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Operating Segment Information | 6 Months Ended
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Mar. 31, 2013
Segment Reporting [Abstract] |
OPERATING SEGMENT INFORMATION | NOTE 11: OPERATING SEGMENT INFORMATION Segment information is prepared on the same basis that our management reviews financial information for operational decision-making purposes. Our business consists of three reportable segments:
• | U.S. & Canada – Includes all business activities in the United States and Canada
• | Latin America – Includes all business activities in Mexico and other parts of Latin America
• | Other International – Includes 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)
In connection with our decentralization strategy, we have changed the accountability for, and reporting of, certain items in administrative expenses, depreciation and amortization. When directly related to a segment, these items have been included in segment contribution.When shared by multiple segments, these items are being allocated to the segment and included in their segment contribution. Prior year figures have been reclassified to conform to this presentation. 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, 2013 and 2012:
| Three Months Ended March 31, 2013
| U.S. & Canada |  | Latin America |  | Other International |  | Consolidated
| (in thousands)
Revenues: |  |  |  |  |  |  |
Merchandise sales | $ | 87,048 |  |  | $ | 13,858 |  |  | $ | — |  |  | $ | 100,906 |
Jewelry scrapping sales | 40,671 |  |  | 2,897 |  |  | — |  |  | 43,568 |
Pawn service charges | 54,512 |  |  | 8,082 |  |  | — |  |  | 62,594 |
Consumer loan fees | 43,825 |  |  | 11,842 |  |  | 6,643 |  |  | 62,310 |
Other revenues | 1,620 |  |  | 217 |  |  | 859 |  |  | 2,696 |
Total revenues | 227,676 |  |  | 36,896 |  |  | 7,502 |  |  | 272,074 |
Merchandise cost of goods sold | 51,167 |  |  | 8,010 |  |  | — |  |  | 59,177 |
Jewelry scrapping cost of goods sold | 27,663 |  |  | 2,429 |  |  | — |  |  | 30,092 |
Consumer loan bad debt | 6,864 |  |  | (661 | ) |  | 2,677 |  |  | 8,880 |
Net revenues | 141,982 |  |  | 27,118 |  |  | 4,825 |  |  | 173,925 |
Segment expenses: |  |  |  |  |  |  |
Operations | 85,477 |  |  | 16,401 |  |  | 3,669 |  |  | 105,547 |
Depreciation and amortization | 4,909 |  |  | 1,771 |  |  | 143 |  |  | 6,823 |
(Gain) loss on sale or disposal of assets | (1 | ) |  | 14 |  |  | — |  |  | 13 |
Interest (income) expense, net | 15 |  |  | 2,802 |  |  | (1 | ) |  | 2,816 |
Equity in net income of unconsolidated affiliates | — |  |  | — |  |  | (4,125 | ) |  | (4,125 | )
Other income | (1 | ) |  | (315 | ) |  | — |  |  | (316 | )
Segment contribution | $ | 51,583 |  |  | $ | 6,445 |  |  | $ | 5,139 |  |  | $ | 63,167 |
Corporate expenses: |  |  |  |  |  |  |
Administrative |  |  |  |  |  |  | 8,603 |
Depreciation and amortization |  |  |  |  |  |  | 1,940 |
Interest expense, net |  |  |  |  |  |  | 937 |
Other expense |  |  |  |  |  |  | 721 |
Income before taxes |  |  | 50,966 |
Income tax expense |  |  |  |  |  |  | 16,086 |
