EXHIBIT 99.1
EZCORP ANNOUNCES FISCAL FOURTH QUARTER AND YEAREND RESULTS
AUSTIN, TEXAS (NOVEMBER 10, 2005) -- EZCORP, Inc. (Nasdaq: EZPW) announced today
results for its fiscal fourth quarter and 2005 fiscal year, which ended
September 30, 2005.
For the quarter ended September, net income increased 29% to $3,705,000 ($0.27
per share) from $2,873,000 ($0.22 per share) for the 2004 fiscal fourth quarter.
Total revenues for the quarter increased 14% to $73,183,000 compared to
$64,053,000 for the prior year period.
For the twelve month period ended September, net income increased 62% to
$14,752,000 ($1.09 per share) from $9,123,000 ($0.70 per share) for fiscal 2004.
Total revenues for the fiscal year increased 12% to $254,159,000 from
$227,797,000 for fiscal 2004.
Commenting on these results, President and Chief Executive Officer, Joe Rotunda,
stated, "The fourth quarter is our thirteenth consecutive quarter of
year-over-year earnings growth and caps off a very successful year. For the
quarter, all elements of our business contributed to our strong performance.
Signature loan finance charges and fees, after bad debt & direct transaction
expenses, increased 77% from the prior year. Pawn service charges improved 6%
from portfolio growth and yield improvement. Gross profit on sales increased 5%
as a result of 3% same store sales growth and better jewelry scrapping margins."
Rotunda continued, "The results for the quarter are especially strong in light
of the challenges we faced due to hurricanes Katrina and Rita and to the
conversion of 181 Texas EZMoney stores to a credit services organization, or
CSO. As a result of the hurricanes, we lost approximately 500 store days during
the quarter. The direct financial impact on the quarter from the hurricanes was
approximately $500,000, or just over two cents per share, mainly from lost
revenues. In July, we announced the CSO conversion. Included in our results for
the quarter is approximately $450,000, or two cents per share, of expenses
directly related to this conversion, largely signage, point of purchase
materials, and legal expense."
Rotunda concluded, "Looking forward to fiscal 2006, we expect to generate
earnings per share in the range of $1.45 to $1.50. For our first fiscal 2006
quarter, we expect to generate earnings per share of $0.42 to $0.45. In fiscal
2006, we plan to continue expansion of our EZMoney brand by opening between 115
and 125 new locations."
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 280 EZPAWN locations, 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 234 EZMoney locations and 98 EZPAWN
locations, 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 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 a conference call discussing these results on
November 10, 2005 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://phx.corporate-ir.net/playerlink.zhtml?c=69434&s=wm&e=1157852
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,
---------------------------------------------
2005 2004
---------------------------------------------
Revenues:
Merchandise sales $ 27,538 $ 26,721
Jewelry scrapping sales 13,295 14,040
Pawn service charges 16,201 15,215
Payday loan service charges 2,605 7,750
Credit service fees 13,246 -
Other 298 327
---------------------------------------------
Total revenues 73,183 64,053
Cost of goods sold:
Cost of merchandise sales 16,162 15,675
Cost of jewelry scrapping sales 10,281 11,397
---------------------------------------------
Total cost of goods sold 26,443 27,072
---------------------------------------------
Net revenues 46,740 36,981
Operations expense 25,492 22,480
Payday loan bad debt and other direct expenses 1,291 3,146
Credit service bad debt and other direct expenses 6,395 -
Administrative expense 5,898 4,991
Depreciation and amortization 2,088 1,874
---------------------------------------------
Operating income 5,576 4,490
Interest expense, net 359 375
Equity in net income of unconsolidated affiliate (572) (448
Loss on sale/disposal of assets - 3
---------------------------------------------
Income before income taxes 5,789 4,560
Income tax expense 2,084 1,687
---------------------------------------------
Net income $ 3,705 $ 2,873
=============================================
---------------------------------------------
Net income per share, assuming dilution $ 0.27 $ 0.22
=============================================
Weighted average shares - assuming dilution 13,740 13,083
EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
- --------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------------
2005 2004
----------------------------------
Revenues:
Merchandise sales $ 118,951 $ 116,816
Jewelry scrapping sales 29,459 26,656
Pawn service charges 62,274 59,090
Payday loan service charges 28,954 23,874
Credit service fees 13,246 --
Other 1,275 1,361
----------------------------------
Total revenues 254,159 227,797
Cost of goods sold:
Cost of merchandise sales 68,680 67,682
Cost of jewelry scrapping sales 21,998 20,520
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Total cost of goods sold 90,678 88,202
----------------------------------
Net revenues 163,481 139,595
Operations expense 95,876 86,862
Payday loan bad debt and other direct expenses 7,808 9,103
Credit service bad debt and other direct expenses 6,395 --
Administrative expense 23,067 21,845
Depreciation and amortization 8,104 7,512
----------------------------------
Operating income 22,231 14,273
Interest expense, net 1,275 1,528
Equity in net income of unconsolidated affiliate (2,173) (1,739)
Loss on sale/disposal of assets 79 3
----------------------------------
Income before income taxes 23,050 14,481
Income tax expense 8,298 5,358
----------------------------------
Net income $ 14,752 $ 9,123
==================================
----------------------------------
Net income per share, assuming dilution $ 1.09 $ 0.70
==================================
Weighted average shares - assuming dilution 13,574 13,122
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EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data and store counts)
- --------------------------------------------------------------------------------
AS OF SEPTEMBER 30,
2005 2004
----------------------------
Assets:
Current assets:
Cash and cash equivalents $ 4,168 $ 2,506
Pawn loans 52,864 49,078
Payday loans, net 1,634 7,292
Pawn service charges receivable, net 9,492 8,679
Payday loan service charges receivable, net 272 1,474
Credit service fees receivable, net 3,007 --
Inventory, net 30,293 30,636
Deferred tax asset 10,534 9,711
Prepaid expenses and other assets 1,998 2,321
----------------------------
Total current assets 114,262 111,697
Investment in unconsolidated affiliate 17,348 16,101
Property and equipment, net 26,964 25,846
Deferred tax asset, non-current 4,012 4,946
Other assets, net 2,862 5,732
----------------------------
Total assets $165,448 $164,322
============================
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable and other accrued expenses $ 18,988 $ 14,947
Customer layaway deposits 1,672 1,645
Federal income taxes payable 648 2,043
----------------------------
Total current liabilities 21,308 18,635
Long-term debt 7,000 25,000
Deferred gains and other long-term liabilities 3,597 3,958
----------------------------
Total long-term liabilities 10,597 28,958
Total stockholders' equity 133,543 116,729
----------------------------
Total liabilities and stockholders' equity $165,448 $164,322
============================
Pawn loan balance per ending pawn store $ 189 $ 175
Inventory per ending pawn store $ 108 $ 109
Book value per share $ 10.39 $ 9.44
Tangible book value per share $ 10.21 $ 9.23
Pawn store count - end of period 280 280
Mono-line payday loan store count - end of period 234 125
Shares outstanding - end of period 12,859 12,362
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