UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 5, 2009
EZCORP, Inc.
(Exact name of registrant as specified in its charter)
| Delaware (State or other jurisdiction of incorporation) |
0-19424 (Commission File Number) |
74-2540145 (IRS Employer Identification No.) |
1901 Capital Parkway, Austin, Texas 78746
(Address of principal executive offices) (zip code)
(Address of principal executive offices) (zip code)
Registrant’s telephone number, including area code: (512) 314-3400
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.01 — Completion of Acquisition or Disposition of Assets
On November 5, 2009, EZCORP, Inc. completed its acquisition of 108,218,000 newly issued ordinary
shares of Cash Converters International Limited, a public company headquartered in Perth,
Australia. The core business of Cash Converters is the ownership and franchising of retail and
financial services stores, which operate as retailers of second hand goods and suppliers of
financial products. The acquisition was completed in accordance with the terms of the previously
announced Subscription Agreement, dated as of August 17, 2009, between EZCORP and Cash Converters,
a copy of which appears as Exhibit 10.1 to EZCORP’s Current Report on Form 8-K filed on August 18,
2009. Completion of the acquisition follows approval of the transaction by the shareholders of
Cash Converters at a general meeting of shareholders held on October 29 in Perth.
Pursuant to the Subscription Agreement, EZCORP paid AUS $0.50 per share, for a total investment of
AUS $54,109,000 (approximately $49.4 million U.S.). EZCORP funded the investment primarily with
cash on hand. The acquired shares represent approximately 30% of the outstanding ordinary shares
of Cash Converters. The Cash Converters shares are listed on the Australian Stock Exchange under
the symbol “CCV” and on the London Stock Exchange under the symbol “CCVU.”
The terms of the investment limit the size of the Cash Converters board of directors to a total of
five members and entitle EZCORP to nominate two of those five directors. In connection with
completion of the investment, William C. Love and Joseph J. Beal, both members of the EZCORP board
of directors, have been appointed to serve on the Cash Converters board. In addition, the terms of
the investment provide that one of EZCORP’s board nominees may fill the position of chairman of the
board if and when that position becomes vacant. The right to maintain two board nominees and to
fill the position of chairman will continue as long as EZCORP owns at least 20% of the outstanding
ordinary shares of Cash Converters.
On November 5, 2009, EZCORP issued a press release announcing the completion of the investment. A
copy of that press release is attached as Exhibit 99.1.
Item 2.02 — Results of Operations and Financial Condition
On November 5, 2009, EZCORP, Inc. issued a press release announcing its results of operations and
financial condition for the fiscal quarter and fiscal year ended September 30, 2009. A copy of
that press release is attached as Exhibit 99.2.
The information set forth under this Item 2.02, 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.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
10.1
|
Subscription Agreement, dated as of August 17, 2009, between EZCORP, Inc. and Cash Converters International Limited (incorporated by reference to Exhibit 10.1 of EZCORP’s Current Report on Form 8-K filed on August 18, 2009, Commission File No. 0-19424) | |
99.1
|
Press Release, dated November 5, 2009, announcing completion of EZCORP, Inc.’s investment in Cash Converters International Limited | |
99.2
|
Press Release, dated November 5, 2009, announcing EZCORP, Inc.’s results of operations and financial condition for the fiscal quarter and fiscal year ended September 30, 2009 |
2
SIGNATURES
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: November 5, 2009 | By: | /s/ Thomas H. Welch, Jr. | ||
| Thomas H. Welch, Jr. | ||||
| Senior Vice President, General Counsel and Secretary |
||||
3
EXHIBIT INDEX
| Exhibit | ||
| No. | Description of Exhibit | |
10.1
|
Subscription Agreement, dated as of August 17, 2009, between EZCORP, Inc. and Cash Converters International Limited (incorporated by reference to Exhibit 10.1 of EZCORP’s Current Report on Form 8-K filed on August 18, 2009, Commission File No. 0-19424) | |
99.1
|
Press Release, dated November 5, 2009, announcing completion of EZCORP, Inc.’s investment in Cash Converters International Limited | |
99.2
|
Press Release, dated November 5, 2009, announcing EZCORP, Inc.’s results of operations and financial condition for the fiscal quarter and fiscal year ended September 30, 2009 |
4
EXHIBIT 99.1
EZCORP COMPLETES INVESTMENT IN CASH CONVERTERS
AUSTIN, Texas (November 5, 2009) — EZCORP, Inc. (Nasdaq: EZPW) announced today that it has
completed its acquisition of 108,218,000 newly issued ordinary shares of Cash Converters
International Limited, a public company headquartered in Perth, Australia. EZCORP paid AUS $0.50
per share, for a total investment of AUS $54,109,000 (approximately $49.4 million U.S.), and now
owns approximately 30% of the outstanding ordinary shares of Cash Converters. The Cash Converters
shares are listed on the Australian Stock Exchange (symbol, “CCV”) and the London Stock Exchange
(symbol, “CCVU”). On November 4, 2009, the closing sales price on the Australian Stock Exchange
was AUS $0.54. Completion of the investment follows approval of the transaction by the
shareholders of Cash Converters at a general meeting of shareholders held on October 29 in Perth.
Cash Converters franchises and operates a worldwide network of about 500 financial services and
retail stores, which provide pawn loans, short-term unsecured loans, and other consumer finance
products, and buy and sell used merchandise. Cash Converters opened its first retail outlet in
1984 and has been franchising stores worldwide for over twenty years. Cash Converters has
developed a globally recognized brand, has successfully expanded their international presence, and
has introduced a number of innovative financial products and services, most recently short-term
secured and unsecured consumer loans. Cash Converters now owns and operates 17 locations in
Australia and 21 locations in the United Kingdom, and has more than 450 franchised stores in 21
countries, including 119 in Australia, 116 in the United Kingdom and significant presences in
Spain, South Africa and France. During the past several years, Cash Converters has been buying
back franchised locations and converting them into company operated stores. The proceeds of the
EZCORP investment will be used to accelerate this buy back activity, as well as increase the Cash
Converters portfolio of short-term consumer loans in Australia and the U.K.
The terms of the investment limit the size of the Cash Converters board of directors to a total of
five members and entitle EZCORP to nominate two of those five directors. In connection with
completion of the investment, William C. Love and Joseph J. Beal, both members of the EZCORP board
of directors, have been appointed to serve on the Cash Converters board. The other members of the
Cash Converters board are Reginald Webb (Non-Executive Chairman), Peter Cumins (Managing Director
of Cash Converters) and John Yeudall (an independent director). In addition, the terms of the
investment provide that one of EZCORP’s board nominees may fill the position of chairman of the
board if and when that position becomes vacant. The right to maintain two board nominees and to
fill the position of Chairman will continue so long as EZCORP owns at least 20% of the outstanding
Cash Converters shares.
Joe Rotunda, EZCORP’s President and Chief Executive Officer, stated: “We are excited about this
opportunity to expand EZCORP’s global presence and visibility. Combined with the ongoing
significant expansion of our store-front footprint in Mexico and Canada, as well as our significant
investment in Albemarle & Bond in the U.K., this investment provides strategic diversification and
access to additional global market opportunities. We believe that Cash Converters’ profitability
and rate of growth can be enhanced with the benefit of our operational expertise, strategic advice,
and capital resources. We have developed an excellent relationship with the Cash Converters
leadership team and look forward to working with them in a mutually beneficial, long-term
partnership.”
For the year ended June 30, 2009, Cash Converters reported revenue of AUS $94.4 million (a 27%
increase over the prior year), net profit of AUS $16.2 million (a 6.5% increase), and basic
earnings per share of AUS $0.0677 (an increase of 7.8%) For the year, Cash Converters paid
dividends of AUS $0.03 per share. Further information about Cash Converters is available through
their website at www.cashconverters.com.
EZCORP funded the investment primarily with cash on hand and expects the investment to be
immediately accretive to earnings.
About EZCORP
EZCORP provides loans or credit services to customers 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. The Company also offers a variety of short-term
consumer loans, including payday loans, installment loans and auto title loans, or fee-based credit
services to customers seeking loans.
At September 30, 2009, EZCORP operated a total of 910 locations in the U.S., Mexico and Canada,
consisting of 369 U.S. pawnshops, 62 pawnshops in Mexico, 477 U.S. loan stores and 2 loan stores in
Canada. The Company also has significant investments in Albemarle & Bond Holdings PLC, one of the
U.K.’s largest pawnbroking businesses with 115 stores, and Cash
1
Converters International Limited,
which franchises and operates approximately 500 locations worldwide.
This announcement contains forward-looking statements, including Cash Converters’ planned use of
investment proceeds, the expected impact of EZCORP’s investment and relationship on Cash
Converters’ profitability and growth, and the expected earnings
accretion for EZCORP. These statements are based on EZCORP’s current expectations. Actual results
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. For a discussion of various factors affecting EZCORP’s business and
prospects, see EZCORP’s annual, quarterly and other reports filed with the Securities and Exchange
Commission.
For additional information, contact Dan Tonissen at (512) 314-2289.
2
EXHIBIT 99.2
EZCORP’S NET INCOME INCREASES 31%
AUSTIN, Texas (November 5, 2009) — EZCORP, Inc. (Nasdaq: EZPW) announced today results for its
fourth fiscal quarter and 2009 fiscal year ended September 30, 2009.
EZCORP’s net income for the quarter ended September 30, 2009 increased 31% to $20.9 million ($0.42
per share) compared to $16.0 million ($0.37 per share) for the prior year quarter. Total revenues
for the quarter increased 34% to $164.8 million, primarily from a 43% increase in total sales
(merchandise and jewelry scrapping) and a 39% increase in pawn service charges. Operating income
improved 64% to $30.3 million (31% of net revenue) compared to $18.5 million (25% of net revenue)
in the prior year quarter.
For the twelve months ended September 30, 2009, net income increased 31% to $68.5 million ($1.42
per share) compared to $52.4 million ($1.21 per share) for the prior year. Total revenues grew 31%
to $597.5 million while operating income increased 38% to $101.5 million.
Acquisitions completed in November and December 2008 contributed net income of $4.2 million and
$10.7 million in the current quarter and fiscal year. After the effect of shares issued, the
acquisitions contributed approximately $0.04 and $0.11 per share in the current quarter and fiscal
year.
Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “This is
our 29th consecutive quarter and ninth consecutive year of earnings growth. We continue
to deliver strong operating results with a strong balance sheet even in this tough economic
environment. These results clearly demonstrate the value of our strategy to build earning assets
through the pursuit of quality acquisitions, new store openings, and leveraging our store base
through the introduction of new loan products.”
Rotunda continued, “We expect fiscal 2010 earnings of $1.65 to $1.69 per share, with $0.41 to $0.43
per share for the December quarter, representing earnings growth of approximately 18% and 27%.
This includes the expected accretion from our $49 million strategic investment in Cash Converters
completed earlier today. In fiscal 2010, we plan to open 40 to 50 Empeño Fácil pawn locations in
Mexico, 35 to 45 Cash-Max payday loan locations in Canada, and 6 pawnshops in the United States.”
EZCORP provides loans or credit services to customers 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. The Company also offers a variety of short-term
consumer loans, including payday loans, installment loans and auto title loans, or fee-based credit
services to customers seeking loans from unaffiliated lenders.
At September 30, 2009, EZCORP operated a total of 910 locations in the U.S., Mexico and Canada
consisting of 369 U.S. pawnshops, 62 Mexico pawnshops, 477 U.S. short-term loan stores and 2 Canada
short-term loan stores. The Company also has strategic investments in Albemarle & Bond Holdings
PLC, one of the U.K.’s largest pawnbroking businesses with 115 stores, and Cash Converters
International Ltd., an operator and franchisor of approximately 500 locations worldwide.
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 investments 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 November 5, 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=63071
For additional information, contact Dan Tonissen at (512) 314-2289.
1
EZCORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
| Three Months Ended September 30, | ||||||||
| 2009 | 2008 | |||||||
Revenues: |
||||||||
Merchandise sales |
$ | 48,381 | $ | 34,926 | ||||
Jewelry scrapping sales |
40,313 | 27,162 | ||||||
Pawn service charges |
37,392 | 26,860 | ||||||
Signature loan fees |
34,935 | 33,561 | ||||||
Auto title loan fees |
1,923 | — | ||||||
Other |
1,857 | 893 | ||||||
Total revenues |
164,801 | 123,402 | ||||||
Cost of goods sold: |
||||||||
Cost of merchandise sales |
30,216 | 20,490 | ||||||
Cost of jewelry scrapping sales |
25,557 | 17,180 | ||||||
Total cost of goods sold |
55,773 | 37,670 | ||||||
Bad debt: |
||||||||
Signature loan bad debt |
10,379 | 12,303 | ||||||
Auto title loan bad debt |
227 | — | ||||||
Total bad debt |
10,606 | 12,303 | ||||||
Net revenue |
98,422 | 73,429 | ||||||
Operations expense |
54,282 | 41,619 | ||||||
Administrative expense |
10,605 | 9,533 | ||||||
Depreciation and amortization |
3,275 | 3,327 | ||||||
(Gain) / Loss on sale/disposal of assets |
(57 | ) | 412 | |||||
Operating income |
30,317 | 18,538 | ||||||
Interest income |
(24 | ) | (118 | ) | ||||
Interest expense |
361 | 192 | ||||||
Equity in net income of unconsolidated affiliate |
(1,853 | ) | (1,180 | ) | ||||
Other |
— | (3 | ) | |||||
Income before income taxes |
31,833 | 19,647 | ||||||
Income tax expense |
10,894 | 3,616 | ||||||
Net income |
$ | 20,939 | $ | 16,031 | ||||
Net income per share, diluted |
$ | 0.42 | $ | 0.37 | ||||
Weighted average shares, diluted |
49,287 | 43,468 | ||||||
2
EZCORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
| Year Ended September 30, | ||||||||
| 2009 | 2008 | |||||||
Revenues: |
||||||||
Merchandise sales |
$ | 204,674 | $ | 155,828 | ||||
Jewelry scrapping sales |
118,922 | 76,732 | ||||||
Pawn service charges |
130,169 | 94,244 | ||||||
Signature loan fees |
133,344 | 128,478 | ||||||
Auto title loan fees |
3,589 | — | ||||||
Other |
6,758 | 2,121 | ||||||
Total revenues |
597,456 | 457,403 | ||||||
Cost of goods sold: |
||||||||
Cost of merchandise sales |
126,564 | 92,612 | ||||||
Cost of jewelry scrapping sales |
77,025 | 46,790 | ||||||
Total cost of goods sold |
203,589 | 139,402 | ||||||
Bad debt: |
||||||||
Signature loan bad debt |
33,553 | 37,150 | ||||||
Auto title loan bad debt |
380 | — | ||||||
Total bad debt |
33,933 | 37,150 | ||||||
Net revenue |
359,934 | 280,851 | ||||||
Operations expense |
206,237 | 158,927 | ||||||
Administrative expense |
40,497 | 34,951 | ||||||
Depreciation and amortization |
12,746 | 12,354 | ||||||
(Gain) / Loss on sale/disposal of assets |
(1,024 | ) | 939 | |||||
Operating income |
101,478 | 73,680 | ||||||
Interest income |
(281 | ) | (477 | ) | ||||
Interest expense |
1,425 | 420 | ||||||
Equity in net income of unconsolidated affiliate |
(5,016 | ) | (4,342 | ) | ||||
Other |
38 | 8 | ||||||
Income before income taxes |
105,312 | 78,071 | ||||||
Income tax expense |
36,840 | 25,642 | ||||||
Net income |
$ | 68,472 | $ | 52,429 | ||||
Net income per share, diluted |
$ | 1.42 | $ | 1.21 | ||||
Weighted average shares, diluted |
48,076 | 43,327 | ||||||
3
EZCORP, Inc.
Highlights of Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data and store counts)
Highlights of Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data and store counts)
| As of September 30, | ||||||||
| 2009 | 2008 | |||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 44,764 | $ | 27,444 | ||||
Pawn loans |
101,684 | 75,936 | ||||||
Signature loans, net |
8,357 | 7,124 | ||||||
Pawn service charges receivable, net |
18,187 | 12,755 | ||||||
Auto title loans, net |
1,663 | 1 | ||||||
Auto title loan finance charges receivable, net |
529 | — | ||||||
Signature loan fees receivable, net |
5,599 | 5,406 | ||||||
Inventory, net |
64,001 | 43,209 | ||||||
Deferred tax asset |
15,670 | 10,926 | ||||||
Prepaid expenses and other assets |
16,927 | 9,115 | ||||||
Total current assets |
277,381 | 191,916 | ||||||
Investment in unconsolidated affiliate |
38,851 | 38,439 | ||||||
Property and equipment, net |
51,154 | 40,079 | ||||||
Deferred tax asset, non-current |
6,311 | 8,139 | ||||||
Goodwill |
100,719 | 24,376 | ||||||
Other assets, net |
18,101 | 5,771 | ||||||
Total assets |
$ | 492,517 | $ | 308,720 | ||||
Liabilities and stockholders’ equity: |
||||||||
Current liabilities: |
||||||||
Current maturities of long-term debt |
$ | 10,000 | $ | — | ||||
Accounts payable and other accrued expenses |
33,838 | 29,425 | ||||||
Customer layaway deposits |
4,175 | 2,327 | ||||||
Federal income taxes payable |
572 | 246 | ||||||
Total current liabilities |
48,585 | 31,998 | ||||||
Long-term debt, less current maturities |
25,000 | — | ||||||
Deferred gains and other long-term liabilities |
3,247 | 3,672 | ||||||
Total stockholders’ equity |
415,685 | 273,050 | ||||||
Total liabilities and stockholders’ equity |
$ | 492,517 | $ | 308,720 | ||||
Pawn loan balance per ending pawn store |
$ | 236 | $ | 229 | ||||
Inventory per ending pawn store |
$ | 148 | $ | 130 | ||||
Book value per share |
$ | 8.54 | $ | 6.58 | ||||
Tangible book value per share |
$ | 6.14 | $ | 5.89 | ||||
Pawn store count — end of period |
431 | 332 | ||||||
Signature loan store count — end of period |
479 | 477 | ||||||
Shares outstanding — end of period |
48,703 | 41,525 | ||||||
4
EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)
Operating Segment Results (Unaudited)
(in thousands, except store counts)
| U.S. Pawn | Empeño | EZMONEY | ||||||||||||||
| Operations | Fácil | Operations | Consolidated | |||||||||||||
Three months ended September 30, 2009: |
||||||||||||||||
Revenues: |
||||||||||||||||
Sales |
$ | 85,554 | $ | 3,131 | $ | 9 | $ | 88,694 | ||||||||
Pawn service charges |
35,838 | 1,554 | — | 37,392 | ||||||||||||
Signature loan fees |
527 | — | 34,408 | 34,935 | ||||||||||||
Auto title loan fees |
322 | — | 1,601 | 1,923 | ||||||||||||
Other |
1,780 | 77 | — | 1,857 | ||||||||||||
Total revenues |
124,021 | 4,762 | 36,018 | 164,801 | ||||||||||||
Cost of goods sold |
53,747 | 2,020 | 6 | 55,773 | ||||||||||||
Signature loan bad debt |
247 | — | 10,132 | 10,379 | ||||||||||||
Auto title loan bad debt |
52 | — | 175 | 227 | ||||||||||||
Net revenues |
69,975 | 2,742 | 25,705 | 98,422 | ||||||||||||
Operations expense |
37,761 | 1,809 | 14,712 | 54,282 | ||||||||||||
Store operating income |
$ | 32,214 | $ | 933 | $ | 10,993 | $ | 44,140 | ||||||||
Pawn store count — end of period |
369 | 62 | — | 431 | ||||||||||||
