Exhibit 99.1
World Acceptance Corporation Reports Record First Quarter Results
GREENVILLE, S.C.--(BUSINESS WIRE)--July 21, 2004--World Acceptance
Corporation (Nasdaq/NM:WRLD) today reported record revenue, net income and loans
for its first fiscal quarter ended June 30, 2004.
Net income for the first quarter rose 29.5% to $7.3 million, or $.37 per
diluted share, compared to $5.6 million, or $.30 per diluted share, for the same
quarter of the prior year. Total revenues for the quarter increased 17.9% to
$47.5 million from $40.3 million for the prior year quarter.
Gross loans outstanding increased to $334.6 million at June 30, 2004, a
19.6% increase over the $279.8 million in balances outstanding at June 30, 2003,
and a 7.9% 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 D.R. Jones, President 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 decreased from both the prior quarter and from the
same quarter of the prior fiscal year."
Interest expense decreased by 0.2% when compared to the first quarter of
last year while average total debt outstanding increased 2.3% over the two
quarterly periods. Net charge-offs as a percent of average net loans were 12.5%
on an annualized basis for the quarter ended June 30, 2004, compared with 13.4%
for the quarter ended June 30, 2003. Total general and administrative expenses
as a percent of total revenues continued its year over year improvement to 55.6%
during the most recent quarter compared to 56.2% during the prior year quarter.
Operating income (revenues less the provision for loan losses and general
and administrative expenses) increased 28.3% to $12.4 million during the most
recent quarter from $9.7 million in the prior year quarter.
Return on average assets (annualized) increased to 10.8% in the first
quarter compared with 9.7% in the same quarter last year. Annualized return on
average equity remained high at 18.6%, slightly down from the first quarter of
the prior year.
During the first three months of the fiscal year, the Company opened or
acquired 19 offices and closed one non-performing office, leaving a total of 544
offices at June 30, 2004. World Acceptance had 15% more offices in operation at
the end of the first quarter of fiscal 2004 than at the same point of the prior
year.
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 544 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 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
Condensed Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended
June 30,
2004 2003
-------- --------
Interest & fees $40,600 $34,405
Insurance & other 6,878 5,858
-------- --------
Total revenues 47,478 40,263
Expenses:
Provision for loan losses 8,627 7,929
General and administrative expenses
Personnel 17,706 15,350
Occupancy & equipment 2,915 2,302
Data processing 468 477
Advertising 1,580 1,283
Intangible amortization 631 555
Other 3,119 2,676
-------- --------
26,419 22,643
Interest expense 989 991
-------- --------
Total expenses 36,035 31,563
-------- --------
Income before taxes 11,443 8,700
Income taxes 4,177 3,089
-------- --------
Net income $7,266 $5,611
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Diluted earnings per share $0.37 $0.30
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Weighted average shares outstanding (diluted) 19,489 18,760
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Condensed Consolidated Balance Sheets
(unaudited and in thousands)
June 30, March 31, June 30,
2004 2004 2003
-------- -------- --------
ASSETS
Cash $2,792 $4,314 $4,363
Gross loans receivable 334,567 310,131 279,805
Less: Unearned interest & fees (80,483) (73,603) (68,117)
Allowance for loan losses (18,645) (17,261) (16,248)
-------- -------- --------
Loans receivable, net 235,439 219,267 195,440
Property and equipment, net 9,406 9,274 8,348
Intangible assets 16,020 15,514 14,442
Other assets 14,727 13,600 12,767
-------- -------- --------
$278,384 $261,969 $235,360
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 110,732 95,032 102,732
Income tax payable 3,354 383 2,405
Accounts payable and accrued expenses 7,672 9,974 6,563
-------- -------- --------
Total liabilities 121,758 105,389 111,700
Shareholders' equity 156,626 156,580 123,660
-------- -------- --------
$278,384 $261,969 $235,360
======== ======== ========
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended
June 30,
2004 2003
-------- --------
Expenses as a percent of total revenues:
Provision for loan losses 18.2% 19.7%
General and administrative expenses 55.6% 56.2%
Interest expense 2.1% 2.5%
Average gross loans receivable $323,137 $272,048
Average loans receivable $246,024 $206,427
Loan volume $251,242 $208,743
Net charge-offs as percent of average loans 12.5% 13.4%
Return on average assets 10.8% 9.7%
Return on average equity 18.6% 18.7%
Offices opened (closed) during the period, net 18 2
Offices open at end of period 544 472
CONTACT: World Acceptance Corporation
Sandy McLean, 864-298-9800