EZCORP Inc (EZPW) 2024 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the EZCORP third fiscal quarter 2024 earnings call. At this time all participants are in a listen-only mode. [Operator Instructions] As a reminder, this call may be recorded.

早安，女士們先生們。歡迎參加 EZCORP 2024 年第三財季財報電話會議。此時所有參與者都處於只聽模式。[操作員說明] 溫馨提示，此通話可能會被錄音。

I’d now like to turn the conference over to Sean Mansouri, the company’s Investor Relations adviser with Elevate IR. Please go ahead, Sean.

我現在想把會議交給 Sean Mansouri，他是該公司 Elevate IR 的投資者關係顧問。請繼續，肖恩。

Thank you, and good morning, everyone. During our prepared remarks, we will refer to slides, which are available for viewing or download from our website at investors.ezcorp.com.

謝謝大家，大家早安。在我們準備好的演講中，我們將參考幻燈片，這些幻燈片可以從我們的網站 Investors.ezcorp.com 上查看或下載。

Before we begin, I’d like to remind everyone that this conference call as well as the presentation slides contain certain forward-looking statements regarding the company’s expected operating and financial performance for future periods. These statements are based on the company’s current expectations. Actual results for future periods may differ materially from those expressed due to a number of risks or other factors that are discussed in our annual, quarterly and other reports filed with the Securities and Exchange Commission. As noted in our presentation materials, and unless otherwise identified, results are presented on an adjusted basis to remove the effect of foreign currency fluctuations and other discrete items.

在開始之前，我想提醒大家，本次電話會議以及簡報投影片包含有關公司未來時期預期營運和財務表現的某些前瞻性陳述。這些陳述是基於公司目前的預期。由於我們向美國證券交易委員會提交的年度、季度和其他報告中討論的許多風險或其他因素，未來時期的實際結果可能與所表達的結果有重大差異。正如我們的演示材料中所指出的，除非另有說明，否則結果是在調整後的基礎上呈現的，以消除外幣波動和其他離散項目的影響。

Joining us on the call today are EZCORP’s Chief Executive Officer, Lachie Given; and Tim Jugmans, Chief Financial Officer.

今天加入我們電話會議的有 EZCORP 執行長 Lachie Give；和財務長蒂姆·賈格曼斯。

I’ll now turn the call over to Lachie Given. Lachie?

我現在將電話轉給 Lachie Give。拉奇？

Thanks, Sean, and good morning, everyone. We’re pleased to report that EZCORP continued to generate impressive operating and financial results for the third quarter of fiscal 2024. Total revenue increased 9% to $280 million, which was a record for Q3. And PLO increased 15% to $265 million, the highest level in company history. Adjusted net income was up 14% from a bottom line perspective.

謝謝肖恩，大家早安。我們很高興地報告，EZCORP 在 2024 財年第三季繼續取得令人印象深刻的營運和財務表現。總營收成長 9%，達到 2.8 億美元，創下第三季的紀錄。PLO 成長了 15%，達到 2.65 億美元，創公司歷史最高水準。從獲利角度來看，調整後淨利成長了 14%。

Beginning on slide 3. We continue to be a global leader in pawn broking and pre-owned and recycled retail. We operate 1,258 stores in the U.S. and Latin America, having added another 12 stores this quarter. We’re seeing growing demand for our pawn broking services to meet short-term cash needs as economic headwinds like rising living costs and limited credit options are impacting our customers. Additionally, consumers are increasingly value-conscious, turning to pre-owned merchandise for its affordability and eco-friendly benefits. We are continuously innovating and providing exceptional customer service to address these evolving needs.

從投影片 3 開始。我們仍然是當鋪經紀以及二手和回收零售領域的全球領導者。我們在美國和拉丁美洲經營 1,258 家商店，本季又新增了 12 家商店。由於生活成本上升和信貸選擇有限等經濟逆風正在影響我們的客戶，我們看到對典當經紀服務的需求不斷增長，以滿足短期現金需求。此外，消費者越來越注重價值，轉而購買二手商品，因為其價格實惠且環保。我們不斷創新並提供卓越的客戶服務，以滿足這些不斷變化的需求。

Moving to slide 4. During the quarter, we opened six de novo stores in Latin America and one de novo store in the U.S. as well as acquiring five stores in the U.S. Our earning assets grew 14% year-over-year to help drive our record PLO balance, which in turn led to a 14% increase in PSC. Our cash balance decreased to $218 million due to the increase in PLO and inventory as well as our share repurchases of $3 million in the quarter.

