Exhibit 99.1
World Acceptance Corporation Reports Record Fourth Quarter
GREENVILLE, S.C., April 27 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported strong growth in revenue and record
net income for its fourth fiscal quarter and year ended March 31, 2004.
"Revenues for the fourth quarter rose 15.9% to $52.9 million due to
increased loan volume, higher fees generated from tax preparation services and
more offices in operations," stated Douglas R. Jones, President and CEO of
World Acceptance Corporation. "Our record net income of $12.4 million, or
$0.63 per diluted share, in the fourth quarter benefited from our revenue
growth, combined with lower interest rates and lower net charge-offs as a
percentage of average loans. Our fourth quarter is the most profitable for
the Company because customer balances are typically at their highest level
following the Christmas season, customer repayments increase due to factors
such as income tax refunds, and fees generated from our tax preparation
services are at seasonal high during the key tax filing months of January
through March."
Net income for the fourth quarter rose 21.8% to $12.4 million, or $0.63
per diluted share, compared with $10.2 million, or $0.57 per diluted share,
for the same quarter of the prior year. Total revenues for the quarter
increased 15.9% to $52.9 million from $45.7 million for the prior year
quarter.
Gross loans outstanding amounted to $310.1 million at March 31, 2004, a
16.3% increase over the $266.8 million in balances outstanding at March 31,
2003.
Several key return ratios remained very high during the quarter. The
Company's return on average assets (annualized) was 18.7% and the annualized
return on average equity was 33.5%. Total general and administrative expenses
as a percent of total revenues increased slightly to 50.3% during the most
recent quarter compared to 50.2% during the prior year fourth quarter.
"We continue to work on improving loan quality," continued Mr. Jones. "We
had solid progress in this area as evidenced by the decrease in our ratio of
net charge-offs as a percentage of average net loans to 13.6% in the current
quarter from 14.4% during the fourth quarter ended March 31, 2003."
Twelve-Month Results
For the fiscal year, net income was $28.8 million, or $1.49 per diluted
share, representing a 25.8% increase over the $22.9 million, or $1.25 per
diluted share, for the prior fiscal year. Total revenues for fiscal 2004 were
$179.2 million, a 15.1% increase over the $155.7 million during the previous
year.
During the 2004 fiscal year, the Company opened or acquired 60 offices and
closed four non-performing offices, leaving a total of 526 offices at March
31, 2004.
About World Acceptance
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 526 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
1-877-375-2162. A simulcast of the conference call is also available on the
Internet at www.firstcallevents.com/service/ajwz403812925gf12.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 Years Ended
March 31, March 31,
2004 2003 2004 2003
Interest & fees $42,470 37,476 151,499 133,256
Insurance & other 10,458 8,195 27,653 22,415
Total revenues 52,928 45,671 179,152 155,671
Expenses:
Provision for loan losses 5,147 5,393 33,481 29,570
General and administrative
expenses
Personnel 18,137 15,463 62,696 55,538
Occupancy & equipment 2,860 2,460 10,183 9,027
Data processing 563 450 1,956 1,766
Advertising 1,219 890 7,093 5,755
Intangible amortization 573 556 2,265 2,172
Other 3,284 3,096 12,120 11,499
26,636 22,915 96,313 85,757
Interest expense 1,026 1,116 3,943 4,493
Total expenses 32,809 29,424 133,737 119,820
Income before taxes 20,119 16,247 45,415 35,851
Income taxes 7,670 6,028 16,650 12,987
Net income $12,449 10,219 28,765 22,864
Diluted earnings per share $0.63 0.57 1.49 1.25
Diluted weighted average shares
outstanding 19,773 18,047 19,347 18,305
Consolidated Balance Sheets
(unaudited and in thousands)
March 31, March 31,
2004 2003
ASSETS
Cash $4,314 4,022
Gross loans receivable 310,131 266,753
Less: Unearned interest & fees (73,603) (63,578)
Allowance for loan losses (17,261) (15,098)
Loans receivable, net 219,267 188,077
Property and equipment, net 9,274 8,298
Intangible assets 15,514 14,599
Other assets 13,600 13,321
$261,969 228,317
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 95,032 102,532
Accounts payable and accrued
expenses 10,357 9,744
Total liabilities 105,389 112,276
Shareholders' equity 156,580 116,041
$261,969 228,317
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended Years Ended
March 31, March 31,
2004 2003 2004 2003
Expenses as a percent of total
revenues:
Provision for loan losses 9.7% 11.8% 18.7% 19.0%
General and administrative
expenses 50.3% 50.2% 53.8% 55.1%
Interest expense 1.9% 2.4% 2.2% 2.9%
Average gross loans receivable $318,094 $280,203 $292,110 $257,595
Average loans receivable $241,116 $212,584 $221,240 $195,148
Loan volume $190,385 $163,056 $878,049 $763,810
Net charge-offs as percent of
average loans 13.6% 14.4% 14.7% 14.6%
Return on average assets 18.7% 17.2% 11.7% 10.4%
Return on average equity 33.5% 37.0% 21.5% 22.2%
Offices opened (closed) during
the period, net 10 0 56 29
Offices open at end of period 526 470 526 470
SOURCE World Acceptance Corporation
-0- 04/27/2004
/CONTACT: Sandy McLean, Chief Financial Officer of World Acceptance
Corporation, +1-864-298-9800/
/Web site: www.firstcallevents.com/service/ajwz403812925gf12.html /
(WRLD)
CO: World Acceptance Corporation
ST: South Carolina
IN: FIN
SU: ERN