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Quarterly Information (Unaudited) (Tables)
 12 Months Ended
Sep. 30, 2014
Quarterly Financial Information Disclosure [Abstract]  
Schedule of quarterly information
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
 
 
 
 
 
 
 
 
As Restated (See Note 2)

 
(in thousands, except per share amounts)
Year Ended September 30, 2014
 
 
 
 
 
 
 
Total revenues
$
253,756

 
$
245,131

 
$
223,134

 
$
235,625

Net revenues
151,407

 
149,921

 
135,588

 
133,313

(Loss) income from continuing operations, net of tax
19,669

 
5,223

 
3,669

 
(8,623
)
Loss from discontinued operations, net of tax
(2,735
)
 
(634
)
 
(2,076
)
 
(86,579
)
Net (loss) income
16,934

 
4,589

 
1,593

 
(95,202
)
Net income from continuing operations attributable to redeemable noncontrolling interest
(1,796
)
 
(1,553
)
 
(2,337
)
 
(1,701
)
Net (loss) income attributable to EZCORP, Inc.
$
18,730


$
6,142


$
3,930


$
(93,501
)
 
 
 
 
 
 
 
 
Basic (loss) earnings per share attributable to EZCORP, Inc.:
 
 
 
 
 
 
 
Continuing operations
$
0.40

 
$
0.12

 
$
0.11

 
$
(0.13
)
Discontinued operations
(0.05
)
 
(0.01
)
 
(0.04
)
 
(1.62
)
Basic (loss) earnings per share
$
0.35

 
$
0.11

 
$
0.07

 
$
(1.75
)
 
 
 
 
 
 
 
 
Diluted (loss) earnings per share attributable to EZCORP, Inc.:
 
 
 
 
 
 
 
Continuing operations
$
0.39

 
$
0.12

 
$
0.11

 
$
(0.13
)
Discontinued operations
(0.05
)
 
(0.01
)
 
(0.04
)
 
(1.62
)
Diluted (loss) earnings per share
$
0.34

 
$
0.11

 
$
0.07

 
$
(1.75
)
 
 
 
 
 
 
 
 
Year Ended September 30, 2013
 
 
 
 
 
 
 
Total revenues
$
261,239

 
$
256,890

 
$
223,451

 
$
228,588

Net revenues
161,102

 
159,542

 
141,728

 
140,552

(Loss) income from continuing operations, net of tax
29,555

 
32,670

 
15,241

 
(23,184
)
Loss from discontinued operations, net of tax
(2,562
)
 
(3,425
)
 
(22,289
)
 
(4,996
)
Net (loss) income
26,993

 
29,245

 
(7,048
)
 
(28,180
)
Net (loss) income from continuing operations attributable to redeemable noncontrolling interest
26

 
(995
)
 
(152
)
 
(101
)
Net (loss) income from discontinued operations attributable to redeemable noncontrolling interest
(106
)
 
12

 
54

 
(36
)
Net (loss) income attributable to EZCORP, Inc.
$
27,073

 
$
30,228

 
$
(6,950
)
 
$
(28,043
)
 
 
 
 
 
 
 
 
Basic (loss) earnings per share attributable to EZCORP, Inc.:
 
 
 
 
 
 
 
Continuing operations
$
0.57

 
$
0.63

 
$
0.28

 
$
(0.42
)
Discontinued operations
(0.05
)
 
(0.06
)
 
(0.41
)
 
(0.10
)
Basic (loss) earnings per share
$
0.52


$
0.57

 
$
(0.13
)

$
(0.52
)
 
 
 
 
 
 
 
 
Diluted (loss) earnings per share attributable to EZCORP, Inc.:
 
 
 
 
 
 
 
Continuing operations
$
0.57

 
$
0.63

 
$
0.28

 
$
(0.43
)
Discontinued operations
(0.05
)
 
(0.06
)
 
(0.41
)
 
(0.10
)
Diluted (loss) earnings per share
$
0.52


$
0.57

 
$
(0.13
)
 
$
(0.53
)
The following tables summarize the impact of the restatement adjustments for each quarterly period within fiscal 2014.
 
Fiscal 2014
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Fiscal Year
 
December 31, 2013
 
March 31, 2014
 
June 30, 2014
 
September 30, 2014
 
September 30, 2014
 
(in thousands)
Income from continuing operations before income taxes (as previously reported)
$
37,847

 
$
14,035

 
$
19,207

 
$
1,611

 
$
72,700

Asset sale impact
(3,221
)
 
(3,590
)
 
(8,661
)
 
(9,804
)
 
(25,276
)
Portfolio review impact
(9,430
)
 
(5,259
)
 
(6,970
)
 
(6,240
)
 
(27,899
)
Other impacts
(704
)
 
889

 
499

 
4,985

 
5,669

Net impact of adjustments
(13,355
)
 
(7,960
)
 
(15,132
)
 
(11,059
)
 
(47,506
)
Income (loss) from continuing operations before income taxes (as restated)
$
24,492

 
$
6,075

 
$
4,075

 
$
(9,448
)
 
$
25,194

 
Fourth Quarter of Fiscal 2014
 
Third Quarter of Fiscal 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
(in thousands, except per share amounts)
 
(in thousands, except per share amounts)
Results of Operations:
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
242,209

 
$
(6,584
)
 
$
235,625

 
$
232,602

 
$
(9,468
)
 
$
223,134

Net revenues
142,810

 
(9,497
)
 
133,313

 
149,951

 
(14,363
)
 
135,588

Operating expenses
137,813

 
(2,140
)
 
135,673

 
127,155

 
(852
)
 
126,303

Non-operating expenses
3,386

 
3,702

 
7,088

 
3,589


1,621

 
5,210

(Loss) income from continuing operations before income taxes
1,611

 
(11,059
)
 
(9,448
)
 
19,207

 
(15,132
)
 
4,075

Income tax (benefit) expense
2,342

 
(3,167
)
 
(825
)
 
4,303

 
(3,897
)
 
406

(Loss) income from continuing operations, net of tax
$
(731
)
 
$
(7,892
)
 
$
(8,623
)
 
$
14,904

 
$
(11,235
)
 
$
3,669

Net (loss) income attributable to EZCORP, Inc.
$
(87,807
)
 
$
(5,694
)
 
$
(93,501
)
 
$
11,506

 
$
(7,576
)
 
$
3,930

Diluted (loss) earnings per share attributable to EZCORP, Inc.
$
(1.64
)
 
$
(0.11
)
 
$
(1.75
)
 
$
0.21

 
$
(0.14
)
 
$
0.07

Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
Total current assets
$
676,361

 
$
(41,498
)
 
$
634,863

 
$
646,227

 
$
(16,068
)
 
$
630,159

Total assets
1,403,471

 
7,073

 
1,410,544

 
1,522,367

 
(1,834
)
 
1,520,533

Total current liabilities
124,996

 
23,218

 
148,214

 
128,705

 
19,079

 
147,784

Total liabilities
492,785

 
62,655

 
555,440

 
507,796

 
48,440

 
556,236

Total temporary equity
35,498

 
(12,698
)
 
22,800

 
36,645

 
(10,983
)
 
25,662

EZCORP, Inc. stockholders’ equity
875,188

 
(42,884
)
 
832,304

 
977,926

 
(39,291
)
 
938,635

Cash Flow Data (year-to-date):
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
89,244

 
$
(14,543
)
 
$
74,701

 
$
60,779

 
$
(17,522
)
 
$
43,257

Net cash used in investing activities
(34,838
)
 
(45,222
)
 
(80,060
)
 
(31,190
)
 
(11,911
)
 
(43,101
)
Net cash provided by (used in) financing activities
(33,862
)
 
66,377

 
32,515

 
(16,188
)
 
36,484

 
20,296

Net increase in cash and cash equivalents
$
20,012

 
$
6,213

 
$
26,225

 
$
13,682

 
$
6,652

 
$
20,334

 
Second Quarter of Fiscal 2014
 
First Quarter of Fiscal 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
(in thousands, except per share amounts)
 
(in thousands, except per share amounts)
Results of Operations:
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
250,682

 
$
(5,551
)
 
$
245,131

 
$
263,039

 
$
(9,283
)
 
$
253,756

Net revenues
158,479

 
(8,558
)
 
149,921

 
163,857

 
(12,450
)
 
151,407

Operating expenses
130,397

 
(400
)
 
129,997

 
123,115

 
385

 
123,500

Non-operating expenses
14,047


(198
)
 
13,849

 
2,895


520


3,415

Income from continuing operations before income taxes
14,035

 
(7,960
)
 
6,075

 
37,847

 
(13,355
)
 
24,492

Income tax expense
4,203

 
(3,351
)
 
852

 
9,958

 
(5,135
)
 
4,823

Income from continuing operations, net of tax
$
9,832

 
$
(4,609
)
 
$
5,223

 
$
27,889

 
$
(8,220
)
 
$
19,669

Net income attributable to EZCORP, Inc.
$
7,992

 
$
(1,850
)
 
$
6,142

 
$
22,569

 
$
(3,839
)
 
$
18,730

Diluted earnings per share attributable to EZCORP, Inc.
$
0.15

 
$
(0.04
)
 
$
0.11

 
$
0.42

 
$
(0.08
)
 
$
0.34

Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
Total current assets
$
537,113

 
$
(33,914
)
 
$
503,199

 
$
556,455

 
$
(29,504
)
 
$
526,951

Total assets
1,352,236

 
(19,092
)
 
1,333,144

 
1,369,129

 
(9,278
)
 
1,359,851

Total current liabilities
106,680

 
6,492

 
113,172

 
111,777

 
7,922

 
119,699

Total liabilities
339,653

 
19,814

 
359,467

 
370,257

 
25,071

 
395,328

Total temporary equity
58,107

 
(14,390
)
 
43,717

 
57,578

 
(11,753
)
 
45,825

EZCORP, Inc. stockholders’ equity
954,476

 
(24,516
)
 
929,960

 
941,294

 
(22,596
)
 
918,698

Cash Flow Data (year-to-date):
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
53,617

 
$
(10,020
)
 
$
43,597

 
$
17,454

 
$
(3,963
)
 
$
13,491

Net cash (used in) provided by investing activities
16,086

 
(7,116
)
 
8,970

 
(4,342
)
 
(14,728
)
 
(19,070
)
Net cash (used in) provided by financing activities
(73,810
)
 
24,540

 
(49,270
)
 
(11,046
)
 
20,148

 
9,102

Net (decrease) increase in cash and cash equivalents
(4,119
)
 
7,347

 
3,228

 
2,169

 
1,420

 
3,589

The effects of the restatement on our unaudited condensed consolidated financial statements as of and for the quarter ended June 30, 2014 (the third quarter of fiscal 2014) are set forth below.
EZCORP, Inc.
CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share amounts)
 
June 30, 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
Assets:
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
49,999

 
$
(565
)
 
$
49,434

Restricted cash
13,248

 
35,881

 
49,129

Pawn loans
157,491

 
—

 
157,491

Consumer loans, net
76,748

 
(11,961
)
 
64,787

Pawn service charges receivable, net
29,307

 
—

 
29,307

Consumer loan fees and interest receivable, net
38,351

 
(23,319
)
 
15,032

Inventory, net
132,021

 
(1,182
)
 
130,839

Deferred tax asset
13,825

 
1,477

 
15,302

Prepaid income taxes
21,779

 
21,898

 
43,677

Prepaid expenses and other assets
113,458

 
(38,297
)
 
75,161

Total current assets
646,227

 
(16,068
)
 
630,159

Investments in unconsolidated affiliates
90,730

 
—

 
90,730

Property and equipment, net
109,458

 
—

 
109,458

Restricted cash, non-current
22,473

 
(17,895
)
 
4,578

Goodwill
436,765

 
—

 
436,765

Intangible assets, net
78,918

 
(173
)
 
78,745

Non-current consumer loans, net
51,798

 
32,832

 
84,630

Deferred tax asset
9,308

 
23

 
9,331

Other assets, net
76,690

 
(553
)
 
76,137

Total assets
$
1,522,367

 
$
(1,834
)
 
$
1,520,533

 
 
 
 
 
 
Liabilities and stockholders’ equity:
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Current maturities of long-term debt
$
21,029

 
$
20,096

 
$
41,125

Current capital lease obligations
520

 
—

 
520

Accounts payable and other accrued expenses
90,234

 
(1,017
)
 
89,217

Other current liabilities
8,716

 
—

 
8,716

Customer layaway deposits
8,206

 
—

 
8,206

Total current liabilities
128,705

 
19,079

 
147,784

Long-term debt, less current maturities
360,628

 
26,589

 
387,217

Deferred gains and other long-term liabilities
18,463

 
2,772

 
21,235

Total liabilities
507,796

 
48,440

 
556,236

Commitments and contingencies
 
 
 
 
 
Temporary equity:
 
 
 
 
 
Redeemable noncontrolling interest
36,645

 
(10,983
)
 
25,662

Stockholders’ equity:
 
 
 
 
 
Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 100 million at June 30, 2014; issued and outstanding: 51,612,246 at June 30, 2014
519

 
—

 
519

Class B Voting Common Stock, convertible, par value $.01 per share; 3 million shares authorized; issued and outstanding: 2,970,171
30

 
—

 
30

Additional paid-in capital
347,216

 
(7,347
)
 
339,869

Retained earnings
641,947

 
(31,897
)
 
610,050

Accumulated other comprehensive income
115

 
(47
)
 
68

Treasury stock, at cost; 1 million shares at June 30, 2014
(11,901
)
 
—

 
(11,901
)
EZCORP, Inc. stockholders’ equity
977,926

 
(39,291
)
 
938,635

Total liabilities and stockholders’ equity
$
1,522,367

 
$
(1,834
)
 
$
1,520,533

EZCORP, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended June 30, 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
Merchandise sales
$
89,170

 
$
—

 
$
89,170

Jewelry scrapping sales
20,273

 
—

 
20,273

Pawn service charges
59,917

 
—

 
59,917

Consumer loan fees and interest
52,459

 
275

 
52,734

Other revenues
10,783

 
(9,743
)
 
1,040

Total revenues
232,602

 
(9,468
)
 
223,134

Merchandise cost of goods sold
55,751

 
263

 
56,014

Jewelry scrapping cost of goods sold
15,131

 
—

 
15,131

Consumer loan bad debt
11,769

 
4,632

 
16,401

Net revenues
149,951

 
(14,363
)
 
135,588

Operating expenses:
 
 
 
 
 
Operations
103,788

 
(590
)
 
103,198

Administrative
14,467

 
(262
)
 
14,205

Depreciation
7,460

 
—

 
7,460

Amortization
1,306

 
—

 
1,306

Loss on sale or disposal of assets
134

 
—

 
134

Total operating expenses
127,155

 
(852
)
 
126,303

Operating income
22,796

 
(13,511
)
 
9,285

Interest expense, net
6,076

—

986

 
7,062

Equity in net income of unconsolidated affiliates
(2,117
)
 
—

 
(2,117
)
Other loss (income)
(370
)
 
635

 
265

Income from continuing operations before income taxes
19,207

 
(15,132
)
 
4,075

Income tax expense
4,303

 
(3,897
)
 
406

Income from continuing operations, net of tax
14,904

 
(11,235
)
 
3,669

Loss from discontinued operations, net of tax
(2,561
)
 
485

 
(2,076
)
Net (loss) income
12,343

 
(10,750
)
 
1,593

Net (loss) income from continuing operations attributable to redeemable noncontrolling interest
837

 
(3,174
)
 
(2,337
)
Net income attributable to EZCORP, Inc.
$
11,506

 
$
(7,576
)
 
$
3,930

 
 
 
 
 
 
Basic earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.26

 
$
(0.15
)
 
$
0.11

Discontinued operations
(0.05
)
 
0.01

 
(0.04
)
Basic earnings per share
$
0.21

 
$
(0.14
)
 
$
0.07

 
 
 
 
 
 
Diluted earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.26

 
$
(0.15
)
 
$
0.11

Discontinued operations
(0.05
)
 