轉到投影片 4。本季度，我們在拉丁美洲開設了6 家de novo 商店，在美國開設了1 家de novo 商店，並收購了美國的5 家商店。餘額，這反過來導致 PSC 增加 14%。由於 PLO 和庫存增加以及本季 300 萬美元的股票回購，我們的現金餘額減少至 2.18 億美元。

We continue to have substantial liquidity to fund additional organic earning asset growth to capitalize upon inorganic opportunities as they arise, repurchase shares and to fund near-term debt maturities as required. Subsequent to quarter end, we paid $34 million in cash and issued 77,328 shares in relation to our convertible notes that matured in July.

我們繼續擁有大量流動性，為額外的有機盈利資產增長提供資金，以利用出現的無機機會、回購股票並根據需要為近期債務到期提供資金。季度末後，我們支付了 3,400 萬美元現金，並發行了 77,328 股與 7 月到期的可轉換票據相關的股票。

Slide 5 shows the continued growth of our business across all key financial metrics with total revenues up 9% year-over-year, merchandise sales up 6%, gross profit up 11%, and adjusted EBITDA are up 15%. As I mentioned earlier, strong consumer demand and excellent customer service continue to propel PLO and PSC.

投影片 5 顯示了我們業務在所有關鍵財務指標上的持續成長，總營收年增 9%，商品銷售額成長 6%，毛利成長 11%，調整後 EBITDA 成長 15%。正如我之前提到的，強勁的消費者需求和卓越的客戶服務繼續推動 PLO 和 PSC 的發展。

Turning to our key business strategy highlights for Q3 on slide 6. We are proud of the strides we’ve made in strengthening our core pawn operations. Our accelerated PLO growth, driven by optimized pricing and lending model, has delivered an impressive 11% increase in gross profit. And in Latin America, our improved lending strategy and execution, combined with increased loan demand, has resulted in robust earnings growth in the region. Further, we have continued to modernize our back-end POS, enhancing the scalability across our systems and processes.

轉向幻燈片 6 上我們第三季的主要業務策略亮點。我們對在加強核心典當業務方面所取得的進步感到自豪。在優化定價和貸款模式的推動下，我們的 PLO 加速成長，毛利成長了 11%，令人印象深刻。在拉丁美洲，我們改進的貸款策略和執行，加上貸款需求的增加，導致該地區的盈利強勁增長。此外，我們繼續對後端 POS 進行現代化改造，增強系統和流程的可擴展性。

In the U.S., we have expanded the availability of third-party payment programs, driving higher retail sales and reinforcing our commitment to servicing customers. Growing deeper relationships with our customer base is also reflected by the continued growth of EZ+ Rewards members, which grew 51% to 5 million members globally. Our core pawn websites also experienced a 50% boost in traffic.

在美國，我們擴大了第三方支付計劃的可用性，推動了零售額的成長，並強化了我們對客戶服務的承諾。EZ+ Rewards 會員的持續成長也反映了我們與客戶群關係日益加深，全球會員人數成長了 51%，達到 500 萬人。我們的核心典當網站的流量也增加了 50%。

We continue to believe in fostering a culture that empowers and recognizes our team members as they are the foundation of our success. We completed our annual company-wide engagement survey that serves as a scorecard of how our culture is transforming. With robust participation of over 80% of our team members this year, we scored 84 points, 10 points above the external benchmarks. This quarter, we also introduced a new tenure reward program to recognize and reward long-term team member commitment.

