DALLAS, Aug. 29 /PRNewswire-FirstCall/ -- ACE Cash Express, Inc.
(NASDAQ:AACE) announced fiscal 2006 net income of $25.0 million and
earnings per share of $1.76 per share, compared to fiscal 2005 net
income of $27.4 million and $1.98 per share. Net income for 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
self-service machines in H&R Block locations. Additionally, net
income for fiscal 2005 includes a one-time after-tax charge of
approximately $0.6 million related to a cumulative change to the
Company's lease accounting practices. During fiscal 2006, ACE's
total revenue increased 15 percent to $309.9 million from $268.6
million in the prior fiscal year. During fiscal 2006, the Company
opened 51 newly constructed ACE Cash Express stores, opened 50 ACE
Cash Advance stores, acquired 135 stores, sold 2 stores to ACE
franchisees and closed 23 company-owned stores. ACE franchisees
also opened 32 stores. At the end of the fiscal year, ACE had a
network of 1,573 stores, consisting of 1,353 company-owned stores
and 220 franchised stores. Fiscal Fourth Quarter Results The fiscal
fourth quarter 2006 net income was $7.3 million or $0.50 per share,
compared to fiscal fourth quarter 2005 net income of $6.6 million
or $0.48 per share. During the fiscal fourth quarter of 2006, ACE's
total revenue improved 27 percent to $80.3 million versus $63.4
million in the prior year period. During the fiscal fourth quarter
2006, the Company opened 17 company-owned stores, including 10 ACE
Cash Advance stores, acquired 15 stores and closed 7 company-owned
stores. ACE franchisees also opened an additional 6 stores during
the quarter. 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 June 30, 2006, ACE had a
network of 1,573 stores in 38 states and the District of Columbia,
consisting of 1,353 company-owned stores and 220 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, the ability of ACE and JLL
Partners to satisfy the various conditions contained in the merger
agreement between the parties, including ACE shareholder approval,
government approvals and other customary conditions, and matters
described in ACE's reports filed with the Securities and Exchange
Commission, such as: -- ACE's relationships with True Financial,
LP, 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 installment 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. Additional Information and Where to Find It ACE has
filed with the Securities and Exchange Commission ("SEC") a
preliminary proxy statement and other relevant documents in
connection with the proposed acquisition of ACE by JLL. Investors
and security holders of ACE are urged to read the proxy statement
and other relevant documents (and the definitive proxy statement
and other relevant documents when it becomes available), because
they contain important information about ACE, JLL and the proposed
merger. Investors and security holders of ACE may obtain free
copies of the proxy statement and other relevant documents filed
with the SEC at the SEC's website at http://www.sec.gov/ , or at
ACE's website at http://www.acecashexpress.com/ . In addition,
investors and security holders of ACE may obtain free copies of the
definitive proxy statement (when it becomes available) by writing
to ACE Cash Express, Inc., 1231 Greenway Drive, Suite 600, Irving,
Texas 75038 Attention: Legal Department, or by emailing ACE at .
ACE and its directors, executive officers, certain members of
management and certain employees may be deemed to be participants
in the solicitation of proxies in connection with the proposed
acquisition of ACE by JLL. A description of the interests in ACE of
its directors and executive officers is set forth in ACE's
Quarterly Report on Form 10-Q for the quarter ended March 30, 2006
filed with the SEC on May 5, 2006, ACE's Annual Report on Form 10-K
for the fiscal year ended June 30, 2006 filed with the SEC on
August 29, 2006 and in ACE's proxy statement for its 2005 annual
meeting of shareholders filed with the SEC on October 13, 2005.
Additional information regarding the persons who may, under the
rules of the SEC, be deemed participants in the solicitation of
proxies in connection with the proposed acquisition, and a
description of their direct and indirect interests in the proposed
merger, is set forth in the preliminary proxy statement filed with
the SEC. ACE CASH EXPRESS, INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF EARNINGS (in thousands, except per share amounts)
Three Months Ended Year Ended June 30, June 30, 2006 2005 2006 2005
Revenues $ 80,291 $ 63,412 $ 309,909 $ 268,649 Store expenses:
Salaries and benefits 20,047 17,146 77,044 65,293 Occupancy 11,736
9,029 42,629 34,768 Provision for loan losses and doubtful accounts
9,177 6,335 34,725 27,090 Depreciation 2,354 1,482 8,831 7,684
Hurricane Katrina related expenses (56) --- 1,154 --- Other 10,586
8,483 43,777 38,398 Total store expenses 53,844 42,475 208,160
173,233 Gross margin 26,447 20,937 101,749 95,416 Region expenses
6,775 5,836 25,807 22,971 Headquarters expenses 5,340 4,204 22,441
19,245 Franchise expenses 323 318 1,230 1,227 Other depreciation
and amortization 915 852 3,663 3,094 Interest expense, net 1,169
665 6,872 4,880 Loss on early extinguishment of debt (24) --- 668
--- Other (income) expense, net (14) (1,186) 54 (864) Income before
income taxes 11,963 10,248 41,014 44,863 Provision for income taxes
4,666 3,651 15,997 17,497 Net income $ 7,297 $ 6,597 $ 25,017 $
27,366 Earnings per share: Basic $ 0.54 $ 0.49 $ 1.85 $ 2.06
Diluted $ 0.50 $ 0.48 $ 1.76 $ 1.98 Weighted average number of
common shares outstanding: Basic 13,554 13,421 13,521 13,275
Diluted 14,710 13,796 14,377 13,821 ACE CASH EXPRESS, INC. AND
SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except
share and per share amounts) June 30, June 30, 2006 2005 ASSETS
Current Assets Cash and cash equivalents $ 152,652 $ 109,430
Accounts receivable, net 7,717 3,969 Loans receivable, net 26,663
20,787 Prepaid expenses, inventories and other current assets
14,047 13,685 Total Current Assets 201,079 147,871 Noncurrent
Assets Property and equipment, net 46,657 37,657 Covenants not to
compete, net 2,088 1,668 Goodwill 134,377 98,702 Other assets 8,333
6,723 Total Assets $ 392,534 $ 292,621 LIABILITIES AND
SHAREHOLDERS' EQUITY Current Liabilities Revolving advances $
77,300 $ 43,300 Accounts payable, accrued liabilities and other
current liabilities 45,881 36,117 Money orders payable 10,594 4,867
Total Current Liabilities 133,775 84,284 Noncurrent Liabilities
Deferred income tax 5,388 4,302 Deferred revenue 3,202 3,271
Convertible notes payable 19,400 --- Other liabilities 4,972 4,079
Total Liabilities 166,737 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, 14,244,419 and
13,912,045 shares issued and 14,033,019 and 13,700,645 shares
outstanding, respectively 140 137 Additional paid-in capital
104,260 103,544 Retained earnings 123,853 98,836 Accumulated
comprehensive income (loss) 251 (56) Treasury stock, at cost,
211,400 shares (2,707) (2,707) Unearned compensation - restricted
stock --- (3,069) Total Shareholders' Equity 225,797 196,685 Total
Liabilities and Shareholders' $ 392,534 $ 292,621 Equity
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.sec.gov/ Web
site: http://www.acecashexpress.com/
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