Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2023 | Jan. 24, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 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 $.01 per share | |
Trading Symbol | EZPW | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0000876523 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --09-30 | |
Common Stock Class A Non-voting | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 52,183,780 | |
Common Stock Class B Voting | ||
Document Information [Line Items] | ||
No Trading Symbol Class B | ||
Entity Common Stock, Shares Outstanding | 2,970,171 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | |||
Cash and cash equivalents | $ 218,516 | $ 220,595 | $ 207,658 |
Restricted cash | 8,470 | 8,373 | 8,359 |
Pawn loans | 243,252 | 245,766 | 209,855 |
Pawn service charges receivable, net | 40,002 | 38,885 | 34,921 |
Inventory, net | 164,927 | 166,477 | 156,064 |
Prepaid expenses and other current assets | 44,001 | 39,623 | 45,559 |
Total current assets | 719,168 | 719,719 | 662,416 |
Investments in unconsolidated affiliates | 10,125 | 10,987 | 37,789 |
Other investments | 51,220 | 36,220 | 39,220 |
Property and equipment, net | 68,998 | 68,096 | 55,612 |
Right-of-use assets, net | 231,103 | 234,388 | 229,991 |
Goodwill | 303,799 | 302,372 | 297,361 |
Intangible assets, net | 56,977 | 58,216 | 58,029 |
Notes receivable, net | 0 | 0 | 1,224 |
Deferred tax asset, net | 25,984 | 25,702 | 12,428 |
Other assets, net | 13,819 | 12,011 | 8,245 |
Total assets | 1,481,193 | 1,467,711 | 1,402,315 |
Current liabilities: | |||
Current maturities of long-term debt, net | 34,307 | 34,265 | 0 |
Accounts payable, accrued expenses and other current liabilities | 69,386 | 81,605 | 69,930 |
Customer layaway deposits | 18,324 | 18,920 | 16,276 |
Operating lease liabilities, current | 57,980 | 57,182 | 52,799 |
Total current liabilities | 179,997 | 191,972 | 139,005 |
Long-term debt, net | 326,223 | 325,847 | 358,984 |
Deferred tax liability, net | 372 | 435 | 0 |
Operating lease liabilities | 188,475 | 193,187 | 188,730 |
Other long-term liabilities | 11,243 | 10,502 | 10,261 |
Total liabilities | 706,310 | 721,943 | 696,980 |
Commitments and contingencies (Note 9) | |||
Stockholders’ equity: | |||
Additional paid-in capital | 343,870 | 346,181 | 343,012 |
Retained earnings | 457,929 | 431,140 | 414,929 |
Accumulated other comprehensive loss | (27,469) | (32,102) | (53,165) |
Total equity | 774,883 | 745,768 | 705,335 |
Total liabilities and equity | 1,481,193 | 1,467,711 | 1,402,315 |
Common Stock Class A Non-voting | |||
Stockholders’ equity: | |||
Common stock | 523 | 519 | 529 |
Common Stock Class B Voting | |||
Stockholders’ equity: | |||
Common stock | $ 30 | $ 30 | $ 30 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 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) | 52,272,594 | 51,869,569 | 52,877,930 |
Common stock, shares outstanding (in shares) | 52,272,594 | 51,869,569 | 52,877,930 |
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 | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues: | ||
Total revenues | $ 299,991 | $ 264,327 |
Gross profit | 172,573 | 152,497 |
Operating expenses: | ||
Store expenses | 110,555 | 100,803 |
General and administrative | 16,543 | 15,476 |
Depreciation and amortization | 8,565 | 7,988 |
Gain on sale or disposal of assets and other | (172) | (16) |
Total operating expenses | 135,491 | 124,251 |
Operating income | 37,082 | 28,246 |
Interest expense | 3,440 | 6,190 |
Interest income | (2,639) | (664) |
Equity in net income of unconsolidated affiliates | (1,153) | (1,584) |
Other income | (271) | (234) |
Income before income taxes | 37,705 | 24,538 |
Income tax expense | 9,235 | 7,760 |
Net income | $ 28,470 | $ 16,778 |
Basic earnings per share (in dollars per share) | $ 0.52 | $ 0.30 |
Diluted earnings per share (in dollars per share) | $ 0.36 | $ 0.25 |
Weighted-average basic shares outstanding (in shares) | 55,076 | 56,308 |
Weighted-average diluted shares outstanding (in shares) | 86,812 | 83,779 |
Merchandise sales | ||
Revenues: | ||
Total revenues | $ 179,403 | $ 163,787 |
Cost of revenues | 115,210 | 104,877 |
Jewelry scrapping sales | ||
Revenues: | ||
Total revenues | 14,082 | 7,884 |
Cost of revenues | 12,208 | 6,953 |
Pawn service charges | ||
Revenues: | ||
Total revenues | 106,449 | 92,593 |
Other revenues | ||
Revenues: | ||
Total revenues | $ 57 | $ 63 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 28,470 | $ 16,778 |
Other comprehensive income: | ||
Foreign currency translation adjustment, net of income tax benefit for our investment in unconsolidated affiliate of $57 and $396 for the three months ended December 31, 2023, and 2022, respectively | 4,633 | 2,504 |
Comprehensive income | $ 33,103 | $ 19,282 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax | $ (57) | $ (396) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
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 | |||
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 | 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 | 16,778 | 16,778 | |||
Transfer of equity consideration for acquisition (in shares) | 10 | ||||
Transfer of equity consideration for acquisition | 99 | 99 | |||
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, 2023 | 54,840 | ||||
Beginning balance at Sep. 30, 2023 | 745,768 | $ 549 | 346,181 | 431,140 | (32,102) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock compensation | 2,264 | 2,264 | |||
Release of restricted stock, net of shares withheld for taxes (in shares) | 758 | ||||
Release of restricted stock, net of shares withheld for taxes | 8 | $ 8 | |||
Taxes paid related to net share settlement of equity awards | (3,253) | (3,253) | |||
Foreign currency translation gain | 4,633 | 4,633 | |||
Purchase and retirement of treasury stock (in shares) | (355) | ||||
Purchase and retirement of treasury stock | (3,007) | $ (4) | (1,322) | (1,681) | |
Net income | 28,470 | 28,470 | |||
Ending balance (in shares) at Dec. 31, 2023 | 55,243 | ||||
Ending balance at Dec. 31, 2023 | $ 774,883 | $ 553 | $ 343,870 | $ 457,929 | $ (27,469) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating activities: | ||
Net income | $ 28,470 | $ 16,778 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 8,565 | 7,988 |
Amortization of debt discount and deferred financing costs | 417 | 378 |
Non-cash lease expense | 14,744 | 13,596 |
Deferred income taxes | 345 | 656 |
Other adjustments | (857) | (91) |
Provision for inventory reserve | (156) | 532 |
Stock compensation expense | 2,264 | 1,886 |
Equity in net income from investment in unconsolidated affiliates | (1,153) | (1,584) |
Net loss on extinguishment of debt | 0 | 3,545 |
Changes in operating assets and liabilities, net of business acquisitions: | ||
Pawn service charges receivable | (1,000) | (691) |
Inventory | 2,066 | (1,881) |
Prepaid expenses, other current assets and other assets | (5,823) | (2,280) |
Accounts payable, accrued expenses and other liabilities | (33,991) | (34,761) |
Customer layaway deposits | (719) | (752) |
Income taxes | 8,309 | 6,574 |
Dividends from unconsolidated affiliates | 0 | 1,775 |
Net cash provided by operating activities | 21,481 | 11,668 |
Investing activities: | ||
Loans made | (216,978) | (189,074) |
Loans repaid | 123,021 | 109,125 |
Recovery of pawn loan principal through sale of forfeited collateral | 98,209 | 88,030 |
Capital expenditures, net | (7,184) | (7,182) |
Acquisitions, net of cash acquired | (677) | (12,884) |
Issuance of notes receivable | 0 | (15,500) |
Investment in unconsolidated affiliate | 0 | (2,133) |
Investment in other investments | (15,000) | (15,000) |
Dividends from unconsolidated affiliates | 1,745 | 0 |
Net cash used in investing activities | (16,864) | (44,618) |
Financing activities: | ||
Taxes paid related to net share settlement of equity awards | (3,253) | (1,138) |
Proceeds from issuance of debt | 0 | 230,000 |
Debt issuance cost | 0 | (7,403) |
Cash paid on extinguishment of debt | 0 | (1,951) |
Payments on debt | 0 | (178,488) |
Purchase and retirement of treasury stock | (3,007) | (7,027) |
Payments of finance leases | (132) | 0 |
Net cash (used in) provided by financing activities | (6,392) | 33,993 |
Effect of exchange rate changes on cash and cash equivalents and restricted cash | (207) | 605 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (1,982) | 1,648 |
Cash and cash equivalents and restricted cash at beginning of period | 228,968 | 214,369 |
Cash and cash equivalents and restricted cash at end of period | $ 226,986 | $ 216,017 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 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-month period ended December 31, 2023, are not necessarily indicative of results that may be expected for the fiscal year ending September 30, 2024 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 2023 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. Merchandise Sales Revenue Recognition Customer layaway deposits are recorded as liabilities when a customer provides a deposit for merchandise. Customer layaway deposits are generally refundable upon cancellation. Our customer layaway deposits balance as of December 31, 2023, 2022 and September 30, 2023 was $18.3 million, $16.3 million and $18.9 million, respectively, and are generally recognized as revenue within a one-year period. Investments We account for our investment in Rich Data Corporation (“RDC”) in accordance with Accounting Standards Codification (“ASC”) 321, Investments — Equity Securities, and we have elected to use the measurement alternative to measure this investment at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. As of December 31, 2023 and September 30, 2023, the carrying value of our investment in RDC was $6.2 million. Refer to Note 5: Strategic Investments for details on our investment in Founders One, LLC (“Founders”). Recently Issued Accounting Pronouncements In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). ASU 2023-06 will impact various disclosure areas, including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, equity, derivatives, and transfers of financial assets. The amendments in this ASU 2023-06 will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses regularly provided to the chief operating decision maker (“CODM”) included within segment operating profit or loss. Additionally, the ASU requires a description of how the CODM utilizes segment operating profit or loss to assess segment performance. The requirements of this ASU 2023-07 are effective for the Company for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and retrospective application is required for all periods presented. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires disclosure of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The requirements of this ASU 2023-09 are effective for the Company for fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied on a prospective basis. Retrospective application is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. |
