Company Profile - Advance America

Overview

Advance America, Cash Advance Centers, Inc. (NYSE: AEA)

Consider Advance America for meeting your personal and professional goals!

We're the nation's leader in the payday advance industry with over 2,800 centers in 37 states and still growing! We can offer challenges and opportunities that others can't match.

Benefits We Offer:
• Life/Health benefits
• Closed Sundays
• 401(k)
• Paid vacation & holidays

Our Creed:
• Respect Your Customers: Treat them with dignity and courtesy at all times.
• Respect Your Associates: Treat them as you would like to be treated.
• Respect Yourself: Work hard & use good, ethical judgment in everything you do.
• Respect the Law: It is there to protect us and our Customers.

Advance America does not discriminate on the basis of race, religion, color, national origin, sex, age, pregnancy, disability, veteran status, citizenship or any legally protected category in connection with any phase of the employment process, including, but not limited to, selection, hiring, promotion, termination, compensation, training and benefits. It is also the practice and policy of Advance America to comply with all applicable federal, state, and local laws.

Culture

At Advance America, you'll also find a great working schedule, excellent benefits, a team-oriented work environment, and competitive salaries with incentive bonuses. With typical hours of operation from 10AM - 6PM, Monday through Saturday, you can have the best retail schedule around, allowing you time for your family and personal interests. You'll gain valuable experience in operations management, customer service, marketing, and employee relations that can create a pathway to promotions and greater responsibility. Currently, over 50% of the company's multi-unit managers have been promoted from within. Expect to find satisfaction helping others and developing close relationships with customers and employees alike. When it comes to building your career, the sky's the limit. Come grow with us!

Benefits

The health and welfare of our employees is important to us, and Advance America’s benefits plan is designed to provide care and assistance for you and your family. As well as health, life, vision and dental coverages, we offer a 401(k) savings plan and an Employee Assistance Plan. More details can be found about these benefits below: Benefits Eligibility: Full-time employees (those who routinely work more than 30 hours per week) are eligible for benefits on the first of the month following the 90th day of continuous employment. Health and Wellness Coverage: Our Health and Wellness coverage is designed to give you peace of mind. Group medical and dental coverage is administered through a self-insured plan for employees as well as their spouse and children. Plan participants are able to purchase up to three times their annual salary in life insurance coverage, and can buy coverage for their spouse and children. Employees are also covered by a Business Travel Accident policy. Other Benefits Include: - 401(k) plan with ten investment fund options - Short and Long-term Disability - Accidental Death & Dismemberment - Employee Assistance Program. Paid Time Off: Advance America recognizes six paid holidays annually. In addition, full-time employees are eligible to earn up to ten vacation days, three floating holidays and four sick days per fiscal year.

Career Opportunities

Advance America Announces Earnings of $0.24 Per Share, Net Income Up 31% Over Adjusted Prior Year

SPARTANBURG, S.C., May 4, 2005 /PRNewswire-FirstCall via COMTEX/ -- Advance America, Cash Advance Centers, Inc. (NYSE: AEA) today reported the results of operations for its first quarter, which ended March 31, 2005.

Net income for the quarter ended March 31, 2005 was $19.7 million, compared to pro forma net income of $15.0 million for the same period in 2004, representing a 31.3% increase. Prior to the Company's initial public offering of its common stock (IPO) in December 2004, Advance America was taxed as an S corporation for income tax purposes. Accordingly, the Company's income tax expense for the first quarter of 2004 was $0.8 million, which represented income tax expense on certain subsidiaries that had not converted to an S corporation. At the date of the IPO, the Company converted to a C corporation for income tax purposes. Pro forma net income was determined based upon the Company's actual net income of $23.7 million for the quarter ended March 31, 2004 and was adjusted as if the Company was taxed as a C corporation at a rate of 39%.

Diluted earnings per share were $0.24 for the quarter ended March 31, 2005 compared to pro forma diluted earnings per share of $0.18 for the same period in 2004. Pro forma diluted earnings per share was based upon the Company's actual diluted earnings per share of $0.35 for the first quarter of 2004 and was adjusted as if the Company was taxed as a C corporation and the post-IPO diluted shares outstanding were outstanding during the first quarter of 2004.

Center gross profit as a percent of total revenues increased 1.7 percentage points, from 31.5% in the first quarter of 2004 to 33.2% in the first quarter of 2005. This increase in profitability was due to the maturing of newer centers and cost control at the center level. Center gross profit was $45.9 million, or 33.2% of total revenues for the quarter ended March 31, 2005, compared to $40.4 million, or 31.5% of total revenues for the quarter ended March 31, 2004.

During the first quarter of 2005, total revenues increased 8% to $138.4 million, compared to $128.2 million for the quarter ended March 31, 2004. Excluding centers in Georgia from the first quarter of 2004, total revenues increased 12.4%. The quarter-over-quarter growth rate in total revenues for payday cash advance centers at least two years old as of March 31, 2005 was 2.0% (excluding centers in Georgia). The increase in the number and size of individual income tax refunds received during the 2005 tax filing season and the acceleration in timing of those refunds had a negative impact on revenue growth rate and had a favorable impact on the Company's loss rate on payday cash advances. The provision for doubtful accounts and agency bank losses as a percent of total revenues was 7.3% for the quarter ended March 31, 2005, compared to 8.6% for the same period in 2004.