我們仍然堅信要培養一種文化，賦予我們的團隊成員權力並認可他們，因為他們是我們成功的基礎。我們完成了年度全公司敬業度調查，作為我們文化轉型的記分卡。今年，在超過80%團隊成員的積極參與下，我們獲得了84分，比外部基準高出10分。本季度，我們還推出了一項新的終身任職獎勵計劃，以表彰和獎勵團隊成員的長期承諾。

Turning to innovation and growth. We experienced close to a 50% increase in U.S. online payment collections during the quarter as well as a notable rise in the adoption of online payments in Mexico, with 10% of extensions and layaways now managed online. We also grew Max Pawn luxury e-commerce sales by seven times, primarily driven through eBay.

轉向創新和成長。本季度，美國線上支付收款量成長了近 50%，墨西哥線上支付的採用率也顯著上升，目前有 10% 的延期和預付訂單透過線上管理。我們的 Max Pawn 奢侈品電子商務銷售額也成長了七倍，這主要是透過 eBay 推動的。

On slide 7, we highlight our sustainable and customer-centric approach. By selling 1.2 million pre-owned items, we extended the life cycle of these goods and contributed to a more sustainable future. At the same time, we provided access to critical financial services to hundreds of local communities.

在投影片 7 中，我們強調了我們的可持續和以客戶為中心的方法。透過銷售 120 萬件二手商品，我們延長了這些商品的生命週期，並為更永續的未來做出了貢獻。同時，我們為數百個當地社區提供了關鍵的金融服務。

At EZCORP, we’re building a diverse and inclusive workplace through a range of initiatives. Our commitment to a positive team member experience extends beyond the job. We actively support employee resource groups as a platform for connection, professional development and celebrating diversity. Outside the walls of EZCORP, we actively contribute to the communities we serve. We continue to partner with charities tackling critical issues like financial literacy, food and security, youth development and poverty reduction, aligning with our commitment to make a positive social impact.

在 EZCORP，我們正在透過一系列措施打造多元化和包容性的工作場所。我們對正向的團隊成員體驗的承諾超越了工作範圍。我們積極支持員工資源團體，將其作為聯繫、專業發展和慶祝多元化的平台。在 EZCORP 之外，我們積極為我們所服務的社區做出貢獻。我們繼續與慈善機構合作，解決金融知識、糧食和安全、青年發展和減貧等關鍵問題，履行我們對產生正面社會影響的承諾。

I would now like to turn the call over to Tim Jugmans, our Chief Financial Officer, to provide more details on our financial results. Tim?

我現在想將電話轉給我們的財務長 Tim Jugmans，以提供有關我們財務業績的更多詳細資訊。提姆？

Thanks, Lachie. slide 9 details our consolidated financial results for the third quarter. As Lachie mentioned earlier, we ended the quarter with record PLO of $265 million, up 15% and up 13% on a same-store basis. PSC revenue was up 14% over last year, with growth primarily driven by same-store PLO growth. Inventory turnover was 2.7 times with aged GM inventory at 3.2%. Merchandise sales were up 6% to $157.1 million, and merchandise gross profit increased 7%.

謝謝，拉奇。投影片 9 詳細介紹了我們第三季的綜合財務表現。正如 Lachie 先前提到的，本季結束時，我們的 PLO 達到創紀錄的 2.65 億美元，成長 15%，同店成長 13%。PSC 營收比去年成長 14%，成長主要由同店 PLO 成長推動。庫存週轉率為 2.7 倍，其中老化的通用汽車庫存率為 3.2%。商品銷售額成長 6%，達到 1.571 億美元，商品毛利成長 7%。

The company delivered another strong quarter of profitability with adjusted EBITDA rising 15% to $31.6 million and adjusted EBITDA margin expanding to 11%. This increase was primarily driven by higher PSC, partially offset by a 10% increase in expenses.

該公司第三季獲利能力強勁，調整後 EBITDA 成長 15%，達到 3,160 萬美元，調整後 EBITDA 利潤率擴大至 11%。這一增長主要是由 PSC 增加推動的，但部分被 10% 的費用增長所抵消。

Turning to our U.S. Pawn segment on slide 10, we delivered record third quarter total revenue of $199.1 million, up 8% year-over-year. And earning assets increased 9%, driven by a PLO increase of 11% and 6% in inventory.

