EZCORP REPORTS 2013 REVENUES OF MORE THAN $1 BILLION

             EZCORP REPORTS 2013 REVENUES OF MORE THAN $1 BILLION

PR Newswire

AUSTIN, Texas, Nov. 7, 2013

AUSTIN, Texas, Nov.7, 2013 /PRNewswire/ -- EZCORP, Inc. (NASDAQ: EZPW), a
leading provider of easy cash solutions for consumers, announced that for the
fiscal year ended September30, 2013, total revenues were $1.01 billion, a
record for the company. Net income from continuing operations attributable to
EZCORP was $57 million.

EZCORP's core lending and retail businesses in the United States and Latin
America showed continued strength, highlighted by the following:

  oMerchandise sales in the U.S. increased 7% during the year, as the company
    continued to diversify its retail channels. Online sales, primarily of
    general merchandise, totaled $19 million during the year, and now account
    for 8% of general merchandise retail sales in the U.S.
  oTotal loan balances in the company's U.S. Financial Services division
    (including online loans) were up 29%, including 23% growth in storefront
    loans. Loan fees were up 7%, offsetting the negative impact of various
    regulatory changes that reduced net income by $7 million.
  oLatin America's segment contribution improved 40% during the year, after
    normalizing the prior year's results for a $16 million positive purchase
    accounting adjustment. This significant growth was driven by strong
    performance in the company's Mexico payroll withholding lending business
    (Grupo Finmart), where loan balances increased 46% during the year and
    total revenues increased 89%.

For the fiscal year, the combined effect of reduced gold volumes and the gold
price decline had a $31 million negative impact on the company's after tax
earnings. The company's fiscal year results also included $35 million of
one-time charges, including an impairment charge of $29 million on the
company's long-term investment in Albemarle & Bond Holdings, PLC, a gold and
jewelry pawnbroker in the U.K. In addition, investments in long-term growth
initiatives (including the company's online lending businesses in the U.S. and
the U.K. and denovo growth) further negatively impacted earnings by $20
million.

The following metrics refer to continuing operations, unless otherwise noted.

Consolidated Financial Highlights — Fiscal Year ended September 30, 2013
versus the prior year

  oTotal revenues exceeded $1 billion, a record for the company. Excluding
    jewelry scrapping, total revenues grew 14%, driven by a 24% increase in
    consumer loan fees, an 11% increase in merchandise sales, and an 8%
    increase in pawn service charges.
  oNet income from continuing operations attributable to EZCORP was $57
    million, while diluted earnings per share from continuing operations
    attributable to EZCORP were $1.06.
  oCash and cash equivalents, including restricted cash, were $42 million at
    year-end, with long-term debt of $246 million, including $105 million of
    Grupo Finmart third-party debt, which is non-recourse to EZCORP.
  oNet earning assets, including discontinued operations, were $466 million,
    a 20% increase over last year. Net earning assets consist of pawn loans,
    consumer loans and inventory on the balance sheet, combined with CSO loans
    not on the balance sheet, net of reserves. The growth in net earnings
    assets was driven by a 35% increase in loan balances in our combined
    financial services businesses, and a 13% increase in earning assets
    related to our pawn and retail businesses.

Fiscal Year 2013 Business Review

U.S. & Canada

  oStorefront Growth — At year end, the company operated over 1,000 locations
    in 26 states. During the year, the company opened 84 de novo stores, and
    acquired 12 stores in key markets.
  oPawn —

       oPawn loan balances increased to $143 million from $141 million for
         the prior year, and revenues from pawn service charges increased 5%
         in total and 2% on a same store basis. General merchandise loan
         balances grew by 11%, while jewelry loan balances declined 6%.
       oOverall merchandise sales were up 7% in total and 3% on a same store
         basis. General merchandise sales increased 10% in total and 6% on a
         same store basis. The company's online retail channel continued to
         grow, and reported $19 million in revenues primarily in general
         merchandise sales, for the fiscal year. During the year, jewelry
         sales decreased 1% in total and 4% on a same store basis. However, in
         the fourth quarter, jewelry sales increased 18% in total and 14% on a
         same store basis, reflecting our previously announced strategy to
         sell more gold through our retail channel and scrap less.
       oGross margin on merchandise sales was 41%, down 130 basis points from
         last year. This decrease was driven by a higher mix of general
         merchandise sales as general merchandise gross marginremained flat
         at40% while gross margin on jewelry sales was 45%.
       oThe overall redemption rate was 83%, up 80 basis points, driven by a
         jewelry redemption rate of 86%, up 150 basis points. Redemption rates
         for general merchandise were at unchanged at 76%.

