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):
April 24, 2008

EZCORP, INC.

(Exact name of registrant as specified in its charter)

DELAWARE (State or other jurisdiction of incorporation)		0-19424 (Commission File Number)		74-2540145 (I.R.S. Employer Identification No.)

1901 CAPITAL PARKWAY AUSTIN, TEXAS (Address of principal executive offices)		78746 (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 April 24, 2008, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the quarter and six-month periods ended March 31, 2008. 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 April 24, 2008, 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.

EXHIBIT INDEX

99.1

Press release dated April 24, 2008, issued by EZCORP, Inc.

EXHIBIT 99.1

EZCORP ANNOUNCES FISCAL 2008 SECOND QUARTER RESULTS

AUSTIN, Texas (April 24, 2008) — EZCORP, Inc. (Nasdaq: EZPW) announced today results for its fiscal second quarter and six-month period, which ended March 31, 2008.

EZCORP’s net income for the quarter ended March 31, 2008 increased 28% to $13,016,000 ($0.30 per share) compared to $10,196,000 ($0.23 per share) for the quarter ended March 31, 2007. Total revenues for the quarter increased 27% over the prior year period to $113,625,000 with signature loan revenues (payday loan and credit service fees) up 33%, pawn service charges up 32% and total sales (merchandise and jewelry scrapping) up 23%.

In our U.S. EZPAWN operations, store level operating income improved 40% to $22,008,000; and, in our EZMONEY operations store level operating income improved 3% to $9,918,000. Our 26 store EZPAWN Mexico operations contributed $815,000 compared to a slight loss in the prior year period. After administrative expense and depreciation and amortization, consolidated operating income for the quarter improved 33% to $19,793,000 (26% of net revenue) compared to $14,880,000 (25% of net revenue) for the prior year quarter.

EZCORP’s net income for the six-month period ended March 31 2008 increased 28% to $25,571,000 ($0.59 per share) compared to $19,957,000 ($0.46 per share) for the prior year six-month period. Operating income for the six-months improved 33% to $39,085,000 (25% of net revenues) compared to $29,503,000 (24% of net revenues) for the prior year six-month period.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “Our second quarter was another strong quarter for us, exceeding our earnings guidance and increasing our earnings per share by 30% over the prior year. This is our twenty-third consecutive quarter of year over year earnings growth. Our pawn operation was particularly robust while our payday loan operation was challenged with bad debt. To varying degrees and in different directions, I believe both segments are impacted by the stress our customers are feeling in this economic environment.”

Rotunda continued, “We believe each of our business segments can contribute to our growth. In our pawn operation, same store, store level operating income growth of 33% was complemented with $1.1 million from our Jumping Jack Cash acquisition. Our EZMONEY operation continues with de novo growth in the U.S. and we have the prospect of expanding into Canada. We believe our Mexico pawn operation, which is in its infancy, represents a substantial growth opportunity.”

Rotunda concluded, “We are increasing our earnings per share guidance for our 2008 fiscal year to $1.14. We expect earnings per share for our June quarter to be approximately $0.21 and our September quarter to be approximately $0.34. We are lowering our expected EZMONEY store openings from 100 this fiscal year to between 70 and 80, as we have become more cautious in this economic environment. We are increasing the number of Mexico pawn locations we expect to open this fiscal year to a range of ten to twelve from our earlier estimate of seven to ten.”

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 294 U.S. EZPAWN and 26 Mexico Empeno Facil locations open on March 31, 2008, 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 462 EZMONEY locations and 73 EZPAWN locations open on March 31, 2008, 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 April 24, 2008 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=47316

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 March 31,
						2008				2007
	1			Revenues:
	2			Merchandise sales		$	44,675			$	39,507
	3			Jewelry scrapping sales			16,655				10,525
	4			Pawn service charges			21,785				16,556
	5			Signature loan fees			30,166				22,713
	6			Other			344				342
	7			Total revenues			113,625				89,643
	8			Cost of goods sold:
	9			Cost of merchandise sales			27,165				23,576
	10			Cost of jewelry scrapping sales			9,566				6,798
	11			Total cost of goods sold			36,731				30,374
	12			Net revenues			76,894				59,269
	13
	14			Operations expense			37,521				31,104
	15			Signature loan bad debt			6,632				2,916
	16			Administrative expense			9,829				7,968
	17			Depreciation and amortization			3,119				2,40
	18			Operating income			19,793				14,880
	19
	20			Interest income			(137	)			(567	)
	21			Interest expense			75				83
	22			Equity in net income of unconsolidated affiliate			(1,118	)			(820	)
	23			Loss on sale/disposal of assets			81				—
	24			Income before income taxes			20,892				16,184
	25			Income tax expense			7,876				5,988
	26			Net income		$	13,016			$	10,196
	27
	28			Net income per share, diluted		$	0.30			$	0.23
	29
	30			Weighted average shares, diluted			43,228				43,445

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

						Six Months Ended March 31,
						2008				2007
	1			Revenues:
	2			Merchandise sales		$	85,174			$	77,386
	3			Jewelry scrapping sales			31,663				21,626
	4			Pawn service charges			44,693				34,518
	5			Signature loan fees			63,694				47,108
	6			Other			707				692
	7			Total revenues			225,931				181,330
	8			Cost of goods sold:
	9			Cost of merchandise sales			51,416				46,158
	10			Cost of jewelry scrapping sales			18,856				14,039
	11			Total cost of goods sold			70,272				60,197
	12			Net revenues			155,659				121,133
	13
	14			Operations expense			74,592				62,492
	15			Signature loan bad debt			16,302				8,944
	16			Administrative expense			19,734				15,495
	17			Depreciation and amortization			5,946				4,699
	18			Operating income			39,085				29,503
	19
	20			Interest income			(194	)			(881	)
	21			Interest expense			156				147
	22			Equity in net income of unconsolidated affiliate			(2,165	)			(1,465	)
	23			Gain on sale/disposal of assets			243				24
	24			Income before income taxes			41,045				31,678
	25			Income tax expense			15,474				11,721
	26			Net income		$	25,571			$	19,957
	27
	28			Net income per share, diluted		$	0.59			$	0.46
	29
	30			Weighted average shares, diluted			43,241				43,347

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

						As of March 31,
						2008				2007
	1			Assets:
	2			Current assets:
	3			Cash and cash equivalents		$	35,551			$	61,605
	4			Pawn loans			56,701				43,109
	5			Payday loans, net			5,290				3,314
	6			Pawn service charges receivable, net			8,983				6,986
	7			Signature loan fees receivable, net			4,781				4,334
	8			Inventory, net			35,999				28,649
	9			Deferred tax asset			9,006				7,150
	10			Prepaid expenses and other assets			7,281				5,373
	11			Total current assets			163,592				160,520
	12
	13			Investment in unconsolidated affiliate			36,904				20,955
	14			Property and equipment, net			38,413				30,967
	15			Deferred tax asset, non-current			5,346				4,249
	16			Goodwill			24,422				768
	17			Other assets, net			5,350				2,952
	18			Total assets		$	274,027			$	220,411
	19			Liabilities and stockholders’ equity:
	20			Current liabilities:
	21			Accounts payable and other accrued expenses		$	22,202			$	18,594
	22			Customer layaway deposits			2,456				2,168
	23			Federal income taxes payable			2,363				1,104
	24			Total current liabilities			27,021				21,866
	25
	26			Deferred gains and other long-term liabilities			3,003				3,067
	27			Total stockholders’ equity			244,003				195,478
	28			Total liabilities and stockholders’ equity		$	274,027			$	220,411
	29
	30			Pawn loan balance per ending pawn store		$	177			$	153
	31			Inventory per ending pawn store		$	112			$	102
	32			Book value per share		$	5.89			$	4.74
	33			Tangible book value per share		$	5.20			$	4.67
	34			EZPAWN store count — end of period			320				282
	35			EZMoney signature loan store count — end of period			462				369
	36			Shares outstanding — end of period			41,398				41,248