轉向幻燈片 10 上的美國典當部門，我們第三季總收入達到創紀錄的 1.991 億美元，年增 8%。在 PLO 成長 11% 和庫存成長 6% 的推動下，獲利資產成長 9%。

slide 11 provides a map showing U.S. states in which we operate. Our U.S. store count has grown to 541 stores with five stores acquired and the opening of one de novo store in the quarter. Average loan size grew 8% driven by PLO jewelry competition, which was up 100 basis points due to continued operational focus on this category. Inventory general merchandise composition is up 200 basis points, driven by an increase in handbags, shoes and tools.

幻燈片 11 提供了一張地圖，顯示了我們開展業務的美國各州。我們的美國商店數量已增至 541 家，本季收購了 5 家商店並新開設了 1 家商店。在 PLO 珠寶競爭的推動下，平均貸款規模增長了 8%，由於持續專注於該類別的運營，平均貸款規模增長了 100 個基點。在手袋、鞋子和工具增加的推動下，一般商品庫存組成上升了 200 個基點。

Slide 12 provides a financial overview of our U.S. segment. Total PLO balance increased 11% with 10% on a same-store basis, driving PSC increase of 13% year-over-year. On the U.S. retail side of the business, merchandise sales were up 6% while merchandise sales gross profit was up 3%. The imputed lower gross margin reflects our focus on inventory turnover.

幻燈片 12 提供了我們美國部門的財務概覽。PLO 總餘額成長 11%，同店成長 10%，帶動 PSC 較去年同期成長 13%。美國零售業務方面，商品銷售額成長 6%，商品銷售毛利成長 3%。預計較低的毛利率反映了我們對庫存週轉率的關注。

U.S. Pawn EBITDA for the quarter was $38.5 million, growing 11% due to higher PSC, partially offset by an 8% increase in U.S. expenses. U.S. EBITDA margin improved 49 basis points to 19%, reflecting our focus on driving the bottom line.

本季度美國典當 EBITDA 為 3,850 萬美元，由於 PSC 增加而增長 11%，但部分被美國費用增長 8% 所抵消。美國 EBITDA 利潤率提高了 49 個基點，達到 19%，反映出我們專注於提高利潤。

Turning to our Latin American segment on slide 13. Total revenues increased 13% to $80.7 million, which is a record high for the third quarter. Earning assets increased 30%, driven by a PLO increase of 30% and inventory increase of 32%. We increased our presence in Latin America to 717 stores this quarter, opening six stores in three countries. PLO jewelry composition is up 500 basis points with an operational focus on growing this category, especially in Mexico. Higher jewelry PLO composition has also driven average loan size up 10% on a constant currency basis.

轉向幻燈片 13 上的拉丁美洲部分。總營收成長 13%，達到 8,070 萬美元，創第三季歷史新高。在 PLO 成長 30% 和庫存成長 32% 的推動下，獲利資產成長 30%。本季我們在拉丁美洲的門市數量增加至 717 家，在三個國家開設了 6 家門市。PLO 珠寶成分上升了 500 個基點，營運重點是發展該類別，尤其是在墨西哥。較高的珠寶 PLO 組成也推動以固定匯率計算的平均貸款規模成長 10%。

Turning to slide 15. As I mentioned, our LatAm region experienced significant PLO growth of 30%. This was primarily driven by our team’s operational performance and the region’s higher pawn demand. PSC was up 19%, driven by same-store PLO growth. On the retail side of the business, merchandise sales were up 8%, while merchandise gross profit increased 18%, reflecting 200 basis points of margin expansion.

轉到投影片 15。正如我所提到的，我們的拉丁美洲地區 PLO 成長了 30%。這主要是由我們團隊的營運績效和該地區更高的典當需求所推動的。在同店 PLO 成長的推動下，PSC 上漲 ​​19%。在零售業務方面，商品銷售額成長8%，商品毛利成長18%，反映利潤率擴張200個基點。

EBITDA grew an impressive 29% to $11.9 million with EBITDA margin coming in at 15%, up 189 basis points. The EBITDA improvement was due to higher PSC, partially offset by a 16% increase in expenses with same-store expenses increasing 12%. From a consolidated perspective, we anticipate that we will continue to see PLO growth year-on-year and expect PSC to mirror this trend.

