Ace Cash Express (NASDAQ:AACE)
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DALLAS, April 27 /PRNewswire-FirstCall/ -- ACE Cash Express, Inc. (NASDAQ:AACE) announced fiscal third quarter 2006 net income of $9.9 million and diluted earnings per share of $0.68, compared to fiscal third quarter 2005 net income of $9.9 million and diluted earnings per share of $0.71. The current quarter includes the previously disclosed $0.04 after-tax charge related to the termination of the Company's relationship with H&R Block. During the fiscal third quarter of 2006, ACE's total revenue increased 16 percent to $91.2 million from $78.5 million in the prior year period, due primarily to a 19 percent increase in check cashing fees, an 18 percent increase in loan fees and interest, and a 33 percent increase in bill payment services.
Comparable store revenues increased 6.8 percent compared to the prior year period. Major contributors to this comparable store revenue increase include:
* Comparable store loan fees and interest increased 11.0 percent, and in
states not impacted by the revised FDIC Guidelines for PayDay Lending,
increased by 12.4 percent.
* Comparable store check fees (non-tax check fees) increased by 4.4
percent.
* Comparable store tax check fees declined by 2.0 percent. Comparable
store tax check fees cashed in company-owned stores declined by 0.3
percent. Comparable store tax checks fees cashed by self-service
machines (SSMs) located in H&R Block locations declined by 9.5
percent. As previously disclosed the SSM business in H&R Block
locations has been discontinued.
"Third quarter financial results reflect continued success in offering our customers a full suite of retail financial products in an expanding network of stores. This strategy resulted in strong comparable store sales increases, particularly in our core check cashing business, the short-term consumer loan business and the stored value card business," said Jay B. Shipowitz, President and Chief Executive Officer.
Among ACE's accomplishments during the fiscal third quarter 2006 were:
* The total ACE store network, including franchised stores, had a third
quarter record 11.3 million customer visits and processed
approximately $3.5 billion in transactions.
* Comparable store sales increased 6.8 percent compared to the fiscal
third quarter of 2005.
* ACE company-owned stores cashed over 3.4 million non-tax checks, with
a face value of approximately $1.4 billion, resulting in check-cashing
fees for the quarter of $31.6 million, up 19 percent from $26.5
million in the fiscal third quarter of 2005. Comparable store check
cashing fees increased 4.4 percent compared to the prior year period.
* ACE company-owned stores processed over 519,000 loan transactions,
disbursed over $148 million in loan proceeds and generated loan fees
and interest of $25.0 million. Comparable store loan fees and interest
in company-owned stores increased 11.0 percent over the prior year's
period.
* ACE introduced the CSO Loan product in Texas on March 1, 2006.
* ACE company-owned stores processed over 2.2 million bill payment and
debit card transactions, producing a revenue increase of 33 percent,
to $7.1 million from $5.4 million in the prior year period.
* ACE company-owned stores sold approximately 89,000 stored value cards
in the third quarter of fiscal 2006, an increase of 86 percent over
the prior year period.
"Our network grew to 1,557 stores at the end of the fiscal third quarter of 2006, reflecting our long-term disciplined growth strategy of de novo store development complemented by opportunistic acquisitions. During the last 24 months, we have opened 122 ACE Cash Express stores and 63 ACE Cash Advance stores that have not yet contributed meaningfully to our bottom-line. These new stores are meeting our performance expectations and as these stores mature we should begin to see an increasing bottom-line contribution from them over the next several quarters," commented Mr. Shipowitz.
Results for the Nine Months Ended March 31, 2006
For the first nine months of fiscal 2006, ACE's total revenue increased 12 percent, to $229.6 million, from $205.2 million in the first nine months of fiscal 2005. Net income decreased 15 percent, to $17.7 million from $20.8 million in the prior year period, resulting in a decline in diluted earnings per share of 15 percent, to $1.26 per diluted share from $1.49 cents per diluted share in the prior year period. Net income for the first nine months of fiscal 2006 includes a net after-tax charge of $0.7 million related to losses from Hurricane Katrina and an after-tax write-off of $0.5 million related to the Company's decision to discontinue operating SSMs in H&R Block locations. Comparable store sales increased by 4.6 percent during the first nine months of fiscal 2006 compared to the first nine months of fiscal 2005 as a result of continued strength in loan fees and bill payment services.
