What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2022-05-04 compared with 2022-02-02 · 204 added, 72 removed, 211 unchanged (57% of the section changed)

38 unchanged sentences

We remain focused on optimizing our balance of pawn loans outstanding (“PLO”) and the resulting higher 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, 2021 and 2020:

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

The following chart presents sources of net revenues by geographic disbursement for the three and six months ended March 31, 2022 and 2021:

Business Developments

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During the latter part of fiscal 2021, we saw pawn transaction activity continue to rebuild, driving PLO balances closer to pre-pandemic levels, which will drive accelerating PSC revenue in the coming quarters given the natural lag between pawn originations and related fees.

We continue to assess what type of impact the recent surge of the COVID-19 Omicron variant will have to our business net revenues and operating expenses in fiscal year 2022.

We continue to assess what type of impact various COVID-19 variants may have to our business net revenues and operating expenses in fiscal year 2022.

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

Share Repurchase Program

On May 3, 2022, the Company's Board of Directors approved a new share repurchase program, which will replace the previous program that was suspended in March 2020.

Under the new program, the Company is authorized to repurchase up to $50 million of its outstanding Class A Non-Voting common share over the next three years.

"Liquidity and Capital Resources — Sources and Uses of Cash" below.

Investments in Unconsolidated Entities

On October 1, 2021, we purchased an additional 13 million shares of Cash Converters for $2.5 million.

On March 10, 2022, we purchased an additional 5.5 million shares of Cash Converters for $1.0 million.

This purchase increased our total ownership in Cash Converters to 242,239,157 shares, representing a 38.60% ownership interest.

Additionally, on October 14, 2021, we received a cash dividend of $1.7 million from Cash Converters.

On October 6, 2021, the Company purchased $15.0 million in exchange for a non-redeemable voting participating preferred equity interest in Founders One, LLC (“Founders”), a newly-formed entity with one other member.

Founders used that $15.0 million to acquire an equity interest in Simple Management Group, Inc.

(“SMG”) which owns and operates more than 20 pawn stores principally in the Caribbean region, with plans to build and acquire more stores in that region.

On April 5, 2022, we acquired an additional 13 million shares for $2.5 million, bringing our total ownership to 255,239,157 shares, representing an ownership interest of 40.67%.

Additionally, on April 14, 2022, we received a cash dividend of $1.8 million from Cash Converters.

Executive Management Changes

On January 12, 2022, Jason A.

Kulas informed the Company's Board of Directors (the "Board") that he was resigning from his position as Chief Executive Officer to accept a position at another company.

The same day, the Board appointed Lachlan P.

Given and John Blair Powell, Jr.

as co-Interim Chief Executive Officers, effective immediately.

On March 3, 2022, Lachlan P.

Given was appointed Chief Executive Officer (principal executive officer) and John Blair Powell, Jr.

was appointed Chief Operating Officer (principal operating officer).

Given and Mr.

Powell are executive officers of the Company and have extensive experience with the Company and its business.

A description of their respective backgrounds and experiences can be found in "Part III, Item 10 — Directors, Executive Officers and Corporate Governance — Executive Officers" of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2021.

Powell had been serving as Co-Interim Chief Executive Officers (co-principal executive officers) since January 12, 2022.

A description of Mr.

Given's and Mr.

Powell's respective backgrounds and experiences can be found in "Part III, Item 10 — Directors, Officers and Corporate Governance — Executive Officers" of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2021.

Results of Operations

Non-GAAP Constant Currency Financial Information

Non-GAAP Constant Currency and Same Store Financial Information

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") and "same store" basis.

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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, 2021 and December 31, 2020 were as follows:

dollars as of and for the three and six months ended March 31, 2022 and March 31, 2021 were as follows:

Three Months Ended

Six Months Ended

2022 2021 2022 2021 2022 2021

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Operating Results

We manage our business and report our financial results in three reportable operating segments;

We manage our business and report our financial results in three reportable segments;

Pawn — Represents all pawn activities in the United States;

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• Other Investments — Represents our equity interest in the net income of Cash Converters International and Rich Data Corporation, along with our investment in Founders.

See Note 11 - Segment Information for information regarding changes in reportable segments.

