What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-02-05 compared with 2024-07-31 · 60 added, 200 removed, 210 unchanged (55% of the section changed)

6 unchanged sentences

See “ Part I, Item 1A — Risk Factors ” of our Annual Report on Form 10-K for the year ended September 30, 2024, as supplemented by the information set forth in “Part I, Item 3 — Quantitative and Qualitative Disclosures about Market Risk” and “Part II, Item 1A — Risk Factors” of this Report, for a discussion of certain risks, uncertainties and assumptions associated with these statements.

Business Development

On September 11, 2024, the Company announced entry into an acquisition agreement with Presta Dinero, S.A.

for the purchase of 53 pawn stores in Mexico.

While at the time we expected to complete the transaction by October 31, 2024, the transaction has not yet closed and the parties remain in discussion.

Business Overview

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We are focused on three strategic pillars:

Strengthen the Core Relentless focus on superior execution and operational excellence in our core pawn business

Strengthen the Core Relentless focus on superior execution and operational excellence in our pawn business

Cost Efficiency and Simplification Shape a culture of cost efficiency through ongoing focus on simplification and optimization

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We earn pawn service charges (“PSC”) for those cash advances, and the PSC rate varies by state and transaction size.

At the time of the transaction, we take possession of the pawned collateral, which consists of tangible personal property, generally jewelry, consumer electronics, tools, sporting goods or musical instruments.

If the customer chooses to redeem their pawn, they will repay the amount advanced plus any accrued PSC.

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Consequently, the success of our pawn business is largely dependent on our ability to accurately assess the probability of pawn redemption and the estimated resale or scrap value of the collateralized personal property.

Our ability to offer quality second-hand goods at prices significantly lower than original retail prices attracts value-conscious customers.

Our ability to offer quality pre-owned goods at prices significantly lower than original retail prices attracts value-conscious customers.

The gross profit on sales of inventory depends primarily on our assessment of the estimated resale or scrap value at the time the property is either accepted as pawn collateral or purchased and our ability to sell that merchandise in a timely manner.

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We anticipated this change would impact pawn loan redemptions annually in May and June;

however, in 2024, the demand for pawn loans in Mexico exceeded any downward pressure related to profit sharing payments.

however, in fiscal 2024, the demand for pawn loans in Mexico exceeded any downward pressure related to profit sharing payments.

As a net effect of these and other factors and excluding discrete charges, our consolidated income before tax is generally highest in our first fiscal quarter (October through December) and lowest in our third fiscal quarter (April through June).

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

The following chart presents sources of gross profit, including PSC, merchandise sales gross profit (“Merchandise sales GP”) and jewelry scrapping gross profit (“Jewelry Scrapping GP”) for the three and nine months ended June 30, 2024 and 2023:

The following chart presents sources of gross profit by geographic disbursement for the three and nine months ended June 30, 2024 and 2023:

The following chart presents sources of gross profit by geographic disbursement for the three months ended December 31, 2024 and 2023:

Results of Operations

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We analyze results on a same-store basis (which is defined as stores open during the entirety of the comparable periods) to better understand existing store performance without the influence of increases or decreases resulting solely from changes in store count.

We believe presentation of constant currency and same-store 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.

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

We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements.

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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 nine months ended June 30, 2024 and 2023 were as follows:

dollars as of and for the three months ended December 31, 2024 and 2023 were as follows:

Three Months Ended

Nine Months Ended

2024 2023 2024 2023

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• Latin America Pawn — Represents all pawn activities in Mexico and other parts of Latin America;

• Other Investments — Represents our equity interest in the net income of Cash Converters along with our investment in Rich Data Corporation (“RDC”) and our investment in and notes receivable from Founders.

• Other Investments — Represents our equity interest in Cash Converters and our investment in and notes receivable from Founders.

