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Condensed Consolidating Financial Information

15 Months Ended

Dec. 31, 2011

Condensed Consolidating Financial Information [Abstract]

Condensed Consolidating Financial Information

Note N: Condensed Consolidating Financial Information

On February 3, 2012, we filed with the United States Securities and Exchange Commission a “shelf” registration statement on Form S-3 registering the offer and sale of an indeterminate amount of a variety of securities, including debt securities. Unless otherwise indicated in connection with a particular offering of debt securities, each of our domestic subsidiaries will fully and unconditionally guarantee on a joint and several basis our payment obligations under such debt securities.

In accordance with Rule 3-10(d) of Regulation S-X, the following presents condensed consolidating financial information as of December 31, 2011 and 2010, and September 30, 2011 and for current and prior year fiscal quarters for EZCORP, Inc. (the “Parent”), each of the Parent’s domestic subsidiaries (the “Guarantor Subsidiaries”) on a combined basis and each of the Parent’s other subsidiaries (the “Non-Guarantor Subsidiaries”) on a combined basis. Eliminating entries presented are necessary to combine the groups of entities.

Condensed Consolidating Balance Sheets


	December 31, 2011
	(Unaudited)
	(In thousands)
	Parent			Subsidiary Guarantors			Other Subsidiaries			Eliminations			Consolidated
Assets:
Current assets:
Cash and cash equivalents	$	703		$	15,749		$	6,416		$	—		$	22,868
Pawn loans		—			140,386			9,674			—			150,060
Signature loans, net		—			10,386			2,290			—			12,676
Auto title loans, net		—			3,512			—			—			3,512
Pawn service charges receivable, net		—			27,061			1,532			—			28,593
Signature loan fees receivable, net		—			6,002			204			—			6,206
Auto title loan fees receivable, net		—			1,405			—			—			1,405
Inventory, net		—			90,175			10,144			—			100,319
Deferred tax asset		12,747			5,422			—			—			18,169
Receivable from affiliates		86,590			(86,590	)		—			—			—
Prepaid expenses and other assets		17			35,777			3,120			—			38,914

Total current assets		100,057			249,285			33,380			—			382,722

Investments in unconsolidated affiliates		68,204			49,616			—			—			117,820
Investments in subsidiaries		84,303			44,573			—			(128,876	)		—
Property and equipment, net		—			62,009			22,504			—			84,513
Goodwill		—			203,507			8,968			—			212,475
Other assets, net		2,038			22,484			3,827			—			28,349

Total assets	$	254,602		$	631,474		$	68,679		$	(128,876	)	$	825,879

Liabilities and stockholders’ equity:
Current liabilities:
Accounts payable and other accrued expenses	$	46		$	49,700		$	7,705		$	—		$	57,451
Customer layaway deposits		—			5,845			307			—			6,152
Intercompany payables		(219,474	)		193,339			26,145			(10	)		—
Income taxes payable		21,667			(5,156	)		(3,839	)		—			12,672

Total current liabilities		(197,761	)		243,728			30,318			(10	)		76,275

Long-term debt, less current maturities		40,500			—			—			—			40,500
Deferred tax liability		6,481			1,371			872			—			8,724
Deferred gains and other long-term liabilities		—			1,998			(1	)		—			1,997

Total liabilities		(150,780	)		247,097			31,189			(10	)		127,496

Commitments and contingencies

Stockholders’ equity:
Class A Non-voting Common Stock, par value $.01 per share;		464			12			—			(2	)		474
Class B Voting Common Stock, convertible, par value $.01 per share;		30			(1	)		1			—			30
Additional paid-in capital		221,534			100,431			50,818			(128,864	)		243,919
Retained earnings		180,299			285,039			(3,891	)					461,447
Accumulated other comprehensive income (loss)		3,055			(1,104	)		(9,438	)		—			(7,487	)

Total stockholders’ equity		405,382			384,377			37,490			(128,866	)		698,383

Total liabilities and stockholders’ equity	$	254,602		$	631,474		$	68,679		$	(128,876	)	$	825,879


	December 31, 2010
	(Unaudited)
	(In thousands)
	Parent			Subsidiary Guarantors			Other Subsidiaries			Eliminations			Consolidated
Assets:
Current assets:
Cash and cash equivalents	$	—		$	20,411		$	3,497		$	—		$	23,908
Pawn loans		—			117,583			6,805			—			124,388
Signature loans, net		—			10,451			1,502			—			11,953
Auto title loans, net		—			3,307			—			—			3,307
Pawn service charges receivable, net		—			23,045			1,023			—			24,068
Signature loan fees receivable, net		—			6,026			115			—			6,141
Auto title loan fees receivable, net		—			1,600			—			—			1,600
Inventory, net		—			71,874			5,803			—			77,677
Deferred tax asset		18,258			4,990						—			23,248
Receivable from affiliates		15,100			(15,100	)		—			—			—
Income taxes receivable		3,185			(3,185	)		—			—			—
Prepaid expenses and other assets		25			17,680			3,019			—			20,724

