EXHIBIT 99
EZCORP ANNOUNCES 31% EARNINGS GROWTH
FOR FIRST QUARTER
AUSTIN, TEXAS (JANUARY 19, 2004) -- EZCORP, Inc. (Nasdaq/NM: EZPW) announced
today results for its fiscal first quarter, which ended December 31, 2003.
For the quarter ended December 31, 2003, EZCORP's income improved thirty-one
percent to $2,990,000 (twenty-three cents per share) compared to $2,285,000
(eighteen cents per share) for the prior year period, before the cumulative
effect of a change in accounting principle. These earnings are above the
Company's previously announced estimate of nineteen to twenty-one cents for its
first fiscal quarter.
EZCORP is reporting net income for the first fiscal 2004 quarter of $2,990,000
(twenty-three cents per share) compared to a net loss for the same period a year
ago. 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
reported a net loss for the first fiscal 2003 quarter of $5,752,000 (forty-seven
cents per share).
Commenting on these results, President and Chief Executive Officer, Joe Rotunda,
stated, "Overall, we are quite pleased with our first quarter results. It was a
very good quarter in several respects. First of all, we generated earnings 31%
above last year's first quarter and we exceeded our previously announced
earnings guidance. Secondly, our balance sheet continues to strengthen with
total debt down 17% from this time last year. Finally, we took a major step with
our store expansion, opening an additional nineteen EZMONEY Payday Loan
storefronts."
Rotunda continued, "As previously announced, we plan to open seventy-five to
eighty-five EZMONEY Payday Loan stores in our fiscal 2004, including
approximately fifty that will adjoin an existing EZPAWN. Even with the drag
associated with these new stores, our earnings guidance for the year is fifty to
fifty-five cents per share compared to a comparable forty-three cents per share
for fiscal 2003. We expect our second quarter earnings to be in the range of
thirteen to sixteen cents per share compared to twelve cents for the second
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. As of December 31, 2003, the
Company operated 280 EZPAWN and 23 EZMONEY Payday Loan stores, nineteen of which
adjoin an EZPAWN location.
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 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
January 20, 2004 at 10:00am Central Standard Time. The conference call can be
accessed over the Internet (or replay it at your convenience) at the following
address.
http://www.firstcallevents.com/service/ajwz395915994gf12.html
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 and store counts)
<Table>
<Caption>
THREE MONTHS ENDED DECEMBER 31,
-------------------------------
2003 2002
---------- ----------
1 Total revenues $ 54,314 $ 53,199
2 Cost of goods sold 19,273 21,320
---------- ----------
3 Net revenues 35,041 31,879
4 Operating expenses 28,478 25,741
---------- ----------
5 Operating income before depreciation and amortization 6,563 6,138
6 Depreciation and amortization 1,915 2,267
---------- ----------
7 Operating income 4,648 3,871
8 Interest expense, net 448 657
9 Equity in net income of unconsolidated affiliate (365) (302)
---------- ----------
10 Income before income taxes 4,565 3,516
11 Income tax expense 1,575 1,231
---------- ----------
12 Income before cumulative effect of a change in accounting principle 2,990 2,285
13 Cumulative effect of adopting a new accounting principle, net of tax -- (8,037)
---------- ----------
14 Net income / (loss) $ 2,990 $ (5,752)
15
16 Income per share, assuming dilution:
17 Income before cumulative effect of a change in accounting principle $ 0.23 $ 0.18
18 Cumulative effect of adopting a new accounting principle, net of tax -- (0.65)
---------- ----------
19 Net income / (loss) $ 0.23 $ (0.47)
========== ==========
20
21 Weighted average shares - assuming dilution 12,847 12,361
</Table>
EZCORP, INC.
Highlights of Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data and store counts)
<Table>
<Caption>
AS OF DECEMBER 31,
2003 2002
------------ ------------
1 Assets:
2 Current assets:
3 Cash and cash equivalents $ 1,402 $ 553
4 Pawn loans 46,380 46,714
5 Payday loans 5,683 3,037
6 Pawn service charges receivable, net 9,602 9,543
7 Payday loan service charges receivable, net 1,137 608
8 Inventory, net 32,527 33,686
9 Deferred tax asset 8,163 6,418
10 Prepaid expenses and other assets 3,163 2,486
------------ ------------
11 Total current assets 108,057 103,045
12 Investment in unconsolidated affiliates 15,144 14,823
13 Property and equipment, net 24,701 30,442
14 Deferred tax asset, non-current 4,391 1,948
15 Other assets 5,555 5,461
------------ ------------
16 Total assets $ 157,848 $ 155,719
============ ============
17 Liabilities and stockholders' equity:
18 Current liabilities:
19 Accounts payable and other accrued expenses 9,837 10,792
20 Customer layaway deposits 1,675 1,733
21 Federal income taxes payable 1,012 862
------------ ------------
22 Total current liabilities 12,524 13,387
23 Long-term debt, less current maturities 32,450 39,309
24 Deferred gains and other long-term liabilities 4,229 4,114
------------ ------------
25 Total long-term liabilities 36,679 43,423
26 Total stockholders' equity 108,645 98,909
------------ ------------
27 Total liabilities and stockholders' equity $ 157,848 $ 155,719
============ ============
28
29 Pawn loan balance per ending pawn store $ 166 $ 167
30 Inventory per ending pawn store $ 116 $ 120
31 Book value per share $ 8.91 $ 8.13
32 Tangible book value per share $ 8.70 $ 7.89
33 Pawn store count - end of period 280 280
34 Mono-line payday loan store count - end of period 23 --
35 Shares outstanding - end of period 12,188 12,167
</Table>