EXHIBIT 99
EZCORP ANNOUNCES THIRD QUARTER RESULTS
AUSTIN, TEXAS (JULY 22, 2003) -- EZCORP, Inc. (Nasdaq/NM: EZPW) announced today
results for its third fiscal 2003 quarter and the nine month period, which ended
June 30, 2003.
For the three months ended June 30, 2003, net income increased to $53,000 ($0.00
per share) compared to a net loss of $513,000 ($0.04 per share) for the
comparable prior year period. These earnings are at the upper end of the
Company's publicly announced estimate of $0.00 to a loss of $0.02 per share for
this period. Total revenues for the three month period increased 9% to
$46,903,000.
For the nine months ended June 30, 2003, income before the cumulative effect of
an accounting change increased to $3,836,000 ($0.31 per share) compared to
$1,953,000 ($0.16 per share) for the comparable prior year period. Total
revenues for the nine month period increased 5% to $153,124,000. 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 a net loss of
$4,201,000 for the nine month period.
Commenting on these results, Joseph L. Rotunda, President and Chief Executive
Officer, said, "Results for our third fiscal quarter continue to be in line with
our expectations. For the quarter, our pawn lending was especially strong with
pawn service charge revenue up six percent from the same period last year,
primarily due to a six percentage point improvement in our annualized yield on
pawn loans. We also realized three percent same store sales growth; however,
this came at a cost of lower margins as we aggressively pushed to reduce aging
inventory levels. Inventory turnover was very strong at 2.7 times compared to
2.2 times for the same period a year ago."
"Our payroll advance product continues to mature with payroll advance finance
charges up fifty-six percent to just over three-million dollars for the quarter
and our end of period loan balance up seventy-five percent from June 2002 to
$3,116,000. As we generated this growth, we also lowered our net defaults on
payroll advance loans one percentage point, compared to the third fiscal 2002
quarter, to 4.8%."
Mr. Rotunda continued, "We are also excited about opening our first two payroll
advance stores: one is a stand-alone store that offers payroll advances and the
other is a "store within a store" with the payroll advance operation separated
from the adjoining EZPawn. We believe both models offer significant growth
opportunity in the future."
The Company estimates fiscal 2003 earnings (before the cumulative effect of the
change in accounting principle) to be between thirty-five and forty cents per
share compared to eighteen cents per share for fiscal 2002. For the fiscal 2003
fourth quarter, the Company estimates earnings to be between four and nine cents
per share compared to two cents per share for the fiscal 2002 fourth quarter.
Seasonally, the Company's fourth quarter earnings are expected to be the second
weakest of the quarters (after the third quarter) due mainly to lower sales
levels. The Company's preliminary earnings guidance for its fiscal 2004 is fifty
to fifty-five cents per share.
EZCORP offers consumers convenient, non-recourse loans collateralized by
tangible personal property, and short-term non-collateralized loans, often
referred to as payday loans. A secondary, but related, business activity is the
selling of previously owned merchandise consisting primarily of forfeited
collateral. At June 30, 2003, the Company operated 280 stores in eleven states.
This announcement contains certain forward-looking statements regarding the
Company's expected performance for future periods including, but not limited to,
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
22, 2003 at 10:00 am Central Time. The conference call can be accessed over the
Internet (or replay at your convenience) at the following address.
http://www.firstcallevents.com/service/ajwz383995606gf12.html
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 JUNE 30,
--------------------------------
2003 2002
-------------- --------------
Total revenues $ 46,903 $ 43,140
Cost of goods sold 19,714 17,601
-------------- --------------
Net revenues 27,189 25,539
Operating expenses 24,832 22,804
-------------- --------------
Operating income before depreciation and amortization 2,357 2,735
Depreciation and amortization 2,179 2,501
-------------- --------------
Operating income 178 234
Interest expense, net 403 972
Equity in net income of unconsolidated affiliate (333) (110)
Loss on sale of assets 27 186
-------------- --------------
Income (loss) before income taxes 81 (814)
Income tax expense (benefit) 28 (301)
-------------- --------------
Income (loss) before cumulative effect of a change in accounting principle $ 53 $ (513)
Cumulative effect of adopting a new accounting principle, net of tax -- --
-------------- --------------
Net income (loss) $ 53 $ (513)
============== ==============
Income (loss) per share, assuming dilution:
Income (loss) before cumulative effect of a change in accounting principle $ -- $ (0.04)
Cumulative effect of adopting a new accounting principle, net of tax -- --
-------------- --------------
Net income (loss) $ -- $ (0.04)
============== ==============
Weighted average shares - assuming dilution 12,528 12,148
Store count - average for period 280 280
Pro forma results, as if the new accounting principle were in effect for all periods:
Net income (loss) as reported $ 53 $ (513)
Add back: goodwill and pawn license amortization, net of tax -- 95
Add back: amortization of goodwill related to equity investee, net
of tax -- 71
Add back: cumulative effect of adopting a new accounting principle, net of tax -- --
-------------- --------------
Adjusted net income (loss) $ 53 $ (347)
============== ==============
Per share amounts - assuming dilution:
Net income (loss) as reported $ -- $ (0.04)
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 (loss) $ -- $ (0.03)
============== ==============
</Table>
EZCORP, INC.
HIGHLIGHTS OF CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
(in thousands, except per share data and store count)
<Table>
<Caption>
NINE MONTHS ENDED JUNE 30,
2003 2002
-------------- --------------
Total revenues $ 153,124 $ 145,202
Cost of goods sold 63,708 60,591
-------------- --------------
Net revenues 89,416 84,611
Operating expenses 76,381 70,272
-------------- --------------
Operating income before depreciation and amortization 13,035 14,339
Depreciation and amortization 6,636 7,631
-------------- --------------
Operating income 6,399 6,708
Interest expense, net 1,534 3,711
Equity in net income of unconsolidated affiliate (1,062) (422)
Loss on sale of assets 26 319
-------------- --------------
Income before income taxes 5,901 3,100
Income tax expense 2,065 1,147
-------------- --------------
Income before cumulative effect of a change in accounting principle $ 3,836 $ 1,953
Cumulative effect of adopting a new accounting principle, net of tax (8,037) --
-------------- --------------
Net income (loss) $ (4,201) $ 1,953
============== ==============
Income (loss) per share, assuming dilution:
Income before cumulative effect of a change in accounting principle $ 0.31 $ 0.16
Cumulative effect of adopting a new accounting principle, net of tax $ (0.65) --
-------------- --------------
Net income (loss) $ (0.34) $ 0.16
============== ==============
Weighted average shares - assuming dilution 12,474 12,275
Store count - average for period 280 281
Pro forma results, as if the new accounting principle were in effect for all
periods:
Net income (loss) as reported $ (4,201) $ 1,953
Add back: goodwill and pawn license amortization, net of tax -- 285
Add back: amortization of goodwill related to equity investee, net of tax -- 214
Add back: cumulative effect of adopting a new accounting principle, net of tax 8,037 --
-------------- --------------
Adjusted net income $ 3,836 $ 2,452
-------------- --------------
Per share amounts - assuming dilution:
Net income (loss) as reported $ (0.34) $ 0.16
Add back: goodwill and pawn license amortization, net of tax -- 0.02
Add back: amortization of goodwill related to equity investee, net of tax -- 0.02
Add back: cumulative effect of adopting a new accounting principle, net of tax 0.65 --
-------------- --------------
Adjusted net income $ 0.31 $ 0.20
============== ==============
</Table>
EZCORP, Inc.
HIGHLIGHTS OF CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data and store count)
<Table>
<Caption>
AS OF JUNE 30,
2003 2002
------------ ------------
Assets:
Current assets:
Cash and cash equivalents $ 248 $ 1,418
Pawn loans 48,149 47,648
Payroll advances 3,116 1,784
Pawn service charges receivable, net 8,806 8,253
Payroll advance service charges receivable, net 611 382
Inventory, net 28,853 32,634
Deferred tax asset 6,418 6,434
Federal income taxes receivable 683 --
Prepaid expenses and other assets 2,209 2,359
------------ ------------
Total current assets 99,093 100,912
Investment in unconsolidated affiliates 15,113 13,932
Property and equipment, net 27,141 34,214
Deferred tax asset, non-current 1,948 --
Other assets 5,348 16,252
------------ ------------
Total assets $ 148,643 $ 165,310
============ ============
Liabilities and stockholders' equity:
Current liabilities:
Current maturities of long-term debt $ -- $ 43,445
Accounts payable and other accrued expenses 9,186 10,666
Customer layaway deposits 1,471 1,811
------------ ------------
Total current liabilities 10,657 55,922
Long-term debt, less current maturities 33,000 --
Deferred tax liability -- 1,193
Deferred gains and other long-term liabilities 4,408 4,200
------------ ------------
Total long-term liabilities 37,408 5,393
Total stockholders' equity 100,578 103,995
------------ ------------
Total liabilities and stockholders' equity $ 148,643 $ 165,310
============ ============
Pawn loan balance per ending store $ 172 $ 170
Inventory per ending store $ 103 $ 117
Book value per share $ 8.25 $ 8.55
Tangible book value per share $ 8.03 $ 7.41
Store count - end of period 280 280
Basic shares outstanding - end of period 12,188 12,167
</Table>