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EZCORP Reports Second Quarter Revenues of $260 Million

EZCORP, Inc. logo

AUSTIN, Texas, April 29, 2014 (GLOBE NEWSWIRE) -- EZCORP, Inc. (Nasdaq:EZPW), a leading provider of easy cash solutions for consumers, today announced its financial results for the second quarter of fiscal 2014.

For the quarter, total revenues were $260 million, with net income of $8 million and earnings per share of $0.15. Excluding the negative impact of certain one-time charges discussed below, as well as minimal losses related to our immature online lending businesses, adjusted net income was $20 million and adjusted earnings per share were $0.36, both non-GAAP measures.

Paul Rothamel, EZCORP's President and Chief Executive Officer, stated, "We are pleased with the continued momentum demonstrated in our core businesses. From an operations standpoint, the second quarter was consistent with the improving year-over-year revenue and expense trends that we reported in the first quarter. As we discussed previously, we expected these year-over-year financial comparisons to be challenging as our pawn and financial services businesses continue to anniversary gold volume declines and regulatory changes respectively. We also continue to believe those quarterly comparisons will improve significantly in the back half of the year.

"We experienced very strong demand at our storefront jewelry business and saw continued growth in our online retail channel. Demand for our financial service offerings in the U.S. and Mexico was also very strong. Retail margins, jewelry scrap margins and bad debt provisions were all at, or ahead of, our expectations. Our expense reduction initiatives were also on track, delivering the quarter-on-quarter improvement that we expected. The demand for our products is greater than it has ever been, as our customers have fewer alternatives to access immediate cash."

Consolidated Financial Highlights — Second Quarter of Fiscal 2014 vs. Prior Year Quarter

  • Total revenues were $260 million compared to $268 million in the same period last year. Excluding an expected decrease in gold scrapping, total revenues were up 4%, driven by excellent jewelry sales and consumer loan fee growth in the United States and Mexico.
  • Adjusted net income for the quarter was $20 million, net of the after-tax impacts of the Albemarle & Bond impairment charge ($6 million), the retirement benefit accrual for our long-time Executive Chairman ($6 million) and performance of our online businesses ($0.6 million).
  • Earning assets, including CSO loans, were $417 million at quarter-end, an increase of 7%, as a result of growth in payroll withholding, installment and auto title loans, as well as inventory in the U.S.
  • Cash and cash equivalents, including restricted cash, were $63 million at quarter-end, with debt of $228 million, including $145 million of Grupo Finmart third-party debt, which is non-recourse to EZCORP.

U.S. & Canada

Pawn —

  • Total merchandise sales increased 4% in total and on a same-store basis driven by growth in storefront jewelry sales and strong online performance. Gross margin on merchandise sales remained strong at 39%. Both the merchandise sales and gross margin metrics compare favorably to the U.S. and Canadian marketplace for the quarter.
  • Jewelry sales were very strong, increasing 27% in total and 25% on a same-store basis, with gross margin of 43%. Coupled with our strong performance in the first quarter, jewelry sales growth was 30% in total and 27% on a same-store basis for the first half of the fiscal year.
  • Online sales grew 63% over the same quarter last year and accounted for roughly 8% of the segment's total merchandise sales. Gross margin remained strong at 44% as compared to 43% for the same quarter last year.
  • Pawn loan balances were $113 million at quarter-end, down 6% in total, driven primarily by a decrease in average loan size related to jewelry.This expected decline moderated in April, and we expect pawn loan balances to stabilize and be roughly flat by the end of the year.
  • Redemption rates were 85%, up 100 basis points compared to a year ago, driven by a 200 basis point increase in the jewelry redemption rate to 89%, while the general merchandise redemption rate remained flat at 79%.

