Exhibit 99.1
World Acceptance Corporation Reports Record First Quarter Results
GREENVILLE, S.C., July 17 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported record revenue, net income and loans
for its first fiscal quarter ended June 30, 2003.
Net income for the first quarter rose 20.2% to $5.6 million, or $.30 per
diluted share, compared to $4.7 million, or $.25 per diluted share, for the same
quarter of the prior year. Total revenues for the quarter increased 15.6% to
$40.3 million from $34.8 million for the prior year quarter.
Gross loans outstanding increased to $279.8 million at June 30, 2003, a
13.2% increase over the $247.2 million in balances outstanding at June 30, 2002,
and a 4.9% increase since the beginning of the fiscal year.
"World Acceptance's record first quarter results were attributable to the
growth in our loan portfolio, higher revenues from insurance and other products,
improved margins and reduced general and administrative expenses as a percent of
revenues," stated Charles D. Walters, Chairman and CEO. "The low interest rate
environment continues to have a positive effect on our cost of funds and our
level of loan losses have remained level with the prior year."
Interest expense decreased by 4.0% since the first quarter of last year
while average total debt outstanding increased 7.0% in the same time period. Net
charge-offs as a percent of average net loans were 13.5% on an annualized basis
for the quarters ended June 30, 2003 and 2002. Total general and administrative
expenses as a percent of total revenues continued its year over year improvement
to 56.2% during the most recent quarter compared to 58.0% during the prior year
quarter.
Operating income (revenues less the provision for loan losses and general
and administrative expenses) increased 17.2% to $9.7 million during the most
recent quarter from $8.3 million in the prior year quarter.
Return on average assets (annualized) increased to 9.7% in the first
quarter compared with 9.2% in the same quarter last year. Annualized return on
average equity remained high at 18.7%, the same as the first quarter of the
prior year.
During the first three months of the fiscal year, the Company opened or
acquired 3 offices and closed one non-performing office, leaving a total of 472
offices at June 30, 2003. World Acceptance had 4% more offices in operation at
the end of the first quarter of fiscal 2004 than in the same quarter of the
prior year.
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 472 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.
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
Condensed Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended
June 30,
2003 2002
Interest & fees $34,405 $29,996
Insurance & other 5,858 4,823
Total revenues 40,263 34,819
Expenses:
Provision for loan losses 7,929 6,363
General and administrative expenses
Personnel 15,350 13,643
Occupancy & equipment 2,302 2,100
Data processing 477 430
Advertising 1,283 994
Intangible amortization 555 550
Other 2,676 2,469
22,643 20,186
Interest expense 991 1,032
Total expenses 31,563 27,581
Income before taxes 8,700 7,238
Income taxes 3,089 2,570
Net income $5,611 $4,668
Diluted earnings per share $0.30 $0.25
Weighted average shares outstanding (diluted) 18,760 18,911
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
June 30, March 31, June 30,
2003 2003 2002
ASSETS
Cash $4,363 $4,022 $4,723
Gross loans receivable 279,805 266,753 247,203
Less: Unearned interest & fees (68,117) (63,578) (59,803)
Allowance for loan losses (16,248) (15,098) (14,225)
Loans receivable, net 195,440 188,077 173,175
Property and equipment, net 8,348 8,298 7,512
Intangible assets 14,442 14,599 14,762
Other assets 12,767 13,321 11,886
$235,360 $228,317 $212,058
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 102,732 102,532 105,132
Income tax payable 2,405 2,047 2,481
Accounts payable and accrued expenses 6,563 7,697 6,666
Total liabilities 111,700 112,276 114,279
Shareholders' equity 123,660 116,041 97,779
$235,360 $228,317 $212,058
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended
June 30,
2003 2002
Expenses as a percent of total revenues:
Provision for loan losses 19.7% 18.3%
General and administrative expenses 56.2% 58.0%
Interest expense 2.5% 3.0%
Average gross loans receivable $272,048 $234,905
Average loans receivable $204,754 $176,992
Loan volume $208,740 $182,760
Net charge-offs as percent of average loans 13.5% 13.5%
Return on average assets 9.7% 9.2%
Return on average equity 18.7% 18.7%
Offices opened (closed) during the period, net 2 13
Offices open at end of period 472 454
SOURCE World Acceptance Corporation
-0- 07/17/2003
/CONTACT: Sandy McLean, Chief Financial Officer of World Acceptance
Corporation, +1-864-298-9800/
/First Call Analyst: /
/FCMN Contact: /
(WRLD)
CO: World Acceptance Corporation
ST: South Carolina
IN: FIN
SU: ERN