ACE Cash Express Reports Third-Quarter Operating Results

Apr 20, 2001, 01:00 ET from ACE Cash Express, Inc.

    DALLAS, April 20 /PRNewswire Interactive News Release/ --
 ACE Cash Express, Inc. (Nasdaq: AACE), the nation's largest check-cashing
 chain and a significant provider of related retail financial services,
 announced revenues of $60.2 million for its third fiscal quarter ended
 March 31, 2001, resulting in a diluted loss per share of $0.41.  These results
 are in line with the Company's anticipated operating results that were
 announced on April 5, 2001.
     During the third quarter of fiscal 2001, total revenue increased
 46 percent, to $60.2 million from $41.3 million in the third quarter of fiscal
 2000.  The Company reported a net loss of $4.2 million for the third quarter
 of fiscal 2001 as compared to a net profit of $5.2 million, for the third
 quarter of fiscal 2000.  Earnings before interest, taxes, depreciation and
 amortization decreased 31 percent, to $8.9 million for the fiscal 2001 third
 quarter from $12.8 million for the fiscal 2000 third quarter.  As previously
 announced, the quarterly net loss resulted from an increase in the Company's
 loan loss provision on participations in Goleta National Bank (GNB) loans and
 the accelerated closing of approximately 84 underperforming stores.  The
 Company increased its loan loss provision in the quarter by approximately
 $8.5 million and recorded $8.6 million of store closing expense that included
 costs associated with lease terminations, reduction of employees, write-offs
 for goodwill and disposal of certain fixed assets and inventory.
     ACE's core revenue categories showed continued growth in the fiscal 2001
 third quarter compared to the fiscal 2000 third quarter.  Check-cashing fees
 increased 24 percent, from $19.0 million to $23.6 million, and loan fees
 increased 280 percent, from $3.7 million to $14.0 million.  Fees for cashing
 tax refund checks also increased 29 percent, from $10.1 million to
 $12.9 million during the third quarter of fiscal 2001.  ACE opened 15 newly
 constructed company-owned stores and acquired 2 stores; also, 7 franchised
 locations were opened, and 4 stores were closed.  The Company expects to close
 the 84 underperforming stores before fiscal year-end.
     Jay B. Shipowitz, President and Chief Operating Officer, remarked, "As
 previously announced, the increase in our participation loan-loss provision
 reflects a higher rate of borrower default and a lower collection rate than we
 had anticipated.  We believe improvements that have been made by ACE and
 Goleta will allow the product to achieve higher levels of profitability in the
 future.  We also believe that the closing of the underperforming stores will
 allow our field personnel to focus on our more profitable stores and improve
 ACE's profitability in future years."
 
 
                        Three-Month Financial Highlights
                     (in thousands, except per share data)
 
                                                              Incr/(Decr) in
                                    Three Months Ended         Fiscal 2001
                                        March 31,            from Fiscal 2000
                                      2001      2000          $           %
                                                  (unaudited)
 
     Revenues                       $60,193    $41,337     $18,856       46%
     Net income/(loss)              $(4,155)    $5,177     $(9,332)    (180)%
     Earnings before interest,
      taxes, depreciation and
      amortization                   $8,896    $12,829     $(3,933)     (31)%
     Diluted earnings/(loss)
      per share                      $(0.41)     $0.50      $(0.91)    (182)%
 
 
     Nine Month Results
     For the first nine months of fiscal 2001, total revenue increased
 40 percent, to $145.5 million from $104.2 million for the first nine months of
 fiscal 2000.  Because of the net loss in the third fiscal quarter, the Company
 reported a net loss of $772,000 for the first nine months of fiscal 2001
 resulting in a diluted loss per share of $0.08, compared to net income of
 $7.6 million, (before the cumulative effect of the change in accounting)
 resulting in diluted earnings per share of $0.73, for the first nine months of
 fiscal 2000.  Earnings before interest, taxes, depreciation and amortization
 grew 3 percent in the first nine months of fiscal 2001, to $25.1 million from
 $24.4 million for the first nine months of fiscal 2000.  For the first nine
 months of fiscal 2001, same store sales increased by 22.8 percent, to
 $117.2 million from $95.5 million in the first nine months of fiscal 2000.
     ACE opened 36 newly constructed company-owned stores, acquired 131 stores
 and opened 22 new franchised locations during the first nine months of fiscal
 2001.  ACE closed 14 stores during the first nine months of fiscal 2001; ACE
 expects to close the 84 underperforming stores before fiscal year-end.
     "The tax season for the third quarter of this fiscal year resulted in a
 28.5 percent increase in tax check fees over the third quarter of the last
 fiscal year," said Donald H. Neustadt, chief executive officer of ACE.  "As
 tax season ends, we plan to re-deploy 50 self-service machines from tax
 preparer locations to ACE stores.  We believe that the self-service machines
 will improve customer service, making it faster and more convenient to cash
 checks."
 
 
                        Nine-Month Financial Highlights
                     (in thousands, except per share data)
 
                                                              Incr/(Decr) in
                                  Nine Months Ended             Fiscal 2001
                                      March 31,              from Fiscal 2000
                                    2001       2000           $          %
                                                   (unaudited)
 
     Revenues                    $145,531    $104,209      $41,322       40%
     Net income/(loss)              $(772)     $7,604 *    $(8,376)    (110)%
     Earnings before interest,
      taxes, depreciation and
      amortization                $25,075     $24,385 *       $690        3%
     Diluted earnings/(loss)
      per share                    $(0.08)      $0.73 *     $(0.81)    (111)%
 
     *  Before cumulative effect of change in accounting
 
     Business Outlook for the Remainder of Fiscal 2001 and for Fiscal 2002
     The statements made below (preceded by bullet points) are the Company's
 outlook or forecast for the Company's business for the remainder of the fiscal
 year ending June 30, 2001 and for the fiscal year ending June 30, 2002.  These
 statements are made only as of April 20, 2001 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 various assumptions made after the
 nine months ended March 31, 2001, which include, but are not limited to the
 following:  (1) the expected closing of 84 underperforming stores in the
 fourth quarter of fiscal 2001, the opening of an additional 50 newly-
 constructed stores in fiscal 2002, the closure of 10 stores during the normal
 course of business in fiscal 2002, but no other increase or decrease in the
 number of the Company's owned stores (whether by acquisition or otherwise);
 (2) the face amount of the average check cashed being approximately $326; (3)
 the face amount of the average money order sold being approximately $132; (4)
 no material change in the effective interest rate on all money borrowed by the
 Company; (5) no material change in the nature or terms, or the procedure for
 the Company's offering and selling at its locations, any third-party product
 or service offered at the Company's locations.
 
     -- The number of checks cashed (excluding tax checks), which was
        9.2 million in the first nine months of fiscal 2001, is expected to
        reach a total of between 12.3 and 12.4 million in all of fiscal 2001
        and between 13.0 and 13.3 million in all of fiscal 2002.  This assumed
        number for all of fiscal 2001 would be a 12 to 13 percent increase
        over the number of checks cashed in all of fiscal year 2000 and would
        result in check fees (excluding tax checks) of between $90 and
        $91 million for fiscal 2001.  This assumed number for fiscal 2002
        would be a 5 to 7 percent increase over the anticipated number of
        checks cashed in the fiscal year 2001 and would result in check fees
        (excluding tax checks) of between $97 and $99 million in fiscal 2002.
 
