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): April 18, 2012
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:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | 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 April 19, 2012, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the second fiscal quarter ended March 31, 2012. A copy of that press release is attached as Exhibit 99.1.
As used herein, “GAAP” refers to accounting principles generally accepted in the United States.
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 six months ended March 31, 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 effect of a one-time charge related to the retirement of the Company’s former Chief Executive Officer and related tax benefit. The Company believes that excluding this one-time charge from the Company’s prior six month period 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.
Item 7.01 — Regulation FD Disclosure
On April 18, 2012, EZCORP, Inc., issued a press release announcing changes to its segment reporting, effective beginning with the second fiscal quarter ended March 31, 2012. A copy of that press release is attached as Exhibit 99.2
The voluntary supplemental information included in the attached press release updates the Company’s segment information to reflect the change in reportable operating segments for the first quarter of fiscal year 2012 as well as each quarter of fiscal years 2011 and 2010 and the fiscal years ended September 30, 2011 and 2010. There is no impact on the Company’s previously reported consolidated balance sheets, statements of consolidated income, cash flows and shareholders’ equity and comprehensive income, and the previously reported financial statements have not been updated to reflect any financial results or other changes subsequent to that date.
The information set forth under this Item 7.01, including Exhibit 99.2, 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, unless such filing specifically references this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits. |
| 99.1 | Press Release, dated April 19, 2012, announcing EZCORP, Inc.’s results of operations and financial condition for the second fiscal quarter ended March 31, 2012. |
| 99.2 | Press Release, dated April 18, 2012, announcing EZCORP, Inc.’s changes to segment reporting. |
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. | ||||||
| Date: April 19, 2012 | By: | /s/ Stephen A. Stamp | ||||
| Stephen A. Stamp | ||||||
| Senior Vice President and Chief Financial Officer | ||||||
EXHIBIT INDEX
| Exhibit No. |
Description of Exhibit | |
| 99.1 | Press Release, dated April 19, 2012, announcing EZCORP, Inc.’s results of operations and financial condition for the second fiscal quarter ended March 31, 2012. | |
| 99.2 | Press Release, dated April 18, 2012, announcing EZCORP, Inc.’s changes to segment reporting. | |
Exhibit 99.1
EZCORP REPORTS 17% INCREASE IN NET INCOME
Completes key strategic investments in Mexico and the U.K.
Revises full-year EPS guidance down 6% due to U.S. Pawn inventory shift
AUSTIN, Texas (April 19, 2012) – EZCORP, Inc. (NASDAQ: EZPW), a leading provider of instant cash solutions for consumers, today announced results for its second fiscal quarter ended March 31, 2012. For the quarter, net income was $37.3 million, a 17% increase over the prior year’s quarter, and diluted earnings per share were $0.73, a 16% increase over the prior year. During the quarter, the Company completed the acquisition of 60% of Crediamigo, one of the largest and fastest growing providers of payroll deduction loans in Mexico. Since the end of the quarter, the Company has completed the acquisition of 72% of Cash Genie, a leading provider of online loans in the United Kingdom. The Company incurred costs associated with acquisitions of $2.0 million ($0.03 per share) in the quarter.
The Company also announced it is revising its fiscal 2012 earnings guidance to a range of $2.85 to $2.95 per share, about 6% lower than the previous guidance. The mid-point of this range represents an increase of 13% over fiscal 2011 earnings per share, non-GAAP, and 19% on a GAAP basis. This revision in guidance is due to slightly slower than expected growth rates in the U.S. pawn business for both loans and sales (including scrap sales) as a result of customers’ using a greater proportion of general merchandise instead of gold to satisfy their immediate cash needs. The effect of this shift will be to slow inventory turns, place downward pressure on margin rates and delay income into next year. The Company expects to continue to grow its same store loan balances and sales in the low-to-mid single digits for the rest of fiscal 2012.
Commenting on the quarter’s results, EZCORP’s President and Chief Executive Officer, Paul Rothamel, said “While we are very pleased with consolidated net income growth of 17% for the quarter and 15% for the first half, particularly given the strategic transactions we recently closed, we expect earnings growth in the back half of the year to be slightly slower than we originally expected. Nevertheless, the fundamentals of all our cash solutions businesses, including our inventory and loan yields, remain strong and we are filling the pipeline with new stores, new products, and additional talent.”
Consolidated Financials – Three months ended March 31, 2012 versus the prior year quarter:
| • | Net income of $37.3 million, up 17%. |
| • | Diluted earnings per share of $0.73, up 16%. |
| • | Total revenues of $256.3 million, up 20%. |
| • | Net revenues of $161.6 million, up 23%. |
| • | Consolidated operating income of $55.7 million, up 24%. |
| • | Combined loan balances (pawn and consumer loans, including CSO) at quarter end were $219.1 million, up 57%. Excluding Crediamigo, loan balances were $156.5M, up 12%. |
| • | Cash and cash equivalents at quarter-end were $47.5 million, with debt of $132.4 million. Crediamigo had third party debt outstanding of $94.6 million, all of which is non-recourse to EZCORP. |
Key Operating Segment Metrics – Three months ended March 31, 2012 versus the prior year quarter:
| • | U.S. & Canada: |
| • | Total revenue was $229.4 million, up 14% in total and 4% on a same store basis. |
| • | Total sales increased 16% to $134.9 million, with margin improving 90 basis points to 41%. Same store sales were up 2%. |
| • | Pawn service charges increased 17% to $50.5 million, up 9% on a same store basis. |
| • | Consumer loan fees increased 6% to $42.8 million, up 3% on a same store basis. |
| • | Consumer loan bad debt as a percentage of fees improved 45 bps to 14%. |
| • | Segment contribution increased 16% to $64.9 million. |
| • | Pawn loan balance was $108.8 million at quarter end, up 12% in total and 6% on a same store basis. |
| • | Combined loan balances (pawn and consumer loans, including CSO) at quarter end were $142.9 million, up 9%. |
| • | Latin America : |
| • | Total revenue was $26.7 million, up 110% in total and 9% on a same store basis. |
| • | Total sales increased 47% to $13.3 million. Same store sales were up 4%. |
| • | Pawn service charges increased 61% to $5.9 million, up 20% on a same store basis. |
| • | Consumer loan fees were $7.4 million. |
| • | Consumer loan bad debt as a percentage of fees was 7%. |
| • | Segment contribution increased to $1.3 million, with an improvement in margin from -1% to 5%. |
| • | Crediamigo recorded net revenue of $6.9 million and net income attributable to EZCORP of $0.2 million for the two months ended March 31, 2012. |
Page 2 of 13
Growth Drivers
| • | U.S. & Canada: |
