EZCORP Inc : EZCORP Announces Changes to Segment Reporting
04/18/2012| 05:10pm US/Eastern
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AUSTIN, Texas, April 18, 2012 /PRNewswire/ -- 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.
(Logo: http://photos.prnewswire.com/prnh/20090713/EZCORPLOGO)
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).
-- Empeno Facil - 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 60% of 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 Consolidated
International
-------------
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
========
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Year Ended September 30, 2010
-----------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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 -
---
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Three Months Ended December 31, 2011
------------------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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
=======
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Three Months Ended December 31, 2010
------------------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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
=======
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Three Months Ended December 31, 2009
------------------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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
=======
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Three Months Ended March 31, 2011
---------------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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
=======
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Three Months Ended March 31, 2010
---------------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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
=======
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Three Months Ended June 30, 2011
--------------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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
=======
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Three Months Ended June 30, 2010
--------------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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
=======
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Three Months Ended September 30, 2011
-------------------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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
=======
EZCORP, Inc.
Operating Segment Results
(In Thousands)
Three Months Ended September 30, 2010
-------------------------------------
U.S. & Canada Latin America Other Consolidated
International
-------------
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 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_Realtions@ezcorp.com
www.ezcorp.com
SOURCE EZCORP, Inc.
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