Credit service provider Advance America, Cash Advance Centers Inc. (AEA) Thursday said that its fourth quarter profit nearly halved from the same period last year, hurt by lower revenues and higher expenses relating to ballot initiatives in Arizona and Ohio.
Fourth quarter net income for Advance America nearly halved to $6.0 million or $0.10 per share from $11.5 million or $0.15 per share in the year-ago quarter.
On average, three analysts polled by Thomson Reuters expected earnings of $0.12 per share. Analysts' estimates typically exclude special items.
Revenues for the quarter were $174.98 million, down 4.7% from $183.61 million in the same quarter a year ago.
Gross profit decreased 7.1% to $157.7 million from the year ended December 31, 2007.
General and administrative expenses increased 18.7% due primarily to higher legal and regulatory expenses, including the Georgia lawsuit settlement and higher government affairs expenses, primarily related to ballot initiatives in Arizona and Ohio.
For full-year 2008, net income plunged 29.3% to $38.47 million or $0.60 per share from $54.39 million or $0.70 per share a year ago.
The Street expected earnings of $0.61 per share for the year.
Total revenue for the year fell 4.7% to $676.44 million from $709.56 million in the prior year.
The board declared a quarterly dividend of $0.0625 per share, payable on March 6, 2009, to stockholders of record as of February 24, 2009.
AEA closed Thursday's regular trading at $1.11, down $0.02 or 1.77% on a volume of $0.14 million shares.
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