| • | Acquired 15 stores during the quarter and opened eight new de novo locations, bringing the total number of Company-owned stores to 970 at quarter end. In the first half of fiscal 2012, the Company has added 48 stores (40 acquired and eight de novo) in the U.S. and Canada, and is now a leader in 48 markets across the U.S. and Canada. The Company now offers instant cash solutions in 24 U.S. states and, including franchises, five Canadian provinces. |
| • | On April 13, completed the acquisition of nine pawn stores in the Minneapolis metropolitan area, where the Company had not previously had a presence. The Company now operates pawn shops in 19 U.S. states, up six from this time last year. |
| • | Converted nine CASHMAX stores to the Cash Converters brand. At quarter end, 35 of the 67 Company-owned stores in Canada operated under the Cash Converters brand, with an additional 12 Cash Converters stores managed by franchisees. |
| • | Latin America: |
| • | Empeño Fácil opened 13 stores during the quarter and 27 for the first half, bringing total store count to 205. Of these, 153 are full size, full service stores. |
| • | Empeño Fácil opened its first store in Monterrey, Mexico and now operates in 30 of 55 principal metro areas in Mexico and in 17 of 31 Mexican states primarily in the central and southern part of the country. |
| • | On January 30, 2012, the Company closed its acquisition of a 60% interest in Crediamigo, marking EZCORP’s first entry into unsecured lending in Mexico. Crediamigo offers loans with typical APRs of around 85% and collects interest and principal through payroll deductions. The average loan is approximately $1,200 with a term of 27 months. Crediamigo has approximately 170 payroll withholding agreements with Mexican employers, primarily government and state agencies, with potential access to over 3 million employees. At March 31, 2012, Crediamigo’s loan portfolio totaled $68.4 million and the company had $94.6 million of third party debt (non-recourse to EZCORP). |
| • | Other International: |
| • | On April 13, the Company acquired 72% of the shares in Artiste Holding Limited, which provides online loans in the U.K. under the name “Cash Genie.” Cash Genie significantly accelerates EZCORP’s online strategy in the U.K., and EZCORP’s existing U.K. online lending operations, most of which are outsourced, will be rolled into Cash Genie. Founded in 2009 and based in Ipswich, England, Cash Genie is one of the top 10 largest online lenders in the U.K. It currently has back office and collections functions based in the Philippines, and expects to |
Page 3 of 13
| launch online lending in Finland in May. The company offers unsecured 30-day cash advance loans from $120 to $1,200 with an average loan of $230. The company has 300,000 customers with almost 70,000 loans outstanding and a net loan balance of $17.6 million at the end of February. |
Company Outlook
Commenting on the Company’s outlook, Mr. Rothamel stated: “We believe that we are well positioned to continue our very strong growth. The consumer demand for our products in the U.S., Mexico, and Canada, as well as the rest of the world is expanding. The combination of our large and rapidly growing U.S. businesses, accelerated growth in Mexico through Empeño Fácil and Crediamigo, our U.K. investments in Cash Genie and Albemarle & Bond, and our Cash Converters investments in Australia, the U.K. and Canada position us well for rapid, diversified growth around the world.”
About EZCORP
EZCORP is a leading provider of instant cash solutions for consumers. Through more than 1,200 company-operated pawn, buy/sell and personal financial services stores in the U.S., Mexico and Canada, we provide a variety of instant cash solutions, including pawn loans, consumer loans, and fee-based credit services to customers seeking loans. At our pawn and buy/sell stores, we also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers.
EZCORP owns controlling interests in Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (doing business under the name “Crediamigo”), a leading provider of payroll deduction loans in Mexico, and in Artiste Holding Limited (doing business under the name “Cash Genie”), a leading provider of online loans in the U.K. The company also has significant investments in Albemarle & Bond Holdings PLC (ABM.L), one of the U.K.’s largest pawnbroking businesses with over 170 full-line stores offering pawnbroking, jewelry retailing, gold buying and financial services; and in Cash Converters International Limited (CCV.L and 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 and growth rates. 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, fluctuations in gold prices or the desire of our customers to pawn or sell their gold items, 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.
Page 4 of 13
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
Investor_Relations@ezcorp.com
www.ezcorp.com
Page 5 of 13
EZCORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data and percents)
| Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 94,997 | $ | 77,773 | $ | 181,891 | $ | 149,653 | ||||||||
| Jewelry scrapping sales |
53,175 | 47,995 | 109,578 | 98,660 | ||||||||||||
| Pawn service charges |
56,444 | 46,769 | 116,236 | 96,579 | ||||||||||||
| Consumer loan fees |
50,319 | 40,472 | 95,407 | 86,782 | ||||||||||||
| Other |
1,343 | 245 | 2,039 | 406 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
256,278 | 213,254 | 505,151 | 432,080 | ||||||||||||
| Cost of goods sold: |
||||||||||||||||
| Cost of merchandise sales |
55,880 | 44,639 | 104,276 | 85,950 | ||||||||||||
| Cost of jewelry scrapping sales |
32,310 | 31,925 | 67,734 | 64,180 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total cost of goods sold |
88,190 | 76,564 | 172,010 | 150,130 | ||||||||||||
| Bad debt: |
||||||||||||||||
| Consumer loan bad debt |
6,466 | 5,740 | 17,491 | 16,768 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenue |
161,622 | 130,950 | 315,650 | 265,182 | ||||||||||||
| Operations expense |
77,269 | 66,045 | 151,770 | 130,549 | ||||||||||||
| Administrative expense |
21,353 | 15,733 | 41,064 | 41,871 | ||||||||||||
| Depreciation and amortization |
7,259 | 4,466 | 12,514 | 8,645 | ||||||||||||
| (Gain) / loss on sales / disposal of assets |
27 | (178 | ) | (174 | ) | (171 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Operating income |
55,714 | 44,884 | 110,476 | 84,288 | ||||||||||||
| Interest income |
(314 | ) | (11 | ) | (353 | ) | (14 | ) | ||||||||
| Interest expense |
2,560 | 300 | 3,150 | 600 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
(4,577 | ) | (4,691 | ) | (8,738 | ) | (8,058 | ) | ||||||||
| Other |
802 | 4 | (317 | ) | (57 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Income before income taxes |
57,243 | 49,282 | 116,734 | 91,817 | ||||||||||||
| Income tax expense |
19,870 | 17,444 | 40,009 | 32,550 | ||||||||||||
|
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|
|
|
|
|
|||||||||
| Net income |
37,373 | 31,838 | 76,725 | 59,267 | ||||||||||||
| Attributable to noncontrolling interest |
112 | — | 112 | — | ||||||||||||
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|
|||||||||
| Net income attributable to EZCORP, Inc. |
$ | 37,261 | $ | 31,838 | $ | 76,613 | $ | 59,267 | ||||||||
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|||||||||
| Net income per share, diluted |
$ | 0.73 | $ | 0.63 | $ | 1.51 | $ | 1.18 | ||||||||
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| Weighted average shares, diluted |
51,069 | 50,362 | 50,887 | 50,243 | ||||||||||||
Page 6 of 13
EZCORP, Inc.