Net income |  |  |  |  |  |  | 34,880 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  | 899 |
Net income attributable to EZCORP, Inc. |  |  |  |  |  |  | $ | 33,981 |
| 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 |
Segment expenses: |  |  |  |  |  |  |
Operations | 75,364 |  |  | 11,090 |  |  | 170 |  |  | 86,624 |
Depreciation and amortization | 3,390 |  |  | 2,404 |  |  | 14 |  |  | 5,808 |
Loss on sale or disposal of assets | 25 |  |  | 2 |  |  | — |  |  | 27 |
Interest expense, net | — |  |  | 1,769 |  |  | — |  |  | 1,769 |
Equity in net income of unconsolidated affiliates | — |  |  | — |  |  | (4,577 | ) |  | (4,577 | )
Other expense | 909 |  |  | 13 |  |  | — |  |  | 922 |
Segment contribution | $ | 63,840 |  |  | $ | 2,766 |  |  | $ | 4,443 |  |  | $ | 71,049 |
Corporate expenses: |  |  |  |  |  |  |
Administrative |  |  |  |  |  |  | 11,998 |
Depreciation and amortization |  |  |  |  |  |  | 1,451 |
Interest expense, net |  |  |  |  |  |  | 477 |
Other income |  |  |  |  |  |  | (120 | )
Income before taxes |  |  | 57,243 |
Income tax expense |  |  |  |  |  |  | 19,870 |
Net income |  |  |  |  |  |  | 37,373 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  | 112 |
Net income attributable to EZCORP, Inc. |  |  |  |  |  |  | $ | 37,261 |
| Six Months Ended March 31, 2013
| U.S. & Canada |  | Latin America |  | Other International |  | Consolidated
| (in thousands)
Revenues: |  |  |  |  |  |  |
Merchandise sales | $ | 167,513 |  |  | $ | 28,975 |  |  | $ | — |  |  | $ | 196,488 |
Jewelry scrapping sales | 82,813 |  |  | 6,680 |  |  | — |  |  | 89,493 |
Pawn service charges | 112,722 |  |  | 15,896 |  |  | — |  |  | 128,618 |
Consumer loan fees | 89,784 |  |  | 23,719 |  |  | 13,572 |  |  | 127,075 |
Other revenues | 4,414 |  |  | 1,871 |  |  | 1,241 |  |  | 7,526 |
Total revenues | 457,246 |  |  | 77,141 |  |  | 14,813 |  |  | 549,200 |
Merchandise cost of goods sold | 97,899 |  |  | 16,779 |  |  | — |  |  | 114,678 |
Jewelry scrapping cost of goods sold | 56,820 |  |  | 5,471 |  |  | — |  |  | 62,291 |
Consumer loan bad debt | 18,345 |  |  | (1,709 | ) |  | 6,318 |  |  | 22,954 |
Net revenues | 284,182 |  |  | 56,600 |  |  | 8,495 |  |  | 349,277 |
Segment expenses: |  |  |  |  |  |  |
Operations | 172,920 |  |  | 32,142 |  |  | 7,747 |  |  | 212,809 |
Depreciation and amortization | 9,011 |  |  | 3,446 |  |  | 219 |  |  | 12,676 |
Loss on sale or disposal of assets | 28 |  |  | 14 |  |  | — |  |  | 42 |
Interest (income) expense, net | 32 |  |  | 5,415 |  |  | (1 | ) |  | 5,446 |
Equity in net income of unconsolidated affiliates | — |  |  | — |  |  | (9,163 | ) |  | (9,163 | )
Other income | (5 | ) |  | (295 | ) |  | (69 | ) |  | (369 | )
Segment contribution | $ | 102,196 |  |  | $ | 15,878 |  |  | $ | 9,762 |  |  | $ | 127,836 |
Corporate expenses: |  |  |  |  |  |  |
Administrative |  |  |  |  |  |  | 22,274 |
Depreciation and amortization |  |  |  |  |  |  | 3,739 |
Interest expense, net |  |  |  |  |  |  | 1,944 |
Other expense |  |  |  |  |  |  | 273 |
Income before taxes |  |  | 99,606 |
