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World Acceptance Corporation |
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WORLD ACCEPTANCE CORPORATION
GREENVILLE, S.C. -- (July 18, 2000) -- World Acceptance Corporation (Nasdaq/NM: WRLD) today reported higher revenue, net income and loans for its first fiscal quarter ended June 30, 2000. The Company also announced the acquisition of five consumer finance portfolios during the first quarter. Net income for the first quarter rose 4.4% to $3.2 million, or $0.17 per diluted share, compared with $3.1 million, or $0.16 per diluted share, for the first quarter of the prior year. "Total revenues increased 10.8% to $26.9 million compared with the same quarter last year," stated Charles D. Walters, chairman and chief executive officer of World Acceptance Corporation. "Gross loans rose 23.3% in the first quarter to $196.3 million as a result of increased customer demand and the contribution from five acquisitions completed during the quarter. The acquisitions added 8,072 accounts and $12.9 million in loans. The majority of the acquisitions were completed on the last day of the quarter and therefore had minimal impact on revenues and net income for the quarter. We expect the acquisitions to have a positive effect on net income in the coming quarters." Gross loans outstanding increased to $196.3 million at June 30, 2000, a 23.3% increase over the $159.2 million in balances outstanding at June 30, 1999, and a 13.1% increase since the beginning of the fiscal year. Return on average assets remained high at 7.9% and return on average equity was 18.5% on an annualized basis. Total general and administrative expenses declined as a percent of revenues to 60.9% compared with 62.9% in the first quarter of the prior year. World Acceptance's improved operating ratios benefited from the higher revenue base. Operating income (revenues less provision for loan losses and general and administrative expenses) increased 10.7% to $6.6 million over the first quarter of last fiscal year and remained level at 24.6% of total revenues for both quarters. Net income for the first quarter of fiscal 2001 was affected by a 29.8% increase in interest expense resulting from higher interest rates on an increase in debt to fund loan growth, acquisitions and stock repurchases. World Acceptance purchased 275,000 shares of its common stock during the first quarter for an aggregate purchase price of approximately $1.43 million. During the current fiscal year, the Company opened or acquired eight offices and closed one non-performing office for a total of 417 offices at June 30, 2000. World Acceptance Corporation is one of the nation's largest small-loan consumer finance companies, operating 417 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. 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 (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 |
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