Goodwill
Goodwill | 3 Months Ended |
Dec. 31, 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: Three Months Ended December 31, 2023 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2023 $ 255,942 $ 46,430 $ 302,372 Acquisitions (a) 416 — 416 Effect of foreign currency translation changes — 1,011 1,011 Balances as of December 31, 2023 $ 256,358 $ 47,441 $ 303,799 (a) Amount represents goodwill recognized in connection with an immaterial acquisition within the U.S. Pawn segment and we have therefore omitted certain disclosures. Three Months Ended December 31, 2022 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2022 $ 245,503 $ 41,325 $ 286,828 Acquisitions (b) 9,413 — 9,413 Effect of foreign currency translation changes — 1,120 1,120 Balances as of December 31, 2022 $ 254,916 $ 42,445 $ 297,361 (b) Amount represents goodwill recognized in connection with acquisitions within the U.S. Pawn segment that were immaterial, individually and in the aggregate, and we have therefore omitted certain disclosures. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Dec. 31, 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 December 31, (in thousands, except per share amounts) 2023 2022 Basic earnings per common share: Net income - basic $ 28,470 $ 16,778 Weighted shares outstanding - basic 55,076 56,308 Basic earnings per common share $ 0.52 $ 0.30 Diluted earnings per common share: Net income - basic $ 28,470 $ 16,778 Add: Convertible Notes interest expense, net of tax* 2,659 4,540 Net income - diluted $ 31,129 $ 21,318 Weighted shares outstanding - basic 55,076 56,308 Equity-based compensation awards - effect of dilution** 1,318 1,118 Convertible Notes - effect of dilution*** 30,418 26,353 Weighted shares outstanding - diluted 86,812 83,779 Diluted earnings per common share $ 0.36 $ 0.25 Potential common shares excluded from the calculation of diluted earnings per common share above: Restricted stock**** 1,581 1,552 * The three months ended December 31,2022 includes $3.5 million loss on extinguishment of debt 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 price and initial 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 | 3 Months Ended |
Dec. 31, 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 two 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 December 31, 2023 December 31, 2022 September 30, 2023 Lease assets: Operating lease right-of-use assets Right-of-use assets, net $ 231,103 $ 229,991 $ 234,388 Financing lease assets Other assets 2,124 563 2,178 Total lease assets $ 233,227 $ 230,554 $ 236,566 Lease liabilities: Current: Operating lease liabilities Operating lease liabilities, current $ 57,980 $ 52,799 $ 57,182 Financing lease liabilities Accounts payable, accrued expenses and other current liabilities 572 121 530 Total current lease liabilities $ 58,552 $ 52,920 $ 57,712 Non-current: Operating lease liabilities Operating lease liabilities $ 188,475 $ 188,730 $ 193,187 Financing lease liabilities Other long-term liabilities 1,644 447 1,715 Total non-current lease liabilities $ 190,119 $ 189,177 $ 194,902 Total lease liabilities $ 248,671 $ 242,097 $ 252,614 The table below provides major components of our lease costs: Three Months Ended December 31, (in thousands) 2023 2022 Operating lease cost: Operating lease cost * $ 19,066 $ 17,495 Variable lease cost 4,215 3,852 Total operating lease cost $ 23,281 $ 21,347 Financing lease cost: Amortization of financing lease assets $ 151 $ 19 Interest on financing lease liabilities 65 11 Total financing lease cost $ 216 $ 30 Total lease cost $ 23,497 $ 21,377 * Includes a reduction for sublease rental income of $1.1 million and $0.8 million for the three months ended December 31, 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 $20.3 million and $21.4 million for the three months ended December 31, 2023 and 2022, respectively. Cash paid for principal and interest on finance leases was $0.1 million and $0.1 million, respectively, for the three months ended December 31, 2023 . There was no cash paid for principal and interest on finance leases during the three months ended December 31, 2022. The weighted-average term and discount rates for leases are as follows: Three Months Ended December 31, 2023 2022 Weighted-average remaining lease term (years): Operating leases 4.86 5.21 Financing leases 3.42 4.03 Weighted-average discount rate: Operating leases 8.53 % 8.36 % Financing leases 11.14 % 11.14 % As of December 31, 2023, maturities of lease liabilities under ASC 842 by fiscal year were as follows: (in thousands) Operating Leases Financing Leases Remaining 2024 $ 57,570 $ 597 Fiscal 2025 69,671 790 Fiscal 2026 58,523 790 Fiscal 2027 44,089 486 Fiscal 2028 28,904 8 Thereafter 42,810 — Total lease liabilities $ 301,567 $ 2,671 Less: portion representing imputed interest 55,112 455 Total net lease liabilities $ 246,455 $ 2,216 Less: current portion 57,980 572 Total long term net lease liabilities $ 188,475 $ 1,644 We recorded $9.3 million and $20.5 million in non-cash additions to our operating right-of-use assets and lease liabilities for the three months ended December 31, 2023 and 2022, respectively. We recorded $0.1 million and $0.4 million in non-cash finance lease additions for the three months ended December 31, 2023 and 2022, respectively. |
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 two 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 December 31, 2023 December 31, 2022 September 30, 2023 Lease assets: Operating lease right-of-use assets Right-of-use assets, net $ 231,103 $ 229,991 $ 234,388 Financing lease assets Other assets 2,124 563 2,178 Total lease assets $ 233,227 $ 230,554 $ 236,566 Lease liabilities: Current: Operating lease liabilities Operating lease liabilities, current $ 57,980 $ 52,799 $ 57,182 Financing lease liabilities Accounts payable, accrued expenses and other current liabilities 572 121 530 Total current lease liabilities $ 58,552 $ 52,920 $ 57,712 Non-current: Operating lease liabilities Operating lease liabilities $ 188,475 $ 188,730 $ 193,187 Financing lease liabilities Other long-term liabilities 1,644 447 1,715 Total non-current lease liabilities $ 190,119 $ 189,177 $ 194,902 Total lease liabilities $ 248,671 $ 242,097 $ 252,614 The table below provides major components of our lease costs: Three Months Ended December 31, (in thousands) 2023 2022 Operating lease cost: Operating lease cost * $ 19,066 $ 17,495 Variable lease cost 4,215 3,852 Total operating lease cost $ 23,281 $ 21,347 Financing lease cost: Amortization of financing lease assets $ 151 $ 19 Interest on financing lease liabilities 65 11 Total financing lease cost $ 216 $ 30 Total lease cost $ 23,497 $ 21,377 * Includes a reduction for sublease rental income of $1.1 million and $0.8 million for the three months ended December 31, 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 $20.3 million and $21.4 million for the three months ended December 31, 2023 and 2022, respectively. Cash paid for principal and interest on finance leases was $0.1 million and $0.1 million, respectively, for the three months ended December 31, 2023 . There was no cash paid for principal and interest on finance leases during the three months ended December 31, 2022. The weighted-average term and discount rates for leases are as follows: Three Months Ended December 31, 2023 2022 Weighted-average remaining lease term (years): Operating leases 4.86 5.21 Financing leases 3.42 4.03 Weighted-average discount rate: Operating leases 8.53 % 8.36 % Financing leases 11.14 % 11.14 % As of December 31, 2023, maturities of lease liabilities under ASC 842 by fiscal year were as follows: (in thousands) Operating Leases Financing Leases Remaining 2024 $ 57,570 $ 597 Fiscal 2025 69,671 790 Fiscal 2026 58,523 790 Fiscal 2027 44,089 486 Fiscal 2028 28,904 8 Thereafter 42,810 — Total lease liabilities $ 301,567 $ 2,671 Less: portion representing imputed interest 55,112 455 Total net lease liabilities $ 246,455 $ 2,216 Less: current portion 57,980 572 Total long term net lease liabilities $ 188,475 $ 1,644 We recorded $9.3 million and $20.5 million in non-cash additions to our operating right-of-use assets and lease liabilities for the three months ended December 31, 2023 and 2022, respectively. We recorded $0.1 million and $0.4 million in non-cash finance lease additions for the three months ended December 31, 2023 and 2022, respectively. |
Strategic Investments
