Press Release Details

View all Investor News

EZCORP Announces Yearend Results and Three-For-One Stock Split

Nov 9, 2006

EZCORP, Inc. (NASDAQ: EZPW) announced today results for its fiscal fourth quarter and 2006 fiscal year, which ended September 30, 2006.

For the quarter ended September, net income increased to $9,168,000 ($0.64 per share) from $3,705,000 ($0.27 per share) for the 2005 fiscal fourth quarter. Total revenues for the quarter increased 19% to $87,355,000 compared to $73,183,000 for the prior year period.

For the twelve month period ended September, net income increased 98% to $29,259,000 ($2.08 per share) from $14,752,000 ($1.09 per share) for fiscal 2005. Total revenues for the fiscal year increased 24% to $315,852,000 from $254,159,000 for fiscal 2005.

The results for the current period include a net benefit of approximately $0.04 per share from three non-recurring items. The prior year results include an unfavorable impact of approximately $0.04 per share due to losses associated with hurricanes Katrina and Rita and expenses directly related to the Company's conversion of 181 Texas EZMONEY locations to a credit services organization.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "We are pleased and excited with the strong results we have delivered for the quarter and year. The fourth quarter was our seventeenth consecutive quarter of year-over-year earnings growth. Increases in our signature loan contribution, or signature loan fees less bad debt and direct transaction expense, led the improvement with growth of 95% or $7.7 million. Our pawn operation also made a significant contribution with pawn net revenues up $5.4 million or 17%."

Rotunda continued, "I am pleased to announce that we opened forty-six EZMONEY locations during the fourth quarter, making this fiscal year the third consecutive year of opening more than 100 stores. In addition, we just opened our first pawn store in Mexico and plan to have two more open before the end of January."

Rotunda concluded, "Looking forward to fiscal 2007, we expect to generate earnings per share in the range of $2.40 to $2.45. For our first fiscal 2007 quarter, we expect to generate earnings per share of $0.58 to $0.60. In fiscal 2007, we plan to continue expansion of our store base by opening approximately 100 new EZMONEY stores and several additional Mexico locations."

On November 3, 2006, the Company's Board of Directors declared a three- for-one stock split of its two classes of common stock to shareholders of record as of the close of business on November 27, 2006. Shares resulting from the stock split are expected to be distributed on or about December 11, 2006. All share and per share figures disclosed in this announcement are presented before the stock split.

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 open on September 30, 2006, 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 334 EZMONEY locations open on September 30, 2006 and 82 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 9, 2006 at 3:30pm Central Time. The conference call can be accessed over the Internet (or replayed at your convenience) at the following address.

             http://www.videonewswire.com/event.asp?id=36178

  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,
                                                 2006              2005
   1  Revenues:
   2      Merchandise sales                    $30,022           $27,538
   3      Jewelry scrapping sales               16,804            13,295
   4      Pawn service charges                  18,337            16,201
   5      Payday loan service charges            1,787             2,605
   6      Credit service fees                   20,104            13,246
   7      Other                                    301               298
   8          Total revenues                    87,355            73,183
   9  Cost of goods sold:
   10     Cost of merchandise sales             18,044            16,162
   11     Cost of jewelry scrapping
           sales                                11,133            10,281
   12         Total cost of goods sold          29,177            26,443
   13 Net revenues                              58,178            46,740
   14
   15 Operations expense                        29,487            25,492
   16 Payday loan bad debt and direct
       transaction expenses                        768             1,291
   17 Credit service bad debt and
       direct transaction expenses               5,223             6,395
   18 Administrative expense                     7,402             5,898
   19 Depreciation and amortization              2,208             2,088
   20     Operating income                      13,090             5,576
   21
   22 Interest expense (income), net              (192)              359
   23 Equity in net income of
       unconsolidated affiliate                   (688)             (572)
   24 Loss on sale/disposal of assets               55               ---
   25 Income before income taxes                13,915             5,789
   26 Income tax expense                         4,747             2,084
   27 Net income                                $9,168            $3,705
   28
   29 Net income per share, diluted              $0.64             $0.27
   30
   31 Weighted average shares, diluted          14,303            13,740