Total current assets		36,568			258,682			21,764			—			317,014

Investments in unconsolidated affiliates		63,275			45,684			—						108,959
Investments in subsidiaries		76,999			9,095			—			(86,094	)		—
Property and equipment, net		—			52,042			14,599			—			66,641
Deferred tax asset, non-current		1,121			(1,121	)		—			—			—
Goodwill		—			121,048			7,133			—			128,181
Other assets, net		118			21,985			2,149			—			24,252

Total assets	$	178,081		$	507,415		$	45,645		$	(86,094	)	$	645,047

Liabilities and stockholders’ equity:
Current liabilities:
Current maturities of long-term debt	$	10,000		$	—		$	—		$	—		$	10,000
Accounts payable and other accrued expenses		107			44,651			4,228			—			48,986
Customer layaway deposits		—			5,785			165			—			5,950
Intercompany payables		(237,528	)		203,963			33,515			50			—
Income taxes payable		13,107			(5,153	)		(2,687	)		—			5,267

Total current liabilities		(214,314	)		249,246			35,221			50			70,203

Long-term debt, less current maturities		12,500			—			—			—			12,500
Deferred tax liability		1,590			18			11			—			1,619
Deferred gains and other long-term liabilities		—			2,418			1			—			2,419

Total liabilities		(200,224	)		251,682			35,233			50			86,741

Commitments and contingencies

Stockholders’ equity:
Class A Non-voting Common Stock, par value $.01 per share;		458			11			—						469
Class B Voting Common Stock, convertible, par value $.01 per share;		30			(1	)		1			—			30
Additional paid-in capital		213,952			86,641			15,340			(86,144	)		229,789
Retained earnings		160,665			169,597			(2,897	)		—			327,365
Accumulated other comprehensive income (loss)		3,200			(515	)		(2,032	)		—			653

Total stockholders’ equity		378,305			255,733			10,412			(86,144	)		558,306

Total liabilities and stockholders’ equity	$	178,081		$	507,415		$	45,645		$	(86,094	)	$	645,047


	September 30, 2011
	(Unaudited)
	(In thousands)
	Parent			Subsidiary Guarantors			Other Subsidiaries			Eliminations			Consolidated
Assets:
Current assets:
Cash and cash equivalents	$	—		$	20,860		$	3,109		$	—		$	23,969
Pawn loans		—			134,457			10,861			—			145,318
Signature loans, net		—			9,304			2,085			—			11,389
Auto title loans, net		—			3,222			—			—			3,222
Pawn service charges receivable, net		—			24,792			1,663			—			26,455
Signature loan fees receivable, net		—			5,215			133			—			5,348
Auto title loan fees receivable, net		—			1,427			—			—			1,427
Inventory, net		—			81,277			9,096			—			90,373
Deferred tax asset		12,728			5,397			—			—			18,125
Receivable from affiliates		66,450			(66,450	)		—			—			—
Income taxes receivable		—			—			—			—			—
Prepaid expenses and other assets		29			25,976			4,606			—			30,611

Total current assets		79,207			245,477			31,553			—			356,237

Investments in unconsolidated affiliates		71,958			48,361			—			—			120,319
Investments in subsidiaries		84,303			44,323			—			(128,626	)		—
Property and equipment, net		—			59,434			19,064			—			78,498
Deferred tax asset, non-current		—			—			—			—			—
Goodwill		—			163,897			9,309			—			173,206
Other assets, net		2,147			22,219			3,822			2			28,190

Total assets	$	237,615		$	583,711		$	63,748		$	(128,624	)	$	756,450

Current liabilities:
Accounts payable and other accrued expenses	$	13		$	50,871		$	6,516		$	—		$	57,400
Customer layaway deposits		—			5,711			465			—			6,176
Intercompany payables		(199,190	)		178,375			20,761			54			—
Income taxes payable		9,552			(5,150	)		(3,709	)		—			693

Total current liabilities		(189,625	)		229,807			24,033			54			64,269

Long-term debt, less current maturities		17,500			—			—			—			17,500
Deferred tax liability		5,940			1,563			828			—			8,331
Deferred gains and other long-term liabilities		—			2,102			—			—			2,102

Total liabilities		(166,185	)		233,472			24,861			54			92,202

Commitments and contingencies

Stockholders’ equity:
Class A Non-voting Common Stock, par value $.01 per share;		461			12			—			(2	)		471
Class B Voting Common Stock; convertible, par value $.01 per share;		30			(1	)		1			—			30
Additional paid-in capital		221,526			98,980			50,568			(128,676	)		242,398
Retained earnings		174,860			251,418			(4,183	)		—			422,095
Accumulated other comprehensive income (loss)		6,923			(170	)		(7,499	)		—			(746	)

