This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

EZCORP's Management Discusses F3Q2012 Results - Earnings Call Transcript

I'll begin with our consolidated results. The third quarters record net income of $28.5 million was up 8% and diluted earnings-per-share of $0.56 were up 6%. For the nine months, net income and earnings-per-share increased 23% and 20%, respectively, on a GAAP basis and 13% and 11% on a non-GAAP basis.

Compared to the prior year, our third quarter results were positively impacted by our international businesses, specifically, continued growth of Empeno Facil and the consolidation for the first time of Crediamigo and Cash Genie. At a consolidated level the big movers, in revenue terms, were jewelry scrapping sales and consumer loan fees. I'll talk about scrap and gold in particular, inside the U.S. and Canada segment discussion.

The 38% in consumer loan fees to $53.5 million in the quarter was driven almost entirely by Crediamigo and Cash Genie. The two acquisitions diversify our unsecured lending business, both geographically and in terms of product mix. The two businesses are also expected to provide accelerated growth in our unsecured lending business.

Lastly at the consolidation level, $4.9 million of the $8.3 million increase in administrative expenses resulted from the two acquisitions. Neither Crediamigo nor Cash Genie, are store-based businesses, and therefore, the majority of their cost-base is included in administrative expenses.

The remainder of the increase includes the company's continued investment in broadening the management team and infrastructure to support the company's globalization strategy and other domestic and profitability initiatives. I'll now move on to the segments.

As you might remember from last quarter, the company's now reporting segment results based on geographic lines. I'll start with our largest segment, U.S. and Canada which includes our 914 stores in the U.S. offering pawn buy/sell, and/or financial services and our 68 Cash Advance and buy/sell stores in Canada.

The U.S. and Canada deliver segment contribution of $44.4 million, a $1.9 million decrease compared with the prior quarter driven by the challenges related to jewelry merchandise sales and scrap sales, specifically gold, inside the U.S. pawn business. We estimate that on a same-store basis, the changing gold metrics, both price and volume, from the year-over-year quarter caused a decrease around $6 million in net revenue for the U.S. and Canada segment. And that's assuming we've been flat for last year.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs