AUSTIN, Texas, Nov. 8 /PRNewswire-FirstCall/ -- EZCORP, Inc.
(NASDAQ: EZPW) announced today results for its fourth fiscal
quarter and 2007 fiscal year, which ended September 30, 2007. For
the quarter ended September 30, 2007, EZCORP's net income increased
22% to $11,155,000 ($0.26 per share) compared to $9,168,000 ($0.21
per share) for the quarter ended September 30, 2006. Total revenues
for the quarter increased 19% to $103,892,000 while operating
income improved 28% to $16,727,000. For the twelve months ended
September 30, 2007, net income increased 29% to $37,874,000 ($0.88
per share) compared to $29,259,000 ($0.69 per share) for the prior
year twelve month period. Total revenues grew 18% to $372,215,000
while operating income increased 29% to $55,537,000. Commenting on
these results, President and Chief Executive Officer, Joe Rotunda,
stated, "It has been a busy quarter and year for us. In June, we
completed the largest acquisition in our history with the
acquisition of the 15 Jumping Jack Cash pawnshop locations in
Colorado. In August, we entered into an agreement for our most
strategic acquisition in our history, the acquisition of the 20
Mister Money pawnshop locations in Mexico. On October 22nd, we
closed on that acquisition and we now operate 24 pawnshops in
Mexico. During the year we continued the expansion of our EZMONEY
locations adding a net 99 stores and expanded into four new
states." Rotunda continued, "In our fourth quarter we saw
exceptionally strong performance in our pawn business and continued
strong performance in our signature loan business. Our pawn net
revenues increased almost 14% in the quarter resulting from 3% same
store sales growth, 9% same store pawn service charge growth and
the addition of net revenues from the Jumping Jack Cash locations.
Our signature loan contribution, or fees less bad debt, increased
approximately 30% from the prior year quarter. Our bad debt,
measured as a percent of fees of 31% was up approximately five
percentage points from the prior year quarter but improved roughly
seven percentage points from the June quarter." Rotunda concluded,
"Looking forward, we will maintain our intensity on growing the
business, improving profitability and strengthening our balance
sheet. For our fiscal 2008 that began on October 1st, we expect to
deliver earnings per share of approximately $1.12. For our first
fiscal 2008 quarter, we expect to generate earnings per share of
approximately $0.28. In fiscal 2008, we plan to open approximately
100 EZMONEY locations and seven to ten Mexico pawnshop 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. The Company offers non-recourse
loans collateralized by tangible personal property, commonly known
as pawn loans, in 294 U.S. and four Mexico EZPAWN locations and 20
Mister Money Mexico locations open on November 7, 2007. At these
locations, the Company also sells merchandise, primarily collateral
forfeited from its pawn lending operations, to consumers looking
for good value. In 434 EZMONEY locations and 75 EZPAWN locations
open on November 7, 2007, 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 store expansion, anticipated benefits of acquisitions and
investments 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 the 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
8, 2007 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=43414 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, 2007 2006 1 Revenues: 2 Merchandise sales
$33,101 $30,022 3 Jewelry scrapping sales 18,198 16,804 4 Pawn
service charges 22,055 18,337 5 Signature loan fees 30,215 21,891 6
Other 323 301 7 Total revenues 103,892 87,355 8 Cost of goods sold:
9 Cost of merchandise sales 19,598 18,044 10 Cost of jewelry
scrapping sales 12,791 11,133 11 Total cost of goods sold 32,389
29,177 12 Net revenues 71,503 58,178 13 14 Operations expense
34,515 29,643 15 Signature loan bad debt 9,422 5,835 16
Administrative expense 8,221 7,402 17 Depreciation and amortization
2,618 2,208 18 Operating income 16,727 13,090 19 20 Interest income
(155) (237) 21 Interest expense 67 45 22 Equity in net income of
unconsolidated affiliate (760) (688) 23 Loss on sale/disposal of
assets 59 55 24 Income before income taxes 17,516 13,915 25 Income
tax expense 6,361 4,747 26 Net income $11,155 $9,168 27 28 Net
income per share, diluted $0.26 $0.21 29 30 Weighted average
shares, diluted 43,215 42,909 EZCORP, Inc. Highlights of
Consolidated Statements of Operations (Unaudited) (in thousands,
except per share data) Year Ended September 30, 2007 2006 1
Revenues: 2 Merchandise sales $141,094 $134,326 3 Jewelry scrapping
sales 51,893 43,098 4 Pawn service charges 73,551 65,325 5
Signature loan fees 104,347 71,840 6 Other 1,330 1,263 7 Total
revenues 372,215 315,852 8 Cost of goods sold: 9 Cost of
merchandise sales 83,501 78,459 10 Cost of jewelry scrapping sales
34,506 28,414 11 Total cost of goods sold 118,007 106,873 12 Net
revenues 254,208 208,979 13 14 Operations expense 128,602 111,738