Store Data by Segment

Three Months Ended December 31, 2021

Store Count by Segment

Three Months Ended March 31, 2022

Pawn Latin America Pawn Consolidated

As of September 30, 2021

516 632 1,148

As of December 31, 2021 516 633 1,149

New locations opened — 3 3

As of March 31, 2022

516 636 1,152

Three Months Ended March 31, 2021

Pawn Latin America Pawn Consolidated

As of December 31, 2020 505 500 1,005

New locations opened — 6 6

As of March 31, 2021

505 506 1,011

Three Months Ended December 31, 2020

Six Months Ended March 31, 2022

Pawn Latin America Pawn Consolidated

As of September 30, 2021 516 632 1,148

New locations opened — 4 4

As of March 31, 2022

516 636 1,152

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 December 31, 2020

As of March 31, 2021

505 506 1,011

Three Months Ended December 31, 2021 vs.

Three Months Ended December 31, 2020

Three Months Ended March 31, 2022 vs.

Three Months Ended March 31, 2021

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) 2022 2021

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Depreciation and amortization 2,625 2,636 —%

Loss on sale or disposal of assets and other — 27 (100)%

Segment contribution $ 33,812 $ 25,760 31%

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

PLO increased 40% to $133.5 million due to increased loan demand reflecting a recovery towards pre-COVID levels.

Pawn service charges increased 19% as a result of higher average PLO for the quarter.

Merchandise sales increased 24% compared to the prior year quarter.

Merchandise sales gross profit increased 29% to $44.2 million as well as a 100 bps improvement in merchandise sales gross profit margin, reflecting a continued focus on improving retailing and lower levels of aged general merchandise inventory.

Store expenses increased 4% primarily due to rising labor costs resulting from growing transaction volume and store count.

Merchandise sales increased 7% due to our improved retail strategy.

This increase was offset by a 1% decrease in merchandise sales gross profit to $41.5 million, as well as a 400 bps decrease in merchandise sales gross profit margin, reflecting a return to more normalized margins.

Store expenses increased 1% primarily due to increased store count.

Segment contribution increased $8.1 million or 31%, due to the changes in net revenues and store expenses described above.

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

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

Three Months Ended December 31,

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

Three Months Ended March 31,

(in thousands) 2022 (GAAP)

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Gross margin on jewelry scrapping sales 9 % 10 % (100)bps 9 % (100)bps

Other revenues, net 240 7 3,329% 242 3,357%

Net revenues 27,970 21,521 30% 28,107 31%

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Segment operating contribution 4,828 2,236 116% 4,807 115%

Other segment income (311) (1,320) (76)% (384) (71)%

Other segment expense (income) 70 (385) (118)% (66) (83)%

Segment contribution $ 4,758 $ 2,621 82% $ 4,873 86%

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Store Expenses (1)% (1)%

In the current quarter, we opened one de novo store, bringing total segment store-count to 633.

In the current quarter, we opened three de novo stores, bringing total segment store-count to 636.

PLO increased 34% to $40.1 million (31% on constant currency basis).

On a same store basis, PLO increased 18% (20% on a constant currency basis).

PSC increased 47% in the first quarter to $19.5 million (up 47% to $19.6 million on a constant currency basis) as a result of higher average PLO for the quarter.

Merchandise sales increased 40% (41% on a constant currency basis) and 15% on a same store basis (16% on a constant currency basis).

On a same store basis, PLO increased 15% (13% on a constant currency basis) due to increased loan demand reflecting a recovery towards pre-COVID levels.

PSC increased 29% in the current quarter to $17.9 million (up 30% to $18.0 million on a constant currency basis) as a result of higher average PLO for the quarter.

Merchandise sales increased 57% (57% on a constant currency basis) and 31% on a same store basis (31% on a constant currency basis) reflecting a renewed focus on customer engagement.

Offsetting the sales increase, merchandise sales gross profit margin decreased from 35% to 29% reflecting a return to more normalized margins.

Overall, merchandise sales gross profit increased 33% to $9.9 million (34% to $9.9 million on a constant currency basis).

Store expenses increased $4.9 million or 28% (29% on a constant currency basis) primarily due to growth in store count and rising labor costs resulting from growing transaction volume.

On a same-store basis, store expenses increased by $0.9 million or 5% ($1.0 million or 6% on a constant currency basis).

Store expenses increased $3.8 million or 21% (22% on a constant currency basis) primarily due to growth in store count.

On a same-store basis, store expenses decreased by $0.2 million or 1% (1% on a constant currency basis).

Segment contribution increased $2.1 million, or 82%, to $4.8 million ($2.3 million or 86% on a constant currency basis), due to the changes in net revenues and store expenses described above.