Amended Bank Facility
During the quarter, ACE amended its existing bank credit facility to extend the maturity date, increase the facility size and improve pricing. Under the amended bank facility the new commitments increase total availability from $200 million to $275 million, including a $200 million working capital facility and a $75 million seasonal facility available during each tax season, and the maturity date is extended from June 30, 2008 to December 31, 2010. The pricing on the facility was also reduced to LIBOR plus 200 basis points from LIBOR plus 225 basis points and can be further reduced to LIBOR plus 175 basis points based upon the company's leverage ratio.
Store Openings
For the quarter, the Company opened 30 company-owned stores, including 14 ACE Cash Express stores and 16 ACE Cash Advance stores, and acquired 2 stores. ACE franchisees also opened an additional 13 stores during the quarter. ACE ended the quarter with 1,328 company-owned stores, 229 franchised stores and a total network of 1,557 stores.
Update on Hurricane Katrina Impacted Stores
During the fiscal first quarter of 2006 ACE recorded a pre-tax charge of $1.7 million related to losses from Hurricane Katrina. This charge included the write-off of fixed assets and loans receivable. During the fiscal third quarter of 2006 ACE reversed $0.2 million related to better than expected collections of the previously written-off loans and received an initial reimbursement payment from its insurance carrier of $0.2 million related to its claim. At this time, six of the company's 22 stores in the greater New Orleans market remain closed.
Relationship with H&R Block
Following the end of the quarter, ACE announced that it will not operate self-service machines (SSMs) in H&R Block locations during the 2007 tax season. As a result of this decision, ACE took a one-time pre-tax charge during the fiscal third quarter of 2006 of $848,000 related to the termination of the SSM leases and the early extinguishment of the DZ Bank facility, which was used to finance the SSM business.
During the 2006 tax season, ACE operated 128 SSMs in H&R Block locations. These SSMs generated approximately $3.1 million of revenue for ACE and a pre- tax loss of approximately $275,000 during the quarter, excluding the $848,000 charge included in the fiscal third quarter of 2006.
Fiscal 2006 Business Guidance
The statements in the bullet points below are the Company's outlook or forecast for the Company's business for the fourth quarter ending and the fiscal year ending June 30, 2006. These statements are made only as of April 27, 2006 and indicate only the expectations of the Company's management as of that date. These statements supersede any and all previous statements made by the Company regarding the matters addressed. These statements are "forward- looking statements," cannot be guaranteed and may prove to be wrong.
* The Company expects to open 6 to 16 additional ACE Cash Express stores
in the fourth quarter for a total of 50 to 60 stores in fiscal 2006.
* The Company expects to open 10 to 20 additional ACE Cash Advance
stores in the fourth quarter for a total of 50 to 60 stores in fiscal
2006.
* The Company expects to close 4 to 6 additional stores in the fourth
quarter for a total of 20 to 22 stores in fiscal 2006.
* The Company currently estimates franchisees will open a total of
approximately 26 to 30 stores in fiscal 2006.
* The Company expects its fiscal 2006 tax rate to be 39 percent.
* The Company began expensing stock options in fiscal 2006 and expects
to record stock option expense of approximately $1 million.
* At this time ACE currently offers its customers the following loan
products:
-- Short-term consumer loans offered pursuant to state regulation
(ACE Loan) in 23 states and the District of Columbia;
-- Short-term consumer loans in Arkansas and Pennsylvania offered by
Republic Bank of Kentucky (RBT Loan). ACE expects to cease
offering this product on June 30, 2006;
-- Installment loans with a 20-week term in Arkansas and Pennsylvania
made by First Bank of Delaware (FBD Loan);
-- CSO Loans in Texas.
About ACE Cash Express
ACE Cash Express, Inc. is a leading retailer of financial services, including check cashing, short-term consumer loans, bill payment and prepaid debit card services, and the largest owner, operator and franchisor of check cashing stores in the United States. As of March 31, 2006, ACE had a network of 1,557 stores in 36 states and the District of Columbia, consisting of 1,328 company-owned stores and 229 franchised stores. ACE focuses on serving consumers, many of whom seek alternatives to traditional banking relationships in order to gain convenient and immediate access to financial services. ACE's website is found at http://www.acecashexpress.com/ .
Forward-Looking Statements
This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are generally identified by the use of words such as "expect," "anticipate," "estimate," "believe," "intend," "plan," "target," "goal," "should," "would," and terms with similar meanings.