Store Count by Segment

Three Months Ended June 30, 2024

Pawn Latin America Pawn Consolidated

As of March 31, 2024

535 711 1,246

New locations opened 1 6 7

Locations acquired 5 — 5

As of June 30, 2024

541 717 1,258

Three Months Ended June 30, 2023

Three Months Ended December 31, 2024

Pawn Latin America Pawn Consolidated

As of March 31, 2023

As of September 30, 2024

542 737 1,279

New locations opened — 4 4

As of June 30, 2023

As of December 31, 2024

542 741 1,283

Nine Months Ended June 30, 2024

Three Months Ended December 31, 2023

Pawn Latin America Pawn Consolidated

As of September 30, 2023

New locations opened 1 20 21

Locations acquired 12 — 12

Locations combined or closed (1) (5) (6)

As of June 30, 2024

529 702 1,231

Nine Months Ended June 30, 2023

Pawn Latin America Pawn Consolidated

As of September 30, 2022 515 660 1,175

New locations opened — 5 5

Locations acquired 1 — 1

Locations combined or closed — (1) (1)

As of June 30, 2023

As of December 31, 2023

530 707 1,237

Three Months Ended June 30, 2024 vs.

Three Months Ended June 30, 2023

Three Months Ended December 31, 2024 vs.

Three Months Ended December 31, 2023

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 June 30,

Three Months Ended December 31,

(in thousands) 2024 2023

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Jewelry scrapping sales gross profit 3,530 1,531 131%

Gross margin on jewelry scrapping sales 14 % 15 % (100)bps

Gross margin on jewelry scrapping sales 23 % 12 % *

Other revenues 27 37 (27)%

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Depreciation and amortization 2,717 2,624 4%

Gain on sale or disposal of assets and other (2) — *

Loss on sale or disposal of assets and other — 26 (100)%

Segment operating contribution $ 52,871 $ 47,540 11%

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

PLO ended the quarter at $199.3 million, up 11% or 10% on a same-store basis.

Total revenues was up 8% and gross profit was up 9%, reflecting increased PSC and higher merchandise sales.

PLO ended the quarter at $220.2 million, up 15% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance.

Total revenues increased 7% and gross profit increased 9%, reflecting higher PSC and merchandise sales.

PSC increased 11% as a result of higher average PLO.

Merchandise sales increased 6%, and gross margin decreased to 38% from 39%.

Aged general merchandise, which is inventory over one year old, increased to 5.0% to $2.0 million of total general merchandise inventory.

Excluding luxury handbags in our three Max Pawn stores in Las Vegas, aged general merchandise remains under 1%.

Net inventory increased 6%, as expected with the growth in PLO.

Inventory turnover remained flat at 2.6x.

Store expenses increased 8% and 6% on a same-store basis, primarily due to increased labor in-line with store activity and to a lesser extent, expenses related to our loyalty program.

Merchandise sales increased 3%, and gross margin was flat at 37%.

Aged general merchandise, which is inventory over one year old, increased to 2.6%, or $1.2 million of total general merchandise inventory.

Excluding our three Max Pawn luxury stores in Las Vegas, aged general merchandise was 1%.

Net inventory increased 17%, in line with the growth in PLO.

Inventory turnover decreased to 2.5x, from 2.7x .

Store expenses increased 8% (5% on a same-store basis), primarily due to labor costs (including higher health benefits) supporting more store activity, offset by a decrease in expenses related to our loyalty program.

Segment contribution increased 11% to $52.9 million, due to the changes noted above.

During the quarter, store count increased by six, due to the acquisition of five stores and opening of one de novo store.

During the quarter, segment store count remained at 542.

Latin America Pawn

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

Three Months Ended June 30,

Three Months Ended December 31,

(in thousands) 2024 (GAAP)

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Depreciation and amortization 2,046 2,339 (13)% 2,270 (3)%

Other income — (2,632) (100)% — (100)%

Loss (gain) on sale or disposal of assets and other 8 (196) (104)% 9 (105)%

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Jewelry as a % of PLO 40 % 35 % 500bps 38 % 300bps

* Represents a percentage computation that is not mathematically meaningful.

