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 (State or other jurisdiction of incorporation)		0-19424 (Commission File Number)		74-2540145 (IRS Employer 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

On July 22, 2010, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the third fiscal quarter and nine month period ended June 30, 2010 and increasing annual earnings guidance. A copy of that press release is attached as Exhibit 99.1.

The information set forth under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, and shall not be deemed to be incorporated by reference in any filing made by EZCORP under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1		Press Release, dated July 22, 2010, announcing EZCORP, Inc.’s results of operations and financial condition for the third fiscal quarter and nine month period ended June 30, 2010 and increasing annual earnings guidance.

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.

EXHIBIT INDEX

Exhibit
No.		Description of Exhibit
99.1		Press Release, dated July 22, 2010, announcing EZCORP, Inc.’s results of operations and financial condition for the third fiscal quarter and nine month period ended June 30, 2010 and increasing annual earnings guidance.

EXHIBIT 99.1

EZCORP THIRD QUARTER EARNINGS JUMP 39%

AUSTIN, Texas (July 22, 2010) — EZCORP, Inc. (Nasdaq: EZPW), a leading pawn store operator and provider of specialty consumer financial services, today announced results for its third fiscal quarter ended June 30, 2010.

EZCORP’s net income for the quarter increased 39% to $20.0 million ($0.40 per share) compared to $14.4 million ($0.29 per share) for the third quarter of fiscal 2009. Total revenues for the quarter increased 17% over the prior year period to $173.5 million.

Consolidated operating income improved 34% to $28.8 million (27% of net revenues) from $21.5 million (24% of net revenues) in the prior year quarter. Store level operating income improved $9.2 million in the Company’s U.S. Pawn operations, $0.3 million in its Empeño Fácil Mexico Pawn segment and $3.1 million in its EZMONEY operations.

EZCORP’s net income for the nine-month period ended June 30, 2010 increased 46% to $69.4 million ($1.40 per share) compared to $47.5 million ($1.00 per share) for the prior year nine-month period. Operating income for the nine months improved 43% to $101.8 million (31% of net revenues) compared to $71.2 million (27% of net revenues) for the prior year nine-month period.

Commenting on these results, Chief Executive Officer, Joe Rotunda, stated, “The June quarter was another great quarter for EZCORP. Each of our business segments and strategic affiliates produced robust revenue and earnings increases over the prior year quarter. In addition, our consolidated pawn and EZMONEY loan portfolios reflect strong, high quality growth over last year of 19% and 28%, respectively. These results clearly demonstrate strong consumer demand for our assortment of products and services and the value and convenience they provide in today’s financial marketplace.”

The Company’s President and Chief Operating Officer, Paul Rothamel, added “We are very pleased by the strong growth and customer acceptance of our expanded offerings, and recently achieved a number of significant milestones. We acquired thirteen domestic pawn stores in June, giving us an entrance to the Chicago area and strengthening our number one position in Florida; we surpassed 70 new store openings year-to-date; and we opened our 100^th pawn store in Mexico on July 2.”

Rothamel concluded, “We continue to drive earnings growth with an intense focus on product and geographic diversification, new store growth and superior customer service. We are increasing our expected earnings per share for the full fiscal year ending September 30 to $1.92, representing a 35% increase from $1.42 in fiscal 2009.”

You are invited to listen to a conference call discussing these results on July 22, 2010 at 3:30 pm 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=70642

ABOUT EZCORP

EZCORP is a leading pawn store operator and 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 second-hand merchandise, primarily collateral forfeited from its pawn lending operations.

At June 30, 2010, EZCORP operated 482 pawn stores in the U.S. and Mexico and 497 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 120 stores, and Cash Converters International Limited (CCV.L and CCV.AUS), which franchises and operates a worldwide network of over 500 financial services and second-hand retail stores.

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 new store expansion 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.

For additional information, contact Danny Chism at (512) 314-2246.