     -- The impact of the Company's business of cashing tax refund checks and
        refund anticipation loan checks is continuing to be primarily in the
        third and fourth quarters of the Company's fiscal year.  The number of
        tax checks in the first nine months of fiscal 2001 was 320,000 and is
        estimated to be an additional 100,000 in the fourth quarter of fiscal
        2001.  The estimated total number of 420,000 tax checks cashed in all
        of fiscal 2001 would result in estimated tax fees of $15.0 to
        $15.1 million.  The number of tax checks is expected to reach between
        420,000 and 430,000 in all of fiscal 2002, which would result in tax
        fees of between $14.9 and $15.3 million.
 
     -- The number of Goleta National Bank (GNB) loan transactions in which
        participations are purchased is expected to reach between 1.5 and
        1.6 million in all of fiscal 2002 compared to approximately
        1.3 million such loan transactions in all of fiscal 2001.  This number
        would result in between $59 and $61 million in loan interest from loan
        participations in fiscal 2002, compared to approximately $53 million
        in loan interest from loan participations in all of fiscal 2001.
 
     -- Revenue from bill-payment fees, which was $7.5 million in the first
        nine months of fiscal 2001, is expected to be between $10.8 and
        $11.2 million in all of fiscal 2002, compared to an estimated
        $10.2 million in all of fiscal 2001.
 
     -- Same store sales, which was 22.8 percent in the first nine months of
        fiscal 2001, is expected to increase between 7 and 8 percent in all of
        fiscal 2002.
 
     -- The Company which reported total revenue of $145.5 million in the first
        nine months of fiscal 2001, expects its total revenue for all of
        fiscal 2002 to range between $210 and $215 million, which would be an
        8 to 11 percent increase from the Company's estimated fiscal 2001
        total revenue of approximately $195 million.
 
     -- The Company's gross margin percentage, which was 26.6 percent in the
        first nine months of fiscal 2001, expects gross margin percentage for
        all of fiscal 2002 to be approximately 32 to 33 percent compared to
        approximately 27 percent for all of fiscal 2001.
 
     -- Region, headquarters, and franchise expenses, for the first nine months
        of fiscal 2001 were $18.8 million.  In all of fiscal 2002, these same
        expenses are expected to range from 13.3 to 13.5 percent of revenue
        for fiscal 2002, compared to an estimated 13 percent of revenue for
        all of fiscal 2001.
 
     -- The Company's interest expense for the first nine months of fiscal 2001
        was $9.0 million.  The Company expects its interest expense for all of
        fiscal 2002 to be approximately $12.5 million, which would be an
        increase of 3 percent over the estimated interest expense of
        $12.2 million for all of fiscal 2001; the increase would be due to
        estimated slightly higher effective interest rates offset in part by
        estimated lower average borrowings.
 
     -- Regarding participations purchased in GNB loans, small consumer loan
        losses, as a percentage of total revenue, which was 12.6 percent in
        the first nine months of fiscal 2001, are expected to range between
        10.7 and 10.9 percent in all of fiscal 2002 compared to an expected
        12.1 percent in all of fiscal 2001.
 
     -- Returned checks, net of collections and cash shortages, as a percentage
        of total revenue, which was 6.5 percent in the first nine months of
        fiscal 2001, is expected to range between 5.2 and 5.5 percent in all
        of fiscal 2002, compared to an estimated 6.2 percent in all of fiscal
        2001.
 
     -- The effective tax rate for all of fiscal 2002 is expected to be
        approximately 40 percent, substantially the same as the effective rate
        for all of fiscal 2001.
 
     -- The Company, whose center-level depreciation was $5.0 million in the
        first nine months of fiscal 2001, expects center-level depreciation to
        be approximately $6.7 million for all of fiscal 2002, an increase of
        2 percent over the estimated depreciation for fiscal 2001 of
        $6.6 million.
 
     -- The Company, whose amortization of goodwill and other acquisition-
        related intangibles was $3.7 million in the first nine months of
        fiscal 2001, expects amortization of goodwill and other acquisition-
        related intangibles and costs to be approximately $6.0 million for
        fiscal 2002, an increase of 18 percent over the amortization for
        fiscal 2001 due to acquisitions during the first nine months of fiscal
        2001.
 
     -- Diluted loss per share for the first nine months of fiscal 2001 was
        $0.08.  The Company expects diluted earnings per share for fiscal 2002
        to range between $1.30 and $1.36, compared an anticipated diluted
        earnings per share range of $0.03 to $0.05 for all of fiscal 2001.
 
     -- The Company's earnings before interest, taxes, depreciation, and
        amortization (EBITDA) for the first nine months of fiscal 2001 was
        $25.1 million.  The Company expects EBITDA in all of fiscal 2002 to be
        between $45 and $47 million, a 34 to 40 percent increase over the
        estimated fiscal 2001 EBITDA of approximately $33.5 million.
 
     Forward-looking Statements
     The statements made above in this release, and particularly under
 "Business Outlook for the Remainder of Fiscal 2001 and for Fiscal 2002,"
 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 the Company 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
 described above and are inherently subject to risks, uncertainties, and other
 factors, many of which are not under the Company'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, many of the
 matters described in the Company's Annual Report on Form 10-K for its fiscal
 year ended June 30, 2000, and its other public filings:  the Company's
 relationships with Travelers Express Company, Inc. and its affiliates, with
 Goleta National Bank, and with the Company's bank lenders; governmental
 regulation of check-cashing, short-term consumer lending, and related
 financial services businesses; theft and employee errors; the availability of
 suitable locations, acquisition opportunities, adequate financing, and
 experienced management employees to implement the Company's growth strategy;
 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 the Company; the terms and
 performance of third-party products and services offered at the Company's
 locations and customer demand and response to products and services offered at
 the Company's locations.
     The Company 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 the Company's views or
 expectations, or otherwise.  The Company makes no prediction or statement
 about the performance of the Company'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 1,153 stores,
 consisting of 983 company-owned stores and 170 franchised stores in 34 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 71 locations.  ACE offers a broad range of financial and check-
 cashing 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.
 Under ACE's agreement with Goleta National Bank (GNB), GNB currently makes
 small consumer loans 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 share and per share amounts)
 
                                  Three Months Ended       Nine Months Ended
                                       March 31,               March 31,
                                   2001        2000        2001        2000
 
