-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GhsGkxnprtl0jOXLsBTL3pG8eZp7xcrqHxryVgOKHdJ26rPzKhpdd+vN2MqBZuhn rsE7kuAFwlVmAkuQa37jhA== 0001275287-06-002126.txt : 20060425 0001275287-06-002126.hdr.sgml : 20060425 20060425093253 ACCESSION NUMBER: 0001275287-06-002126 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060425 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060425 DATE AS OF CHANGE: 20060425 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WORLD ACCEPTANCE CORP CENTRAL INDEX KEY: 0000108385 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 570425114 STATE OF INCORPORATION: SC FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19599 FILM NUMBER: 06776734 BUSINESS ADDRESS: STREET 1: 108 FREDRICK STREET CITY: GREENVILLE STATE: SC ZIP: 29607 BUSINESS PHONE: 8642989800 MAIL ADDRESS: STREET 1: P O BOX 6429 CITY: GREENVILLE STATE: SC ZIP: 29606 FORMER COMPANY: FORMER CONFORMED NAME: WORLD FINANCE CORP DATE OF NAME CHANGE: 19700210 8-K 1 wa5512.txt FORM 8-K ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported) April 25, 2006 WORLD ACCEPTANCE CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) South Carolina 0-19599 57-0425114 ---------------------------- ------------- ------------------ (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 108 Frederick Street, Greenville, South Carolina 29607 ------------------------------------------------ ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (864) 298-9800 n/a -------------------------------------------------------------- (Former name or former address, if changed since last report.) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION; AND ITEM 7.01 REGULATION FD DISCLOSURE. On April 25, 2006, World Acceptance Corporation ("WRLD") issued a press release announcing financial information for its fourth fiscal quarter and year ended March 31, 2006. The press release is attached as Exhibit 99.1 to this Form 8-K and is furnished to, but not filed with, the Commission. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (d) Exhibits. Exhibit Number Description of Exhibit -------------- ----------------------------------- 99.1 Press release issued April 25, 2006 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WORLD ACCEPTANCE CORPORATION --------------------------------- (Registrant) Date: April 25, 2006 By: /s/ A. Alexander McLean, III ---------------------------- A. Alexander McLean, III Chief Executive Officer EXHIBIT INDEX Exhibit Description - ------- ---------------------------------- 99.1 Press Release dated April 25, 2006 EX-99.1 2 wa5512ex991.txt EXHIBIT 99.1 Exhibit 99.1 Contact: Sandy McLean Chief Executive Officer (864) 298-9800 WORLD ACCEPTANCE CORPORATION REPORTS RECORD FOURTH QUARTER RESULTS GREENVILLE, S.C. (April 25, 2006) - World Acceptance Corporation (Nasdaq/NM:WRLD) today reported record revenue and net income for its fourth fiscal quarter and year ended March 31, 2006. Net income for the fourth quarter rose 26.3% to $18.1 million, or $.96 per diluted share, compared with $14.3 million, or $.73 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 21.7% to $73.4 million from $60.4 million for the prior year quarter. Gross loans outstanding amounted to $416.3 million at March 31, 2006, an 18.4% increase over the $351.5 million in balances outstanding at March 31, 2005. "Our record results were due to strong loan growth, a lower provision for loan losses as a percent of total revenues and improved operating margins," stated Sandy McLean, CEO. "Loan demand was very strong in the third fiscal quarter and carried over through year end. In addition, we have experienced a drop in delinquencies and net charge offs since the third quarter that have had a positive effect on our provision for loan losses compared with earlier in the year. Additionally, fees generated from our tax preparation business enhanced our fourth quarter earnings and rose by 11.3% from the prior year quarter." Several key ratios remained very good during the quarter: total general and administrative expenses as a percent of total revenues improved to 48.6% during the most recent quarter compared to 49.4% during the prior year quarter; and net charge-offs as a percent of average net loans (annualized) decreased to 11.6% during the quarter from 13.9% for the quarter ended March 31, 2005. McLean further stated, "We believe the current positive trends in loan demand and declining delinquencies position us well for excellent results in the coming year. Our loan growth rose 18.4% in fiscal 2006 due to increased demand and the contribution of new offices opened since the prior year. This compares with loan growth of 13.3% in fiscal 2005." Twelve-Month Results For the fiscal year ended March 31, 2006, net income was $38.5 million, or $2.02 per diluted share, representing a 13.3% increase over the $34.0 million, or $1.74 per diluted share for the prior fiscal year. Total revenues for fiscal 2006 were $243.3 million, a 15.4% increase over the $210.8 million during the previous fiscal year. Key ratios were also excellent for the fiscal year with a return on assets of 11.9%, a return on equity of 19.9%, general and administrative expenses as a percent of total revenue of 52.8% (compared with 53.2% for fiscal 2005), and net charge-offs as a percent of average net loans of 14.8% (compared with 14.6% for fiscal 2005). During the fiscal year, the Company opened or acquired 47 offices and closed six non-performing offices, leaving a total of 620 offices at March 31, 2006. About World Acceptance World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 620 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 10:30 A.M. Eastern today. Interested parties may participate in this call by dialing 1-866-814-8482. A simulcast of the conference call is also available on the Internet at www.streetevents.com and www.vcall.com. The call will be available for replay on the Internet for approximately 30 days. This press release contains 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. Specifically, the statements in the fifth paragraph of this press release that express the Company's expectations about excellent results in the coming year based on the continuation of current positive trends in loan demand and delinquencies are forward-looking statements. Any such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company's actual performance, growth, financial results, financial condition or expansion plans may vary materially from those anticipated, estimated or expected. Among the key factors that could cause actual outcomes to differ from the expectations expressed or implied in such forward-looking statements are the following: changes in interest rates, risks inherent in making loans, including repayment risks and value of collateral; recently-enacted, proposed or future legislation; 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 general changes in the economy (particularly in the markets served by the Company); and other matters discussed from time to time in the Company's reports on Forms 10-K, 10-Q and 8-K filed with, or furnished to, the Securities and Exchange Commission. World Acceptance Corporation is not responsible for updating the information contained in this press release beyond the publication date, nor 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, ----------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Interest & fees $ 58,728 $ 47,460 $ 204,450 $ 177,582 Insurance & other 14,713 12,900 38,822 33,176 ---------- ---------- ---------- ---------- Total revenues 73,441 60,360 243,272 210,758 Expenses: Provision for loan losses 6,629 6,397 46,026 40,037 General and administrative expenses Personnel 25,317 20,169 84,817 73,361 Occupancy & equipment 3,762 3,283 14,167 12,431 Data processing 584 501 2,109 1,910 Advertising 1,330 1,316 8,592 7,792 Intangible amortization 736 670 2,861 2,585 Other 3,999 3,874 15,968 14,144 ---------- ---------- ---------- ---------- 35,728 29,813 128,514 112,223 Interest expense 2,067 1,269 7,137 4,640 ---------- ---------- ---------- ---------- Total expenses 44,424 37,479 181,677 156,900 ---------- ---------- ---------- ---------- Income before taxes 29,017 22,881 61,595 53,858 Income taxes 10,930 8,563 23,080 19,868 ---------- ---------- ---------- ---------- Net income $ 18,087 $ 14,318 $ 38,515 $ 33,990 ========== ========== ========== ========== Diluted earnings per share $ 0.96 $ 0.73 $ 2.02 $ 1.74 ========== ========== ========== ========== Diluted weighted average shares outstanding 18,872 19,708 19,098 19,558 ========== ========== ========== ==========
Consolidated Balance Sheets (unaudited and in thousands) March 31, March 31, 2006 2005 ------------ ------------ ASSETS Cash $ 4,034 $ 3,047 Gross loans receivable 416,302 351,496 Less: Unearned interest & fees (103,556) (84,472) Allowance for loan losses (22,717) (20,673) ------------ ------------ Loans receivable, net 290,029 246,351 Property and equipment, net 11,040 9,806 Deferred tax benefit 3,400 10,690 Intangible assets 16,861 17,358 Other assets 6,922 6,254 ------------ ------------ $ 332,286 $ 293,506 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable $ 100,600 $ 83,900 Accounts payable and accrued expenses 21,256 19,895 ------------ ------------ Total liabilities 121,856 103,795 Shareholders' equity 210,430 189,711 ------------ ------------ $ 332,286 $ 293,506 ============ ============ Selected Consolidated Statistics (dollars in thousands)
Three Months Ended Year Ended March 31, March 31, ----------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Expenses as a percent of total revenues: Provision for loan losses 9.0% 10.6% 18.9% 19.0% General and administrative expenses 48.6% 49.4% 52.8% 53.2% Interest expense 2.8% 2.1% 2.9% 2.2% Average gross loans receivable $ 432,065 $ 359,465 $ 396,582 $ 344,133 Average loans receivable $ 324,069 $ 272,161 $ 298,267 $ 261,187 Loan volume $ 263,806 $ 219,496 $1,218,131 $1,028,670 Net charge-offs as percent of average loans 11.6% 13.9% 14.8% 14.6% Return on average assets 20.8% 18.8% 11.9% 11.8% Return on average equity 35.9% 31.3% 19.9% 20.1% Offices opened (closed) during the period, net 1 1 41 53 Offices open at end of period 620 579 620 579
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