EX-99.1 2 v072677_ex99-1.txt EXHIBIT 99.1 World Acceptance Corporation Reports Record Fourth Quarter Results GREENVILLE, S.C., April 26 /PRNewswire-FirstCall/ -- World Acceptance Corporation (Nasdaq: WRLD) today reported record financial results for its fourth fiscal quarter and fiscal year ended March 31, 2007. "Our record results benefited from the large seasonal loan growth we booked in the third quarter and the increased demand for our tax preparation services in the fourth quarter," stated Sandy McLean, CEO of World Acceptance Corporation. "Fourth quarter loan volume was up almost 20% to $316 million compared with the fourth quarter of last year, contributing to the 16% increase in net income to $21 million, our most profitable quarter of the year." Fourth Quarter Results Net income for the fourth quarter rose 16.3% to $21.0 million compared with $18.1 million for the same quarter of the prior year. Net income per diluted share increased 21.9% to $1.17 compared with $0.96 for the prior year quarter. Growth in per share income for the quarter and year ended March 31, 2007, benefited from the Company's repurchase of approximately 1.2 million shares during the year. Total revenues increased to $87.2 million, an 18.7% increase over the $73.4 million for the quarter ended March 31, 2006. Gross loans outstanding were $505.8 million at March 31, 2007, a 21.5% increase over the $416.3 million at March 31, 2006. Loan volume increased 19.8% from $263.8 million in the fourth quarter 2006 to $316.0 in the fourth quarter 2007. Total general and administrative expenses as a percent of total revenues were 48.2%, a decrease from the 48.6% during the fourth quarter of the prior fiscal year. Net charge-offs as a percent of average net loans on an annualized basis increased slightly to 11.8% during the quarter from 11.6% during the prior year quarter. Year-End Results For the year ended March 31, 2007, net income rose 24.4% to $47.9 million compared with $38.5 million in the prior fiscal year. Net income per diluted share rose 28.7% to $2.60, compared with $2.02, for the prior year fiscal period. Total revenues for fiscal 2007 were $292.3 million, a 20.2% increase over the $243.3 million during the previous year. Net charge-offs as a percent of average net loans were 13.3% compared with 14.8% during the prior year. Key return ratios for the fiscal year included a 12.5% return on average assets and a 22.2% return on average equity. During the fiscal year, the Company opened 68 offices, acquired 50 offices and merged or closed 6 offices, leaving a total of 732 offices at March 31, 2007. About World Acceptance Corporation World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 732 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. 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 10:00 a.m. Eastern time today. Interested parties may participate in this call by dialing 1-800-289-0518. A simulcast of the conference call is also available on the Internet at www.streetevents.com and www.investorcalendar.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 Year Ended March 31, March 31, 2007 2006 2007 2006 Interest & fees $70,212 $58,728 $247,007 $204,450 Insurance & other 16,958 14,713 45,311 38,822 Total revenues 87,170 73,441 292,318 243,272 Expenses: Provision for loan losses 8,580 6,629 51,925 46,026 General and administrative expenses Personnel 29,781 25,317 102,825 84,817 Occupancy & equipment 4,628 3,762 17,398 14,167 Data processing 539 584 2,160 2,109 Advertising 1,860 1,330 10,278 8,592 Intangible amortization 666 736 2,885 2,861 Other 4,557 3,999 18,081 15,968 42,031 35,728 153,627 128,514 Interest expense 2,602 2,066 9,596 7,137 Total expenses 53,213 44,423 215,148 181,677 Income before taxes 33,957 29,018 77,170 61,595 Income taxes 12,919 10,930 29,274 23,080 Net income $21,038 $18,088 $47,896 $38,515 Diluted earnings per share $1.17 $0.96 $2.60 $2.02 Diluted weighted average shares outstanding 17,917 18,872 18,387 19,098 Consolidated Balance Sheets (unaudited and in thousands) March 31, March 31, 2007 2006 ASSETS Cash $5,779 $4,034 Gross loans receivable 505,788 416,302 Less: Unearned interest & fees (127,750) (103,556) Allowance for loan losses (27,840) (22,717) Loans receivable, net 350,198 290,029 Property and equipment, net 14,310 11,040 Deferred tax benefit 14,507 3,898 Goodwill 5,040 4,715 Intangibles 10,222 12,146 Other assets 11,060 6,922 $411,116 $332,784 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable 171,200 100,600 Income tax payable 8,016 6,778 Accounts payable and accrued expenses 16,408 14,976 Total liabilities 195,624 122,354 Shareholders' equity 215,492 210,430 411,116 332,784 Selected Consolidated Statistics (dollars in thousands) Three Months Ended Year ended March 31, March 31, 2007 2006 2007 2006 Expenses as a percent of total revenues: Provision for loan losses 9.8% 9.0% 17.8% 18.9% General and administrative expenses 48.2% 48.6% 52.6% 52.8% Interest expense 3.0% 2.8% 3.3% 2.9% Average gross loans receivable $525,565 $432,065 $480,835 $396,582 Average net loans receivable $392,579 $324,069 $358,647 $298,267 Loan volume $316,005 $263,806 $1,444,265 $1,218,131 Net charge-offs as percent of average loans 11.8% 11.6% 13.3% 14.8% Return on average assets 19.6% 20.8% 12.5% 11.9% Return on average equity 41.1% 35.9% 22.2% 19.9% Offices opened (closed) during the period, net 1 1 112 41 Offices open at end of period 732 620 732 620 SOURCE World Acceptance Corporation -0- 04/26/2007 /CONTACT: Kelly Malson Snape, Chief Financial Officer of World Acceptance Corporation, +1-864-298-9800/ /Web sites: http://www.streetevents.com http://www.investorcalendar.com /