UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

EZCORP, INC.

(Exact name of registrant as specified in its charter)

DELAWARE		0-19424		74-2540145
(State or other jurisdiction of		(Commission File		(I.R.S. Employer
incorporation)		Number)		Identification No.)

1901 CAPITAL PARKWAY
AUSTIN, TEXAS		78746
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:

(512) 314-3400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

This information set forth under “Item 2.02. Results Of Operations And Financial Condition,” including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

On April 23, 2009, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the quarter and six-month period ended March 31, 2009. A copy of the press release is attached hereto as Exhibit 99.1.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

99.1

Press release dated April 23, 2009, issued by EZCORP, Inc.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EZCORP, INC.
(Registrant)

EXHIBIT INDEX

99.1

Press release dated April 23, 2009, issued by EZCORP, Inc.

EXHIBIT 99.1

EZCORP INCOME INCREASES 41% IN MARCH QUARTER

AUSTIN, Texas (April 23, 2009) — EZCORP, Inc. (Nasdaq: EZPW) announced today results for its fiscal second quarter and six-month period ended March 31, 2009.

EZCORP’s net income for the quarter ended March 31, 2009 increased 41% to $18,320,000 ($0.37 per share) compared to $13,016,000 ($0.30 per share) for the quarter ended March 31, 2008. Total revenues for the quarter increased 38% over the prior year period to $156,266,000 with pawn service charges up 54%, total sales (merchandise and jewelry scrapping) up 45%, and signature loan revenues (payday loan and credit service fees) up 5%.

Consolidated operating income improved 40% to $27,690,000 (29% of net revenues) from $19,712,000 (28% of net revenues) in the prior year quarter. The Company’s U.S. pawn operations contributed $6,574,000 of the improvement and EZMONEY operations contributed $2,157,000, partially offset by an increase in administrative costs. Operating income from the 45-store Empeño Fácil pawn segment increased 34% in Mexican pesos, but was relatively flat after translation to a stronger U.S. dollar.

The 78 pawn stores acquired in the December quarter contributed total revenues of $36,725,000, operating income of $4,881,000, and net income of $2,896,000. The acquired stores contributed approximately $0.02 earnings per share after the effect of shares issued in the acquisitions.

EZCORP’s net income for the six-month period ended March 31, 2009 increased 30% to $33,148,000 ($0.71 per share) compared to $25,571,000 ($0.59 per share) for the prior year six-month period. Operating income for the six months improved 28% to $49,702,000 (29% of net revenues) compared to $38,842,000 (28% of net revenues) for the prior year six-month period.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “Our second quarter was another strong quarter for us, with the 23% increase in earnings per share exceeding our guidance. This is our 27^th consecutive quarter of year over year earnings growth. We ended the quarter with a strong balance sheet reflecting cash in excess of outstanding debt, and an additional $80 million available on our revolving line of credit.”

Rotunda continued, “We are pleased with the contribution from the 78 stores we acquired in November and December. We migrated all acquired stores to our point-of-sale system by March 31 and all administrative functions will be fully integrated by April 30, leading to additional efficiencies and earnings accretion.”

Rotunda concluded, “We expect full-year earnings per share of $1.50 to $1.52 compared to last year’s $1.21, representing an increase of 24% to 26%. We expect our June quarter to be approximately $0.34 for a 36% increase, and the September quarter to be $0.46 to $0.48, or an increase of 24% to 30% over the prior year quarter. We remain on track to open 30 to 35 Mexico pawn locations by fiscal year-end, including the six opened and one acquired year-to-date. We opened fourteen EZMONEY stores year-to-date and closed nine as part of the ongoing analysis of store performance. We expect to open two more EZMONEY stores in the remainder of the fiscal year.”

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 its pawnshops, 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 its signature loan stores and some pawnshops, the Company offers short-term non-collateralized loans, often referred to as payday loans, or fee based credit services to customers seeking loans.

As of March 31, 2009, EZCORP operated a total of 898 locations in the U.S. and Mexico consisting of 371 U.S. pawnshops, 45 pawnshops in Mexico and 482 U.S. signature loan stores.

This announcement contains certain forward-looking statements regarding the Company’s expected operating and financial performance for future periods, including new store expansion, anticipated benefits of acquisitions and 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.

