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EZCORP Continues Robust Earnings Growth

Jan 20, 2011

- All Segments Post Double-Digit Operating Income Gains

AUSTIN, Texas, Jan. 20, 2011 /PRNewswire/ -- EZCORP, Inc. (Nasdaq: EZPW), a leading provider of specialty consumer financial services, today announced results for its first fiscal quarter ended December 31, 2010. Highlights include:

    --  Non-GAAP earnings per share of $0.69, up 33% over prior year quarter;
        GAAP earnings per share of $0.55, up 6% over prior year quarter.
    --  Non-GAAP net income of $34.5 million, up 34%; GAAP net income of $27.4
        million, up 7%.
    --  Total revenues of $218.8 million, up 18% over prior year quarter.
    --  Non-GAAP consolidated operating income of $50.3 million (38% of net
        revenue), up 29% over prior year quarter; GAAP consolidated operating
        income of $39.4 million (29% of net revenue), up 1% over prior year
        quarter.
    --  Store level operating income up $11.6 million in U.S. Pawn, $1.6 million
        in Empeno Facil and $1.8 million in EZMONEY.
    --  Pre-tax contribution from strategic affiliates of $3.4 million, up from
        $1.3 million in prior year quarter.

(Logo: http://photos.prnewswire.com/prnh/20090713/EZCORPLOGO)

Non-GAAP results exclude a previously announced one-time charge related to the retirement of the Company's former Chief Executive Officer.

Commenting on these results, President and Chief Executive Officer, Paul Rothamel, stated, "We are excited to get the new fiscal year off to a great start, with 13% same store revenue growth and all segments posting double-digit operating income growth. Accentuating the ability to leverage our expense structure through increased scale, our team members turned an 18% total revenue increase into a 34% growth in net income excluding the one-time charge."

Rothamel added, "Our geographic diversification continued this quarter with 29 new stores in Mexico, Canada and domestic areas outside Texas. As a benefit of this diversification and continued growth in our newer products, U.S. payday lending, while remaining strong, now represents 16% of our total revenues compared to 20% a year ago."

The Company also announced that it expects fiscal 2011 earnings per share, excluding the one-time charge described above, to increase 22% year-over-year to $2.40 ($2.26 on a GAAP basis). This is an increase from its previous estimate of $2.35 per share ($2.21 on a GAAP basis).

About EZCORP

EZCORP is a leading provider of specialty consumer financial services. It provides collateralized non-recourse loans, commonly known as pawn loans, and a variety of short-term consumer loans, including payday loans, installment loans and auto title loans, or fee-based credit services to customers seeking loans. At its pawn stores, the company also sells merchandise, primarily collateral forfeited from its pawn lending operations.

EZCORP operates more than 1,000 stores, including over 500 pawn stores in the U.S. and Mexico and over 500 short-term consumer loan stores in the U.S. and Canada. The company also has significant investments in Albemarle & Bond Holdings PLC (ABM.L), one of the U.K.'s largest pawnbroking businesses with over 130 stores, and Cash Converters International Limited (CCV.L and CCV.AUS), which franchises and operates a worldwide network of over 500 stores that provide financial services and sell pre-owned merchandise.

Special Note Regarding Forward-Looking Statements

This announcement contains certain forward-looking statements regarding the Company's expected operating and financial performance for future periods, including expected future earnings. These statements are based on the Company's current expectations. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including changing market conditions in the overall economy and the industry, consumer demand for the Company's services and merchandise, actions of third parties who offer services and products in the Company's locations and changes in the regulatory environment. For a discussion of these and other factors affecting the Company's business and prospects, see the Company's annual, quarterly and other reports filed with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company has provided non-GAAP net income, non-GAAP consolidated operating income and non-GAAP earnings per share for the current period, as well as non-GAAP expected earnings per share for fiscal 2011. The only difference between the presented non-GAAP measures and the most closely comparable GAAP measures is the exclusion of a one-time charge related to the retirement of the Company's former Chief Executive Officer and the related tax benefit. The Company's management uses these non-GAAP financial measures to understand the Company's financial performance from period to period. Management does not believe that the excluded one-time charge is reflective of underlying operating performance. The non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the corresponding GAAP measures, but rather are provided to facilitate an enhanced understanding of the Company's actual and expected performance and to enable more meaningful period-to-period comparisons. A reconciliation of the non-GAAP financial measures to the most closely comparable GAAP financial measures is provided in the accompanying financial schedules.

