EZCORP Announces Fiscal Fourth Quarter and Yearend Results
SR 22 InsurancePayday Loans EZCORP, Inc.
(Nasdaq: EZPW) announced today results for its fiscal fourth quarter and 2005
fiscal year, which ended September 30, 2005.
For the quarter ended September, net income increased 29% to $3,705,000
($0.27 per share) from $2,873,000 ($0.22 per share) for the 2004 fiscal fourth
quarter. Total revenues for the quarter increased 14% to $73,183,000 compared
to $64,053,000 for the prior year period.
For the twelve month period ended September, net income increased 62% to
$14,752,000 ($1.09 per share) from $9,123,000 ($0.70 per share) for fiscal
2004. Total revenues for the fiscal year increased 12% to $254,159,000 from
$227,797,000 for fiscal 2004.
Commenting on these results, President and Chief Executive Officer, Joe
Rotunda, stated, "The fourth quarter is our thirteenth consecutive quarter of
year-over-year earnings growth and caps off a very successful year. For the
quarter, all elements of our business contributed to our strong performance.
Signature loan finance charges and fees, after bad debt & direct transaction
expenses, increased 77% from the prior year. Pawn service charges improved 6%
from portfolio growth and yield improvement. Gross profit on sales increased
5% as a result of 3% same store sales growth and better jewelry scrapping
margins."
Rotunda continued, "The results for the quarter are especially strong in
light of the challenges we faced due to hurricanes Katrina and Rita and to the
conversion of 181 Texas EZMoney stores to a credit services organization, or
CSO. As a result of the hurricanes, we lost approximately 500 store days
during the quarter. The direct financial impact on the quarter from the
hurricanes was approximately $500,000, or just over two cents per share,
mainly from lost revenues. In July, we announced the CSO conversion.
Included in our results for the quarter is approximately $450,000, or two
cents per share, of expenses directly related to this conversion, largely
signage, point of purchase materials, and legal expense."
Rotunda concluded, "Looking forward to fiscal 2006, we expect to generate
earnings per share in the range of $1.45 to $1.50. For our first fiscal 2006
quarter, we expect to generate earnings per share of $0.42 to $0.45. In
fiscal 2006, we plan to continue expansion of our EZMoney brand by opening
between 115 and 125 new 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. In 280 EZPAWN locations, 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 234 EZMoney locations and 98 EZPAWN locations, 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 unit growth 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
November 10, 2005 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://phx.corporate-ir.net/playerlink.zhtml?c=69434&s=wm&e=1157852
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,
2005 2004
1 Revenues:
2 Merchandise sales $27,538 $26,721
3 Jewelry scrapping sales 13,295 14,040
4 Pawn service charges 16,201 15,215
5 Payday loan service charges 2,605 7,750
6 Credit service fees 13,246 ---
7 Other 298 327
8 Total revenues 73,183 64,053
9 Cost of goods sold:
10 Cost of merchandise sales 16,162 15,675
11 Cost of jewelry scrapping sales 10,281 11,397
12 Total cost of goods sold 26,443 27,072
13 Net revenues 46,740 36,981
14
15 Operations expense 25,492 22,480
16 Payday loan bad debt and other
direct expenses 1,291 3,146
17 Credit service bad debt and other
direct expenses 6,395 ---
18 Administrative expense 5,898 4,991
19 Depreciation and amortization 2,088 1,874
20 Operating income 5,576 4,490
21
22 Interest expense, net 359 375
23 Equity in net income of
unconsolidated affiliate (572) (448)
24 Loss on sale/disposal of assets --- 3
25 Income before income taxes 5,789 4,560
26 Income tax expense 2,084 1,687
27 Net income $3,705 $2,873
28
29 Net income per share, assuming dilution $0.27 $0.22
30
31 Weighted average shares - assuming dilution 13,740 13,083
EZCORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Year Ended September 30,
2005 2004
1 Revenues:
2 Merchandise sales $118,951 $116,816
3 Jewelry scrapping sales 29,459 26,656
4 Pawn service charges 62,274 59,090
5 Payday loan service charges 28,954 23,874
6 Credit service fees 13,246 ---
7 Other 1,275 1,361
8 Total revenues 254,159 227,797
9 Cost of goods sold:
10 Cost of merchandise sales 68,680 67,682
11 Cost of jewelry scrapping sales 21,998 20,520
12 Total cost of goods sold 90,678 88,202
13 Net revenues 163,481 139,595
14
15 Operations expense 95,876 86,862
16 Payday loan bad debt and other
direct expenses 7,808 9,103
17 Credit service bad debt and other
direct expenses 6,395 ---
18 Administrative expense 23,067 21,845
19 Depreciation and amortization 8,104 7,512
20 Operating income 22,231 14,273
21
22 Interest expense, net 1,275 1,528
23 Equity in net income of
unconsolidated affiliate (2,173) (1,739)
24 Loss on sale/disposal of assets 79 3
25 Income before income taxes 23,050 14,481
26 Income tax expense 8,298 5,358
27 Net income $14,752 $9,123
28
29 Net income per share, assuming dilution $1.09 $0.70
30
31 Weighted average shares - assuming dilution 13,574 13,122
EZCORP, Inc.
Highlights of Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data and store counts)
As of September 30,
2005 2004
1 Assets:
2 Current assets:
3 Cash and cash equivalents $4,168 $2,506
4 Pawn loans 52,864 49,078
5 Payday loans, net 1,634 7,292
6 Pawn service charges receivable, net 9,492 8,679
7 Payday loan service charges
receivable, net 272 1,474
8 Credit service fees receivable, net 3,007 ---
9 Inventory, net 30,293 30,636
10 Deferred tax asset 10,534 9,711
11 Prepaid expenses and other assets 1,998 2,321
12 Total current assets 114,262 111,697
13 Investment in unconsolidated affiliate 17,348 16,101
14 Property and equipment, net 26,964 25,846
15 Deferred tax asset, non-current 4,012 4,946
16 Other assets, net 2,862 5,732
17 Total assets $165,448 $164,322
18 Liabilities and stockholders' equity:
19 Current liabilities:
20 Accounts payable and other accrued
expenses $18,988 $14,947
21 Customer layaway deposits 1,672 1,645
22 Federal income taxes payable 648 2,043
23 Total current liabilities 21,308 18,635
24
25 Long-term debt 7,000 25,000
26 Deferred gains and other long-
term liabilities 3,597 3,958
27 Total long-term liabilities 10,597 28,958
28 Total stockholders' equity 133,543 116,729
29 Total liabilities and
stockholders' equity $165,448 $164,322
30
31 Pawn loan balance per ending pawn store $189 $175
32 Inventory per ending pawn store $108 $109
33 Book value per share $10.39 $9.44
34 Tangible book value per share $10.21 $9.23
35 Pawn store count - end of period 280 280
36 Mono-line payday loan store count
- end of period 234 125
37 Shares outstanding - end of period 12,859 12,362
SOURCE EZCORP, Inc.
