EZCORP Inc. (EZPW, Financial) filed Quarterly Report for the period ended 2009-12-31.
Ezcorp Inc. has a market cap of $797.8 million; its shares were traded at around $17.44 with a P/E ratio of 11.1 and P/S ratio of 1.4. Ezcorp Inc. had an annual average earning growth of 35.8% over the past 5 years.EZPW is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
At December 31, 2009, 393 of our U.S. short-term consumer loan stores and 68 of our U.S. pawn stores offered auto title loans or credit services to assist customers in obtaining auto title loans from unaffiliated lenders. Auto title loans are 30-day loans secured by the titles to customers automobiles. Loan principal amounts range from $100 to $9,000, but average about $700. We earn a fee of 12.5% to 25% of auto title loan amounts.
On December 31, 2008, we acquired Value Financial Services, Inc. (VFS). We acquired VFSs 67 pawn stores, mostly in Florida, for a total acquisition price of $77.7 million, plus the assumption of VFSs debt of $30.4 million, for an aggregate cost of approximately $108.1 million. This excludes $10.7 million of contingent payments made since the acquisition. The contingent payments were recorded as a reduction of Additional paid-in capital in accordance with accounting rules for contingencies based on our stock price. Results of the acquired stores are included in our results of operations beginning January 1, 2009.
In the current quarter, consolidated total revenues increased 44%, or $56.1 million to $184.8 million, compared to the prior year quarter. Same store total revenues increased 12%, with the remainder of the increase coming from new and acquired stores. The overall increase in total consolidated revenues was comprised of a $35.3 million increase in merchandise and jewelry scrapping sales, a $14.4 million increase in pawn service charges, a $2.7 million increase in signature loan fees, a $2.9 million increase in auto title loan fees and a $0.8 million increase in other revenues.
The 78 pawn stores acquired in the December 2008 quarter contributed total revenues of $43.0 million, store operating income of $10.3 million and net income of $6.2 million, or approximately $0.07 diluted earnings per share after the effect of shares issued in the acquisitions. In the prior year quarter, the 11 stores acquired prior to the end of the quarter contributed total revenues of $2.7 million, store operating income of $0.6 million and net income of $0.4 million, with no earnings per share contribution after the effect of shares issued in the acquisition.
In the current quarter, the U.S. Pawn Operations segment, including the contribution from acquisitions, contributed $14.5 million greater store operating income compared to the prior year quarter, primarily from a $13.1 million increase in gross profit on sales and a $14.1 million increase in pawn service charges, partially offset by higher operating costs. The Empeño Fácil segment contributed $0.3 million less store operating income compared to the prior year quarter, as operating expenses at new stores were greater than the growth in net revenues. Our EZMONEY Operations segment contributed $5.4 million greater store operating income, primarily from new products and a decrease in bad debt. After a $1.9 million increase in administrative expenses, a $0.5 million increase in loss on disposal of assets and a $0.3 million increase in depreciation and amortization, operating income increased $16.9 million to $38.9 million. After a $6.1 million increase in income taxes and other smaller items, our consolidated net income improved 73% to $25.7 million from $14.8 million in the prior year quarter.
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Ezcorp Inc. has a market cap of $797.8 million; its shares were traded at around $17.44 with a P/E ratio of 11.1 and P/S ratio of 1.4. Ezcorp Inc. had an annual average earning growth of 35.8% over the past 5 years.EZPW is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES.
Highlight of Business Operations:
In connection with our credit services, the unaffiliated lenders offer customers two types of signature loans. In all stores offering signature loan credit services, customers can obtain payday loans, with principal amounts up to $1,500 but averaging about $555. Terms of these loans are generally less than 30 days, averaging about 18 days, with due dates corresponding with the customers next payday. We typically earn a fee of 20% of the loan amount for our credit services offered in connection with payday loans. In 92 of the U.S. short-term consumer loan stores offering credit services, customers can obtain longer-term unsecured installment loans from the unaffiliated lenders. The installment loans typically carry terms of about five months with ten equal installment payments due on customers paydays. Installment loan principal amounts range from $1,525 to $3,000, but average about $2,070. With each semi-monthly or bi-weekly installment payment, we earn a fee of 10% of the initial loan amount. AtAt December 31, 2009, 393 of our U.S. short-term consumer loan stores and 68 of our U.S. pawn stores offered auto title loans or credit services to assist customers in obtaining auto title loans from unaffiliated lenders. Auto title loans are 30-day loans secured by the titles to customers automobiles. Loan principal amounts range from $100 to $9,000, but average about $700. We earn a fee of 12.5% to 25% of auto title loan amounts.
On December 31, 2008, we acquired Value Financial Services, Inc. (VFS). We acquired VFSs 67 pawn stores, mostly in Florida, for a total acquisition price of $77.7 million, plus the assumption of VFSs debt of $30.4 million, for an aggregate cost of approximately $108.1 million. This excludes $10.7 million of contingent payments made since the acquisition. The contingent payments were recorded as a reduction of Additional paid-in capital in accordance with accounting rules for contingencies based on our stock price. Results of the acquired stores are included in our results of operations beginning January 1, 2009.
In the current quarter, consolidated total revenues increased 44%, or $56.1 million to $184.8 million, compared to the prior year quarter. Same store total revenues increased 12%, with the remainder of the increase coming from new and acquired stores. The overall increase in total consolidated revenues was comprised of a $35.3 million increase in merchandise and jewelry scrapping sales, a $14.4 million increase in pawn service charges, a $2.7 million increase in signature loan fees, a $2.9 million increase in auto title loan fees and a $0.8 million increase in other revenues.
The 78 pawn stores acquired in the December 2008 quarter contributed total revenues of $43.0 million, store operating income of $10.3 million and net income of $6.2 million, or approximately $0.07 diluted earnings per share after the effect of shares issued in the acquisitions. In the prior year quarter, the 11 stores acquired prior to the end of the quarter contributed total revenues of $2.7 million, store operating income of $0.6 million and net income of $0.4 million, with no earnings per share contribution after the effect of shares issued in the acquisition.
In the current quarter, the U.S. Pawn Operations segment, including the contribution from acquisitions, contributed $14.5 million greater store operating income compared to the prior year quarter, primarily from a $13.1 million increase in gross profit on sales and a $14.1 million increase in pawn service charges, partially offset by higher operating costs. The Empeño Fácil segment contributed $0.3 million less store operating income compared to the prior year quarter, as operating expenses at new stores were greater than the growth in net revenues. Our EZMONEY Operations segment contributed $5.4 million greater store operating income, primarily from new products and a decrease in bad debt. After a $1.9 million increase in administrative expenses, a $0.5 million increase in loss on disposal of assets and a $0.3 million increase in depreciation and amortization, operating income increased $16.9 million to $38.9 million. After a $6.1 million increase in income taxes and other smaller items, our consolidated net income improved 73% to $25.7 million from $14.8 million in the prior year quarter.
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