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AUSTIN, Texas, Nov. 5 /PRNewswire-FirstCall/ -- EZCORP, Inc. (Nasdaq: EZPW) announced today results for its fourth fiscal quarter and 2009 fiscal year ended September 30, 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20090713/EZCORPLOGO)
EZCORP's net income for the quarter ended September 30, 2009 increased 31% to $20.9 million ($0.42 per share) compared to $16.0 million ($0.37 per share) for the prior year quarter. Total revenues for the quarter increased 34% to $164.8 million, primarily from a 43% increase in total sales (merchandise and jewelry scrapping) and a 39% increase in pawn service charges. Operating income improved 64% to $30.3 million (31% of net revenue) compared to $18.5 million (25% of net revenue) in the prior year quarter.
For the twelve months ended September 30, 2009, net income increased 31% to $68.5 million ($1.42 per share) compared to $52.4 million ($1.21 per share) for the prior year. Total revenues grew 31% to $597.5 million while operating income increased 38% to $101.5 million.
Acquisitions completed in November and December 2008 contributed net income of $4.2 million and $10.7 million in the current quarter and fiscal year. After the effect of shares issued, the acquisitions contributed approximately $0.04 and $0.11 per share in the current quarter and fiscal year.
Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "This is our 29th consecutive quarter and ninth consecutive year of earnings growth. We continue to deliver strong operating results with a strong balance sheet even in this tough economic environment. These results clearly demonstrate the value of our strategy to build earning assets through the pursuit of quality acquisitions, new store openings, and leveraging our store base through the introduction of new loan products."
Rotunda continued, "We expect fiscal 2010 earnings of $1.65 to $1.69 per share, with $0.41 to $0.43 per share for the December quarter, representing earnings growth of approximately 18% and 27%. This includes the expected accretion from our $49 million strategic investment in Cash Converters completed earlier today. In fiscal 2010, we plan to open 40 to 50 Empeno Facil pawn locations in Mexico, 35 to 45 Cash-Max payday loan locations in Canada, and 6 pawnshops in the United States."
EZCORP provides loans or credit services to customers who do not have cash resources or access to credit to meet their short-term cash needs. In its pawnshops, 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. The Company also offers a variety of short-term consumer loans, including payday loans, installment loans and auto title loans, or fee-based credit services to customers seeking loans from unaffiliated lenders.
At September 30, 2009, EZCORP operated a total of 910 locations in the U.S., Mexico and Canada consisting of 369 U.S. pawnshops, 62 Mexico pawnshops, 477 U.S. short-term loan stores and 2 Canada short-term loan stores. The Company also has strategic investments in Albemarle & Bond Holdings PLC, one of the U.K.'s largest pawnbroking businesses with 115 stores, and Cash Converters International Ltd., an operator and franchisor of approximately 500 locations worldwide.
This announcement contains certain forward-looking statements regarding the Company's expected operating and financial performance for future periods, including new store expansion, anticipated benefits of acquisitions and investments and expected future earnings. These statements are based on the Company's current expectations. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including changing market conditions in the overall economy and the industry, consumer demand for the Company's services and merchandise, actions of third parties who offer services and products in the Company's locations and changes in the regulatory environment. For a discussion of these and other factors affecting the Company's business and prospects, see 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 5, 2009 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=63071
