Exhibit 99.1
World Acceptance Corporation Reports Record Third Quarter Results
GREENVILLE, S.C.--(BUSINESS WIRE)--Jan. 24, 2005--World Acceptance
Corporation (NASDAQ/NM:WRLD) today reported higher revenue, higher net
income and increased loans outstanding for its third fiscal quarter
ended December 31, 2004.
Net income for the third quarter rose 19.5% to $5.5 million, or
$0.28 per diluted share, compared with $4.6 million, or $0.23 per
diluted share, for the same quarter of the prior year. Total revenues
for the quarter increased 20.1% to $53.2 million from $44.3 million
for the prior year quarter.
"Our record revenues and earnings for the third quarter were due
to a continuation of the trends that we experienced during the first
two quarters," stated Doug Jones, President and CEO of World
Acceptance Corporation. "The third quarter is seasonally our busiest
quarter and we loaned a record $307 million in 401,000 separate loan
transactions. We added $35.3 million in gross loans outstanding during
the third quarter, a 10.1% increase from the balances outstanding at
September 30, 2004. We believe our continued growth is indicative of
the increased demand for our loan products."
Gross loans outstanding increased to a record $384.7 million at
December 31, 2004, a 15.0% increase over the $334.5 million in loans
outstanding at December 31, 2003, and a 24.0% increase since the
beginning of the fiscal year. Loan growth for the third quarter
included $495,000 in loans acquired during the quarter compared with
$6.9 million in acquisitions in the third quarter of fiscal 2004.
Several key ratios remained very high during the quarter. The
return on average assets (annualized) amounted to 7.3% and the
annualized return on average equity was 12.8%. Total general and
administrative expenses as a percent of total revenues once again
showed improvement on a year-over-year basis at 55.4% during the most
recent quarter compared with 56.6% during the prior year quarter.
Nine-Month Results
For the first nine months of the fiscal year, net income rose to
$19.7 million, or $1.01 per diluted share, representing a 20.6%
increase over the $16.3 million, or $0.85 per diluted share, for the
prior year nine-month period. Total revenues for the first nine months
of fiscal 2005 were $150.4 million, a 19.2% increase over the $126.2
million during the corresponding period of the previous year.
During the first nine months of the fiscal year, the Company
opened or acquired 55 offices and closed three non-performing offices,
leaving a total of 578 offices at December 31, 2004.
About World Acceptance
World Acceptance Corporation is one of the largest small-loan
consumer finance companies, operating 578 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 review
the Company's third quarter 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 1-800-473-6123. A simulcast of the
conference call is also available on the Internet at:
http://phx.corporate-ir.net/playerlink.zhtml?c=103383&s=wm&e=998669.
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 reports on
Form 10-K, 10-Q and 8-K as filed 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,
2004 2003 2004 2003
-------- -------- -------- --------
Interest & fees $46,043 $38,075 $130,122 $109,030
Insurance & other 7,123 6,210 20,276 17,195
-------- -------- -------- --------
Total revenues 53,166 44,285 150,398 126,225
Expenses:
Provision for loan losses 13,731 11,077 33,640 28,334
General and
administrative expenses
Personnel 18,008 14,699 53,192 44,560
Occupancy & equipment 3,121 2,579 9,147 7,323
Data processing 542 470 1,410 1,393
Advertising 3,527 3,420 6,476 5,874
Intangible amortization 650 570 1,915 1,692
Other 3,612 3,336 10,270 8,836
-------- -------- -------- --------
29,460 25,074 82,410 69,678
Interest expense 1,314 997 3,371 2,916
-------- -------- -------- --------
Total expenses 44,505 37,148 119,421 100,928
-------- -------- -------- --------
Income before taxes 8,661 7,137 30,977 25,297
Income taxes 3,160 2,533 11,305 8,980
-------- -------- -------- --------
Net income $5,501 $4,604 $19,672 $16,317
======== ======== ======== ========
Diluted earnings per share $0.28 $0.23 $1.01 $0.85
======== ======== ======== ========
Diluted weighted average
shares outstanding 19,604 19,692 19,508 19,205
======== ======== ======== ========
Consolidated Balance Sheets
(unaudited and in thousands)
Dec. 31, Mar. 31, Dec. 31,
2004 2004 2003
-------- -------- --------
ASSETS
Cash $ 5,192 $4,314 $2,691
Gross loans receivable 384,715 310,131 334,485
Less: Unearned interest & fees (95,073) (73,603) (83,634)
Allowance for loan losses (23,184) (17,261) (19,902)
-------- -------- --------
Loans receivable, net 266,458 219,267 230,949
Property and equipment, net 9,917 9,274 9,088
Intangible assets 17,021 15,514 13,906
Other assets 15,588 13,600 13,276
-------- -------- --------
$314,176 $261,969 $269,910
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 132,850 95,032 124,632
Accounts payable and accrued expenses 5,675 10,357 4,620
-------- -------- --------
Total liabilities 138,525 105,389 129,252
Shareholders' equity 175,651 156,580 140,658
-------- -------- --------
$314,176 $261,969 $269,910
======== ======== ========
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended Nine Months Ended
Dec. 31, Dec. 31,
2004 2003 2004 2003
-------- -------- -------- --------
Expenses as a percent of
total revenues:
Provision for loan losses 25.8% 25.0% 22.4% 22.4%
General and
administrative expenses 55.4% 56.6% 54.8% 55.2%
Interest expense 2.5% 2.3% 2.2% 2.3%
Average gross loans
receivable $362,173 $301,080 $342,059 $285,953
Average loans receivable $274,217 $226,995 $259,643 $216,251
Loan volume $306,902 $269,913 $809,174 $687,664
Net charge-offs as percent
of average loans 15.9% 15.7% 14.7% 15.0%
Return on average assets 7.3% 7.3% 9.2% 9.0%
Return on average equity 12.8% 13.5% 16.0% 17.0%
Offices opened (closed)
during the period, net 3 30 52 46
Offices open at end of period 578 516 578 516
CONTACT: World Acceptance Corporation, Greenville
Sandy McLean, 864-298-9800