EXHIBIT 99
EZCORP ANNOUNCES THIRD QUARTER RESULTS
AUSTIN, TEXAS (JULY 20, 2004) -- EZCORP, Inc. (Nasdaq/NM: EZPW) announced today
results for its third fiscal 2004 quarter and the nine month period, which ended
June 30, 2004.
For the quarter ended June 30, 2004, net income increased to $253,000 ($0.02 per
share) compared to $53,000 for the prior year period. Total revenues for the
third fiscal 2004 quarter increased 9% to $51,141,000 compared $46,903,000 for
the third fiscal 2003 quarter.
For the nine months ended June 30, 2004, net income improved to $6,250,000
($0.48 per share) compared to income before the cumulative effect of a change in
accounting principle of $3,836,000 ($0.31 per share) for the same nine month
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
($0.65 per share) for the cumulative effect of adopting this new accounting
principle, the Company reported a net loss for the nine month period ended June
30, 2003 of $4,201,000 ($0.34 cents per share).
Commenting on these results, Joseph L. Rotunda, President and Chief Executive
Officer, said, "We remain pleased with our progress. Not only have we
substantially improved earnings, but we have also significantly expanded our
store base. In the first three quarters of this fiscal year, we have added
eighty-one EZMoney Payday Loan stores, for a total of eighty-five, and improved
earnings 63% even with the earnings drag of these new stores."
Mr. Rotunda concluded, "Most gratifying is that all three business segments -
pawn, sales, and payday loans - showed year-on-year improvements. We are on
target to have an excellent year. We estimate fiscal 2004 earnings to be between
sixty-five and sixty-eight cents per share compared to a comparable forty-three
cents per share for fiscal 2003. During our fourth fiscal quarter, we plan on
adding thirty-five to forty additional EZMONEY Payday Loan locations.
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 June 30, 2004, the
Company operated 280 EZPAWN and 85 EZMONEY Payday Loan stores, 69 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 July
20, 2004 at 3:30pm Central 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/ajwz407992886gf12.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 JUNE 30,
---------------------------
2004 2003
------------ ------------
1 Revenues:
2 Merchandise sales $ 25,845 $ 24,863
3 Jewelry scrapping sales 4,937 5,149
4 Pawn service charges 13,835 13,619
5 Payday loan service charges 6,191 3,047
6 Other revenues 333 225
------------ ------------
7 Total revenues 51,141 46,903
8 Cost of goods sold:
9 Cost of merchandise sales 15,566 15,442
10 Cost of jewelry scrapping sales 3,774 4,272
------------ ------------
11 Total cost of goods sold 19,340 19,714
------------ ------------
12 Net revenues 31,801 27,189
13
14 Operations expense 21,830 19,700
15 Bad debt and other direct expenses on payday loans 2,832 1,111
16 Administrative expense 4,614 4,021
17 Depreciation and amortization 1,858 2,179
------------ ------------
18 Operating income 667 178
19
20 Interest expense, net 332 403
21 Equity in net income of unconsolidated affiliate (430) (333)
22 Loss on sale of assets -- 27
------------ ------------
23 Income before income taxes 765 81
24 Income tax expense 512 28
------------ ------------
25 Income before cumulative effect of a change in accounting principle 253 53
26 Cumulative effect of adopting a new accounting principle, net of tax -- --
------------ ------------
27 Net income $ 253 $ 53
============ ============
28
29 Income per share, assuming dilution:
30 Income before cumulative effect of a change in accounting principle $ 0.02 $ --
31 Cumulative effect of adopting a new accounting principle, net of tax -- --
------------ ------------
32 Net income $ 0.02 $ --
33
============ ============
34 Weighted average shares - assuming dilution 13,221 12,528
35 Pawn store count - average for period 280 280
36 Mono-line payday loan store count - average for period 71 --
</Table>
EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data and store counts)
- -------------------------------------------------------------------------------
<Table>
<Caption>
NINE MONTHS ENDED JUNE 30,
----------------------------
2004 2003
------------ ------------
1 Revenues:
2 Merchandise sales $ 90,095 $ 87,994
3 Jewelry scrapping sales 12,616 11,986
4 Pawn service charges 43,875 43,576
5 Payday loan service charges 16,124 8,798
6 Other revenues 1,034 770
------------ ------------
7 Total revenues 163,744 153,124
8 Cost of goods sold:
9 Cost of merchandise sales 52,007 53,380
10 Cost of jewelry scrapping sales 9,123 10,328
------------ ------------
11 Total cost of goods sold 61,130 63,708
------------ ------------
12 Net revenues 102,614 89,416
13
14 Operations expense 64,382 60,495
15 Bad debt and other direct expenses on payday loans 5,957 3,175
16 Administrative expense 16,854 12,711
17 Depreciation and amortization 5,638 6,636
------------ ------------
18 Operating income 9,783 6,399
19
20 Interest expense, net 1,153 1,534
21 Equity in net income of unconsolidated affiliate (1,291) (1,062)
22 Loss on sale of assets -- 26
------------ ------------
23 Income before income taxes 9,921 5,901
24 Income tax expense 3,671 2,065
------------ ------------
25 Income before cumulative effect of a change in accounting principle 6,250 3,836
26 Cumulative effect of adopting a new accounting principle, net of tax -- (8,037)
------------ ------------
27 Net income (loss) $ 6,250 $ (4,201)
============ ============
28
29 Income (loss) per share, assuming dilution:
30 Income before cumulative effect of a change in accounting principle $ 0.48 $ 0.31
31 Cumulative effect of adopting a new accounting principle, net of tax -- (0.65)
------------ ------------
32 Net income (loss) $ 0.48 $ (0.34)
============ ============
33
34 Weighted average shares - assuming dilution 13,138 12,474
35 Pawn store count - average for period 280 280
36 Mono-line payday loan store count - average for period 41 --
</Table>
EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data and store counts)
- ------------------------------------------------------------------------------
<Table>
<Caption>
AS OF JUNE 30,
2004 2003
------------ ------------
1 Assets:
2 Current assets:
3 Cash and cash equivalents $ 1,692 $ 248
4 Pawn loans 51,101 48,149
5 Payday loans 6,720 3,116
6 Pawn service charges receivable, net 8,557 8,806
7 Payday loan service charges receivable, net 1,336 611
8 Inventory, net 30,997 28,853
9 Deferred tax asset 8,163 6,418
10 Federal income taxes receivable 253 683
11 Prepaid expenses and other assets 2,287 2,209
------------ ------------
12 Total current assets 111,106 99,093
13 Investment in unconsolidated affiliates 15,734 15,113
14 Property and equipment, net 25,222 27,141
15 Deferred tax asset, non-current 4,391 1,948
16 Other assets 5,602 5,348
------------ ------------
17 Total assets $ 162,055 $ 148,643
============ ============
18 Liabilities and stockholders' equity:
19 Current liabilities:
20 Accounts payable and other accrued expenses $ 11,465 $ 9,186
21 Customer layaway deposits 1,554 1,471
22 Federal income taxes payable -- --
------------ ------------
23 Total current liabilities 13,019 10,657
24 Long-term debt, less current maturities 31,200 33,000
25 Deferred gains and other long-term liabilities 4,048 4,408
------------ ------------
26 Total long-term liabilities 35,248 37,408
27 Total stockholders' equity 113,788 100,578
------------ ------------
28 Total liabilities and stockholders' equity $ 162,055 $ 148,643
============ ============
29
30 Pawn loan balance per ending pawn store $ 183 $ 172
31 Inventory per ending pawn store $ 111 $ 103
32 Book value per share $ 9.21 $ 8.25
33 Tangible book value per share $ 8.98 $ 8.03
34 Pawn store count - end of period 280 280
35 Mono-line payday loan store count - end of period 85 --
36 Shares outstanding - end of period 12,361 12,188
</Table>