ACE Cash Express' Net Income Increases 23 Percent During Third Quarter 1998.DALLAS--(BUSINESS WIRE)--April 22, 1998--ACE Cash Express, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AACE AACE Association for the Advancement of Computing in Education AACE American Association of Clinical Endocrinologists AACE American Association of Cost Engineers AACE Association for the Advancement of Cost Engineering ), the nation's largest check-cashing chain and a significant provider of related retail financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , announced a 23 percent net income increase for the third quarter ending March 31, 1998, in part because of sustained growth in check cashing fees increasing 9 percent or $1.2 million. Third Quarter Results Net income for the third quarter was $3.1 million on revenue of $29.3 million, compared with net income of $2.6 million on revenue of $26.2 million in the third quarter of 1997. Revenues increased 12 percent for the third quarter of 1998 compared to the same period in 1997. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were 31 cents, a 19 percent increase over third quarter 1997 earnings per share of 26 cents. During the fiscal 1998 third quarter, earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The company offers an electronic bill payment service, which experienced 88 percent growth during the 1998 third quarter. Revenues from bill payments increased to $1.2 million in the third quarter of fiscal 1998 from $637,000 during the fiscal 1997 third quarter. In addition to growth in bill payment services, ACE realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. in loan fee revenue. ACE earned $2.6 million in loan fee revenue during the 1998 third quarter, an increase of 79 percent over the $1.5 million loan fee revenue for the same period in 1997. In the third quarter, ACE continued its expansion plans. The company opened nine new stores, acquired five stores and added nine franchised locations. Fiscal Year 1998 Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Results Net income for the nine months ended March 31, 1998, increased 34 percent to $4.6 million from $3.4 million recorded in the first nine months of the previous fiscal year. Diluted earnings per share increased 29 percent to 45 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared with 35 cents per share in the first nine months of fiscal 1997. Revenues for the first three quarters of fiscal 1998 of $74.2 million exceeded the first three quarters of fiscal 1997 by $8.8 million or 14 percent. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 26 percent to $15.1 million from $12.0 million recorded in the first nine months of the previous fiscal year. During the first nine months of fiscal 1998, the company opened 36 new stores, acquired 12 stores and added 32 franchised locations. The company ended the quarter with a total of 746 stores; a combination of 658 company-owned stores and 88 franchised locations. "We are pleased with ACE's strategic accomplishments and financial results for the third quarter and the first nine months of fiscal 1998," said Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. H. Neustadt Neustadt (German for new city) may refer to: Places Germany
armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Bank and Chase Bank of Texas clearly demonstrate our desire to meet the evolving needs of our customers and our business. ACE is well positioned to maintain market leadership." ACE Cash Express, Inc. is headquartered in Irving, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to and is the largest owner, operator and franchiser of check-cashing stores in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Founded in 1968, the company has a total network of 746 stores comprising 658 company-owned stores and 88 franchised stores in 26 states and Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. , D.C. ACE offers a broad range of financial services, which include check cashing; MoneyGram MoneyGram International, Inc. (NYSE: MGI) is a United States-based financial services company, headquartered in Minneapolis, Minnesota. It has additional facilities in Brooklyn Center, Minnesota, Lakewood, Colorado, and international offices in over 170 countries. wire transfers; money orders; small consumer loans; bill payment services; and telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. services, including prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. long distance and local
