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		(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:

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 November 9, 2006, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the year ended September 30, 2006, as well as a stock split. A copy of the press release is attached hereto as Exhibit 99.1.

ITEM 5.03. AMENDMENTS TO ARTICLES OF INCORPORATION OR BYLAWS

Effective November 9, 2006, EZCORP, Inc. amended its Certificate of Incorporation to increase its authorized shares of common stock in preparation for a stock split. The Company increased its authorized Class A Non-voting Common Stock to fifty million shares, and increased its authorized Class B Voting Common Stock to three million shares. Authorized shares of Preferred Stock remained unchanged at five million shares.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

99.1

Press release dated November 9, 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: November 9, 2006		By:		/s/ Daniel N. Tonissen   (Signature)
				Senior Vice President, Chief Financial Officer, and Director

EXHIBIT INDEX

99.1

Press release dated November 9, 2006, issued by EZCORP, Inc.

EXHIBIT 99.1

EZCORP ANNOUNCES YEAREND RESULTS AND THREE-FOR-ONE STOCK SPLIT

AUSTIN, Texas (November 9, 2006) ¾ EZCORP, Inc. (Nasdaq: EZPW) announced today results for its fiscal fourth quarter and 2006 fiscal year, which ended September 30, 2006.

For the quarter ended September, net income increased to $9,168,000 ($0.64 per share) from $3,705,000 ($0.27 per share) for the 2005 fiscal fourth quarter. Total revenues for the quarter increased 19% to $87,355,000 compared to $73,183,000 for the prior year period.

For the twelve month period ended September, net income increased 98% to $29,259,000 ($2.08 per share) from $14,752,000 ($1.09 per share) for fiscal 2005. Total revenues for the fiscal year increased 24% to $315,852,000 from $254,159,000 for fiscal 2005.

The results for the current period include a net benefit of approximately $0.04 per share from three non-recurring items. The prior year results include an unfavorable impact of approximately $0.04 per share due to losses associated with hurricanes Katrina and Rita and expenses directly related to the Company’s conversion of 181 Texas EZMONEY locations to a credit services organization.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “We are pleased and excited with the strong results we have delivered for the quarter and year. The fourth quarter was our seventeenth consecutive quarter of year-over-year earnings growth. Increases in our signature loan contribution, or signature loan fees less bad debt and direct transaction expense, led the improvement with growth of 95% or $7.7 million. Our pawn operation also made a significant contribution with pawn net revenues up $5.4 million or 17%.”

Rotunda continued, “I am pleased to announce that we opened forty-six EZMONEY locations during the fourth quarter, making this fiscal year the third consecutive year of opening more than 100 stores. In addition, we just opened our first pawn store in Mexico and plan to have two more open before the end of January.”

Rotunda concluded, “Looking forward to fiscal 2007, we expect to generate earnings per share in the range of $2.40 to $2.45. For our first fiscal 2007 quarter, we expect to generate earnings per share of $0.58 to $0.60. In fiscal 2007, we plan to continue expansion of our store base by opening approximately 100 new EZMONEY stores and several additional Mexico locations.”

On November 3, 2006, the Company’s Board of Directors declared a three-for-one stock split of its two classes of common stock to shareholders of record as of the close of

business on November 27, 2006. Shares resulting from the stock split are expected to be distributed on or about December 11, 2006. All share and per share figures disclosed in this announcement are presented before the stock split.

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 280 EZPAWN locations open on September 30, 2006, 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 334 EZMONEY locations open on September 30, 2006 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 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, 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=36178

