
Company Website:
http://www.worldacceptance.com
GREENVILLE, S.C. -- (Business Wire)
World Acceptance Corporation (NASDAQ: WRLD) today reported financial
results for its third fiscal quarter and nine months ended December
31, 2012. The Company’s results highlight the strong demand for its loan
product, its ongoing focus on expense control, its close management of
credit risks and the contribution from new offices.
Net income for the third quarter rose 5.6% to $20.7 million compared to
$19.6 million for the same quarter of the prior year. Net income per
diluted share increased 21.5% to $1.58 in the third quarter of fiscal
2013 compared to $1.30 in the prior year’s third quarter. This was the
Company’s 48th consecutive year-over-year quarterly increase
in diluted earnings per share.
Total revenues increased to $149.6 million in the third quarter of
fiscal 2013, a 10.1% increase over the $135.9 million reported in the
third quarter last year. The primary driver for the growth in revenue
was an 11.3% increase in average net loans and the associated growth in
interest and fees. Gross loans outstanding increased 11.0% to $1.2
billion at December 31, 2012, up from $1.1 billion at December 31, 2011.
Interest and fees rose 11.3% to $130.3 million in the third quarter of
fiscal 2013 compared to $117.1 million in the third quarter of fiscal
2012.
Sandy McLean, CEO, stated, “The Company’s growth in earnings per share
has also benefitted from our ongoing share repurchase program during the
current fiscal year. We continue to use our excellent cash flow and
strong financial position to fund our growth while repurchasing shares.”
Over the past nine months, the Company has repurchased 2,017,677 shares
of its common stock, representing a 13.1% decrease in diluted weighted
average shares outstanding compared with the third quarter of last
fiscal year.
Mr. McLean stated, “Our net charge-offs as a percentage of average net
loans remained near historical levels at 15.6% on an annualized basis
during the latest quarter compared to 15.9% in the third quarter of the
prior year.” The Company’s past due loans, as measured by those that are
61+ days delinquent on a contractual basis, remained constant at 4.3%
when comparing the two quarterly periods.
The provision for loan losses rose 3.6% to $37.4 million in the third
quarter of fiscal 2013 compared to the third quarter of fiscal 2012,
primarily due to the growth in the allowance for loan losses on the
11.0% increase in the loan portfolio. This increase was offset by a
decrease in the Company’s net charge-offs. “We remain focused on
monitoring our loan portfolio in light of the difficult economy and we
believe that our allowance for loan losses is adequate based on current
trends,” noted Mr. McLean.
The Company’s general and administrative expenses rose to $74.8 million
in the third quarter of fiscal 2013 compared with $66.2 million in the
third quarter of the prior fiscal year. As a percent of total revenues,
general and administrative expenses increased to 50.0% during the
current quarter compared to 48.7% during the prior year quarter.
The Company’s effective tax rate was lower in the third quarter of the
prior fiscal year due to an $882,000 tax benefit related to the
reduction of its effective rate for state income taxes. The effective
tax rate was 35.3% for the third quarter of fiscal 2012 compared to
37.4% in the third quarter of fiscal 2013.
Other key return ratios for the period included a 13.0% return on
average assets and a 26.0% return on average equity (both on a trailing
12 month basis).
Nine-Month Results
For the first nine-months of the fiscal year, net income rose 5.0% to
$66.2 million compared to $63.1 million for the nine-months ended
December 31, 2011. Fully diluted net income per share rose 20.8% to
$4.93 in the first nine-months of fiscal 2013 compared to $4.08 for the
first nine-months of fiscal 2012. Diluted weighted average shares
outstanding were down 13.1% to 13.4 million for the first nine months of
fiscal 2013 compared with the same period in fiscal 2012, benefiting
from the Company’s stock repurchase program.
