SPARTANBURG, S.C., July 29 /PRNewswire-FirstCall/ -- Advance America, Cash Advance Centers, Inc. (NYSE: AEA) today reported the results of its operations for the six months and quarter ended June 30, 2009.
For the six months ended June 30, 2009, total revenues decreased 6.4% to $306.5 million, compared to $327.6 million for the same period in 2008. Total revenues for the quarter ended June 30, 2009 decreased 7.4% to $150.1 million, compared to $162.1 million for same period in 2008. These comparisons include the results of operations in Arkansas and New Mexico, states the Company exited in 2008, as well as operations in New Hampshire, a state in which the Company ceased making advances in January 2009. Revenue from these states for the six months and quarter ended June 30, 2008 were $6.5 million and $2.9 million respectively. In addition, as a result of a new Ohio law enacted in November 2008, the contribution to revenues from our centers in Ohio has decreased dramatically. Revenue from Ohio declined by $12.7 million and $5.2 million, for the six months and quarter ended June 30, 2009, respectively, compared to the same periods in 2008.
Excluding revenues from Arkansas, New Mexico, New Hampshire and Ohio for both the six months and quarter ended June 30, 2009, total revenues decreased by 0.7% and 2.7% respectively from the same periods in 2008. For the quarter ended June 30, 2009, total revenues for the centers opened prior to April 1, 2008 and still open as of June 30, 2009 decreased 4.1% compared to the same period in 2008.
The provision for doubtful accounts as a percentage of total revenues for the six months ended June 30, 2009 was 17.7%, compared to 15.6% for the same period in 2008. For the quarter ended June 30, 2009, the provision for doubtful accounts as percentage of total revenues was 22.0%, compared to 18.6% for the same period in 2008. The increase in the provision for doubtful accounts for both the six months and quarter ended June 30, 2009 was primarily a result of a higher loss reserve for a new open-ended line of credit product that the Company began offering in Virginia in late 2008. In addition, the Company sold approximately $2.2 million of written-off receivables during the quarter ended June 30, 2009, compared to $0.5 million during the same period in 2008.
For the quarter ended June 30, 2009, the Company's advertising expense was $8.9 million or 6.0% of revenue, compared to $6.8 million or 4.2% of revenue for the same period in 2008. The Company expects its advertising expense for the year ending December 31, 2009 to be between 3.0% and 3.5% of revenue.
Center expenses for the six months and quarter ended June 30, 2009 were $237.5 million and $125.5 million, respectively, compared to $245.9 million and $126.2 million for the same periods in 2008. Excluding the provision for doubtful accounts and advertising expense for the quarter ended June 30, 2009, center expenses decreased by $5.7 million or 6.3% compared to the same period in 2008, primarily due to center consolidation and cost control initiatives.
Center gross profit decreased 15.5% to $69.1 million in the first six months of 2009, from $81.7 million in the same period of 2008. For the quarter ended June 30, 2009, center gross profit decreased 31.3% to $24.7 million, from $35.9 million for the quarter ended June 30, 2008. During the first six months of 2009, the Company closed 165 centers in 26 different states and 1 center in the United Kingdom, of which approximately 105 centers were closed during the quarter ended June 30, 2009. As a result, the Company had approximately $5.1 million and $1.7 million of center closing costs during the six months and quarter ended June 30, 2009, respectively, compared to $1.1 million and $0.2 million during the same periods in 2008. As of June 30, 2009, the Company had an operating network of 2,635 centers and 78 limited licensees in 33 states, the United Kingdom, and Canada.
For the six months ended June 30, 2009, general and administrative expenses were $27.9 million, compared to $32.4 million for the same period in 2008, a decrease of 13.9%. General and administrative expenses for the quarter ended June 30, 2009 were $13.8 million compared to $16.0 million for the same quarter in 2008, a decrease of 13.8%. The decrease in general and administrative expenses is primarily due to lower public and government relations expenses in addition to the Company's continued emphasis on controlling costs.
For the quarter ended June 30, 2009, the Company's income tax expense decreased to 23.5% of income before taxes, compared to 43.8% during the same period in 2008, primarily due to the reduction in state taxes as a result of claims filed for recovery of taxes recognized in prior years.
Net income for the first six months of 2009 decreased 9.5% to $21.8 million, compared to $24.1 million for the same period in 2008. Net income for the quarter ended June 30, 2009 decreased 28.4% to $6.6 million, compared to $9.3 million for the same period in 2008.
Diluted earnings per share were $0.35 for the six months ended June 30, 2009, compared to diluted earnings per share of $0.36 for the same period in 2008. For the quarter ended June 30, 2009, diluted earnings per share were $0.11 for the quarter ended June 30, 2009, compared to diluted earnings per share of $0.14 for the same period in 2008.
