WORLD ACCEPTANCE CORPORATION
REPORTS THIRD QUARTER RESULTS
GREENVILLE, S.C. -- (January 23, 2001) -- World
Acceptance Corporation (Nasdaq/NM: WRLD) today announced its operating results for the third quarter and the nine-month period ended December 31, 2000.
Third quarter earnings were below the record
level set last year as a result of expected lower earnings from ParaData Financial Systems, World Acceptance's computer subsidiary; an increase in the loss provision; and higher interest expense. Net income
for the third quarter was $2.0 million, or $0.11 per diluted share, compared with $2.6 million, or $0.14 per diluted share, for the corresponding quarter of the prior fiscal year.
Total revenues for the quarter increased 11.0%
to $29.9 million compared with $26.9 million in the third quarter of last year. Interest and fee income rose by 15.7% to $26.3 million compared with $22.7 million in the third quarter of fiscal 2000.
Insurance and other revenue declined 14.5% to $3.6 million primarily as a result of lower fee income from ParaData. In the third quarter of last year, ParaData signed several large accounts resulting in higher
fee income compared with the most recent quarter. The decline in ParaData's revenue was also reflected in its lower pre-tax income of $155,000 in the most recent quarter compared with $498,000 in pre-tax
income for the third quarter of last year.
"World Acceptance posted record loan volume in
the third quarter of $187.3 million," stated Charles D. Walters, chairman and chief executive officer. "We were very pleased with our loan growth and the contribution from acquisitions this fiscal year that
resulted in our 35.7% increase in gross loans to $235.5 million."
The Company attracted over 79,000 new or former
loan customers in the third quarter, contributing to World Acceptance's record growth in loans. Provision for loan losses rose 27% to $7.0 million as a result of the overall growth in the loan
portfolio. Net charge-offs as a percentage of average loans receivable remained equal to that of the prior year. World Acceptance incurred a 45.5% increase in interest expense from the third quarter of
last year as a result of increased debt related to funding of common stock repurchases since the beginning of the year, funding for loan growth, and higher average interest rates than in the third quarter of last
year.
Nine-Month Results
For the nine-month period ended December 31, 2000,
net income was $8.4 million, or $0.45 per diluted share, representing a 3.9% decrease from $8.8 million, or $0.46 per diluted share, for the prior year nine-month period. Total revenues for the first nine
months of fiscal 2001 were $85.4 million, an 11.3% increase over the $76.8 million in the corresponding prior-year period.
About World Acceptance Corporation
World Acceptance Corporation is one of the nation's
largest small-loan consumer finance companies, operating 426 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.
Third 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 1-877-692-2594. 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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