EZCORP Announces Second Quarter Earnings

Apr 24, 2001, 01:00 ET from EZCORP, Inc.

    AUSTIN, Texas, April 24 /PRNewswire Interactive News Release/ --
 EZCORP, Inc. (Nasdaq:   EZPW) announced today results for its second fiscal
 2001 quarter and the six month period, which ended March 31, 2001.
     For the three months ended March 31, 2001, EZCORP is reporting operating
 income before depreciation and amortization of $5.1 million compared to
 $1.9 million in the prior year period, an increase of $3.2 million.  After
 higher depreciation, amortization, and interest expense, net income for the
 period increased to $33,000 ($0.00 per diluted share) compared to a prior year
 net loss of $1.3 million ($0.11 per diluted share).  Total revenues for the
 three month period decreased to $48.8 million from $53.7 million primarily due
 to the closure of forty-seven under performing stores.  Total revenues per
 store increased 5% over the prior year quarter to $168,000 compared to
 $160,000.
     For the six months ended March 31, 2001, operating income before
 depreciation and amortization increased 62% to $11.3 million compared to prior
 year operating income before depreciation and amortization of $7.0 million.
 Net income for the six month fiscal 2001 period is $1.1 million ($0.09 per
 diluted share) compared to a prior year net loss of $14.4 million after the
 $14.3 million charge for the cumulative effect of the accounting change
 adopted at the start of the fiscal 2000 year.
     Commenting on these results, Joseph L. Rotunda, President and Chief
 Executive Officer, said, "We are pleased with the progress we have made in our
 core business, in both earnings and day to day operations.  Our loan growth is
 healthy with same store loan balances up 9% from the same period a year ago.
 We have managed our operating expenses exceptionally well and have seen them
 decline in total, as a percent of net revenues, and on a per store basis
 compared to a year ago.  Store inventory levels at the end of the quarter are
 slightly above last year, $118,000 per store v. $117,000, but we turned our
 inventory for the quarter faster, 2.4 v. 2.3 times annualized, with three
 percentage points of margin improvement.  While our sales are softer than we
 would have liked, down 5% on a same store basis for the quarter, we had same
 store growth in March and expect same store growth in April."
     Mr. Rotunda went on to add, "During the quarter we began to roll out our
 short term loan product, commonly referred to as payday loans, and now have it
 available in over 200 stores.  While this will have a negligible impact on our
 third quarter, we expect it to be a key contributor to earnings growth in the
 future as this product ramps up over the next several months."
     Concluding, Mr. Rotunda stated, "We continue to be optimistic about our
 business.  Many of the initiatives we have implemented are having the desired
 impact, as demonstrated in the business results.  Despite this, we continue to
 have room for improvement and our greatest potential is still in front of us."
     EZCORP offers consumers convenient, non-recourse loans collateralized by
 tangible personal property, and short-term non-collateralized loans, often
 referred to as payday loans.  A secondary, but related, business activity is
 the selling of previously owned merchandise consisting primarily of forfeited
 collateral.  At March 31, 2001, the Company operated 289 stores in twelve
 states.
 
 
                                   EZCORP, Inc.
           Highlights of Consolidated Results of Operations (Unaudited)
               (in thousands, except per share data and store count)
 
                                                       A                 B
                                                   Three Months Ended March 31,
                                                      2001              2000
 
      1  Total revenues                             $48,819           $53,697
      2  Cost of goods sold                          21,435            24,687
      3  Net revenues                                27,384            29,010
      4  Operating expenses                          22,274            27,141
      5    Operating income before depreciation
            and amortization                          5,110             1,869
      6  Depreciation and amortization                2,814             2,561
      7    Operating income (loss)                    2,296              (692)
      8  Interest expense, net                        2,332             1,200
      9  Equity in net income of
          unconsolidated affiliate                     (110)              (83)
      10 (Gain) / loss on sale of assets                 (1)              129
      11 Income (loss) before income taxes               75            (1,938)
      12 Income tax expense (benefit)                    42              (659)
      13 Income (loss) before cumulative effect
          of a change in accounting principle            33            (1,279)
      14 Cumulative effect of changing to
          a different revenue recognition method        ---               ---
      15 Net income (loss)                              $33           $(1,279)
 