EBITDA 成長了 29%，達到 1,190 萬美元，EBITDA 利潤率為 15%，成長了 189 個基點。EBITDA 的改善歸因於 PSC 的提高，但部分被費用增加 16%（同店費用增加 12%）所抵銷。從綜合角度來看，我們預計 PLO 將繼續同比增長，並預計 PSC 也將反映這一趨勢。

Our ongoing emphasis on optimizing inventory turnover and minimizing aged general merchandise remains a core component to our retail strategy. While we still operate in an inflationary environment, we are committed to prudent expense management and foresee the sequential same-store expense growth easing. Additionally, the strategic expansion of our store footprint necessitates increased staffing levels, which contributed to higher operating costs.

我們持續強調優化庫存週轉率和盡量減少老化的一般商品仍然是我們零售策略的核心組成部分。儘管我們仍然在通膨環境中運營，但我們致力於審慎的費用管理，並預計同店費用將比去年同期成長放緩。此外，我們商店足跡的策略擴張需要增加人員配備水平，這導致營運成本上升。

A quick word on our capital stock and allocation priorities. We continue to have a robust liquidity position with $218 million of cash and $368 million of gross convertible notes on our balance sheet as at June 30, 2024. We believe the most effective uses of cash to drive shareholder value include reinvestment in our business to drive organic growth, acquisitions, share buybacks and debt repayments.

簡單介紹一下我們的股本和分配優先事項。截至 2024 年 6 月 30 日，我們的資產負債表上仍擁有強勁的流動性頭寸，現金為 2.18 億美元，可轉換票據總額為 3.68 億美元。我們認為，最有效地利用現金來推動股東價值包括對我們的業務進行再投資以推動有機成長、收購、股票回購和債務償還。

As Lachie mentioned earlier, the 2024 notes were retired in early July. We have $103 million of convertible notes that come due in May 2025. We continue to explore a series of options to retire or refinance that note, including by use of existing cash to traditional debt or other equity-linked instruments. Looking ahead, we believe that our focus on cultivating PLO, coupled with our commitment to inventory management, streamline systems and exceptional customer service, will continue to be the driving forces behind our strong financial performance.

正如 Lachie 之前提到的，2024 年紙幣已於 7 月初退役。我們有 1.03 億美元的可轉換票據將於 2025 年 5 月到期。我們繼續探索一系列對該票據進行註銷或再融資的選擇，包括將現有現金用於傳統債務或其他與股票掛鉤的工具。展望未來，我們相信，我們對培養 PLO 的關注，加上我們對庫存管理、簡化系統和卓越客戶服務的承諾，將繼續成為我們強勁財務業績背後的驅動力。

I will now turn it over to Lachie for a few closing remarks.

現在我將把它交給 Lachie，讓他做一些總結發言。

Thanks, Tim. In closing, I’d like to express my gratitude to the EZCORP team for once again delivering outstanding operating and financial results to our stakeholders this quarter. Our record results are a testament to the team’s dedication and hard work. The company has demonstrated robust performance throughout the first three fiscal quarters of 2024, and we remain well positioned to sustain this momentum and deliver returns for our shareholders as we close out the fiscal year.

謝謝，蒂姆。最後，我要對 EZCORP 團隊表示感謝，感謝他們本季再次為我們的利害關係人帶來了出色的營運和財務表現。我們創紀錄的成績證明了團隊的奉獻和辛勤工作。該公司在 2024 年前三個財季表現出了強勁的業績，我們仍然有能力維持這一勢頭，並在本財年結束時為股東帶來回報。

And with that, we will open the call for questions. Operator?

接下來，我們將開始提問。操作員？

Thank you. (Operator Instructions) Brian McNamara, Canaccord Genuity.

謝謝。（操作員說明）Brian McNamara，Canaccord Genuity。

Hey, good morning guys. Congrats on the results. Thanks for taking the questions here.

嘿，早上好，夥計們。祝賀結果。感謝您在這裡提出問題。

Good morning, Brian.

早安，布萊恩。

First off, it was great to see you settled the $34 million in 2024 convertible notes in cash, and it’s also great to hear you’ll consider maybe a host of refinancing options for the $100 million plus that’s due next year. It’s also a bit of a tone change, I guess, relative to kind of what we’ve heard in the past or maybe absent of like maybe starting June in the conference circuit. But I’m just curious what’s driving that because I think these converts are obviously on top of mind for investors, so it’s great to hear.

