6 questions lodged at 2023 Cash Converters AGM
November 24, 2023
Below is the text of the 6 written questions lodged at the 2023 Cash Converters virtual AGM held on November 23, plus a summary of the responses and some audio grabs.
Q1. Even after the $97 million loss, our audited net assets are still $189 million, which materially exceeds our current market capitalisation of $128 million after the shares recently hit a 3 year low of 20c. Could auditor Peter Rupp explain why the write-downs weren't larger?
Answer: The dominating CEO Sam Budiselik, who was reading out the questions, initially took this one. However, the auditor later got a go - listen to audio of exchange via Twitter, plus final piece of auditor response.
Q1. Robert joined the board of Humm Group last year. Aren't they are a competitor of ours in some respects, offering consumers finance? Are there any areas of overlap and did the chair have any discussions with Robert before his appointment to the Humm Group board?
Answer: the CEO took this one and said there were no conflicts. Listen to audio via Twitter.
Q3. EZCORP is the controlling shareholder with a 46% stake. As an EZCORP nominee, could Lachlan Given comment on just how committed they are to the Cash Converters business. With the stock hitting a 3 year low of 20c recently, why isn't EZCORP buying more shares at the moment?
Answer: once again, CEO Sam dominated the response but then Lachlan piped up at the end saying any share buying was a matter for the EZCORP board - listen to audio via Twitter.
Q4. When Myer was owned by private equity group TPG, a series of long term leases were signed where the rental payments were weighted more heavily into the outer years. After public investors paid $4 a share, this turned into a disaster, with rising rental payments one of the problems. As the former long term CFO of Myer, does Mark Ashby have any reflections on how the business was managed and any learnings that will assist our company.
Answer: Once again, CEO Sam took the question after heavily edited it in the first place. No response from Mark Ashby and board candidates were not even required to say a few words to support their nomination. Listen to audio via Twitter.
Q5. Thanks for disclosing the proxy votes to the ASX. Why was there a 13% protest vote on the rem report and also will an archive of the AGM debate be made available on the company's website who weren't able to listen in live.
Answer: the CEO said they were focused on improved rem transparency. There was no response on the AGM archive, which suggests it will probably disappear without trace. Listen to audio of exchange via Twitter.
Q6. Could the CEO summarise his past LTI grants as to whether they have vested or lapsed. Also, has he ever sold any ordinary shares in the company or bought any on market without relying on an incentive scheme to build his equity position in the company? Please don't say look it up in the annual report and through ASX announcements. It's complicated and the CEO could factually summarise the situation in 60 seconds.
Answer: the CEO said he'd never sold a share and never had any LTIs vest either - listen to audio of exchange via Twitter.
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