(a) Balance includes pawn loans and inventory.

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On a same-store basis, PLO increased 2% (17% on a constant currency basis) due to improved operational performance and increased loan demand.

Total revenues was up 15% (13% on constant currency basis), and gross profit increased 21% (19% on a constant currency basis), reflecting increased PSC, higher merchandise sales and improved merchandise sales gross profit.

PSC increased 22% (19% on a constant currency basis) as a result of higher average PLO.

Merchandise sales gross margin increased to 32% from 30%.

Aged general merchandise was less than 1% of total merchandise inventory.

Net inventory increased 25% (32% on a constant currency basis).

Inventory turnover decreased to 3.0x, from 3.4x.

Store expenses increased 18% (15% on a constant currency basis) and 14% (12% on a constant currency basis) on a same-store basis, primarily due to increased labor, in line with store activity and to a lesser extent, rent.

Segment contribution increased 6% (5% on a constant currency basis) to $10.3 million, due to the changes noted above, in addition to the impact of the prior year reversal of contingent consideration liability in connection with a previously completed acquisition, which was recorded to “Other income.”

During the quarter, store count increased by six de novo stores.

Total revenues were up 7% (18% on constant currency basis), and gross profit increased 4% (14% on a constant currency basis), mainly due to increased PSC and higher merchandise sales.

PSC increased to $29.2 million, up 7% (17% on a constant currency basis) as a result of higher average PLO.

Merchandise sales increased 7% (19% on constant currency basis) and merchandise sales gross margin decreased to 30% from 32%.

Aged general merchandise decreased to 1.4% from 1.6% of total general merchandise inventory.

Net inventory increased 35% (57% on a constant currency basis) due to increase in PLO and decrease in inventory turnover to 3.1x, from 3.8x.

Store expenses were flat (11% increase on a constant currency basis) and on a same-store basis decreased 2% (9% increase on a constant currency basis), primarily due to labor and rent.

Segment contribution increased 14% to $11.6 million (24% on a constant currency basis), due to the changes noted above.

During the quarter, segment store count increased by four de novo stores to 741.

Other Investments

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dollars from its functional currency of primarily Australian dollars:

Three Months Ended June 30,

Three Months Ended December 31,

(in thousands) 2024 2023

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Segment contribution $ 2,217 $ 1,729 28%

* Represents a percentage computation that is not mathematically meaningful.

Segment contribution was $2.0 million, an increase of $0.5 million primarily due to our interest income from our notes receivable investment in Founders offset by the decrease in our share of equity in income of Cash Converters.

Segment contribution was $2.2 million, an increase of $0.5 million primarily due to the increase in our share of equity in net income of Cash Converters.

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 June 30,

Three Months Ended December 31,

Percentage Change

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Depreciation and amortization 3,572 3,602 (1)%

Gain on sale or disposal of assets and other — (2) (100)%

Interest expense 3,147 3,440 (9)%

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Equity in net loss of unconsolidated affiliates 148 — 100%

Other (income) expense (19) 50 138%

Other expense (income) 1,060 (224) *

Income before income taxes 41,384 37,705 10%

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Pawn and Latin America Pawn segments above.

General and administrative expense increased $2.2 million or 12%, primarily due to labor, incentive compensation and, to a lesser extent, costs related to the implementation and ongoing support of Workday.

Income tax expense increased $2.0 million primarily due to an increase in the effective tax rate this quarter compared to the prior year.

In the prior year there was a benefit to the effective tax rate due to the reversal of contingent consideration liability in connection with a previously completed acquisition.

General and administrative expense increased $2.1 million or 13%, primarily due to labor (including incentive compensation) and, to a lesser extent, ongoing support costs related to Workday.

Income tax expense increased $1.1 million primarily due to an increase in income before taxes of $3.7 million, partially offset by an increase in the benefit for stock compensation for tax purposes in excess of the book expense.

The increase in the effective tax rate is due primarily to an increase in non-deductible items.

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

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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.

