AUSTIN, Texas, Nov. 13 /PRNewswire/ --
EZCORP, Inc. (Nasdaq: EZPW) announced today results for its 2001 fiscal year and fourth quarter, which ended September 30, 2001.
Operating income before depreciation and amortization for the 2001 fiscal year increased $13.3 million over the 2000 fiscal year to approximately $17.8 million. Same store net revenue growth, expense management and the closure of under performing stores contributed to the earnings turnaround. After depreciation and amortization, interest expense, and other non-operating items, EZCORP is reporting a net loss for the 2001 fiscal year of approximately $0.6 million ($0.05 per share) compared to net loss of $18.2 million ($1.52 per share) before the $14.3 million charge for the cumulative effect of the accounting change adopted at the start of the 2000 fiscal year.
Commenting on these results and his outlook for the future, President and Chief Executive Officer, Joseph L. Rotunda, stated, "A year ago, I talked about the actions we were taking to execute a turnaround plan. Last year, we ended the year with approximately $81 million in debt, our administrative expense was $58,000 per store, our operating income before depreciation and amortization was $4.5 million, and our per store loan balance was $146,000. A year later, our debt is down to just over $60 million, our administrative expense is $48,000 per store, our operating income before depreciation and amortization is $17.8 million, and our per store loan balance is $171,000. We have accomplished a tremendous amount in a short period of time. We have made our turnaround plans a reality and the result is a healthy company, well positioned for continued growth and improvement."
For the three months ended September 30, 2001, EZCORP is reporting a net loss of $1.2 million ($0.10 per share) compared to a net loss of $16.1 million ($1.34 per share) for the same period a year ago. Operating income before depreciation and amortization for the fourth quarter increased to $3.2 million compared to an operating loss of $3.2 million for the prior year period.
Rotunda concluded, "The fourth quarter amplified this momentum with a 13% increase in net revenues and operating income before depreciation and amortization up approximately $6.3 million from a year ago. Our plans are to focus now on continued improvement with our store operations while working diligently on growing our revenues. We have demonstrated our viability and are well on our way to becoming the premier provider of financial services to the cash and credit constrained consumer."
EZCORP offers consumers convenient, non-recourse loans collateralized by tangible personal property, and short-term non-collateralized loans, often referred to as payday loans. A secondary, but related, business activity is the selling of previously owned merchandise consisting primarily of forfeited collateral. At September 30, 2001, the Company operated 283 stores in twelve states.
EZCORP, Inc.