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,
----------------
2009 2008
---- ----
1 Revenues:
2 Merchandise sales $48,381 $34,926
3 Jewelry scrapping sales 40,313 27,162
4 Pawn service charges 37,392 26,860
5 Signature loan fees 34,935 33,561
6 Auto title loan fees 1,923 -
7 Other 1,857 893
----- ---
8 Total revenues 164,801 123,402
9 Cost of goods sold:
10 Cost of merchandise sales 30,216 20,490
11 Cost of jewelry scrapping sales 25,557 17,180
------ ------
12 Total cost of goods sold 55,773 37,670
13 Bad debt:
14 Signature loan bad debt 10,379 12,303
15 Auto title loan bad debt 227 -
--- ---
16 Total bad debt 10,606 12,303
------ ------
17 Net revenue 98,422 73,429
18
19 Operations expense 54,282 41,619
20 Administrative expense 10,605 9,533
21 Depreciation and amortization 3,275 3,327
22 (Gain) / Loss on sale/disposal of assets (57) 412
--- ---
23 Operating income 30,317 18,538
24
25 Interest income (24) (118)
26 Interest expense 361 192
27 Equity in net income of unconsolidated affiliate (1,853) (1,180)
28 Other - (3)
--- ---
29 Income before income taxes 31,833 19,647
30 Income tax expense 10,894 3,616
------ -----
31 Net income $20,939 $16,031
======= =======
32
----- -----
33 Net income per share, diluted $0.42 $0.37
===== =====
34
35 Weighted average shares, diluted 49,287 43,468
EZCORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
-------------------------------------
Year Ended
September 30,
--------------
2009 2008
---- ----
1 Revenues:
2 Merchandise sales $204,674 $155,828
3 Jewelry scrapping sales 118,922 76,732
4 Pawn service charges 130,169 94,244
5 Signature loan fees 133,344 128,478
6 Auto title loan fees 3,589 -
7 Other 6,758 2,121
----- -----
8 Total revenues 597,456 457,403
9 Cost of goods sold:
10 Cost of merchandise sales 126,564 92,612
11 Cost of jewelry scrapping sales 77,025 46,790
------ ------
12 Total cost of goods sold 203,589 139,402
13 Bad debt:
14 Signature loan bad debt 33,553 37,150
15 Auto title loan bad debt 380 -
--- ---
16 Total bad debt 33,933 37,150
------ ------
17 Net revenue 359,934 280,851
18
19 Operations expense 206,237 158,927
20 Administrative expense 40,497 34,951
21 Depreciation and amortization 12,746 12,354
22 (Gain) / Loss on sale/disposal of assets (1,024) 939
------ ---
23 Operating income 101,478 73,680
24
25 Interest income (281) (477)
26 Interest expense 1,425 420
27 Equity in net income of unconsolidated affiliate (5,016) (4,342)
28 Other 38 8
--- ---
29 Income before income taxes 105,312 78,071
30 Income tax expense 36,840 25,642
------ ------
31 Net income $68,472 $52,429
======= =======
32
----- -----
33 Net income per share, diluted $1.42 $1.21
===== =====
34
35 Weighted average shares, diluted 48,076 43,327
EZCORP, Inc.
Highlights of Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data and store counts)
------------------------------------------------------
As of September
30,
2009 2008
---- ----
1 Assets:
2 Current assets:
3 Cash and cash equivalents $44,764 $27,444
4 Pawn loans 101,684 75,936
5 Signature loans, net 8,357 7,124
6 Pawn service charges receivable, net 18,187 12,755
7 Auto title loans, net 1,663 1
8 Auto title loan finance charges receivable, net 529 -
9 Signature loan fees receivable, net 5,599 5,406
10 Inventory, net 64,001 43,209
11 Deferred tax asset 15,670 10,926
12 Prepaid expenses and other assets 16,927 9,115
------ -----
13 Total current assets 277,381 191,916
14
15 Investment in unconsolidated affiliate 38,851 38,439
16 Property and equipment, net 51,154 40,079
17 Deferred tax asset, non-current 6,311 8,139
18 Goodwill 100,719 24,376
19 Other assets, net 18,101 5,771
------ -----
20 Total assets $492,517 $308,720
======== ========
21 Liabilities and stockholders' equity:
22 Current liabilities:
23 Current maturities of long-term debt $10,000 $-
24 Accounts payable and other accrued expenses 33,838 29,425
25 Customer layaway deposits 4,175 2,327
26 Federal income taxes payable 572 246
--- ---
27 Total current liabilities 48,585 31,998
28
