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 20, 2005 EZCORP, INC. (Exact name of registrant as specified in its charter) DELAWARE 0-19424 74-2540145 (State or other jurisdiction of (Commission File (I.R.S. Employer incorporation) Number) 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 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 April 20, 2005, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the quarter ended March 31, 2005. A copy of the press release is attached hereto as Exhibit 99. ITEM 9.01. EXHIBITS. 99 Press release dated April 20, 2005, 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: April 20, 2005 By: /s/ Daniel N. Tonissen ------------------------------------ (Signature) Senior Vice President, Chief Financial Officer, and Director
EXHIBIT INDEX 99 Press release dated April 20, 2005, issued by EZCORP, Inc.
EXHIBIT 99 EZCORP ANNOUNCES 32% EARNINGS GROWTH FOR SECOND QUARTER AUSTIN, Texas (April 20, 2005) -- EZCORP, Inc. (Nasdaq/NM: EZPW) announced today results for its second fiscal quarter and six month period, which ended March 31, 2005. For the quarter ended March 31, 2005, EZCORP's net income improved 32% to $3,969,000 (twenty-nine cents per share) compared to $3,007,000 (twenty-three cents per share) for the prior year period. Total revenues for the second fiscal quarter increased 8% to $63,098,000 compared to $58,289,000 for the prior year second fiscal quarter. After higher cost of goods sold, due to higher levels of sales, and higher operating expense, operating income improved 31% to $5,847,000. Operating income margins for the quarter, measured as a percent of net revenues, improved approximately three percentage points to 15%. For the six months ended March 31, 2005, EZCORP generated net income of $8,918,000 (sixty-six cents per share) compared to $5,997,000 (forty-six cents per share) for the same six month period a year ago. Total revenues increased 11% to $124,726,000 while operating income increased 48% to $13,496,000. Operating income margins for the six months, measured as a percent of net revenue, improved approximately four percentage points to 17%. Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "Our results for the quarter continued our trend of strong year-over-year earnings growth with net income up 32% over the prior year quarter. Once again, payday loans were the strongest contributor to this growth with payday loan service charges up 54%, while our payday loan bad debt and direct transaction expenses increased only 16%. Modest increases in pawn service charge revenue and gross profit on the sale of forfeited collateral also contributed to our performance." Rotunda continued, "While we believe our performance to date has been outstanding, our results are overshadowed by the potential impact on our payday loan business of the FDIC's payday loan guideline change. As we work to understand the full effect of this change, we also are working on several fronts to mitigate any adverse financial impact the changes may have. These fronts include new loan products as well as programs to enhance our pawn business when these changes are implemented. We also are cautiously optimistic about the passing of Texas payday loan legislation." Rotunda concluded, "Given the uncertainty surrounding the FDIC's changes and the impact on our business, we are broadening our range of earnings guidance for the year to $0.95 to $1.05. To the extent that the timing and circumstances surrounding the implementation of the revised guideline are more or less favorable, we would expect to be at the upper or lower end of this earnings guidance range. Until the timing and circumstances of the guideline change are resolved, the potential earnings impact cannot be fully determined." 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. As of March 31, 2005, the Company operated 280 EZPAWN and 192 EZMONEY Payday Loan stores, 135 of which adjoin an EZPAWN location. This announcement contains certain forward-looking statements regarding the Company's expected performance for future periods including, but not limited to, 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 Page 1 of 5
