-----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, MVxrvkZWs5xZljZN9UmLVUrSsLedD9k/PaNFeHtdMijaY8vUcDy3RShCVqGiWm8c 2jPQUkISPm34e4ZXvdpvFw== 0001275287-06-005355.txt : 20061024 0001275287-06-005355.hdr.sgml : 20061024 20061024091441 ACCESSION NUMBER: 0001275287-06-005355 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061024 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061024 DATE AS OF CHANGE: 20061024 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: 061159017 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 wc7572.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) October 24, 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 October 24, 2006, World Acceptance Corporation ("WRLD") issued a press release announcing financial information for its second fiscal quarter ended September 30, 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 October 24, 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: October 24, 2006 By: /s/ Kelly Malson Snape -------------------------- Kelly Malson Snape Vice President & Chief Financial Officer EXHIBIT INDEX Exhibit Description - ------- ------------------------------------ 99.1 Press Release dated October 24, 2006 EX-99.1 2 wc7572ex991.txt EXHIBIT 99.1 Exhibit 99.1 WORLD ACCEPTANCE CORPORATION REPORTS RECORD SECOND QUARTER RESULTS GREENVILLE, S.C., Oct. 24 /PRNewswire-FirstCall/ -- World Acceptance Corporation (Nasdaq: WRLD) today reported record financial results for its second fiscal quarter ended September 30, 2006. Net income for the second quarter rose 32.7% to $9.9 million, or $.52 per diluted share, compared with $7.4 million, or $.39 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 18.4% to $67.2 million from $56.7 million for the prior year quarter. "Our strong earnings benefited from excellent loan growth, lower charge-offs and continued improvement in expense ratios compared with last year's second quarter," stated Sandy McLean, CEO of World Acceptance Corporation. "Gross loans outstanding rose 18.9% to $470.3 million at September 30, 2006 due to strong internal growth, including our successful expansion into Mexico. At the end of the second quarter, we had eight offices open in Mexico with loans outstanding of $3.6 million." Key return ratios for the second quarter included a 10.9% return on average assets (annualized) and an annualized return on average equity of 17.3%. Total general and administrative expenses as a percent of total revenues were 52.5%, a decrease from the 53.1% during the second quarter of the prior fiscal year. Net charge-offs as a percent of average net loans on an annualized basis decreased to 14.0% during the quarter from 16.1% during the prior year quarter. Six-Month Results For the first six months of the fiscal year, net income was $19.8 million, or $1.06 per diluted share representing a 34.6% increase over the $14.7 million, or $.76 per diluted share for the prior year six-month period. Total revenues for the first six months of fiscal 2006 were $131.0 million, a 20.8% increase over the $108.5 million during the corresponding period of the previous year. Net charge-offs as a percent of average net loans were 12.8% compared to 15.0% during the prior year six-month period. During the first six months of the fiscal year, the Company opened 67 offices, acquired four offices and closed four non-performing offices, leaving a total of 678 offices at September 30, 2006. About World Acceptance World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 678 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. Second 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 1-866-882-0694. A simulcast of the conference call is also available on the Internet at http://www.streetevents.com and http://www.vcall.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 Six Months Ended September 30, September 30, ----------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Interest & fees $ 58,750 $ 48,744 $ 113,286 $ 93,343 Insurance & other 8,458 8,000 17,759 15,169 ---------- ---------- ---------- ---------- Total revenues 67,208 56,744 131,045 108,512 Expenses: Provision for loan losses 13,813 13,131 24,980 22,671 General and administrative expenses Personnel 23,673 19,633 47,266 39,215 Occupancy & equipment 4,412 3,580 8,328 6,765 Data processing 555 512 1,050 1,013 Advertising 1,794 1,641 3,683 3,298 Intangible amortization 745 730 1,538 1,416 Other 4,110 4,034 8,271 7,664 ---------- ---------- ---------- ---------- 35,289 30,130 70,136 59,371 Interest expense 2,270 1,622 4,171 2,928 ---------- ---------- ---------- ---------- Total expenses 51,372 44,883 99,287 84,970 ---------- ---------- ---------- ---------- Income before taxes 15,836 11,861 31,758 23,542 Income taxes 5,975 4,432 11,910 8,800 ---------- ---------- ---------- ---------- Net income $ 9,861 $ 7,429 $ 19,848 $ 14,742 ========== ========== ========== ========== Diluted earnings per share $ 0.52 $ 0.39 $ 1.06 $ 0.76 ========== ========== ========== ========== Diluted weighted average shares outstanding 18,937 19,147 18,784 19,312 ========== ========== ========== ==========
Consolidated Balance Sheets (unaudited and in thousands)
September 30, March 31, September 30, 2006 2006 2005 ------------- ------------- ------------- ASSETS Cash $ 6,601 $ 4,034 $ 4,243 Gross loans receivable 470,275 416,302 395,578 Less: Unearned interest & fees (120,314) (103,556) (99,169) Allowance for loan losses (26,549) (22,717) (22,223) ------------- ------------- ------------- Loans receivable, net 323,412 290,029 274,186 Property and equipment, net 13,073 11,040 10,738 Deferred tax benefit 3,971 3,898 10,690 Goodwill 4,936 4,715 4,563 Intangibles 10,928 12,146 12,554 Other assets 8,644 6,922 5,986 ------------- ------------- ------------- $ 371,565 $ 332,784 $ 322,960 ============= ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable 123,200 100,600 122,400 Income tax payable 1,055 6,778 5,479 Accounts payable and accrued expenses 13,290 14,976 9,589 ------------- ------------- ------------- Total liabilities 137,545 122,354 137,468 Shareholders' equity 234,020 210,430 185,492 ------------- ------------- ------------- $ 371,565 $ 332,784 $ 322,960 ============= ============= =============
Selected Consolidated Statistics (dollars in thousands)
Three Months Ended Six Months Ended September 30, September 30, ----------------------- ----------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Expenses as a percent of total revenues: Provision for loan losses 20.6% 23.1% 19.1% 20.9% General and administrative expenses 52.5% 53.1% 53.5% 54.7% Interest expense 3.4% 2.9% 3.2% 2.7% Average gross loans receivable $ 462,233 $ 381,910 $ 447,060 $ 370,965 Average loans receivable $ 343,980 $ 287,133 $ 333,551 $ 279,824 Loan volume $ 348,061 $ 305,361 $ 689,894 $ 587,329 Net charge-offs as percent of average loans 14.0% 16.1% 12.8% 15.0% Return on average assets 10.9% 9.5% 11.3% 9.6% Return on average equity 17.3% 15.8% 17.8% 15.6% Offices opened (closed) during the period, net 37 28 58 32 Offices open at end of period 678 611 678 611
SOURCE World Acceptance Corporation -0- 10/24/2006 /CONTACT: Sandy McLean, Chief Executive Officer of World Acceptance Corporation, +1-864-298-9800 / -----END PRIVACY-ENHANCED MESSAGE-----