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

Date of Report (Date of earliest event reported): November 8, 2011

EZCORP, Inc.

(Exact name of registrant as specified in its charter)

Delaware		0-19424		74-2540145
(State or other jurisdiction of incorporation)		(Commission File Number)		(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 November 8, 2011, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the fourth fiscal quarter and 2011 fiscal year ended September 30, 2011. A copy of that press release is attached as Exhibit 99.1.

The press release furnished in Exhibit 99.1 presents the financial results in accordance with GAAP. In addition, net income, consolidated operating income and earnings per share for the fiscal year ended September 30, 2011 are also presented on a non-GAAP basis. Information sufficient to reconcile the non-GAAP measure to the GAAP measure is also presented. This non-GAAP financial measure is not meant to be considered in isolation or as a substitute for the corresponding GAAP measure.

As noted in the press release, the only difference between the presented non-GAAP measures and the GAAP measures is the exclusion of the affect of a one-time charge related to the retirement of the Company’s former Chief Executive Officer and related tax benefit that were recorded in the first quarter of fiscal 2011. The Company believes that excluding this one-time charge from the Company’s GAAP results allows management and investors to better understand the Company’s financial performance from period to period and in relation to the Company’s operating results. Management does not believe that the excluded one-time charge is reflective of underlying operating performance. The presentation of these non-GAAP financial measures facilitates an enhanced understanding of the Company’s actual and expected performance and enables more meaningful period-to-period comparisons.

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.

On November 7, 2011, EZCORP, Inc. issued a press release announcing the completion of the acquisition of fifteen pawn stores in the San Antonio metropolitan area. A copy of that press release is attached as Exhibit 99.2.

Item 9.01		Financial Statements and Exhibits.

(d)

Exhibits.

99.1

Press Release, dated November 8, 2011, announcing EZCORP, Inc.’s results of operations and financial condition for the fourth fiscal quarter and 2011 fiscal year ended September 30, 2011.

99.2

Press Release, dated November 7, 2011, announcing acquisition of Pawn Stores in San Antonio area.

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 November 8, 2011, announcing EZCORP, Inc.’s results of operations and financial condition for the fourth fiscal quarter and 2011 fiscal year ended September 30, 2011.
99.2		Press Release, dated November 7, 2011, announcing acquisition of pawn stores in San Antonio Area.

Exhibit 99.1

EZCORP REPORTS RECORD REVENUE AND EARNINGS

Fourth Quarter and Fiscal Year Net Income Increase 31% and 33%, Respectively

AUSTIN, Texas (November 8, 2011) — EZCORP, Inc. (Nasdaq: EZPW), a leading provider of specialty consumer financial services, today announced financial results for its fourth fiscal quarter and 2011 fiscal year ended September 30, 2011.

Commenting on the results, EZCORP’s President and Chief Executive Officer, Paul Rothamel, said, “I’m pleased with our continued strong performance, All three of our business segments reported dramatic operating income growth for the fourth quarter as well as for the fiscal year. This performance reflects not only the strength of our business model but also the efforts of our team members in executing against our strategic initiatives, which include bolstering the core business, diversifying our geographic footprint, and integrating innovation into our service offerings.”

Financials — Three months ended September 30, 2011 versus the prior year quarter

	•		Net income of $36.4 million, up 31%.
	•		Diluted earnings per share of $0.72, an increase of 29%.
	•		Total revenues of $234.1 million, up 18%, with same store revenue up 8%.
	•		Net revenues of $146.8 million, up 22%.
	•		Store level operating income of $77.0 million, up 33%, with margins up to 52%.
	•		Consolidated operating income of $52.7 million, up 31%, with operating margin improving 245 bps to 36%.
	•		Contribution from strategic affiliates of $4.1 million, an increase of 26%.

Key Operating Metrics — Three months ended September 30, 2011 versus the prior year quarter

•

US Pawn:

	o		Total revenue increased 16% to $170.2 million.
	o		Same store revenue growth of 6% driven by same store growth in merchandise sales, scrap sales and pawn service charges of 4%, 4% and 12%, respectively.
	o		Store level operating income increased 34% to $55.5 million with a 499 bps margin improvement to 55%.
	o		US Pawn loan balance increased 18% to $134.5 million at September 30, 2011 and grew 10% on a same store basis.

