SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q/A
AMENDMENT 1
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1999
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ______________ to _____________
Commission File Number _______________
_______________________________
EZCORP, INC.
(Exact name of registrant as specified in its charter)
Delaware |
74-2540145 |
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(State or other jurisdiction of incorporation or organization |
(IRS Employer Identification No.) |
Page |
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PART I. FINANCIAL INFORMATION |
Item 1. Financial Statements (Unaudited) |
Condensed Consolidated Balance Sheets as of December 31, 1999, December 31, 1998 and September 30, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
1 |
Condensed Consolidated Statements of Operations for the Three Months Ended December 31, 1999 and 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
2 |
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Condensed Consolidated Statements of Cash Flows for the Three Months Ended December 31, 1999 and 1998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
3 |
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Notes to Interim Condensed Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . |
4 |
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
6 |
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PART II. OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
11 |
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SIGNATURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
12 |
Item 1. Financial Statements (Unaudited) |
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EZCORP, Inc. and Subsidiaries |
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Condensed Consolidated Balance Sheets (Unaudited) |
December 31, |
December 31, |
September 30, |
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1999 |
1998 |
1999 |
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Assets: |
(In thousands) |
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Current assets: |
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Cash and cash equivalents |
$ 3,263 |
$ 2,792 |
$ 2,899 |
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Pawn loans |
46,923 |
48,490 |
53,940 |
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Service charges receivable |
14,660 |
14,800 |
16,671 |
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Inventory, net |
61,032 |
49,245 |
58,241 |
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Deferred tax asset |
1,824 |
1,882 |
1,824 |
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Federal income tax receivable |
- |
- |
1,695 |
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Prepaid expenses and other assets |
3,781 |
3,009 |
3,787 |
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Total current assets |
131,483 |
120,218 |
139,057 |
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Investment in unconsolidated affiliate |
13,292 |
13,116 |
13,195 |
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Property and equipment, net |
62,028 |
49,027 |
60,608 |
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Other assets: |
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Goodwill, net |
13,713 |
13,927 |
13,868 |
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Notes receivable from related parties |
3,000 |
3,000 |
3,000 |
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Other assets, net |
4,421 |
3,422 |
4,349 |
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Total assets |
$ 227,937 |
$ 202,710 |
$ 234,077 |
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======== |
======== |
======== |
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Liabilities and Stockholders Equity: |
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Current liabilities: |
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Current maturities of long-term debt |
$ 11 |
$ 10 |
$ 11 |
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Accounts payable and other accrued expenses |
12,065 |
10,572 |
11,049 |
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Customer layaway deposits |
2,492 |
2,404 |
2,422 |
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Income taxes payable |
54 |
591 |
- |
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Total current liabilities |
14,622 |
13,577 |
13,482 |
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Long-term debt, less current maturities |
75,109 |
56,120 |
83,112 |
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Deferred tax liability |
1,696 |
24 |
1,696 |
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Other long-term liabilities |
492 |
140 |
102 |
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Total long-term liabilities |
77,297 |
56,284 |
84,910 |
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Commitments and contingencies |
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Stockholders equity: |
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Preferred Stock, par value $.01 per share; |
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Authorized 5,000,000 shares;none issued and outstanding |
- |
- |
- |
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Class A Non-voting Common Stock, par value |
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$.01 per share; Authorized 40,000,000 shares; 10,831,043 issued and 10,822,010 outstanding at December 31, 1999 and September 30, 1999; 10,820,574 issued and 10,811,541 outstanding at December 31, 1998 |
108 |
108 |
108 |
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Class B Voting Common Stock, convertible, |
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par value $.01 per share; Authorized 1,198,990 shares; 1,190,057 issued and outstanding |
12 |
12 |
12 |
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Additional paid-in capital |
114,470 |
114,398 |
114,470 |
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Retained earnings |
22,015 |
19,059 |
21,715 |
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136,605 |
133,577 |
136,305 |
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Treasury stock (9,033 shares) |
(35 ) |
(35 ) |
(35 ) |
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Receivable from stockholder |
(729 ) |
(729 ) |
(729 ) |
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Accumulated other comprehensive income |
177 |
36 |
144 |
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Total stockholders equity |
136,018 |
132,849 |
135,685 |
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Total liabilities and stockholders equity |
$227,937 |
$202,710 |
$234,077 |
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======== |
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======== |
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See Notes to Interim Condensed Consolidated Financial Statements (unaudited). |
EZCORP, Inc. and Subsidiaries |
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Condensed Consolidated Statements of Operations (Unaudited) |
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Three Months Ended |
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December 31, |
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1999 |
1998 |
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(In thousands, except |
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per share amounts) |
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Revenues: |
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Sales |
$ 38,090 |
$ 34,434 |
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Pawn service charges |
25,883 |
25,831 |
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Other |
256 |
150 |
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Total revenues |
64,229 |
60,415 |
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Cost of goods sold |
34,170 |
29,022 |
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Net revenues |
30,059 |
31,393 |
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Operating expenses: |
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Operations |
21,806 |
20,120 |
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Administrative |
4,328 |
4,344 |
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Depreciation and amortization |
2,522 |
2,285 |
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Total operating expenses |
28,656 |
26,749 |
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Operating income |
1,403 |
4,644 |
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Interest expense, net |
1,332 |
846 |
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Equity in net income of unconsolidated affiliate |
(64 ) |
(110 ) |
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(Gain)/loss on sale of assets |
(580 ) |
71 |
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Income before income taxes |
715 |
3,837 |
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Income tax expense |
265 |
1,458 |
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Net income |
$ 450 |
$ 2,379 |
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======== |
======== |
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Basic and diluted earnings per share |
$ 0.04 |
$ 0.20 |
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======== |
======== |
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Cash dividends per common share |
$ 0.0125 |
$ 0.0125 |
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Weighted average shares outstanding |
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Basic |
12,012 |
12,002 |
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======== |
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Diluted |
12,012 |
12,009 |
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======== |
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See Notes to Interim Condensed Consolidated Financial Statements (unaudited). |
EZCORP, Inc. and Subsidiaries |
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Condensed Consolidated Statements of Cash Flows (Unaudited) |
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Three Months Ended December 31, |
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1999 |
1998 |
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(In thousands) |
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Operating Activities: |
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Net income |
$ 450 |
$ 2,379 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
2,522 |
2,285 |
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Net (gain)/loss on sale or disposal of assets |
(580 ) |
71 |
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Income from investment in unconsolidated affiliate |
(64 ) |
(110 ) |
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Changes in operating assets and liabilities: |
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Service charges receivable |
2,011 |
43 |
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Inventory |
(2,791 ) |
(5,140 ) |
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Prepaid expenses and other assets |
(162 ) |
(499 ) |
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Accounts payable and accrued expenses |
1,006 |
1,698 |
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Customer layaway deposits |
70 |
226 |
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Other long-term liabilities |
(17 ) |
(12 ) |
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Federal income taxes receivable |
1,695 |
840 |
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Federal income taxes payable |
54 |
591 |
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Net cash provided by operating activities |
4,194 |
2,372 |
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Investing Activities: |
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Pawn loans forfeited and transferred to inventory |
22,912 |
20,795 |
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Pawn loans made |
(47,314 ) |
(50,548 ) |
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Pawn loans repaid |
31,419 |
31,032 |
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Net decrease in loans |
7,017 |
1,279 |
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Additions to property, plant, and equipment |
(6,239 ) |
(7,500 ) |
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Acquisitions, net of cash acquired |
- |
(504 ) |
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Investment in unconsolidated affiliate |
- |
(2,031 ) |
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Proceeds from sale of assets |
3,545 |
- |
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Net cash provided by/(used in) investing activities |
4,323 |
(8,756 ) |
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Financing Activities: |
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Proceeds from bank borrowings |
5,000 |
10,000 |
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Payments on borrowings |
(13,003 ) |
(2,002 ) |
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Payment of dividends |
(150 ) |
150 ) |
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Net cash provided by/(used in) financing activities |
(8,153 ) |
7,848 |
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Change in cash and cash equivalents |
364 |
1,464 |
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Cash and cash equivalents at beginning of period |
|
2,899 |
1,328 |
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Cash and cash equivalents at end of period |
$ 3,263 |
$ 2,792 |
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======= |
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Non-cash Investing and Financing Activities: |
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Foreign currency translation adjustment |
$ 33 |
$ 66 |
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See Notes to Interim Condensed Consolidated Financial Statements (unaudited). |
Three Months Ended |
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December 31, |
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|
1999 |
1998 |
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(In thousands) |
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Numerator |
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Numerator for basic and diluted earnings per share: net income |
$ 450 |
$ 2,379 |
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Denominator |
====== |
====== |
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Denominator for basic earnings per share: weighted average shares |
12,012 |
12,002 |
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Effect of dilutive securities: |
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Warrants |
- |
7 |
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Dilutive potential common shares |
- |
7 |
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Denominator for diluted earnings per share: adjusted weighted average shares and assumed conversions |
12,012 |
12,009 |
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Basic earnings per share |
$ 0.04 |
$ 0.20 |
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Diluted earnings per share |
$ 0.04 |
$ 0.20 |
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====== |
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Three Months Ended |
% or |
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|
December 31, a |
Point |
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1999 |
1998 |
Changeb |
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Net Revenues: |
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Sales |
$ 38,090 |
$ 34,434 |
10.6% |
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Pawn service charges |
25,883 |
25,831 |
0.2% |
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Other |
256 |
150 |
70.7% |
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Total revenues |
64,229 |
60,415 |
6.3% |
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Cost of goods sold |
34,170 |
29,022 |
17.7% |
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Net revenues |
$ 30,059 |
$ 31,393 |
(4.2 )% |
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======== |
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Other Data: |
Gross profit as a percent of sales |
10.3% |
15.7% |
(5.4 ) pts. |
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Average annual inventory turnover |
2.2x |
2.4x |
(0.2 )x |
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Inventory balance per average location as of the end of the quarter |
$183 |
$162 |
13.0% |
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Loan balance per average location as of the end of the quarter |
$140 |
$160 |
(12.5 )% |
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Average yield on loan portfolio |
204% |
209% |
(5.0 ) pts. |
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Redemption rate |
74% |
75% |
(1.0 ) pt. |
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Expenses as a Percent of Total Revenues: |
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Operating |
34.0% |
33.3% |
0.7 pt. |
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Administrative |
6.7% |
7.2% |
(0.5 ) pt. |
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Depreciation and amortization |
3.9% |
3.8% |
0.1 pt. |
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Interest, net |
2.1% |
1.4% |
0.7 pt. |
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Locations in Operation: |
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Beginning of period |
331 |
286 |
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Acquired |
- |
1 |
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Established |
3 |
17 |
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Sold, combined or closed |
- |
- |
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End of period |
334 |
304 |
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===== |
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Average locations in operation during the periodc |
332.5 |
295.0 |
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a |
In thousands, except percentages, inventory turnover and store count. |
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b |
In comparing the period differences between dollar amounts or per store counts, a percentage change is used. In comparing the period differences between two percentages, a percentage point (pt.) change is used. |
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c |
Average locations in operation during the period is calculated based on the average of the locations operating at the beginning and end of such period. |
Exhibit 27 |
Financial Data Schedule |
Filed herewith |
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(b) |
Reports on Form 8-K |
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The Company has not filed any reports on Form 8-K for the quarter ended December 31, 1999. |
EZCORP, INC. |
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(Registrant) |
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Date: February 11, 2000 |
By:/s/ DAN N. TONISSEN |
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(Signature) |
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Daniel N. Tonissen Senior Vice President, Chief Financial Officer & Director |
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