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

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

Three Months Ended December 31,

dollars from its functional currency of primarily Australian dollars:

Three Months Ended March 31,

(in thousands) 2022 2021

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Segment operating expenses:

Equity in net income of unconsolidated affiliates (1,138) (516) 121%

Segment operating contribution 1,181 591 100%

Other segment (income) (12) (210) (94)%

Segment contribution $ 1,193 $ 801 49%

Segment contribution was $1.2 million, an increase of $0.4 million from the prior-year quarter primarily due to the increase in equity income for our unconsolidated affiliates.

Equity in net loss (income) of unconsolidated affiliates 1,439 (1,250) (215)%

Segment operating (loss) contribution (1,410) 1,424 (199)%

Other segment expense 8 9 (11)%

Segment (loss) contribution $ (1,418) $ 1,415 (200)%

Segment loss was $1.4 million, a decrease of $2.8 million due to the decrease in equity income for our unconsolidated affiliates.

The equity in net loss in the current quarter was primarily due to our equity pickup of Cash Converters' net loss, which included an impairment, primarily of its ROU leased assets, that was attributed to COVID-19.

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

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Depreciation and amortization 2,934 3,660 (20)%

Gain on sale or disposal of assets and other — 52 (100)%

(Gain) loss on sale or disposal of assets and other (688) 11 *

Interest expense 2,527 5,518 (54)%

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Net income $ 14,887 $ 5,330 179%

Segment contribution increased $15.6 million or 59% over the prior year quarter primarily due to the improved operating results of all three segments above.

General and administrative expenses increased $3.0 million, or 24% primarily driven by the timing of fiscal year 2021 expenses.

* Represents a percentage computation that is not mathematically meaningful.

Segment contribution increased $7.4 million or 25% over the prior year quarter primarily due to the improved operating results of the segments above.

General and administrative expenses decreased $1.5 million or 11%, primarily driven by the reversal of incentive compensation for the departing CEO.

Interest expense decreased $3.0 million primarily driven by the ASU 2020-06 accounting policy change which no longer requires debt discount be included on our balance sheet effective October 1, 2021.

The policy change eliminates the non-cash interest amortization of that debt discount.

See Note 1 to the consolidated financials for further discussion of this recently adopted accounting policy.

Organization And Summary Of Significant Accounting Policies to the consolidated financials for further discussion of this recently adopted accounting policy.

Income tax expense increased $3.8 million primarily due to an increase in income before income taxes of $13.3 million this quarter compared to the prior year same quarter.

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Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items.

Six Months Ended March 31, 2022 vs.

Six Months Ended March 31, 2021

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) 2022 2021

Net revenues:

Pawn service charges $ 115,329 $ 99,797 16%

Merchandise sales 202,142 176,080 15%

Merchandise sales gross profit 85,697 76,209 12%

Gross margin on merchandise sales 42 % 43 % (100)bps

Jewelry scrapping sales 8,460 7,585 12%

Jewelry scrapping sales gross profit 1,687 1,592 6%

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

Other revenues 46 51 (10)%

Net revenues 202,759 177,649 14%

Segment operating expenses:

Store expenses 129,181 125,749 3%

Depreciation and amortization 5,295 5,372 (1)%

Segment operating contribution 68,283 46,528 47%

Other segment expense — 27 *

Segment contribution $ 68,283 $ 46,501 47%

Average monthly ending pawn loan balance per store (a) $ 270 $ 224 21%

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

Pawn loan redemption rate 84 % 86 % (200)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 increased 16% as a result of higher average PLO for the year.

Merchandise sales increased 15% compared to the prior year.

Offsetting the sales increase, merchandise sales gross profit margin decreased 100 bps reflecting a return to more normalized margins.

Store expenses increased by 3% due to increased store count and increased labor expenses resulting from growing transaction volume.

Segment contribution increased $21.8 million primarily due to the changes in net revenues 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 Constant Currency and Same Store Financial Information” above.

Six Months Ended March 31,

(in thousands) 2022 (GAAP)

Change (GAAP) 2022 (Constant Currency)

Change (Constant Currency)

Net revenues:

Pawn service charges $ 37,379 $ 27,128 38% $ 37,544 38%

Merchandise sales 69,134 46,928 47% 69,716 49%

Merchandise sales gross profit 20,222 16,466 23% 20,390 24%

Gross margin on merchandise sales 29 % 35 % (600)bps 29 % (600)bps

Jewelry scrapping sales 4,174 5,249 (20)% 4,187 (20)%

Jewelry scrapping sales gross profit 367 639 (43)% 369 (42)%

Gross margin on jewelry scrapping sales 9 % 12 % (300)bps 9 % (300)bps

Other revenues, net 240 7 * 243 *

Net revenues 58,208 44,240 32% 58,546 32%

Segment operating expenses:

Store expenses 43,333 34,709 25% 43,646 26%

Depreciation and amortization 3,871 3,653 6% 3,898 7%

Segment operating contribution 11,004 5,878 87% 11,002 87%

Other segment income (a) (241) (1,705) (86)% (449) (74)%

Segment contribution $ 11,245 $ 7,583 48% $ 11,451 51%

Average monthly ending pawn loan balance per store (a) $ 60 $ 55 9% $ 60 9%

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

Pawn loan redemption rate (b) 81 % 82 % (100)bps 81 % (100)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.

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

(Constant Currency)

Same Store data:

Merchandise Sales 22% 23%

Merchandise Sales Gross Profit 2% 3%

Store Expenses 3% 3%

During the six months ended March 31, 2022, our Latin America pawn segment opened four de novo stores.

PSC increased 38% to $37.4 million (38% to $37.5 million on a constant currency basis) as a result of higher average PLO for the year.

Merchandise sales increased 47% (49% on a constant currency basis) and 22% on a same store basis (23% on a constant currency basis).

Offsetting the sales increase, merchandise sales gross profit margin decreased 600 bps from 35% to 29% (29% on a constant currency basis) reflecting a return to more normalized margins.

Store expenses increased by 25% (26% on a constant currency basis) primarily due to growth in store count.

On a same-store basis, store expenses increased by $0.9 million or 3% (3% on a constant currency basis) due to rising labor costs resulting from growing transaction volume.

Segment contribution increased $3.7 million, or 48%, to $11.2 million.

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

Other Investments

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

dollars from its functional currency of primarily Australian dollars:

Six Months Ended March 31,

(in thousands) 2022 2021

Net revenues:

Consumer loan fees, interest and other 72 249 (71)%

Net revenues 72 249 (71)%

Segment operating expenses:

Equity in net loss (income) of unconsolidated affiliates 301 (1,766) (117)%

Segment operating (loss) contribution (229) 2,015 (111)%

Other segment income (4) (201) (98)%

Segment (loss) contribution $ (225) $ 2,216 (110)%

Segment loss was $0.2 million, a decrease of $2.4 million from the prior-year six months ended March 31, 2021, primarily due to the decrease in equity income for our unconsolidated affiliates.

The equity in net loss in the current six months ended March 31, 2022 was primarily due to our equity pickup of Cash Converters' net results which included an impairment, primarily of its ROU leased assets, that was attributed to COVID-19.

Six Months Ended March 31,

Percentage Change

(in thousands) 2022 2021

Segment contribution $ 79,303 $ 56,300 41%

Corporate expenses (income):

General and administrative 27,772 26,281 6%

Depreciation and amortization 5,858 6,636 (12)%

(Gain) loss on sale or disposal of assets (688) 63 *

Interest expense 4,958 10,973 (55)%

Interest income (122) (71) 72%

Other expense 55 117 (53)%

Income from continuing operations before income taxes 41,470 12,301 237%

Income tax expense 10,862 2,672 307%

Net income $ 30,608 $ 9,629 218%

* Represents a percentage computation that is not mathematically meaningful.

Segment contribution increased $23.0 million or 41% over the prior year 6 months ended March 31, 2021, primarily due to the improved operating results of the segments above.

Interest expense decreased $6.0 million primarily driven by the ASU 2020-06 accounting policy change which no longer requires debt discount be included on our balance sheet effective October 1, 2021.

The policy change eliminates the non-cash interest amortization of that debt discount.

Organization And Summary Of Significant Accounting Policies to the consolidated financials for further discussion of this recently adopted accounting policy.

Income tax expense increased $8.2 million primarily due to an increase in income before income taxes of $29.2 million this six months ended March 31, 2022 compared to the prior year same 6 months period ended.

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.

See Annual Report on Form 10-K for the year ended September 30, 2021 Note 11:

Income Taxes of Notes to Consolidated Financial Statements included in “Part II, Item 8 — Financial Statements and Supplemental Data” for quantification of these items.

Liquidity and Capital Resources

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Cash and Cash Equivalents

Our cash and equivalents balance was $233.3 million at December 31, 2021 compare d to $253.7 million at September 30, 2021.

At December 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 $255.0 million at March 31, 2022 compare d to $253.7 million at September 30, 2021.

At March 31, 2022, 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) 2022 2021

Cash flows provided by (used in) operating activities $ 9,018 $ (4,513) (300)%

Cash flows used in investing activities (30,603) (15,062) 103%

Cash flows provided by operating activities $ 30,575 $ 18,721 63%

Cash flows (used in) provided by investing activities (31,887) 9,080 (451)%

Cash flows used in financing activities (792) (1,710) (54)%

Effect of exchange rate changes on cash, cash equivalents and restricted cash 2,157 5,000 (57)%

Net decrease in cash, cash equivalents and restricted cash $ (21,658) $ (14,092) 54%

Net increase in cash, cash equivalents and restricted cash $ 53 $ 31,091 (100)%

The increase in cash flows provided by operating activities year-over-year was primarily due to a $21.0 million increase in net income.

The $15.5 million increase in cash flows used in investing activities year-over-year was primarily due to $16.5 million in outgoing cash flows used to fund investments and an increase of $5.1 million in net pawn lending, offset by an $11.3 million increase in the sale of forfeited collateral.

Of the $16.5 million used to fund investments, $15.0 million was invested in Founders, as discussed in Note 6 in Part I, Item 1:

Notes to Interim Condensed Consolidated Financial Statements.

The net effect of these changes was a $56.5 million decrease in cash on hand during the current year, resulting in a $242.0 million ending cash and restricted cash balance.

The $41.0 million increase in cash flows used in investing activities year-over-year was primarily due to $16.5 million in outgoing cash flows used to fund other investments and an increase of $38.0 million in net pawn lending, offset by an $20.3 million increase in the sale of forfeited collateral.

Of the $16.5 million used to fund other investments, $15.0 million was invested in Founders, as discussed in Note 6:

Strategic Investments in Part I, Item 1 - Notes to Interim Condensed Consolidated Financial Statements.

The net effect of these changes was a $0.1 million increase in cash on hand during the current year to date period, resulting in a $263.7 million ending cash and restricted cash balance.

Sources and Uses of Cash

In December 2019, our Board of Directors authorized a stock repurchase program that will allow us to repurchase up to $60 million of our Class A Non-voting Common Stock over three years.

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 December 31, 2021, 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.

On May 3, 2022, our Board of Directors approved a new share repurchase program, which replaced the previous program that was suspended in March 2020.

Under the new program, the Company is authorized to repurchase up to $50 million of our Class A Non-Voting common shares over the next three years.

Execution of the program will be responsive to fluctuating market conditions and valuations, liquidity needs and the expected return on investment compared to other opportunities.

Under the stock repurchase program, we may purchase Class A Non-Voting common stock from time to time at management’s discretion in accordance with applicable securities laws, including through open market transactions, block or privately negotiated transactions, or any combination thereof.

In addition, we may purchase shares pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934.

The amount and timing of purchases will be dependent on a variety of factors, including stock price, trading volume, general market conditions, legal and regulatory requirements, general business conditions, the level of cash flows, 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 31, 2021, there were no stock repurchases.

Under the previous share repurchase program authorized in December 2019, the Company had repurchased and retired 943,149 shares of our Class A Common Stock for $5.2 million.

During the six months ended March 31, 2022, 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 2022.

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Given the current uncertainty related to the COVID-19 pandemic, we may adjust our capital or other expenditures.

Depending on the level of acquisition activity and other factors, our ability to repay our longer term debt obligations, including the convertible

debt maturing in 2024 and 2025, may require us to refinance these obligations through the issuance of new debt securities, equity securities, convertible securities or through new credit facilities.

Depending on the level of acquisition activity and other factors, our ability to repay our longer term debt obligations, including the convertible debt maturing in 2024 and 2025, may require us to refinance these obligations through the issuance of new debt securities, equity securities, convertible securities or through new credit facilities.

Contractual Obligations

In "Part II, Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for the year ended September 30, 202 1, we reported that we had $602.6 million in total contractual obligations as of September 30, 2021.

There have been no material changes to this total obligation since September 30, 2021, other than changes as the result of adoption of accounting standards as further discussed in Note 1 of Notes to Interim Condensed Consolidated Financial Statements included in "Part I, Item 1 — Financial Statements."

There have been no material changes to this total obligation since September 30, 2021, other than changes as the result of adoption of accounting standards as further discussed in Note 1:

Organization And Summary Of Significant Accounting Policies of Notes to Interim Condensed Consolidated Financial Statements included in "Part I, Item 1 — Financial Statements."

We are responsible for the maintenance, property taxes and insurance at most of our locations.

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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