Page 1 of 9

•

Empeño Fácil (Mexico pawn):

	o		Total revenue increased 87% to $17.9 million.
	o		Same store revenue growth of 32%, driven by same store growth in merchandise sales, scrap sales and pawn service charges of 37%, 24% and 31%, respectively.
	o		Store level operating income increased 214% to $4.2 million with an improvement in margin from 25% to 41%, despite the impact from opening 57 new stores in the past 12 months. At constant exchange rates, Empeño Fácil recorded store level operating income of $4.0 million, an increase of 201%.
	o		Empeño Fácil’s pawn loan balance increased 50% to $10.9 million at September 30, 2011 and grew 7% on a same store basis. At constant exchange rates, loan balances grew 61% and 14% on a same store basis.

•

EZMONEY (US Financial Services and Cash Converters Canada):

	o		Total revenue increased 9% to $45.9 million.
	o		Same store revenue growth of 8% driven primarily by an increase in signature loan fees of 9%.
	o		Bad debt as a percentage of fees decreased to 24%, compared with 28% in the fiscal third quarter 2011 and 25% in the prior year quarter.
	o		Store level operating income increased 16% to $17.3 million.
	o		Total loan balances (including CSO lender balances) at September 30, 2011 decreased 7% to $39.4 million.

Financials — Fiscal year ended September 30, 2011 versus the prior year

	•		Net income of $129.3 million, up 33% (non-GAAP). On a GAAP basis, net income was $122.2 million, up 26%.
	•		Diluted earnings per share of $2.57, an increase of 31% (non-GAAP) and $2.43, an increase of 24% (GAAP).
	•		Total revenues of $869.3 million, up 19%, with same store revenue up 10%.
	•		Net revenues of $534.9 million, up 20%.
	•		Store level operating income of $267.9 million, up 27%, with a margin of 50%, an increase of 297 bps.
	•		Consolidated operating income increased 30% to $184.9 million (non-GAAP) and 23% to $174.0 million (GAAP). Operating margin improving 285 bps to 35%.
	•		Contribution from strategic affiliates of $16.2 million, an increase of 51%.

Page 2 of 9

Note: Non-GAAP financials and percentages are adjusted for the one-time pre-tax charge of $10.9 million ($7.1 million post-tax) related to the retirement of the former Chief Executive Officer recorded in the first quarter of fiscal 2011. A reconciliation of GAAP to non-GAAP results is provided at the end of this release for further reference.

Balance Sheet and Liquidity

	•		Combined pawn, signature and auto title loan balances (including CSO) at September 30 were $187 million, an increase of 13%.
	•		At September 30, cash and cash equivalents were $24.0 million, with debt outstanding of $17.5 million, compared with cash less debt of $0.9 million a year ago.

Growth and Innovation Initiatives

     US Pawn Growth

	•		During the fourth quarter, US Pawn added seven stores including five in the Chicago metropolitan area. With 14 stores added in 15 months, EZCORP has grown from having no presence to becoming one of the leading pawn operators in the Chicago area.
	•		During the whole of fiscal 2011, US Pawn added 44 stores on a base of 396 (an 11% increase in footprint) and established a presence in three new states: Iowa, Utah and Wisconsin.
	•		In October, US Pawn acquired seven Cash Converters stores in Virginia and Pennsylvania. The Cash Converters buy / sell model allows the Company to meet the short-term cash needs of customers in markets and neighborhoods where the traditional pawn model may not be feasible.
	•		On November 4, US Pawn acquired 15 Money Mart stores in the San Antonio metropolitan area. These stores bring the total in the San Antonio area to 37, solidifying EZCORP’s position as the leading pawn operator in that area.

     Empeño Fácil Growth

	•		During the fourth quarter, Empeño Fácil added 23 stores and entered the Mexican states of Hidalgo and Tlaxcala.
	•		For the whole of fiscal 2011, Empeño Fácil added 63 stores on a base of 115 (a 55% increase in footprint) and currently has a presence in over half of all Mexico states.

     Cash Converters Canada Growth

Page 3 of 9

•

In April, EZCORP acquired the Cash Converters master franchise rights for Canada. At September 30, the Company had 15 of its 64 Company owned stores operating under the Cash Converters brand. Including the 13 franchise stores, the Cash Converters brand is represented in five of 10 Canadian provinces.

     Innovation

•

During the fourth quarter, the Company established an eCommerce and Card Services division to further develop and market EZCORP’s “Change” card as well as introduce online and mobile services to enhance the ease and efficiency with which customers can transact with the Company. As of September 30, 124,000 Change cards had been issued to EZCORP customers in nine states, covering 656 US Pawn and US Financial Services stores.

