NOTE 2: CORRECTIONS AND REVISIONS TO PRIOR PERIOD FINANCIAL STATEMENTS

Subsequent to the issuance of our Annual Report on Form 10-K for the fiscal year ended September 30, 2015, we identified errors in our historical financial statements, including the years ended September 30, 2015 and 2014. These prior year errors were identified as part of the current year remediation efforts associated with the income tax control deficiency described in our fiscal 2015 Annual Report. The errors identified relate primarily to the deferred tax balances associated with equity method investments, stock compensation, foreign acquisitions, true up of tax receivable accounts and the recognition of liabilities for uncertain tax positions. These errors resulted in an overstatement of October 1, 2013 and 2014 beginning retained earnings of $16.8 million and $19.8 million, respectively and an understatement of October 1, 2013 and 2014 beginning accumulated other comprehensive loss of nil and $0.1 million, respectively. There were no net changes to consolidated cash flows from operating, investing or financing activities for fiscal 2015 and 2014, however, revisions were made between net loss, deferred income taxes and income taxes receivable. The prior period amounts within the consolidated financial statements for the years ended September 30, 2015 and 2014 have been corrected.

In addition, certain reclassifications of prior period amounts have been made to conform to the current period presentation. These reclassifications, other than those pertaining to discontinued operations discussed in Note 3 and the adoption of FASB ASUs discussed in Note 1, primarily include the following, and are labeled “Other” in the tables below:


•	Reclassification of "Consumer loans, net" and "Consumer loan fees and interest receivable, net," exclusive of Grupo Finmart amounts presented in Note 3, which are solely attributable to our Other International segment, to "Prepaid expenses and other current assets" to conform to current period presentation.


•	Reclassification of "Consumer loan fees and interest," exclusive of Grupo Finmart amounts presented in Note 3, which are solely attributable to our Other International segment, to "Other revenues" to conform to current period presentation.


•	Reclassification of “Consumer loan bad debt,” exclusive of Grupo Finmart amounts presented in Note 3, which are solely attributable to our Other International segment, to "Other cost of revenues" to conform to current period presentation.


•	Reclassification of "Other current liabilities" to "Accounts payable, accrued expenses and other current liabilities" as of September 30, 2015 to conform to current period presentation.


•	Reclassification of other immaterial items to conform to current period presentation.

The following tables show the impact of the foregoing.

EZCORP, Inc. CONSOLIDATED BALANCE SHEET (in thousands, except share and per share amounts)

	September 30, 2015
	As Previously Reported			Corrections of Errors			Discontinued Operations			Other			As Corrected and Reclassified

Assets:
Current assets:
Cash and cash equivalents	$	59,124		$	—		$	(2,880	)	$	—		$	56,244
Restricted cash	15,137			—			(14,993		)	(144		)	—
Pawn loans	159,964			—			—			—			159,964
Consumer loans, net	36,533			—			(31,824		)	(4,709		)	—
Pawn service charges receivable, net	30,852			—			—			—			30,852
Consumer loan fees and interest receivable, net	19,802			—			(19,105		)	(697		)	—
Inventory, net	124,084			—			—			—			124,084
Deferred tax asset, net	44,134			—			—			(44,134		)	—
Prepaid income taxes	7,945			(7,945		)	—			—			—
Income taxes receivable	37,230			7,499			(2,498		)	—			42,231
Current assets held for sale	—			—			72,849			—			72,849
Prepaid expenses and other current assets	21,076			—			(1,549		)	5,550			25,077
Total current assets	555,881			(446		)	—			(44,134		)	511,301
Investment in unconsolidated affiliate	56,182			—			—			—			56,182
Property and equipment, net	75,594			—			(1,656		)	—			73,938
Restricted cash, non-current	2,883			—			(2,883		)	—			—
Goodwill	327,460			3,319			(79,133		)	—			251,646
Intangible assets, net	50,434			—			(10,485		)	(9,171		)	30,778
Non-current consumer loans, net	75,824			—			(75,824		)	—			—
Deferred tax asset, net	24,987			(16,942		)	(18,003		)	44,134			34,176
Non-current assets held for sale	—			—			217,233			—			217,233
Other assets, net	42,985			—			(29,249		)	—			13,736
Total assets	$	1,212,230		$	(14,069	)	$	—		$	(9,171	)	$	1,188,990