For additional information, contact Investor Relations at (512) 314-2220.

                                         EZCORP, Inc.
               Highlights of Consolidated Statements of Operations (Unaudited)
                      (in thousands, except per share data and percents)
                                              Three Months Ended
                                                 December 31,
                                               ------------------
                                           2010                2009
                                           ----                ----
      Revenues:
          Merchandise sales             $67,730             $62,476
          Jewelry scrapping sales        50,665              37,442
          Pawn service charges           49,810              40,797
          Signature loan fees            40,066              38,678
          Auto title loan fees            6,244               3,102
          Other                           4,311               2,256
              Total revenues            218,826             184,751
      Cost of goods sold:
          Cost of merchandise sales      41,311              39,264
          Cost of jewelry scrapping
           sales                         32,255              23,306
                                         ------              ------
              Total cost of goods sold   73,566              62,570
      Bad debt:
          Signature loan bad debt        10,046               8,790
          Auto title loan bad debt          982                 460
                                            ---                 ---
              Total bad debt             11,028               9,250
                                         ------               -----
      Net revenue                       134,232             112,931

      Operations expense                 64,504              58,181
      Administrative expense             26,138              12,297
      Depreciation and
       amortization                       4,179               3,356
      Loss on sale/disposal of
       assets                                 7                 211
                                            ---                 ---
          Operating income               39,404              38,886

      Interest income                        (3)                 (8)
      Interest expense                      300                 365
      Equity in net income of
       unconsolidated affiliates        (3,367)              (1,283)
      Other                                 (61)                (15)
      Income before income taxes         42,535              39,827
      Income tax expense                 15,106              14,120
                                         ------              ------
      Net income                        $27,429             $25,707
                                        =======             =======

      Net income per share,
       diluted                            $0.55               $0.52
                                          =====               =====
      Weighted average shares,
       diluted                           50,119              49,400



      OTHER DATA:
      -----------
      Gross margin on
       merchandise sales                   39.0%               37.2%
      Gross margin on jewelry
       scrapping sales                     36.3%               37.8%
      Gross margin on total
       sales                               37.9%               37.4%

      Signature loan bad debt as
       percent of fees                     25.1%               22.7%
      Auto title loan bad debt
       as percent of fees                  15.7%               14.8%

      Annualized inventory
       turnover                             3.8                 3.7

      Operating income margin              29.4%               34.4%

                                         Increase        Percent
                                         (Decrease)      Change
                                         ----------      ------
      Revenues:
          Merchandise sales                  $5,254          8.4
          Jewelry scrapping sales            13,223         35.3
          Pawn service charges                9,013         22.1
          Signature loan fees                 1,388          3.6
          Auto title loan fees                3,142        101.3
          Other                               2,055         91.1
              Total revenues                 34,075         18.4
      Cost of goods sold:
          Cost of merchandise sales           2,047          5.2
          Cost of jewelry scrapping
           sales                              8,949         38.4
                                              -----         ----
              Total cost of goods sold       10,996         17.6
      Bad debt:
          Signature loan bad debt             1,256         14.3
          Auto title loan bad debt              522        113.5
                                                ---        -----
              Total bad debt                  1,778         19.2
                                              -----         ----
      Net revenue                            21,301         18.9

      Operations expense                      6,323         10.9
      Administrative expense                 13,841        112.6
      Depreciation and
       amortization                             823         24.5
      Loss on sale/disposal of
       assets                                  (204)       (96.7)
                                               ----        -----
          Operating income                      518          1.3

