Our
customer, who is well educated and informed, is choosing our
short term loan products because they are a lower cost
alternative.
Joe Rotunda, CEO, EZCORP
President and Chief Executive Officer, Joe Rotunda, stated, "The
demand for our loan products continues to be strong as consumers
seek lower cost alternatives to the fee-based services offered
by traditional financial institutions. Our customer, who is well
educated and informed, is choosing our short term loan products
because they are a lower cost alternative and they enable them
to maintain control over their finances. Satisfying this
customer's needs and demonstrating that our loan products are
their best alternative continues to drive our business."
During the Q&A session on Tuesday's earnings conference call,
Rotunda commented on the companies loan strategy in Texas.
Because of regulatory burdens, EZCORP does not operate a
traditional model in Texas. Joe Rotunda: "We do [maximum] $1,500
loans. With the underwriting that we utilize for payday lending,
The consumer that qualifies for a $1,500 loan is individually
earning $60,000 - $70,000 dollars per year in personal income,
which I think demonstrates the segment that's utilizing that
size of payday loan in Texas."
Listen to call here.
Rotunda concluded, "We expect our second fiscal 2007 quarter's
earnings to be approximately $0.23 per share compared to $0.19
for the fiscal 2006 second quarter. For our 2007 fiscal year, we
are raising our guidance to approximately $0.85 per share
compared to $0.69 per share for fiscal 2006. For the fiscal 2007
second quarter, we expect to open approximately 30 EZMONEY
locations. For the fiscal year, we expect to open approximately
100 EZMONEY locations."
EZCORP currently operates 340 EZMONEY locations.