Liabilities, temporary equity and equity:
Current liabilities:
Current maturities of long-term debt	$	74,345		$	—		$	(74,345	)	$	—		$	—
Accounts payable, accrued expenses and other current liabilities	107,871			(396		)	(12,984		)	15,384			109,875
Current liabilities held for sale	—			—			87,329			—			87,329
Other current liabilities	15,384			—			—			(15,384		)	—
Customer layaway deposits	10,470			—			—			—			10,470
Total current liabilities	208,070			(396		)	—			—			207,674
Long-term debt, net	306,337			—			(99,190		)	(9,171		)	197,976
Non-current liabilities held for sale	—			—			101,644			—			101,644
Deferred gains and other long-term liabilities	6,157			6,226			(2,454		)	—			9,929
Total liabilities	520,564			5,830			—			(9,171		)	517,223
Commitments and contingencies
Temporary equity:
Class A Non-voting Common Stock, subject to possible redemption at $10.06 per share; 1,168,456 shares issued and outstanding at redemption value as of September 30, 2015	11,696			—			—			—			11,696
Redeemable noncontrolling interest	3,235			805			—			—			4,040
Total temporary equity	14,931			805			—			—			15,736
Stockholders’ equity:
Class A Non-voting Common Stock, par value $.01 per share; shares authorized: 100 million as of September 30, 2015; issued and outstanding: 50,726,289 as of September 30, 2015	507			—			—			—			507
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	307,080			2,958			—			—			310,038
Retained earnings	423,137			(22,585		)	—			—			400,552
Accumulated other comprehensive loss	(54,019		)	(1,077		)	—			—			(55,096		)
EZCORP, Inc. stockholders’ equity	676,735			(20,704		)	—			—			656,031
Total liabilities, temporary equity and equity	$	1,212,230		$	(14,069	)	$	—		$	(9,171	)	$	1,188,990

EZCORP, Inc. CONSOLIDATED STATEMENT OF OPERATIONS

	Fiscal Year Ended September 30, 2015
	As Previously Reported			Corrections of Errors			Discontinued Operations			Other			As Corrected and Reclassified

	(in thousands, except per share amounts)
Revenues:
Merchandise sales	$	402,118		$	—		$	—		$	—		$	402,118
Jewelry scrapping sales	57,973			—			—			—			57,973
Pawn service charges	247,204			—			—			—			247,204
Consumer loan fees and interest	78,066			—			(68,114		)	(9,952		)	—
Other revenues	3,008			—			(255		)	9,952			12,705
Total revenues	788,369			—			(68,369		)	—			720,000
Merchandise cost of goods sold	267,789			—			—			—			267,789
Jewelry scrapping cost of goods sold	46,066			—			—			—			46,066
Consumer loan bad debt	29,571			—			(26,446		)	(3,125		)	—
Other cost of revenues	—			—			—			3,125			3,125
Net revenues	444,943			—			(41,923		)	—			403,020
Operating expenses:
Operations	327,603			—			(32,664		)	—			294,939
Administrative	72,986			—			—			—			72,986
Depreciation and amortization	33,543			—			(2,584		)	—			30,959
Loss on sale or disposal of assets	2,659			—			—			—			2,659
Restructuring	17,080			—			—			—			17,080
Total operating expenses	453,871			—			(35,248		)	—			418,623
Operating loss	(8,928		)	—			(6,675		)	—			(15,603		)
Interest expense	42,202			—			(25,817		)	—			16,385
Interest income	(1,608		)	—			1,330			—			(278		)
Loss from investments in unconsolidated affiliates	5,473			—			—			—			5,473
Impairment of investments	29,237			(2,400		)	—			—			26,837
Other expense	6,611			—			(4,424		)	—			2,187
Loss from continuing operations before income taxes	(90,843		)	2,400			22,236			—			(66,207		)
Income tax benefit	(26,695		)	5,163			7,507			—			(14,025		)
Loss from continuing operations, net of tax	(64,148		)	(2,763		)	14,729			—			(52,182		)
Loss from discontinued operations, net of tax	(27,316		)	—			(14,729		)	—			(42,045		)
Net loss	(91,464		)	(2,763		)	—			—			(94,227		)
Net loss attributable to noncontrolling interest	(5,015		)	(20		)	—			—			(5,035		)
Net loss attributable to EZCORP, Inc.	$	(86,449	)	$	(2,743	)	$	—		$	—		$	(89,192	)

Basic loss per share attributable to EZCORP, Inc.:
Continuing operations	$	(1.09	)	$	(0.05	)	$	0.20		$	—		$	(0.94	)
Discontinued operations	(0.50		)	—			(0.20		)	—			(0.70		)
Basic loss per share	$	(1.59	)	$	(0.05	)	$	—		$	—		$	(1.64	)

Diluted loss per share attributable to EZCORP, Inc.:
Continuing operations	$	(1.09	)	$	(0.05	)	$	0.20		$	—		$	(0.94	)
Discontinued operations	(0.50		)	—			(0.20		)	—			(0.70		)
Diluted loss per share	$	(1.59	)	$	(0.05	)	$	—		$	—		$	(1.64	)

Weighted average shares outstanding:
Basic	54,369			—			—			—			54,369
Diluted	54,369			—			—			—			54,369

Loss from continuing operations attributable to EZCORP, Inc.	$	(59,133	)	$	(2,743	)	$	10,578		$	—		$	(51,298	)
Loss from discontinued operations attributable to EZCORP, Inc.	(27,316		)	—			(10,578		)	—			(37,894		)
Net loss attributable to EZCORP, Inc.	$	(86,449	)	$	(2,743	)	$	—		$	—		$	(89,192	)

EZCORP, Inc. CONSOLIDATED STATEMENT OF OPERATIONS

	Fiscal Year Ended September 30, 2014
	As Previously Reported			Corrections of Errors			Discontinued Operations			Other			As Corrected and Reclassified

	(in thousands, except per share amounts)
Revenues:
Merchandise sales	$	388,022		$	—		$	—		$	—		$	388,022
Jewelry scrapping sales	96,241			—			—			—			96,241
Pawn service charges	248,378			—			—			—			248,378
Consumer loan fees and interest	63,702			—			(53,377		)	(10,325		)	—
Other revenues	3,949			—			(1,145		)	10,325			13,129
Total revenues	800,292			—			(54,522		)	—			745,770
Merchandise cost of goods sold	248,637			—			—			—			248,637
Jewelry scrapping cost of goods sold	72,830			—			—			—			72,830
Consumer loan bad debt	22,051			—			(19,605		)	(2,446		)	—
Other cost of revenues	—			—			—			2,446			2,446
Net revenues	456,774			—			(34,917		)	—			421,857
Operating expenses:
Operations	325,921			—			(32,184		)	—			293,737
Administrative	79,944			—			—			—			79,944
Depreciation and amortization	31,762			—			(2,503		)	—			29,259
Loss on sale or disposal of assets	(5,841		)	—			—			—			(5,841		)
Restructuring	6,664			—			—			—			6,664
Total operating expenses	438,450			—			(34,687		)	—			403,763
Operating income	18,324			—			(230		)	—			18,094
Interest expense	28,389			—			(20,478		)	—			7,911
Interest income	(1,298		)	—			999			—			(299		)
Income from investments in unconsolidated affiliates	(5,948		)	—			—			—			(5,948		)
Impairment of investments	7,940			—			—			—			7,940
Other expense	480			—			121			—			601
Income (loss) from continuing operations before income taxes	(11,239		)	—			19,128			—			7,889
Income tax expense (benefit)	(7,246		)	3,956			7,741			—			4,451
Income (loss) from continuing operations, net of tax	(3,993		)	(3,956		)	11,387			—			3,438
Loss from discontinued operations, net of tax	(68,093		)	2,006			(11,387		)	—			(77,474		)
Net loss	(72,086		)	(1,950		)	—			—			(74,036		)
Net loss attributable to noncontrolling interest	(7,387		)	1,068			—			—			(6,319		)
Net loss attributable to EZCORP, Inc.	$	(64,699	)	$	(3,018	)	$	—		$	—		$	(67,717	)

Basic loss per share attributable to EZCORP, Inc.:
Continuing operations	$	0.05		$	(0.08	)	$	0.11		$	—		$	0.08
Discontinued operations	(1.25		)	0.03			(0.11		)	—			(1.33		)
Basic loss per share	$	(1.20	)	$	(0.05	)	$	—		$	—		$	(1.25	)

Diluted loss per share attributable to EZCORP, Inc.:
Continuing operations	$	0.06		$	(0.09	)	$	0.11		$	—		$	0.08
Discontinued operations	(1.25		)	0.03			(0.11		)	—			(1.33		)
Diluted loss per share	$	(1.19	)	$	(0.06	)	$	—		$	—		$	(1.25	)

Weighted average shares outstanding:
Basic	54,148			—			—			—			54,148
Diluted	54,292			—			—			—			54,292

Income from continuing operations attributable to EZCORP, Inc.	$	3,394		$	(5,024	)	$	6,106		$	—		$	4,476
Loss from discontinued operations attributable to EZCORP, Inc.	(68,093		)	2,006			(6,106		)	—			(72,193		)
Net loss attributable to EZCORP, Inc.	$	(64,699	)	$	(3,018	)	$	—		$	—		$	(67,717	)