EX-99.1 2 e17621ex99_1.txt PRESS RELEASE Exhibit 99.1 World Acceptance Corporation Reports Record Fourth Quarter GREENVILLE, S.C., April 27 /PRNewswire-FirstCall/ -- World Acceptance Corporation (Nasdaq: WRLD) today reported strong growth in revenue and record net income for its fourth fiscal quarter and year ended March 31, 2004. "Revenues for the fourth quarter rose 15.9% to $52.9 million due to increased loan volume, higher fees generated from tax preparation services and more offices in operations," stated Douglas R. Jones, President and CEO of World Acceptance Corporation. "Our record net income of $12.4 million, or $0.63 per diluted share, in the fourth quarter benefited from our revenue growth, combined with lower interest rates and lower net charge-offs as a percentage of average loans. Our fourth quarter is the most profitable for the Company because customer balances are typically at their highest level following the Christmas season, customer repayments increase due to factors such as income tax refunds, and fees generated from our tax preparation services are at seasonal high during the key tax filing months of January through March." Net income for the fourth quarter rose 21.8% to $12.4 million, or $0.63 per diluted share, compared with $10.2 million, or $0.57 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 15.9% to $52.9 million from $45.7 million for the prior year quarter. Gross loans outstanding amounted to $310.1 million at March 31, 2004, a 16.3% increase over the $266.8 million in balances outstanding at March 31, 2003. Several key return ratios remained very high during the quarter. The Company's return on average assets (annualized) was 18.7% and the annualized return on average equity was 33.5%. Total general and administrative expenses as a percent of total revenues increased slightly to 50.3% during the most recent quarter compared to 50.2% during the prior year fourth quarter. "We continue to work on improving loan quality," continued Mr. Jones. "We had solid progress in this area as evidenced by the decrease in our ratio of net charge-offs as a percentage of average net loans to 13.6% in the current quarter from 14.4% during the fourth quarter ended March 31, 2003." Twelve-Month Results For the fiscal year, net income was $28.8 million, or $1.49 per diluted share, representing a 25.8% increase over the $22.9 million, or $1.25 per diluted share, for the prior fiscal year. Total revenues for fiscal 2004 were $179.2 million, a 15.1% increase over the $155.7 million during the previous year. During the 2004 fiscal year, the Company opened or acquired 60 offices and closed four non-performing offices, leaving a total of 526 offices at March 31, 2004. About World Acceptance World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 526 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. Fourth 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 1-877-375-2162. A simulcast of the conference call is also available on the Internet at www.firstcallevents.com/service/ajwz403812925gf12.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 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 Years Ended March 31, March 31, 2004 2003 2004 2003 Interest & fees $42,470 37,476 151,499 133,256 Insurance & other 10,458 8,195 27,653 22,415 Total revenues 52,928 45,671 179,152 155,671 Expenses: Provision for loan losses 5,147 5,393 33,481 29,570 General and administrative expenses Personnel 18,137 15,463 62,696 55,538 Occupancy & equipment 2,860 2,460 10,183 9,027 Data processing 563 450 1,956 1,766 Advertising 1,219 890 7,093 5,755 Intangible amortization 573 556 2,265 2,172 Other 3,284 3,096 12,120 11,499 26,636 22,915 96,313 85,757 Interest expense 1,026 1,116 3,943 4,493 Total expenses 32,809 29,424 133,737 119,820 Income before taxes 20,119 16,247 45,415 35,851 Income taxes 7,670 6,028 16,650 12,987 Net income $12,449 10,219 28,765 22,864 Diluted earnings per share $0.63 0.57 1.49 1.25 Diluted weighted average shares outstanding 19,773 18,047 19,347 18,305 Consolidated Balance Sheets (unaudited and in thousands) March 31, March 31, 2004 2003 ASSETS Cash $4,314 4,022 Gross loans receivable 310,131 266,753 Less: Unearned interest & fees (73,603) (63,578) Allowance for loan losses (17,261) (15,098) Loans receivable, net 219,267 188,077 Property and equipment, net 9,274 8,298 Intangible assets 15,514 14,599 Other assets 13,600 13,321 $261,969 228,317 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable 95,032 102,532 Accounts payable and accrued expenses 10,357 9,744 Total liabilities 105,389 112,276 Shareholders' equity 156,580 116,041 $261,969 228,317 Selected Consolidated Statistics (dollars in thousands) Three Months Ended Years Ended March 31, March 31, 2004 2003 2004 2003 Expenses as a percent of total revenues: Provision for loan losses 9.7% 11.8% 18.7% 19.0% General and administrative expenses 50.3% 50.2% 53.8% 55.1% Interest expense 1.9% 2.4% 2.2% 2.9% Average gross loans receivable $318,094 $280,203 $292,110 $257,595 Average loans receivable $241,116 $212,584 $221,240 $195,148 Loan volume $190,385 $163,056 $878,049 $763,810 Net charge-offs as percent of average loans 13.6% 14.4% 14.7% 14.6% Return on average assets 18.7% 17.2% 11.7% 10.4% Return on average equity 33.5% 37.0% 21.5% 22.2% Offices opened (closed) during the period, net 10 0 56 29 Offices open at end of period 526 470 526 470 SOURCE World Acceptance Corporation -0- 04/27/2004 /CONTACT: Sandy McLean, Chief Financial Officer of World Acceptance Corporation, +1-864-298-9800/ /Web site: www.firstcallevents.com/service/ajwz403812925gf12.html / (WRLD) CO: World Acceptance Corporation ST: South Carolina IN: FIN SU: ERN