  oFinancial Services (Storefront and Online) —

       oTotal loan balances (including CSO loans not on the balance sheet)
         were $51 million, up 29%, driven by a 70% increase in second
         generation loan products (such as installment and other multiple
         payment products and auto title loans). Storefront loan growth was
         strong as well, increasing 23%.
       oLoan fees were $175 million, up 7%, as a result of new products in
         existing stores, storefront growth, and new fees from the U.S. online
         lending channel.
       oBad debt as a percentage of fees was 25%, an increase of 300 basis
         points as we attracted new customers and our customers transitioned
         to our new multi-payment products, including auto title and our
         onlinechannel.
       oThe U.S. online business's loan book continues to grow and at year
         end was $2 million, net of reserves. While this business negatively
         impacted segment contribution in 2013, it is expected to make a
         positive contribution in fiscal 2014.

Latin America

The Latin America segment contribution was $27 million, a 40% increase over
the prior year after normalizing for the prior year's purchase accounting
adjustments. This increase was driven by strong performance at Grupo Finmart,
the company's payroll withholding lending division.

  oPayroll Withholding Lending —

       oTotal loan balances at Grupo Finmart at the end of the year were $107
         million, up 46%.
       oTotal revenue was $52 million, an increase of 89%, as a result of
         better contract terms and better penetration. Net revenues, including
         a credit for aged consumer loans that were sold, were $53 million.
         Absent this credit, bad debt as a percentage of fees was
         approximately 2%.
       oGrupo Finmart ended the year with 72 active convenios, compared to 67
         at the end of last year. Contract penetration across all convenios
         was 6% for the year, compared to 3% in the prior year.

  oPawn — 

       oEmpeno Facil, the company's Mexico pawn operation, opened 66
         locations during the year and operated 239 stores at the end of the
         year. As previously announced, the company closed 57 legacy,
         gold-only stores during the year, which is a part of the discontinued
         operations charge.
       oPawn loan balances at year-end were $14 million, a 10% decrease from
         the prior year-end. General merchandise loan balances were down 4%,
         while jewelry loan balances decreased 31%. General merchandise loans
         now comprise 92% of Empeno Facil's pawn loan portfolio, up from 89%
         last year.
       oRevenue from pawn service charges increased 29% in total and 10% on a
         same store basis.
       oMerchandise sales increased 40% in total and 10% on a same store
         basis. Gross margin on merchandise sales was 39%, down 700 basis
         points from a year ago, reflecting a much more competitive lending
         and selling marketplace.

Other International

  oAt fiscal year end, after reviewing the valuation of our holdings in
    Albemarle & Bond Holdings PLC, we recognized an impairment charge of $43
    million ($29 million net of tax).
  oCash Genie, the company's online lending operation in the U.K., performed
    well during the second and third quarters of the year, but a poorly
    executed introduction of an installment loan product caused performance to
    deteriorate in the fourth quarter. The company took rapid action to
    improve performance and is on track to return to profitability in fiscal
    2014.

CEO Commentary

Paul Rothamel, EZCORP's President and Chief Executive Officer, stated:
"Obviously, we are disappointed with our financial results in 2013,
particularly after posting three straight years of record revenue and net
income. We are committed to improving the operational performance of our
existing businesses, including our recently acquired online lending
businesses. We are confident that our consistent execution against that
commitment will ensure that we will deliver superior long-term value to our
shareholders."

