ACE Cash Express Will Discontinue Operation of Self-Service Machines at H&R Block
20 Aprile 2006 - 11:04PM
PR Newswire (US)
DALLAS, April 20 /PRNewswire-FirstCall/ -- ACE Cash Express, Inc.
(NASDAQ:AACE) announced today that it will discontinue operating
self-service machines (SSMs) in H&R Block locations during the
2007 tax season. As a result of this decision, ACE will take a
one-time $848,000 pre-tax charge during its fiscal third quarter of
2006 related to the early extinguishment of the DZ Bank facility,
which was used to fund the SSM business, and for the termination of
the SSM lease agreements. ACE operated 128 SSMs in H&R Block
locations during the 2006 tax season. 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 charges
announced today. President and CEO Jay Shipowitz commented, "While
we are disappointed that this business opportunity never reached
the scale or profit levels that we anticipated, we look forward to
continuing to serve our tax season customers at our more than 1,550
retail financial service stores during the 2007 tax season and
focusing our energies on expanding our network of retail stores."
ACE will hold its quarterly conference call to discuss third
quarter results on April 27, 2006 at 5:00 p.m. Eastern Time (4:00
p.m. Central Time). To participate in the conference call, please
dial 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 review. For your convenience,
the conference call will be replayed in its entirety beginning at
approximately 6 p.m. EDT on April 27th through 6 p.m. EDT on May
4th. If you wish to listen to a replay of the conference call, dial
(800) 642-1687, provide your name and use confirmation number
7592978. This call is being webcast by CCBN and can be accessed at
ACE's web site at http://www.acecashexpress.com/ . 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, Inc., 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.
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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