EX-99 2 d16929exv99.txt PRESS RELEASE EXHIBIT 99 EZCORP ANNOUNCES THIRD QUARTER RESULTS AUSTIN, TEXAS (JULY 20, 2004) -- EZCORP, Inc. (Nasdaq/NM: EZPW) announced today results for its third fiscal 2004 quarter and the nine month period, which ended June 30, 2004. For the quarter ended June 30, 2004, net income increased to $253,000 ($0.02 per share) compared to $53,000 for the prior year period. Total revenues for the third fiscal 2004 quarter increased 9% to $51,141,000 compared $46,903,000 for the third fiscal 2003 quarter. For the nine months ended June 30, 2004, net income improved to $6,250,000 ($0.48 per share) compared to income before the cumulative effect of a change in accounting principle of $3,836,000 ($0.31 per share) for the same nine month period a year ago. Effective October 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 142, which deals with the accounting treatment of goodwill and other intangible assets. After a charge of $8,037,000 ($0.65 per share) for the cumulative effect of adopting this new accounting principle, the Company reported a net loss for the nine month period ended June 30, 2003 of $4,201,000 ($0.34 cents per share). Commenting on these results, Joseph L. Rotunda, President and Chief Executive Officer, said, "We remain pleased with our progress. Not only have we substantially improved earnings, but we have also significantly expanded our store base. In the first three quarters of this fiscal year, we have added eighty-one EZMoney Payday Loan stores, for a total of eighty-five, and improved earnings 63% even with the earnings drag of these new stores." Mr. Rotunda concluded, "Most gratifying is that all three business segments - pawn, sales, and payday loans - showed year-on-year improvements. We are on target to have an excellent year. We estimate fiscal 2004 earnings to be between sixty-five and sixty-eight cents per share compared to a comparable forty-three cents per share for fiscal 2003. During our fourth fiscal quarter, we plan on adding thirty-five to forty additional EZMONEY Payday Loan locations. EZCORP meets the short-term cash needs of the cash and credit constrained consumer by offering convenient, non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, and short-term non-collateralized loans, often referred to as payday loans. The Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. As of June 30, 2004, the Company operated 280 EZPAWN and 85 EZMONEY Payday Loan stores, 69 of which adjoin an EZPAWN location. 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 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 20, 2004 at 3:30pm Central Time. The conference call can be accessed over the Internet (or replay it at your convenience) at the following address. http://www.firstcallevents.com/service/ajwz407992886gf12.html 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 and store counts) -------------------------------------------------------------------------------
THREE MONTHS ENDED JUNE 30, --------------------------- 2004 2003 ------------ ------------ 1 Revenues: 2 Merchandise sales $ 25,845 $ 24,863 3 Jewelry scrapping sales 4,937 5,149 4 Pawn service charges 13,835 13,619 5 Payday loan service charges 6,191 3,047 6 Other revenues 333 225 ------------ ------------ 7 Total revenues 51,141 46,903 8 Cost of goods sold: 9 Cost of merchandise sales 15,566 15,442 10 Cost of jewelry scrapping sales 3,774 4,272 ------------ ------------ 11 Total cost of goods sold 19,340 19,714 ------------ ------------ 12 Net revenues 31,801 27,189 13 14 Operations expense 21,830 19,700 15 Bad debt and other direct expenses on payday loans 2,832 1,111 16 Administrative expense 4,614 4,021 17 Depreciation and amortization 1,858 2,179 ------------ ------------ 18 Operating income 667 178 19 20 Interest expense, net 332 403 21 Equity in net income of unconsolidated affiliate (430) (333) 22 Loss on sale of assets -- 27 ------------ ------------ 23 Income before income taxes 765 81 24 Income tax expense 512 28 ------------ ------------ 25 Income before cumulative effect of a change in accounting principle 253 53 26 Cumulative effect of adopting a new accounting principle, net of tax -- -- ------------ ------------ 27 Net income $ 253 $ 53 ============ ============ 28 29 Income per share, assuming dilution: 30 Income before cumulative effect of a change in accounting principle $ 0.02 $ -- 31 Cumulative effect of adopting a new accounting principle, net of tax -- -- ------------ ------------ 32 Net income $ 0.02 $ -- 33 ============ ============ 34 Weighted average shares - assuming dilution 13,221 12,528 35 Pawn store count - average for period 280 280 36 Mono-line payday loan store count - average for period 71 --