0.01

 
(0.04
)
Diluted earnings per share
$
0.21

 
$
(0.14
)

$
0.07

 
 
 
 
 
 
Net income from continuing operations attributable to EZCORP, Inc.
$
14,067

 
$
(8,061
)
 
$
6,006

Loss from discontinued operations attributable to EZCORP, Inc.
(2,561
)
 
485

 
(2,076
)
Net income attributable to EZCORP, Inc.
$
11,506

 
$
(7,576
)
 
$
3,930


EZCORP, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 
Three Months Ended June 30, 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Net income
$
12,343

 
$
(10,750
)
 
$
1,593

Other comprehensive income:
 
 
 
 
 
Foreign currency translation gain
6,897

 
(1,553
)
 
5,344

Loss on effective portion of cash flow hedge:
 
 
 
 
 
Unrealized loss before reclassification
(497
)
 
—

 
(497
)
Amounts reclassified from accumulated other comprehensive income
272

 
—

 
272

Amounts reclassified from accumulated other comprehensive income

(77
)
 
—

 
(77
)
Income tax expense
(1,096
)
 
278

 
(818
)
Other comprehensive income, net of tax
5,499

 
(1,275
)
 
4,224

Comprehensive income
$
17,842

 
$
(12,025
)
 
$
5,817

Attributable to redeemable noncontrolling interest:
 
 
 
 
 
Net (loss) income
837

 
(3,174
)
 
(2,337
)
Foreign currency translation gain
1,581

 
(1,104
)
 
477

Amounts reclassified from accumulated other comprehensive income

(90
)
 
—

 
(90
)
Comprehensive (loss) income attributable to redeemable noncontrolling interest
2,328

 
(4,278
)
 
(1,950
)
Comprehensive income attributable to EZCORP, Inc.
$
15,514

 
$
(7,747
)
 
$
7,767

EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
 
Nine Months Ended June 30, 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Operating activities:
 
 
 
 
 
Net income
$
45,805

 
$
(22,689
)
 
$
23,116

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
28,083

 
—

 
28,083

Accretion of debt premium and consumer loan discount, net
—

 
(68
)
 
(68
)
Consumer loan loss provision
26,335

 
2,566

 
28,901

Deferred income taxes
(1,280
)
 
—

 
(1,280
)
Amortization of deferred financing costs
—

 
4,166

 
4,166

Amortization of prepaid commissions
—

 
10,039

 
10,039

Other
4,252

 
(5,005
)
 
(753
)
Gain on sale or disposal of assets
(6,137
)
 
—

 
(6,137
)
Gain on sale of loan portfolio
(14,312
)
 
14,312

 
—

Stock compensation expense
9,929

 
(442
)
 
9,487

Income from investments in unconsolidated affiliates
(3,880
)
 
—

 
(3,880
)
Impairment of investments
7,940

 
—

 
7,940

Changes in operating assets and liabilities, net of business acquisitions:
 
 
 
 
 
Service charges and fees receivable, net
(4,407
)
 
5,984

 
1,577

Inventory, net
1,061

 
1,182

 
2,243

Receivables, prepaid expenses, other current assets and other assets, net
(25,402
)
 
(9,947
)
 
(35,349
)
Accounts payable and other accrued expenses
(7,221
)
 
(1,913
)
 
(9,134
)
Deferred gains and other long-term liabilities
943

 
(1,285
)
 
(342
)
Customer layaway deposits
(433
)
 
—

 
(433
)
Tax provision from stock compensation
570

 
(570
)
 
—

Prepaid income taxes
(6,196
)
 
(13,852
)
 
(20,048
)
Dividends from unconsolidated affiliates
5,129

 
—

 
5,129

Net cash provided by operating activities
60,779

 
(17,522
)
 
43,257

Investing activities:
 
 
 
 
 
Loans made
(705,181
)
 
—

 
(705,181
)
Loans repaid
476,196

 
22,026

 
498,222

Recovery of pawn loan principal through sale of forfeited collateral
182,004

 
—

 
182,004

Additions to property and equipment
(15,930
)
 
—

 
(15,930
)
Acquisitions, net of cash acquired
(12,990
)
 
—

 
(12,990
)
Proceeds from sale of assets
44,568

 
(33,937
)
 
10,631

Other investing activities
143

 
—

 
143

Net cash used in investing activities
(31,190
)
 
(11,911
)
 
(43,101
)
Financing activities:
 
 
 
 
 
Tax benefit from stock compensation
(569
)
 
569

 
—

Taxes paid related to net share settlement of equity awards
(1,990
)
 
—

 
(1,990
)
Debt issuance costs
(12,686
)
 
—

 
(12,686
)
Payout of deferred and contingent consideration
(23,000
)
 
—

 
(23,000
)
Proceeds from issuance of convertible notes
200,000

 
—

 
200,000

Purchase of convertible notes hedges
(40,395
)
 
—

 
(40,395
)
Proceeds from issuance of warrants
21,824

 
—

 
21,824

Purchase of subsidiary shares from noncontrolling interest
(21,139
)
 
—

 
(21,139
)
Change in restricted cash
(29,992
)
 
(10,769
)
 
(40,761
)
Proceeds from revolving line of credit
389,900

 
—

 
389,900

Payments on revolving line of credit
(530,800
)
 
—

 
(530,800
)
Proceeds from borrowings
102,138

 
52,268

 
154,406

Payments on borrowings and capital lease obligations
(57,578
)
 
(5,584
)
 
(63,162
)
Repurchase of common stock
(11,901
)
 
—

 
(11,901
)
Net cash provided by (used in) financing activities
(16,188
)
 
36,484

 
20,296

Effect of exchange rate changes on cash and cash equivalents
281

 
(399
)
 
(118
)
Net increase in cash and cash equivalents
13,682

 
6,652

 
20,334

Cash and cash equivalents at beginning of period
36,317

 
(7,217
)
 
29,100

Cash and cash equivalents at end of period
$
49,999

 
$
(565
)
 
$
49,434

 
 
 
 
 
 
EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
Non-cash investing and financing activities:
 
 
 
 
 
Pawn loans forfeited and transferred to inventory
$
171,288

 
$
—

 
$
171,288

Deferred consideration
2,692

 
—

 
2,692

Issuance of common stock to 401(k) plan
557

 
—

 
557

Equity adjustment due to noncontrolling interest purchase
6,588

 
—

 
6,588

Receivable from sale of portfolio
38,269

 
(38,269
)
 
—

Receivable from issuance of convertible notes
30,000

 
—

 
30,000

Payable to purchase convertible note hedge
6,059

 
—

 
6,059

Warrants receivable related to issuance of convertible notes
3,282

 
—

 
3,282

Deferred finance cost payable related to convertible notes
2,400

 
—

 
2,400

Payable to purchase additional shares of noncontrolling interest
8,636

 
—

 
8,636

EZCORP, Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
 
Common Stock
 
Additional Paid-in Capital
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
Treasury Stock
 
EZCORP, Inc. Stockholders' Equity
 
Shares
 
Par
Value
 
 
Retained
Earnings
 
 
Shares
 
Par
Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited, except balances as of September 30, 2013)
 
(in thousands)
 
As Previously Reported
Balances at September 30, 2013
54,240

 
$
543

 
$
320,777

 
$
599,880

 
$
(6,674
)
 
—

 
$
—

 
$
914,526

Issuance of common stock related to 401(k) match
45

 
1

 
557

 
—

 
—

 
—

 
—

 
558

Stock compensation
—

 
—

 
9,929

 
—

 
—

 
—

 
—

 
9,929

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(6,594
)
 
—

 
(15
)
 
 
 
 
 
(6,609
)
Release of restricted stock
297

 
5

 
—

 
—

 
—

 
—

 
—

 
5

Tax deficiency of stock compensation
—

 
—

 
(569
)
 
—

 
—

 
—

 
—

 
(569
)
Taxes paid related to net share settlement of equity awards
—

 
—

 
(1,990
)
 
—

 
—

 
—

 
(1
)
 
(1,991
)
Effective portion of cash flow hedge
—

 
—

 
—

 
—

 
(213
)
 
—

 
—

 
(213
)
Net proceeds from sale of warrants
—

 
—

 
25,106

 
—

 
—

 
—

 
—

 
25,106

Unrealized gain on available-for-sale securities
—

 
—

 
—

 
—

 
351

 
—

 
—

 
351

Foreign currency translation adjustment
—

 
—

 
—

 
—

 
6,291

 
—

 
—

 
6,291

Foreign currency translation reclassification adjustment realized upon impairment
—

 
—

 
—

 
—

 
375

 
—

 
—

 
375

Purchase of treasury stock
—

 
—

 
—

 
—

 
—

 
1,000

 
(11,900
)
 
(11,900
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
42,067

 
—

 
—

 
—

 
42,067

Balances at June 30, 2014
54,582

 
$
549

 
$
347,216

 
$
641,947

 
$
115

 
1,000

 
$
(11,901
)
 
$
977,926

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
Balances at September 30, 2013
—

 
$
—

 
$
(240
)
 
$
(18,632
)
 
$
229

 
—

 
$
—

 
$
(18,643
)
Stock compensation
—

 
—

 
(442
)
 
—

 
—

 
—

 
—

 
(442
)
Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(6,665
)
 
—

 
—

 
—

 
—

 
(6,665
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(276
)
 
—

 
—

 
(276
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
(13,265
)
 
—

 
—

 
—

 
(13,265
)
Balances at June 30, 2014
—

 
$
—

 
$
(7,347
)
 
$
(31,897
)
 
$
(47
)
 
—

 
$
—

 
$
(39,291
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As Restated
Balances at September 30, 2013
54,240

 
$
543

 
$
320,537

 
$
581,248

 
$
(6,445
)
 
—

 
$
—

 
$
895,883

Issuance of common stock related to 401(k) match
45

 
1

 
557

 
—

 
—

 
—

 
—

 
558

Stock compensation
—

 
—

 
9,487

 
—

 
—

 
—

 
—

 
9,487

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(13,259
)
 
—

 
(15
)
 
 
 
 
 
(13,274
)
Release of restricted stock
297

 
5

 
—

 
—

 
—

 
—

 
—

 
5

Tax deficiency of stock compensation
—

 
—

 
(569
)
 
—

 
—

 
—

 
—

 
(569
)
Taxes paid related to net share settlement of equity awards
—

 
—

 
(1,990
)
 
—

 
—

 
—

 
(1
)
 
(1,991
)
Effective portion of cash flow hedge
—

 
—

 
—

 
—

 
(213
)
 
—

 
—

 
(213
)
Net proceeds from sale of warrants
—

 
—

 
25,106

 
—

 
—

 
—

 
—

 
25,106

Unrealized gain on available-for-sale securities
—

 
—

 
—

 
—

 
351

 
—

 
—

 
351

Foreign currency translation adjustment
—

 
—

 
—

 
—

 
6,015

 
—

 
—

 
6,015

Foreign currency translation reclassification adjustment realized upon impairment
—

 
—

 
—

 
—

 
375

 
—

 
—

 
375

Purchase of treasury stock
—

 
—

 
—

 
—

 
—

 
1,000

 
(11,900
)
 
(11,900
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
28,802

 
—

 
—

 
—

 
28,802

Balances at June 30, 2014
54,582


$
549


$
339,869


$
610,050


$
68


1,000


$
(11,901
)

$
938,635

The effects of the restatement on our unaudited condensed consolidated financial statements as of and for the quarter ended March 31, 2014 (the second quarter of fiscal 2014) are set forth below.
EZCORP, Inc.
CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share amounts)
 
March 31, 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
Assets:
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
32,198

 
$
130

 
$
32,328

Restricted cash
21,104

 
6,140

 
27,244

Pawn loans
128,683

 
—

 
128,683

Consumer loans, net
75,501

 
(18,054
)
 
57,447

Pawn service charges receivable, net
24,733

 
—

 
24,733

Consumer loan fees and interest receivable, net
40,033

 
(24,163
)
 
15,870

Inventory, net
129,013

 
(919
)
 
128,094

Deferred tax asset
13,825

 
1,477

 
15,302

Prepaid income taxes
17,702

 
17,432

 
35,134

Prepaid expenses and other assets
54,321

 
(15,957
)
 
38,364

Total current assets
537,113

 
(33,914
)
 
503,199

Investments in unconsolidated affiliates
88,685

 
—

 
88,685

Property and equipment, net
111,419

 
—

 
111,419

Restricted cash, non-current
9,575

 
(6,266
)
 
3,309

Goodwill
435,048

 
—

 
435,048

Intangible assets, net
69,016

 
(143
)
 
68,873

Non-current consumer loans, net
61,724

 
21,601

 
83,325

Deferred tax asset
9,619

 
23

 
9,642

Other assets, net
30,037

 
(393
)
 
29,644

Total assets
$
1,352,236

 
$
(19,092
)
 
$
1,333,144

 
 
 
 
 
 
Liabilities and stockholders’ equity:
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Current maturities of long-term debt
$
14,228

 
$
6,661

 
$
20,889

Current capital lease obligations
533

 
—

 
533

Accounts payable and other accrued expenses
70,812

 
(169
)
 
70,643

Other current liabilities
12,121

 
—

 
12,121

Customer layaway deposits
8,986

 
—

 
8,986

Total current liabilities
106,680

 
6,492

 
113,172

Long-term debt, less current maturities
214,254

 
10,125

 
224,379

Long-term capital lease obligations
106

 
—

 
106

Deferred gains and other long-term liabilities
18,613

 
3,197

 
21,810

Total liabilities
339,653

 
19,814

 
359,467

Commitments and contingencies
 
 
 
 
 
Temporary equity:
 
 
 
 
 
Redeemable noncontrolling interest
58,107

 
(14,390
)
 
43,717

Stockholders’ equity:
 
 
—

 
 
Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 100 million at March 31, 2014; issued and outstanding: 51,411,973 at March 31, 2014
513

 
—

 
513

Class B Voting Common Stock, convertible, par value $.01 per share; 3 million shares authorized; issued and outstanding: 2,970,171
30

 
—

 
30

Additional paid-in capital
327,385

 
(319
)
 
327,066

Retained earnings
630,441

 
(24,321
)
 
606,120

Accumulated other comprehensive loss
(3,893
)
 
124

 
(3,769
)
EZCORP, Inc. stockholders’ equity
954,476

 
(24,516
)
 
929,960

Total liabilities and stockholders’ equity
$
1,352,236

 
$
(19,092
)
 
$
1,333,144


EZCORP, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended March 31, 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
Merchandise sales
$
103,454

 
$
—

 
$
103,454

Jewelry scrapping sales
26,193

 
—

 
26,193

Pawn service charges
59,162

 
—

 
59,162

Consumer loan fees and interest
55,865

 
(1,088
)
 
54,777

Other revenues
6,008

 
(4,463
)
 
1,545

Total revenues
250,682

 
(5,551
)
 
245,131

Merchandise cost of goods sold
63,857

 
366

 
64,223

Jewelry scrapping cost of goods sold
20,111

 
—

 
20,111

Consumer loan bad debt
8,235

 
2,641

 
10,876

Net revenues
158,479

 
(8,558
)
 
149,921

Operating expenses:
 
 
 
 
 
Operations
101,471

 
(364
)
 
101,107

Administrative
20,032

 
(36
)
 
19,996

Depreciation
7,414

 
—

 
7,414

Amortization
1,393

 
—

 
1,393

Loss on sale or disposal of assets
87

 
—

 
87

Total operating expenses
130,397

 
(400
)
 
129,997

Operating income
28,082

 
(8,158
)
 
19,924

Interest expense, net
5,275

—

684

 
5,959

Equity in net income of unconsolidated affiliates
(492
)
 
—

 
(492
)
Impairment of investments
7,940

 
—

 
7,940

Other loss
1,324

 
(882
)
 
442

Income from continuing operations before income taxes
14,035

 
(7,960
)
 
6,075

Income tax expense
4,203

 
(3,351
)
 
852

Income from continuing operations, net of tax
9,832

 
(4,609
)
 
5,223

Loss from discontinued operations, net of tax
(765
)
 