      Interest income                             5        (62.5)
      Interest expense                          (65)       (17.8)
      Equity in net income of
       unconsolidated affiliates             (2,084)       162.4
      Other                                     (46)           -
      Income before income taxes              2,708          6.8
      Income tax expense                        986          7.0
                                                ---          ---
      Net income                             $1,722          6.7
                                             ======          ===

      Net income per share,
       diluted                                $0.03          5.7
                                              =====          ===
      Weighted average shares,
       diluted

                                               Amount or
                                           Percentage Point
                                                 (ppt)
                                                Increase
      OTHER DATA:                              (Decrease)
      -----------                             -----------
      Gross margin on
       merchandise sales                        1.8      ppts
      Gross margin on jewelry
       scrapping sales                         (1.5)     ppts
      Gross margin on total
       sales                                    0.5      ppts

      Signature loan bad debt as
       percent of fees                          2.4      ppts
      Auto title loan bad debt
       as percent of fees                       0.9      ppts

      Annualized inventory
       turnover                                 0.1

      Operating income margin                  (5.0)     ppts

                           EZCORP, Inc.
      Highlights of Consolidated Balance Sheets (Unaudited)
      (in thousands, except per share data and store counts)
      ------------------------------------------------------
                                                December 31,
                                              2010         2009
                                              ----         ----
    Assets:
      Current assets:
        Cash and cash equivalents          $23,908      $17,032
        Pawn loans                         124,388      103,446
        Signature loans, net                11,953        8,934
        Auto title loans, net                3,307        2,110
        Pawn service charges receivable,
         net                                24,068       19,662
        Signature loan fees receivable,
         net                                 6,141        6,044
        Auto title loan fees receivable,
         net                                 1,600          827
        Inventory, net                      77,677       63,515
        Deferred tax asset                  23,248       15,671
        Prepaid expenses and other
         assets                             20,724       20,654
             Total current assets          317,014      257,895

      Investments in unconsolidated
       affiliates                          108,959       90,455
      Property and equipment, net           66,641       52,378
      Deferred tax asset, non-current            -        5,011
      Goodwill                             128,181      101,134
      Other assets, net                     24,252       19,931
           Total assets                   $645,047     $526,804
                                          ========     ========
    Liabilities and stockholders'
     equity:
      Current liabilities:
        Current maturities of long-term
         debt                              $10,000      $10,000
        Accounts payable and other
         accrued expenses                   48,986       39,692
        Customer layaway deposits            5,950        2,697
        Federal income taxes payable         5,267        6,480
             Total current liabilities      70,203       58,869

      Long-term debt, less current
       maturities                           12,500       22,500
      Deferred tax liability                 1,619            -
      Deferred gains and other long-
       term liabilities                      2,419        2,840
      Total stockholders' equity           558,306      442,595
                                           -------      -------
           Total liabilities and
            stockholders' equity          $645,047     $526,804
                                          ========     ========

    Pawn loan balance per ending
     pawn store                               $236         $235
    Inventory per ending pawn store           $147         $144
    Book value per share                    $11.18        $9.08
    Tangible book value per share            $8.29        $6.68
    Pawn store count - end of period           528          440
    Signature loan store count -end
     of period                                 504          480
    Shares outstanding -end of
     period                                 49,923       48,732

                                               EZCORP, Inc.
                                  Operating Segment Results (Unaudited)
                             (in thousands, except store counts and percents)
                             U.S. Pawn   Empeno      EZMONEY
    Three months
     ended December
     31, 2010:              Operations   Facil     Operations   Consolidated
                            ----------   -----     ----------   ------------
      Revenues:
        Merchandise Sales       $62,341    $5,389           $-       $67,730
        Scrap Sales              47,006     3,462          197        50,665
        Pawn service
         charges                 46,436     3,374            -        49,810
        Signature loan
         fees                       509         -       39,557        40,066
        Auto title loan
         fees                       393         -        5,851         6,244
        Other                     4,081       189           41         4,311
            Total revenues      160,766    12,414       45,646       218,826