     Revenues                     $60,193    $41,337     $145,531    $104,209
 
     Store expenses:
       Salaries and benefits       15,129     10,154       37,830      27,506
       Occupancy                    7,143      5,401       19,709      15,751
       Depreciation                 1,720      1,419        4,958       3,937
       Other                       21,972      7,526       44,258      21,983
     Total store expenses          45,964     24,500      106,755      69,177
     Store gross margin            14,229     16,837       38,776      35,032
     Region expenses                3,755      2,777       10,220       7,781
     Headquarters expenses          3,015      2,364        7,778       6,021
     Franchise expenses               283        286          777         797
     Other depreciation and
      amortization                  1,464        952        3,653       2,756
     Interest expense, net          3,898      1,942        9,017       4,771
     Other expenses                 8,740          0        8,618         346
     Income (loss) before income
      taxes and cumulative effect
      of accounting change         (6,926)     8,516       (1,287)     12,560
     Income taxes                  (2,771)     3,339         (515)      4,956
     Income (loss) before
      cumulative effect of
      accounting change            (4,155)     5,177         (772)      7,604
     Cumulative effect of
      accounting change, net of
      income tax benefit of $402      ---        ---          ---        (603)
     Net income (loss)            $(4,155)    $5,177        $(772)     $7,001
 
     EBITDA (A) (B)                $8,896    $12,829      $25,075     $24,385
 
     Basic earnings (loss) per
      share:
       Before cumulative effect
        of accounting change       $(0.41)     $0.51       $(0.08)      $0.76
       Cumulative effect of
        accounting change             ---        ---          ---        (.06)
       Basic earnings (loss)
        per share                  $(0.41)     $0.51       $(0.08)      $0.70
 
       Weighted average number of
        common shares outstanding -
        basic EPS                  10,031     10,085       10,002      10,069
 
     Diluted earnings (loss)
      per share:
       Before cumulative effect
        of accounting change       $(0.41)     $0.50       $(0.08)      $0.73
       Cumulative effect of
        accounting change             ---        ---          ---        (.06)
       Diluted earnings (loss)
        per share                  $(0.41)     $0.50       $(0.08)      $0.67
 
       Weighted average number of
        common and dilutive shares
        outstanding - diluted EPS  10,195     10,445       10,165      10,378
 
     (A)  Before cumulative effect of accounting change recorded in the three
          months ended September 30, 1999.
     (B)  EBITDA also excludes non-cash expenses in connection with store
          closings, which were recorded in "other expenses" for the three and
          nine months ended March 31, 2001 and 2000.
 
 
                    ACE CASH EXPRESS, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
               (in thousands, except share and per share amounts)
 
                                                     March 31,      June 30,
                                                       2001           2000
                                                    (unaudited)
 
                                       ASSETS
     Current Assets
       Cash and cash equivalents                     $158,312       $105,577
       Accounts receivable, net                         4,060          5,985
       Loans receivable, net                           14,331         18,695
       Prepaid expenses and other current assets        2,272          2,069
       Inventories                                      1,261          1,418
     Total Current Assets                             180,236        133,744
 
     Noncurrent Assets
       Property and equipment, net                     38,013         36,915
       Covenants not to compete, net                    2,178          1,429
       Excess of purchase price over fair value
        of assets acquired, net                        76,521         45,929
       Other assets                                     3,816          3,406
     Total Assets                                    $300,764       $221,423
 
                        LIABILITIES AND SHAREHOLDERS' EQUITY
     Current Liabilities
       Revolving advances                            $118,500        $95,000
       Accounts payable, accrued liabilities,
        and other current liabilities                  35,069         21,242
       Money order principal payable                   18,962         10,487
       Current portion of senior secured notes
        payable                                         4,406          4,180
       Reducing revolving line-of-credit/term advances    ---          3,469
       Notes payable                                      770            898
     Total Current Liabilities                        177,707        135,276
 
     Noncurrent Liabilities
       Senior secured notes payable                     8,000         12,000
       Reducing revolving line-of-credit/
        term advances                                  56,000         15,031
       Notes payable                                      703            438
       Other liabilities                                5,967          3,519
     Total Liabilities                                248,377        166,264
 
     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, 10,033,220 and
        9,984,563 shares issued and outstanding,
        respectively                                      100            100
       Additional paid-in capital                      23,092         22,715
       Retained earnings                               33,973         34,745
       Accumulated other comprehensive loss            (2,071)           ---
       Treasury stock, at cost, 211,400 and
        181,400 shares, respectively                   (2,707)        (2,401)
     Total Shareholders' Equity                        52,387         55,159
     Total Liabilities and Shareholders' Equity      $300,764       $221,423
 
 
                    ACE CASH EXPRESS, INC. AND SUBSIDIARIES
                         SUPPLEMENTAL STATISTICAL DATA
 
                                    Three Months Ended      Nine Months Ended
                                        March 31,               March 31,
                                    2001         2000        2001       2000
 
     Company Operating and
      Statistical Data:
     Company-owned stores in
      operation:
       Beginning of period         1,055          817        915         798
       Acquired                        2           20        131          23
       Opened                         15           32         36          64
       Closed                         (4)           0        (14)        (16)
       End of period               1,068          869      1,068         869
 
     Percentage increase in
      comparable store revenues
      from prior period:
       Exclusive of tax-related
        revenues (A)                29.7%         3.6%      25.1%        6.4%
       Total revenues (B)           22.9%         5.5%      22.8%        6.8%
 
     Capital expenditures
      (in thousands)              $3,982       $5,768     $9,316      $9,601
     Cost of net assets acquired
      (in thousands)                $595       $6,091    $36,705      $7,143
 
     Operating Data (Check
      Cashing and Money Orders):
     Face amount of checks cashed
      (in millions)               $1,457       $1,144     $3,438      $2,890
     Face amount of money orders
      sold (in millions)            $483         $413     $1,269      $1,196
     Face amount of money orders
      sold as a percentage of
      the face amount of checks
      cashed                        33.1%        36.1%      36.9%       41.4%
     Face amount of average
      check                         $423         $395       $363        $342
     Average fee per check        $10.60       $10.02      $8.49       $8.06
     Fees as a percentage of
      average check                 2.50%        2.54%      2.34%       2.36%
     Number of checks cashed
      (in thousands)               3,443        2,897      9,484       8,448
     Number of money orders sold
      (in thousands)               3,596        3,194      9,573       9,340
 
     Collections Data:
     Face amount of returned
      checks (in thousands)       $6,993       $4,633    $20,482     $12,698
     Collections (in thousands)    4,607        2,961     13,717       7,761
     Net write-offs
      (in thousands)              $2,386       $1,672     $6,765      $4,937
 
     Collections as a percentage
      of returned checks            65.9%        63.9%      67.0%       61.1%
     Net write-offs as a
      percentage of revenues         4.0%         4.0%       4.6%        4.7%
     Net write-offs as a percentage
      of the face amount of
      checks cashed                  .16%         .15%       .20%        .17%
 
 
                                                     Year Ended June 30,
                                                 2000       1999        1998
 
     Company Operating and Statistical Data:
     Company-owned stores in operation:
       Beginning of period                        798        683         617
       Acquired                                    36         35          15
       Opened                                      99         99          62
       Closed                                     (18)       (19)        (11)
       End of period                              915        798         683
 
     Percentage increase in comparable store
      revenues from prior period:
       Exclusive of tax-related revenues (A)      7.1%      10.6%        8.0%
       Total revenues (B)                         6.9%      10.8%        6.9%
 
     Capital expenditures (in thousands)      $12,255    $10,089      $5,742
     Cost of net assets acquired
      (in thousands)                          $11,359     $8,378      $4,708
 
