EXHIBIT 99.1
EZCORP ANNOUNCES THIRD FISCAL QUARTER RESULTS
AUSTIN, TEXAS (JULY 25, 2006) -- EZCORP, Inc. (Nasdaq: EZPW) announced today
results for its third fiscal quarter and nine month period, which ended June 30,
2006.
For the quarter ended June 30, 2006, EZCORP's net income increased 163% to
$5,608,000 ($0.40 per share) compared to $2,129,000 ($0.16 per share) for the
quarter ended June 30, 2005. Total revenues for the third fiscal quarter
increased 31% to $73,786,000 while operating income improved 155% to $8,040,000.
Operating income margins for the quarter, measured as a percent of net revenues,
improved approximately eight percentage points to 16%.
For the nine months ended June 30, 2006, EZCORP's net income increased 82% to
$20,091,000 ($1.44 per share) compared to $11,047,000 ($0.82 per share) for the
same nine month period a year ago. Total revenues grew 26% to $228,497,000 while
operating income increased 79% to $29,895,000. Operating income margins for the
nine months, measured as a percent of net revenue, improved approximately six
percentage points to 20%.
Commenting on these results, President and Chief Executive Officer, Joe Rotunda,
stated, "We continue to be pleased with our strong momentum and the continuation
of our five-plus year trend of growing our earnings and profitably expanding our
business. Our fiscal third quarter is the 16th consecutive quarter of
year-over-year earnings growth. This quarter we increased earnings 163% over the
prior year quarter. We are especially pleased with the strong performance of our
pawn operation as well as the continued strong performance of our signature loan
business."
Rotunda continued, "Our pawn contribution or pawn net revenues improved 17% in
the third quarter as a result of a 35% increase in sales gross profit and a 2%
increase in pawn service charges. Higher gold values assisted in delivering this
strong pawn performance. Our signature loan contribution, or fees less bad debt
and direct transaction expenses, increased 78% over the prior year quarter. The
maturation of our 288 EZMONEY stores opened in the last three years fueled this
significant growth."
Rotunda concluded, "Our earnings guidance for the fourth fiscal 2006 quarter is
$0.43 to $0.46 per share compared to $0.27 per share for the fiscal 2005 fourth
quarter. For our 2006 fiscal year, we are raising guidance to $1.87 to $1.90 per
share compared to fiscal 2005's $1.09 per share. Included in our guidance is an
expected earnings drag of approximately $0.07 to $0.10 per share for stores open
less than nine months."
EZCORP is a lender and 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 288 EZMONEY
locations and 82 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 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 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 July 25, 2006 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=34480
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)
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THREE MONTHS ENDED JUNE 30,
-----------------------------
2006 2005
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1 Revenues:
2 Merchandise sales $ 29,612 $ 26,102
3 Jewelry scrapping sales 11,028 4,892
4 Pawn service charges 15,021 14,722
5 Payday loan service charges 1,347 10,231
6 Credit service fees 16,474 --
7 Other 304 303
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8 Total revenues 73,786 56,250
9 Cost of goods sold:
10 Cost of merchandise sales 16,868 14,777
11 Cost of jewelry scrapping sales 6,830 3,644
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12 Total cost of goods sold 23,698 18,421
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13 Net revenues 50,088 37,829
14
15 Operations expense 27,402 23,693
16 Payday loan bad debt and direct transaction expenses 635 3,413
17 Credit service bad debt and direct transaction expenses 5,038 --
18 Administrative expense 6,830 5,506
19 Depreciation and amortization 2,143 2,058
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20 Operating income 8,040 3,159
21
22 Interest expense (income), net (150) 302
23 Equity in net income of unconsolidated affiliate (557) (505)
24 (Gain) loss on sale/disposal of assets (70) 36
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25 Income before income taxes 8,817 3,326
26 Income tax expense 3,209 1,197
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27 Net income $ 5,608 $ 2,129
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28
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29 Net income per share, assuming dilution $ 0.40 $ 0.16
====================
30
31 Weighted average shares - assuming dilution 14,186 13,434
EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
NINE MONTHS ENDED JUNE 30,
--------------------------
2006 2005
--------------------------
1 Revenues:
2 Merchandise sales $ 104,304 $ 91,413
3 Jewelry scrapping sales 26,294 16,164
4 Pawn service charges 46,988 46,073
5 Payday loan service charges 3,602 26,349
6 Credit service fees 46,347 --
7 Other 962 977
----------------------
8 Total revenues 228,497 180,976
9 Cost of goods sold:
10 Cost of merchandise sales 60,415 52,518
11 Cost of jewelry scrapping sales 17,281 11,717
----------------------
12 Total cost of goods sold 77,696 64,235
----------------------
13 Net revenues 150,801 116,741
14
15 Operations expense 81,623 70,384
16 Payday loan bad debt and direct transaction expenses 1,757 6,517
17 Credit service bad debt and direct transaction expenses 10,777 --
18 Administrative expense 20,347 17,169
19 Depreciation and amortization 6,402 6,016
----------------------
20 Operating income 29,895 16,655
21
22 Interest expense, net 113 916
23 Equity in net income of unconsolidated affiliate (1,745) (1,601)
24 (Gain) loss on sale/disposal of assets (62) 79
----------------------
25 Income before income taxes 31,589 17,261
26 Income tax expense 11,498 6,214
----------------------
27 Net income $ 20,091 $ 11,047
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28
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29 Net income per share, assuming dilution $ 1.44 $ 0.82
======================
30
31 Weighted average shares - assuming dilution 13,974 13,507
EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data and store counts)
- --------------------------------------------------------------------------------
AS OF JUNE 30,
2006 2005
--------------------
1 Assets:
2 Current assets:
3 Cash and cash equivalents $ 22,731 $ 1,972
4 Pawn loans 48,932 50,888
5 Payday loans, net 1,966 11,089
6 Pawn service charges receivable, net 7,037 9,020
7 Payday loan service charges receivable, net 329 2,244
8 Credit service fees receivable, net 3,379 --
9 Inventory, net 32,937 28,956
10 Deferred tax asset 8,365 9,711
11 Note receivable from related party -- 1,500
12 Prepaid expenses and other assets 3,340 3,197
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13 Total current assets 129,016 118,577
14 Investment in unconsolidated affiliate 17,870 17,110
15 Property and equipment, net 27,283 26,147
16 Deferred tax asset, non-current 3,669 4,946
17 Other assets, net 3,245 4,205
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18 Total assets $181,083 $170,985
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19 Liabilities and stockholders' equity:
20 Current liabilities:
21 Accounts payable and other accrued expenses $ 18,517 $ 13,651
22 Customer layaway deposits 1,734 1,559
23 Federal income taxes payable 752 1,452
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24 Total current liabilities 21,003 16,662
25
26 Long-term debt -- 21,900
27 Deferred gains and other long-term liabilities 3,339 3,687
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28 Total long-term liabilities 3,339 25,587
29 Total stockholders' equity 156,741 128,736
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30 Total liabilities and stockholders' equity $181,083 $170,985
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31
32 Pawn loan balance per ending pawn store $ 175 $ 182
33 Inventory per ending pawn store $ 118 $ 103
34 Book value per share $ 11.85 $ 10.34
35 Tangible book value per share $ 11.65 $ 10.15
36 Pawn store count - end of period 280 280
37 Mono-line payday loan store count - end of period 288 203
38 Shares outstanding - end of period 13,226 12,446