EX-99.1 3 e15498ex99_1.txt PRESS RELEASE Exhibit 99.1 World Acceptance Corporation Reports Record First Quarter Results GREENVILLE, S.C., July 17 /PRNewswire-FirstCall/ -- World Acceptance Corporation (Nasdaq: WRLD) today reported record revenue, net income and loans for its first fiscal quarter ended June 30, 2003. Net income for the first quarter rose 20.2% to $5.6 million, or $.30 per diluted share, compared to $4.7 million, or $.25 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 15.6% to $40.3 million from $34.8 million for the prior year quarter. Gross loans outstanding increased to $279.8 million at June 30, 2003, a 13.2% increase over the $247.2 million in balances outstanding at June 30, 2002, and a 4.9% increase since the beginning of the fiscal year. "World Acceptance's record first quarter results were attributable to the growth in our loan portfolio, higher revenues from insurance and other products, improved margins and reduced general and administrative expenses as a percent of revenues," stated Charles D. Walters, Chairman and CEO. "The low interest rate environment continues to have a positive effect on our cost of funds and our level of loan losses have remained level with the prior year." Interest expense decreased by 4.0% since the first quarter of last year while average total debt outstanding increased 7.0% in the same time period. Net charge-offs as a percent of average net loans were 13.5% on an annualized basis for the quarters ended June 30, 2003 and 2002. Total general and administrative expenses as a percent of total revenues continued its year over year improvement to 56.2% during the most recent quarter compared to 58.0% during the prior year quarter. Operating income (revenues less the provision for loan losses and general and administrative expenses) increased 17.2% to $9.7 million during the most recent quarter from $8.3 million in the prior year quarter. Return on average assets (annualized) increased to 9.7% in the first quarter compared with 9.2% in the same quarter last year. Annualized return on average equity remained high at 18.7%, the same as the first quarter of the prior year. During the first three months of the fiscal year, the Company opened or acquired 3 offices and closed one non-performing office, leaving a total of 472 offices at June 30, 2003. World Acceptance had 4% more offices in operation at the end of the first quarter of fiscal 2004 than in the same quarter of the prior year. World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 472 offices in eleven states. It is also the parent company of ParaData Financial Systems, a provider of computer software solutions for the consumer finance industry. 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 Condensed Consolidated Statements of Operations (unaudited and in thousands, except per share amounts) Three Months Ended June 30, 2003 2002 Interest & fees $34,405 $29,996 Insurance & other 5,858 4,823 Total revenues 40,263 34,819 Expenses: Provision for loan losses 7,929 6,363 General and administrative expenses Personnel 15,350 13,643 Occupancy & equipment 2,302 2,100 Data processing 477 430 Advertising 1,283 994 Intangible amortization 555 550 Other 2,676 2,469 22,643 20,186 Interest expense 991 1,032 Total expenses 31,563 27,581 Income before taxes 8,700 7,238 Income taxes 3,089 2,570 Net income $5,611 $4,668 Diluted earnings per share $0.30 $0.25 Weighted average shares outstanding (diluted) 18,760 18,911 Condensed Consolidated Balance Sheets (unaudited and in thousands) June 30, March 31, June 30, 2003 2003 2002 ASSETS Cash $4,363 $4,022 $4,723 Gross loans receivable 279,805 266,753 247,203 Less: Unearned interest & fees (68,117) (63,578) (59,803) Allowance for loan losses (16,248) (15,098) (14,225) Loans receivable, net 195,440 188,077 173,175 Property and equipment, net 8,348 8,298 7,512 Intangible assets 14,442 14,599 14,762 Other assets 12,767 13,321 11,886 $235,360 $228,317 $212,058 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable 102,732 102,532 105,132 Income tax payable 2,405 2,047 2,481 Accounts payable and accrued expenses 6,563 7,697 6,666 Total liabilities 111,700 112,276 114,279 Shareholders' equity 123,660 116,041 97,779 $235,360 $228,317 $212,058 Selected Consolidated Statistics (dollars in thousands) Three Months Ended June 30, 2003 2002 Expenses as a percent of total revenues: Provision for loan losses 19.7% 18.3% General and administrative expenses 56.2% 58.0% Interest expense 2.5% 3.0% Average gross loans receivable $272,048 $234,905 Average loans receivable $204,754 $176,992 Loan volume $208,740 $182,760 Net charge-offs as percent of average loans 13.5% 13.5% Return on average assets 9.7% 9.2% Return on average equity 18.7% 18.7% Offices opened (closed) during the period, net 2 13 Offices open at end of period 472 454 SOURCE World Acceptance Corporation -0- 07/17/2003 /CONTACT: Sandy McLean, Chief Financial Officer of World Acceptance Corporation, +1-864-298-9800/ /First Call Analyst: / /FCMN Contact: / (WRLD) CO: World Acceptance Corporation ST: South Carolina IN: FIN SU: ERN