EZCORP, Inc.

Good morning, ladies and gentlemen. Welcome to the EZ Corp's second 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, and instructions will follow at that time. 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 EasyCorp's Chief Executive Officer, Lockie Gibbons, and Tim Drugman's Chief Financial Officer. Now I'd like to turn the call over to Lockie Gibbons. Lockie?

Thanks, Jean, and good morning, everyone. The second quarter of fiscal 2024, EasyCorp has produced another very strong set of operating and financial results for our shareholders. Total revenue of $280 million was up 8%. and PLO of $232 million was up 13%, both for the highest for the second quarter in the company's history. From a bottom line perspective, adjusted net income was up 21%. Beginning on slide three, we are a global leader in pawnbroking and pre-owned and recycled retail. We operate 1,246 stores in the US and Latin America, having added another nine stores this quarter. The macroeconomic environment remains challenging for our customer base. With rising living costs, economic uncertainty and less availability of consumer credit, customers are increasingly using pawnbroking services to satisfy their short-term cash needs. In addition, these customers are seeking better value for money retail options and so are purchasing pre-owned merchandise, which also has the additional benefit of being more environmentally friendly. We strive to provide an industry-leading experience for our customers through continuous innovation and excellent customer service. Moving on to slide four, we opened nine de novo stores in Latin America and consolidated five stores during the quarter. In the U.S., we acquired six stores and consolidated one. A record-setting Q2 PLO balance of $232 million was up 13%. When comparing the second quarter with the first quarter, earning assets typically decreased due to pay down of balances during tax refund season in the US. This year, we saw a mild pay down similar to last year. Our cash balance of $229 million provides us with substantial liquidity to fund additional organic earning asset growth, to capitalize upon inorganic opportunities as they arise, repurchase shares, and to fund near-term debt maturities if required. Slide 5 shows the continuous, consistent improvement in our financial metrics, with total revenues up 8%, merchandise sales up 6%, gross profit up 10%, and adjusted EBITDA up 7%. Strong consumer demand and excellent customer service continues to propel PLO and PSC, both up 13%. Turning to our key business strategy highlights for Q2 on slide six, we continued to strengthen our core porn operations, investing in people and technology. In Latin America, we improved PLO growth by focusing on the fundamentals in our stores and by reinforcing business model best practices. We continued to modernize our point of sale backend and launched workday scheduling to enhance both productivity and efficiency, as well as team member work-life balance. EasyPlus Rewards members grew to 4.6 million globally, with 1.3 million transacting in Q2, almost evenly split between the US and Latin America. Across all geographies, unique customs increased 2%. 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 members remain highly engaged. We hosted our second annual Career Week, focused on growth opportunities for all team members across the organization, and launched a variety of workday talent tools. On the innovation and growth side, online payments grew $9.1 million to $21.8 million in the U.S., and we expanded online payments to all stores in Mexico. The Buy Online, Pick Up in Store pilot initiative has expanded to 100 stores in the U.S. and we are seeing early success in e-commerce activities in our luxury porn business in Las Vegas, where this channel is helping drive sales for the category. Slide 7 provides some of our sustainability highlights during the quarter. We sold 1.3 million pre-owned general merchandise and jewelry items and provided critical financial services to customers in need in the hundreds of local communities in which we serve. At EasyCorp, we foster an environment that values diversity, inclusion, and development for all, and we are driving many important initiatives across the organization, enhancing diversity awareness, encouraging inclusive conversations, and more. We launched an Easy Pride affinity group and grew all existing US and LATAM affinity groups, Easy Inclusive Conversations, and Internal Conversations. The backbone of the company is our passionate, productive, tenured, and committed team members, and we continue to find new ways to enhance their experience. Community engagement is also critical to the culture we are building at Easy Corps. We are working with nine U.S. charities whose work closely aligns with our stated goals of supporting financial literacy, eradicating food insecurity, empowering young people to achieve success, and poverty intervention. I would now like to turn the call over to Tim Judman, our CFO, to provide more details on our financial results. Tim? Thanks, Lockie.