EZCORP Announces Changes to Segment Reporting

Apr 18, 2012, 17:05 ET from EZCORP, Inc.

AUSTIN, Texas, April 18, 2012 /PRNewswire/ -- EZCORP, Inc. (Nasdaq: EZPW), a leading provider of instant cash solutions for consumers, today announced changes to its segment reporting.  These changes will be effective beginning with the Company's second fiscal quarter ended March 31, 2012.

(Logo:  http://photos.prnewswire.com/prnh/20090713/EZCORPLOGO)

Previously, the Company reported segments based primarily on product offerings as follows:

  • US Pawn Operations – 468 stores in the U.S. offering primarily pawn, buy/sell and, in 74 cases, unsecured loans and/or auto title loans (or related credit services).
  • Empeno Facil – 205 stores in Mexico offering pawn and buy/sell.
  • EZMONEY Operations – 435 stores in the U.S. offering unsecured loans and/or auto title loans (or related credit services) and 67 stores in Canada offering a mix of unsecured loans and buy/sell.

The Company also owns almost 30% of Albemarle & Bond Holdings PLC (ABM.L) and approximately 33% of Cash Converters International Limited (CCV.ASX), each of which are accounted for under the equity accounting method. Additionally, in January 2012, the Company acquired 60% of Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (doing business under the name "Crediamigo"), an unsecured lending business in Mexico.

The Company's strategy includes both broadening its product offerings and expanding its geographic coverage through strategic partners. Many of its bricks and mortar locations now offer multiple products, including pawn, buy/sell, unsecured loans, auto title loans and the Change Card (the Company's branded, reloadable debit card offering). In addition, the Company is increasingly being organized and managed along geographic lines, with product offerings and channels based on local custom and regulation. The Company has concluded that segment reporting based on geography more closely aligns with its management organization and strategic direction. Accordingly, for periods ending after January 1, 2012, the Company will report segments as follows:

  • U.S. & Canada – All business activities in the United States and Canada.
  • Latin America – All business activities in Mexico and other parts of Latin America.
  • Other International – All business activities in the rest of the world (currently consisting of unsecured loans online in the U.K. and the Company's equity interests in the net income of Albemarle & Bond and Cash Converters International).

Where practical, expenses, including administrative expenses, depreciation and amortization, are allocated to segments. Interest is also allocated to segments where indebtedness is incurred at the local country level and is non-recourse to EZCORP. Expenses that cannot be allocated are included as corporate expenses.

In the tables below, the Company updated its segment reporting for all quarters of the fiscal year ended September 30, 2010, all quarters of the fiscal year ended September 30, 2011 and the quarter ended December 31, 2011:

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Year Ended September 30, 2011

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$           256,846

$             25,237

$                      -

$           282,083

Jewelry scrapping sales

196,482

15,997

-

212,479

Pawn service charges

184,234

16,901

-

201,135

Consumer loan fees

171,951

-

-

171,951

Other

1,547

122

-

1,669

Total revenues

811,060

58,257

-

869,317

Merchandise cost of goods sold

147,388

14,672

-

162,060

Jewelry scrapping cost of goods sold

121,355

12,205

-

133,560

Consumer loan bad debt

38,759

-

-

38,759

Net revenues

503,558

31,380

-

534,938

Operating expenses: 

  Store operations

246,416

20,636

-

267,052

  Administrative

19,444

4,447

795

24,686

  Depreciation

11,211

2,446

-

13,657

  Amortization

456

399

-

855

  Loss on sale/disposal of assets

296

13

-

309

  Interest, net

30

4

-

34

  Equity in net income of unconsolidated affiliates

-

-

(16,237)

(16,237)

  Other

(3)

7

(168)

(164)

Segment contribution

$           225,708

$               3,428

$             15,610

$           244,746

Corporate expenses

56,035

Income before taxes

188,711

Income tax expense

66,552

Net income

122,159

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$           122,159

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Year Ended September 30, 2010

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$           226,424

$             14,030

$                      -

$           240,454

Jewelry scrapping sales

164,022

7,389

-

171,411

Pawn service charges

154,505

9,190

-

163,695

Consumer loan fees

157,022

-

-

157,022

Other

463

-

-

463

Total revenues

702,436

30,609

-

733,045

Merchandise cost of goods sold

131,825

8,459

-

140,284

Jewelry scrapping cost of goods sold

104,701

6,137

-

110,838

Consumer loan bad debt

34,444

-

-

34,444

Net revenues

431,466

16,013

-

447,479

Operating expenses: 