      Merchandise cost
       of goods sold             38,197     3,114            -        41,311
      Scrap cost of
       goods sold                29,538     2,638           79        32,255
      Signature loan
       bad debt                     165         -        9,881        10,046
      Auto title loan
       bad debt                      61         -          921           982
                                    ---       ---          ---           ---
            Net revenues         92,805     6,662       34,765       134,232

      Operations
       expense                   43,196     4,278       17,030        64,504
                                 ------     -----       ------        ------
            Store operating
             income             $49,609    $2,384      $17,735       $69,728
                                =======    ======      =======       =======

      Gross margin on
       merchandise
       sales                       38.7%     42.2%         N/A          39.0%
      Gross margin on
       scrap sales                 37.2%     23.8%        59.9%         36.3%
      Gross margin on
       total sales                 38.1%     35.0%        59.9%         37.9%
      Annualized
       inventory
       turnover                     3.7       4.1          N/A           3.8
      Signature loan
       bad debt as
       percent of fees             32.4%      N/A         25.0%         25.1%
      Auto title loan
       bad debt as
       percent of fees             15.5%      N/A         15.7%         15.7%
      Store operating
       income margin               53.5%     35.8%        51.0%         51.9%
      Pawn store count
       -end of period               396       132            -           528
      Signature loan
       store count -
       end of period                  6         -          498           504


    Three months
     ended December
     31, 2009:
      Revenues:
        Merchandise Sales       $59,211    $3,265           $-       $62,476
        Scrap Sales              36,823       607           12        37,442
        Pawn service
         charges                 38,941     1,856            -        40,797
        Signature loan
         fees                       553         -       38,125        38,678
        Auto title loan
         fees                       475         -        2,627         3,102
        Other                     2,167        89            -         2,256
            Total revenues      138,170     5,817       40,764       184,751

      Merchandise cost
       of goods sold             36,906     2,358            -        39,264
      Scrap cost of
       goods sold                22,824       475            7        23,306
      Signature loan
       bad debt                     186         -        8,604         8,790
      Auto title loan
       bad debt                      70         -          390           460
                                    ---       ---          ---           ---
            Net revenues         78,184     2,984       31,763       112,931

      Operations
       expense                   40,199     2,164       15,818        58,181
                                 ------     -----       ------        ------
            Store operating
             income             $37,985      $820      $15,945       $54,750
                                =======      ====      =======       =======

      Gross margin on
       merchandise
       sales                       37.7%     27.8%         N/A          37.2%
      Gross margin on
       scrap sales                 38.0%     21.7%        41.7%         37.8%
      Gross margin on
       total sales                 37.8%     26.8%        41.7%         37.4%
      Annualized
       inventory
       turnover                     3.7       3.9          N/A           3.7
      Signature loan
       bad debt as
       percent of fees             33.6%      N/A         22.6%         22.7%
      Auto title loan
       bad debt as
       percent of fees             14.7%      N/A         14.8%         14.8%
      Store operating
       income margin               48.6%     27.5%        50.2%         48.5%
      Pawn store count
       -end of period               370        70            -           440
      Signature loan
       store count -
       end of period                  6         -          474           480

    Supplemental Non-GAAP Financial Measures
    The following tables provide a reconciliation of the differences between
     the reported or projected non-GAAP financial measures for the periods
     indicated and the most comparable GAAP financial measures.  The non-GAAP
     financial measures presented may not be directly comparable to similarly
     titled measures reported by other companies and their usefulness for such
     purposes are therefore limited.  EZCORP management believes presentation
     of the Non-GAAP financial measures enhances investors' ability to analyze
     the Company's operating results.  However, non-GAAP financial measures
     are not an alternative to GAAP financial measures and should be read only
     in conjunction with financial measures presented on a GAAP basis.