EZCORP, INC. HIGHLIGHTS OF CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data and store counts) -------------------------------------------------------------------------------
NINE MONTHS ENDED JUNE 30, ---------------------------- 2004 2003 ------------ ------------ 1 Revenues: 2 Merchandise sales $ 90,095 $ 87,994 3 Jewelry scrapping sales 12,616 11,986 4 Pawn service charges 43,875 43,576 5 Payday loan service charges 16,124 8,798 6 Other revenues 1,034 770 ------------ ------------ 7 Total revenues 163,744 153,124 8 Cost of goods sold: 9 Cost of merchandise sales 52,007 53,380 10 Cost of jewelry scrapping sales 9,123 10,328 ------------ ------------ 11 Total cost of goods sold 61,130 63,708 ------------ ------------ 12 Net revenues 102,614 89,416 13 14 Operations expense 64,382 60,495 15 Bad debt and other direct expenses on payday loans 5,957 3,175 16 Administrative expense 16,854 12,711 17 Depreciation and amortization 5,638 6,636 ------------ ------------ 18 Operating income 9,783 6,399 19 20 Interest expense, net 1,153 1,534 21 Equity in net income of unconsolidated affiliate (1,291) (1,062) 22 Loss on sale of assets -- 26 ------------ ------------ 23 Income before income taxes 9,921 5,901 24 Income tax expense 3,671 2,065 ------------ ------------ 25 Income before cumulative effect of a change in accounting principle 6,250 3,836 26 Cumulative effect of adopting a new accounting principle, net of tax -- (8,037) ------------ ------------ 27 Net income (loss) $ 6,250 $ (4,201) ============ ============ 28 29 Income (loss) per share, assuming dilution: 30 Income before cumulative effect of a change in accounting principle $ 0.48 $ 0.31 31 Cumulative effect of adopting a new accounting principle, net of tax -- (0.65) ------------ ------------ 32 Net income (loss) $ 0.48 $ (0.34) ============ ============ 33 34 Weighted average shares - assuming dilution 13,138 12,474 35 Pawn store count - average for period 280 280 36 Mono-line payday loan store count - average for period 41 --
EZCORP, INC. HIGHLIGHTS OF CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except per share data and store counts) ------------------------------------------------------------------------------
AS OF JUNE 30, 2004 2003 ------------ ------------ 1 Assets: 2 Current assets: 3 Cash and cash equivalents $ 1,692 $ 248 4 Pawn loans 51,101 48,149 5 Payday loans 6,720 3,116 6 Pawn service charges receivable, net 8,557 8,806 7 Payday loan service charges receivable, net 1,336 611 8 Inventory, net 30,997 28,853 9 Deferred tax asset 8,163 6,418 10 Federal income taxes receivable 253 683 11 Prepaid expenses and other assets 2,287 2,209 ------------ ------------ 12 Total current assets 111,106 99,093 13 Investment in unconsolidated affiliates 15,734 15,113 14 Property and equipment, net 25,222 27,141 15 Deferred tax asset, non-current 4,391 1,948 16 Other assets 5,602 5,348 ------------ ------------ 17 Total assets $ 162,055 $ 148,643 ============ ============ 18 Liabilities and stockholders' equity: 19 Current liabilities: 20 Accounts payable and other accrued expenses $ 11,465 $ 9,186 21 Customer layaway deposits 1,554 1,471 22 Federal income taxes payable -- -- ------------ ------------ 23 Total current liabilities 13,019 10,657 24 Long-term debt, less current maturities 31,200 33,000 25 Deferred gains and other long-term liabilities 4,048 4,408 ------------ ------------ 26 Total long-term liabilities 35,248 37,408 27 Total stockholders' equity 113,788 100,578 ------------ ------------ 28 Total liabilities and stockholders' equity $ 162,055 $ 148,643 ============ ============ 29 30 Pawn loan balance per ending pawn store $ 183 $ 172 31 Inventory per ending pawn store $ 111 $ 103 32 Book value per share $ 9.21 $ 8.25 33 Tangible book value per share $ 8.98 $ 8.03 34 Pawn store count - end of period 280 280 35 Mono-line payday loan store count - end of period 85 -- 36 Shares outstanding - end of period 12,361 12,188