Financial Services —

  • Total loan balances including CSO loans, net of reserves, were $43 million at quarter-end, a 17% increase over the same quarter last year. This increase was driven by solid growth at our 500 storefronts as well as our online channel. For the quarter, including CSO loans, installment loans were up 77% and auto title loans grew 22% while traditional payday loans declined 12%.
  • Loan fees were $46 million, up 8%. The gap in growth between loan balances and fees year-over-year is the result of a shift in product mix to lower yielding products driven by a competitive marketplace and regulatory impact. We expect to grow loan balances aggressively as consumer demand for our loan products remains high.
  • Bad debt as a percentage of fees was 20%, up 500 basis points driven primarily by the impact of regulatory changes at the local and federal level. Secondarily, new store growth and the online penetration negatively impacted the year-over-year comparisons. We expect both of these factors to moderate over the next several quarters as the new stores naturally mature and online bad debt continues its quarter-over-quarter improvement.

Latin America

Payroll Withholding Lending —

  • Total fees were $14 million, up 21% as compared to the same period last year.
  • Total loan balances at the end of the quarter were $113 million, up 23%, driven primarily by significant growth in new loan originations and greater penetration in existing contracts. Grupo Finmart now has approximately 100 active contracts providing access to over 6 million customers.
  • Bad debt as a percentage of fees was 3%, ahead of our expectations.
  • Financing activities for the quarter included a structured asset sale by Grupo Finmart and a public securitization of a portion of its receivables. The asset sale accelerated $16 million in cash flow, which was received in April, as well as a $5 million gain included in "Other Revenues." The securitization of $56 million, our second securitization in twelve months, reduced the cost of capital for the receivables financed to 6.3%. We incurred approximately $1 million in expenses during the quarter associated with this securitization. We expect to continue to use these and other types of structured transactions to finance the rapidly growing Grupo Finmart business going forward.

Pawn —

  • Pawn loan balances were $16 million, down 16%. Pawn service fees were down 7% during the quarter as Empeño Fácil focused on better quality lending. The yield on the loan balance improved 200 basis points to 200%.
  • Empeño Fácil's merchandise sales decreased 1% compared to last year with margins of 38%. We expect to continue to see a challenging marketplace for the foreseeable future as more jewelry-only providers attempt to enter the general merchandise pawn market.

Other International

Online Lending —

  • Cash Genie, our U.K. online lending business, reported a nominal operating loss, showing continued improvement as compared to an operating loss of approximately $2 million in the first quarter of fiscal 2014. We expect to spend nearly $1 million in the second half of the year in direct costs associated with the implementation of the new FCA regulations.

Strategic Affiliates —

  • Our income from affiliates was down $4 million, 88% year-over-year. This decrease was driven by a profit decline at Cash Converters International in the first half of their fiscal year due to the effect of the transition to new regulatory requirements in Australia. Cash Converters recently announced significantly improved performance in their third fiscal quarter which will be reflected in our third quarter results. Income from affiliates was also impacted by a decrease from Albemarle & Bond as it is no longer reporting any earnings. In addition, we adjusted our remaining investment in Albemarle & Bond down to zero, resulting in a $6 million after-tax write off.

CEO Commentary

Mr. Rothamel added, "Historically, this time of year is a challenging time for our customers and their need for cash is very high. This usually manifests itself in rapidly growing loan balances at EZCORP, and this year is no different. In fact, based on what we are seeing from our customers, we continue to expect that our year-over-year financial comparisons will improve in the second half of the fiscal year.

"We will continue to focus on our day-to-day execution of our unique loan and retail offerings. We believe that we are well positioned in the marketplace to continue to differentiate ourselves to the sophisticated consumer. We are confident that our strategy and operational efforts will deliver strong shareholder returns over the long term."

The company provides supplemental information on its website. For additional content, please see "Investor Resources & Supplemental Information" at http://investors.ezcorp.com/.

About EZCORP

EZCORP, Inc. is a leader in delivering easy cash solutions to our customers across channels, products, services and markets. With approximately 7,500 team members and approximately 1,400 locations and branches, we give our customers multiple ways to access instant cash, including pawn loans and consumer loans in the United States, Mexico, Canada and the United Kingdom. We offer these products through four primary channels: in-store, online, at the worksite and through our mobile platform. At our pawn and buy/sell stores and online, we also sell merchandise, primarily collateral forfeited from pawn lending operations and used merchandise purchased from customers.

