What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-05-05 compared with 2021-02-03 · 197 added, 55 removed, 206 unchanged (55% of the section changed)

37 unchanged sentences

We remain focused on optimizing our balance of pawn loans outstanding (“PLO”) and the resulting higher pawn service charges (“PSC”).

The following chart presents sources of net revenues, including PSC, merchandise sales gross profit ("Merchandise sales GP") and jewelry scrapping gross profit ("Jewelry Scrapping GP") for the three months ended December 31, 2020 and 2019:

The following chart presents sources of net revenues by geographic disbursement for the three months ended December 31, 2020 and 2019:

The following chart presents sources of net revenues by geographic disbursement for the three and six months ended March 31, 2021 and 2020:

Business Developments

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and global economies, and as disclosed in our 2020 Annual Report on Form 10-K, the pandemic also affected our business in a variety of ways beginning in the second quarter of fiscal 2020 and continuing into fiscal 2021.

Our business was negatively impacted by COVID-19 during the current quarter largely due to volume declines as compared to the prior year in pawn loan originations and associated loan balances in both the U.S.

and Latin America, as a result of a change in customer borrowing behaviors.

Additionally, the impact of sustained lower pawn portfolios has led to reduced inventory available for sale.

As a result, our net revenues for the three months ended December 31, 2020 were down $21.7 million as compared to the prior year.

Our business was negatively impacted by COVID-19 during the current quarter largely due to increased loan redemptions as compared to the prior-year quarter, resulting in decreased loan balances in both the U.S.

and Latin America.

Additionally, the impact of sustained lower pawn loan portfolios has led to reduced inventory available for sale.

Retail sales margins increased significantly during the current quarter in both the U.S.

and Latin America compared to the prior-year quarter as a result of continued retail demand for value priced pre-owned merchandise and lower levels of aged inventory, all of which limited the need for normal discounting.

In Latin America, we are seeing continued impact as the result of constrained traffic, limited operating hours and increased remittances from the U.S.

As a result, our net revenues for the three months ended March 31, 2021 were down $13.6 million as compared to the prior-year quarter.

The full extent and duration of the COVID-19 impact on the global economy generally, and on our business specifically, is currently unknown.

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A prolonged pandemic and recovery may have an adverse effect on our results of operations, financial position and liquidity in future periods.

Reinvestment of Dividends

On February 21, 2021, Cash Converters International announced that its board of directors declared an interim dividend of AUD $0.01 per share, which was payable on April 14, 2021 to ordinary shareholders of record as of the close of business on March 25, 2021.

We elected to receive our dividend entitlement in the form of additional ordinary shares pursuant to Cash Converters International's pre-existing Dividend Reinvestment Plan.

Under that plan, on April 14, 2021, we received an additional 9,519,277 shares, bringing our total ownership to 223,702,991 shares, representing 35.65% of Cash Converters International's total outstanding ordinary shares.

Results of Operations

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The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S.

dollars as of and for the three months ended December 31, 2020 and 2019 and September 30, 2020 and 2019 were as follows:

dollars as of and for the three and six months ended March 31, 2021 and March 31, 2020 were as follows:

Three Months Ended

September 30, Three Months Ended

September 30,

Six Months Ended

2021 2020 2021 2020 2021 2020

8 unchanged sentences

• Other International — Represents our equity interest in the net income of Cash Converters International and Rich Data Corporation and our financial services stores in Canada, operating under the CASHMAX brand.

In the fourth quarter of fiscal 2020, we closed our stores in Canada, and operating activities related to CASHMAX are not material.

In the fourth quarter of fiscal 2020, we closed our stores in Canada, and closing activities related to CASHMAX in fiscal year 2021 are not material.

See Note 12 (Segment Information) for information regarding changes in reportable segments.

Our historical segment results have been recast to conform to current presentation.

Three Months Ended December 31, 2020 vs.

Three Months Ended December 31, 2019

Store Data by Segment

Three Months Ended December 31, 2020

Three Months Ended March 31, 2021

Pawn Latin America Pawn Consolidated

As of September 30, 2020 505 500 1,005

As of December 31, 2020 505 502 1,007

New locations opened — 4 4

Locations sold, combined or closed — — —

As of March 31, 2021

505 506 1,011

Three Months Ended March 31, 2020

Pawn Latin America Pawn Other International Consolidated

As of December 31, 2019 512 484 22 1,018

New locations opened — 9 — 9

As of March 31, 2020

512 493 22 1,027

Three Months Ended December 31, 2019

Six Months Ended March 31, 2021

Pawn Latin America Pawn Consolidated

As of September 30, 2020 505 500 1,005

New locations opened — 6 6

As of March 31, 2021

505 506 1,011

Six Months Ended March 31, 2020

Pawn Latin America Pawn Other International Consolidated

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New locations opened — 13 — 13

Locations sold, combined or closed — — — —

As of December 31, 2019

As of March 31, 2020

512 493 22 1,027

Three Months Ended March 31, 2021 vs.

Three Months Ended March 31, 2020

These tables, as well as the discussion that follows, should be read in conjunction with the accompanying condensed consolidated financial statements and related notes.

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Pawn segment:

Three Months Ended December 31,

Three Months Ended March 31,

(in thousands) 2021 2020

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Store expenses 63,657 67,619 (6)%

Impairment of goodwill, intangibles and other assets — 10,000 *

Depreciation and amortization 2,636 2,711 (3)%

Segment operating contribution 20,768 28,554 (27)%

Other segment income 27 — *

Segment contribution $ 25,760 $ 20,421 26%

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Pawn service charges decreased by 20% due to a decrease in pawn loans outstanding resulting from the effects of the COVID-19 pandemic.

Same stores pawn service charges also decreased by 22%.

Merchandise sales decreased 14%, but merchandise sales gross profit increased 1% to $34.2 million driven by lower inventory levels and a 600 bps improvement in merchandise sales gross profit margin, primarily driven by reduced aged inventory levels and improved inventory turnover.

Same stores merchandise sales also decreased by 14%.

Same stores pawn service charges decreased by 19%.

Merchandise sales decreased 8% on both a total and same store basis driven by lower inventory levels.

Merchandise sales gross profit increased 13% to $42.0 million driven by a 900 bps improvement in merchandise sales gross profit margin, primarily due to reduced aged inventory levels and improved inventory turnover.

Store expenses decreased by 6% driven by a reduction in labor expense.

Segment contribution decreased $7.8 million primarily due to the changes in revenue and store expenses described above.

Segment contribution increased $5.3 million or 26% due to a $4.0 million decrease in store expenses and a $10.0 million impairment charge taken in the prior year quarter with no similar charge in the current year quarter, partially offset by a $8.7 million decrease in net revenues driven by the decrease in pawn service charges described above.

Latin America Pawn

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dollars from its functional currencies noted above under “Results of Operations — Non-GAAP Financial Information."

Three Months Ended December 31,

Three Months Ended March 31,

(in thousands) 2021 (GAAP)

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Store Expenses 17,492 18,469 (5)% 17,834 (3)%

Impairment of goodwill, intangible and other assets — 35,936 (100)% — (100)%

Depreciation and amortization 1,793 1,940 (8)% 1,830 (6)%

7 unchanged sentences

Pawn loan redemption rate (d) 82 % 78 % 400bps 82 % 400bps

(a) Fiscal 2021 constant currency amount excludes net GAAP basis foreign currency transaction adjustment of $0.1 million resulting from movement in exchange rates.

The net foreign currency transaction gains for fiscal 2020 were nominal and are included in the above results.

(a) Fiscal 2021 constant currency amount excludes a nominal net GAAP basis foreign currency transaction adjustment resulting from movement in exchange rates.

The net foreign currency transaction adjustment for fiscal 2020 was nominal and are included in the above results.

(b) Balance includes pawn loans and inventory.

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(d) Rate is solely inclusive of results from Mexico Pawn.

In the current quarter, our Latin America pawn segment opened two de novo stores.

In the current quarter, our Latin America pawn segment opened four de novo stores.

Pawn service charges decreased 25% (24% on a constant currency basis).

Same stores pawn service charges also decreased by 36%.

The average ending monthly pawn loan balance outstanding during the current quarter was down 55% (53% on a constant currency basis).

We have experienced a substantial decline in new loans activity and associated loan balances as a result of a change in customer borrowing behaviors due to COVID-19.

Merchandise sales decreased 19% (15% on a constant currency basis).

Same stores merchandise sales decreased by 20%.

Same stores pawn service charges also decreased by 25% (24% on a constant currency basis).

The average ending monthly pawn loan balance outstanding during the current quarter was down 33%.

We have experienced a substantial decline in new loans activity and associated loan balances as the result of the impact of constrained traffic, limited operating hours and increased remittances from the U.S.

Merchandise sales decreased 22% (20% on a constant currency basis) and 22% on a same store basis (21% on a constant currency basis) driven by lower inventory levels.

This decrease in merchandise sales was offset by an increase in merchandise sales gross profit of 8% to $7.4 million (10% to $7.6 million on a constant currency basis) driven by a 1,000 basis points improvement in merchandise sales gross profit margin primarily due to reduced aged inventory levels and improved inventory turnover.

Store expenses decreased by 5% (3% on a constant currency basis) driven by a reduction in labor expense.

Segment contribution decreased $3.2 million primarily due to the changes in revenue and store expenses described above.

Segment contribution increased $32.8 million primarily due to a $35.9 million impairment charge of goodwill, intangible and other assets taken in the prior year quarter with no similar charge in the current quarter.

Other International

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dollars from its functional currency of primarily Australian and Canadian dollars:

Three Months Ended December 31,

Three Months Ended March 31,

(in thousands) 2021 2020

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Segment operating expenses:

Operations — 1,233 (100)%

Equity in net (income) loss on unconsolidated affiliates (516) 5,897 (109)%

Store expenses — 1,560 *

Impairment of goodwill, intangibles and other assets — 1,124 *

Depreciation and amortization — 23 *

Equity in net income on unconsolidated affiliates (1,250) (1,184) 6%

Segment operating contribution 1,424 (717) 299%

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Segment contribution (loss) $ 1,415 $ (891) 259%

Segment contribution was $0.8 million, an increase of $7.3 million from the prior-year quarter primarily due to a $7.1 million charge, ($10.1 million, net of a $3.0 million tax benefit) in the first quarter of fiscal 2020 for our share of the Cash Converters International

settlement of a Queensland, Australia class action lawsuit.

* Represents a percentage computation that is not mathematically meaningful.

Segment contribution was $1.4 million, an increase of $2.3 million from the prior-year quarter primarily due to a $1.1 million impairment charge of certain long-lived assets in the second quarter of fiscal 2020 and $1.0 increase in net segment operating contribution resulting from the closure of our Canada operations.

We operated 22 financial services stores in Canada under the CASHMAX brand during fiscal year 2020.

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The following table reconciles our consolidated segment contribution discussed above to net income attributable to EZCORP, Inc., including items that affect our consolidated financial results but are not allocated among segments:

Three Months Ended December 31,

Three Months Ended March 31,

Percentage Change

(in thousands) 2021 2020

Segment contribution $ 26,504 $ 30,205 (12)%

Segment contribution (loss) $ 29,796 $ (10,611) 381%

Corporate expenses (income):

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* Represents a percentage computation that is not mathematically meaningful.

Segment contribution decreased $3.7 million or 12% over the prior-year quarter primarily due to reduced pawn service charges from a decline in new loans activity and associated loan balances as a result of a change in customer borrowing behaviors due to COVID-19, partially offset by increased merchandise sales gross profit and decreased store expenses.

Segment contribution increased $40.4 million over the prior-year quarter primarily due to a $47.1 million impairment charge of certain long-lived assets in the second quarter of fiscal 2020.

Excluding the impairment charges, segment contribution decreased by $6.7 million or 18% primarily due to reduced pawn service charges from a decline in new loan activity and associated loan balances as a result of a change in customer borrowing behaviors due to COVID-19, partially offset by increased merchandise sales gross profit and decreased store expenses.

General and administrative expenses decreased $1.6 million or 10% due to strategic initiatives implemented in the fourth quarter of fiscal year 2020 to optimize our cost structure at the corporate level.

Income tax expense decreased $5.3 million for the quarter primarily due to a decrease in income tax expense of approximately $14.0 million due to non-deductible goodwill impairments booked in the prior year quarter, offset by an increase in income taxes for the current year due to an approximately $43.0 million increase in income from continuing operations.

Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate.

These items include the net effect of state taxes, non-deductible items and changes in valuation allowances for certain foreign operations.

Six Months Ended March 31, 2021 vs.