Nine Months Ended June 30, 2024 vs.

Nine Months Ended June 30, 2023

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:

Nine Months Ended June 30,

(in thousands) 2024 2023

Gross profit:

Pawn service charges $ 236,499 $ 208,045 14%

Merchandise sales 348,211 329,231 6%

Merchandise sales gross profit 129,475 125,533 3%

Gross margin on merchandise sales 37 % 38 % (100)bps

Jewelry scrapping sales 39,258 30,088 30%

Jewelry scrapping sales gross profit 5,293 4,221 25%

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

Other revenues 94 84 12%

Gross profit 371,361 337,883 10%

Segment operating expenses:

Store expenses 239,536 220,639 9%

Depreciation and amortization 7,548 7,820 (3)%

(Gain) loss on sale or disposal of assets and other (6) 84 107%

Segment operating contribution 124,283 109,340 14%

Other segment income — (2) (100)%

Segment contribution $ 124,283 $ 109,342 14%

Average monthly ending pawn loan balance per store (a) $ 352 $ 317 11%

Monthly average yield on pawn loans outstanding 14 % 14 % —bps

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

During the nine months ended June 30, 2024, net store count increased by 12 due to the acquisition of 12 stores, opening of one de novo store, and the consolidation of one store.

Pawn service charges increased 14% as a result of higher average PLO.

Merchandise sales increased 6%, and merchandise sale gross profit increased 3%, reflecting a 100bps decrease in gross margin.

Store expenses increased 9%, primarily due to increased labor in-line with store activity and to a lesser extent, expenses related to our loyalty program.

Segment contribution increased $14.9 million, or 14%, primarily due to the changes 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.

Nine Months Ended June 30,

(in thousands) 2024 (GAAP)

Change (GAAP) 2024 (Constant Currency)

Change (Constant Currency)

Gross profit:

Pawn service charges $ 84,943 $ 71,397 19% $ 80,401 13%

Merchandise sales 154,019 135,043 14% 144,538 7%

Merchandise sales gross profit 50,075 41,456 21% 46,938 13%

Gross margin on merchandise sales 33 % 31 % 200bps 32 % 100bps

Jewelry scrapping sales 3,933 4,552 (14)% 3,742 (18)%

Jewelry scrapping sales gross profit 419 (394) 206% 385 (198)%

Gross margin on jewelry scrapping sales 11 % (9) % * 10 % *

Other revenues, net 59 75 (21)% 55 (27)%

Gross profit 135,496 112,534 20% 127,779 14%

Segment operating expenses:

Store expenses 101,936 86,365 18% 95,812 11%

Depreciation and amortization 6,821 6,850 —% 6,385 (7)%

Other income — (5,097) (100)% — (100)%

Gain on sale or disposal of assets and other (240) (56) 329% (234) 318%

Segment operating contribution 26,979 24,472 10% 25,816 5%

Other segment income (1,629) (767) 112% (1,653) 116%

Segment contribution $ 28,608 $ 25,239 13% $ 27,469 9%

Average monthly ending pawn loan balance per store (a) $ 83 $ 72 15% $ 79 10%

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

(Constant Currency)

Same-Store data:

Merchandise Sales 11% 4%

Merchandise Sales Gross Profit 19% 11%

Store Expenses 14% 7%

During the nine months ended June 30, 2024, net store count increased by 15 due to the opening of twenty de novo stores and the consolidation of five stores.

PSC increased 19% to $84.9 million (13% to $80.4 million on a constant currency basis) as a result of higher average PLO.

Merchandise sales increased 14% (7% on a constant currency basis) and 11% on a same-store basis (4% on a constant currency basis).

Merchandise sales gross margin increased 200 bps to 33% from 31%.

Store expenses increased by 18% (11% on a constant currency basis) and 14% (7% on a constant currency basis) on a same-store basis, primarily due to increased labor, in line with store activity and to a lesser extent, rent.