The company provides supplemental information on its website. For additional
content, please see "Investor Resources & Supplemental Information" at
http://investors.ezcorp.com/.

About EZCORP

EZCORP, Inc. is a leader in delivering instant cash solutions to our customers
across channels, products, services and markets. With approximately 7,800
teammates and approximately 1,400 locations and branches, we give our
customers multiple ways to access instant cash, including pawn loans and
consumer loans in the United States, Mexico, Canada and the United Kingdom. We
offer these products through four primary channels: in-store, online, at the
worksite and through our mobile platform. At our pawn and buy/sell stores and
online, we also sell merchandise, primarily collateral forfeited from pawn
lending operations and used merchandise purchased from customers.

EZCORP owns controlling interests in Prestaciones Finmart, S.A.P.I. de C.V.,
SOFOM, E.N.R. (doing business under the names "Crediamigo" and "Adex"), a
leading provider of payroll deduction loans in Mexico; and in Renueva
Commercial, S.A.P.I. de C.V., an operator of buy/sell stores in Mexico under
the name "TUYO." The company also has significant investments in Albemarle &
Bond Holdings PLC (ABM.L), one of the U.K.'s largest pawnbroking businesses
with over 180 full-line stores offering pawnbroking, jewelry retailing, gold
buying and financial services; and in Cash Converters International Limited
(CCV.ASX), which franchises and operates a worldwide network of over 700
stores that provide personal financial services and sell pre-owned
merchandise.

For the latest information on EZCORP, please visit our website at:
http://investors.ezcorp.com/.

Forward-Looking Statements

This announcement contains certain forward-looking statements regarding the
company's expected operating and financial performance for future periods.
These statements are based on the company's current expectations. Actual
results for future periods may differ materially from those expressed or
implied by these forward-looking statements due to a number of uncertainties
and other factors, including fluctuations in gold prices or the desire of our
customers to pawn or sell their gold items, changes in the regulatory
environment, changing market conditions in the overall economy and the
industry, and consumer demand for the company's services and merchandise. For
a discussion of these and other factors affecting the company's business and
prospects, see the company's annual, quarterly and other reports filed with
the Securities and Exchange Commission.

(Logo: http://photos.prnewswire.com/prnh/20090713/EZCORPLOGO)

Contact:

Mark Trinske
Vice President, Investor Relations and Communications
EZCORP, Inc.
(512) 314-2220
Investor_Relations@ezcorp.com
http://investors.ezcorp.com/



EZCORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
                     Three Months Ended September  Fiscal Year Ended September
                     30,                           30,
                     2013             2012         2013            2012
Revenues:
Merchandise sales    $  87,504        $  76,793    $  368,766      $  333,064
Jewelry scrapping    18,123           55,415       131,702         202,481
sales
Pawn service charges 63,542           62,658       251,354         233,538
Consumer loan fees   65,185           57,087       248,304         200,681
Other revenues       12               2,008        10,181          5,359
Total revenues       234,366          253,961      1,010,307       975,123
Merchandise cost of  53,906           43,016       218,617         190,637
goods sold
Jewelry scrapping    15,140           37,908       96,133          130,715
cost of goods sold
Consumer loan bad    20,377           12,101       54,873          39,370
debt
Net revenues         144,943          160,936      640,684         614,401
Operating expenses:
Operations           104,879          88,334       414,225         336,348
Administrative       17,556           14,403       52,474          47,912
Depreciation         3,698            3,046        28,327          22,011
Amortization         5,233            1,956        5,233           1,956
Loss (gain) on sale
or disposal of       1,214            (135)        1,434           (27)
assets
Total operating      132,580          107,604      501,693         408,200
expenses
Operating income     12,363           53,332       138,991         206,201
Interest expense     4,139            (5,244)      15,166          (1,550)
(income)
Equity in net loss
(income) of          1,613            (4,465)      (11,878)        (17,400)
unconsolidated
affiliates
Impairment of        44,598           —            44,598          —
investments
Other income         (205)            (1,054)      (205)           (1,211)
(Loss) income from
continuing           (37,782)         64,095       91,310          226,362
operations before
income taxes
Income tax (benefit) (12,509)         18,588       29,575          71,252
expense
(Loss) income from
continuing           (25,273)         45,507       61,735          155,110
operations, net of
tax
Income (loss) from
discontinued         1,503            (1,366)      (23,310)        (4,533)
operations, net of
tax
Net (loss) income    (23,770)         44,141       38,425          150,577
Net income from
continuing
operations
attributable to      970              5,569        4,348           6,869
redeemable
noncontrolling
interest
Net (loss) income
attributable to      $  (24,740)      $  38,572    $  34,077       $  143,708
EZCORP, Inc.
Diluted earnings
(loss) per share
attributable to
EZCORP, Inc.:
Continuing           $  (0.48)        $  0.78      $  1.06         $  2.90
operations
Discontinued         0.02             (0.03)       (0.43)          (0.09)
operations
Diluted earnings per $  (0.46)        $  0.75      $  0.63         $  2.81
share
Weighted average     54,310           51,394       53,737          51,133
shares diluted
Net (loss) income
from continuing
operations           $  (26,243)      $  39,938    $  57,387       $  148,241
attributable to
EZCORP, Inc.
Income (loss) from
discontinued
operations           1,503            (1,366)      (23,310)        (4,533)
attributable to
EZCORP, Inc.
Net (loss) income
attributable to      $  (24,740)      $  38,572    $  34,077       $  143,708
EZCORP, Inc.





