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World Acceptance Corporation Reports Second Quarter

Stocks in this article: WRLD

Six-Month Results

For the first six-months of the fiscal year, net income rose 4.7% to $45.5 million compared to $43.5 million for the six-months ended September 30, 2011. Fully diluted net income per share rose 20.5% to $3.35 in fiscal 2013 compared to $2.78 for the first six-months of fiscal 2012.

Total revenues for the first six-months of fiscal 2013 rose 6.6% to $272.2 million compared to $255.3 million during the corresponding period of the previous year. Annualized net charge-offs as a percent of average net loans decreased from 13.7% during the first six-months of fiscal 2012 to 13.1% for the first six-months of fiscal 2013.

About World Acceptance Corporation

World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 1,173 offices in 13 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. A script of the Chairman and Chief Executive Officer’s prepared remarks for the conference call has been furnished as Exhibit 99.2 to the Company’s Form 8-K filed today with the Securities and Exchange Commission (“SEC”) in connection with this press release, and is available via the SEC’s Edgar database at www.sec.gov, and will also be posted to the Company’s website as soon as practicable. Interested parties may participate in this call by dialing 1-888-455-2296, passcode 1803742. A simulcast of the conference call is also available on the Internet at http://www.videonewswire.com/event.asp?id=89760. 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 21E of the Securities Exchange Act of 1934, as amended, that represent the Company’s expectations or beliefs concerning future events. Statements other than those of historical fact, as well as those identified by the words “anticipate,” “estimate,” “plan,” “expect,” “believe,” “may,” “will,” and “should” or any variation of the foregoing and similar expressions are forward-looking statements. 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: recently enacted, proposed or future legislation and the manner in which it is implemented; the nature and scope of regulatory authority, particularly discretionary authority, that may be exercised by regulators having jurisdiction over the Company’s business or consumer financial transactions generically; changes in interest rates; risks related to expansion and foreign operations; risks inherent in making loans, including repayment risks and value of collateral; 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); and the unpredictable nature of litigation. These and other factors are discussed in greater detail in Part I, Item 1A, “Risk Factors” in the Company’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and the Company’s other reports filed with, or furnished to, the SEC from time to time. World Acceptance Corporation does not undertake any obligation to update any forward-looking statements it makes. The Company is also 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
(unaudited and in thousands, except per share amounts)
 
Three Months Ended Six Months Ended
September 30, September 30,

2012

2011

2012

2011

 
Interest & fees $ 121,818 $ 116,233 $ 237,117 $ 223,581
Insurance & other 17,580 15,906 35,117 31,714
Total revenues 139,398 132,139 272,234 255,295
Expenses:
Provision for loan losses 32,402 30,057 56,017 52,896
General and administrative expenses
Personnel 44,670 40,742 93,083 85,377
Occupancy & equipment 9,138 8,720 17,781 16,939
Advertising 2,801 2,699 5,446 5,482
Intangible amortization 339 434 708 867
Other 9,210 8,869 18,299 17,312
66,158 61,464 135,317 125,977
Interest expense 4,066 3,947 7,992 7,331
Total expenses 102,626 95,468 199,326 186,204
Income before taxes 36,772 36,671 72,908 69,091
Income taxes 13,871 13,367 27,392 25,605
Net income $ 22,901 $ 23,304 $ 45,516 $ 43,486
Diluted earnings per share $ 1.72 $ 1.52 $ 3.35 $ 2.78
Diluted weighted average shares outstanding 13,287 15,328 13,596 15,619
     
Consolidated Balance Sheets
(unaudited and in thousands)
 
September 30, March 31, September 30,

2012

2012

2011

ASSETS
Cash $ 12,704 $ 10,768 $ 13,061
Restricted cash - - 77,000
Gross loans receivable 1,087,902 972,723 964,955
Less: Unearned interest & fees (297,407 ) (257,638 ) (258,484 )
Allowance for loan losses (61,329 ) (54,507 ) (54,164 )
Loans receivable, net 729,166 660,578 652,307
Property and equipment, net 24,319 23,486 23,199
Deferred income taxes 25,599 18,474 17,958
Goodwill 5,896 5,691 5,635
Intangibles 4,928 5,479 5,885
Other assets 10,349   10,527   9,308  
$ 812,961   $ 735,003   $ 804,353  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Notes payable 386,600 279,250 359,600
Income tax payable 6,626 11,528 11,615
Accounts payable and accrued expenses 22,345   25,350   20,494  
Total liabilities 415,571 316,128 391,709
Shareholders' equity 397,390   418,875   412,644  
$ 812,961   $ 735,003   $ 804,353  
                     
Selected Consolidated Statistics
(dollars in thousands)
 
Three Months Ended Six Months Ended
September 30, September 30,

2012

2011

2012

2011

 
Expenses as a percent of total revenues:
Provision for loan losses 23.2 % 22.7 % 20.6 % 20.7 %
General and administrative expenses 47.5 % 46.5 % 49.7 % 49.3 %
Interest expense 2.9 % 3.0 % 2.9 % 2.9 %
 
Average gross loans receivable $ 1,063,271 $ 957,903 $ 1,032,306 $ 931,122
 
Average loans receivable $ 773,450 $ 699,978 $ 753,254 $ 682,096
 
Loan volume $ 760,709 $ 703,505 $ 1,513,702 $ 1,406,097
 
Net charge-offs as percent of average loans 13.9 % 14.8 % 13.1 % 13.7 %
 
Return on average assets (trailing 12 months) 13.4 % 13.7 % 13.4 % 13.7 %
 
Return on average equity (trailing 12 months) 25.1 % 23.0 % 25.1 % 23.0 %
 
Offices opened (closed) during the period, net 28 21 36 41
 
Offices open at end of period 1,173 1,108 1,173 1,108




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