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Operating Segment Information
 3 Months Ended
Mar. 31, 2012
Operating Segment Information [Abstract]  
Operating Segment Information

Note J: Operating Segment Information

Segment information is prepared on the same basis that our management reviews financial information for operational decision-making purposes. Previously, we reported segment information based primarily on product offerings. Beginning with the second quarter of fiscal 2012, we redefined our reportable operating segments based on geography as our company is increasingly being organized and managed along geographic lines, with product offerings and channels based on local custom and regulation. As a result, we concluded that segment reporting based on geography more closely aligns with our management organization and strategic direction.

For periods ending after January 1, 2012, we will report segments as follows:

 

  •  

U.S. & Canada – All business activities in the United States and Canada

 

  •  

Latin America – All business activities in Mexico and other parts of Latin America

 

  •  

Other International – All business activities in the rest of the world (currently consisting of consumer loans online in the U.K. and our equity interests in the net income of Albemarle & Bond and Cash Converters International)

Concurrent with the change in reportable operating segments, we revised our prior period financial information to reflect comparable financial information for the new segment structure.

There are no inter-segment revenues, and the amounts below were determined in accordance with the same accounting principles used in our consolidated financial statements. The following tables present operating segment information for the three and six-month periods ending March 31, 2012 and 2011, including the reclassifications discussed in Note A “Significant Accounting Policies.”

 

 

                                 
    Three Months Ended March 31, 2012  
     U.S. &
Canada		     Latin
America		     Other
International		     Consolidated  
    (In thousands)  

Revenues:

                                

Merchandise sales

   $ 85,498     $ 9,499     $ —       $ 94,997  

Jewelry scrapping sales

     49,414       3,761       —         53,175  

Pawn service charges

     50,505       5,939       —         56,444  

Consumer loan fees

     42,806       7,383       130       50,319  

Other revenues

     1,219       124       —         1,343  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

     229,442       26,706       130       256,278  
         

Merchandise cost of goods sold

     50,499       5,381       —         55,880  

Jewelry scrapping cost of goods sold

     29,537       2,773       —         32,310  

Consumer loan bad debt

     5,878       508       80       6,466  
   

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

     143,528       18,044       50       161,622  
         

Operating expenses:

                                

Store operations

     68,890       8,211       168       77,269  

Administrative

     5,424       4,334       2       9,760  

Depreciation and amortization

     3,524       2,397       14       5,935  

Loss on sale or disposal of assets

     25       2       —         27  

Interest, net

     —         1,769       —         1,769  

Equity in net income of unconsolidated affiliates

     —         —         (4,577 )      (4,577 ) 

Other

     791       11       —         802  
   

 

 

    

 

 

    

 

 

    

 

 

  

Segment contribution

   $ 64,874     $ 1,320     $ 4,443     $ 70,637  

Corporate expenses

                             13,394  
                           

 

 

  

Income before taxes

                             57,243  

Income tax expense

             19,870  
                           

 

 

  

Net income

                             37,373  

Net income attributable to redeemable noncontrolling interest

                             112  
                           

 

 

  

Net income attributable to EZCORP, Inc.

                           $ 37,261  
                           

 

 

  

 

                                 
    Three Months Ended March 31, 2011  
     U.S. &
Canada		     Latin
America		     Other
International		     Consolidated  
    (In thousands)  

Revenues:

                                

Merchandise sales

   $ 72,420     $ 5,353     $ —       $ 77,773  

Jewelry scrapping sales

     44,351       3,644       —         47,995  

Pawn service charges

     43,073       3,696       —         46,769  

Consumer loan fees

     40,472       —         —         40,472  

Other revenues

     220       25       —         245  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

     200,536       12,718       —         213,254  
         

Merchandise cost of goods sold

     41,484       3,155       —         44,639  

Jewelry scrapping cost of goods sold

     28,848       3,077       —         31,925  

Consumer loan bad debt

     5,740       —         —         5,740  
   

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

     124,464       6,486       —         130,950  
         

Operating expenses:

                                

Store operations

     61,196       4,849       —         66,045  

Administrative

     4,407       1,079       27       5,513  

Depreciation and amortization

     2,885       678       —         3,563  

Gain on sale or disposal of assets

     (178 )      —         —         (178 ) 

Interest, net

     —         1       —         1  

Equity in net income of unconsolidated affiliates

     —         —         (4,691 )      (4,691 ) 

Other

     3       1       —         4  
   

 

 

    

 

 

    

 

 

    

 

 

  

Segment contribution

   $ 56,151     $ (122 )    $ 4,664     $ 60,693  

Corporate expenses

                             11,411  
                           

 

 

  

Income before taxes

                             49,282  

Income tax expense

             17,444  
                           

 

 

  

Net income

                             31,838  

Net income attributable to redeemable noncontrolling interest

                             —    
                           

 

 

  

Net income attributable to EZCORP, Inc.

