What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2021-08-04 compared with 2021-05-05 · 104 added, 89 removed, 314 unchanged (38% of the section changed)

9 unchanged sentences

We are a leading provider of pawn loans in the United States and Latin America.

Pawn loans are non-recourse loans collateralized by personal property.

Pawn loans are nonrecourse loans collateralized by personal property.

We also sell merchandise, primarily collateral forfeited from unpaid loans or goods purchased directly from customers.

25 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 and six months ended March 31, 2021 and 2020:

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

The following chart presents sources of net revenues by geographic disbursement for the three and nine months ended June 30, 2021 and 2020:

Business Developments

1 unchanged sentence

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 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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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.

On June 9, 2021, we completed the acquisition of 100% of the common shares of PLO del Bajio S.

(“Bajio”) and gained control of the entity, further expanding our geographic footprint within Mexico with the addition of 128 pawn stores.

These stores, operating under the name "Cash Apoyo Efectivo," are located principally in the Mexico City metropolitan area and have strong brand recognition in that market.

This is our largest acquisition to date in terms of store-count.

The total consideration paid for Bajio was $23.6 million, consisting of cash of $17.4 million, of which $11.6 million was paid in cash at closing and the remaining $5.8 million is accrued and held as restricted cash to be paid out per the acquisition agreement, and 212,870 shares of our Class A Non-Voting Common Stock valued at $1.6 million.

In addition, t h e sellers may be entitled to additional payments of up to $4.6 million over the next two years, contingent on the performance of the acquired stores with growing its loan portfolio.

We also repaid $14.9 million of Bajio’s existing debt assumed in the acquisition.

In May 2021, we acquired 11 pawn stores in the Houston, Texas area, providing an immediate market-leading position in the South Houston area and enhancing our already strong position in the strategically important Houston metro market.

Strategic Initiatives

During the fourth quarter of fiscal 2020, we began to implement strategic initiatives to refocus on our core pawn business and optimize our cost structure in order to improve our bottom line performance and position us for sustainable growth.

During the third quarter of fiscal 2021, due to uneconomic rate caps and limited synergies across our platform, we finalized our decision for the closure of our 11 stores in Peru and incurred costs of $0.5 million related to the closure.

Results of Operations

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To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we provide certain other non-GAAP financial information on a constant currency basis ("constant currency").

We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzals and other Latin American currencies.

We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies.

We believe presentation of constant currency results is meaningful and useful in understanding the activities and business metrics of our Latin America Pawn operations and reflect an additional way of viewing aspects of our business that, when viewed with GAAP results, provide a better understanding and evaluation of factors and trends affecting our business.

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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 and six months ended March 31, 2021 and March 31, 2020 were as follows:

dollars as of and for the three and nine months ended June 30, 2021 and June 30, 2020 were as follows:

Three Months Ended

Six Months Ended

Nine Months Ended

2021 2020 2021 2020 2021 2020

12 unchanged sentences

Store Data by Segment

Three Months Ended March 31, 2021

Three Months Ended June 30, 2021

Pawn Latin America Pawn Consolidated

As of December 31, 2020 505 502 1,007

New locations opened — 4 4

As of March 31, 2021 505 506 1,011

New locations opened — 4 4

Locations acquired 11 128 139

Locations sold, combined or closed — (11) (11)

As of June 30, 2021

516 627 1,143

Three Months Ended March 31, 2020

Three Months Ended June 30, 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

New locations opened — 3 — 3

Locations sold, combined or closed (1) — — (1)

As of June 30, 2020

511 496 22 1,029

Six Months Ended March 31, 2021

Nine Months Ended June 30, 2021

Pawn Latin America Pawn Consolidated

1 unchanged sentence

New locations opened — 10 10

As of March 31, 2021

Locations acquired 11 128 139

Locations sold, combined or closed — (11) (11)

As of June 30, 2021

516 627 1,143

Six Months Ended March 31, 2020

Nine Months Ended June 30, 2020

Pawn Latin America Pawn Other International Consolidated

1 unchanged sentence

New locations opened — 16 — 16

As of March 31, 2020

Locations sold, combined or closed (1) — — (1)

As of June 30, 2020

511 496 22 1,029

Three Months Ended March 31, 2021 vs.

Three Months Ended March 31, 2020

Three Months Ended June 30, 2021 vs.

Three Months Ended June 30, 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.

1 unchanged sentence

Pawn segment:

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands) 2021 2020

11 unchanged sentences

Store expenses 62,507 66,243 (6)%

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

Depreciation and amortization 2,600 2,749 (5)%

Loss on sale or disposal of assets and other — 234 (100)%

Segment contribution $ 18,149 $ 16,557 10%

7 unchanged sentences

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

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 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.