Strategic Investments | 3 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Strategic Investments | NOTE 5: STRATEGIC INVESTMENTS Cash Converters International Limited As of December 31, 2023, we owned 273,939,157 shares, or approximately 43.7%, of Cash Converters. We acquired our original investment (representing approximately 30% of the outstanding shares) in November 2009 and have increased our ownership through the acquisition of additional shares periodically since that time. We received cash dividends from Cash Converters of $1.7 million and $1.8 million, during the three months ended December 31, 2023 and 2022, respectively. The following tables present summary financial information for Cash Converters most recently reported results at June 30, 2023 after translation to U.S. dollars: June 30, (in thousands) 2023 2022 Current assets $ 189,563 $ 158,987 Non-current assets 103,595 170,798 Total assets $ 293,158 $ 329,785 Current liabilities $ 97,630 $ 59,256 Non-current liabilities 58,777 53,045 Shareholders’ equity 136,751 217,484 Total liabilities and shareholders’ equity $ 293,158 $ 329,785 Full-Year Ended June 30, (in thousands) 2023 2022 Gross revenues $ 203,608 $ 178,215 Gross profit $ 125,709 $ 116,106 Net (loss) profit $ (65,351) $ 8,099 During the three months ended December 31, 2023 and 2022, we recorded our share of income of $1.2 million and $1.6 million, respectively, from Cash Converters, included in “Equity in net income of unconsolidated affiliates” in the condensed consolidated statements of operations. 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. On December 2, 2022, we contributed an additional $15.0 million to Founders associated with our preferred interest. 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. In October 2023, we contributed an additional $15.0 million to Founders associated with our preferred interest, bringing our total equity investment in Founders to $45.0 million. 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 ASC 321, Investments — Equity Securities. As of December 31, 2023, our $45.0 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 condensed consolidated balance sheets, respectively. As of December 31, 2023, our maximum exposure for losses related to our investment in Founders was our $45.0 million equity investment and $15.0 million Demand Promissory Note plus accrued and unpaid interest. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 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 December 31, 2023 December 31, 2023 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: Promissory note receivable due April 2024 $ 1,259 $ 1,259 $ — $ — $ 1,259 Promissory note receivable from Founders 17,073 17,073 — — 17,073 Investments in unconsolidated affiliates 10,125 39,528 39,528 — — Financial liabilities: 2024 Convertible Notes $ 34,307 $ 34,733 $ — $ 34,733 $ — 2025 Convertible Notes 102,695 94,173 — 94,173 — 2029 Convertible Notes 223,528 236,900 — 236,900 — Carrying Value Estimated Fair Value December 31, 2022 December 31, 2022 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: Promissory note receivable due April 2024 $ 1,224 $ 1,224 $ — $ — $ 1,224 Promissory note receivable from Founders 15,100 15,100 — — 15,100 Investments in unconsolidated affiliates 37,789 43,497 43,497 — — Financial liabilities: 2024 Convertible Notes $ 34,143 $ 35,851 $ — $ 35,851 $ — 2025 Convertible Notes 102,192 89,883 — 89,883 — 2029 Convertible Notes 222,649 225,975 — 225,975 — Carrying Value Estimated Fair Value September 30, 2023 September 30, 2023 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: Promissory note receivable due April 2024 $ 1,251 $ 1,251 $ — $ — $ 1,251 Promissory note receivable from Founders 16,500 16,500 — — 16,500 Investments in unconsolidated affiliates 10,987 35,998 35,998 — — Financial liabilities: 2024 Convertible Notes $ 34,265 $ 35,765 $ — $ 35,765 $ — 2025 Convertible Notes 102,563 96,137 — 96,137 — 2029 Convertible Notes 223,284 224,112 — 224,112 — Based primarily on the short-term nature of cash and cash equivalents, pawn loans, pawn service charges receivable and other liabilities, we estimate that their 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 liabilities 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. 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. Based primarily on the short-term nature of the note, we estimate that its carrying value approximates fair value as of December 31, 2023. As of December 31, 2023, our $1.3 million carrying value of the promissory note is recorded within “Prepaid expenses and other current assets” in our condensed consolidated balance sheets. 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. As of December 31, 2023, the interest rate on the note was 15.00% per annum, and all principal and accrued interest is due on demand. Based primarily on the short-term nature of the note, we estimate that its carrying value approximates fair value as of December 31, 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. We measured 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 | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 7: DEBT The following table presents the Company's debt instruments outstanding: December 31, 2023 December 31, 2022 September 30, 2023 (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 $ (6,472) $ 223,528 $ 230,000 $ (7,351) $ 222,649 $ 230,000 $ (6,716) $ 223,284 2025 Convertible Notes 103,373 (678) 102,695 103,373 (1,181) 102,192 103,373 (810) 102,563 2024 Convertible Notes 34,389 (82) 34,307 34,389 (246) 34,143 34,389 (124) 34,265 Total $ 367,762 $ (7,232) $ 360,530 $ 367,762 $ (8,778) $ 358,984 $ 367,762 $ (7,650) $ 360,112 Less current portion 34,389 (82) 34,307 — — — 34,389 (124) 34,265 Total long-term debt $ 333,373 $ (7,150) $ 326,223 $ 367,762 $ (8,778) $ 358,984 $ 333,373 $ (7,526) $ 325,847 The following table presents the Company’s contractual maturities related to the debt instruments as of December 31, 2023: Schedule of Contractual Maturities (in thousands) 2029 Convertible Notes 2025 Convertible Notes 2024 Convertible Notes Total Remaining 2024 $ — $ — $ 34,389 $ 34,389 Fiscal 2025 — 103,373 — 103,373 Fiscal 2026 — — — — Fiscal 2027 — — — — Fiscal 2028 — — — — 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 months ended December 31, 2023 and 2022: Three Months Ended December 31, (in thousands) 2023 2022 2029 Convertible Notes: Contractual interest expense $ 2,156 $ 431 Amortization of deferred financing costs 244 52 Total interest expense $ 2,400 $ 483 2025 Convertible Notes: Contractual interest expense $ 614 $ 942 Amortization of deferred financing costs 131 188 Gain on extinguishment — (5,389) Total interest expense $ 745 $ (4,259) 2024 Convertible Notes: Contractual interest expense $ 247 $ 876 Amortization of deferred financing costs 42 138 Loss on extinguishment — 8,935 Total interest expense $ 289 $ 9,949 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 December 31, 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 months ended December 31, 2023 was approximately 4.28%. As of December 31, 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 December 31, 2023. As of December 31, 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 for the three months ended December 31, 2022. 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 December 31, 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 months ended December 31, 2023 was approximately 2.88% for the 2025 Convertible Notes. As of December 31, 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. 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 December 31, 2023. As of December 31, 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 December 31, 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 months ended December 31, 2023 was approximately 3.35%. As of December 31, 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 would have been 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 was 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 December 31, 2023. As of December 31, 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 | 3 Months Ended |
Dec. 31, 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 December 31, 2023, we had repurchased and retired 1,981,927 shares of our Class A Common Stock for $17.0 million under the Common Stock Repurchase Program, of which 354,882 shares were repurchased and retired for $3.0 million during the quarter ended December 31, 2023. During the quarter ended December 31, 2022, 243,062 shares were repurchased and retired for $2.0 million under the Common Stock Repurchase Program. 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, 2023 2,555,899 $ 6.80 Granted (a) 1,349,752 7.39 Released (b) (1,135,138) 4.96 Cancelled (32,566) 6.96 Outstanding as of December 31, 2023 2,737,947 $ 7.85 (a) Includes performance adjustment of 353,993 shares awarded above their target grants resulting from the achievement of performance targets established at the grant date. (b) 377,231 shares were withheld to satisfy related income tax withholding. |
Contingencies
Contingencies | 3 Months Ended |
Dec. 31, 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. 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. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 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 of Cash Converters along with our investment in RDC and our investment in and notes receivable from Founders. 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 income (loss) before income taxes tables present revenue for each reportable segment, disaggregated revenue within our reportable segments and Corporate, segment profits and segment contribution. Three Months Ended December 31, 2023 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 125,513 $ 53,890 $ — $ 179,403 $ — $ 179,403 Jewelry scrapping sales 12,815 1,267 — 14,082 — 14,082 Pawn service charges 79,073 27,376 — 106,449 — 106,449 Other revenues 37 16 4 57 — 57 Total revenues 217,438 82,549 4 299,991 — 299,991 Merchandise cost of goods sold 78,709 36,501 — 115,210 — 115,210 Jewelry scrapping cost of goods sold 11,284 924 — 12,208 — 12,208 Gross profit 127,445 45,124 4 172,573 — 172,573 Segment and corporate expenses (income): Store expenses 77,255 33,300 — 110,555 — 110,555 General and administrative — — — — 16,543 16,543 Depreciation and amortization 2,624 2,339 — 4,963 3,602 8,565 Loss (gain) on sale or disposal of assets and other 26 (196) — (170) (2) (172) Interest expense — — — — 3,440 3,440 Interest income — (420) (573) (993) (1,646) (2,639) Equity in net income of unconsolidated affiliates — — (1,153) (1,153) — (1,153) Other (income) expense — (48) 1 (47) (224) (271) Segment contribution $ 47,540 $ 10,149 $ 1,729 $ 59,418 Income (loss) before income taxes $ 59,418 $ (21,713) $ 37,705 Three Months Ended December 31, 2022 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 118,314 $ 45,473 $ — $ 163,787 $ — $ 163,787 Jewelry scrapping sales 7,176 708 — 7,884 — 7,884 Pawn service charges 69,310 23,283 — 92,593 — 92,593 Other revenues 25 16 22 63 — 63 Total revenues 194,825 69,480 22 264,327 — 264,327 Merchandise cost of goods sold 73,256 31,621 — 104,877 — 104,877 Jewelry scrapping cost of goods sold 6,216 737 — 6,953 — 6,953 Gross profit 115,353 37,122 22 152,497 — 152,497 Segment and corporate expenses (income): Store expenses 73,304 27,499 — 100,803 — 100,803 General and administrative — (3) — (3) 15,479 15,476 Depreciation and amortization 2,755 2,215 — 4,970 3,018 7,988 Loss (gain) on sale or disposal of assets and other 3 (19) — (16) — (16) Interest expense — — — — 6,190 6,190 Interest income — (169) — (169) (495) (664) Equity in net income of unconsolidated affiliates — — (1,584) (1,584) — (1,584) Other expense (income) — 70 4 74 (308) (234) Segment contribution $ 39,291 $ 7,529 $ 1,602 $ 48,422 Income (loss) before income taxes $ 48,422 $ (23,884) $ 24,538 The following table presents separately identified segment assets: (in thousands) U.S. Pawn Latin America Pawn Other Investments (a) Corporate Items Total As of December 31, 2023 Pawn loans $ 190,766 $ 52,486 $ — $ — $ 243,252 Pawn service charges receivable, net 35,707 4,295 — — 40,002 Inventory, net 127,008 37,919 — — 164,927 Total assets 1,004,075 323,209 78,419 75,490 1,481,193 As of December 31, 2022 Pawn loans $ 166,886 $ 42,969 $ — $ — $ 209,855 Pawn service charges receivable, net 31,064 3,857 — — 34,921 Inventory, net 117,994 38,070 — — 156,064 Total assets 900,211 272,153 77,009 152,942 1,402,315 As of September 30, 2023 Pawn loans $ 190,624 $ 55,142 $ — $ — $ 245,766 Pawn service charges receivable, net 34,318 4,567 — — 38,885 Inventory, net 128,901 37,576 — — 166,477 Total assets 984,539 313,164 63,707 106,301 1,467,711 |
