Lower than
expected bad-loans were influenced to some degree by the economic stimulus
checks received by our customers during May and June.
Joe Rotunda, President and Chief Executive Officer, EZCORP
EZCORP President and Chief
Executive Officer, Joe Rotunda, said, "In our June quarter, we
realized stronger than expected sales gross profit in our U.S. EZPAWN operation and lower than expected levels of signature
loan bad debt in our EZMONEY operation. While our pawn and
signature loan portfolios grew during the quarter, their rate of
growth was less than we typically see during this period,
leaving our loan balances at a lower than anticipated level
going into our September quarter. All of these factors were
influenced to some degree by the economic stimulus checks
received by our customers during May and June."
The predicted increases are even more impressive when you
consider they include the impact of the closure of eleven
Florida EZMONEY stores announced on June 17th and the settlement
with the Texas Attorney General announced on June 23rd (see
story).
For the fourth quarter and fiscal year ending September 30,
2008, EZCORP is raising earnings per share guidance to
approximately $0.35 and $1.19. Guidance for the fourth fiscal
quarter includes an approximate one cent per share benefit from
the Value Financial Services acquisition, which is expected to
close around July 31st.
