Welcome to the EZCORP Fiscal 2013 Quarter Two Earnings Release Conference Call. My name is Adrian and I’ll be your operator for today’s call. At this time, all participants are in a listen-only mode. Later, we’ll conclude a question-and-answer session. Please note that this conference is being recorded. I’ll now turn the call over to Mark Kuchenrither. Mr. Kuchenrither, you may begin.

Thank you, Adrian and good afternoon everyone. This call will address our second quarter 2013 results. We issued a press release earlier today with supporting documents that are available on the Investor Relations portion of our website at www.ezcorp.com. I’d like to remind everyone that this conference call will contain certain forward-looking statements, including statements about our expected financial and operating performance in future periods. These statements are based on our current expectations, actual results in future periods may differ materially from current expectations, due to a number of risks, uncertainties and other factors, which are discussed in our press release and in our filings with the Securities and Exchange Commission. On the call with me today is Paul Rothamel, our President and Chief Executive Officer. Paul will discuss a few macroeconomic issues and then I will review business segment highlights and provide our guidance. Paul will then comment on our outlook before providing an opportunity for questions. I will now turn the call over to Paul.

Thank you, Mark and good afternoon everyone. I will review (ph) two key issues at the outset that have obvious effects on our customers and our business. First, let me address gold in the marketplace. For the first two quarters of our fiscal year, gold behaved as we expected. Gram volumes available per scrap were off significantly to last year as our customers had left to sell and kept the jewelry in our loan portfolios longer before paying their fees in full and redeeming. Our scrap margin rates were under pressure as well as we aggressively pursued market share. The end result of all of this was that gold negatively affected us by roughly $0.21 earnings per share for the first half versus last year. This significant decline in grams, margin and earnings was unwelcomed but expected. We also expected to begin to see moderation of this effect in the back half of this year as we began to anniversary gram and spot price declines. What happened recently with the dramatic drop in the price of gold to below $1400 per ounce was unexpected and should that volatility continue it would put pressure on short-term earnings. Mark will provide those details in just a bit. In spite of all of this we expect to deliver the financial trajectory that we originally planned this year: negative earnings growth in Q1, moderating in Q2 and Q3 and growing earnings again in Q4 and end of 2014. Investments that we've made in the last two and half years have positioned us to return to double-digit growth. Second issue is regulatory. Our efforts on the regulatory front related to pawn and financial services have been very successful across multiple local state and federal levels. Our customers benefit from these actions everyday through better transparency,…

Thank you, Paul. As discussed last quarter, this is another year of significant investment for EZCORP as we transitioned from a primarily U.S.-based storefront focused company to a multi-channel leading provider of cash solutions across the world. Execution of our strategy is on track and our team delivered earnings of $0.63 per share during the quarter within the upper half of our guidance range. Our earnings release provides consolidated financial highlights for the second quarter. I will focus primarily on our performance by operating segment. The U.S. and Canada operating segment now includes 1058 stores, 499 U.S. pawn and retail locations, 490 U.S. financial service locations and 69 buy, sell, and financial service locations in Canada. More than half of these storefronts utilize our store within a store concept today offering customers multiple options to solve their immediate cash needs. The U.S. pawn and retail operations added three de novo stores during the quarter. We have opened 10 de novo pawn stores so far this year and collectively they are performing ahead of our expectations. We announced earlier that we intended to open 25 to 30 de novo pawn locations this fiscal year. Although we have the ability to open the remaining 15 to 20 locations, our intention today is to open roughly half of the original number of locations in an effort to be fiscally prudent in a challenging environment. The U.S. pawn and retail continues to be challenged by the impact of gold. We obtain gold by providing loans to customers where gold and jewelry is used as collateral and by purchasing gold and jewelry directly from customers. In dollar terms, jewelry as a percentage of the total U.S. pawn on balance decreased 200 basis points to 64%. The jewelry redemption rate was 87% during the quarter versus…

