EZCORP, Inc.

Good morning, ladies and gentlemen. Welcome to the ECCorp First Fiscal Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. To ask a question, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. As a reminder, this call may be recorded. I'd now like to turn the conference over to Jean Marie Young, investor relations with three-part advisors. Please go ahead, Jean.

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 at 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 and Exchange Commission. And 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 Judman's Chief Financial Officer. Now, I'd like to turn the call over to Lockie Gibbon. Lockie?

Thanks, Jean, and good morning, everyone. We began fiscal 2024 with an outstanding quarter. Total revenue of $293 million was the highest in the company's history. Our PLO continues to grow and was our highest first quarter PLO ever. Bottom line net income also grew very strongly to $28 million, up 30% on Q1 2023. Beginning on slide three, we are a global leader in pawnbroking and pre-owned and recycled resales. We operate 1,237 stores in the US and Latin America, having added another six stores this quarter. The macroeconomic environment continues to be a challenge for our customer base, with inflationary pressure increasing the demand for porn as consumers seek cash to satisfy their short-term needs. In addition, consumers seek value by purchasing pre-owned merchandise and jewellery, which also represents a more environmentally responsible way to shop. We strive to provide an industry-leading experience to our customers through continuous innovation. Moving to slide four, we opened five de novo stores in Latin America and acquired one store in Texas during the quarter. Record-setting Q1 PLO balance of 238.4 million was up 14%, driving a 13% increase in PSC. When comparing the first quarter with the fourth quarter, earning assets, are typically impacted by strong holiday sales, lowering inventory, as well as consumers in Latin America receiving additional compensation in December, applying downward pressure on PLO balances. Our cash balance was up to $219 million, primarily due to strong cash inflows from operating activities, partially offset by increased PLO and inventory, strategic investments, share of purchases, and new store acquisitions. We repurchased $3 million of shares and invested $15 million in founders to fund SMG acquisitions in Central America. Slide five shows our excellent financial metrics for the quarter, with total revenues up 11%, merchandise sales up 7%, gross profit up 11%, and adjusted EBITDA up 21%. Strong consumer demand and excellent customer service continues to propel PLO and psc are 14 and 13 respectively turning to our key business strategies for q1 on slide six we continue to strengthen our core porn operations during the quarter investing in people and technology in addition to launching a rebuild of intelligent pricing systems globally we continue to upgrade merchandising tagging pricing point of sale system and e-commerce capabilities to drive faster transaction times and deliver better customer service. EasyPlus Rewards members grew to 4.2 million globally, with 1.4 million people transacting in Q1, almost evenly split between the US and Latin America. Across all geographies, transacting customers increased 4%. Team members are at the core of our operating theme of people, porn, and passion. We are committed to investing in recruitment, retention, and incentivization to ensure that our team remains highly engaged. The Workday human capital management system was implemented globally during the quarter and will further improve access to human capital data and enhance our training, career development, and recruitment processes. Innovation and growth are critical to our future. Online payments grew $8.6 million to $20.3 million in the US. We launched online app features to securely save payment card details with promotional giveaways, which attracted engagement from over 50% of users, reflecting the successful adoption and positive reception of these enhancements. Online payments launched in Mexico with the buy online, pick up in-store initiative expanding to 23 additional stores in Houston. Furthermore, We enhanced MaxPorn's luxury e-commerce capabilities on eBay. Slide seven. During the quarter, we sold 1.4 million pre-owned general merchandise and jewelry items and provided critical financial services to customers in the hundreds of local communities in which we serve. We are excited to share that Newsweek recognized EasyCorp as one of America's greatest workplaces for diversity. This study highlights the top large and mid-sized companies recognized by their employees for dedication to supporting a diverse workforce. At EasyCorp, we foster an environment that values diversity, inclusion, and development for all, with initiatives promoting affinity groups in the US and Latin America, enhancing diversity awareness, encouraging inclusive conversations, and more. We launched an inaugural round of local giving which included US districts donating to charitable organizations that support financial literacy, eradicating food insecurity, empowering young people, or engaging in poverty intervention. In addition, we hosted company-sponsored volunteer events at local food banks. The backbone of the company is our passionate, productive, tenured, and committed team members, and we continue to find ways to enhance their experience. We promote the circular economy with a more affordable, sustainable shopping experience for our customers, always working to improve their experience with innovations in our digital platforms, proprietary POS system, and loyalty programs. I'd now like to turn the call over to Tim Jarzman, our CFO, to provide more details on our financial results. Tim?