Exhibit 99.1
WORLD ACCEPTANCE CORPORATION REPORTS RECORD THIRD QUARTER RESULTS
GREENVILLE, S.C., Jan. 25 /PRNewswire-FirstCall/ -- World Acceptance
Corporation (Nasdaq: WRLD) today reported record financial results for its
third fiscal quarter ended December 31, 2006.
Net income for the third quarter rose 23.3% to $7.0 million compared with
$5.7 million for the same quarter of the prior year. Net income per diluted
share increased 30% to $0.39 compared with $0.30 for the same quarter of prior
year. Total revenues for the quarter increased 20.8% to $74.1 million from
$61.3 million for the prior year quarter.
"Our record third quarter results benefited from strong loan demand during
the quarter," stated Sandy McLean, CEO of World Acceptance Corporation. "Our
third quarter is traditionally our busiest in terms of loan volume and new
customer activity. This year was no exception. We experienced increase loan
volume across our markets, including our offices in Mexico."
Gross loans outstanding were $560.7 million at December 31, 2006, a 20.7%
increase over the $464.4 million at December 31, 2005. Gross loans outstanding
increased by $90.5 million, or 19.2%, over the balances at the beginning of
the quarter. This compares with an increase in loans by $68.8 million, or
17.4%, during the third quarter of fiscal 2006. Loan volume increased 19.4%
from $337.0 million in the third quarter 2006 to $438.4 in the third quarter
2007.
"We continued to expand our markets in the third quarter. We acquired the
loan receivables of Titan Finance in October that added 39 net new offices. In
addition, we expanded our operations in Mexico to 12 offices. For the first
three quarters of this fiscal year, we opened 68 offices and acquired 46
offices. Acquisitions accounted for $17.5 million in gross loans in the third
quarter, up from $5.3 million in the third quarter of last year. Growth in
Mexico accounted for $4.1 million in gross loans outstanding at the end of the
quarter," continued Mr. McLean.
Key return ratios for the third quarter included a 6.9% return on average
assets (annualized) and an annualized return on average equity of 13.1%. Total
general and administrative expenses as a percent of total revenues were 55.9%,
an increase from the 54.5% during the third quarter of the prior fiscal year.
The increase in general and administrative expenses was primarily due to
higher personnel costs associated with the acquisitions and new offices opened
compared with last year.
Net charge-offs as a percent of average net loans on an annualized basis
decreased to 15.8% during the quarter from 17.4% during the prior year
quarter. Third quarter provision for loan loss increased 9.8% to $18.4 million
compared with $16.7 million in the third quarter of last year.
Nine-Month Results
For the first nine months of the fiscal year, net income rose 31.5% to
$26.9 million compared with $20.4 million in the first nine month of the prior
fiscal year. Net income per diluted share rose 35.5% to $1.45, compared with
$1.07, for the prior year nine-month period. Growth in per share income for
both the third quarter and the nine months benefited from the Company
repurchasing approximately 1 million shares.
Total revenues for the first nine months of fiscal 2007 were $205.1
million, a 20.8% increase over the $169.8 million during the corresponding
period of the previous year. Net charge-offs as a percent of average net loans
were 13.8% compared with 15.8% during the prior year nine month period.
During the first nine months of the fiscal year, the Company opened 68
offices, acquired 46 offices and merged or closed 4 offices, leaving a total
of 731 offices at December 31, 2006.
About World Acceptance Corporation
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 731 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.
Third 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
1-800-946-0719. A simulcast of the conference call is also available on the
Internet at www.streetevents.com and 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 Nine Months Ended
December 31, December 31,
--------------------------- ---------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Interest & fees $ 63,509 $ 52,380 $ 176,795 $ 145,722
Insurance & other 10,593 8,939 28,352 24,109
------------ ------------ ------------ ------------
Total revenues 74,102 61,319 205,147 169,831
Expenses:
Provision for
loan losses 18,365 16,726 43,345 39,397
General and administrative
expenses
Personnel 25,778 20,285 73,044 59,500
Occupancy & equipment 4,439 3,640 12,769 10,405
Data processing 571 512 1,621 1,524
Advertising 4,734 3,964 8,418 7,262
Intangible amortization 683 709 2,219 2,125
Other 5,254 4,305 13,524 11,970
------------ ------------ ------------ ------------
41,459 33,415 111,595 92,786
Interest expense 2,823 2,142 6,994 5,070
------------ ------------ ------------ ------------
Total expenses 62,647 52,283 161,934 137,253
------------ ------------ ------------ ------------
Income before taxes 11,455 9,036 43,213 32,578
Income taxes 4,444 3,350 16,354 12,150
------------ ------------ ------------ ------------
Net income $ 7,011 $ 5,686 $ 26,859 $ 20,428
============ ============ ============ ============
Diluted earnings
per share $ 0.39 $ 0.30 $ 1.45 $ 1.07
============ ============ ============ ============
Diluted weighted average
shares outstanding 17,950 18,896 18,547 19,174
============ ============ ============ ============
Consolidated Balance Sheets
(unaudited and in thousands)
December 31, March 31, December 31,
2006 2006 2005
------------ ------------ ------------
ASSETS
Cash $ 7,121 $ 4,034 $ 5,169
Gross loans receivable 560,742 416,302 464,391
Less: Unearned interest & fees (144,522) (103,556) (117,922)
Allowance for loan losses (30,715) (22,717) (25,471)
------------ ------------ ------------
Loans receivable, net 385,505 290,029 320,998
Property and equipment, net 13,880 11,040 10,892
Deferred tax benefit 11,847 3,898 3,415
Goodwill 5,021 4,715 4,716
Intangibles 11,624 12,146 12,667
Other assets 11,481 6,922 5,810
------------ ------------ ------------
$ 446,479 $ 332,784 $ 363,667
============ ============ ============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 236,900 100,600 160,200
Income tax payable - 6,778 -
Accounts payable and
accrued expenses 15,468 14,976 11,385
------------ ------------ ------------
Total liabilities 252,368 122,354 171,585
Shareholders' equity 194,111 210,430 192,082
------------ ------------ ------------
$ 446,479 $ 332,784 $ 363,667
============ ============ ============
Selected Consolidated Statistics
(dollars in thousands)
Three Months Ended Nine Months Ended
December 31, December 31,
--------------------------- ---------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
Expenses as a percent of
total revenues:
Provision for loan losses 24.8% 27.3% 21.1% 23.2%
General and
administrative expenses 55.9% 54.5% 54.4% 54.6%
Interest expense 3.8% 3.5% 3.4% 3.0%
Average gross
loans receivable $ 511,916 $ 422,446 $ 471,002 $ 389,107
Average loans
receivable $ 380,487 $ 316,157 $ 350,892 $ 292,726
Loan volume $ 438,366 $ 366,996 $ 1,128,259 $ 954,325
Net charge-offs as
percent of average loans 15.8% 17.4% 13.8% 15.8%
Return on average assets 6.9% 6.6% 9.5% 8.5%
Return on average equity 13.1% 12.0% 16.6% 14.4%
Offices opened (closed)
during the period, net 53 8 111 40
Offices open at end of period 731 619 731 619
SOURCE World Acceptance Corporation
-0- 01/25/2007
/CONTACT: Kelly Malson Snape, Chief Financial Officer for World Acceptance
Corporation, +1-864-298-9800 /
(WRLD)