Ace Cash Express, Inc. Announces Record Fiscal 1996 Earnings.DALLAS--(BUSINESS WIRE)--Sept. 6, 1996--ACE Cash Express, Inc. (NASDAQ/AACE), 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 , the nation's largest chain of check cashing stores, announced its fiscal 1996 fourth quarter and annual operating results for the periods ended June June: see month. 30, 1996. o Revenues for fiscal 1996 rose 44 percent to $69.0 million from the $47.8 million reported last year. o Net income increased 67 percent to $3.3 million (78 cents a share on 4.3 million shares) for fiscal 1996 compared to the $2.0 million (48 cents a share on 4.2 million shares) recorded in fiscal 1995. o Same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of for fiscal 1996 increased 4.7 percent for the 326 stores open two full years. o 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.
(EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) increased 87 percent to $12.1 million as compared to the $6.5 million reported in fiscal 1995. o Revenues for the fourth quarter of fiscal 1996 rose 44 percent to $19.8 million from the $13.8 million reported in the fourth quarter of fiscal 1995. o Net income for the fourth quarter increased 16 percent to $1.0 million (24 cents a share) from the $.9 million (21 cents a share) recorded in fiscal 1995. o Exclusive of tax-related revenues, same store sales increased 5.0 percent, as compared to the fourth quarter of fiscal 1995. Total same store sales decreased 2.4 percent for this quarter. Quarter to quarter same store sales comparisons were effected by changes in IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. policies causing delays in distribution of tax refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies checks in fiscal 1995 benefitting the company's fourth quarter. These delays were substantially eliminated in fiscal 1996. o EBITDA for the fourth quarter increased 55 percent to $3.6 million from the $2.3 million recorded in fiscal 1995. The company recorded another strong unit growth year in fiscal 1996. During the fiscal year, ACE opened 33 new units, mostly in existing markets, and acquired 69 stores for total unit growth of 20 percent. These acquisitions came from 12 separate transactions, the largest of which was the Check Express transaction where 29 stores were acquired in February February: see month. 1996. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. 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
Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. evidence of the success of the acquisition strategy begun in fiscal 1995 and continued through fiscal 1996. Clearly, acquired stores provided much of the revenue and earnings growth reported this year. Beyond acquisitions, however, many other positive factors contributed to fiscal 1996's success. Same store sales increased an overall 4.7 percent for the year with check fees, loans and tax check fees all providing substantial increases. In fiscal 1995, the company began offering a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. payday loan A payday loan or paycheck advance is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. Typical loans are between $100 and $1500, on a two-week term and have interest rates in the range of 390 percent to 900 percent program in a relatively small number of its stores. The small consumer loan product has now been introduced into 149 stores and is providing an important source of revenue growth. With a network of over 670 stores, ACE has a strong presence in most of the 40 markets it serves. We intend to maintain the company's momentum for fiscal 1997 through acquisitions and continued new store openings." -0-
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share data)
Three Months Ended Year Ended
June 30, June 30,
------------------ ------------------
1996 1995 1996 1995
-------- -------- -------- --------
Revenues $ 19,757 $ 13,759 $ 68,959 $ 47,790
Store expenses:
Salaries and benefits 5,764 4,369 20,786 15,352
Occupancy 3,116 2,363 11,284 8,677
Depreciation 763 577 2,752 2,074
Other 4,141 2,532 13,730 9,368
-------- -------- -------- --------
Total store expenses 13,784 9,841 48,552 35,471
Region expenses 1,570 1,085 5,647 4,139
Headquarters expenses 1,133 1,080 4,744 3,764
Franchise expenses 277 -- 458 --
Other depreciation and
amortization 610 339 2,152 1,219
Interest expense, net 475 113 1,714 103
Other expense 158 6 236 29
-------- -------- -------- --------
Income before income taxes 1,750 1,295 5,456 3,065
Income taxes 723 412 2,130 1,076
-------- -------- -------- --------
Net income $ 1,027 $ 883 $ 3,326 $ 1,989
======== ======== ======== ========
EBITDA $ 3,598 $ 2,324 $ 12,074 $ 6,462
======== ======== ======== ========
Earnings per share:
Earnings $ .24 $ .21 $ .78 $ .48
======== ======== ======== ========
Weighted average number of
common and common equivalent
shares outstanding 4,306 4,163 4,253 4,157
======== ======== ======== ========
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
(in thousands, except share and per share data)
June 30
---------------------------
1996 1995
----------- -----------
(unaudited)
Cash and cash equivalents $ 56,603 $ 49,249
Accounts receivable, net 4,891 1,633
Prepaid expenses 328 427
Inventories 2,084 1,633
Property and equipment, net 19,469 15,431
Covenants not to compete, net 2,372 2,619
Excess purchase price over fair value
of net assets acquired, net 23,124 15,692
Other assets 1,762 860
Net assets held for sale 3,197 --
----------- -----------