EZCORP owns controlling interests in Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R. (doing business under the names "Crediamigo" and "Adex"), a leading provider of payroll deduction loans in Mexico; and in Renueva Commercial, S.A.P.I. de C.V., an operator of buy/sell stores in Mexico under the name "TUYO." The company also has a significant investment in Cash Converters International Limited (CCV.ASX), which franchises and operates a worldwide network of over 700 stores that provide personal financial services and sell pre-owned merchandise.

For the latest information on EZCORP, please visit our website at: http://investors.ezcorp.com/.

Forward-Looking Statements

This announcement contains certain forward-looking statements regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including fluctuations in gold prices or the desire of our customers to pawn or sell their gold items, changes in the regulatory environment, changing market conditions in the overall economy and the industry, and consumer demand for the company's services and merchandise. For a discussion of these and other factors affecting the company's business and prospects, see the company's annual, quarterly and other reports filed with the Securities and Exchange Commission.

EZCORP, Inc.
Highlights of Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
Three Months Ended
March 31,
Six Months Ended
March 31,
2014 2013 2014 2013
Revenues:
Merchandise sales $ 103,454 $ 100,082 $ 209,041 $ 194,686
Jewelry scrapping sales 26,193 42,582 53,896 87,291
Pawn service charges 59,162 62,015 123,295 127,415
Consumer loan fees and interest 64,785 60,751 131,114 123,885
Other revenues 6,106 2,684 11,711 7,498
Total revenues 259,700 268,114 529,057 540,775
Merchandise cost of goods sold 63,857 58,716 127,445 113,661
Jewelry scrapping cost of goods sold 20,111 29,311 40,131 60,616
Consumer loan bad debt 10,422 8,457 28,854 21,978
Net revenues 165,310 171,630 332,627 344,520
Operating expenses:
Operations 108,064 101,831 220,833 205,116
Administrative 20,032 8,603 35,777 22,274
Depreciation 7,539 7,071 15,005 13,631
Amortization 1,975 1,316 3,915 2,030
Loss (gain) on sale or disposal of assets 342 13 (5,948) 42
Total operating expenses 137,952 118,834 269,582 243,093
Operating income 27,358 52,796 63,045 101,427
Interest expense, net 5,275 3,753 9,607 7,390
Equity in net income of unconsolidated affiliates (492) (4,125) (1,763) (9,163)
Impairment of investments 7,940 7,940
Other expense (income) 1,324 405 1,156 (96)
Income from continuing operations before income taxes 13,311 52,763 46,105 103,296
Income tax expense 4,204 16,273 14,085 32,945
Income from continuing operations, net of tax 9,107 36,490 32,020 70,351
(Loss) income from discontinued operations, net of tax (40) (1,610) 1,442 (3,316)
Net income 9,067 34,880 33,462 67,035
Net income from continuing operations attributable to redeemable noncontrolling interest 1,075 899 2,901 2,337
Net income attributable to EZCORP, Inc. $ 7,992 $ 33,981 $ 30,561 $ 64,698