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 April 20, 2005 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=1050585 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) - -------------------------------------------------------------------------------- THREE MONTHS ENDED MARCH 31, --------------------------------- 2005 2004 -------- -------- Revenues: Merchandise sales $ 33,293 $ 33,188 Jewelry scrapping sales 6,966 5,186 Pawn service charges 14,682 14,488 Payday loan service charges 7,828 5,072 Other 329 355 -------- -------- Total revenues 63,098 58,289 Cost of goods sold: Cost of merchandise sales 18,961 18,858 Cost of jewelry scrapping sales 4,940 3,659 -------- -------- Total cost of goods sold 23,901 22,517 -------- -------- Net revenues 39,197 35,772 Operations expense 23,988 21,775 Bad debt and other payday loan direct expenses 1,495 1,286 Administrative expense 5,796 6,378 Depreciation and amortization 2,071 1,865 -------- -------- Operating income 5,847 4,468 Interest expense, net 275 373 Equity in net income of unconsolidated affiliate (636) (496) Loss on sale/disposal of assets 6 -- -------- -------- Income before income taxes 6,202 4,591 Income tax expense 2,233 1,584 -------- -------- Net income $ 3,969 $ 3,007 ======== ======== -------- -------- Net income per share, assuming dilution $ 0.29 $ 0.23 ======== ======== Weighted average shares - assuming dilution 13,755 13,209 PAGE 3 OF 5
EZCORP, INC. HIGHLIGHTS OF CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) - -------------------------------------------------------------------------------- SIX MONTHS ENDED MARCH 31, ---------------------------------- 2005 2004 --------- --------- Revenues: Merchandise sales $ 65,311 $ 64,250 Jewelry scrapping sales 11,272 7,679 Pawn service charges 31,351 30,040 Payday loan service charges 16,118 9,933 Other 674 701 --------- --------- Total revenues 124,726 112,603 Cost of goods sold: Cost of merchandise sales 37,741 36,441 Cost of jewelry scrapping sales 8,073 5,349 --------- --------- Total cost of goods sold 45,814 41,790 --------- --------- Net revenues 78,912 70,813 Operations expense 46,691 42,552 Bad debt and other payday loan direct expenses 3,104 3,125 Administrative expense 11,663 12,240 Depreciation and amortization 3,958 3,780 --------- --------- Operating income 13,496 9,116 Interest expense, net 614 821 Equity in net income of unconsolidated affiliate (1,096) (861) Loss on sale/disposal of assets 43 -- --------- --------- Income before income taxes 13,935 9,156 Income tax expense 5,017 3,159 --------- --------- Net income $ 8,918 $ 5,997 ========= ========= --------- --------- Net income per share, assuming dilution $ 0.66 $ 0.46 ========= ========= Weighted average shares - assuming dilution 13,542 13,101 PAGE 4 OF 5
EZCORP, INC. HIGHLIGHTS OF CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except per share data and store counts) - -------------------------------------------------------------------------------- AS OF MARCH 31, 2005 2004 -------- -------- Assets: Current assets: Cash and cash equivalents $ 1,405 $ 202 Pawn loans 40,081 42,079 Payday loans, net 7,711 4,643 Pawn service charges receivable, net 7,720 7,825 Payday loan service charges receivable, net 1,573 928 Inventory, net 26,967 29,492 Deferred tax asset 9,711 8,163 Prepaid expenses and other assets 5,418 3,054 -------- -------- Total current assets 100,586 96,386 Investment in unconsolidated affiliate 17,094 15,417 Property and equipment, net 26,132 24,642 Deferred tax asset, non-current 4,946 4,391 Other assets, net 3,914 5,366 -------- -------- Total assets $152,672 $146,202 ======== ======== Liabilities and stockholders' equity: Current liabilities: Accounts payable and other accrued expenses $ 13,359 $ 11,668 Customer layaway deposits 1,848 1,842 Federal income taxes payable 271 771 -------- -------- Total current liabilities 15,478 14,281 Long-term debt 6,825 15,000 Deferred gains and other long-term liabilities 3,778 4,139 -------- -------- Total long-term liabilities 10,603 19,139 Total stockholders' equity 126,591 112,782 -------- -------- Total liabilities and stockholders' equity $152,672 $146,202 ======== ======== Pawn loan balance per ending pawn store $ 143 $ 150 Inventory per ending pawn store $ 96 $ 105 Book value per share $ 10.19 $ 9.25 Tangible book value per share $ 9.99 $ 9.04 Pawn store count - end of period 280 280 Mono-line payday loan store count - end of period 192 55 Shares outstanding - end of period 12,428 12,198 PAGE 5 OF 5