EX-99.1 2 a4805229ex991.txt PRESS RELEASE Exhibit 99.1 World Acceptance Corporation Reports Record Third Quarter Results GREENVILLE, S.C.--(BUSINESS WIRE)--Jan. 24, 2005--World Acceptance Corporation (NASDAQ/NM:WRLD) today reported higher revenue, higher net income and increased loans outstanding for its third fiscal quarter ended December 31, 2004. Net income for the third quarter rose 19.5% to $5.5 million, or $0.28 per diluted share, compared with $4.6 million, or $0.23 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 20.1% to $53.2 million from $44.3 million for the prior year quarter. "Our record revenues and earnings for the third quarter were due to a continuation of the trends that we experienced during the first two quarters," stated Doug Jones, President and CEO of World Acceptance Corporation. "The third quarter is seasonally our busiest quarter and we loaned a record $307 million in 401,000 separate loan transactions. We added $35.3 million in gross loans outstanding during the third quarter, a 10.1% increase from the balances outstanding at September 30, 2004. We believe our continued growth is indicative of the increased demand for our loan products." Gross loans outstanding increased to a record $384.7 million at December 31, 2004, a 15.0% increase over the $334.5 million in loans outstanding at December 31, 2003, and a 24.0% increase since the beginning of the fiscal year. Loan growth for the third quarter included $495,000 in loans acquired during the quarter compared with $6.9 million in acquisitions in the third quarter of fiscal 2004. Several key ratios remained very high during the quarter. The return on average assets (annualized) amounted to 7.3% and the annualized return on average equity was 12.8%. Total general and administrative expenses as a percent of total revenues once again showed improvement on a year-over-year basis at 55.4% during the most recent quarter compared with 56.6% during the prior year quarter. Nine-Month Results For the first nine months of the fiscal year, net income rose to $19.7 million, or $1.01 per diluted share, representing a 20.6% increase over the $16.3 million, or $0.85 per diluted share, for the prior year nine-month period. Total revenues for the first nine months of fiscal 2005 were $150.4 million, a 19.2% increase over the $126.2 million during the corresponding period of the previous year. During the first nine months of the fiscal year, the Company opened or acquired 55 offices and closed three non-performing offices, leaving a total of 578 offices at December 31, 2004. About World Acceptance World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 578 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 review the Company's third quarter 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 1-800-473-6123. A simulcast of the conference call is also available on the Internet at: http://phx.corporate-ir.net/playerlink.zhtml?c=103383&s=wm&e=998669. 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 reports on Form 10-K, 10-Q and 8-K as filed 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, 2004 2003 2004 2003 -------- -------- -------- -------- Interest & fees $46,043 $38,075 $130,122 $109,030 Insurance & other 7,123 6,210 20,276 17,195 -------- -------- -------- -------- Total revenues 53,166 44,285 150,398 126,225 Expenses: Provision for loan losses 13,731 11,077 33,640 28,334 General and administrative expenses Personnel 18,008 14,699 53,192 44,560 Occupancy & equipment 3,121 2,579 9,147 7,323 Data processing 542 470 1,410 1,393 Advertising 3,527 3,420 6,476 5,874 Intangible amortization 650 570 1,915 1,692 Other 3,612 3,336 10,270 8,836 -------- -------- -------- -------- 29,460 25,074 82,410 69,678 Interest expense 1,314 997 3,371 2,916 -------- -------- -------- -------- Total expenses 44,505 37,148 119,421 100,928 -------- -------- -------- -------- Income before taxes 8,661 7,137 30,977 25,297 Income taxes 3,160 2,533 11,305 8,980 -------- -------- -------- -------- Net income $5,501 $4,604 $19,672 $16,317 ======== ======== ======== ======== Diluted earnings per share $0.28 $0.23 $1.01 $0.85 ======== ======== ======== ======== Diluted weighted average shares outstanding 19,604 19,692 19,508 19,205 ======== ======== ======== ======== Consolidated Balance Sheets (unaudited and in thousands) Dec. 31, Mar. 31, Dec. 31, 2004 2004 2003 -------- -------- -------- ASSETS Cash $ 5,192 $4,314 $2,691 Gross loans receivable 384,715 310,131 334,485 Less: Unearned interest & fees (95,073) (73,603) (83,634) Allowance for loan losses (23,184) (17,261) (19,902) -------- -------- -------- Loans receivable, net 266,458 219,267 230,949 Property and equipment, net 9,917 9,274 9,088 Intangible assets 17,021 15,514 13,906 Other assets 15,588 13,600 13,276 -------- -------- -------- $314,176 $261,969 $269,910 ======== ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable 132,850 95,032 124,632 Accounts payable and accrued expenses 5,675 10,357 4,620 -------- -------- -------- Total liabilities 138,525 105,389 129,252 Shareholders' equity 175,651 156,580 140,658 -------- -------- -------- $314,176 $261,969 $269,910 ======== ======== ======== Selected Consolidated Statistics (dollars in thousands) Three Months Ended Nine Months Ended Dec. 31, Dec. 31, 2004 2003 2004 2003 -------- -------- -------- -------- Expenses as a percent of total revenues: Provision for loan losses 25.8% 25.0% 22.4% 22.4% General and administrative expenses 55.4% 56.6% 54.8% 55.2% Interest expense 2.5% 2.3% 2.2% 2.3% Average gross loans receivable $362,173 $301,080 $342,059 $285,953 Average loans receivable $274,217 $226,995 $259,643 $216,251 Loan volume $306,902 $269,913 $809,174 $687,664 Net charge-offs as percent of average loans 15.9% 15.7% 14.7% 15.0% Return on average assets 7.3% 7.3% 9.2% 9.0% Return on average equity 12.8% 13.5% 16.0% 17.0% Offices opened (closed) during the period, net 3 30 52 46 Offices open at end of period 578 516 578 516 CONTACT: World Acceptance Corporation, Greenville Sandy McLean, 864-298-9800