Exhibit 99.1
World Acceptance Corporation Reports Record Third Quarter Results
Adds 23 Offices by Acquisition During the Quarter
GREENVILLE, S.C., Jan. 20 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported higher revenue, net income and loans
for its third fiscal quarter ended December 31, 2003. Additionally, it
reported the purchase of 23 new offices located in Georgia.
"Strong loan demand contributed to our record revenues and net income in
the third fiscal quarter," stated Doug Jones, President and CEO. "Our third
quarter is traditionally our busiest for loan demand and we added
$51.0 million in gross loans during the quarter. Of this amount, an
acquisition completed in early December added $6.5 million to gross loans
outstanding. Additionally, we added $7.6 million more in early January with
the closing of two more acquisitions."
Net income for the third quarter rose 37.3% to $4.6 million, or $0.23 per
diluted share, compared to $3.4 million, or $0.19 per diluted share, for the
same quarter of the prior year. Total revenues for the quarter increased 13.5%
to $44.3 million from $39.0 million for the prior year quarter.
Gross loans outstanding increased to a record $334.5 million at
December 31, 2003, an 11.2% increase over the $300.8 million in balances
outstanding at December 31, 2002, and a 25.4% increase since the beginning of
the fiscal year. During the quarter, the Company loaned a record $270 million
in 372,000 separate loan transactions.
Several key return ratios remained very high during the quarter: return on
average assets (annualized) amounted to 7.3% and the annualized return on
average equity was 13.5%. Total general and administrative expenses as a
percent of total revenues continued its year over year improvement to 56.6%
during the most recent quarter compared with 57.5% in the same quarter last
year.
Net earnings continued to benefit from the low interest rate environment
during the quarter, as interest expense decreased by 15.2% while average total
debt outstanding decreased by 10.9% over the two quarterly periods. Provision
for loan losses rose 8.5% to $11.1 million in the third quarter of fiscal 2004
compared with $10.2 million in the same quarter last year.
Nine-Month Results
For the first nine months of the fiscal year, net income was up 29.0% to
$16.3 million, or $0.85 per diluted share, compared with $12.6 million, or
$0.69 per diluted share, for the prior year nine-month period. Total revenues
for the first nine months of fiscal 2004 were $126.2 million, a 14.8% increase
over the $110.0 million during the corresponding period of the previous year.
During the first nine months of the fiscal year, the Company opened or
acquired 48 offices and closed two non-performing offices, leaving a total of
516 offices at December 31, 2003.
About World Acceptance
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 516 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.
Third 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
1-877-691-0879. A simulcast of the conference call is also available on the
Internet
at http://www.firstcallevents.com/service/ajwz396835455gf12.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
most recent 10-K and 10-Q 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 Nine Months Ended
Dec. 31, Dec. 31,
------------------ ------------------
2003 2002 2003 2002
-------- -------- -------- --------
Interest & fees $38,075 $33,442 $109,030 $95,779
Insurance & other 6,210 5,593 17,195 14,220
-------- -------- -------- --------
Total revenues 44,285 39,035 126,225 109,999
Expenses:
Provision for loan losses 11,077 10,209 28,334 24,176
General and administrative
expenses
Personnel 14,699 13,364 44,560 40,075
Occupancy & equipment 2,579 2,215 7,323 6,567
Data processing 470 447 1,393 1,316
Advertising 3,420 2,850 5,874 4,865
Intangible amortization 570 531 1,692 1,617
Other 3,336 3,045 8,836 8,403
-------- -------- -------- --------
25,074 22,452 69,678 62,843
Interest expense 997 1,176 2,916 3,377
-------- -------- -------- --------
Total expenses 37,148 33,837 100,928 90,396
-------- -------- -------- --------
Income before taxes 7,137 5,198 25,297 19,603
Income taxes 2,533 1,846 8,980 6,959
-------- -------- -------- --------
Net income $4,604 $3,352 $16,317 $12,644
======== ======== ======== ========
Diluted earnings per share $0.23 $0.19 $0.85 $0.69
======== ======== ======== ========
Diluted weighted average
shares outstanding 19,693 17,937 19,205 18,305
======== ======== ======== ========
Consolidated Balance Sheets
(unaudited and in thousands)
Dec. 31, Mar. 31, Dec. 31,
2003 2003 2002
-------- -------- --------
ASSETS
Cash $2,691 $4,022 $3,704
Gross loans receivable 334,485 266,753 300,751
Less: Unearned interest & fees (83,634) (63,578) (74,136)
Allowance for loan losses (19,902) (15,098) (17,817)
-------- -------- --------
Loans receivable, net 230,949 188,077 208,798
Property and equipment, net 9,088 8,298 7,592
Intangible assets 13,906 14,599 15,097
Other assets 13,276 13,321 12,609
-------- -------- --------
$269,910 $228,317 $247,800
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 124,632 102,532 136,132
Accounts payable and accrued
expenses 4,620 9,744 6,895
-------- -------- --------
Total liabilities 129,252 112,276 143,027
Shareholders' equity 140,658 116,041 104,773
-------- -------- --------
$269,910 $228,317 $247,800
======== ======== ========
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended Nine Months Ended
Dec. 31, Dec. 31,
------------------ ------------------
2003 2002 2003 2002
-------- -------- -------- --------
Expenses as a percent of total
revenues:
Provision for loan losses 25.0% 26.2% 22.4% 22.0%
General and administrative
expenses 56.6% 57.5% 55.2% 57.1%
Interest expense 2.3% 3.0% 2.3% 3.1%
Average gross loans
receivable $301,080 $270,482 $285,953 $252,867
Average loans receivable $226,995 $203,828 $216,251 $191,320
Loan volume $269,913 $232,902 $687,664 $600,755
Net charge-offs as percent of
average loans 15.7% 15.3% 15.0% 14.5%
Return on average assets 7.3% 5.8% 9.0% 7.7%
Return on average equity 13.5% 12.9% 17.0% 16.9%
Offices opened (closed) during
the period, net 30 9 46 29
Offices open at end of period 516 470 516 470
SOURCE World Acceptance Corporation
-0- 01/20/2004
/CONTACT: Sandy McLean, Chief Financial Officer of World Acceptance
Corporation, +1-864-298-9800/
/Audio: http://www.firstcallevents.com/service/ajwz396835455gf12.html/
(WRLD)
CO: World Acceptance Corporation
ST: South Carolina
IN: FIN
SU: ERN CCA MAV