Diluted earnings (loss) per share attributable to EZCORP, Inc.:
Continuing operations $ 0.15 $ 0.66 $ 0.53 $ 1.28
Discontinued operations (0.03) 0.03 (0.06)
Diluted earnings per share $ 0.15 $ 0.63 $ 0.56 $ 1.22
Weighted average shares outstanding diluted 54,586 54,252 54,583 53,172
Net income from continuing operations attributable to EZCORP, Inc. $ 8,032 $ 35,591 $ 29,119 $ 68,014
(Loss) income from discontinued operations attributable to EZCORP, Inc. (40) (1,610) 1,442 (3,316)
Net income attributable to EZCORP, Inc. $ 7,992 $ 33,981 $ 30,561 $ 64,698
EZCORP, Inc.
Highlights of Consolidated Balance Sheets (Unaudited)
(in thousands)
March 31,
2014 2013
Assets:
Current assets:
Cash and cash equivalents $ 32,198 $ 41,443
Restricted cash 21,104 1,204
Pawn loans 128,683 138,380
Consumer loans, net 75,501 36,596
Pawn service charges receivable, net 24,733 25,388
Consumer loan fees and interest receivable, net 40,033 33,507
Inventory, net 129,013 116,517
Deferred tax asset 13,825 15,716
Income tax receivable 17,702 3,079
Prepaid expenses and other assets 54,321 42,421
Total current assets 537,113 454,251
Investments in unconsolidated affiliates 88,685 147,232
Property and equipment, net 111,419 118,979
Restricted cash, non-current 9,575 2,197
Goodwill 435,048 438,016
Intangible assets, net 69,016 60,387
Non-current consumer loans, net 61,724 77,414
Deferred tax asset 9,619
Other assets, net 30,037 20,723
Total assets $ 1,352,236 $ 1,319,199
Liabilities and stockholders' equity:
Current liabilities:
Current maturities of long-term debt $ 14,228 $ 34,912
Current capital lease obligations 533 533
Accounts payable and other accrued expenses 70,812 63,298
Other current liabilities 12,121 36,096
Customer layaway deposits 8,986 8,191
Total current liabilities 106,680 143,030
Long-term debt, less current maturities 214,254 137,376
Long-term capital lease obligations 106 648
Deferred tax liability 10,104
Deferred gains and other long-term liabilities 18,613 19,872
Total liabilities 339,653 311,030
Temporary equity:
Redeemable noncontrolling interest 58,107 52,982
EZCORP, Inc. stockholders' equity 954,476 955,187
Total liabilities and stockholders' equity $ 1,352,236 $ 1,319,199
EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands)
Three Months Ended March 31, 2014
U.S. & Canada Latin America Other
International
Total
Segments
Corporate
Items
Consolidated
Revenues:
Merchandise sales $ 89,937 $ 13,517 $ — $ 103,454 $ 103,454
Jewelry scrapping sales 24,697 1,496 26,193 26,193
Pawn service charges 52,154 7,008 59,162 59,162
Consumer loan fees and interest 45,657 14,328 4,800 64,785 64,785
Other revenues 1,009 5,065 32 6,106 6,106
Total revenues 213,454 41,414 4,832 259,700 259,700
Merchandise cost of goods sold 54,890 8,967 63,857 63,857
Jewelry scrapping cost of goods sold 18,793 1,318 20,111 20,111
Consumer loan bad debt 9,121 454 847 10,422 10,422
Net revenues 130,650 30,675 3,985 165,310 165,310
Operating expenses (income):