  Store operations

225,006

11,658

-

236,664

  Administrative

16,550

2,763

69

19,382

  Depreciation

9,442

1,453

-

10,895

  Amortization

275

356

-

631

  (Gain)/loss on sale/disposal of assets

1,546

(2)

-

1,544

  Interest, net

-

2

-

2

  Equity in net income of unconsolidated affiliates

-

-

(10,750)

(10,750)

  Other

3

(3)

(93)

(93)

Segment contribution

$           178,644

$                (214)

$             10,774

$           189,204

Corporate expenses

37,674

Income before taxes

151,530

Income tax expense

54,236

Net income

97,294

Net income attributable to noncontrolling interest

-

 

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Three Months Ended December 31, 2011

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$             76,552

$             10,342

$                      -

$             86,894

Jewelry scrapping sales

52,866

3,537

-

56,403

Pawn service charges

54,370

5,422

-

59,792

Consumer loan fees

45,012

-

76

45,088

Other

576

120

-

696

Total revenues

229,376

19,421

76

248,873

Merchandise cost of goods sold

43,451

4,945

-

48,396

Jewelry scrapping cost of goods sold

33,150

2,274

-

35,424

Consumer loan bad debt

10,890

-

135

11,025

Net revenues

141,885

12,202

(59)

154,028

Operating expenses:

  Store operations

68,325

5,998

178

74,501

  Administrative

6,447

1,295

420

8,162

  Depreciation

3,117

680

22

3,819

  Amortization

130

97

-

227

  Gain on sale/disposal of assets

(200)

(1)

-

(201)

  Interest, net

4

(36)

-

(32)

  Equity in net income of unconsolidated affiliates

-

-

(4,161)

(4,161)

  Other

(1,060)

5

(64)

(1,119)

Segment contribution

$             65,122

$               4,164

$               3,546

$             72,832

Corporate expenses

13,341

Income before taxes

59,491

Income tax expense

20,139

Net income

39,352

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$             39,352

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Three Months Ended December 31, 2010

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$             66,305

$               5,575

$                      -

$             71,880

Jewelry scrapping sales

47,203

3,462

-

50,665

Pawn service charges

46,436

3,374

-

49,810

Consumer loan fees

46,310

-

-

46,310

Other

158

3

-

161

Total revenues

206,412

12,414

-

218,826

Merchandise cost of goods sold

38,197

3,114

-

41,311

Jewelry scrapping cost of goods sold

29,617

2,638

-

32,255

Consumer loan bad debt

11,028

-

-

11,028

Net revenues

127,570

6,662

-

134,232

Operating expenses:

  Store operations

60,226

4,278

-

64,504

  Administrative

5,403

937

25

6,365

  Depreciation

2,602

506

-

3,108

  Amortization

115

97

-

212

  Loss on sale/disposal of assets

6

1

-

7

  Interest, net

-

1

-

1

  Equity in net income of unconsolidated affiliates

-

-

(3,367)

(3,367)

  Other

-

-

(61)

(61)

Segment contribution

$             59,218

$                  842

$               3,403

$             63,463

Corporate expenses

20,928

Income before taxes

42,535

Income tax expense

15,106

Net income

27,429

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$             27,429

 

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Three Months Ended December 31, 2009

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$             61,262

$               3,354

$                      -

$             64,616

Jewelry scrapping sales

36,835

607

-

37,442

Pawn service charges

38,941

1,856

-

40,797

Consumer loan fees

41,780

-

-

41,780

Other

116

-

-

116

Total revenues

178,934

5,817

-

184,751

Merchandise cost of goods sold

36,906

2,358

-

39,264

Jewelry scrapping cost of goods sold

22,831

475

-

23,306

Consumer loan bad debt

9,250

-

-

9,250

Net revenues

109,947

2,984

-

112,931

Operating expenses:

  Store operations

56,017

2,164

-

58,181

  Administrative

3,726

598

67

4,391

  Depreciation

2,224

267

-

2,491

  Amortization

38

88

-

126

  Loss on sale/disposal of assets

211

-

-

211

  Interest, net

-

(2)

-

(2)

  Equity in net income of unconsolidated affiliates

-

-

(1,283)

(1,283)

  Other

(1)

(9)

(5)

(15)

Segment contribution

$             47,732

$                (122)