15 Signature loan bad debt 28,508 17,897 16 Administrative expense
31,749 27,749 17 Depreciation and amortization 9,812 8,610 18
Operating income 55,537 42,985 19 20 Interest income (1,654) (520)
21 Interest expense 281 441 22 Equity in net income of
unconsolidated affiliate (2,945) (2,433) 23 Gain on sale/disposal
of assets (72) (7) 24 Income before income taxes 59,927 45,504 25
Income tax expense 22,053 16,245 26 Net income $37,874 $29,259 27
28 Net income per share, diluted $0.88 $0.69 29 30 Weighted average
shares, diluted 43,230 42,264 EZCORP, Inc. Highlights of
Consolidated Balance Sheets (Unaudited) (in thousands, except per
share data and store counts) As of September 30, 2007 2006 1
Assets: 2 Current assets: 3 Cash and cash equivalents $22,533
$29,939 4 Pawn loans 60,742 50,304 5 Payday loans, net 4,814 2,443
6 Pawn service charges receivable, net 10,113 8,234 7 Signature
loan fees receivable, net 5,992 4,380 8 Inventory, net 37,942
35,616 9 Deferred tax asset 8,964 7,150 10 Federal income taxes
receivable - 35 11 Prepaid expenses and other assets 6,146 3,907 12
Total current assets 157,246 142,008 13 14 Investment in
unconsolidated affiliate 35,746 19,275 15 Property and equipment,
net 33,806 29,447 16 Deferred tax asset, non-current 4,765 3,749 17
Goodwill 16,211 768 18 Other assets, net 3,412 2,611 19 Total
assets $251,186 $197,858 20 Liabilities and stockholders' equity:
21 Current liabilities: 22 Accounts payable and other accrued
expenses $25,592 $22,579 23 Customer layaway deposits 1,988 1,890
24 Federal income taxes payable 4,795 - 25 Total current
liabilities 32,375 24,469 26 27 Deferred gains and other long-term
liabilities 2,886 3,249 28 Total stockholders' equity 215,925
170,140 29 Total liabilities and stockholders' equity $251,186
$197,858 30 31 Pawn loan balance per ending pawn store $204 $180 32
Inventory per ending pawn store $127 $127 33 Book value per share
$5.23 $4.20 34 Tangible book value per share $4.77 $4.13 35 EZPAWN
store count - end of period 298 280 36 EZMoney signature loan store
count - end of period 433 334 37 Shares outstanding - end of period
41,306 40,485 EZCORP, Inc. Operating Segment Results (Unaudited)
(in thousands, except store counts) EZPAWN EZMONEY Operations
Operations Consolidated Three months ended September 30, 2007: 1
Revenues: 2 Sales $51,299 $- $51,299 3 Pawn service charges 22,055
- 22,055 4 Signature loan fees 828 29,387 30,215 5 Other 323 - 323
6 Total revenues 74,505 29,387 103,892 7 8 Cost of goods sold
32,389 - 32,389 9 Net revenues 42,116 29,387 71,503 10 11 Operating
expenses: 12 Operations expense 22,671 11,844 34,515 13 Signature
loan bad debt 347 9,075 9,422 14 Total direct expenses 23,018
20,919 43,937 15 Store operating income $19,098 $8,468 $27,566 16
17 EZPAWN store count - end of period 298 - 298 18 EZMoney
signature loan store count - end of period 6 427 433 19 20 Three
months ended September 30, 2006: 21 Revenues: 22 Sales $46,826 $-
$46,826 23 Pawn service charges 18,337 - 18,337 24 Signature loan
fees 971 20,920 21,891 25 Other 301 - 301 26 Total revenues 66,435
20,920 87,355 27 28 Cost of goods sold 29,177 - 29,177 29 Net
revenues 37,258 20,920 58,178 30 31 Operating expenses: 32
Operations expense 21,453 8,190 29,643 33 Signature loan bad debt
387 5,448 5,835 34 Total direct expenses 21,840 13,638 35,478 35
Store operating income $15,418 $7,282 $22,700 36 37 EZPAWN store
count - end of period 280 - 280 38 EZMoney signature loan store
count - end of period 6 328 334 EZCORP, Inc. Operating Segment
Results (Unaudited) (in thousands, except store counts) EZPAWN
EZMONEY Operations Operations Consolidated Year ended September 30,
2007: 1 Revenues: 2 Sales $192,987 $- $192,987 3 Pawn service
charges 73,551 - 73,551 4 Signature loan fees 3,314 101,033 104,347
5 Other 1,330 - 1,330 6 Total revenues 271,182 101,033 372,215 7 8
Cost of goods sold 118,007 - 118,007 9 Net revenues 153,175 101,033
254,208 10 11 Operating expenses: 12 Operations expense 87,555
41,047 128,602 13 Signature loan bad debt 1,390 27,118 28,508 14
Total direct expenses 88,945 68,165 157,110 15 Store operating
income $64,230 $32,868 $97,098 16 17 EZPAWN store count - end of
period 298 - 298 18 EZMoney signature loan store count - end of
period 6 427 433 19 20 Year ended September 30, 2006: 21 Revenues:
22 Sales $177,424 $- $177,424 23 Pawn service charges 65,325 -
65,325 24 Signature loan fees 3,155 68,685 71,840 25 Other 1,263 -
1,263 26 Total revenues 247,167 68,685 315,852 27 28 Cost of goods
sold 106,873 - 106,873 29 Net revenues 140,294 68,685 208,979 30 31
Operating expenses: 32 Operations expense 84,830 26,908 111,738 33
Signature loan bad debt 1,286 16,611 17,897 34 Total direct
expenses 86,116 43,519 129,635 35 Store operating income $54,178
$25,166 $79,344 36 37 EZPAWN store count - end of period 280 - 280
38 EZMoney signature loan store count - end of period 6 328 334
DATASOURCE: EZCORP, Inc. CONTACT: Dan Tonissen of EZCORP, Inc.,
+1-512-314-2289 Web site: http://www.ezcorp.com/
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