Total revenues for the first nine-months of fiscal 2013 rose 7.8% to
$421.9 million compared to $391.2 million during the corresponding
period of the previous year. Annualized net charge-offs as a percent of
average net loans decreased from 14.4% during the prior year nine-month
period to 14.0% for the first nine-months of fiscal 2013.
During the first nine-months of the fiscal year, the Company opened 49
new offices, purchased three offices and closed three nonperforming
offices, resulting in a total of 1,186 offices at December 31, 2012.
About World Acceptance Corporation
World Acceptance Corporation is one of the largest small-loan consumer
finance companies, operating 1,186 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.
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 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 practical.
Interested parties may participate in this call by dialing
1-888-364-3108, passcode 3428156. A simulcast of the conference
call is also available on the Internet at http://www.videonewswire.com/event.asp?id=91475.
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.
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World Acceptance Corporation |
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Consolidated Statements of Operations |
(unaudited and in thousands, except per share amounts)
|
|
| |
|
| | |
| | |
| | |
| | |
| | | | | | Three Months Ended | | | Nine Months Ended |
| | | | | | December 31, | | | December 31, |
| | | | | | 2012 | | | 2011 | | | 2012 | | | 2011 |
| | | | | | | | | | | | | | |
|
Interest & fees
| | | $ | 130,312 | |
$
|
117,113
| | | $ | 367,429 | | |
$
|
340,694
| |
Insurance & other
| | | | 19,328 | | |
18,833
|
| | | 54,445 |
| | |
50,547
|
|
|
Total revenues
| | | | 149,640 | | |
135,946
| | | | 421,874 | | | |
391,241
| |
Expenses:
| | | | | | | | | | | | | |
|
Provision for loan losses
| | | | 37,395 | | |
36,109
| | | | 93,412 | | | |
89,005
| |
|
General and administrative expenses
| | | | | | | | | | | | | |
| |
Personnel
| | | | 48,319 | | |
42,098
| | | | 141,402 | | | |
127,475
| |
| |
Occupancy & equipment
| | | | 9,110 | | |
8,343
| | | | 26,891 | | | |
25,282
| |
| |
Advertising
| | | | 6,535 | | |
5,854
| | | | 11,981 | | | |
11,336
| |
| |
Intangible amortization
| | | | 329 | | |
415
| | | | 1,037 | | | |
1,282
| |
| |
Other
| | | | 10,505 | | |
9,524
|
| | | 28,804 |
| | |
26,836
|
|
| | | | | | 74,798 | | |
66,234
| | | | 210,115 | | | |
192,211
| |
|
Interest expense
| | | | 4,404 | | |
3,338
|
| | | 12,396 |
| | |
10,669
|
|
| |
Total expenses
| | | | 116,597 | | |
105,681
|
| | | 315,923 |
| | |
291,885
|
|
Income before taxes
| | | | 33,043 | | |
30,265
| | | | 105,951 | | | |
99,356
| |
Income taxes
| | | | 12,369 | | |
10,683
|
| | | 39,761 |
| | |
36,288
|
|
Net income
| | | $ | 20,674 | |
$
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19,582
|
| | $ | 66,190 |
| |
$
|
63,068
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Diluted earnings per share
| | | $ | 1.58 | |
$
|
1.30
|
| | $ | 4.93 |
| |
$
|
4.08
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Diluted weighted average shares outstanding
| | | | 13,100 | | |
15,120
|
| | | 13,431 |
| | |
15,454
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Consolidated Balance Sheets |
(unaudited and in thousands)
|
| | | | | | | | | | | | | | |
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| | | | | | | | | December 31, | |
March 31,
| | |
December 31,
|
| | | | | | | | | 2012 | | | 2012 | | | 2011 |
| | ASSETS | | | | | | | | | |
Cash
| |
$
| 17,174 | | |
$
|
10,768
| | |
$
|
14,266
| |
Gross loans receivable
| | | 1,183,706 | | | |
972,723
| | | |
1,066,078
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Less: Unearned interest & fees
| | | (324,731 | ) | | |
(257,638
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)
| | |
(287,849
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)
|
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Allowance for loan losses
| | | (66,804 | ) | | |
(54,507
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)
| | |
(61,119
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)
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| |
Loans receivable, net
| | | 792,171 | | | |
660,578
| | | |
717,110
| |
Property and equipment, net
| | | 24,105 | | | |
23,486
| | | |
22,820
| |
Deferred income taxes
| | | 28,248 | | | |
18,474
| | | |
20,632
| |
Goodwill
| | | 5,896 | | | |
5,691
| | | |
5,634
| |
Intangibles
| | | 4,661 | | | |
5,479
| | | |
5,725
| |
Other assets
| | | 11,929 |
| | |
10,527
|
| | |
10,367
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| | | |
$
| 884,184 |
| |
$
|
735,003
|
| |
$
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796,554
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| | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
Liabilities:
| | | | | | | | | |
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Notes payable
| | | 492,700 | | | |
279,250
| | | |
328,915
| |
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Income tax payable
| | | 5,190 | | | |
11,528
| | | |
5,443
| |
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Accounts payable and accrued expenses
| | | 26,786 |
| | |
25,350
|
| | |
22,685
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Total liabilities
| | | 524,676 | | | |
316,128
| | | |
357,043
| |
Shareholders' equity
| | | 359,508 |
| | |
418,875
|
| | |
439,511
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|
| | | |
$
| 884,184 |
| |
$
|
735,003
|
| |
$
|
796,554
|
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Selected Consolidated Statistics |
(dollars in thousands)
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| |
| | | | Three Months Ended | | Nine Months Ended |
| | | | December 31, | | December 31, |
| | | | 2012 | | 2011 | | 2012 | | 2011 |
| | | | | | | | | |
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Expenses as a percent of total revenues:
| | | | | | | | | |
|
Provision for loan losses
| | | | 25.0 | % | | |
26.6
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%
| | | 22.1 | % | | |
22.7
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%
|
|
General and administrative expenses
| | | | 50.0 | % | | |
48.7
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%
| | | 49.8 | % | | |
49.1
|
%
|
|
Interest expense
| | | | 2.9 | % | | |
2.5
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%
| | | 2.9 | % | | |
2.7
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%
|
| | | | | | | | | |
|
Average gross loans receivable
| | | $ | 1,124,333 | | |
$
|
1,003,584
| | | $ | 1,063,557 | | |
$
|
956,723
| |
| | | | | | | | | |
|
Average loans receivable
| | | $ | 816,671 | | |
$
|
733,613
| | | $ | 774,896 | | |
$
|
700,266
| |
| | | | | | | | | |
|
Loan volume
| | | $ | 865,507 | | |
$
|
816,093
| | | $ | 2,379,209 | | |
$
|
2,222,189
| |
| | | | | | | | | |
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Net charge-offs as percent of average loans
| | | | 15.6 | % | | |
15.9
|
%
| | | 14.0 | % | | |
14.4
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%
|
| | | | | | | | | |
|
Return on average assets (trailing 12 months)
| | | | 13.0 | % | | |
13.4
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%
| | | 13.0 | % | | |
13.4
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%
|
| | | | | | | | | |
|
Return on average equity (trailing 12 months)
| | | | 26.0 | % | | |
22.8
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%
| | | 26.0 | % | | |
22.8
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%
|
| | | | | | | | | |
|
Offices opened (closed) during the period, net
| | | | 13 | | | |
12
| | | | 49 | | | |
53
| |
| | | | | | | | | |
|
Offices open at end of period
| | | | 1,186 | | | |
1,120
| | | | 1,186 | | | |
1,120
| |
| | | | | | | | |
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Contacts:
World Acceptance Corporation
Kelly Malson, Chief Financial Officer,
864-298-9800
Source: World Acceptance Corporation
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