$               1,221

$             48,831

Corporate expenses

9,004

Income before taxes

39,827

Income tax expense

14,120

Net income

25,707

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$             25,707

 

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Three Months Ended March 31, 2011

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$             72,420

$               5,353

$                      -

$             77,773

Jewelry scrapping sales

44,351

3,644

-

47,995

Pawn service charges

43,073

3,696

-

46,769

Consumer loan fees

40,472

-

-

40,472

Other

220

25

-

245

Total revenues

200,536

12,718

-

213,254

Merchandise cost of goods sold

41,484

3,155

-

44,639

Jewelry scrapping cost of goods sold

28,848

3,077

-

31,925

Consumer loan bad debt

5,740

-

-

5,740

Net revenues

124,464

6,486

-

130,950

Operating expenses:

  Store operations

61,196

4,849

-

66,045

  Administrative

4,407

1,079

27

5,513

  Depreciation

2,764

578

-

3,342

  Amortization

121

100

-

221

  Gain on sale/disposal of assets

(178)

-

-

(178)

  Interest, net

-

1

-

1

  Equity in net income of unconsolidated affiliates

-

-

(4,691)

(4,691)

  Other

3

1

-

4

Segment contribution

$             56,151

$                (122)

$               4,664

$             60,693

Corporate expenses

11,411

Income before taxes

49,282

Income tax expense

17,444

Net income

31,838

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$             31,838

 

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Three Months Ended March 31, 2010

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$             63,049

$               3,259

$                      -

$             66,308

Jewelry scrapping sales

34,466

1,762

-

36,228

Pawn service charges

36,256

2,050

-

38,306

Consumer loan fees

35,598

-

-

35,598

Other

144

-

-

144

Total revenues

169,513

7,071

-

176,584

Merchandise cost of goods sold

37,058

2,023

-

39,081

Jewelry scrapping cost of goods sold

21,507

1,574

-

23,081

Consumer loan bad debt

4,717

-

-

4,717

Net revenues

106,231

3,474

-

109,705

Operating expenses:

  Store operations

55,632

2,573

-

58,205

  Administrative

4,124

634

2

4,760

  Depreciation

2,328

340

-

2,668

  Amortization

72

84

-

156

  (Gain)/loss on sale/disposal of assets

383

(3)

-

380

  Interest, net

-

1

-

1

  Equity in net income of unconsolidated affiliates

-

-

(3,306)

(3,306)

  Other

13

(1)

-

12

Segment contribution

$             43,679

$                (154)

$               3,304

$             46,829

Corporate expenses

9,834

Income before taxes

36,995

Income tax expense

13,222

Net income

23,773

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$             23,773

 

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Three Months Ended June 30, 2011

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$             58,173

$               6,401

$                      -

$             64,574

Jewelry scrapping sales

46,514

4,257

-

50,771

Pawn service charges

43,846

4,519

-

48,365

Consumer loan fees

38,870

-

-

38,870

Other

566

6

-

572

Total revenues

187,969

15,183

-

203,152

Merchandise cost of goods sold

32,924

3,767

-

36,691

Jewelry scrapping cost of goods sold

28,951

3,486

-

32,437

Consumer loan bad debt

11,027

-

-

11,027

Net revenues

115,067

7,930

-

122,997

Operating expenses:

  Store operations

61,347

5,406

-

66,753

  Administrative

4,293

1,014

506

5,813

  Depreciation

2,828

639

-

3,467

  Amortization

117

104

-

221

  Loss on sale/disposal of assets

157

12

-

169

  Interest, net

20

2

-

22

  Equity in net income of unconsolidated affiliates

-

-

(4,099)

(4,099)

  Other

2

2

(107)

(103)

Segment contribution

$             46,303

$                  751

$               3,700

$             50,754

Corporate expenses

10,100

Income before taxes

40,654

Income tax expense

14,127

Net income

26,527

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$             26,527

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Three Months Ended June 30, 2010

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$             49,749

$               3,529

$                      -

$             53,278

Jewelry scrapping sales

41,592

2,181

-

43,773

Pawn service charges

37,014

2,410

-

39,424

Consumer loan fees

36,954

-

-

36,954

Other

113

-

-

113

Total revenues

165,422

8,120

-

173,542

Merchandise cost of goods sold

27,749

1,961

-

29,710

Jewelry scrapping cost of goods sold

27,413

1,862

-

29,275

Consumer loan bad debt

9,753

-

-

9,753

Net revenues

100,507

4,297

-

104,804

Operating expenses:

  Store operations

54,953

2,999

-

57,952

  Administrative

4,307

741

-

5,048

  Depreciation

2,387

423

-

2,810

  Amortization

59

92

-

151

  Loss on sale/disposal of assets

732

1

-

733

  Interest, net

-

1

-

1

  Equity in net income of unconsolidated affiliates

-

-

(2,930)

(2,930)

  Other

(10)

(2)

(88)

(100)

Segment contribution

$             38,079

$                    42

$               3,018

$             41,139

Corporate expenses

9,502

Income before taxes

31,637

Income tax expense

11,675

Net income

19,962

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$             19,962

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Three Months Ended September 30, 2011

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$             59,948

$               7,908

$                      -

$             67,856

Jewelry scrapping sales

58,414

4,634

-

63,048

Pawn service charges

50,879

5,312

-

56,191

Consumer loan fees

46,299

-

-

46,299

Other

603

88

-

691

Total revenues

216,143

17,942

-

234,085

Merchandise cost of goods sold

34,783

4,636

-

39,419

Jewelry scrapping cost of goods sold

33,939

3,004

-

36,943

Consumer loan bad debt

10,964

-

-

10,964

Net revenues

136,457

10,302

-

146,759

Operating expenses:

  Store operations

63,647

6,103

-

69,750

  Administrative

5,341

1,417

237

6,995

  Depreciation

3,017

723

-

3,740

  Amortization

103

98

-

201

  Loss on sale/disposal of assets

311

-

-

311

  Interest, net

10

-

-

10

  Equity in net income of unconsolidated affiliates

-

-

(4,080)

(4,080)

  Other

(8)

4

-

(4)

Segment contribution

$             64,036

$               1,957

$               3,843

$             69,836

Corporate expenses

13,596

Income before taxes

56,240

Income tax expense

19,875

Net income

36,365

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$             36,365

EZCORP, Inc.

Operating Segment Results

(In Thousands)

Three Months Ended September 30, 2010

U.S. & Canada

Latin America

Other International

Consolidated

Revenues:

Merchandise sales

$             52,364

$               3,888

$                      -

$             56,252

Jewelry scrapping sales

51,129

2,839

-

53,968

Pawn service charges

42,294

2,874

-

45,168

Consumer loan fees

42,690

-

-

42,690

Other

90

-

-

90

Total revenues

188,567

9,601

-

198,168

Merchandise cost of goods sold

30,112

2,117

-

32,229

Jewelry scrapping cost of goods sold

32,950

2,226

-

35,176

Consumer loan bad debt

10,724

-

-

10,724

Net revenues

114,781

5,258

-

120,039

Operating expenses: 

  Store operations

58,404

3,922

-

62,326

  Administrative

4,393

790

-

5,183

  Depreciation

2,503

423

-

2,926

  Amortization

106

92

-

198

  Loss on disposal of assets

220

-

-

220

  Interest, net

-

2

-

2

  Equity in net income of unconsolidated affiliates

-

-

(3,231)

(3,231)

  Other

1

9

-

10

Segment contribution

$             49,154

$                    20

$               3,231

$             52,405

Corporate expenses

9,334

Income before taxes

43,071

Income tax expense

15,219

Net income

27,852

Net income attributable to noncontrolling interest

-

Net income attributable to EZCORP, Inc.

$             27,852

About EZCORP

EZCORP is a leading provider of instant cash solutions for consumers.  Through more than 1,200 company-operated pawn, buy/sell and personal financial services stores in the U.S., Mexico and Canada, we provide a variety of instant cash solutions, including pawn loans, payday loans, installment loans, auto title loans, and fee-based credit services to customers seeking loans.  At our pawn and buy/sell stores, we also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers.

EZCORP owns a controlling interest in Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (doing business under the name "Crediamigo"), a leading provider of payroll deduction loans in Mexico.  The company also has significant investments in Albemarle & Bond Holdings PLC (ABM.L), one of the U.K.'s largest pawnbroking businesses with over 170 full-line stores offering pawnbroking, jewelry retailing, gold buying and financial services; and in Cash Converters International Limited (CCV.L and CCV.ASX), which franchises and operates a worldwide network of over 600 stores that provide personal financial services and sell pre-owned merchandise.

EZCORP Investor Relations (512) 314-2220 Investor_Realtions@ezcorp.com www.ezcorp.com

SOURCE EZCORP, Inc.



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http://www.ezcorp.com