Six Months Ended March 31, 2020

The tables below and discussion that follows should be read in conjunction with the accompanying condensed consolidated financial statements and related notes.

The following table presents selected summary financial data for the U.S.

Pawn segment:

Six Months Ended March 31,

(in thousands) 2021 2020

Net revenues:

Pawn service charges $ 99,797 $ 125,790 (21)%

Merchandise sales 176,080 197,801 (11)%

Merchandise sales gross profit 76,209 71,151 7%

Gross margin on merchandise sales 43 % 36 % 700bps

Jewelry scrapping sales 7,585 15,776 (52)%

Jewelry scrapping sales gross profit 1,592 3,221 (51)%

Gross margin on jewelry scrapping sales 21 % 20 % 100bps

Other revenues 51 67 (24)%

Net revenues 177,649 200,229 (11)%

Segment operating expenses:

Store expenses 125,749 135,678 (7)%

Impairment of goodwill, intangibles and other assets — 10,000 *

Depreciation and amortization 5,372 5,576 (4)%

Segment operating contribution 46,528 48,975 (5)%

Other segment expense 27 — *

Segment contribution $ 46,501 $ 48,975 (5)%

Average monthly ending pawn loan balance per store (a) $ 224 $ 286 (22)%

Monthly average yield on pawn loans outstanding 15 % 14 % 100bps

Pawn loan redemption rate 86 % 86 % —bps

* Represents a percentage computation that is not mathematically meaningful.

(a) Balance is calculated based upon the average of the monthly ending balances during the applicable period.

Pawn service charges decreased 21% ( 20% on a same store basis) due to a substantial decline in new loans activity and associated loan balances as a result of a change in customer borrowing behaviors as a result of COVID-19.

Merchandise sales decreased 11% ( 10% on a same store basis) due to lower inventory levels.

Merchandise sales gross profit increased 7% to $76.2 million driven by a 700 bps improvement in merchandise sales gross profit margin, primarily driven by reduced aged inventory levels and improved inventory turnover.

Store expenses decreased by 7% due to a reduction in labor expense.

Segment contribution decreased $2.5 million primarily due to the goodwill impairment charge recorded during the prior year quarter.

Excluding the goodwill impairment charge, segment contribution decreased $12.5 million, or 21%, to $46.5 million.

This decrease was primarily due to the changes in revenue and store expenses described above.

Latin America Pawn

The following table presents selected summary financial data our Latin America Pawn segment, including constant currency results, after translation to U.S.

dollars from functional currencies.

See “Results of Operations — Non-GAAP Financial Information” above.

Six Months Ended March 31,

(in thousands) 2021 (GAAP)

Change (GAAP) 2021 (Constant Currency)

Change (Constant Currency)

Net revenues:

Pawn service charges $ 27,128 $ 39,157 (31)% $ 28,045 (28)%

Merchandise sales 46,928 58,757 (20)% 48,588 (17)%

Merchandise sales gross profit 16,466 15,555 6% 17,013 9%

Gross margin on merchandise sales 35 % 26 % 900bps 35 % 900bps

Jewelry scrapping sales 5,249 5,630 (7)% 5,327 (5)%

Jewelry scrapping sales gross profit 639 814 (21)% 666 (18)%

Gross margin on jewelry scrapping sales 12 % 14 % (200)bps 13 % (100)bps

Other revenues, net 7 13 (46)% 7 (46)%

Net revenues 44,240 55,539 (20)% 45,731 (18)%

Segment operating expenses:

Store expenses 34,709 38,452 (10)% 35,931 (7)%

Depreciation and amortization 3,653 3,829 (5)% 3,785 (1)%

Impairment of goodwill, intangibles and other assets — 35,936 (100)% — (100)%

Segment operating contribution (loss) 5,878 (22,678) 126% 6,015 127%

Other segment income (a) (1,705) (664) 157% (1,684) 154%

Segment contribution (loss) $ 7,583 $ (22,014) 134% $ 7,699 135%

Average monthly ending pawn loan balance per store (b) $ 55 $ 89 (38)% $ 56 (37)%

Monthly average yield on pawn loans outstanding 17 % 16 % 100bps 17 % 100bps

Pawn loan redemption rate 82 % 78 % 400bps 82 % 400bps

(a) Fiscal 2021 constant currency amount excludes a nominal net GAAP basis foreign currency transaction adjustment resulting from movement in exchange rates.