首先，很高興看到您以現金方式支付了 3400 萬美元的 2024 年可轉換票據，而且很高興聽到您可能會考慮為 1 億美元的到期債務考慮一系列再融資選擇明年。我想，相對於我們過去聽到的情況，或者可能沒有從六月開始的巡迴會議中聽到的情況，這也是一種語氣的變化。但我只是好奇是什麼推動了這個趨勢，因為我認為這些轉變者顯然是投資人最關心的，所以很高興聽到這個消息。

Thank you, Brian. Yes, it was certainly a fantastic quarter. Look, on the financing, I don’t think we’ve changed the tone. I don’t think we deliberately wanted to continue to address that through Tim’s comments today. And really, it’s the same as we’ve always said. We are – the Board and the team are constantly reviewing all financing alternatives, as I’ve said in the past.

謝謝你，布萊恩。是的，這確實是一個非常棒的季度。看，在融資方面，我認為我們沒有改變基調。我認為我們並不是故意想透過蒂姆今天的評論繼續解決這個問題。事實上，這就像我們一直說的一樣。正如我過去所說，我們的董事會和團隊正在不斷審查所有融資方案。

The very good news is that given our operational performance, which continues to get stronger and stronger. Our alternatives and options grow. The terms improve. So I think all options are on the table. We’ve got time. But the best news is we’ve also got cash. So I think we’re in a very strong liquidity position. The balance sheet is strong, and we’ve got our scale opportunities continue to grow.

好消息是，鑑於我們的營運表現持續變得越來越強。我們的選擇和選擇不斷增加。條款有所改善。所以我認為所有的選擇都在桌面上。我們還有時間。但最好的消息是我們還有現金。因此，我認為我們的流動性狀況非常強勁。資產負債表強勁，我們的規模機會持續成長。

So there’s a lot to do in the existing business organically. There’s a lot to do on the acquisition front, but we’re very – I think we’re in a real position of privilege here to have such a strong balance sheet from which to operate. And as you said, we paid back the 2024. We’ve got the 2025 to deal with and all options there on the table, whether it’s paying with cash, using debt instruments, all sorts of different debt instruments or some form of equity-linked product or a mix. I think we will, over the coming six to 12 months, work out the best way to go there.

因此，現有業務還有很多事情要做。在收購方面還有很多工作要做，但我們非常——我認為我們處於真正的優勢地位，能夠擁有如此強大的資產負債表來運作。正如你所說，我們還清了2024年的債務。我們要應付 2025 年，所有選項都擺在桌面上，無論是用現金支付、使用債務工具、各種不同的債務工具或某種形式的股票掛鉤產品或組合。我認為我們將在未來 6 到 12 個月內找出實現這一目標的最佳方式。

But it’s certainly – it’s an incredibly exciting time for the company. I’m very, very happy with the LatAm growth. I think if you look deeply at those results, you can see that that momentum is really accelerating. And what we’ve said from the outset here is that when this team took over and Blair got so much done in the U.S. and was able to then turn his mind to Latin America, you’re seeing very similar things happen down there in terms of earnings momentum. So look, it was a really fantastic quarter.

但這對公司來說無疑是一個令人難以置信的激動人心的時刻。我對拉丁美洲的成長感到非常非常滿意。我認為，如果你深入研究這些結果，你會發現這種勢頭確實在加速。我們從一開始就說過的是，當這個團隊接管時，布萊爾在美國完成了很多工作，然後能夠將他的注意力轉向拉丁美洲，你會看到那裡發生了非常相似的事情就盈利動力而言。所以看，這是一個非常棒的季度。

You took the word enough on LatAm. I was really impressed to see the 30% PLO growth there. I think Blair took over early last year. I’m just curious like, I know it takes time to train and all this stuff, but I’m assuming that this is a direct function of him kind of his influence given his vast experience in pawn broking?