                                    EZCORP, Inc.
             Reconciliation of Non-GAAP Consolidated Financial Measures
                                     (Unaudited)
                 (in thousands, except per share data and percents)
                                 Three Months Ended December 31, 2010
                                 ------------------------------------
                                               Non-GAAP
                                GAAP          Adjustments       Non-GAAP
                                ----          -----------       --------

    Net revenue                 134,232                 -         134,232

    Operations expense           64,504                 -          64,504
    Administrative expense       26,138           (10,945)         15,193
    Depreciation and
     amortization                 4,179                 -           4,179
    Loss on sale/disposal
     of assets                        7                 -               7
                                    ---               ---             ---
        Operating income         39,404            10,945          50,349

    Interest income                  (3)                -              (3)
    Interest expense                300                 -             300
    Equity in net income of
     unconsolidated
     affiliates                  (3,367)                -          (3,367)
    Other                           (61)                -             (61)
    Income before income
     taxes                       42,535            10,945          53,480
    Income tax expense           15,106             3,831          18,937
                                 ------             -----          ------
    Net income                  $27,429            $7,114         $34,543
                                =======            ======         =======

    Net income per share,
     diluted                      $0.55             $0.14           $0.69
                                  =====             =====           =====
    Weighted average shares,
     diluted                     50,119                 -          50,119



                                Projected Year Ending September 30,
                                                    2011
                                   ------------------------------------
                             Projected         Non-GAAP        Projected
                                GAAP          Adjustments       Non-GAAP
                                ----          -----------       --------

    Net income per share,
     diluted                      $2.26             $0.14           $2.40
                                  =====             =====           =====

SOURCE EZCORP, Inc.

Photo:http://photos.prnewswire.com/prnh/20090713/EZCORPLOGO
http://photoarchive.ap.org/

 

SOURCE: EZCORP, Inc.

 

EZCORP Continues Robust Earnings Growth - All Segments Post Double-Digit Operating Income Gains

PR Newswire

AUSTIN, Texas, Jan. 20, 2011 /PRNewswire/ -- EZCORP, Inc. (Nasdaq: EZPW), a leading provider of specialty consumer financial services, today announced results for its first fiscal quarter ended December 31, 2010.  Highlights include:

  • Non-GAAP earnings per share of $0.69, up 33% over prior year quarter; GAAP earnings per share of $0.55, up 6% over prior year quarter.
  • Non-GAAP net income of $34.5 million, up 34%; GAAP net income of $27.4 million, up 7%.
  • Total revenues of $218.8 million, up 18% over prior year quarter.
  • Non-GAAP consolidated operating income of $50.3 million (38% of net revenue), up 29% over prior year quarter; GAAP consolidated operating income of $39.4 million (29% of net revenue), up 1% over prior year quarter.
  • Store level operating income up $11.6 million in U.S. Pawn, $1.6 million in Empeno Facil and $1.8 million in EZMONEY.
  • Pre-tax contribution from strategic affiliates of $3.4 million, up from $1.3 million in prior year quarter.

(Logo:  http://photos.prnewswire.com/prnh/20090713/EZCORPLOGO)

Non-GAAP results exclude a previously announced one-time charge related to the retirement of the Company's former Chief Executive Officer.

Commenting on these results, President and Chief Executive Officer, Paul Rothamel, stated, "We are excited to get the new fiscal year off to a great start, with 13% same store revenue growth and all segments posting double-digit operating income growth.  Accentuating the ability to leverage our expense structure through increased scale, our team members turned an 18% total revenue increase into a 34% growth in net income excluding the one-time charge."

Rothamel added, "Our geographic diversification continued this quarter with 29 new stores in Mexico, Canada and domestic areas outside Texas.  As a benefit of this diversification and continued growth in our newer products, U.S. payday lending, while remaining strong, now represents 16% of our total revenues compared to 20% a year ago."

The Company also announced that it expects fiscal 2011 earnings per share, excluding the one-time charge described above, to increase 22% year-over-year to $2.40 ($2.26 on a GAAP basis).  This is an increase from its previous estimate of $2.35 per share ($2.21 on a GAAP basis).

