FOR IMMEDIATE RELEASE
Contact: Michael J. Briskey 972/753-2342 Darla Ashby 972/550-5037
Vice President of Finance & Interim CFO Director, Public Affairs
mbriskey@acecashexpress.com dashby@acecashexpress.com
ACE CASH EXPRESS REPORTS
THIRD QUARTER OPERATING RESULTS
RECORD THIRD QUARTER EARNINGS PER SHARE OF 55 CENTS
DALLAS (April 24, 2003)--ACE Cash Express, Inc. (NASDAQ:AACE), the
nation's largest check-cashing chain and a significant provider of related
retail financial services, announced total revenue of $67.2 million for its
third fiscal quarter ended March 31, 2003, resulting in quarterly net income of
$5.6 million and corresponding diluted earnings per share of 55 cents.
During the third quarter of fiscal 2003, total revenue decreased one
percent, to $67.2 million from $68.1 million in the third quarter of fiscal
2002. The Company's net income, however, increased 35 percent, to $5.6 million
for the third quarter of fiscal 2003 from $4.2 million for the third quarter of
fiscal 2002. In addition, diluted earnings per share increased 34 percent, to 55
cents in the third quarter of fiscal 2003 from 41 cents in the third quarter of
fiscal 2002.
Check-cashing fees, including tax-refund checks, increased 6 percent,
to $44.4 million for the third quarter of fiscal 2003 from $41.8 million for the
third quarter of fiscal 2002. Bill-payment services increased 34 percent, to
$3.6 million from $2.7 million due to the addition of new bill-pay vendors,
along with the continued growth of our existing bill-pay relationships. Loan
fees and interest decreased 24 percent, to $12.9 million from $17.0 million,
primarily because of the cessation of loan-related business in Georgia, North
Carolina, and Alabama and also because of the Company's transition to offering
state-regulated short-term loan products from the Goleta National Bank loan
product, which ended December 31, 2002. The Company anticipates improvement in
loan fees and interest as the new loan product matures. During the
quarter, ACE opened six company-owned stores, closed nine company-owned stores,
and opened seven franchised locations.
Jay B. Shipowitz, president and chief operating officer, remarked, "The
ongoing focus on the fundamentals of our business resulted in improved operating
results again this quarter." Shipowitz added, "We are pleased with the results
of the our recent transition to state-regulated loan products which, as
anticipated, resulted in a decrease in loan fees and interest. A significant
portion of that decrease was offset by the improvement in our core check-cashing
fees and bill- payment services. Overall, it was a solid third quarter."
As previously announced, the Company completed a long-term refinancing
of its credit facilities on March 31, 2003. The new financing arrangements
include revolving-credit facilities from a syndicate of banks totaling $165
million and $40 million of senior subordinated term loans from an institutional
lender. The Company believes the credit facilities will provide adequate working
capital to support its proposed operations and will permit it to expand its
store network and develop new products and services.
Donald H. Neustadt, chief executive officer of ACE, stated, "One of our
most significant accomplishments for the quarter was the completion of a
financing solution that should meet our needs over the next few years. The
capital will allow us to open additional company-owned stores, consider
acquisition opportunities, and expand our product lines."
The Company has been conducting negotiations regarding the settlement
of the purported nationwide class-action lawsuit, Purdie v. ACE Cash Express,
Inc. and Goleta National Bank, pending in the U.S. District Court in Dallas,
Texas, which concerns the former offering of Goleta's short-term loans at the
Company's stores. The Company anticipates that such a settlement would include,
in exchange for payments from the Company, the release of all or substantially
all of the claims related to the GNB loans asserted in the various pending
lawsuits against the Company and Goleta. Such a settlement would be subject to
court approval. The Company cannot predict if, or when, it will enter into such
a settlement agreement.
THREE-MONTH FINANCIAL HIGHLIGHTS
(unaudited)
<Table>
<Caption>
Increase (Decrease) in
Three Months Ended Fiscal 2003
March 31, from Fiscal 2002
--------------------- ----------------------
2003 2002 $ %
-------- -------- ------- -------
(dollars in thousands, except per share data)
Revenues $ 67,167 $ 68,091 $ (924) (1)%
Net income $ 5,616 $ 4,170 $ 1,446 35%
Diluted earnings per share $ 0.55 $ 0.41 $ 0.14 34%
</Table>
NINE MONTH RESULTS
For the first nine months of fiscal 2003, total revenue increased 3
percent, to $180.5 million from $174.7 million for the first nine months of
fiscal 2002. The Company reported net income of $10.4 million for the first nine
months of fiscal 2003, resulting in diluted earnings per share of $1.02,
compared to net income of $8.2 million for the first nine months of fiscal 2002,
resulting in diluted earnings per share of 81 cents. For the first nine months
of fiscal 2003, same store sales increased by 2.7 percent.