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

						EZPAWN				EZPAWN
						United States				Mexico				EZMONEY
						Operations				Operations				Operations				Consolidated
				Three months ended March 31, 2008:
	1			Revenues:
	2			Sales		$	59,747			$	1,583			$	—			$	61,330
	3			Pawn service charges			20,720				1,065				—				21,785
	4			Signature loan fees			672				—				29,494				30,166
	5			Other			341				3				—				344
	6			Total revenues			81,480				2,651				29,494				113,625
	7
	8			Cost of goods sold			35,784				947				—				36,731
	9			Net revenues			45,696				1,704				29,494				76,894
	10
	11			Operating expenses:
	12			Operations expense			23,521				889				13,111				37,521
	13			Signature loan bad debt			167				—				6,465				6,632
	14			Total direct expenses			23,688				889				19,576				44,153
	15			Store operating income		$	22,008			$	815			$	9,918			$	32,741
	16
	17			EZPAWN store count — end of period			294				26				—				320
	18			EZMoney signature loan store count — end of period			6				—				456				462
	19
	20			Three months ended March 31, 2007:
	21			Revenues:
	22			Sales		$	50,019			$	13			$	—			$	50,032
	23			Pawn service charges			16,548				8				—				16,556
	24			Signature loan fees			792				—				21,921				22,713
	25			Other			342				—				—				342
	26			Total revenues			67,701				21				21,921				89,643
	27
	28			Cost of goods sold			30,367				7				—				30,374
	29			Net revenues			37,334				14				21,921				59,269
	30
	31			Operating expenses:
	32			Operations expense			21,501				58				9,545				31,104
	33			Signature loan bad debt			148				—				2,768				2,916
	34			Total direct expenses			21,649				58				12,313				34,020
	35			Store operating income		$	15,685			$	(44	)		$	9,608			$	25,249
	36
	37			EZPAWN store count — end of period			280				2				—				282
	38			EZMoney signature loan store count — end of period			6				—				363				369

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

						EZPAWN				EZPAWN
						United States				Mexico				EZMONEY
						Operations				Operations				Operations				Consolidated
				Six months ended March 31, 2008:
	1			Revenues:
	2			Sales		$	113,948			$	2,889			$	—			$	116,837
	3			Pawn service charges			42,710				1,983				—				44,693
	4			Signature loan fees			1,481				—				62,213				63,694
	5			Other			703				4				—				707
	6			Total revenues			158,842				4,876				62,213				225,931
	7
	8			Cost of goods sold			68,552				1,720				—				70,272
	9			Net revenues			90,290				3,156				62,213				155,659
	10
	11			Operating expenses:
	12			Operations expense			47,029				1,721				25,842				74,592
	13			Signature loan bad debt			539				—				15,763				16,302
	14			Total direct expenses			47,568				1,721				41,605				90,894
	15			Store operating income		$	42,722			$	1,435			$	20,608			$	64,765
	16
	17			EZPAWN store count — end of period			294				26				—				320
	18			EZMoney signature loan store count — end of period			6				—				456				462
	19
	20			Six months ended March 31, 2007:
	21			Revenues:
	22			Sales		$	98,998			$	14			$	—			$	99,012
	23			Pawn service charges			34,508				10				—				34,518
	24			Signature loan fees			1,704				—				45,404				47,108
	25			Other			692				—				—				692
	26			Total revenues			135,902				24				45,404				181,330
	27
	28			Cost of goods sold			60,188				9				—				60,197
	29			Net revenues			75,714				15				45,404				121,133
	30
	31			Operating expenses:
	32			Operations expense			43,166				120				19,206				62,492
	33			Signature loan bad debt			484				—				8,460				8,944
	34			Total direct expenses			43,650				120				27,666				71,436
	35			Store operating income		$	32,064			$	(105	)		$	17,738			$	49,697
	36
	37			EZPAWN store count — end of period			280				2				—				282
	38			EZMoney signature loan store count — end of period			6				—				363				369