131

 
(634
)
Net income
9,067

 
(4,478
)
 
4,589

Net (loss) income from continuing operations attributable to redeemable noncontrolling interest
1,075

 
(2,628
)
 
(1,553
)
Net income attributable to EZCORP, Inc.
$
7,992

 
$
(1,850
)
 
$
6,142

 
 
 
 
 
 
Basic earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.16

 
$
(0.04
)
 
$
0.12

Discontinued operations
(0.01
)
 
—

 
(0.01
)
Basic earnings per share
$
0.15

 
$
(0.04
)
 
$
0.11

 
 
 
 
 
 
Diluted earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.16

 
$
(0.04
)
 
$
0.12

Discontinued operations
(0.01
)
 
—

 
(0.01
)
Diluted earnings per share
$
0.15

 
$
(0.04
)
 
$
0.11

 
 
 
 
 
 
Net income from continuing operations attributable to EZCORP, Inc.
$
8,757

 
$
(1,981
)
 
$
6,776

Loss from discontinued operations attributable to EZCORP, Inc.
(765
)
 
131

 
(634
)
Net income attributable to EZCORP, Inc.
$
7,992

 
$
(1,850
)
 
$
6,142


EZCORP, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 
Three Months Ended March 31, 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Net income
$
9,067

 
$
(4,478
)
 
$
4,589

Other comprehensive income:
 
 
 
 
 
Foreign currency translation loss
(2,109
)
 
(33
)
 
(2,142
)
Foreign currency translation reclassification adjustment realized upon impairment
375

 
—

 
375

Loss on effective portion of cash flow hedge:
 
 
 
 
 
Unrealized loss before reclassification
(326
)
 
—

 
(326
)
Amounts reclassified from accumulated other comprehensive income
297

 
—

 
297

Amounts reclassified from accumulated other comprehensive income

626

 
—

 
626

Income tax benefit
476

 
4

 
480

Other comprehensive loss, net of tax
(661
)
 
(29
)
 
(690
)
Comprehensive income
$
8,406

 
$
(4,507
)
 
$
3,899

Attributable to redeemable noncontrolling interest:
 
 
 
 
 
Net (loss) income
1,075

 
(2,628
)
 
(1,553
)
Foreign currency translation loss
(37
)
 
(9
)
 
(46
)
Amounts reclassified from accumulated other comprehensive income

(52
)
 
—

 
(52
)
Comprehensive (loss) income attributable to redeemable noncontrolling interest
986

 
(2,637
)
 
(1,651
)
Comprehensive income attributable to EZCORP, Inc.
$
7,420

 
$
(1,870
)
 
$
5,550

EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
 
Six Months Ended March 31, 2014
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Operating activities:
 
 
 
 
 
Net income
$
33,462

 
$
(11,939
)
 
$
21,523

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
18,886

 
—

 
18,886

Accretion of debt premium and consumer loan discount, net
—

 
(170
)
 
(170
)
Consumer loan loss provision
17,365

 
1,197

 
18,562

Deferred income taxes
(1,624
)
 
—

 
(1,624
)
Amortization of deferred financing costs
—

 
2,550

 
2,550

Amortization of prepaid commissions
—

 
5,144

 
5,144

Other
2,551

 
(3,340
)
 
(789
)
Gain on sale or disposal of assets
(6,081
)
 
—

 
(6,081
)
Gain on sale of loan portfolio
(5,784
)
 
5,784

 
—

Stock compensation expense
8,268

 
(79
)
 
8,189

Income from investments in unconsolidated affiliates
(1,763
)
 
—

 
(1,763
)
Impairment of investments
7,940

 
—

 
7,940

Changes in operating assets and liabilities, net of business acquisitions:
 
 
 
 
 
Service charges and fees receivable, net
2,625

 
6,876

 
9,501

Inventory, net
1,777

 
919

 
2,696

Receivables, prepaid expenses, other current assets and other assets, net
(15,778
)
 
(5,212
)
 
(20,990
)
Accounts payable and other accrued expenses
(11,155
)
 
493

 
(10,662
)
Deferred gains and other long-term liabilities
1,554

 
(2,409
)
 
(855
)
Customer layaway deposits
353

 
—

 
353

Tax provision from stock compensation
411

 
(411
)
 
—

Prepaid income taxes
(1,987
)
 
(9,423
)
 
(11,410
)
Dividends from unconsolidated affiliates
2,597

 
—

 
2,597

Net cash provided by operating activities
53,617

 
(10,020
)
 
43,597

Investing activities:
 
 
 
 
 
Loans made
(448,159
)
 
—

 
(448,159
)
Loans repaid
325,171

 
11,799

 
336,970

Recovery of pawn loan principal through sale of forfeited collateral
130,359

 
—

 
130,359

Additions to property and equipment
(10,643
)
 
—

 
(10,643
)
Acquisitions, net of cash acquired
(10,282
)
 
—

 
(10,282
)
Proceeds from sale of assets
29,546

 
(18,915
)
 
10,631

Other investing activities
94

 
—

 
94

Net cash (used in) provided by investing activities
16,086

 
(7,116
)
 
8,970

Financing activities:
 
 
 
 
 
Tax benefit from stock compensation
(411
)
 
411

 
—

Taxes paid related to net share settlement of equity awards
(629
)
 
—

 
(629
)
Debt issuance costs
(5,176
)
 
—

 
(5,176
)
Payout of deferred and contingent consideration
(23,000
)
 
—

 
(23,000
)
Purchase of subsidiary shares from noncontrolling interest
(1,082
)
 
—

 
(1,082
)
Change in restricted cash
(25,099
)
 
7,343

 
(17,756
)
Proceeds from revolving line of credit
217,493

 
—

 
217,493

Payments on revolving line of credit
(273,070
)
 
—

 
(273,070
)
Proceeds from borrowings
86,661

 
19,108

 
105,769

Payments on borrowings and capital lease obligations
(49,497
)
 
(2,322
)
 
(51,819
)
Net cash used in financing activities
(73,810
)
 
24,540

 
(49,270
)
Effect of exchange rate changes on cash and cash equivalents
(12
)
 
(57
)
 
(69
)
Net decrease in cash and cash equivalents
(4,119
)
 
7,347

 
3,228

Cash and cash equivalents at beginning of period
36,317

 
(7,217
)
 
29,100

Cash and cash equivalents at end of period
$
32,198

 
$
130

 
$
32,328

 
 
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
 
Pawn loans forfeited and transferred to inventory
$
118,050

 
$
—

 
$
118,050

Deferred consideration
5,331

 
—

 
5,331

Change in accrued additions to property and equipment
122

 
—

 
122

EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
Note receivable from sale of assets
15,903

 
—

 
15,903

Purchase of shares from noncontrolling interest
619

 
—

 
619


EZCORP, Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
 
Common Stock
 
Additional Paid-in Capital
 
 
 
Accumulated Other Comprehensive (Loss) Income
 
EZCORP, Inc. Stockholders' Equity
 
Shares
 
Par
Value
 
 
Retained
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited, except balances as of September 30, 2013)
 
(in thousands)
 
As Previously Reported
Balances at September 30, 2013
54,240

 
$
543

 
$
320,777

 
$
599,880

 
$
(6,674
)
 
$
914,526

Stock compensation
—

 
—

 
8,276

 
—

 
—

 
8,276

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(619
)
 
—

 
(15
)
 
(634
)
Release of restricted stock
142

 
—

 
—

 
—

 
—

 
—

Tax deficiency of stock compensation
—

 
—

 
(420
)
 
—

 
—

 
(420
)
Taxes paid related to net share settlement of equity awards
—

 
—

 
(629
)
 
—

 
—

 
(629
)
Effective portion of cash flow hedge
—

 
—

 
—

 
—

 
(78
)
 
(78
)
Unrealized gain on available-for-sale securities
—

 
—

 
—

 
—

 
401

 
401

Foreign currency translation adjustment
—

 
—

 
—

 
—

 
2,098

 
2,098

Foreign currency translation reclassification adjustment realized upon impairment
—

 
—

 
—

 
—

 
375

 
375

Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
30,561

 
—

 
30,561

Balances at March 31, 2014
54,382

 
$
543

 
$
327,385

 
$
630,441

 
$
(3,893
)
 
$
954,476

 
 
 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
Balances at September 30, 2013
—

 
$
—

 
$
(240
)
 
$
(18,632
)
 
$
229

 
$
(18,643
)
Stock compensation
—

 
—

 
(79
)
 
—

 
—

 
(79
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(105
)
 
(105
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
(5,689
)
 
—

 
(5,689
)
Balances at March 31, 2014
—

 
$
—

 
$
(319
)
 
$
(24,321
)
 
$
124

 
$
(24,516
)
 
 
 
 
 
 
 
 
 
 
 
 
 
As Restated
Balances at September 30, 2013
54,240

 
$
543

 
$
320,537

 
$
581,248

 
$
(6,445
)
 
$
895,883

Stock compensation
—

 
—

 
8,197

 
—

 
—

 
8,197

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(619
)
 
—

 
(15
)
 
(634
)
Release of restricted stock
142

 
—

 
—

 
—

 
—

 
—

Tax deficiency of stock compensation
—

 
—

 
(420
)
 
—

 
—

 
(420
)
Taxes paid related to net share settlement of equity awards
—

 
—

 
(629
)
 
—

 
—

 
(629
)
Effective portion of cash flow hedge
—

 
—

 
—

 
—

 
(78
)
 
(78
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
401

 
401

Foreign currency translation adjustment
—

 
—

 
—

 
—

 
1,993

 
1,993

Foreign currency translation reclassification adjustment realized upon impairment
—

 
—

 
—

 
—

 
375

 
375

Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
24,872

 
—

 
24,872

Balances at March 31, 2014
54,382


$
543


$
327,066


$
606,120


$
(3,769
)

$
929,960

The effects of the restatement on our unaudited condensed consolidated financial statements as of and for the quarter ended December 31, 2013 (the first quarter of fiscal 2014) are set forth below.
EZCORP, Inc.
CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share amounts)
 
December 31, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
Assets:
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
38,486

 
$
(5,797
)
 
$
32,689

Restricted cash
4,019

 
4,352

 
8,371

Pawn loans
153,421

 
—

 
153,421

Consumer loans, net
82,807

 
(20,154
)
 
62,653

Pawn service charges receivable, net
30,842

 
—

 
30,842

Consumer loan fees and interest receivable, net
40,181

 
(22,766
)
 
17,415

Inventory, net
142,711

 
(552
)
 
142,159

Deferred tax asset
13,825

 
1,477

 
15,302

Prepaid income taxes
7,268

 
13,936

 
21,204

Prepaid expenses and other assets
42,895

 
—

 
42,895

Total current assets
556,455

 
(29,504
)
 
526,951

Investments in unconsolidated affiliates
97,424

 
—

 
97,424

Property and equipment, net
114,539

 
—

 
114,539

Restricted cash, non-current
2,742

 
1,447

 
4,189

Goodwill
434,835

 
—

 
434,835

Intangible assets, net
65,178

 
1,571

 
66,749

Non-current consumer loans, net
60,750

 
17,936

 
78,686

Deferred tax asset
7,521

 
22

 
7,543

Other assets, net
29,685

 
(750
)
 
28,935

Total assets
$
1,369,129

 
$
(9,278
)
 
$
1,359,851

 
 
 
 
 
 
Liabilities and stockholders’ equity:
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Current maturities of long-term debt
$
16,737

 
$
6,779

 
$
23,516

Current capital lease obligations
533

 
—

 
533

Accounts payable and other accrued expenses
77,619

 
261

 
77,880

Other current liabilities
11,106

 
882

 
11,988

Customer layaway deposits
5,782

 
—

 
5,782

Total current liabilities
111,777

 
7,922

 
119,699

Long-term debt, less current maturities
235,289

 
11,563

 
246,852

Long-term capital lease obligations
253

 
—

 
253

Deferred gains and other long-term liabilities
22,938

 
5,586

 
28,524

Total liabilities
370,257

 
25,071

 
395,328

Commitments and contingencies
 
 


 
 
Temporary equity:
 
 

 
 
Redeemable noncontrolling interest
57,578

 
(11,753
)
 
45,825

Stockholders’ equity:
 
 

 
 
Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 56 million at December 31, 2013; issued and outstanding: 51,389,307 at December 31, 2013
513

 
—

 
513

Class B Voting Common Stock, convertible, par value $.01 per share; 3 million shares authorized; issued and outstanding: 2,970,171
30

 
—

 
30

Additional paid-in capital
321,623

 
(269
)
 
321,354

Retained earnings
622,449

 
(22,471
)
 
599,978

Accumulated other comprehensive loss
(3,321
)
 
144

 
(3,177
)
EZCORP, Inc. stockholders’ equity
941,294

 
(22,596
)
 
918,698

Total liabilities and stockholders’ equity
$
1,369,129

 
$
(9,278
)
 
$
1,359,851


EZCORP, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended December 31, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
Merchandise sales
$
105,587

 
$
—

 
$
105,587

Jewelry scrapping sales
27,703

 
—

 
27,703

Pawn service charges
64,133

 
—

 
64,133

Consumer loan fees and interest
60,117

 
(4,913
)
 
55,204

Other revenues
5,499

 
(4,370
)
 
1,129

Total revenues
263,039

 
(9,283
)
 
253,756

Merchandise cost of goods sold
63,588

 
553

 
64,141

Jewelry scrapping cost of goods sold
20,020

 
—

 
20,020

Consumer loan bad debt
15,574

 
2,614

 
18,188

Net revenues
163,857

 
(12,450
)
 
151,407

Operating expenses:
 
 
 
 
 
Operations
104,955

 
406

 
105,361

Administrative
15,745

 
(21
)
 
15,724

Depreciation
7,340

 
—

 
7,340

Amortization
1,365

 
—

 
1,365

Gain on sale or disposal of assets
(6,290
)
 
—

 
(6,290
)
Total operating expenses
123,115

 
385

 
123,500

Operating income
40,742

 
(12,835
)
 
27,907

Interest expense, net
4,334

—

520

—

4,854

Equity in net income of unconsolidated affiliates
(1,271
)
 
—

 
(1,271
)
Other income
(168
)
 
—

 
(168
)
Income from continuing operations before income taxes
37,847

 
(13,355
)
 
24,492

Income tax expense
9,958

 
(5,135
)
 
4,823

Income from continuing operations, net of tax
27,889

 
(8,220
)
 
19,669

Loss from discontinued operations, net of tax
(3,494
)
 
759

 
(2,735
)
Net income
24,395

 
(7,461
)
 
16,934

Net (loss) income from continuing operations attributable to redeemable noncontrolling interest
1,826

 
(3,622
)
 
(1,796
)
Net income attributable to EZCORP, Inc.
$
22,569

 
$
(3,839
)
 
$
18,730

 
 
 
 
 
 
Basic earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.48

 
$
(0.08
)
 
$
0.40

Discontinued operations
(0.06
)
 
0.01

 
(0.05
)
Basic earnings per share
$
0.42

 
$
(0.07
)
 
$
0.35

 
 
 
 
 
 
Diluted earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.48

 
$
(0.09
)
 
$
0.39

Discontinued operations
(0.06
)
 
0.01

 
(0.05
)
Diluted earnings per share
$
0.42



$
(0.08
)


$
0.34

 
 
 
 
 
 
Net income from continuing operations attributable to EZCORP, Inc.
$
26,063

 
$
(4,598
)
 
$
21,465

Loss from discontinued operations attributable to EZCORP, Inc.
(3,494
)
 
759

 
(2,735
)
Net income attributable to EZCORP, Inc.
$
22,569

 
$
(3,839
)
 
$
18,730


EZCORP, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 
Three Months Ended December 31, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Net income
$
24,395

 
$
(7,461
)
 
$
16,934

Other comprehensive income:
 
 
 
 
 
Foreign currency translation gain
4,716

 
(151
)
 
4,565

Loss on effective portion of cash flow hedge:
 
 
 
 
 
Unrealized loss before reclassification
(346
)
 
