World Acceptance Corporation Reports Improved Fourth Quarter Results

Apr 24, 2001, 01:00 ET from World Acceptance Corporation

    GREENVILLE, S.C., April 24 /PRNewswire Interactive News Release/ --
 World Acceptance Corporation (Nasdaq-NM: WRLD) reported higher revenues and
 net income for its fourth quarter and fiscal year ended March 31, 2001.
     Net income for the fourth quarter rose 32.9% to $7.2 million, or $0.38 per
 diluted share, compared with $5.4 million, or $0.28 per diluted share, for the
 same quarter of the prior year.  Total revenues for the quarter increased
 23.2% to $35.1 million from $28.5 million for the prior-year quarter.
     "World Acceptance's fourth quarter earnings benefited from growth in our
 loan portfolio, lower net charge-offs, and increased fee income from our tax
 preparation business," stated Charles D. Walters, chairman and chief executive
 officer of the Company.  "Interest and fee income rose 20.7% to $29.4 million
 in the fourth fiscal quarter and was up 16.1% for the year.  Our earnings
 potential accelerated during the year as a result of the 21.5% increase in
 loans that was attributable to both strong internal growth and the
 contribution from new offices and acquisitions completed in fiscal 2001.
     "Growth of our tax preparation business was especially strong this year.
 During the fourth fiscal quarter, we completed approximately 33,000 returns,
 or about twice as many as last year, and generated fees in excess of
 $2.5 million," concluded Mr. Walters.
     Fourth quarter earnings were enhanced by a reduction in the annualized net
 charge-off percentages to 10.5%, compared with 11.1% during the three months
 ended March 31, 2000.  For the fiscal year, this ratio remained level from the
 prior year at 12.0%.
     For the fiscal year ended March 31, 2001, net income amounted to
 $15.6 million, or $0.83 per diluted share, a 10.1% increase over prior-period
 earnings of $14.2 million, or $0.74 per diluted share.  Total revenues for the
 current fiscal year were $120.5 million, representing a 14.5% increase over
 the $105.3 million in the prior fiscal year.
     Gross loans outstanding increased to $210.9 million at March 31, 2001, a
 21.5% increase over the $173.6 million in balances outstanding at
 March 31, 2000.
     Return on average assets and on average equity rose to 15.1% and 36.4%,
 respectively, during the fourth fiscal quarter and remained very high at 8.8%
 and 21.1%, respectively, for the entire fiscal year.
     During the current fiscal year, the Company opened or acquired 19 offices
 and closed or sold 9 non-performing offices, making a total of 420 offices at
 March 31, 2001.
 
     About World Acceptance Corporation
     World Acceptance Corporation is one of the nation's largest small-loan
 consumer finance companies, operating 420 offices in 10 states.  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 2:00 P.M. Eastern
 time today.  Interested parties may participate in this call by dialing
 1-888-868-9083.  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.  Among the key factors that
 could cause the Company's actual financial results, performance or condition
 to differ from the expectations expressed or implied in such forward-looking
 statements are the following: changes in interest rate; risks inherent in
 making loans, including risks of repayment and impairment to the value of
 collateral; recently enacted or proposed legislation; 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) and changes in the
 Company's markets and general changes in the economy (particularly 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
                     CONSOLIDATED STATEMENTS OF OPERATIONS
             (Unaudited and in thousands, except per share amounts)
 
 
                              Three Months Ended            Year Ended
                                   March 31,                 March 31,
                              2001         2000         2001          2000
     Interest and fees    $  29,368     $  24,322   $  103,412     $  89,051
     Insurance and other      5,742         4,183       17,132        16,225
      Total revenues         35,110        28,505      120,544       105,276
     Expenses:
      Provision for loan
       losses                 3,642         2,545       19,749        15,697
      General and administrative
       Personnel             12,041        10,386       43,878        39,498
       Occupancy and
        equipment             2,004         1,763        7,627         6,917
       Data processing          421           385        1,519         1,502
       Advertising              652           707        3,967         3,933
       Intangible
        amortization            475           379        1,797         1,472
       Other                  2,388         2,305        9,476         8,513
                             17,981        15,925        68,264       61,835
      Interest expense        2,042         1,613        8,260         6,015
       Total expenses        23,665        20,083       96,273        83,547
     Income before taxes     11,445         8,422       24,271        21,729
     Income taxes             4,270         3,024        8,670         7,560
     Net income           $   7,175     $   5,398    $  15,601     $  14,169
 