Highlights of Consolidated Balance Sheets
(in thousands)
| March 31, (unaudited) | September 30, | |||||||||||
| 2012 | 2011 | 2011 | ||||||||||
| Assets: |
||||||||||||
| Current assets: |
||||||||||||
| Cash and cash equivalents |
$ | 47,499 | $ | 59,785 | $ | 23,969 | ||||||
| Pawn loans |
122,305 | 106,525 | 145,318 | |||||||||
| Consumer loans, net |
23,998 | 11,948 | 14,611 | |||||||||
| Pawn service charges receivable, net |
22,296 | 19,976 | 26,455 | |||||||||
| Consumer Loan fees receivable, net |
24,551 | 6,026 | 6,775 | |||||||||
| Inventory, net |
87,891 | 70,275 | 90,373 | |||||||||
| Deferred tax asset |
18,228 | 23,319 | 18,125 | |||||||||
| Federal income tax receivable |
2,391 | 1,427 | — | |||||||||
| Prepaid expenses and other assets |
34,443 | 20,045 | 30,611 | |||||||||
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|
|
|
|||||||
| Total current assets |
383,602 | 319,326 | 356,237 | |||||||||
| Investments in unconsolidated affiliates |
120,056 | 112,364 | 120,319 | |||||||||
| Property and equipment, net |
95,046 | 70,105 | 78,498 | |||||||||
| Goodwill |
320,692 | 143,404 | 173,206 | |||||||||
| Intangible assets, net |
38,904 | 16,122 | 19,790 | |||||||||
| Non-current consumer loans, net |
52,740 | — | — | |||||||||
| Other assets, net |
18,129 | 7,572 | 8,400 | |||||||||
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|||||||
| Total assets |
$ | 1,029,169 | $ | 668,893 | $ | 756,450 | ||||||
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|
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| Liabilities and stockholders’ equity: |
||||||||||||
| Current liabilities: |
||||||||||||
| Accounts payable and other accrued expenses |
$ | 75,865 | $ | 44,754 | $ | 57,400 | ||||||
| Current maturities of long-term debt |
7,224 | 10,000 | — | |||||||||
| Customer layaway deposits |
7,193 | 6,844 | 6,176 | |||||||||
| Federal income taxes payable |
— | — | 693 | |||||||||
|
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|
|
|
|
|
|||||||
| Total current liabilities |
90,282 | 61,598 | 64,269 | |||||||||
| Long-term debt, less current maturities |
125,131 | 10,000 | 17,500 | |||||||||
| Deferred tax liability |
9,507 | 1,192 | 8,331 | |||||||||
| Deferred gains and other long-term liabilities |
14,423 | 2,314 | 2,102 | |||||||||
|
|
|
|
|
|
|
|||||||
| Total liabilities |
239,343 | 75,104 | 92,202 | |||||||||
| EZCORP, Inc. stockholders’ equity |
755,718 | 593,789 | 664,248 | |||||||||
| Noncontrolling interest |
34,108 | — | — | |||||||||
|
|
|
|
|
|
|
|||||||
| Total stockholders’ equity |
789,826 | 593,789 | 664,248 | |||||||||
|
|
|
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|
|
|
|||||||
| Total liabilities and stockholders’ equity |
$ | 1,029,169 | $ | 668,893 | $ | 756,450 | ||||||
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|
|
|
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Page 7 of 13
EZCORP, Inc.
Operating Segment Results (Unaudited)
(In thousands)
| Three Months Ended March 31, 2012 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 85,498 | $ | 9,499 | $ | — | $ | 94,997 | ||||||||
| Jewelry scrapping sales |
49,414 | 3,761 | — | 53,175 | ||||||||||||
| Pawn service charges |
50,505 | 5,939 | — | 56,444 | ||||||||||||
| Consumer loan fees |
42,806 | 7,383 | 130 | 50,319 | ||||||||||||
| Other |
1,219 | 124 | — | 1,343 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
229,442 | 26,706 | 130 | 256,278 | ||||||||||||
| — | ||||||||||||||||
| Merchandise cost of goods sold |
50,499 | 5,381 | — | 55,880 | ||||||||||||
| Jewelry scrapping cost of goods sold |
29,537 | 2,773 | — | 32,310 | ||||||||||||
| Consumer loan bad debt |
5,878 | 508 | 80 | 6,466 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
143,528 | 18,044 | 50 | 161,622 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
68,890 | 8,211 | 168 | 77,269 | ||||||||||||
| Administrative |
5,424 | 4,334 | 2 | 9,760 | ||||||||||||
| Depreciation |
3,382 | 842 | 14 | 4,238 | ||||||||||||
| Amortization |
142 | 1,555 | — | 1,697 | ||||||||||||
| Loss on sale/disposal of assets |
25 | 2 | — | 27 | ||||||||||||
| Interest, net |
— | 1,769 | — | 1,769 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (4,577 | ) | (4,577 | ) | ||||||||||
| Other |
791 | 11 | — | 802 | ||||||||||||
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|
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| Segment contribution |
$ | 64,874 | $ | 1,320 | $ | 4,443 | $ | 70,637 | ||||||||
| Corporate expenses |
13,394 | |||||||||||||||
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|
|
|||||||||||||||
| Income before taxes |
57,243 | |||||||||||||||
| Income tax expense |
19,870 | |||||||||||||||
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|
|||||||||||||||
| Net income |
$ | 37,373 | ||||||||||||||
| Net income attributable to noncontrolling interest |
112 | |||||||||||||||
|
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|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 37,261 | ||||||||||||||
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|
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Page 8 of 13
EZCORP, Inc.
