EZCORP To Discontinue Online Lending Businesses In U.S., U.K.

(RTTNews) - EZCORP, Inc. (EZPW) said Monday that it will discontinue its stand-alone online lending businesses in the U.S. and U.K. that do not link into the integrated financial services model, as a fundamental part of its "back to basics" strategy focused on its core business of pawn and unsecured lending.

In addition, the company said it has implemented measures aimed at streamlining the organization to put greater focus on the customer.

The actions, which are a result of a comprehensive review and evaluation of each of the company's businesses recently completed by the new management team and Board of Directors, will result in aggregate pre-tax charges of about $110 million, or $105 million after-tax, in the fourth quarter, about $95 million of which represent non-cash charges, including the write-off of about $84 million in goodwill associated with the company's investment in the online lending businesses. These actions, discussed more fully below, .

Because of the significant restructuring activities as well as less-than-projected operating results from each of its business units, the company said its fourth quarter earnings will be less than its previous guidance range, which was earnings of $0.37 to $0.39 per share from continuing operations. Analysts polled by

Thomson Reuters currently expect the company to earn $0.37 per share for the fourth quarter.