EX-99.1 2 wa8647ex991.txt EXHIBIT 99.1 Exhibit 99.1 WORLD ACCEPTANCE CORPORATION REPORTS RECORD THIRD QUARTER RESULTS GREENVILLE, S.C., Jan. 25 /PRNewswire-FirstCall/ -- World Acceptance Corporation (Nasdaq: WRLD) today reported record financial results for its third fiscal quarter ended December 31, 2006. Net income for the third quarter rose 23.3% to $7.0 million compared with $5.7 million for the same quarter of the prior year. Net income per diluted share increased 30% to $0.39 compared with $0.30 for the same quarter of prior year. Total revenues for the quarter increased 20.8% to $74.1 million from $61.3 million for the prior year quarter. "Our record third quarter results benefited from strong loan demand during the quarter," stated Sandy McLean, CEO of World Acceptance Corporation. "Our third quarter is traditionally our busiest in terms of loan volume and new customer activity. This year was no exception. We experienced increase loan volume across our markets, including our offices in Mexico." Gross loans outstanding were $560.7 million at December 31, 2006, a 20.7% increase over the $464.4 million at December 31, 2005. Gross loans outstanding increased by $90.5 million, or 19.2%, over the balances at the beginning of the quarter. This compares with an increase in loans by $68.8 million, or 17.4%, during the third quarter of fiscal 2006. Loan volume increased 19.4% from $337.0 million in the third quarter 2006 to $438.4 in the third quarter 2007. "We continued to expand our markets in the third quarter. We acquired the loan receivables of Titan Finance in October that added 39 net new offices. In addition, we expanded our operations in Mexico to 12 offices. For the first three quarters of this fiscal year, we opened 68 offices and acquired 46 offices. Acquisitions accounted for $17.5 million in gross loans in the third quarter, up from $5.3 million in the third quarter of last year. Growth in Mexico accounted for $4.1 million in gross loans outstanding at the end of the quarter," continued Mr. McLean. Key return ratios for the third quarter included a 6.9% return on average assets (annualized) and an annualized return on average equity of 13.1%. Total general and administrative expenses as a percent of total revenues were 55.9%, an increase from the 54.5% during the third quarter of the prior fiscal year. The increase in general and administrative expenses was primarily due to higher personnel costs associated with the acquisitions and new offices opened compared with last year. Net charge-offs as a percent of average net loans on an annualized basis decreased to 15.8% during the quarter from 17.4% during the prior year quarter. Third quarter provision for loan loss increased 9.8% to $18.4 million compared with $16.7 million in the third quarter of last year. Nine-Month Results For the first nine months of the fiscal year, net income rose 31.5% to $26.9 million compared with $20.4 million in the first nine month of the prior fiscal year. Net income per diluted share rose 35.5% to $1.45, compared with $1.07, for the prior year nine-month period. Growth in per share income for both the third quarter and the nine months benefited from the Company repurchasing approximately 1 million shares. Total revenues for the first nine months of fiscal 2007 were $205.1 million, a 20.8% increase over the $169.8 million during the corresponding period of the previous year. Net charge-offs as a percent of average net loans were 13.8% compared with 15.8% during the prior year nine month period. During the first nine months of the fiscal year, the Company opened 68 offices, acquired 46 offices and merged or closed 4 offices, leaving a total of 731 offices at December 31, 2006. About World Acceptance Corporation World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 731 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. Third 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 1-800-946-0719. 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 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 Nine Months Ended December 31, December 31, --------------------------- --------------------------- 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Interest & fees $ 63,509 $ 52,380 $ 176,795 $ 145,722 Insurance & other 10,593 8,939 28,352 24,109 ------------ ------------ ------------ ------------ Total revenues 74,102 61,319 205,147 169,831 Expenses: Provision for loan losses 18,365 16,726 43,345 39,397 General and administrative expenses Personnel 25,778 20,285 73,044 59,500 Occupancy & equipment 4,439 3,640 12,769 10,405 Data processing 571 512 1,621 1,524 Advertising 4,734 3,964 8,418 7,262 Intangible amortization 683 709 2,219 2,125 Other 5,254 4,305 13,524 11,970 ------------ ------------ ------------ ------------ 41,459 33,415 111,595 92,786 Interest expense 2,823 2,142 6,994 5,070 ------------ ------------ ------------ ------------ Total expenses 62,647 52,283 161,934 137,253 ------------ ------------ ------------ ------------ Income before taxes 11,455 9,036 43,213 32,578 Income taxes 4,444 3,350 16,354 12,150 ------------ ------------ ------------ ------------ Net income $ 7,011 $ 5,686 $ 26,859 $ 20,428 ============ ============ ============ ============ Diluted earnings per share $ 0.39 $ 0.30 $ 1.45 $ 1.07 ============ ============ ============ ============ Diluted weighted average shares outstanding 17,950 18,896 18,547 19,174 ============ ============ ============ ============
Consolidated Balance Sheets (unaudited and in thousands)
December 31, March 31, December 31, 2006 2006 2005 ------------ ------------ ------------ ASSETS Cash $ 7,121 $ 4,034 $ 5,169 Gross loans receivable 560,742 416,302 464,391 Less: Unearned interest & fees (144,522) (103,556) (117,922) Allowance for loan losses (30,715) (22,717) (25,471) ------------ ------------ ------------ Loans receivable, net 385,505 290,029 320,998 Property and equipment, net 13,880 11,040 10,892 Deferred tax benefit 11,847 3,898 3,415 Goodwill 5,021 4,715 4,716 Intangibles 11,624 12,146 12,667 Other assets 11,481 6,922 5,810 ------------ ------------ ------------ $ 446,479 $ 332,784 $ 363,667 ============ ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Notes payable 236,900 100,600 160,200 Income tax payable - 6,778 - Accounts payable and accrued expenses 15,468 14,976 11,385 ------------ ------------ ------------ Total liabilities 252,368 122,354 171,585 Shareholders' equity 194,111 210,430 192,082 ------------ ------------ ------------ $ 446,479 $ 332,784 $ 363,667 ============ ============ ============
Selected Consolidated Statistics (dollars in thousands)
Three Months Ended Nine Months Ended December 31, December 31, --------------------------- --------------------------- 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Expenses as a percent of total revenues: Provision for loan losses 24.8% 27.3% 21.1% 23.2% General and administrative expenses 55.9% 54.5% 54.4% 54.6% Interest expense 3.8% 3.5% 3.4% 3.0% Average gross loans receivable $ 511,916 $ 422,446 $ 471,002 $ 389,107 Average loans receivable $ 380,487 $ 316,157 $ 350,892 $ 292,726 Loan volume $ 438,366 $ 366,996 $ 1,128,259 $ 954,325 Net charge-offs as percent of average loans 15.8% 17.4% 13.8% 15.8% Return on average assets 6.9% 6.6% 9.5% 8.5% Return on average equity 13.1% 12.0% 16.6% 14.4% Offices opened (closed) during the period, net 53 8 111 40 Offices open at end of period 731 619 731 619
SOURCE World Acceptance Corporation -0- 01/25/2007 /CONTACT: Kelly Malson Snape, Chief Financial Officer for World Acceptance Corporation, +1-864-298-9800 / (WRLD)