ACE opened nine newly-constructed company-owned stores, acquired one
store, sold 20 stores (including a group of 19 stores in Florida), closed 19
stores in the normal course of business, and opened 19 franchised locations
during the first nine months of fiscal 2003.
NINE-MONTH FINANCIAL HIGHLIGHTS
(unaudited)
<Table>
<Caption>
Nine Months Ended Increase in Fiscal 2003
March 31, from Fiscal 2002
--------------------- -----------------------
2003 2002 $ %
-------- -------- ------- -------
(dollars in thousands, except per share data)
Revenues $180,524 $174,663 $ 5,861 3%
Net income $ 10,431 $ 8,154 $ 2,277 28%
Diluted earnings per share $ 1.02 $ 0.81 $ 0.21 26%
</Table>
BUSINESS OUTLOOK FOR FISCAL 2003
The statements preceded by bullet points below are the Company's
outlook or forecast for the Company's business for the fiscal quarter and fiscal
year ending June 30, 2003. These
statements are made only as of April 24, 2003, 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" which, as
indicated in greater detail below under "Forward-looking Statements," cannot be
guaranteed and may turn out to be wrong.
The statements made below are based on the assumption of (1) the
opening of an additional 5 to 8 newly-constructed stores in the fourth quarter
of fiscal 2003, the closure of an additional 2 to 4 stores during the fourth
quarter of fiscal 2003, but no other increase or decrease in the number of the
Company's owned stores (whether by acquisition or otherwise), (2) no material
change in the nature or terms of, or the procedures for the Company's offering
and selling, any third-party product or service offered at the Company's stores,
and (3) no material adverse results from any of the lawsuits against the Company
regarding its loan-related activities. The forecast also assumes that no
agreement to settle any of the loan-related lawsuits against the Company is
entered into.
o The Company anticipates, for the fourth fiscal quarter ending
June 30, 2003, diluted earnings per share (EPS) to range between
$0.18 and $0.20. This would result in diluted EPS for the 2003
fiscal year of between $1.19 and $1.21.
o The Company anticipates total check fees, which totaled $97.6
million for the first nine months of fiscal 2003, to range
between $27 and $28 million for the fourth fiscal quarter.
o The Company anticipates the number of short-term consumer loan
transactions, which was 1.4 million in the first nine months of
fiscal 2003, to be approximately 365,000 to 370,000 in the fourth
quarter of fiscal 2003. This would result in loan interest and
fees of approximately $14.5 to $15.0 million in the fourth
quarter of fiscal 2003.
o The Company expects its other revenue, consisting of bill-payment
fees, money order fees, money transfer fees and all other
revenue, which totaled $28.2 million in the first nine months of
fiscal 2003, to be approximately $9.5 million in the fourth
quarter of fiscal 2003.
o The Company, which reported total revenue of $180.5 million in
the first nine months of fiscal 2003, expects its total revenue
for the fourth quarter of fiscal 2003 to range between $51.0 and
$53.0 million.
o The Company expects to provide for loan losses regarding
short-term consumer loans in an amount approximating 5.5 percent
of loan volume maturing in the quarter, which is comparable to
the provision made in the fourth quarter of fiscal 2002.
o The Company anticipates that both returned checks (net of
collections) and cash shortages, which were $6.8 million in the
first nine months of fiscal 2003, will be approximately $2.2 to
$2.4 million in the fourth quarter of fiscal 2003.
o The Company anticipates that region, headquarters, and franchise
expenses, which were $26.6 million for the first nine months of
fiscal 2003, will range from $8.5 to $9.0 million for the fourth
quarter of fiscal 2003.
o The Company expects that its interest expense, which was $13.6
million for the first nine months of fiscal 2003, will be
approximately $2.7 million for the fourth quarter of fiscal 2003.