Operating Segment Results (Unaudited)
(In thousands)
| Three Months Ended March 31, 2011 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 72,420 | $ | 5,353 | $ | — | $ | 77,773 | ||||||||
| Jewelry scrapping sales |
44,351 | 3,644 | — | 47,995 | ||||||||||||
| Pawn service charges |
43,073 | 3,696 | — | 46,769 | ||||||||||||
| Consumer loan fees |
40,472 | — | — | 40,472 | ||||||||||||
| Other |
220 | 25 | — | 245 | ||||||||||||
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|
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|
|||||||||
| Total revenues |
200,536 | 12,718 | — | 213,254 | ||||||||||||
| — | ||||||||||||||||
| Merchandise cost of goods sold |
41,484 | 3,155 | — | 44,639 | ||||||||||||
| Jewelry scrapping cost of goods sold |
28,848 | 3,077 | — | 31,925 | ||||||||||||
| Consumer loan bad debt |
5,740 | — | — | 5,740 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
124,464 | 6,486 | — | 130,950 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
61,196 | 4,849 | — | 66,045 | ||||||||||||
| Administrative |
4,407 | 1,079 | 27 | 5,513 | ||||||||||||
| Depreciation |
2,764 | 578 | — | 3,342 | ||||||||||||
| Amortization |
121 | 100 | — | 221 | ||||||||||||
| Gain on sale/disposal of assets |
(178 | ) | — | — | (178 | ) | ||||||||||
| Interest, net |
— | 1 | — | 1 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (4,691 | ) | (4,691 | ) | ||||||||||
| Other |
3 | 1 | — | 4 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 56,151 | $ | (122 | ) | $ | 4,664 | $ | 60,693 | |||||||
| Corporate expenses |
11,411 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
49,282 | |||||||||||||||
| Income tax expense |
17,444 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
$ | 31,838 | ||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 31,838 | ||||||||||||||
|
|
|
|||||||||||||||
Page 9 of 13
EZCORP, Inc.
Operating Segment Results (Unaudited)
(In thousands)
| Six Months Ended March 31, 2012 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 162,050 | $ | 19,841 | $ | — | $ | 181,891 | ||||||||
| Jewelry scrapping sales |
102,280 | 7,298 | — | 109,578 | ||||||||||||
| Pawn service charges |
104,875 | 11,361 | — | 116,236 | ||||||||||||
| Consumer loan fees |
87,818 | 7,383 | 206 | 95,407 | ||||||||||||
| Other |
1,795 | 244 | — | 2,039 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
458,818 | 46,127 | 206 | 505,151 | ||||||||||||
| — | ||||||||||||||||
| Merchandise cost of goods sold |
93,950 | 10,326 | — | 104,276 | ||||||||||||
| Jewelry scrapping cost of goods sold |
62,687 | 5,047 | — | 67,734 | ||||||||||||
| Consumer loan bad debt |
16,768 | 508 | 215 | 17,491 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
285,413 | 30,246 | (9 | ) | 315,650 | |||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
137,215 | 14,209 | 346 | 151,770 | ||||||||||||
| Administrative |
11,871 | 5,629 | 422 | 17,922 | ||||||||||||
| Depreciation |
6,499 | 1,522 | 36 | 8,057 | ||||||||||||
| Amortization |
272 | 1,652 | — | 1,924 | ||||||||||||
| (Gain)/loss on sale/disposal of assets |
(175 | ) | 1 | — | (174 | ) | ||||||||||
| Interest, net |
4 | 1,733 | — | 1,737 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (8,738 | ) | (8,738 | ) | ||||||||||
| Other |
(269 | ) | 16 | (64 | ) | (317 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 129,996 | $ | 5,484 | $ | 7,989 | $ | 143,469 | ||||||||
| Corporate expenses |
26,735 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
116,734 | |||||||||||||||
| Income tax expense |
40,009 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
$ | 76,725 | ||||||||||||||
| Net income attributable to noncontrolling interest |
112 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 76,613 | ||||||||||||||
|
|
|
|||||||||||||||
Page 10 of 13
EZCORP, Inc.
Operating Segment Results (Unaudited)
(In thousands)
| Six Months Ended March 31, 2011 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 138,725 | $ | 10,928 | $ | — | $ | 149,653 | ||||||||
| Jewelry scrapping sales |
91,554 | 7,106 | — | 98,660 | ||||||||||||
| Pawn service charges |
89,509 | 7,070 | — | 96,579 | ||||||||||||
| Consumer loan fees |
86,782 | — | — | 86,782 | ||||||||||||
| Other |
378 | 28 | — | 406 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
406,948 | 25,132 | — | 432,080 | ||||||||||||
| — | ||||||||||||||||
| Merchandise cost of goods sold |
79,681 | 6,269 | — | 85,950 | ||||||||||||
| Jewelry scrapping cost of goods sold |
58,465 | 5,715 | — | 64,180 | ||||||||||||
| Consumer loan bad debt |
16,768 | — | — | 16,768 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
252,034 | 13,148 | — | 265,182 | ||||||||||||
| Operating Expenses: |
||||||||||||||||
| Store operations |
121,422 | 9,127 | — | 130,549 | ||||||||||||
| Administrative |
9,810 | 2,016 | 52 | 11,878 | ||||||||||||
| Depreciation |
5,366 | 1,084 | — | 6,450 | ||||||||||||
| Amortization |
236 | 197 | — | 433 | ||||||||||||
| (Gain)/loss on sale/disposal of assets |
(172 | ) | 1 | — | (171 | ) | ||||||||||
| Interest, net |
— | 2 | — | 2 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (8,058 | ) | (8,058 | ) | ||||||||||
| Other |
3 | 1 | (61 | ) | (57 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 115,369 | $ | 720 | $ | 8,067 | $ | 124,156 | ||||||||
| Corporate expenses |
32,339 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
91,817 | |||||||||||||||
| Income tax expense |
32,550 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
$ | 59,267 | ||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 59,267 | ||||||||||||||
|
|
|
|||||||||||||||
Page 11 of 13
EZCORP, Inc.
