been able to contact all employees and has offered
alternative employment to these employees at other ACE
ACE Cash Express
(AACE) employees and customers in New
Orleans and its
surrounding suburbs were severely impacted by Hurricane Katrina.
operates 20 stores in these markets and had another two stores
construction. At this time, four stores have re-opened. ACE is
evaluate its options for re-opening each of the closed stores.
ACE has been
able to contact all employees and has offered alternative
employment to these
employees at other ACE locations.
Based upon existing information, ACE expects to record an
of $1.0 million, or approximately $0.07 per diluted share in the
quarter of 2006 related to losses from Hurricane Katrina. This
include the write-off of fixed assets and an addition to the
provision related to current and past due loans to customers of
This charge does not include any income expected to be lost
period of time that the stores are closed. During fiscal 2005
the 20 stores
in these markets generated revenue of $3.9 million.
ACE is in discussions with its insurance carrier to determine
how much, if
any, of these losses will be covered by its casualty insurance
and the extent
of its business interruption coverage.
Commenting on the quarter's expected operating results, Jay
President and CEO said, "Overall demand for short-term consumer
strong across our entire system. Same store sales for loan fees
in states not
impacted by the revised FDIC Guidelines are up approximately
11%. In the
states of Arkansas, Pennsylvania and Texas that are impacted by
FDIC Guidelines, customer acceptance of our new First Bank of
product introduced on August 1st is meeting our expectations and
to believe that under the current regulatory environment that
this is the
correct loan product for our customers and our business. However
income potential of this product compared to the Republic Bank
has impacted our results this quarter as same store sales for
loan fees in
states impacted by the revised FDIC Guidelines are down
RTO Online is the official channel for Rent-to-Own Industry News and the
only independent source of news for the rent-to-own, rental-purchase,
lease-purchase trade. RTO Online (Rent to Own Online) represents the choice
of the entire RTO Industry for trusted information, as it happens.
Tell us what you think
Rate the article at the top of this page