The decrease is expected as a result of reduced borrowings
compared to the preceding quarter's tax season and lower
borrowing costs because of the new financing arrangements.
o The Company expects that other depreciation and amortization,
which was $4.4 million for the first nine months of fiscal 2003,
will be approximately $1.0 million for the fourth quarter of
fiscal 2003.
o The Company does not expect any significant change from the third
quarter to the fourth quarter of fiscal 2003 in its store-level
depreciation.
o The Company expects its effective tax rate for all of fiscal 2003
to be approximately 40 percent.
FORWARD-LOOKING STATEMENTS
The statements made above in this release contain 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," "should,"
"would," and terms with similar meanings.
Although ACE believes that the current views and expectations reflected
in these forward-looking statements are reasonable, those views and
expectations, and the related statements, are based on the assumptions of ACE's
management and 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 those projected in the forward-looking statements. Those risks,
uncertainties, and factors include, but are not limited to: the matters
described in ACE's Annual Report on Form 10-K for its fiscal year ended June 30,
2002, and its other public filings; ACE's relationships with Travelers Express
Company, Inc. and its affiliates, with H&R Block, with ACE's bank lenders, and
with American Capital Strategies, Ltd.; ACE's relationships with third-party
providers of products and services offered by ACE or property used in ACE's
operations; federal and state governmental regulation of check-cashing,
short-term consumer lending, and related financial services businesses; the
results of litigation regarding short-term consumer lending activities; theft
and employee errors; the availability of adequate financing, suitable locations,
acquisition opportunities and experienced management employees to implement the
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 products and services offered by ACE; the terms and
performance of third-party products and services offered at ACE locations; and
customer demand and response to products and services offered at ACE locations.
ACE does not assume, but 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 ACE's Common
Stock.
ABOUT THE COMPANY
ACE Cash Express, Inc. is headquartered in Irving, Texas and is the
largest owner, operator and franchiser of check-cashing stores in the United
States. Founded in 1968, the Company has a total network of 1,170 stores,
consisting of 974 company-owned stores and 196 franchised stores in 35 states
and the District of Columbia. ACE also maintains automatic check-cashing
machines, which provide financial services without the need for a service
associate, at 22 company-owned store locations and, during the tax season, at
more than 240 H&R Block retail offices. ACE offers a broad range of
check-cashing and other consumer financial services and is one of the largest
providers of MoneyGram wire transfer transactions. In addition, ACE offers money
orders, bill payment services, and prepaid local and long distance
telecommunication services. Small, short-term consumer loans are also available
to customers at various ACE company-owned stores. The company's website is found
at www.acecashexpress.com.
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
INTERIM UNAUDITED
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
------------------------- -------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Revenues $ 67,167 $ 68,091 $ 180,524 $ 174,663
Store expenses:
Salaries and benefits 15,198 16,464 44,178 43,661
Occupancy 7,431 7,101 21,852 20,854
Provision for loan losses and doubtful accounts 4,813 3,760 18,791 17,266
Depreciation 1,727 1,793 5,222 5,319
Other 11,350 9,846 28,260 27,298
---------- ---------- ---------- ----------
Total store expenses 40,519 38,964 118,303 114,398
---------- ---------- ---------- ----------
Store gross margin 26,648 29,127 62,221 60,265
Region expenses 4,350 4,476 12,719 13,031
Headquarters expenses 5,294 6,276 13,002 13,174
Franchise expenses 286 253 845 672
Other depreciation and amortization 1,150 3,736 4,407 6,068
