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): April 24, 2007

EZCORP, INC.

(Exact name of registrant as specified in its charter)

DELAWARE (State or other jurisdiction of incorporation)		0-19424 (Commission File Number)		74-2540145 (I.R.S. Employer Identification No.)

1901 CAPITAL PARKWAY AUSTIN, TEXAS (Address of principal executive offices)		78746 (Zip Code)

Registrant’s telephone number, including area code:

(512) 314-3400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

This information set forth under “Item 2.02. Results Of Operations And Financial Condition,” 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 April 24, 2007, EZCORP, Inc. issued a press release announcing its results of operations and financial condition for the quarter ended March 31, 2007. A copy of the press release is attached hereto as Exhibit 99.1.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

99.1		Press release dated April 24, 2007, issued by EZCORP, Inc.

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.

EXHIBIT INDEX

99.1		Press release dated April 24, 2007, issued by EZCORP, Inc.

EXHIBIT 99.1

EZCORP ANNOUNCES SECOND FISCAL QUARTER RESULTS

AUSTIN, Texas (April 24, 2007) — EZCORP, Inc. (Nasdaq: EZPW) announced today results for its second fiscal quarter and six month period, which ended March 31, 2007.

For the quarter ended March 31, 2007, EZCORP’s net income increased 32% to $10,196,000 ($0.23 per share) compared to $7,727,000 ($0.19 per share) for the quarter ended March 31, 2006. Total revenues for the second fiscal quarter increased 14% to $89,643,000 while operating income improved 29% to $14,880,000.

For the six months ended March 31, 2007, EZCORP’s net income increased 38% to $19,957,000 ($0.46 per share) compared to $14,483,000 ($0.35 per share) for the prior year six month period. Total revenues grew 17% to $181,330,000 while operating income increased 35% to $29,503,000. Operating income margins for the six months, measured as a percent of net revenue, improved almost three percentage points to 24.4%.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, “Our results for the second fiscal 2007 quarter were driven by continued strong growth in our payday loan and credit service business and strong growth in our pawn business. Payday loan and credit service fees increased 46% to $22.7 million while bad debt measured as a percent of fee revenues improved a percentage point to just under 13%. Our pawn net revenue improved 4% to $36.6 million with pawn service charges and sales gross profit increasing 7% and 2% over the prior year period.”

Rotunda continued, “This was a very productive quarter for us. During the period, we opened a net twenty-nine EZMONEY stores, we opened our second Mexico EZPAWN location, we agreed to acquire fifteen Colorado pawn locations and we introduced our installment loan product in selective test locations. We believe each of these accomplishments will help drive earnings growth in upcoming quarters.”

Rotunda concluded, “We expect our third fiscal 2007 quarter’s earnings to be approximately $0.15 per share compared to $0.13 for the fiscal 2006 third quarter. For our 2007 fiscal year, we are raising guidance to approximately $0.86 per share compared to fiscal 2006’s $0.69 per share. Based on new EZMONEY locations in the pipeline, we expect to open approximately 65 EZMONEY stores over the next two quarters for a total of 100 net new EZMONEY locations this fiscal year. In early June, we expect to complete our Colorado store acquisition, adding fifteen EZPAWN locations; and, during the next two quarters, we will open one to two additional Mexico EZPAWN stores.”

EZCORP is primarily a lender or provider of credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. The Company offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, in 280 U.S. and two Mexico EZPAWN locations open at March 31, 2007. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. In 369 EZMONEY locations and 80 EZPAWN locations open at March 31, 2007, the Company offers short-term non-collateralized loans, often referred to as payday loans, or fee based credit services to customers seeking loans.

This announcement contains certain forward-looking statements regarding the Company’s expected performance for future periods including, but not limited to, new store expansion and 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 the 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 April 24, 2007 at 3:30pm Central Time. The conference call can be accessed over the Internet or replayed at your convenience at the following address.

http://www.videonewswire.com/event.asp?id=38919

For additional information, contact Dan Tonissen at (512) 314-2289.

EZ CORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)

		Three Months Ended March 31,
		2007				2006
Revenues:
Merchandise sales		$	39,507			$	39,036
Jewelry scrapping sales			10,525				8,569
Pawn service charges			16,556				15,453
Credit service fees			20,041				14,451
Payday loan fees			2,672				1,103
Other			342				329
Total revenues			89,643				78,941
Cost of goods sold:
Cost of merchandise sales			23,576				22,775
Cost of jewelry scrapping sales			6,798				5,562
Total cost of goods sold			30,374				28,337
Net revenues			59,269				50,604
Operations expense			31,104				28,076
Credit service bad debt			2,402				1,873
Payday loan bad debt			514				284
Administrative expense			7,968				6,695
Depreciation and amortization			2,401				2,136
Operating income			14,880				11,540
Interest income			(567	)			(90	)
Interest expense			83				131
Equity in net income of unconsolidated affiliate			(820)				(673	)
(Gain) loss on sale/disposal of assets			—				23
Income before income taxes			16,184				12,149
Income tax expense			5,988				4,422
Net income		$	10,196			$	7,727
Net income per share, diluted		$	0.23			$	0.19
Weighted average shares, diluted			43,445				41,514

EZ CORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)

