EZPW. Just MHO. But I'd be careful with this one. Russ
Tuesday January 25, 4:35 pm Eastern Time
Company Press Release
SOURCE: EZCORP, Inc.
EZCORP Announces First Quarter Results
AUSTIN, Texas, Jan. 25 /PRNewswire/ -- EZCORP, Inc. (Nasdaq: EZPW - news) announced today the results for its 2000 first fiscal quarter, which ended December 31, 1999.
Net income for the first fiscal 2000 quarter decreased to $0.5 million ($0.04 per diluted share) from $2.4 million ($0.20 per diluted share) for the fiscal 1999 period. Total revenues for the current fiscal period increased 6% to $64.2 million compared to $60.4 million for the prior-year period. After an 18% increase in cost of goods sold and a 4% increase in operating expense, operating income before depreciation and amortization declined to $4.5 million compared to $6.9 million a year ago.
Commenting on these results, Vincent A. Lambiase, President and Chief Executive Officer, said, ''Compared to last year, we have experienced a significant decline in values on certain general merchandise categories as well as depressed gold prices. As a result, we have reduced both the amount we will lend and our retail prices on certain general merchandise categories and jewelry. These steps have caused a 7% decline in same store loan balances and a six percentage point decrease in margins on merchandise sales.''
Mr. Lambiase went on to add, ''We expect lower gross margins, lower comparable store loan balances, and the earnings drag from new stores to negatively impact earnings over the next two to three quarters. We are working to raise loan redemption rates and sell excess inventory to return quickly to a balanced operating model. During the first quarter, the eighty new stores that we have opened over the last eight quarters had an earnings drag of approximately $0.05 per share.''
The Company also announced that its quarterly dividend would be paid on February 22, 2000 to all shareholders of record on February 8, 2000.
At December 31, 1999, the Company operated 334 stores in fourteen states compared to 304 stores at December 31, 1998. During the preceding twelve months, the Company opened twenty-nine new stores, acquired three and closed two.
EZCORP offers consumers convenient, non-recourse loans collateralized by tangible personal property. A secondary, but related, business activity is the selling of previously owned merchandise consisting primarily of forfeited collateral. The Company currently operates 334 stores located in Texas (193), Colorado (24), Oklahoma (22), Indiana (21), Florida (17), Georgia (14), Alabama (13), California (8), Tennessee (8), Nevada (4), Louisiana (3), Mississippi (3), North Carolina (3) and Arkansas (1).
Statement of Operations - Unaudited
(thousands, except per share amounts)
Three Months Ended
12/31/99 12/31/98
Merchandise Sales $38,090 $34,434
Pawn Service Charge 25,883 25,831
Other 256 150
Total Revenues 64,229 60,415
Cost of Goods Sold 34,170 29,022
Net Revenues 30,059 31,393
Operating Expenses 25,554 24,535
Operating Income before
Depreciation & Amortization 4,505 6,858
Depreciation & Amortization 2,522 2,285
Income from Operations 1,983 4,573
Interest Expense 1,332 846
Equity Interest in Income of
Unconsolidated Affiliate (64) (110)
Income Before Income Taxes 715 3,837
Income Tax Expense 265 1,458
Net Income $ 450 $ 2,379
Earnings per share - diluted $ 0.04 $ 0.20
Weighted average shares - diluted 12,012 12,009
Selected Operating and Financial Data
(thousands, except per share amounts, turnover,
percentages and store count)
Three Months Ended
12/31/99 12/31/98
SAME STORE GROWTH DATA
Loan Growth (A) (7%) 16%
Loan Growth (B) (2%) 14%
Sales Growth (B) 4% 4%
LOAN DATA
Pawn Loans Outstanding (A) $46,923 $48,490
Loan Balance per Ending Store (A) $ 140 $ 160
Average Dollar Loan (A) $ 71 $ 73
Annualized Yield on Loans (B) 204% 209%
Redemption Rate (A) 75% 74%
INVENTORY DATA
Inventory (A) $61,032 $49,245
Inventory per Ending Store (A) $ 183 $ 162
Annualized Inventory Turnover (B) 2.2x 2.4x
Loan to Inventory Ratio (A) 0.8 1.0
Aged Jewelry Inventory (A) (C) 13% 14%
Aged General Merchandise
Inventory (A) (C) 7% 4%
OTHER BALANCE SHEET DATA (A)
Long-term Debt $ 75,120 $ 56,130
Stockholders' Equity $136,018 $132,849
Book Value per Share - Diluted $ 11.32 $ 11.06
Tangible Book Value per
Share - Diluted $ 9.89 $ 9.69
STORE STATUS
Beginning Store Count 331 286
Stores Opened During Period 3 17
Stores Acquired During Period 0 1
Stores Closed During Period 0 0
Ending Store Count 334 304
(A) as of the end of the period
(B) average for the period
(C) percent of category inventory that has been in the Company's
inventory for more than twelve months
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