WORLD ACCEPTANCE CORPORATION REPORTS
HIGHER SECOND QUARTER REVENUE AND NET INCOME
GREENVILLE, S.C. -- (October 24, 2000) -- World Acceptance
Corporation (Nasdaq/NM: WRLD) today reported higher revenue and net income for the second fiscal quarter ended September 30, 2000. The Company also announced the acquisition of additional operations in
Kentucky consisting of three offices and 4,407 accounts with a gross loan balance of approximately $8.2 million.
Net income for the second quarter rose 4.3% to
$3.3 million, or $0.17 per diluted share, compared with $3.1 million, or $0.16 per diluted share, for the same quarter of the prior year. Total revenues for the quarter increased 12.1% to $28.6 million compared with
$25.5 million for the prior-year quarter.
"Our improved results for the second quarter
were due to the increased growth in our loan portfolio as a result of increased demand and contribution from acquisitions," stated Charles D. Walters, chairman and chief executive officer of World Acceptance
Corporation. "Gross loans grew 27.8% to $208.7 million compared with the second quarter of last year. In addition, we opened or acquired 15 offices since the beginning of the fiscal year.
"World Acceptance also benefited from improved operating efficiencies. Our general and administrative expenses declined to 57.1% of total revenues in the latest quarter compared with 57.7% in the same quarter last year. The increase in gross loans, coupled with the continuing expense control, contributed to a 14.7% increase in operating income to $7.1 compared with $6.2 in the second quarter of fiscal 2000."
Net income for the second quarter of fiscal 2001 was affected by a 47.3% increase in interest expense compared with the same quarter of the prior year. The increase in interest expense was due to higher debt resulting from loan growth, acquisitions and prior-quarter stock repurchases combined with an increase in interest rates.
Operating returns remained very high during the quarter as the return on average assets (annualized) was 7.4% and the annualized return on average equity was 18.2%.
Six-Month Results
For the first six months of the fiscal year, net income was $6.5 million, or $0.34 per diluted share, representing a 4.3% increase over the $6.2 million, or $0.32 per share, for the prior year six-month period. Total revenues for the six months of 2001 were $55.6 million, an 11.5% increase over the $49.8 million during the corresponding period of the previous year.
World Acceptance Corporation is one of the
nation's largest small-loan consumer finance companies, operating 423 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.
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 1-800-865-4460. A
simulcast of the conference call is also available on the Internet at 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 (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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