Exhibit 99.1
| NEWS RELEASE |
For Immediate Release
| Contact: | Sandy McLean |
Chief Financial Officer
WORLD ACCEPTANCE CORPORATION
REPORTS RECORD FOURTH QUARTER
GREENVILLE, S.C. (April 22, 2003) – World Acceptance Corporation (NASDAQ/NM: WRLD) today reported strong growth in revenue and record net income during its fourth fiscal quarter and year ended March 31, 2003.
“The fourth fiscal quarter is the most profitable for the Company because customer balances are typically at their highest level following the Christmas season and customer repayments increase due to factors such as income tax refunds. In addition, profitability in this quarter is enhanced by the fees generated from the Company’s tax preparation services to its customers during the key tax filing months of January through March,” stated Charles D. Walters, Chairman and CEO of World Acceptance Corporation. “Revenues for the quarter rose to $45.7 million, up 14.0% compared with the fourth quarter of last year. Our revenue growth, combined with lower interest rates and lower net charge-offs as a percentage of average loans, contributed to our record net income of $10.2 million, or $0.57 per diluted share, in the fourth quarter.”
Net earnings continued to benefit from the recent reduction in interest rates as interest expense increased by only 6.2% while average total debt outstanding increased by 19.9% over the two quarterly periods. Net income for the fourth quarter rose 13.9% to $10.2 million, or $0.57 per diluted share, compared to $9.0 million, or $0.47 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 14.0% to $45.7 million from $40.1 million for the prior year quarter.
Gross loans outstanding amounted to $266.8 million at March 31, 2003, a 17.9% increase over the $226.3 million in balances outstanding at March 31, 2002.
Several key return ratios remained very high during the quarter. The Company’s return on average assets (annualized) was 17.2% and the annualized return on average equity was 37.0%. Total general and administrative expenses as a percent of total revenues increased slightly to 50.2% during the most recent quarter compared to 49.7% during the prior year fourth quarter.
“We continue to work on improving loan quality,” continued Mr. Walters. “Our progress in this area was evident from the decrease in our ratio of net charge-offs as a percentage of average net loans to 14.6% in the current quarter compared to 15.4% during the fourth quarter ended March 31, 2002.”
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WRLD Announces Fourth Quarter Results
Page 2
April 22, 2003
Twelve-Month Results
For the fiscal year, net income was $22.9 million, or $1.25 per diluted share, representing an 18.2% increase over the $19.3 million, or $1.00 per diluted share, for the prior fiscal year. Total revenues for fiscal 2003 were $155.7 million, a 14.0% increase over the $136.6 million during the previous year.
During the 2003 fiscal year, the Company opened or acquired 33 offices and closed four non-performing offices, leaving a total of 470 offices at March 31, 2003.
About World Acceptance
World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 470 offices in eleven states. It is also the parent company of ParaData Financial Systems, a provider of computer software solutions for the consumer finance industry.
Fourth Quarter Conference Call
The senior management of World Acceptance Corporation will be discussing these results in its quarterly conference call to be held at 2:00 P.M. Eastern time today. Interested parties may participate in this call by dialing 1-800-473-6123. A simulcast of the conference call is also available on the Internet atwww.firstcallevents.com/service/ajwz379333091gf12.html. The call will be available for replay on the Internet for approximately 30 days.
This press release may contain various “forward-looking statements” within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended, that represent the Company’s expectations or beliefs concerning future events. Such forward-looking statements are about matters that are inherently subject to risks and uncertainties. Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include changes in the timing and amount of revenues that may be recognized by the Company, changes in current revenue and expense trends (including trends affecting charge-offs), changes in the Company’s markets and changes in the economy (particular in the markets served by the Company). Such factors are discussed in greater detail in the Company’s filings with the Securities and Exchange Commission. World Acceptance Corporation is not responsible for updating the information contained in this press release beyond the publication date, or for changes made to this document by wire services or Internet services.
