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):
July 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 July 24, 2008, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the quarter ended June 30, 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 July 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 July 24, 2008, issued by EZCORP, Inc.

EXHIBIT 99.1

EZCORP ANNOUNCES FISCAL 2008 THIRD QUARTER RESULTS

AUSTIN, Texas (July 24, 2008) ¾ EZCORP, Inc. (Nasdaq: EZPW) announced today results for its fiscal third quarter and nine-month period, which ended June 30, 2008.

EZCORP’s net income for the quarter ended June 30, 2008 increased 60% to $10,827,000 ($0.25 per share) compared to $6,762,000 ($0.16 per share) for the quarter ended June 30, 2007. Total revenues for the quarter increased 24% over the prior year period to $108,070,000 with pawn service charges up 34%, total sales (merchandise and jewelry scrapping) up 26%, and signature loan revenues (payday loan and credit service fees) up 16%.

In EZCORP’s U.S. EZPAWN operations, store level operating income improved 47% to $19,474,000; and in its EZMONEY operations, store level operating income improved 36% to $9,067,000. EZCORP’s 30 store Empeño Fácil operation contributed $931,000 compared to a slight loss in the prior year period. After administrative expense and depreciation and amortization, consolidated operating income for the quarter improved 78% to $16,584,000 (22% of net revenue) compared to $9,307,000 (15% of net revenue) for the prior year quarter.

EZCORP’s net income for the nine-month period ended June 30, 2008 increased 36% to $36,398,000 ($0.84 per share) compared to $26,719,000 ($0.62 per share) for the prior year nine-month period. Operating income for the nine-months improved 43% to $55,669,000 (24% of net revenues) compared to $38,810,000 (21% of net revenues) for the prior year nine-month period.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “Overall, our third quarter was a great quarter for EZCORP and was our twenty-fourth consecutive quarter of year-over-year earnings growth. Particularly gratifying is that these results are after a two cents per share impact from two non-recurring charges. Once again our results were generated by solid contributions from each of our business segments – EZPAWN and EZMONEY in the U.S. and Empeño Fácil in Mexico.”

Rotunda continued, “I think it’s noteworthy to point out how we believe our business was impacted, both favorably and unfavorably, by the economic stimulus checks, which began distribution in May. During May and June, we realized a slightly lower than expected seasonal demand for loans; however, we saw a favorable impact on retail sales and loan redemptions in our EZPAWN locations and lower levels of bad debt in our EZMONEY locations. While difficult to quantify, we do believe these checks had a net favorable impact on our results in the quarter.”

Rotunda concluded, “As announced on July 8^th, we expect earning per share for our September quarter to be approximately $0.35 per share compared to $0.26 in the prior year period. Included in this guidance is an approximate one cent benefit from our pending Value Financial Services acquisition. This will give us earnings per share of approximately $1.19 for our fiscal 2008 compared to $0.88 for our fiscal 2007. For the fiscal year, we expect to open 70 EZMONEY locations, including 47 opened through June, and twelve Empeño Fácil locations, including six opened through June.”

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 30 Mexico Empeño Fácil locations open on June 30, 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 461 EZMONEY locations and 71 EZPAWN locations open on June 30, 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 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 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.

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,
		2008				2007
Revenues:
Merchandise sales		$	35,728			$	30,607
Jewelry scrapping sales			17,907				12,069
Pawn service charges			22,691				16,978
Signature loan fees			31,223				27,024
Other			521				315
Total revenues			108,070				86,993
Cost of goods sold:
Cost of merchandise sales			20,706				17,745
Cost of jewelry scrapping sales			10,754				7,676
Total cost of goods sold			31,460				25,421
Net revenues			76,610				61,572
Operations expense			38,593				31,595
Signature loan bad debt			8,545				10,142
Administrative expense			9,807				8,033
Depreciation and amortization			3,081				2,495
Operating income			16,584				9,307
Interest income			(165	)			(618	)
Interest expense			72				67
Equity in net income of unconsolidated affiliate			(997	)			(720	)
(Gain) / loss on sale/disposal of assets			284				(155	)
Other			11				—
Income before income taxes			17,379				10,733
Income tax expense			6,552				3,971
Net income		$	10,827			$	6,762
Net income per share, diluted		$	0.25			$	0.16
Weighted average shares, diluted			43,325				43,482

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

		Nine Months Ended June 30,
		2008				2007
Revenues:
Merchandise sales		$	120,902			$	107,993
Jewelry scrapping sales			49,570				33,695
Pawn service charges			67,384				51,496
Signature loan fees			94,917				74,132
Other			1,228				1,007
Total revenues			334,001				268,323
Cost of goods sold:
Cost of merchandise sales			72,122				63,903
Cost of jewelry scrapping sales			29,610				21,715
Total cost of goods sold			101,732				85,618
Net revenues			232,269				182,705
Operations expense			113,185				94,087
Signature loan bad debt			24,847				19,086
Administrative expense			29,541				23,528
Depreciation and amortization			9,027				7,194
Operating income			55,669				38,810
Interest income			(359	)			(1,499	)
Interest expense			228				214
Equity in net income of unconsolidated affiliate			(3,162	)			(2,185	)
(Gain) / loss on sale/disposal of assets			527				(131	)
Other			11				—
Income before income taxes			58,424				42,411
Income tax expense			22,026				15,692
Net income		$	36,398			$	26,719
Net income per share, diluted		$	0.84			$	0.62
Weighted average shares, diluted			43,269				43,393