The net foreign currency transaction adjustment for fiscal 2020 was nominal and are included in the above results.

(b) Balance is calculated based upon the average of the monthly ending balances during the applicable period.

During the six months ended March 31, 2021, our Latin America pawn segment opened six de novo stores.

The change in net revenue attributable to same stores and new stores added since the prior-year is summarized as follows:

Pawn service charges decreased 31% (28% on a constant currency basis).

Same stores pawn service charges also decreased by 31% (29% on a constant currency basis).

The average ending monthly pawn loan balance outstanding during the current quarter was down 38% (37% on a constant currency basis).

Merchandise sales decreased 20% (17% on both a same store and constant currency basis) and 21% on a same store constant currency basis due to lower inventory levels.

This decrease in merchandise sales was offset by an increase in merchandise sales gross profit of 6% to

$16.5 million (9% to $17.0 million on a constant currency basis) driven by a 900 bps improvement in merchandise sales gross profit margin primarily due to reduced aged inventory levels and improved inventory turnover.

Store expenses decreased by 10% (7% on a constant currency basis) driven by a reduction in labor expense.

Segment contribution increased $29.6 million primarily due to the impairment charges recorded during the prior year quarter.

Excluding the impairment charges, segment contribution decrease d $6.3 million, or 46%, to $13.9 milli on.

This decrease was primarily due to the changes in revenue and store expenses described above.

Other International

The following table presents selected financial data for our Other International segment after translation to U.S.

dollars from its functional currency of primarily Australian and Canadian dollars:

Six Months Ended March 31,

(in thousands) 2021 2020

Net revenues:

Consumer loan fees, interest and other $ 249 $ 2,686 (91)%

Consumer loan debt — 1,024 (100)%

Net revenues 249 1,662 (85)%

Segment operating expenses:

Store expenses — 2,850 (100)%

Impairment of goodwill, intangible and other assets — 1,124 (100)%

Equity in net (income) loss on unconsolidated affiliates (1,766) 4,713 137%

Segment operating contribution 2,015 (7,025) 129%

Other segment (income) expense (201) 343 159%

Segment contribution (loss) $ 2,216 $ (7,368) 130%

Segment contribution was $2.2 million, an increase of $9.6 million from the prior-year quarter primarily due to a $6.5 million increase in the net income from our unconsolidated affiliates, $1.4 decrease in net revenues and a $2.8 million decrease in store expenses resulting from the closure of our Canada operations.

We operated 22 financial services stores in Canada under the CASHMAX brand during fiscal year 2020.

During the fourth quarter of fiscal year 2020, we closed our CASHMAX business and are no longer operating stores in Canada.

Six Months Ended March 31,

Percentage Change

(in thousands) 2021 2020

Segment contribution $ 56,300 $ 19,593 187%

Corporate expenses (income):

General and administrative 26,281 34,179 (23)%

Depreciation and amortization 6,636 6,033 10%

Loss on sale or disposal of assets 63 1,100 (94)%

Interest expense 10,973 10,456 5%

Interest income (71) (1,027) (93)%

Other expense (income) 117 (20) 685%

Income (loss) from continuing operations before income taxes 12,301 (31,128) 140%

Income tax expense 2,672 8,508 (69)%

Net income (loss) attributable to EZCORP, Inc.

$ 9,629 $ (39,636) 124%

Segment contribution increased $36.7 million or 187% over the prior-year period, primarily due to a $47.1 million impairment charge of certain long-lived assets in the second quarter of fiscal 2020.

Excluding the impairment charges, segment contribution decreased by $10.4 million or 16% primarily due to reduced pawn service charges from a decline in new loan activity and associated loan balances as a result of a change in customer borrowing behaviors due to COVID-19, partially offset by increased merchandise sales gross profit and decreased store expenses.

General and administrative expenses decreased $7.9 million due to strategic initiatives implemented in the fourth quarter of fiscal year 2020 to optimize our cost structure at the corporate level.

Income tax expense decreased $5.8 million primarily due to a decrease in income tax expense of approximately $14.0 million due to non-deductible goodwill impairments booked in the quarter ended March 31, 2020, offset by an increase in income taxes for the current year due to an approximately $43.0 million increase in income from continuing operations.