For the quarter ended March 31, 2005, the total number of cash advances processed increased by approximately 0.2 million, from approximately 2.4 million (excluding centers in Georgia) during the first quarter of 2004 to approximately 2.6 million during the first quarter of 2005.

The Company opened 22 new payday cash advance centers during the first quarter of 2005, compared to 118 during the same period in 2004. The Company expects to open a total of approximately 400 centers in calendar year 2005. At March 31, 2005, the Company had expanded its national operating network to a total of 2,424 payday cash advance centers in 34 states.

Advance America's Chief Executive Officer Billy Webster commented on the results, "We continue to be pleased with the steady operating performance of our Company during the first quarter of 2005. Despite challenges on the regulatory front, we were able to maintain our focus on delivering solid financial performance for our stockholders."

As the Company previously announced, the Federal Deposit Insurance Corporation (FDIC) recently issued revised Payday Lending Guidance to FDIC- supervised institutions that offer payday loans, including the lending banks for which Advance America acts as a processing, marketing and servicing agent. Each of these lending banks has submitted a plan for implementation of the revised Guidance. At the time of this release, none of the lending banks has received FDIC approval of its plans. As a result, the Company cannot yet determine the extent to which the revised Guidance would financially or otherwise affect the agency business model, which represented approximately 24% of Advance America's first quarter total revenues in 2005 and is used in approximately 22% of the Company's centers. The deadline for the lending banks to conform to the new Guidance has been extended until June 1, 2005. The Company will continue to cooperate with the lending banks to implement whatever policies and procedures the lending banks decide are appropriate and necessary to comply with the new FDIC Guidance and that the FDIC accepts.

In addition, Advance America's Board of Directors declared on May 3, 2005 a regular quarterly dividend of $0.09 per share. The dividend will be payable on June 10, 2005, to stockholders of record as of May 31, 2005.

The Company's Board of Directors also approved a plan authorizing the repurchase of up to $50 Million of the Company's currently outstanding common stock. Commenting on the Board's authorization, Mr. Webster said, "We remain optimistic about our business models and the long term growth prospects of our Company. The current uncertainty following the issuance of the revised FDIC guidelines has provided us with an opportunity to make an investment for our stockholders by selectively purchasing shares of our stock at what we believe are favorable prices. The Board of Directors believes that both the declaration of a dividend and the authorization of a share repurchase program are consistent with our desire to provide a favorable return to our stockholders without inhibiting the Company's growth strategy going forward."

The Company will discuss these results during a conference call on Thursday, May 5 at 9:00 a.m. (EDT). To listen to this call, please dial the conference telephone number (800) 946-0783. 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: 5411648) until the close of business on May 12, 2005.

About Advance America

Founded in 1997, Advance America, Cash Advance Centers, Inc. is the country's leading payday cash advance services provider with over 2,400 centers in 34 states. Operating under the brand names Advance America and National Cash Advance, 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 the payday cash advance services 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, the 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. These factors include: For example, the effect the revised FDIC Payday Lending Guidance may have on the lending banks and the agency business model; federal and state governmental regulation of payday cash advance services, short-term consumer lending and related financial services businesses; current and future litigation and regulatory proceedings against us, including but not limited to those against us in Florida, Georgia and North Carolina; the possibility that we may have to permanently cease our operations in Georgia and North Carolina; the accuracy of our estimates of payday cash advance losses; our lack of product and business diversification; our relationships with the lending banks and with the banks party to our revolving credit facility; theft and employee errors; the availability of adequate financing, suitable payday cash advance centers and experienced management employees to implement our growth strategy; the fragmentation of the payday cash advance services industry and competition from various other sources, such as other payday cash advance providers, small loan providers, short-term consumer lenders, banks, savings and loans and other similar financial services entities, as well as retail businesses that offer consumer loans or other products or services similar to those offered by us; and customer demand and response to services offered at our payday cash advance centers. For a more detailed discussion of some of these factors, please refer to the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2004, a copy of which is available from the SEC, upon request from us, or by going to our website: www.advanceamericacash.com.

Vision

As guidance for daily business, all Advance America employees follow the Company Creed:

Respect Your Customers
Treat them with dignity and courtesy at all times.
Respect Your Associates
Treat them as you would like to be treated.
Respect Yourself
Work hard and use good, ethical judgment in everything you do.
Respect the Law
It is there to protect us and our Customers.

As founding members of the Community Financial Services Association of America (CFSA), Advance America is committed to responsible industry practices and customer satisfaction. CFSA was formed in 1999 to promote laws and regulations that balance the interests of the payday advance industry with those of consumers, as well as support and encourage responsible industry practices.

Products

Advance America provides a reliable option for consumer's immediate financial needs. In a few quick and easy steps we can help customers receive $100 or more, on the spot, providing a viable alternative to bounced check fees, late fees and long-term credit card interest.

Payday cash advances are small-denomination, unsecured advances that are typically due on the customer's next payday. Our customers are hard-working middle Americans who sometimes need extra money. We focus exclusively on payday cash advance services and do not provide check cashing, pawn lending, title lending or wire transfer or similar services. We believe our sole focus on payday cash advance services is a competitive strength that has allowed us to better reach and service our primary market of middle-income customers.

Contact

call 1-866-640-4CASH (1-866-640-4227)

Diversity

Advance America is an Equal Opportunity Employer.