Thanks again Mark. As I said earlier in the call, the customers’ need for short-term cash is growing. Nearly every study we see, every empirical set of data that we look at screens that our consumer is terribly underserved and the range (ph) is slowing. What we also know to be true is that our customers are sophisticated in their choices. They correctly see us as the cheapest and best alternative. They’re well-educated, hard-working people that appreciate the product and services we provide and respect for transparent way. That’s why they come back again and again and we are proud of that. The cornerstone of any good business is the frequency and satisfaction of its repeat customers. Our customers also utilize latest technologies and demand that we do as well. In the first half of this year, roughly 6% of our retail sales came from online transactions and over $6 million of our current loan balance was generated online. We expect both of these penetrations to more than double in the next 12 months and grow exponentially in the coming years. Their preferred method of communication with us is quickly moving to their smartphone. That is why we are investing in the technologies that will support our ability to be at the forefront of that communication for years to come. These investments in online selling and lending and mobile capabilities and communication and in target marketing are intertwined with the other necessary investments that we have made at our storefronts and back office. Investments to better manage our inventories and loan portfolios as general merchandise becomes more and more important to our pawn business. Investments to our decision science platforms, collection systems and underwriting models through people and technology to match the consumer with the product that fits them best.…

(Operator Instructions) And we have Robert Ramsey from FBR Capital online with the question. Robert Ramsey – FBR Capital Markets: A question I want to ask is sort of how you are thinking about gold heading into next quarter as far as the scrapping margin as part of your guidance?

Bob, we are forecasting gold on a blended rate for the remaining in our fiscal year to be at 14, 14.60 per ounce and we’re planning our margins to be at 30% on a go forward basis. Robert Ramsey – FBR Capital Markets: So basically margins flattish for the quarter, for the rest of the year?

Yes. Robert Ramsey – FBR Capital Markets: And did you have a hedge coming into the next quarter that will help you guys?

We don’t have a hedge, what we have a floors-lock and we’ve locked in a couple of months out. And it’s something that we look at on a daily basis and review. We put in floors appropriately and then lock in accordingly based on what we see going on in the market. Robert Ramsey – FBR Capital Markets: To your credit, the margin certainly held up this quarter, better than the other U.S. pawn companies that are out there. But I guess I am a little confused (inaudible) since one or two of these companies are guiding margin down what gives you optimism that you will be able to hold flat?

Well, it’s a disappointment – I can’t speak for them. I would tell you that from our perspective it’s disappointing – in how we manage our stores and our tables. We adjust our lending rates accordingly based on what's happening in the marketplace and what we know we can just disposition the gold for. So that determines how much we are willing to win on the items.

And we have John Rowan [Sidoti & Company] online with the question. John Rowan – Sidoti & Company: Of the 389 million in total earnings, quoting the press release, how much of that is our CSO launch? Maybe

Well, we can figure that out for you. John Rowan – Sidoti & Company: Maybe while you are grabbing that, another question the last year you kind of –

19% -- $19 million, I am sorry. John Rowan – Sidoti & Company: And those are all launched in Texas, correct?

Primarily we have small amount of CSO loans in our business online in Ohio but the bulk of it, the vast majority of that is Texas. John Rowan – Sidoti & Company: Does that include auto loans – as well, yes.

Yes. John Rowan – Sidoti & Company: You kind of framed all your growth initiatives and inside there was – whatever the diluted impact for earnings was, I noticed your kind of segmented a little bit in this pressure, can just kind of put all the growth initiatives, the other coming up with the diluted impact in this quarter was?

I haven’t –

Well I don’t have that in from me, we will have to get that for you and call you back when that one. John Rowan – Sidoti & Company: Administrative costs, quite down, what’s the reasoning behind that?

What we are doing is we are doing is we are managing expenses – our variable expenses accordingly. We knew that we are facing some headwinds. And so we worked at our variable expenses and managed them to accordingly. One last question if I may. I guess with the store growth you’ve kind of given on our a per unit basis. Can we just kind of put together -- John Rowan – Sidoti & Company: It sounds like 65 to 70 new financial services stores and 70 to 80 pawn stores which are mostly in Mexico and is that correct and there was no other growth in the U.S. as far as pawn?

So you are close, 65 to 70 U.S. financial service stores in the US, I think 65 to 75 Mexico pawn shop and we’ll probably have about five U.S. pawn bid out all those in the back half. John Rowan – Sidoti & Company: Okay, so the 65 to 70, is that for back half, that’s full year, correct?

The 65 to 70 full year for Mexico. John Rowan – Sidoti & Company: All right, and then sort of the five U.S. pawn in the back half plus the switching to 15 to 20 –

Ten, it will.

And we have no further questions.

Well, we look forward to talking to you again at the end of the third quarter. Thanks for your interest.