Exhibit 99.1
WORLD ACCEPTANCE CORPORATION REPORTS RECORD FIRST QUARTER RESULTS
GREENVILLE, S.C., July 25 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported record revenue and net income for
its first fiscal quarter ended June 30, 2006.
Net income for the first quarter rose 36.6% to $10.0 million compared with
$7.3 million for the same quarter of the prior year. Earnings per share rose to
$0.53 per share for the quarter, a 41.9% increase over the $0.38 per share for
the prior year quarter. Growth in earnings per share benefited from the 600,400
shares repurchased during the last 12 months. Total revenues for the quarter
increased 23.3% to $63.8 million from $51.8 million for the prior year quarter.
Gross loans outstanding were $447.8 million at June 30, 2006, a 20.7% increase
over the $371.1 million in balances outstanding at June 30, 2005 and a 7.6%
sequential increase over the $416.3 million for the previous quarter ended March
31, 2006.
"Our first quarter results were excellent as loan demand accelerated over
the last three quarters," stated Sandy McLean, CEO. "Our per share earnings
growth benefited from our growth in revenue, as well as declines in general and
administrative expense as a percentage of revenues and lower charge-offs as a
percent of average loans. Although we are not expecting earnings to increase at
the same rate as the current quarter, we do expect good results for the
remainder of the fiscal year as we focus on internal growth, new office
openings, our continued close management of expenses and our recent successes
with lower delinquencies and charge-offs."
Several key ratios remained improved during the quarter. Total general and
administrative expenses as a percent of total revenues improved to 54.6% during
the most recent quarter compared to 56.5% during the prior year quarter. Net
charge-offs as a percent of average net loans (annualized) decreased to 11.6%
during the quarter from 14.2% for the quarter ended June 30, 2005.
During the quarter, the Company opened or acquired 24 offices and closed
three non-performing offices, leaving a total of 641 offices at June 30, 2006.
About World Acceptance
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 641 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.
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 10:00 A.M. Eastern
today. Interested parties may participate in this call by dialing 1-
866-261-7147. A simulcast of the conference call is also available on the
Internet at http://www.streetevents.com and http://www.vcall.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 (particularly 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,
-------------------------
2006 2005
----------- -----------
Interest & fees $ 54,536 44,599
Insurance & other 9,301 7,169
----------- -----------
Total revenues 63,837 51,768
Expenses:
Provision for loan losses 11,167 9,540
General and administrative expenses
Personnel 23,593 19,582
Occupancy & equipment 3,915 3,184
Data processing 495 501
Advertising 1,890 1,658
Intangible amortization 794 686
Other 4,160 3,630
----------- -----------
34,847 29,241
Interest expense 1,901 1,307
----------- -----------
Total expenses 47,915 40,088
----------- -----------
Income before taxes 15,922 11,680
Income taxes 5,935 4,368
----------- -----------
Net income $ 9,987 7,312
=========== ===========
Diluted earnings per share $ 0.53 0.38
=========== ===========
Weighted average shares
outstanding (diluted) 18,741 19,477
=========== ===========
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
June 30, March 31, June 30,
2006 2006 2005
----------- ----------- -----------
ASSETS
Cash $ 4,897 4,034 4,053
Gross loans receivable 447,840 416,302 371,056
Less: Unearned
interest & fees (114,330) (103,556) (91,583)
Allowance for
loan losses (24,605) (22,717) (20,531)
----------- ----------- -----------
Loans receivable,
net 308,905 290,029 258,942
Property and equipment, net 11,517 11,040 10,221
Deferred tax benefit 3,898 3,898 10,690
Intangible assets 16,227 16,861 17,097
Other assets 7,014 6,922 4,956
----------- ----------- -----------
$ 352,458 332,784 305,959
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 113,200 100,600 100,250
Income tax payable 4,376 6,778 5,666
Accounts payable and
accrued expenses 12,028 14,976 9,176
----------- ----------- -----------
Total liabilities 129,604 122,354 115,092
Shareholders' equity 222,854 210,430 190,867
----------- ----------- -----------
$ 352,458 332,784 305,959
=========== =========== ===========
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended
June 30,
-------------------------
2006 2005
----------- -----------
Expenses as a percent of total revenues:
Provision for loan losses 17.5% 18.4%
General and administrative expenses 54.6% 56.5%
Interest expense 3.0% 2.5%
Average gross loans receivable $ 430,105 $ 360,042
Average loans receivable $ 321,788 $ 272,428
Loan volume $ 341,833 $ 281,968
Net charge-offs as percent of average loans 11.6% 14.2%
Return on average assets 11.7% 9.8%
Return on average equity 18.4% 15.4%
Offices opened (closed) during the period, net 21 4
Offices open at end of period 641 583
SOURCE World Acceptance Corporation
-0- 07/25/2006
/CONTACT: Sandy McLean, Chief Executive Officer of World Acceptance
Corporation, +1-864-298-9800/