Total stockholders’ equity		403,800			350,239			38,887			(128,678	)		664,248

Total liabilities and stockholders’ equity	$	237,615		$	583,711		$	63,748		$	(128,624	)	$	756,450

Condensed Consolidating Statements of Operations


	Three Months Ended December 31, 2011
	(Unaudited)
	(In thousands)
	Parent			Subsidiary Guarantors			Other Subsidiaries			Eliminations			Consolidated
Revenues:
Sales	$	—		$	128,546		$	14,751		$	—		$	143,297
Pawn service charges		—			54,370			5,422			—			59,792
Signature loan fees		—			36,950			2,671			—			39,621
Auto title loan fees		—			5,467			—			—			5,467
Other		20,139			850			318			(20,611	)		696

Total revenues		20,139			226,183			23,162			(20,611	)		248,873

Cost of goods sold		—			76,121			7,699			—			83,820
Signature loan bad debt		—			9,267			834			—			10,101
Auto title loan bad debt		—			924			—			—			924

Net revenues		20,139			139,871			14,629			(20,611	)		154,028

Operating Expenses:
Operations		—			65,009			9,492			—			74,501
Administrative		—			17,688			2,495			(472	)		19,711
Depreciation and amortization		—			4,147			1,108			—			5,255
(Gain) / loss on sale or disposal of assets		—			(224	)		23			—			(201	)

Total operating expenses		—			86,620			13,118			(472	)		99,266

Operating income		20,139			53,251			1,511			(20,139	)		54,762

Interest income		—			(9	)		(38	)		8			(39	)
Interest expense		(1,873	)		2,462			9			(8	)		590
Equity in net income of unconsolidated affiliates		(2,336	)		(1,825	)		—			—			(4,161	)
Other		—			(1,137	)		18			—			(1,119	)

Income before income taxes		24,348			53,760			1,522			(20,139	)		59,491
Income tax expense		18,909			20,139			1,230			(20,139	)		20,139

Net income	$	5,439		$	33,621		$	292		$	—		$	39,352


	Three Months Ended December 31, 2010
	(Unaudited)
	(In thousands)
	Parent			Subsidiary Guarantors			Other Subsidiaries			Eliminations			Consolidated
Revenues:
Sales	$	—		$	113,353		$	9,192		$	—		$	122,545
Pawn service charges		—			46,436			3,374			—			49,810
Signature loan fees		—			38,468			1,598			—			40,066
Auto title loan fees		—			6,244			—			—			6,244
Other		15,100			148			13			(15,100	)		161

Total revenues		15,100			204,649			14,177			(15,100	)		218,826

Cost of goods sold		—			67,752			5,814			—			73,566
Signature loan bad debt		—			9,484			562			—			10,046
Auto title loan bad debt		—			982			—			—			982

Net revenues		15,100			126,431			7,801			(15,100	)		134,232

Operating Expenses:
Operations		—			58,260			6,244			—			64,504
Administrative		—			25,203			935			—			26,138
Depreciation and amortization		—			3,427			752			—			4,179
(Gain) / loss on sale or disposal of assets		—			(6	)		13			—			7

Total operating expenses		—			86,884			7,944			—			94,828

Operating income		15,100			39,547			(143	)		(15,100	)		39,404

Interest income		—			(63	)		—			60			(3	)
Interest expense		(2,311	)		2,610			61			(60	)		300
Equity in net income of unconsolidated affiliates		(1,678	)		(1,689	)		—			—			(3,367	)
Other		—			(60	)		(1	)		—			(61	)

Income before income taxes		19,089			38,749			(203	)		(15,100	)		42,535
Income tax expense		14,753			15,106			347			(15,100	)		15,106

Net income	$	4,336		$	23,643		$	(550	)	$	—		$	27,429

Condensed Consolidating Statement of Cash Flows


	Three Months Ended December 31, 2011
	(In thousands)
	Parent			Subsidiary Guarantors			Other Subsidiaries			Consolidated
Operating Activities:
Net income		5,439			33,621			292			39,352
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		—			4,147			1,108			5,255
Signature loan and auto title loan loss provisions		—			3,193			842			4,035
Deferred taxes		522			(191	)		(74	)		257
Net loss/(gain) on sale or disposal of assets		—			(224	)		23			(201	)
Stock compensation		—			1,513			—			1,513
Income from investments in unconsolidated affiliates		(2,336	)		(1,825	)		—			(4,161	)
Changes in operating assets and liabilities, net of business acquisitions:
Service charges and fees receivable, net		—			(2,389	)		(3	)		(2,392	)
Inventory, net		—			(1,353	)		(256	)		(1,609	)
Prepaid expenses, other current assets, and other assets, net		(20,019	)		10,632			1,200			(8,187	)
Accounts payable and accrued expenses		(19,712	)		11,722			4,297			(3,693	)
Customer layaway deposits		—			(766	)		2,631			1,865
Deferred gains and other long-term liabilities		—			(104	)		(12	)		(116	)
Excess tax benefit from stock compensation		—			(460	)		—			(460	)
Income taxes		12,115			454			(285	)		12,284

