EX-99.1 2 a4684514ex991.txt WORLD ACCEPTANCE CORPORATION EXHIBIT 99.1 Exhibit 99.1 World Acceptance Corporation Reports Record First Quarter Results GREENVILLE, S.C.--(BUSINESS WIRE)--July 21, 2004--World Acceptance Corporation (Nasdaq/NM:WRLD) today reported record revenue, net income and loans for its first fiscal quarter ended June 30, 2004. Net income for the first quarter rose 29.5% to $7.3 million, or $.37 per diluted share, compared to $5.6 million, or $.30 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 17.9% to $47.5 million from $40.3 million for the prior year quarter. Gross loans outstanding increased to $334.6 million at June 30, 2004, a 19.6% increase over the $279.8 million in balances outstanding at June 30, 2003, and a 7.9% 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 D.R. Jones, President 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 decreased from both the prior quarter and from the same quarter of the prior fiscal year." Interest expense decreased by 0.2% when compared to the first quarter of last year while average total debt outstanding increased 2.3% over the two quarterly periods. Net charge-offs as a percent of average net loans were 12.5% on an annualized basis for the quarter ended June 30, 2004, compared with 13.4% for the quarter ended June 30, 2003. Total general and administrative expenses as a percent of total revenues continued its year over year improvement to 55.6% during the most recent quarter compared to 56.2% during the prior year quarter. Operating income (revenues less the provision for loan losses and general and administrative expenses) increased 28.3% to $12.4 million during the most recent quarter from $9.7 million in the prior year quarter. Return on average assets (annualized) increased to 10.8% in the first quarter compared with 9.7% in the same quarter last year. Annualized return on average equity remained high at 18.6%, slightly down from the first quarter of the prior year. During the first three months of the fiscal year, the Company opened or acquired 19 offices and closed one non-performing office, leaving a total of 544 offices at June 30, 2004. World Acceptance had 15% more offices in operation at the end of the first quarter of fiscal 2004 than at the same point of the prior year. World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 544 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 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 Condensed Consolidated Statements of Operations (unaudited and in thousands, except per share amounts) Three Months Ended June 30, 2004 2003 -------- -------- Interest & fees $40,600 $34,405 Insurance & other 6,878 5,858 -------- -------- Total revenues 47,478 40,263 Expenses: Provision for loan losses 8,627 7,929 General and administrative expenses Personnel 17,706 15,350 Occupancy & equipment 2,915 2,302 Data processing 468 477 Advertising 1,580 1,283 Intangible amortization 631 555 Other 3,119 2,676 -------- -------- 26,419 22,643 Interest expense 989 991 -------- -------- Total expenses 36,035 31,563 -------- -------- Income before taxes 11,443 8,700 Income taxes 4,177 3,089 -------- -------- Net income $7,266 $5,611 ======== ======== Diluted earnings per share $0.37 $0.30 ======== ======== Weighted average shares outstanding (diluted) 19,489 18,760 ======== ======== Condensed Consolidated Balance Sheets (unaudited and in thousands) June 30, March 31, June 30, 2004 2004 2003 -------- -------- -------- ASSETS Cash $2,792 $4,314 $4,363 Gross loans receivable 334,567 310,131 279,805 Less: Unearned interest & fees (80,483) (73,603) (68,117) Allowance for loan losses (18,645) (17,261) (16,248) -------- -------- -------- Loans receivable, net 235,439 219,267 195,440 Property and equipment, net 9,406 9,274 8,348 Intangible assets 16,020 15,514 14,442 Other assets 14,727 13,600 12,767 -------- -------- -------- $278,384 $261,969 $235,360 ======== ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable 110,732 95,032 102,732 Income tax payable 3,354 383 2,405 Accounts payable and accrued expenses 7,672 9,974 6,563 -------- -------- -------- Total liabilities 121,758 105,389 111,700 Shareholders' equity 156,626 156,580 123,660 -------- -------- -------- $278,384 $261,969 $235,360 ======== ======== ======== Selected Consolidated Statistics (dollars in thousands) Three Months Ended June 30, 2004 2003 -------- -------- Expenses as a percent of total revenues: Provision for loan losses 18.2% 19.7% General and administrative expenses 55.6% 56.2% Interest expense 2.1% 2.5% Average gross loans receivable $323,137 $272,048 Average loans receivable $246,024 $206,427 Loan volume $251,242 $208,743 Net charge-offs as percent of average loans 12.5% 13.4% Return on average assets 10.8% 9.7% Return on average equity 18.6% 18.7% Offices opened (closed) during the period, net 18 2 Offices open at end of period 544 472 CONTACT: World Acceptance Corporation Sandy McLean, 864-298-9800