EZCORP, Inc. (EZPW) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $7.16 million, or $ 0.15 a share in the quarter, against a net loss of $7.47 million, or $0.06 a share in the last year period.
Revenue during the quarter went up marginally by 2.70 percent to $192.62 million from $187.56 million in the previous year period. Gross margin for the quarter contracted 191 basis points over the previous year period to 58.13 percent. Total expenses were 92.68 percent of quarterly revenues, down from 96.09 percent for the same period last year. This has led to an improvement of 340 basis points in operating margin to 7.32 percent.
Operating income for the quarter was $14.10 million, compared with $7.34 million in the previous year period.
Stuart Grimshaw, EZCORP's chief executive officer, said: "Our first quarter results reflect the continued intense focus on market leadership in meeting our customers' desire for cash whenever they want it, combined with consistent execution in pawn fundamentals. We delivered strong operating results in our pawn businesses in the U.S. and Mexico with continued growth in same store pawn loans outstanding (PLO), the most influential driver of revenue and profitability."
Operating cash flow remains negative
EZCORP, Inc. has spent $5.29 million cash to meet operating activities during the quarter as against cash outgo of $4.47 million in the last year period.
Cash flow from investing activities was $4.76 million for the quarter as against cash outgo of $9.36 million in the last year period.
The company has spent $0.71 million cash to carry out financing activities during the quarter as against cash outgo of $21.68 million in the last year period.
Cash and cash equivalents stood at $63.71 million as on Dec. 31, 2016, up 179.65 percent or $40.93 million from $22.78 million on Dec. 31, 2015.
Working capital increases sharply
EZCORP, Inc. has recorded an increase in the working capital over the last year. It stood at $394.81 million as at Dec. 31, 2016, up 34.70 percent or $101.70 million from $293.11 million on Dec. 31, 2015. Current ratio was at 6.03 as on Dec. 31, 2016, up from 2.63 on Dec. 31, 2015.
Days sales outstanding went up to 76 days for the quarter compared with 41 days for the same period last year.
Days inventory outstanding has decreased to 82 days for the quarter compared with 158 days for the previous year period.
Debt comes down
EZCORP, Inc. has recorded a decline in total debt over the last one year. It stood at $278.94 million as on Dec. 31, 2016, down 21.90 percent or $78.20 million from $357.13 million on Dec. 31, 2015. Total debt was 28.92 percent of total assets as on Dec. 31, 2016, compared with 31.17 percent on Dec. 31, 2015. Debt to equity ratio was at 0.47 as on Dec. 31, 2016, down from 0.54 as on Dec. 31, 2015. Interest coverage ratio improved to 2.53 for the quarter from 1.78 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
