-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Bu/3hzmRW7kqUG/Xx1nUBOH+UVEAh70d/APf5hMUKndacRcxXdkvad07xDH2iqAG HOvewTqwIhoiew88gUxufA== 0001035704-03-000529.txt : 20030722 0001035704-03-000529.hdr.sgml : 20030722 20030722091056 ACCESSION NUMBER: 0001035704-03-000529 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030722 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EZCORP INC CENTRAL INDEX KEY: 0000876523 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISCELLANEOUS RETAIL [5900] IRS NUMBER: 742540145 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19424 FILM NUMBER: 03795447 BUSINESS ADDRESS: STREET 1: 1901 CAPITAL PKWY CITY: AUSTIN STATE: TX ZIP: 78746 BUSINESS PHONE: 5123143400 MAIL ADDRESS: STREET 1: 1901 CAPITAL PKWY CITY: AUSTIN STATE: TX ZIP: 78746 8-K 1 d07596e8vk.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 22, 2003 EZCORP, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE (STATE OR OTHER JURISDICTION OF INCORPORATION) 0-19424 74-2540145 (COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION NO.) 1901 CAPITAL PARKWAY AUSTIN, TEXAS 78746 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICE, INCLUDING ZIP CODE) (512) 314-3400 (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) ITEM 7. EXHIBITS. 99 Press release dated July 22, 2003, issued by EZCORP, Inc. ITEM 9. REGULATION FD DISCLOSURE This information set forth under "Item 9. Regulation FD Disclosure" is intended to be furnished solely under "Item 12. Results Of Operations And Financial Condition" in accordance with SEC Release No. 33-8216. Such information, including the Exhibit attached hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities and Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing. On July 22, 2003, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the three and nine-month periods ended June 30, 2003. A copy of the press release is attached hereto as Exhibit 99. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION The information required under this Item 12 is being provided under Item 9 of this report as provided in SEC Release No. 33-8216. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EZCORP, INC. (Registrant) Date: July 22, 2003 By: /s/ Daniel N. Tonissen -------------------------------------- (Signature) Senior Vice President, Chief Financial Officer, and Director EXHIBIT INDEX 99 Press release dated July 22, 2003, issued by EZCORP, Inc.
EX-99 3 d07596exv99.txt PRESS RELEASE DATED JULY 22, 2003 EXHIBIT 99 EZCORP ANNOUNCES THIRD QUARTER RESULTS AUSTIN, TEXAS (JULY 22, 2003) -- EZCORP, Inc. (Nasdaq/NM: EZPW) announced today results for its third fiscal 2003 quarter and the nine month period, which ended June 30, 2003. For the three months ended June 30, 2003, net income increased to $53,000 ($0.00 per share) compared to a net loss of $513,000 ($0.04 per share) for the comparable prior year period. These earnings are at the upper end of the Company's publicly announced estimate of $0.00 to a loss of $0.02 per share for this period. Total revenues for the three month period increased 9% to $46,903,000. For the nine months ended June 30, 2003, income before the cumulative effect of an accounting change increased to $3,836,000 ($0.31 per share) compared to $1,953,000 ($0.16 per share) for the comparable prior year period. Total revenues for the nine month period increased 5% to $153,124,000. Effective October 1, 2002, the Company adopted Statement of Financial Accounting Standards No. 142 which deals with the accounting treatment of goodwill and other intangible assets. After a charge of $8,037,000 for the cumulative effect of adopting this new accounting principle, the Company realized a net loss of $4,201,000 for the nine month period. Commenting on these results, Joseph L. Rotunda, President and Chief Executive Officer, said, "Results for our third fiscal quarter continue to be in line with our expectations. For the quarter, our pawn lending was especially strong with pawn service charge revenue up six percent from the same period last year, primarily due to a six percentage point improvement in our annualized yield on pawn loans. We also realized three percent same store sales growth; however, this came at a cost of lower margins as we aggressively pushed to reduce aging inventory levels. Inventory turnover was very strong at 2.7 times compared to 2.2 times for the same period a year ago." "Our payroll advance product continues to mature with payroll advance finance charges up fifty-six percent to just over three-million dollars for the quarter and our end of period loan balance up seventy-five percent from June 2002 to $3,116,000. As we generated this growth, we also lowered our net defaults on payroll advance loans one percentage point, compared to the third fiscal 2002 quarter, to 4.8%." Mr. Rotunda continued, "We are also excited about opening our first two payroll advance stores: one is a stand-alone store that offers payroll advances and the other is a "store within a store" with the payroll advance operation separated from the adjoining EZPawn. We believe both models offer significant growth opportunity in the future." The Company estimates fiscal 2003 earnings (before the cumulative effect of the change in accounting principle) to be between thirty-five and forty cents per share compared to eighteen cents per share for fiscal 2002. For the fiscal 2003 fourth quarter, the Company estimates earnings to be between four and nine cents per share compared to two cents per share for the fiscal 2002 fourth quarter. Seasonally, the Company's fourth quarter earnings are expected to be the second weakest of the quarters (after the third quarter) due mainly to lower sales levels. The Company's preliminary earnings guidance for its fiscal 2004 is fifty to fifty-five cents per share. EZCORP offers consumers convenient, non-recourse loans collateralized by tangible personal property, and short-term non-collateralized loans, often referred to as payday loans. A secondary, but related, business activity is the selling of previously owned merchandise consisting primarily of forfeited collateral. At June 30, 2003, the Company operated 280 stores in eleven states. This announcement contains certain forward-looking statements regarding the Company's expected performance for future periods including, but not limited to, expected future earnings. Actual results for these periods may materially differ from these statements. Such forward-looking statements involve risks and uncertainties such as changing market conditions in the overall economy and the industry, consumer demand for the Company's services and merchandise, changes in regulatory environment, and other factors periodically discussed in the Company's annual, quarterly and other reports filed with the Securities and Exchange Commission. You are invited to listen to a conference call discussing these results on July 22, 2003 at 10:00 am Central Time. The conference call can be accessed over the Internet (or replay at your convenience) at the following address. http://www.firstcallevents.com/service/ajwz383995606gf12.html For additional information, contact Dan Tonissen at (512) 314-2289. EZCORP, INC. HIGHLIGHTS OF CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) (in thousands, except per share data and store count)
THREE MONTHS ENDED JUNE 30, -------------------------------- 2003 2002 -------------- -------------- Total revenues $ 46,903 $ 43,140 Cost of goods sold 19,714 17,601 -------------- -------------- Net revenues 27,189 25,539 Operating expenses 24,832 22,804 -------------- -------------- Operating income before depreciation and amortization 2,357 2,735 Depreciation and amortization 2,179 2,501 -------------- -------------- Operating income 178 234 Interest expense, net 403 972 Equity in net income of unconsolidated affiliate (333) (110) Loss on sale of assets 27 186 -------------- -------------- Income (loss) before income taxes 81 (814) Income tax expense (benefit) 28 (301) -------------- -------------- Income (loss) before cumulative effect of a change in accounting principle $ 53 $ (513) Cumulative effect of adopting a new accounting principle, net of tax -- -- -------------- -------------- Net income (loss) $ 53 $ (513) ============== ============== Income (loss) per share, assuming dilution: Income (loss) before cumulative effect of a change in accounting principle $ -- $ (0.04) Cumulative effect of adopting a new accounting principle, net of tax -- -- -------------- -------------- Net income (loss) $ -- $ (0.04) ============== ============== Weighted average shares - assuming dilution 12,528 12,148 Store count - average for period 280 280 Pro forma results, as if the new accounting principle were in effect for all periods: Net income (loss) as reported $ 53 $ (513) Add back: goodwill and pawn license amortization, net of tax -- 95 Add back: amortization of goodwill related to equity investee, net of tax -- 71 Add back: cumulative effect of adopting a new accounting principle, net of tax -- -- -------------- -------------- Adjusted net income (loss) $ 53 $ (347) ============== ============== Per share amounts - assuming dilution: Net income (loss) as reported $ -- $ (0.04) Add back: goodwill and pawn license amortization, net of tax -- 0.01 Add back: amortization of goodwill related to equity investee, net of tax -- -- Add back: cumulative effect of adopting a new accounting principle, net of tax -- -- -------------- -------------- Adjusted net income (loss) $ -- $ (0.03) ============== ==============
EZCORP, INC. HIGHLIGHTS OF CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) (in thousands, except per share data and store count)
NINE MONTHS ENDED JUNE 30, 2003 2002 -------------- -------------- Total revenues $ 153,124 $ 145,202 Cost of goods sold 63,708 60,591 -------------- -------------- Net revenues 89,416 84,611 Operating expenses 76,381 70,272 -------------- -------------- Operating income before depreciation and amortization 13,035 14,339 Depreciation and amortization 6,636 7,631 -------------- -------------- Operating income 6,399 6,708 Interest expense, net 1,534 3,711 Equity in net income of unconsolidated affiliate (1,062) (422) Loss on sale of assets 26 319 -------------- -------------- Income before income taxes 5,901 3,100 Income tax expense 2,065 1,147 -------------- -------------- Income before cumulative effect of a change in accounting principle $ 3,836 $ 1,953 Cumulative effect of adopting a new accounting principle, net of tax (8,037) -- -------------- -------------- Net income (loss) $ (4,201) $ 1,953 ============== ============== Income (loss) per share, assuming dilution: Income before cumulative effect of a change in accounting principle $ 0.31 $ 0.16 Cumulative effect of adopting a new accounting principle, net of tax $ (0.65) -- -------------- -------------- Net income (loss) $ (0.34) $ 0.16 ============== ============== Weighted average shares - assuming dilution 12,474 12,275 Store count - average for period 280 281 Pro forma results, as if the new accounting principle were in effect for all periods: Net income (loss) as reported $ (4,201) $ 1,953 Add back: goodwill and pawn license amortization, net of tax -- 285 Add back: amortization of goodwill related to equity investee, net of tax -- 214 Add back: cumulative effect of adopting a new accounting principle, net of tax 8,037 -- -------------- -------------- Adjusted net income $ 3,836 $ 2,452 -------------- -------------- Per share amounts - assuming dilution: Net income (loss) as reported $ (0.34) $ 0.16 Add back: goodwill and pawn license amortization, net of tax -- 0.02 Add back: amortization of goodwill related to equity investee, net of tax -- 0.02 Add back: cumulative effect of adopting a new accounting principle, net of tax 0.65 -- -------------- -------------- Adjusted net income $ 0.31 $ 0.20 ============== ==============
EZCORP, Inc. HIGHLIGHTS OF CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except per share data and store count)
AS OF JUNE 30, 2003 2002 ------------ ------------ Assets: Current assets: Cash and cash equivalents $ 248 $ 1,418 Pawn loans 48,149 47,648 Payroll advances 3,116 1,784 Pawn service charges receivable, net 8,806 8,253 Payroll advance service charges receivable, net 611 382 Inventory, net 28,853 32,634 Deferred tax asset 6,418 6,434 Federal income taxes receivable 683 -- Prepaid expenses and other assets 2,209 2,359 ------------ ------------ Total current assets 99,093 100,912 Investment in unconsolidated affiliates 15,113 13,932 Property and equipment, net 27,141 34,214 Deferred tax asset, non-current 1,948 -- Other assets 5,348 16,252 ------------ ------------ Total assets $ 148,643 $ 165,310 ============ ============ Liabilities and stockholders' equity: Current liabilities: Current maturities of long-term debt $ -- $ 43,445 Accounts payable and other accrued expenses 9,186 10,666 Customer layaway deposits 1,471 1,811 ------------ ------------ Total current liabilities 10,657 55,922 Long-term debt, less current maturities 33,000 -- Deferred tax liability -- 1,193 Deferred gains and other long-term liabilities 4,408 4,200 ------------ ------------ Total long-term liabilities 37,408 5,393 Total stockholders' equity 100,578 103,995 ------------ ------------ Total liabilities and stockholders' equity $ 148,643 $ 165,310 ============ ============ Pawn loan balance per ending store $ 172 $ 170 Inventory per ending store $ 103 $ 117 Book value per share $ 8.25 $ 8.55 Tangible book value per share $ 8.03 $ 7.41 Store count - end of period 280 280 Basic shares outstanding - end of period 12,188 12,167
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