Segment contribution increased $3.4 million, or 13% ($2.2 million, or 9%, on a constant currency basis), due to the changes noted above, in addition to the impact of the prior year reversal of contingent consideration liability in connection with a previously completed acquisition, which was recorded to “Other income.”

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:

Nine Months Ended June 30,

(in thousands) 2024 2023

Gross profit:

Consumer loan fees, interest and other $ 35 $ 47 (26)%

Gross profit 35 47 (26)%

Segment operating expenses:

Interest income (1,811) — *

Equity in net (income) loss of unconsolidated affiliates (4,278) 29,394 115%

Segment operating contribution (loss) 6,124 (29,347) 121%

Other segment loss 27 20 35%

Segment contribution (loss) $ 6,097 $ (29,367) 121%

* Represents a percentage computation that is not mathematically meaningful.

Segment income was $6.1 million, an increase of $35.5 million from the prior-year nine months ended June 30, 2023, primarily due to our share of the prior year net loss from Cash Converters related to their non-cash goodwill impairment charge.

Nine Months Ended June 30,

Percentage Change

(in thousands) 2024 2023

Segment contribution $ 158,988 $ 105,214 51%

Corporate expenses (income):

General and administrative 54,869 48,964 12%

Depreciation and amortization 10,573 9,307 14%

Gain on sale or disposal of assets 97 — *

Other income (765) — *

Interest expense 10,381 12,994 (20)%

Interest income (5,243) (4,421) 19%

Equity in net loss of unconsolidated affiliates 143 — *

Other income (423) (138) 207%

Income before income taxes 89,356 38,508 132%

Income tax expense 21,457 10,298 108%

Net income $ 67,899 $ 28,210 141%

* Represents a percentage computation that is not mathematically meaningful.

Segment contribution increased $53.8 million or 51% over the prior year nine months ended June 30, 2023, primarily due to our share of the net loss from Cash Converters related to their non-cash goodwill impairment charge during the prior year and the improved operating results of the segments above.

General and administrative expenses increased $5.9 million or 12%, primarily due to labor, incentive compensation and, to a lesser extent, costs related to the implementation and ongoing support of Workday.

Interest expense decreased $2.6 million, primarily due to the loss on extinguishment of debt in the prior year.

In December 2022, the Company repurchased approximately $109.4 million aggregate principal amount of 2.875% Convertible Senior Notes Due 2024 for approximately $117.5 million plus accrued interest and approximately $69.1 million aggregate principal amount of 2.375% Convertible Senior Notes Due 2025 for approximately $62.9 million plus accrued interest and recorded a $3.5 million loss on extinguishment of debt.

Interest income increased $0.8 million, due primarily to our treasury management with increased market interest rates.

Income tax expense increased $11.2 million, primarily due to an increase in income before income taxes of $50.8 million for the nine months ended June 30, 2024 compared to the same prior year nine month period due to our share of the net loss from Cash Converters in the prior year quarter, the non-deductible loss on the convertible debt refinancing during the first quarter of 2023, and an increase in the effective tax rate this quarter compared to the prior year.

In the prior year there was a benefit to the effective tax rate due to the reversal of contingent consideration liability in connection with a previously completed acquisition.

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 the foreign rate differential.

See Annual Report on Form 10-K for the year ended September 30, 2023, 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

Cash and Cash Equivalents

Our cash and equivalents balance was $218.0 million at June 30, 2024 compared to $220.6 million at September 30, 2023.

At June 30, 2024, 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 cash equivalents balance was $174.5 million at December 31, 2024 compared to $170.5 million at September 30, 2024.

At December 31, 2024, 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:

Nine Months Ended

Three Months Ended

(in thousands) 2024 2023

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Net cash used in investing activities (14,040) (16,864) (17)%

Net cash (used in) provided by financing activities (12,648) 26,972 (147)%

Net cash used in financing activities (7,102) (6,392) 11%

Effect of exchange rate changes on cash, cash equivalents and restricted cash (764) (207) 269%

Net (decrease) increase in cash, cash equivalents and restricted cash $ (1,726) $ 32,154 (105)%

The decrease in cash flows provided by operating activities year-over-year was primarily due to changes in working capital primarily related to the timing of payments of accounts payable and income taxes, offset by an increase in net income (when considering adjustments for non-cash items affecting net income).

