EXHIBIT 99-1
 | NEWS RELEASE |
| Contact: Kelly M. Malson |
Chief Financial Officer
(864) 298-9800
WORLD ACCEPTANCE CORPORATION
REPORTS RECORD FIRST QUARTER RESULTS
GREENVILLE, S.C. (July 29, 2008) – World Acceptance Corporation (NASDAQ: WRLD) today reported record revenues and net income for its first fiscal quarter ended June 30, 2008.
Net income for the first quarter rose 11.1% to $12.1 million compared with $10.9 million for the same quarter of the prior year. Earnings per share rose to $0.73 per share for the quarter, a 19.7% increase over the $0.61 per share for the prior year quarter.
Total revenues for the quarter increased 15.8% to $88.4 million from $76.4 million for the prior year first quarter. Gross loans outstanding were $632.7 million at June 30, 2008, a 16.1% increase over the $545.0 million in balances outstanding at June 30, 2007, and a 5.5% increase over the $599.5 million at the beginning of the fiscal year.
Sandy McLean, Chairman and CEO, stated, “Our record quarterly results were tempered to some degree by a reduction in loan demand from both new borrowers and existing customers. Loan volume for the first quarter of fiscal 2009 increased 11.1% compared to the prior year first quarter. This compares to a 21.3% year over year growth in loan volume in fiscal 2008. We believe that this reduction in demand may be attributed to the economic stimulus tax rebates distributed during the period which totaled over $110 billion, and a general hesitancy to borrow money in an uncertain economic environment. The final distribution of stimulus checks occurred during the first week of July.”
Net charge offs as a percent of average net loans on an annualized basis increased to 14.5% during the quarter from 12.7% during the first quarter of the prior year. “This quarter over quarter increase in charge offs is consistent with the Company’s expectations. While slightly higher than recent historical averages for the quarter, it remains within acceptable ranges given today’s higher energy costs and softening economy,” stated McLean. The Company’s management continues to closely monitor the loan portfolio in light of these changing conditions.
Total general and administrative expenses as a percent of total revenues remained consistent between the two quarterly periods at 55.2% for the three months ended June 30, 2008, and for the three months ended June 30, 2007.
Key return ratios for the first quarter included a 9.7% return on average assets (annualized) and a 19.9% (annualized) return on average equity.
During the quarter, the Company opened 28 new offices, acquired 7 offices, and closed 1 office for a total of 872, an 11.5% increase from 782 offices open at June 30, 2007.
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WRLD Reports Record First Quarter Results
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July 29, 2008
About World Acceptance Corporation
World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 872 offices in eleven states and Mexico. It is also the parent company of ParaData Financial Systems, a provider of computer software solutions for the consumer finance industry.
First Quarter Conference Call
The senior management of World Acceptance Corporation will be discussing these results in its quarterly conference call to be held at 10:00 A.M. Eastern today. Interested parties may participate in this call by dialing 1-877-795-3613. A simulcast of the conference call is also available on the Internet at www.streetevents.com. 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 (particularly 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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July 29, 2008
World Acceptance Corporation
Condensed Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended | |||||||
June 30, | |||||||
2008 | 2007 | ||||||
| Interest & fees | $ | 76,349 | $ | 65,389 | |||
| Insurance & other | 12,072 | 11,000 | |||||
| Total revenues | 88,421 | 76,389 | |||||
| Expenses: | |||||||
| Provision for loan losses | 17,857 | 14,217 | |||||
| General and administrative expenses | |||||||
| Personnel | 33,316 | 28,856 | |||||
| Occupancy & equipment | 6,054 | 4,933 | |||||
| Data processing | 589 | 550 | |||||
| Advertising | 2,710 | 2,451 | |||||
| Intangible amortization | 600 | 615 | |||||
| Other | 5,521 | 4,785 | |||||
48,790 | 42,190 | ||||||
| Interest expense | 2,480 | 2,336 | |||||
| Total expenses | 69,127 | 58,743 | |||||
| Income before taxes | 19,294 | 17,646 | |||||
| Income taxes | 7,242 | 6,795 | |||||
| Net income | $ | 12,052 | $ | 10,851 | |||
| Diluted earnings per share | $ | 0.73 | $ | 0.61 | |||
| Weighted average shares outstanding (diluted) | 16,573 | 17,916 | |||||
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
June 30, | March 31, | June 30, | ||||||||
2008 | 2008 | 2007 | ||||||||
ASSETS | ||||||||||
| Cash | $ | 8,099 | $ | 7,590 | $ | 7,387 | ||||
| Gross loans receivable | 632,715 | 599,509 | 544,964 | |||||||
| Less: Unearned interest & fees | (165,209 | ) | (154,418 | ) | (141,715 | ) | ||||
| Allowance for loan losses | (35,288 | ) | (33,526 | ) | (29,682 | ) | ||||
| Loans receivable, net | 432,218 | 411,565 | 373,567 | |||||||
| Property and equipment, net | 20,100 | 18,654 | 15,577 | |||||||
| Deferred tax benefit | 18,047 | 22,133 | 19,310 | |||||||
| Goodwill | 5,379 | 5,353 | 5,338 | |||||||
| Intangibles | 10,275 | 9,997 | 11,488 | |||||||
| Other assets | 10,538 | 10,818 | 10,679 | |||||||
$ | 504,656 | $ | 486,110 | $ | 443,346 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| Liabilities: | ||||||||||
| Notes payable | 227,100 | 214,900 | 192,950 | |||||||
| Income tax payable | 11,662 | 18,039 | 9,083 | |||||||
| Accounts payable and accrued expenses | 15,960 | 18,866 | 13,600 | |||||||
| Total liabilities | 254,722 | 251,805 | 215,633 | |||||||
| Shareholders' equity | 249,934 | 234,305 | 227,713 | |||||||
$ | 504,656 | $ | 486,110 | $ | 443,346 | |||||
MORE
WRLD Reports Record First Quarter Results
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July 29, 2008
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended | |||||||
June 30, | |||||||
2008 | 2007 | ||||||
| Expenses as a percent of total revenues: | |||||||
| Provision for loan losses | 20.2 | % | 18.6 | % | |||
| General and administrative expenses | 55.2 | % | 55.2 | % | |||
| Interest expense | 2.8 | % | 3.1 | % | |||
| Average gross loans receivable | $ | 614,196 | $ | 525,881 | |||
| Average loans receivable | $ | 454,312 | $ | 390,549 | |||
| Loan volume | $ | 460,650 | $ | 414,488 | |||
| Net charge-offs as percent of average loans | 14.5 | % | 12.7 | % | |||
| Return on average assets | 9.7 | % | 10.3 | % | |||
| Return on average equity | 19.9 | % | 19.7 | % | |||
| Offices opened (closed) during the period, net | 34 | 50 | |||||
| Offices open at end of period | 872 | 782 | |||||
END