     Operating Data (Check Cashing and
      Money Orders):
     Face amount of checks cashed
      (in millions)                            $3,839     $3,373      $2,898
     Face amount of money orders sold
      (in millions)                            $1,585     $1,905      $1,858
     Face amount of money orders sold as a
      percentage of the face amount of checks
      cashed                                     41.3%      56.5%       64.1%
     Face amount of average check                $339       $320        $305
     Average fee per check                      $7.92      $7.47       $7.26
     Fees as a percentage of average check       2.33%      2.33%       2.38%
     Number of checks cashed (in thousands)    11,317     10,556       9,496
     Number of money orders sold
      (in thousands)                           12,339     14,495      14,146
 
     Collections Data:
     Face amount of returned checks
      (in thousands)                          $16,548    $12,442     $10,193
     Collections (in thousands)                10,788      7,423       6,301
     Net write-offs (in thousands)             $5,760     $5,019      $3,892
 
     Collections as a percentage of
      returned checks                            65.2%      59.7%       61.8%
     Net write-offs as a percentage of
      revenues                                    4.1%       4.1%        3.9%
     Net write-offs as a percentage of the
      face amount of checks cashed                .15%       .15%        .13%
 
     (A)  Change in revenues computed excluding tax refund check cashing fees
          for both the full year and the interim periods compared.
     (B)  Calculated based on the change in revenues of all stores open for
          both the full year and the interim periods compared.
 
 
                    ACE CASH EXPRESS, INC. AND SUBSIDIARIES
                    SUPPLEMENTAL STATISTICAL DATA, continued
 
                                  Three Months Ended      Nine Months Ended
                                      March 31,               March 31,
                                   2001        2000        2001       2000
 
     Operating Data (Small
      Consumer Loans):
 
     Volume (in thousands)      $101,998      $31,214   $280,820     $93,148
     Average advance                $268         $227       $271        $218
     Average finance charge       $42.33       $30.41     $41.27      $31.17
     Number of loan transactions
      (in thousands)                 381          121      1,038         374
 
     Balance Sheet Data (in
      thousands):
     Gross loans receivable      $26,704       $5,390    $26,704      $5,390
       Less:  Allowance for
        losses on loans
        receivable                12,373          ---     12,373         ---
     Loans receivable, net of
      allowance                  $14,331       $5,390    $14,331      $5,390
 
     Allowance for losses on
      loans receivable:
       Beginning of period        $5,471         $---       $---        $---
       Provision for loan
        losses                    12,806          ---     19,972         ---
       Net charge-offs            (5,904)         ---     (7,599)        ---
       End of period             $12,373         $---    $12,373        $---
 
     Allowance as a percent of
      gross loans receivable        46.3%         ---       46.3%        ---
 
 
                                                   Year Ended June 30,
                                               2000        1999       1998
 
     Operating Data (Small
      Consumer Loans):
 
     Volume (in thousands)                   $137,015   $105,765     $69,182
     Average advance                             $240       $200        $177
     Average finance charge                    $34.51     $30.30      $27.51
     Number of loan transactions
      (in thousands)                              557        460         338
 
     Balance Sheet Data (in
      thousands):
     Gross loans receivable                   $18,695     $5,543      $5,174
       Less:  Allowance for
        losses on loans
        receivable                                ---        ---         ---
     Loans receivable, net of
      allowance                               $18,695     $5,543      $5,174
 
     Allowance for losses on
      loans receivable:
       Beginning of period                       $---       $---        $---
       Provision for loan
        losses                                    ---        ---         ---
       Net charge-offs                            ---        ---         ---
       End of period                             $---       $---        $---
 
     Allowance as a percent of
      gross loans receivable                      ---        ---         ---
 
 
                    ACE CASH EXPRESS, INC. AND SUBSIDIARIES
                                REVENUE ANALYSIS
 
      Revenues (in thousands):
                                Three Months Ended       Nine Months Ended
                                     March 31,               March 31,
                                 2001        2000         2001        2000
 
     Check cashing fees        $23,561      $18,973      $67,253     $57,702
     Loan fees and interest     14,039        3,692       37,866      11,657
     Tax check fees             12,918       10,055       13,233      10,363
     Bill payment services       2,648        2,440        7,498       7,163
     Money transfer services     2,726        2,466        7,735       6,387
     Money order fees            1,984        1,817        5,349       5,326
     Franchise revenues            553          585        1,722       1,837
     Other fees                  1,764        1,309        4,875       3,774
     Total revenue             $60,193      $41,337     $145,531    $104,209
 
 
      Percentage of Revenues:
                                   Three Months Ended     Nine Months Ended
                                       March 31,              March 31,
                                  2001       2000         2001         2000
 
     Check cashing fees           39.2%        45.9%        46.2%       55.4%
     Loan fees and interest       23.3          8.9         26.0        11.2
     Tax check fees               21.5         24.3          9.1         9.9
     Bill payment services         4.4          5.9          5.2         6.9
     Money transfer services       4.5          6.0          5.3         6.1
     Money order fees              3.3          4.4          3.7         5.1
     Franchise revenues            0.9          1.4          1.2         1.8
     Other fees                    2.9          3.2          3.3         3.6
     Total revenue               100.0%       100.0%       100.0%      100.0%
 
 
      Revenues (in thousands):
 
                                                   Year Ended June 30,
                                             2000         1999        1998
 
     Check cashing fees                     $77,574      $68,249     $60,416
     Loan fees and interest                  17,872       14,257      10,137
     Tax check fees                          12,067       10,590       8,571
     Bill payment services                    9,447        8,394       4,146
     Money transfer services                  8,944        7,951       6,082
     Money order fees                         7,032        5,332       2,879
     Franchise revenues                       2,537        2,117       1,665
     Other fees                               5,163        5,424       6,298
     Total revenue                         $140,636     $122,314    $100,194
 
 
      Percentage of Revenues:
                                                   Year Ended June 30,
                                               2000         1999        1998
 
     Check cashing fees                        55.2%        55.8%       60.3%
     Loan fees and interest                    12.7         11.7        10.1
     Tax check fees                             8.6          8.7         8.5
     Bill payment services                      6.7          6.8         4.1
     Money transfer services                    6.4          6.5         6.1
     Money order fees                           5.0          4.4         2.9
     Franchise revenues                         1.8          1.7         1.7
     Other fees                                 3.6          4.4         6.3
     Total revenue                            100.0%       100.0%      100.0%
 
 
                                CONFERENCE CALL
                                 April 20, 2001
                                   4 p.m. EDT
 
     An investor conference call will be held today, April 20th at 4 p.m. EDT,
 regarding the release of ACE Cash Express third quarter earnings.  We invite
 you to participate in the conference call by dialing (800) 374-1747.  Donald
 H. Neustadt, chief executive officer, and Jay B. Shipowitz, president and
 chief operating officer, will present the third quarter review.
     For your convenience, the conference call will be replayed in its entirety
 beginning at approximately 7 p.m. EDT on April 20th through 7 p.m. EDT on
 April 21th.  If you wish to listen to a replay of this conference call, dial
 (800) 642-1687, provide your last name and use confirmation number 759565.
     If you have questions regarding this conference call, please contact Darla
 Smotherman at (972) 550-5037.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X49347232
 