Interest expense 5,885 5,261 13,595 11,364
Other expenses (income), net 333 2,105 1,110 2,229
---------- ---------- ---------- ----------
Income from continuing operations before taxes 9,350 7,020 16,543 13,727
Provision for income taxes 3,734 2,850 6,611 5,573
---------- ---------- ---------- ----------
Income from continuing operations 5,616 4,170 9,932 8,154
Discontinued operations:
Gain on sale of discontinued operations, net of tax -- -- 499 --
---------- ---------- ---------- ----------
Net income $ 5,616 $ 4,170 $ 10,431 $ 8,154
========== ========== ========== ==========
Basic earnings per share:
Continuing operations $ 0.55 $ 0.41 $ 0.97 $ 0.81
Discontinued operations -- -- 0.05 --
---------- ---------- ---------- ----------
Total $ 0.55 $ 0.41 $ 1.02 $ 0.81
========== ========== ========== ==========
Diluted earnings per share:
Continuing operations $ 0.55 $ 0.41 $ 0.97 $ 0.81
Discontinued operations -- -- 0.05 --
---------- ---------- ---------- ----------
Total $ 0.55 $ 0.41 $ 1.02 $ 0.81
========== ========== ========== ==========
Weighted average number of common shares outstanding:
Basic 10,181 10,154 10,181 10,103
Diluted 10,203 10,166 10,189 10,125
</Table>
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ACE CASH EXPRESS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
<Table>
<Caption>
MARCH 31, JUNE 30,
2003 2002
---------- ----------
(unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 123,686 $ 116,264
Accounts receivable, net 3,137 8,792
Loans receivable, net 10,331 17,356
Prepaid expenses and other current assets 6,410 7,979
Inventories 571 946
---------- ----------
Total Current Assets 144,135 151,337
---------- ----------
Noncurrent Assets
Property and equipment, net 33,040 37,161
Covenants not to compete, net 1,243 1,546
Goodwill, net 74,964 75,015
Other assets 10,045 2,003
---------- ----------
Total Assets $ 263,427 $ 267,062
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Revolving advances $ 93,703 $ 97,500
Accounts payable, accrued liabilities, and other current liabilities 39,957 28,512
Money orders payable 7,877 13,417
Senior secured notes payable -- 4,000
Term advances 3,833 48,350
Notes payable 905 1,145
---------- ----------
Total Current Liabilities 146,275 192,924
---------- ----------
Noncurrent Liabilities
Senior secured notes payable -- 4,000
Term advances 36,167 --
Notes payable 108 319
Other liabilities 3,222 3,680
---------- ----------
Total Liabilities 185,772 200,923
---------- ----------
Commitments and Contingencies -- --
Shareholders' Equity
Preferred stock, $1 par value, 1,000,000 shares authorized, none
issued and outstanding -- --
Common stock, $.01 par value, 20,000,000 shares authorized,
10,391,988 shares issued and 10,180,588 shares outstanding 102 102
Additional paid-in capital 24,384 24,353
Retained earnings 55,900 45,469
Accumulated other comprehensive loss -- (1,078)
Treasury stock, at cost, 211,400 shares (2,707) (2,707)
Unearned compensation restricted stock (24) --
---------- ----------
Total Shareholders' Equity 77,655 66,139
---------- ----------
Total Liabilities and Shareholders' Equity $ 263,427 $ 267,062
========== ==========
</Table>
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ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA
(unaudited)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31, YEAR ENDED JUNE 30,
----------------------- ----------------------- --------------------------------------
2003 2002 2003 2002 2002 2001 2000
-------- -------- -------- -------- -------- -------- --------
COMPANY OPERATING AND STATISTICAL
DATA:
Company-owned stores in operation:
Beginning of period 977 999 1,003 988 988 915 798
Acquired -- -- 1 8 8 133 36
Opened 6 14 9 32 39 49 99
Closed/Sold(1) (9) (3) (39) (18) (32) (109) (18)
-------- -------- -------- -------- -------- -------- --------
End of period 974 1,010 974 1,010 1,003 988 915
======== ======== ======== ======== ======== ======== ========
Percentage increase (decrease) in
comparable store revenues from prior
period: (2)
Total revenues (4.6)% 13.5% 2.7% 18.0% 15.6% 23.3% 6.9%
Excluding loan fees and interest 3.0% 10.4% 5.6% 6.3% 7.3% 0.3% 6.0%
Capital expenditures (in thousands) $ 1,280 $ 817 $ 3,137 $ 5,175 $ 7,127 $ 12,655 $ 12,255
