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World Acceptance Corporation |
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WORLD ACCEPTANCE CORPORATION
GREENVILLE, S.C. -- (July 18, 2001) -- World Acceptance Corporation (Nasdaq/NM: WRLD) today reported higher revenue, net income and loans for its first fiscal quarter ended June 30, 2001. Net income for the first quarter rose 14.6% to $3.7 million, or $0.19 per diluted share, compared with $3.2 million, or $0.17 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 12.8% to $30.4 million from $26.9 million for the prior-year quarter. Although support revenue from ParaData Financial Systems, World Acceptance's computer subsidiary, increased from the prior year, total Paradata revenue was down from the first quarter of last year due to the inclusion of large contracts booked in the prior year period. "Our continued growth in revenue and earnings was due primarily to increased loan demand in all major customer sectors," stated Charles D. Walters, chairman and chief executive officer of World Acceptance Corporation. "Our core earnings, excluding Paradata, were especially strong, rising 21.1% from the first quarter of last fiscal year." Gross loans outstanding increased to $221.7 million at June 30, 2001, a 12.9% increase over the $196.3 million in balances outstanding at June 30, 2000, and a 5.1% increase since the beginning of the fiscal year. Key measures of World Acceptance's operations remained very high during the quarter. Return on average assets (annualized) was 7.8% and return on average equity was 17.2% on an annualized basis. Total general and administrative expenses as a percent of total revenues continued its year-over-year improvement to 59.1% during the most recent quarter compared with 60.9% during the prior-year quarter. Operating income (revenues less provision for loan losses and general and administrative expenses) increased 9.1% to $7.2 million during the most recent quarter from $6.6 million in the prior-year quarter. Net earnings also benefited from the recent reduction in interest rates, as interest expense decreased by 9.4% over the two quarterly periods, with an approximate increase of 8.5% in average total debt outstanding during the most recent quarter. During the first three months of the fiscal year, the Company opened or acquired five offices and closed one non-performing office, leaving a total of 424 offices at June 30, 2001. About World Acceptance Corporation World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 424 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. 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 2:00 P.M. Eastern time today. Interested parties may participate in this call by dialing 1-877-692-2590. 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. 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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