EZCORP (EZPW) 8-K Ezcorp Announces Fiscal 2008 Fourth Quarter and Yearend Results

EXHIBIT 99.1

EZCORP ANNOUNCES FISCAL 2008 FOURTH QUARTER AND YEAREND
RESULTS

AUSTIN, Texas (November 6, 2008)¾ EZCORP, Inc. (NNM: EZPW) announced today results for its fourth fiscal quarter and 2008 fiscal year, which ended September 30, 2008.

For the quarter ended September 30, 2008, EZCORP’s net income increased 44% to $16,031,000 ($0.37 per share) compared to $11,155,000 ($0.26 per share) for the quarter ended September 30, 2007. Total revenues for the quarter increased 19% to $123,402,000 while operating income improved 13% to $18,950,000.

Included in the results for the quarter are the impact of Hurricane Ike and the benefit of taking a previously under utilized foreign tax credit. On September 13^th, the Company closed 154 stores in the hurricane threat area, with most of these closed on September 12^th in advance of the hurricane. During the month, the Company lost 1,042 store days due to the hurricane and the resulting power outages. The Company estimates this adversely impacted pretax income approximately $2.5 million ($0.04 tax affected earnings per share).

During the quarter, the Company recognized the benefit of a previously under utilized foreign tax credit related to its investment in Albemarle and Bond Holdings Plc. This resulted in a reduction to income tax expense, not related to the quarter, of approximately $3.1 million ($0.07 per share). Of the $3.1 million tax expense reduction, approximately $2.4 million ($0.06 per share) pertained to the larger credit available on Albemarle and Bond’s earnings prior to the Company’s 2008 fiscal year.

For the twelve months ended September 30, 2008, net income increased 38% to $52,429,000 ($1.21 per share) compared to $37,874,000 ($0.88 per share) for the prior year twelve month period. Total revenues grew 23% to $457,403,000 while operating income increased 34% to $74,619,000.

Excluding the adverse impact of Hurricane Ike and the benefit of the foreign tax credit related to Albemarle and Bond’s earnings in prior periods, the Company’s fully diluted earnings per share for the fourth fiscal quarter and 2008 fiscal year would have been $0.34 and $1.19 per share.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “Our fourth fiscal 2008 quarter was our twenty-fifth consecutive quarter of year over year earnings growth. While the unfavorable impact of Hurricane Ike and the favorable impact of the foreign tax credit utilization resulted in a net favorable impact on our quarter’s results, we still achieved our earnings expectation for the quarter excluding these two unusual items. Our pawn operations in the U.S. and Mexico drove our excellent results for the quarter.”

Rotunda continued, “We have completed our due diligence and are moving ahead with our eleven store Pawn Plus acquisition and the acquisition of Value Financial Services. We expect to close on the Pawn Plus transaction later this month and close on the Value Financial Services acquisition in the latter half of December. We believe both of these acquisitions will be excellent additions to our store portfolio.”

Rotunda concluded, “For our first fiscal quarter and 2009 fiscal year, we expect earnings per share, excluding the two pending acquisitions, to be approximately $0.35 and $1.45. Assuming a late November closing on the Las Vegas acquisition and a late December closing on the Value Financial Services transaction, the acquisitions will have a nominal earnings per share impact on our first fiscal quarter and an approximate $0.08 to $0.09 per share benefit on our fiscal year results.”

“In addition to completing these two acquisitions, we plan to open 30 to 35 EZMONEY locations in the U.S. and 30 to 35 Empeño Fácil locations in Mexico. In Canada we will continue to monitor the regulatory process in each province and enter provinces that adopt acceptable payday loan regulations.”

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 38 Mexico Empeño Fácil locations open on September 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 477 EZMONEY locations and 71 EZPAWN locations open on September 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 November 6, 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=52866

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,
	2008			2007
Revenues:
Merchandise sales	$	34,926		$	33,101
Jewelry scrapping sales		27,162			18,198
Pawn service charges		26,860			22,055
Signature loan fees		33,561			30,215
Other		893			323
Total revenues		123,402			103,892
Cost of goods sold:
Cost of merchandise sales		20,490			19,598
Cost of jewelry scrapping sales		17,180			12,791
Total cost of goods sold		37,670			32,389
Net revenues		85,732			71,503
Operations expense		40,235			34,515
Signature loan bad debt		12,303			9,422
Administrative expense		10,917			8,221
Depreciation and amortization		3,327			2,618
Operating income		18,950			16,727
Interest income		(118	)		(155	)
Interest expense		192			67
Equity in net income of unconsolidated affiliate		(1,180	)		(760	)
Loss on sale/disposal of assets		412			59
Other		(3	)		—
Income before income taxes		19,647			17,516
Income tax expense		3,616			6,361
Net income	$	16,031		$	11,155
Net income per share, diluted	$	0.37		$	0.26
Weighted average shares, diluted		43,468			43,215

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

	Year Ended September 30,
	2008			2007
Revenues:
Merchandise sales	$	155,828		$	141,094
Jewelry scrapping sales		76,732			51,893
Pawn service charges		94,244			73,551
Signature loan fees		128,478			104,347
Other		2,121			1,330
Total revenues		457,403			372,215
Cost of goods sold:
Cost of merchandise sales		92,612			83,501
Cost of jewelry scrapping sales		46,790			34,506
Total cost of goods sold		139,402			118,007
Net revenues		318,001			254,208
Operations expense		153,420			128,602
Signature loan bad debt		37,150			28,508
Administrative expense		40,458			31,749
Depreciation and amortization		12,354			9,812
Operating income		74,619			55,537
Interest income		(477	)		(1,654	)
Interest expense		420			281
Equity in net income of unconsolidated affiliate		(4,342	)		(2,945	)
(Gain) / loss on sale/disposal of assets		939			(72	)
Other		8			—
Income before income taxes		78,071			59,927
Income tax expense		25,642			22,053
Net income	$	52,429		$	37,874
Net income per share, diluted	$	1.21		$	0.88
Weighted average shares, diluted		43,327			43,230

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

	As of September 30,
	2008		2007
Assets:
Current assets:
Cash and cash equivalents	$	27,444	$	22,533
Pawn loans		75,936		60,742
Payday loans, net		7,124		4,814
Pawn service charges receivable, net		12,755		10,113
Signature loan fees receivable, net		5,406		5,992
Inventory, net		43,209		37,942
Deferred tax asset		10,926		8,964
Prepaid expenses and other assets		9,116		6,146
Total current assets		191,916		157,246
Investment in unconsolidated affiliate		38,439		35,746
Property and equipment, net		40,079		33,806
Deferred tax asset, non-current		8,139		4,765
Goodwill		24,376		16,211
Other assets, net		5,771		3,412
Total assets	$	308,720	$	251,186
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable and other accrued expenses	$	29,425	$	25,592
Customer layaway deposits		2,327		1,988
Federal income taxes payable		246		4,795
Total current liabilities		31,998		32,375
Deferred gains and other long-term liabilities		3,672		2,886
Total stockholders’ equity		273,050		215,925
Total liabilities and stockholders’ equity	$	308,720	$	251,186
Pawn loan balance per ending pawn store	$	229	$	204
Inventory per ending pawn store	$	130	$	127
Book value per share	$	6.58	$	5.23
Tangible book value per share	$	5.89	$	4.77
Pawn store count — end of period		332		298
Signature loan store count — end of period		477		433
Shares outstanding — end of period		41,525		41,306

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

	EZPAWN		Empeño
	United States		Fácil			EZMONEY
	Operations		Operations			Operations		Consolidated
Three months ended September 30, 2008:
Revenues:
Sales	$	59,997	$	2,091		$	—	$	62,088
Pawn service charges		25,342		1,518			—		26,860
Signature loan fees		651		—			32,910		33,561
Other		892		1			—		893
Total revenues		86,882		3,610			32,910		123,402
Cost of goods sold		36,289		1,381			—		37,670
Net revenues		50,593		2,229			32,910		85,732
Operating expenses:
Operations expense		25,273		1,287			13,675		40,235
Signature loan bad debt		367		—			11,936		12,303
Total direct expenses		25,640		1,287			25,611		52,538
Store operating income	$	24,953	$	942		$	7,299	$	33,194
Pawn store count — end of period		294		38			—		332
Signature loan store count — end of period		6		—			471		477
Three months ended September 30, 2007:
Revenues:
Sales	$	51,212	$	87		$	—	$	51,299
Pawn service charges		22,007		48			—		22,055
Signature loan fees		828		—			29,387		30,215
Other		322		1			—		323
Total revenues		74,369		136			29,387		103,892
Cost of goods sold		32,341		48			—		32,389
Net revenues		42,028		88			29,387		71,503
Operating expenses:
Operations expense		22,510		161			11,844		34,515
Signature loan bad debt		347		—			9,075		9,422
Total direct expenses		22,857		161			20,919		43,937
Store operating income	$	19,171	$	(73	)	$	8,468	$	27,566
Pawn store count — end of period		294		4			—		298
Signature loan store count — end of period		6		—			427		433

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

	EZPAWN		Empeño
	United States		Fácil			EZMONEY
	Operations		Operations			Operations		Consolidated
Year ended September 30, 2008:
Revenues:
Sales	$	225,747	$	6,813		$	—	$	232,560
Pawn service charges		89,431		4,813			—		94,244
Signature loan fees		2,782		—			125,696		128,478
Other		2,116		5			—		2,121
Total revenues		320,076		11,631			125,696		457,403
Cost of goods sold		135,142		4,260			—		139,402
Net revenues		184,934		7,371			125,696		318,001
Operating expenses:
Operations expense		96,674		4,066			52,680		153,420
Signature loan bad debt		1,108		—			36,042		37,150
Total direct expenses		97,782		4,066			88,722		190,570
Store operating income	$	87,152	$	3,305		$	36,974	$	127,431
Pawn store count — end of period		294		38			—		332
Signature loan store count — end of period		6		—			471		477
Year ended September 30, 2007:
Revenues:
Sales	$	192,832	$	155		$	—	$	192,987
Pawn service charges		73,471		80			—		73,551
Signature loan fees		3,314		—			101,033		104,347
Other		1,328		2			—		1,330
Total revenues		270,945		237			101,033		372,215
Cost of goods sold		117,923		84			—		118,007
Net revenues		153,022		153			101,033		254,208
Operating expenses:
Operations expense		87,151		404			41,047		128,602
Signature loan bad debt		1,390		—			27,118		28,508
Total direct expenses		88,541		404			68,165		157,110
Store operating income	$	64,481	$	(251	)	$	32,868	$	97,098
Pawn store count — end of period		294		4			—		298
Signature loan store count — end of period		6		—			427		433