關於拉丁美洲，你已經聽夠了。看到 PLO 成長 30% 給我留下了深刻的印象。我認為布萊爾去年年初就任了。我只是好奇，我知道訓練和所有這些東西需要時間，但我假設這是他的直接影響，考慮到他在典當行業的豐富經驗？

Look, I think it certainly has started with Blair, but he has built – we’ve all built a really fantastic leadership team across Latin America now. And with Blair leading operations, I think it all starts there. And as you say, it does take time.

看，我認為這當然是從布萊爾開始的，但他已經建立了——我們現在已經在整個拉丁美洲建立了一支非常出色的領導團隊。在布萊爾領導的運作中，我認為一切都從這裡開始。正如你所說，這確實需要時間。

It’s been a matter of a real training effort down there as to the 101 of pawn broking, which is all negotiation at the loan counter. And I think he led that transformation in the U.S. through people and through the People, Pawn and Passion mantra and was able to then turn his efforts to Latin America and do very similar things.

對於 101 典當行來說，這是一個真正的培訓工作，這都是在貸款櫃檯進行的談判。我認為他透過人民以及人民、典當和激情的口號領導了美國的變革，然後能夠將他的努力轉向拉丁美洲並做非常類似的事情。

As we’ve said to everyone, we’re in an industry that is very similar across these different geographies. So it’s very similar metrics, very similar people issues. So we’re able to do much of the stuff that we did in the U.S. down in Latin America, and it just takes time. And I think the team are incredibly excited and engaged about finally seeing the last couple of quarters gain such strong momentum. And in particular, this quarter, the numbers are just very, very strong.

正如我們對所有人所說的那樣，我們所處的行業在不同地區都非常相似。所以這是非常相似的指標，非常相似的人員問題。因此，我們能夠在拉丁美洲做我們在美國所做的很多事情，只是需要時間。我認為團隊對於最終看到過去幾季獲得如此強勁的勢頭感到非常興奮和投入。特別是本季度，數字非常非常強勁。

I’d add to that, that the investment that we’ve made into improving pricing in Latin America is really coming through. And also the focus on building the jewelry part of the business, especially in Mexico is starting to come through in the numbers. So that all does take time, and the execution from the stores has been improving all the time. And the combination of all those things we just talked about is driving these great results.

我想補充一點，我們為改善拉丁美洲定價所做的投資確實取得了成效。此外，對建立珠寶業務部分的關注，尤其是在墨西哥，也開始在數字中體現。所以這一切確實需要時間，而且商店的執行力一直在提高。我們剛才談到的所有這些事情的結合正在推動這些偉大的成果。

Great. And I mean, PLO hitting, I think, an all-time in Q3 is unusual. Usually, Q4 is the big seasonal quarter for PLO. And I think we’ve talked a lot about the lack of paydown during tax season for a couple of years in a row now. Any way to explain that in terms of like how sustainable that is? Is it just a sense of the fact that paying back of pawn loans maybe not on the top of people’s list at least in terms of your core loan income segment here? Any commentary on that would be helpful.

偉大的。我的意思是，我認為巴解組織在第三季創下歷史新高是不尋常的。通常，第四季度是 PLO 的大季節性季度。我認為我們已經連續幾年談論了納稅季期間缺乏付款的問題。有什麼辦法可以解釋一下它的可持續性嗎？至少就你們這裡的核心貸款收入部分而言，償還當鋪貸款可能不是人們最關心的事情，這是否只是一種感覺？對此的任何評論都會有所幫助。

Look, I think there’s a lot of literature out there trying to work out why the last two years has been this way, but it seems to be a trend. And we can only talk anecdotally here, but I think your hypothesis is probably – it’s probably part of the issue that our customers have got other things to pay ahead of their pawn loan. And look, we’re – again, we’re trying to do our best to forecast the year out for next year. But look, it does seem to be a trend in the last two years.

聽著，我認為有很多文獻試圖解釋為什麼過去兩年會出現這種情況，但這似乎是一種趨勢。我們只能在這裡談論軼事，但我認為你的假設可能是——這可能是問題的一部分，即我們的客戶在典當貸款之前需要支付其他費用。看，我們——再次，我們正在盡力預測明年的情況。但你看，這似乎確實是近兩年的趨勢。

The other thing I’d add to that is what we’ve seen from the literature is that the dollars that people are receiving year-on-year hasn’t really moved, but inflation has, and so everything is a little bit more expensive. And so the dollars available to redeem loans, never mind pawn loans or any other things they do have, is less than they used to as a percentage. And so we think that is some of the driver.

