EXHIBIT 99
EZCORP ANNOUNCES FISCAL YEAR RESULTS
AUSTIN, TEXAS (NOVEMBER 10, 2003) -- EZCORP, Inc. (Nasdaq: EZPW) announced today
results for its fiscal fourth quarter and 2003 fiscal year, which ended
September 30, 2003.
For the quarter ended September 30, 2003, EZCORP is reporting net income of
$4,563,000 ($0.36 per share) compared to net income of $251,000 ($0.02 per
share) for the prior year comparable period. During the quarter, the Company
decreased its valuation allowance placed on its deferred tax asset by $3,700,000
based on the Company's improved operating results and outlook for continued
earnings growth. This resulted in a $3,700,000 decrease to the tax provision for
the quarter and had a favorable net income effect of $3,700,000 ($0.30 per
share). Also during the quarter, the Company wrote off a $1,100,000 investment
made in 2000 in an internet related startup. This write-off had an unfavorable
effect on net income of $715,000 ($0.06 per share). Excluding these two items,
net income for the quarter was $1,578,000 ($0.12 per share).
For the twelve month period ended September 30, 2003, income before the
cumulative effect of an accounting change increased to $8,399,000 ($0.67 per
share) compared to net income of $2,204,000 ($0.18 per share) for fiscal 2002.
Excluding the two items discussed in the above paragraph, income before the
cumulative effect of an accounting change for fiscal 2003 increased 146% to
$5,414,000 ($0.43 per share). Effective October 1, 2002, the Company adopted
Statement of Financial Accounting Standards No. 142 which deals with the
accounting treatment of goodwill and other intangible assets. After a charge of
$8,037,000 for the cumulative effect of adopting this new accounting principle,
the Company realized net income of $362,000 for fiscal 2003.
Commenting on these results, President and Chief Executive Officer, Joe Rotunda,
stated, "We are pleased with both our fourth quarter and fiscal year end
results. For fiscal 2003, we exceeded our earnings per share guidance by three
cents, generated cash flow from operating activities in excess of $13.0 million,
and reduced debt by 27% from a year ago. Our payday loans, which are still a
relatively new product for us, ended the year with a balance 56% above the same
time last year."
Rotunda continued, "We are also excited about our growth opportunities. During
our fourth quarter, we opened four new mono-line payday loan stores under the
EZMONEY brand, including two stores linked to an existing pawn location with a
separate entrance and different decor and signage. In fiscal 2004, we plan to
open seventy-five to eighty-five additional mono-line stores: either
freestanding locations or linked to an existing pawn location."
Rotunda concluded, "Even with the expansion plans for fiscal year 2004, we will
continue to drive earnings growth through additional refinement of our core pawn
business and growth in our payday loan product. Although the new locations will
have an initial drag on earnings, we expect earnings for fiscal 2004 to be
between fifty and fifty-five cents per share compared to a comparable
forty-three cents per share for fiscal 2003. For our first fiscal 2004 quarter,
we expect earnings between nineteen and twenty-one cents per share compared to
eighteen cents per share for the first fiscal 2003 quarter."
EZCORP meets the short-term cash needs of the cash and credit constrained
consumer by offering convenient, non-recourse loans collateralized by tangible
personal property, commonly known as pawn loans, and short-term
non-collateralized loans, often referred to as payday loans. The Company also
sells merchandise, primarily collateral forfeited from its pawn lending
operations, to consumers looking for good value. Currently, the Company operates
290 locations in eleven states under the EZPAWN and EZMONEY brands: 280
pawnshops and 10 mono-line payday loan locations.
On September 15th, Albemarle and Bond, EZCORP's UK affiliate, announced
preliminary results for their fiscal year ended June 30, 2003. They reported
profit after taxes of 3,043,000 British Pounds, an increase of 19% over the
prior year period. They currently operate 53 locations in the United Kingdom
that offer check cashing, pawn loans and short-term loans. EZCORP currently owns
approximately 29% of the outstanding shares of Albemarle and Bond and holds
three of seven board seats.
This announcement contains certain forward-looking statements regarding the
Company's expected performance for future periods including, but not limited to,
new unit growth 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 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 earnings conference call on November 11th at
11:00am EST. It will be webcast at
http://www.firstcallevents.com/service/ajwz392675057gf12.html.
The conference call can be replayed at the same address.
Also, EZCORP will be presenting at The Robins Group LLC Small Cap Round-Up on
November 12th at 3:00pm EST. You can listen to the webcast of this presentation
at
http://www.veracast.com/webcasts/robins/small-cap-roundup03/16108127.cfm.
For additional information, contact Dan Tonissen at (512) 314-2289.
EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(in thousands, except per share data and store count)
<Table>
<Caption>
THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------
2003 2002
-------- --------
Total revenues $ 53,225 $ 51,695
Cost of goods sold 22,394 24,344
-------- --------
Net revenues 30,831 27,351
Operating expenses 26,000 23,612
-------- --------
Operating income before depreciation and amortization 4,831 3,739
Depreciation and amortization 2,137 2,457
-------- --------
Operating income 2,694 1,282
Interest expense, net 472 1,059
Equity in net income of unconsolidated affiliate (350) (182)
Loss on sale of assets 144 7
Impairment of investment 1,100 --
-------- --------
Income before income taxes 1,328 398
Income tax expense (benefit) (3,235) 147
-------- --------
Income before cumulative effect of a change in accounting principle $ 4,563 $ 251
Cumulative effect of adopting a new accounting principle, net of tax -- --
-------- --------
Net income $ 4,563 $ 251
======== ========
Income per share, assuming dilution:
Income before cumulative effect of a change in accounting principle $ 0.36 $ 0.02
Cumulative effect of adopting a new accounting principle, net of tax $ -- $ --
-------- --------
Net income $ 0.36 $ 0.02
======== ========
Weighted average shares - assuming dilution: 12,694 12,334
Store count - average for period 281 280
Pro forma results, as if the new accounting principle were in effect for all
periods:
Net income as reported $ 4,563 $ 251
Add back: goodwill and pawn license amortization, net of tax -- 99
Add back: amortization of goodwill related to equity investee, net of tax -- 75
Add back: cumulative effect of adopting a new accounting principle, net of tax -- --
-------- --------
Adjusted net income $ 4,563 $ 425
======== ========
Per share amounts - assuming dilution:
Net income as reported $ 0.36 $ 0.02
Add back: goodwill and pawn license amortization, net of tax -- 0.01
Add back: amortization of goodwill related to equity investee, net of tax -- --
Add back: cumulative effect of adopting a new accounting principle, net of tax -- --
-------- --------
Adjusted net income $ 0.36 $ 0.03
======== ========
Below is a reconciliation of reported net income to net income excluding unusual
items for the quarter ended September 30, 2003:
$000's EPS
-------- --------
Net income, as reported $ 4,563 $ 0.36
Add back unusual items:
Cumulative effect of adopting a new accounting principal for goodwill, net of tax -- --
Removal of valuation allowance on deferred tax asset (3,700) (0.30)
Impairment of $1.1 million investment, net of related tax benefit 715 0.06
-------- --------
Net income, adjusted for unusual items $ 1,578 $ 0.12
======== ========
</Table>
EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(in thousands, except per share data and store count)
<Table>
<Caption>
TWELVE MONTHS ENDED SEPTEMBER 30,
---------------------------------
2003 2002
--------- ---------
Total revenues $ 206,349 $ 196,898
Cost of goods sold 86,100 84,936
--------- ---------
Net revenues 120,249 111,962
Operating expenses 102,381 93,884
--------- ---------
Operating income before depreciation and amortization 17,868 18,078
Depreciation and amortization 8,775 10,087
--------- ---------
Operating income 9,093 7,991
Interest expense, net 2,006 4,770
Equity in net income of unconsolidated affiliate (1,412) (604)
Loss on sale of assets 170 327
Impairment of investment 1,100 --
--------- ---------
Income before income taxes 7,229 3,498
Income tax expense (benefit) (1,170) 1,294
--------- ---------
Income before cumulative effect of a change in accounting principle $ 8,399 $ 2,204
Cumulative effect of adopting a new accounting principle, net of tax (8,037) --
--------- ---------
Net income $ 362 $ 2,204
========= =========
Income per share, assuming dilution:
Income before cumulative effect of a change in accounting principle $ 0.67 $ 0.18
Cumulative effect of adopting a new accounting principle, net of tax $ (0.64) $ --
--------- ---------
Net income $ 0.03 $ 0.18
========= =========
Weighted average shares - assuming dilution 12,552 12,292
Store count - average for period 280 281
Pro forma results, as if the new accounting principle were in effect for all periods:
Net income as reported $ 362 $ 2,204
Add back: goodwill and pawn license amortization, net of tax -- 398
Add back: amortization of goodwill related to equity investee, net of tax -- 299
Add back: cumulative effect of adopting a new accounting principle, net of tax 8,037 --
--------- ---------
Adjusted net income $ 8,399 $ 2,901
========= =========
Per share amounts - assuming dilution:
Net income as reported $ 0.03 $ 0.18
Add back: goodwill and pawn license amortization, net of tax -- 0.03
Add back: amortization of goodwill related to equity investee, net of tax -- 0.03
Add back: cumulative effect of adopting a new accounting principle, net of tax 0.64 --
--------- ---------
Adjusted net income $ 0.67 $ 0.24
========= =========
Below is a reconciliation of reported net income to net income excluding unusual items for the year ended September 30, 2003:
$000's EPS
--------- ---------
Net income, as reported $ 362 $ 0.03
Add back unusual items:
Cumulative effect of adopting a new accounting principal for goodwill, net of tax 8,037 0.64
Removal of valuation allowance on deferred tax asset (3,700) (0.30)
Impairment of $1.1 million investment, net of related tax benefit 715 0.06
--------- ---------
Net income, adjusted for unusual items $ 5,414 $ 0.43
========= =========
</Table>
EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data and store count)
<Table>
<Caption>
AS OF SEPTEMBER 30,
2003 2002
-------- --------
Assets:
Current assets:
Cash and cash equivalents $ 2,496 $ 1,492
Pawn loans 47,955 49,248
Payday loans 3,630 2,326
Pawn service charges receivable, net 8,990 8,819
Payday loan service charges receivable, net 735 485
Inventory, net 29,755 32,097
Deferred tax asset 8,163 6,418
Federal income tax receivable 328 359
Prepaid expenses and other assets 1,726 1,898
-------- --------
Total current assets 103,778 103,142
Investment in unconsolidated affiliates 14,700 14,406
Property and equipment, net 25,369 32,190
Deferred tax asset, non-current 4,391 --
Goodwill, net -- 11,148
Other assets 5,452 5,084
-------- --------
Total assets $153,690 $165,970
======== ========
Liabilities and stockholders' equity:
Current liabilities:
Current maturities of long-term debt $ -- $ 2,936
Accounts payable and other accrued expenses 11,101 11,615
Customer layaway deposits 1,792 2,166
-------- --------
Total current liabilities 12,893 16,717
Long-term debt, less current maturities 31,000 39,309
Deferred tax liability -- 1,191
Deferred gains and other long-term liabilities 4,319 4,209
-------- --------
Total long-term liabilities 35,319 44,709
Total stockholders' equity 105,478 104,544
-------- --------
Total liabilities and stockholders' equity $153,690 $165,970
======== ========
Pawn loan balance per ending pawn store $ 171 $ 176
Inventory per ending pawn store $ 106 $ 115
Book value per share $ 8.65 $ 8.59
Tangible book value per share $ 8.44 $ 7.48
Pawn store count - end of period 280 280
Monoline payday loan store count - end of period 4 --
Shares outstanding - end of period 12,188 12,167
</Table>