About EZCORP

EZCORP is a leading provider of specialty consumer financial services.  It provides collateralized non-recourse loans, commonly known as pawn loans, and a variety of short-term consumer loans, including payday loans, installment loans and auto title loans, or fee-based credit services to customers seeking loans.  At its pawn stores, the company also sells merchandise, primarily collateral forfeited from its pawn lending operations.

EZCORP operates more than 1,000 stores, including over 500 pawn stores in the U.S. and Mexico and over 500 short-term consumer loan stores in the U.S. and Canada.  The company also has significant investments in Albemarle & Bond Holdings PLC (ABM.L), one of the U.K.'s largest pawnbroking businesses with over 130 stores, and Cash Converters International Limited (CCV.L and CCV.AUS), which franchises and operates a worldwide network of over 500 stores that provide financial services and sell pre-owned merchandise.

Special Note Regarding Forward-Looking Statements

This announcement contains certain forward-looking statements regarding the Company's expected operating and financial performance for future periods, including expected future earnings.  These statements are based on the Company's current expectations.  Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including changing market conditions in the overall economy and the industry, consumer demand for the Company's services and merchandise, actions of third parties who offer services and products in the Company's locations and changes in the regulatory environment.  For a discussion of these and other factors affecting the Company's business and prospects, see the Company's annual, quarterly and other reports filed with the Securities and Exchange Commission.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles (GAAP), the Company has provided non-GAAP net income, non-GAAP consolidated operating income and non-GAAP earnings per share for the current period, as well as non-GAAP expected earnings per share for fiscal 2011.  The only difference between the presented non-GAAP measures and the most closely comparable GAAP measures is the exclusion of a one-time charge related to the retirement of the Company's former Chief Executive Officer and the related tax benefit.  The Company's management uses these non-GAAP financial measures to understand the Company's financial performance from period to period.  Management does not believe that the excluded one-time charge is reflective of underlying operating performance.  The non-GAAP financial measures are not meant to be considered in isolation or as a substitute for the corresponding GAAP measures, but rather are provided to facilitate an enhanced understanding of the Company's actual and expected performance and to enable more meaningful period-to-period comparisons.  A reconciliation of the non-GAAP financial measures to the most closely comparable GAAP financial measures is provided in the accompanying financial schedules.

For additional information, contact Investor Relations at (512) 314-2220.

EZCORP, Inc.

Highlights of Consolidated Statements of Operations (Unaudited)

(in thousands, except per share data and percents)





















Three Months Ended December 31,


Increase


Percent



2010


2009


(Decrease)


Change


Revenues:









   Merchandise sales

$ 67,730


$ 62,476


$       5,254


8.4


   Jewelry scrapping sales

50,665


37,442


13,223


35.3


   Pawn service charges

49,810


40,797


9,013


22.1


   Signature loan fees

40,066


38,678


1,388


3.6


   Auto title loan fees

6,244


3,102


3,142


101.3


   Other

4,311


2,256


2,055


91.1


       Total revenues

218,826


184,751


34,075


18.4


Cost of goods sold:









   Cost of merchandise sales

41,311


39,264


2,047


5.2


   Cost of jewelry scrapping sales

32,255


23,306


8,949


38.4


       Total cost of goods sold

73,566


62,570


10,996


17.6


Bad debt:









   Signature loan bad debt

10,046


8,790


1,256


14.3


   Auto title loan bad debt

982


460


522


113.5


       Total bad debt

11,028


9,250


1,778


19.2


Net revenue

134,232


112,931


21,301


18.9











Operations expense

64,504


58,181


6,323


10.9


Administrative expense

26,138


12,297


13,841


112.6


Depreciation and amortization

4,179


3,356


823


24.5


Loss on sale/disposal of assets

7


211


(204)


(96.7)


   Operating income

39,404


38,886


518


1.3











Interest income

(3)


(8)


5


(62.5)


Interest expense

300


365


(65)


(17.8)


Equity in net income of unconsolidated affiliates

(3,367)


(1,283)


(2,084)


162.4


Other

(61)


(15)


(46)