Store Count Activity
| Three Months Ended March 31, 2012 | ||||||||||||||||||||
| Company-owned Stores | Franchises | |||||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||||||
| Beginning of period |
950 | 192 | — | 1,142 | 12 | |||||||||||||||
| De novo |
8 | 13 | 21 | — | ||||||||||||||||
| Acquired |
15 | 45 | 60 | — | ||||||||||||||||
| Sold, combined or closed |
(3 | ) | (3 | ) | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| End of period |
970 | 250 | — | 1,220 | 12 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Six Months Ended March 31, 2012 | ||||||||||||||||||||
| Company-owned Stores | Franchises | |||||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||||||
| Beginning of period |
933 | 178 | — | 1,111 | 13 | |||||||||||||||
| De novo |
8 | 27 | 35 | — | ||||||||||||||||
| Acquired |
40 | 45 | 85 | — | ||||||||||||||||
| Sold, combined or closed |
(11 | ) | (11 | ) | (1 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| End of period |
970 | 250 | — | 1,220 | 12 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Page 12 of 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.
| Six Months Ended March 31, 2012 | Six Months Ended March 31, 2011 | |||||||||||||||||||||||
| Non-GAAP | Non-GAAP | |||||||||||||||||||||||
| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | |||||||||||||||||||
| Net revenue |
$ | 315,650 | — | $ | 315,650 | $ | 265,182 | — | $ | 265,182 | ||||||||||||||
| Operations expense |
151,770 | — | 151,770 | 130,549 | — | 130,549 | ||||||||||||||||||
| Administrative expense |
41,064 | — | 41,064 | 41,871 | (10,945 | ) | 30,926 | |||||||||||||||||
| Depreciation and amortization |
12,514 | — | 12,514 | 8,645 | — | 8,645 | ||||||||||||||||||
| (Gain) / loss on sale/disposal of assets |
(174 | ) | — | (174 | ) | (171 | ) | — | (171 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Operating income |
110,476 | — | 110,476 | 84,288 | 10,945 | 95,233 | ||||||||||||||||||
| Interest income |
(353 | ) | — | (353 | ) | (14 | ) | — | (14 | ) | ||||||||||||||
| Interest expense |
3,150 | — | 3,150 | 600 | — | 600 | ||||||||||||||||||
| Equity in net income of unconsolidated affiliates |
(8,738 | ) | — | (8,738 | ) | (8,058 | ) | — | (8,058 | ) | ||||||||||||||
| Other |
(317 | ) | — | (317 | ) | (57 | ) | — | (57 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Income before income taxes |
116,734 | — | 116,734 | 91,817 | 10,945 | 102,762 | ||||||||||||||||||
| Income tax expense |
40,009 | — | 40,009 | 32,550 | 3,831 | 36,381 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income |
76,725 | — | 76,725 | 59,267 | 7,114 | 66,381 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Attributable to noncontrolling interest |
112 | — | 112 | — | — | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 76,613 | $ | — | $ | 76,613 | $ | 59,267 | $ | 7,114 | $ | 66,381 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net income per share, diluted |
$ | 1.51 | $ | — | $ | 1.51 | $ | 1.18 | $ | 0.14 | $ | 1.32 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
| Weighted average shares, diluted |
50,887 | — | 50,887 | 50,243 | — | 50,243 | ||||||||||||||||||
Page 13 of 13
Exhibit 99.2
EZCORP ANNOUNCES CHANGES TO SEGMENT REPORTING
AUSTIN, Texas (April 18, 2012) – EZCORP, Inc. (NASDAQ: EZPW), a leading provider of instant cash solutions for consumers, today announced changes to its segment reporting. These changes will be effective beginning with the Company’s second fiscal quarter ended March 31, 2012.
Previously, the Company reported segments based primarily on product offerings as follows:
| • | US Pawn Operations – 468 stores in the U.S. offering primarily pawn, buy/sell and, in 74 cases, unsecured loans and/or auto title loans (or related credit services). |
| • | Empeño Fácil – 205 stores in Mexico offering pawn and buy/sell. |
| • | EZMONEY Operations – 435 stores in the U.S. offering unsecured loans and/or auto title loans (or related credit services) and 67 stores in Canada offering a mix of unsecured loans and buy/sell. |
The Company also owns almost 30% of Albemarle & Bond Holdings PLC (ABM.L) and approximately 33% of Cash Converters International Limited (CCV.ASX), each of which are accounted for under the equity accounting method. Additionally, in January 2012, the Company acquired a 60% interest in Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (doing business under the name “Crediamigo”), an unsecured lending business in Mexico.
The Company’s strategy includes both broadening its product offerings and expanding its geographic coverage through strategic partners. Many of its bricks and mortar locations now offer multiple products, including pawn, buy/sell, unsecured loans, auto title loans and the Change Card (the Company’s branded, reloadable debit card offering). In addition, the Company is increasingly being organized and managed along geographic lines, with product offerings and channels based on local custom and regulation. The Company has concluded that segment reporting based on geography more closely aligns with its management organization and strategic direction. Accordingly, for periods ending after January 1, 2012, the Company will report segments as follows:
| • | U.S. & Canada – All business activities in the United States and Canada. |
| • | Latin America – All business activities in Mexico and other parts of Latin America. |
| • | Other International – All business activities in the rest of the world (currently consisting of unsecured loans online in the U.K. and the Company’s equity interests in the net income of Albemarle & Bond and Cash Converters International). |
Where practical, expenses, including administrative expenses, depreciation and amortization, are allocated to segments. Interest is also allocated to segments where indebtedness is incurred at the local country level and is non-recourse to EZCORP. Expenses that cannot be allocated are included as corporate expenses.
In the tables below, the Company updated its segment reporting for all quarters of the fiscal year ended September 30, 2010, all quarters of the fiscal year ended September 30, 2011 and the quarter ended December 31, 2011:
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Year Ended September 30, 2011 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 256,846 | $ | 25,237 | $ | — | $ | 282,083 | ||||||||
| Jewelry scrapping sales |
196,482 | 15,997 | — | 212,479 | ||||||||||||
| Pawn service charges |
184,234 | 16,901 | — | 201,135 | ||||||||||||
| Consumer loan fees |
171,951 | — | — | 171,951 | ||||||||||||
| Other |
1,547 | 122 | — | 1,669 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
811,060 | 58,257 | — | 869,317 | ||||||||||||
| Merchandise cost of goods sold |
147,388 | 14,672 | — | 162,060 | ||||||||||||
| Jewelry scrapping cost of goods sold |
121,355 | 12,205 | — | 133,560 | ||||||||||||
| Consumer loan bad debt |
38,759 | — | — | 38,759 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
503,558 | 31,380 | — | 534,938 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
246,416 | 20,636 | — | 267,052 | ||||||||||||
| Administrative |
19,444 | 4,447 | 795 | 24,686 | ||||||||||||
| Depreciation |
11,211 | 2,446 | — | 13,657 | ||||||||||||
| Amortization |
456 | 399 | — | 855 | ||||||||||||
| Loss on sale/disposal of assets |
296 | 13 | — | 309 | ||||||||||||
| Interest, net |
30 | 4 | — | 34 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (16,237 | ) | (16,237 | ) | ||||||||||
| Other |
(3 | ) | 7 | (168 | ) | (164 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 225,708 | $ | 3,428 | $ | 15,610 | $ | 244,746 | ||||||||
| Corporate expenses |
56,035 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
188,711 | |||||||||||||||
| Income tax expense |
66,552 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
122,159 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 122,159 | ||||||||||||||
|
|
|
|||||||||||||||
Page 2 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Year Ended September 30, 2010 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 226,424 | $ | 14,030 | $ | — | $ | 240,454 | ||||||||
| Jewelry scrapping sales |
164,022 | 7,389 | — | 171,411 | ||||||||||||
| Pawn service charges |
154,505 | 9,190 | — | 163,695 | ||||||||||||
| Consumer loan fees |
157,022 | — | — | 157,022 | ||||||||||||
| Other |
463 | — | — | 463 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
702,436 | 30,609 | — | 733,045 | ||||||||||||
| Merchandise cost of goods sold |
131,825 | 8,459 | — | 140,284 | ||||||||||||
| Jewelry scrapping cost of goods sold |
104,701 | 6,137 | — | 110,838 | ||||||||||||
| Consumer loan bad debt |
34,444 | — | — | 34,444 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
431,466 | 16,013 | — | 447,479 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
225,006 | 11,658 | — | 236,664 | ||||||||||||
| Administrative |
16,550 | 2,763 | 69 | 19,382 | ||||||||||||
| Depreciation |
9,442 | 1,453 | — | 10,895 | ||||||||||||
| Amortization |
275 | 356 | — | 631 | ||||||||||||
| (Gain)/loss on sale/disposal of assets |
1,546 | (2 | ) | — | 1,544 | |||||||||||
| Interest, net |
— | 2 | — | 2 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (10,750 | ) | (10,750 | ) | ||||||||||
| Other |
3 | (3 | ) | (93 | ) | (93 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 178,644 | $ | (214 | ) | $ | 10,774 | $ | 189,204 | |||||||
| Corporate expenses |
37,674 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
151,530 | |||||||||||||||
| Income tax expense |
54,236 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
97,294 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
Page 3 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Three Months Ended December 31, 2011 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 76,552 | $ | 10,342 | $ | — | $ | 86,894 | ||||||||
| Jewelry scrapping sales |
52,866 | 3,537 | — | 56,403 | ||||||||||||
| Pawn service charges |
54,370 | 5,422 | — | 59,792 | ||||||||||||
| Consumer loan fees |
45,012 | — | 76 | 45,088 | ||||||||||||
| Other |
576 | 120 | — | 696 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
229,376 | 19,421 | 76 | 248,873 | ||||||||||||
| Merchandise cost of goods sold |
43,451 | 4,945 | — | 48,396 | ||||||||||||
| Jewelry scrapping cost of goods sold |
33,150 | 2,274 | — | 35,424 | ||||||||||||
| Consumer loan bad debt |
10,890 | — | 135 | 11,025 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
141,885 | 12,202 | (59 | ) | 154,028 | |||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
68,325 | 5,998 | 178 | 74,501 | ||||||||||||
| Administrative |
6,447 | 1,295 | 420 | 8,162 | ||||||||||||
| Depreciation |
3,117 | 680 | 22 | 3,819 | ||||||||||||
| Amortization |
130 | 97 | — | 227 | ||||||||||||
| Gain on sale/disposal of assets |
(200 | ) | (1 | ) | — | (201 | ) | |||||||||
| Interest, net |
4 | (36 | ) | — | (32 | ) | ||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (4,161 | ) | (4,161 | ) | ||||||||||
| Other |
(1,060 | ) | 5 | (64 | ) | (1,119 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 65,122 | $ | 4,164 | $ | 3,546 | $ | 72,832 | ||||||||
| Corporate expenses |
13,341 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
59,491 | |||||||||||||||
| Income tax expense |
20,139 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
39,352 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 39,352 | ||||||||||||||
|
|
|
|||||||||||||||
Page 4 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Three Months Ended December 31, 2010 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 66,305 | $ | 5,575 | $ | — | $ | 71,880 | ||||||||
| Jewelry scrapping sales |
47,203 | 3,462 | — | 50,665 | ||||||||||||
| Pawn service charges |
46,436 | 3,374 | — | 49,810 | ||||||||||||
| Consumer loan fees |
46,310 | — | — | 46,310 | ||||||||||||
| Other |
158 | 3 | — | 161 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
206,412 | 12,414 | — | 218,826 | ||||||||||||
| Merchandise cost of goods sold |
38,197 | 3,114 | — | 41,311 | ||||||||||||
| Jewelry scrapping cost of goods sold |
29,617 | 2,638 | — | 32,255 | ||||||||||||
| Consumer loan bad debt |
11,028 | — | — | 11,028 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
127,570 | 6,662 | — | 134,232 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
60,226 | 4,278 | — | 64,504 | ||||||||||||
| Administrative |
5,403 | 937 | 25 | 6,365 | ||||||||||||
| Depreciation |
2,602 | 506 | — | 3,108 | ||||||||||||
| Amortization |
115 | 97 | — | 212 | ||||||||||||
| Loss on sale/disposal of assets |
6 | 1 | — | 7 | ||||||||||||
| Interest, net |
— | 1 | — | 1 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (3,367 | ) | (3,367 | ) | ||||||||||
| Other |
— | — | (61 | ) | (61 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 59,218 | $ | 842 | $ | 3,403 | $ | 63,463 | ||||||||
| Corporate expenses |
20,928 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
42,535 | |||||||||||||||
| Income tax expense |
15,106 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
27,429 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 27,429 | ||||||||||||||
|
|
|
|||||||||||||||
Page 5 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Three Months Ended December 31, 2009 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 61,262 | $ | 3,354 | $ | — | $ | 64,616 | ||||||||
| Jewelry scrapping sales |
36,835 | 607 | — | 37,442 | ||||||||||||
| Pawn service charges |
38,941 | 1,856 | — | 40,797 | ||||||||||||
| Consumer loan fees |
41,780 | — | — | 41,780 | ||||||||||||
| Other |
116 | — | — | 116 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
178,934 | 5,817 | — | 184,751 | ||||||||||||
| Merchandise cost of goods sold |
36,906 | 2,358 | — | 39,264 | ||||||||||||
| Jewelry scrapping cost of goods sold |
22,831 | 475 | — | 23,306 | ||||||||||||
| Consumer loan bad debt |
9,250 | — | — | 9,250 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
109,947 | 2,984 | — | 112,931 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
56,017 | 2,164 | — | 58,181 | ||||||||||||
| Administrative |
3,726 | 598 | 67 | 4,391 | ||||||||||||
| Depreciation |
2,224 | 267 | — | 2,491 | ||||||||||||
| Amortization |
38 | 88 | — | 126 | ||||||||||||
| Loss on sale/disposal of assets |
211 | — | — | 211 | ||||||||||||
| Interest, net |
— | (2 | ) | — | (2 | ) | ||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (1,283 | ) | (1,283 | ) | ||||||||||
| Other |
(1 | ) | (9 | ) | (5 | ) | (15 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 47,732 | $ | (122 | ) | $ | 1,221 | $ | 48,831 | |||||||
| Corporate expenses |
9,004 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
39,827 | |||||||||||||||
| Income tax expense |
14,120 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
25,707 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 25,707 | ||||||||||||||
|
|
|
|||||||||||||||
Page 6 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Three Months Ended March 31, 2011 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 72,420 | $ | 5,353 | $ | — | $ | 77,773 | ||||||||
| Jewelry scrapping sales |
44,351 | 3,644 | — | 47,995 | ||||||||||||
| Pawn service charges |
43,073 | 3,696 | — | 46,769 | ||||||||||||
| Consumer loan fees |
40,472 | — | — | 40,472 | ||||||||||||
| Other |
220 | 25 | — | 245 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
200,536 | 12,718 | — | 213,254 | ||||||||||||
| Merchandise cost of goods sold |
41,484 | 3,155 | — | 44,639 | ||||||||||||
| Jewelry scrapping cost of goods sold |
28,848 | 3,077 | — | 31,925 | ||||||||||||
| Consumer loan bad debt |
5,740 | — | — | 5,740 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
124,464 | 6,486 | — | 130,950 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
61,196 | 4,849 | — | 66,045 | ||||||||||||
| Administrative |
4,407 | 1,079 | 27 | 5,513 | ||||||||||||
| Depreciation |
2,764 | 578 | — | 3,342 | ||||||||||||
| Amortization |
121 | 100 | — | 221 | ||||||||||||
| Gain on sale/disposal of assets |
(178 | ) | — | — | (178 | ) | ||||||||||
| Interest, net |
— | 1 | — | 1 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (4,691 | ) | (4,691 | ) | ||||||||||
| Other |
3 | 1 | — | 4 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 56,151 | $ | (122 | ) | $ | 4,664 | $ | 60,693 | |||||||
| Corporate expenses |
11,411 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
49,282 | |||||||||||||||
| Income tax expense |
17,444 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
31,838 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 31,838 | ||||||||||||||
|
|
|
|||||||||||||||
Page 7 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Three Months Ended March 31, 2010 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 63,049 | $ | 3,259 | $ | — | $ | 66,308 | ||||||||
| Jewelry scrapping sales |
34,466 | 1,762 | — | 36,228 | ||||||||||||
| Pawn service charges |
36,256 | 2,050 | — | 38,306 | ||||||||||||
| Consumer loan fees |
35,598 | — | — | 35,598 | ||||||||||||
| Other |
144 | — | — | 144 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
169,513 | 7,071 | — | 176,584 | ||||||||||||
| Merchandise cost of goods sold |
37,058 | 2,023 | — | 39,081 | ||||||||||||
| Jewelry scrapping cost of goods sold |
21,507 | 1,574 | — | 23,081 | ||||||||||||
| Consumer loan bad debt |
4,717 | — | — | 4,717 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
106,231 | 3,474 | — | 109,705 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
55,632 | 2,573 | — | 58,205 | ||||||||||||
| Administrative |
4,124 | 634 | 2 | 4,760 | ||||||||||||
| Depreciation |
2,328 | 340 | — | 2,668 | ||||||||||||
| Amortization |
72 | 84 | — | 156 | ||||||||||||
| (Gain)/loss on sale/disposal of assets |
383 | (3 | ) | — | 380 | |||||||||||
| Interest, net |
— | 1 | — | 1 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (3,306 | ) | (3,306 | ) | ||||||||||
| Other |
13 | (1 | ) | — | 12 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 43,679 | $ | (154 | ) | $ | 3,304 | $ | 46,829 | |||||||
| Corporate expenses |
9,834 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
36,995 | |||||||||||||||
| Income tax expense |
13,222 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
23,773 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 23,773 | ||||||||||||||
|
|
|
|||||||||||||||
Page 8 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Three Months Ended June 30, 2011 | ||||||||||||||||
| U.S. & Canada |
Latin America |
Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 58,173 | $ | 6,401 | $ | — | $ | 64,574 | ||||||||
| Jewelry scrapping sales |
46,514 | 4,257 | — | 50,771 | ||||||||||||
| Pawn service charges |
43,846 | 4,519 | — | 48,365 | ||||||||||||
| Consumer loan fees |
38,870 | — | — | 38,870 | ||||||||||||
| Other |
566 | 6 | — | 572 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
187,969 | 15,183 | — | 203,152 | ||||||||||||
| Merchandise cost of goods sold |
32,924 | 3,767 | — | 36,691 | ||||||||||||
| Jewelry scrapping cost of goods sold |
28,951 | 3,486 | — | 32,437 | ||||||||||||
| Consumer loan bad debt |
11,027 | — | — | 11,027 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
115,067 | 7,930 | — | 122,997 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
61,347 | 5,406 | — | 66,753 | ||||||||||||
| Administrative |
4,293 | 1,014 | 506 | 5,813 | ||||||||||||
| Depreciation |
2,828 | 639 | — | 3,467 | ||||||||||||
| Amortization |
117 | 104 | — | 221 | ||||||||||||
| Loss on sale/disposal of assets |
157 | 12 | — | 169 | ||||||||||||
| Interest, net |
20 | 2 | — | 22 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (4,099 | ) | (4,099 | ) | ||||||||||
| Other |
2 | 2 | (107 | ) | (103 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 46,303 | $ | 751 | $ | 3,700 | $ | 50,754 | ||||||||
| Corporate expenses |
10,100 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
40,654 | |||||||||||||||
| Income tax expense |
14,127 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
26,527 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 26,527 | ||||||||||||||