我要補充的另一件事是，我們從文獻中看到，人們逐年收到的美元並沒有真正發生變化，但通貨膨脹卻發生了變化，所以一切都有點貴一點。因此，可用於贖回貸款的美元（更不用說典當貸款或他們擁有的任何其他東西）比以前要少。所以我們認為這是一些驅動因素。

And then we’ve seen a whole host of consumer-focused companies over the last three months talk about low income weakness, middle to high-income trade down, things like I mean the big banks were talking about it a couple of weeks ago in terms of low income pressure. Are you guys benefiting from this? Are you seeing new faces in stores? You have big retailers rolling back prices. Any sense for that?

然後，我們在過去三個月中看到大量以消費者為中心的公司談論低收入疲軟、中高收入貿易下降，就像我的意思是大銀行幾週前就在談論這些事情在低收入壓力方面。大家有沒有從中受益？您在商店中看到新面孔嗎？大型零售商紛紛下調價格。有什麼意義嗎？

Look, we’re certainly seeing some new faces in the stores. But if you look at the sales results, we are still seeing pretty strong sales results across the board. So I think, yes, there is this trade down going on. But I think, really, our customer service just gets better and better. And I think that’s a big driver here. It’s our people in our stores doing a much better job with customers to drive what we’re seeing.

看，我們確實在商店裡看到了一些新面孔。但如果你看一下銷售結果，我們仍然看到整體銷售結果相當強勁。所以我認為，是的，這種貿易正在下降。但我認為，確實，我們的客戶服務變得越來越好。我認為這是一個重要的推動因素。正是我們店裡的員工更能與顧客打交道，才推動了我們所看到的發展。

Obviously, super strong results on the PLO. But on the sales side, we are still generating margins that we think are very strong, and we’re seeing sales growth, as I said, across all geographies. So I think in our situation, it’s really coming down to fantastic customer service and engagement from our people in our stores.

顯然，巴解組織上的結果非常強勁。但在銷售方面，我們仍然產生了我們認為非常強勁的利潤，正如我所說，我們在所有地區都看到了銷售成長。因此，我認為在我們的情況下，這實際上取決於我們商店員工的出色客戶服務和參與度。

Great. And then I think last quarter, costs were a little bit of a surprise. Tim, any thoughts on maybe a directional color for Q4 and maybe how we should start thinking about preliminarily 2025?

偉大的。然後我認為上個季度的成本有點令人驚訝。提姆，對於第四季度的方向性顏色有什麼想法嗎？

Yes. So I think we’re definitely seeing a lot of that inflationary pressure come through. What we do see is, from a sequential perspective that, that growth in expenses is going to slow down in the next few quarters.

是的。因此，我認為我們肯定會看到很大程度的通膨壓力。我們確實看到，從連續的角度來看，未來幾季支出的成長將放緩。

Okay, that’s all for me. Thanks a lot, guys. Congrats.

好吧，我就這些了。非常感謝，夥計們。恭喜。

Thanks, Brian.

謝謝，布萊恩。

Thank you. I would now like to turn the call back over to Lachie Given for any closing remarks.

謝謝。我現在想將電話轉回拉奇·吉文，請他發表結束語。

Look, thank you very much, everyone, for joining the call today. We’re obviously very proud of the results. And again, I want to thank our team for their tireless efforts to deliver these results for our stakeholders. We look forward to talking to a lot of you guys throughout the course of today and next week and look forward to producing another set of strong results in the coming quarter. Thanks, guys.

聽著，非常感謝大家今天加入電話會議。顯然，我們對結果感到非常自豪。我要再次感謝我們的團隊為我們的利害關係人帶來這些成果的不懈努力。我們期待在今天和下週與你們許多人交談，並期待在下個季度產生另一組強勁的成果。謝謝，夥計們。

Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

謝謝。會議到此結束。感謝您的參與。您現在可以斷開連線。