-


Income before income taxes

42,535


39,827


2,708


6.8


Income tax expense

15,106


14,120


986


7.0


Net income

$ 27,429


$ 25,707


$       1,722


6.7











Net income per share, diluted

$     0.55


$     0.52


$         0.03


5.7


Weighted average shares, diluted

50,119


49,400




















Amount or







Percentage Point (ppt)


OTHER DATA:





Increase (Decrease)


Gross margin on merchandise sales

39.0%


37.2%


1.8


ppts


Gross margin on jewelry scrapping sales

36.3%


37.8%


(1.5)


ppts


Gross margin on total sales

37.9%


37.4%


0.5


ppts











Signature loan bad debt as percent of fees

25.1%


22.7%


2.4


ppts


Auto title loan bad debt as percent of fees

15.7%


14.8%


0.9


ppts











Annualized inventory turnover

3.8


3.7


0.1













Operating income margin

29.4%


34.4%


(5.0)


ppts



EZCORP, Inc.

Highlights of Consolidated Balance Sheets (Unaudited)

(in thousands, except per share data and store counts)










December 31,


2010


2009

Assets:




Current assets:




Cash and cash equivalents

$   23,908


$   17,032

Pawn loans

124,388


103,446

Signature loans, net

11,953


8,934

Auto title loans, net

3,307


2,110

Pawn service charges receivable, net

24,068


19,662

Signature loan fees receivable, net

6,141


6,044

Auto title loan fees receivable, net

1,600


827

Inventory, net

77,677


63,515

Deferred tax asset

23,248


15,671

Prepaid expenses and other assets

20,724


20,654

   Total current assets

317,014


257,895





Investments in unconsolidated affiliates

108,959


90,455

Property and equipment, net

66,641


52,378

Deferred tax asset, non-current

-


5,011

Goodwill

128,181


101,134

Other assets, net

24,252


19,931

Total assets

$ 645,047


$ 526,804

Liabilities and stockholders' equity:




Current liabilities:




Current maturities of long-term debt

$   10,000


$   10,000

Accounts payable and other accrued expenses

48,986


39,692

Customer layaway deposits

5,950


2,697

Federal income taxes payable

5,267


6,480

   Total current liabilities

70,203


58,869





Long-term debt, less current maturities

12,500


22,500

Deferred tax liability

1,619


-

Deferred gains and other long-term liabilities

2,419


2,840

Total stockholders' equity

558,306


442,595

Total liabilities and stockholders' equity

$ 645,047


$ 526,804





Pawn loan balance per ending pawn store

$        236


$        235

Inventory per ending pawn store

$        147


$        144

Book value per share

$     11.18


$       9.08

Tangible book value per share

$       8.29


$       6.68

Pawn store count - end of period

528


440

Signature loan store count - end of period

504


480

Shares outstanding - end of period

49,923


48,732



EZCORP, Inc.

Operating Segment Results (Unaudited)

(in thousands, except store counts and percents)
























U.S. Pawn


Empeno


EZMONEY



Three months ended December 31, 2010:

Operations


Facil


Operations


Consolidated


Revenues:










Merchandise Sales

$          62,341


$            5,389


$                 -


$          67,730



Scrap Sales

47,006


3,462


197


50,665



Pawn service charges

46,436


3,374


-


49,810



Signature loan fees

509


-


39,557


40,066



Auto title loan fees

393


-


5,851


6,244



Other

4,081


189


41


4,311



   Total revenues

160,766


12,414


45,646


218,826












Merchandise cost of goods sold

38,197


3,114


-


41,311


Scrap cost of goods sold

29,538


2,638


79


32,255


Signature loan bad debt

165


-


9,881


10,046


Auto title loan bad debt

61


-


921


982



   Net revenues

92,805


6,662


34,765


134,232












Operations expense

43,196


4,278


17,030


64,504



   Store operating income

$          49,609


$            2,384


$          17,735


$          69,728












Gross margin on merchandise sales

38.7%


42.2%


N/A


39.0%


Gross margin on scrap sales

37.2%


23.8%


59.9%


36.3%


Gross margin on total sales

38.1%


35.0%


59.9%


37.9%


Annualized inventory turnover

3.7


4.1


N/A


3.8


Signature loan bad debt as percent of fees

32.4%


N/A


25.0%


25.1%


Auto title loan bad debt as percent of fees

15.5%


N/A


15.7%


15.7%


Store operating income margin

53.5%


35.8%


51.0%


51.9%


Pawn store count - end of period

396


132


-


528


Signature loan store count - end of period

6


-


498


504





















Three months ended December 31, 2009:









Revenues:










Merchandise Sales

$          59,211


$            3,265


$                 -


$          62,476



Scrap Sales

36,823


607


12


37,442



Pawn service charges

38,941


1,856


-


40,797



Signature loan fees

553


-


38,125


38,678



Auto title loan fees

475


-


2,627


3,102



Other

2,167


89


-


2,256



   Total revenues

138,170


5,817


40,764


184,751












Merchandise cost of goods sold

36,906


2,358


-


39,264


Scrap cost of goods sold

22,824


475


7


23,306


Signature loan bad debt

186


-


8,604


8,790


Auto title loan bad debt

70


-


390


460



   Net revenues

78,184


2,984


31,763


112,931












Operations expense

40,199


2,164


15,818


58,181



   Store operating income

$          37,985


$               820


$          15,945


$          54,750












Gross margin on merchandise sales

37.7%


27.8%


N/A


37.2%


Gross margin on scrap sales

38.0%


21.7%


41.7%


37.8%


Gross margin on total sales

37.8%


26.8%


41.7%


37.4%


Annualized inventory turnover

3.7


3.9


N/A


3.7


Signature loan bad debt as percent of fees

33.6%


N/A


22.6%


22.7%


Auto title loan bad debt as percent of fees

14.7%


N/A


14.8%


14.8%


Store operating income margin

48.6%


27.5%


50.2%


48.5%


Pawn store count - end of period

370


70


-


440


Signature loan store count - end of period

6


-


474


480



Supplemental Non-GAAP Financial Measures

The following tables provide a reconciliation of the differences between the reported or projected non-GAAP financial measures for the periods indicated and the most comparable GAAP financial measures.  The non-GAAP financial measures presented may not be directly comparable to similarly titled measures reported by other companies and their usefulness for such purposes are therefore limited.  EZCORP management believes presentation of the Non-GAAP financial measures enhances investors' ability to analyze the Company's operating results.  However, non-GAAP financial measures are not an alternative to GAAP financial measures and should be read only in conjunction with financial measures presented on a GAAP basis.



EZCORP, Inc.

Reconciliation of Non-GAAP Consolidated Financial Measures (Unaudited)

(in thousands, except per share data and percents)














Three Months Ended December 31, 2010




Non-GAAP




GAAP


Adjustments


Non-GAAP







Net revenue

134,232


-


134,232







Operations expense

64,504


-


64,504

Administrative expense

26,138


(10,945)


15,193

Depreciation and amortization

4,179


-


4,179

Loss on sale/disposal of assets

7


-


7

   Operating income

39,404


10,945


50,349







Interest income

(3)


-


(3)

Interest expense

300


-


300

Equity in net income of unconsolidated affiliates

(3,367)


-


(3,367)

Other

(61)


-


(61)

Income before income taxes

42,535


10,945


53,480

Income tax expense

15,106


3,831


18,937

Net income

$         27,429


$           7,114


$         34,543







Net income per share, diluted

$             0.55


$             0.14


$             0.69

Weighted average shares, diluted

50,119


-


50,119




















Projected Year Ending September 30, 2011


Projected


Non-GAAP


Projected


GAAP


Adjustments


Non-GAAP







Net income per share, diluted

$             2.26


$             0.14


$             2.40



SOURCE EZCORP, Inc.

CONTACT: Investor Relations of EZCORP, Inc., +1-512-314-2220

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

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