Although ACE believes that the current views and expectations reflected in these forward-looking statements are reasonable, these views and expectations, and the related statements, are inherently subject to risks, uncertainties, and other factors, many of which are not under ACE's control and may not even be predictable. Any inaccuracy in the assumptions, as well as those risks, uncertainties and other factors could cause the actual results to differ materially from these in the forward-looking statements. These risks, uncertainties, and factors include, but are not limited to matters described in ACE's reports filed with the Securities and Exchange Commission, such as:
* ACE's relationships with True Financial, LP, Republic Bank & Trust
Company, First Bank of Delaware, Travelers Express and its affiliates,
and its bank lenders;
* ACE's relationships with providers of services or products offered by
ACE or property used in its operations;
* federal and state governmental regulation of check cashing, short-term
consumer lending and related financial services businesses;
* any impact to ACE's earnings derived from the RBT loans offered by
Republic Bank & Trust Company and the FBD loans offered by First Bank
of Delaware at ACE's stores in Pennsylvania and Arkansas from the
Federal Deposit Insurance Corporation's Revised Guidelines for Payday
Lending, which took effect on July 1, 2005 and require that such banks
develop procedures to ensure that a payday loan is not provided to any
customer with payday loans outstanding from any lender for more than 3
months in the previous 12 months;
* any litigation;
* theft and employee errors;
* the availability of adequate financing, suitable locations,
acquisition opportunities and experienced management employees to
implement ACE's growth strategy;
* increases in interest rates, which would increase ACE's borrowing
costs;
* the fragmentation of the check cashing industry and competition from
various other sources, such as banks, savings and loans, short-term
consumer lenders, and other similar financial services entities, as
well as retail businesses that offer services offered by ACE;
* the terms and performance of third-party services offered at ACE's
stores; and
* customer demand and response to services offered at ACE's stores.
ACE expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in ACE's views or expectations, or otherwise. ACE makes no prediction or statement about the performance of its common stock.
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
INTERIM UNAUDITED
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2005 2006 2005
Revenues $91,161 $78,464 $229,618 $205,237
Store expenses:
Salaries and benefits 21,743 17,593 56,997 48,147
Occupancy 11,470 9,179 30,893 25,739
Provision for loan losses
and doubtful accounts 7,927 6,293 25,548 20,755
Depreciation 2,252 2,744 6,477 6,202
Hurricane Katrina
related expenses (445) --- 1,210 ---
Other 12,618 10,542 33,191 29,915
Total store expenses 55,565 46,351 154,316 130,758
Gross margin 35,596 32,113 75,302 74,479
Region expenses 7,007 6,110 19,032 17,135
Headquarters expenses 6,694 5,295 17,101 15,041
Franchise expenses 328 321 907 909
Other depreciation and
amortization 1,038 857 2,748 2,242
Loss on early extinguishment
of debt 692 --- 692 ---
Interest expense, net 3,657 2,828 5,703 4,215
Other (income) expense, net 32 256 68 322
Income before income taxes 16,148 16,446 29,051 34,615
Provision for income taxes 6,297 6,578 11,331 13,846
Net income $9,851 $9,868 $17,720 $20,769
Earnings per share:
Basic $0.73 $0.72 $1.31 $1.54
Diluted $0.68 $0.71 $1.26 $1.49
Weighted average number of
common shares outstanding:
Basic 13,546 13,620 13,511 13,485
Diluted 14,582 13,952 14,191 13,924
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
March 31, June 30,
2006 2005
(unaudited)
ASSETS
Current Assets
Cash and cash equivalents $157,809 $109,430
Accounts receivable, net 7,236 3,969
Loans receivable, net 21,325 20,787
Prepaid expenses, inventories and
other current assets 13,022 13,685
Total Current Assets 199,392 147,871
Noncurrent Assets
Property and equipment, net 44,421 37,657
Covenants not to compete, net 2,095 1,668