Supplemental Consolidated Finan
Supplemental Consolidated Financial Information | 3 Months Ended |
Dec. 31, 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) December 31, 2023 December 31, 2022 September 30, 2023 Gross pawn service charges receivable $ 50,919 $ 44,397 $ 50,881 Allowance for uncollectible pawn service charges receivable (10,917) (9,476) (11,996) Pawn service charges receivable, net $ 40,002 $ 34,921 $ 38,885 Gross inventory $ 167,660 $ 159,286 $ 169,138 Inventory reserves (2,733) (3,222) (2,661) Inventory, net $ 164,927 $ 156,064 $ 166,477 Prepaid expenses and other $ 6,868 $ 11,581 $ 4,106 Accounts receivable, notes receivable and other 34,032 22,730 30,548 Income taxes prepaid and receivable 3,101 11,248 4,969 Prepaid expenses and other current assets $ 44,001 $ 45,559 $ 39,623 Property and equipment, gross $ 352,291 $ 312,502 $ 345,461 Accumulated depreciation (283,293) (256,890) (277,365) Property and equipment, net $ 68,998 $ 55,612 $ 68,096 Accounts payable $ 18,200 $ 20,220 $ 23,022 Accrued payroll 7,682 4,952 11,472 Incentive accrual 6,859 6,010 18,544 Other payroll related expenses 7,849 10,911 5,262 Accrued sales and VAT taxes 6,089 8,086 5,565 Accrued income taxes payable 9,068 2,562 2,628 Other current liabilities 13,639 17,189 15,112 Accounts payable, accrued expenses and other current liabilities $ 69,386 $ 69,930 $ 81,605 The following table provides supplemental disclosure of condensed consolidated statements of cash flows information: Three Months Ended December 31, (in thousands) 2023 2022 Supplemental disclosure of cash flow information Cash and cash equivalents at beginning of period $ 220,595 $ 206,028 Restricted cash at beginning of period 8,373 8,341 Total cash and cash equivalents and restricted cash at beginning of period $ 228,968 $ 214,369 Cash and cash equivalents at end of period $ 218,516 $ 207,658 Restricted cash at end of period 8,470 8,359 Total cash and cash equivalents and restricted cash at end of period $ 226,986 $ 216,017 Non-cash investing and financing activities: Pawn loans forfeited and transferred to inventory $ 96,472 $ 84,851 Transfer of equity consideration for acquisition — 99 Acquisition earn-out contingency — 2,000 Accrued acquisition consideration 37 1,250 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net (loss) profit | $ 28,470 | $ 16,778 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Pablo Lagos Espinosa [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On November 29, 2023, Pablo Lagos Espinosa, Director, as sole beneficial owner of Lakeside Growth Enterprises, LP, entered into a prearranged trading plan to sell up to 20,000 shares of the Company’s Class A Non-Voting Common Stock between March 4, 2024 and February 28, 2025 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. |
Name | Pablo Lagos Espinosa |
Title | Director |
Adoption Date | November 29, 2023 |
Arrangement Duration | 361 days |
Aggregate Available | 20,000 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 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-month period ended December 31, 2023, are not necessarily indicative of results that may be expected for the fiscal year ending September 30, 2024 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 2023 Annual Report Principles of Consolidation |
Use of Estimates and Assumptions | 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. |
Merchandise Sales Revenue Recognition | Merchandise Sales Revenue Recognition Customer layaway deposits are recorded as liabilities when a customer provides a deposit for merchandise. Customer layaway deposits are generally refundable upon cancellation. Our customer layaway deposits balance as of December 31, 2023, 2022 and September 30, 2023 was $18.3 million, $16.3 million and $18.9 million, respectively, and are generally recognized as revenue within a one-year period. |
Investments | Investments |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06, Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). ASU 2023-06 will impact various disclosure areas, including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, equity, derivatives, and transfers of financial assets. The amendments in this ASU 2023-06 will be effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC, and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027. Early adoption is prohibited. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses regularly provided to the chief operating decision maker (“CODM”) included within segment operating profit or loss. Additionally, the ASU requires a description of how the CODM utilizes segment operating profit or loss to assess segment performance. The requirements of this ASU 2023-07 are effective for the Company for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted, and retrospective application is required for all periods presented. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires disclosure of specific categories and disaggregation of information in the rate reconciliation table. The ASU also requires disclosure of disaggregated information related to income taxes paid, income or loss from continuing operations before income tax expense or benefit, and income tax expense or benefit from continuing operations. The requirements of this ASU 2023-09 are effective for the Company for fiscal years beginning after December 15, 2024. Early adoption is permitted, and the amendments should be applied on a prospective basis. Retrospective application is permitted. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures. |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Dec. 31, 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: Three Months Ended December 31, 2023 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2023 $ 255,942 $ 46,430 $ 302,372 Acquisitions (a) 416 — 416 Effect of foreign currency translation changes — 1,011 1,011 Balances as of December 31, 2023 $ 256,358 $ 47,441 $ 303,799 (a) Amount represents goodwill recognized in connection with an immaterial acquisition within the U.S. Pawn segment and we have therefore omitted certain disclosures. Three Months Ended December 31, 2022 (in thousands) U.S. Pawn Latin America Pawn Consolidated Balances as of September 30, 2022 $ 245,503 $ 41,325 $ 286,828 Acquisitions (b) 9,413 — 9,413 Effect of foreign currency translation changes — 1,120 1,120 Balances as of December 31, 2022 $ 254,916 $ 42,445 $ 297,361 (b) Amount represents goodwill recognized in connection with acquisitions within the U.S. Pawn segment that were immaterial, individually and in the aggregate, and we have therefore omitted certain disclosures. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Dec. 31, 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 December 31, (in thousands, except per share amounts) 2023 2022 Basic earnings per common share: Net income - basic $ 28,470 $ 16,778 Weighted shares outstanding - basic 55,076 56,308 Basic earnings per common share $ 0.52 $ 0.30 Diluted earnings per common share: Net income - basic $ 28,470 $ 16,778 Add: Convertible Notes interest expense, net of tax* 2,659 4,540 Net income - diluted $ 31,129 $ 21,318 Weighted shares outstanding - basic 55,076 56,308 Equity-based compensation awards - effect of dilution** 1,318 1,118 Convertible Notes - effect of dilution*** 30,418 26,353 Weighted shares outstanding - diluted 86,812 83,779 Diluted earnings per common share $ 0.36 $ 0.25 Potential common shares excluded from the calculation of diluted earnings per common share above: Restricted stock**** 1,581 1,552 * The three months ended December 31,2022 includes $3.5 million loss on extinguishment of debt 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 price and initial 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) | 3 Months Ended |
Dec. 31, 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 December 31, 2023 December 31, 2022 September 30, 2023 Lease assets: Operating lease right-of-use assets Right-of-use assets, net $ 231,103 $ 229,991 $ 234,388 Financing lease assets Other assets 2,124 563 2,178 Total lease assets $ 233,227 $ 230,554 $ 236,566 Lease liabilities: Current: Operating lease liabilities Operating lease liabilities, current $ 57,980 $ 52,799 $ 57,182 Financing lease liabilities Accounts payable, accrued expenses and other current liabilities 572 121 530 Total current lease liabilities $ 58,552 $ 52,920 $ 57,712 Non-current: Operating lease liabilities Operating lease liabilities $ 188,475 $ 188,730 $ 193,187 Financing lease liabilities Other long-term liabilities 1,644 447 1,715 Total non-current lease liabilities $ 190,119 $ 189,177 $ 194,902 Total lease liabilities $ 248,671 $ 242,097 $ 252,614 |