      16   Per share income (loss) before cumulative
            effect of a change in accounting
            principle                                 $0.00            $(0.11)
      17   Per share cumulative effect of changing
            to a different revenue recognition
            method                                     $---              $---
      18   Per share net income (loss)                $0.00            $(0.11)
 
      19 Weighted average shares - fully diluted     12,087            12,014
      20 Store count - average for period               290               335
 
 
                                    EZCORP, Inc.
            Highlights of Consolidated Results of Operations (Unaudited)
               (in thousands, except per share data and store count)
 
                                                        A                 B
                                                    Six Months Ended March 31,
                                                      2001              2000
 
      1  Total revenues                             $96,060           $107,637
      2  Cost of goods sold                          39,533             47,370
      3  Net revenues                                56,527             60,267
      4  Operating expenses                          45,229             53,276
      5    Operating income before depreciation
            and amortization                         11,298              6,991
      6  Depreciation and amortization                5,248              5,083
      7    Operating income (loss)                    6,050              1,908
      8  Interest expense, net                        4,520              2,532
      9  Equity in net income of
          unconsolidated affiliate                     (137)              (148)
      10 (Gain) / loss on sale of assets                 (4)              (451)
      11 Income (loss) before income taxes            1,671                (25)
      12 Income tax expense (benefit)                   585                 (9)
      13 Income (loss) before cumulative effect
          of a change in accounting principle         1,086                (16)
      14 Cumulative effect of changing to
          a different revenue recognition method        ---            (14,344)
      15 Net income (loss)                           $1,086           $(14,360)
 
      16   Per share income (loss) before cumulative
            effect of a change in accounting
            principle                                 $0.09             $(0.01)
      17   Per share cumulative effect of changing
            to a different revenue recognition
            method                                     $---             $(1.19)
      18     Per share net income (loss)              $0.09             $(1.20)
 
      19 Weighted average shares - fully
          diluted                                    12,087             12,013
      20 Store count - average for period               301                334
 
 
                                   EZCORP, Inc.
               Highlights of Consolidated Balance Sheets (Unaudited)
                        (in thousands, except store count)
 
                                                        A                 B
                                                            March 31,
                                                      2001              2000
         Assets:
           Current assets:
      1    Cash and cash equivalents                 $2,785            $1,816
      2    Pawn loans                                40,477            39,227
      3    Short-term loans                             106                36
      4    Pawn service charges receivable            7,205             7,466
      5    Short-term loan finance charges
            receivable                                   15               ---
      6    Inventory, net                            34,148            39,455
      7    Deferred tax asset                         6,135             7,759
      8    Federal income tax receivable                ---             1,202
      9    Prepaid expenses and other assets          2,170             2,845
      10     Total current assets                    93,041            99,806
 
      11   Investment in unconsolidated affiliates   14,002            13,480
      12   Property and equipment, net               58,378            64,501
      13   Other assets                              18,061            21,190
      14 Total assets                              $183,482          $198,977
 
         Liabilities and stockholders' equity:
           Current liabilities:
      15   Current maturities of long-term debt     $66,773               $11
      16   Accounts payable and other accrued
            expenses                                  8,815             9,325
      17   Restructuring reserve                        355               ---
      18   Customer layaway deposits                  2,486             2,591
      19     Total current liabilities               78,429            11,927
 
      20   Long-term debt, less current maturities       94            63,606
      21   Deferred tax liability                       599             1,696
      22   Other long-term liabilities                  614               394
      23     Total long-term liabilities              1,307            65,696
 
      24   Total stockholders' equity               103,746           121,354
      25 Total liabilities and stockholders'
          equity                                   $183,482          $198,977
 
      26   Loan balance per ending store               $140              $117
      27   Inventory per ending store                  $118              $117
      28   Book value per share                       $8.58            $10.10
      29   Tangible book value per share              $7.39             $8.62
      30   Store count - end of period                  289               336
 
     This announcement contains certain forward-looking statements regarding
 the Company's expected performance for future periods including, but not
 limited to, the success of new products or services.  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 the conference call that will be broadcast
 over the Internet at http://www.videonewswire.com/EZCORP/042401/.  The
 conference call can be replayed at the same address.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X60427643
 
