EZCORP Slips To Loss - Update

(RTTNews) - Consumer finance company EZCORP Inc. (EZPW), Tuesday reported a slip to loss in the third quarter, hurt by discontinued operations and operating expenses, offsetting a five percent growth in revenues.

EZCORP provides pawn and consumer loans, with results coming in amid volatility in the gold market. However, the company's non-gold businesses fared well during the quarter.

"While the customer is certainly impacted by the current macro trends, they continue to pick us as their preferred provider of cash," said CEO Paul Rothamel.

Results for the quarter were hurt by a loss from discontinued operations of $21.5 million, mainly to the company's plan to exit some components of its business and close over 100 legacy stores.

The Austin, Texas-based company reported a third-quarter net loss of $6 million or $0.11 per share, compared with net income of $28.5 million or $0.56 per share a year ago.

On average, seven analysts polled by Thomson Reuters expected the company to report a profit of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter climbed to $235 million from $224.6 million last year. Analysts expected revenues of $240.27 million for the quarter.

Merchandise sales, pawn service charges, and consumer loan fees saw growth during the quarter.

Operating expenses for the quarter were higher at $126 million, compared with $102 million in the prior year.

At the end of the quarter, the company operated a total of 1,424 stores.

The company's stock is trading at $17.95, down 0.11%, on the Nasdaq.