phone service. For additional information, visit the ACE web site at
www.acecashexpress.com.Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Disclaimer (networking) disclaimer - Statement ritually appended to many Usenet postings (sometimes automatically, by the posting software) reiterating the fact (which should be obvious, but is easily forgotten) that the article reflects its author's opinions and not necessarily those of the : This release may contain certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding the Company's expected performance for future periods. Actual results for such periods may materially differ. Such forward-looking statements involve risks and uncertainties, including risks of changing market conditions in the overall economy and the industry, consumer demand, the opening of new stores, the success of the Company's acquisition strategy and other factors detailed from time to time in the Company's annual and other reports filed with the Securities and Exchange Commission. -0-
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
INTERIM UNAUDITED
CONSOLIDATED STATEMENTS OF EARNINGS
Three Months Ended Nine Months Ended
March 31, March 31,
------------------ ------------------
1998 1997 1998 1997
-------- -------- -------- --------
(in thousands, except per share data)
Revenues $29,340 $26,218 $74,159 $65,337
Store expenses:
Salaries and benefits 7,925 7,157 20,802 18,966
Occupancy 3,877 3,598 11,364 10,292
Depreciation 1,036 858 2,983 2,441
Other 4,966 4,787 14,747 13,139
-------- -------- -------- --------
Total store expenses 17,804 16,400 49,896 44,838
-------- -------- -------- --------
Store gross margin 11,536 9,818 24,263 20,499
Region expenses 2,107 1,920 6,054 5,479
Headquarters expenses 2,278 1,981 5,318 4,616
Franchise expenses 286 241 729 767
Other depreciation and
amortization 877 776 2,569 2,162
Interest expense, net 738 623 1,903 1,736
Other expenses 4 45 54 88
-------- -------- -------- --------
Income before income taxes 5,246 4,232 7,636 5,651
Income taxes 2,098 1,663 3,054 2,219
-------- --------
======== ========
Net income $ 3,148 $ 2,569 $ 4,582 $ 3,432
======== ======== ======== ========
EBITDA $ 7,897 $ 6,489 $15,091 $11,990
======== ======== ======== ========
Basic earnings per share $ 0.32 $ 0.27 $ 0.47 $ 0.36
======== ======== ======== ========
Weighted average number of
common shares
outstanding - basic EPS 9,779 9,595 9,736 9,538
======== ======== ======== ========
Diluted earnings per share $ 0.31 $ 0.26 $ 0.45 $ 0.35
======== ======== ======== ========
Weighted average number of
common and common
equivalent shares outstanding
- diluted EPS 10,239 9,900 10,152 9,812
======== ======== ======== ========
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
March 31, June 30,
1998 1997
--------- ---------
(unaudited)
ASSETS
Cash and cash equivalents $ 59,824 $ 55,494
Accounts and notes receivable, net 7,507 7,459
Prepaid expenses 748 573
Inventories 1,866 2,052
Property and equipment, net 25,069 23,920
Covenants not to compete, net 2,437 2,775
Excess of purchase price over fair
value of assets acquired, net 29,444 28,469
Other assets 3,369 3,608
========= =========
$130,264 $124,350
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Money order principal payable $ 49,649 $ 41,281
Revolving advances from money order supplier 605 7,166
Accounts payable and accrued liabilities 10,944 11,031
Notes payable 130 637
Senior secured notes payable 20,702 20,231
Term advances from money order supplier 7,598 8,209
Other liabilities 4,336 4,739
Shareholders' equity:
Preferred stock, $1 par value,
1,000,000 shares authorized, none
issued and outstanding - -
Common stock, $.01 par value,
20,000,000 shares authorized,