|
|
|
|||||||||||||||
Page 9 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Three Months Ended June 30, 2010 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 49,749 | $ | 3,529 | $ | — | $ | 53,278 | ||||||||
| Jewelry scrapping sales |
41,592 | 2,181 | — | 43,773 | ||||||||||||
| Pawn service charges |
37,014 | 2,410 | — | 39,424 | ||||||||||||
| Consumer loan fees |
36,954 | — | — | 36,954 | ||||||||||||
| Other |
113 | — | — | 113 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
165,422 | 8,120 | — | 173,542 | ||||||||||||
| Merchandise cost of goods sold |
27,749 | 1,961 | — | 29,710 | ||||||||||||
| Jewelry scrapping cost of goods sold |
27,413 | 1,862 | — | 29,275 | ||||||||||||
| Consumer loan bad debt |
9,753 | — | — | 9,753 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
100,507 | 4,297 | — | 104,804 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
54,953 | 2,999 | — | 57,952 | ||||||||||||
| Administrative |
4,307 | 741 | — | 5,048 | ||||||||||||
| Depreciation |
2,387 | 423 | — | 2,810 | ||||||||||||
| Amortization |
59 | 92 | — | 151 | ||||||||||||
| Loss on sale/disposal of assets |
732 | 1 | — | 733 | ||||||||||||
| Interest, net |
— | 1 | — | 1 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (2,930 | ) | (2,930 | ) | ||||||||||
| Other |
(10 | ) | (2 | ) | (88 | ) | (100 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 38,079 | $ | 42 | $ | 3,018 | $ | 41,139 | ||||||||
| Corporate expenses |
9,502 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
31,637 | |||||||||||||||
| Income tax expense |
11,675 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
19,962 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 19,962 | ||||||||||||||
|
|
|
|||||||||||||||
Page 10 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Three Months Ended September 30, 2011 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 59,948 | $ | 7,908 | $ | — | $ | 67,856 | ||||||||
| Jewelry scrapping sales |
58,414 | 4,634 | — | 63,048 | ||||||||||||
| Pawn service charges |
50,879 | 5,312 | — | 56,191 | ||||||||||||
| Consumer loan fees |
46,299 | — | — | 46,299 | ||||||||||||
| Other |
603 | 88 | — | 691 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
216,143 | 17,942 | — | 234,085 | ||||||||||||
| Merchandise cost of goods sold |
34,783 | 4,636 | — | 39,419 | ||||||||||||
| Jewelry scrapping cost of goods sold |
33,939 | 3,004 | — | 36,943 | ||||||||||||
| Consumer loan bad debt |
10,964 | — | — | 10,964 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
136,457 | 10,302 | — | 146,759 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
63,647 | 6,103 | — | 69,750 | ||||||||||||
| Administrative |
5,341 | 1,417 | 237 | 6,995 | ||||||||||||
| Depreciation |
3,017 | 723 | — | 3,740 | ||||||||||||
| Amortization |
103 | 98 | — | 201 | ||||||||||||
| Loss on sale/disposal of assets |
311 | — | — | 311 | ||||||||||||
| Interest, net |
10 | — | — | 10 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (4,080 | ) | (4,080 | ) | ||||||||||
| Other |
(8 | ) | 4 | — | (4 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 64,036 | $ | 1,957 | $ | 3,843 | $ | 69,836 | ||||||||
| Corporate expenses |
13,596 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
56,240 | |||||||||||||||
| Income tax expense |
19,875 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
36,365 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to noncontrolling interest |
— | |||||||||||||||
|
|
|
|||||||||||||||
| Net income attributable to EZCORP, Inc. |
$ | 36,365 | ||||||||||||||
|
|
|
|||||||||||||||
Page 11 of 13
EZCORP, Inc.
Operating Segment Results
(In Thousands)
| Three Months Ended September 30, 2010 | ||||||||||||||||
| U.S. & Canada | Latin America | Other International |
Consolidated | |||||||||||||
| Revenues: |
||||||||||||||||
| Merchandise sales |
$ | 52,364 | $ | 3,888 | $ | — | $ | 56,252 | ||||||||
| Jewelry scrapping sales |
51,129 | 2,839 | — | 53,968 | ||||||||||||
| Pawn service charges |
42,294 | 2,874 | — | 45,168 | ||||||||||||
| Consumer loan fees |
42,690 | — | — | 42,690 | ||||||||||||
| Other |
90 | — | — | 90 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total revenues |
188,567 | 9,601 | — | 198,168 | ||||||||||||
| Merchandise cost of goods sold |
30,112 | 2,117 | — | 32,229 | ||||||||||||
| Jewelry scrapping cost of goods sold |
32,950 | 2,226 | — | 35,176 | ||||||||||||
| Consumer loan bad debt |
10,724 | — | — | 10,724 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net revenues |
114,781 | 5,258 | — | 120,039 | ||||||||||||
| Operating expenses: |
||||||||||||||||
| Store operations |
58,404 | 3,922 | — | 62,326 | ||||||||||||
| Administrative |
4,393 | 790 | — | 5,183 | ||||||||||||
| Depreciation |
2,503 | 423 | — | 2,926 | ||||||||||||
| Amortization |
106 | 92 | — | 198 | ||||||||||||
| Loss on disposal of assets |
220 | — | — | 220 | ||||||||||||
| Interest, net |
— | 2 | — | 2 | ||||||||||||
| Equity in net income of unconsolidated affiliates |
— | — | (3,231 | ) | (3,231 | ) | ||||||||||
| Other |
1 | 9 | — | 10 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Segment contribution |
$ | 49,154 | $ | 20 | $ | 3,231 | $ | 52,405 | ||||||||
| Corporate expenses |
9,334 | |||||||||||||||
|
|
|
|||||||||||||||
| Income before taxes |
43,071 | |||||||||||||||
| Income tax expense |
15,219 | |||||||||||||||
|
|
|
|||||||||||||||
| Net income |
27,852 | |||||||||||||||
|
|
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| Net income attributable to noncontrolling interest |
— | |||||||||||||||
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| Net income attributable to EZCORP, Inc. |
$ | 27,852 | ||||||||||||||
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About EZCORP
EZCORP is a leading provider of instant cash solutions for consumers. Through more than 1,200 company-operated pawn, buy/sell and personal financial services stores in the U.S., Mexico and Canada, we provide a variety of instant cash solutions, including pawn loans, payday loans, installment loans, auto title loans, and fee-based credit services to customers seeking loans. At our pawn and buy/sell stores, we also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers.
EZCORP owns a controlling interest in Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (doing business under the name “Crediamigo”), a leading provider of payroll deduction loans in Mexico. The company also has significant investments in Albemarle & Bond Holdings PLC (ABM.L), one of the U.K.’s
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largest pawnbroking businesses with over 170 full-line stores offering pawnbroking, jewelry retailing, gold buying and financial services; and in Cash Converters International Limited (CCV.L and CCV.ASX), which franchises and operates a worldwide network of over 600 stores that provide personal financial services and sell pre-owned merchandise.
EZCORP Investor Relations
(512) 314-2220
Investor_Relations@ezcorp.com
www.ezcorp.com
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