UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):
November 8, 2007

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:

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 8, 2007, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the quarter and fiscal year ended September 30, 2007. 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 November 8, 2007, 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)

EXHIBIT INDEX

99.1		Press release dated November 8, 2007, issued by EZCORP, Inc.

EXHIBIT 99.1

EZCORP ANNOUNCES YEAREND RESULTS

AUSTIN, Texas (November 8, 2007) — EZCORP, Inc. (Nasdaq: EZPW) announced today results for its fourth fiscal quarter and 2007 fiscal year, which ended September 30, 2007.

For the quarter ended September 30, 2007, EZCORP’s net income increased 22% to $11,155,000 ($0.26 per share) compared to $9,168,000 ($0.21 per share) for the quarter ended September 30, 2006. Total revenues for the quarter increased 19% to $103,892,000 while operating income improved 28% to $16,727,000.

For the twelve months ended September 30, 2007, net income increased 29% to $37,874,000 ($0.88 per share) compared to $29,259,000 ($0.69 per share) for the prior year twelve month period. Total revenues grew 18% to $372,215,000 while operating income increased 29% to $55,537,000.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “It has been a busy quarter and year for us. In June, we completed the largest acquisition in our history with the acquisition of the 15 Jumping Jack Cash pawnshop locations in Colorado. In August, we entered into an agreement for our most strategic acquisition in our history, the acquisition of the 20 Mister Money pawnshop locations in Mexico. On October 22^nd, we closed on that acquisition and we now operate 24 pawnshops in Mexico. During the year we continued the expansion of our EZMONEY locations adding a net 99 stores and expanded into four new states.”

Rotunda continued, “In our fourth quarter we saw exceptionally strong performance in our pawn business and continued strong performance in our signature loan business. Our pawn net revenues increased almost 14% in the quarter resulting from 3% same store sales growth, 9% same store pawn service charge growth and the addition of net revenues from the Jumping Jack Cash locations. Our signature loan contribution, or fees less bad debt, increased approximately 30% from the prior year quarter. Our bad debt, measured as a percent of fees of 31% was up approximately five percentage points from the prior year quarter but improved roughly seven percentage points from the June quarter.”

Rotunda concluded, “Looking forward, we will maintain our intensity on growing the business, improving profitability and strengthening our balance sheet. For our fiscal 2008 that began on October 1^st, we expect to deliver earnings per share of approximately $1.12. For our first fiscal 2008 quarter, we expect to generate earnings per share of approximately $0.28. In fiscal 2008, we plan to open approximately 100 EZMONEY locations and seven to ten Mexico pawnshop locations.”

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. The Company offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, in 294 U.S. and four Mexico EZPAWN locations and 20 Mister Money Mexico locations open on November 7, 2007. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. In 434 EZMONEY locations and 75 EZPAWN locations open on November 7, 2007, 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, anticipated benefits of acquisitions and investments 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 November 8, 2007 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=43414

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,
				2007				2006
1		Revenues:
2		Merchandise sales		$	33,101			$	30,022
3		Jewelry scrapping sales			18,198				16,804
4		Pawn service charges			22,055				18,337
5		Signature loan fees			30,215				21,891
6		Other			323				301
7		Total revenues			103,892				87,355
8		Cost of goods sold:
9		Cost of merchandise sales			19,598				18,044
10		Cost of jewelry scrapping sales			12,791				11,133
11		Total cost of goods sold			32,389				29,177
12		Net revenues			71,503				58,178
13
14		Operations expense			34,515				29,643
15		Signature loan bad debt			9,422				5,835
16		Administrative expense			8,221				7,402
17		Depreciation and amortization			2,618				2,208
18		Operating income			16,727				13,090
19
20		Interest income			(155	)			(237	)
21		Interest expense			67				45
22		Equity in net income of unconsolidated affiliate			(760	)			(688	)
23		Loss on sale/disposal of assets			59				55
24		Income before income taxes			17,516				13,915
25		Income tax expense			6,361				4,747
26		Net income		$	11,155			$	9,168
27
28		Net income per share, diluted		$	0.26			$	0.21
29
30		Weighted average shares, diluted			43,215				42,909

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

				Year Ended September 30,
				2007				2006
1		Revenues:
2		Merchandise sales		$	141,094			$	134,326
3		Jewelry scrapping sales			51,893				43,098
4		Pawn service charges			73,551				65,325
5		Signature loan fees			104,347				71,840
6		Other			1,330				1,263
7		Total revenues			372,215				315,852
8		Cost of goods sold:
9		Cost of merchandise sales			83,501				78,459
10		Cost of jewelry scrapping sales			34,506				28,414
11		Total cost of goods sold			118,007				106,873
12		Net revenues			254,208				208,979
13
14		Operations expense			128,602				111,738
15		Signature loan bad debt			28,508				17,897
16		Administrative expense			31,749				27,749
17		Depreciation and amortization			9,812				8,610
18		Operating income			55,537				42,985
19
20		Interest income			(1,654	)			(520	)
21		Interest expense			281				441
22		Equity in net income of unconsolidated affiliate			(2,945	)			(2,433	)
23		Gain on sale/disposal of assets			(72	)			(7	)
24		Income before income taxes			59,927				45,504
25		Income tax expense			22,053				16,245
26		Net income		$	37,874			$	29,259
27
28		Net income per share, diluted		$	0.88			$	0.69
29
30		Weighted average shares, diluted			43,230				42,264