Rothamel concluded, “In total, strength in all markets and divisions, combined with operational execution on our strategic initiatives, drove our success, both in the fourth quarter and the 2011 fiscal year overall. Looking ahead, I’m confident we will reap additional rewards from our recent investments in talent and technology as we enhance our differentiated product offering. We will therefore be able to better serve our customers and position ourselves for continued growth.”

Outlook for fiscal 2012

The Company expects fiscal 2012 earnings per share to be between $3.05 and $3.10. This represents an increase of approximately 20% over fiscal 2011 non-GAAP earnings per share and an increase of 27% over fiscal 2011 GAAP earnings per share.

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 1,100 pawn, buy/sell and personal financial services stores in the U.S., Mexico 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 160 full-line stores offering pawnbroking, jewelry retailing, gold buying and financial services; and in Cash Converters International Limited (CCV.L and

Page 4 of 9

CCV.ASX), which franchises and operates a worldwide network of over 600 stores that provide personal 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 changes in the regulatory environment, changing market conditions in the overall economy and the industry and consumer demand for the Company’s services and merchandise. 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.

Change to Presentation and Reclassification of Prior Year Comparatives

The Company has historically included fees from its Product Protection Plan and Jewelry VIP Program as well as layaway fees in “Other revenue” in its Consolidated Statements of Operations and its Operating Segment Results. Beginning in the second fiscal quarter of 2011 the Company has included these fees in “Merchandise sales” on the basis that fees from these products are incidental to sales of merchandise. Prior year figures have been reclassified to conform to this presentation and margins have been recalculated accordingly.

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 and non-GAAP 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 included in the quarter ended December 31, 2010. The Company’s management uses these non-GAAP financial measures to understand its 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.

EZCORP Investor Relations
(512) 314-2220

Page 5 of 9

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

		Three Months Ended September 30,								Year Ended September 30,
		2011				2010				2011				2010
Revenues:
Merchandise sales		$	67,856			$	56,252			$	282,083			$	240,454
Jewelry scrapping sales			63,048				53,968				212,479				171,411
Pawn service charges			56,191				45,168				201,135				163,695
Signature loan fees			40,886				36,699				150,250				139,315
Auto title loan fees			5,413				5,991				21,701				17,707
Other			691				90				1,669				463
Total revenues			234,085				198,168				869,317				733,045
Cost of goods sold:
Cost of merchandise sales			39,419				32,229				162,060				140,284
Cost of jewelry scrapping sales			36,943				35,176				133,560				110,838
Total cost of goods sold			76,362				67,405				295,620				251,122
Bad debt:
Signature loan bad debt			10,353				9,605				36,328				31,709
Auto title loan bad debt			611				1,119				2,431				2,735
Total bad debt			10,964				10,724				38,759				34,444
Net revenue			146,759				120,039				534,938				447,479
Operations expense			69,750				62,326				267,052				236,664
Administrative expense			19,020				13,384				75,270				52,740
Depreciation and amortization			5,020				3,973				18,344				14,661
(Gain) / loss on sales / disposal of assets			311				227				309				1,528
Operating income			52,658				40,129				173,963				141,886
Interest income			(2	)			(35	)			(37	)			(186	)
Interest expense			504				314				1,690				1,385
Equity in net income of unconsolidated affiliates			(4,080	)			(3,231	)			(16,237	)			(10,750	)
Other			(4	)			10				(164	)			(93	)
Income before income taxes			56,240				43,071				188,711				151,530
Income tax expense			19,875				15,219				66,552				54,236
Net income		$	36,365			$	27,852			$	122,159			$	97,294
Net income per share, diluted		$	0.72			$	0.56			$	2.43			$	1.96
Weighted average shares, diluted			50,589				49,672				50,369				49,576
OTHER DATA:
Gross margin on merchandise sales			41.9	%			42.7	%			42.5	%			41.7	%
Gross margin on jewelry scrapping sales			41.4	%			34.8	%			37.1	%			35.3	%
Gross margin on total sales			41.7	%			38.8	%			40.2	%			39.0	%
Signature loan bad debt as percent of fees			25.3	%			26.2	%			24.2	%			22.8	%
Auto title loan bad debt as percent of fees			11.3	%			18.7	%			11.2	%			15.4	%

Page 6 of 9

EZCORP, Inc.
Highlights of Consolidated Balance Sheets
(in thousands)

		September 30, (unaudited)
		2011				2010
Assets:
Current assets:
Cash and cash equivalents		$	23,969			$	25,854
Pawn loans			145,318				121,201
Signature loans, net			11,389				10,775
Auto title loans, net			3,222				3,145
Pawn service charges receivable, net			26,455				21,626
Signature loan fees receivable, net			5,348				5,818
Auto title loan fees receivable, net			1,427				1,616
Inventory, net			90,373				71,502
Deferred tax asset			18,125				23,208
Federal income taxes receivable			—				—
Prepaid expenses and other assets			30,611				17,427
Total current assets			356,237				302,172
Investments in unconsolidated affiliates			120,319				101,386
Property and equipment, net			78,498				62,293
Deferred tax asset, non-current			—				60
Goodwill			173,206				117,305
Other assets, net			28,190				23,196
Total assets		$	756,450			$	606,412
Liabilities and stockholders’ equity:
Current liabilities:
Current maturities of long term debt			—				10,000
Accounts payable and other accrued expenses			57,400				49,663
Customer layaway deposits			6,176				6,109
Federal income taxes payable			693				3,687
Total current liabilities			64,269				69,459
Long-term debt, less current maturities			17,500				15,000
Deferred tax liability			8,331				—
Deferred gains and other long-term liabilities			2,102				2,525
Total stockholders’ equity			664,248				519,428
Total liabilities and stockholders’ equity		$	756,450			$	606,412
Other Data:
Pawn loan balance per ending pawn store		$	238			$	240
Inventory per ending pawn store		$	148			$	142
Book value per share		$	13.23			$	10.55

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

		Three Months Ended September 30,
		US Pawn								Empeño Fácil								EZMONEY
		2011				2010				2011				2010				2011				2010
Revenues:
Merchandise sales		$	59,750			$	52,364			$	7,908			$	3,888			$	198			$	—
Scrap sales			58,055				51,007				4,634				2,839				359				122
Pawn service charges			50,879				42,294				5,312				2,874				—				—
Signature loan fees			894				488				—				—				39,992				36,211
Auto title loan fees			447				398				—				—				4,966				5,593
Other			214				77				88				—				389				13
Total revenues			170,239				146,628				17,942				9,601				45,904				41,939
Merchandise cost of goods sold			34,647				30,112				4,636				2,117				136				—
Scrap cost of goods sold			33,788				32,896				3,004				2,226				151				54
Signature loan bad debt			340				195				—				—				10,013				9,410
Auto title loan bad debt			55				70				—				—				556				1,049
Net revenue			101,409				83,355				10,302				5,258				35,048				31,426
Operations expense			45,898				41,886				6,103				3,922				17,749				16,518
Store operating income		$	55,511			$	41,469			$	4,199			$	1,336			$	17,299			$	14,908
OTHER DATA
Gross margin on merchandise sales			42.0	%			42.5	%			41.4	%			45.6	%			31.3	%			N/A
Gross margin on scrap sales			41.8	%			35.5	%			35.2	%			21.6	%			57.9	%			55.7	%
Gross margin on total sales			41.9	%			39.0	%			39.1	%			35.4	%			48.5	%			55.7	%
Signature loan bad debt as a percent of fees			38.0	%			40.0	%			N/A				N/A				25.0	%			26.0	%
Auto title loan bad debt as percent of fees			12.3	%			17.6	%			N/A				N/A				11.2	%			18.8	%
Operating income margin			54.7	%			49.7	%			40.8	%			25.4	%			49.4	%			47.4	%

		Year Ended September 30,
		US Pawn								Empeño Fácil								EZMONEY
		2011				2010				2011				2010				2011				2010
Revenues:
Merchandise sales		$	256,643			$	226,424			$	25,237			$	14,030			$	203			$	—
Scrap sales			195,276				163,667				15,997				7,389				1,206				355
Pawn service charges			184,234				154,505				16,901				9,190				—				—
Signature loan fees			2,501				1,930				—				—				147,749				137,385
Auto title loan fees			1,539				1,659				—				—				20,162				16,048
Other			634				442				122				—				913				21
Total revenues			640,827				548,627				58,257				30,609				170,233				153,809
Merchandise cost of goods sold			147,239				131,825				14,672				8,459				149				—
Scrap cost of goods sold			120,767				104,531				12,205				6,137				588				170
Signature loan bad debt			923				641				—				—				35,405				31,068
Auto title loan bad debt			165				236				—				—				2,266				2,499
Net revenue			371,733				311,394				31,380				16,013				131,825				120,072
Operations expense			177,191				161,145				20,636				11,658				69,225				63,861
Store operating income		$	194,542			$	150,249			$	10,744			$	4,355			$	62,600			$	56,211
OTHER DATA
Gross margin on merchandise sales			42.6	%			41.8	%			41.9	%			39.7	%			26.6	%			N/A
Gross margin on scrap sales			38.2	%			36.1	%			23.7	%			16.9	%			51.2	%			52.1	%
Gross margin on total sales			40.7	%			39.4	%			34.8	%			31.9	%			47.7	%			52.1	%
Signature loan bad debt as percent of fees			36.9	%			33.2	%			N/A				N/A				24.0	%			22.6	%
Auto title loan bad debt as percent of fees			10.7	%			14.2	%			N/A				N/A				11.2	%			15.6	%
Operating income margin			52.3	%			48.3	%			34.2	%			27.2	%			47.5	%			46.8	%

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EZCORP, Inc.