The $11.3 million decrease in cash flows used in investing activities year-over-year was primarily due to a $29.6 million decrease in cash flows used to fund acquisitions, strategic investments and capital expenditures and a $21.2 million increase in cash inflows from the sale of forfeited collateral, offset by an increase of $43.0 million in net pawn lending outflows.

The $39.6 million decrease in cash flows provided by financing activities was primarily related to the December 2022 financing of the 2029 Convertible Notes, in which we issued $230.0 million principal amount of 3.750% Convertible Senior Notes Due 2029 offset by the extinguishment of approximately $109.4 million aggregate principal amount of our 2024 Convertible Notes for approximately $117.5 million plus accrued interest and approximately $69.1 million aggregate principal amount of our 2025 Convertible Notes for approximately $62.9 million plus accrued interest.

In addition, we used approximately $5.0 million of the net proceeds from the 2029 Convertible Notes offering to repurchase 578,703 shares of our Class A common stock from purchasers of the notes in privately negotiated transactions.

The net effect of these changes was an $1.7 million decrease in cash on hand during the current year to date period, resulting in a $227.2 million ending cash and restricted cash balance.

Net increase (decrease) in cash, cash equivalents and restricted cash $ 4,085 $ (1,982) 306%

The increase in cash flows provided by operating activities year-over-year was primarily due an increase in net income as well as changes in working capital primarily related to the timing of payments of prepaid expenses, accounts payable, inventory, customer layaway deposits and income taxes.

The $2.8 million decrease in cash flows used in investing activities year-over-year was primarily due to a $17.3 million decrease in net cash flows used related to strategic investments, capital expenditures and other, a $3.6 million increase in cash inflows from the sale of forfeited collateral, partially offset by an $18.1 million increase in net pawn lending outflows.

The $0.7 million increase in cash flows used in financing activities was primarily related to taxes paid related to net share settlement of equity awards.

The net effect of these changes was a $4.1 million increase in cash on hand during the current year to date period, resulting in a $183.9 million ending cash and restricted cash balance.

Sources and Uses of Cash

In December 2022, we issued $230.0 million aggregate principal amount of 2029 Convertible Notes.

In conjunction with the issuance of the 2029 Convertible Notes, we extinguished approximately $109.4 million aggregate principal amount of our 2024 Convertible Notes for approximately $117.5 million plus accrued interest and approximately $69.1 million aggregate principal amount of our 2025 Convertible Notes for approximately $62.9 million plus accrued interest.

See Note 7 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.” The shares repurchased in conjunction with the transactions discussed above were authorized separately from, and not considered part of, the publicly announced share repurchase program referred to below.

On May 3, 2022, our Board authorized the repurchase of up to $50 million of our Class A Common Stock over three years.

As of June 30, 2024, we have repurchased 2,572,794 shares of our Class A Common Stock under the program for $23.0 million.

As of December 31, 2024, we have repurchased 3,096,011 shares of our Class A Common Stock under the program for $29.0 million.

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.

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See Note 8 of Notes to Condensed Consolidated Financial Statements included in “Part I, Item 1 — Financial Statements.”

On July 1, 2024, the 2024 Convertible Notes matured and the remaining $34.4 million aggregate principal amount outstanding plus accrued interest was repaid using cash on hand.

We anticipate that cash flows from operations and cash on hand will be adequate to fund ongoing operations, current debt service requirements, tax payments, any future stock repurchases, strategic investments, our contractual obligations, planned de novo store growth, capital expenditures and working capital requirements through the next twelve months.

We continue to explore acquisition opportunities, both large and small, and may choose to pursue additional debt, equity or equity-linked financings in the future should the need arise.

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 2025 and 2029, 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 May 2025 and 2029, 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

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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