GREENVILLE, S.C., Oct. 29 /PRNewswire-FirstCall/ -- World
Acceptance Corporation (NASDAQ:WRLD) today reported record
financial results for its second fiscal quarter ended September 30,
2009. Net income for the second quarter rose 46.9% to $14.6 million
compared with $9.9 million for the same quarter of the prior year.
Net income per diluted share increased 48.3% to $0.89 in the second
quarter of fiscal 2010 compared with $0.60 in the prior year
quarter. Net income for the quarter ended September 30, 2008, was
originally reported as $10.7 million, or $0.65 per share, and was
subsequently revised due to a change in accounting principle for
the Company's convertible notes. Total revenues increased to $104.2
million in the second quarter of fiscal 2010, a 13.6% increase over
the $91.7 million reported in the second quarter last year. The
primary driver for the growth in revenue was a 13.6% increase in
average net loans. Gross loans outstanding increased 13.1% to
$754.9 million at September 30, 2009, up from $667.2 million at
September 30, 2008. "I am very pleased with World Acceptance's
strong growth in revenue and net income in the second quarter,"
stated Sandy McLean, CEO. "While we do not expect quarter over
quarter net income gains in coming quarters to be as high as this
quarter, our improved second quarter results continued our
excellent first quarter's performance and benefited from increased
loan balances outstanding, ongoing focus on expense control, and
close management of credit risks. In addition, loan demand remains
strong as loan volume increased 14.7% compared to the prior year
second fiscal quarter." "The Company has also benefited from a
slight improvement in its credit losses during the quarter,"
continued Mr. McLean. "Our net charge-offs decreased to 16.2% of
average net loans on an annualized basis during the quarter
compared with 17.0% in the second quarter of last year, while 61+
days past due loans on a recency basis remained flat at 3.3% at the
end of both quarters." The provision for loan losses rose 7.9% to
$25.2 million in the second quarter of fiscal 2010 compared with
the second quarter of fiscal 2009. "We remain focused on monitoring
our loan portfolio in light of the difficult economy and we believe
that our allowance for loan losses is adequate based on the current
outlook," noted Mr. McLean. The Company's general and
administrative expenses decreased from 52.7% of total revenues to
49.7% during the current fiscal quarter. The improvement benefited
from the strong growth in revenues and reduced start-up costs
associated with a lower number of branch openings in the second
quarter of 2010 compared with the prior year. World Acceptance
opened 17 new offices in the second quarter of 2010 compared with
35 offices in the same quarter last year. Other key return ratios
for the second quarter included a 10.3% return on average assets
(annualized) and an annualized return on average equity of 18.2%.
Six-Month Results For the first six-months of the fiscal year, net
income rose 37.4% to $29.2 million compared with $21.3 million for
the six months ended September 30, 2008. Fully diluted net income
per share rose 38.8% to $1.79 in fiscal 2010 compared with $1.29
for the first six months of fiscal 2009. The fiscal 2009 results
were restated from net income of $22.7 million and $1.37 per
dilutive share due to a change in accounting principle. Total
revenues for the first six-months of fiscal 2010 rose 13.5% to
$204.4 million compared with $180.1 million during the
corresponding period of the previous year. Net charge-offs
increased $3.1 million, or 8.3%, compared to the prior year first
six-months. Annualized net charge-offs as a percent of average net
loans were 15.1% compared to 15.8% during the prior year six-month
period. During the first six-months of the fiscal year, the Company
opened 23 offices and closed 1 office, resulting in a total of 966
offices at September 30, 2009. About World Acceptance Corporation
World Acceptance Corporation is one of the largest small-loan
consumer finance companies, operating 966 offices in 11 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 1-877-780-3379, passcode 4696758. A simulcast of the
conference call is also available on the Internet at
http://tinyurl.com/ykxryad or http://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 the following:
the continuation or worsening of adverse conditions in the global
and domestic credit markets and uncertainties regarding, or the
impact of governmental responses to those conditions; changes in
interest rates; risks inherent in making loans, including repayment
risks and value of collateral, which risks may increase in light of
adverse or recessionary economic conditions; 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 delinquencies and charge-offs);
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 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
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(unaudited and in thousands, except per share amounts) Three Months
Ended Six Months Ended September 30, September 30, -------------
------------- 2009 2008 2009 2008 ---- ---- ---- ---- Interest
& fees $91,540 $80,054 $176,608 $156,403 Insurance & other
12,666 11,667 27,828 23,739 ------ ------ ------ ------ Total
revenues 104,206 91,721 204,436 180,142 Expenses: Provision for
loan losses 25,156 23,307 45,584 41,164 General and administrative
expenses Personnel 33,912 31,200 70,203 64,516 Occupancy &
equipment 7,113 6,478 13,817 12,532 Data processing 494 581 1,028
1,170 Advertising 2,449 2,532 4,821 5,241 Intangible amortization
568 623 1,133 1,224 Other 7,219 6,965 14,086 12,486 ----- -----
------ ------ 51,755 48,379 105,088 97,169 Interest expense 3,617
3,892 6,727 7,501 ----- ----- ----- ----- Total expenses 80,528
75,578 157,399 145,834 ------ ------ ------- ------- Income before
taxes 23,678 16,143 47,037 34,308 Income taxes 9,066 6,197 17,790
13,019 ----- ----- ------ ------ Net income $14,612 $9,946 $29,247
$21,289 ======= ====== ======= ======= Diluted earnings per share
$0.89 $0.60 $1.79 $1.29 ===== ===== ===== ===== Diluted weighted
average shares outstanding 16,418 16,493 16,370 16,535 ======
====== ====== ====== Consolidated Balance Sheets
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(unaudited and in thousands) Sept. 30, March 31, Sept. 30, 2009
2009 2008 ---- ---- ---- ASSETS Cash $7,287 $6,260 $8,070 Gross
loans receivable 754,854 671,176 667,179 Less: Unearned interest
& fees (198,899) (172,743) (175,251) Allowance for loan losses
(43,682) (38,021) (38,121) ------- ------- ------- Loans
receivable, net 512,273 460,412 453,807 Property and equipment, net
23,121 23,060 22,970 Deferred income taxes 12,975 12,251 12,630
Goodwill 5,581 5,581 5,384 Intangibles 8,046 8,988 9,927 Other
assets 10,249 9,542 9,286 ------ ----- ----- $579,532 $526,094
$522,074 ======== ======== ======== LIABILITIES AND SHAREHOLDERS'
EQUITY Liabilities: Notes payable 222,265 197,041 241,235 Income
tax payable 4,761 11,413 368 Accounts payable and accrued expenses
23,680 21,305 16,406 ------ ------ ------ Total liabilities 250,706
229,759 258,009 Shareholders' equity 328,826 296,335 264,065
------- ------- ------- $579,532 $526,094 $522,074 ========
======== ======== Selected Consolidated Statistics
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(dollars in thousands) Three Months Ended Six Months Ended
September 30, September 30, ------------------ --------------- 2009
2008 2009 2008 ---- ---- ---- ---- Expenses as a percent of total
revenues: Provision for loan losses 24.1% 25.4% 22.3% 22.9% General
and administrative expenses 49.7% 52.7% 51.4% 53.9% Interest
expense 3.5% 4.2% 3.3% 4.2% Average gross loans receivable $744,099
$653,671 $719,910 $634,097 Average loans receivable $547,482
$482,130 $530,906 $468,318 Loan volume $556,201 $484,806 $1,109,550
$945,457 Net charge-offs as percent of average loans 16.2% 17.0%
15.1% 15.8% Return on average assets 10.3% 7.8% 10.5% 8.5% Return
on average equity 18.2% 15.5% 18.7% 16.8% Offices opened (closed)
during the period, net 17 35 22 69 Offices open at end of period
966 907 966 907 DATASOURCE: World Acceptance Corporation CONTACT:
Kelly Malson, Chief Financial Officer, World Acceptance
Corporation, +1-864-298-9800
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