     Diluted earnings per
      share               $    0.38     $    0.28    $    0.83     $    0.74
     Diluted weighted average
      shares outstanding     18,946        19,086       18,840        19,155
 
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                          (Unaudited and in thousands)
 
 
                                                     March 31,      March 31,
                                                       2001           2000
     ASSETS
     Cash                                           $   3,293      $   1,691
     Gross loans receivable                           210,894        173,609
      Less: Unearned interest and fees                (48,504)       (37,949)
      Allowance for loan losses                       (12,032)       (10,008)
       Loans receivable, net                          150,358        125,652
     Property and equipment, net                        6,538          6,753
     Intangible assets                                 13,138         11,108
     Other assets                                       9,834          8,269
                                                    $ 183,161      $ 153,473
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Liabilities:
      Notes payable                                 $  91,632      $  78,382
      Income tax payable                                3,038          2,059
      Accounts payable and accrued expenses             5,764          4,839
       Total liabilities                              100,434         85,280
     Shareholders' equity                              82,727         68,193
                                                    $ 183,161      $ 153,473
 
 
                          WORLD ACCEPTANCE CORPORATION
                        SELECTED CONSOLIDATED STATISTICS
                             (Dollars in thousands)
 
 
                                Three Months Ended            Year Ended
                                     March 31,                 March 31,
                                2001         2000        2001           2000
     Expenses as a percent of total
      revenues:
       Provision for loan
        losses                10.4%          8.9%        16.4%         14.9%
       General and administrative
        expenses              51.2%         55.9%        56.6%         58.7%
       Interest expense        5.8%          5.7%         6.9%          5.7%
 
     Average gross loans
      receivable          $221,638      $174,200     $204,789      $163,786
 
     Average loans
      receivable          $168,380      $134,446     $156,850      $127,230
 
     Loan volume          $133,203      $119,732     $619,721      $542,280
 
     Net charge-offs as
      percent of average
      loans                   10.5%         11.1%        12.0%         12.0%
 
     Return on average
      assets                  15.1%         13.8%         8.8%          9.7%
 
     Return on average
      equity                  36.4%         32.8%        21.1%         23.2%
 
     Offices opened (closed)
      during the period,
      net                       (6)            6           10            31
 
     Offices open at end of
      period                   420           410          420           410
 
 
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SOURCE World Acceptance Corporation
    GREENVILLE, S.C., April 24 /PRNewswire Interactive News Release/ --
 World Acceptance Corporation (Nasdaq-NM: WRLD) reported higher revenues and
 net income for its fourth quarter and fiscal year ended March 31, 2001.
     Net income for the fourth quarter rose 32.9% to $7.2 million, or $0.38 per
 diluted share, compared with $5.4 million, or $0.28 per diluted share, for the
 same quarter of the prior year.  Total revenues for the quarter increased
 23.2% to $35.1 million from $28.5 million for the prior-year quarter.
     "World Acceptance's fourth quarter earnings benefited from growth in our
 loan portfolio, lower net charge-offs, and increased fee income from our tax
 preparation business," stated Charles D. Walters, chairman and chief executive
 officer of the Company.  "Interest and fee income rose 20.7% to $29.4 million
 in the fourth fiscal quarter and was up 16.1% for the year.  Our earnings
 potential accelerated during the year as a result of the 21.5% increase in
 loans that was attributable to both strong internal growth and the
 contribution from new offices and acquisitions completed in fiscal 2001.
     "Growth of our tax preparation business was especially strong this year.
 During the fourth fiscal quarter, we completed approximately 33,000 returns,
 or about twice as many as last year, and generated fees in excess of
 $2.5 million," concluded Mr. Walters.
     Fourth quarter earnings were enhanced by a reduction in the annualized net
 charge-off percentages to 10.5%, compared with 11.1% during the three months
 ended March 31, 2000.  For the fiscal year, this ratio remained level from the
 prior year at 12.0%.
     For the fiscal year ended March 31, 2001, net income amounted to
 $15.6 million, or $0.83 per diluted share, a 10.1% increase over prior-period
 earnings of $14.2 million, or $0.74 per diluted share.  Total revenues for the
 current fiscal year were $120.5 million, representing a 14.5% increase over
 the $105.3 million in the prior fiscal year.
     Gross loans outstanding increased to $210.9 million at March 31, 2001, a
 21.5% increase over the $173.6 million in balances outstanding at
 March 31, 2000.
     Return on average assets and on average equity rose to 15.1% and 36.4%,
 respectively, during the fourth fiscal quarter and remained very high at 8.8%
 and 21.1%, respectively, for the entire fiscal year.
     During the current fiscal year, the Company opened or acquired 19 offices
 and closed or sold 9 non-performing offices, making a total of 420 offices at
 March 31, 2001.
 