9,786,528 and 9,668,612 shares
issued and outstanding,
respectively 98 96
Additional paid-in capital 19,790 19,130
Retained earnings 16,412 11,830
--------- ---------
Total shareholders' equity 36,300 31,056
--------- ---------
$130,264 $124,350
========= =========
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA
Three Months Ended Nine Months Ended
March 31, March 31,
Year Ended June 30,
---------------- ----------------
1998 1997 1998 1997
------- ------- ------- -------
(unaudited) (unaudited)
Company Operating
and Statistical Data:
Company-owned stores in operation:
Beginning of period 644 592 617 544
Acquired 5 9 12 43
Opened 9 4 36 29
Closed - (4) (7) (15)
======= ======= ======= =======
End of period 658 601 658 601
======= ======= ======= =======
Percentage increase in comparable
store revenues from prior period:
Exclusive of tax-related
revenues (1) 6.8% 5.0% 7.1% 6.4%
Total (2) 5.0% 9.6% 6.2% 8.0%
Capital expenditures
(in thousands) $ 968 $ 1,258 $ 3,618 $ 3,444
Cost of net assets acquired
(in thousands) $ 1,746 $ 2,087 $ 3,725 $ 7,711
Operating Data:
Face amount of checks cashed
(in millions) $ 827 $ 762 $ 2,170 $ 1,947
Face amount of money orders sold
(in millions) $ 486 $ 475 $ 1,381 $ 1,356
Face amount of money orders sold
as a percentage of the face
amount of checks cashed 58.8% 62.3% 63.6% 69.6%
Face amount of average check $ 346 $ 333 $ 306 $ 292
Average fee per check $ 8.86 $ 8.59 $ 7.33 $ 7.08
Number of checks cashed
(in thousands) 2,388 2,291 7,093 6,661
Number of money orders sold
(in thousands) 3,673 3,539 10,555 10,161
Collections Data:
Face amount of returned checks
(in thousands) $ 2,384 $ 2,652 $ 7,865 $ 7,699
Collections (in thousands) 1,562 1,627 4,748 4,725
======= ======= ======= =======
Net write-offs (in thousands) $ 822 $ 1,025 $ 3,117 $ 2,974
======= ======= ======= =======
Collections as a percentage of
returned checks 65.5% 61.3% 60.4% 61.4%
Net write-offs as a percentage
of revenues 2.8% 3.9% 4.2% 4.6%
Net write-offs as a percentage
of the face amount of checks
cashed .10% .13% .14% .15%
(1) Change in revenues computed excluding electronic tax filing and
tax refund check cashing for both periods compared.
(2) Calculated based on the changes in revenues of all stores open
for both the full year and the interim periods compared.
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA
Year Ended June 30,
-------------------------
1997 1996 1995
------- ------- -------
Company Operating and Statistical Data:
Company-owned stores in operation:
Beginning of period 544 452 343
Acquired 46 69 77
Opened 45 33 40
Closed (18) (10) (8)
======= ======= =======
End of period 617 544 452
======= ======= =======
Percentage increase in comparable store
revenues from prior period:
Exclusive of tax-related revenues (1) 5.5% 4.1% 2.9%
Total (2) 6.3% 4.7% 1.6%
Capital expenditures (in thousands) $ 4,868 $ 3,435 $ 4,187
Cost of net assets acquired (in thousands) $10,766 $14,432 $14,000
Operating Data:
Face amount of checks cashed (in millions) $ 2,621 $ 2,144 $ 1,567
Face amount of money orders sold (in
millions) $ 1,812 $ 1,531 $ 1,213
Face amount of money orders sold as a
percentage of the face amount of
checks cashed 69.1% 71.4% 77.4%
Face amount of average check $ 291 $ 285 $ 284
Average fee per check $ 6.97 $ 6.81 $ 6.79
Number of checks cashed (in thousands) 9,020 7,535 5,516
Number of money orders sold (in thousands) 13,608 11,835 9,334
Collections Data:
Face amount of returned checks (in
thousands) $10,399 $ 8,661 $ 6,206
Collections (in thousands) 6,554 5,004 3,786
======= ======= =======
Net write-offs (in thousands) $ 3,845 $ 3,657 $ 2,420
======= ======= =======
Collections as a percentage of returned
checks 63.0% 57.8% 61.0%
Net write-offs as a percentage of revenues 4.4% 5.3% 5.1%
Net write-offs as a percentage of the face
amount of checks cashed .15% .17% .15%
(1) Change in revenues computed excluding electronic tax filing and
tax refund check cashing for both periods compared.
(2) Calculated based on the changes in revenues of all stores open
for both the full year and the interim periods compared.
