EZCORP INC - FORM 8-K - EX-99.2 - PRESS RELEASE, DATED APRIL 18, 2012

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EX-99.1 - PRESS RELEASE, DATED APRIL 19, 2012 - EZCORP INC	d337626dex991.htm
8-K - FORM 8-K - EZCORP INC	d337626d8k.htm

Exhibit 99.2

LOGO

EZCORP ANNOUNCES CHANGES TO SEGMENT REPORTING

AUSTIN, Texas (April 18, 2012) – EZCORP, Inc. (NASDAQ: EZPW), a leading provider of instant cash solutions for consumers, today announced changes to its segment reporting. These changes will be effective beginning with the Company’s second fiscal quarter ended March 31, 2012.

Previously, the Company reported segments based primarily on product offerings as follows:

•

US Pawn Operations – 468 stores in the U.S. offering primarily pawn, buy/sell and, in 74 cases, unsecured loans and/or auto title loans (or related credit services).

•

Empeño Fácil – 205 stores in Mexico offering pawn and buy/sell.

•

EZMONEY Operations – 435 stores in the U.S. offering unsecured loans and/or auto title loans (or related credit services) and 67 stores in Canada offering a mix of unsecured loans and buy/sell.

The Company also owns almost 30% of Albemarle & Bond Holdings PLC (ABM.L) and approximately 33% of Cash Converters International Limited (CCV.ASX), each of which are accounted for under the equity accounting method. Additionally, in January 2012, the Company acquired a 60% interest in Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (doing business under the name “Crediamigo”), an unsecured lending business in Mexico.

The Company’s strategy includes both broadening its product offerings and expanding its geographic coverage through strategic partners. Many of its bricks and mortar locations now offer multiple products, including pawn, buy/sell, unsecured loans, auto title loans and the Change Card (the Company’s branded, reloadable debit card offering). In addition, the Company is increasingly being organized and managed along geographic lines, with product offerings and channels based on local custom and regulation. The Company has concluded that segment reporting based on geography more closely aligns with its management organization and strategic direction. Accordingly, for periods ending after January 1, 2012, the Company will report segments as follows:

•

U.S. & Canada – All business activities in the United States and Canada.

•

Latin America – All business activities in Mexico and other parts of Latin America.

•

Other International – All business activities in the rest of the world (currently consisting of unsecured loans online in the U.K. and the Company’s equity interests in the net income of Albemarle & Bond and Cash Converters International).

Where practical, expenses, including administrative expenses, depreciation and amortization, are allocated to segments. Interest is also allocated to segments where indebtedness is incurred at the local country level and is non-recourse to EZCORP. Expenses that cannot be allocated are included as corporate expenses.

In the tables below, the Company updated its segment reporting for all quarters of the fiscal year ended September 30, 2010, all quarters of the fiscal year ended September 30, 2011 and the quarter ended December 31, 2011:

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Year Ended September 30, 2011
	U.S. & Canada			Latin America		Other International			Consolidated
Revenues:
Merchandise sales	$	256,846		$	25,237	$	—		$	282,083
Jewelry scrapping sales		196,482			15,997		—			212,479
Pawn service charges		184,234			16,901		—			201,135
Consumer loan fees		171,951			—		—			171,951
Other		1,547			122		—			1,669

Total revenues		811,060			58,257		—			869,317
Merchandise cost of goods sold		147,388			14,672		—			162,060
Jewelry scrapping cost of goods sold		121,355			12,205		—			133,560
Consumer loan bad debt		38,759			—		—			38,759

Net revenues		503,558			31,380		—			534,938
Operating expenses:
Store operations		246,416			20,636		—			267,052
Administrative		19,444			4,447		795			24,686
Depreciation		11,211			2,446		—			13,657
Amortization		456			399		—			855
Loss on sale/disposal of assets		296			13		—			309
Interest, net		30			4		—			34
Equity in net income of unconsolidated affiliates		—			—		(16,237	)		(16,237	)
Other		(3	)		7		(168	)		(164	)

Segment contribution	$	225,708		$	3,428	$	15,610		$	244,746
Corporate expenses										56,035

Income before taxes										188,711
Income tax expense										66,552

Net income										122,159

Net income attributable to noncontrolling interest										—

Net income attributable to EZCORP, Inc.									$	122,159

Page 2 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Year Ended September 30, 2010
	U.S. & Canada		Latin America			Other International			Consolidated
Revenues:
Merchandise sales	$	226,424	$	14,030		$	—		$	240,454
Jewelry scrapping sales		164,022		7,389			—			171,411
Pawn service charges		154,505		9,190			—			163,695
Consumer loan fees		157,022		—			—			157,022
Other		463		—			—			463

Total revenues		702,436		30,609			—			733,045
Merchandise cost of goods sold		131,825		8,459			—			140,284
Jewelry scrapping cost of goods sold		104,701		6,137			—			110,838
Consumer loan bad debt		34,444		—			—			34,444

Net revenues		431,466		16,013			—			447,479
Operating expenses:
Store operations		225,006		11,658			—			236,664
Administrative		16,550		2,763			69			19,382
Depreciation		9,442		1,453			—			10,895
Amortization		275		356			—			631
(Gain)/loss on sale/disposal of assets		1,546		(2	)		—			1,544
Interest, net		—		2			—			2
Equity in net income of unconsolidated affiliates		—		—			(10,750	)		(10,750	)
Other		3		(3	)		(93	)		(93	)

Segment contribution	$	178,644	$	(214	)	$	10,774		$	189,204
Corporate expenses										37,674

Income before taxes										151,530
Income tax expense										54,236

Net income										97,294

Net income attributable to noncontrolling interest										—

Page 3 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Three Months Ended December 31, 2011
	U.S. & Canada			Latin America			Other International			Consolidated
Revenues:
Merchandise sales	$	76,552		$	10,342		$	—		$	86,894
Jewelry scrapping sales		52,866			3,537			—			56,403
Pawn service charges		54,370			5,422			—			59,792
Consumer loan fees		45,012			—			76			45,088
Other		576			120			—			696

Total revenues		229,376			19,421			76			248,873
Merchandise cost of goods sold		43,451			4,945			—			48,396
Jewelry scrapping cost of goods sold		33,150			2,274			—			35,424
Consumer loan bad debt		10,890			—			135			11,025

Net revenues		141,885			12,202			(59	)		154,028
Operating expenses:
Store operations		68,325			5,998			178			74,501
Administrative		6,447			1,295			420			8,162
Depreciation		3,117			680			22			3,819
Amortization		130			97			—			227
Gain on sale/disposal of assets		(200	)		(1	)		—			(201	)
Interest, net		4			(36	)		—			(32	)
Equity in net income of unconsolidated affiliates		—			—			(4,161	)		(4,161	)
Other		(1,060	)		5			(64	)		(1,119	)

Segment contribution	$	65,122		$	4,164		$	3,546		$	72,832
Corporate expenses											13,341

Income before taxes											59,491
Income tax expense											20,139

Net income											39,352

Net income attributable to noncontrolling interest											—

Net income attributable to EZCORP, Inc.										$	39,352

Page 4 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Three Months Ended December 31, 2010
	U.S. & Canada		Latin America		Other International			Consolidated
Revenues:
Merchandise sales	$	66,305	$	5,575	$	—		$	71,880
Jewelry scrapping sales		47,203		3,462		—			50,665
Pawn service charges		46,436		3,374		—			49,810
Consumer loan fees		46,310		—		—			46,310
Other		158		3		—			161

Total revenues		206,412		12,414		—			218,826
Merchandise cost of goods sold		38,197		3,114		—			41,311
Jewelry scrapping cost of goods sold		29,617		2,638		—			32,255
Consumer loan bad debt		11,028		—		—			11,028

