2014

World Acceptance Corporation Reports Record First Quarter First Quarter Earnings Per Diluted Share Up 11.4% to a Record $1.27

GREENVILLE, S.C., July 27, 2011 /PRNewswire/ -- World Acceptance Corporation (NASDAQ:  WRLD) today reported record financial results for its first fiscal quarter ended June 30, 2011.

Net income for the first quarter rose 7.8% to $20.2 million compared with $18.7 million for the same quarter of the prior year.  Net income per diluted share increased 11.4% to $1.27 in the first quarter of fiscal 2012 compared with $1.14 in the prior year's first quarter.  Gross loans increased 13.8% to a record $939.1 million compared with $824.9 million in the first quarter of fiscal 2011.

"World Acceptance's record first quarter benefited from continued strong loan demand, our focus on expense control, the contribution from new offices in domestic markets and Mexico, and our close management of credit risks," stated Sandy McLean, CEO.  "Our excellent growth in earnings per share also benefited from our stock repurchase program.  We used our strong cash flow to repurchase 732,600 shares of stock during the quarter."

Total revenues increased to $123.2 million in the first quarter of fiscal 2012, an 11.6% increase over the $110.4 million reported in the first quarter last year.  The growth in revenues benefited from higher interest and fees and insurance revenues.

Interest and fee income increased 11.7%, from $96.1 million to $107.3 million in the first quarter of fiscal 2012 due to continued growth in loan volume and expansion of offices.  Insurance and other income rose to $15.8 million in the first quarter of fiscal 2012 compared with $14.3 million in the first quarter of fiscal 2011.  The first quarter fiscal 2012 results included a $1.1 million, or 10.9%, increase in insurance revenues when comparing the two quarterly periods.  

Gross loans outstanding increased 13.8% to $939.1 million at June 30, 2011, up from $824.9 million at June 30, 2010.  Average net loans rose 13.1% when comparing the two quarterly periods.  

"We maintained our charge-off rate level with the prior year as expected," stated Mr. McLean.   "Charge-offs as a percent of net loans were 12.5% for the three month period ended June 30, 2011.  We remain focused on managing our credit risks as a key driver of our earnings."

Total general and administrative expenses increased slightly to 52.4% of total revenues compared with 51.9% during the first quarter of the prior fiscal year.  

Key return ratios for the first quarter included a 13.7% return on average assets for a trailing 12 month period and a 22.7% return on average equity for a trailing 12 month period ended June 30, 2011.  The Company opened 20 net new offices in the first quarter of fiscal 2012.

About World Acceptance Corporation

World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 1,087 offices in 12 states and Mexico. It is also the parent company of ParaData Financial Systems, a provider of computer software solutions for the consumer finance industry.

First 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 1-877-419-6600, passcode 2167400.  A simulcast of the conference call is also available on the Internet at http://www.videonewswire.com/event.asp?id=80563 or www.streetevents.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














Condensed Consolidated Statements of Operations








(unaudited and in thousands, except per share amounts)



















Three Months Ended






June 30,






2011


2010









Interest & fees


$

107,348

$

96,071

Insurance & other



15,808


14,327


Total revenues



123,156


110,398

Expenses:







Provision for loan losses



22,839


19,698


General and administrative expenses








Personnel



44,635


39,734



Occupancy & equipment



8,219


7,189



Advertising



2,783


2,462



Intangible amortization



433


507



Other



8,443


7,406






64,513


57,298


Interest expense



3,384


3,354



Total expenses



90,736


80,350

Income before taxes



32,420


30,048

Income taxes



12,238


11,334

Net income


$

20,182

$

18,714

Diluted earnings per share


$

1.27

$

1.14

Weighted average shares outstanding (diluted)



15,918


16,446









Condensed Consolidated Balance Sheets








(unaudited and in thousands)

















June 30,


March 31,


June 30,




2011


2011


2010



ASSETS






Cash

9,802

$

8,031

$

6,284

Gross loans receivable

939,077


875,046


824,941


Less: Unearned interest & fees

(252,819)


(228,974)


(217,573)


Allowance for loan losses

(50,420)


(48,355)


(44,106)



Loans receivable, net

635,838


597,717


563,262

Property and equipment, net

23,680


23,366


23,031

Deferred tax benefit

14,742


14,480


11,837

Goodwill

5,635


5,634


5,654

Intangibles

6,257


6,365


7,243

Other assets

8,873


10,804


7,834




704,827

$

666,397

$

625,145











LIABILITIES AND SHAREHOLDERS' EQUITY






Liabilities:







Notes payable

247,244


187,430


218,447


Income tax payable

17,833


13,098


16,111


Accounts payable and accrued expenses

19,709


23,294


19,472



Total liabilities

284,786


223,822


254,030

Shareholders' equity

420,041


442,575


371,115




704,827

$

666,397

$

625,145











Selected Consolidated Statistics







(dollars in thousands)












Three Months Ended



June 30,



2011


2010






Expenses as a percent of total revenues:






Provision for loan losses


18.5%


17.8%


General and administrative expenses


52.4%


51.9%


Interest expense


2.7%


3.0%






Average gross loans receivable


$ 906,330


$ 796,368






Average loans receivable


$ 665,256


$ 588,022






Loan volume


$ 702,592


$ 627,785






Net charge-offs as percent of average loans


12.5%


12.5%






Return on average assets (trailing 12 months)


13.7%


13.0%






Return on average equity (trailing 12 months)


22.7%


22.3%






Offices opened (closed) during the period, net


20


20






Offices open at end of period


1087


1010



SOURCE World Acceptance Corporation



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