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

		As of June 30,
		2008				2007
Assets:
Current assets:
Cash and cash equivalents		$	29,812			$	31,686
Pawn loans			68,022				58,053
Payday loans, net			6,598				4,514
Pawn service charges receivable, net			10,061				8,150
Signature loan fees receivable, net			5,086				5,439
Inventory, net			39,444				33,641
Deferred tax asset			9,007				7,344
Federal income taxes receivable			454				—
Prepaid expenses and other assets			5,622				5,197
Total current assets			174,106				154,024
Investment in unconsolidated affiliate			37,248				21,250
Property and equipment, net			38,661				31,895
Deferred tax asset, non-current			5,620				4,536
Goodwill			24,779				16,211
Other assets, net			5,585				3,448
Total assets		$	285,999			$	231,364
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable and other accrued expenses		$	24,120			$	21,658
Customer layaway deposits			2,254				1,888
Federal income taxes payable			—				1,255
Total current liabilities			26,374				24,801
Deferred gains and other long-term liabilities			2,909				2,977
Total stockholders’ equity			256,716				203,586
Total liabilities and stockholders’ equity		$	285,999			$	231,364
Pawn loan balance per ending pawn store		$	210			$	195
Inventory per ending pawn store		$	122			$	113
Book value per share		$	6.19			$	4.93
Tangible book value per share		$	5.50			$	4.47
EZPAWN store count — end of period			324				298
EZMoney signature loan store count — end of period			461				390
Shares outstanding — end of period			41,441				41,300

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

		EZPAWN				EZPAWN
		United States				Mexico				EZMONEY
		Operations				Operations				Operations				Consolidated
Three months ended June 30, 2008:
Revenues:
Sales		$	51,799			$	1,836			$	—			$	53,635
Pawn service charges			21,378				1,313				—				22,691
Signature loan fees			650				—				30,573				31,223
Other			521				—				—				521
Total revenues			74,348				3,149				30,573				108,070
Cost of goods sold			30,301				1,159				—				31,460
Net revenues			44,047				1,990				30,573				76,610
Operating expenses:
Operations expense			24,371				1,059				13,163				38,593
Signature loan bad debt			202				—				8,343				8,545
Total direct expenses			24,573				1,059				21,506				47,138
Store operating income		$	19,474			$	931			$	9,067			$	29,472
EZPAWN store count — end of period			294				30				—				324
EZMoney signature loan store count — end of period			6				—				455				461
Three months ended June 30, 2007:
Revenues:
Sales		$	42,623			$	53			$	—			$	42,676
Pawn service charges			16,955				23				—				16,978
Signature loan fees			782				—				26,242				27,024
Other			315				—				—				315
Total revenues			60,675				76				26,242				86,993
Cost of goods sold			25,395				26				—				25,421
Net revenues			35,280				50				26,242				61,572
Operating expenses:
Operations expense			21,481				117				9,997				31,595
Signature loan bad debt			559				—				9,583				10,142
Total direct expenses			22,040				117				19,580				41,737
Store operating income		$	13,240			$	(67	)		$	6,662			$	19,835
EZPAWN store count — end of period			295				3				—				298
EZMoney signature loan store count — end of period			6				—				384				390

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

		EZPAWN				EZPAWN
		United States				Mexico				EZMONEY
		Operations				Operations				Operations				Consolidated
Nine months ended June 30, 2008:
Revenues:
Sales		$	165,749			$	4,723			$	—			$	170,472
Pawn service charges			64,089				3,295				—				67,384
Signature loan fees			2,131				—				92,786				94,917
Other			1,224				4				—				1,228
Total revenues			233,193				8,022				92,786				334,001
Cost of goods sold			98,853				2,879				—				101,732
Net revenues			134,340				5,143				92,786				232,269
Operating expenses:
Operations expense			71,399				2,781				39,005				113,185
Signature loan bad debt			741				—				24,106				24,847
Total direct expenses			72,140				2,781				63,111				138,032
Store operating income		$	62,200			$	2,362			$	29,675			$	94,237
EZPAWN store count — end of period			294				30				—				324
EZMoney signature loan store count — end of period			6				—				455				461
Nine months ended June 30, 2007:
Revenues:
Sales		$	141,621			$	67			$	—			$	141,688
Pawn service charges			51,464				32				—				51,496
Signature loan fees			2,486				—				71,646				74,132
Other			1,006				1				—				1,007
Total revenues			196,577				100				71,646				268,323
Cost of goods sold			85,583				35				—				85,618
Net revenues			110,994				65				71,646				182,705
Operating expenses:
Operations expense			64,641				243				29,203				94,087
Signature loan bad debt			1,043				—				18,043				19,086
Total direct expenses			65,684				243				47,246				113,173
Store operating income		$	45,310			$	(178	)		$	24,400			$	69,532
EZPAWN store count — end of period			295				3				—				298
EZMoney signature loan store count — end of period			6				—				384				390