 

SOURCE EZCORP, Inc.
    AUSTIN, Texas, April 24 /PRNewswire Interactive News Release/ --
 EZCORP, Inc. (Nasdaq:   EZPW) announced today results for its second fiscal
 2001 quarter and the six month period, which ended March 31, 2001.
     For the three months ended March 31, 2001, EZCORP is reporting operating
 income before depreciation and amortization of $5.1 million compared to
 $1.9 million in the prior year period, an increase of $3.2 million.  After
 higher depreciation, amortization, and interest expense, net income for the
 period increased to $33,000 ($0.00 per diluted share) compared to a prior year
 net loss of $1.3 million ($0.11 per diluted share).  Total revenues for the
 three month period decreased to $48.8 million from $53.7 million primarily due
 to the closure of forty-seven under performing stores.  Total revenues per
 store increased 5% over the prior year quarter to $168,000 compared to
 $160,000.
     For the six months ended March 31, 2001, operating income before
 depreciation and amortization increased 62% to $11.3 million compared to prior
 year operating income before depreciation and amortization of $7.0 million.
 Net income for the six month fiscal 2001 period is $1.1 million ($0.09 per
 diluted share) compared to a prior year net loss of $14.4 million after the
 $14.3 million charge for the cumulative effect of the accounting change
 adopted at the start of the fiscal 2000 year.
     Commenting on these results, Joseph L. Rotunda, President and Chief
 Executive Officer, said, "We are pleased with the progress we have made in our
 core business, in both earnings and day to day operations.  Our loan growth is
 healthy with same store loan balances up 9% from the same period a year ago.
 We have managed our operating expenses exceptionally well and have seen them
 decline in total, as a percent of net revenues, and on a per store basis
 compared to a year ago.  Store inventory levels at the end of the quarter are
 slightly above last year, $118,000 per store v. $117,000, but we turned our
 inventory for the quarter faster, 2.4 v. 2.3 times annualized, with three
 percentage points of margin improvement.  While our sales are softer than we
 would have liked, down 5% on a same store basis for the quarter, we had same
 store growth in March and expect same store growth in April."
     Mr. Rotunda went on to add, "During the quarter we began to roll out our
 short term loan product, commonly referred to as payday loans, and now have it
 available in over 200 stores.  While this will have a negligible impact on our
 third quarter, we expect it to be a key contributor to earnings growth in the
 future as this product ramps up over the next several months."
     Concluding, Mr. Rotunda stated, "We continue to be optimistic about our
 business.  Many of the initiatives we have implemented are having the desired
 impact, as demonstrated in the business results.  Despite this, we continue to
 have room for improvement and our greatest potential is still in front of us."
     EZCORP offers consumers convenient, non-recourse loans collateralized by
 tangible personal property, and short-term non-collateralized loans, often
 referred to as payday loans.  A secondary, but related, business activity is
 the selling of previously owned merchandise consisting primarily of forfeited
 collateral.  At March 31, 2001, the Company operated 289 stores in twelve
 states.
 
 
                                   EZCORP, Inc.
           Highlights of Consolidated Results of Operations (Unaudited)
               (in thousands, except per share data and store count)
 
                                                       A                 B
                                                   Three Months Ended March 31,
                                                      2001              2000
 
      1  Total revenues                             $48,819           $53,697
      2  Cost of goods sold                          21,435            24,687
      3  Net revenues                                27,384            29,010
      4  Operating expenses                          22,274            27,141
      5    Operating income before depreciation
            and amortization                          5,110             1,869
      6  Depreciation and amortization                2,814             2,561
      7    Operating income (loss)                    2,296              (692)
      8  Interest expense, net                        2,332             1,200
      9  Equity in net income of
          unconsolidated affiliate                     (110)              (83)
      10 (Gain) / loss on sale of assets                 (1)              129
      11 Income (loss) before income taxes               75            (1,938)
      12 Income tax expense (benefit)                    42              (659)
      13 Income (loss) before cumulative effect
          of a change in accounting principle            33            (1,279)
      14 Cumulative effect of changing to
          a different revenue recognition method        ---               ---
      15 Net income (loss)                              $33           $(1,279)
 