Pawn service charges increased by 7% as a result of higher average PLO for the quarter.

Same stores pawn service charges also increased by 7%.

Merchandise sales decreased 27% on both a total and same store basis resulting from the increased demand in the prior year quarter due to the impact of federal economic stimulus.

Merchandise sales gross profit decreased 3% to $39.2 million offset by a 1,100 bps improvement in merchandise sales gross profit margin, primarily due to reduced aged inventory levels.

( There was a 900 bps improvement when excluding a loss from looting of $2.2 million from merchandise cost of goods sold in the prior year).

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

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.

Segment contribution increased $1.6 million or 10%.

When excluding the looting charge taken in the prior year quarter, segment contribution decreased $0.6 million,

Latin America Pawn

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands) 2021 (GAAP)

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Store Expenses 19,296 15,041 28% 17,276 15%

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

Depreciation and amortization 1,806 1,647 10% 1,622 (2)%

Other Charges 497 — * 491 *

Segment operating contribution 3,077 (1,180) 361% 3,275 378%

6 unchanged sentences

Pawn loan redemption rate (d) 79 % 77 % 200bps 79 % 200bps

* Represents a percentage computation that is not mathematically meaningful.

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

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

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 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 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.

In the current quarter, we acquired 128 stores and opened four de novo stores, bringing total segment store-co unt to 627 at t he end of the quarter (net of the closure of 11 stores in Peru).

Pawn service charges increased 44% (30% on a constant currency basis).

Same store pawn service charges increased by 38% (24% on a constant currency basis) as a result of higher average PLO for the quarter.

Merchandise sales increased 15% (3% on a constant currency basis) and 8% on a same store basis (4% decrease on a constant currency basis).

Merchandise sales gross profit increased 91% to $8.1 million (69% to $7.2 million on a constant currency basis) driven by a 1,400 basis points improvement in merchandise sales gross profit margin primarily due to reduced aged inventory levels and improved inventory turnover.

Store expenses increased by 28% (15% on a constant currency bas is) primarily due to an increase in transaction volume and costs resulting from the re-opening of stores impacted by the COVID-19 pandemic last year.

Segment contribution increased $4.3 million primarily due to the shutdown of stores related to the COVID-19 pandemic last year.

Other International

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

Three Months Ended March 31,

Three Months Ended June 30,

(in thousands) 2021 2020

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Store expenses — 1,057 *

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

Depreciation and amortization — 3 *

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

Gain on sale or disposal of assets — (20) *

Equity in net (income) loss of unconsolidated affiliates (643) 1,183 (154)%

Segment operating contribution 732 (1,339) 155%

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* 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.

Segment contribution was $0.7 million, an increase of $2.2 million from the prior-year quarter primarily due to the increase in equity income for our unconsolidated affiliates.

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 March 31,

Three Months Ended June 30,

Percentage Change

(in thousands) 2021 2020

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

Segment contribution $ 22,429 $ 14,345 56%

Corporate expenses (income):

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Other expense 52 94 *

Income before income taxes 6,799 (34,125) 120%

Income tax expense 1,469 6,749 (78)%

Net income $ 5,330 $ (40,874) 113%

Loss before income taxes (766) (10,238) 93%

Income tax expense (benefit) 1,804 (4,751) (138)%

Net loss $ (2,570) $ (5,487) 53%

* Represents a percentage computation that is not mathematically meaningful.

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.

Segment contribution increased $8.1 million over the prior-year quarter or 56% primarily due to the increase in the Latin America Pawn segment contribution resulting from the re-opening of stores impacted by COVID-19 last year.

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 increased $6.6 million for the quarter primarily due to a n increase in income taxes for the current year due to an approximately $9.5 million increase in income before income taxes.

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

Nine Months Ended June 30, 2021 vs.

Nine Months Ended June 30, 2020

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

1 unchanged sentence

Pawn segment:

Six Months Ended March 31,

Nine Months Ended June 30,

(in thousands) 2021 2020

21 unchanged sentences

(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.

Pawn service charges decreased 14% in total and on a same store basis.

This decrease reflects a substantial decline in new loans activity and associated loan balances as customer borrowing behaviors were impacted by COVID-19.

Merchandise sales decreased 17% in total and on a same store basis due to lower inventory levels.

Merchandise sales gross profit increased 3% to $115.4 million driven by a 800 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.

Segment contribution decreased $0.9 million primarily due to the changes in revenue and store expenses described above, offset by the $10.0 million goodwill impairment charge recorded during the prior year quarter.

Excluding the goodwill impairment charge, segment contribution decreased $10.9 million, or 14%, to $64.7 million.

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

Latin America Pawn

2 unchanged sentences

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

Six Months Ended March 31,

Nine Months Ended June 30,

(in thousands) 2021 (GAAP)

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

Other Charges 497 — * 491 *

Segment operating contribution (loss) 8,955 (23,858) 138% 8,610 136%

4 unchanged sentences

Pawn loan redemption rate 81 % 77 % 400bps 81 % 400bps

* Represents a percentage computation that is not mathematically meaningful.

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

1 unchanged sentence

(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.

During the nine months ended June 30, 2021, our Latin America pawn segment acquired 128 stores and opened ten de novo stores.

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

1 unchanged sentence

Same stores pawn service charges also decreased by 16% (17% 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.

The average ending monthly pawn loan balance outstanding during the nine month period was down 25% (26% on a constant currency basis).

During most of this period, 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 11% (12% on a constant currency basis) and 14% on a same store basis due to lower inventory levels.

This decrease in merchandise sales was offset by an increase in merchandise sales gross profit of 24% to $24.6 million (22% to $24.2 million on a

constant currency basis) driven by a 1,000 bps improvement in merchandise sales gross profit margin primarily due to reduced aged inventory levels and improved inventory turnover.

Store expenses decreased by 1% (flat on a constant currency basis) driven by a reduction in labor expense.

Segment contribution increased $33.9 million primarily due to the impairment charges of $35.9 million recorded during the prior year quarter.

Excluding the impairment charges, segment contribution decrease d $2.0 million, or 15%, to $11.1 milli on.

3 unchanged sentences

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

Six Months Ended March 31,

Nine Months Ended June 30,

(in thousands) 2021 2020

6 unchanged sentences

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

Gain on sale or disposal of assets — (20) (100)%

Equity in net (income) loss on unconsolidated affiliates (2,409) 5,896 141%

2 unchanged sentences

Segment contribution (loss) $ 2,930 $ (8,842) 133%

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.

Segment contribution was $2.9 million, an increase of $11.8 million from the prior-year quarter primarily due to a an increase of $5.0 million of net segment operating contribution resulting from the closure of our Canada operations and a $7.1 million charge, ($10.1 million, net of a $3.0 million tax benefit) in the first quarter of fiscal 2020 for the our share of the Cash Converters International settlement of a class action lawsuit.

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,

Nine Months Ended June 30,

Percentage Change

7 unchanged sentences

Interest income (99) (1,251) (92)%

Other expense (income) 117 (20) 685%

Other expense 169 74 128%

Income (loss) from continuing operations before income taxes 11,535 (41,366) 128%

3 unchanged sentences

Segment contribution increased $44.8 million or 132% 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.

Excluding the impairment charges, segment contribution decreased by $2.3 million or

3% 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 $9.5 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 increased $0.7 million primarily due to an increase in income taxes for the current year due to an approximately $52.9 million increase in income before income taxes offset by 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.

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

3 unchanged sentences

Cash and Cash Equivalents

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.

Our cash and equivalents balance was $283.7 million at June 30, 2021 compare d to $304.5 million at September 30, 2020.

At June 30, 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:

Six Months Ended

Nine Months Ended

(in thousands) 2021 2020

Cash flows provided by operating activities $ 33,122 $ 56,365 (41)%

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

Cash flows (used in) provided by investing activities (37,086) 110,389 (134)%

Cash flows used in financing activities (16,202) (7,388) (119)%

Effect of exchange rate changes on cash, cash equivalents and restricted cash 5,076 (6,678) 176%

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.

Net (decrease) increase in cash, cash equivalents and restricted cash $ (15,090) $ 152,688 (110)%

Net cash provided by operating activities decreased $23.2 million or 41% year-over-year due to a decrease of $4.5 million in net income adjusted for non-cash items, and a decrease of $18.7 million in changes to working capital.

Changes in working capital are primarily related to the timing of collections in pawn service charges receivable, layaway deposits, inventory purchases, and the timing of outgoing payments of accounts payable and prepaid expenses.

Net cash provided by investing activities decreased by $147.5 million, or 134%, year-over-year primarily due to a $92.7 million decrease in the sale of forfeited collateral, a decrease of $41.9 million in net pawn loan lending and collections and acquisitions of $15.1 million.

Net cash used in financing activities increased $8.8 million, or 119%, year-over-year primarily due to the payment of assumed debt of $14.9 million from the Bajio acquisition (discussed in Note 2), offset by a $5.2 million decrease in the repurchase of common stock paid during the prior year.

The net effect of cash flows was a $15.1 million decrease in cash on hand during the current year-to-date period, resulting in a $297.5 million ending cash and restricted cash balance.

Sources and Uses of Cash

2 unchanged sentences

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.

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

During the three and nine months ended June 30, 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