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): JULY 25, 2006 EZCORP, INC. (Exact name of registrant as specified in its charter) DELAWARE 0-19424 74-2540145 (State or other jurisdiction of (Commission File Number) (I.R.S. Employer incorporation) 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 July 25, 2006, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the quarter ended June 30, 2006. 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 25, 2006, 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: July 25, 2006 By: /s/ Daniel N. Tonissen ------------------------- (Signature) Senior Vice President, Chief Financial Officer, and Director
EXHIBIT INDEX 99.1 Press release dated July 25, 2006, issued by EZCORP, Inc.
EXHIBIT 99.1 EZCORP ANNOUNCES THIRD FISCAL QUARTER RESULTS AUSTIN, TEXAS (JULY 25, 2006) -- EZCORP, Inc. (Nasdaq: EZPW) announced today results for its third fiscal quarter and nine month period, which ended June 30, 2006. For the quarter ended June 30, 2006, EZCORP's net income increased 163% to $5,608,000 ($0.40 per share) compared to $2,129,000 ($0.16 per share) for the quarter ended June 30, 2005. Total revenues for the third fiscal quarter increased 31% to $73,786,000 while operating income improved 155% to $8,040,000. Operating income margins for the quarter, measured as a percent of net revenues, improved approximately eight percentage points to 16%. For the nine months ended June 30, 2006, EZCORP's net income increased 82% to $20,091,000 ($1.44 per share) compared to $11,047,000 ($0.82 per share) for the same nine month period a year ago. Total revenues grew 26% to $228,497,000 while operating income increased 79% to $29,895,000. Operating income margins for the nine months, measured as a percent of net revenue, improved approximately six percentage points to 20%. Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "We continue to be pleased with our strong momentum and the continuation of our five-plus year trend of growing our earnings and profitably expanding our business. Our fiscal third quarter is the 16th consecutive quarter of year-over-year earnings growth. This quarter we increased earnings 163% over the prior year quarter. We are especially pleased with the strong performance of our pawn operation as well as the continued strong performance of our signature loan business." Rotunda continued, "Our pawn contribution or pawn net revenues improved 17% in the third quarter as a result of a 35% increase in sales gross profit and a 2% increase in pawn service charges. Higher gold values assisted in delivering this strong pawn performance. Our signature loan contribution, or fees less bad debt and direct transaction expenses, increased 78% over the prior year quarter. The maturation of our 288 EZMONEY stores opened in the last three years fueled this significant growth." Rotunda concluded, "Our earnings guidance for the fourth fiscal 2006 quarter is $0.43 to $0.46 per share compared to $0.27 per share for the fiscal 2005 fourth quarter. For our 2006 fiscal year, we are raising guidance to $1.87 to $1.90 per share compared to fiscal 2005's $1.09 per share. Included in our guidance is an expected earnings drag of approximately $0.07 to $0.10 per share for stores open less than nine months."
EZCORP is a lender and provider of credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. In 280 EZPAWN locations, 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 288 EZMONEY locations and 82 EZPAWN locations, the Company offers short-term non-collateralized loans, often referred to as payday loans, or fee based credit services to customers seeking loans. This announcement contains certain forward-looking statements regarding the Company's expected performance for future periods including, but not limited to, new store expansion 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 the 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 July 25, 2006 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=34480 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, ----------------------------- 2006 2005 ----------------------------- 1 Revenues: 2 Merchandise sales $ 29,612 $ 26,102 3 Jewelry scrapping sales 11,028 4,892 4 Pawn service charges 15,021 14,722 5 Payday loan service charges 1,347 10,231 6 Credit service fees 16,474 -- 7 Other 304 303 -------------------- 8 Total revenues 73,786 56,250 9 Cost of goods sold: 10 Cost of