Income tax expense |  |  |  |  |  |  | 32,571 |
Net income |  |  |  |  |  |  | 67,035 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  | 2,337 |
Net income attributable to EZCORP, Inc. |  |  |  |  |  |  | $ | 64,698 |
| 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 (losses) revenues | 285,413 |  |  | 30,246 |  |  | (9 | ) |  | 315,650 |
Segment expenses: |  |  |  |  |  |  |
Operations | 150,358 |  |  | 18,056 |  |  | 768 |  |  | 169,182 |
Depreciation and amortization | 6,613 |  |  | 3,174 |  |  | 36 |  |  | 9,823 |
(Gain) loss on sale or disposal of assets | (175 | ) |  | 1 |  |  | — |  |  | (174 | )
Interest expense, net | 4 |  |  | 1,733 |  |  | — |  |  | 1,737 |
Equity in net income of unconsolidated affiliates | — |  |  | — |  |  | (8,738 | ) |  | (8,738 | )
Other (income) expense | (151 | ) |  | 16 |  |  | (64 | ) |  | (199 | )
Segment contribution | $ | 128,764 |  |  | $ | 7,266 |  |  | $ | 7,989 |  |  | $ | 144,019 |
Corporate expenses: |  |  |  |  |  |  |
Administrative |  |  |  |  |  |  | 23,652 |
Depreciation and amortization |  |  |  |  |  |  | 2,691 |
Interest expense, net |  |  |  |  |  |  | 1,060 |
Other income |  |  |  |  |  |  | (118 | )
Income before taxes |  |  | 116,734 |
Income tax expense |  |  |  |  |  |  | 40,009 |
Net income |  |  |  |  |  |  | 76,725 |
Net income attributable to noncontrolling interest |  |  |  |  |  |  | 112 |
Net income attributable to EZCORP, Inc. |  |  |  |  |  |  | $ | 76,613 |
The following table presents separately identified segment assets:
| U.S. & Canada |  | Latin America |  | Other International |  | Consolidated
| (in thousands)
Assets at March 31, 2013 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 11,721 |  |  | $ | 14,602 |  |  | $ | 2,765 |  |  | $ | 29,088 |
Restricted cash | — |  |  | 1,204 |  |  | — |  |  | 1,204 |
Pawn loans | 119,681 |  |  | 18,699 |  |  | — |  |  | 138,380 |
Consumer loans, net | 17,736 |  |  | 91,418 |  |  | 4,856 |  |  | 114,010 |
Service charges and fees receivable, net | 28,968 |  |  | 28,673 |  |  | 1,254 |  |  | 58,895 |
Inventory, net | 95,307 |  |  | 21,210 |  |  | — |  |  | 116,517 |
Property and equipment, net | 68,725 |  |  | 29,388 |  |  | 1,499 |  |  | 99,612 |
Restricted cash, non-current | — |  |  | 2,197 |  |  | — |  |  | 2,197 |
Goodwill | 277,338 |  |  | 117,200 |  |  | 37,586 |  |  | 432,124 |
Intangibles, net | 28,853 |  |  | 21,018 |  |  | 2,726 |  |  | 52,597 |
Total separately identified recorded segment assets | $ | 648,329 |  |  | $ | 345,609 |  |  | $ | 50,686 |  |  | $ | 1,044,624 |
Consumer loans outstanding from unaffiliated lenders | $ | 19,879 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,879 |
Assets at March 31, 2012 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 17,266 |  |  | $ | 15,220 |  |  | $ | 258 |  |  | $ | 32,744 |
Restricted cash | — |  |  | 930 |  |  | — |  |  | 930 |
Pawn loans | 108,804 |  |  | 13,501 |  |  | — |  |  | 122,305 |
Consumer loans, net | 14,074 |  |  | 66,747 |  |  | 86 |  |  | 80,907 |
Service charges and fees receivable, net | 25,886 |  |  | 20,933 |  |  | 28 |  |  | 46,847 |