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 September 30,
						2006				2005
	1			Revenues:
	2			Merchandise sales		$	30,022			$	27,538
	3			Jewelry scrapping sales			16,804				13,295
	4			Pawn service charges			18,337				16,201
	5			Payday loan service charges			1,787				2,605
	6			Credit service fees			20,104				13,246
	7			Other			301				298
	8			Total revenues			87,355				73,183
	9			Cost of goods sold:
	10			Cost of merchandise sales			18,044				16,162
	11			Cost of jewelry scrapping sales			11,133				10,281
	12			Total cost of goods sold			29,177				26,443
	13			Net revenues			58,178				46,740
	14
	15			Operations expense			29,487				25,492
	16			Payday loan bad debt and direct transaction expenses			768				1,291
	17			Credit service bad debt and direct transaction expenses			5,223				6,395
	18			Administrative expense			7,402				5,898
	19			Depreciation and amortization			2,208				2,088
	20			Operating income			13,090				5,576
	21
	22			Interest expense (income), net			(192	)			359
	23			Equity in net income of unconsolidated affiliate			(688	)			(572	)
	24			Loss on sale/disposal of assets			55				—
	25			Income before income taxes			13,915				5,789
	26			Income tax expense			4,747				2,084
	27			Net income		$	9,168			$	3,705
	28
	29			Net income per share, diluted		$	0.64			$	0.27
	30
	31			Weighted average shares, diluted			14,303				13,740

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

						Year Ended September 30,
						2006				2005
	1			Revenues:
	2			Merchandise sales		$	134,326			$	118,951
	3			Jewelry scrapping sales			43,098				29,459
	4			Pawn service charges			65,325				62,274
	5			Payday loan service charges			5,389				28,954
	6			Credit service fees			66,451				13,246
	7			Other			1,263				1,275
	8			Total revenues			315,852				254,159
	9			Cost of goods sold:
	10			Cost of merchandise sales			78,459				68,680
	11			Cost of jewelry scrapping sales			28,414				21,998
	12			Total cost of goods sold			106,873				90,678
	13			Net revenues			208,979				163,481
	14
	15			Operations expense			111,110				95,876
	16			Payday loan bad debt and direct transaction expenses			2,525				7,808
	17			Credit service bad debt and direct transaction expenses			16,000				6,395
	18			Administrative expense			27,749				23,067
	19			Depreciation and amortization			8,610				8,104
	20			Operating income			42,985				22,231
	21
	22			Interest expense (income), net			(79	)			1,275
	23			Equity in net income of unconsolidated affiliate			(2,433	)			(2,173	)
	24			(Gain) loss on sale/disposal of assets			(7	)			79
	25			Income before income taxes			45,504				23,050
	26			Income tax expense			16,245				8,298
	27			Net income		$	29,259			$	14,752
	28
	29			Net income per share, diluted		$	2.08			$	1.09
	30
	31			Weighted average shares, diluted			14,088				13,574

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

						As of September 30,
						2006				2005
	1			Assets:
	2			Current assets:
	3			Cash and cash equivalents		$	29,939			$	4,168
	4			Pawn loans			50,304				52,864
	5			Payday loans, net			2,443				1,634
	6			Pawn service charges receivable, net			8,234				9,492
	7			Payday loan service charges receivable, net			426				272
	8			Credit service fees receivable, net			3,954				3,007
	9			Inventory, net			35,616				30,293
	10			Deferred tax asset			7,150				10,534
	11			Federal income taxes receivable			35				—
	12			Prepaid expenses and other assets			3,907				1,998
	13			Total current assets			142,008				114,262
	14			Investment in unconsolidated affiliate			18,920				17,348
	15			Property and equipment, net			29,447				26,964
	16			Deferred tax asset, non-current			3,749				4,012
	17			Other assets, net			3,379				2,862
	18			Total assets		$	197,503			$	165,448
	19			Liabilities and stockholders’ equity:
	20			Current liabilities:
	21			Accounts payable and other accrued expenses		$	22,579			$	18,988
	22			Customer layaway deposits			1,890				1,672
	23			Federal income taxes payable			—				648
	24			Total current liabilities			24,469				21,308
	25
	26			Long-term debt			—				7,000
	27			Deferred gains and other long-term liabilities			3,249				3,597
	28			Total long-term liabilities			3,249				10,597
	29			Total stockholders’ equity			169,785				133,543
	30			Total liabilities and stockholders’ equity		$	197,503			$	165,448
	31
	32			Pawn loan balance per ending pawn store		$	180			$	189
	33			Inventory per ending pawn store		$	127			$	108
	34			Book value per share		$	12.58			$	10.39
	35			Tangible book value per share		$	12.37			$	10.21
	36			Pawn store count — end of period			280				280
	37			Mono-line payday loan store count — end of period			334				234
	38			Shares outstanding — end of period			13,495				12,859