UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

EZCORP, INC.

(Exact name of registrant as specified in its charter)

DELAWARE		0-19424		74-2540145
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

1901 CAPITAL PARKWAY
AUSTIN, TEXAS		78746
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:

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

This information set forth under “Item 2.02. Results Of Operations And Financial Condition,” including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

On July 23, 2009, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the quarter and nine-month period ended June 30, 2009. A copy of the press release is attached hereto as Exhibit 99.1.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

99.1

Press release dated July 23, 2009, issued by EZCORP, Inc.

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

99.1

Press release dated July 23, 2009, issued by EZCORP, Inc.

EXHIBIT 99.1

EZCORP’s EARNINGS PER SHARE IMPROVE 16% IN JUNE QUARTER

AUSTIN, Texas (July 23, 2009) ¾ EZCORP, Inc. (Nasdaq: EZPW) announced today results for its fiscal third quarter and nine-month period ended June 30, 2009. EZCORP’s net income for the quarter ended June 30, 2009 increased 33% to $14.4 million ($0.29 per share) compared to $10.8 million ($0.25 per share) for the quarter ended June 30, 2008. Total revenues for the quarter increased 37% over the prior year period to $147.8 million with pawn service charges up 45% and total sales (merchandise and jewelry scrapping) up 52%. Signature loan revenues (payday loan and credit service fees) decreased $0.4 million, or 1%. Auto title loans, a new and developing product, contributed $1.0 million of revenues.

Consolidated operating income improved 32% to $21.5 million (24% of net revenues) from $16.3 million (24% of net revenues) in the prior year quarter. The Company’s U.S. pawn operations contributed $6.4 million of improvement, partially offset by a $0.5 million lower contribution from the EZMONEY operations and an increase in administrative costs. Operating income from the 47-store Empeño Fácil pawn segment increased 46% in Mexican pesos, or 13% after translation to a stronger U.S. dollar.

The 78 pawn stores acquired in the December quarter contributed total revenues of $35.1 million, operating income of $5.3 million, and net income of $3.2 million. The acquired stores contributed approximately $0.04 earnings per share to the quarter after the effect of shares issued in the acquisitions.

EZCORP’s net income for the nine-month period ended June 30, 2009 increased 31% to $47.5 million ($1.00 per share) compared to $36.4 million ($0.84 per share) for the prior year nine-month period. Operating income for the nine months improved 29% to $71.2 million (27% of net revenues) compared to $55.1 million (27% of net revenues) for the prior year nine-month period.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “Our third quarter earnings were in line with our revised guidance, and represent our 28^th consecutive quarter of year over year earnings growth. Our results reflect the successful integration of the 78 pawn stores acquired in November and December, which collectively contributed $0.04 earnings per share. These acquisitions provided $0.02 earnings per share accretion in the March quarter, and have gained momentum as they have been assimilated into our business. These results clearly demonstrate the value of our strategy to build earning assets through quality acquisitions.”

Rotunda continued, “In pawn, our same store loan yield remained strong across all categories, as did our general merchandise loan growth and sales. Jewelry loan growth and jewelry sales were not as strong as seasonally expected. We recently increased our gold lending guidelines to accelerate the loan growth, and anticipate a jewelry sales benefit from several promotions, beginning with our ‘Christmas in July’ layaway

promotion. Our EZMONEY operations enjoyed a lift from new loan products, including auto title loans introduced this year and installment loans introduced last year. The benefit of these new products largely offset the lower contribution from payday loans. We expect an increased contribution from these new products as they mature and are introduced into more of our stores.”

Rotunda concluded, “We continue to expect fourth quarter earnings per share of $0.41 to $0.43, representing an increase of 11% to 16% over the prior year quarter. We expect full-year earnings per share of $1.40 to $1.42 compared to last year’s $1.21, or an increase of 16% to 17%. We remain on track to open approximately 30 Mexico pawn locations by fiscal year-end, including the nine added year-to-date. We anticipate opening our first Canadian EZMONEY stores prior to the holiday season.”

EZCORP is primarily a lender or provider of credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. In its pawnshops, the Company offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. In its signature loan stores and some pawnshops, the Company offers short-term non-collateralized loans, often referred to as payday loans, or fee based credit services to customers seeking loans.

As of June 30, 2009, EZCORP operated a total of 897 locations in the U.S. and Mexico consisting of 370 U.S. pawnshops, 47 pawnshops in Mexico and 480 U.S. signature loan stores. EZCORP, as a near-30% stockholder, is also actively involved in the management of Albemarle & Bond Holdings PLC, the U.K.’s largest pawnbroking business with 115 stores. This announcement contains certain forward-looking statements regarding the Company’s expected operating and financial performance for future periods, including new store expansion, anticipated benefits of acquisitions and expected future earnings.

These statements are based on the Company’s current expectations. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including changing market conditions in the overall economy and the industry, consumer demand for the Company’s services and merchandise, actions of third parties who offer services and products in the Company’s locations and changes in the regulatory environment. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission.

You are invited to listen to a conference call discussing these results on July 23, 2009 at 3:30pm Central Time. The conference call can be accessed over the Internet or replayed at your convenience at the following address.

http://www.videonewswire.com/event.asp?id=60390

For additional information, contact Dan Tonissen at (512) 314-2289.

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

			Three Months Ended June 30,
			2009				2008
1	Revenues:
2	Merchandise sales		$	50,442			$	35,728
3	Jewelry scrapping sales			30,867				17,907
4	Pawn service charges			32,880				22,691
5	Signature loan fees			30,815				31,223
6	Auto title loan fees			1,030				—
7	Other			1,740				521
8	Total revenues			147,774				108,070
9	Cost of goods sold:
10	Cost of merchandise sales			31,057				20,706
11	Cost of jewelry scrapping sales			19,908				10,754
12	Total cost of goods sold			50,965				31,460
13	Bad debt:
14	Signature loan bad debt			8,618				8,545
15	Auto title loan bad debt			104				—
16	Total bad debt			8,722				8,545
17	Net revenue			88,087				68,065
18
19	Operations expense			53,833				39,873
20	Administrative expense			9,687				8,527
21	Depreciation and amortization			3,254				3,081
22	(Gain) / Loss on sale/disposal of assets			(146	)			284
23	Operating income			21,459				16,300
24
25	Interest income			(59	)			(165	)
26	Interest expense			428				72
27	Equity in net income of unconsolidated affiliate			(851	)			(997	)
28	Other			11				11
29	Income before income taxes			21,930				17,379
30	Income tax expense			7,545				6,552
31	Net income		$	14,385			$	10,827
32
33	Net income per share, diluted		$	0.29			$	0.25
34
35	Weighted average shares, diluted			49,279				43,325

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

			Nine Months Ended June 30,
			2009				2008
1	Revenues:
2	Merchandise sales		$	156,293			$	120,902
3	Jewelry scrapping sales			78,609				49,570
4	Pawn service charges			92,777				67,384
5	Signature loan fees			98,409				94,917
6	Auto title loan fees			1,666				—
7	Other			4,901				1,228
8	Total revenues			432,655				334,001
9	Cost of goods sold:
10	Cost of merchandise sales			96,348				72,122
11	Cost of jewelry scrapping sales			51,468				29,610
12	Total cost of goods sold			147,816				101,732
13	Bad debt:
14	Signature loan bad debt			23,174				24,847
15	Auto title loan bad debt			153				—
16	Total bad debt			23,327				24,847
17	Net revenue			261,512				207,422
18
19	Operations expense			151,955				117,308
20	Administrative expense			29,892				25,418
21	Depreciation and amortization			9,471				9,027
22	(Gain) / Loss on sale/disposal of assets			(967	)			527
23	Operating income			71,161				55,142
24
25	Interest income			(257	)			(359	)
26	Interest expense			1,064				228
27	Equity in net income of unconsolidated affiliate			(3,163	)			(3,162	)
28	Other			38				11
29	Income before income taxes			73,479				58,424
30	Income tax expense			25,946				22,026
31	Net income		$	47,533			$	36,398
32
33	Net income per share, diluted		$	1.00			$	0.84
34
35	Weighted average shares, diluted			47,724				43,269

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

			As of June 30,
			2009				2008
1	Assets:
2	Current assets:
3	Cash and cash equivalents		$	46,546			$	29,812
4	Pawn loans			94,648				68,022
5	Payday loans, net			7,649				6,598
6	Pawn service charges receivable, net			16,693				10,061
7	Auto title loans, net			1,126				—
8	Auto title loan finance charges receivable, net			352				—
9	Signature loan fees receivable, net			5,105				5,086
10	Inventory, net			57,141				39,444
11	Deferred tax asset			15,809				9,007
12	Federal income taxes receivable			—				454
13	Prepaid expenses and other assets			14,866				5,622
14	Total current assets			259,935				174,106
15
16	Investment in unconsolidated affiliate			34,784				37,248
17	Property and equipment, net			49,752				38,661
18	Deferred tax asset, non-current			9,090				5,620
19	Goodwill			100,742				24,779
20	Other assets, net			17,892				5,585
21	Total assets		$	472,195			$	285,999
22	Liabilities and stockholders’ equity:
23	Current liabilities:
24	Current maturities of long-term debt		$	10,000			$	—
25	Accounts payable and other accrued expenses			33,958				24,120
26	Customer layaway deposits			3,603				2,254
27	Federal income taxes payable			1,988				—
28	Total current liabilities			49,549				26,374
29
30	Long-term debt, less current maturities			27,500				—
31	Deferred gains and other long-term liabilities			3,352				2,909
32	Total stockholders’ equity			391,794				256,716
33	Total liabilities and stockholders’ equity		$	472,195			$	285,999
34
35	Pawn loan balance per ending pawn store		$	227			$	210
36	Inventory per ending pawn store		$	137			$	122
37	Book value per share		$	8.05			$	6.19
38	Tangible book value per share		$	5.65			$	5.50
39	Pawn store count — end of period			417				324
40	Signature loan store count — end of period			480				461
41	Shares outstanding — end of period			48,652				41,441

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

			U.S. Pawn				Empeño				EZMONEY
			Operations				Fácil				Operations				Consolidated
	Three months ended June 30, 2009:
1	Revenues:
2	Sales		$	78,519			$	2,790			$	—			$	81,309
3	Pawn service charges			31,409				1,471				—				32,880
4	Signature loan fees			523				—				30,292				30,815
5	Auto title loan fees			430				—				600				1,030
6	Other			1,706				34				—				1,740
7	Total revenues			112,587				4,295				30,892				147,774
8
9	Cost of goods sold			49,157				1,808				—				50,965
10	Signature loan bad debt			237				—				8,381				8,618
11	Auto title loan bad debt			30				—				74				104
12	Net revenues			63,163				2,487				22,437				88,087
13
14	Operations expense			37,719				1,441				14,673				53,833
15	Store operating income		$	25,444			$	1,046			$	7,764			$	34,254
16
17	Pawn store count — end of period			370				47				—				417
18	Signature loan store count — end of period			6				—				474				480
19
20	Three months ended June 30, 2008:
21	Revenues:
22	Sales		$	51,799			$	1,836			$	—			$	53,635
23	Pawn service charges			21,378				1,313				—				22,691
24	Signature loan fees			650				—				30,573				31,223
25	Auto title loan fees			—				—				—				—
26	Other			521				—				—				521
27	Total revenues			74,348				3,149				30,573				108,070
28
29	Cost of goods sold			30,301				1,159				—				31,460
30	Signature loan bad debt			202				—				8,343				8,545
31	Auto title loan bad debt			—				—				—				—
32	Net revenues			43,845				1,990				22,230				68,065
33
34	Operations expense			24,831				1,065				13,977				39,873
35	Store operating income		$	19,014			$	925			$	8,253			$	28,192
36
37	Pawn store count — end of period			294				30				—				324
38	Signature loan store count — end of period			6				—				455				461

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

			U.S. Pawn				Empeño				EZMONEY
			Operations				Fácil				Operations				Consolidated
	Nine months ended June 30, 2009:
1	Revenues:
2	Sales		$	227,494			$	7,408			$	—			$	234,902
3	Pawn service charges			88,558				4,219				—				92,777
4	Signature loan fees			1,766				—				96,643				98,409
5	Auto title loan fees			991				—				675				1,666
6	Other			4,866				35				—				4,901
7	Total revenues			323,675				11,662				97,318				432,655
8
9	Cost of goods sold			143,167				4,649				—				147,816
10	Signature loan bad debt			581				—				22,593				23,174
11	Auto title loan bad debt			72				—				81				153
12	Net revenues			179,855				7,013				74,644				261,512
13
14	Operations expense			102,764				4,024				45,167				151,955
15	Store operating income		$	77,091			$	2,989			$	29,477			$	109,557
16
17	Pawn store count — end of period			370				47				—				417
18	Signature loan store count — end of period			6				—				474				480
19
20	Nine months ended June 30, 2008:
21	Revenues:
22	Sales		$	165,749			$	4,723			$	—			$	170,472
23	Pawn service charges			64,089				3,295				—				67,384
24	Signature loan fees			2,131				—				92,786				94,917
25	Auto title loan fees			—				—				—				—
26	Other			1,224				4				—				1,228
27	Total revenues			233,193				8,022				92,786				334,001
28
29	Cost of goods sold			98,853				2,879				—				101,732
30	Signature loan bad debt			741				—				24,106				24,847
31	Auto title loan bad debt			—				—				—				—
32	Net revenues			133,599				5,143				68,680				207,422
33
34	Operations expense			72,831				2,810				41,667				117,308
35	Store operating income		$	60,768			$	2,333			$	27,013			$	90,114
36
37	Pawn store count — end of period			294				30				—				324
38	Signature loan store count — end of period			6				—				455				461