Components of Revenues:
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -------------------
($ in thousands) ($ in thousands)
1998 1997 1998 1997
-------- -------- -------- --------
(unaudited) (unaudited)
Check fees $14,579 $13,425 $45,159 $40,622
Tax check fees 6,579 6,252 6,868 6,566
Loan fees and interest 2,638 1,472 6,984 4,042
Money transfer services 1,610 1,404 4,483 4,294
Bill payment services 1,197 637 2,752 1,571
Money order sales 750 729 2,149 2,063
New customer fees 583 606 1,669 1,535
Franchise revenues 273 285 1,176 901
Electronic tax filings 235 291 242 299
Other fees 896 1,117 2,677 3,444
======== ======== ======== ========
Total revenue $29,340 $26,218 $74,159 $65,337
======== ======== ======== ========
Three Months Ended Nine Months Ended
March 31, March 31,
------------------- -------------------
(Percentage of Revenues)(Percentage of Revenues)
1998 1997 1998 1997
-------- -------- -------- --------
(unaudited) (unaudited)
Check fees 49.7 % 51.2 % 60.9 % 62.2 %
Tax check fees 22.4 23.8 9.3 10.0
Loan fees and interest 9.0 5.6 9.4 6.2
Money transfer services 5.5 5.4 6.0 6.6
Bill payment services 4.1 2.4 3.7 2.4
Money order sales 2.6 2.8 2.9 3.2
New customer fees 2.0 2.3 2.2 2.3
Franchise revenues 0.9 1.1 1.6 1.4
Electronic tax filings 0.8 1.1 0.3 0.5
Other fees 3.0 4.3 3.7 5.2
======== ======== ======== ========
Total revenue 100.0 % 100.0 % 100.0 % 100.0 %
======== ======== ======== ========
Components of Revenues:
Year Ended June 30,
--------------------------------
($ in thousands)
1997 1996 1995
-------- -------- --------
Check fees $54,529 $44,664 $33,008
Tax check fees 8,306 6,663 4,480
Loan fees and interest 5,703 2,462 597
Money transfer services 5,749 4,740 1,775
Bill payment services 2,197 1,320 819
Money order sales 2,757 2,413 2,089
New customer fees 2,051 1,338 806
Franchise revenues 1,398 633 -
Electronic tax filings 395 402 533
Other fees 4,307 4,324 3,683
======== ======== ========
Total revenue $87,392 $68,959 $47,790
======== ======== ========
Year Ended June 30,
--------------------------------
(Percentage of Revenues)
1997 1996 1995
-------- -------- --------
Check fees 62.4 % 64.8 % 69.1 %
Tax check fees 9.5 9.7 9.4
Loan fees and interest 6.5 3.6 1.2
Money transfer services 6.6 6.9 3.7
Bill payment services 2.5 1.9 1.7
Money order sales 3.2 3.5 4.4
New customer fees 2.3 1.9 1.7
Franchise revenues 1.6 0.9 -
Electronic tax filings 0.4 0.6 1.1
Other fees 5.0 6.2 7.7
======== ======== ========
Total revenue 100.0 % 100.0 % 100.0 %
======== ======== ========
-0- TELECONFERENCE April 22, 1998 3:00 p.m. (CST CST abbr. 1. Central Standard Time 2. convulsive shock treatment CST Central Standard Time Noun 1. ) An investor relations Investor relations The process by which the corporation communicates with its investors. teleconference call will be held on Wednesday Wednesday: see week. , April 22 at 3:00 p.m. (CST) regarding the release of ACE Cash Express third quarter earnings. We invite you to participate in the conference call by dialing 1-800-374-1747. Donald H. Neustadt, president and chief executive officer; Raymond Raymond, town, Canada Raymond, town (1991 pop. 3,130), S Alta., Canada, SE of Lethbridge, in a sugar beet area. Sugar is refined and honey is produced there. A provincial agricultural college is in the town. E. McCarty McCarty is the name of:
For your convenience, the teleconference call will be replayed in its entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. beginning at 6:00 p.m. on April 22 through 6:00 p.m. on April 23. If you wish to listen to a replay of this conference call, dial 1-800-642-1687, provide your last name and use confirmation number 73914. If you have any questions regarding this teleconference call, please contact Stacy Stacy may refer to: Places:
CONTACT: ACE Cash Express, Inc. Jay B. Shipowitz, 972/550-5030 or Stacy R. Wells, 972/550-5037 (investor relations) |
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