Exhibit 99.1
FOR IMMEDIATE RELEASE
Contacts: | Jamie Fulmer- (864) 342-5633 |
| Director of Investor Relations |
| jfulmer@advanceamerica.net |
Advance America Announces Record Annual Revenue of $672 Million
and Fourth Quarter Earnings of $0.24 per Share
SPARTANBURG, S.C., February 7, 2007— Advance America, Cash Advance Centers, Inc. (NYSE: AEA) today reported the results of its operations for the fourth quarter and year ended December 31, 2006.
For the year ended December 31, 2006, total revenues increased 6.7% to $672.3 million, compared to $630.1 million in 2005. Total revenues for the quarter ended December 31, 2006 increased 10.0% to $185.7 million compared to $168.7 million for the same period in 2005. For the fourth quarter of 2006, total revenues for the centers opened prior to October 1, 2005 and still open as of December 31, 2006 increased 6.9% compared to the same period in 2005.
During the fourth quarter the Company expanded the offering of its new CashVantage pre-paid card to over 2,200 centers. The card is a general purpose, consumer spend pre-paid debit card which cardholders may load from multiple sources. Commenting on the CashVantage product Advance America’s President and Chief Executive Officer Ken Compton said, “This represents our first major product launch and we believe this card
product provides a great benefit to our customers and will continue to drive incremental revenue to our centers. These results are still very preliminary; however, we are encouraged by the initial customer acceptance of this product offering.”
In addition to new products, the Company is actively working to expand its geographic footprint. In light of recent legislative and regulatory changes in Canada, the Company is evaluating the feasibility of opening centers in Canada. In addition, the Company is pursuing opportunities to develop a presence in the United Kingdom.
The provision for doubtful accounts and agency bank losses as a percent of total revenues for the quarter ended December 31, 2006 was 22.1 % compared to 22.6 % for the same period in 2005. For the year ended December 31, 2006, the provision for doubtful accounts and agency bank losses was 18.0% of total revenue compared to 18.3% for 2005.
Center gross profit for the year increased 8.7%, to $186.6 million in 2006 from $171.6 million in 2005. For the quarter ended December 31, 2006, center gross profit increased 8.2%, to $49.6 million from $45.8 million for the same period in 2005.
Net income for 2006 was $70.2 million, compared to net income of $63.0 million for 2005. Net income for the quarter ended December 31, 2006 was $18.9 million compared to $16.7 million for the same period in 2005.
Diluted earnings per share were $0.24 for the fourth quarter of 2006 compared to diluted earnings per share of $0.20 for the same period in 2005. For the year ended December 31, 2006, diluted earnings per share were $0.87 compared to diluted earnings per share of $0.76 for 2005.
Commenting on the fourth quarter 2006 results, Mr. Compton said, “We are pleased to report the operating results of a strong fourth quarter. We continue to experience solid growth in both our new and mature centers and to expand our operating network. As a whole, 2006 was a year in which the Company’s solid performance showed the continued strength of the demand for our product across our national footprint. In 2007, we plan to build on this platform and provide bottom-line return to our shareholders.”
The Company opened 123 and 302 new centers during the three months and year ended December 31, 2006, respectively, compared to 150 and 361 during the same periods in 2005. As of December 31, 2006, the Company’s national operating network had expanded to 2,853 centers in 36 states.
On January 24, 2007, the Company announced that its Board of Directors declared a regular quarterly dividend of $0.125 per share. The dividend will be payable on March 9, 2007 to stockholders of record as of February 28, 2007. During the quarter ending December 31, 2006, the Company repurchased approximately 530,000 shares of its stock in the open market for an aggregate purchase price of approximately $7.7 million. The
Company’s stock repurchase program, together with its quarterly dividends, returned approximately $77 million in cash to stockholders during 2006.
The Company will discuss these results during a conference call on Thursday, February 8th, at 9:00 a.m. (EDT). To listen to this call, please dial the conference telephone number (800) 289-0485. This call will also be webcast live and can be accessed at Advance America’s website www.advanceamericacash.com. An audio replay of the call will be available online or by telephone (888) 203-1112 (replay passcode: 5541413) until the close of business on February 15, 2007.
About Advance America
Founded in 1997, Advance America, Cash Advance Centers, Inc. is the country’s leading provider of payday cash advance services with approximately 2,900 centers in 36 states. The Company offers convenient, less-costly credit options to consumers whose needs are not met by traditional financial institutions. The Company is a founding member of the Community Financial Services Association of America (CFSA), whose mission is to promote laws that provide substantive consumer protections and to encourage responsible industry practices.
Forward-Looking Statements and Information:
Certain statements contained in this release may constitute “forward- looking statements” within the meaning of federal securities laws. All statements in this release other than those relating to our historical information or current condition are forward-looking statements. For example, any statements regarding our future financial performance, our business strategy, and expected developments in our industry are forward-looking statements. Although we believe that the current views and expectations reflected in these forward-looking statements are reasonable, those views and expectations and the related statements are inherently subject to risks, uncertainties, and other factors, many of which are not under our control and may not even be predictable. Therefore, actual results could differ materially from our expectations as of today and any future results, performance, or achievements expressed directly or impliedly by the forward- looking statements. For a
more detailed discussion of some of the factors that may cause our actual results to differ from our current expectations, please refer to the “Risk Factors” section of our Quarterly Report on Form 10- Q for the fiscal quarter ended September 30, 2006, a copy of which is available from the Securities and Exchange Commission, upon request from us, or by going to our website: www.advanceamericacash.com.
