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World Acceptance Corporation Reports Record First Quarter



  World Acceptance Corporation Reports Record First Quarter

     First Quarter Earnings per Diluted Share Up 14.7% to a Record $1.87

Business Wire

GREENVILLE, S.C. -- July 25, 2013

World Acceptance Corporation (NASDAQ: WRLD) today reported record financial
results for its first fiscal quarter ended June 30, 2013.

Net income for the first quarter rose 2.2% to $23.1 million compared with
$22.6 million for the same quarter of the prior year. Net income per diluted
share increased 14.7% to $1.87 from $1.63 when comparing the two quarterly
periods.

“World Acceptance’s financial results reached record levels in the first
quarter. Our net income per dilutive share benefitted from our ongoing share
repurchase program,” stated Sandy McLean, CEO. In the first quarter, the
Company repurchased approximately 413,000 shares. Combined with the 2.6
million shares repurchased during fiscal 2013, the Company has reduced its
weighted average diluted shares outstanding by 11.2% when comparing the two
quarterly periods.

Total revenues increased to $145.3 million in the first quarter of fiscal
2014, a 9.4% increase over the $132.8 million reported in the first quarter
last year. Interest and fee income increased 11.0%, from $115.3 million to
$128.0 million in the first quarter of fiscal 2014 due to continued growth in
loan volume and expansion of offices. Insurance and other income was down 1.4%
to $17.3 million in the first quarter of fiscal 2014 compared with $17.5
million in the first quarter of fiscal 2013.

The provision for loan losses rose 21.5% to $28.7 million in the first quarter
of fiscal 2014 compared to the prior year first quarter. Annualized net
charge-offs as a percent of average net loans were 13.5% for the three month
period ended June 30, 2013, compared with 12.2% for the first quarter of last
fiscal year. “Although this is our second consecutive quarter with increased
charge-off ratios, we remain focused on managing our credit risks as this is a
key driver of our earnings,” continued Mr. McLean.

Gross loans outstanding increased 9.6% to $1.1 billion at June 30, 2013, up
from $1.0 billion at June 30, 2012.

Total general and administrative expenses as a percent of revenue decreased
slightly to 51.8% compared with 52.1% during the first quarter of the prior
fiscal year.

Key return ratios for the first quarter included a 12.7% return on average
assets and a 28.1% return on average equity for a trailing 12 month period
ended June 30, 2013. The Company opened seven new offices, purchased one new
office and merged one office into an existing location during the first fiscal
quarter.

Mr. McLean also stated, “On July 22, 2013, NASDAQ notified the Company that
with the filing of the Company’s Form 10-K/A for the period ended March 31,
2013, the Staff had determined that the Company was now back in compliance
with NASDAQ rules.”

About World Acceptance Corporation

World Acceptance Corporation is one of the largest small-loan consumer finance
companies, operating 1,210 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.

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 10:00 a.m. Eastern time
today. Interested parties may participate in this call by dialing
1-888-417-8516, pass code 6361182. A simulcast of the conference call is also
available on the Internet at http://www.videonewswire.com/event.asp?id=94727.
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 the following: the continuation or
worsening of adverse conditions in the global and domestic credit markets and
uncertainties regarding, or the impact of governmental responses to those
conditions; changes in interest rates; risks inherent in making loans,
including repayment risks and value of collateral, which risks may increase in
light of adverse or recessionary economic conditions; recently-enacted or
proposed legislation; 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). Such factors are discussed in greater detail in the Company’s
filings with the Securities and Exchange Commission. World Acceptance
Corporation is 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
                                                                 
Condensed Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
                                                                   
                                                Three Months Ended
                                                June 30,
                                                2013              2012
                                                                   
Interest & fees                                 $ 127,978         $ 115,299
Insurance & other                                 17,287            17,537     
         Total revenues                           145,265           132,836
Expenses:
         Provision for                            28,703            23,615
         loan losses
         General and
         administrative
         expenses
             Personnel                            53,310            48,413
             Occupancy &                          9,379             8,643
             equipment
             Advertising                          2,723             2,645
             Intangible                           312               369
             amortization
             Other                                9,513             9,089      
                                                  75,237            69,159
         Interest expense                         4,676             3,926      
             Total                                108,616           96,700     
             expenses
Income before taxes                               36,649            36,136
Income taxes                                      13,537            13,521     
Net income                                      $ 23,112          $ 22,615     
Diluted earnings per                            $ 1.87            $ 1.63       
share
Weighted average shares                           12,343            13,902     
outstanding (diluted)
                                                                   
Condensed Consolidated Balance Sheets
(unaudited and in thousands)
                                                                   
                              June 30,          March 31,         June 30,
                              2013              2013              2012
ASSETS
Cash                          $ 11,399          $ 11,625          $ 12,875
Gross loans receivable          1,125,261         1,067,052         1,027,165
         Less: Unearned         (306,769  )       (284,956  )       (277,418  )
         interest & fees
         Allowance for          (61,631   )       (59,981   )       (55,670   )
         loan losses
             Loans
             receivable,        756,861           722,115           694,077
             net
Property and equipment,         23,665            23,935            23,816
net
Deferred tax benefit            30,340            29,416            18,632
Goodwill                        5,967             5,896             5,691
Intangibles                     4,496             4,625             5,133
Other assets                    10,805            11,713            10,656     
                              $ 843,533         $ 809,325         $ 770,880    
                                                                   
LIABILITIES AND
SHAREHOLDERS' EQUITY
Liabilities:
         Notes payable          448,950           400,250           353,600
         Income tax             14,959            13,942            12,832
         payable
         Accounts payable
         and accrued            25,453            28,737            22,588     
         expenses
             Total              489,362           442,929           389,020
             liabilities
Shareholders' equity            354,171           366,396           381,860    
                              $ 843,533         $ 809,325         $ 770,880    
                                                                   
                                                                   
Selected Consolidated Statistics
(dollars in thousands)
                                                                   
                                                Three Months Ended
                                                June 30,
                                                2013              2012
                                                                   
Expenses as a percent of
total revenues:
         Provision for                            19.8%             17.8%
         loan losses
         General and
         administrative                           51.8%             52.1%
         expenses
         Interest expense                         3.2%              3.0%
                                                                   
Average gross loans                             $ 1,093,242       $ 1,000,056
receivable
                                                                   
Average loans receivable                        $ 797,374         $ 732,181
                                                                   
Loan volume                                     $ 782,099         $ 752,993
                                                                   
Net charge-offs as                                13.5%             12.2%
percent of average loans
                                                                   
Return on average assets                          12.7%             13.8%
(trailing 12 months)
                                                                   
Return on average equity                          28.1%             24.9%
(trailing 12 months)
                                                                   
Offices opened (closed)                           7                 8
during the period, net
                                                                   
Offices open at end of                            1210              1145
period

Contact:

World Acceptance Corporation
Kelly Malson, 864-298-9800
Chief Financial Officer
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