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.
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 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
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
-
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
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
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
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
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
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
