World Acceptance Corporation Reports Record First Quarter

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.

SOURCE World Acceptance Corporation