Schedule of Lease Cost | The table below provides major components of our lease costs: Three Months Ended December 31, (in thousands) 2023 2022 Operating lease cost: Operating lease cost * $ 19,066 $ 17,495 Variable lease cost 4,215 3,852 Total operating lease cost $ 23,281 $ 21,347 Financing lease cost: Amortization of financing lease assets $ 151 $ 19 Interest on financing lease liabilities 65 11 Total financing lease cost $ 216 $ 30 Total lease cost $ 23,497 $ 21,377 * Includes a reduction for sublease rental income of $1.1 million and $0.8 million for the three months ended December 31, 2023 and 2022, respectively. The weighted-average term and discount rates for leases are as follows: Three Months Ended December 31, 2023 2022 Weighted-average remaining lease term (years): Operating leases 4.86 5.21 Financing leases 3.42 4.03 Weighted-average discount rate: Operating leases 8.53 % 8.36 % Financing leases 11.14 % 11.14 % |
Schedule of Operating Lease Maturity | As of December 31, 2023, maturities of lease liabilities under ASC 842 by fiscal year were as follows: (in thousands) Operating Leases Financing Leases Remaining 2024 $ 57,570 $ 597 Fiscal 2025 69,671 790 Fiscal 2026 58,523 790 Fiscal 2027 44,089 486 Fiscal 2028 28,904 8 Thereafter 42,810 — Total lease liabilities $ 301,567 $ 2,671 Less: portion representing imputed interest 55,112 455 Total net lease liabilities $ 246,455 $ 2,216 Less: current portion 57,980 572 Total long term net lease liabilities $ 188,475 $ 1,644 |
Strategic Investments (Tables)
Strategic Investments (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following tables present summary financial information for Cash Converters most recently reported results at June 30, 2023 after translation to U.S. dollars: June 30, (in thousands) 2023 2022 Current assets $ 189,563 $ 158,987 Non-current assets 103,595 170,798 Total assets $ 293,158 $ 329,785 Current liabilities $ 97,630 $ 59,256 Non-current liabilities 58,777 53,045 Shareholders’ equity 136,751 217,484 Total liabilities and shareholders’ equity $ 293,158 $ 329,785 Full-Year Ended June 30, (in thousands) 2023 2022 Gross revenues $ 203,608 $ 178,215 Gross profit $ 125,709 $ 116,106 Net (loss) profit $ (65,351) $ 8,099 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 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 December 31, 2023 December 31, 2023 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: Promissory note receivable due April 2024 $ 1,259 $ 1,259 $ — $ — $ 1,259 Promissory note receivable from Founders 17,073 17,073 — — 17,073 Investments in unconsolidated affiliates 10,125 39,528 39,528 — — Financial liabilities: 2024 Convertible Notes $ 34,307 $ 34,733 $ — $ 34,733 $ — 2025 Convertible Notes 102,695 94,173 — 94,173 — 2029 Convertible Notes 223,528 236,900 — 236,900 — Carrying Value Estimated Fair Value December 31, 2022 December 31, 2022 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: Promissory note receivable due April 2024 $ 1,224 $ 1,224 $ — $ — $ 1,224 Promissory note receivable from Founders 15,100 15,100 — — 15,100 Investments in unconsolidated affiliates 37,789 43,497 43,497 — — Financial liabilities: 2024 Convertible Notes $ 34,143 $ 35,851 $ — $ 35,851 $ — 2025 Convertible Notes 102,192 89,883 — 89,883 — 2029 Convertible Notes 222,649 225,975 — 225,975 — Carrying Value Estimated Fair Value September 30, 2023 September 30, 2023 Fair Value Measurement Using (in thousands) Level 1 Level 2 Level 3 Financial assets: Promissory note receivable due April 2024 $ 1,251 $ 1,251 $ — $ — $ 1,251 Promissory note receivable from Founders 16,500 16,500 — — 16,500 Investments in unconsolidated affiliates 10,987 35,998 35,998 — — Financial liabilities: 2024 Convertible Notes $ 34,265 $ 35,765 $ — $ 35,765 $ — 2025 Convertible Notes 102,563 96,137 — 96,137 — 2029 Convertible Notes 223,284 224,112 — 224,112 — |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt Instruments | The following table presents the Company's debt instruments outstanding: December 31, 2023 December 31, 2022 September 30, 2023 (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 $ (6,472) $ 223,528 $ 230,000 $ (7,351) $ 222,649 $ 230,000 $ (6,716) $ 223,284 2025 Convertible Notes 103,373 (678) 102,695 103,373 (1,181) 102,192 103,373 (810) 102,563 2024 Convertible Notes 34,389 (82) 34,307 34,389 (246) 34,143 34,389 (124) 34,265 Total $ 367,762 $ (7,232) $ 360,530 $ 367,762 $ (8,778) $ 358,984 $ 367,762 $ (7,650) $ 360,112 Less current portion 34,389 (82) 34,307 — — — 34,389 (124) 34,265 Total long-term debt $ 333,373 $ (7,150) $ 326,223 $ 367,762 $ (8,778) $ 358,984 $ 333,373 $ (7,526) $ 325,847 |
Schedule of Maturities of Long-Term Debt | The following table presents the Company’s contractual maturities related to the debt instruments as of December 31, 2023: Schedule of Contractual Maturities (in thousands) 2029 Convertible Notes 2025 Convertible Notes 2024 Convertible Notes Total Remaining 2024 $ — $ — $ 34,389 $ 34,389 Fiscal 2025 — 103,373 — 103,373 Fiscal 2026 — — — — Fiscal 2027 — — — — Fiscal 2028 — — — — Thereafter 230,000 — — 230,000 Total long-term debt $ 230,000 $ 103,373 $ 34,389 $ 367,762 |
Schedule of Interest Expense | The following table presents the Company’s interest expense related to the Convertible Notes for the three months ended December 31, 2023 and 2022: Three Months Ended December 31, (in thousands) 2023 2022 2029 Convertible Notes: Contractual interest expense $ 2,156 $ 431 Amortization of deferred financing costs 244 52 Total interest expense $ 2,400 $ 483 2025 Convertible Notes: Contractual interest expense $ 614 $ 942 Amortization of deferred financing costs 131 188 Gain on extinguishment — (5,389) Total interest expense $ 745 $ (4,259) 2024 Convertible Notes: Contractual interest expense $ 247 $ 876 Amortization of deferred financing costs 42 138 Loss on extinguishment — 8,935 Total interest expense $ 289 $ 9,949 |
Common Stock and Stock Compen_2
Common Stock and Stock Compensation (Tables) | 3 Months Ended |
Dec. 31, 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, 2023 2,555,899 $ 6.80 Granted (a) 1,349,752 7.39 Released (b) (1,135,138) 4.96 Cancelled (32,566) 6.96 Outstanding as of December 31, 2023 2,737,947 $ 7.85 (a) Includes performance adjustment of 353,993 shares awarded above their target grants resulting from the achievement of performance targets established at the grant date. (b) 377,231 shares were withheld to satisfy related income tax withholding. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Information | The following income (loss) before income taxes tables present revenue for each reportable segment, disaggregated revenue within our reportable segments and Corporate, segment profits and segment contribution. Three Months Ended December 31, 2023 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 125,513 $ 53,890 $ — $ 179,403 $ — $ 179,403 Jewelry scrapping sales 12,815 1,267 — 14,082 — 14,082 Pawn service charges 79,073 27,376 — 106,449 — 106,449 Other revenues 37 16 4 57 — 57 Total revenues 217,438 82,549 4 299,991 — 299,991 Merchandise cost of goods sold 78,709 36,501 — 115,210 — 115,210 Jewelry scrapping cost of goods sold 11,284 924 — 12,208 — 12,208 Gross profit 127,445 45,124 4 172,573 — 172,573 Segment and corporate expenses (income): Store expenses 77,255 33,300 — 110,555 — 110,555 General and administrative — — — — 16,543 16,543 Depreciation and amortization 2,624 2,339 — 4,963 3,602 8,565 Loss (gain) on sale or disposal of assets and other 26 (196) — (170) (2) (172) Interest expense — — — — 3,440 3,440 Interest income — (420) (573) (993) (1,646) (2,639) Equity in net income of unconsolidated affiliates — — (1,153) (1,153) — (1,153) Other (income) expense — (48) 1 (47) (224) (271) Segment contribution $ 47,540 $ 10,149 $ 1,729 $ 59,418 Income (loss) before income taxes $ 59,418 $ (21,713) $ 37,705 Three Months Ended December 31, 2022 (in thousands) U.S. Pawn Latin America Pawn Other Investments Total Segments Corporate Items Consolidated Revenues: Merchandise sales $ 118,314 $ 45,473 $ — $ 163,787 $ — $ 163,787 Jewelry scrapping sales 7,176 708 — 7,884 — 7,884 Pawn service charges 69,310 23,283 — 92,593 — 92,593 Other revenues 25 16 22 63 — 63 Total revenues 194,825 69,480 22 264,327 — 264,327 Merchandise cost of goods sold 73,256 31,621 — 104,877 — 104,877 Jewelry scrapping cost of goods sold 6,216 737 — 6,953 — 6,953 Gross profit 115,353 37,122 22 152,497 — 152,497 Segment and corporate expenses (income): Store expenses 73,304 27,499 — 100,803 — 100,803 General and administrative — (3) — (3) 15,479 15,476 Depreciation and amortization 2,755 2,215 — 4,970 3,018 7,988 Loss (gain) on sale or disposal of assets and other 3 (19) — (16) — (16) Interest expense — — — — 6,190 6,190 Interest income — (169) — (169) (495) (664) Equity in net income of unconsolidated affiliates — — (1,584) (1,584) — (1,584) Other expense (income) — 70 4 74 (308) (234) Segment contribution $ 39,291 $ 7,529 $ 1,602 $ 48,422 Income (loss) before income taxes $ 48,422 $ (23,884) $ 24,538 |
Schedule of Reconciliation of Segment Assets to Consolidated | The following table presents separately identified segment assets: (in thousands) U.S. Pawn Latin America Pawn Other Investments (a) Corporate Items Total As of December 31, 2023 Pawn loans $ 190,766 $ 52,486 $ — $ — $ 243,252 Pawn service charges receivable, net 35,707 4,295 — — 40,002 Inventory, net 127,008 37,919 — — 164,927 Total assets 1,004,075 323,209 78,419 75,490 1,481,193 As of December 31, 2022 Pawn loans $ 166,886 $ 42,969 $ — $ — $ 209,855 Pawn service charges receivable, net 31,064 3,857 — — 34,921 Inventory, net 117,994 38,070 — — 156,064 Total assets 900,211 272,153 77,009 152,942 1,402,315 As of September 30, 2023 Pawn loans $ 190,624 $ 55,142 $ — $ — $ 245,766 Pawn service charges receivable, net 34,318 4,567 — — 38,885 Inventory, net 128,901 37,576 — — 166,477 Total assets 984,539 313,164 63,707 106,301 1,467,711 |
Supplemental Consolidated Fin_2
Supplemental Consolidated Financial Information (Tables) | 3 Months Ended |