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WRLD Announces Fourth Quarter Results
Page 3
April 22, 2003
World Acceptance Corporation
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended | Years Ended | ||||||||
2003 | 2002 | 2003 | 2002 | ||||||
Interest & fees | $ | 37,477 | 32,361 | 133,256 | 117,193 | ||||
Insurance & other |
| 8,195 | 7,711 | 22,415 | 19,362 | ||||
Total revenues |
| 45,672 | 40,072 | 155,671 | 136,555 | ||||
Expenses: | |||||||||
Provision for loan losses |
| 5,393 | 5,010 | 29,570 | 25,688 | ||||
General and administrative expenses | |||||||||
Personnel |
| 15,463 | 13,086 | 55,538 | 48,454 | ||||
Occupancy & equipment |
| 2,460 | 2,285 | 9,027 | 8,225 | ||||
Data processing |
| 450 | 397 | 1,766 | 1,659 | ||||
Advertising |
| 890 | 898 | 5,755 | 4,929 | ||||
Intangible amortization |
| 556 | 536 | 2,172 | 1,986 | ||||
Other |
| 3,096 | 2,708 | 11,499 | 10,165 | ||||
| 22,915 | 19,910 | 85,757 | 75,418 | |||||
Interest expense |
| 1,117 | 1,051 | 4,493 | 5,415 | ||||
Total expenses |
| 29,425 | 25,971 | 119,820 | 106,521 | ||||
Income before taxes |
| 16,247 | 14,101 | 35,851 | 30,034 | ||||
Income taxes |
| 6,028 | 5,130 | 12,987 | 10,695 | ||||
Net income | $ | 10,219 | 8,971 | 22,864 | 19,339 | ||||
Diluted earnings per share | $ | 0.57 | 0.47 | 1.25 | 1.00 | ||||
Diluted weighted average shares outstanding |
| 18,047 | 19,230 | 18,305 | 19,340 | ||||
Consolidated Balance Sheets
(unaudited and in thousands)
March 31, | March 31, | ||||||
ASSETS | |||||||
Cash | $ | 4,022 |
| 3,222 |
| ||
Gross loans receivable |
| 266,753 |
| 226,307 |
| ||
Less: Unearned interest & fees |
| (63,578 | ) | (53,670 | ) | ||
Allowance for loan losses |
| (15,098 | ) | (12,926 | ) | ||
Loans receivable, net |
| 188,077 |
| 159,711 |
| ||
Property and equipment, net |
| 8,298 |
| 6,921 |
| ||
Intangible assets |
| 14,599 |
| 13,967 |
| ||
Other assets |
| 13,321 |
| 11,426 |
| ||
$ | 228,317 |
| 195,247 |
| |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Liabilities: | |||||||
Notes payable |
| 102,532 |
| 83,382 |
| ||
Accounts payable and accrued expenses |
| 9,744 |
| 9,432 |
| ||
Total liabilities |
| 112,276 |
| 92,814 |
| ||
Shareholders' equity |
| 116,041 |
| 102,433 |
| ||
$ | 228,317 |
| 195,247 |
| |||
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WRLD Announces Fourth Quarter Results
Page 4
April 22, 2003
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended | Years Ended | |||||||||||||||
2003 | 2002 | 2003 | 2002 | |||||||||||||
Expenses as a percent of total revenues: | ||||||||||||||||
Provision for loan losses |
| 11.8 | % |
| 12.5 | % |
| 19.0 | % |
| 18.8 | % | ||||
General and administrative expenses |
| 50.2 | % |
| 49.7 | % |
| 55.1 | % |
| 55.2 | % | ||||
Interest expense |
| 2.4 | % |
| 2.6 | % |
| 2.9 | % |
| 4.0 | % | ||||
Average gross loans receivable | $ | 280,203 |
| $ | 239,519 |
| $ | 257,595 |
| $ | 228,400 |
| ||||
Average loans receivable | $ | 210,728 |
| $ | 180,185 |
| $ | 193,898 |
| $ | 173,192 |
| ||||
Loan volume | $ | 163,056 |
| $ | 137,519 |
| $ | 763,810 |
| $ | 659,751 |
| ||||
Net charge-offs as percent of average loans |
| 14.6 | % |
| 15.4 | % |
| 14.7 | % |
| 14.8 | % | ||||
Return on average assets |
| 17.2 | % |
| 17.5 | % |
| 10.4 | % |
| 9.9 | % | ||||
Return on average equity |
| 37.0 | % |
| 36.7 | % |
| 22.2 | % |
| 21.2 | % | ||||
Offices opened (closed) during the period, net |
| 0 |
|
| 0 |
|
| 29 |
|
| 21 |
| ||||
Offices open at end of period |
| 470 |
|
| 441 |
|
| 470 |
|
| 441 |
| ||||
END