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

		Three Months Ended June 30,								Increase				Percent
		2010				2009				(Decrease)				Change
Revenues:
Merchandise sales		$	49,891			$	50,442			$	(551	)			(1.1	)
Jewelry scrapping sales			43,773				30,867				12,906				41.8
Pawn service charges			39,424				32,880				6,544				19.9
Signature loan fees			32,296				30,815				1,481				4.8
Auto title loan fees			4,658				1,030				3,628				352.2
Other			3,500				1,740				1,760				101.1
Total revenues			173,542				147,774				25,768				17.4
Cost of goods sold:
Cost of merchandise sales			29,710				31,057				(1,347	)			(4.3	)
Cost of jewelry scrapping sales			29,275				19,908				9,367				47.1
Total cost of goods sold			58,985				50,965				8,020				15.7
Bad debt:
Signature loan bad debt			8,917				8,618				299				3.5
Auto title loan bad debt			836				104				732				703.8
Total bad debt			9,753				8,722				1,031				11.8
Net revenue			104,804				88,087				16,717				19.0
Operations expense			57,952				53,833				4,119				7.7
Administrative expense			13,576				9,687				3,889				40.1
Depreciation and amortization			3,759				3,254				505				15.5
(Gain) / Loss on sale/disposal of assets			734				(146	)			880				(602.7	)
Operating income			28,783				21,459				7,324				34.1
Interest income			(135	)			(59	)			(76	)			128.8
Interest expense			311				428				(117	)			(27.3	)
Equity in net income of unconsolidated affiliates			(2,930	)			(851	)			(2,079	)			244.3
Other			(100	)			11				(111	)			(1009.1	)
Income before income taxes			31,637				21,930				9,707				44.3
Income tax expense			11,675				7,545				4,130				54.7
Net income		$	19,962			$	14,385			$	5,577				38.8
Net income per share, diluted		$	0.40			$	0.29			$	0.11				37.9
Weighted average shares, diluted			49,640				49,279

										Amount or
										Percentage Point (ppt)
OTHER DATA:										Increase (Decrease)
Gross margin on merchandise sales (lines (2-10)/2)			40.5	%			38.4	%			2.1			ppts
Gross margin on jewelry scrapping sales (lines (3-11)/3)			33.1	%			35.5	%			(2.4	)		ppts
Gross margin on total sales (lines ((2+3)-12)/(2+3))			37.0	%			37.3	%			(0.3	)		ppts
Signature loan bad debt as percent of fees (lines 14/5)			27.6	%			28.0	%			(0.4	)		ppts
Auto title loan bad debt as percent of fees (lines 15/6)			17.9	%			10.1	%			7.8			ppts
Annualized inventory turnover			4.1				3.6				0.5
Operating income margin (lines 23/17)			27.5	%			24.4	%			3.1			ppts

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

		Nine months Ended June 30,								Increase				Percent
		2010				2009				(Decrease)				Change
Revenues:
Merchandise sales		$	175,450			$	156,293			$	19,157				12.3
Jewelry scrapping sales			117,443				78,609				38,834				49.4
Pawn service charges			118,527				92,777				25,750				27.8
Signature loan fees			102,616				98,409				4,207				4.3
Auto title loan fees			11,716				1,666				10,050				603.2
Other			9,125				4,901				4,224				86.2
Total revenues			534,877				432,655				102,222				23.6
Cost of goods sold:
Cost of merchandise sales			108,056				96,348				11,708				12.2
Cost of jewelry scrapping sales			75,661				51,468				24,193				47.0
Total cost of goods sold			183,717				147,816				35,901				24.3
Bad debt:
Signature loan bad debt			22,104				23,174				(1,070	)			(4.6	)
Auto title loan bad debt			1,616				153				1,463				956.2
Total bad debt			23,720				23,327				393				1.7
Net revenue			327,440				261,512				65,928				25.2
Operations expense			174,338				151,955				22,383				14.7
Administrative expense			39,356				29,892				9,464				31.7
Depreciation and amortization			10,688				9,471				1,217				12.8
(Gain) / Loss on sale/disposal of assets			1,301				(967	)			2,268				(234.5	)
Operating income			101,757				71,161				30,596				43.0
Interest income			(151	)			(257	)			106				(41.2	)
Interest expense			1,071				1,064				7				0.7
Equity in net income of unconsolidated affiliates			(7,519	)			(3,163	)			(4,356	)			137.7
Other			(103	)			38				(141	)			(371.1	)
Income before income taxes			108,459				73,479				34,980				47.6
Income tax expense			39,017				25,946				13,071				50.4
Net income		$	69,442			$	47,533			$	21,909				46.1
Net income per share, diluted		$	1.40			$	1.00			$	0.40				40.0
Weighted average shares, diluted			49,541				47,724