—

 
(346
)
Amounts reclassified from accumulated other comprehensive income
245

 
—

 
245

Amounts reclassified from accumulated other comprehensive income

(9
)
 
—

 
(9
)
Income tax expense
(894
)
 
31

 
(863
)
Other comprehensive income, net of tax
3,712

 
(120
)
 
3,592

Comprehensive income
$
28,107

 
$
(7,581
)
 
$
20,526

Attributable to redeemable noncontrolling interest:
 
 
 
 
 
Net (loss) income
1,826

 
(3,622
)
 
(1,796
)
Foreign currency translation gain
359

 
(35
)
 
324

Comprehensive (loss) income attributable to redeemable noncontrolling interest
2,185

 
(3,657
)
 
(1,472
)
Comprehensive income attributable to EZCORP, Inc.
$
25,922

 
$
(3,924
)
 
$
21,998


EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
 
Three Months Ended December 31, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Operating activities:
 
 
 
 
 
Net income
$
24,395

 
$
(7,461
)
 
$
16,934

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
9,363

 
—

 
9,363

Accretion of debt premium and consumer loan discount, net
(432
)
 
—

 
(432
)
Consumer loan loss provision
11,350

 
(119
)
 
11,231

Deferred income taxes
693

 
1

 
694

Amortization of deferred financing costs
890

 
—

 
890

Amortization of prepaid commissions
1,937

 
289

 
2,226

Other
(114
)
 
(92
)
 
(206
)
Gain on sale or disposal of assets
(6,422
)
 
—

 
(6,422
)
Gain on sale of loan portfolio
(4,543
)
 
4,543

 
—

Stock compensation expense
1,236

 
(29
)
 
1,207

Income from investments in unconsolidated affiliates
(1,271
)
 
—

 
(1,271
)
Changes in operating assets and liabilities, net of business acquisitions:
 
 
 
 
 
Service charges and fees receivable, net
(2,292
)
 
5,471

 
3,179

Inventory, net
(385
)
 
553

 
168

Receivables, prepaid expenses, other current assets and other assets, net
(17,870
)
 
—

 
(17,870
)
Accounts payable and other accrued expenses and deferred gains and other long-term liabilities
(8,022
)
 
(633
)
 
(8,655
)
Customer layaway deposits
(2,853
)
 
—

 
(2,853
)
Deferred gains and other long-term liabilities
335

 
(168
)
 
167

Tax provision from stock compensation
390

 
(390
)
 
—

Prepaid income taxes
8,472

 
(5,928
)
 
2,544

Dividends from unconsolidated affiliates
2,597

 
—

 
2,597

Net cash provided by operating activities
17,454

 
(3,963
)
—

13,491

Investing activities:
 
 
 
 
 
Loans made
(232,294
)
 
—

 
(232,294
)
Loans repaid
150,206

 
4,370

 
154,576

Recovery of pawn loan principal through sale of forfeited collateral
64,776

 
—

 
64,776

Additions to property and equipment
(5,615
)
 
—

 
(5,615
)
Acquisitions, net of cash acquired
(10,395
)
 
—

 
(10,395
)
Proceeds from sale of assets
28,980

 
(19,098
)
 
9,882

Net cash used in investing activities
(4,342
)
 
(14,728
)
 
(19,070
)
Financing activities:
 
 
 
 
 
Tax benefit of stock compensation
(389
)
 
389

 
—

Debt issuance costs
(3,080
)
 
—

 
(3,080
)
Payout of deferred and contingent consideration
(11,500
)
 
—

 
(11,500
)
Change in restricted cash
(1,263
)
 
1,417

 
154

Proceeds from revolving line of credit
80,887

 
—

 
80,887

Payments on revolving line of credit
(74,908
)
 
—

 
(74,908
)
Proceeds from borrowings
16,703

 
19,135

 
35,838

Payments on borrowings and capital lease obligations
(17,496
)
 
(793
)
 
(18,289
)
Net cash (provided by) used in financing activities
(11,046
)
 
20,148

 
9,102

Effect of exchange rate changes on cash and cash equivalents
103

 
(37
)
 
66

Net increase in cash and cash equivalents
2,169

 
1,420

 
3,589

Cash and cash equivalents at beginning of period
36,317

 
(7,217
)
 
29,100

Cash and cash equivalents at end of period
$
38,486

 
$
(5,797
)
 
$
32,689

 
 
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
 
Pawn loans forfeited and transferred to inventory
$
63,256

 
$
—

 
$
63,256

Deferred consideration
5,350

 
—

 
5,350

Contingent consideration
4,792

 
—

 
4,792

Change in accrued additions to property and equipment
122

 
—

 
122

Note receivable from sale of assets
1,000

 
—

 
1,000


EZCORP, Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
 
Common Stock
 
Additional Paid-in Capital
 
 
 
Accumulated Other Comprehensive (Loss) Income
 
EZCORP, Inc. Stockholders' Equity
 
Shares
 
Par
Value
 
 
Retained
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited, except balances as of September 30, 2013)
 
(in thousands)
 
As Previously Reported
Balances at September 30, 2013
54,240

 
$
543

 
$
320,777

 
$
599,880

 
$
(6,674
)
 
$
914,526

Stock compensation
—

 
—

 
1,236

 
—

 
—

 
1,236

Release of restricted stock
120

 
—

 
—

 
—

 
—

 
—

Tax deficiency of stock compensation
—

 
—

 
(390
)
 
—

 
—

 
(390
)
Effective portion of cash flow hedge
—

 
—

 
—

 
—

 
(101
)
 
(101
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(6
)
 
(6
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
3,460

 
3,460

Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
22,569

 
—

 
22,569

Balances at December 31, 2013
54,360

 
$
543

 
$
321,623

 
$
622,449

 
$
(3,321
)
 
$
941,294

 
 
 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
Balances at September 30, 2013
—

 
$
—

 
$
(240
)
 
$
(18,632
)
 
$
229

 
$
(18,643
)
Stock compensation
—

 
—

 
(29
)
 
—

 
—

 
(29
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(85
)
 
(85
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
(3,839
)
 
—

 
(3,839
)
Balances at December 31, 2013
—

 
$
—

 
$
(269
)
 
$
(22,471
)
 
$
144

 
$
(22,596
)
 
 
 
 
 
 
 
 
 
 
 
 
 
As Restated
Balances at September 30, 2013
54,240

 
$
543

 
$
320,537

 
$
581,248

 
$
(6,445
)
 
$
895,883

Stock compensation
—

 
—

 
1,207

 
—

 
—

 
1,207

Release of restricted stock
120

 
—

 
—

 
—

 
—

 
—

Tax deficiency of stock compensation
—

 
—

 
(390
)
 
—

 
—

 
(390
)
Effective portion of cash flow hedge
—

 
—

 
—

 
—

 
(101
)
 
(101
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(6
)
 
(6
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
3,375

 
3,375

Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
18,730

 
—

 
18,730

Balances at December 31, 2013
54,360


$
543


$
321,354


$
599,978


$
(3,177
)

$
918,698

The following tables summarize the impact of the restatement adjustments for each quarterly period within fiscal 2013.
 
Fiscal 2013
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Fiscal Year
 
December 31, 2012
 
March 31, 2013
 
June 30, 2013
 
September 30, 2013
 
September 30, 2013
 
(in thousands)
Income (loss) from continuing operations before income taxes (as previously reported)
$
51,719

 
$
55,077

 
$
27,013

 
$
(31,350
)
 
$
102,459

Asset sale impact
—

 
—

 
—

 
—

 
—

Portfolio review impact
(5,179
)
 
(6,718
)
 
(4,513
)
 
(4,941
)
 
(21,351
)
Other impacts
(2,718
)
 
76

 
103

 
1,911

 
(628
)
Net impact of adjustments
(7,897
)
 
(6,642
)
 
(4,410
)
 
(3,030
)
 
(21,979
)
Income (loss) from continuing operations before income taxes (as restated)

$
43,822

 
$
48,435

 
$
22,603

 
$
(34,380
)
 
$
80,480


 
Fourth Quarter of Fiscal 2013
 
Third Quarter of Fiscal 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
(in thousands, except per share amounts)
 
(in thousands, except per share amounts)
Results of Operations:
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
227,980

 
$
(2,923
)
 
$
228,588

 
$
226,696

 
$
(3,245
)
 
$
223,451

Net revenues
143,699

 
(3,147
)
 
140,552

 
145,773

 
(4,045
)
 
141,728

Operating expenses
124,903

 
363

 
125,266

 
119,355

 
365

 
119,720

Non-operating expense (income)
50,146

 
(480
)
 
49,666

 
(595
)
 
—

 
(595
)
(Loss) income from continuing operations before income taxes
(31,350
)
 
(3,030
)
 
(34,380
)
 
27,013

 
(4,410
)
 
22,603

Income tax (benefit) expense
(12,062
)
 
866

 
(11,196
)
 
8,956

 
(1,594
)
 
7,362

(Loss) income from continuing operations, net of tax
$
(19,288
)
 
$
(3,896
)
 
$
(23,184
)
 
$
18,057

 
$
(2,816
)
 
$
15,241

Net loss attributable to EZCORP, Inc.
$
(24,740
)
 
$
(3,303
)
 
$
(28,043
)
 
$
(5,881
)
 
$
(1,069
)
 
$
(6,950
)
Diluted loss per share attributable to EZCORP, Inc.
$
(0.46
)
 
$
(0.07
)
 
$
(0.53
)
 
$
(0.11
)
 
$
(0.02
)
 
$
(0.13
)
Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
Total current assets
$
536,950

 
$
(16,917
)
 
$
520,033

 
$
498,503

 
$
10,389

 
$
508,892

Total assets
1,352,190

 
(19,222
)
 
1,332,968

 
1,361,101

 
(15,060
)
 
1,346,041

Total current liabilities
141,901

 
1,772

 
143,673

 
133,570

 
4,028

 
137,598

Total liabilities
382,271

 
7,517

 
389,788

 
364,764

 
7,442

 
372,206

Total temporary equity
55,393

 
(8,096
)
 
47,297

 
56,837

 
(7,072
)
 
49,765

EZCORP, Inc. stockholders’ equity
914,526

 
(18,643
)
 
895,883

 
939,500

 
(15,430
)
 
924,070

Cash Flow Data (year-to-date):
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
126,473

 
$
(6,006
)
 
$
120,467

 
$
99,415

 
$
(7,477
)
 
$
91,938

Net cash used in investing activities
(160,384
)
 
5,184

 
(155,200
)
 
(108,850
)
 
6,887

 
(101,963
)
Net cash provided by financing activities
22,213

 
1,436

 
23,649

 
7,669

 
(9,791
)
 
(2,122
)
Net decrease in cash and cash equivalents
(12,160
)
 
$
1,436

 
(10,724
)
 
(2,522
)
 
$
(9,791
)
 
(12,313
)
 
Second Quarter of Fiscal 2013
 
First Quarter of Fiscal 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
(in thousands, except per share amounts)
 
(in thousands, except per share amounts)
Results of Operations:
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
259,963

 
$
(3,073
)
 
$
256,890

 
$
265,482

 
$
(4,243
)
 
$
261,239

Net revenues
166,143

 
(6,601
)
 
159,542

 
169,089

 
(7,987
)
 
161,102

Operating expenses
111,032

 
41

 
111,073

 
119,272

 
(90
)
 
119,182

Non-operating expense (income)
34

 
—

 
34

 
(1,902
)
 
—

 
(1,902
)
Income from continuing operations before income taxes
55,077

 
(6,642
)
 
48,435

 
51,719

 
(7,897
)
 
43,822

Income tax expense
16,072

 
(307
)
 
15,765

 
16,616

 
(2,349
)
 
14,267

Income from continuing operations, net of tax
$
39,005

 
$
(6,335
)
 
$
32,670

 
$
35,103

 
$
(5,548
)
 
$
29,555

Net income attributable to EZCORP, Inc.
$
33,981

 
$
(3,753
)
 
$
30,228

 
$
30,717

 
$
(3,644
)
 
$
27,073

Diluted earnings per share attributable to EZCORP, Inc.
$
0.63

 
$
(0.06
)
 
$
0.57

 
$
0.59

 
$
(0.07
)
 
$
0.52

Balance Sheet Data:
 
 
 
 
 
 
 
 
 
 
 
Total current assets
$
454,251

 
$
4,896

 
$
459,147

 
$
501,952

 
$
(183
)
 
$
501,769

Total assets
1,319,199

 
(17,691
)
 
1,301,508

 
1,342,306

 
(12,418
)
 
1,329,888

Total current liabilities
143,030

 
(225
)
 
142,805

 
130,233

 
(1,517
)
 
128,716

Total liabilities
311,030

 
3,548

 
314,578

 
380,816

 
2,507

 
383,323

Total temporary equity
52,982

 
(6,309
)
 
46,673

 
49,323

 
(4,167
)
 
45,156

EZCORP, Inc. stockholders’ equity
955,187

 
(14,930
)
 
940,257

 
912,167

 
(10,758
)
 
901,409

Cash Flow Data (year-to-date):
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
94,168

 
$
(2,672
)
 
$
91,496

 
$
30,508

 
$
3,691

 
$
34,199

Net cash used in investing activities
(49,825
)
 
3,641

 
(46,184
)
 
(47,755
)
 
(2,109
)
 
(49,864
)
Net cash (used in) provided by financing activities
(51,742
)
 
3,425

 
(48,317
)
 
15,622

 
3,456

 
19,078

Net decrease in cash and cash equivalents
(7,034
)
 
3,425

 
(3,609
)
 
(1,809
)
 
5,198

 
3,389

The effects of the restatement on our unaudited condensed consolidated financial statements as of and for the quarter ended June 30, 2013 (the third quarter of fiscal 2013) are set forth below.
EZCORP, Inc.
CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share amounts)
 
June 30, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
Assets:
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
45,955

 
$
(18,444
)
 
$
27,511

Restricted cash
3,132

 
17,193

 
20,325

Pawn loans
154,095

 
—

 
154,095

Consumer loans, net
42,883

 
11,393

 
54,276

Pawn service charges receivable, net
28,590

 
—

 
28,590

Consumer loan fees and interest receivable, net
35,315

 
(13,133
)
 
22,182

Inventory, net
122,503

 
—

 
122,503

Deferred tax asset
15,716

 
1,472

 
17,188

Prepaid income taxes
12,937

 
7,908

 
20,845

Prepaid expenses and other assets
37,377

 
4,000

 
41,377

Total current assets
498,503

 
10,389

 
508,892

Investments in unconsolidated affiliates
146,707

 
(1,362
)
 
145,345

Property and equipment, net
110,312

 
—

 
110,312

Restricted cash, non-current
2,182

 
1,250

 
3,432

Goodwill
430,940

 
—

 
430,940

Intangible assets, net
60,687

 
—

 
60,687

Non-current consumer loans, net
82,935

 
(25,022
)
 
57,913

Other assets, net
28,835

 
(315
)
 
28,520

Total assets
$
1,361,101

 
$
(15,060
)
 
$
1,346,041

 
 
 
 
 
 
Liabilities and stockholders’ equity:
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Current maturities of long-term debt
$
33,525

 
$
—

 
$
33,525

Current capital lease obligations
533

 
—

 
533

Accounts payable and other accrued expenses
68,960

 
4,028

 
72,988

Other current liabilities
22,640

 
—

 
22,640

Customer layaway deposits
7,912

 
—

 
7,912

Total current liabilities
133,570

 
4,028

 
137,598

Long-term debt, less current maturities
198,374

 
—

 
198,374

Long-term capital lease obligations
521

 
—

 
521

Deferred tax liability
8,948

 
—

 
8,948

Deferred gains and other long-term liabilities
23,351

 
3,414

 
26,765

Total liabilities
364,764

 
7,442

 
372,206

Commitments and contingencies
 
 
 
 
 
Temporary equity:
 
 
 
 
 
Redeemable noncontrolling interest
56,837

 
(7,072
)
 
49,765

Stockholders’ equity:
 
 
 
 
 
Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 54 million at June 30, 2013; issued and outstanding: 51,230,843 at June 30, 2013
512

