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EZCORP Announces Third Quarter Results

Jul 20, 2004

EZCORP, Inc. (NASDAQ: EZPW) announced today results for its third fiscal 2004 quarter and the nine month period, which ended June 30, 2004.

For the quarter ended June 30, 2004, net income increased to $253,000 ($0.02 per share) compared to $53,000 for the prior year period. Total revenues for the third fiscal 2004 quarter increased 9% to $51,141,000 compared $46,903,000 for the third fiscal 2003 quarter.

For the nine months ended June 30, 2004, net income improved to $6,250,000 ($0.48 per share) compared to income before the cumulative effect of a change in accounting principle of $3,836,000 ($0.31 per share) for the same nine month period a year ago. Effective October 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 142, which deals with the accounting treatment of goodwill and other intangible assets. After a charge of $8,037,000 ($0.65 per share) for the cumulative effect of adopting this new accounting principle, the Company reported a net loss for the nine month period ended June 30, 2003 of $4,201,000 ($0.34 cents per share).

Commenting on these results, Joseph L. Rotunda, President and Chief Executive Officer, said, "We remain pleased with our progress. Not only have we substantially improved earnings, but we have also significantly expanded our store base. In the first three quarters of this fiscal year, we have added eighty-one EZMoney Payday Loan stores, for a total of eighty-five, and improved earnings 63% even with the earnings drag of these new stores."

Mr. Rotunda concluded, "Most gratifying is that all three business segments -- pawn, sales, and payday loans -- showed year-on-year improvements. We are on target to have an excellent year. We estimate fiscal 2004 earnings to be between sixty-five and sixty-eight cents per share compared to a comparable forty-three cents per share for fiscal 2003. During our fourth fiscal quarter, we plan on adding thirty-five to forty additional EZMONEY Payday Loan locations.

EZCORP meets the short-term cash needs of the cash and credit constrained consumer by offering convenient, non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, and short-term non- collateralized loans, often referred to as payday loans. The Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. As of June 30, 2004, the Company operated 280 EZPAWN and 85 EZMONEY Payday Loan stores, 69 of which adjoin an EZPAWN location.

This announcement contains certain forward-looking statements regarding the Company's expected performance for future periods including, but not limited to, new store expansion and expected future earnings. Actual results for these periods may materially differ from these statements. Such forward- looking statements involve risks and uncertainties such as changing market conditions in the overall economy and the industry, consumer demand for the Company's services and merchandise, changes in regulatory environment, and other factors periodically discussed in the Company's annual, quarterly and other reports filed with the Securities and Exchange Commission.

You are invited to listen to a conference call discussing these results on July 20, 2004 at 3:30pm Central Time. The conference call can be accessed over the Internet (or replay it at your convenience) at the following address.

      http://www.firstcallevents.com/service/ajwz407992886gf12.html

   For additional information, contact Dan Tonissen at (512) 314-2289.


                               EZCORP, Inc.
     Highlights of Consolidated Statements of Operations (Unaudited)
          (in thousands, except per share data and store counts)

                                                Three Months Ended June 30,
                                                  2004              2003
   1 Revenues:
   2   Merchandise sales                         $25,845           $24,863
   3   Jewelry scrapping sales                     4,937             5,149
   4   Pawn service charges                       13,835            13,619
   5   Payday loan service charges                 6,191             3,047
   6   Other revenues                                333               225
   7     Total revenues                           51,141            46,903
   8 Cost of goods sold:
   9   Cost of merchandise sales                  15,566            15,442
  10   Cost of jewelry scrapping sales             3,774             4,272
  11     Total cost of goods sold                 19,340            19,714
  12 Net revenues                                 31,801            27,189
  13
  14 Operations expense                           21,830            19,700
  15 Bad debt and other direct expenses
      on payday loans                              2,832             1,111
  16 Administrative expense                        4,614             4,021
  17 Depreciation and amortization                 1,858             2,179
  18   Operating income                              667               178
  19
  20 Interest expense, net                           332               403
  21 Equity in net income of
      unconsolidated affiliate                      (430)             (333)
  22 Loss on sale of assets                          ---                27
  23 Income before income taxes                      765                81
  24 Income tax expense                              512                28
  25 Income before cumulative effect of
      a change in accounting principle               253                53
  26 Cumulative effect of adopting a
      new accounting principle, net of tax           ---               ---
  27 Net income                                     $253               $53
  28
  29 Income per share, assuming dilution:
  30   Income before cumulative effect of
        a change in accounting principle           $0.02              $---
  31   Cumulative effect of adopting a
        new accounting principle, net of tax         ---               ---
  32   Net income                                  $0.02              $---
  33
  34 Weighted average shares - assuming
      dilution                                    13,221            12,528
  35 Pawn store count - average for period           280               280
  36 Mono-line payday loan store count
      - average for period                            71               ---