		Six Months Ended March 31,
		2007				2006
Revenues:
Merchandise sales		$	77,386			$	74,692
Jewelry scrapping sales			21,626				15,266
Pawn service charges			34,518				31,967
Credit service fees			42,068				29,873
Payday loan fees			5,040				2,255
Other			692				658
Total revenues			181,330				154,711
Cost of goods sold:
Cost of merchandise sales			46,158				43,547
Cost of jewelry scrapping sales			14,039				10,451
Total cost of goods sold			60,197				53,998
Net revenues			121,133				100,713
Operations expense			62,492				54,551
Credit service bad debt			7,606				5,643
Payday loan bad debt			1,338				888
Administrative expense			15,495				13,517
Depreciation and amortization			4,699				4,259
Operating income			29,503				21,855
Interest income			(881	)			(90	)
Interest expense			147				353
Equity in net income of unconsolidated affiliate			(1,465	)			(1,188	)
(Gain) loss on sale/disposal of assets			24				8
Income before income taxes			31,678				22,772
Income tax expense			11,721				8,289
Net income		$	19,957			$	14,483
Net income per share, diluted		$	0.46			$	0.35
Weighted average shares, diluted			43,347				40,937

EZ CORP, Inc.
Highlights of Consolidated Balance Sheets (Unaudited)
(in thousands, except per share data and store counts)

		As of March 31,
		2007				2006
Assets:
Current assets:
Cash and cash equivalents		$	61,605			$	26,041
Pawn loans			43,109				39,044
Payday loans, net			3,314				1,507
Pawn service charges receivable, net			6,986				6,598
Credit service fees receivable, net			3,718				2,663
Payday loan fees receivable, net			616				250
Inventory, net			28,649				30,764
Deferred tax asset			7,150				10,629
Prepaid expenses and other assets			5,373				4,014
Total current assets			160,520				121,510
Investment in unconsolidated affiliate			20,955				17,614
Property and equipment, net			30,967				27,124
Deferred tax asset, non-current			4,249				4,012
Other assets, net			3,720				3,471
Total assets		$	220,411			$	173,731
Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable and other accrued expenses		$	18,594			$	16,576
Customer layaway deposits			2,168				2,147
Federal income taxes payable			1,104				1,035
Total current liabilities			21,866				19,758
Deferred gains and other long-term liabilities			3,067				3,430
Total stockholders’ equity			195,478				150,543
Total liabilities and stockholders’ equity		$	220,411			$	173,731
Pawn loan balance per ending pawn store		$	153			$	139
Inventory per ending pawn store		$	102			$	109
Book value per share		$	4.74			$	3.80
Tangible book value per share		$	4.67			$	3.74
EZPAWN store count - end of period			282				281
EZMoney signature loan store count - end of period			369				263
Shares outstanding - end of period			41,248				39,569

EZ CORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)

		EZPAWN				EZMONEY
		Operations				Operations				Consolidated
Three months ended March 31, 2007:
Revenues:
Sales		$	50,032			$	—			$	50,032
Pawn service charges			16,556				—				16,556
Credit service fees			501				19,540				20,041
Payday loan fees			313				2,359				2,672
Other			342				—				342
Total revenues			67,744				21,899				89,643
Cost of goods sold			30,374				—				30,374
Net revenues			37,370				21,899				59,269
Operating expenses:
Operations expense			21,569				9,535				31,104
Credit service bad debt			91				2,311				2,402
Payday loan bad debt			62				452				514
Total direct expenses			21,722				12,298				34,020
Store operating income		$	15,648			$	9,601			$	25,249
EZPAWN store count – end of period			282				—				282
EZMoney signature loan store count – end of period			7				362				369
Three months ended March 31, 2006:
Revenues:
Sales		$	47,605			$	—			$	47,605
Pawn service charges			15,453				—				15,453
Credit service fees			430				14,021				14,451
Payday loan fees			308				795				1,103
Other			329				—				329
Total revenues			64,125				14,816				78,941
Cost of goods sold			28,337				—				28,337
Net revenues			35,788				14,816				50,604
Operating expenses:
Operations expense			21,938				6,138				28,076
Credit service bad debt			123				1,750				1,873
Payday loan bad debt			57				227				284
Total direct expenses			22,118				8,115				30,233
Store operating income		$	13,670			$	6,701			$	20,371
EZPAWN store count – end of period			281				—				281
EZMoney signature loan store count – end of period			7				256				263

EZ CORP, Inc.
Operating Segment Results (Unaudited)
(in thousands, except store counts)

		EZPAWN				EZMONEY
		Operations				Operations				Consolidated
Six months ended March 31, 2007:
Revenues:
Sales		$	99,012			$	—			$	99,012
Pawn service charges			34,518				—				34,518
Credit service fees			1,078				40,990				42,068
Payday loan fees			668				4,372				5,040
Other			692				—				692
Total revenues			135,968				45,362				181,330
Cost of goods sold			60,197				—				60,197
Net revenues			75,771				45,362				121,133
Operating expenses:
Operations expense			43,311				19,181				62,492
Credit service bad debt			294				7,312				7,606
Payday loan bad debt			206				1,132				1,338
Total direct expenses			43,811				27,625				71,436
Store operating income		$	31,960			$	17,737			$	49,697
EZPAWN store count – end of period			282				—				282
EZMoney signature loan store count – end of period			7				362				369
Six months ended March 31, 2006:
Revenues:
Sales		$	89,958			$	—			$	89,958
Pawn service charges			31,967				—				31,967
Credit service fees			652				29,221				29,873
Payday loan fees			749				1,506				2,255
Other			658				—				658
Total revenues			123,984				30,727				154,711
Cost of goods sold			53,998				—				53,998
Net revenues			69,986				30,727				100,713
Operating expenses:
Operations expense			42,656				11,895				54,551
Credit service bad debt			225				5,418				5,643
Payday loan bad debt			297				591				888
Total direct expenses			43,178				17,904				61,082
Store operating income		$	26,808			$	12,823			$	39,631
EZPAWN store count – end of period			281				—				281
EZMoney signature loan store count – end of period			7				256				263