 

SOURCE ACE Cash Express, Inc.
    DALLAS, April 20 /PRNewswire Interactive News Release/ --
 ACE Cash Express, Inc. (Nasdaq: AACE), the nation's largest check-cashing
 chain and a significant provider of related retail financial services,
 announced revenues of $60.2 million for its third fiscal quarter ended
 March 31, 2001, resulting in a diluted loss per share of $0.41.  These results
 are in line with the Company's anticipated operating results that were
 announced on April 5, 2001.
     During the third quarter of fiscal 2001, total revenue increased
 46 percent, to $60.2 million from $41.3 million in the third quarter of fiscal
 2000.  The Company reported a net loss of $4.2 million for the third quarter
 of fiscal 2001 as compared to a net profit of $5.2 million, for the third
 quarter of fiscal 2000.  Earnings before interest, taxes, depreciation and
 amortization decreased 31 percent, to $8.9 million for the fiscal 2001 third
 quarter from $12.8 million for the fiscal 2000 third quarter.  As previously
 announced, the quarterly net loss resulted from an increase in the Company's
 loan loss provision on participations in Goleta National Bank (GNB) loans and
 the accelerated closing of approximately 84 underperforming stores.  The
 Company increased its loan loss provision in the quarter by approximately
 $8.5 million and recorded $8.6 million of store closing expense that included
 costs associated with lease terminations, reduction of employees, write-offs
 for goodwill and disposal of certain fixed assets and inventory.
     ACE's core revenue categories showed continued growth in the fiscal 2001
 third quarter compared to the fiscal 2000 third quarter.  Check-cashing fees
 increased 24 percent, from $19.0 million to $23.6 million, and loan fees
 increased 280 percent, from $3.7 million to $14.0 million.  Fees for cashing
 tax refund checks also increased 29 percent, from $10.1 million to
 $12.9 million during the third quarter of fiscal 2001.  ACE opened 15 newly
 constructed company-owned stores and acquired 2 stores; also, 7 franchised
 locations were opened, and 4 stores were closed.  The Company expects to close
 the 84 underperforming stores before fiscal year-end.
     Jay B. Shipowitz, President and Chief Operating Officer, remarked, "As
 previously announced, the increase in our participation loan-loss provision
 reflects a higher rate of borrower default and a lower collection rate than we
 had anticipated.  We believe improvements that have been made by ACE and
 Goleta will allow the product to achieve higher levels of profitability in the
 future.  We also believe that the closing of the underperforming stores will
 allow our field personnel to focus on our more profitable stores and improve
 ACE's profitability in future years."
 
 
                        Three-Month Financial Highlights
                     (in thousands, except per share data)
 
                                                              Incr/(Decr) in
                                    Three Months Ended         Fiscal 2001
                                        March 31,            from Fiscal 2000
                                      2001      2000          $           %
                                                  (unaudited)
 
     Revenues                       $60,193    $41,337     $18,856       46%
     Net income/(loss)              $(4,155)    $5,177     $(9,332)    (180)%
     Earnings before interest,
      taxes, depreciation and
      amortization                   $8,896    $12,829     $(3,933)     (31)%
     Diluted earnings/(loss)
      per share                      $(0.41)     $0.50      $(0.91)    (182)%
 
 
     Nine Month Results
     For the first nine months of fiscal 2001, total revenue increased
 40 percent, to $145.5 million from $104.2 million for the first nine months of
 fiscal 2000.  Because of the net loss in the third fiscal quarter, the Company
 reported a net loss of $772,000 for the first nine months of fiscal 2001
 resulting in a diluted loss per share of $0.08, compared to net income of
 $7.6 million, (before the cumulative effect of the change in accounting)
 resulting in diluted earnings per share of $0.73, for the first nine months of
 fiscal 2000.  Earnings before interest, taxes, depreciation and amortization
 grew 3 percent in the first nine months of fiscal 2001, to $25.1 million from
 $24.4 million for the first nine months of fiscal 2000.  For the first nine
 months of fiscal 2001, same store sales increased by 22.8 percent, to
 $117.2 million from $95.5 million in the first nine months of fiscal 2000.
     ACE opened 36 newly constructed company-owned stores, acquired 131 stores
 and opened 22 new franchised locations during the first nine months of fiscal
 2001.  ACE closed 14 stores during the first nine months of fiscal 2001; ACE
 expects to close the 84 underperforming stores before fiscal year-end.
     "The tax season for the third quarter of this fiscal year resulted in a
 28.5 percent increase in tax check fees over the third quarter of the last
 fiscal year," said Donald H. Neustadt, chief executive officer of ACE.  "As
 tax season ends, we plan to re-deploy 50 self-service machines from tax
 preparer locations to ACE stores.  We believe that the self-service machines
 will improve customer service, making it faster and more convenient to cash
 checks."
 
 
                        Nine-Month Financial Highlights
                     (in thousands, except per share data)
 
                                                              Incr/(Decr) in
                                  Nine Months Ended             Fiscal 2001
                                      March 31,              from Fiscal 2000
                                    2001       2000           $          %
                                                   (unaudited)
 
     Revenues                    $145,531    $104,209      $41,322       40%
     Net income/(loss)              $(772)     $7,604 *    $(8,376)    (110)%
     Earnings before interest,
      taxes, depreciation and
      amortization                $25,075     $24,385 *       $690        3%
     Diluted earnings/(loss)
      per share                    $(0.08)      $0.73 *     $(0.81)    (111)%
 
     *  Before cumulative effect of change in accounting
 
     Business Outlook for the Remainder of Fiscal 2001 and for Fiscal 2002
     The statements made below (preceded by bullet points) are the Company's
 outlook or forecast for the Company's business for the remainder of the fiscal
 year ending June 30, 2001 and for the fiscal year ending June 30, 2002.  These
 statements are made only as of April 20, 2001 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 various assumptions made after the
 nine months ended March 31, 2001, which include, but are not limited to the
 following:  (1) the expected closing of 84 underperforming stores in the
 fourth quarter of fiscal 2001, the opening of an additional 50 newly-
 constructed stores in fiscal 2002, the closure of 10 stores during the normal
 course of business in fiscal 2002, but no other increase or decrease in the
 number of the Company's owned stores (whether by acquisition or otherwise);
 (2) the face amount of the average check cashed being approximately $326; (3)
 the face amount of the average money order sold being approximately $132; (4)
 no material change in the effective interest rate on all money borrowed by the
 Company; (5) no material change in the nature or terms, or the procedure for
 the Company's offering and selling at its locations, any third-party product
 or service offered at the Company's locations.
 
     -- The number of checks cashed (excluding tax checks), which was
        9.2 million in the first nine months of fiscal 2001, is expected to
        reach a total of between 12.3 and 12.4 million in all of fiscal 2001
        and between 13.0 and 13.3 million in all of fiscal 2002.  This assumed
        number for all of fiscal 2001 would be a 12 to 13 percent increase
        over the number of checks cashed in all of fiscal year 2000 and would
        result in check fees (excluding tax checks) of between $90 and
        $91 million for fiscal 2001.  This assumed number for fiscal 2002
        would be a 5 to 7 percent increase over the anticipated number of
        checks cashed in the fiscal year 2001 and would result in check fees
        (excluding tax checks) of between $97 and $99 million in fiscal 2002.
 