Cost of net assets acquired (in
thousands) $ -- $ -- $ 51 $ 1,155 $ 1,177 $ 35,841 $ 11,359
OPERATING DATA (CHECK CASHING AND
MONEY ORDERS):
Face amount of checks cashed (in
millions) $ 1,652 $ 1,576 $ 3,877 $ 3,700 $ 4,843 $ 4,498 $ 3,839
Face amount of money orders sold (in
millions) $ 412 $ 446 $ 1,217 $ 1,288 $ 1,711 $ 1,709 $ 1,585
Face amount of average check $ 478 $ 471 $ 393 $ 386 $ 378 $ 358 $ 339
Average fee per check $ 13.18 $ 12.82 $ 10.01 $ 9.66 $ 9.36 $ 8.38 $ 7.92
Fees as a percentage of average check 2.76% 2.72% 2.55% 2.50% 2.48% 2.34% 2.33%
Number of checks cashed (in
thousands) 3,456 3,347 9,864 9,590 12,821 12,580 11,317
Number of money orders sold (in
thousands) 2,592 2,958 7,832 8,759 11,562 12,787 12,339
COLLECTIONS DATA:
Face amount of returned checks (in
thousands) $ 6,630 $ 6,348 $ 18,163 $ 18,226 $ 23,637 $ 26,536 $ 16,548
Collections (in thousands) 5,176 4,578 13,646 12,297 16,090 17,717 10,788
-------- -------- -------- -------- -------- -------- --------
Net write-offs (in thousands) $ 1,454 $ 1,770 $ 4,517 $ 5,929 $ 7,547 $ 8,819 $ 5,760
======== ======== ======== ======== ======== ======== ========
Collections as a percentage of
returned checks 78.1% 72.1% 75.1% 67.5% 68.1% 66.8% 65.2%
Net write-offs as a percentage of
Revenues 2.2% 2.6% 2.5% 3.4% 3.3% 4.5% 4.1%
Net write-offs as a percentage of the
face amount of checks cashed .09% .11% .12% .16% .16% .20% .15%
</Table>
(1) The numbers of stores closed for the nine months ended March 31, 2003,
includes the sale of 19 underperforming stores in Florida in November
2002.
(2) Calculated based on the change in revenues of all stores open for both
the full year and the interim periods compared.
- more -
ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA, CONTINUED
(unaudited)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31, YEAR ENDED JUNE 30,
------------------------ ------------------------ --------------------------------------
2003 2002 2003 2002 2002 2001 2000
---------- ---------- ---------- ---------- ---------- ---------- ----------
OPERATING DATA (SMALL CONSUMER LOANS EXCLUDING
LOANS PROCESSED FOR REPUBLIC BANK):
Volume - new loans and
refinances (in thousands) $ 61,532 $ 112,867 $ 344,988 $ 378,625 $ 502,013 $ 396,783 $ 137,015
Average advance $ 263 $ 273 $ 270 $ 270 $ 269 $ 269 $ 240
Average finance charge $ 38.95 $ 46.36 $ 43.90 $ 45.78 $ 45.61 $ 42.30 $ 34.51
Number of loan transactions -
new loans and refinances (in
thousands) 235 413 1,299 1,402 1,866 1,477 557
Matured loan volume (in
thousands) $ 79,415 $ 121,939 $ 362,795 $ 374,325 $ 489,887 $ 370,559 $ 21,898
BALANCE SHEET DATA (IN THOUSANDS):
Gross loans receivable $ 22,831 $ 28,507 $ 22,831 $ 28,507 $ 29,569 $ 27,768 $ 18,695
Less: Allowance for losses
on loans receivable 12,500 12,644 12,500 12,644 12,213 13,382 --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Loans receivable, net of
allowance $ 10,331 $ 15,863 $ 10,331 $ 15,863 $ 17,356 $ 14,386 $ 18,695
========== ========== ========== ========== ========== ========== ==========
Allowance for losses on
loans receivable:
Beginning of period $ 15,650 $ 15,876 $ 12,213 $ 13,382 $ 13,382 $ -- $ --
Provision for loan losses 3,661 3,730 17,381 17,156 21,924 26,429 --
Charge-offs (7,078) (7,360) (17,728) (18,922) (24,519) (13,510) --
Recoveries 267 398 634 1,028 1,426 463 --
---------- ---------- ---------- ---------- ---------- ---------- ----------
End of period $ 12,500 $ 12,644 $ 12,500 $ 12,644 $ 12,213 $ 13,382 $ --
========== ========== ========== ========== ========== ========== ==========
Provision for loan losses as
a % of matured loan volume 4.6% 3.1% 4.8% 4.6% 4.5% 7.1% --
Net loan charge-offs as a
percent of volume (1) 11.1% 6.2% 5.0% 4.7% 4.6% 3.3% --
Allowance as a percent of
gross loans receivable 54.8% 44.4% 54.8% 44.4% 41.3% 48.2% --
</Table>
(1) Net loan charge-offs in the current quarter are directly related to
loans that matured 180 days prior. The ratio compares the net loan
charge-offs to the current quarter volume, which is lower as a result
of the cessation of loan-related business in Georgia, North Carolina,
and Alabama and the transition from offering the Goleta National Bank
loan product to offering ACE loans or Republic Bank loans.