                               EZCORP, Inc.
     Highlights of Consolidated Statements of Operations (Unaudited)
          (in thousands, except per share data and store counts)

                                                 Nine Months Ended June 30,
                                                  2004              2003
   1 Revenues:
   2   Merchandise sales                         $90,095           $87,994
   3   Jewelry scrapping sales                    12,616            11,986
   4   Pawn service charges                       43,875            43,576
   5   Payday loan service charges                16,124             8,798
   6   Other revenues                              1,034               770
   7     Total revenues                          163,744           153,124
   8 Cost of goods sold:
   9   Cost of merchandise sales                  52,007            53,380
  10   Cost of jewelry scrapping sales             9,123            10,328
  11     Total cost of goods sold                 61,130            63,708
  12 Net revenues                                102,614            89,416
  13
  14 Operations expense                           64,382            60,495
  15 Bad debt and other direct expenses
      on payday loans                              5,957             3,175
  16 Administrative expense                       16,854            12,711
  17 Depreciation and amortization                 5,638             6,636
  18   Operating income                            9,783             6,399
  19
  20 Interest expense, net                         1,153             1,534
  21 Equity in net income of
      unconsolidated affiliate                    (1,291)           (1,062)
  22 Loss on sale of assets                          ---                26
  23 Income before income taxes                    9,921             5,901
  24 Income tax expense                            3,671             2,065
  25 Income before cumulative effect of
      a change in accounting principle             6,250             3,836
  26 Cumulative effect of adopting a
      new accounting principle, net of
      tax                                            ---            (8,037)
  27 Net income (loss)                            $6,250           $(4,201)
  28
  29 Income (loss) per share, assuming dilution:
  30   Income before cumulative effect of
        a change in accounting principle           $0.48             $0.31
  31   Cumulative effect of adopting a
        new accounting principle, net of tax         ---             (0.65)
  32   Net income (loss)                           $0.48            $(0.34)
  33
  34 Weighted average shares - assuming
      dilution                                    13,138            12,474
  35 Pawn store count - average for period           280               280
  36 Mono-line payday loan store count
      - average for period                            41               ---


                               EZCORP, Inc.
          Highlights of Consolidated Balance Sheets (Unaudited)
          (in thousands, except per share data and store counts)

                                                       As of June 30,
                                                   2004              2003
    1 Assets:
    2   Current assets:
    3     Cash and cash equivalents               $1,692              $248
    4     Pawn loans                              51,101            48,149
    5     Payday loans                             6,720             3,116
    6     Pawn service charges receivable, net     8,557             8,806
    7     Payday loan service charges
           receivable, net                         1,336               611
    8     Inventory, net                          30,997            28,853
    9     Deferred tax asset                       8,163             6,418
   10     Federal income taxes receivable            253               683
   11     Prepaid expenses and other assets        2,287             2,209
   12       Total current assets                 111,106            99,093
   13   Investment in unconsolidated
         affiliates                               15,734            15,113
   14   Property and equipment, net               25,222            27,141
   15   Deferred tax asset, non-current            4,391             1,948
   16   Other assets                               5,602             5,348
   17       Total assets                        $162,055          $148,643
   18 Liabilities and stockholders' equity:
   19   Current liabilities:
   20     Accounts payable and other
           accrued expenses                      $11,465            $9,186
   21     Customer layaway deposits                1,554             1,471
   22     Federal income taxes payable               ---               ---
   23       Total current liabilities             13,019            10,657
   24   Long-term debt, less current
         maturities                               31,200            33,000
   25   Deferred gains and other long-
         term liabilities                          4,048             4,408
   26       Total long-term liabilities           35,248            37,408
   27   Total stockholders' equity               113,788           100,578
   28       Total liabilities and
             stockholders' equity               $162,055          $148,643
   29
   30 Pawn loan balance per ending pawn store       $183              $172
   31 Inventory per ending pawn store               $111              $103
   32 Book value per share                         $9.21             $8.25
   33 Tangible book value per share                $8.98             $8.03
   34 Pawn store count - end of period               280               280
   35 Mono-line payday loan store count
       - end of period                                85               ---
   36 Shares outstanding - end of period          12,361            12,188
Audio: http://www.firstcallevents.com/service/ajwz407992886gf12.html

SOURCE: EZCORP, Inc.

CONTACT: Dan Tonissen of EZCORP, Inc., +1-512-314-2289

Web site: http://www.ezcorp.com/

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