Dec. 31, 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) December 31, 2023 December 31, 2022 September 30, 2023 Gross pawn service charges receivable $ 50,919 $ 44,397 $ 50,881 Allowance for uncollectible pawn service charges receivable (10,917) (9,476) (11,996) Pawn service charges receivable, net $ 40,002 $ 34,921 $ 38,885 Gross inventory $ 167,660 $ 159,286 $ 169,138 Inventory reserves (2,733) (3,222) (2,661) Inventory, net $ 164,927 $ 156,064 $ 166,477 Prepaid expenses and other $ 6,868 $ 11,581 $ 4,106 Accounts receivable, notes receivable and other 34,032 22,730 30,548 Income taxes prepaid and receivable 3,101 11,248 4,969 Prepaid expenses and other current assets $ 44,001 $ 45,559 $ 39,623 Property and equipment, gross $ 352,291 $ 312,502 $ 345,461 Accumulated depreciation (283,293) (256,890) (277,365) Property and equipment, net $ 68,998 $ 55,612 $ 68,096 Accounts payable $ 18,200 $ 20,220 $ 23,022 Accrued payroll 7,682 4,952 11,472 Incentive accrual 6,859 6,010 18,544 Other payroll related expenses 7,849 10,911 5,262 Accrued sales and VAT taxes 6,089 8,086 5,565 Accrued income taxes payable 9,068 2,562 2,628 Other current liabilities 13,639 17,189 15,112 Accounts payable, accrued expenses and other current liabilities $ 69,386 $ 69,930 $ 81,605 |
Schedule of Supplemental Disclosure of Consolidated Statements of Cash Flows Information | The following table provides supplemental disclosure of condensed consolidated statements of cash flows information: Three Months Ended December 31, (in thousands) 2023 2022 Supplemental disclosure of cash flow information Cash and cash equivalents at beginning of period $ 220,595 $ 206,028 Restricted cash at beginning of period 8,373 8,341 Total cash and cash equivalents and restricted cash at beginning of period $ 228,968 $ 214,369 Cash and cash equivalents at end of period $ 218,516 $ 207,658 Restricted cash at end of period 8,470 8,359 Total cash and cash equivalents and restricted cash at end of period $ 226,986 $ 216,017 Non-cash investing and financing activities: Pawn loans forfeited and transferred to inventory $ 96,472 $ 84,851 Transfer of equity consideration for acquisition — 99 Acquisition earn-out contingency — 2,000 Accrued acquisition consideration 37 1,250 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Merchandise Sales Revenue Recognition (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | |||
Customer layaway deposits | $ 18,324 | $ 18,920 | $ 16,276 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 10,125 | $ 10,987 | $ 37,789 |
Rich Data Corporation (RDC) | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 6,200 | $ 6,200 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 302,372 | $ 286,828 |
Acquisitions | 416 | 9,413 |
Effect of foreign currency translation changes | 1,011 | 1,120 |
Ending balance | 303,799 | 297,361 |
U.S. Pawn | ||
Goodwill [Roll Forward] | ||
Beginning balance | 255,942 | 245,503 |
Acquisitions | 416 | 9,413 |
Effect of foreign currency translation changes | 0 | 0 |
Ending balance | 256,358 | 254,916 |
Latin America Pawn | ||
Goodwill [Roll Forward] | ||
Beginning balance | 46,430 | 41,325 |
Acquisitions | 0 | 0 |
Effect of foreign currency translation changes | 1,011 | 1,120 |
Ending balance | $ 47,441 | $ 42,445 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Basic earnings per common share: | ||
Net income - basic | $ 28,470 | $ 16,778 |
Weighted shares outstanding - basic (in shares) | 55,076 | 56,308 |
Basic earnings per common share (in dollars per share) | $ 0.52 | $ 0.30 |
Diluted earnings per common share: | ||
Net income - basic | $ 28,470 | $ 16,778 |
Add: Convertible Notes expense, net of tax | 2,659 | 4,540 |
Net income - diluted | $ 31,129 | $ 21,318 |
Weighted shares outstanding - basic (in shares) | 55,076 | 56,308 |
Equity-based compensation awards - effect of dilution (in shares) | 1,318 | 1,118 |
Convertible Notes - effect of dilution (in shares) | 30,418 | 26,353 |
Weighted shares outstanding - diluted (in shares) | 86,812 | 83,779 |
Diluted earnings per common share (in dollars per share) | $ 0.36 | $ 0.25 |
Loss on extinguishment of debt | $ 0 | $ 3,545 |
2025 Convertible Notes | ||
Diluted earnings per common share: | ||
Loss on extinguishment of debt | $ 3,500 | |
Restricted stock | ||
Diluted earnings per common share: | ||
Potential common shares excluded from the calculation of diluted earnings per common share above (in shares) | 1,581 | 1,552 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease payments | $ 20,300 | $ 21,400 |
Payments of finance leases | 132 | 0 |
Interest on financing lease liabilities | 100 | 0 |
Operating lease liability non cash | 9,300 | 20,500 |
Finance lease liability non cash | $ 100 | $ 400 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Initial term of lease | 3 years | |
Finance, term of lease | 2 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Initial term of lease | 10 years | |
Finance, term of lease | 5 years |
Leases - Lessee Assets and Liab
Leases - Lessee Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Lease assets: | |||
Operating lease right-of-use assets | $ 231,103 | $ 234,388 | $ 229,991 |
Financing lease assets | 2,124 | 2,178 | 563 |
Total lease assets | 233,227 | 236,566 | 230,554 |
Current: | |||
Operating lease liabilities | 57,980 | 57,182 | 52,799 |
Financing lease liabilities | 572 | 530 | 121 |
Total current lease liabilities | 58,552 | 57,712 | 52,920 |
Non-current: | |||
Operating lease liabilities | 188,475 | 193,187 | 188,730 |
Financing lease liabilities | 1,644 | 1,715 | 447 |
Total non-current lease liabilities | 190,119 | 194,902 | 189,177 |
Total lease liabilities | $ 248,671 | $ 252,614 | $ 242,097 |
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 | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating lease cost: | ||
Operating lease cost | $ 19,066 | $ 17,495 |
Variable lease cost | 4,215 | 3,852 |
Total operating lease cost | 23,281 | 21,347 |
Financing lease cost: | ||
Amortization of financing lease assets | 151 | 19 |
Interest on financing lease liabilities | 65 | 11 |
Total financing lease cost | 216 | 30 |
Total lease cost | 23,497 | 21,377 |
Sublease income | $ 1,100 | $ 800 |
Weighted-average remaining lease term (years): | ||
Operating leases | 4 years 10 months 9 days | 5 years 2 months 15 days |
Financing leases | 3 years 5 months 1 day | 4 years 10 days |
Weighted-average discount rate: | ||
Operating leases | 8.53% | 8.36% |
Financing leases | 11.14% | 11.14% |
Leases - Operating And Financin
Leases - Operating And Financing Lease Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Operating Leases | |||
Remaining 2024 | $ 57,570 | ||
Fiscal 2025 | 69,671 | ||
Fiscal 2026 | 58,523 | ||
Fiscal 2027 | 44,089 | ||
Fiscal 2028 | 28,904 | ||
Thereafter | 42,810 | ||
Total lease liabilities | 301,567 | ||
Less: portion representing imputed interest | 55,112 | ||
Total net lease liabilities | 246,455 | ||
Less: current portion | 57,980 | $ 57,182 | $ 52,799 |
Total long term net lease liabilities | 188,475 | 193,187 | 188,730 |
Financing Leases | |||
Remaining 2024 | 597 | ||
Fiscal 2025 | 790 | ||
Fiscal 2026 | 790 | ||
Fiscal 2027 | 486 | ||
Fiscal 2028 | 8 | ||
Thereafter | 0 | ||
Total lease liabilities | 2,671 | ||
Less: portion representing imputed interest | 455 | ||
Total net lease liabilities | 2,216 | ||
Less: current portion | 572 | 530 | 121 |
Total long term net lease liabilities | $ 1,644 | $ 1,715 | $ 447 |
Strategic Investments - Additio
Strategic Investments - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Dec. 02, 2022 | Oct. 31, 2023 | Nov. 30, 2022 | Oct. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Dividends from unconsolidated affiliates | $ 0 | $ 1,775 | |||||
Income from equity method investments | 1,153 | 1,584 | |||||
Notes receivable, net | $ 0 | $ 1,224 | $ 0 | ||||
Cash Converters International Limited | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Shares owned (in shares) | 273,939,157 | ||||||
Ownership percentage | 43.70% | ||||||
Percentage of ownership increase | 30% | ||||||
Dividends from unconsolidated affiliates | $ 1,700 | $ 1,800 | |||||
Founders One LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Payments to acquire equity investment | $ 15,000 | $ 15,000 | $ 15,000 | ||||
Notes receivable, net | $ 15,000 | ||||||
Equity securities, fair value | $ 45,000 |
Strategic Investments - Equity
Strategic Investments - Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Summary of financial information for Cash Converters International Limited | ||||
Current assets | $ 719,168 | $ 662,416 | $ 719,719 | |
Total assets | 1,481,193 | 1,402,315 | 1,467,711 | |
Current liabilities | 179,997 | 139,005 | 191,972 | |
Shareholders’ equity | 774,883 | 705,335 | 745,768 | $ 692,231 |
Total liabilities and equity | 1,481,193 | 1,402,315 | 1,467,711 | |
Gross profit | 172,573 | 152,497 | ||
Net (loss) profit | 28,470 | 16,778 | ||
Cash Converters International Limited | ||||
Summary of financial information for Cash Converters International Limited | ||||
Current assets | 189,563 | 158,987 | ||
Non-current assets | 103,595 | 170,798 | ||
Total assets | 293,158 | 329,785 | ||
Current liabilities | 97,630 | 59,256 | ||
Non-current liabilities | 58,777 | 53,045 | ||
Shareholders’ equity | 136,751 | 217,484 | ||
Total liabilities and equity | $ 293,158 | $ 329,785 | ||
Gross revenues | 203,608 | 178,215 | ||
Gross profit | 125,709 | 116,106 | ||
Net (loss) profit | $ (65,351) | $ 8,099 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Apr. 30, 2019 | Mar. 31, 2019 |
Promissory note receivable due April 2024 | |||||
Financial assets: | |||||
Notes receivable, fair value | $ 1,100 | $ 1,100 | |||
Promissory note receivable due April 2024 | Carrying Value | |||||
Financial assets: | |||||
Notes receivable, fair value | $ 1,259 | $ 1,251 | $ 1,224 | ||
Promissory note receivable due April 2024 | Estimated Fair Value | |||||
Financial assets: | |||||
Notes receivable, fair value | 1,259 | 1,251 | 1,224 | ||
Promissory note receivable due April 2024 | Estimated Fair Value | Level 1 | |||||
Financial assets: | |||||
Notes receivable, fair value | 0 | 0 | 0 | ||
Promissory note receivable due April 2024 | Estimated Fair Value | Level 2 | |||||
Financial assets: | |||||
Notes receivable, fair value | 0 | 0 | 0 | ||
Promissory note receivable due April 2024 | Estimated Fair Value | Level 3 | |||||
Financial assets: | |||||
Notes receivable, fair value | 1,259 | 1,251 | 1,224 | ||
Promissory note receivable from Founders | |||||
Financial assets: | |||||
Notes receivable, fair value | 15,000 | ||||
Promissory note receivable from Founders | Carrying Value | |||||
Financial assets: | |||||
Notes receivable, fair value | 17,073 | 16,500 | 15,100 | ||