You are invited to listen to a conference call discussing these results on April 23, 2009 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=57864

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 March 31,
						2009				2008
	1			Revenues:
	2			Merchandise sales		$	61,056			$	44,675
	3			Jewelry scrapping sales			27,957				16,655
	4			Pawn service charges			33,516				21,785
	5			Signature loan fees			31,594				30,166
	6			Auto title loan fees			415				—
	7			Other			1,728				344
	8			Total revenues			156,266				113,625
	9			Cost of goods sold:
	10			Cost of merchandise sales			38,125				27,165
	11			Cost of jewelry scrapping sales			18,301				9,566
	12			Total cost of goods sold			56,426				36,731
	13			Bad debt:
	14			Signature loan bad debt			5,072				6,632
	15			Auto title loan bad debt			42				—
	16			Total bad debt			5,114				6,632
	17			Net revenue			94,726				70,262
	18
	19			Operations expense			54,628				38,899
	20			Administrative expense			9,794				8,451
	21			Depreciation and amortization			3,151				3,119
	22			(Gain) / Loss on sale/disposal of assets			(537	)			81
	23			Operating income			27,690				19,712
	24
	25			Interest income			(72	)			(137	)
	26			Interest expense			471				75
	27			Equity in net income of unconsolidated affiliate			(1,371	)			(1,118	)
	28			Other			2				—
	29			Income before income taxes			28,660				20,892
	30			Income tax expense			10,340				7,876
	31			Net income		$	18,320			$	13,016
	32
	33			Net income per share, diluted		$	0.37			$	0.30
	34
	35			Weighted average shares, diluted			49,272				43,228

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

						Six Months Ended March 31,
						2009				2008
	1			Revenues:
	2			Merchandise sales		$	105,851			$	85,174
	3			Jewelry scrapping sales			47,742				31,663
	4			Pawn service charges			59,897				44,693
	5			Signature loan fees			67,594				63,694
	6			Auto title loan fees			636				—
	7			Other			3,161				707
	8			Total revenues			284,881				225,931
	9			Cost of goods sold:
	10			Cost of merchandise sales			65,291				51,416
	11			Cost of jewelry scrapping sales			31,560				18,856
	12			Total cost of goods sold			96,851				70,272
	13			Bad debt:
	14			Signature loan bad debt			14,556				16,302
	15			Auto title loan bad debt			49				—
	16			Total bad debt			14,605				16,302
	17			Net revenue			173,425				139,357
	18
	19			Operations expense			98,122				77,435
	20			Administrative expense			20,205				16,891
	21			Depreciation and amortization			6,217				5,946
	22			(Gain) / Loss on sale/disposal of assets			(821	)			243
	23			Operating income			49,702				38,842
	24
	25			Interest income			(198	)			(194	)
	26			Interest expense			636				156
	27			Equity in net income of unconsolidated affiliate			(2,312	)			(2,165	)
	28			Other			27				—
	29			Income before income taxes			51,549				41,045
	30			Income tax expense			18,401				15,474
	31			Net income		$	33,148			$	25,571
	32
	33			Net income per share, diluted		$	0.71			$	0.59
	34
	35			Weighted average shares, diluted			46,939				43,241

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

						As of March 31,
						2009				2008
	1			Assets:
	2			Current assets:
	3			Cash and cash equivalents		$	55,244			$	35,551
	4			Pawn loans			79,359				56,701
	5			Payday loans, net			6,420				5,290
	6			Pawn service charges receivable, net			14,551				8,983
	7			Auto title loans, net			874				—
	8			Auto title loan finance charges receivable, net			72				—
	9			Signature loan fees receivable, net			4,417				4,781
	10			Inventory, net			56,025				35,999
	11			Deferred tax asset			15,826				9,006
	12			Federal income taxes receivable			495				—
	13			Prepaid expenses and other assets			13,574				7,281
	14			Total current assets			246,857				163,592
	15
	16			Investment in unconsolidated affiliate			34,725				36,904
	17			Property and equipment, net			48,206				38,413
	18			Deferred tax asset, non-current			8,452				5,346
	19			Goodwill			99,008				24,422
	20			Other assets, net			17,533				5,350
	21			Total assets		$	454,781			$	274,027
	22			Liabilities and stockholders’ equity:
	23			Current liabilities:
	24			Current maturities of long-term debt		$	10,000			$	—
	25			Accounts payable and other accrued expenses			30,457				22,202
	26			Customer layaway deposits			4,345				2,456
	27			Federal income taxes payable			—				2,363
	28			Total current liabilities			44,802				27,021
	29
	30			Long-term debt, less current maturities			30,000				—
	31			Deferred gains and other long-term liabilities			3,462				3,003
	32			Total stockholders’ equity			376,517				244,003
	33			Total liabilities and stockholders’ equity		$	454,781			$	274,027
	34
	35			Pawn loan balance per ending pawn store		$	191			$	177
	36			Inventory per ending pawn store		$	135			$	112
	37			Book value per share		$	7.75			$	5.89
	38			Tangible book value per share		$	5.38			$	5.20
	39			Pawn store count — end of period			416				320
	40			Signature loan store count — end of period			482				462
	41			Shares outstanding — end of period			48,597				41,398

EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)

						U.S. Pawn				Empeño				EZMONEY
				Three months ended March 31, 2009:		Operations				Fácil				Operations				Consolidated
	1			Revenues:
	2			Sales		$	86,808			$	2,205			$	—			$	89,013
	3			Pawn service charges			32,265				1,251				—				33,516
	4			Signature loan fees			557				—				31,037				31,594
	5			Auto title loan fees			351				—				64				415
	6			Other			1,727				1				—				1,728
	7			Total revenues			121,708				3,457				31,101				156,266
	8
	9			Cost of goods sold			55,072				1,354				—				56,426
	10			Signature loan bad debt			108				—				4,964				5,072
	11			Auto title loan bad debt			36				—				6				42
	12			Net revenues			66,492				2,103				26,131				94,726
	13
	14			Operations expense			38,367				1,299				14,962				54,628
	15			Store operating income		$	28,125			$	804			$	11,169			$	40,098
	16
	17			Pawn store count — end of period			371				45				—				416
	18			Signature loan store count — end of period			6				—				476				482
	19
	20			Three months ended March 31, 2008:
	21			Revenues:
	22			Sales		$	59,747			$	1,583			$	—			$	61,330
	23			Pawn service charges			20,720				1,065				—				21,785
	24			Signature loan fees			672				—				29,494				30,166
	25			Auto title loan fees			—				—				—				—
	26			Other			341				3				—				344
	27			Total revenues			81,480				2,651				29,494				113,625
	28
	29			Cost of goods sold			35,784				947				—				36,731
	30			Signature loan bad debt			167				—				6,465				6,632
	31			Auto title loan bad debt			—				—				—				—
	32			Net revenues			45,529				1,704				23,029				70,262
	33
	34			Operations expense			23,978				904				14,017				38,899
	35			Store operating income		$	21,551			$	800			$	9,012			$	31,363
	36
	37			Pawn store count — end of period			294				26				—				320
	38			Signature loan store count — end of period			6				—				456				462

EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)

						U.S. Pawn				Empeño				EZMONEY
				Six months ended March 31, 2009:		Operations				Fácil				Operations				Consolidated
	1			Revenues:
	2			Sales		$	148,975			$	4,618			$	—			$	153,593
	3			Pawn service charges			57,149				2,748				—				59,897
	4			Signature loan fees			1,243				—				66,351				67,594
	5			Auto title loan fees			561				—				75				636
	6			Other			3,160				1				—				3,161
	7			Total revenues			211,088				7,367				66,426				284,881
	8
	9			Cost of goods sold			94,010				2,841				—				96,851
	10			Signature loan bad debt			344				—				14,212				14,556
	11			Auto title loan bad debt			42				—				7				49
	12			Net revenues			116,692				4,526				52,207				173,425
	13
	14			Operations expense			65,045				2,583				30,494				98,122
	15			Store operating income		$	51,647			$	1,943			$	21,713			$	75,303
	16
	17			Pawn store count — end of period			371				45				—				416
	18			Signature loan store count — end of period			6				—				476				482
	19
	20			Six months ended March 31, 2008:
	21			Revenues:
	22			Sales		$	113,948			$	2,889			$	—			$	116,837
	23			Pawn service charges			42,710				1,983				—				44,693
	24			Signature loan fees			1,481				—				62,213				63,694
	25			Auto title loan fees			—				—				—				—
	26			Other			703				4				—				707
	27			Total revenues			158,842				4,876				62,213				225,931
	28
	29			Cost of goods sold			68,552				1,720				—				70,272
	30			Signature loan bad debt			539				—				15,763				16,302
	31			Auto title loan bad debt			—				—				—				—
	32			Net revenues			89,751				3,156				46,450				139,357
	33
	34			Operations expense			48,000				1,745				27,690				77,435
	35			Store operating income		$	41,751			$	1,411			$	18,760			$	61,922
	36
	37			Pawn store count — end of period			294				26				—				320
	38			Signature loan store count — end of period			6				—				456				462