Net revenues		127,570		6,662		—			134,232
Operating expenses:
Store operations		60,226		4,278		—			64,504
Administrative		5,403		937		25			6,365
Depreciation		2,602		506		—			3,108
Amortization		115		97		—			212
Loss on sale/disposal of assets		6		1		—			7
Interest, net		—		1		—			1
Equity in net income of unconsolidated affiliates		—		—		(3,367	)		(3,367	)
Other		—		—		(61	)		(61	)

Segment contribution	$	59,218	$	842	$	3,403		$	63,463
Corporate expenses									20,928

Income before taxes									42,535
Income tax expense									15,106

Net income									27,429

Net income attributable to noncontrolling interest									—

Net income attributable to EZCORP, Inc.								$	27,429

Page 5 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Three Months Ended December 31, 2009
	U.S. & Canada			Latin America			Other International			Consolidated
Revenues:
Merchandise sales	$	61,262		$	3,354		$	—		$	64,616
Jewelry scrapping sales		36,835			607			—			37,442
Pawn service charges		38,941			1,856			—			40,797
Consumer loan fees		41,780			—			—			41,780
Other		116			—			—			116

Total revenues		178,934			5,817			—			184,751
Merchandise cost of goods sold		36,906			2,358			—			39,264
Jewelry scrapping cost of goods sold		22,831			475			—			23,306
Consumer loan bad debt		9,250			—			—			9,250

Net revenues		109,947			2,984			—			112,931
Operating expenses:
Store operations		56,017			2,164			—			58,181
Administrative		3,726			598			67			4,391
Depreciation		2,224			267			—			2,491
Amortization		38			88			—			126
Loss on sale/disposal of assets		211			—			—			211
Interest, net		—			(2	)		—			(2	)
Equity in net income of unconsolidated affiliates		—			—			(1,283	)		(1,283	)
Other		(1	)		(9	)		(5	)		(15	)

Segment contribution	$	47,732		$	(122	)	$	1,221		$	48,831
Corporate expenses											9,004

Income before taxes											39,827
Income tax expense											14,120

Net income											25,707

Net income attributable to noncontrolling interest											—

Net income attributable to EZCORP, Inc.										$	25,707

Page 6 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Three Months Ended March 31, 2011
	U.S. & Canada			Latin America			Other International			Consolidated
Revenues:
Merchandise sales	$	72,420		$	5,353		$	—		$	77,773
Jewelry scrapping sales		44,351			3,644			—			47,995
Pawn service charges		43,073			3,696			—			46,769
Consumer loan fees		40,472			—			—			40,472
Other		220			25			—			245

Total revenues		200,536			12,718			—			213,254
Merchandise cost of goods sold		41,484			3,155			—			44,639
Jewelry scrapping cost of goods sold		28,848			3,077			—			31,925
Consumer loan bad debt		5,740			—			—			5,740

Net revenues		124,464			6,486			—			130,950
Operating expenses:
Store operations		61,196			4,849			—			66,045
Administrative		4,407			1,079			27			5,513
Depreciation		2,764			578			—			3,342
Amortization		121			100			—			221
Gain on sale/disposal of assets		(178	)		—			—			(178	)
Interest, net		—			1			—			1
Equity in net income of unconsolidated affiliates		—			—			(4,691	)		(4,691	)
Other		3			1			—			4

Segment contribution	$	56,151		$	(122	)	$	4,664		$	60,693
Corporate expenses											11,411

Income before taxes											49,282
Income tax expense											17,444

Net income											31,838

Net income attributable to noncontrolling interest											—

Net income attributable to EZCORP, Inc.										$	31,838

Page 7 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Three Months Ended March 31, 2010
	U.S. & Canada		Latin America			Other International			Consolidated
Revenues:
Merchandise sales	$	63,049	$	3,259		$	—		$	66,308
Jewelry scrapping sales		34,466		1,762			—			36,228
Pawn service charges		36,256		2,050			—			38,306
Consumer loan fees		35,598		—			—			35,598
Other		144		—			—			144

Total revenues		169,513		7,071			—			176,584
Merchandise cost of goods sold		37,058		2,023			—			39,081
Jewelry scrapping cost of goods sold		21,507		1,574			—			23,081
Consumer loan bad debt		4,717		—			—			4,717

Net revenues		106,231		3,474			—			109,705
Operating expenses:
Store operations		55,632		2,573			—			58,205
Administrative		4,124		634			2			4,760
Depreciation		2,328		340			—			2,668
Amortization		72		84			—			156
(Gain)/loss on sale/disposal of assets		383		(3	)		—			380
Interest, net		—		1			—			1
Equity in net income of unconsolidated affiliates		—		—			(3,306	)		(3,306	)
Other		13		(1	)		—			12

Segment contribution	$	43,679	$	(154	)	$	3,304		$	46,829
Corporate expenses										9,834

Income before taxes										36,995
Income tax expense										13,222

Net income										23,773

Net income attributable to noncontrolling interest										—

Net income attributable to EZCORP, Inc.									$	23,773

Page 8 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Three Months Ended June 30, 2011
	U.S. & Canada		Latin America		Other International			Consolidated
Revenues:
Merchandise sales	$	58,173	$	6,401	$	—		$	64,574
Jewelry scrapping sales		46,514		4,257		—			50,771
Pawn service charges		43,846		4,519		—			48,365
Consumer loan fees		38,870		—		—			38,870
Other		566		6		—			572

Total revenues		187,969		15,183		—			203,152
Merchandise cost of goods sold		32,924		3,767		—			36,691
Jewelry scrapping cost of goods sold		28,951		3,486		—			32,437
Consumer loan bad debt		11,027		—		—			11,027

Net revenues		115,067		7,930		—			122,997
Operating expenses:
Store operations		61,347		5,406		—			66,753
Administrative		4,293		1,014		506			5,813
Depreciation		2,828		639		—			3,467
Amortization		117		104		—			221
Loss on sale/disposal of assets		157		12		—			169
Interest, net		20		2		—			22
Equity in net income of unconsolidated affiliates		—		—		(4,099	)		(4,099	)
Other		2		2		(107	)		(103	)

Segment contribution	$	46,303	$	751	$	3,700		$	50,754
Corporate expenses									10,100

Income before taxes									40,654
Income tax expense									14,127

Net income									26,527

Net income attributable to noncontrolling interest									—

Net income attributable to EZCORP, Inc.								$	26,527

Page 9 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Three Months Ended June 30, 2010
	U.S. & Canada			Latin America			Other International			Consolidated
Revenues:
Merchandise sales	$	49,749		$	3,529		$	—		$	53,278
Jewelry scrapping sales		41,592			2,181			—			43,773
Pawn service charges		37,014			2,410			—			39,424
Consumer loan fees		36,954			—			—			36,954
Other		113			—			—			113

Total revenues		165,422			8,120			—			173,542
Merchandise cost of goods sold		27,749			1,961			—			29,710
Jewelry scrapping cost of goods sold		27,413			1,862			—			29,275
Consumer loan bad debt		9,753			—			—			9,753

Net revenues		100,507			4,297			—			104,804
Operating expenses:
Store operations		54,953			2,999			—			57,952
Administrative		4,307			741			—			5,048
Depreciation		2,387			423			—			2,810
Amortization		59			92			—			151
Loss on sale/disposal of assets		732			1			—			733
Interest, net		—			1			—			1
Equity in net income of unconsolidated affiliates		—			—			(2,930	)		(2,930	)
Other		(10	)		(2	)		(88	)		(100	)

Segment contribution	$	38,079		$	42		$	3,018		$	41,139
Corporate expenses											9,502

Income before taxes											31,637
Income tax expense											11,675

Net income											19,962

Net income attributable to noncontrolling interest											—

Net income attributable to EZCORP, Inc.										$	19,962

Page 10 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Three Months Ended September 30, 2011
	U.S. & Canada			Latin America		Other International			Consolidated
Revenues:
Merchandise sales	$	59,948		$	7,908	$	—		$	67,856
Jewelry scrapping sales		58,414			4,634		—			63,048
Pawn service charges		50,879			5,312		—			56,191
Consumer loan fees		46,299			—		—			46,299
Other		603			88		—			691

Total revenues		216,143			17,942		—			234,085
Merchandise cost of goods sold		34,783			4,636		—			39,419
Jewelry scrapping cost of goods sold		33,939			3,004		—			36,943
Consumer loan bad debt		10,964			—		—			10,964

Net revenues		136,457			10,302		—			146,759
Operating expenses:
Store operations		63,647			6,103		—			69,750
Administrative		5,341			1,417		237			6,995
Depreciation		3,017			723		—			3,740
Amortization		103			98		—			201
Loss on sale/disposal of assets		311			—		—			311
Interest, net		10			—		—			10
Equity in net income of unconsolidated affiliates		—			—		(4,080	)		(4,080	)
Other		(8	)		4		—			(4	)

Segment contribution	$	64,036		$	1,957	$	3,843		$	69,836
Corporate expenses										13,596

Income before taxes										56,240
Income tax expense										19,875

Net income										36,365

Net income attributable to noncontrolling interest										—

Net income attributable to EZCORP, Inc.									$	36,365

Page 11 of 13

EZCORP, Inc.

Operating Segment Results

(In Thousands)


	Three Months Ended September 30, 2010
	U.S. & Canada		Latin America		Other International			Consolidated
Revenues:
Merchandise sales	$	52,364	$	3,888	$	—		$	56,252
Jewelry scrapping sales		51,129		2,839		—			53,968
Pawn service charges		42,294		2,874		—			45,168
Consumer loan fees		42,690		—		—			42,690
Other		90		—		—			90

Total revenues		188,567		9,601		—			198,168
Merchandise cost of goods sold		30,112		2,117		—			32,229
Jewelry scrapping cost of goods sold		32,950		2,226		—			35,176
Consumer loan bad debt		10,724		—		—			10,724

Net revenues		114,781		5,258		—			120,039
Operating expenses:
Store operations		58,404		3,922		—			62,326
Administrative		4,393		790		—			5,183
Depreciation		2,503		423		—			2,926
Amortization		106		92		—			198
Loss on disposal of assets		220		—		—			220
Interest, net		—		2		—			2
Equity in net income of unconsolidated affiliates		—		—		(3,231	)		(3,231	)
Other		1		9		—			10

Segment contribution	$	49,154	$	20	$	3,231		$	52,405
Corporate expenses									9,334

Income before taxes									43,071
Income tax expense									15,219

Net income									27,852

Net income attributable to noncontrolling interest									—

Net income attributable to EZCORP, Inc.								$	27,852

About EZCORP

EZCORP is a leading provider of instant cash solutions for consumers. Through more than 1,200 company-operated pawn, buy/sell and personal financial services stores in the U.S., Mexico and Canada, we provide a variety of instant cash solutions, including pawn loans, payday loans, installment loans, auto title loans, and fee-based credit services to customers seeking loans. At our pawn and buy/sell stores, we also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers.

EZCORP owns a controlling interest in Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (doing business under the name “Crediamigo”), a leading provider of payroll deduction loans in Mexico. The company also has significant investments in Albemarle & Bond Holdings PLC (ABM.L), one of the U.K.’s

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largest pawnbroking businesses with over 170 full-line stores offering pawnbroking, jewelry retailing, gold buying and financial services; and in Cash Converters International Limited (CCV.L and CCV.ASX), which franchises and operates a worldwide network of over 600 stores that provide personal financial services and sell pre-owned merchandise.

EZCORP Investor Relations

(512) 314-2220

Investor_Relations@ezcorp.com

www.ezcorp.com

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