 
—

 
512

Class B Voting Common Stock, convertible, par value $.01 per share; 3 million shares authorized; issued and outstanding: 2,970,171
30

 
—

 
30

Additional paid-in capital
317,258

 
(209
)
 
317,049

Retained earnings
624,620

 
(15,329
)
 
609,291

Accumulated other comprehensive loss
(2,920
)
 
108

 
(2,812
)
EZCORP, Inc. stockholders’ equity
939,500

 
(15,430
)
 
924,070

Total liabilities and stockholders’ equity
$
1,361,101

 
$
(15,060
)
 
$
1,346,041

EZCORP, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended June 30, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
Merchandise sales
$
86,576

 
$
—

 
$
86,576

Jewelry scrapping sales
26,288

 
—

 
26,288

Pawn service charges
60,397

 
—

 
60,397

Consumer loan fees and interest
51,450

 
(3,545
)
 
47,905

Other revenues
1,985

 
300

 
2,285

Total revenues
226,696

 
(3,245
)
—

223,451

Merchandise cost of goods sold
51,050

 
—

 
51,050

Jewelry scrapping cost of goods sold
20,377

 
—

 
20,377

Consumer loan bad debt
9,496

 
800

 
10,296

Net revenues
145,773

 
(4,045
)
—

141,728

Operating expenses:
 
 
 
 
 
Operations
98,320

 
378

 
98,698

Administrative
12,644

 
(13
)
 
12,631

Depreciation
7,251

 
—

 
7,251

Amortization
962

 
—

 
962

Loss on sale or disposal of assets
178

 
—

 
178

Total operating expenses
119,355

 
365

—

119,720

Operating income
26,418

 
(4,410
)
 
22,008

Interest expense, net
3,637

—

—

—

3,637

Equity in net income of unconsolidated affiliates
(4,328
)
 
—

 
(4,328
)
Other loss
96

 
—

 
96

Income from continuing operations before income taxes
27,013

 
(4,410
)
—

22,603

Income tax expense
8,956

 
(1,594
)
 
7,362

Income from continuing operations, net of tax
18,057

 
(2,816
)
—

15,241

Loss from discontinued operations, net of tax
(22,897
)
 
608

 
(22,289
)
Net loss
(4,840
)
 
(2,208
)
 
(7,048
)
Net (loss) income from continuing operations attributable to redeemable noncontrolling interest
996

 
(1,148
)
 
(152
)
Net income from discontinued operations attributable to redeemable noncontrolling interest
45

 
9

 
54

Net loss attributable to EZCORP, Inc.
$
(5,881
)
 
$
(1,069
)
 
$
(6,950
)
 
 
 
 
 
 
Basic (loss) earnings per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.31

 
$
(0.03
)
 
$
0.28

Discontinued operations
(0.42
)
 
0.01

 
(0.41
)
Basic loss per share
$
(0.11
)
 
$
(0.02
)
 
$
(0.13
)
 
 
 
 
 
 
Diluted (loss) earnings per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.31

 
$
(0.03
)
 
$
0.28

Discontinued operations
(0.42
)
 
0.01

 
(0.41
)
Diluted (loss) earnings per share
$
(0.11
)
 
$
(0.02
)
 
$
(0.13
)
 
 
 
 
 
 
Net income from continuing operations attributable to EZCORP, Inc.
$
17,061

 
$
(1,668
)
 
$
15,393

Loss from discontinued operations attributable to EZCORP, Inc.
(22,942
)
 
599

 
(22,343
)
Net loss attributable to EZCORP, Inc.
$
(5,881
)
 
$
(1,069
)
 
$
(6,950
)
EZCORP, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
 
Three Months Ended June 30, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Net loss
$
(4,840
)
 
$
(2,208
)
 
$
(7,048
)
Other comprehensive loss:
 
 
 
 
 
Foreign currency translation loss
(15,529
)
 
2,494

 
(13,035
)
Loss on effective portion of cash flow hedge:
 
 
 
 
 
Unrealized gain before reclassification
2,388

 
—

 
2,388

Amounts reclassified from accumulated other comprehensive income
(1,888
)
 
—

 
(1,888
)
Unrealized holding loss arising during period
(1,457
)
 
—

 
(1,457
)
Income tax benefit
1,189

 
(823
)
 
366

Other comprehensive loss, net of tax
(15,297
)
 
1,671

 
(13,626
)
Comprehensive loss
$
(20,137
)
 
$
(537
)
 
$
(20,674
)
Attributable to redeemable noncontrolling interest:
 
 
 
 
 
Net (loss) income
1,041

 
(1,139
)
 
(98
)
Foreign currency translation loss
(3,321
)
 
376

 
(2,945
)
Comprehensive loss attributable to redeemable noncontrolling interest
(2,280
)
 
(763
)
 
(3,043
)
Comprehensive loss attributable to EZCORP, Inc.
$
(17,857
)
 
$
226

 
$
(17,631
)
EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
 
Nine Months Ended June 30, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Operating activities:
 
 
 
 
 
Net income
$
62,195

 
$
(13,005
)
 
$
49,190

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
25,732

 
—

 
25,732

Accretion of debt premium and consumer loan discount, net
—

 
(9,978
)
 
(9,978
)
Consumer loan loss provision
19,982

 
2,209

 
22,191

Deferred income taxes
245

 
(1
)
 
244

Amortization of deferred financing costs
—

 
2,344

 
2,344

Amortization of prepaid commissions
—

 
2,902

 
2,902

Other
73

 
7,472

 
7,545

Loss on sale or disposal of assets
6,060

 
—

 
6,060

Stock compensation expense
5,202

 
(156
)
 
5,046

Income from investments in unconsolidated affiliates
(13,491
)
 
—

 
(13,491
)
Changes in operating assets and liabilities, net of business acquisitions:
 
 
 
 
 
Service charges and fees receivable, net
(4,203
)
 
6,507

 
2,304

Inventory, net
(51
)
 
—

 
(51
)
Receivables, prepaid expenses, other current assets and other assets, net
(13,119
)
 
(6,657
)
 
(19,776
)
Accounts payable and other accrued expenses
7,330

 
6,775

 
14,105

Customer layaway deposits
588

 
—

 
588

Deferred gains and other long-term liabilities
439

 
(109
)
 
330

Tax benefit from stock compensation
(321
)
 
—

 
(321
)
Prepaid income taxes
(5,664
)
 
(5,780
)
 
(11,444
)
Dividends from unconsolidated affiliates
8,418

 
—

 
8,418

Net cash provided by operating activities
99,415

 
(7,477
)
 
91,938

Investing activities:
 
 
 
 
 
Loans made
(682,184
)
 
—

 
(682,184
)
Loans repaid
451,182

 
6,887

 
458,069

Recovery of pawn loan principal through sale of forfeited collateral
181,461

 
—

 
181,461

Additions to property and equipment
(33,351
)
 
—

 
(33,351
)
Acquisitions, net of cash acquired
(14,940
)
 
—

 
(14,940
)
Investments in unconsolidated affiliates
(11,018
)
 
—

 
(11,018
)
Net cash used in investing activities
(108,850
)
 
6,887

 
(101,963
)
Financing activities:
 
 
 
 
 
Proceeds from exercise of stock options
45

 
—

 
45

Tax provision from stock compensation
321

 
—

 
321

Taxes paid related to net share settlement of equity awards
(3,596
)
 
—

 
(3,596
)
Change in restricted cash
96

 
(9,791
)
 
(9,695
)
Proceeds from revolving line of credit
403,131

 
—

 
403,131

Payments on revolving line of credit
(385,964
)
 
—

 
(385,964
)
Proceeds from borrowings
21,637

 
—

 
21,637

Payments on borrowings and capital lease obligations
(28,001
)
 
—

 
(28,001
)
Net cash provided by financing activities
7,669

 
(9,791
)
 
(2,122
)
Effect of exchange rate changes on cash and cash equivalents
(756
)
 
590

 
(166
)
Net increase in cash and cash equivalents
(2,522
)
 
(9,791
)
 
(12,313
)
Cash and cash equivalents at beginning of period
48,477

 
(8,653
)
 
39,824

Cash and cash equivalents at end of period
$
45,955

 
$
(18,444
)
 
$
27,511

 
 
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
 
Pawn loans forfeited and transferred to inventory
$
192,150

 
$
—

 
$
192,150

Issuance of common stock due to acquisitions
38,705

 
—

 
38,705

Deferred consideration
25,872

 
—

 
25,872

Contingent consideration
7,148

 
—

 
7,148

Change in accrued additions to property and equipment
107

 
—

 
107

EZCORP, Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
 
Common Stock
 
Additional Paid-in Capital
 
 
 
Accumulated Other Comprehensive (Loss) Income
 
EZCORP, Inc. Stockholders' Equity
 
Shares
 
Par
Value
 
 
Retained
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited, except balances as of September 30, 2012)
 
(in thousands)
 
As Previously Reported
Balances at September 30, 2012
51,226

 
$
512

 
$
268,626

 
$
565,803

 
$
(113
)
 
$
834,828

Stock compensation
—

 
—

 
5,202

 
—

 
—

 
5,202

Stock options exercised
18

 
—

 
45

 
—

 
—

 
45

Issuance of common stock due to acquisitions
1,965

 
20

 
38,685

 
—

 
—

 
38,705

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
592

 
6

 
10,398

 
—

 
—

 
10,404

Purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(2,423
)
 
—

 
85

 
(2,338
)
Release of restricted stock
400

 
4

 
—

 
—

 
—

 
4

Tax benefit of stock compensation
—

 
—

 
321

 
—

 
—

 
321

Taxes paid related to net share settlement of equity awards
—

 
—

 
(3,596
)
 
—

 
—

 
(3,596
)
Effective portion of cash flow hedge
—

 
—

 
—

 
—

 
500

 
500

Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(1,120
)
 
(1,120
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(2,272
)
 
(2,272
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
58,817

 
—

 
58,817

Balances at June 30, 2013
54,201

 
$
542

 
$
317,258

 
$
624,620

 
$
(2,920
)
 
$
939,500

 
 
 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
Balances at September 30, 2012
—

 
$
—

 
$
(54
)
 
$
(6,863
)
 
$
(120
)
 
(7,037
)
Stock compensation
—

 
—

 
(155
)
 
—

 
—

 
(155
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
228

 
228

Net income (loss) attributable to EZCORP, Inc.
—

 
—

 
—

 
(8,466
)
 
—

 
(8,466
)
Balances at June 30, 2013
—

 
$
—

 
$
(209
)
 
$
(15,329
)
 
$
108

 
$
(15,430
)
 
 
 
 
 
 
 
 
 
 
 
 
 
As Restated
Balances at September 30, 2012
51,226

 
$
512

 
$
268,572

 
$
558,940

 
$
(233
)
 
$
827,791

Stock compensation
—

 
—

 
5,047

 
—

 
—

 
5,047

Stock options exercised
18

 
—

 
45

 
—

 
—

 
45

Issuance of common stock due to acquisitions
1,965

 
20

 
38,685

 
—

 
—

 
38,705

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
592

 
6

 
10,398

 
—

 
—

 
10,404

Purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(2,423
)
 
—

 
85

 
(2,338
)
Release of restricted stock
400

 
4

 
—

 
—

 
—

 
4

Tax benefit of stock compensation
—

 
—

 
321

 
—

 
—

 
321

Taxes paid related to net share settlement of equity awards
—

 
—

 
(3,596
)
 
—

 
—

 
(3,596
)
Effective portion of cash flow hedge
—

 
—

 
—

 
—

 
500

 
500

Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(1,120
)
 
(1,120
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(2,044
)
 
(2,044
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
50,351

 
—

 
50,351

Balances at June 30, 2013
54,201


$
542


$
317,049


$
609,291


$
(2,812
)

$
924,070

The effects of the restatement on our unaudited condensed consolidated financial statements as of and for the quarter ended March 31, 2013 (the second quarter of fiscal 2013) are set forth below.
EZCORP, Inc.
CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share amounts)
 
March 31, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
Assets:
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
41,443

 
$
(5,228
)
 
$
36,215

Restricted cash
1,204

 
4,244

 
5,448

Pawn loans
138,380

 
—

 
138,380

Consumer loans, net
36,596

 
12,549

 
49,145

Pawn service charges receivable, net
25,388

 
—

 
25,388

Consumer loan fees and interest receivable, net
33,507

 
(14,227
)
 
19,280

Inventory, net
116,517

 
—

 
116,517

Deferred tax asset
15,716

 
1,472

 
17,188

Prepaid income taxes
3,079

 
6,086

 
9,165

Prepaid expenses and other assets
42,421

 
—

 
42,421

Total current assets
454,251

 
4,896

 
459,147

Investments in unconsolidated affiliates
147,232

 
(1,362
)
 
145,870

Property and equipment, net
118,979

 
—

 
118,979

Restricted cash, non-current
2,197

 
983

 
3,180

Goodwill
438,016

 
—

 
438,016

Intangible assets, net
60,387

 
—

 
60,387

Non-current consumer loans, net
77,414

 
(22,038
)
 
55,376

Other assets, net
20,723

 
(170
)
 
20,553

Total assets
$
1,319,199

 
$
(17,691
)
 
$
1,301,508

 
 
 
 
 
 
Liabilities and stockholders’ equity:
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Current maturities of long-term debt
$
34,912

 
$
—

 
$
34,912

Current capital lease obligations
533

 
—

 
533

Accounts payable and other accrued expenses
63,298

 
(225
)
 
63,073

Other current liabilities
36,096

 
—

 
36,096

Customer layaway deposits
8,191

 
—

 
8,191

Total current liabilities
143,030

 
(225
)
 
142,805

Long-term debt, less current maturities
137,376

 
—

 
137,376

Long-term capital lease obligations
648

 
—

 
648

Deferred tax liability
10,104

 
—

 
10,104

Deferred gains and other long-term liabilities
19,872

 
3,773

 
23,645

Total liabilities
311,030

 
3,548

 
314,578

Commitments and contingencies
 
 
 
 
 
Temporary equity:
 
 
 
 
 
Redeemable noncontrolling interest
52,982

 
(6,309
)
 
46,673

Stockholders’ equity:
 
 
 
 
 
Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 54 million at March 31, 2013; issued and outstanding: 51,208,328 at March 31, 2013
508

 
—

 
508

Class B Voting Common Stock, convertible, par value $.01 per share; 3 million shares authorized; issued and outstanding: 2,970,171
30

 
—

 
30

Additional paid-in capital
315,092

 
(193
)
 
314,899

Retained earnings
630,501

 
(14,260
)
 
616,241

Accumulated other comprehensive income
9,056

 
(477
)
 
8,579

EZCORP, Inc. stockholders’ equity
955,187

 
(14,930
)
 
940,257

Total liabilities and stockholders’ equity
$
1,319,199

 
$
(17,691
)
 
$
1,301,508

EZCORP, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended March 31, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
Merchandise sales
$
100,082

 
$
—

 
$
100,082

Jewelry scrapping sales
42,582

 
—

 
42,582

Pawn service charges
62,015

 
—

 
62,015

Consumer loan fees and interest
53,180

 
(2,702
)
 
50,478

Other revenues
2,104

 
(371
)
 
1,733

Total revenues
259,963

 
(3,073
)
 
256,890

Merchandise cost of goods sold
58,716

 
—

 
58,716

Jewelry scrapping cost of goods sold
29,311

 
—

 
29,311

Consumer loan bad debt
5,793

 
3,528

 
9,321

Net revenues
166,143

 
(6,601
)
 
159,542

Operating expenses:
 
 
 
 
 
Operations
94,779

 
50

 
94,829

Administrative
8,603

 
(9
)
 
8,594

Depreciation
6,950

 
—

 
6,950

Amortization
687

 
—

 
687

Loss on sale or disposal of assets
13

 
—

 
13

Total operating expenses
111,032

 
41

 
111,073

Operating income
55,111

 
(6,642
)
 
48,469

Interest expense, net
3,754

—

—

—

3,754

Equity in net income of unconsolidated affiliates
(4,125
)
 