Promissory note receivable from Founders | Estimated Fair Value | |||||
Financial assets: | |||||
Notes receivable, fair value | 17,073 | 16,500 | 15,100 | ||
Promissory note receivable from Founders | Estimated Fair Value | Level 1 | |||||
Financial assets: | |||||
Notes receivable, fair value | 0 | 0 | 0 | ||
Promissory note receivable from Founders | Estimated Fair Value | Level 2 | |||||
Financial assets: | |||||
Notes receivable, fair value | 0 | 0 | 0 | ||
Promissory note receivable from Founders | Estimated Fair Value | Level 3 | |||||
Financial assets: | |||||
Notes receivable, fair value | 17,073 | 16,500 | 15,100 | ||
Investments in unconsolidated affiliates | Carrying Value | |||||
Financial assets: | |||||
Investments in unconsolidated affiliates | 10,125 | 10,987 | 37,789 | ||
Investments in unconsolidated affiliates | Estimated Fair Value | |||||
Financial assets: | |||||
Investments in unconsolidated affiliates | 39,528 | 35,998 | 43,497 | ||
Investments in unconsolidated affiliates | Estimated Fair Value | Level 1 | |||||
Financial assets: | |||||
Investments in unconsolidated affiliates | 39,528 | 35,998 | 43,497 | ||
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 | 0 | 0 | ||
2024 Convertible Notes | Carrying Value | |||||
Financial liabilities: | |||||
Debt instruments, fair value | 34,307 | 34,265 | 34,143 | ||
2024 Convertible Notes | Estimated Fair Value | |||||
Financial liabilities: | |||||
Debt instruments, fair value | 34,733 | 35,765 | 35,851 | ||
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 | 34,733 | 35,765 | 35,851 | ||
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 | 102,695 | 102,563 | 102,192 | ||
2025 Convertible Notes | Estimated Fair Value | |||||
Financial liabilities: | |||||
Debt instruments, fair value | 94,173 | 96,137 | 89,883 | ||
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 | 94,173 | 96,137 | 89,883 | ||
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 | 223,528 | 223,284 | 222,649 | ||
2029 Convertible Notes | Estimated Fair Value | |||||
Financial liabilities: | |||||
Debt instruments, fair value | 236,900 | 224,112 | 225,975 | ||
2029 Convertible Notes | Estimated Fair Value | Level 1 | |||||
Financial liabilities: | |||||
Debt instruments, fair value | 0 | 0 | 0 | ||
2029 Convertible Notes | Estimated Fair Value | Level 2 | |||||
Financial liabilities: | |||||
Debt instruments, fair value | 236,900 | 224,112 | 225,975 | ||
2029 Convertible Notes | Estimated Fair Value | Level 3 | |||||
Financial liabilities: | |||||
Debt instruments, fair value | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | |||
Oct. 31, 2023 | Apr. 30, 2019 | Dec. 31, 2022 | Mar. 31, 2019 | |
Promissory note receivable due April 2024 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes receivable, fair value | $ 1.1 | $ 1.1 | ||
Interest on note receivable | 2.89% | |||
Promissory note receivable from Founders | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Notes receivable, fair value | $ 15 | |||
Interest on note receivable | 15% |
Debt - Schedule of Debt Instrum
Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Gross Amount | $ 333,373 | $ 333,373 | $ 367,762 |
Debt Issuance Costs | (7,150) | (7,526) | (8,778) |
Carrying Amount | 326,223 | 325,847 | 358,984 |
Gross Amount | 367,762 | 367,762 | 367,762 |
Debt Issuance Costs | (7,232) | (7,650) | (8,778) |
Carrying Amount | 360,530 | 360,112 | 358,984 |
Less current portion, Gross Amount | 34,389 | 34,389 | 0 |
Less current portion, Debt Issuance Costs | (82) | (124) | 0 |
Less current portion, Carrying Amount | 34,307 | 34,265 | 0 |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross Amount | 367,762 | ||
2029 Convertible Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross Amount | 230,000 | 230,000 | 230,000 |
Debt Issuance Costs | (6,472) | (6,716) | (7,351) |
Carrying Amount | 223,528 | 223,284 | 222,649 |
Gross Amount | 230,000 | ||
2025 Convertible Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross Amount | 103,373 | 103,373 | 103,373 |
Debt Issuance Costs | (678) | (810) | (1,181) |
Carrying Amount | 102,695 | 102,563 | 102,192 |
Gross Amount | 103,373 | ||
2024 Convertible Notes | Senior Notes | |||
Debt Instrument [Line Items] | |||
Gross Amount | 34,389 | 34,389 | 34,389 |
Debt Issuance Costs | (82) | (124) | (246) |
Carrying Amount | 34,307 | $ 34,265 | $ 34,143 |
Gross Amount | $ 34,389 |
Debt - Principal Payment Schedu
Debt - Principal Payment Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Gross Amount | $ 367,762 | $ 367,762 | $ 367,762 |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Remaining 2024 | 34,389 | ||
Fiscal 2025 | 103,373 | ||
Fiscal 2026 | 0 | ||
Fiscal 2027 | 0 | ||
Fiscal 2028 | 0 | ||
Thereafter | 230,000 | ||
Gross Amount | 367,762 | ||
Senior Notes | 2029 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Remaining 2024 | 0 | ||
Fiscal 2025 | 0 | ||
Fiscal 2026 | 0 | ||
Fiscal 2027 | 0 | ||
Fiscal 2028 | 0 | ||
Thereafter | 230,000 | ||
Gross Amount | 230,000 | ||
Senior Notes | 2025 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Remaining 2024 | 0 | ||
Fiscal 2025 | 103,373 | ||
Fiscal 2026 | 0 | ||
Fiscal 2027 | 0 | ||
Fiscal 2028 | 0 | ||
Thereafter | 0 | ||
Gross Amount | 103,373 | ||
Senior Notes | 2024 Convertible Notes | |||
Debt Instrument [Line Items] | |||
Remaining 2024 | 34,389 | ||
Fiscal 2025 | 0 | ||
Fiscal 2026 | 0 | ||
Fiscal 2027 | 0 | ||
Fiscal 2028 | 0 | ||
Thereafter | 0 | ||
Gross Amount | $ 34,389 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Net loss on extinguishment of debt | $ 0 | $ 3,545 |
Senior Notes | 2029 Convertible Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 2,156 | 431 |
Amortization of deferred financing costs | 244 | 52 |
Total interest expense | 2,400 | 483 |
Senior Notes | 2025 Convertible Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 614 | 942 |
Amortization of deferred financing costs | 131 | 188 |
Net loss on extinguishment of debt | 0 | (5,389) |
Total interest expense | 745 | (4,259) |
Senior Notes | 2024 Convertible Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 247 | 876 |
Amortization of deferred financing costs | 42 | 138 |
Net loss on extinguishment of debt | 0 | 8,935 |
Total interest expense | $ 289 | $ 9,949 |
Debt - Convertible Senior Notes
Debt - Convertible Senior Notes Due 2029 (Details) | 1 Months Ended | 3 Months Ended | ||||
Dec. 12, 2022 day $ / shares | May 14, 2018 USD ($) day $ / shares | Jul. 05, 2017 USD ($) day $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ | $ 0 | $ 3,545,000 | ||||
2029 Convertible Notes | Common Class A | ||||||
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% | 3.75% | |||
Principle amount | $ | $ 230,000,000 | $ 230,000,000 | ||||
Effective interest rate | 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% | |||||
Business day threshold | 5 | |||||
2024 Convertible Notes | Common Class A | ||||||
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% | |||||
Conversion price, per share (in dollars per share) | $ / shares | $ 10 | |||||
Loss on extinguishment of debt | $ | $ 0 | 8,935,000 | ||||
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 | 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% | |||||
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 | (5,389,000) | ||||
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% | |||||
Business day threshold | 5 | |||||
2025 Convertible Notes | Notes Repurchases | ||||||
Debt Instrument [Line Items] | ||||||
Repurchased principal amount | $ | 69,100,000 | 69,100,000 | ||||
Repurchase price | $ | $ 62,900,000 | $ 62,900,000 |
Debt - Convertible Senior Not_2
Debt - Convertible Senior Notes Due 2025 (Details) | May 14, 2018 USD ($) day $ / shares | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | ||||
Amount outstanding | $ | $ 367,762,000 | $ 367,762,000 | $ 367,762,000 | |
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | $ | 367,762,000 | |||
2025 Convertible Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 2.375% | |||
Principle amount | $ | $ 172,500,000 | |||
Amount outstanding | $ | $ 103,373,000 | |||
Effective interest rate | 2.88% | |||
Conversion rate per $1,000 principal amount | 0.0628931 | |||
Conversion price, per share (in dollars per share) | $ / shares | $ 15.90 | |||
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% | |||
Business day threshold | 5 |
Debt - Convertible Senior Not_3
Debt - Convertible Senior Notes Due 2024 (Details) | Jul. 05, 2017 USD ($) day $ / shares | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | ||||
Amount outstanding | $ | $ 367,762,000 | $ 367,762,000 | $ 367,762,000 | |
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Amount outstanding | $ | 367,762,000 | |||
2024 Convertible Notes | Common Class A | ||||
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 | |||
Amount outstanding | $ | $ 34,389,000 | |||
Effective interest rate | 3.35% | |||
Conversion price, per share (in dollars per share) | $ / shares | $ 10 | |||
2024 Convertible Notes | Senior Notes | Debt Conversion, Condition One | ||||
Debt Instrument [Line Items] | ||||
Threshold trading days (whether or not consecutive) | day | 20 | |||
Threshold consecutive trading days | day | 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) | day | 20 | |||
Threshold consecutive trading days | day | 30 | |||
Threshold percentage of stock price trigger | 130% | |||
Repurchase price, percent of principal amount | 100% | |||
2024 Convertible Notes | 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 | 20 Months Ended | ||
May 03, 2022 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 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 | $ 3,007 | $ 7,027 | |||
Purchase and retirement of treasury stock | $ 5,000 | $ 3,007 | $ 7,027 | ||
Common Class A | |||||
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) | 354,882 | 243,062 | 1,981,927 | ||
Common stock repurchased and retired | $ 3,000 | $ 2,000 | $ 17,000 |
Common Stock and Stock Compen_4
Common Stock and Stock Compensation - Restricted Stock Award Activity (Details) - Restricted stock | 3 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Shares | |
Outstanding, beginning balance (in shares) | 2,555,899 |
Granted (in shares) | 1,349,752 |
