Revenue during the quarter went up marginally by 0.75 percent to $189.63 million from $188.21 million in the previous year period. Gross margin for the quarter expanded 38 basis points over the previous year period to 57.95 percent. Total expenses were 91.53 percent of quarterly revenues, down from 93.09 percent for the same period last year. This has led to an improvement of 155 basis points in operating margin to 8.47 percent.

Operating income for the quarter was $16.05 million, compared with $13.01 million in the previous year period.

Stuart Grimshaw, EZCORP's chief executive officer, said: "It is pleasing to see the continuing trend of strong profit growth after the strategic changes that were implemented over a year ago. We have devoted a lot of management attention and effort in focusing on the needs and experience of our customers. Our continued focus on and investment in satisfying our customers' need for cash whenever they want it drove the acceleration in earnings and sustained growth in pawn loans outstanding. "We have improved our balance sheet and liquidity position, which provides strategic flexibility to continue our investment in the customer experience and expansion of the pawn loan portfolio to drive increased profit. We continue to invest in the core fabric of the pawn business, including commencement of our upgraded point of sale system rollout, which we expect to be completed in both the U.S. and Mexico this calendar year. We opened two new stores in Mexico this quarter and anticipate opening an additional eight in Mexico during the remainder of this fiscal year. "We are confident that these initiatives, combined with further investments in product development and customer analytics, in sustained training, coaching and mentoring of our field team, and in disciplined acquisitions and de novo openings, will continue to provide a robust platform for further profitable growth."

Cash flow from investing activities was $36.47 million for the first half, up 159.81 percent or $22.43 million, when compared with the last year period.

The company has spent $0.77 million cash to carry out financing activities during the first six months as against cash outgo of $49.94 million in the last year period.

Cash and cash equivalents stood at $120.10 million as on Mar. 31, 2017, up 59.42 percent or $44.76 million from $75.34 million on Mar. 31, 2016.

Working capital increases sharply
EZCORP, Inc. has recorded an increase in the working capital over the last year. It stood at $415.06 million as at Mar. 31, 2017, up 55.18 percent or $147.60 million from $267.46 million on Mar. 31, 2016. Current ratio was at 6.66 as on Mar. 31, 2017, up from 2.42 on Mar. 31, 2016.

Days sales outstanding went up to 66 days for the quarter compared with 29 days for the same period last year.

Days inventory outstanding has decreased to 77 days for the quarter compared with 148 days for the previous year period.