Operations 85,926 18,086 4,052 108,064 108,064
Administrative 20,032 20,032
Depreciation 4,295 1,450 105 5,850 1,689 7,539
Amortization 657 607 25 1,289 686 1,975
(Gain) loss on sale or disposal of assets (441) (2) 159 (284) 626 342
Interest (income) expense, net (16) 4,246 4,230 1,045 5,275
Equity in net income of unconsolidated affiliates (492) (492) (492)
Impairment of investments 7,940 7,940 7,940
Other (income) expense (11) 375 364 960 1,324
Segment contribution (loss) $ 40,229 $ 6,299 $ (8,179) $ 38,349
Income (loss) from continuing operations before income taxes $ 38,349 $ (25,038) $ 13,311
EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands)
Three Months Ended March 31, 2013
U.S. & Canada Latin America Other
International
Segments
Total
Corporate
Items
Consolidated
Revenues:
Merchandise sales $ 86,409 $ 13,673 $ — $ 100,082 $ 100,082
Jewelry scrapping sales 40,501 2,081 42,582 42,582
Pawn service charges 54,500 7,515 62,015 62,015
Consumer loan fees and interest 42,266 11,842 6,643 60,751 60,751
Other revenues 1,620 205 859 2,684 2,684
Total revenues 225,296 35,316 7,502 268,114 268,114
Merchandise cost of goods sold 50,819 7,897 58,716 58,716
Jewelry scrapping cost of goods sold 27,563 1,748 29,311 29,311
Consumer loan bad debt expense (benefit) 6,441 (661) 2,677 8,457 8,457
Net revenues 140,473 26,332 4,825 171,630 171,630
Operating expenses (income):
Operations 82,827 15,335 3,669 101,831 101,831
Administrative 8,603 8,603
Depreciation 4,030 1,257 99 5,386 1,685 7,071
Amortization 622 416 23 1,061 255 1,316
(Gain) loss on sale or disposal of assets (1) 14 13 13
Interest expense (income), net 15 2,802 (1) 2,816 937 3,753
Equity in net income of unconsolidated affiliates (4,125) (4,125) (4,125)
Other (income) expense (1) (315) (316) 721 405
Segment contribution $ 52,981 $ 6,823 $ 5,160 $ 64,964
Income (loss) from continuing operations before income taxes $ 64,964 $ (12,201) $ 52,763
EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands)
Six Months Ended March 31, 2014
U.S. & Canada Latin America Other
International
Total
Segments
Corporate
Items
Consolidated
Revenues:
Merchandise sales $ 178,827 $ 30,214 $ — $ 209,041 $ — $ 209,041
Jewelry scrapping sales 50,622 3,274 53,896 53,896
Pawn service charges 109,223 14,072 123,295 123,295
Consumer loan fees and interest 94,359 28,621 8,134 131,114 131,114
Other revenues 1,494 10,187 30 11,711 11,711
Total revenues 434,525 86,368 8,164 529,057 529,057
Merchandise cost of goods sold 107,937 19,508 127,445 127,445
Jewelry scrapping cost of goods sold 37,363 2,768 40,131 40,131
Consumer loan bad debt 24,677 1,845 2,332 28,854 28,854
Net revenues 264,548 62,247 5,832 332,627 332,627
Operating expenses (income):
Operations 176,608 36,468 7,757 220,833 220,833
Administrative 35,777 35,777
Depreciation 8,562 2,909 208 11,679 3,326 15,005
Amortization 1,309 1,224 51 2,584 1,331 3,915
(Gain) loss on sale or disposal of assets (6,759) 4 159 (6,596) 648 (5,948)
