Exhibit 99.1
WORLD ACCEPTANCE CORPORATION REPORTS RECORD FOURTH QUARTER
ANNOUNCES EXPANSION INTO MEXICO
GREENVILLE, S.C., April 26 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported record revenue and net income for its
fourth fiscal quarter and year ended March 31, 2005. The Company also announced
its plan to expand its lending office network into Mexico during the next six
months.
"Revenues for the fourth quarter rose 14.0% to $60.4 million and net income
increased 15.0% to $14.3 million due to the continued growth in the loan
portfolio, more fees generated from tax preparation services and the
contribution from more offices in operation," stated Douglas R. Jones, President
and CEO of World Acceptance Corporation. "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 a seasonal high during the key tax filing months of
January through March."
Net income for the fourth quarter rose 15.0% to $14.3 million, or $0.73 per
diluted share, compared with $12.4 million, or $0.63 per diluted share, for the
same quarter of the prior year. Total revenues for the quarter increased 14.0%
to $60.4 million from $52.9 million for the prior year quarter.
Gross loans outstanding amounted to $351.5 million at March 31, 2005, a
13.3% increase over the $310.1 million in balances outstanding at March 31,
2004. This includes $7.6 million in gross loans that were purchased in two
separate acquisitions at the end of the fiscal year.
Expansion into Mexico
"We identified Mexico as an excellent market for expansion based on the
favorable regulatory environment, the flexible interest rate structure and the
large segment of the population with demographics suitable for our type of
lending," continued Mr. Jones. "We made the decision to expand into Mexico
following an extensive study performed by a third-party consultant who was very
familiar with conducting business in Mexico. All indications are that Mexico is
an excellent market for future growth of World Acceptance Corporation. Our plans
call for opening two offices in Mexico by the end of the second quarter of
fiscal 2006. We will evaluate our plans for future offices in Mexico based on
our initial experience and the results from our two pilot offices."
Twelve-Month Results
For the fiscal year, net income was a record $34.0 million, or $1.74 per
diluted share, representing an 18.2% increase over the $28.8 million, or $1.49
per diluted share, for the prior fiscal year. Total revenues for fiscal 2005
were $210.8 million, a 17.6% increase over the $179.2 million during the
previous year.
Several key return ratios remained very high during the fiscal year. The
Company's return on average assets was 11.8% and the return on average equity
was 20.1%. Total general and administrative expenses as a percent of total
revenues decreased slightly to 53.2% during the year compared to 53.8% during
the prior fiscal year.
During the 2005 fiscal year, the Company opened or acquired 57 offices and
closed four non-performing offices, leaving a total of 579 offices at March 31,
2005.
About World Acceptance
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 579 offices in 12 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
1-888-694-4769. 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=1055342.
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).
Additionally, there can be no assurance that the Company's planned expansion
into Mexico will go as planned. 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
(in thousands, except per share amounts)
Three Months Ended Years Ended
March 31, March 31,
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Interest & fees $ 47,460 42,470 177,582 151,499
Insurance & other 12,900 10,458 33,176 27,653
Total revenues 60,360 52,928 210,758 179,152
Expenses:
Provision for loan losses 6,397 5,147 40,037 33,481
General and administrative
expenses
Personnel 20,169 18,137 73,361 62,696
Occupancy & equipment 3,283 2,860 12,431 10,183
Data processing 501 563 1,910 1,956
Advertising 1,316 1,219 7,792 7,093
Intangible amortization 670 573 2,585 2,265
Other 3,874 3,284 14,144 12,120
29,813 26,636 112,223 96,313
Interest expense 1,269 1,026 4,640 3,943
Total expenses 37,479 32,809 156,900 133,737
Income before taxes 22,881 20,119 53,858 45,415
Income taxes 8,563 7,670 19,868 16,650
Net income $ 14,318 12,449 33,990 28,765
Diluted earnings per share $ 0.73 0.63 1.74 1.49
Diluted weighted average shares
outstanding 19,708 19,773 19,558 19,347
Consolidated Balance Sheets
(in thousands)
March 31, March 31,
2005 2004
---------- ----------
ASSETS
Cash $ 3,047 4,314
Gross loans receivable 351,496 310,131
Less: Unearned interest &
fees (84,472) (73,603)
Allowance for loan losses (20,673) (17,261)
Loans receivable, net 246,351 219,267
Property and equipment, net 9,806 9,274
Intangible assets 17,359 15,514
Other assets 15,789 13,600
$ 292,352 261,969
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 83,900 95,032
Accounts payable and accrued
expenses 18,741 10,357
Total liabilities 102,641 105,389
Shareholders' equity 189,711 156,580
$ 292,352 261,969
Selected Consolidated
Statistics
(dollars in thousands)
Three Months Ended Years Ended
March 31, March 31,
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Expenses as a percent of total
revenues:
Provision for loan losses 10.6% 9.7% 19.0% 18.7%
General and administrative
expenses 49.4% 50.3% 53.2% 53.8%
Interest expense 2.1% 1.9% 2.2% 2.2%
Average gross loans receivable $ 359,465 $ 318,094 $ 344,133 $ 292,110
Average loans receivable $ 272,161 $ 241,116 $ 261,187 $ 221,240
Loan volume $ 219,496 $ 190,385 $1,029,670 $ 878,049
Net charge-offs as percent of
average loans 13.9% 13.6% 14.6% 14.7%
Return on average assets 18.9% 18.8% 11.8% 11.7%
Return on average equity 31.3% 33.5% 20.1% 21.5%
Offices opened (closed) during
the period, net 1 10 53 56
Offices open at end of period 579 526 579 526
SOURCE World Acceptance Corporation
-0- 04/26/2005
/CONTACT: Sandy McLean, Chief Financial Officer of World Acceptance
Corporation, +1-864-298-9800