										Amount or
										Percentage Point (ppt)
OTHER DATA:										Increase (Decrease)
Gross margin on merchandise sales (lines (2-10)/2)			38.4	%			38.4	%			0.0			ppts
Gross margin on jewelry scrapping sales (lines (3-11)/3)			35.6	%			34.5	%			1.1			ppts
Gross margin on total sales (lines ((2+3)-12)/(2+3))			37.3	%			37.1	%			0.2			ppts
Signature loan bad debt as percent of fees (lines 14/5)			21.5	%			23.5	%			(2.0	)		ppts
Auto title loan bad debt as percent of fees (lines 15/6)			13.8	%			9.2	%			4.6			ppts
Annualized inventory turnover			4.0				3.6				0.4
Operating income margin (lines 23/17)			31.1	%			27.2	%			3.9			ppts

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

		June 30,
		2010				2009
Assets:
Current assets:
Cash and cash equivalents		$	14,912			$	46,546
Pawn loans			112,807				94,648
Signature loans, net			8,915				7,649
Auto title loans, net			2,802				1,126
Pawn service charges receivable, net			19,899				16,693
Signature loan fees receivable, net			5,493				5,105
Auto title loan fees receivable, net			1,314				352
Inventory, net			61,181				57,141
Deferred tax asset			15,803				15,809
Federal income taxes receivable			10,655				—
Prepaid expenses and other assets			15,179				14,866
Total current assets			268,960				259,935
Investments in unconsolidated affiliates			99,773				34,784
Property and equipment, net			59,045				49,752
Deferred tax asset, non-current			5,526				9,090
Goodwill			115,415				100,742
Other assets, net			22,664				17,892
Total assets		$	571,383			$	472,195
Liabilities and stockholders’ equity:
Current liabilities:
Current maturities of long-term debt		$	10,000			$	10,000
Accounts payable and other accrued expenses			44,194				33,958
Customer layaway deposits			5,404				3,603
Federal income taxes payable			—				1,988
Total current liabilities			59,598				49,549
Long-term debt, less current maturities			17,500				27,500
Deferred gains and other long-term liabilities			2,630				3,352
Total stockholders’ equity			491,655				391,794
Total liabilities and stockholders’ equity		$	571,383			$	472,195
Pawn loan balance per ending pawn store		$	234			$	227
Inventory per ending pawn store		$	127			$	137
Book value per share		$	9.99			$	8.05
Tangible book value per share		$	7.32			$	5.65
Pawn store count — end of period			482				417
Signature loan store count — end of period			497				480
Shares outstanding — end of period			49,218				48,652

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

		U.S. Pawn				Empeño				EZMONEY
		Operations				Fácil				Operations				Consolidated
Three months ended June 30, 2010:
Revenues:
Sales		$	87,916			$	5,579			$	169			$	93,664
Pawn service charges			37,014				2,410				—				39,424
Signature loan fees			455				—				31,841				32,296
Auto title loan fees			359				—				4,299				4,658
Other			3,361				131				8				3,500
Total revenues			129,105				8,120				36,317				173,542
Cost of goods sold			55,077				3,823				85				58,985
Signature loan bad debt			159				—				8,758				8,917
Auto title loan bad debt			44				—				792				836
Net revenues			73,825				4,297				26,682				104,804
Operations expense			39,148				2,999				15,805				57,952
Store operating income		$	34,677			$	1,298			$	10,877			$	46,852
Gross margin on total sales (lines (2-9)/2)			37.4	%			31.5	%			49.7	%			37.0	%
Annualized inventory turnover			4.1				4.4				N/A				4.1
Signature loan bad debt as percent of fees (lines 10/4)			34.9	%			N/A				27.5	%			27.6	%
Auto title loan bad debt as percent of fees (lines 11/5)			12.3	%			N/A				18.4	%			17.9	%
Operating income margin (lines 15/12)			47.0	%			30.2	%			40.8	%			44.7	%
Pawn store count — end of period			383				99				—				482
Signature loan store count — end of period			6				—				491				497
Three months ended June 30, 2009:
Revenues:
Sales		$	78,519			$	2,790			$	—			$	81,309
Pawn service charges			31,409				1,471				—				32,880
Signature loan fees			523				—				30,292				30,815
Auto title loan fees			430				—				600				1,030
Other			1,706				34				—				1,740
Total revenues			112,587				4,295				30,892				147,774
Cost of goods sold			49,157				1,808				—				50,965
Signature loan bad debt			237				—				8,381				8,618
Auto title loan bad debt			30				—				74				104
Net revenues			63,163				2,487				22,437				88,087
Operations expense			37,719				1,441				14,673				53,833
Store operating income		$	25,444			$	1,046			$	7,764			$	34,254
Gross margin on total sales (lines (28-35)/28)			37.4	%			35.2	%			N/A				37.3	%
Annualized inventory turnover			3.7				2.5				N/A				3.6
Signature loan bad debt as percent of fees (lines 36/30)			45.3	%			N/A				27.7	%			28.0	%
Auto title loan bad debt as percent of fees (lines 37/31)			7.0	%			N/A				12.3	%			10.1	%
Operating income margin (lines 41/38)			40.3	%			42.1	%			34.6	%			38.9	%
Pawn store count — end of period			370				47				—				417
Signature loan store count — end of period			6				—				474				480

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

		U.S. Pawn				Empeño				EZMONEY
		Operations				Fácil				Operations				Consolidated
Nine months ended June 30, 2010:
Revenues:
Sales		$	278,314			$	14,346			$	233			$	292,893
Pawn service charges			112,211				6,316				—				118,527
Signature loan fees			1,442				—				101,174				102,616
Auto title loan fees			1,261				—				10,455				11,716
Other			8,771				346				8				9,125
Total revenues			401,999				21,008				111,870				534,877
Cost of goods sold			173,348				10,253				116				183,717
Signature loan bad debt			446				—				21,658				22,104
Auto title loan bad debt			166				—				1,450				1,616
Net revenues			228,039				10,755				88,646				327,440
Operations expense			119,259				7,736				47,343				174,338
Store operating income		$	108,780			$	3,019			$	41,303			$	153,102
Gross margin on total sales (lines (2-9)/2)			37.7	%			28.5	%			50.2	%			37.3	%
Annualized inventory turnover			3.9				4.5				N/A				4.0
Signature loan bad debt as percent of fees (lines 10/4)			30.9	%			N/A				21.4	%			21.5	%
Auto title loan bad debt as percent of fees (lines 11/5)			13.2	%			N/A				13.9	%			13.8	%
Operating income margin (lines 15/12)			47.7	%			28.1	%			46.6	%			46.8	%
Pawn store count — end of period			383				99				—				482
Signature loan store count — end of period			6				—				491				497
Nine months ended June 30, 2009:
Revenues:
Sales		$	227,494			$	7,408			$	—			$	234,902
Pawn service charges			88,558				4,219				—				92,777
Signature loan fees			1,766				—				96,643				98,409
Auto title loan fees			991				—				675				1,666
Other			4,866				35				—				4,901
Total revenues			323,675				11,662				97,318				432,655
Cost of goods sold			143,167				4,649				—				147,816
Signature loan bad debt			581				—				22,593				23,174
Auto title loan bad debt			72				—				81				153
Net revenues			179,855				7,013				74,644				261,512
Operations expense			102,764				4,024				45,167				151,955
Store operating income		$	77,091			$	2,989			$	29,477			$	109,557
Gross margin on total sales (lines (28-35)/28)			37.1	%			37.2	%			N/A				37.1	%
Annualized inventory turnover			3.7				2.2				N/A				3.6
Signature loan bad debt as percent of fees (lines 36/30)			32.9	%			N/A				23.4	%			23.5	%
Auto title loan bad debt as percent of fees (lines 37/31)			7.3	%			N/A				12.0	%			9.2	%
Operating income margin (lines 41/38)			42.9	%			42.6	%			39.5	%			41.9	%
Pawn store count — end of period			370				47				—				417
Signature loan store count — end of period			6				—				474				480