Goodwill 133,199 98,702
Other assets 8,239 6,723
Total Assets $387,346 $292,621
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Revolving advances $ 79,900 $ 43,300
Accounts payable, accrued liabilities
and other current liabilities 48,999 36,117
Money orders payable 10,568 4,867
Total Current Liabilities 139,467 84,284
Noncurrent Liabilities
Deferred income tax 2,876 4,302
Deferred revenue 3,648 3,271
Convertible notes payable 19,400 ---
Other liabilities 4,558 4,079
Total Liabilities 169,949 95,936
Commitments and Contingencies
Shareholders' Equity
Preferred stock, $1 par value,
1,000,000 shares authorized, none
issued and outstanding --- ---
Common stock, $.01 par value,
50,000,000 shares authorized,
14,237,168 and 13,912,045 shares issued
and 14,025,768 and 13,700,645 shares
outstanding, respectively 140 137
Additional paid-in capital 108,564 103,544
Retained earnings 116,556 98,836
Accumulated comprehensive income (loss) 213 (56)
Treasury stock, at cost, 211,400 shares (2,707) (2,707)
Unearned compensation - restricted stock (5,369) (3,069)
Total Shareholders' Equity 217,397 196,685
Total Liabilities and
Shareholders' Equity $387,346 $292,621
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA
(unaudited)
Three Months Nine Months Year
Ended Ended Ended
March 31, March 31, June 30,
2006 2005 2006 2005 2005 2004
Company Operating and
Statistical Data:
Company-owned stores
in operation:
Beginning of period 1,301 1,085 1,142 1,026 1,026 968
Acquired 2 34 120 74 74 34
Opened 30 13 84 51 80 53
Sold (1) --- (2) (3) (6) (5)
Closed (4) (14) (16) (30) (32) (24)
End of period 1,328 1,118 1,328 1,118 1,142 1,026
Franchised stores in
operation:
Beginning of period 219 216 229 204 204 200
Opened 13 6 26 32 48 32
Acquired by ACE 0 (8) (5) (22) (22) (13)
Closed/Sold (3) (1) (21) (1) (1) (15)
End of period 229 213 229 213 229 204
Total store network 1,557 1,331 1,557 1,331 1,371 1,230
Percentage increase
(decrease) in comparable
store revenues from
prior period: (A)
Total revenue 6.8% (0.3%) 4.6% 3.6% 3.1% 5.0%
Check fees including
tax check fees 1.8% (5.2%) 1.4% (3.6%) (3.8%) 4.1%
Loan fees and interest 11.0% 8.3% 5.6% 14.4% 12.7% 7.8%
Capital Expenditures:
(in thousands)
Purchases of property and
equipment, net $5,730 $4,708 $13,269 $11,760 $18,951 $7,439
Store acquisition costs:
Property and equipment 63 344 1,888 958 958 511
Intangible assets 386 11,850 36,607 18,402 18,429 6,403
Check Cashing Data:
Face amount of checks
cashed (in millions) $1,965 $1,721 $4,543 $4,069 $5,277 $5,103
Face amount of average check $507 $500 $421 $407 $396 $388
Average fee per check $13.19 $13.48 $10.54 $10.38 $9.98 $9.91
Fees as a percentage of
average check 2.60% 2.70% 2.50% 2.55% 2.52% 2.55%
Number of checks cashed
(in thousands) 3,873 3,443 10,785 10,000 13,325 13,151
Check Collections Data:
(in thousands except
percentages)
Face amount of returned
checks $10,113 $6,990 $28,088 $19,839 $26,914 $21,705
Collections 8,521 5,427 23,289 14,759 20,951 13,947
Net write-offs $1,592 $1,563 $4,799 $5,080 $5,963 $7,758
Collections as a
percentage of returned
checks 84.3% 77.6% 82.9% 74.4% 77.8% 64.3%
Net write-offs as a
percentage of revenues 1.7% 2.0% 2.1% 2.5% 2.2% 3.1%
Net write-offs as a
percentage of the face
amount of checks cashed 0.08% 0.09% 0.11% 0.12% 0.11% 0.15%
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA
(unaudited)
(in thousands, except averages and percents)
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2005 2006 2005
Combined Short-Term Consumer
Loans Operating Data:
Volume - new loans
and refinances $148,510 $139,427 $487,099 $466,329
Average advance $343 $295 $310 $290
Average finance charge $49.22 $46.43 $46.55 $45.75
Number of loan transactions
- new loans & refinances 452 470 1,548 1,604
Matured loan volume $166,668 $145,721 $519,007 $463,743
Loan fees and interest $24,962 $21,201 $76,687 $68,938
Loan loss provision $7,882 $6,247 $25,413 $20,651
Gross margin on loans 68.4% 70.5% 66.9% 70.0%
Loan loss provision as a
percent of matured loan
volume 4.7% 4.3% 4.9% 4.5%
Loans Processed for
Republic Bank: (B)
Volume - new loans $11,742 $38,985 $66,781 $138,393
Average advance $316 $323 $312 $319
Average finance charge $55.70 $56.94 $55.09 $56.30
Number of loan transactions 37 121 214 434
Matured loan volume $15,675 $40,850 $72,838 $137,355
Loan fees and interest $2,049 $6,130 $10,529 $20,988
Provision for loan losses
payable to Republic Bank $1,766 $2,085 $5,102 $6,645
Loans Processed for First
Bank of Delaware: (C)
Volume - new loans (D) $4,936 --- $19,938 ---
Average advance $352 --- $347 ---
Average finance charge (E) $34.96 --- $34.41 ---
Number of loan transactions (F) 14 --- 57 ---
Matured loan volume (G) $25,204 --- $62,088 ---
Loan fees and interest $3,426 --- $8,823 ---
Provision for loan losses
payable to First Bank
of Delaware $848 --- $2,762 ---
Credit Services Organization
Loans (CSO): (H)
Volume - new loans $10,345 --- $10,345 ---
Average advance $406 --- $406 ---
Average finance charge $82.71 --- $82.71 ---
Number of loan transactions 25 --- 25 ---
Matured loan volume $2,022 --- $2,022 ---
Loan fees and interest $1,491 --- $1,491 ---
Loan loss provision $87 --- $87 ---
ACE Loans:
Volume - new loans and
refinances $121,487 $100,441 $390,035 $327,935
Average advance $341 $283 $306 $276
Average finance charge $46.99 $41.95 $44.78 $40.98
Number of loan transactions
- new loans and refinances 374 349 1,252 1,170
Matured loan volume $123,767 $104,871 $382,058 $326,388
Loan fees and interest $17,996 $15,071 $55,844 $47,950
Loan loss provision $5,181 $4,162 $17,462 $14,006
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA
(unaudited)
(in thousands, except averages and percents)
Year Ended June 30,
2005 2004
Combined Short-Term Consumer
Loans Operating Data:
Volume - new loans and $624,257 $527,723
Average advance $290 $278
Average finance charge $45.87 $43.71
Number of loan transactions -
new loans & refinances 2,139 1,909
Matured loan volume $613,380 $516,741
Loan fees and interest $91,793 $77,029
Loan loss provision $26,941 $24,280
Gross margin on loans 70.7% 68.5%
Loan loss provision as a percent
of matured loan volume 4.4% 4.7%
Loans Processed for Republic Bank: (B)
Volume - new loans $184,646 $159,692
Average advance $319 $296
Average finance charge $56.30 $52.11
Number of loan transactions 578 541
Matured loan volume $181,153 $157,018
Loan fees and interest $27,880 $24,036
Provision for loan losses payable
to Republic Bank $8,686 $7,390
Loans Processed for First
Bank of Delaware: (C)
Volume - new loans (D) --- ---
Average advance --- ---
Average finance charge (E) --- ---
Number of loan transactions (F) --- ---
Matured loan volume (G) --- ---
Loan fees and interest --- ---
Provision for loan losses payable to
First Bank of Delaware --- ---
Credit Services Organization
Loans (CSO): (H)
Volume - new loans --- ---
Average advance --- ---
Average finance charge --- ---
Number of loan transactions --- ---
Matured loan volume --- ---
Loan fees and interest --- ---
Loan loss provision --- ---
ACE Loans:
Volume - new loans and refinances $439,610 $368,031
Average advance $277 $269
Average finance charge $41.17 $39.40
Number of loan transactions - new
loans and refinances 1,561 1,368
Matured loan volume $432,227 $359,723
Loan fees and interest $63,913 $52,993
Loan loss provision $18,255 $16,890
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA
(unaudited)
(in thousands, except averages and percents)
Three Months Nine Months Year
Ended Ended Ended
March 31, March 31, June 30,
2006 2005 2006 2005 2005 2004
ACE Loans Balance
Sheet Data:
Gross loans
receivable $34,315 $28,577 $34,315 $28,577 $31,790 $27,663
Less: Allowance
for losses 12,990 12,073 12,990 12,073 11,003 10,616
Loans receivable,
net of allowance $21,325 $16,504 $21,325 $16,504 $20,787 $17,047
Allowance for losses
on loans receivable:
Beginning of
period $14,406 $12,961 $11,003 $10,616 $10,616 $8,734
Provision for
loan losses 5,181 4,162 17,462 14,006 18,255 16,890
Charge-offs (6,597) (5,639) (15,555) (14,266) (18,996) (15,295)
Recoveries --- 589 80 1,717(I) 1,128 287
End of period $12,990 $12,073 $12,990 $12,073 $11,003 $10,616
Allowance as a
percent of gross
loans receivable 37.9% 42.2% 37.9% 42.2% 34.6% 38.3%
(A) Calculated based on changes in revenue for all company-owned stores
open in both periods and open for at least 13 months.
(B) Republic Bank loans are short-term consumer loans made by Republic
Bank & Trust Company at our company-owned stores in Arkansas,
Pennsylvania and Texas since January 1, 2003. Effective March 1,
2006, we discontinued offering Republic Bank loans in Texas.
(C) First Bank of Delaware loans are 20-week installment loans made by
First Bank of Delaware at our company-owned stores in Arkansas,
Pennsylvania, and Texas since August 2005. Effective March 1, 2006,
we discontinued offering First Bank of Delaware loans in Texas.
(D) Includes only the loan origination amount for each installment loan.
(E) The loans processed for First Bank of Delaware are 20-week loans;
the average finance charge is presented based upon the 14-day
average duration of the ACE loans and the Republic Bank loans.
(F) Includes the initial 20-week loan transaction only.
(G) Includes maturing principal amount for each 2-week payment.
(H) We began offering CSO loans in Texas on March 1, 2006.
(I) Includes the recovery of $0.9 million from the sale of previously
charged-off ACE loans.
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
REVENUE ANALYSIS
(unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2005 2006 2005
Revenues (in thousands):
Check cashing fees $31,586 $26,487 $93,789 $83,537
Loan fees and interest 24,962 21,201 76,686 68,938
Tax check fees 19,485 18,854 19,851 19,164
Bill payment services 7,142 5,377 18,505 15,011
Money transfer services 3,950 3,002 10,225 8,710
Money order fees 1,844 1,783 5,114 5,209
Franchise revenues 835 763 2,429 2,365
Other fees 1,357 997 3,019 2,303
Total revenue $91,161 $78,464 $229,618 $205,237
Three Months Ended Nine Months Ended
March 31, March 31,
2006 2005 2006 2005
Percentage of Revenues:
Check cashing fees 34.7% 33.7% 40.9% 40.7%
Loan fees and interest 27.4 27.0 33.4 33.6
Tax check fees 21.4 24.0 8.6 9.3
Bill payment services 7.8 6.9 8.1 7.3
Money transfer services 4.3 3.8 4.4 4.3
Money order fees 2.0 2.3 2.2 2.5
Franchise revenues 0.9 1.0 1.1 1.2
Other fees 1.5 1.3 1.3 1.1
Total revenue 100.0% 100.0% 100.0% 100.0%
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
REVENUE ANALYSIS
(unaudited)
Year Ended June 30,
2005 2004 2003
Revenues (in thousands):
Check cashing fees $111,284 $108,439 $104,175
Loan fees and interest 91,793 77,029 70,806
Tax check fees 20,335 20,755 21,528
Bill payment services 20,266 16,960 13,507
Money transfer services 11,868 11,136 10,898
Money order fees 6,875 6,330 6,960
Franchise revenues 3,180 2,774 2,346
Other fees 3,048 3,236 4,069
Total revenue $268,649 $246,659 $234,289
Year Ended June 30,
2005 2004 2003
Percentage of Revenues:
Check cashing fees 41.4% 44.0% 44.5%
Loan fees and interest 34.2 31.2 30.2
Tax check fees 7.6 8.4 9.2
Bill payment services 7.5 6.9 5.8
Money transfer services 4.4 4.5 4.6
Money order fees 2.6 2.6 3.0
Franchise revenues 1.2 1.1 1.0
Other fees 1.1 1.3 1.7
Total revenue 100.0% 100.0% 100.0%
CONFERENCE CALL
April 27, 2006
5 p.m. EDT
An investor conference call will be held today, April 27, 2006 at 5 p.m. EDT, regarding the release of ACE Cash Express, Inc.'s fiscal 2006, third quarter earnings. The Company invites you to participate in the conference call by dialing (800) 442-9701. The confirmation code to access the call is 7592978. Jay B. Shipowitz, President and Chief Executive Officer and William S. McCalmont, Executive Vice President and Chief Financial Officer, will present the third quarter review.
For your convenience, the conference call will be replayed in its entirety beginning at approximately 6 p.m. EDT on April 27th through 12 p.m. EDT on May 4th. If you wish to listen to a replay of this conference call, dial (800) 642-1687, provide your name and use confirmation number 7592978.
If you have questions regarding this conference call, please contact Joy Robinson at (972) 753-2305.
DATASOURCE: ACE Cash Express, Inc.
CONTACT: William S. McCalmont, Executive Vice President & CFO,
+1-972-753-2314, or , or Douglas Lindsay, Vice
President of Finance, +1-972-753-2342, or , both
of ACE Cash Express, Inc.
Web site: http://www.acecashexpress.com/