     -- The impact of the Company's business of cashing tax refund checks and
        refund anticipation loan checks is continuing to be primarily in the
        third and fourth quarters of the Company's fiscal year.  The number of
        tax checks in the first nine months of fiscal 2001 was 320,000 and is
        estimated to be an additional 100,000 in the fourth quarter of fiscal
        2001.  The estimated total number of 420,000 tax checks cashed in all
        of fiscal 2001 would result in estimated tax fees of $15.0 to
        $15.1 million.  The number of tax checks is expected to reach between
        420,000 and 430,000 in all of fiscal 2002, which would result in tax
        fees of between $14.9 and $15.3 million.
 
     -- The number of Goleta National Bank (GNB) loan transactions in which
        participations are purchased is expected to reach between 1.5 and
        1.6 million in all of fiscal 2002 compared to approximately
        1.3 million such loan transactions in all of fiscal 2001.  This number
        would result in between $59 and $61 million in loan interest from loan
        participations in fiscal 2002, compared to approximately $53 million
        in loan interest from loan participations in all of fiscal 2001.
 
     -- Revenue from bill-payment fees, which was $7.5 million in the first
        nine months of fiscal 2001, is expected to be between $10.8 and
        $11.2 million in all of fiscal 2002, compared to an estimated
        $10.2 million in all of fiscal 2001.
 
     -- Same store sales, which was 22.8 percent in the first nine months of
        fiscal 2001, is expected to increase between 7 and 8 percent in all of
        fiscal 2002.
 
     -- The Company which reported total revenue of $145.5 million in the first
        nine months of fiscal 2001, expects its total revenue for all of
        fiscal 2002 to range between $210 and $215 million, which would be an
        8 to 11 percent increase from the Company's estimated fiscal 2001
        total revenue of approximately $195 million.
 
     -- The Company's gross margin percentage, which was 26.6 percent in the
        first nine months of fiscal 2001, expects gross margin percentage for
        all of fiscal 2002 to be approximately 32 to 33 percent compared to
        approximately 27 percent for all of fiscal 2001.
 
     -- Region, headquarters, and franchise expenses, for the first nine months
        of fiscal 2001 were $18.8 million.  In all of fiscal 2002, these same
        expenses are expected to range from 13.3 to 13.5 percent of revenue
        for fiscal 2002, compared to an estimated 13 percent of revenue for
        all of fiscal 2001.
 
     -- The Company's interest expense for the first nine months of fiscal 2001
        was $9.0 million.  The Company expects its interest expense for all of
        fiscal 2002 to be approximately $12.5 million, which would be an
        increase of 3 percent over the estimated interest expense of
        $12.2 million for all of fiscal 2001; the increase would be due to
        estimated slightly higher effective interest rates offset in part by
        estimated lower average borrowings.
 
     -- Regarding participations purchased in GNB loans, small consumer loan
        losses, as a percentage of total revenue, which was 12.6 percent in
        the first nine months of fiscal 2001, are expected to range between
        10.7 and 10.9 percent in all of fiscal 2002 compared to an expected
        12.1 percent in all of fiscal 2001.
 
     -- Returned checks, net of collections and cash shortages, as a percentage
        of total revenue, which was 6.5 percent in the first nine months of
        fiscal 2001, is expected to range between 5.2 and 5.5 percent in all
        of fiscal 2002, compared to an estimated 6.2 percent in all of fiscal
        2001.
 
     -- The effective tax rate for all of fiscal 2002 is expected to be
        approximately 40 percent, substantially the same as the effective rate
        for all of fiscal 2001.
 
     -- The Company, whose center-level depreciation was $5.0 million in the
        first nine months of fiscal 2001, expects center-level depreciation to
        be approximately $6.7 million for all of fiscal 2002, an increase of
        2 percent over the estimated depreciation for fiscal 2001 of
        $6.6 million.
 
     -- The Company, whose amortization of goodwill and other acquisition-
        related intangibles was $3.7 million in the first nine months of
        fiscal 2001, expects amortization of goodwill and other acquisition-
        related intangibles and costs to be approximately $6.0 million for
        fiscal 2002, an increase of 18 percent over the amortization for
        fiscal 2001 due to acquisitions during the first nine months of fiscal
        2001.
 
     -- Diluted loss per share for the first nine months of fiscal 2001 was
        $0.08.  The Company expects diluted earnings per share for fiscal 2002
        to range between $1.30 and $1.36, compared an anticipated diluted
        earnings per share range of $0.03 to $0.05 for all of fiscal 2001.
 
     -- The Company's earnings before interest, taxes, depreciation, and
        amortization (EBITDA) for the first nine months of fiscal 2001 was
        $25.1 million.  The Company expects EBITDA in all of fiscal 2002 to be
        between $45 and $47 million, a 34 to 40 percent increase over the
        estimated fiscal 2001 EBITDA of approximately $33.5 million.
 
     Forward-looking Statements
     The statements made above in this release, and particularly under
 "Business Outlook for the Remainder of Fiscal 2001 and for Fiscal 2002,"
 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 the Company 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
 described above and are inherently subject to risks, uncertainties, and other
 factors, many of which are not under the Company'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, many of the
 matters described in the Company's Annual Report on Form 10-K for its fiscal
 year ended June 30, 2000, and its other public filings:  the Company's
 relationships with Travelers Express Company, Inc. and its affiliates, with
 Goleta National Bank, and with the Company's bank lenders; governmental
 regulation of check-cashing, short-term consumer lending, and related
 financial services businesses; theft and employee errors; the availability of
 suitable locations, acquisition opportunities, adequate financing, and
 experienced management employees to implement the Company's growth strategy;
 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 the Company; the terms and
 performance of third-party products and services offered at the Company's
 locations and customer demand and response to products and services offered at
 the Company's locations.
     The Company 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 the Company's views or
 expectations, or otherwise.  The Company makes no prediction or statement
 about the performance of the Company'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 1,153 stores,
 consisting of 983 company-owned stores and 170 franchised stores in 34 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 71 locations.  ACE offers a broad range of financial and check-
 cashing 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.
 Under ACE's agreement with Goleta National Bank (GNB), GNB currently makes
 small consumer loans 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 share and per share amounts)
 
                                  Three Months Ended       Nine Months Ended
                                       March 31,               March 31,
                                   2001        2000        2001        2000
 
     Revenues                     $60,193    $41,337     $145,531    $104,209
 
     Store expenses:
       Salaries and benefits       15,129     10,154       37,830      27,506
       Occupancy                    7,143      5,401       19,709      15,751
       Depreciation                 1,720      1,419        4,958       3,937
       Other                       21,972      7,526       44,258      21,983
     Total store expenses          45,964     24,500      106,755      69,177
     Store gross margin            14,229     16,837       38,776      35,032
     Region expenses                3,755      2,777       10,220       7,781
     Headquarters expenses          3,015      2,364        7,778       6,021
     Franchise expenses               283        286          777         797
     Other depreciation and
      amortization                  1,464        952        3,653       2,756
     Interest expense, net          3,898      1,942        9,017       4,771
     Other expenses                 8,740          0        8,618         346
     Income (loss) before income
      taxes and cumulative effect
      of accounting change         (6,926)     8,516       (1,287)     12,560
     Income taxes                  (2,771)     3,339         (515)      4,956
     Income (loss) before
      cumulative effect of
      accounting change            (4,155)     5,177         (772)      7,604
     Cumulative effect of
      accounting change, net of
      income tax benefit of $402      ---        ---          ---        (603)
     Net income (loss)            $(4,155)    $5,177        $(772)     $7,001
 
