EXHIBIT 99.1
World Acceptance Corporation Reports Record
Second Quarter Results
GREENVILLE, S.C., Oct. 22 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported record revenue, net income and loans
for its second fiscal quarter ended September 30, 2003.
Net income for the second quarter rose 32.0% to $6.1 million, or $0.32
per diluted share, compared with $4.6 million, or $0.26 per diluted share, for
the same quarter of the prior year. Total revenues for the quarter increased
15.3% to $41.7 million from $36.1 million for the prior year quarter.
Gross loans outstanding increased to $283.5 million at September 30,
2003, an 11.1% increase over the $255.2 million in balances outstanding at
September 30, 2002, and a 6.3% increase since the beginning of the fiscal
year.
"World Acceptance's earnings remained strong in the second quarter driven
by higher loan volume, higher revenue from insurance and other products,
improved margins and increased leverage of our general and administrative
expenses," stated Doug Jones, President and CEO. "Our excellent earnings
progress was offset somewhat by a higher provision for loan losses this
quarter that rose 22.7% to $9.3 million compared with the second quarter of
last year. We believe the higher provision reflects the continued softness in
the economy but believe our provision for loan losses provides adequate
reserves based on continuing review of our loan portfolio."
Several key return ratios remained very high during the quarter, as the
return on average assets (annualized) amounted to 10.4% and the annualized
return on average equity was 19.0%. This compares with an 8.6% return on
assets and a 18.4% return on equity for the quarter ended September 30, 2002.
Net earnings continued to benefit from reduced interest rates as interest
expense decreased by 20.6% over the two quarterly periods, with an approximate
decrease of 7.1% in average total debt outstanding during the most recent
quarter. Net charge-offs as a percentage of average loans outstanding amounted
to 16.0% during the most recent quarter compared to 14.7% during the three-
month period ending September 30, 2002.
Six-Month Results
For the first six months of the fiscal year, net income was $11.7 million,
or $0.62 per diluted share, representing a 26.6% increase over the $9.3
million, or $0.50 per diluted share, for the prior year six-month period.
Total revenues for the first six months of fiscal 2004 were $81.9 million, a
15.5% increase over the $71.0 million during the corresponding period of the
previous year.
During the first six months of the fiscal year, the Company opened or
acquired 18 offices and closed two non-performing offices, leaving a total of
486 offices at September 30, 2003.
About World Acceptance
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 486 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.
Second 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 1-888-
792-8459. A simulcast of the conference call is also available on the Internet
at http://www.firstcallevents.com/service/ajwz391201311gf12.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.
World Acceptance Corporation
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30,
2003 2002 2003 2002
Interest & fees $36,549 $32,341 $70,954 $62,337
Insurance & other 5,127 3,805 10,985 8,628
Total revenues 41,676 36,146 81,939 70,965
Expenses:
Provision for loan losses 9,328 7,605 17,257 13,968
General and administrative
expenses
Personnel 14,511 13,068 29,860 26,711
Occupancy & equipment 2,443 2,252 4,745 4,352
Data processing 446 438 922 868
Advertising 1,171 1,021 2,454 2,015
Intangible amortization 566 537 1,122 1,086
Other 2,824 2,890 5,500 5,359
21,961 20,206 44,603 40,391
Interest expense 928 1,169 1,919 2,201
Total expenses 32,217 28,980 63,779 56,560
Income before taxes 9,459 7,166 18,160 14,405
Income taxes 3,358 2,543 6,447 5,113
Net income $6,101 $4,623 $11,713 $9,292
Diluted earnings per share $0.32 $0.26 $0.62 $0.50
Diluted weighted average
shares outstanding 19,163 18,070 18,962 18,489
Consolidated Balance Sheets
(unaudited and in thousands)
Sept. 30, Mar. 31, Sept. 30,
2003 2002 2002
ASSETS
Cash $3,133 $4,022 $4,155
Gross loans receivable 283,485 266,753 255,187
Less: Unearned interest &
fees (69,228) (63,578) (62,690)
Allowance for loan losses (17,053) (15,098) (14,596)
Loans receivable, net 197,204 188,077 177,901
Property and equipment, net 8,238 8,298 7,649
Intangible assets 14,304 14,599 15,343
Other assets 12,576 13,321 12,334
$235,455 $228,317 $217,382
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 97,432 102,532 109,582
Accounts payable and
accrued expenses 5,148 9,744 5,091
Total liabilities 102,580 112,276 114,673
Shareholders' equity 132,875 116,041 102,709
$235,455 $228,317 $217,382
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended Six Months Ended
Sept. 30, Sept. 30,
2003 2002 2003 2002
Expenses as a percent of
total revenues:
Provision for loan losses 22.4% 21.0% 21.1% 19.7%
General and administrative
expenses 52.7% 55.9% 54.4% 56.9%
Interest expense 2.2% 3.2% 2.3% 3.1%
Average gross loans
receivable $282,578 $252,379 $276,957 $243,133
Average loans receivable $213,684 $191,036 $209,822 $184,340
Loan volume $209,007 $185,093 $417,751 $367,853
Net charge-offs as percent
of average loans 16.0% 14.7% 14.7% 14.1%
Return on average assets 10.4% 8.6% 10.1% 8.9%
Return on average equity 19.0% 18.4% 18.9% 18.4%
Offices opened (closed)
during the period, net 13 7 16 20
Offices open at end of period 486 461 486 461
SOURCE World Acceptance Corporation
-0- 10/22/2003
/CONTACT: Sandy McLean, Chief Financial Officer of World Acceptance
Corporation, +1-864-298-9800/
/Audio: http://www.firstcallevents.com/service/ajwz391201311gf12.html /
(WRLD)
CO: World Acceptance Corporation
ST: South Carolina
IN: FIN
SU: ERN CCA