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

				As of September 30,
				2007				2006
1		Assets:
2		Current assets:
3		Cash and cash equivalents		$	22,533			$	29,939
4		Pawn loans			60,742				50,304
5		Payday loans, net			4,814				2,443
6		Pawn service charges receivable, net			10,113				8,234
7		Signature loan fees receivable, net			5,992				4,380
8		Inventory, net			37,942				35,616
9		Deferred tax asset			8,964				7,150
10		Federal income taxes receivable			—				35
11		Prepaid expenses and other assets			6,146				3,907
12		Total current assets			157,246				142,008
13
14		Investment in unconsolidated affiliate			35,746				19,275
15		Property and equipment, net			33,806				29,447
16		Deferred tax asset, non-current			4,765				3,749
17		Goodwill			16,211				768
18		Other assets, net			3,412				2,611
19		Total assets		$	251,186			$	197,858
20		Liabilities and stockholders’ equity:
21		Current liabilities:
22		Accounts payable and other accrued expenses		$	25,592			$	22,579
23		Customer layaway deposits			1,988				1,890
24		Federal income taxes payable			4,795			—
25		Total current liabilities			32,375				24,469
26
27		Deferred gains and other long-term liabilities			2,886				3,249
28		Total stockholders’ equity			215,925				170,140
29		Total liabilities and stockholders’ equity		$	251,186			$	197,858
30
31		Pawn loan balance per ending pawn store		$	204			$	180
32		Inventory per ending pawn store		$	127			$	127
33		Book value per share		$	5.23			$	4.20
34		Tangible book value per share		$	4.77			$	4.13
35		EZPAWN store count — end of period			298				280
36		EZMoney signature loan store count — end of period			433				334
37		Shares outstanding — end of period			41,306				40,485

EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)

				EZPAWN				EZMONEY
				Operations				Operations				Consolidated
		Three months ended September 30, 2007:
1		Revenues:
2		Sales		$	51,299			$	—			$	51,299
3		Pawn service charges			22,055				—				22,055
4		Signature loan fees			828				29,387				30,215
5		Other			323				—				323
6		Total revenues			74,505				29,387				103,892
7
8		Cost of goods sold			32,389				—				32,389
9		Net revenues			42,116				29,387				71,503
10
11		Operating expenses:
12		Operations expense			22,671				11,844				34,515
13		Signature loan bad debt			347				9,075				9,422
14		Total direct expenses			23,018				20,919				43,937
15		Store operating income		$	19,098			$	8,468			$	27,566
16
17		EZPAWN store count — end of period			298				—				298
18		EZMoney signature loan store count — end of period			6				427				433
19
20		Three months ended September 30, 2006:
21		Revenues:
22		Sales		$	46,826			$	—			$	46,826
23		Pawn service charges			18,337				—				18,337
24		Signature loan fees			971				20,920				21,891
25		Other			301				—				301
26		Total revenues			66,435				20,920				87,355
27
28		Cost of goods sold			29,177				—				29,177
29		Net revenues			37,258				20,920				58,178
30
31		Operating expenses:
32		Operations expense			21,453				8,190				29,643
33		Signature loan bad debt			387				5,448				5,835
34		Total direct expenses			21,840				13,638				35,478
35		Store operating income		$	15,418			$	7,282			$	22,700
36
37		EZPAWN store count — end of period			280				—				280
38		EZMoney signature loan store count — end of period			6				328				334

EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)

				EZPAWN				EZMONEY
				Operations				Operations				Consolidated
		Year ended September 30, 2007:
1		Revenues:
2		Sales		$	192,987			$	—			$	192,987
3		Pawn service charges			73,551				—				73,551
4		Signature loan fees			3,314				101,033				104,347
5		Other			1,330				—				1,330
6		Total revenues			271,182				101,033				372,215
7
8		Cost of goods sold			118,007				—				118,007
9		Net revenues			153,175				101,033				254,208
10
11		Operating expenses:
12		Operations expense			87,555				41,047				128,602
13		Signature loan bad debt			1,390				27,118				28,508
14		Total direct expenses			88,945				68,165				157,110
15		Store operating income		$	64,230			$	32,868			$	97,098
16
17		EZPAWN store count — end of period			298				—				298
18		EZMoney signature loan store count — end of period			6				427				433
19
20		Year ended September 30, 2006:
21		Revenues:
22		Sales		$	177,424			$	—			$	177,424
23		Pawn service charges			65,325				—				65,325
24		Signature loan fees			3,155				68,685				71,840
25		Other			1,263				—				1,263
26		Total revenues			247,167				68,685				315,852
27
28		Cost of goods sold			106,873				—				106,873
29		Net revenues			140,294				68,685				208,979
30
31		Operating expenses:
32		Operations expense			84,830				26,908				111,738
33		Signature loan bad debt			1,286				16,611				17,897
34		Total direct expenses			86,116				43,519				129,635
35		Store operating income		$	54,178			$	25,166			$	79,344
36
37		EZPAWN store count — end of period			280				—				280
38		EZMoney signature loan store count — end of period			6				328				334