—

 
(4,125
)
Other loss
405

 
—

 
405

Income from continuing operations before income taxes
55,077

 
(6,642
)
 
48,435

Income tax expense
16,072

 
(307
)
 
15,765

Income from continuing operations, net of tax
39,005

 
(6,335
)
 
32,670

Loss from discontinued operations, net of tax
(4,125
)
 
700

 
(3,425
)
Net income
34,880

 
(5,635
)
 
29,245

Net (loss) income from continuing operations attributable to redeemable noncontrolling interest
897

 
(1,892
)
 
(995
)
Net income from discontinued operations attributable to redeemable noncontrolling interest
2

 
10

 
12

Net income attributable to EZCORP, Inc.
$
33,981

 
$
(3,753
)
 
$
30,228

 
 
 
 
 
 
Basic earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.71

 
$
(0.08
)
 
$
0.63

Discontinued operations
(0.08
)
 
0.02

 
(0.06
)
Basic earnings (loss) per share
$
0.63

 
$
(0.06
)
 
$
0.57

 
 
 
 
 
 
Diluted earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.71

 
$
(0.08
)
 
$
0.63

Discontinued operations
(0.08
)
 
0.02

 
(0.06
)
Diluted earnings (loss) per share
$
0.63

 
$
(0.06
)
 
$
0.57

 
 
 
 
 
 
Net income from continuing operations attributable to EZCORP, Inc.
$
38,108

 
$
(4,443
)
 
$
33,665

Loss from discontinued operations attributable to EZCORP, Inc.
(4,127
)
 
690

 
(3,437
)
Net income attributable to EZCORP, Inc.
$
33,981

 
$
(3,753
)
 
$
30,228

EZCORP, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 
Three Months Ended March 31, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Net income
$
34,880

 
$
(5,635
)
 
$
29,245

Other comprehensive income:
 
 
 
 
 
Foreign currency translation gain
11,111

 
(2,054
)
 
9,057

Loss on effective portion of cash flow hedge:
 
 
 
 
 
Unrealized holding loss arising during period
(221
)
 
—

 
(221
)
Income tax benefit
(1,057
)
 
678

 
(379
)
Other comprehensive income, net of tax
9,833

 
(1,376
)
 
8,457

Comprehensive income
$
44,713

 
$
(7,011
)
 
$
37,702

Attributable to redeemable noncontrolling interest:
 
 
 
 
 
Net income (loss)
899

 
(1,882
)
 
(983
)
Foreign currency translation gain
2,760

 
(260
)
 
2,500

Comprehensive income attributable to redeemable noncontrolling interest
3,659

 
(2,142
)
 
1,517

Comprehensive income attributable to EZCORP, Inc.
$
41,054

 
$
(4,869
)
 
$
36,185

EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
 
Six Months Ended March 31, 2013
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Operating activities:
 
 
 
 
 
Net income
$
67,035

 
$
(10,797
)
 
$
56,238

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
—

Depreciation and amortization
16,415

 
—

 
16,415

Accretion of debt premium and consumer loan discount, net
—

 
(9,297
)
 
(9,297
)
Consumer loan loss provision
12,900

 
1,820

 
14,720

Deferred income taxes
1,400

 
(1
)
 
1,399

Amortization of deferred financing costs
—

 
1,524

 
1,524

Amortization of prepaid commissions
—

 
1,464

 
1,464

Other
—

 
7,992

 
7,992

Gain on sale or disposal of assets
42

 
—

 
42

Stock compensation expense
3,054

 
(139
)
 
2,915

Income from investments in unconsolidated affiliates
(9,163
)
 
—

 
(9,163
)
Changes in operating assets and liabilities, net of business acquisitions:
 
 
 
 
 
Service charges and fees receivable, net
2,366

 
7,340

 
9,706

Inventory, net
(3,034
)
 
—

 
(3,034
)
Receivables, prepaid expenses, other current assets and other assets, net
(7,072
)
 
(1,363
)
 
(8,435
)
Accounts payable and other accrued expenses
(2,743
)
 
2,536

 
(207
)
Customer layaway deposits
812

 
—

 
812

Deferred gains and other long-term liabilities
350

 
207

 
557

Tax benefit from stock compensation
(342
)
 
—

 
(342
)
Income taxes receivable / payable
7,320

 
(3,958
)
 
3,362

Dividends from unconsolidated affiliates
4,828

 
—

 
4,828

Net cash provided by operating activities
94,168

 
(2,672
)
 
91,496

Investing activities:
 
 
 
 
 
Loans made
(440,917
)
 
—

 
(440,917
)
Loans repaid
307,930

 
3,641

 
311,571

Recovery of pawn loan principal through sale of forfeited collateral
129,965

 
—

 
129,965

Additions to property and equipment
(23,506
)
 
—

 
(23,506
)
Acquisitions, net of cash acquired
(12,279
)
 
—

 
(12,279
)
Investments in unconsolidated affiliates
(11,018
)
 
—

 
(11,018
)
Net cash used in investing activities
(49,825
)
 
3,641

 
(46,184
)
Financing activities:
 
 
 
 
 
Proceeds from exercise of stock options
6

 
—

 
6

Tax provision from stock compensation
342

 
—

 
342

Taxes paid related to net share settlement of equity awards
(3,596
)
 
—

 
(3,596
)
Debt issuance costs
(259
)
 
—

 
(259
)
Change in restricted cash
2,303

 
3,425

 
5,728

Proceeds from revolving line of credit
148,265

 
—

 
148,265

Payments on revolving line of credit
(194,805
)
 
—

 
(194,805
)
Proceeds from borrowings
1,172

 
—

 
1,172

Payments on borrowings and capital lease obligations
(5,170
)
 
—

 
(5,170
)
Net cash used in financing activities
(51,742
)
 
3,425

 
(48,317
)
Effect of exchange rate changes on cash and cash equivalents
365

 
(969
)
 
(604
)
Net increase in cash and cash equivalents
(7,034
)
 
3,425

 
(3,609
)
Cash and cash equivalents at beginning of period
48,477

 
(8,653
)
 
39,824

Cash and cash equivalents at end of period
$
41,443

 
$
(5,228
)
 
$
36,215

 
 
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
 
Pawn loans forfeited and transferred to inventory
$
130,675

 
$
—

 
$
130,675

Issuance of common stock due to acquisitions
38,705

 
—

 
38,705

Deferred consideration
24,000

 
—

 
24,000

Contingent consideration
4,792

 
—

 
4,792

EZCORP, Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
 
Common Stock
 
Additional Paid-in Capital
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
EZCORP, Inc. Stockholders' Equity
 
Shares
 
Par
Value
 
 
Retained
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited, except balances as of September 30, 2012)
 
(in thousands)
 
As Previously Reported
Balances at September 30, 2012
51,226

 
$
512

 
$
268,626

 
$
565,803

 
$
(113
)
 
834,828

Stock compensation
—

 
—

 
3,054

 
—

 
—

 
3,054

Stock options exercised
3

 
—

 
6

 
—

 
—

 
6

Issuance of common stock due to acquisitions
1,965

 
20

 
38,685

 
—

 
—

 
38,705

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
592

 
6

 
10,398

 
—

 
—

 
10,404

Purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(2,423
)
 
—

 
85

 
(2,338
)
Release of restricted stock
392

 
—

 
—

 
—

 
—

 
—

Tax benefit of stock compensation
—

 
—

 
342

 
—

 
—

 
342

Taxes paid related to net share settlement of equity awards
—

 
—

 
(3,596
)
 
—

 
—

 
(3,596
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(172
)
 
(172
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
9,256

 
9,256

Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
64,698

 
—

 
64,698

Balances at March 31, 2013
54,178

 
$
538

 
$
315,092

 
$
630,501

 
$
9,056

 
$
955,187

 
 
 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
Balances at September 30, 2012
—

 
$
—

 
$
(54
)
 
$
(6,863
)
 
$
(120
)
 
(7,037
)
Stock compensation
—

 
—

 
(139
)
 
—

 
—

 
(139
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(357
)
 
(357
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
(7,397
)
 
—

 
(7,397
)
Balances at March 31, 2013
—

 
$
—

 
$
(193
)
 
$
(14,260
)
 
$
(477
)
 
$
(14,930
)
 
 
 
 
 
 
 
 
 
 
 
 
 
As Restated
Balances at September 30, 2012
51,226

 
$
512

 
$
268,572

 
$
558,940

 
$
(233
)
 
$
827,791

Stock compensation
—

 
—

 
2,915

 
—

 
—

 
2,915

Stock options exercised
3

 
—

 
6

 
—

 
—

 
6

Issuance of common stock due to acquisitions
1,965

 
20

 
38,685

 
—

 
—

 
38,705

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
592

 
6

 
10,398

 
—

 
—

 
10,404

Purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(2,423
)
 
—

 
85

 
(2,338
)
Release of restricted stock
392

 
—

 
—

 
—

 
—

 
—

Tax benefit of stock compensation
—

 
—

 
342

 
—

 
—

 
342

Taxes paid related to net share settlement of equity awards
—

 
—

 
(3,596
)
 
—

 
—

 
(3,596
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(172
)
 
(172
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
8,899

 
8,899

Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
57,301

 
—

 
57,301

Balances at March 31, 2013
54,178


$
538


$
314,899


$
616,241


$
8,579


$
940,257

The effects of the restatement on our unaudited condensed consolidated financial statements as of and for the quarter December 31, 2012 (the first quarter of fiscal 2013) are set forth below.
EZCORP, Inc.
CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share amounts)
 
December 31, 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
Assets:
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
46,668

 
$
(3,455
)
 
$
43,213

Restricted cash
1,133

 
692

 
1,825

Pawn loans
162,150

 
—

 
162,150

Consumer loans, net
40,470

 
11,003

 
51,473

Pawn service charges receivable, net
31,077

 
—

 
31,077

Consumer loan fees and interest receivable, net
34,073

 
(14,067
)
 
20,006

Inventory, net
120,271

 
—

 
120,271

Deferred tax asset
15,716

 
1,472

 
17,188

Prepaid income taxes
—

 
4,172

 
4,172

Prepaid expenses and other assets
50,394

 
—

 
50,394

Total current assets
501,952

 
(183
)
 
501,769

Investments in unconsolidated affiliates
144,232

 
(1,362
)
 
142,870

Property and equipment, net
114,082

 
—

 
114,082

Restricted cash, non-current
1,994

 
2,764

 
4,758

Goodwill
434,671

 
—

 
434,671

Intangible assets, net
59,562

 
—

 
59,562

Non-current consumer loans, net
66,615

 
(13,531
)
 
53,084

Other assets, net
19,198

 
(106
)
 
19,092

Total assets
$
1,342,306

 
$
(12,418
)
 
$
1,329,888

 
 
 
 
 
 
Liabilities and stockholders’ equity:
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Current maturities of long-term debt
$
27,562

 
$
—

 
$
27,562

Current capital lease obligations
533

 
—

 
533

Accounts payable and other accrued expenses
70,829

 
(858
)
 
69,971

Other current liabilities
24,396

 
—

 
24,396

Customer layaway deposits
6,254

 
—

 
6,254

Income taxes payable
659

 
(659
)
 
—

Total current liabilities
130,233

 
(1,517
)
 
128,716

Long-term debt, less current maturities
207,978

 
—

 
207,978

Long-term capital lease obligations
771

 
—

 
771

Deferred tax liability
10,815

 
—

 
10,815

Deferred gains and other long-term liabilities
31,019

 
4,024

 
35,043

Total liabilities
380,816

 
2,507

 
383,323

Commitments and contingencies
 
 
 
 
 
Temporary equity:
 
 
 
 
 
Redeemable noncontrolling interest
49,323

 
(4,167
)
 
45,156

Stockholders’ equity:
 
 
—

 
 
Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 56 million at December 31, 2012; issued and outstanding: 51,196,870 at December 31, 2012
508

 
—

 
508

Class B Voting Common Stock, convertible, par value $.01 per share; 3 million shares authorized; issued and outstanding: 2,970,171
30

 
—

 
30

Additional paid-in capital
313,126

 
(180
)
 
312,946

Retained earnings
596,520

 
(10,507
)
 
586,013

Accumulated other comprehensive income
1,983

 
(71
)
 
1,912

EZCORP, Inc. stockholders’ equity
912,167

 
(10,758
)
 
901,409

Total liabilities and stockholders’ equity
$
1,342,306

 
$
(12,418
)
 
$
1,329,888

EZCORP, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended December 31, 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
Merchandise sales
$
94,604

 
$
—

 
$
94,604

Jewelry scrapping sales
44,709

 
—

 
44,709

Pawn service charges
65,400

 
—

 
65,400

Consumer loan fees and interest
56,063

 
(1,865
)
 
54,198

Other revenues
4,706

 
(2,378
)
 
2,328

Total revenues
265,482

 
(4,243
)
—

261,239

Merchandise cost of goods sold
54,945

 
—

 
54,945

Jewelry scrapping cost of goods sold
31,305

 
—

 
31,305

Consumer loan bad debt
10,143

 
3,744

 
13,887

Net revenues
169,089

 
(7,987
)
 
161,102

Operating expenses:
 
 
 
 
 
Operations
98,419

 
1

 
98,420

Administrative
13,671

 
(91
)
 
13,580

Depreciation
6,465

 
—

 
6,465

Amortization
688

 
—

 
688

Loss on sale or disposal of assets
29

 
—

 
29

Total operating expenses
119,272

 
(90
)
 
119,182

Operating income
49,817

 
(7,897
)
 
41,920

Interest expense, net
3,637

—

—

—

3,637

Equity in net income of unconsolidated affiliates
(5,038
)
 
—

 
(5,038
)
Other income
(501
)
 
—

 
(501
)
Income from continuing operations before income taxes
51,719

 
(7,897
)
 
43,822

Income tax expense
16,616

 
(2,349
)
 
14,267

Income from continuing operations, net of tax
35,103

 
(5,548
)
 
29,555

Loss from discontinued operations, net of tax
(2,948
)
 
386

 
(2,562
)
Net income
32,155

 
(5,162
)
 
26,993

Net income from continuing operations attributable to redeemable noncontrolling interest
1,547

 
(1,521
)
 
26

Loss from discontinued operations attributable to redeemable noncontrolling interest
(109
)
 
3

 
(106
)
Net income attributable to EZCORP, Inc.
$
30,717

 
$
(3,644
)
 
$
27,073

 
 
 
 
 
 
Basic earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.64

 
$
(0.07
)
 
$
0.57

Discontinued operations
(0.05
)
 
—

 
(0.05
)
Basic earnings per share
$
0.59

 
$
(0.07
)
 
$
0.52

 
 
 
 
 
 
Diluted earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.64

 
$
(0.07
)
 
$
0.57

Discontinued operations
(0.05
)
 
—

 
(0.05
)
Diluted earnings per share
$
0.59

 
$
(0.07
)
 
$
0.52

 
 
 
 
 
 
Net income from continuing operations attributable to EZCORP, Inc.
$
33,556

 
$
(4,027
)
 
$
29,529

Loss from discontinued operations attributable to EZCORP, Inc.
(2,839
)
 
383

 
(2,456
)
Net income attributable to EZCORP, Inc.
$
30,717

 
$
(3,644
)
 
$
27,073

EZCORP, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 
Three Months Ended December 31, 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Net income
$
32,155

 
$
(5,162
)
 
$
26,993

Other comprehensive income:
 
 
 
 
 
Foreign currency translation gain
3,468

 
124

 
3,592

Loss on effective portion of cash flow hedge:
 
 
 
 
 
Amounts reclassified from accumulated other comprehensive income

(43
)
 
—

 
(43
)
Income tax expense
(1,980
)
 
(41
)
 
(2,021
)
Other comprehensive income, net of tax
1,445

 
83

 
1,528

Comprehensive income
$
33,600

 
$
(5,079
)
 
$
28,521

Attributable to redeemable noncontrolling interest:
 
 
 
 
 
Net (loss) income
1,438

 
(1,518
)
 
