EZCORP (EZPW) 8-K Ezcorp Announces Fiscal 2008 Third Quarter Results

EXHIBIT 99.1

EZCORP ANNOUNCES FISCAL 2008 THIRD QUARTER RESULTS

AUSTIN, Texas (July 24, 2008)¾ EZCORP, Inc. (Nasdaq: EZPW) announced today results for its fiscal third quarter and nine-month period, which ended June 30, 2008.

EZCORP’s net income for the quarter ended June 30, 2008 increased 60% to $10,827,000 ($0.25 per share) compared to $6,762,000 ($0.16 per share) for the quarter ended June 30, 2007. Total revenues for the quarter increased 24% over the prior year period to $108,070,000 with pawn service charges up 34%, total sales (merchandise and jewelry scrapping) up 26%, and signature loan revenues (payday loan and credit service fees) up 16%.

In EZCORP’s U.S. EZPAWN operations, store level operating income improved 47% to $19,474,000; and in its EZMONEY operations, store level operating income improved 36% to $9,067,000. EZCORP’s 30 store Empeño Fácil operation contributed $931,000 compared to a slight loss in the prior year period. After administrative expense and depreciation and amortization, consolidated operating income for the quarter improved 78% to $16,584,000 (22% of net revenue) compared to $9,307,000 (15% of net revenue) for the prior year quarter.

EZCORP’s net income for the nine-month period ended June 30, 2008 increased 36% to $36,398,000 ($0.84 per share) compared to $26,719,000 ($0.62 per share) for the prior year nine-month period. Operating income for the nine-months improved 43% to $55,669,000 (24% of net revenues) compared to $38,810,000 (21% of net revenues) for the prior year nine-month period.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “Overall, our third quarter was a great quarter for EZCORP and was our twenty-fourth consecutive quarter of year-over-year earnings growth. Particularly gratifying is that these results are after a two cents per share impact from two non-recurring charges. Once again our results were generated by solid contributions from each of our business segments – EZPAWN and EZMONEY in the U.S. and Empeño Fácil in Mexico.”

Rotunda continued, “I think it’s noteworthy to point out how we believe our business was impacted, both favorably and unfavorably, by the economic stimulus checks, which began distribution in May. During May and June, we realized a slightly lower than expected seasonal demand for loans; however, we saw a favorable impact on retail sales and loan redemptions in our EZPAWN locations and lower levels of bad debt in our EZMONEY locations. While difficult to quantify, we do believe these checks had a net favorable impact on our results in the quarter.”

Rotunda concluded, “As announced on July 8^th, we expect earning per share for our September quarter to be approximately $0.35 per share compared to $0.26 in the prior year period. Included in this guidance is an approximate one cent benefit from our pending Value Financial Services acquisition. This will give us earnings per share of approximately $1.19 for our fiscal 2008 compared to $0.88 for our fiscal 2007. For the fiscal year, we expect to open 70 EZMONEY locations, including 47 opened through June, and twelve Empeño Fácil locations, including six opened through June.”

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 294 U.S. EZPAWN and 30 Mexico Empeño Fácil locations open on June 30, 2008, 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 461 EZMONEY locations and 71 EZPAWN locations open on June 30, 2008, 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, anticipated benefits of acquisitions 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, 2008 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=49784

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,
	2008			2007
Revenues:
Merchandise sales	$	35,728		$	30,607
Jewelry scrapping sales		17,907			12,069
Pawn service charges		22,691			16,978
Signature loan fees		31,223			27,024
Other		521			315
Total revenues		108,070			86,993
Cost of goods sold:
Cost of merchandise sales		20,706			17,745
Cost of jewelry scrapping sales		10,754			7,676
Total cost of goods sold		31,460			25,421
Net revenues		76,610			61,572
Operations expense		38,593			31,595
Signature loan bad debt		8,545			10,142
Administrative expense		9,807			8,033
Depreciation and amortization		3,081			2,495
Operating income		16,584			9,307
Interest income		(165	)		(618	)
Interest expense		72			67
Equity in net income of unconsolidated affiliate		(997	)		(720	)
(Gain) / loss on sale/disposal of assets		284			(155	)
Other		11			—
Income before income taxes		17,379			10,733
Income tax expense		6,552			3,971
Net income	$	10,827		$	6,762
Net income per share, diluted	$	0.25		$	0.16
Weighted average shares, diluted		43,325			43,482

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

	Nine Months Ended June 30,
	2008			2007
Revenues:
Merchandise sales	$	120,902		$	107,993
Jewelry scrapping sales		49,570			33,695
Pawn service charges		67,384			51,496
Signature loan fees		94,917			74,132
Other		1,228			1,007
Total revenues		334,001			268,323
Cost of goods sold:
Cost of merchandise sales		72,122			63,903
Cost of jewelry scrapping sales		29,610			21,715
Total cost of goods sold		101,732			85,618
Net revenues		232,269			182,705
Operations expense		113,185			94,087
Signature loan bad debt		24,847			19,086
Administrative expense		29,541			23,528
Depreciation and amortization		9,027			7,194
Operating income		55,669			38,810
Interest income		(359	)		(1,499	)
Interest expense		228			214
Equity in net income of unconsolidated affiliate		(3,162	)		(2,185	)
(Gain) / loss on sale/disposal of assets		527			(131	)
Other		11			—
Income before income taxes		58,424			42,411
Income tax expense		22,026			15,692
Net income	$	36,398		$	26,719
Net income per share, diluted	$	0.84		$	0.62
Weighted average shares, diluted		43,269			43,393