     EBITDA (A) (B)                $8,896    $12,829      $25,075     $24,385
 
     Basic earnings (loss) per
      share:
       Before cumulative effect
        of accounting change       $(0.41)     $0.51       $(0.08)      $0.76
       Cumulative effect of
        accounting change             ---        ---          ---        (.06)
       Basic earnings (loss)
        per share                  $(0.41)     $0.51       $(0.08)      $0.70
 
       Weighted average number of
        common shares outstanding -
        basic EPS                  10,031     10,085       10,002      10,069
 
     Diluted earnings (loss)
      per share:
       Before cumulative effect
        of accounting change       $(0.41)     $0.50       $(0.08)      $0.73
       Cumulative effect of
        accounting change             ---        ---          ---        (.06)
       Diluted earnings (loss)
        per share                  $(0.41)     $0.50       $(0.08)      $0.67
 
       Weighted average number of
        common and dilutive shares
        outstanding - diluted EPS  10,195     10,445       10,165      10,378
 
     (A)  Before cumulative effect of accounting change recorded in the three
          months ended September 30, 1999.
     (B)  EBITDA also excludes non-cash expenses in connection with store
          closings, which were recorded in "other expenses" for the three and
          nine months ended March 31, 2001 and 2000.
 
 
                    ACE CASH EXPRESS, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
               (in thousands, except share and per share amounts)
 
                                                     March 31,      June 30,
                                                       2001           2000
                                                    (unaudited)
 
                                       ASSETS
     Current Assets
       Cash and cash equivalents                     $158,312       $105,577
       Accounts receivable, net                         4,060          5,985
       Loans receivable, net                           14,331         18,695
       Prepaid expenses and other current assets        2,272          2,069
       Inventories                                      1,261          1,418
     Total Current Assets                             180,236        133,744
 
     Noncurrent Assets
       Property and equipment, net                     38,013         36,915
       Covenants not to compete, net                    2,178          1,429
       Excess of purchase price over fair value
        of assets acquired, net                        76,521         45,929
       Other assets                                     3,816          3,406
     Total Assets                                    $300,764       $221,423
 
                        LIABILITIES AND SHAREHOLDERS' EQUITY
     Current Liabilities
       Revolving advances                            $118,500        $95,000
       Accounts payable, accrued liabilities,
        and other current liabilities                  35,069         21,242
       Money order principal payable                   18,962         10,487
       Current portion of senior secured notes
        payable                                         4,406          4,180
       Reducing revolving line-of-credit/term advances    ---          3,469
       Notes payable                                      770            898
     Total Current Liabilities                        177,707        135,276
 
     Noncurrent Liabilities
       Senior secured notes payable                     8,000         12,000
       Reducing revolving line-of-credit/
        term advances                                  56,000         15,031
       Notes payable                                      703            438
       Other liabilities                                5,967          3,519
     Total Liabilities                                248,377        166,264
 
     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, 10,033,220 and
        9,984,563 shares issued and outstanding,
        respectively                                      100            100
       Additional paid-in capital                      23,092         22,715
       Retained earnings                               33,973         34,745
       Accumulated other comprehensive loss            (2,071)           ---
       Treasury stock, at cost, 211,400 and
        181,400 shares, respectively                   (2,707)        (2,401)
     Total Shareholders' Equity                        52,387         55,159
     Total Liabilities and Shareholders' Equity      $300,764       $221,423
 
 
                    ACE CASH EXPRESS, INC. AND SUBSIDIARIES
                         SUPPLEMENTAL STATISTICAL DATA
 
                                    Three Months Ended      Nine Months Ended
                                        March 31,               March 31,
                                    2001         2000        2001       2000
 
     Company Operating and
      Statistical Data:
     Company-owned stores in
      operation:
       Beginning of period         1,055          817        915         798
       Acquired                        2           20        131          23
       Opened                         15           32         36          64
       Closed                         (4)           0        (14)        (16)
       End of period               1,068          869      1,068         869
 
     Percentage increase in
      comparable store revenues
      from prior period:
       Exclusive of tax-related
        revenues (A)                29.7%         3.6%      25.1%        6.4%
       Total revenues (B)           22.9%         5.5%      22.8%        6.8%
 
     Capital expenditures
      (in thousands)              $3,982       $5,768     $9,316      $9,601
     Cost of net assets acquired
      (in thousands)                $595       $6,091    $36,705      $7,143
 
     Operating Data (Check
      Cashing and Money Orders):
     Face amount of checks cashed
      (in millions)               $1,457       $1,144     $3,438      $2,890
     Face amount of money orders
      sold (in millions)            $483         $413     $1,269      $1,196
     Face amount of money orders
      sold as a percentage of
      the face amount of checks
      cashed                        33.1%        36.1%      36.9%       41.4%
     Face amount of average
      check                         $423         $395       $363        $342
     Average fee per check        $10.60       $10.02      $8.49       $8.06
     Fees as a percentage of
      average check                 2.50%        2.54%      2.34%       2.36%
     Number of checks cashed
      (in thousands)               3,443        2,897      9,484       8,448
     Number of money orders sold
      (in thousands)               3,596        3,194      9,573       9,340
 
     Collections Data:
     Face amount of returned
      checks (in thousands)       $6,993       $4,633    $20,482     $12,698
     Collections (in thousands)    4,607        2,961     13,717       7,761
     Net write-offs
      (in thousands)              $2,386       $1,672     $6,765      $4,937
 
     Collections as a percentage
      of returned checks            65.9%        63.9%      67.0%       61.1%
     Net write-offs as a
      percentage of revenues         4.0%         4.0%       4.6%        4.7%
     Net write-offs as a percentage
      of the face amount of
      checks cashed                  .16%         .15%       .20%        .17%
 
 
                                                     Year Ended June 30,
                                                 2000       1999        1998
 
     Company Operating and Statistical Data:
     Company-owned stores in operation:
       Beginning of period                        798        683         617
       Acquired                                    36         35          15
       Opened                                      99         99          62
       Closed                                     (18)       (19)        (11)
       End of period                              915        798         683
 
     Percentage increase in comparable store
      revenues from prior period:
       Exclusive of tax-related revenues (A)      7.1%      10.6%        8.0%
       Total revenues (B)                         6.9%      10.8%        6.9%
 
     Capital expenditures (in thousands)      $12,255    $10,089      $5,742
     Cost of net assets acquired
      (in thousands)                          $11,359     $8,378      $4,708
 
