DALLAS, Jan. 20 /PRNewswire/ -- ACE Cash Express, Inc. (Nasdaq: AACE), the nation's largest check-cashing chain and a significant provider of related retail financial services, recorded second quarter revenue gains in nearly all product categories resulting in a 36 percent increase in net income.
During the second quarter of fiscal 1999, total revenue increased 24 percent, to $28.7 million from $23.1 million in the second quarter of fiscal 1998. The increased revenue and net income produced diluted earnings per share of 11 cents, a 38 percent increase over last year's second quarter amount of 8 cents. Earnings before interest, taxes, depreciation and amortization increased 28 percent during the quarter to $4.9 million from $3.9 million for the fiscal 1998 second quarter.
Fee revenue increases continue to drive company growth. Check-cashing fees led fiscal 1999 second quarter growth with fees of $18.1 million, up $2.3 million from fees of $15.8 million in the second quarter of fiscal 1998. Bill payment services realized the largest percentage growth, increasing 149 percent to $2.1 million during the fiscal 1999 second quarter from $0.9 million during the fiscal 1998 second quarter. In addition, loan fee revenue grew 54 percent during the fiscal 1999 second quarter to $3.6 million from $2.4 million during the second quarter of the previous year.
The ACE network expanded by 12 company-owned stores and 8 franchised locations during the second quarter. Same store sales recorded an 11.3 percent increase over last year's second quarter.
"ACE accomplished important fiscal 1999 strategic objectives during this quarter," said Donald H. Neustadt, president and chief executive officer of ACE. "We completed the development of the new ACE Bill Pay product, transitioned all company-owned stores to a new money order provider and implemented a $145 million credit facility. We expect these advancements to provide increased financial and operational flexibility throughout our network of retail financial service centers."
Six-Month Results
Since the 1999 fiscal year began on July 1, 1998, revenue has grown 22 percent, to $54.7 million from $44.8 million for the first six months of fiscal 1998. Similarly, net income increased 33 percent, resulting in earnings per share growth of 36 percent. Earnings before interest, taxes, depreciation and amortization increased 28 percent during the first six months of fiscal 1999.
ACE opened 47 company-owned stores and acquired 19 stores during the first six months of fiscal 1999. In addition, 25 new franchises have opened in the past six months.
Six-Month Financial Highlights
(in thousands, except per share data)
Six Months Ended Increase in Fiscal 1999
December 31, from Fiscal 1998
1998 1997 $ %
(unaudited)
Revenues $54,679 $44,819 $ 9,860 22%
Net income $ 1,912 $ 1,434 $ 478 33%
Earnings before
interest, taxes,
depreciation and
amortization $ 9,215 $ 7,194 $ 2,021 28%
Diluted earnings
per share $ .19 $ .14 $ .05 36%