     About World Acceptance Corporation
     World Acceptance Corporation is one of the nation's largest small-loan
 consumer finance companies, operating 420 offices in 10 states.  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 2:00 P.M. Eastern
 time today.  Interested parties may participate in this call by dialing
 1-888-868-9083.  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.  Among the key factors that
 could cause the Company's actual financial results, performance or condition
 to differ from the expectations expressed or implied in such forward-looking
 statements are the following: changes in interest rate; risks inherent in
 making loans, including risks of repayment and impairment to the value of
 collateral; recently enacted or proposed legislation; 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) and changes in the
 Company's markets and general changes in the economy (particularly 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
                     CONSOLIDATED STATEMENTS OF OPERATIONS
             (Unaudited and in thousands, except per share amounts)
 
 
                              Three Months Ended            Year Ended
                                   March 31,                 March 31,
                              2001         2000         2001          2000
     Interest and fees    $  29,368     $  24,322   $  103,412     $  89,051
     Insurance and other      5,742         4,183       17,132        16,225
      Total revenues         35,110        28,505      120,544       105,276
     Expenses:
      Provision for loan
       losses                 3,642         2,545       19,749        15,697
      General and administrative
       Personnel             12,041        10,386       43,878        39,498
       Occupancy and
        equipment             2,004         1,763        7,627         6,917
       Data processing          421           385        1,519         1,502
       Advertising              652           707        3,967         3,933
       Intangible
        amortization            475           379        1,797         1,472
       Other                  2,388         2,305        9,476         8,513
                             17,981        15,925        68,264       61,835
      Interest expense        2,042         1,613        8,260         6,015
       Total expenses        23,665        20,083       96,273        83,547
     Income before taxes     11,445         8,422       24,271        21,729
     Income taxes             4,270         3,024        8,670         7,560
     Net income           $   7,175     $   5,398    $  15,601     $  14,169
 
     Diluted earnings per
      share               $    0.38     $    0.28    $    0.83     $    0.74
     Diluted weighted average
      shares outstanding     18,946        19,086       18,840        19,155
 
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
                          (Unaudited and in thousands)
 
 
                                                     March 31,      March 31,
                                                       2001           2000
     ASSETS
     Cash                                           $   3,293      $   1,691
     Gross loans receivable                           210,894        173,609
      Less: Unearned interest and fees                (48,504)       (37,949)
      Allowance for loan losses                       (12,032)       (10,008)
       Loans receivable, net                          150,358        125,652
     Property and equipment, net                        6,538          6,753
     Intangible assets                                 13,138         11,108
     Other assets                                       9,834          8,269
                                                    $ 183,161      $ 153,473
     LIABILITIES AND SHAREHOLDERS' EQUITY
     Liabilities:
      Notes payable                                 $  91,632      $  78,382
      Income tax payable                                3,038          2,059
      Accounts payable and accrued expenses             5,764          4,839
       Total liabilities                              100,434         85,280
     Shareholders' equity                              82,727         68,193
                                                    $ 183,161      $ 153,473
 
 
                          WORLD ACCEPTANCE CORPORATION
                        SELECTED CONSOLIDATED STATISTICS
                             (Dollars in thousands)
 
 
                                Three Months Ended            Year Ended
                                     March 31,                 March 31,
                                2001         2000        2001           2000
     Expenses as a percent of total
      revenues:
       Provision for loan
        losses                10.4%          8.9%        16.4%         14.9%
       General and administrative
        expenses              51.2%         55.9%        56.6%         58.7%
       Interest expense        5.8%          5.7%         6.9%          5.7%
 
     Average gross loans
      receivable          $221,638      $174,200     $204,789      $163,786
 
     Average loans
      receivable          $168,380      $134,446     $156,850      $127,230
 
     Loan volume          $133,203      $119,732     $619,721      $542,280
 
     Net charge-offs as
      percent of average
      loans                   10.5%         11.1%        12.0%         12.0%
 
     Return on average
      assets                  15.1%         13.8%         8.8%          9.7%
 
     Return on average
      equity                  36.4%         32.8%        21.1%         23.2%
 
     Offices opened (closed)
      during the period,
      net                       (6)            6           10            31
 
     Offices open at end of
      period                   420           410          420           410
 
 
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 SOURCE  World Acceptance Corporation