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EZCORP Announces Fiscal Fourth Quarter and Yearend Results

Nov 10, 2005

EZCORP, Inc. (NASDAQ: EZPW) announced today results for its fiscal fourth quarter and 2005 fiscal year, which ended September 30, 2005.

For the quarter ended September, net income increased 29% to $3,705,000 ($0.27 per share) from $2,873,000 ($0.22 per share) for the 2004 fiscal fourth quarter. Total revenues for the quarter increased 14% to $73,183,000 compared to $64,053,000 for the prior year period.

For the twelve month period ended September, net income increased 62% to $14,752,000 ($1.09 per share) from $9,123,000 ($0.70 per share) for fiscal 2004. Total revenues for the fiscal year increased 12% to $254,159,000 from $227,797,000 for fiscal 2004.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "The fourth quarter is our thirteenth consecutive quarter of year-over-year earnings growth and caps off a very successful year. For the quarter, all elements of our business contributed to our strong performance. Signature loan finance charges and fees, after bad debt & direct transaction expenses, increased 77% from the prior year. Pawn service charges improved 6% from portfolio growth and yield improvement. Gross profit on sales increased 5% as a result of 3% same store sales growth and better jewelry scrapping margins."

Rotunda continued, "The results for the quarter are especially strong in light of the challenges we faced due to hurricanes Katrina and Rita and to the conversion of 181 Texas EZMoney stores to a credit services organization, or CSO. As a result of the hurricanes, we lost approximately 500 store days during the quarter. The direct financial impact on the quarter from the hurricanes was approximately $500,000, or just over two cents per share, mainly from lost revenues. In July, we announced the CSO conversion. Included in our results for the quarter is approximately $450,000, or two cents per share, of expenses directly related to this conversion, largely signage, point of purchase materials, and legal expense."

Rotunda concluded, "Looking forward to fiscal 2006, we expect to generate earnings per share in the range of $1.45 to $1.50. For our first fiscal 2006 quarter, we expect to generate earnings per share of $0.42 to $0.45. In fiscal 2006, we plan to continue expansion of our EZMoney brand by opening between 115 and 125 new locations."

EZCORP is primarily a lender or provider of credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. In 280 EZPAWN locations, the Company offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. In 234 EZMoney locations and 98 EZPAWN locations, the Company offers short-term non-collateralized loans, often referred to as payday loans, or fee based credit services to customers seeking loans.

This announcement contains certain forward-looking statements regarding the Company's expected performance for future periods including, but not limited to, new unit growth 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 November 10, 2005 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://phx.corporate-ir.net/playerlink.zhtml?c=69434&s=wm&e=1157852

  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)


                                            Three Months Ended September 30,
                                                   2005              2004
   1  Revenues:
   2      Merchandise sales                      $27,538           $26,721
   3      Jewelry scrapping sales                 13,295            14,040
   4      Pawn service charges                    16,201            15,215
   5      Payday loan service charges              2,605             7,750
   6      Credit service fees                     13,246               ---
   7      Other                                      298               327
   8          Total revenues                      73,183            64,053
   9  Cost of goods sold:
   10     Cost of merchandise sales               16,162            15,675
   11     Cost of jewelry scrapping sales         10,281            11,397
   12         Total cost of goods sold            26,443            27,072
   13 Net revenues                                46,740            36,981
   14
   15 Operations expense                          25,492            22,480
   16 Payday loan bad debt and other
       direct expenses                             1,291             3,146
   17 Credit service bad debt and other
       direct expenses                             6,395               ---
   18 Administrative expense                       5,898             4,991
   19 Depreciation and amortization                2,088             1,874
   20     Operating income                         5,576             4,490
   21
   22 Interest expense, net                          359               375
   23 Equity in net income of
       unconsolidated affiliate                     (572)             (448)
   24 Loss on sale/disposal of assets                ---                 3
   25 Income before income taxes                   5,789             4,560
   26 Income tax expense                           2,084             1,687
   27 Net income                                  $3,705            $2,873
   28
   29 Net income per share, assuming  dilution     $0.27             $0.22
   30
   31 Weighted average shares - assuming dilution 13,740            13,083



