EZCORP, Inc (EZPW) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $3.23 million, or $ 0.31 a share in the quarter, against a net loss of $92.30 million, or $1.04 a share in the last year period. Revenue during the quarter grew 8.39 percent to $184.58 million from $170.29 million in the previous year period. Gross margin for the quarter contracted 56 basis points over the previous year period to 57.89 percent. Operating margin for the quarter period stood at positive 1.25 percent as compared to a negative 22.08 percent for the previous year period.
Operating income for the quarter was $2.31 million, compared with an operating loss of $37.59 million in the previous year period.
Stuart Grimshaw, EZCORP's Chief Executive Officer, said: "Fiscal 2016 was an important year for our company. Our intense focus on market leadership in meeting our customers' desire for cash whenever they want it, combined with consistent execution, delivered strong operating results for our pawn businesses in the U.S. and Mexico. We achieved market leading growth in same store pawn loans outstanding (PLO), the most influential driver of revenue and profitability, and continued to improve our customer experience metrics.
Operating cash flow declines
EZCORP, Inc has generated cash of $64.40 million from operating activities during the year, down 18.89 percent or $14.99 million, when compared with the last year. Cash flow from investing activities was $6.72 million from investing activities during the year as against cash outgo of $67.69 million in the last year.
The company has spent $63.16 million cash to carry out financing activities during the year as against cash inflow of $2.40 million in the last year period.
Cash and cash equivalents stood at $65.74 million as on Sep. 30, 2016, up 16.88 percent or $9.49 million from $56.24 million on Sep. 30, 2015.
Working capital increases
EZCORP, Inc has recorded an increase in the working capital over the last year. It stood at $387.16 million as at Sep. 30, 2016, up 11.31 percent or $39.35 million from $347.81 million on Sep. 30, 2015. Current ratio was at 5.08 as on Sep. 30, 2016, up from 2.67 on Sep. 30, 2015.
Debt increases substantially
EZCORP, Inc has witnessed an increase in total debt over the last one year. It stood at $283.61 million as on Sep. 30, 2016, up 43.26 percent or $85.63 million from $197.98 million on Sep. 30, 2015. Total debt was 28.84 percent of total assets as on Sep. 30, 2016, compared with 16.33 percent on Sep. 30, 2015. Debt to equity ratio was at 0.48 as on Sep. 30, 2016, up from 0.29 as on Sep. 30, 2015. 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
