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Stock Market & Financial Investment News

News Breaks
January 22, 2013
16:07 EDTEZPWEZCORP sees Q2 EPS 60c-65c, consensus 65c
News For EZPW From The Last 14 Days
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July 29, 2015
17:10 EDTEZPWEZCORP expects to produce annual expense savings around $34M after three years
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17:09 EDTEZPWEZCORP announces new strategy, structure, business focus
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July 28, 2015
06:43 EDTEZPWEZCORP to host conference call
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July 17, 2015
09:39 EDTEZPWEZCORP to restate certain financial results
EZCORP announced that it will restate its financial statements for FY14, including the interim periods within that year, and Q1 of FY15. This decision to restate was made by the company's board, upon the recommendation of management and the audit committee and in consultation with the company’s independent registered public accounting firms. The restatement adjustments, all of which are non-cash, will correct certain errors relating to the accounting for Grupo Finmart’s structured asset sales in FY14 and the Q1 of FY15. Following a comprehensive review of the terms and conditions of each of the structured asset sales, management has determined that the asset sales should not have been accounted for as sales, principally due to certain control rights that Grupo Finmart retained as servicer of the loans. Because of these control rights, the trusts to which the loans were sold should be accounted for as “variable interest entities” and consolidated pursuant to ASC 810-10 , and therefore, the sales should not have been recognized for accounting purposes. As a result of the consolidation, the prior gains on sale will be eliminated, the assets and liabilities of the trusts will be included in the company’s consolidated balance sheet and interest income will be recognized over the life of the loans. This process will result in a reduction in net income in the periods during which a structured asset sale occurred and an increase in net income thereafter. Although the company has not yet quantified the effect of reversing the sale accounting treatment, it should be noted that, as a result of the asset sales, the company previously recognized $39.6M of gain, $33.0M in FY14 and $6.6M in Q1 of FY15. That gain will be eliminated, but interest income in the periods subsequent to the asset sales will be increased. Grupo Finmart’s Mexican GAAP financial statements are unaffected by this adjustment.

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