EZCORP, Inc.
Highlights of Consolidated Balance Sheets (Unaudited)
(in thousands)
                                               September 30,
                                               2013          2012
                                               (in thousands)
Assets:
Current assets:
Cash and cash equivalents                      $ 36,317      $ 48,477
Restricted cash                                3,312         1,145
Pawn loans                                     156,637       157,648
Consumer loans, net                            64,515        34,152
Pawn service charges receivable, net           30,362        29,401
Consumer loan fees receivable, net             36,588        30,416
Inventory, net                                 145,200       109,214
Deferred tax asset                             13,825        14,984
Income tax receivable                          10,694        10,511
Prepaid expenses and other assets              34,217        45,451
Total current assets                           531,667       481,399
Investments in unconsolidated affiliates       97,085        126,066
Property and equipment, net                    116,281       108,131
Restricted cash, non-current                   2,156         4,337
Goodwill                                       428,508       374,663
Intangible assets, net                         61,872        45,185
Non-current consumer loans, net                69,991        61,997
Deferred tax asset                             13,625        —
Other assets, net                              24,105        16,229
Total assets                                   $ 1,345,290   $ 1,218,007
Liabilities and stockholders' equity:
Current liabilities:
Current maturities of long-term debt           $ 30,436      $ 21,085
Current capital lease obligations              533           594
Accounts payable and other accrued expenses    79,967        64,104
Other current liabilities                      22,337        14,821
Customer layaway deposits                      8,628         7,238
Total current liabilities                      141,901       107,842
Long-term debt, less current maturities        215,939       198,836
Long-term capital lease obligations            391           995
Deferred tax liability                         —             7,922
Deferred gains and other long-term liabilities 17,140        13,903
Total liabilities                              375,371       329,498
Temporary equity:
Redeemable noncontrolling interest             55,393        53,681
EZCORP, Inc. stockholders' equity              914,526       834,828
Total liabilities and stockholders' equity     $ 1,345,290   $ 1,218,007





EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands)
                         Three Months Ended September 30, 2013
                         U.S. & Canada  Latin      Other          Consolidated
                                        America    International
                         (in thousands)
Revenues:
Merchandise sales        $   72,944     $ 14,560   $  —           $  87,504
Jewelry scrapping sales  14,385         3,738      —              18,123
Pawn service charges     56,573         6,969      —              63,542
Consumer loan fees       47,853         13,878     3,454          65,185
Other revenues           (356)          317        51             12
Total revenues           191,399        39,462     3,505          234,366
Merchandise cost of      44,211         9,695      —              53,906
goods sold
Jewelry scrapping cost   11,715         3,425      —              15,140
of goods sold
Consumer loan bad debt   15,732         911        3,734          20,377
Net revenues             119,741        25,431     (229)          144,943
Segment items:                                                    —
Operations               84,828         16,013     4,038          104,879
Depreciation and         4,567          1,866      125            6,558
amortization
Loss (gain) on sale or   82             (1)        —              81
disposal of assets
Interest expense         9              3,074      (1)            3,082
(income), net
Equity in net loss of
unconsolidated           —              —          1,613          1,613
affiliates
Impairment of            —              —          44,598         44,598
investments
Other expense            2              20         222            244
Segment contribution     $   30,253     $ 4,459    $  (50,824)    $  (16,112)
(loss)
Corporate expenses:
Administrative                                                    17,556
Depreciation and                                                  2,373
amortization
Loss on sale or disposal                                          1,133
of assets
Interest expense, net                                             1,057
Other income                                                      (449)
Loss from continuing
operations before income                                          (37,782)
taxes
Income tax benefit                                                (12,509)
Loss from continuing                                              (25,273)
operations, net of tax
Income from discontinued                                          1,503
operations, net of tax
Net loss                                                          (23,770)
Net income attributable to redeemable                             970
noncontrolling interest
Net loss attributable to                                          $  (24,740)
EZCORP, Inc.





EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands)
                         Three Months Ended September 30, 2012
                         U.S. & Canada  Latin      Other          Consolidated
                                        America    International
                         (in thousands)
Revenues:
Merchandise sales        $   64,990     $ 11,803   $   —          $  76,793
Jewelry scrapping sales  52,653         2,762      —              55,415
Pawn service charges     55,778         6,880      —              62,658
Consumer loan fees       42,152         9,137      5,798          57,087
Other revenues           1,329          529        150            2,008
Total revenues           216,902        31,111     5,948          253,961
Merchandise cost of      36,451         6,565      —              43,016
goods sold
Jewelry scrapping cost   35,756         2,152      —              37,908
of goods sold
Consumer loan bad debt   10,735         (831)      2,197          12,101
Net revenues             133,960        23,225     3,751          160,936
Segment items:                                                    —
Operations               75,718         9,478      3,138          88,334
Depreciation and         3,717          (218)      93             3,592
amortization
(Gain) loss on sale or   (148)          14         —              (134)
disposal of assets
Interest income, net     (23)           (6,262)    —              (6,285)
Equity in net income of
unconsolidated           —              —          (4,465)        (4,465)
affiliates
Other income             (993)          (7)        (54)           (1,054)
Segment contribution     $   55,689     $ 20,220   $   5,039      $  80,948
Corporate expenses:
Administrative                                                    14,403
Depreciation and                                                  1,410
amortization
Gain on sale or disposal                                          (1)
of assets
Interest expense, net                                             1,041
Income from continuing
operations before income                                          64,095
taxes
Income tax expense                                                18,588
Income from continuing                                            45,507
operations, net of tax
Loss from discontinued                                            (1,366)
operations, net of tax
Net income                                                        44,141
Net income attributable to redeemable                             5,569
noncontrolling interest
Net income attributable                                           $  38,572
to EZCORP, Inc.



EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands)
                         Year Ended September 30, 2013
                         U.S. & Canada  Latin      Other          Consolidated
                                        America    International
                         (in thousands)
Revenues:
Merchandise sales        $  310,521     $ 58,245   $  —           $  368,766
Jewelry scrapping sales  123,162        8,540      —              131,702
Pawn service charges     221,775        29,579     —              251,354
Consumer loan fees       174,726        50,461     23,117         248,304
Other revenues           5,113          3,197      1,871          10,181
Total revenues           835,297        150,022    24,988         1,010,307
Merchandise cost of      183,147        35,470     —              218,617
goods sold
Jewelry scrapping cost   88,637         7,496      —              96,133
of goods sold
Consumer loan bad debt   43,095         (113)      11,891         54,873
Net revenues             520,418        107,169    13,097         640,684
Segment items:
Operations               336,421        62,496     15,308         414,225
Depreciation and         17,962         6,933      462            25,357
amortization
Loss on sale or disposal 284            17         —              301
of assets
Interest expense         16             11,279     (2)            11,293
(income), net
Equity in net income of
unconsolidated           —              —          (11,878)       (11,878)
affiliates
Impairment of            —                         44,598         44,598
investments
Other (income) expense   (3)            (218)      153            (68)
Segment contribution     $  165,738     $ 26,662   $  (35,544)    $  156,856
Corporate expenses:
Administrative                                                    52,474
Depreciation and                                                  8,203
amortization
Loss on sale or disposal                                          1,133
of assets
Interest expense, net                                             3,873
Other income                                                      (137)
Income from continuing
operations before income                                          91,310
taxes
Income tax expense                                                29,575
Income from continuing                                            61,735
operations, net of tax
Loss from discontinued                                            (23,310)
operations, net of tax
Net income                                                        38,425
Net income attributable to redeemable                             4,348
noncontrolling interest
Net income attributable                                           $  34,077
to EZCORP, Inc.





EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands)
                         Year Ended September 30, 2012
                         U.S. & Canada  Latin      Other          Consolidated
                                        America    International
                         (in thousands)
Revenues:
Merchandise sales        $  291,497     $ 41,567   $   —          $  333,064
Jewelry scrapping sales  191,905        10,576     —              202,481
Pawn service charges     210,601        22,937     —              233,538
Consumer loan fees       163,896        26,901     9,884          200,681
Other revenues           3,759          1,292      308            5,359
Total revenues           861,658        103,273    10,192         975,123
Merchandise cost of      168,133        22,504     —              190,637
goods sold
Jewelry scrapping cost   122,604        8,111      —              130,715
of goods sold
Consumer loan bad debt   35,398         309        3,663          39,370
Net revenues             535,523        72,349     6,529          614,401
Segment items:
Operations               292,371        37,259     6,718          336,348
Depreciation and         13,579         4,689      223            18,491
amortization
(Gain) loss on sale or   (261)          12         223            (26)
disposal of assets
Interest income, net     (3)            (4,507)    (1)            (4,511)
Equity in net income of
unconsolidated           —              —          (17,400)       (17,400)
affiliates
Other income             (647)          (5)        (559)          (1,211)
Segment contribution     $  230,484     $ 34,901   $   17,325     $  282,710
Corporate expenses:
Administrative                                                    47,912
Depreciation and                                                  5,476
amortization
Gain on sale or disposal                                          (1)
of assets
Interest expense, net                                             2,961
Income from continuing
operations before income                                          226,362
taxes
Income tax expense                                                71,252
Income from continuing                                            155,110
operations, net of tax
Loss from discontinued                                            (4,533)
operations, net of tax
Net income                                                        150,577
Net income attributable to redeemable                             6,869
noncontrolling interest
Net income attributable                                           $  143,708
to EZCORP, Inc.





EZCORP, Inc.
Store Count Activity
             Fiscal Year Ended September 30, 2013
             Company-owned Stores                                       Franchises
                                           Other
             U.S.&Canada  LatinAmerica                 Consolidated
                                           International
Beginning of 987            275            —              1,262         10
period
De novo      84             73             —              157           —
Acquired     12             26             —              38            —
Sold,
combined or  (3)            (5)            —              (8)           (2)
closed
Discontinued (50)           (57)           —              (107)         —
operations
End of       1,030          312            —              1,342         8
period
             Fiscal Year Ended September 30, 2012
             Company-owned Stores                                       Franchises
                                           Other
             U.S. & Canada  Latin America                 Consolidated
                                           International
Beginning of 933            178            —              1,111         13
period
De novo      17             54             —              71            —
Acquired     51             45             —              96            —
Sold,
combined or  (14)           (2)            —              (16)          (3)
closed
End of       987            275            —              1,262         10
period

SOURCE EZCORP, Inc.

Website: http://www.ezcorp.com
 
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