Released (in shares) | (1,135,138) |
Cancelled (in shares) | (32,566) |
Outstanding, ending balance (in shares) | 2,737,947 |
Weighted Average Grant Date Fair Value | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 6.80 |
Granted (in dollars per share) | $ / shares | 7.39 |
Released (in dollars per share) | $ / shares | 4.96 |
Cancelled (in dollars per share) | $ / shares | 6.96 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 7.85 |
Performance adjustment (in shares) | 353,993 |
Number of shares withheld to satisfy related federal income tax withholding (in shares) | 377,231 |
Segment Information - Operating
Segment Information - Operating Segment Information (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 3 | |
Revenues: | ||
Total revenues | $ 299,991 | $ 264,327 |
Gross profit | 172,573 | 152,497 |
Segment and corporate expenses (income): | ||
Store expenses | 110,555 | 100,803 |
General and administrative | 16,543 | 15,476 |
Depreciation and amortization | 8,565 | 7,988 |
Loss (gain) on sale or disposal of assets and other | (172) | (16) |
Interest expense | 3,440 | 6,190 |
Interest income | (2,639) | (664) |
Equity in net income of unconsolidated affiliates | (1,153) | (1,584) |
Other (income) expense | (271) | (234) |
Income before income taxes | 37,705 | 24,538 |
Operating Segments | ||
Revenues: | ||
Total revenues | 299,991 | 264,327 |
Gross profit | 172,573 | 152,497 |
Segment and corporate expenses (income): | ||
Store expenses | 110,555 | 100,803 |
General and administrative | 0 | (3) |
Depreciation and amortization | 4,963 | 4,970 |
Loss (gain) on sale or disposal of assets and other | (170) | (16) |
Interest expense | 0 | 0 |
Interest income | (993) | (169) |
Equity in net income of unconsolidated affiliates | (1,153) | (1,584) |
Other (income) expense | (47) | 74 |
Income before income taxes | 59,418 | 48,422 |
Operating Segments | U.S. Pawn | ||
Revenues: | ||
Total revenues | 217,438 | 194,825 |
Gross profit | 127,445 | 115,353 |
Segment and corporate expenses (income): | ||
Store expenses | 77,255 | 73,304 |
General and administrative | 0 | 0 |
Depreciation and amortization | 2,624 | 2,755 |
Loss (gain) on sale or disposal of assets and other | 26 | 3 |
Interest expense | 0 | 0 |
Interest income | 0 | 0 |
Equity in net income of unconsolidated affiliates | 0 | 0 |
Other (income) expense | 0 | 0 |
Income before income taxes | 47,540 | 39,291 |
Operating Segments | Latin America Pawn | ||
Revenues: | ||
Total revenues | 82,549 | 69,480 |
Gross profit | 45,124 | 37,122 |
Segment and corporate expenses (income): | ||
Store expenses | 33,300 | 27,499 |
General and administrative | 0 | (3) |
Depreciation and amortization | 2,339 | 2,215 |
Loss (gain) on sale or disposal of assets and other | (196) | (19) |
Interest expense | 0 | 0 |
Interest income | (420) | (169) |
Equity in net income of unconsolidated affiliates | 0 | 0 |
Other (income) expense | (48) | 70 |
Income before income taxes | 10,149 | 7,529 |
Operating Segments | Other Investments | ||
Revenues: | ||
Total revenues | 4 | 22 |
Gross profit | 4 | 22 |
Segment and corporate expenses (income): | ||
Store expenses | 0 | 0 |
General and administrative | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Loss (gain) on sale or disposal of assets and other | 0 | 0 |
Interest expense | 0 | 0 |
Interest income | (573) | 0 |
Equity in net income of unconsolidated affiliates | (1,153) | (1,584) |
Other (income) expense | 1 | 4 |
Income before income taxes | 1,729 | 1,602 |
Corporate Items | ||
Revenues: | ||
Total revenues | 0 | 0 |
Gross profit | 0 | 0 |
Segment and corporate expenses (income): | ||
Store expenses | 0 | 0 |
General and administrative | 16,543 | 15,479 |
Depreciation and amortization | 3,602 | 3,018 |
Loss (gain) on sale or disposal of assets and other | (2) | 0 |
Interest expense | 3,440 | 6,190 |
Interest income | (1,646) | (495) |
Equity in net income of unconsolidated affiliates | 0 | 0 |
Other (income) expense | (224) | (308) |
Income before income taxes | (21,713) | (23,884) |
Merchandise sales | ||
Revenues: | ||
Total revenues | 179,403 | 163,787 |
Cost of goods sold | 115,210 | 104,877 |
Merchandise sales | Operating Segments | ||
Revenues: | ||
Total revenues | 179,403 | 163,787 |
Cost of goods sold | 115,210 | 104,877 |
Merchandise sales | Operating Segments | U.S. Pawn | ||
Revenues: | ||
Total revenues | 125,513 | 118,314 |
Cost of goods sold | 78,709 | 73,256 |
Merchandise sales | Operating Segments | Latin America Pawn | ||
Revenues: | ||
Total revenues | 53,890 | 45,473 |
Cost of goods sold | 36,501 | 31,621 |
Merchandise sales | Operating Segments | Other Investments | ||
Revenues: | ||
Total revenues | 0 | 0 |
Cost of goods sold | 0 | 0 |
Merchandise sales | Corporate Items | ||
Revenues: | ||
Total revenues | 0 | 0 |
Cost of goods sold | 0 | 0 |
Jewelry scrapping sales | ||
Revenues: | ||
Total revenues | 14,082 | 7,884 |
Cost of goods sold | 12,208 | 6,953 |
Jewelry scrapping sales | Operating Segments | ||
Revenues: | ||
Total revenues | 14,082 | 7,884 |
Cost of goods sold | 12,208 | 6,953 |
Jewelry scrapping sales | Operating Segments | U.S. Pawn | ||
Revenues: | ||
Total revenues | 12,815 | 7,176 |
Cost of goods sold | 11,284 | 6,216 |
Jewelry scrapping sales | Operating Segments | Latin America Pawn | ||
Revenues: | ||
Total revenues | 1,267 | 708 |
Cost of goods sold | 924 | 737 |
Jewelry scrapping sales | Operating Segments | Other Investments | ||
Revenues: | ||
Total revenues | 0 | 0 |
Cost of goods sold | 0 | 0 |
Jewelry scrapping sales | Corporate Items | ||
Revenues: | ||
Total revenues | 0 | 0 |
Cost of goods sold | 0 | 0 |
Pawn service charges | ||
Revenues: | ||
Total revenues | 106,449 | 92,593 |
Pawn service charges | Operating Segments | ||
Revenues: | ||
Total revenues | 106,449 | 92,593 |
Pawn service charges | Operating Segments | U.S. Pawn | ||
Revenues: | ||
Total revenues | 79,073 | 69,310 |
Pawn service charges | Operating Segments | Latin America Pawn | ||
Revenues: | ||
Total revenues | 27,376 | 23,283 |
Pawn service charges | Operating Segments | Other Investments | ||
Revenues: | ||
Total revenues | 0 | 0 |
Pawn service charges | Corporate Items | ||
Revenues: | ||
Total revenues | 0 | 0 |
Other revenues | ||
Revenues: | ||
Total revenues | 57 | 63 |
Other revenues | Operating Segments | ||
Revenues: | ||
Total revenues | 57 | 63 |
Other revenues | Operating Segments | U.S. Pawn | ||
Revenues: | ||
Total revenues | 37 | 25 |
Other revenues | Operating Segments | Latin America Pawn | ||
Revenues: | ||
Total revenues | 16 | 16 |
Other revenues | Operating Segments | Other Investments | ||
Revenues: | ||
Total revenues | 4 | 22 |
Other revenues | Corporate Items | ||
Revenues: | ||
Total revenues | $ 0 | $ 0 |
Segment Information - Reconcili
Segment Information - Reconciliation of Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | |||
Pawn loans | $ 243,252 | $ 245,766 | $ 209,855 |
Pawn service charges receivable, net | 40,002 | 38,885 | 34,921 |
Inventory, net | 164,927 | 166,477 | 156,064 |
Total assets | 1,481,193 | 1,467,711 | 1,402,315 |
Operating Segments | U.S. Pawn | |||
Segment Reporting Information [Line Items] | |||
Pawn loans | 190,766 | 190,624 | 166,886 |
Pawn service charges receivable, net | 35,707 | 34,318 | 31,064 |
Inventory, net | 127,008 | 128,901 | 117,994 |
Total assets | 1,004,075 | 984,539 | 900,211 |
Operating Segments | Latin America Pawn | |||
Segment Reporting Information [Line Items] | |||
Pawn loans | 52,486 | 55,142 | 42,969 |
Pawn service charges receivable, net | 4,295 | 4,567 | 3,857 |
Inventory, net | 37,919 | 37,576 | 38,070 |
Total assets | 323,209 | 313,164 | 272,153 |
Operating Segments | Other Investments | |||
Segment Reporting Information [Line Items] | |||
Pawn loans | 0 | 0 | 0 |
Pawn service charges receivable, net | 0 | 0 | 0 |
Inventory, net | 0 | 0 | 0 |
Total assets | 78,419 | 63,707 | 77,009 |
Corporate Items | |||
Segment Reporting Information [Line Items] | |||
Pawn loans | 0 | 0 | 0 |
Pawn service charges receivable, net | 0 | 0 | 0 |
Inventory, net | 0 | 0 | 0 |
Total assets | $ 75,490 | $ 106,301 | $ 152,942 |
Supplemental Consolidated Fin_3
Supplemental Consolidated Financial Information - Supplemental Consolidated Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Gross pawn service charges receivable | $ 50,919 | $ 50,881 | $ 44,397 |
Allowance for uncollectible pawn service charges receivable | (10,917) | (11,996) | (9,476) |
Pawn service charges receivable, net | 40,002 | 38,885 | 34,921 |
Gross inventory | 167,660 | 169,138 | 159,286 |
Inventory reserves | (2,733) | (2,661) | (3,222) |
Inventory, net | 164,927 | 166,477 | 156,064 |
Prepaid expenses and other | 6,868 | 4,106 | 11,581 |
Accounts receivable, notes receivable and other | 34,032 | 30,548 | 22,730 |
Income taxes prepaid and receivable | 3,101 | 4,969 | 11,248 |
Prepaid expenses and other current assets | 44,001 | 39,623 | 45,559 |
Property and equipment, gross | 352,291 | 345,461 | 312,502 |
Accumulated depreciation | (283,293) | (277,365) | (256,890) |
Property and equipment, net | 68,998 | 68,096 | 55,612 |
Accounts payable | 18,200 | 23,022 | 20,220 |
Accrued payroll | 7,682 | 11,472 | 4,952 |
Incentive accrual | 6,859 | 18,544 | 6,010 |
Other payroll related expenses | 7,849 | 5,262 | 10,911 |
Accrued sales and VAT taxes | 6,089 | 5,565 | 8,086 |
Accrued income taxes payable | 9,068 | 2,628 | 2,562 |
Other current liabilities | 13,639 | 15,112 | 17,189 |
Accounts payable, accrued expenses and other current liabilities | $ 69,386 | $ 81,605 | $ 69,930 |
Supplemental Consolidated Fin_4
Supplemental Consolidated Financial Information - Supplemental of Consolidated Statements of Cash Flows Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Supplemental disclosure of cash flow information | ||||
Cash and cash equivalents | $ 218,516 | $ 207,658 | $ 220,595 | $ 206,028 |
Restricted cash | 8,470 | 8,359 | 8,373 | 8,341 |
Total cash and cash equivalents and restricted cash | 226,986 | 216,017 | $ 228,968 | $ 214,369 |
Non-cash investing and financing activities: | ||||
Pawn loans forfeited and transferred to inventory | 96,472 | 84,851 | ||
Transfer of equity consideration for acquisition | 0 | 99 | ||
Acquisition earn-out contingency | 0 | 2,000 | ||
Accrued acquisition consideration | $ 37 | $ 1,250 |