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ACE CASH EXPRESS, INC. AND SUBSIDIARIES
SUPPLEMENTAL STATISTICAL DATA, CONTINUED
(unaudited)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31, YEAR ENDED JUNE 30,
---------------------- ---------------------- ----------------------------------
2003 2002 2003 2002 2002 2001 2000
-------- -------- -------- -------- -------- -------- --------
OPERATING DATA FOR LOANS PROCESSED FOR
REPUBLIC BANK (1):
Volume - new loans and
refinances (in thousands) $ 24,317 $ -- $ 26,910 $ -- $ -- $ -- $ --
Average advance $ 301 $ -- $ 301 $ -- $ -- $ -- $ --
Number of loan transactions -
new loans and refinances
(in thousands) 81 -- 89 -- -- -- --
Matured loan volume
(in thousands) $ 21,799 $ -- $ 21,799 $ -- $ -- $ -- $ --
Provision for loan losses
payable to Republic Bank
(in thousands) $ 991 $ -- $ 991 $ -- $ -- $ -- $ --
Provision for loan losses
payable to Republic Bank as
a % of matured loan volume 4.5% -- 4.5% -- -- -- --
</Table>
(1) Republic Bank loans are short-term deferred deposit transactions
offered and made by Republic Bank and Trust Company at or through the
Company's stores in Arkansas, Pennsylvania, and Texas. The Company serves
only as marketing and servicing agent for Republic Bank regarding those
loans and does not acquire or own any participation interest in any of
those loans. The Company's agreement with Republic Bank provides for the
Company to receive fees paid by Republic Bank and to bear a percentage of
the losses from those loans.
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ACE CASH EXPRESS, INC. AND SUBSIDIARIES
REVENUE ANALYSIS
(unaudited)
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31, YEAR ENDED JUNE 30,
--------------------- --------------------- ----------------------------------
2003 2002 2003 2002 2002 2001 2000
-------- -------- -------- -------- -------- -------- --------
REVENUES (IN THOUSANDS):
Check cashing fees $ 25,171 $ 23,874 $ 77,944 $ 72,495 $ 97,603 $ 90,335 $ 77,574
Loan fees and interest 12,945 16,971 54,744 56,322 74,197 54,771 17,872
Tax check fees 19,215 17,953 19,613 19,103 21,304 15,144 12,067
Bill payment services 3,595 2,684 9,839 7,108 10,156 10,376 9,447
Money transfer services 2,735 2,742 8,139 8,197 10,998 10,270 8,944
Money order fees 1,800 1,953 5,304 5,696 7,554 7,245 7,032
Franchise revenues 622 622 1,683 1,655 2,199 2,257 2,537
Other fees 1,084 1,292 3,258 4,087 5,255 6,377 5,163
-------- -------- -------- -------- -------- -------- --------
Total revenue $ 67,167 $ 68,091 $180,524 $174,663 $229,266 $196,775 $140,636
======== ======== ======== ======== ======== ======== ========
</Table>
<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31, YEAR ENDED JUNE 30,
--------------------- --------------------- ----------------------------------
2003 2002 2003 2002 2002 2001 2000
-------- -------- -------- -------- -------- -------- --------
PERCENTAGE OF REVENUES:
Check cashing fees 37.5% 35.1% 43.2% 41.5% 42.6% 45.9% 55.2%
Loan fees and interest 19.3 24.9 30.3 32.3 32.4 27.8 12.7
Tax check fees 28.6 26.4 10.9 10.9 9.3 7.7 8.6
Bill payment services 5.3 3.9 5.5 4.1 4.4 5.3 6.7
Money transfer services 4.1 4.0 4.5 4.7 4.8 5.2 6.4
Money order fees 2.7 2.9 2.9 3.3 3.3 3.7 5.0
Franchise revenues 0.9 0.9 0.9 0.9 0.9 1.2 1.8
Other fees 1.6 1.9 1.8 2.3 2.3 3.2 3.6
-------- -------- -------- -------- -------- -------- --------
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
======== ======== ======== ======== ======== ======== ========
</Table>