EZCORP (EZPW) 8-K Ezcorp Announces Third Fiscal Quarter Results

EXHIBIT 99.1

EZCORP ANNOUNCES THIRD FISCAL QUARTER RESULTS

AUSTIN, Texas (July 24, 2007)¾ EZCORP, Inc. (Nasdaq: EZPW) announced today results for its third fiscal quarter and nine month period, which ended June 30, 2007. For the quarter ended June 30, 2007, EZCORP’s net income increased 21% to $6,762,000 ($0.16 per share) compared to $5,608,000 ($0.13 per share) for the quarter ended June 30, 2006. Total revenues for the quarter increased 18% to $86,993,000 while operating income improved 16% to $9,307,000.

For the nine months ended June 30, 2007, net income increased 33% to $26,719,000 ($0.62 per share) compared to $20,091,000 ($0.48 per share) for the prior year nine month period. Total revenues grew 17% to $268,323,000 while operating income increased 30% to $38,810,000.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “We are pleased to report, once again, that our growth in earnings reflected a solid contribution from all segments of our business. Pawn net revenues grew 7% led by a 13% increase in pawn service charges. Same store pawn loan balances for the quarter increased 11% over the prior year. Our signature loan contribution, fees less bad debt, increased 37% over the prior year quarter as a result of a 52% increase in signature loan fees offset by higher relative levels of bad debt. As a result of the higher levels of bad debt, we fine tuned our underwriting, primarily with new customers, and saw significant improvement late in the quarter.”

Rotunda continued, “On June 18^th we completed the acquisition of Jumping Jack Cash’s Colorado locations. Since we closed late in the quarter, these stores had a nominal impact on the quarter’s results. We expect these stores to contribute $0.04 to $0.05 per share over a full year, with most of that benefit coming in the seasonally strong December and March quarters.”

Rotunda concluded, “We expect our fourth fiscal 2007 quarter’s earnings to be approximately $0.26 per share compared to $0.21 for the fiscal 2006 fourth quarter. You may recall that our fiscal 2006 fourth quarter included a net benefit of approximately $0.01 per share from three nonrecurring items. This fourth quarter guidance and our nine month results will bring our guidance for our 2007 fiscal year to approximately $0.88 per share compared to fiscal 2006’s $0.69 per share. Based on new EZMONEY locations in the pipeline, we expect to open approximately 45 EZMONEY stores during the fourth quarter for approximately 100 net new EZMONEY locations this fiscal year. In May we opened our third EZPAWN location in Mexico and we expect to open our fourth location in the September quarter.”

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. The Company offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, in 295 U.S. and three Mexico EZPAWN locations open at June 30, 2007. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. In 390 EZMONEY locations and 80 EZPAWN locations open at June 30, 2007, 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 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 the 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 24, 2007 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=40904

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 June 30,
	2007			2006
Revenues:
Merchandise sales	$	30,607		$	29,612
Jewelry scrapping sales		12,069			11,028
Pawn service charges		16,978			15,021
Signature loan fees		27,024			17,821
Other		315			304
Total revenues		86,993			73,786
Cost of goods sold:
Cost of merchandise sales		17,745			16,868
Cost of jewelry scrapping sales		7,676			6,830
Total cost of goods sold		25,421			23,698
Net revenues		61,572			50,088
Operations expense		31,595			27,544
Signature loan bad debt		10,142			5,531
Administrative expense		8,033			6,830
Depreciation and amortization		2,495			2,143
Operating income		9,307			8,040
Interest income		(618	)		(193	)
Interest expense		67			43
Equity in net income of unconsolidated affiliate		(720	)		(557	)
Gain on sale/disposal of assets		(155	)		(70	)
Income before income taxes		10,733			8,817
Income tax expense		3,971			3,209
Net income	$	6,762		$	5,608
Net income per share, diluted	$	0.16		$	0.13
Weighted average shares, diluted		43,482			42,557

EZCORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)

	Nine Months Ended June 30,
	2007			2006
Revenues:
Merchandise sales	$	107,993		$	104,304
Jewelry scrapping sales		33,695			26,294
Pawn service charges		51,496			46,988
Signature loan fees		74,132			49,949
Other		1,007			962
Total revenues		268,323			228,497
Cost of goods sold:
Cost of merchandise sales		63,903			60,415
Cost of jewelry scrapping sales		21,715			17,281
Total cost of goods sold		85,618			77,696
Net revenues		182,705			150,801
Operations expense		94,087			82,095
Signature loan bad debt		19,086			12,062
Administrative expense		23,528			20,347
Depreciation and amortization		7,194			6,402
Operating income		38,810			29,895
Interest income		(1,499	)		(283	)
Interest expense		214			396
Equity in net income of unconsolidated affiliate		(2,185	)		(1,745	)
Gain on sale/disposal of assets		(131	)		(62	)
Income before income taxes		42,411			31,589
Income tax expense		15,692			11,498
Net income	$	26,719		$	20,091
Net income per share, diluted	$	0.62		$	0.48
Weighted average shares, diluted		43,393			41,923

