Exhibit 99.1
WORLD ACCEPTANCE CORPORATION REPORTS RECORD SECOND QUARTER RESULTS
GREENVILLE, S.C., Oct. 24 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported record financial results for its
second fiscal quarter ended September 30, 2006.
Net income for the second quarter rose 32.7% to $9.9 million, or $.52 per
diluted share, compared with $7.4 million, or $.39 per diluted share, for the
same quarter of the prior year. Total revenues for the quarter increased 18.4%
to $67.2 million from $56.7 million for the prior year quarter.
"Our strong earnings benefited from excellent loan growth, lower charge-offs
and continued improvement in expense ratios compared with last year's second
quarter," stated Sandy McLean, CEO of World Acceptance Corporation. "Gross loans
outstanding rose 18.9% to $470.3 million at September 30, 2006 due to strong
internal growth, including our successful expansion into Mexico. At the end of
the second quarter, we had eight offices open in Mexico with loans outstanding
of $3.6 million."
Key return ratios for the second quarter included a 10.9% return on average
assets (annualized) and an annualized return on average equity of 17.3%. Total
general and administrative expenses as a percent of total revenues were 52.5%, a
decrease from the 53.1% during the second quarter of the prior fiscal year. Net
charge-offs as a percent of average net loans on an annualized basis decreased
to 14.0% during the quarter from 16.1% during the prior year quarter.
Six-Month Results
For the first six months of the fiscal year, net income was $19.8 million,
or $1.06 per diluted share representing a 34.6% increase over the $14.7 million,
or $.76 per diluted share for the prior year six-month period. Total revenues
for the first six months of fiscal 2006 were $131.0 million, a 20.8% increase
over the $108.5 million during the corresponding period of the previous year.
Net charge-offs as a percent of average net loans were 12.8% compared to 15.0%
during the prior year six-month period.
During the first six months of the fiscal year, the Company opened 67
offices, acquired four offices and closed four non-performing offices, leaving a
total of 678 offices at September 30, 2006.
About World Acceptance
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 678 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.
Second 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
time today. Interested parties may participate in this call by dialing
1-866-882-0694. 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 (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
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
Three Months Ended Six Months Ended
September 30, September 30,
----------------------- -----------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Interest & fees $ 58,750 $ 48,744 $ 113,286 $ 93,343
Insurance & other 8,458 8,000 17,759 15,169
---------- ---------- ---------- ----------
Total revenues 67,208 56,744 131,045 108,512
Expenses:
Provision for loan losses 13,813 13,131 24,980 22,671
General and administrative
expenses
Personnel 23,673 19,633 47,266 39,215
Occupancy & equipment 4,412 3,580 8,328 6,765
Data processing 555 512 1,050 1,013
Advertising 1,794 1,641 3,683 3,298
Intangible amortization 745 730 1,538 1,416
Other 4,110 4,034 8,271 7,664
---------- ---------- ---------- ----------
35,289 30,130 70,136 59,371
Interest expense 2,270 1,622 4,171 2,928
---------- ---------- ---------- ----------
Total expenses 51,372 44,883 99,287 84,970
---------- ---------- ---------- ----------
Income before taxes 15,836 11,861 31,758 23,542
Income taxes 5,975 4,432 11,910 8,800
---------- ---------- ---------- ----------
Net income $ 9,861 $ 7,429 $ 19,848 $ 14,742
========== ========== ========== ==========
Diluted earnings per share $ 0.52 $ 0.39 $ 1.06 $ 0.76
========== ========== ========== ==========
Diluted weighted average
shares outstanding 18,937 19,147 18,784 19,312
========== ========== ========== ==========
Consolidated Balance Sheets
(unaudited and in thousands)
September 30, March 31, September 30,
2006 2006 2005
------------- ------------- -------------
ASSETS
Cash $ 6,601 $ 4,034 $ 4,243
Gross loans receivable 470,275 416,302 395,578
Less: Unearned
interest & fees (120,314) (103,556) (99,169)
Allowance for loan losses (26,549) (22,717) (22,223)
------------- ------------- -------------
Loans receivable, net 323,412 290,029 274,186
Property and equipment, net 13,073 11,040 10,738
Deferred tax benefit 3,971 3,898 10,690
Goodwill 4,936 4,715 4,563
Intangibles 10,928 12,146 12,554
Other assets 8,644 6,922 5,986
------------- ------------- -------------
$ 371,565 $ 332,784 $ 322,960
============= ============= =============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 123,200 100,600 122,400
Income tax payable 1,055 6,778 5,479
Accounts payable and
accrued expenses 13,290 14,976 9,589
------------- ------------- -------------
Total liabilities 137,545 122,354 137,468
Shareholders' equity 234,020 210,430 185,492
------------- ------------- -------------
$ 371,565 $ 332,784 $ 322,960
============= ============= =============
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended Six Months Ended
September 30, September 30,
----------------------- -----------------------
2006 2005 2006 2005
---------- ---------- ---------- ----------
Expenses as a percent of total revenues:
Provision for loan losses 20.6% 23.1% 19.1% 20.9%
General and administrative
expenses 52.5% 53.1% 53.5% 54.7%
Interest expense 3.4% 2.9% 3.2% 2.7%
Average gross
loans receivable $ 462,233 $ 381,910 $ 447,060 $ 370,965
Average loans
receivable $ 343,980 $ 287,133 $ 333,551 $ 279,824
Loan volume $ 348,061 $ 305,361 $ 689,894 $ 587,329
Net charge-offs as percent
of average loans 14.0% 16.1% 12.8% 15.0%
Return on average assets 10.9% 9.5% 11.3% 9.6%
Return on average equity 17.3% 15.8% 17.8% 15.6%
Offices opened (closed)
during the period, net 37 28 58 32
Offices open at end of period 678 611 678 611
SOURCE World Acceptance Corporation
-0- 10/24/2006
/CONTACT: Sandy McLean, Chief Executive Officer of World Acceptance
Corporation, +1-864-298-9800 /