      16   Per share income (loss) before cumulative
            effect of a change in accounting
            principle                                 $0.00            $(0.11)
      17   Per share cumulative effect of changing
            to a different revenue recognition
            method                                     $---              $---
      18   Per share net income (loss)                $0.00            $(0.11)
 
      19 Weighted average shares - fully diluted     12,087            12,014
      20 Store count - average for period               290               335
 
 
                                    EZCORP, Inc.
            Highlights of Consolidated Results of Operations (Unaudited)
               (in thousands, except per share data and store count)
 
                                                        A                 B
                                                    Six Months Ended March 31,
                                                      2001              2000
 
      1  Total revenues                             $96,060           $107,637
      2  Cost of goods sold                          39,533             47,370
      3  Net revenues                                56,527             60,267
      4  Operating expenses                          45,229             53,276
      5    Operating income before depreciation
            and amortization                         11,298              6,991
      6  Depreciation and amortization                5,248              5,083
      7    Operating income (loss)                    6,050              1,908
      8  Interest expense, net                        4,520              2,532
      9  Equity in net income of
          unconsolidated affiliate                     (137)              (148)
      10 (Gain) / loss on sale of assets                 (4)              (451)
      11 Income (loss) before income taxes            1,671                (25)
      12 Income tax expense (benefit)                   585                 (9)
      13 Income (loss) before cumulative effect
          of a change in accounting principle         1,086                (16)
      14 Cumulative effect of changing to
          a different revenue recognition method        ---            (14,344)
      15 Net income (loss)                           $1,086           $(14,360)
 
      16   Per share income (loss) before cumulative
            effect of a change in accounting
            principle                                 $0.09             $(0.01)
      17   Per share cumulative effect of changing
            to a different revenue recognition
            method                                     $---             $(1.19)
      18     Per share net income (loss)              $0.09             $(1.20)
 
      19 Weighted average shares - fully
          diluted                                    12,087             12,013
      20 Store count - average for period               301                334
 
 
                                   EZCORP, Inc.
               Highlights of Consolidated Balance Sheets (Unaudited)
                        (in thousands, except store count)
 
                                                        A                 B
                                                            March 31,
                                                      2001              2000
         Assets:
           Current assets:
      1    Cash and cash equivalents                 $2,785            $1,816
      2    Pawn loans                                40,477            39,227
      3    Short-term loans                             106                36
      4    Pawn service charges receivable            7,205             7,466
      5    Short-term loan finance charges
            receivable                                   15               ---
      6    Inventory, net                            34,148            39,455
      7    Deferred tax asset                         6,135             7,759
      8    Federal income tax receivable                ---             1,202
      9    Prepaid expenses and other assets          2,170             2,845
      10     Total current assets                    93,041            99,806
 
      11   Investment in unconsolidated affiliates   14,002            13,480
      12   Property and equipment, net               58,378            64,501
      13   Other assets                              18,061            21,190
      14 Total assets                              $183,482          $198,977
 
         Liabilities and stockholders' equity:
           Current liabilities:
      15   Current maturities of long-term debt     $66,773               $11
      16   Accounts payable and other accrued
            expenses                                  8,815             9,325
      17   Restructuring reserve                        355               ---
      18   Customer layaway deposits                  2,486             2,591
      19     Total current liabilities               78,429            11,927
 
      20   Long-term debt, less current maturities       94            63,606
      21   Deferred tax liability                       599             1,696
      22   Other long-term liabilities                  614               394
      23     Total long-term liabilities              1,307            65,696
 
      24   Total stockholders' equity               103,746           121,354
      25 Total liabilities and stockholders'
          equity                                   $183,482          $198,977
 
      26   Loan balance per ending store               $140              $117
      27   Inventory per ending store                  $118              $117
      28   Book value per share                       $8.58            $10.10
      29   Tangible book value per share              $7.39             $8.62
      30   Store count - end of period                  289               336
 
     This announcement contains certain forward-looking statements regarding
 the Company's expected performance for future periods including, but not
 limited to, the success of new products or services.  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 the conference call that will be broadcast
 over the Internet at http://www.videonewswire.com/EZCORP/042401/.  The
 conference call can be replayed at the same address.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X60427643
 
 SOURCE  EZCORP, Inc.