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

                                                 Year Ended September 30,
                                                  2006              2005
   1  Revenues:
   2      Merchandise sales                     $134,326          $118,951
   3      Jewelry scrapping sales                 43,098            29,459
   4      Pawn service charges                    65,325            62,274
   5      Payday loan service charges              5,389            28,954
   6      Credit service fees                     66,451            13,246
   7      Other                                    1,263             1,275
   8          Total revenues                     315,852           254,159
   9  Cost of goods sold:
   10     Cost of merchandise sales               78,459            68,680
   11     Cost of jewelry scrapping
           sales                                  28,414            21,998
   12         Total cost of goods sold           106,873            90,678
   13 Net revenues                               208,979           163,481
   14
   15 Operations expense                         111,110            95,876
   16 Payday loan bad debt and direct
       transaction expenses                        2,525             7,808
   17 Credit service bad debt and
       direct transaction expenses                16,000             6,395
   18 Administrative expense                      27,749            23,067
   19 Depreciation and amortization                8,610             8,104
   20     Operating income                        42,985            22,231
   21
   22 Interest expense (income), net                 (79)            1,275
   23 Equity in net income of
       unconsolidated affiliate                   (2,433)           (2,173)
   24 (Gain) loss on sale/disposal of
       assets                                         (7)               79
   25 Income before income taxes                  45,504            23,050
   26 Income tax expense                          16,245             8,298
   27 Net income                                 $29,259           $14,752
   28
   29 Net income per share, diluted                $2.08             $1.09
   30
   31 Weighted average shares, diluted            14,088            13,574



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

                                                     As of September 30,
                                                   2006             2005
   1  Assets:
   2    Current assets:
   3      Cash and cash equivalents              $29,939            $4,168
   4      Pawn loans                              50,304            52,864
   5      Payday loans, net                        2,443             1,634
   6      Pawn service charges receivable,
           net                                     8,234             9,492
   7      Payday loan service charges
           receivable, net                           426               272
   8      Credit service fees receivable,
           net                                     3,954             3,007
   9      Inventory, net                          35,616            30,293
   10     Deferred tax asset                       7,150            10,534
   11     Federal income taxes receivable             35               ---
   12     Prepaid expenses and other assets        3,907             1,998
   13         Total current assets               142,008           114,262
   14   Investment in unconsolidated
         affiliate                                18,920            17,348
   15   Property and equipment, net               29,447            26,964
   16   Deferred tax asset, non-current            3,749             4,012
   17   Other assets, net                          3,379             2,862
   18         Total assets                      $197,503          $165,448
   19 Liabilities and stockholders'
       equity:
   20   Current liabilities:
   21     Accounts payable and other
           accrued expenses                      $22,579           $18,988
   22     Customer layaway deposits                1,890             1,672
   23     Federal income taxes payable               ---               648
   24         Total current liabilities           24,469            21,308
   25
   26   Long-term debt                               ---             7,000
   27   Deferred gains and other long-
         term liabilities                          3,249             3,597
   28         Total long-term liabilities          3,249            10,597
   29 Total stockholders' equity                 169,785           133,543
   30         Total liabilities and
               stockholders' equity             $197,503          $165,448
   31
   32 Pawn loan balance per ending pawn store       $180              $189
   33 Inventory per ending pawn store               $127              $108
   34 Book value per share                        $12.58            $10.39
   35 Tangible book value per share               $12.37            $10.21
   36 Pawn store count - end of period               280               280
   37 Mono-line payday loan store count
       - end of period                               334               234
   38 Shares outstanding - end of
       period                                     13,495            12,859

FCMN Contact: sharon_lemond@ezcorp.com

Audio: http://www.videonewswire.com/event.asp?id=36178

SOURCE: EZCORP, Inc.

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

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

Categories: Press Releases
View all Investor News