Income tax expense includes other items that do not necessarily correspond to pre-tax earnings and create volatility in our effective tax rate.

These items include the net effect of state taxes, non-deductible items and changes in valuation allowances for certain foreign operations.

Liquidity and Capital Resources

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Cash and Cash Equivalents

Our cash and equivalents balance was $290.5 million at December 31, 2020 compare d to $304.5 million at September 30, 2020.

At December 31, 2020, our cash and equivalents were held in cash depository accounts with major banks or invested in high quality, short-term liquid investments.

Our cash and equivalents balance was $335.6 million at March 31, 2021 compare d to $304.5 million at September 30, 2020.

At March 31, 2021, our cash and equivalents were held in cash depository accounts with major banks or invested in high quality, short-term liquid investments.

The table and discussion below presents a summary of the selected sources and uses of our cash:

Three Months Ended

Six Months Ended

(in thousands) 2021 2020

Cash flows used in operating activities $ (4,513) $ (10,918) 59%

Cash flows used in investing activities (15,062) (6,798) (122)%

Cash flows provided by operating activities $ 18,721 $ 21,271 (12)%

Cash flows provided by investing activities 9,080 28,636 (68)%

Cash flows used in financing activities (1,710) (7,256) 76%

Effect of exchange rate changes on cash, cash equivalents and restricted cash 5,000 (7,364) 168%

Net decrease in cash, cash equivalents and restricted cash $ (14,092) $ (19,301) 27%

Net cash used in operating activities decreased $6.4 million, or 59%, year-over-year due to a net decrease of $12.1 million in non-cash adjustments to reconcile net income to operating cash flows, offset by an increase of $15.4 million in working capital and a $3.1 million increase in net income.

Net cash used in investing activities increased $8.3 million, or 122%, year-over-year primarily due to a $22.5 million decrease in the sale of forfeited collateral, offset by an $11.9 million net decrease in customer loan growth, l.

Net cash used in financing activities decreased $2.2 million, or 73%, year-over-year primarily due to a $1.0 million decrease in the repurchase of common stock and $0.7 million decrease in taxes paid related to the net settlement of equity awards.

The net effect of cash flows was a $14.1 million decrease in cash on hand during the current year-to-date period, resulting in a $298.5 million ending cash and restricted cash balance.

Net increase in cash, cash equivalents and restricted cash $ 31,091 $ 35,287 (12)%

Net cash provided by operating activities decreased $2.6 million or 12% year-over-year due to a decrease of $7.3 million in net income adjusted for non-cash items, offset by an increase of $4.8 million in net changes in working capital requirements primarily due to a decrease in inventory of $7.0 million.

Net cash provided by investing activities decreased by $19.6 million, or 68%, year-over-year primarily due to a $49.8 million decrease in the sale of forfeited collateral, offset by an $30.4 million net increase in pawn loan redemptions due to COVID-19 related government stimulus payments.

Net cash used in financing activities decreased $5.5 million, or 76%, year-over-year primarily due to a $5.2 million decrease in the repurchase of common stock.

The net effect of cash flows was a $31.1 million increase in cash on hand during the current year-to-date period, resulting in a $343.6 million ending cash and restricted cash balance.

Sources and Uses of Cash

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On March 20, 2020, we suspended the repurchase of shares under the program in order to preserve current liquidity given the uncertainty of the impact of the COVID-19 pandemic to our operations.

As of September 30, 2020, we had repurchased and retired 943,149 shares of our Class A Common Stock for $5.2 million.

The resumption of our stock repurchase program and the amount and timing of purchases will be dependent on a variety of factors, such as the return to normal business conditions, stock price, trading volume, general market conditions, legal and regulatory requirements, cash flow levels, and corporate considerations determined by management and the Board, such as liquidity and capital needs and the availability of attractive alternative investment opportunities.

The Board of Directors has reserved the right to modify, suspend or terminate the program at any time.

During the three months ended December 30, 2020, there were no stock repurchases.

As of September 30, 2020, we had repurchased and retired 943,149 shares of our Class A Common Stock for $5.2 million.

During the three and six months ended March 31, 2021, there were no stock repurchases.

We anticipate that cash flows from operations and cash on hand will be adequate to fund any future stock repurchases, our contractual obligations, planned de novo store growth, capital expenditures and working capital requirements through fiscal 2021.

22 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis