UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): NOVEMBER 9, 2004 EZCORP, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE (STATE OR OTHER JURISDICTION OF INCORPORATION) 0-19424 74-2540145 (COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION NO.) 1901 CAPITAL PARKWAY AUSTIN, TEXAS 78746 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE, INCLUDING ZIP CODE) (512) 314-3400 (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: [ ] 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 204.14d-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 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 November 9, 2004, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the fiscal year and quarter ended September 30, 2004. A copy of the press release is attached hereto as Exhibit 99. ITEM 9.01 EXHIBITS. 99 Press release dated November 9, 2004, 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. EZCORP, INC. (Registrant) Date: November 12, 2004 By: /s/ Daniel N. Tonissen --------------------------------------- (Signature) Senior Vice President, Chief Financial Officer, and Director
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EZCORP EZCORP ANNOUNCES FISCAL FOURTH QUARTER AND YEAREND RESULTS AUSTIN, TEXAS (NOVEMBER 9, 2004) -- EZCORP, Inc. (Nasdaq: EZPW) announced today results for its fiscal fourth quarter and 2004 fiscal year, which ended September 30, 2004. For the quarter ended September 30, 2004, net income increased 66% to $2,621,000 ($0.20 per share) from fiscal 2003 fourth quarter's comparable net income of $1,578,000 ($0.12 per share). Total revenues for the fourth quarter increased 20% to $64,053,000 compared to $53,225,000 for the fiscal 2003 fourth quarter. For the twelve month period ended September 30, 2004, net income increased 64% to $8,871,000 ($0.68 per share) from fiscal 2003's comparable net income of $5,414,000 ($0.43 per share). Total revenues for the fiscal year increased 10% to $227,797,000 from $206,349,000 for fiscal 2003. Comparable net income for the fiscal 2003 periods excludes the impact of several unusual items. For a reconciliation of comparable net income to net income, see the Statement of Operations for the three and twelve month periods that follow. Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "We are quite pleased with our results for the year with all revenue sources improving over the prior year. Total sales increased nearly seven percent with approximately a two and a half percentage point improvement in margins resulting in a fourteen percent increase in sales gross profit. Pawn service charge revenue improved approximately two percent and our ending pawn loan balance was approximately two percent above the prior year. Payday loan service charges increased 90% and our ending payday loan balance was double the prior year's ending balance." Rotunda continued, "During the year, we opened 121 new EZMONEY Payday Loan stores, bringing our total EZMONEY locations to 125. As a group, the performance of these stores is meeting our expectations." Rotunda concluded, "Looking forward to fiscal 2005, we expect to generate earnings per share in the range of $0.90 to $0.95. For our first fiscal 2005 quarter, we expect to generate earnings per share of $0.25 to $0.28. We expect to open between 120 and 140 EZMONEY Payday Loan stores this fiscal year, with approximately 30 of these opening in the first quarter." EZCORP meets the short-term cash needs of the cash and credit constrained consumer by offering convenient, non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, and short-term non-collateralized loans, often referred to as payday loans. The Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. At September 30, 2004, the Company operated 280 EZPAWN and 125 EZMONEY Payday Loan stores, 95 of which adjoin an EZPAWN location. PAGE 1 OF 5
On September 13th, Albemarle and Bond ("A&B"), EZCORP's UK affiliate, announced results for their fiscal year ended June 30, 2004. A&B reported profit after taxes for their fiscal 2004 of 3,461,000 British Pounds (7.46p per share) compared to 3,043,000 British Pounds (6.67p per share) for their fiscal 2003. At June 30, 2004, A&B operated 55 locations in the United Kingdom that offer jewelry only pawn loans, check cashing, and short-term loans. EZCORP owns approximately 29% of the outstanding shares of A&B. This announcement contains certain forward-looking statements regarding the Company's expected performance for future periods including, but not limited to, new unit growth and expected future earnings. Actual results for these periods may materially differ from these statements. Such forward-looking statements involve risks and uncertainties such as changing market conditions in the overall economy and the industry, consumer demand for the Company's services and merchandise, changes in regulatory environment, and other factors periodically discussed in 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 9, 2004 at 3:30pm Central Time. The conference call can be accessed over the Internet (or replay it at your convenience) at the following address. http://phx.corporate-ir.net/playerlink.zhtml?c=69434&s=wm&e=961492 For additional information, contact Dan Tonissen at (512) 314-2289. PAGE 2 OF 5
EZCORP, Inc. HIGHLIGHTS OF CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data and store counts) - -------------------------------------------------------------------------------- Three Months Ended September 30, ---------------------------------- 2004 2003 ---------------------------------- Revenues: Merchandise sales $ 26,721 $ 25,797 Jewelry scrapping sales 14,040 8,813 Pawn service charges 15,215 14,599 Payday loan service charges 7,750 3,739 Other revenues 327 277 ---------------------------------- Total revenues 64,053 53,225 Cost of goods sold: Cost of merchandise sales 15,675 15,227 Cost of jewelry scrapping sales 11,397 7,167 ---------------------------------- Total cost of goods sold 27,072 22,394 ---------------------------------- Net revenues 36,981 30,831 Operations expense 22,480 20,193 Bad debt and other direct expenses on payday loans 3,146 1,510 Administrative expense 5,391 4,297 Depreciation and amortization 1,874 2,137 ---------------------------------- Operating income 4,090 2,694 Interest expense, net 375 472 Equity in net income of unconsolidated affiliate (448) (350) Loss on sale of assets 3 144 Impairment of investment -- 1,100 ---------------------------------- Income before income taxes 4,160 1,328 Income tax expense 1,539 (3,235) ---------------------------------- Income before cumulative effect of adopting a new accounting principle 2,621 4,563 Cumulative effect of adopting a new accounting principle, net of tax -- -- ---------------------------------- Net income $ 2,621 $ 4,563 ================================= Income per share, assuming dilution: Income before cumulative effect of adopting a new accounting principle $ 0.20 $ 0.36 Cumulative effect of adopting a new accounting principle, net of tax -- -- ---------------------------------- Net income $ 0.20 $ 0.36 ================================= Reconciliation of net income to comparable net income (a non-GAAP measure): Net income, as reported $ 2,621 $ 4,563 Add back: Cumulative effect of adopting a new accounting principle, net of tax -- -- Add back: Impairment of investment, net of tax benefit -- 715 Subtract: Reduction of valuation allowance on deferred tax asset -- (3,700) ---------------------------------- Comparable net income (a non-GAAP measure) $ 2,621 $ 1,578 ================================= ---------------------------------- Comparable net income per share, assuming dilution (a non-GAAP measure) $ 0.20 $ 0.12 ================================= Weighted average shares - assuming dilution 13,083 12,694 PAGE 3 OF 5
EZCORP, Inc. HIGHLIGHTS OF CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data and store counts) - -------------------------------------------------------------------------------- Year Ended September 30, ----------------------------- 2004 2003 ----------------------------- Revenues: Merchandise sales $ 116,816 $ 113,792 Jewelry scrapping sales 26,656 20,799 Pawn service charges 59,090 58,175 Payday loan service charges 23,874 12,538 Other revenues 1,361 1,045 ----------------------------- Total revenues 227,797 206,349 Cost of goods sold: Cost of merchandise sales 67,682 68,606 Cost of jewelry scrapping sales 20,520 17,494 ----------------------------- Total cost of goods sold 88,202 86,100 ----------------------------- Net revenues 139,595 120,249 Operations expense 86,862 80,688 Bad debt and other direct expenses on payday loans 9,103 4,685 Administrative expense 22,245 17,008 Depreciation and amortization 7,512 8,775 ----------------------------- Operating income 13,873 9,093 Interest expense, net 1,528 2,006 Equity in net income of unconsolidated affiliate (1,739) (1,412) Loss on sale of assets 3 170 Impairment of investment -- 1,100 ----------------------------- Income before income taxes 14,081 7,229 Income tax expense 5,210 (1,170) ----------------------------- Income before cumulative effect of adopting a new accounting principle 8,871 8,399 Cumulative effect of adopting a new accounting principle, net of tax -- (8,037) ----------------------------- Net income $ 8,871 $ 362 ============================= Income per share, assuming dilution: Income before cumulative effect of adopting a new accounting principle $ 0.68 $ 0.67 Cumulative effect of adopting a new accounting principle, net of tax -- (0.64) ----------------------------- Net income $ 0.68 $ 0.03 ============================= Reconciliation of net income to comparable net income (a non-GAAP measure): Net income, as reported $ 8,871 $ 362 Add back: Cumulative effect of adopting a new accounting principle, net of tax -- 8,037 Add back: Impairment of investment, net of tax benefit -- 715 Subtract: Reduction of valuation allowance on deferred tax asset -- (3,700) ----------------------------- Comparable net income (a non-GAAP measure) $ 8,871 $ 5,414 ============================= ----------------------------- Comparable net income per share, assuming dilution (a non-GAAP measure) $ 0.68 $ 0.43 ============================= Weighted average shares - assuming dilution 13,122 12,552 PAGE 4 OF 5
EZCORP, Inc. Highlights of Consolidated Balance Sheets (Unaudited) (in thousands, except per share data and store counts) - -------------------------------------------------------------------------------- As of September 30, 2004 2003 -------------------------- Assets: Current assets: Cash and cash equivalents $ 2,506 $ 2,496 Pawn loans 49,078 47,955 Payday loans 7,292 3,630 Pawn service charges receivable, net 8,679 8,990 Payday loan service charges receivable, net 1,474 735 Inventory, net 30,636 29,755 Deferred tax asset 9,711 8,163 Federal income taxes receivable -- 328 Prepaid expenses and other assets 2,321 1,726 -------------------------- Total current assets 111,697 103,778 Investment in unconsolidated affiliates 16,101 14,700 Property and equipment, net 25,846 25,369 Deferred tax asset, non-current 4,946 4,391 Other assets 5,732 5,452 -------------------------- Total assets $ 164,322 $ 153,690 ========================== Liabilities and stockholders' equity: Current liabilities: Accounts payable and other accrued expenses $ 15,347 $ 11,101 Customer layaway deposits 1,645 1,792 Federal income taxes payable 1,895 -- -------------------------- Total current liabilities 18,887 12,893 Long-term debt, less current maturities 25,000 31,000 Deferred gains and other long-term liabilities 3,958 4,319 -------------------------- Total long-term liabilities 28,958 35,319 Total stockholders' equity 116,477 105,478 -------------------------- Total liabilities and stockholders' equity $ 164,322 $ 153,690 ========================== Pawn loan balance per ending pawn store $ 175 $ 171 Inventory per ending pawn store $ 109 $ 106 Book value per share $ 9.42 $ 8.65 Tangible book value per share $ 9.21 $ 8.44 Pawn store count - end of period 280 280 Mono-line payday loan store count - end of period 125 4 Shares outstanding - end of period 12,362 12,188 PAGE 5 OF 5