Signature loan store count — end of period |
6 | — | 473 | 479 | ||||||||||||
Three months ended September 30, 2008: |
||||||||||||||||
Revenues: |
||||||||||||||||
Sales |
$ | 60,001 | $ | 2,087 | $ | — | $ | 62,088 | ||||||||
Pawn service charges |
25,343 | 1,517 | — | 26,860 | ||||||||||||
Signature loan fees |
651 | — | 32,910 | 33,561 | ||||||||||||
Auto title loan fees |
— | — | — | — | ||||||||||||
Other |
893 | — | — | 893 | ||||||||||||
Total revenues |
86,888 | 3,604 | 32,910 | 123,402 | ||||||||||||
Cost of goods sold |
36,289 | 1,381 | — | 37,670 | ||||||||||||
Signature loan bad debt |
367 | — | 11,936 | 12,303 | ||||||||||||
Auto title loan bad debt |
— | — | — | — | ||||||||||||
Net revenues |
50,232 | 2,223 | 20,974 | 73,429 | ||||||||||||
Operations expense |
25,753 | 1,328 | 14,538 | 41,619 | ||||||||||||
Store operating income |
$ | 24,479 | $ | 895 | $ | 6,436 | $ | 31,810 | ||||||||
Pawn store count — end of period |
294 | 38 | — | 332 | ||||||||||||
Signature loan store count — end of period |
6 | — | 471 | 477 | ||||||||||||
5
EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)
Operating Segment Results (Unaudited)
(in thousands, except store counts)
| U.S. Pawn | Empeño | EZMONEY | ||||||||||||||
| Operations | Fácil | Operations | Consolidated | |||||||||||||
Year ended September 30, 2009: |
||||||||||||||||
Revenues: |
||||||||||||||||
Sales |
$ | 313,048 | $ | 10,539 | $ | 9 | $ | 323,596 | ||||||||
Pawn service charges |
124,396 | 5,773 | — | 130,169 | ||||||||||||
Signature loan fees |
2,293 | — | 131,051 | 133,344 | ||||||||||||
Auto title loan fees |
1,313 | — | 2,276 | 3,589 | ||||||||||||
Other |
6,646 | 112 | — | 6,758 | ||||||||||||
Total revenues |
447,696 | 16,424 | 133,336 | 597,456 | ||||||||||||
Cost of goods sold |
196,914 | 6,669 | 6 | 203,589 | ||||||||||||
Signature loan bad debt |
828 | — | 32,725 | 33,553 | ||||||||||||
Auto title loan bad debt |
124 | — | 256 | 380 | ||||||||||||
Net revenues |
249,830 | 9,755 | 100,349 | 359,934 | ||||||||||||
Operations expense |
140,525 | 5,833 | 59,879 | 206,237 | ||||||||||||
Store operating income |
$ | 109,305 | $ | 3,922 | $ | 40,470 | $ | 153,697 | ||||||||
Pawn store count — end of period |
369 | 62 | — | 431 | ||||||||||||
Signature loan store count — end of period |
6 | — | 473 | 479 | ||||||||||||
Year ended September 30, 2008: |
||||||||||||||||
Revenues: |
||||||||||||||||
Sales |
$ | 225,747 | $ | 6,813 | $ | — | $ | 232,560 | ||||||||
Pawn service charges |
89,431 | 4,813 | — | 94,244 | ||||||||||||
Signature loan fees |
2,782 | — | 125,696 | 128,478 | ||||||||||||
Auto title loan fees |
— | — | — | — | ||||||||||||
Other |
2,116 | 5 | — | 2,121 | ||||||||||||
Total revenues |
320,076 | 11,631 | 125,696 | 457,403 | ||||||||||||
Cost of goods sold |
135,142 | 4,260 | — | 139,402 | ||||||||||||
Signature loan bad debt |
1,108 | — | 36,042 | 37,150 | ||||||||||||
Auto title loan bad debt |
— | — | — | — | ||||||||||||
Net revenues |
183,826 | 7,371 | 89,654 | 280,851 | ||||||||||||
Operations expense |
98,581 | 4,141 | 56,205 | 158,927 | ||||||||||||
Store operating income |
$ | 85,245 | $ | 3,230 | $ | 33,449 | $ | 121,924 | ||||||||
Pawn store count — end of period |
294 | 38 | — | 332 | ||||||||||||
Signature loan store count — end of period |
6 | — | 471 | 477 | ||||||||||||
6