lease liabilities $ 313,024 $ 2,610 Less: portion representing imputed interest 58,606 493 Total net lease liabilities $ 254,418 $ 2,117 Less: current portion 56,919 472 Total long term net lease liabilities $ 197,499 $ 1,645 We recorded $55.2 million and $55.3 million in non-cash additions to our operating right-of-use assets and lease liabilities for the nine months ended June 30, 2023 and June 30, 2022, respectively. We recorded $2.1 million in non-cash additions to our finance right-of-use assets and leases liabilities for the nine months ended June 30, 2023. |
Strategic Investments
Strategic Investments | 9 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Strategic Investments | NOTE 5: STRATEGIC INVESTMENTS Cash Converters International Limited The following table presents the Company’s ownership in Cash Converters International Limited (“Cash Converters”) for the periods presented: Date of purchase Purchase amount (in thousands) Shares purchased Shares owned Ownership percentage October 1, 2021 $2,500 13,000,000 236,702,991 37.7 % March 10, 2022 $1,000 5,500,000 242,239,157 38.6 % April 5, 2022 $2,500 13,000,000 255,239,157 40.7 % September 15, 2022 $900 5,700,000 260,939,157 41.6 % November 2, 2022 $2,100 13,000,000 273,939,157 43.7 % In October 2021, April 2022, November 2022 and April 2023, we received cash dividends of $1.7 million, $1.7 million, $1.8 million and $1.8 million, respectively, from Cash Converters. The following tables present summary financial information for Cash Converters most recently reported results at December 31, 2022 after translation to U.S. dollars: December 31, (in thousands) 2022 2021 Current assets $ 189,179 $ 162,558 Non-current assets 98,301 185,780 Total assets $ 287,480 $ 348,338 Current liabilities $ 91,601 $ 59,701 Non-current liabilities 56,792 59,915 Shareholders’ equity 139,087 228,722 Total liabilities and shareholders’ equity $ 287,480 $ 348,338 Half-Year Ended December 31, (in thousands) 2022 2021 Gross revenues $ 98,768 $ 84,185 Gross profit 63,800 55,280 Net profit (73,197) 1 During the three and nine months ended June 30, 2023, we recorded our share of income of $1.5 million and a $29.4 million loss on our share of losses from Cash Converters, respectively, included in “Equity in net (income) loss of unconsolidated affiliates” in the condensed consolidated statements of operations. For the nine months ended June 30, 2023, the $29.4 million loss includes $32.4 million of our share of their non-cash goodwill impairment charge. See Note 6: Fair Value Measurements for the fair value and carrying value of our investment in Cash Converters. Founders One, LLC In October 2021, we invested $15.0 million in exchange for a non-redeemable voting participating preferred equity interest in Founders One, LLC (“Founders”), a then newly-formed entity with one other member. Founders used that $15.0 million to acquire an equity interest in Simple Management Group, Inc. (“SMG”). On December 2, 2022, we contributed an additional $15.0 million to Founders associated with our preferred interest, which proceeds were used by Founders to acquire additional common stock in SMG. In addition, we loaned $15.0 million to Founders in exchange for a Demand Promissory Note secured by the common interest in Founders held by the other member. We have an interest in Founders, a variable interest entity, but because the Company is not the primary beneficiary, we do not consolidate Founders. Further, as we are not the appointed manager, we do not have the ability to direct the activities of the investment entity that most significantly impact its economic performance. Consequently, our equity investment in Founders is accounted for utilizing the measurement alternative within Accounting Standards Codification (“ASC”) 321, Investments — Equity Securities. Our $30.0 million carrying value of the investment and $15.0 million Demand Promissory Note are included in “Other investments” and “Prepaid expenses and other current assets” in our consolidated balance sheets, respectively. Our maximum exposure for losses related to our investment in Founders is our $30.0 million equity investment and $15.0 million Demand Promissory Note plus accrued and unpaid interest. See Note 6: Fair Value Measurements for the fair values and carrying values of our investment in and loan to Founders, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 6: FAIR VALUE MEASUREMENTS The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: • 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. • Level 3 — Unobservable inputs that are not corroborated by market data. We have elected not to measure at fair value any eligible items for which fair value measurement is optional. 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 estimates of fair value of financial assets and liabilities that were not measured at fair value: Carrying Value Estimated Fair Value June 30, 2023 June 30, 2023 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: 2.89% promissory note receivable due April 2024 $ 1,242 $ 1,242 $ — $ — $ 1,242 12.00% promissory note receivable from Founders 16,050 16,050 — — 16,050 Investments in unconsolidated affiliates 10,247 41,367 41,367 — — Other investments 39,220 39,220 — — 39,220 Financial liabilities: 2024 Convertible Notes $ 34,223 $ 36,126 $ — $ 36,126 $ — 2025 Convertible Notes 102,433 94,586 — 94,586 — 2029 Convertible Notes 223,030 228,294 — 228,294 — Carrying Value Estimated Fair Value June 30, 2022 June 30, 2022 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: 2.89% promissory note receivable due April 2024 $ 1,207 $ 1,207 $ — $ — $ 1,207 Investments in unconsolidated affiliates 43,384 47,973 41,342 — 6,631 Other investments 18,000 18,000 — 18,000 Financial liabilities: 2024 Convertible Notes $ 142,404 $ 143,951 $ — $ 143,951 $ — 2025 Convertible Notes 170,117 144,555 — 144,555 — Carrying Value Estimated Fair Value September 30, 2022 September 30, 2022 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: 2.89% promissory note receivable due April 2024 $ 1,215 $ 1,215 $ — $ — $ 1,215 Investments in unconsolidated affiliates 37,733 40,279 40,279 — — Other investments 24,220 24,220 — — 24,220 Financial liabilities: 2024 Convertible Notes $ 142,575 $ 157,727 $ — $ 157,727 $ — 2025 Convertible Notes 170,328 147,488 — 147,488 — Due to the short-term nature of cash and cash equivalents, pawn loans and pawn service charges receivable, we estimate that the carrying value approximates fair value. We consider our cash and cash equivalents, including money market accounts, to be measured using Level 1 inputs and our pawn loans, pawn service charges 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, fees and interest receivable and other debt could significantly increase or decrease these fair value estimates. The Company remeasures its acquisition-related contingent obligation associated with the acquisition in June 2021 of PLO del Bajio S. de R.S. de C.V., which owned stores operating under the name “Cash Apoyo Efectivo,” at the end of each reporting period. This remeasurement resulted in a $2.6 million and $5.1 million reduction of the obligation with an offset recorded to “Other” as an operating item in our condensed consolidated statements of operations during the three and nine months ended June 30, 2023, respectively. There is no remaining obligation in our Consolidated Balance Sheet as of June 30, 2023. The key assumptions used to determine the fair value of acquisition-related contingent consideration are estimated by management, not observable in the market and, therefore, considered Level 3 inputs within the fair value hierarchy. 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. The fair value of the note approximated its carrying value as of June 30, 2023. In December 2022, we loaned $15.0 million to Founders in exchange for a Demand Promissory Note secured by the common interest in Founders held by the other member. The note bears interest at the rate of 12.00% per annum, and all principal and accrued interest is due on demand. The fair value of the note approximated its carrying value as of June 30, 2023. We use the equity method of accounting to account for our ownership interest in Cash Converters. The inputs used to generate the fair value of the investment in Cash Converters were considered Level 1 inputs. These inputs consist 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. The $39.2 million in “Other investments” as of June 30, 2023, includes $30.0 million related to our investment in Founders and $6.2 million related to our investment in Rich Data Corporation ( “ RDC ” ) . We believe the investment’s fair value approximated its carrying value although such fair value is highly variable and includes significant unobservable inputs. The $18.0 million “Other investments” as of June 30, 2022, includes $15.0 million related to our investment in Founders. We determined the fair value of the 2024, 2025 and 2029 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, 2023 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 7: DEBT The following table presents the Company's debt instruments outstanding: June 30, 2023 June 30, 2022 September 30, 2022 (in thousands) Gross Amount Debt Issuance Costs Carrying Amount Gross Amount Debt Issuance Costs Carrying Amount Gross Amount Debt Issuance Costs Carrying Amount 2029 Convertible Notes $ 230,000 $ (6,970) $ 223,030 $ — $ — $ — $ — $ — $ — 2025 Convertible Notes 103,373 (940) 102,433 172,500 (2,383) 170,117 172,500 (2,172) 170,328 2024 Convertible Notes 34,389 (166) 34,223 143,750 (1,346) 142,404 143,750 (1,175) 142,575 Total long-term debt $ 367,762 $ (8,076) $ 359,686 $ 316,250 $ (3,729) $ 312,521 $ 316,250 $ (3,347) $ 312,903 The following table presents the Company’s contractual maturities related to the debt instruments as of June 30, 2023: Schedule of Contractual Maturities (in thousands) 2029 Convertible Notes 2025 Convertible Notes 2024 Convertible Notes Total Remaining 2023 $ — $ — $ — $ — Fiscal 2024 — — 34,389 34,389 Fiscal 2025 — 103,373 — 103,373 Fiscal 2026 — — — — Fiscal 2027 — — — — Thereafter 230,000 — — 230,000 Total long-term debt $ 230,000 $ 103,373 $ 34,389 $ 367,762 The following table presents the Company’s interest expense related to the Convertible Notes for the three and nine months ended June 30, 2023 and 2022: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 2029 Convertible Notes: Contractual interest expense $ 2,157 $ — $ 4,744 $ — Amortization of deferred financing costs 239 — 488 — Total interest expense $ 2,396 $ — $ 5,232 $ — 2025 Convertible Notes: Contractual interest expense $ 614 $ 1,025 $ 2,170 $ 3,073 Amortization of deferred financing costs 121 197 429 586 Gain on extinguishment — — (5,389) — Total interest expense $ 735 $ 1,222 $ (2,790) $ 3,659 2024 Convertible Notes: Contractual interest expense $ 247 $ 1,033 $ 1,370 $ 3,099 Amortization of deferred financing costs 39 156 218 465 Loss on extinguishment — — 8,935 — Total interest expense $ 286 $ 1,189 $ 10,523 $ 3,564 3.750% Convertible Senior Notes Due 2029 In December 2022, we issued $230.0 million aggregate principal amount of 3.750% Convertible Senior Notes Due 2029 (the “2029 Convertible Notes”), for which $230.0 million remains outstanding as of June 30, 2023. The 2029 Convertible Notes were issued pursuant to an indenture dated December 12, 2022 (the “2022 Indenture”) by and between the Company and Truist Bank, as trustee. The 2029 Convertible Notes were issued in a private offering under Rule 144A under the Securities Act of 1933. The 2029 Convertible