$113,830 $ 87,544
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Money order principal payable $ 35,488 $ 26,479
Revolving Advances from money order
supplier 21,157 22,232
Accounts payable and accrued liabilities 10,453 6,408
Notes payable 2,320 565
Term advances from money order supplier 16,969 9,732
Other liabilities 2,207 835
Shareholders' equity:
Preferred stock, $1 par value, 1,000,000
shares authorized, none issued and
outstanding -- --
Common stock, $.01 par value, 10,000,000
shares authorized, and 4,218,906 and
4,136,916 issued and outstanding 42 41
Additional paid-in capital 18,130 17,514
Retained earnings 7,064 3,738
---------- ----------
Total shareholders' equity 25,236 21,293
---------- ----------
$ 113,830 $ 87,544
========== ==========
CONSOLIDATED SUPPLEMENTAL STATISTICAL DATA
(in thousands, except store and average check data)
Three Months
Ended Year Ended
June 30, June 30,
---------------- -------------------------
1996 1995 1996 1995 1994
------- ------- ------- ------- -------
Company Operating and
Statistical Data:
Stores in operation:
Beginning of period 530 403 452 343 276
Acquired 9 38 69 77 32
Opened 7 13 33 40 47
Closed (2) (2) (10) (8) (12)
------- ------- ------- ------- -------
End of period 544 452 544 452 343
======= ======= ======= ======= =======
Percentage increase
in comparable store
revenue from prior year:
Exclusive of tax related
revenues (1) 5.0% 2.8% 4.1% 2.9% 1.3%
Total revenues (2) (2.4%) 13.8% 4.7% 1.6% 1.0%
Capital expenditures
(in thousands) $ 964 $ 945 $ 3,435 $ 3,490 $ 4,367
Cost of acquired stores
(in thousands) $ 1,257 $10,175 $ 9,555 $14,606 $ 4,846
----------------------------------------------------------------------- Operating Data: Face amount of checks cashed (in millions) $ 575 $ 451 $ 2,144 $ 1,579 $ 1,309 Face amount of money orders sold (in millions) $ 419 $ 323 $ 1,531 $ 1,213 $ 1,042 Face amount of money orders sold as a percentage of face amount of checks cashed 72.9% 71.6% 71.4% 76.8% 79.6% Face amount of average check $ 278 $ 300 $ 285 $ 284 $ 286 Average fee per check $ 6.80 $ 7.32 $ 6.81 $ 6.78 $ 6.92 Number of checks cashed (in thousands) 2,064 1,488 7,535 5,528 4,602 Number of money orders sold (in thousands) 3,185 2,481 11,835 9,334 8,266 -----------------------------------------------------------------------
Collections Data:
Face amount of
returned checks
(in thousands) $ 2,343 $ 1,680 $ 8,661 $ 6,419 $ 5,196
Collections
(in thousands) 1,259 1,042 5,004 3,940 3,304
------- ------- ------- ------- -------
Net write-offs
(in thousands) $ 1,084 $ 638 $ 3,657 $ 2,479 $ 1,892
======= ======= ======= ======= =======
Collections as a percentage of returned checks 53.7% 62.0% 57.8% 61.4% 63.6% Net write-offs as a percentage of revenues 5.5% 4.6% 5.3% 5.2% 4.7% Net write-offs as a percentage of the face amount of checks cashed .19% .14% .17% .16% .14%
(1) Change in revenues computed excluding electronic tax filing and
tax refund check cashing revenues in the periods compared.
(2) Calculated based on the change in revenues of all stores open
for the full periods compared.
Components of Revenues:
Three months ended
June 30, Year ended June 30,
--------------------------------------------
($ in thousands) ($ in thousands)
1996 1995 1996 1995 1994
------- ------- ------- ------- -------
Check fees $12,154 $ 8,596 $44,664 $33,008 $28,071
Tax check fees 1,875 2,304 6,663 4,480 3,757
Money transfer
services 1,672 558 4,740 1,775 1,155
Loan fees and interest 910 284 2,462 597 164
Money order sales 654 541 2,413 2,089 1,800
New customer fees 381 266 1,338 806 504
Bill payment services 381 277 1,320 819 425
Food stamp distribution 131 435 789 1,684 1,155
Franchise revenues 388 -- 633 -- --
Electronic tax filing 89 -- 402 533 1,065
Other fees 1,122 498 3,535 1,999 1,806
------- ------- ------- ------- -------
Total revenue $19,757 $13,759 $68,959 $47,790 $39,902
======= ======= ======= ======= =======
Three months ended
June 30, Year ended June 30,
--------------------------------------------
(% of Revenues) (% of Revenues)
1996 1995 1996 1995 1994
------- ------- ------- ------- -------
Check fees 61.5% 62.5% 64.8% 69.1% 70.3%
Tax check fees 9.5 16.7 9.7 9.4 9.4
Money transfer
services 8.5 4.1 6.9 3.7 2.9
Loan fees and interest 4.6 2.1 3.6 1.2 0.4
Money order sales 3.3 3.9 3.5 4.4 4.5
New customer fees 1.9 1.9 1.9 1.7 1.3
Bill payment services 1.9 2.0 1.9 1.7 1.1
Food stamp distribution 0.7 3.2 1.1 3.5 2.9
Franchise revenues 2.0 -- 0.9 -- --
Electronic tax filing 0.5 -- 0.6 1.1 2.7
Other fees 5.7 3.6 5.1 4.2 4.5
------- ------- ------- ------- -------
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0%
======= ======= ======= ======= =======
TELECONFERENCE An investor relations Investor relations The process by which the corporation communicates with its investors. teleconference call will be held on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , Sept. 6, 1996 at 1:30 p.m. (central) regarding the release of our fourth quarter earnings. We invite you to participate in the conference call by dialing 1-800/374-1747, Don Neustadt, president/CEO, Ed McCarty McCarty is the name of:
If you have any questions regarding this teleconference call, please contact Krista Krista may refer to: People
In places:
Yours truly, Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs E. Larson Larson may refer to: People with the surname Larson:
CONTACT: ACE Cash Express, Inc., Thomas E. Larson, chief financial officer, 214/550-5030. |
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