exv10w1






EXHIBIT 10.1




EZCORP ANNOUNCES DEFINITIVE AGREEMENT TO ACQUIRE VALUE FINANCIAL SERVICES




AUSTIN, Texas (June 5, 2008) — EZCORP, Inc. (NASDAQ: EZPW) announced today that it has entered
into a definitive merger agreement to acquire 100% of the equity ownership of Value Financial
Services, Inc. The purchase price will be approximately $110 million comprised of $73 million paid
to Value Financial Services shareholders, assumption of estimated mid-July debt of $35 million and
estimated transaction costs of $1.4 million. Not included in the purchase price is a $3.3 million
benefit of a net operating loss carry-forward, which EZCORP will utilize within two years. The
consideration paid to Value Financial Services shareholders will be comprised of cash and the
issuance of 1,625,000 shares of EZCORP’s Class A Non-voting Common Stock.



On March 17, 2008, EZCORP announced its intent to acquire Value Financial Services subject to its
due diligence review. The due diligence review is now complete. The transaction is expected to
close on July15, 2008, subject to all governmental consents. Value Financial Services currently
operates 65 pawnshops: 58 in Florida, four in Tennessee and three in Georgia.



EZCORP’s President and Chief Executive Officer, Joe Rotunda, stated, “We believe this acquisition
gives us several opportunities to create value for our shareholders. Value Financial Services is a
quality pawn operation. We estimate for the twelve months ending July 31st, Value will
have generated approximately $16 million of EBITDA; and we estimate Value’s per store pawn
portfolio will be approximately $300,000 by mid-July. Following completion of the transaction,
EZCORP will be the largest operator of pawnshops in the state of Florida, a strong and
well-established pawn market. Finally with this acquisition, we again demonstrate our commitment
to our pawn business, which continues to perform very well. Over the last twelve months, pawn
revenues would have made up 77% of the combined total revenues of EZCORP and Value Financial
Services.”



Rotunda concluded, “Assuming a July 15th close, we expect the acquisition to be mildly
accretive this fiscal year, adding one to two cents per share to our earlier EPS guidance of $0.34
and $1.14 for our September quarter and our 2008 fiscal year. For our fiscal 2009, we expect the
acquisition to enhance our earnings by twelve to fourteen cents per share. Upon completion of the
transaction, EZCORP will have long-term debt of approximately $72 million. With this acquisition,
we will generate more earnings and cash flow and continue to have a very strong balance sheet.”



Stephens Inc. served as financial advisor to Value Financial Services, Inc.



 









 





EZCORP is primarily a lender or provider of credit services to individuals who do not have cash
resources or access to credit to meet their short-term cash needs. In 294 U.S. EZPAWN and 26
Mexico Empeño Fácil locations open on March 31, 2008, the Company offers non-recourse loans
collateralized by tangible personal property, commonly known as pawn loans. At these locations,
the Company also sells merchandise, primarily collateral forfeited from its pawn lending
operations, to consumers looking for good value. In 462 EZMONEY locations and 73 EZPAWN locations
open on March 31, 2008, the Company offers short-term non-collateralized loans, often referred to
as payday loans, or fee based credit services to customers seeking loans.



This announcement contains certain forward-looking statements regarding the Company’s expected
performance for future periods including, but not limited to, the completion and anticipated
benefits of an acquisition and expected future earnings. Actual results for these periods may
materially differ from these statements. Such forward-looking statements involve risks and
uncertainties such as changing market conditions in the overall economy and the industry, consumer
demand for the Company’s services and merchandise, changes in the regulatory environment, and other
factors periodically discussed in the Company’s annual, quarterly and other reports filed with the
Securities and Exchange Commission.



For additional information, contact Dan Tonissen at (512) 314-2289.