     Operating Data (Check Cashing and
      Money Orders):
     Face amount of checks cashed
      (in millions)                            $3,839     $3,373      $2,898
     Face amount of money orders sold
      (in millions)                            $1,585     $1,905      $1,858
     Face amount of money orders sold as a
      percentage of the face amount of checks
      cashed                                     41.3%      56.5%       64.1%
     Face amount of average check                $339       $320        $305
     Average fee per check                      $7.92      $7.47       $7.26
     Fees as a percentage of average check       2.33%      2.33%       2.38%
     Number of checks cashed (in thousands)    11,317     10,556       9,496
     Number of money orders sold
      (in thousands)                           12,339     14,495      14,146
 
     Collections Data:
     Face amount of returned checks
      (in thousands)                          $16,548    $12,442     $10,193
     Collections (in thousands)                10,788      7,423       6,301
     Net write-offs (in thousands)             $5,760     $5,019      $3,892
 
     Collections as a percentage of
      returned checks                            65.2%      59.7%       61.8%
     Net write-offs as a percentage of
      revenues                                    4.1%       4.1%        3.9%
     Net write-offs as a percentage of the
      face amount of checks cashed                .15%       .15%        .13%
 
     (A)  Change in revenues computed excluding tax refund check cashing fees
          for both the full year and the interim periods compared.
     (B)  Calculated based on the change in revenues of all stores open for
          both the full year and the interim periods compared.
 
 
                    ACE CASH EXPRESS, INC. AND SUBSIDIARIES
                    SUPPLEMENTAL STATISTICAL DATA, continued
 
                                  Three Months Ended      Nine Months Ended
                                      March 31,               March 31,
                                   2001        2000        2001       2000
 
     Operating Data (Small
      Consumer Loans):
 
     Volume (in thousands)      $101,998      $31,214   $280,820     $93,148
     Average advance                $268         $227       $271        $218
     Average finance charge       $42.33       $30.41     $41.27      $31.17
     Number of loan transactions
      (in thousands)                 381          121      1,038         374
 
     Balance Sheet Data (in
      thousands):
     Gross loans receivable      $26,704       $5,390    $26,704      $5,390
       Less:  Allowance for
        losses on loans
        receivable                12,373          ---     12,373         ---
     Loans receivable, net of
      allowance                  $14,331       $5,390    $14,331      $5,390
 
     Allowance for losses on
      loans receivable:
       Beginning of period        $5,471         $---       $---        $---
       Provision for loan
        losses                    12,806          ---     19,972         ---
       Net charge-offs            (5,904)         ---     (7,599)        ---
       End of period             $12,373         $---    $12,373        $---
 
     Allowance as a percent of
      gross loans receivable        46.3%         ---       46.3%        ---
 
 
                                                   Year Ended June 30,
                                               2000        1999       1998
 
     Operating Data (Small
      Consumer Loans):
 
     Volume (in thousands)                   $137,015   $105,765     $69,182
     Average advance                             $240       $200        $177
     Average finance charge                    $34.51     $30.30      $27.51
     Number of loan transactions
      (in thousands)                              557        460         338
 
     Balance Sheet Data (in
      thousands):
     Gross loans receivable                   $18,695     $5,543      $5,174
       Less:  Allowance for
        losses on loans
        receivable                                ---        ---         ---
     Loans receivable, net of
      allowance                               $18,695     $5,543      $5,174
 
     Allowance for losses on
      loans receivable:
       Beginning of period                       $---       $---        $---
       Provision for loan
        losses                                    ---        ---         ---
       Net charge-offs                            ---        ---         ---
       End of period                             $---       $---        $---
 
     Allowance as a percent of
      gross loans receivable                      ---        ---         ---
 
 
                    ACE CASH EXPRESS, INC. AND SUBSIDIARIES
                                REVENUE ANALYSIS
 
      Revenues (in thousands):
                                Three Months Ended       Nine Months Ended
                                     March 31,               March 31,
                                 2001        2000         2001        2000
 
     Check cashing fees        $23,561      $18,973      $67,253     $57,702
     Loan fees and interest     14,039        3,692       37,866      11,657
     Tax check fees             12,918       10,055       13,233      10,363
     Bill payment services       2,648        2,440        7,498       7,163
     Money transfer services     2,726        2,466        7,735       6,387
     Money order fees            1,984        1,817        5,349       5,326
     Franchise revenues            553          585        1,722       1,837
     Other fees                  1,764        1,309        4,875       3,774
     Total revenue             $60,193      $41,337     $145,531    $104,209
 
 
      Percentage of Revenues:
                                   Three Months Ended     Nine Months Ended
                                       March 31,              March 31,
                                  2001       2000         2001         2000
 
     Check cashing fees           39.2%        45.9%        46.2%       55.4%
     Loan fees and interest       23.3          8.9         26.0        11.2
     Tax check fees               21.5         24.3          9.1         9.9
     Bill payment services         4.4          5.9          5.2         6.9
     Money transfer services       4.5          6.0          5.3         6.1
     Money order fees              3.3          4.4          3.7         5.1
     Franchise revenues            0.9          1.4          1.2         1.8
     Other fees                    2.9          3.2          3.3         3.6
     Total revenue               100.0%       100.0%       100.0%      100.0%
 
 
      Revenues (in thousands):
 
                                                   Year Ended June 30,
                                             2000         1999        1998
 
     Check cashing fees                     $77,574      $68,249     $60,416
     Loan fees and interest                  17,872       14,257      10,137
     Tax check fees                          12,067       10,590       8,571
     Bill payment services                    9,447        8,394       4,146
     Money transfer services                  8,944        7,951       6,082
     Money order fees                         7,032        5,332       2,879
     Franchise revenues                       2,537        2,117       1,665
     Other fees                               5,163        5,424       6,298
     Total revenue                         $140,636     $122,314    $100,194
 
 
      Percentage of Revenues:
                                                   Year Ended June 30,
                                               2000         1999        1998
 
     Check cashing fees                        55.2%        55.8%       60.3%
     Loan fees and interest                    12.7         11.7        10.1
     Tax check fees                             8.6          8.7         8.5
     Bill payment services                      6.7          6.8         4.1
     Money transfer services                    6.4          6.5         6.1
     Money order fees                           5.0          4.4         2.9
     Franchise revenues                         1.8          1.7         1.7
     Other fees                                 3.6          4.4         6.3
     Total revenue                            100.0%       100.0%      100.0%
 
 
                                CONFERENCE CALL
                                 April 20, 2001
                                   4 p.m. EDT
 
     An investor conference call will be held today, April 20th at 4 p.m. EDT,
 regarding the release of ACE Cash Express third quarter earnings.  We invite
 you to participate in the conference call by dialing (800) 374-1747.  Donald
 H. Neustadt, chief executive officer, and Jay B. Shipowitz, president and
 chief operating officer, will present the third quarter review.
     For your convenience, the conference call will be replayed in its entirety
 beginning at approximately 7 p.m. EDT on April 20th through 7 p.m. EDT on
 April 21th.  If you wish to listen to a replay of this conference call, dial
 (800) 642-1687, provide your last name and use confirmation number 759565.
     If you have questions regarding this conference call, please contact Darla
 Smotherman at (972) 550-5037.
 
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 SOURCE  ACE Cash Express, Inc.