                           $ 31,838  
                           

 

 

  

 

                                 
    Six Months Ended March 31, 2012  
     U.S. &
Canada		     Latin
America		     Other
International		     Consolidated  
    (In thousands)  

Revenues:

                                

Merchandise sales

   $ 162,050     $ 19,841     $ —       $ 181,891  

Jewelry scrapping sales

     102,280       7,298       —         109,578  

Pawn service charges

     104,875       11,361       —         116,236  

Consumer loan fees

     87,818       7,383       206       95,407  

Other revenues

     1,795       244       —         2,039  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

     458,818       46,127       206       505,151  
         

Merchandise cost of goods sold

     93,950       10,326       —         104,276  

Jewelry scrapping cost of goods sold

     62,687       5,047       —         67,734  

Consumer loan bad debt

     16,768       508       215       17,491  
   

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

     285,413       30,246       (9 )      315,650  
         

Operating expenses:

                                

Store operations

     137,215       14,209       346       151,770  

Administrative

     11,871       5,629       422       17,922  

Depreciation and amortization

     6,771       3,174       36       9,981  

(Gain) loss on sale or disposal of assets

     (175 )      1       —         (174 ) 

Interest, net

     4       1,733       —         1,737  

Equity in net income of unconsolidated affiliates

     —         —         (8,738 )      (8,738 ) 

Other

     (269 )      16       (64 )      (317 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Segment contribution

   $ 129,996     $ 5,484     $ 7,989     $ 143,469  

Corporate expenses

                             26,735  
                           

 

 

  

Income before taxes

                             116,734  

Income tax expense

             40,009  
                           

 

 

  

Net income

                             76,725  

Net income attributable to redeemable noncontrolling interest

                             112  
                           

 

 

  

Net income attributable to EZCORP, Inc.

                           $ 76,613  
                           

 

 

  

 

                                 
     Six Months Ended March 31, 2011  
     U.S. &
Canada		     Latin
America		     Other
International		     Consolidated  
    (In thousands)  

Revenues:

                                

Merchandise sales

   $ 138,725     $ 10,928     $ —       $ 149,653  

Jewelry scrapping sales

     91,554       7,106       —         98,660  

Pawn service charges

     89,509       7,070       —         96,579  

Consumer loan fees

     86,782       —         —         86,782  

Other revenues

     378       28       —         406  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

     406,948       25,132       —         432,080  
         

Merchandise cost of goods sold

     79,681       6,269       —         85,950  

Jewelry scrapping cost of goods sold

     58,465       5,715       —         64,180  

Consumer loan bad debt

     16,768       —         —         16,768  
   

 

 

    

 

 

    

 

 

    

 

 

  

Net revenues

     252,034       13,148       —         265,182  
         

Operating expenses:

                                

Store operations

     121,422       9,127       —         130,549  

Administrative

     9,810       2,016       52       11,878  

Depreciation and amoritzation

     5,602       1,281       —         6,883  

(Gain) loss on sale or disposal of assets

     (172 )      1       —         (171 ) 

Interest, net

     —         2       —         2  

Equity in net income of unconsolidated affiliates

     —         —         (8,058 )      (8,058 ) 

Other

     3       1       (61 )      (57 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Segment contribution

   $ 115,369     $ 720     $ 8,067     $ 124,156  

Corporate expenses

                             32,339  
                           

 

 

  

Income before taxes

                             91,817  

Income tax expense

             32,550  
                           

 

 

  

Net income

                             59,267  

Net income attributable to redeemable noncontrolling interest

                             —    
                           

 

 

  

Net income attributable to EZCORP, Inc.

                           $ 59,267  
                           

 

 

  

 

The following table presents separately identified segment assets:

 

 

                                 
     U.S. &
Canada		     Latin
America		     Other
International		     Consolidated  
    (In thousands)  

Assets at March 31, 2012:

                                

Pawn loans, net

   $ 108,804     $ 13,501     $ —       $ 122,305  

Consumer loans, net

     14,072       62,579       87       76,738  

Service charges and fees receivable, net

     25,886       20,933       28       46,847  

Inventory, net

     77,190       10,701       —         87,891  

Property and equipment, net

     57,241       19,180       —         76,421  

Goodwill

     213,967       106,725       —         320,692  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total separately identified recorded segment assets

   $ 497,160     $ 233,619     $ 115     $ 730,894  
   

 

 

    

 

 

    

 

 

    

 

 

  

Consumer loans outstanding from unaffiliated lenders

   $ 20,056     $ —       $ —       $ 20,056  
         

Assets at March 31, 2011:

                                

Pawn loans, net

   $ 97,375     $ 9,150     $ —       $ 106,525  

Consumer loans, net

     11,948       —         —         11,948  

Service charges and fees receivable, net

     24,647       1,355       —         26,002  

Inventory, net

     63,242       7,033       —         70,275  

Property and equipment, net

     46,155       11,925       —         58,080  

Goodwill

     136,039       7,365       —         143,404  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total separately identified recorded segment assets

   $ 379,406     $ 36,828     $ —       $ 416,234  
   

 

 

    

 

 

    

 

 

    

 

 

  

Consumer loans outstanding from unaffiliated lenders

   $ 21,504     $ —       $ —       $ 21,504  
         

Assets at September 30, 2011:

                                

Pawn loans, net

   $ 134,457     $ 10,861     $ —       $ 145,318  

Consumer loans, net

     14,611       —         —         14,611  

Service charges and fees receivable, net

     31,567       1,663       —         33,230  

Inventory, net

     81,859       8,514       —         90,373  

Property and equipment, net

     51,469       12,769       —         64,238  

Goodwill

     163,897       9,309       —         173,206  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total separately identified recorded segment assets

   $ 477,860     $ 43,116     $ —       $ 520,976  
   

 

 

    

 

 

    

 

 

    

 

 

  

Consumer loans outstanding from unaffiliated lenders

   $ 27,040     $ —       $ —       $ 27,040  

Note: Property and equipment, net on the Condensed Consolidating Balance Sheet includes corporate amounts that are not shown in the tables above.