(80
)
Foreign currency translation loss
(651
)
 
34

 
(617
)
Comprehensive (loss) income attributable to redeemable noncontrolling interest
787

 
(1,484
)
 
(697
)
Comprehensive income attributable to EZCORP, Inc.
$
32,813

 
$
(3,595
)
 
$
29,218

EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
 
Three Months Ended December 31, 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Operating activities:
 
 
 
 
 
Net income
$
32,155

 
$
(5,162
)
 
$
26,993

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
7,652

 
—

 
7,652

Accretion of debt premium and consumer loan discount, net
—

 
(8,627
)
 
(8,627
)
Consumer loan loss provision
7,990

 
130

 
8,120

Deferred income taxes
2,214

 
(1
)
 
2,213

Amortization of deferred financing costs
—

 
764

 
764

Amortization of prepaid commissions
—

 
649

 
649

Other
—

 
8,087

 
8,087

Loss on sale or disposal of assets
29

 
—

 
29

Stock compensation expense
925

 
(126
)
 
799

Income from investments in unconsolidated affiliates
(5,038
)
 
—

 
(5,038
)
Changes in operating assets and liabilities, net of business acquisitions:
 
 

 
 
Service charges and fees receivable, net
(5,192
)
 
7,428

 
2,236

Inventory, net
(11,908
)
 
—

 
(11,908
)
Receivables, prepaid expenses, other current assets and other assets, net
(17,727
)
 
(616
)
 
(18,343
)
Accounts payable and other accrued expenses
9,323

 
1,891

 
11,214

Customer layaway deposits
(1,077
)
 
—

 
(1,077
)
Deferred gains and other long-term liabilities
83

 
490

 
573

Tax benefit from stock compensation
(346
)
 
—

 
(346
)
Prepaid income taxes
9,830

 
(1,216
)
 
8,614

Dividends from unconsolidated affiliates
1,595

 
—

 
1,595

Net cash provided by operating activities
30,508

 
3,691

 
34,199

Investing activities:
 
 
 
 
 
Loans made
(231,067
)
 
—

 
(231,067
)
Loans repaid
142,250

 
(2,109
)
 
140,141

Recovery of pawn loan principal through sale of forfeited collateral
73,264

 
—

 
73,264

Additions to property and equipment
(8,906
)
 
—

 
(8,906
)
Acquisitions, net of cash acquired
(12,278
)
 
—

 
(12,278
)
Investments in unconsolidated affiliates
(11,018
)
 
—

 
(11,018
)
Net cash used in investing activities
(47,755
)
 
(2,109
)
 
(49,864
)
Financing activities:
 
 
 
 
 
Tax provision from stock compensation
346

 
—

 
346

Taxes paid related to net share settlement of equity awards
(3,431
)
 
—

 
(3,431
)
Change in restricted cash
2,298

 
3,456

 
5,754

Proceeds from revolving line of credit
80,125

 
—

 
80,125

Payments on revolving line of credit
(61,852
)
 
—

 
(61,852
)
Proceeds from borrowings
1,159

 
—

 
1,159

Payments on borrowings and capital lease obligations
(3,023
)
 
—

 
(3,023
)
Net cash provided by financing activities
15,622

 
3,456

 
19,078

Effect of exchange rate changes on cash and cash equivalents
(184
)
 
160

 
(24
)
Net increase in cash and cash equivalents
(1,809
)
 
5,198

 
3,389

Cash and cash equivalents at beginning of period
48,477

 
(8,653
)
 
39,824

Cash and cash equivalents at end of period
$
46,668

 
$
(3,455
)
 
$
43,213

 
 
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
 
Pawn loans forfeited and transferred to inventory
$
69,370

 
$
—

 
$
69,370

EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
Issuance of common stock due to acquisitions
38,647

 
—

 
38,647

Deferred consideration
24,000

 
—

 
24,000

Contingent consideration
4,792

 
—

 
4,792

Stock issued for additional investment in subsidiary
7,981

 
—

 
7,981

Change in accrued additions to property and equipment
2,100

 
—

 
2,100


EZCORP, Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
 
Common Stock
 
Additional Paid-in Capital
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
EZCORP, Inc. Stockholders' Equity
 
Shares
 
Par
Value
 
 
Retained
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited, except balances as of September 30, 2012)
 
(in thousands)
 
As Previously Reported
Balances at September 30, 2012
51,226

 
$
512

 
$
268,626

 
$
565,803

 
$
(113
)
 
$
834,828

Stock compensation
—

 
—

 
925

 
—

 
—

 
925

Issuance of common stock due to acquisitions
1,965

 
20

 
38,685

 
—

 
—

 
38,705

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
592

 
6

 
10,398

 
—

 
—

 
10,404

Purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(2,423
)
 
—

 
85

 
(2,338
)
Release of restricted stock
384

 
—

 
—

 
—

 
—

 
—

Tax benefit of stock compensation
—

 
—

 
346

 
—

 
—

 
346

Taxes paid related to net share settlement of equity awards
—

 
—

 
(3,431
)
 
—

 
—

 
(3,431
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(28
)
 
(28
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
2,039

 
2,039

Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
30,717

 
—

 
30,717

Balances at December 31, 2012
54,167

 
$
538

 
$
313,126

 
$
596,520

 
$
1,983

 
$
912,167

 
 
 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
Balances at September 30, 2012
—

 
$
—

 
$
(54
)
 
$
(6,863
)
 
$
(120
)
 
$
(7,037
)
Stock compensation
—

 
—

 
(126
)
 
—

 
—

 
(126
)
Issuance of common stock due to acquisitions
—

 
—

 
—

 
—

 
—

 
—

Foreign currency translation adjustment
—

 
—

 
—

 
—

 
49

 
49

Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
(3,644
)
 
—

 
(3,644
)
Balances at December 31, 2012
—

 
$
—

 
$
(180
)
 
$
(10,507
)
 
$
(71
)
 
$
(10,758
)
 
 
 
 
 
 
 
 
 
 
 
 
 
As Restated
Balances at September 30, 2012
51,226

 
$
512

 
$
268,572

 
$
558,940

 
$
(233
)
 
$
827,791

Stock compensation
—

 
—

 
799

 
—

 
—

 
799

Issuance of common stock due to acquisitions
1,965

 
20

 
38,685

 
—

 
—

 
38,705

Issuance of common stock due to purchase of subsidiary shares from noncontrolling interest
592

 
6

 
10,398

 
—

 
—

 
10,404

Purchase of subsidiary shares from noncontrolling interest
—

 
—

 
(2,423
)
 
—

 
85

 
(2,338
)
Release of restricted stock
384

 
—

 
—

 
—

 
—

 
—

Tax benefit of stock compensation
—

 
—

 
346

 
—

 
—

 
346

Taxes paid related to net share settlement of equity awards
—

 
—

 
(3,431
)
 
—

 
—

 
(3,431
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(28
)
 
(28
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
2,088

 
2,088

Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
27,073

 
—

 
27,073

Balances at December 31, 2012
54,167

 
$
538

 
$
312,946

 
$
586,013

 
$
1,912

 
$
901,409

Year Ended September 30, 2012 (Fiscal 2012)
The following tables summarize the impact of the restatement adjustments for each quarterly period within fiscal 2012.
 
Fiscal 2012
 
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Fiscal Year
 
December 31, 2011
 
March 31, 2012
 
June 30, 2012
 
September 30, 2012
 
September 30, 2012
 
(in thousands)
Income from continuing operations before income taxes (as previously reported)
$
61,054

 
$
58,106

 
$
43,938

 
$
63,987

 
$
227,085

Asset sale impact
—

 
—

 
—

 
—

 
—

Portfolio review impact
—

 
(3,258
)
 
(1,993
)
 
(3,435
)
 
(8,686
)
Other impacts
—

 
—

 
—

 
(4,280
)
 
(4,280
)
Net impact of adjustments
—

 
(3,258
)
 
(1,993
)
 
(7,715
)
 
(12,966
)
Income from continuing operations before income taxes (as restated)
$
61,054

 
$
54,848

 
$
41,945

 
$
56,272

 
$
214,119

 
Fourth Quarter of Fiscal 2012
 
Third Quarter of Fiscal 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
(in thousands, except per share amounts)
 
(in thousands, except per share amounts)
Results of Operations:
 
 
 
 
 
 
 
 
 
 
 
Total revenues
$
247,959

 
$
385

 
$
248,344

 
$
220,670

 
$
(2,068
)
 
$
218,602

Net revenues
157,194

 
(6,386
)
 
150,808

 
140,282

 
(1,977
)
 
138,305

Operating expenses
103,970

 
(33
)
 
103,937

 
99,160

 
16

 
99,176

Non-operating income
(10,763
)
 
1,362

 
(9,401
)
 
(2,816
)
 
—

 
(2,816
)
Income from continuing operations before income taxes
63,987

 
(7,715
)
 
56,272

 
43,938

 
(1,993
)
 
41,945

Income tax expense
18,501

 
(2,311
)
 
16,190

 
12,717

 
960

 
13,677

Income from continuing operations, net of tax
$
45,486

 
$
(5,405
)
 
$
40,081

 
$
31,221

 
$
(2,953
)
 
$
28,268

Net income attributable to EZCORP, Inc.
$
38,572

 
$
(4,347
)
 
$
34,225

 
$
28,523

 
$
(2,694
)
 
$
25,829

Diluted earnings per share attributable to EZCORP, Inc.
$
0.75

 
$
(0.08
)
 
$
0.67

 
$
0.56

 
$
(0.06
)
 
$
0.50

Cash Flow Data (year-to-date):
 
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
140,917

 
$
(1,802
)
 
$
139,115

 
$
109,692

 
$
(5,115
)
 
$
104,577

Net cash used in investing activities
(216,765
)
 
2,002

 
(214,763
)
 
(167,590
)
 
4,926

 
(162,664
)
Net cash provided by financing activities
99,266

 
(8,653
)
 
90,613

 
84,404

 
(9,593
)
 
74,811

Net increase in cash and cash equivalents
24,508

 
(8,653
)
 
15,855

 
26,805

 
(9,593
)
 
17,212

 
Second Quarter of Fiscal 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
(in thousands, except per share amounts)
Results of Operations:
 
 
 
 
 
Total revenues
$
251,338

 
$
(2,102
)
 
$
249,236

Net revenues
158,512

 
(3,224
)
 
155,288

Operating expenses
101,935

 
34

 
101,969

Non-operating income
(1,529
)
 
—

 
(1,529
)
Income from continuing operations before income taxes
58,106

 
(3,258
)
 
54,848

Income tax expense
19,862

 
(2,149
)
 
17,713

Income from continuing operations, net of tax
$
38,244

 
$
(1,109
)
 
$
37,135

Net income attributable to EZCORP, Inc.
$
37,261

 
$
178

 
$
37,439

Diluted income per share attributable to EZCORP, Inc.
$
0.73

 
$
—

 
$
0.73

Cash Flow Data (year-to-date):
 
 
 
 
 
Net cash provided by operating activities
$
95,094

 
$
(472
)
 
$
94,622

Net cash used in investing activities
(74,446
)
 
456

 
(73,990
)
Net cash (used in) provided by financing activities
2,483

 
(11,006
)
 
(8,523
)
Net increase in cash and cash equivalents
22,705

 
(11,006
)
 
11,699

The effects of the restatement on our unaudited condensed consolidated financial statements as of and for the quarter ended June 30, 2012 (the third quarter of fiscal 2012) are set forth below.
EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended June 30, 2012
 
As Previously Reported
 
Effect of Restatement
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
Merchandise sales
$
75,286

 
$
—

 
$
75,286

Jewelry scrapping sales
40,530

 
—

 
40,530

Pawn service charges
55,656

 
—

 
55,656

Consumer loan fees and interest
47,877

 
(2,068
)
 
45,809

Other revenues
1,321

 
—

 
1,321

Total revenues
220,670

 
(2,068
)
 
218,602

Merchandise cost of goods sold
43,842

 
—

 
43,842

Jewelry scrapping cost of goods sold
27,115

 
—

 
27,115

Consumer loan bad debt
9,431

 
(91
)
 
9,340

Net revenues
140,282

 
(1,977
)
 
138,305

Operating expenses:
 
 
 
 
 
Operations
82,252

 
16

 
82,268

Administrative
9,857

 
—

 
9,857

Depreciation
5,755

 
—

 
5,755

Amortization
1,206

 
—

 
1,206

Loss on sale or disposal of assets
90

 
—

 
90

Total operating expenses
99,160

 
16

 
99,176

Operating income
41,122

 
(1,993
)
 
39,129

Interest expense, net
898

—

—

—

898

Equity in net income of unconsolidated affiliates
(4,197
)
 
—

 
(4,197
)
Other loss
483

 
—

 
483

Income from continuing operations before income taxes
43,938

 
(1,993
)
 
41,945

Income tax expense
12,717

 
960

 
13,677

Income from continuing operations, net of tax
31,221

 
(2,953
)
 
28,268

Loss from discontinued operations, net of tax
(1,510
)
 
—

 
(1,510
)
Net income
29,711

 
(2,953
)
 
26,758

Net income from continuing operations attributable to redeemable noncontrolling interest
1,169

 
(259
)
 
910

Net income from discontinued operations attributable to redeemable noncontrolling interest
19

 
—

 
19

Net income attributable to EZCORP, Inc.
$
28,523

 
$
(2,694
)
 
$
25,829

 
 
 
 
 
 
Basic earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.59

 
$
(0.06
)
 
$
0.53

Discontinued operations
(0.03
)
 
—

 
(0.03
)
Basic earnings per share
$
0.56

 
$
(0.06
)
 
$
0.50

 
 
 
 
 
 
Diluted earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.59

 
$
(0.06
)
 
$
0.53

Discontinued operations
(0.03
)
 
—

 
(0.03
)
Diluted earnings per share
$
0.56

 
$
(0.06
)
 
$
0.50

 
 
 
 
 
 
Net income from continuing operations attributable to EZCORP, Inc.
$
30,052

 
$
(2,694
)
 
$
27,358

Loss from discontinued operations attributable to EZCORP, Inc.
(1,529
)
 
—

 
(1,529
)
Net income attributable to EZCORP, Inc.
$
28,523

 
$
(2,694
)
 
$
25,829

EZCORP, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 
Three Months Ended June 30, 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Net income
$
29,711

 
$
(2,953
)
 
$
26,758

Other comprehensive income:
 
 
 
 
 
Foreign currency translation loss
(8,513
)
 
191

 
(8,322
)
Loss on effective portion of cash flow hedge:
 
 
 
 
 
Amounts reclassified from accumulated other comprehensive income
(108
)
 
—

 
(108
)
Income tax expense
(948
)
 
—

 
(948
)
Other comprehensive loss, net of tax
(9,569
)
 
191

 
(9,378
)
Comprehensive income
$
20,142

 
$
(2,762
)
 
$
17,380

Attributable to redeemable noncontrolling interest:
 
 
 
 
 
Net income
1,188

 
(259
)
 
929

Foreign currency translation loss
(2,789
)
 
76

 
(2,713
)
Comprehensive loss attributable to redeemable noncontrolling interest
(1,601
)
 
(183
)
 
(1,784
)
Comprehensive income attributable to EZCORP, Inc.
$
21,743

 
$
(2,579
)
 
$
19,164

EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
 
Nine Months Ended June 30, 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Operating activities:
 
 
 
 
 
Net income
$
106,436

 
$
(4,062
)
 
$
102,374

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
19,891

 
—

 
19,891

Accretion of debt premium and consumer loan discount, net
—

 
(3,324
)
 
(3,324
)
Consumer loan loss provision
12,136

 
1,906

 
14,042

Deferred income taxes
(644
)
 
—

 
(644
)
Amortization of prepaid commissions
—

 
2,886

 
2,886

Other
—

 
3,324

 
3,324

Loss on sale or disposal of assets
138

 
—

 
138

Stock compensation expense
5,191

 
—

 
5,191

Income from investments in unconsolidated affiliates
(12,935
)
 
