EXHIBIT 99.1
World Acceptance Corporation Reports Record Fourth Quarter Results
GREENVILLE, S.C., April 26 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported record financial results for its
fourth fiscal quarter and fiscal year ended March 31, 2007.
"Our record results benefited from the large seasonal loan growth we
booked in the third quarter and the increased demand for our tax preparation
services in the fourth quarter," stated Sandy McLean, CEO of World Acceptance
Corporation. "Fourth quarter loan volume was up almost 20% to $316 million
compared with the fourth quarter of last year, contributing to the 16% increase
in net income to $21 million, our most profitable quarter of the year."
Fourth Quarter Results
Net income for the fourth quarter rose 16.3% to $21.0 million compared
with $18.1 million for the same quarter of the prior year. Net income per
diluted share increased 21.9% to $1.17 compared with $0.96 for the prior year
quarter. Growth in per share income for the quarter and year ended March 31,
2007, benefited from the Company's repurchase of approximately 1.2 million
shares during the year. Total revenues increased to $87.2 million, an 18.7%
increase over the $73.4 million for the quarter ended March 31, 2006.
Gross loans outstanding were $505.8 million at March 31, 2007, a 21.5%
increase over the $416.3 million at March 31, 2006. Loan volume increased 19.8%
from $263.8 million in the fourth quarter 2006 to $316.0 in the fourth quarter
2007.
Total general and administrative expenses as a percent of total revenues
were 48.2%, a decrease from the 48.6% during the fourth quarter of the prior
fiscal year. Net charge-offs as a percent of average net loans on an annualized
basis increased slightly to 11.8% during the quarter from 11.6% during the prior
year quarter.
Year-End Results
For the year ended March 31, 2007, net income rose 24.4% to $47.9 million
compared with $38.5 million in the prior fiscal year. Net income per diluted
share rose 28.7% to $2.60, compared with $2.02, for the prior year fiscal
period.
Total revenues for fiscal 2007 were $292.3 million, a 20.2% increase over
the $243.3 million during the previous year. Net charge-offs as a percent of
average net loans were 13.3% compared with 14.8% during the prior year.
Key return ratios for the fiscal year included a 12.5% return on average
assets and a 22.2% return on average equity.
During the fiscal year, the Company opened 68 offices, acquired 50 offices
and merged or closed 6 offices, leaving a total of 732 offices at March 31,
2007.
About World Acceptance Corporation
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 732 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.
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 10:00 a.m. Eastern
time today. Interested parties may participate in this call by dialing
1-800-289-0518. A simulcast of the conference call is also available on the
Internet at www.streetevents.com and www.investorcalendar.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 (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 Year Ended
March 31, March 31,
2007 2006 2007 2006
Interest & fees $70,212 $58,728 $247,007 $204,450
Insurance & other 16,958 14,713 45,311 38,822
Total revenues 87,170 73,441 292,318 243,272
Expenses:
Provision for loan
losses 8,580 6,629 51,925 46,026
General and
administrative expenses
Personnel 29,781 25,317 102,825 84,817
Occupancy & equipment 4,628 3,762 17,398 14,167
Data processing 539 584 2,160 2,109
Advertising 1,860 1,330 10,278 8,592
Intangible
amortization 666 736 2,885 2,861
Other 4,557 3,999 18,081 15,968
42,031 35,728 153,627 128,514
Interest expense 2,602 2,066 9,596 7,137
Total expenses 53,213 44,423 215,148 181,677
Income before taxes 33,957 29,018 77,170 61,595
Income taxes 12,919 10,930 29,274 23,080
Net income $21,038 $18,088 $47,896 $38,515
Diluted earnings per share $1.17 $0.96 $2.60 $2.02
Diluted weighted average
shares outstanding 17,917 18,872 18,387 19,098
Consolidated Balance Sheets
(unaudited and in thousands)
March 31, March 31,
2007 2006
ASSETS
Cash $5,779 $4,034
Gross loans receivable 505,788 416,302
Less: Unearned interest
& fees (127,750) (103,556)
Allowance for loan losses (27,840) (22,717)
Loans receivable, net 350,198 290,029
Property and equipment, net 14,310 11,040
Deferred tax benefit 14,507 3,898
Goodwill 5,040 4,715
Intangibles 10,222 12,146
Other assets 11,060 6,922
$411,116 $332,784
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 171,200 100,600
Income tax payable 8,016 6,778
Accounts payable and accrued expenses 16,408 14,976
Total liabilities 195,624 122,354
Shareholders' equity 215,492 210,430
411,116 332,784
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended Year ended
March 31, March 31,
2007 2006 2007 2006
Expenses as a percent of
total revenues:
Provision for loan losses 9.8% 9.0% 17.8% 18.9%
General and administrative
expenses 48.2% 48.6% 52.6% 52.8%
Interest expense 3.0% 2.8% 3.3% 2.9%
Average gross loans
receivable $525,565 $432,065 $480,835 $396,582
Average net loans
receivable $392,579 $324,069 $358,647 $298,267
Loan volume $316,005 $263,806 $1,444,265 $1,218,131
Net charge-offs as percent
of average loans 11.8% 11.6% 13.3% 14.8%
Return on average assets 19.6% 20.8% 12.5% 11.9%
Return on average equity 41.1% 35.9% 22.2% 19.9%
Offices opened (closed)
during the period, net 1 1 112 41
Offices open at end of period 732 620 732 620
SOURCE World Acceptance Corporation
-0- 04/26/2007
/CONTACT: Kelly Malson Snape, Chief Financial Officer of World Acceptance
Corporation, +1-864-298-9800/
/Web sites: http://www.streetevents.com
http://www.investorcalendar.com /