Inventory, net | 77,132 |  |  | 10,702 |  |  | — |  |  | 87,834 |
Property and equipment, net | 56,544 |  |  | 18,948 |  |  | 223 |  |  | 75,715 |
Goodwill | 213,897 |  |  | 110,384 |  |  | — |  |  | 324,281 |
Intangibles, net | 17,651 |  |  | 19,305 |  |  | 42 |  |  | 36,998 |
Total separately identified recorded segment assets | $ | 531,254 |  |  | $ | 276,670 |  |  | $ | 637 |  |  | $ | 808,561 |
Consumer loans outstanding from unaffiliated lenders | $ | 19,130 |  |  | $ | — |  |  | $ | — |  |  | $ | 19,130 |
Assets at September 30, 2012 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 14,820 |  |  | $ | 16,365 |  |  | $ | 1,789 |  |  | $ | 32,974 |
Restricted cash | — |  |  | 1,145 |  |  | — |  |  | 1,145 |
Pawn loans | 140,885 |  |  | 16,763 |  |  | — |  |  | 157,648 |
Consumer loans, net | 18,960 |  |  | 73,422 |  |  | 3,767 |  |  | 96,149 |
Service charges and fees receivable, net | 34,066 |  |  | 24,637 |  |  | 1,114 |  |  | 59,817 |
Inventory, net | 94,449 |  |  | 14,765 |  |  | — |  |  | 109,214 |
Property and equipment, net | 60,476 |  |  | 23,005 |  |  | 1,503 |  |  | 84,984 |
Restricted cash, non-current | — |  |  | 4,337 |  |  | — |  |  | 4,337 |
Goodwill | 224,306 |  |  | 110,401 |  |  | 39,956 |  |  | 374,663 |
Intangibles, net | 17,498 |  |  | 21,867 |  |  | 2,946 |  |  | 42,311 |
Total separately identified recorded segment assets | $ | 605,460 |  |  | $ | 306,707 |  |  | $ | 51,075 |  |  | $ | 963,242 |
Consumer loans outstanding from unaffiliated lenders | $ | 24,773 |  |  | $ | — |  |  | $ | — |  |  | $ | 24,773 |
The following table reconciles separately identified recorded segment assets, as shown above, to our consolidated total assets:
| March 31, |  | September 30,
| 2013 |  | 2012 |  | 2012
| (in thousands)
Total separately identified recorded segment assets | $ | 1,044,624 |  |  | $ | 808,561 |  |  | $ | 963,242 |
Corporate assets | 269,783 |  |  | 218,966 |  |  | 254,765 |
Total assets | $ | 1,314,407 |  |  | $ | 1,027,527 |  |  | $ | 1,218,007 |
The following tables provide geographic information required by ASC 280-10-50-41:
| Three Months Ended March 31, |  | Six Months Ended March 31,
| 2013 |  | 2012 |  | 2013 |  | 2012
| (in thousands)
Revenues: |  |  |  |  |  |  |
U.S. | $ | 222,947 |  |  | $ | 225,490 |  |  | $ | 447,703 |  |  | $ | 451,205 |
Mexico | 36,896 |  |  | 26,706 |  |  | 77,141 |  |  | 46,127 |
Canada | 4,729 |  |  | 3,952 |  |  | 9,543 |  |  | 7,613 |
U.K | 7,502 |  |  | 130 |  |  | 14,813 |  |  | 206 |
Total | 272,074 |  |  | 256,278 |  |  | 549,200 |  |  | 505,151 |
| March 31, |  | September 30,
| 2013 |  | 2012 |  | 2012
| (in thousands)
Long-lived assets: |  |  |  |  |
U.S. | $ | 393,698 |  |  | $ | 298,031 |  |  | $ | 317,887 |
Mexico | 167,904 |  |  | 148,812 |  |  | 155,488 |
Canada | 9,177 |  |  | 11,021 |  |  | 10,199 |
U.K. | 41,769 |  |  | 223 |  |  | 44,363 |
Other | 42 |  |  | 42 |  |  | 42 |
Total | $ | 612,590 |  |  | $ | 458,129 |  |  | $ | 527,979 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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