Notes pay interest semi-annually in arrears at a rate of 3.750% per annum on June 15 and December 15 of each year, commencing June 15, 2023, and mature on December 15, 2029 (the “2029 Maturity Date”), unless converted, redeemed or repurchased in accordance with the terms prior to such date. At maturity, the holders of the 2029 Convertible Notes will be entitled to receive cash equal to the principal of the 2029 Convertible Notes plus accrued interest. The effective interest rate for the three and nine months ended June 30, 2023 was approximately 4.28%. As of June 30, 2023, the remaining unamortized debt issuance costs will be amortized using the effective interest method through the 2029 Maturity Date assuming no early conversion. The 2029 Convertible Notes are convertible based on an initial conversion rate of 89.0313 shares of Class A Common Stock per $1,000 principal amount (equivalent to an initial conversion price of $11.23 per share). The conversion rate will not be adjusted for any accrued and unpaid interest. The 2029 Convertible Notes contain certain make-whole fundamental change premiums and customary anti-dilution adjustments. Upon conversion, we may settle in cash, shares of Class A Common Stock or any combination thereof, at our election. Prior to June 15, 2029, the 2029 Convertible Notes will be convertible only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on March 31, 2023 (and only during such fiscal quarter), if the last reported sale price of our Class A Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price, as defined in the 2022 Indenture, per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A Common Stock and the conversion rate on such trading day; (3) if we call any or all of the 2029 Convertible Notes for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events, as defined in the 2022 Indenture. On or after June 15, 2029 until the close of business on the business day immediately preceding the 2029 Maturity Date, holders of 2029 Convertible Notes may, at their option, convert their 2029 Convertible Notes at any time, regardless of the foregoing circumstances. We may not redeem the Notes prior to December 21, 2026. At our option, we may redeem for cash all or any portion of the 2029 Convertible Notes on or after December 21, 2026, if the last reported sale price of the Class A Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. The redemption price will be equal to 100% of the principal amount of the 2029 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The stock trading price condition and other triggers are measured on a quarter-by-quarter basis and were not met as of June 30, 2023. As of June 30, 2023, the if-converted value of the 2029 Convertible Notes did not exceed the principal amount. Note Repurchases In December 2022, the Company repurchased approximately $109.4 million aggregate principal amount of 2.875% Convertible Senior Notes Due 2024 for approximately $117.5 million plus accrued interest and approximately $69.1 million aggregate principal amount of 2.375% Convertible Senior Notes Due 2025 for approximately $62.9 million plus accrued interest and recognized a $3.5 million loss on extinguishment of debt recorded to “Interest expense” in the Company’s condensed consolidated statement of operations. 2.375% 2025 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”), for which $103.4 million remains outstanding as of June 30, 2023. The 2025 Convertible Notes were issued pursuant to an indenture dated May 14, 2018 (the “2018 Indenture”) by and between the Company and Wells Fargo Bank, National Association, as the original trustee. Effective October 1, 2019, Truist (formerly BB&T) assumed the duties and responsibilities as trustee under the 2018 Indenture. 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 the terms prior to such date. The effective interest rate for the three and nine months ended June 30, 2023 was approximately 2.88% for the 2025 Convertible Notes. As of June 30, 2023, the remaining unamortized debt issuance costs will be amortized using the effective interest method through the 2025 Maturity Date assuming no early conversion. The 2025 Convertible Notes are convertible based on an initial conversion rate of 62.8931 shares of Class A Common Stock per $1,000 principal amount (equivalent to an initial conversion price of $15.90 per share). The conversion rate will not be adjusted for any accrued and unpaid interest. The 2025 Convertible Notes contain certain make-whole fundamental change premiums and customary anti-dilution adjustments. Upon conversion, we may settle in cash, shares of Class A Common Stock or any combination thereof, at our election. Prior to November 1, 2024, the 2025 Convertible Notes are convertible only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ended on June 30, 2018 (and only during such fiscal quarter), if the last reported sale price of our Class A Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “measurement period”) in which the trading price, as defined in the 2018 Indenture, per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A Common Stock and the conversion rate on such trading day; (3) if we call any or all of the 2025 Convertible Notes for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events, as defined in the 2018 Indenture. On or after November 1, 2024 until the close of business on the business day immediately preceding the 2025 Maturity Date, holders of 2025 Convertible Notes may, at their option, convert their 2025 Convertible Notes at any time, regardless of the foregoing circumstances. We may not redeem the 2025 Convertible Notes prior to May 1, 2022. At our option, we may redeem for cash all or any portion of the 2025 Convertible Notes on or after May 1, 2022, if the last reported sale price of the Class A Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. The redemption price will be equal to 100% of the principal amount of the 2025 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The stock trading price condition and other triggers are measured on a quarter-by-quarter basis and were not met as of June 30, 2023. As of June 30, 2023, 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”), for which $34.4 million remains outstanding as of June 30, 2023. The 2024 Convertible Notes were issued pursuant to an indenture dated July 5, 2017 (the “2017 Indenture”) by and between the Company and Wells Fargo Bank, National Association, as the original trustee. Effective October 1, 2019, Truist (formerly BB&T) assumed the duties and responsibilities as trustee under the 2017 Indenture. 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 the terms prior to such date. At maturity, the holders of the 2024 Convertible Notes will be entitled to receive cash equal to the principal of the 2024 Convertible Notes plus accrued interest. The effective interest rate for the three and nine months ended June 30, 2023 was approximately 3.35%. As of June 30, 2023, the remaining unamortized debt issuance costs will be amortized using the effective interest method through the 2024 Maturity Date assuming no early conversion. The 2024 Convertible Notes are convertible based on an initial conversion rate of 100 shares of Class A Common Stock per $1,000 principal amount (equivalent to an initial conversion price of $10.00 per share). The conversion rate will not be adjusted for any accrued and unpaid interest. The 2024 Convertible Notes contain certain make-whole fundamental change premiums and customary anti-dilution adjustments. Upon conversion, we may settle in cash, shares of Class A Common Stock or any combination thereof, at our election. Prior to January 1, 2024, the 2024 Convertible Notes will be convertible only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2017 (and only during such fiscal quarter), if the last reported sale price of our Class A Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five five At our option, we may redeem for cash all or any portion of the 2024 Convertible Notes on or after July 6, 2021, if the last reported sale price of the Class A Common Stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption. The redemption price will be equal to 100% of the principal amount of the 2024 Convertible Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. The stock trading price condition and other triggers are measured on a quarter-by-quarter basis and were not met as of June 30, 2023. As of June 30, 2023, the if-converted value of the 2024 Convertible Notes did not exceed the principal amount. |
Common Stock and Stock Compensa
Common Stock and Stock Compensation | 9 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Common Stock and Stock Compensation | NOTE 8: COMMON STOCK AND STOCK COMPENSATION Common Stock Repurchase Program On May 3, 2022, the Company’s Board of Directors (the “Board”) authorized the repurchase of up to $50 million of our Class A Common Stock over three years (the “Common Stock Repurchase Program”). Execution of the program will be responsive to fluctuating market conditions and valuations, liquidity needs and the expected return on investment compared to other opportunities. The amount and timing of purchases will be dependent on a variety of factors, including stock price, trading volume, general market conditions, legal and regulatory requirements, general business conditions, the level of cash flows, and corporate considerations determined by management and the Board, such as liquidity and capital needs and the availability of attractive alternative investment opportunities. The Board of Directors has reserved the right to modify, suspend or terminate the program at any time. As of June 30, 2023, the Company has repurchased and retired 1,275,646 shares of our Class A Common Stock for $11.0 million under the Common Stock Repurchase Program, of which $3.0 million was repurchased during the quarter ended June 30, 2023. The repurchase amount is allocated between “Additional paid-in capital” and “Retained earnings” in our condensed consolidated balance sheets. Other Common Stock Repurchases During December 2022, the Company used approximately $5.0 million of the net proceeds from the 2029 Convertible Notes offering to repurchase for cash 578,703 shares of its Class A common stock from purchasers of the notes in privately negotiated transactions. Such transactions were authorized separately from, and not considered a part of, the publicly announced share repurchase program discussed above. The repurchase amount is allocated between “Additional paid-in capital” and “Retained earnings” in our condensed consolidated balance sheets. Stock Compensation We maintain a Board-approved incentive plan to retain the services of our valued officers, directors and employees and to incentivize such persons to make contributions to our company and motivate excellent performance (the “Incentive Plan”). Under the Incentive Plan, we grant awards of restricted stock or restricted stock units to employees and non-employee directors. Awards granted to employees are typically subject to performance and service conditions. Awards granted to non-employee directors are time-based awards subject only to service conditions. Awards granted under the Incentive Plan are measured at the grant date fair value with compensation costs associated with the awards recognized over the requisite service period, usually the vesting period, on a straight-line basis. The following table presents a summary of stock compensation activity: Shares Weighted Outstanding as of September 30, 2022 2,113,323 $ 5.88 Granted 1,008,180 7.82 Released (a) (480,238) 4.86 Cancelled (78,029) 6.70 Outstanding as of June 30, 2023 2,563,236 $ 6.81 (a) 114,311 shares were withheld to satisfy related income tax withholding. |