—

 
(12,935
)
Changes in operating assets and liabilities, net of business acquisitions:
 
 
 
 
 
Service charges and fees receivable, net
1,150

 
(1,818
)
 
(668
)
Inventory, net
(874
)
 
—

 
(874
)
Receivables, prepaid expenses, other current assets and other assets, net
(4,845
)
 
(2,838
)
 
(7,683
)
Accounts payable and other accrued expenses
(12,100
)
 
—

 
(12,100
)
Customer layaway deposits
(182
)
 
—

 
(182
)
Deferred gains and other long-term liabilities
722

 
—

 
722

Tax benefit from stock compensation
(1,582
)
 
—

 
(1,582
)
Income taxes receivable/payable
(8,370
)
 
(1,189
)
 
(9,559
)
Dividends from unconsolidated affiliates
5,560

 
—

 
5,560

Net cash provided by operating activities
109,692

 
(5,115
)
 
104,577

Investing activities:
 
 
 
 
 
Loans made
(571,683
)
 
—

 
(571,683
)
Loans repaid
382,854

 
4,926

 
387,780

Recovery of pawn loan principal through sale of forfeited collateral
179,681

 
—

 
179,681

Additions to property and equipment
(33,193
)
 
—

 
(33,193
)
Acquisitions, net of cash acquired
(125,249
)
 
—

 
(125,249
)
Net cash used in investing activities
(167,590
)
 
4,926

 
(162,664
)
Financing activities:
 
 
 
 
 
Proceeds from exercise of stock options
647

 
—

 
647

Tax provision from stock compensation
1,582

 
—

 
1,582

Taxes paid related to net share settlement of equity awards
(1,153
)
 
—

 
(1,153
)
Change in restricted cash
(1,085
)
 
(9,593
)
 
(10,678
)
Proceeds from revolving line of credit
594,809

 
—

 
594,809

Payments on revolving line of credit
(502,575
)
 
—

 
(502,575
)
Proceeds from borrowings
343

 
—

 
343

Payments on borrowings and capital lease obligations
(8,164
)
 
—

 
(8,164
)
Net cash provided by financing activities
84,404

 
(9,593
)
 
74,811

Effect of exchange rate changes on cash and cash equivalents
299

 
189

 
488

Net increase in cash and cash equivalents
26,805

 
(9,593
)
 
17,212

Cash and cash equivalents at beginning of period
23,969

 
—

 
23,969

Cash and cash equivalents at end of period
$
50,774

 
$
(9,593
)
 
$
41,181

 
 
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
 
Pawn loans forfeited and transferred to inventory
$
177,490

 
$
—

 
$
177,490

Issuance of common stock due to acquisitions
17,984

 
—

 
17,984

Deferred consideration
916

 
—

 
916

Contingent consideration
23,000

 
—

 
23,000

Change in accrued additions to property and equipment
177

 
—

 
177

EZCORP, Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
 
Common Stock
 
Additional Paid-in Capital
 
 
 
Accumulated Other Comprehensive (Loss) Income
 
EZCORP, Inc. Stockholders' Equity
 
Shares
 
Par
Value
 
 
Retained
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited, except balances as of September 30, 2011)
 
(in thousands)
 
As Previously Reported
Balances at September 30, 2011
50,199

 
$
501

 
$
242,398

 
$
422,095

 
$
(746
)
 
$
664,248

Stock compensation
—

 
—

 
5,191

 
—

 
—

 
5,191

Stock options exercised
201

 
2

 
645

 
—

 
—

 
647

Issuance of common stock due to acquisitions
635

 
7

 
17,992

 
—

 
—

 
17,999

Release of restricted stock
159

 
2

 
—

 
—

 
—

 
2

Tax benefit of stock compensation
—

 
—

 
1,580

 
—

 
—

 
1,580

Taxes paid related to net share settlement of equity awards
—

 
—

 
(1,153
)
 
—

 
—

 
(1,153
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(550
)
 
(550
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(7,327
)
 
(7,327
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
105,136

 
—

 
105,136

Balances at June 30, 2012
51,194

 
$
512

 
$
266,653

 
$
527,231

 
$
(8,623
)
 
$
785,773

 
 
 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
Balances at September 30, 2011
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Foreign currency translation adjustment
—

 
—

 
—

 
—

 
124

 
124

Net income (loss) attributable to EZCORP, Inc.
—

 
—

 
—

 
(2,516
)
 
—

 
(2,516
)
Balances at June 30, 2012
—

 
$
—

 
$
—

 
$
(2,516
)
 
$
124

 
$
(2,392
)
 
 
 
 
 
 
 
 
 
 
 
 
 
As Restated
Balances at September 30, 2011
50,199

 
$
501

 
$
242,398

 
$
422,095

 
$
(746
)
 
$
664,248

Stock compensation
—

 
—

 
5,191

 
—

 
—

 
5,191

Stock options exercised
201

 
2

 
645

 
—

 
—

 
647

Issuance of common stock due to acquisitions
635

 
7

 
17,992

 
—

 
—

 
17,999

Release of restricted stock
159

 
2

 
—

 
—

 
—

 
2

Tax benefit of stock compensation
—

 
—

 
1,580

 
—

 
—

 
1,580

Taxes paid related to net share settlement of equity awards
—

 
—

 
(1,153
)
 
—

 
—

 
(1,153
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(550
)
 
(550
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(7,203
)
 
(7,203
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
102,620

 
—

 
102,620

Balances at June 30, 2012
51,194

 
$
512

 
$
266,653

 
$
524,715

 
$
(8,499
)
 
$
783,381

The effects of the restatement on our unaudited condensed consolidated financial statements as of and for the quarter ended March 31, 2012 (the second quarter of fiscal 2012) are set forth below.
EZCORP, Inc.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
 
Three Months Ended March 31, 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands, except per share amounts)
Revenues:
 
 
 
 
 
Merchandise sales
$
94,495

 
$
—

 
$
94,495

Jewelry scrapping sales
51,672

 
—

 
51,672

Pawn service charges
55,925

 
—

 
55,925

Consumer loan fees and interest
48,427

 
(2,102
)
 
46,325

Other revenues
819

 
—

 
819

Total revenues
251,338

 
(2,102
)
 
249,236

Merchandise cost of goods sold
55,594

 
—

 
55,594

Jewelry scrapping cost of goods sold
31,233

 
—

 
31,233

Consumer loan bad debt
5,999

 
1,122

 
7,121

Net revenues
158,512

 
(3,224
)
 
155,288

Operating expenses:
 
 
 
 
 
Operations
83,011

 
34

 
83,045

Administrative
11,998

 
—

 
11,998

Depreciation
5,220

 
—

 
5,220

Amortization
1,692

 
—

 
1,692

Loss gain on sale or disposal of assets
14

 
—

 
14

Total operating expenses
101,935

 
34

 
101,969

Operating income
56,577

 
(3,258
)
 
53,319

Interest expense, net
2,246

—

—

 
2,246

Equity in net income of unconsolidated affiliates
(4,577
)
 
—

 
(4,577
)
Other loss
802

 
—

 
802

Income from continuing operations before income taxes
58,106

 
(3,258
)
 
54,848

Income tax expense
19,862

 
(2,149
)
 
17,713

Income from continuing operations, net of tax
38,244

 
(1,109
)
 
37,135

Loss from discontinued operations, net of tax
(871
)
 
—

 
(871
)
Net income
37,373

 
(1,109
)
 
36,264

Net (loss) income from continuing operations attributable to redeemable noncontrolling interest
112

 
(1,287
)
 
(1,175
)
Net income attributable to EZCORP, Inc.
$
37,261

 
$
178

 
$
37,439

 
 
 
 
 
 
Basic earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.75

 
$
—

 
$
0.75

Discontinued operations
(0.02
)
 
—

 
(0.02
)
Basic earnings per share
$
0.73

 
$
—

 
$
0.73

 
 
 
 
 
 
Diluted earnings (loss) per share attributable to EZCORP, Inc.:
 
 
 
 
 
Continuing operations
$
0.75

 
$
—

 
$
0.75

Discontinued operations
(0.02
)
 
—

 
(0.02
)
Diluted earnings per share
$
0.73

 
$
—

 
$
0.73

 
 
 
 
 
 
Net income from continuing operations attributable to EZCORP, Inc.
$
38,132

 
$
178

 
$
38,310

Loss from discontinued operations attributable to EZCORP, Inc.
(871
)
 
—

 
(871
)
Net income attributable to EZCORP, Inc.
$
37,261

 
$
178

 
$
37,439

EZCORP, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
 
Three Months Ended March 31, 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Net income
$
37,373

 
$
(1,109
)
 
$
36,264

Other comprehensive income:
 
 
 
 
 
Foreign currency translation gain
6,394

 
16

 
6,410

Loss on effective portion of cash flow hedge:
 
 
 
 
 
Amounts reclassified from accumulated other comprehensive income
(179
)
 
—

 
(179
)
Income tax expense
(75
)
 
—

 
(75
)
Other comprehensive income, net of tax
6,140

 
16

 
6,156

Comprehensive income
$
43,513

 
$
(1,093
)
 
$
42,420

Attributable to redeemable noncontrolling interest:
 
 
 
 
 
Net (loss) income
112

 
(1,287
)
 
(1,175
)
Foreign currency translation gain
496

 
7

 
503

Comprehensive (loss) income attributable to redeemable noncontrolling interest
608

 
(1,280
)
 
(672
)
Comprehensive income attributable to EZCORP, Inc.
$
42,905

 
$
187

 
$
43,092

EZCORP, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS
 
Six Months Ended March 31, 2012
 
As Previously Reported
 
Restatement Adjustments
 
As Restated
 
 
 
 
 
 
 
(Unaudited)
 
(in thousands)
Operating activities:
 
 
 
 
 
Net income
$
76,725

 
$
(1,109
)
 
$
75,616

Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
 
Depreciation and amortization
12,514

 
—

 
12,514

Accretion of debt premium and consumer loan discount, net
—

 
(1,612
)
 
(1,612
)
Consumer loan loss provision
6,761

 
1,267

 
8,028

Deferred income taxes
465

 
—

 
465

Amortization of prepaid commissions
—

 
1,399

 
1,399

Other
—

 
1,612

 
1,612

Gain on sale or disposal of assets
(174
)
 
—

 
(174
)
Stock compensation expense
3,238

 
—

 
3,238

Income from investments in unconsolidated affiliates
(8,738
)
 
—

 
(8,738
)
Changes in operating assets and liabilities, net of business acquisitions:
 
 
 
 
 
Service charges and fees receivable, net
6,551

 
1,486

 
8,037

Inventory, net
1,446

 
—

 
1,446

Receivables, prepaid expenses, other current assets and other assets, net
2,644

 
(1,366
)
 
1,278

Accounts payable and other accrued expenses
(18,718
)
 
—

 
(18,718
)
Customer layaway deposits
206

 
—

 
206

Deferred gains and other long-term liabilities
10,856

 
—

 
10,856

Tax benefit from stock compensation
(1,521
)
 
—

 
(1,521
)
Income taxes receivable / payable
(1,949
)
 
(2,149
)
 
(4,098
)
Dividends from unconsolidated affiliates
4,788

 
—

 
4,788

Net cash provided by operating activities
95,094

 
(472
)
 
94,622

Investing activities:
 
 
 
 
 
Loans made
(360,354
)
 
—

 
(360,354
)
Loans repaid
260,289

 
456

 
260,745

Recovery of pawn loan principal through sale of forfeited collateral
129,518

 
—

 
129,518

Additions to property and equipment
(20,842
)
 
—

 
(20,842
)
Acquisitions, net of cash acquired
(83,057
)
 
—

 
(83,057
)
Net cash used in investing activities
(74,446
)
 
456

 
(73,990
)
Financing activities:
 
 
 
 
 
Proceeds from exercise of stock options
634

 
—

 
634

Tax provision from stock compensation
1,521

 
—

 
1,521

Taxes paid related to net share settlement of equity awards
(1,071
)
 
—

 
(1,071
)
Change in restricted cash
(935
)
 
(11,006
)
 
(11,941
)
Proceeds from revolving line of credit
321,617

 
—

 
321,617

Payments on revolving line of credit
(318,227
)
 
—

 
(318,227
)
Payments on borrowings and capital lease obligations
(1,056
)
 
—

 
(1,056
)
Net cash (used in) provided by financing activities
2,483

 
(11,006
)
 
(8,523
)
Effect of exchange rate changes on cash and cash equivalents
(426
)
 
16

 
(410
)
Net increase in cash and cash equivalents
22,705

 
(11,006
)
 
11,699

Cash and cash equivalents at beginning of period
23,969

 
—

 
23,969

Cash and cash equivalents at end of period
$
46,674

 
$
(11,006
)
 
$
35,668

 
 
 
 
 
 
Non-cash investing and financing activities:
 
 
 
 
 
Pawn loans forfeited and transferred to inventory
$
123,587

 
$
—

 
$
123,587

Issuance of common stock due to acquisitions
11,615

 
—

 
11,615

Deferred consideration
5,785

 
—

 
5,785

Contingent consideration
23,000

 
—

 
23,000

Change in accrued additions to property and equipment
1,404

 
—

 
1,404

EZCORP, Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
 
Common Stock
 
Additional Paid-in Capital
 
 
 
Accumulated Other Comprehensive (Loss) Income
 
EZCORP, Inc. Stockholders' Equity
 
Shares
 
Par
Value
 
 
Retained
Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Unaudited, except balances as of September 30, 2011)
 
(in thousands)
 
As Previously Reported
Balances at September 30, 2011
50,199

 
$
501

 
$
242,398

 
$
422,095

 
$
(746
)
 
$
664,248

Stock compensation
—

 
—

 
3,238

 
—

 
—

 
3,238

Stock options exercised
196

 
2

 
632

 
—

 
—

 
634

Issuance of common stock due to acquisitions
427

 
5

 
11,625

 
—

 
—

 
11,630

Release of restricted stock
150

 
2

 
—

 
—

 
—

 
2

Tax benefit of stock compensation
—

 
—

 
1,521

 
—

 
—

 
1,521

Taxes paid related to net share settlement of equity awards
—

 
—

 
(1,071
)
 
—

 
—

 
(1,071
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(480
)
 
(480
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(617
)
 
(617
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
76,613

 
—

 
76,613

Balances at March 31, 2012
50,972

 
$
510

 
$
258,343

 
$
498,708

 
$
(1,843
)
 
$
755,718

 
 
 
 
 
 
 
 
 
 
 
 
 
Restatement Adjustments
Balances at September 30, 2011
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Foreign currency translation adjustment
—

 
—

 
—

 
—

 
9

 
9

Net income (loss) attributable to EZCORP, Inc.
—

 
—

 
—

 
178

 
—

 
178

Balances at March 31, 2012
—

 
$
—

 
$
—

 
$
178

 
$
9

 
$
187

 
 
 
 
 
 
 
 
 
 
 
 
 
As Restated
Balances at September 30, 2011
50,199

 
$
501

 
$
242,398

 
$
422,095

 
$
(746
)
 
$
664,248

Stock compensation
—

 
—

 
3,238

 
—

 
—

 
3,238

Stock options exercised
196

 
2

 
632

 
—

 
—

 
634

Issuance of common stock due to acquisitions
427

 
5

 
11,625

 
—

 
—

 
11,630

Release of restricted stock
150

 
2

 
—

 
—

 
—

 
2

Tax benefit of stock compensation
—

 
—

 
1,521

 
—

 
—

 
1,521

Taxes paid related to net share settlement of equity awards
—

 
—

 
(1,071
)
 
—

 
—

 
(1,071
)
Unrealized loss on available-for-sale securities
—

 
—

 
—

 
—

 
(480
)
 
(480
)
Foreign currency translation adjustment
—

 
—

 
—

 
—

 
(608
)
 
(608
)
Net income attributable to EZCORP, Inc.
—

 
—

 
—

 
76,791

 
—

 
76,791

Balances at March 31, 2012
50,972

 
$
510

 
$
258,343

 
$
498,886

 
$
(1,834
)
 
$
755,905