Net cash provided by/(used in) operating activities	$	(23,991	)	$	57,970		$	9,763		$	43,742

Investing Activities:
Loans made		—			(154,584	)		(28,173	)		(182,757	)
Loans repaid		—			89,880			21,108			110,988
Recovery of pawn loan principal through sale of forfeited collateral		—			55,885			5,816			61,701
Additions to property and equipment		—			(5,304	)		(4,644	)		(9,948	)
Acquisitions, net of cash acquired		—			(48,958	)		(441	)		(49,399	)
Dividends from unconsolidated affiliates		2,222			—			—			2,222

Net cash used in investing activities	$	2,222		$	(63,081	)	$	(6,334	)	$	(67,193	)

Financing Activities:
Stock issuance costs related to acquisitions		460			—			—			460
Taxes paid related to net share settlement of equity awards		(988	)		—			—			(988	)
Proceeds on revolving line of credit		116,500			—			—			116,500
Payments on revolving line of credit		(93,500	)		—			—			(93,500	)

Net cash used in financing activities	$	22,472		$	—		$	—		$	22,472
Effect of exchange rate changes on cash and cash equivalents		—			—			(122	)		(122	)

Net (decrease) increase in cash and cash equivalents		703			(5,111	)		3,307			(1,101	)
Cash and cash equivalents at beginning of period		—			20,860			3,109			23,969

Cash and cash equivalents at end of period	$	703		$	15,749		$	6,416		$	22,868


	Three Months Ended December 31, 2010
	(In thousands)
	Parent			Subsidiary Guarantors			Other Subsidiaries			Consolidated
Operating Activities:
Net income	$	4,336		$	23,643		$	(550	)		27,429
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		—			3,427			752			4,179
Signature loan and auto title loan loss provisions		—			3,643			491			4,134
Deferred taxes		1,641			(186	)		164			1,619
(Gain) / loss on sale or disposal of assets		—			7			—			7
Stock compensation		—			8,548			—			8,548
Income from investments in unconsolidated affiliates		(1,678	)		(1,689	)		—			(3,367	)
Changes in operating assets and liabilities, net of business acquisitions:
Service charges and fees receivable, net		—			(2,437	)		16			(2,421	)
Inventory, net		—			(1,521	)		(159	)		(1,680	)
Prepaid expenses, other current assets, and other assets, net		(15,020	)		11,752			(507	)		(3,775	)
Accounts payable and accrued expenses		13,461			(18,852	)		4,572			(819	)
Customer layaway deposits		—			(227	)		(5	)		(232	)
Deferred gains and other long-term liabilities		—			(107	)		—			(107	)
Excess tax benefit from stock compensation		—			(3,065	)		—			(3,065	)
Income taxes		2,076			3,059			(463	)		4,672

Net cash provided by operating activities	$	4,816		$	25,995		$	4,311		$	35,122

Investing Activities:
Loans made		—			(133,938	)		(18,825	)		(152,763	)
Loans repaid		—			78,297			13,043			91,340
Recovery of pawn loan principal through sale of forfeited collateral		—			46,072			4,678			50,750
Additions to property and equipment		—			(6,177	)		(1,756	)		(7,933	)
Acquisitions, net of cash acquired		—			(13,700	)		—			(13,700	)
Dividends from unconsolidated affiliates		1,811			—			—			1,811

Net cash used in investing activities	$	1,811		$	(29,446	)	$	(2,860	)	$	(30,495	)

Financing Activities:
Proceeds from exercise of stock options		204			—			—			204
Excess tax benefit from stock compensation		3,065			—			—			3,065
Taxes paid related to net share settlement of equity awards		(7,396	)		—			—			(7,396	)
Proceeds on revolving line of credit		15,000			—			—			15,000
Payments on revolving line of credit		(15,000	)		—			—			(15,000	)
Payments on bank borrowings		(2,500	)		—			—			(2,500	)

Net cash used in financing activities	$	(6,627	)	$	—		$	—		$	(6,627	)

Effect of exchange rate changes on cash and cash equivalents		—			—			54			54

Net (decrease) increase in cash and cash equivalents		—			(3,451	)		1,505			(1,946	)
Cash and cash equivalents at beginning of period		—			23,862			1,992			25,854

Cash and cash equivalents at end of period	$	—		$	20,411		$	3,497		$	23,908