Store Count Activity

		Three Months Ended September 30, 2011
		Company-owned Stores																Franchises
		US Pawn				Empeño Fácil				EZMONEY				Consolidated
Beginning of period			432				155				496				1,083				12
New openings			5				17				4				26				1
Acquired			2				6				—				8				—
Sold, combined or closed			—				—				(6	)			(6	)			—
End of period			439				178				494				1,111				13

		Year Ended September 30, 2011
		Company-owned Stores																Franchises
		US Pawn				Empeño Fácil				EZMONEY				Consolidated
Beginning of period			396				115				495				1,006				—
New openings			10				57				15				82				1
Acquired			34				6				—				40				13
Sold, combined or closed			(1	)			—				(16	)			(17	)			(1)
End of period			439				178				494				1,111				13

Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands, except per share data)

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.

		Three Months Ended September 30, 2011												Year Ended September 30, 2011
						Non-GAAP												Non-GAAP
		GAAP				Adjustments				Non-GAAP				GAAP				Adjustments				Non-GAAP
Net revenue		$	146,759				—			$	146,759			$	534,938				—			$	534,938
Operations expense			69,750				—				69,750				267,052				—				267,052
Administrative expense			19,020				—				19,020				75,270				(10,945	)			64,325
Depreciation and amortization			5,020				—				5,020				18,344				—				18,344
(Gain) / loss on sale/disposal of assets			311				—				311				309				—				309
Operating income			52,658				—				52,658				173,963				10,945				184,908
Interest income			(2	)			—				(2	)			(37	)			—				(37	)
Interest expense			504				—				504				1,690				—				1,690
Equity in net income of unconsolidated affiliates			(4,080	)			—				(4,080	)			(16,237	)			—				(16,237	)
Other			(4	)			—				(4	)			(164	)			—				(164	)
Income before income taxes			56,240				—				56,240				188,711				10,945				199,656
Income tax expense			19,875				—				19,875				66,552				3,831				70,383
Net income		$	36,365			$	—			$	36,365			$	122,159			$	7,114			$	129,273
Net income per share, diluted		$	0.72			$	—			$	0.72			$	2.43			$	0.14			$	2.57
Weighted average shares, diluted			50,589				—				50,589				50,369				—				50,369

Page 9 of 9

Exhibit 99.2

EZCORP ACQUIRES 15 PAWN STORES IN SAN ANTONIO

AUSTIN, Texas (November 7, 2011) — EZCORP, Inc. (Nasdaq: EZPW) announced today that it has acquired fifteen pawn stores located in the greater San Antonio metropolitan area. The stores were part of the Money Mart chain of pawn stores, one of the larger and most profitable privately owned pawn store chains in the country. The purchase price was paid in cash.

Eric Fosse, EZCORP’s President of North American Operations, stated: “San Antonio is one of the most attractive metropolitan areas for the pawn business. We were already the number one pawn operator in the San Antonio area with 22 stores. This acquisition brings our total store count to 37, and clearly solidifies our leadership in this important geographic area.”

Mr. Fosse continued: “Money Mart had established a very successful operation, with well-run stores in attractive, strategic locations. We believe we can further improve the profitability of these stores by leveraging our existing regional management and support infrastructure and introducing ancillary products to their pawn-only model. In short, we are very excited about the addition of these stores to our growing portfolio of pawn operations.”

The acquisition was completed on November 4, 2011, and is expected to be immediately accretive to EZCORP’s earnings.

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 1,100 pawn, buy/sell and personal financial services stores in the U.S., Mexico 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 160 full-line stores offering pawnbroking, jewelry retailing, gold buying and financial services; and in Cash Converters International Limited (CCV.L and CCV.AUS), which franchises and operates a worldwide network of over 600 stores that provide personal 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 performance in future periods, including the anticipated performance of the newly acquired stores. 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 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.

EZCORP Investor Relations
(512) 314-2220
investor_relations@ezcorp.com