29 Long-term debt, less current maturities 25,000 -
30 Deferred gains and other long-term liabilities 3,247 3,672
31 Total stockholders' equity 415,685 273,050
------- -------
32 Total liabilities and stockholders' equity $492,517 $308,720
======== ========
33
34 Pawn loan balance per ending pawn store $236 $229
35 Inventory per ending pawn store $148 $130
36 Book value per share $8.54 $6.58
37 Tangible book value per share $6.14 $5.89
38 Pawn store count - end of period 431 332
39 Signature loan store count - end of period 479 477
40 Shares outstanding - end of period 48,703 41,525
EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)
Three months ended U.S. Pawn Empeno EZMONEY
September 30, 2009: Operations Facil Operations Consolidated
---------- ----- ---------- ------------
1 Revenues:
2 Sales $85,554 $3,131 $9 $88,694
3 Pawn service charges 35,838 1,554 - 37,392
4 Signature loan fees 527 - 34,408 34,935
5 Auto title loan fees 322 - 1,601 1,923
6 Other 1,780 77 - 1,857
----- --- --- -----
7 Total revenues 124,021 4,762 36,018 164,801
8
9 Cost of goods sold 53,747 2,020 6 55,773
10 Signature loan bad debt 247 - 10,132 10,379
11 Auto title loan bad debt 52 - 175 227
--- --- --- ---
12 Net revenues 69,975 2,742 25,705 98,422
13
14 Operations expense 37,761 1,809 14,712 54,282
------ ----- ------ ------
15 Store operating income $32,214 $933 $10,993 $44,140
======= ==== ======= =======
16
17 Pawn store count -
end of period 369 62 - 431
18 Signature loan store
count - end of period 6 - 473 479
19
20 Three months ended
September 30, 2008:
21 Revenues:
22 Sales $60,001 $2,087 $- $62,088
23 Pawn service charges 25,343 1,517 - 26,860
24 Signature loan fees 651 - 32,910 33,561
25 Auto title loan fees - - - -
26 Other 893 - - 893
--- --- --- ---
27 Total revenues 86,888 3,604 32,910 123,402
28
29 Cost of goods sold 36,289 1,381 - 37,670
30 Signature loan bad debt 367 - 11,936 12,303
31 Auto title loan bad debt - - - -
--- --- --- ---
32 Net revenues 50,232 2,223 20,974 73,429
33
34 Operations expense 25,753 1,328 14,538 41,619
------ ----- ------ ------
35 Store operating income $24,479 $895 $6,436 $31,810
======= ==== ====== =======
36
37 Pawn store count -
end of period 294 38 - 332
38 Signature loan store
count - end of period 6 - 471 477
EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)
Year ended U.S. Pawn Empeno EZMONEY
September 30, 2009: Operations Facil Operations Consolidated
---------- ----- ---------- ------------
1 Revenues:
2 Sales $313,048 $10,539 $9 $323,596
3 Pawn service charges 124,396 5,773 - 130,169
4 Signature loan fees 2,293 - 131,051 133,344
5 Auto title loan fees 1,313 - 2,276 3,589
6 Other 6,646 112 - 6,758
----- --- --- -----
7 Total revenues 447,696 16,424 133,336 597,456
8
9 Cost of goods sold 196,914 6,669 6 203,589
10 Signature loan bad debt 828 - 32,725 33,553
11 Auto title loan bad debt 124 - 256 380
--- --- --- ---
12 Net revenues 249,830 9,755 100,349 359,934
13
14 Operations expense 140,525 5,833 59,879 206,237
------- ----- ------ -------
15 Store operating income $109,305 $3,922 $40,470 $153,697
======== ====== ======= ========
16
17 Pawn store count -
end of period 369 62 - 431
18 Signature loan store
count - end of period 6 - 473 479
19
20 Year ended September 30,
2008:
21 Revenues:
22 Sales $225,747 $6,813 $- $232,560
23 Pawn service charges 89,431 4,813 - 94,244
24 Signature loan fees 2,782 - 125,696 128,478
25 Auto title loan fees - - - -
26 Other 2,116 5 - 2,121
----- --- --- -----
27 Total revenues 320,076 11,631 125,696 457,403
28
29 Cost of goods sold 135,142 4,260 - 139,402
30 Signature loan bad debt 1,108 - 36,042 37,150
31 Auto title loan bad debt - - - -
--- --- --- ---
32 Net revenues 183,826 7,371 89,654 280,851
33
34 Operations expense 98,581 4,141 56,205 158,927
------ ----- ------ -------
35 Store operating income $85,245 $3,230 $33,449 $121,924
======= ====== ======= ========
36
37 Pawn store count -
end of period 294 38 - 332
38 Signature loan store
count - end of period 6 - 471 477
SOURCE EZCORP, Inc.
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