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


                                                 Year Ended September 30,
                                                  2005              2004
   1  Revenues:
   2      Merchandise sales                     $118,951          $116,816
   3      Jewelry scrapping sales                 29,459            26,656
   4      Pawn service charges                    62,274            59,090
   5      Payday loan service charges             28,954            23,874
   6      Credit service fees                     13,246               ---
   7      Other                                    1,275             1,361
   8          Total revenues                     254,159           227,797
   9  Cost of goods sold:
   10     Cost of merchandise sales               68,680            67,682
   11     Cost of jewelry scrapping sales         21,998            20,520
   12         Total cost of goods sold            90,678            88,202
   13 Net revenues                               163,481           139,595
   14
   15 Operations expense                          95,876            86,862
   16 Payday loan bad debt and other
       direct expenses                             7,808             9,103
   17 Credit service bad debt and other
       direct expenses                             6,395               ---
   18 Administrative expense                      23,067            21,845
   19 Depreciation and amortization                8,104             7,512
   20     Operating income                        22,231            14,273
   21
   22 Interest expense, net                        1,275             1,528
   23 Equity in net income of
       unconsolidated affiliate                   (2,173)           (1,739)
   24 Loss on sale/disposal of assets                 79                 3
   25 Income before income taxes                  23,050            14,481
   26 Income tax expense                           8,298             5,358
   27 Net income                                 $14,752            $9,123
   28
   29 Net income per share, assuming dilution      $1.09             $0.70
   30
   31 Weighted average shares - assuming dilution 13,574            13,122



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


                                                    As of September 30,
                                                   2005              2004
   1 Assets:
   2  Current assets:
   3    Cash and cash equivalents                 $4,168            $2,506
   4    Pawn loans                                52,864            49,078
   5    Payday loans, net                          1,634             7,292
   6    Pawn service charges receivable, net       9,492             8,679
   7    Payday loan service charges
         receivable, net                             272             1,474
   8    Credit service fees receivable, net        3,007               ---
   9    Inventory, net                            30,293            30,636
   10   Deferred tax asset                        10,534             9,711
   11   Prepaid expenses and other assets          1,998             2,321
   12     Total current assets                   114,262           111,697
   13  Investment in unconsolidated affiliate     17,348            16,101
   14  Property and equipment, net                26,964            25,846
   15  Deferred tax asset, non-current             4,012             4,946
   16  Other assets, net                           2,862             5,732
   17     Total assets                          $165,448          $164,322
   18 Liabilities and stockholders' equity:
   19  Current liabilities:
   20  Accounts payable and other accrued
        expenses                                 $18,988           $14,947
   21  Customer layaway deposits                   1,672             1,645
   22  Federal income taxes payable                  648             2,043
   23     Total current liabilities               21,308            18,635
   24
   25 Long-term debt                               7,000            25,000
   26 Deferred gains and other long-
       term liabilities                            3,597             3,958
   27     Total long-term liabilities             10,597            28,958
   28 Total stockholders' equity                 133,543           116,729
   29     Total liabilities and
           stockholders' equity                 $165,448          $164,322
   30
   31 Pawn loan balance per ending pawn store       $189              $175
   32 Inventory per ending pawn store               $108              $109
   33 Book value per share                        $10.39             $9.44
   34 Tangible book value per share               $10.21             $9.23
   35 Pawn store count - end of period               280               280
   36 Mono-line payday loan store count
       - end of period                               234               125
   37 Shares outstanding - end of period          12,859            12,362

SOURCE: EZCORP, Inc.

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

Web site: http://www.ezcorp.com/
http://phx.corporate-ir.net/playerlink.zhtml?c=69434&s=wm&e=1157852

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