AACE Ace Cash Express

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/

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