EZCORP, Inc.
Highlights of Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data and store counts)

	As of June 30,
	2007		2006
Assets:
Current assets:
Cash and cash equivalents	$	31,686	$	22,731
Pawn loans		58,053		48,932
Payday loans, net		4,514		1,966
Pawn service charges receivable, net		8,150		7,037
Signature loan fees receivable, net		5,439		3,708
Inventory, net		33,641		32,937
Deferred tax asset		7,150		8,365
Prepaid expenses and other assets		5,197		3,340
Total current assets		153,830		129,016
Investment in unconsolidated affiliate		21,250		17,870
Property and equipment, net		31,895		27,283
Deferred tax asset, non-current		4,536		3,669
Goodwill		16,205		631
Other assets, net		3,648		2,614
Total assets	$	231,364	$	181,083
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable and other accrued expenses	$	21,658	$	18,517
Customer layaway deposits		1,888		1,734
Federal income taxes payable		1,255		752
Total current liabilities		24,801		21,003
Deferred gains and other long-term liabilities		2,977		3,339
Total stockholders’ equity		203,586		156,741
Total liabilities and stockholders’ equity	$	231,364	$	181,083
Pawn loan balance per ending pawn store	$	195	$	175
Inventory per ending pawn store	$	113	$	118
Book value per share	$	4.93	$	3.95
Tangible book value per share	$	4.47	$	3.88
EZPAWN store count — end of period		298		280
EZMoney signature loan store count — end of period		390		288
Shares outstanding — end of period		41,300		39,679

EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)

	EZPAWN		EZMONEY
	Operations		Operations		Consolidated
Three months ended June 30, 2007:
Revenues:
Sales	$	42,676	$	—	$	42,676
Pawn service charges		16,978		—		16,978
Signature loan fees		808		26,216		27,024
Other		315		—		315
Total revenues		60,777		26,216		86,993
Cost of goods sold		25,421		—		25,421
Net revenues		35,356		26,216		61,572
Operating expenses:
Operations expense		21,613		9,982		31,595
Signature loan bad debt		570		9,572		10,142
Total direct expenses		22,183		19,554		41,737
Store operating income	$	13,173	$	6,662	$	19,835
EZPAWN store count — end of period		298		—		298
EZMoney signature loan store count — end of period		7		383		390
Three months ended June 30, 2006:
Revenues:
Sales	$	40,640	$	—	$	40,640
Pawn service charges		15,021		—		15,021
Signature loan fees		838		16,983		17,821
Other		304		—		304
Total revenues		56,803		16,983		73,786
Cost of goods sold		23,698		—		23,698
Net revenues		33,105		16,983		50,088
Operating expenses:
Operations expense		20,747		6,797		27,544
Signature loan bad debt		406		5,125		5,531
Total direct expenses		21,153		11,922		33,075
Store operating income	$	11,952	$	5,061	$	17,013
EZPAWN store count — end of period		280		—		280
EZMoney signature loan store count — end of period		7		281		288

EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)

	EZPAWN		EZMONEY
	Operations		Operations		Consolidated
Nine Months ended June 30, 2007:
Revenues:
Sales	$	141,688	$	—	$	141,688
Pawn service charges		51,496		—		51,496
Signature loan fees		2,554		71,578		74,132
Other		1,007		—		1,007
Total revenues		196,745		71,578		268,323
Cost of goods sold		85,618		—		85,618
Net revenues		111,127		71,578		182,705
Operating expenses:
Operations expense		64,926		29,161		94,087
Signature loan bad debt		1,070		18,016		19,086
Total direct expenses		65,996		47,177		113,173
Store operating income	$	45,131	$	24,401	$	69,532
EZPAWN store count — end of period		298		—		298
EZMoney signature loan store count — end of period		7		383		390
Nine Months ended June 30, 2006:
Revenues:
Sales	$	130,598	$	—	$	130,598
Pawn service charges		46,988		—		46,988
Signature loan fees		2,237		47,712		49,949
Other		962		—		962
Total revenues		180,785		47,712		228,497
Cost of goods sold		77,696		—		77,696
Net revenues		103,089		47,712		150,801
Operating expenses:
Operations expense		63,401		18,694		82,095
Signature loan bad debt		920		11,142		12,062
Total direct expenses		64,321		29,836		94,157
Store operating income	$	38,768	$	17,876	$	56,644
EZPAWN store count — end of period		280		—		280
EZMoney signature loan store count — end of period		7		281		288