EX-99.1 3 e16636ex99_1.txt PRESS RELEASE Exhibit 99.1 World Acceptance Corporation Reports Record Third Quarter Results Adds 23 Offices by Acquisition During the Quarter GREENVILLE, S.C., Jan. 20 /PRNewswire-FirstCall/ -- World Acceptance Corporation (Nasdaq: WRLD) today reported higher revenue, net income and loans for its third fiscal quarter ended December 31, 2003. Additionally, it reported the purchase of 23 new offices located in Georgia. "Strong loan demand contributed to our record revenues and net income in the third fiscal quarter," stated Doug Jones, President and CEO. "Our third quarter is traditionally our busiest for loan demand and we added $51.0 million in gross loans during the quarter. Of this amount, an acquisition completed in early December added $6.5 million to gross loans outstanding. Additionally, we added $7.6 million more in early January with the closing of two more acquisitions." Net income for the third quarter rose 37.3% to $4.6 million, or $0.23 per diluted share, compared to $3.4 million, or $0.19 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 13.5% to $44.3 million from $39.0 million for the prior year quarter. Gross loans outstanding increased to a record $334.5 million at December 31, 2003, an 11.2% increase over the $300.8 million in balances outstanding at December 31, 2002, and a 25.4% increase since the beginning of the fiscal year. During the quarter, the Company loaned a record $270 million in 372,000 separate loan transactions. Several key return ratios remained very high during the quarter: return on average assets (annualized) amounted to 7.3% and the annualized return on average equity was 13.5%. Total general and administrative expenses as a percent of total revenues continued its year over year improvement to 56.6% during the most recent quarter compared with 57.5% in the same quarter last year. Net earnings continued to benefit from the low interest rate environment during the quarter, as interest expense decreased by 15.2% while average total debt outstanding decreased by 10.9% over the two quarterly periods. Provision for loan losses rose 8.5% to $11.1 million in the third quarter of fiscal 2004 compared with $10.2 million in the same quarter last year. Nine-Month Results For the first nine months of the fiscal year, net income was up 29.0% to $16.3 million, or $0.85 per diluted share, compared with $12.6 million, or $0.69 per diluted share, for the prior year nine-month period. Total revenues for the first nine months of fiscal 2004 were $126.2 million, a 14.8% increase over the $110.0 million during the corresponding period of the previous year. During the first nine months of the fiscal year, the Company opened or acquired 48 offices and closed two non-performing offices, leaving a total of 516 offices at December 31, 2003. About World Acceptance World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 516 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. 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 2:00 P.M. Eastern time today. Interested parties may participate in this call by dialing 1-877-691-0879. A simulcast of the conference call is also available on the Internet at http://www.firstcallevents.com/service/ajwz396835455gf12.html . 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 most recent 10-K and 10-Q 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 Dec. 31, Dec. 31, ------------------ ------------------ 2003 2002 2003 2002 -------- -------- -------- -------- Interest & fees $38,075 $33,442 $109,030 $95,779 Insurance & other 6,210 5,593 17,195 14,220 -------- -------- -------- -------- Total revenues 44,285 39,035 126,225 109,999 Expenses: Provision for loan losses 11,077 10,209 28,334 24,176 General and administrative expenses Personnel 14,699 13,364 44,560 40,075 Occupancy & equipment 2,579 2,215 7,323 6,567 Data processing 470 447 1,393 1,316 Advertising 3,420 2,850 5,874 4,865 Intangible amortization 570 531 1,692 1,617 Other 3,336 3,045 8,836 8,403 -------- -------- -------- -------- 25,074 22,452 69,678 62,843 Interest expense 997 1,176 2,916 3,377 -------- -------- -------- -------- Total expenses 37,148 33,837 100,928 90,396 -------- -------- -------- -------- Income before taxes 7,137 5,198 25,297 19,603 Income taxes 2,533 1,846 8,980 6,959 -------- -------- -------- -------- Net income $4,604 $3,352 $16,317 $12,644 ======== ======== ======== ======== Diluted earnings per share $0.23 $0.19 $0.85 $0.69 ======== ======== ======== ======== Diluted weighted average shares outstanding 19,693 17,937 19,205 18,305 ======== ======== ======== ======== Consolidated Balance Sheets (unaudited and in thousands) Dec. 31, Mar. 31, Dec. 31, 2003 2003 2002 -------- -------- -------- ASSETS Cash $2,691 $4,022 $3,704 Gross loans receivable 334,485 266,753 300,751 Less: Unearned interest & fees (83,634) (63,578) (74,136) Allowance for loan losses (19,902) (15,098) (17,817) -------- -------- -------- Loans receivable, net 230,949 188,077 208,798 Property and equipment, net 9,088 8,298 7,592 Intangible assets 13,906 14,599 15,097 Other assets 13,276 13,321 12,609 -------- -------- -------- $269,910 $228,317 $247,800 ======== ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable 124,632 102,532 136,132 Accounts payable and accrued expenses 4,620 9,744 6,895 -------- -------- -------- Total liabilities 129,252 112,276 143,027 Shareholders' equity 140,658 116,041 104,773 -------- -------- -------- $269,910 $228,317 $247,800 ======== ======== ======== Selected Consolidated Statistics (dollars in thousands) Three Months Ended Nine Months Ended Dec. 31, Dec. 31, ------------------ ------------------ 2003 2002 2003 2002 -------- -------- -------- -------- Expenses as a percent of total revenues: Provision for loan losses 25.0% 26.2% 22.4% 22.0% General and administrative expenses 56.6% 57.5% 55.2% 57.1% Interest expense 2.3% 3.0% 2.3% 3.1% Average gross loans receivable $301,080 $270,482 $285,953 $252,867 Average loans receivable $226,995 $203,828 $216,251 $191,320 Loan volume $269,913 $232,902 $687,664 $600,755 Net charge-offs as percent of average loans 15.7% 15.3% 15.0% 14.5% Return on average assets 7.3% 5.8% 9.0% 7.7% Return on average equity 13.5% 12.9% 17.0% 16.9% Offices opened (closed) during the period, net 30 9 46 29 Offices open at end of period 516 470 516 470 SOURCE World Acceptance Corporation -0- 01/20/2004 /CONTACT: Sandy McLean, Chief Financial Officer of World Acceptance Corporation, +1-864-298-9800/ /Audio: http://www.firstcallevents.com/service/ajwz396835455gf12.html/ (WRLD) CO: World Acceptance Corporation ST: South Carolina IN: FIN SU: ERN CCA MAV