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

	As of June 30,
	2008		2007
Assets:
Current assets:
Cash and cash equivalents	$	29,812	$	31,686
Pawn loans		68,022		58,053
Payday loans, net		6,598		4,514
Pawn service charges receivable, net		10,061		8,150
Signature loan fees receivable, net		5,086		5,439
Inventory, net		39,444		33,641
Deferred tax asset		9,007		7,344
Federal income taxes receivable		454		—
Prepaid expenses and other assets		5,622		5,197
Total current assets		174,106		154,024
Investment in unconsolidated affiliate		37,248		21,250
Property and equipment, net		38,661		31,895
Deferred tax asset, non-current		5,620		4,536
Goodwill		24,779		16,211
Other assets, net		5,585		3,448
Total assets	$	285,999	$	231,364
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable and other accrued expenses	$	24,120	$	21,658
Customer layaway deposits		2,254		1,888
Federal income taxes payable		—		1,255
Total current liabilities		26,374		24,801
Deferred gains and other long-term liabilities		2,909		2,977
Total stockholders’ equity		256,716		203,586
Total liabilities and stockholders’ equity	$	285,999	$	231,364
Pawn loan balance per ending pawn store	$	210	$	195
Inventory per ending pawn store	$	122	$	113
Book value per share	$	6.19	$	4.93
Tangible book value per share	$	5.50	$	4.47
EZPAWN store count — end of period		324		298
EZMoney signature loan store count — end of period		461		390
Shares outstanding — end of period		41,441		41,300

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

	EZPAWN		EZPAWN
	United States		Mexico			EZMONEY
	Operations		Operations			Operations		Consolidated
Three months ended June 30, 2008:
Revenues:
Sales	$	51,799	$	1,836		$	—	$	53,635
Pawn service charges		21,378		1,313			—		22,691
Signature loan fees		650		—			30,573		31,223
Other		521		—			—		521
Total revenues		74,348		3,149			30,573		108,070
Cost of goods sold		30,301		1,159			—		31,460
Net revenues		44,047		1,990			30,573		76,610
Operating expenses:
Operations expense		24,371		1,059			13,163		38,593
Signature loan bad debt		202		—			8,343		8,545
Total direct expenses		24,573		1,059			21,506		47,138
Store operating income	$	19,474	$	931		$	9,067	$	29,472
EZPAWN store count — end of period		294		30			—		324
EZMoney signature loan store count — end of period		6		—			455		461
Three months ended June 30, 2007:
Revenues:
Sales	$	42,623	$	53		$	—	$	42,676
Pawn service charges		16,955		23			—		16,978
Signature loan fees		782		—			26,242		27,024
Other		315		—			—		315
Total revenues		60,675		76			26,242		86,993
Cost of goods sold		25,395		26			—		25,421
Net revenues		35,280		50			26,242		61,572
Operating expenses:
Operations expense		21,481		117			9,997		31,595
Signature loan bad debt		559		—			9,583		10,142
Total direct expenses		22,040		117			19,580		41,737
Store operating income	$	13,240	$	(67	)	$	6,662	$	19,835
EZPAWN store count — end of period		295		3			—		298
EZMoney signature loan store count — end of period		6		—			384		390

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

	EZPAWN		EZPAWN
	United States		Mexico			EZMONEY
	Operations		Operations			Operations		Consolidated
Nine months ended June 30, 2008:
Revenues:
Sales	$	165,749	$	4,723		$	—	$	170,472
Pawn service charges		64,089		3,295			—		67,384
Signature loan fees		2,131		—			92,786		94,917
Other		1,224		4			—		1,228
Total revenues		233,193		8,022			92,786		334,001
Cost of goods sold		98,853		2,879			—		101,732
Net revenues		134,340		5,143			92,786		232,269
Operating expenses:
Operations expense		71,399		2,781			39,005		113,185
Signature loan bad debt		741		—			24,106		24,847
Total direct expenses		72,140		2,781			63,111		138,032
Store operating income	$	62,200	$	2,362		$	29,675	$	94,237
EZPAWN store count — end of period		294		30			—		324
EZMoney signature loan store count — end of period		6		—			455		461
Nine months ended June 30, 2007:
Revenues:
Sales	$	141,621	$	67		$	—	$	141,688
Pawn service charges		51,464		32			—		51,496
Signature loan fees		2,486		—			71,646		74,132
Other		1,006		1			—		1,007
Total revenues		196,577		100			71,646		268,323
Cost of goods sold		85,583		35			—		85,618
Net revenues		110,994		65			71,646		182,705
Operating expenses:
Operations expense		64,641		243			29,203		94,087
Signature loan bad debt		1,043		—			18,043		19,086
Total direct expenses		65,684		243			47,246		113,173
Store operating income	$	45,310	$	(178	)	$	24,400	$	69,532
EZPAWN store count — end of period		295		3			—		298
EZMoney signature loan store count — end of period		6		—			384		390