Exhibit 99.1
WORLD ACCEPTANCE CORPORATION REPORTS FIRST QUARTER RESULTS
GREENVILLE, S.C., July 25 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported its financial results for its first
fiscal quarter ended June 30, 2005.
Total revenues for the quarter increased 9.0% to $51.8 million from $47.5
million for the prior year quarter. Net income for the first quarter rose
slightly to $7.31 million, or $0.38 per diluted share, compared with $7.27
million, or $0.37 per diluted share, for the same quarter of the prior year.
Doug Jones, President and Chief Executive Officer, stated that the less than
expected earnings resulted primarily from the slower loan growth experienced
during the quarter causing the slower than normal revenue growth. This was
primarily due to year over year growth at the beginning of the fiscal year and
the timing of acquisitions. Internal loan growth remained strong and was in line
with prior first fiscal quarters; however, there were very few acquisition
opportunities during the most recent three month period. During the quarter
ended June 30, 2004, the Company acquired $8.4 million in gross loans compared
to $945,000 during this most recent quarter. Additionally, the Company added six
new offices during the most recent quarter compared with nineteen new offices
during the prior year quarter. Mr. Jones indicated that he expects the Company
to experience loan growth more in line with historical trends during the second
half of this fiscal year.
Gross loans outstanding increased to $371.1 million at June 30, 2005,
compared to $334.6 million in balances outstanding at June 30, 2004. The Company
continues to evaluate new acquisition opportunities and the opening of new
offices within its existing markets. The Company is also looking at new markets,
including its expansion into Mexico, that appear to have excellent potential for
expanding its business.
Key return ratios for the first quarter included a 9.8% return on average
assets (annualized) and a 15.4% annualized return on average equity. Total
general and administrative expenses as a percent of total revenues were 56.5%
during the most recent quarter compared to 55.6% during the prior year quarter.
The Company also experienced an increase in charge-off ratios. Net charge-offs
as a percent of average net loans were 13.9% on an annualized basis for the
quarter ended June 30, 2005, compared to 12.5% during the prior year quarter.
During the first three months of the fiscal year, the Company opened or
acquired six offices and closed two non-performing offices, leaving a total of
583 offices at June 30, 2005.
About World Acceptance
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 583 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.
First 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=1096449. The call
will be available for replay on the Internet for approximately 30 days.
This press release contains 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,
including the Company's statements of expectation regarding expense control in
future periods. 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
Consolidated Statements of Operations
(Unaudited and in thousands, except per share amounts)
Three Months Ended
June 30,
-----------------------
2005 2004
---------- ----------
Interest & fees $ 44,599 40,600
Insurance & other 7,169 6,878
Total revenues 51,768 47,478
Expenses:
Provision for loan losses 9,540 8,627
General and administrative
expenses
Personnel 19,582 17,706
Occupancy & equipment 3,184 2,915
Data processing 501 468
Advertising 1,658 1,580
Intangible amortization 686 631
Other 3,630 3,119
29,241 26,419
Interest expense 1,307 989
Total expenses 40,088 36,035
Income before taxes 11,680 11,443
Income taxes 4,368 4,177
Net income $ 7,312 7,266
Diluted earnings per share $ 0.38 0.37
Weighted average shares outstanding
(diluted) 19,477 19,489
Consolidated Balance Sheets
(Unaudited and in thousands)
June 30, March 31, June 30,
2005 2005 2004
---------- ---------- ----------
ASSETS
Cash $ 4,053 3,047 2,792
Gross loans receivable 371,056 351,496 334,567
Less: Unearned interest & fees (91,583) (84,472) (80,483)
Allowance for loan losses (20,531) (20,673) (18,645)
Loans receivable, net 258,942 246,351 235,439
Property and equipment, net 10,221 9,806 9,406
Deferred tax benefit 10,690 10,690 9,535
Intangible assets 17,097 17,358 16,020
Other assets 4,956 6,254 5,192
$ 305,959 293,506 278,384
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 100,250 83,900 110,732
Income tax payable 5,666 1,624 3,354
Accounts payable and accrued
expenses 9,176 18,271 7,672
Total liabilities 115,092 103,795 121,758
Shareholders' equity 190,867 189,711 156,626
$ 305,959 293,506 278,384
Selected Consolidated Statistics
(Unaudited and dollars in thousands)
Three Months Ended
June 30,
-----------------------
2005 2004
---------- ----------
Expenses as a percent of total revenues:
Provision for loan losses 18.4% 18.2%
General and administrative expenses 56.5% 55.6%
Interest expense 2.5% 2.1%
Average gross loans receivable $ 360,042 $ 323,137
Average loans receivable $ 272,428 $ 246,024
Loan volume $ 281,968 $ 251,242
Net charge-offs as percent of
average loans 13.9% 12.5%
Return on average assets 9.8% 10.8%
Return on average equity 15.4% 18.6%
Offices opened (closed) during the
period, net 4 18
Offices open at end of period 583 544
SOURCE World Acceptance Corporation
-0- 07/25/2005
/CONTACT: Sandy McLean, Chief Financial Officer of World Acceptance
Corporation, +1-864-298-9800/
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