merchandise sales 16,868 14,777 11 Cost of jewelry scrapping sales 6,830 3,644 -------------------- 12 Total cost of goods sold 23,698 18,421 -------------------- 13 Net revenues 50,088 37,829 14 15 Operations expense 27,402 23,693 16 Payday loan bad debt and direct transaction expenses 635 3,413 17 Credit service bad debt and direct transaction expenses 5,038 -- 18 Administrative expense 6,830 5,506 19 Depreciation and amortization 2,143 2,058 -------------------- 20 Operating income 8,040 3,159 21 22 Interest expense (income), net (150) 302 23 Equity in net income of unconsolidated affiliate (557) (505) 24 (Gain) loss on sale/disposal of assets (70) 36 -------------------- 25 Income before income taxes 8,817 3,326 26 Income tax expense 3,209 1,197 -------------------- 27 Net income $ 5,608 $ 2,129 ==================== 28 -------------------- 29 Net income per share, assuming dilution $ 0.40 $ 0.16 ==================== 30 31 Weighted average shares - assuming dilution 14,186 13,434
EZCORP, INC. HIGHLIGHTS OF CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) NINE MONTHS ENDED JUNE 30, -------------------------- 2006 2005 -------------------------- 1 Revenues: 2 Merchandise sales $ 104,304 $ 91,413 3 Jewelry scrapping sales 26,294 16,164 4 Pawn service charges 46,988 46,073 5 Payday loan service charges 3,602 26,349 6 Credit service fees 46,347 -- 7 Other 962 977 ---------------------- 8 Total revenues 228,497 180,976 9 Cost of goods sold: 10 Cost of merchandise sales 60,415 52,518 11 Cost of jewelry scrapping sales 17,281 11,717 ---------------------- 12 Total cost of goods sold 77,696 64,235 ---------------------- 13 Net revenues 150,801 116,741 14 15 Operations expense 81,623 70,384 16 Payday loan bad debt and direct transaction expenses 1,757 6,517 17 Credit service bad debt and direct transaction expenses 10,777 -- 18 Administrative expense 20,347 17,169 19 Depreciation and amortization 6,402 6,016 ---------------------- 20 Operating income 29,895 16,655 21 22 Interest expense, net 113 916 23 Equity in net income of unconsolidated affiliate (1,745) (1,601) 24 (Gain) loss on sale/disposal of assets (62) 79 ---------------------- 25 Income before income taxes 31,589 17,261 26 Income tax expense 11,498 6,214 ---------------------- 27 Net income $ 20,091 $ 11,047 ====================== 28 ---------------------- 29 Net income per share, assuming dilution $ 1.44 $ 0.82 ====================== 30 31 Weighted average shares - assuming dilution 13,974 13,507
EZCORP, INC. HIGHLIGHTS OF CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except per share data and store counts) - -------------------------------------------------------------------------------- AS OF JUNE 30, 2006 2005 -------------------- 1 Assets: 2 Current assets: 3 Cash and cash equivalents $ 22,731 $ 1,972 4 Pawn loans 48,932 50,888 5 Payday loans, net 1,966 11,089 6 Pawn service charges receivable, net 7,037 9,020 7 Payday loan service charges receivable, net 329 2,244 8 Credit service fees receivable, net 3,379 -- 9 Inventory, net 32,937 28,956 10 Deferred tax asset 8,365 9,711 11 Note receivable from related party -- 1,500 12 Prepaid expenses and other assets 3,340 3,197 ------------------- 13 Total current assets 129,016 118,577 14 Investment in unconsolidated affiliate 17,870 17,110 15 Property and equipment, net 27,283 26,147 16 Deferred tax asset, non-current 3,669 4,946 17 Other assets, net 3,245 4,205 ------------------- 18 Total assets $181,083 $170,985 =================== 19 Liabilities and stockholders' equity: 20 Current liabilities: 21 Accounts payable and other accrued expenses $ 18,517 $ 13,651 22 Customer layaway deposits 1,734 1,559 23 Federal income taxes payable 752 1,452 ------------------- 24 Total current liabilities 21,003 16,662 25 26 Long-term debt -- 21,900 27 Deferred gains and other long-term liabilities 3,339 3,687 ------------------- 28 Total long-term liabilities 3,339 25,587 29 Total stockholders' equity 156,741 128,736 ------------------- 30 Total liabilities and stockholders' equity $181,083 $170,985 =================== 31 32 Pawn loan balance per ending pawn store $ 175 $ 182 33 Inventory per ending pawn store $ 118 $ 103 34 Book value per share $ 11.85 $ 10.34 35 Tangible book value per share $ 11.65 $ 10.15 36 Pawn store count - end of period 280 280 37 Mono-line payday loan store count - end of period 288 203 38 Shares outstanding - end of period 13,226 12,446