EZCORP, Inc.

Good morning, ladies and gentlemen, and welcome to the EasyCorp third quarter fiscal 2023 earnings call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session, and instructions will follow at that time. As a reminder, this call may be recorded. I would now like to turn the conference over to Jeff Elliott, Investor Relations with Three-Part Advisors. Please go ahead, Jeff.

Thank you and good morning, everyone. During our prepared remarks, we will be referring to slides which are available for viewing or download from our website, investors.easycorp.com. Before we begin, I'd like to remind everyone that this conference call as well as the presentation slides contain certain forward-looking statements regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations. Actual results for future periods may differ materially from those expressed due to a number of risks or other factors that are discussed in our annual, quarterly, and other reports filed with the Securities Exchange Commission. As noted in our presentation materials, and unless otherwise identified, results are presented on an adjusted basis to remove the effect of foreign currency fluctuations and other discrete items. Joining us on the call today are EZ Corp's Chief Executive Officer, Lockie Gibbon, and Tim Jugman, Chief Financial Officer. I'd now like to turn the call over to Lockie Gibbon. Lockie?

Thanks, Tim, and good morning, everyone. Our team's persistent pursuit of operational excellence in executing our current three-year plan has again yielded strong financial results for our stakeholders. Four months outstanding hit a new all-time record of $223.8 million, up 10% for the quarter, and 7% on a same-store basis. Merchandise sales were up 12% for the quarter, 7% on a same-store basis. Total Q3 revenue hit a record $249.5 million, driven by higher PSC and sales volumes across all of our regions. Merchandise sales growth margins remained within our targeted range at 36%, with strong inventory turns at 2.8 times. Aged GM inventory was 1.6% of total GM inventory for the quarter, showing an improvement of 60 basis points over Q2. Beginning on slide three, we are a global leader in pawnbroking and pre-owned and recycled retail. We operate 1,212 stores in the US and Latin America, having added another 13 stores this quarter. The macroeconomic environment continues to be a challenge for our customer base, as consumers seek cash to satisfy their short-term needs, as well as value-for-money secondhand products, which also represent a more environmentally responsible way to shop. We strive to provide the best, most convenient experience for our consumers through continuous innovation while positively impacting the environment and the communities in which we serve. Moving on to slide four, our engaged team drives our success, so we are committed to investing in recruitment, retention, and incentivization to ensure our team members are engaged. We promote financial inclusion for underserved communities with our buy, sell, and pawn offerings, providing customers instant cash for any item of value. We provide outstanding customer service, an attractive and well-positioned store footprint, differentiated digital platform, proprietary POS system, and an innovative loyalty program for our customers. We have a very strong and liquid balance sheet, enabling us to fund significant growth in our earning assets, the build-out of new de novo stores, opportunistic acquisitions from what continues to be a robust pipeline, and our share repurchase program. Slide five shows our progression on our three-year strategic goals. We believe that we've got the most passionate, productive, tenured, and committed team in the industry, and we continue to find ways to engage, motivate, and retain them. The results of our efforts are evident in the annual company-wide engagement survey that serves as a scorecard of how our culture is transforming. With a record participation of over 90% of our 7,400 team members this year, we scored 84 points, a three-point jump from last year and nine points above the global benchmarks, including being 10 points above the retail industry and nine points above the financial services industry. The implementation of the Workday ERP across HR and finance this quarter will further improve systems and processes, driving greater efficiencies for our team members and the organisation as a whole. Our points-based loyalty program has been extremely well received and has grown to 3.3 million customers, up 14% sequentially. We strive to increase engagement with personalised marketing campaigns and communications to deliver better customer experience and drive business growth. Turning to our key financial themes for Q3 on slide six, the most significant driver of revenue and earnings, PLO, hit an all-time high of $223.8 million, up 10%, with an associated 14% increase in PSC. Merchandise sales were up 12%, resulting in total revenue for the quarter of $249.5 million, up 16%, which was a record for Q3. Adjusted EBITDA was $27 million for the quarter, up 8%. Inventory turnover remained strong, with aged inventory increasing slightly year over year, but improved sequentially by 60 basis points. Cash on the balance sheet came down slightly on a sequential basis, primarily due to increases in PLO and inventory. On slide seven, EBITDA margin was 12% for the last 12 months ending June 2023, versus 13% in the last 12 months ending June 2022. As discussed last quarter, the EBITDA margin, as expected, has recently decreased due to the inflationary impact on our expenses. On slide eight, we talk about strengthening the core operations, investing in people and technology in order to drive earnings. In LATAM, we launched a new intranet that provides enhanced access to information and communications that is driving increased efficiencies. Last quarter, we said that we were focused on better execution in LATAM and bringing down aged inventory to get closer to US levels, and we are pleased with our progress on that front. We've also launched a reimagined US philanthropic strategy to align better with our pillars of people, porn, and passion. Investing in both our people and technology, we've engaged Workday to provide an enterprise cloud application for our team members with enhanced toolkit to help build a modern employee experience. We continue to upgrade pricing, POS, and e-commerce capabilities to drive faster transaction times and deliver better customer experience. On slide nine, innovation and growth is our third strategic pillar. Our EasyPlus loyalty program has over 3.3 million customers enrolled versus over 2.9 million last quarter, showing a sequential increase of 14%. We launched personalized marketing campaigns to notify members of their points and reward status to encourage further engagement. In the US, we collected $14.6 million in online payments versus $12.7 million last quarter, showing a 15% increase. Online extensions in the US grew 4% sequentially and now comprise 29% of total extensions, giving our store staff significantly more time to serve customers in stores. Improving the customer experience and growing the customer base remains key to our strategy. We increased global transacting customers, US visits to porn websites, through daily visits to buy online pick up in store test websites, US online extensions and US online layaway payments. We opened 12 de novo stores in Latin America with five in Mexico and seven in Guatemala. In the Las Vegas area, we opened one luxury DeNovo Max corn store. Slide 10 outlines our ESG highlights for the fiscal third quarter. We are a neighbourhood recycler and a compelling component of the local circular economy and have resold over 1.4 million pre-owned items in the quarter, including toxic consumer electronics such as computers, TVs and phones, as well as tools, musical instruments, household goods and jewellery. Importantly, we provide an essential, simple, regulated and transparent financial resource for those who are underserved by traditional sources. Diversity and inclusion are a significant focus and have introduced our fifth affinity group, HOLA, the Hispanic Organization for Leadership Advocacy in the US. We have revamped the mission of the EasyCorp Foundation in the US and have launched local giving strategies aimed at improving the quality of life in the communities where we live and operate, through supporting financial literacy, food security, and financial stability. I would now like to turn the call over to Tim Jugmans, our Chief Financial Officer, to provide more details on our financial results. Tim?