Contingencies
Contingencies | 9 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | NOTE 9: CONTINGENCIES Currently, and from time to time, we are involved in various claims, disputes, lawsuits, investigations, and legal and regulatory proceedings, including the matter described below. We accrue for contingencies if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because these matters are inherently unpredictable and unfavorable developments or resolutions can occur, assessing contingencies requires judgments and is highly subjective about future events, and the amount of resulting loss may differ from these estimates. We do not believe the resolution of any particular matter will have a material adverse effect on our financial condition, results of operations or liquidity. On October 14, 2021, Andrew Kowlessar filed an action in the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida styled Andrew Kowlessar, individually and on behalf of all others similarly situated vs. EZCORP, Inc. d/b/a Value Pawn & Jewelry . The matter subsequently was amended and removed to the United States District Court of the Southern District of Florida as Andrew Kowlessar, individually and on behalf of all others similarly situated vs. EZPAWN Florida, Inc. d/b/a Value Pawn & Jewelry |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 10: SEGMENT INFORMATION Our operations are primarily managed on a geographical basis and are comprised of three reportable segments. The factors for determining our reportable segments include the manner in which our chief operating decision maker evaluates performance for purposes of allocating resources and assessing performance. 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 Investments — primarily our equity interest in the net income (loss) of Cash Converters along with our investment in Founders and RDC. There are no inter-segment revenues presented below, and the amounts below were determined in accordance with the same accounting principles used in our condensed consolidated financial statements. The following tables present revenue for each reportable segment, disaggregated revenue within our three reportable segments and Corporate, segment profits and segment contribution. Three Months Ended June 30, 2023 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 102,177 $ 45,803 $ — $ 147,980 $ — $ 147,980 Jewelry scrapping sales 13,098 833 — 13,931 — 13,931 Pawn service charges 68,790 25,029 — 93,819 — 93,819 Other revenues 27 40 15 82 — 82 Total revenues 184,092 71,705 15 255,812 — 255,812 Merchandise cost of goods sold 62,799 32,270 — 95,069 — 95,069 Jewelry scrapping cost of goods sold 11,101 857 — 11,958 — 11,958 Gross profit 110,192 38,578 15 148,785 — 148,785 Segment and corporate expenses (income): Store expenses 75,389 29,543 — 104,932 — 104,932 General and administrative — — — — 17,876 17,876 Depreciation and amortization 2,505 2,303 — 4,808 3,218 8,026 Gain on sale or disposal of assets — (29) — (29) — (29) Other — (2,632) — (2,632) — (2,632) Interest expense — — — — 3,414 3,414 Interest income (1) (256) — (257) (2,327) (2,584) Equity in net income of unconsolidated affiliates — — (1,523) (1,523) — (1,523) Other (income) expense — (65) 10 (55) 50 (5) Segment contribution $ 32,299 $ 9,714 $ 1,528 $ 43,541 Income (loss) before income taxes $ 43,541 $ (22,231) $ 21,310 Three Months Ended June 30, 2022 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 94,005 $ 34,329 $ — $ 128,334 $ — $ 128,334 Jewelry scrapping sales 5,404 1,764 — 7,168 — 7,168 Pawn service charges 59,322 20,969 — 80,291 — 80,291 Other revenues 21 7 21 49 — 49 Total revenues 158,752 57,069 21 215,842 — 215,842 Merchandise cost of goods sold 55,885 24,282 — 80,167 — 80,167 Jewelry scrapping cost of goods sold 4,506 1,661 — 6,167 — 6,167 Gross profit 98,361 31,126 21 129,508 — 129,508 Segment and corporate expenses (income): Store expenses 66,036 23,394 — 89,430 — 89,430 General and administrative — — — — 18,715 18,715 Depreciation and amortization 2,572 1,987 — 4,559 3,187 7,746 Interest expense — — — — 2,693 2,693 Interest income (1) (189) — (190) — (190) Equity in net income of unconsolidated affiliates — — (1,758) (1,758) — (1,758) Other (income) expense — (163) 19 (144) (66) (210) Segment contribution $ 29,754 $ 6,097 $ 1,760 $ 37,611 Income (loss) before income taxes $ 37,611 $ (24,529) $ 13,082 Nine Months Ended June 30, 2023 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 329,231 $ 135,043 $ — $ 464,274 $ — $ 464,274 Jewelry scrapping sales 30,088 4,552 — 34,640 — 34,640 Pawn service charges 208,045 71,397 — 279,442 — 279,442 Other revenues 84 75 47 206 — 206 Total revenues 567,448 211,067 47 778,562 — 778,562 Merchandise cost of goods sold 203,698 93,587 — 297,285 — 297,285 Jewelry scrapping cost of goods sold 25,867 4,946 — 30,813 — 30,813 Gross profit 337,883 112,534 47 450,464 — 450,464 Segment and corporate expenses (income): Store expenses 220,639 86,365 — 307,004 — 307,004 General and administrative — (3) — (3) 48,964 48,961 Depreciation and amortization 7,820 6,850 — 14,670 9,307 23,977 Loss (gain) on sale or disposal of assets 84 (56) — 28 — 28 Other — (5,097) — (5,097) — (5,097) Interest expense — — — — 12,994 12,994 Interest income (2) (723) — (725) (4,421) (5,146) Equity in net loss of unconsolidated affiliates — — 29,394 29,394 — 29,394 Other (income) expense — (41) 20 (21) (138) (159) Segment contribution (loss) $ 109,342 $ 25,239 $ (29,367) $ 105,214 Income (loss) before income taxes $ 105,214 $ (66,706) $ 38,508 Nine Months Ended June 30, 2022 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 296,147 $ 103,463 $ — $ 399,610 $ — $ 399,610 Jewelry scrapping sales 13,864 5,938 — 19,802 — 19,802 Pawn service charges 174,651 58,348 — 232,999 — 232,999 Other revenues 67 247 93 407 — 407 Total revenues 484,729 167,996 93 652,818 — 652,818 Merchandise cost of goods sold 172,330 73,194 — 245,524 — 245,524 Jewelry scrapping cost of goods sold 11,279 5,468 — 16,747 — 16,747 Gross profit 301,120 89,334 93 390,547 — 390,547 Segment and corporate expenses (income): Store expenses 195,217 66,727 — 261,944 — 261,944 General and administrative — — — — 46,487 46,487 Depreciation and amortization 7,867 5,858 — 13,725 9,045 22,770 Gain on sale or disposal of assets and other — (4) — (4) (688) (692) Interest expense — — — — 7,651 7,651 Interest income (1) (626) — (627) (122) (749) Equity in net income of unconsolidated affiliates — — (1,457) (1,457) — (1,457) Other expense (income) — 37 15 52 (11) 41 Segment contribution $ 98,037 $ 17,342 $ 1,535 $ 116,914 Income (loss) before income taxes $ 116,914 $ (62,362) $ 54,552 The following table presents separately identified net earning assets by segment: (in thousands) U.S. Pawn Latin America Pawn Other Corporate Items Total As of June 30, 2023 Pawn loans $ 178,877 $ 50,502 $ — $ — $ 229,379 Inventory, net 114,910 40,034 — — 154,944 As of June 30, 2022 Pawn loans $ 159,680 $ 44,475 $ — $ — $ 204,155 Inventory, net 101,831 30,882 — — 132,713 |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Information | 9 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Consolidated Financial Information | NOTE 11: SUPPLEMENTAL CONSOLIDATED FINANCIAL INFORMATION The following table provides supplemental information on net amounts included in our condensed consolidated balance sheets: (in thousands) June 30, 2023 June 30, 2022 September 30, 2022 Gross pawn service charges receivable $ 47,071 $ 42,277 $ 44,192 Allowance for uncollectible pawn service charges receivable (12,112) (10,277) (10,716) Pawn service charges receivable, net $ 34,959 $ 32,000 $ 33,476 Gross inventory $ 157,590 $ 136,475 $ 153,673 Inventory reserves (2,646) (3,762) (2,058) Inventory, net $ 154,944 $ 132,713 $ 151,615 Prepaid expenses and other $ 6,081 $ 14,660 $ 8,336 Accounts receivable, notes receivable and other 29,860 7,465 8,435 Income taxes prepaid and receivable 8,984 7,697 17,923 Prepaid expenses and other current assets $ 44,925 $ 29,822 $ 34,694 Property and equipment, gross $ 335,296 $ 298,502 $ 306,667 Accumulated depreciation (273,447) (246,997) (249,942) Property and equipment, net $ 61,849 $ 51,505 $ 56,725 Accounts payable $ 19,220 $ 19,480 $ 24,056 Accrued payroll 13,668 11,840 8,365 Incentive accrual 13,564 14,128 17,403 Other payroll related expenses 6,059 7,167 9,592 Accrued sales and VAT taxes 6,663 7,672 7,279 Accrued income taxes payable 2,646 1,116 2,663 Other current liabilities 12,638 15,163 15,151 Accounts payable, accrued expenses and other current liabilities $ 74,458 $ 76,566 $ 84,509 The following table provides supplemental disclosure of Consolidated Statements of Cash Flows information: Nine Months Ended June 30, (in thousands) 2023 2022 Supplemental disclosure of cash flow information Cash and cash equivalents $ 237,974 $ 222,342 Restricted cash 8,549 8,614 Total cash and cash equivalents and restricted cash $ 246,523 $ 230,956 Non-cash investing and financing activities: Pawn loans forfeited and transferred to inventory $ 238,899 $ 204,662 Transfer of consideration for other investment — 1,500 Transfer of equity consideration for acquisition 99 — Acquisition earn-out contingency 2,000 — Accrued acquisition consideration 1,220 — |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net profit | $ 18,222 | $ 12,215 | $ 28,210 | $ 42,823 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Insider Trading Arrangements On May 25, 2023, Matthew Appel, Director, entered into a prearranged trading plan to sell up to 53,303 shares of the Company’s Class A Non-Voting Common Stock between August 23, 2023 and August 30, 2024 pursuant to the terms of the plan. The plan is designed to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act and comply with the Company’s policies regarding stock transactions. On May 23, 2023, Nicole Swies, Chief Revenue Officer, entered into a prearranged trading plan to sell up to 9,000 shares of the Company’s Class A Non-Voting Common Stock between August 22, 2023 and April 1, 2024 pursuant to the terms of the plan. The plan is designed to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act and comply with the Company’s policies regarding stock transactions. Other than as described above, no Director or Executive Officer adopted, modified or terminated any contract, instruction, written plan or other trading arrangement relating to the purchase or sale of Company securities during the fiscal quarter ended June 30, 2023. | |
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Director Trading Arrangement [Member] | Matthew Appel [Member] | ||
Trading Arrangements, by Individual | ||
Name | Matthew Appel | |
Title | Director | |
Adoption Date | May 25, 2023 | |
Arrangement Duration | 374 days | |
Aggregate Available | 53,303 | 53,303 |
Chief Revenue Officer Trading Arrangement [Member] | Nicole Swies [Member] | ||
Trading Arrangements, by Individual | ||
Name | Nicole Swies | |
Title | Chief Revenue Officer | |
Adoption Date | May 23, 2023 | |
Arrangement Duration | 223 days | |
Aggregate Available | 9,000 | 9,000 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements (“Condensed Consolidated Financial Statements”) have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K for the year ended September 30, In the opinion of management, the accompanying Condensed Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. Financial results for the three and nine-month periods ended June 30, 2023, are not necessarily indicative of results that may be expected for the fiscal year ending September 30, 2023 or any other period due, in part, to seasonal variations. There have been no changes that have had a material impact in significant accounting policies as described in our 2022 Annual Report Principles of Consolidation |
Use of Estimates and Assumptions | Use of Estimates and Assumptions |
Recently Issued Accounting Pronouncements | Recently Issued Accounting PronouncementsWe reviewed all recently issued accounting pronouncements and concluded that they were either not applicable or not expected to have a material impact on our Condensed Consolidated Financial Statements. |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes the changes in the carrying amount of goodwill by segment and in total: Nine Months Ended June 30, 2023 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2022 $ 245,503 $ 41,325 $ 286,828 Acquisitions 9,468 — 9,468 Effect of foreign currency translation changes — 5,824 5,824 Balances as of June 30, 2023 $ 254,971 $ 47,149 $ 302,120 Nine Months Ended June 30, 2022 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2021 $ 244,471 $ 41,287 $ 285,758 Acquisitions 1,032 — 1,032 Measurement period adjustments — (678) (678) Effect of foreign currency translation changes — 686 686 Balances as of June 30, 2022 $ 245,503 $ 41,295 $ 286,798 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Net Components of Basic and Diluted (Loss) Earnings Per Share | The following table reconciles the number of common shares used to compute basic and diluted earnings per share attributable to EZCORP Inc., shareholders: Three Months Ended June 30, Nine Months Ended June 30, (in thousands, except per share amounts) 2023 2022 2023 2022 Basic earnings per common share: Net income - basic $ 18,222 $ 12,215 $ 28,210 $ 42,823 Weighted shares outstanding - basic 55,367 56,656 55,776 56,465 Basic earnings per common share $ 0.33 $ 0.22 $ 0.51 $ 0.76 Diluted earnings per common share: Net income - basic $ 18,222 $ 12,215 $ 28,210 $ 42,823 Add: Convertible Notes interest expense, net of tax* 2,644 1,868 1,885 5,598 Net income - diluted $ 20,866 $ 14,083 $ 30,095 $ 48,421 Weighted shares outstanding - basic 55,367 56,656 55,776 56,465 Equity-based compensation awards - effect of dilution** 1,041 624 1,058 660 Convertible Notes - effect of dilution 30,417 25,224 22,725 25,224 Weighted shares outstanding - diluted 86,825 82,504 79,559 82,349 Diluted earnings per common share $ 0.24 $ 0.17 $ 0.38 $ 0.59 Potential common shares excluded from the calculation of diluted earnings per common share above: Convertible Notes*** — — 6,323 — Restricted stock**** 1,705 1,825 1,728 2,066 Total 1,705 1,825 8,051 2,066 * The nine months ended June 30, 2023 includes $5.4 million gain on the partial extinguishment of debt, associated with the 2025 Convertible Notes, which was recorded to “Interest expense” in the Company’s condensed consolidated statement of operations. See Note 7: Debt for additional information. ** Includes time-based share-based awards and performance based awards for which targets for fiscal year tranches have been achieved and vesting is subject only to achievement of service conditions. *** See Note 7: Debt for conversion rate of the 2024 Convertible Notes, 2025 Convertible Notes, and 2029 Convertible Notes. **** Includes antidilutive share-based awards as well as performance-based 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. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Lessee Assets and Liabilities | The table below presents balances of our lease assets and liabilities and their balance sheet locations for both operating and financing leases: (in thousands) Balance Sheet Location June 30, 2023 June 30, 2022 September 30, 2022 Lease assets: Operating lease right-of-use assets Right-of-use assets, net $ 243,100 $ 217,506 $ 221,405 Financing lease assets Other assets 2,076 — 181 Total lease assets $ 245,176 $ 217,506 $ 221,586 Lease liabilities: Current: Operating lease liabilities Operating lease liabilities, current $ 56,919 $ 53,358 $ 52,334 Financing lease liabilities Accounts payable, accrued expenses and other current liabilities 472 — 37 Total current lease liabilities $ 57,391 $ 53,358 $ 52,371 Non-current: Operating lease liabilities Operating lease liabilities $ 197,499 $ 175,489 $ 180,756 Financing lease liabilities Other long-term liabilities 1,645 — 148 Total non-current lease liabilities $ 199,144 $ 175,489 $ 180,904 Total lease liabilities $ 256,535 $ 228,847 $ 233,275 |
Schedule of Lease Cost | The table below provides major components of our lease costs: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 Operating lease cost: Operating lease cost * $ 18,701 $ 17,264 $ 54,219 $ 50,415 Variable lease cost 4,188 3,824 12,068 11,200 Total operating lease cost $ 22,889 $ 21,088 $ 66,287 $ 61,615 Financing lease cost: Amortization of financing lease assets $ 106 $ — $ 180 $ — Interest on financing lease liabilities 47 — 82 — Total financing lease cost $ 153 $ — $ 262 $ — Total lease cost $ 23,042 $ 21,088 $ 66,549 $ 61,615 * Includes a reduction for sublease rental income of $1.0 million and $0.9 million for the three months ended June 30, 2023 and 2022, respectively, and $2.8 million and $2.6 million for the nine months ended June 30, 2023 and 2022, respectively. The weighted-average term and discount rates for leases are as follows: Nine Months Ended June 30, 2023 2022 Weighted-average remaining lease term (years): Operating leases 5.11 5.14 Financing leases 3.88 N/A Weighted-average discount rate: Operating leases 8.52 % 8.20 % Financing leases 11.14 % N/A |
Schedule of Operating Lease Maturity | As of June 30, 2023, maturities of lease liabilities under ASC 842 by fiscal year were as follows: (in thousands) Operating Leases Financing Leases Remaining 2023 $ 19,064 $ 171 Fiscal 2024 74,063 685 Fiscal 2025 64,559 685 Fiscal 2026 53,543 685 Fiscal 2027 39,921 384 Thereafter 61,874 — Total lease liabilities $ 313,024 $ 2,610 Less: portion representing imputed interest 58,606 493 Total net lease liabilities $ 254,418 $ 2,117 Less: current portion 56,919 472 Total long term net lease liabilities $ 197,499 $ 1,645 |
Strategic Investments (Tables)
Strategic Investments (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following table presents the Company’s ownership in Cash Converters International Limited (“Cash Converters”) for the periods presented: Date of purchase Purchase amount (in thousands) Shares purchased Shares owned Ownership percentage October 1, 2021 $2,500 13,000,000 236,702,991 37.7 % March 10, 2022 $1,000 5,500,000 242,239,157 38.6 % April 5, 2022 $2,500 13,000,000 255,239,157 40.7 % September 15, 2022 $900 5,700,000 260,939,157 41.6 % November 2, 2022 $2,100 13,000,000 273,939,157 43.7 % The following tables present summary financial information for Cash Converters most recently reported results at December 31, 2022 after translation to U.S. dollars: December 31, (in thousands) 2022 2021 Current assets $ 189,179 $ 162,558 Non-current assets 98,301 185,780 Total assets $ 287,480 $ 348,338 Current liabilities $ 91,601 $ 59,701 Non-current liabilities 56,792 59,915 Shareholders’ equity 139,087 228,722 Total liabilities and shareholders’ equity $ 287,480 $ 348,338 Half-Year Ended December 31, (in thousands) 2022 2021 Gross revenues $ 98,768 $ 84,185 Gross profit 63,800 55,280 Net profit (73,197) 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets, Temporary Equity, and Liabilities Not Measured at Fair Value in the Consolidated Balance Sheet | The tables below present our estimates of fair value of financial assets and liabilities that were not measured at fair value: Carrying Value Estimated Fair Value June 30, 2023 June 30, 2023 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: 2.89% promissory note receivable due April 2024 $ 1,242 $ 1,242 $ — $ — $ 1,242 12.00% promissory note receivable from Founders 16,050 16,050 — — 16,050 Investments in unconsolidated affiliates 10,247 41,367 41,367 — — Other investments 39,220 39,220 — — 39,220 Financial liabilities: 2024 Convertible Notes $ 34,223 $ 36,126 $ — $ 36,126 $ — 2025 Convertible Notes 102,433 94,586 — 94,586 — 2029 Convertible Notes 223,030 228,294 — 228,294 — Carrying Value Estimated Fair Value June 30, 2022 June 30, 2022 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: 2.89% promissory note receivable due April 2024 $ 1,207 $ 1,207 $ — $ — $ 1,207 Investments in unconsolidated affiliates 43,384 47,973 41,342 — 6,631 Other investments 18,000 18,000 — 18,000 Financial liabilities: 2024 Convertible Notes $ 142,404 $ 143,951 $ — $ 143,951 $ — 2025 Convertible Notes 170,117 144,555 — 144,555 — Carrying Value Estimated Fair Value September 30, 2022 September 30, 2022 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: 2.89% promissory note receivable due April 2024 $ 1,215 $ 1,215 $ — $ — $ 1,215 Investments in unconsolidated affiliates 37,733 40,279 40,279 — — Other investments 24,220 24,220 — — 24,220 Financial liabilities: 2024 Convertible Notes $ 142,575 $ 157,727 $ — $ 157,727 $ — 2025 Convertible Notes 170,328 147,488 — 147,488 — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt Instruments | The following table presents the Company's debt instruments outstanding: June 30, 2023 June 30, 2022 September 30, 2022 (in thousands) Gross Amount Debt Issuance Costs Carrying Amount Gross Amount Debt Issuance Costs Carrying Amount Gross Amount Debt Issuance Costs Carrying Amount 2029 Convertible Notes $ 230,000 $ (6,970) $ 223,030 $ — $ — $ — $ — $ — $ — 2025 Convertible Notes 103,373 (940) 102,433 172,500 (2,383) 170,117 172,500 (2,172) 170,328 2024 Convertible Notes 34,389 (166) 34,223 143,750 (1,346) 142,404 143,750 (1,175) 142,575 Total long-term debt $ 367,762 $ (8,076) $ 359,686 $ 316,250 $ (3,729) $ 312,521 $ 316,250 $ (3,347) $ 312,903 |
Schedule of Maturities of Long-Term Debt | The following table presents the Company’s contractual maturities related to the debt instruments as of June 30, 2023: Schedule of Contractual Maturities (in thousands) 2029 Convertible Notes 2025 Convertible Notes 2024 Convertible Notes Total Remaining 2023 $ — $ — $ — $ — Fiscal 2024 — — 34,389 34,389 Fiscal 2025 — 103,373 — 103,373 Fiscal 2026 — — — — Fiscal 2027 — — — — Thereafter 230,000 — — 230,000 Total long-term debt $ 230,000 $ 103,373 $ 34,389 $ 367,762 |
Schedule of Interest Income and Interest Expense Disclosure | The following table presents the Company’s interest expense related to the Convertible Notes for the three and nine months ended June 30, 2023 and 2022: Three Months Ended June 30, Nine Months Ended June 30, (in thousands) 2023 2022 2023 2022 2029 Convertible Notes: Contractual interest expense $ 2,157 $ — $ 4,744 $ — Amortization of deferred financing costs 239 — 488 — Total interest expense $ 2,396 $ — $ 5,232 $ — 2025 Convertible Notes: Contractual interest expense $ 614 $ 1,025 $ 2,170 $ 3,073 Amortization of deferred financing costs 121 197 429 586 Gain on extinguishment — — (5,389) — Total interest expense $ 735 $ 1,222 $ (2,790) $ 3,659 2024 Convertible Notes: Contractual interest expense $ 247 $ 1,033 $ 1,370 $ 3,099 Amortization of deferred financing costs 39 156 218 465 Loss on extinguishment — — 8,935 — Total interest expense $ 286 $ 1,189 $ 10,523 $ 3,564 |
Common Stock and Stock Compen_2
Common Stock and Stock Compensation (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Award Activity | The following table presents a summary of stock compensation activity: Shares Weighted Outstanding as of September 30, 2022 2,113,323 $ 5.88 Granted 1,008,180 7.82 Released (a) (480,238) 4.86 Cancelled (78,029) 6.70 Outstanding as of June 30, 2023 2,563,236 $ 6.81 (a) 114,311 shares were withheld to satisfy related income tax withholding. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Information | The following tables present revenue for each reportable segment, disaggregated revenue within our three reportable segments and Corporate, segment profits and segment contribution. Three Months Ended June 30, 2023 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 102,177 $ 45,803 $ — $ 147,980 $ — $ 147,980 Jewelry scrapping sales 13,098 833 — 13,931 — 13,931 Pawn service charges 68,790 25,029 — 93,819 — 93,819 Other revenues 27 40 15 82 — 82 Total revenues 184,092 71,705 15 255,812 — 255,812 Merchandise cost of goods sold 62,799 32,270 — 95,069 — 95,069 Jewelry scrapping cost of goods sold 11,101 857 — 11,958 — 11,958 Gross profit 110,192 38,578 15 148,785 — 148,785 Segment and corporate expenses (income): Store expenses 75,389 29,543 — 104,932 — 104,932 General and administrative — — — — 17,876 17,876 Depreciation and amortization 2,505 2,303 — 4,808 3,218 8,026 Gain on sale or disposal of assets — (29) — (29) — (29) Other — (2,632) — (2,632) — (2,632) Interest expense — — — — 3,414 3,414 Interest income (1) (256) — (257) (2,327) (2,584) Equity in net income of unconsolidated affiliates — — (1,523) (1,523) — (1,523) Other (income) expense — (65) 10 (55) 50 (5) Segment contribution $ 32,299 $ 9,714 $ 1,528 $ 43,541 Income (loss) before income taxes $ 43,541 $ (22,231) $ 21,310 Three Months Ended June 30, 2022 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 94,005 $ 34,329 $ — $ 128,334 $ — $ 128,334 Jewelry scrapping sales 5,404 1,764 — 7,168 — 7,168 Pawn service charges 59,322 20,969 — 80,291 — 80,291 Other revenues 21 7 21 49 — 49 Total revenues 158,752 57,069 21 215,842 — 215,842 Merchandise cost of goods sold 55,885 24,282 — 80,167 — 80,167 Jewelry scrapping cost of goods sold 4,506 1,661 — 6,167 — 6,167 Gross profit 98,361 31,126 21 129,508 — 129,508 Segment and corporate expenses (income): Store expenses 66,036 23,394 — 89,430 — 89,430 General and administrative — — — — 18,715 18,715 Depreciation and amortization 2,572 1,987 — 4,559 3,187 7,746 Interest expense — — — — 2,693 2,693 Interest income (1) (189) — (190) — (190) Equity in net income of unconsolidated affiliates — — (1,758) (1,758) — (1,758) Other (income) expense — (163) 19 (144) (66) (210) Segment contribution $ 29,754 $ 6,097 $ 1,760 $ 37,611 Income (loss) before income taxes $ 37,611 $ (24,529) $ 13,082 Nine Months Ended June 30, 2023 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 329,231 $ 135,043 $ — $ 464,274 $ — $ 464,274 Jewelry scrapping sales 30,088 4,552 — 34,640 — 34,640 Pawn service charges 208,045 71,397 — 279,442 — 279,442 Other revenues 84 75 47 206 — 206 Total revenues 567,448 211,067 47 778,562 — 778,562 Merchandise cost of goods sold 203,698 93,587 — 297,285 — 297,285 Jewelry scrapping cost of goods sold 25,867 4,946 — 30,813 — 30,813 Gross profit 337,883 112,534 47 450,464 — 450,464 Segment and corporate expenses (income): Store expenses 220,639 86,365 — 307,004 — 307,004 General and administrative — (3) — (3) 48,964 48,961 Depreciation and amortization 7,820 6,850 — 14,670 9,307 23,977 Loss (gain) on sale or disposal of assets 84 (56) — 28 — 28 Other — (5,097) — (5,097) — (5,097) Interest expense — — — — 12,994 12,994 Interest income (2) (723) — (725) (4,421) (5,146) Equity in net loss of unconsolidated affiliates — — 29,394 29,394 — 29,394 Other (income) expense — (41) 20 (21) (138) (159) Segment contribution (loss) $ 109,342 $ 25,239 $ (29,367) $ 105,214 Income (loss) before income taxes $ 105,214 $ (66,706) $ 38,508 Nine Months Ended June 30, 2022 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 296,147 $ 103,463 $ — $ 399,610 $ — $ 399,610 Jewelry scrapping sales 13,864 5,938 — 19,802 — 19,802 Pawn service charges 174,651 58,348 — 232,999 — 232,999 Other revenues 67 247 93 407 — 407 Total revenues 484,729 167,996 93 652,818 — 652,818 Merchandise cost of goods sold 172,330 73,194 — 245,524 — 245,524 Jewelry scrapping cost of goods sold 11,279 5,468 — 16,747 — 16,747 Gross profit 301,120 89,334 93 390,547 — 390,547 Segment and corporate expenses (income): Store expenses 195,217 66,727 — 261,944 — 261,944 General and administrative — — — — 46,487 46,487 Depreciation and amortization 7,867 5,858 — 13,725 9,045 22,770 Gain on sale or disposal of assets and other — (4) — (4) (688) (692) Interest expense — — — — 7,651 7,651 Interest income (1) (626) — (627) (122) (749) Equity in net income of unconsolidated affiliates — — (1,457) (1,457) — (1,457) Other expense (income) — 37 15 52 (11) 41 Segment contribution $ 98,037 $ 17,342 $ 1,535 $ 116,914 Income (loss) before income taxes $ 116,914 $ (62,362) $ 54,552 |
Reconciliation of Assets from Segment to Consolidated | The following table presents separately identified net earning assets by segment: (in thousands) U.S. Pawn Latin America Pawn Other Corporate Items Total As of June 30, 2023 Pawn loans $ 178,877 $ 50,502 $ — $ — $ 229,379 Inventory, net 114,910 40,034 — — 154,944 As of June 30, 2022 Pawn loans $ 159,680 $ 44,475 $ — $ — $ 204,155 Inventory, net 101,831 30,882 — — 132,713 |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Information (Tables) | 9 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of 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: (in thousands) June 30, 2023 June 30, 2022 September 30, 2022 Gross pawn service charges receivable $ 47,071 $ 42,277 $ 44,192 Allowance for uncollectible pawn service charges receivable (12,112) (10,277) (10,716) Pawn service charges receivable, net $ 34,959 $ 32,000 $ 33,476 Gross inventory $ 157,590 $ 136,475 $ 153,673 Inventory reserves (2,646) (3,762) (2,058) Inventory, net $ 154,944 $ 132,713 $ 151,615 Prepaid expenses and other $ 6,081 $ 14,660 $ 8,336 Accounts receivable, notes receivable and other 29,860 7,465 8,435 Income taxes prepaid and receivable 8,984 7,697 17,923 Prepaid expenses and other current assets $ 44,925 $ 29,822 $ 34,694 Property and equipment, gross $ 335,296 $ 298,502 $ 306,667 Accumulated depreciation (273,447) (246,997) (249,942) Property and equipment, net $ 61,849 $ 51,505 $ 56,725 Accounts payable $ 19,220 $ 19,480 $ 24,056 Accrued payroll 13,668 11,840 8,365 Incentive accrual 13,564 14,128 17,403 Other payroll related expenses 6,059 7,167 9,592 Accrued sales and VAT taxes 6,663 7,672 7,279 Accrued income taxes payable 2,646 1,116 2,663 Other current liabilities 12,638 15,163 15,151 Accounts payable, accrued expenses and other current liabilities $ 74,458 $ 76,566 $ 84,509 |
Schedule of Supplemental Disclosure of Consolidated Statements of Cash Flows Information | The following table provides supplemental disclosure of Consolidated Statements of Cash Flows information: Nine Months Ended June 30, (in thousands) 2023 2022 Supplemental disclosure of cash flow information Cash and cash equivalents $ 237,974 $ 222,342 Restricted cash 8,549 8,614 Total cash and cash equivalents and restricted cash $ 246,523 $ 230,956 Non-cash investing and financing activities: Pawn loans forfeited and transferred to inventory $ 238,899 $ 204,662 Transfer of consideration for other investment — 1,500 Transfer of equity consideration for acquisition 99 — Acquisition earn-out contingency 2,000 — Accrued acquisition consideration 1,220 — |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 286,828 | $ 285,758 |
Acquisitions | 9,468 | 1,032 |
Measurement period adjustments | (678) | |
Effect of foreign currency translation changes | 5,824 | 686 |
Ending balance | 302,120 | 286,798 |
U.S. Pawn | ||
Goodwill [Roll Forward] | ||
Beginning balance | 245,503 | 244,471 |
Acquisitions | 9,468 | 1,032 |
Measurement period adjustments | 0 | |
Effect of foreign currency translation changes | 0 | 0 |
Ending balance | 254,971 | 245,503 |
Latin America Pawn | ||
Goodwill [Roll Forward] | ||
Beginning balance | 41,325 | 41,287 |
Acquisitions | 0 | 0 |
Measurement period adjustments | (678) | |
Effect of foreign currency translation changes | 5,824 | 686 |
Ending balance | $ 47,149 | $ 41,295 |
Goodwill - Additional Informati
Goodwill - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2022 USD ($) store | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Goodwill [Line Items] | |||
Additions to goodwill | $ 9,468 | $ 1,032 | |
Houston, Texas Pawn Stores | |||
Goodwill [Line Items] | |||
Number of stores | store | 9 | ||
Las Vegas, Nevada Pawn Store | |||
Goodwill [Line Items] | |||
Number of stores | store | 1 | ||
Pawn Stores | |||
Goodwill [Line Items] | |||
Initial purchase price | $ 13,000 | ||
Additions to goodwill | $ 9,500 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic earnings per common share: | |||||
Net income - basic | $ 18,222 | $ 12,215 | $ 28,210 | $ 42,823 | |
Weighted shares outstanding - basic (in shares) | 55,367 | 56,656 | 55,776 | 56,465 | |
Basic earnings per common share (in dollars per share) | $ 0.33 | $ 0.22 | $ 0.51 | $ 0.76 | |
Diluted earnings per common share: | |||||
Net income - basic | $ 18,222 | $ 12,215 | $ 28,210 | $ 42,823 | |
Add: Convertible Notes interest expense, net of tax | 2,644 | 1,868 | 1,885 | 5,598 | |
Net income - diluted | $ 20,866 | $ 14,083 | $ 30,095 | $ 48,421 | |
Weighted shares outstanding - basic (in shares) | 55,367 | 56,656 | 55,776 | 56,465 | |
Equity-based compensation awards - effect of dilution (in shares) | 1,041 | 624 | 1,058 | 660 | |
Convertible Notes - effect of dilution (in shares) | 30,417 | 25,224 | 22,725 | 25,224 | |
Weighted shares outstanding - diluted (in shares) | 86,825 | 82,504 | 79,559 | 82,349 | |
Diluted earnings per common share (in dollars per share) | $ 0.24 | $ 0.17 | $ 0.38 | $ 0.59 | |
Potential common shares excluded from the calculation of diluted earnings per common share above (in shares) | 1,705 | 1,825 | 8,051 | 2,066 | |
Gain (loss) on extinguishment of debt | $ (3,500) | $ (3,545) | $ 0 | ||
2025 Convertible Notes | |||||
Diluted earnings per common share: | |||||
Gain (loss) on extinguishment of debt | $ 5,400 | ||||
Convertible Notes | |||||
Diluted earnings per common share: | |||||
Potential common shares excluded from the calculation of diluted earnings per common share above (in shares) | 0 | 0 | 6,323 | 0 | |
Restricted stock | |||||
Diluted earnings per common share: | |||||
Potential common shares excluded from the calculation of diluted earnings per common share above (in shares) | 1,705 | 1,825 | 1,728 | 2,066 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Lessee, Lease, Description [Line Items] | ||||
Finance, term of lease (in years) | 5 years | 5 years | ||
Operating lease payments | $ 19.5 | $ 18.4 | $ 56.9 | $ 54 |
Operating lease liability non cash | 55.2 | $ 55.3 | ||
Finance lease liability non cash | $ 2.1 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Initial term of lease (in years) | 3 years | 3 years | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Initial term of lease (in years) | 10 years | 10 years |
Leases - Lessee Assets and Liab
Leases - Lessee Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Lease assets: | |||
Operating lease right-of-use assets | $ 243,100 | $ 221,405 | $ 217,506 |
Financing lease assets | 2,076 | 181 | 0 |
Total lease assets | 245,176 | 221,586 | 217,506 |
Current: | |||
Operating lease liabilities | 56,919 | 52,334 | 53,358 |
Financing lease liabilities | 472 | 37 | 0 |
Total current lease liabilities | 57,391 | 52,371 | 53,358 |
Non-current: | |||
Operating lease liabilities | 197,499 | 180,756 | 175,489 |
Financing lease liabilities | 1,645 | 148 | 0 |
Total non-current lease liabilities | 199,144 | 180,904 | 175,489 |
Total lease liabilities | $ 256,535 | $ 233,275 | $ 228,847 |
Finance Lease, Other Assets, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent | Other Assets, Noncurrent |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accrued expenses and other current liabilities | Accounts payable, accrued expenses and other current liabilities | Accounts payable, accrued expenses and other current liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Operating lease cost: | ||||
Operating lease cost | $ 18,701 | $ 17,264 | $ 54,219 | $ 50,415 |
Variable lease cost | 4,188 | 3,824 | 12,068 | 11,200 |
Total operating lease cost | 22,889 | 21,088 | 66,287 | 61,615 |
Financing lease cost: | ||||
Amortization of financing lease assets | 106 | 0 | 180 | 0 |
Interest on financing lease liabilities | 47 | 0 | 82 | 0 |
Total financing lease cost | 153 | 0 | 262 | 0 |
Total lease cost | 23,042 | 21,088 | 66,549 | 61,615 |
Sublease income | $ 1,000 | $ 900 | $ 2,800 | $ 2,600 |
Weighted-average remaining lease term (years): | ||||
Weighted-average remaining lease term, Operating leases (in years) | 5 years 1 month 9 days | 5 years 1 month 20 days | 5 years 1 month 9 days | 5 years 1 month 20 days |
Weighted-average remaining lease term, Financing leases (in years) | 3 years 10 months 17 days | 3 years 10 months 17 days | ||
Weighted-average discount rate: | ||||
Weighted-average discount rate, Operating leases (as percentage) | 8.52% | 8.20% | 8.52% | 8.20% |
Weighted-average discount rate, Financing leases (as percentage) | 11.14% | 11.14% |
Leases - Operating And Financin
Leases - Operating And Financing Lease Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Operating Leases | |||
Remaining 2023 | $ 19,064 | ||
Fiscal 2024 | 74,063 | ||
Fiscal 2025 | 64,559 | ||
Fiscal 2026 | 53,543 | ||
Fiscal 2027 | 39,921 | ||
Thereafter | 61,874 | ||
Total lease liabilities | 313,024 | ||
Less: portion representing imputed interest | 58,606 | ||
Total net lease liabilities | 254,418 | ||
Less: current portion | 56,919 | $ 52,334 | $ 53,358 |
Total long term net lease liabilities | 197,499 | 180,756 | 175,489 |
Financing Leases | |||
Remaining 2023 | 171 | ||
Fiscal 2024 | 685 | ||
Fiscal 2025 | 685 | ||
Fiscal 2026 | 685 | ||
Fiscal 2027 | 384 | ||
Thereafter | 0 | ||
Total lease liabilities | 2,610 | ||
Less: portion representing imputed interest | 493 | ||
Total net lease liabilities | 2,117 | ||
Less: current portion | 472 | 37 | 0 |
Total long term net lease liabilities | $ 1,645 | $ 148 | $ 0 |
Strategic Investments - Company
Strategic Investments - Company's ownership in Cash Converters (Details) - Cash Converters International Limited - USD ($) $ in Thousands | Nov. 02, 2022 | Sep. 15, 2022 | Apr. 05, 2022 | Mar. 10, 2022 | Oct. 01, 2021 |
Schedule of Equity Method Investments [Line Items] | |||||
Purchase amount | $ 2,100 | $ 900 | $ 2,500 | $ 1,000 | $ 2,500 |
Shares purchased (in shares) | 13,000,000 | 5,700,000 | 13,000,000 | 5,500,000 | 13,000,000 |
Shares owned (in shares) | 273,939,157 | 260,939,157 | 255,239,157 | 242,239,157 | 236,702,991 |
Ownership percentage | 43.70% | 41.60% | 40.70% | 38.60% | 37.70% |
Strategic Investments - Additio
Strategic Investments - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Dec. 02, 2022 | Apr. 30, 2023 | Nov. 30, 2022 | Apr. 30, 2022 | Oct. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Dividends from unconsolidated affiliates | $ 3,589 | $ 3,366 | |||||||
Equity in net income (loss) of unconsolidated affiliates | $ 1,523 | $ 1,758 | (29,394) | $ 1,457 | |||||
Cash Converters International Limited | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Dividends from unconsolidated affiliates | $ 1,800 | $ 1,800 | $ 1,700 | $ 1,700 | |||||
Equity in net income (loss) of unconsolidated affiliates | 1,500 | (29,400) | |||||||
Non-cash goodwill impairment charge | 32,400 | ||||||||
Founders One LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Payments to acquire equity investment | $ 15,000 | ||||||||
Notes payable | $ 15,000 | ||||||||
Equity securities, fair value | $ 30,000 | $ 30,000 | |||||||
Simple Management Group, Inc | Founders One LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Payments to acquire equity investment | $ 15,000 |
Strategic Investments - Equity
Strategic Investments - Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | |
Summary of financial information for Cash Converters International Limited | |||||||||
Current assets | $ 710,730 | $ 629,646 | $ 710,730 | $ 629,646 | $ 644,163 | ||||
Total assets | 1,457,678 | 1,330,827 | 1,457,678 | 1,330,827 | 1,347,878 | ||||
Current liabilities | 149,972 | 144,851 | 149,972 | 144,851 | 152,866 | ||||
Total liabilities and equity | 1,457,678 | 1,330,827 | 1,457,678 | 1,330,827 | $ 1,347,878 | ||||
Gross profit | 148,785 | 129,508 | 450,464 | 390,547 | |||||
Net profit | $ 18,222 | $ 12,215 | $ 28,210 | $ 42,823 | |||||
Cash Converters International Limited | |||||||||
Summary of financial information for Cash Converters International Limited | |||||||||
Current assets | $ 189,179 | $ 162,558 | |||||||
Non-current assets | 98,301 | 185,780 | |||||||
Total assets | 287,480 | 348,338 | |||||||
Current liabilities | 91,601 | 59,701 | |||||||
Non-current liabilities | 56,792 | 59,915 | |||||||
Shareholders’ equity | 139,087 | 228,722 | |||||||
Total liabilities and equity | $ 287,480 | $ 348,338 | |||||||
Gross revenues | $ 98,768 | $ 84,185 | |||||||
Gross profit | 63,800 | 55,280 | |||||||
Net profit | $ (73,197) | $ 1 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2022 | Apr. 30, 2019 | Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | Mar. 31, 2019 | |
Financial assets: | |||||||
Other investments | $ 39,220 | $ 18,000 | $ 24,220 | ||||
Carrying Value | |||||||
Financial assets: | |||||||
Other investments | 39,220 | 18,000 | 24,220 | ||||
Estimated Fair Value | |||||||
Financial assets: | |||||||
Other investments | 39,220 | 18,000 | 24,220 | ||||
Estimated Fair Value | Level 1 | |||||||
Financial assets: | |||||||
Other investments | 0 | 0 | |||||
Estimated Fair Value | Level 2 | |||||||
Financial assets: | |||||||
Other investments | 0 | 0 | 0 | ||||
Estimated Fair Value | Level 3 | |||||||
Financial assets: | |||||||
Other investments | $ 39,220 | $ 18,000 | 24,220 | ||||
2.89% promissory note receivable due April 2024 | |||||||
Financial assets: | |||||||
Notes receivable, fair value | $ 1,100 | $ 1,100 | |||||
Financial liabilities: | |||||||
Interest on note receivable | 2.89% | 2.89% | 2.89% | 2.89% | |||
2.89% promissory note receivable due April 2024 | Carrying Value | |||||||
Financial assets: | |||||||
Notes receivable, fair value | $ 1,242 | $ 1,207 | 1,215 | ||||
2.89% promissory note receivable due April 2024 | Estimated Fair Value | |||||||
Financial assets: | |||||||
Notes receivable, fair value | 1,242 | 1,207 | 1,215 | ||||
2.89% promissory note receivable due April 2024 | Estimated Fair Value | Level 1 | |||||||
Financial assets: | |||||||
Notes receivable, fair value | 0 | 0 | 0 | ||||
2.89% promissory note receivable due April 2024 | Estimated Fair Value | Level 2 | |||||||
Financial assets: | |||||||
Notes receivable, fair value | 0 | 0 | 0 | ||||
2.89% promissory note receivable due April 2024 | Estimated Fair Value | Level 3 | |||||||
Financial assets: | |||||||
Notes receivable, fair value | $ 1,242 | 1,207 | 1,215 | ||||
12.00% promissory note receivable from Founders | |||||||
Financial assets: | |||||||
Notes receivable, fair value | $ 15,000 | $ 15,000 | |||||
Financial liabilities: | |||||||
Interest on note receivable | 12% | 12% | |||||
12.00% promissory note receivable from Founders | Carrying Value | |||||||
Financial assets: | |||||||
Notes receivable, fair value | $ 16,050 | ||||||
12.00% promissory note receivable from Founders | Estimated Fair Value | |||||||
Financial assets: | |||||||
Notes receivable, fair value | 16,050 | ||||||
12.00% promissory note receivable from Founders | Estimated Fair Value | Level 1 | |||||||
Financial assets: | |||||||
Notes receivable, fair value | 0 | ||||||
12.00% promissory note receivable from Founders | Estimated Fair Value | Level 2 | |||||||
Financial assets: | |||||||
Notes receivable, fair value | 0 | ||||||
12.00% promissory note receivable from Founders | Estimated Fair Value | Level 3 | |||||||
Financial assets: | |||||||
Notes receivable, fair value | 16,050 | ||||||
Investments in unconsolidated affiliates | Carrying Value | |||||||
Financial assets: | |||||||
Investments in unconsolidated affiliates | 10,247 | 43,384 | 37,733 | ||||
Investments in unconsolidated affiliates | Estimated Fair Value | |||||||
Financial assets: | |||||||
Investments in unconsolidated affiliates | 41,367 | 47,973 | 40,279 | ||||
Investments in unconsolidated affiliates | Estimated Fair Value | Level 1 | |||||||
Financial assets: | |||||||
Investments in unconsolidated affiliates | 41,367 | 41,342 | 40,279 | ||||
Investments in unconsolidated affiliates | Estimated Fair Value | Level 2 | |||||||
Financial assets: | |||||||
Investments in unconsolidated affiliates | 0 | 0 | 0 | ||||
Investments in unconsolidated affiliates | Estimated Fair Value | Level 3 | |||||||
Financial assets: | |||||||
Investments in unconsolidated affiliates | 0 | 6,631 | 0 | ||||
2024 Convertible Notes | Carrying Value | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 34,223 | 142,404 | 142,575 | ||||
2024 Convertible Notes | Estimated Fair Value | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 36,126 | 143,951 | 157,727 | ||||
2024 Convertible Notes | Estimated Fair Value | Level 1 | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 0 | 0 | 0 | ||||
2024 Convertible Notes | Estimated Fair Value | Level 2 | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 36,126 | 143,951 | 157,727 | ||||
2024 Convertible Notes | Estimated Fair Value | Level 3 | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 0 | 0 | 0 | ||||
2025 Convertible Notes | Carrying Value | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 102,433 | 170,117 | 170,328 | ||||
2025 Convertible Notes | Estimated Fair Value | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 94,586 | 144,555 | 147,488 | ||||
2025 Convertible Notes | Estimated Fair Value | Level 1 | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 0 | 0 | 0 | ||||
2025 Convertible Notes | Estimated Fair Value | Level 2 | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 94,586 | 144,555 | 147,488 | ||||
2025 Convertible Notes | Estimated Fair Value | Level 3 | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 0 | $ 0 | $ 0 | ||||
2029 Convertible Notes | Carrying Value | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 223,030 | ||||||
2029 Convertible Notes | Estimated Fair Value | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 228,294 | ||||||
2029 Convertible Notes | Estimated Fair Value | Level 1 | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 0 | ||||||
2029 Convertible Notes | Estimated Fair Value | Level 2 | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | 228,294 | ||||||
2029 Convertible Notes | Estimated Fair Value | Level 3 | |||||||
Financial liabilities: | |||||||
Debt instruments, fair value | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2022 | Apr. 30, 2019 | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | Oct. 31, 2021 | Mar. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Acquisition earn-out contingency | $ 2,000,000 | $ 2,000,000 | $ 0 | ||||||
Other investments | 39,220,000 | 39,220,000 | $ 18,000,000 | $ 24,220,000 | |||||
Bajio | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Reduction in contingent consideration liability | 2,600,000 | 5,100,000 | |||||||
Acquisition earn-out contingency | 0 | 0 | |||||||
Founders One LLC | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Other investments | 30,000,000 | 30,000,000 | $ 15,000,000 | ||||||
Rich Data Corp | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Other investments | $ 6,200,000 | $ 6,200,000 | |||||||
2.89% promissory note receivable due April 2024 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Notes receivable, fair value | $ 1,100,000 | $ 1,100,000 | |||||||
Interest on note receivable | 2.89% | 2.89% | 2.89% | 2.89% | |||||
12.00% promissory note receivable from Founders | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Notes receivable, fair value | $ 15,000,000 | $ 15,000,000 | |||||||
Interest on note receivable | 12% | 12% |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Debt Instrument [Line Items] | |||
Total long-term debt, gross amount | $ 367,762 | $ 316,250 | $ 316,250 |
Total long-term debt, debt discount and issuance costs | (8,076) | (3,347) | (3,729) |
Total long-term debt, carrying amount | 359,686 | 312,903 | 312,521 |
Senior Notes | 2029 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross amount | 230,000 | 0 | 0 |
Total long-term debt, debt discount and issuance costs | (6,970) | 0 | 0 |
Total long-term debt, carrying amount | 223,030 | 0 | 0 |
Senior Notes | 2025 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross amount | 103,373 | 172,500 | 172,500 |
Total long-term debt, debt discount and issuance costs | (940) | (2,172) | (2,383) |
Total long-term debt, carrying amount | 102,433 | 170,328 | 170,117 |
Senior Notes | 2024 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Total long-term debt, gross amount | 34,389 | 143,750 | 143,750 |
Total long-term debt, debt discount and issuance costs | (166) | (1,175) | (1,346) |
Total long-term debt, carrying amount | $ 34,223 | $ 142,575 | $ 142,404 |
Debt - Principal Payment Schedu
Debt - Principal Payment Schedule (Details) - Senior Notes $ in Thousands | Jun. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
Remaining 2023 | $ 0 |
Fiscal 2024 | 34,389 |
Fiscal 2025 | 103,373 |
Fiscal 2026 | 0 |
Fiscal 2027 | 0 |
Thereafter | 230,000 |
Carrying Amount | 367,762 |
2029 Convertible Notes | |
Debt Instrument [Line Items] | |
Remaining 2023 | 0 |
Fiscal 2024 | 0 |
Fiscal 2025 | 0 |
Fiscal 2026 | 0 |
Fiscal 2027 | 0 |
Thereafter | 230,000 |
Carrying Amount | 230,000 |
2025 Convertible Notes | |
Debt Instrument [Line Items] | |
Remaining 2023 | 0 |
Fiscal 2024 | 0 |
Fiscal 2025 | 103,373 |
Fiscal 2026 | 0 |
Fiscal 2027 | 0 |
Thereafter | 0 |
Carrying Amount | 103,373 |
2024 Convertible Notes | |
Debt Instrument [Line Items] | |
Remaining 2023 | 0 |
Fiscal 2024 | 34,389 |
Fiscal 2025 | 0 |
Fiscal 2026 | 0 |
Fiscal 2027 | 0 |
Thereafter | 0 |
Carrying Amount | $ 34,389 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Debt Instrument [Line Items] | |||||
Net loss on extinguishment of debt | $ 3,500 | $ 3,545 | $ 0 | ||
Senior Notes | 2029 Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Contractual interest expense | $ 2,157 | $ 0 | 4,744 | 0 | |
Amortization of deferred financing costs | 239 | 0 | 488 | 0 | |
Total interest expense | 2,396 | 0 | 5,232 | 0 | |
Senior Notes | 2025 Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Contractual interest expense | 614 | 1,025 | 2,170 | 3,073 | |
Amortization of deferred financing costs | 121 | 197 | 429 | 586 | |
Net loss on extinguishment of debt | 0 | 0 | (5,389) | 0 | |
Total interest expense | 735 | 1,222 | (2,790) | 3,659 | |
Senior Notes | 2024 Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Contractual interest expense | 247 | 1,033 | 1,370 | 3,099 | |
Amortization of deferred financing costs | 39 | 156 | 218 | 465 | |
Net loss on extinguishment of debt | 0 | 0 | 8,935 | 0 | |
Total interest expense | $ 286 | $ 1,189 | $ 10,523 | $ 3,564 |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes Due 2029 (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Dec. 12, 2022 day $ / shares | May 14, 2018 USD ($) day $ / shares | Jul. 05, 2017 USD ($) day $ / shares | Dec. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | $ | $ 3,500,000 | $ 3,545,000 | $ 0 | |||||
2029 Convertible Notes | Class A Common Stock | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion rate per $1,000 principal amount | 0.0890313 | |||||||
2029 Convertible Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 3.75% | 3.75% | ||||||
Principle amount | $ | $ 230,000,000 | |||||||
Effective interest rate | 4.28% | 4.28% | ||||||
Conversion price, per share (in dollars per share) | $ / shares | $ 11.23 | |||||||
2029 Convertible Notes | Senior Notes | Debt Conversion, Condition One | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days (whether or not consecutive) | 20 | |||||||
Threshold consecutive trading days | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
2029 Convertible Notes | Senior Notes | Debt Conversion, Condition One | Debt Instrument, Redemption, Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days (whether or not consecutive) | 20 | |||||||
Threshold consecutive trading days | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
Repurchase price, percent of principal amount | 100% | |||||||
2029 Convertible Notes | Senior Notes | Debt Conversion, Condition Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold consecutive trading days | 5 | |||||||
Threshold percentage of stock price trigger | 98% | |||||||
Threshold business days | 5 | |||||||
2024 Convertible Notes | Class A Common Stock | ||||||||
Debt Instrument [Line Items] | ||||||||
Conversion rate per $1,000 principal amount | 0.1 | |||||||
2024 Convertible Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 2.875% | |||||||
Principle amount | $ | $ 143,750,000 | |||||||
Effective interest rate | 3.35% | 3.35% | ||||||
Conversion price, per share (in dollars per share) | $ / shares | $ 10 | |||||||
Loss on extinguishment of debt | $ | $ 0 | $ 0 | $ 8,935,000 | 0 | ||||
2024 Convertible Notes | Senior Notes | Debt Conversion, Condition One | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days (whether or not consecutive) | 20 | |||||||
Threshold consecutive trading days | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
2024 Convertible Notes | Senior Notes | Debt Conversion, Condition One | Debt Instrument, Redemption, Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days (whether or not consecutive) | 20 | |||||||
Threshold consecutive trading days | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
Repurchase price, percent of principal amount | 100% | |||||||
2024 Convertible Notes | Notes Repurchases | ||||||||
Debt Instrument [Line Items] | ||||||||
Repurchased principal amount | $ | $ 109,400,000 | $ 109,400,000 | ||||||
Repurchase price | $ | 117,500,000 | |||||||
2025 Convertible Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 2.375% | |||||||
Principle amount | $ | $ 172,500,000 | |||||||
Effective interest rate | 2.88% | 2.88% | ||||||
Conversion rate per $1,000 principal amount | 0.0628931 | |||||||
Conversion price, per share (in dollars per share) | $ / shares | $ 15.90 | |||||||
Loss on extinguishment of debt | $ | $ 0 | $ 0 | $ (5,389,000) | $ 0 | ||||
2025 Convertible Notes | Senior Notes | Debt Instrument, Redemption, Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold consecutive trading days | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
Repurchase price, percent of principal amount | 100% | |||||||
2025 Convertible Notes | Senior Notes | Debt Conversion, Condition One | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold trading days (whether or not consecutive) | 20 | |||||||
Threshold consecutive trading days | 30 | |||||||
Threshold percentage of stock price trigger | 130% | |||||||
2025 Convertible Notes | Senior Notes | Debt Conversion, Condition Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Threshold consecutive trading days | 5 | |||||||
Threshold percentage of stock price trigger | 98% | |||||||
Threshold business days | 5 | |||||||
2025 Convertible Notes | Notes Repurchases | ||||||||
Debt Instrument [Line Items] | ||||||||
Repurchased principal amount | $ | $ 69,100,000 | $ 69,100,000 | ||||||
Repurchase price | $ | $ 62,900,000 |
Debt - Convertible Senior Not_2
Debt - Convertible Senior Notes Due 2025 (Details) - 2025 Convertible Notes - Senior Notes | May 14, 2018 USD ($) day $ / shares | Jun. 30, 2023 USD ($) |
Debt Instrument [Line Items] | ||
Stated interest rate | 2.375% | |
Principle amount | $ | $ 172,500,000 | |
Amount outstanding | $ | $ 103,400,000 | |
Effective interest rate | 2.88% | |
Conversion price, per share (in dollars per share) | $ / shares | $ 15.90 | |
Conversion rate per $1,000 principal amount | 0.0628931 | |
Debt Instrument, Redemption, Period One | ||
Debt Instrument [Line Items] | ||
Threshold consecutive trading days | 30 | |
Threshold percentage of stock price trigger | 130% | |
Repurchase price, percent of principal amount | 100% | |
Debt Conversion, Condition One | ||
Debt Instrument [Line Items] | ||
Threshold trading days (whether or not consecutive) | 20 | |
Threshold consecutive trading days | 30 | |
Threshold percentage of stock price trigger | 130% | |
Debt Conversion, Condition Two | ||
Debt Instrument [Line Items] | ||
Threshold consecutive trading days | 5 | |
Threshold percentage of stock price trigger | 98% | |
Threshold business days | 5 |
Debt - Convertible Senior Not_3
Debt - Convertible Senior Notes Due 2024 (Details) - 2024 Convertible Notes | Jul. 05, 2017 USD ($) day $ / shares | Jun. 30, 2023 USD ($) |
Class A Common Stock | ||
Debt Instrument [Line Items] | ||
Conversion rate per $1,000 principal amount | 0.1 | |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.875% | |
Principle amount | $ | $ 143,750,000 | |
Amount outstanding | $ | $ 34,400,000 | |
Effective interest rate | 3.35% | |
Conversion price, per share (in dollars per share) | $ / shares | $ 10 | |
Senior Notes | Debt Conversion, Condition One | ||
Debt Instrument [Line Items] | ||
Threshold trading days (whether or not consecutive) | 20 | |
Threshold consecutive trading days | 30 | |
Threshold percentage of stock price trigger | 130% | |
Senior Notes | Debt Conversion, Condition One | Debt Instrument, Redemption, Period One | ||
Debt Instrument [Line Items] | ||
Threshold trading days (whether or not consecutive) | 20 | |
Threshold consecutive trading days | 30 | |
Threshold percentage of stock price trigger | 130% | |
Repurchase price, percent of principal amount | 100% | |
Senior Notes | Debt Conversion, Condition Two | ||
Debt Instrument [Line Items] | ||
Business day threshold | 5 days | |
Threshold consecutive trading days | 5 days | |
Maximum percentage of stock price product | 98% |
Common Stock and Stock Compen_3
Common Stock and Stock Compensation - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 14 Months Ended | ||||
May 03, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock repurchased and retired (in shares) | 578,703 | |||||||
Common stock repurchased and retired | $ 3,004 | $ 3,951 | $ 7,027 | |||||
Repurchase of common stock | $ 5,000 | $ 13,982 | $ 0 | |||||
Class A Common Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock repurchase program, amount authorized | $ 50,000 | |||||||
Stock repurchase program, period (in years) | 3 years | |||||||
Common stock repurchased and retired (in shares) | 1,275,646 | |||||||
Common stock repurchased and retired | $ 11,000 | |||||||
Stock repurchased during period, value | $ 3,000 |
Common Stock and Stock Compen_4
Common Stock and Stock Compensation - Restricted Stock Award Activity (Details) - Restricted stock | 9 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Shares | |
Outstanding, beginning balance (in shares) | 2,113,323 |
Granted (in shares) | 1,008,180 |
Released (in shares) | (480,238) |
Cancelled (in shares) | (78,029) |
Outstanding, ending balance (in shares) | 2,563,236 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 5.88 |
Granted (in dollars per share) | $ / shares | 7.82 |
Released (in dollars per share) | $ / shares | 4.86 |
Cancelled (in dollars per share) | $ / shares | 6.70 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 6.81 |
Shares withheld to satisfy related income tax withholding (in shares) | 114,311 |
Contingencies (Details)
Contingencies (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Settlement, expense | $ 2 |
Segment Information - Operating
Segment Information - Operating Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Revenues: | ||||
Total revenues | $ 255,812 | $ 215,842 | $ 778,562 | $ 652,818 |
Gross profit | 148,785 | 129,508 | 450,464 | 390,547 |
Segment and corporate expenses (income): | ||||
Store expenses | 104,932 | 89,430 | 307,004 | 261,944 |
General and administrative | 17,876 | 18,715 | 48,961 | 46,487 |
Depreciation and amortization | 8,026 | 7,746 | 23,977 | 22,770 |
Gain on sale or disposal of assets | (29) | 28 | (692) | |
Other | (2,632) | 0 | (5,097) | 0 |
Interest expense | 3,414 | 2,693 | 12,994 | 7,651 |
Interest income | (2,584) | (190) | (5,146) | (749) |
Equity in net income (loss) of unconsolidated affiliates | (1,523) | (1,758) | 29,394 | (1,457) |
Other (income) expense | (5) | (210) | (159) | 41 |
Income before income taxes | 21,310 | 13,082 | 38,508 | 54,552 |
Segments | ||||
Revenues: | ||||
Total revenues | 255,812 | 215,842 | 778,562 | 652,818 |
Gross profit | 148,785 | 129,508 | 450,464 | 390,547 |
Segment and corporate expenses (income): | ||||
Store expenses | 104,932 | 89,430 | 307,004 | 261,944 |
General and administrative | 0 | 0 | (3) | 0 |
Depreciation and amortization | 4,808 | 4,559 | 14,670 | 13,725 |
Gain on sale or disposal of assets | (29) | 28 | (4) | |
Other | (2,632) | (5,097) | ||
Interest expense | 0 | 0 | 0 | 0 |
Interest income | (257) | (190) | (725) | (627) |
Equity in net income (loss) of unconsolidated affiliates | (1,523) | (1,758) | 29,394 | (1,457) |
Other (income) expense | (55) | (144) | (21) | 52 |
Income before income taxes | 43,541 | 37,611 | 105,214 | 116,914 |
Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 184,092 | 158,752 | 567,448 | 484,729 |
Gross profit | 110,192 | 98,361 | 337,883 | 301,120 |
Segment and corporate expenses (income): | ||||
Store expenses | 75,389 | 66,036 | 220,639 | 195,217 |
General and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 2,505 | 2,572 | 7,820 | 7,867 |
Gain on sale or disposal of assets | 0 | 84 | 0 | |
Other | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 |
Interest income | (1) | (1) | (2) | (1) |
Equity in net income (loss) of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Other (income) expense | 0 | 0 | 0 | 0 |
Income before income taxes | 32,299 | 29,754 | 109,342 | 98,037 |
Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 71,705 | 57,069 | 211,067 | 167,996 |
Gross profit | 38,578 | 31,126 | 112,534 | 89,334 |
Segment and corporate expenses (income): | ||||
Store expenses | 29,543 | 23,394 | 86,365 | 66,727 |
General and administrative | 0 | 0 | (3) | 0 |
Depreciation and amortization | 2,303 | 1,987 | 6,850 | 5,858 |
Gain on sale or disposal of assets | (29) | (56) | (4) | |
Other | (2,632) | (5,097) | ||
Interest expense | 0 | 0 | 0 | 0 |
Interest income | (256) | (189) | (723) | (626) |
Equity in net income (loss) of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Other (income) expense | (65) | (163) | (41) | 37 |
Income before income taxes | 9,714 | 6,097 | 25,239 | 17,342 |
Segments | Other Investments | ||||
Revenues: | ||||
Total revenues | 15 | 21 | 47 | 93 |
Gross profit | 15 | 21 | 47 | 93 |
Segment and corporate expenses (income): | ||||
Store expenses | 0 | 0 | 0 | 0 |
General and administrative | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Gain on sale or disposal of assets | 0 | 0 | 0 | |
Other | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 |
Interest income | 0 | 0 | 0 | 0 |
Equity in net income (loss) of unconsolidated affiliates | (1,523) | (1,758) | 29,394 | (1,457) |
Other (income) expense | 10 | 19 | 20 | 15 |
Income before income taxes | 1,528 | 1,760 | (29,367) | 1,535 |
Corporate Items | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Segment and corporate expenses (income): | ||||
Store expenses | 0 | 0 | 0 | 0 |
General and administrative | 17,876 | 18,715 | 48,964 | 46,487 |
Depreciation and amortization | 3,218 | 3,187 | 9,307 | 9,045 |
Gain on sale or disposal of assets | 0 | 0 | (688) | |
Other | 0 | 0 | ||
Interest expense | 3,414 | 2,693 | 12,994 | 7,651 |
Interest income | (2,327) | 0 | (4,421) | (122) |
Equity in net income (loss) of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Other (income) expense | 50 | (66) | (138) | (11) |
Income before income taxes | (22,231) | (24,529) | (66,706) | (62,362) |
Merchandise sales | ||||
Revenues: | ||||
Total revenues | 147,980 | 128,334 | 464,274 | 399,610 |
Cost of goods sold | 95,069 | 80,167 | 297,285 | 245,524 |
Merchandise sales | Segments | ||||
Revenues: | ||||
Total revenues | 147,980 | 128,334 | 464,274 | 399,610 |
Cost of goods sold | 95,069 | 80,167 | 297,285 | 245,524 |
Merchandise sales | Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 102,177 | 94,005 | 329,231 | 296,147 |
Cost of goods sold | 62,799 | 55,885 | 203,698 | 172,330 |
Merchandise sales | Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 45,803 | 34,329 | 135,043 | 103,463 |
Cost of goods sold | 32,270 | 24,282 | 93,587 | 73,194 |
Merchandise sales | Segments | Other Investments | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Merchandise sales | Corporate Items | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Jewelry scrapping sales | ||||
Revenues: | ||||
Total revenues | 13,931 | 7,168 | 34,640 | 19,802 |
Cost of goods sold | 11,958 | 6,167 | 30,813 | 16,747 |
Jewelry scrapping sales | Segments | ||||
Revenues: | ||||
Total revenues | 13,931 | 7,168 | 34,640 | 19,802 |
Cost of goods sold | 11,958 | 6,167 | 30,813 | 16,747 |
Jewelry scrapping sales | Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 13,098 | 5,404 | 30,088 | 13,864 |
Cost of goods sold | 11,101 | 4,506 | 25,867 | 11,279 |
Jewelry scrapping sales | Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 833 | 1,764 | 4,552 | 5,938 |
Cost of goods sold | 857 | 1,661 | 4,946 | 5,468 |
Jewelry scrapping sales | Segments | Other Investments | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Jewelry scrapping sales | Corporate Items | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Pawn service charges | ||||
Revenues: | ||||
Total revenues | 93,819 | 80,291 | 279,442 | 232,999 |
Pawn service charges | Segments | ||||
Revenues: | ||||
Total revenues | 93,819 | 80,291 | 279,442 | 232,999 |
Pawn service charges | Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 68,790 | 59,322 | 208,045 | 174,651 |
Pawn service charges | Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 25,029 | 20,969 | 71,397 | 58,348 |
Pawn service charges | Segments | Other Investments | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Pawn service charges | Corporate Items | ||||
Revenues: | ||||
Total revenues | 0 | 0 | 0 | 0 |
Other revenues | ||||
Revenues: | ||||
Total revenues | 82 | 49 | 206 | 407 |
Other revenues | Segments | ||||
Revenues: | ||||
Total revenues | 82 | 49 | 206 | 407 |
Other revenues | Segments | U.S. Pawn | ||||
Revenues: | ||||
Total revenues | 27 | 21 | 84 | 67 |
Other revenues | Segments | Latin America Pawn | ||||
Revenues: | ||||
Total revenues | 40 | 7 | 75 | 247 |
Other revenues | Segments | Other Investments | ||||
Revenues: | ||||
Total revenues | 15 | 21 | 47 | 93 |
Other revenues | Corporate Items | ||||
Revenues: | ||||
Total revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Segment Information - Revenues
Segment Information - Revenues and Long-Lived Assets by Geographic Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Segment Reporting Information [Line Items] | |||
Pawn loans | $ 229,379 | $ 210,009 | $ 204,155 |
Inventory, net | 154,944 | $ 151,615 | 132,713 |
Segments | U.S. Pawn | |||
Segment Reporting Information [Line Items] | |||
Pawn loans | 178,877 | 159,680 | |
Inventory, net | 114,910 | 101,831 | |
Segments | Latin America Pawn | |||
Segment Reporting Information [Line Items] | |||
Pawn loans | 50,502 | 44,475 | |
Inventory, net | 40,034 | 30,882 | |
Segments | Other Investments | |||
Segment Reporting Information [Line Items] | |||
Pawn loans | 0 | 0 | |
Inventory, net | 0 | 0 | |
Corporate Items | |||
Segment Reporting Information [Line Items] | |||
Pawn loans | 0 | 0 | |
Inventory, net | $ 0 | $ 0 |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Information - Supplemental Consolidated Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Gross pawn service charges receivable | $ 47,071 | $ 44,192 | $ 42,277 |
Allowance for uncollectible pawn service charges receivable | (12,112) | (10,716) | (10,277) |
Pawn service charges receivable, net | 34,959 | 33,476 | 32,000 |
Gross inventory | 157,590 | 153,673 | 136,475 |
Inventory reserves | (2,646) | (2,058) | (3,762) |
Inventory, net | 154,944 | 151,615 | 132,713 |
Prepaid expenses and other | 6,081 | 8,336 | 14,660 |
Accounts receivable, notes receivable and other | 29,860 | 8,435 | 7,465 |
Income taxes prepaid and receivable | 8,984 | 17,923 | 7,697 |
Prepaid expenses and other current assets | 44,925 | 34,694 | 29,822 |
Property and equipment, gross | 335,296 | 306,667 | 298,502 |
Accumulated depreciation | (273,447) | (249,942) | (246,997) |
Property and equipment, net | 61,849 | 56,725 | 51,505 |
Accounts payable | 19,220 | 24,056 | 19,480 |
Accrued payroll | 13,668 | 8,365 | 11,840 |
Incentive accrual | 13,564 | 17,403 | 14,128 |
Other payroll related expenses | 6,059 | 9,592 | 7,167 |
Accrued sales and VAT taxes | 6,663 | 7,279 | 7,672 |
Accrued income taxes payable | 2,646 | 2,663 | 1,116 |
Other current liabilities | 12,638 | 15,151 | 15,163 |
Accounts payable, accrued expenses and other current liabilities | $ 74,458 | $ 84,509 | $ 76,566 |
Supplemental Consolidated Fin_4
Supplemental Consolidated Financial Information - Supplemental of Consolidated Statements of Cash Flows Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental disclosure of cash flow information | ||||
Cash and cash equivalents | $ 237,974 | $ 222,342 | $ 206,028 | |
Restricted cash | 8,549 | 8,614 | ||
Total cash and cash equivalents and restricted cash | 246,523 | 230,956 | $ 214,369 | $ 263,624 |
Non-cash investing and financing activities: | ||||
Pawn loans forfeited and transferred to inventory | 238,899 | 204,662 | ||
Transfer of consideration for other investment | 0 | 1,500 | ||
Transfer of equity consideration for acquisition | 99 | 0 | ||
Acquisition earn-out contingency | 2,000 | $ 0 | ||
Accrued acquisition consideration | $ 1,220 |
Uncategorized Items - ezpw-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |