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 Invests In Three Major Growth Drivers

Endorses Cash Converters International Growth Initiatives

The Company also made an additional investment in Cash Converters International Limited to fund growth.  Cash Converters has stated that the new funds will be used to acquire stores within its franchised network, to open new corporate-owned stores and to finance the growth of the Australian and U.K. personal loan books.

EZCORP acquired an additional 12,430,000 ordinary shares at AUS $0.85 per share.  This acquisition was part of a share placement by Cash Converters of 38.5 million shares, and preserves EZCORP's ownership percentage at approximately 33%.

Cash Converters previously announced that its unaudited earnings before interest and taxes (EBIT) for the first quarter of fiscal 2013 (ended September 30, 2012) increased 43% compared to the first quarter of fiscal 2012. Cash Converters operates a global network of almost 700 company-owned and franchised stores in Australia, U.K. and 15 other countries primarily in Europe and Asia.

Mr. Rothamel stated, "We are excited to support Cash Converters' growth initiatives as part of our Change Capital portfolio.  Cash Converters is the buy/sell global leader with a proven platform that we use in Canada and the U.S.  We continue to believe that buy/sell models, such as those offered by Cash Converters and TUYO in Mexico, represent an important alternative channel for our target customers and a meaningful opportunity for growth and diversification.  The Cash Converters team is highly skilled in developing innovative new consumer loan products, and we continue to explore opportunities to partner with them."

Cash Converters has grown substantially while associated with EZCORP.  EZCORP acquired its initial investment in Cash Converters in 2009 and 2010 for $57.8 million.  At September 30, 2012, that investment was valued at $100.7 million.  

Enters the High Potential Arizona Market

EZCORP has also completed the acquisition of 12 USA Pawn & Jewelry stores in Tucson and Bullhead City, Arizona.  This investment marks the Company's initial move into Arizona and its key markets.  The Company intends to grow its presence over time into a market-leading provider of instant cash, by expanding its storefront position, supported by both online and mobile channels.  USA Pawn & Jewelry represents the second set of stores that the Company has purchased from owner Craig McCall, who continues to consult with and assist the Company in executing its multi-market growth strategy.

Mr. Rothamel stated, "The Arizona acquisition demonstrates our continued focus on growing and expanding our core pawn business.  Not only will the addition of these 12 successful stores enhance our profitability in the near-term, it will also provide us with a robust base from which to expand further, through in-fill opportunities and possible additional acquisitions.  Craig is an extremely talented pawn entrepreneur and operator, and we look forward to continuing our relationship to develop further growth opportunities. 

Additional CEO Commentary

Paul E. Rothamel concluded, "These three investments further evidence our desire to use capital to build a company that better meets the diverse needs of our customers.  They continue our highly successful and disciplined growth strategy and will provide additional sources for earnings and shareholder value growth."

2 of 4

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 16,894.68 -65.89 -0.39%
S&P 500 1,969.94 -8.40 -0.42%
NASDAQ 4,426.2690 -23.2950 -0.52%

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