Interest (income) expense, net (11) 7,394 (2) 7,381 2,226 9,607
Equity in net income of unconsolidated affiliates (1,763) (1,763) (1,763)
Impairment of investments 7,940 7,940 7,940
Other (income) expense (41) 346 305 851 1,156
Segment contribution (loss) $ 84,839 $ 14,289 $ (8,864) $ 90,264
Income (loss) from continuing operations before income taxes $ 90,264 $ (44,159) $ 46,105
EZCORP, Inc.
Operating Segment Results (Unaudited)
(in thousands)
Six Months Ended March 31, 2013
U.S. & Canada Latin America Other
International
Segments
Total
Corporate
Items
Consolidated
Revenues:
Merchandise sales $ 166,113 $ 28,573 $ — $ 194,686 $ — $ 194,686
Jewelry scrapping sales 82,489 4,802 87,291 87,291
Pawn service charges 112,697 14,718 127,415 127,415
Consumer loan fees and interest 86,594 23,719 13,572 123,885 123,885
Other revenues 4,411 1,846 1,241 7,498 7,498
Total revenues 452,304 73,658 14,813 540,775 540,775
Merchandise cost of goods sold 97,141 16,520 113,661 113,661
Jewelry scrapping cost of goods sold 56,637 3,979 60,616 60,616
Consumer loan bad debt expense (benefit) 17,369 (1,709) 6,318 21,978 21,978
Net revenues 281,157 54,868 8,495 344,520 344,520
Operating expenses (income):
Operations 167,399 29,970 7,747 205,116 205,116
Administrative 22,274 22,274
Depreciation 7,721 2,362 170 10,253 3,378 13,631
Amortization 769 851 49 1,669 361 2,030
Loss on sale or disposal of assets 28 14 42 42
Interest expense (income), net 32 5,415 (1) 5,446 1,944 7,390
Equity in net income of unconsolidated affiliates (9,163) (9,163) (9,163)
Other (income) expense (5) (295) (69) (369) 273 (96)
Segment contribution $ 105,213 $ 16,551 $ 9,762 $ 131,526
Income (loss) from continuing operations before income taxes $ 131,526 $ (28,230) $ 103,296
EZCORP, Inc.
Store Count Activity
Three Months Ended March 31, 2014
Company-owned Stores Franchises
U.S. & Canada Latin America Other
International
Consolidated
Beginning of period 1,028 316 1,344 6
De novo 9 2 11
Acquired
Sold, combined, or closed (1)
End of period 1,037 318 1,355 5
Three Months Ended March 31, 2013
Company-owned Stores Franchises
U.S. & Canada Latin America Other
International
Consolidated
Beginning of period 1,050 319 1,369 10
De novo 12 27 39
Acquired
Sold, combined, or closed (4) (1) (5) (1)
End of period 1,058 345 1,403 9
Discontinued operations (50) (57) (107)
Stores in continuing operations: 1,008 288 1,296 9
Six Months Ended March 31, 2014
Company-owned Stores Franchises
U.S. & Canada Latin America Other
International
Consolidated
Beginning of period 1,030 312 1,342 8
De novo 14 6 20
Acquired
Sold, combined, or closed (7) (7) (3)
End of period 1,037 318 1,355 5
Six Months Ended March 31, 2013
Company-owned Stores Franchises
U.S. & Canada Latin America Other
International
Consolidated
Beginning of period 987 275 1,262 10
De novo 63 51 114
Acquired 12 20 32
Sold, combined, or closed (4) (1) (5) (1)
End of period 1,058 345 1,403 9
Discontinued operations (50) (57) (107)
Stores in continuing operations: 1,008 288 1,296 9

EZCORP, Inc.
Reconciliation of GAAP to Non-GAAP Results (Unaudited)
(in thousands, except per share data)

The following tables provide a reconciliation of the differences between the reported or projected non-GAAP financial measures for the periods indicated and the most comparable GAAP financial measures. The non-GAAP financial measures presented may not be directly comparable to similarly titled measures reported by other companies and their usefulness for such purposes are therefore limited. EZCORP management believes presentation of the non-GAAP financial measures enhances investors' ability to analyze the Company's operating results. However, non-GAAP financial measures are not an alternative to GAAP financial measures and should be read only in conjunction with financial measures presented on a GAAP basis.

Three Months Ended March 31, 2014 Three Months Ended March 31, 2013
GAAP Non-GAAP
Adjustment
Non-GAAP GAAP Non-GAAP
Adjustment
Non-GAAP
Segment Contribution:
U.S. & Canada* $ 40,229 $ 743 $ 40,972 $ 52,981 $ 2,793 $ 55,774
Latin America 6,299 6,299 6,823 6,823
Other International** (8,179) 8,448 269 5,160 (1,374) 3,786
Total Segment Contribution 38,349 9,191 47,540 64,964 1,419 66,383
Administrative expense (income)*** 20,032 (7,951) 12,081 8,603 8,603
Depreciation 1,689 1,689 1,685 1,685
Amortization 686 686 255 255
Loss on sale or disposal of assets 626 626
Interest expense, net 1,045 1,045 937 937
Other expense 960 960 721 721
Income from continuing operations before income taxes 13,311 17,142 30,453 52,763 1,419 54,182
Income tax expense 4,204 5,414 9,618 16,273 438 16,711
Income from continuing operations, net of tax 9,107 11,728 20,835 36,490 981 37,471
Loss from discontinued operations, net of tax (40) (40) (1,610) (1,610)
Net income 9,067 11,728 20,795 34,880 981 35,861
Net income from continuing operations attributable to redeemable noncontrolling interest 1,075 1,075 899 240 1,139
Net income attributable to EZCORP, Inc. $ 7,992 $ 11,728 $ 19,720 $ 33,981 $ 741 $ 34,722
Weighted Average Shares Outstanding - Diluted 54,586 54,586 54,252 54,252
EPS - Diluted $ 0.15 $ 0.21 $ 0.36 $ 0.63 $ 0.01 $ 0.64
* The U.S. & Canada non-GAAP adjustment is due to losses in our EZOnline business.
** The Other International non-GAAP adjustment includes the Albemarle & Bond impairment charge and its related foreign currency exchange loss, as well as results from our online business in the U.K. during the three months ended March 31, 2014 and our equity in the net income of Albemarle & Bond and results from our online business in the U.K. for the three months ended March 31, 2013
*** The Administrative expense (income) non-GAAP adjustment is due to the compensatory benefits charge recorded in the second quarter of fiscal 2014 related to Sterling B. Brinkley's retirement.
Six Months Ended March 31, 2014 Six Months Ended March 31, 2013
GAAP Non-GAAP
Adjustment
Non-GAAP GAAP Non-GAAP
Adjustment
Non-GAAP
Segment Contribution:
U.S. & Canada* $ 84,839 $ 3,521 $ 88,360 $ 105,213 $ 3,189 $ 108,402
Latin America 14,289 14,289 16,551 16,551
Other International** (8,864) 11,372 2,508 9,762 (2,251) 7,511
Total Segment Contribution 90,264 14,893 105,157 131,526 938 132,464
Administrative expense (income)*** 35,777 (7,951) 27,826 22,274 22,274
Depreciation 3,326 3,326 3,378 3,378
Amortization 1,331 1,331 361 361
Loss on sale or disposal of assets 648 648
Interest expense, net 2,226 2,226 1,944 1,944
Other expense 851 851 273 273
Income from continuing operations before income taxes 46,105 22,844 68,949 103,296 938 104,234
Income tax expense 14,085 5,205 19,290 32,945 440 33,385
Income from continuing operations, net of tax 32,020 17,639 49,659 70,351 498 70,849
Income (loss) from discontinued operations, net of tax 1,442 1,442 (3,316) (3,316)
Net income 33,462 17,639 51,101 67,035 498 67,533
Net income (loss) from continuing operations attributable to redeemable noncontrolling interest 2,901 2,901 2,337 (114) 2,223
Net income attributable to EZCORP, Inc. $ 30,561 $ 17,639 $ 48,200 $ 64,698 $ 612 $ 65,310
Weighted Average Shares Outstanding - Diluted 54,583 54,583 53,172 53,172
EPS - Diluted $ 0.56 $ 0.32 $ 0.88 $ 1.22 $ 0.01 $ 1.23
* The U.S. & Canada non-GAAP adjustment is due to losses in our EZOnline business for six months of operations in 2014 and four months of operations in 2013.
** The Other International non-GAAP adjustment includes the Albemarle & Bond impairment charge and its related foreign currency exchange loss, as well as results from our online business in the U.K. during the six months ended March 31, 2014 and our equity in the net income of Albemarle & Bond and results from our online business in the U.K. for the six months ended March 31, 2013.
*** The Administrative expense (income) non-GAAP adjustment is due to the compensatory benefits charge recorded in the second quarter of fiscal 2014 related to Sterling B. Brinkley's retirement.

CONTACT: Mark Trinske Vice President, Investor Relations and Communications EZCORP, Inc. (512) 314-2220 Investor_Relations@ezcorp.com http://investors.ezcorp.com/

Source:EZCORP, Inc.