Oct. 28, 2009 (PR Newswire) --

SPARTANBURG, S.C., Oct. 28 /PRNewswire-FirstCall/ -- Advance America, Cash Advance Centers, Inc. (NYSE: AEA) today reported the results of its operations for the nine months and quarter ended September 30, 2009.

For the nine months ended September 30, 2009, total revenues decreased 5.4% to $474.4 million, compared to $501.5 million for the same period in 2008. Total revenues for the quarter ended September 30, 2009 decreased 3.4% to $167.9 million, compared to $173.9 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 three states for the nine months and quarter ended September 30, 2008 was $10.1 million and $3.6 million, respectively. In addition, as a result of a new Ohio law enacted in November 2008, the contribution to revenues from our centers in that state has decreased dramatically. Revenue from Ohio declined by $16.6 million and $3.8 million for the nine months and quarter ended September 30, 2009, respectively, compared to the same periods in 2008.

Excluding revenues from Arkansas, New Mexico, New Hampshire, and Ohio for the nine month periods ended September 30, 2009 and 2008, total revenues decreased by 0.1% during this period in 2009 compared to the same period in 2008. Excluding revenues from those same states for the quarters ended September 30, 2009 and 2008, total revenues increased by 1.0% during this period in 2009 compared to the same period in 2008.

For the quarter ended September 30, 2009, total revenues for centers opened prior to July 1, 2008 and still open as of September 30, 2009 increased 1.8% compared to the same period in 2008.

The provision for doubtful accounts as a percentage of total revenues for the nine months ended September 30, 2009 was 19.6%, compared to 18.6% for the same period in 2008. For the quarter ended September 30, 2009, the provision for doubtful accounts as a percentage of total revenues was 23.1%, compared to 24.2% for the same period in 2008. For the nine months ended September 30, 2009, the Company sold approximately $2.2 million of previously written-off receivables, compared to $0.6 million during the same period in 2008. The Company did not sell any previously written-off receivables during the quarter ended September 30, 2009, compared to $0.1 million for the same period in 2008.

For the nine months ended September 30, 2009, the Company's advertising expense was $15.4 million, or 3.2% of revenue, compared to $16.1 million, or 3.2% of revenue, for the same period in 2008. For the quarter ended September 30, 2009, the Company's advertising expense was $4.2 million, or 2.5% of revenue, compared to $6.1 million, or 3.5% of revenue, for the same period in 2008.

Center expenses for the nine months and quarter ended September 30, 2009 were $362.1 million and $124.6 million, respectively, compared to $382.3 million and $136.4 million for the same periods in 2008. Excluding the provision for doubtful accounts and advertising expense for the quarter ended September 30, 2009, center expenses decreased by $6.6 million or 7.5% compared to the same period in 2008, primarily due to center consolidation and cost control initiatives.

Center gross profit decreased 5.7% to $112.3 million for the first nine months of 2009, from $119.1 million for the same period of 2008. For the quarter ended September 30, 2009, center gross profit increased 15.6 % to $43.3 million, from $37.4 million for the quarter ended September 30, 2008. During the first nine months of 2009, the Company closed 190 centers in 26 different states and the United Kingdom, of which 24 of those centers were closed during the quarter ended September 30, 2009. As a result, the Company had approximately $5.3 million and $0.2 million of center closing costs during the nine months and quarter ended September 30, 2009, respectively, compared to $2.0 million and $0.9 million during the same periods in 2008, excluding any increases in the provision for doubtful accounts. As of September 30, 2009, the Company had an operating network of 2,614 centers and 75 limited licensees in 33 states, the United Kingdom, and Canada.

For the nine months ended September 30, 2009, general and administrative expenses were $42.1 million, compared to $50.7 million for the same period in 2008, a decrease of 16.9%. General and administrative expenses for the quarter ended September 30, 2009 were $14.3 million, compared to $18.3 million for the same quarter in 2008, a decrease of 22.1%. The decrease in general and administrative expenses for the nine months and quarter ended September 30, 2009 is primarily due to lower public and government relations expenditures, in addition to the Company's continued emphasis on controlling costs, partially offset by higher legal expenses.

The Company recorded a charge of $6.4 million during the quarter ended September 30, 2009 for previously disclosed settlements of lawsuits.

For the nine months ended September 30, 2009, the Company's income tax expense was 37.7%, compared to 43.2% during the same period in 2008.