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AUSTIN, Texas - EZCORP, Inc. (NASDAQ: EZPW), a prominent pawn transaction provider in the United States and Latin America, with a market capitalization of $804.3 million and annual revenue of $1.18 billion, has successfully closed a private offering of $300 million in senior notes due 2032. According to InvestingPro analysis, the company maintains a healthy financial position with a strong gross profit margin of 58.82%. These senior unsecured obligations carry an interest rate of 7.375% per annum, with semiannual payments starting October 1, 2025, and are guaranteed by certain wholly owned domestic subsidiaries.
The company disclosed that the net proceeds from the sale of these notes, after initial purchaser discounts and estimated offering costs, amounted to roughly $292.5 million. EZCORP plans to allocate approximately $103.4 million of the net proceeds to repay its 2.375% Convertible Senior Notes due in 2025 at maturity. The remaining proceeds are intended for general corporate purposes. InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.91, indicating robust ability to meet short-term obligations. The company’s overall financial health score is rated as GREAT by InvestingPro analysts.
The notes were sold to qualified institutional buyers in compliance with Rule 144A under the Securities Act of 1933, or to certain non-U.S. persons under Regulation S. The sale and offer of these notes and related guarantees have not been registered under the Securities Act or any state securities laws, and as such, cannot be offered or sold in the United States without registration or an exemption from registration requirements.
EZCORP’s announcement also included forward-looking statements regarding the use of proceeds from the notes offering and other future events. These statements are based on current expectations and are subject to uncertainties and factors that could cause actual future results to differ materially.
Founded in 1989, EZCORP has expanded its services to become a leading pawn transaction provider. The company also sells pre-owned merchandise, mainly items forfeited from pawn lending operations or purchased from customers. EZCORP focuses on meeting the short-term cash needs of consumers who lack access to traditional credit sources. The company is listed on the NASDAQ stock exchange and is a constituent of the S&P 1000 and Nasdaq Composite indices.
The information in this article is based on a press release statement from EZCORP, Inc.
In other recent news, EZCORP Inc. reported a strong financial performance with a 7% increase in Q4 sales, surpassing Canaccord Genuity’s estimates, and a notable 13% rise in pawn loans outstanding to $274.8 million. The company also experienced a 4% growth in merchandise sales, although the merchandise margin slightly missed the target range, attributed to promotional activities. Meanwhile, Canaccord Genuity raised its price target for EZCORP to $22, maintaining a Buy rating, citing the company’s consistent operational improvements and the potential benefits of its pending acquisition of Auto Dinero.
Additionally, EZCORP announced its intention to offer $300 million in senior notes due 2032, with plans to use part of the proceeds to repay convertible senior notes maturing in 2025. The company also terminated its planned acquisition of 53 pawn shops in Mexico from Presta Dinero but remains focused on expanding its presence in the region. Roth/MKM initiated coverage on EZCORP with a Buy rating and a price target of $16, noting the company’s successful business model innovations and financial returns.
Furthermore, EZCORP appointed Michael Croney as its new Chief Accounting Officer, effective February 2025, signaling a commitment to strengthening its leadership team. Croney brings extensive experience from previous roles in various senior accounting positions. These developments reflect EZCORP’s strategic initiatives and ongoing efforts to enhance its financial management and operational capabilities.
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