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| 8-K - WORLD ACCEPTANCE CORPORATION 8-K 4-26-2012 - WORLD ACCEPTANCE CORP | form8k.htm |
EXHIBIT 99.1
NEWS RELEASE
For Immediate Release
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Contact:
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Kelly Malson
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Chief Financial Officer
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(864) 298-9800
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WORLD ACCEPTANCE CORPORATION REPORTS
RECORD FOURTH QUARTER AND FISCAL 2012 RESULTS
GREENVILLE, S.C. (April 26, 2012) - World Acceptance Corporation (NASDAQ: WRLD) today reported record results for its fourth fiscal quarter and fiscal year ended March 31, 2012.
Fourth quarter 2012 diluted earnings per share rose 20.4% to $2.54 and revenues were up 8.8% to $148.9 million, compared with the fourth quarter of fiscal 2011. Fiscal 2012 results also reached record levels with diluted earnings per share rising 17.1% to $6.59, revenues increasing 9.9% to $540.2 million and gross loan balances growing 11.2% to $972.7 million compared with fiscal 2011.
“Our record results benefited from on-going loan demand across our markets, the contribution from new offices in both domestic markets and Mexico, and our focus on managing expenses,” stated Sandy McLean, Chairman and CEO. “We also benefited from lower bad debt costs as highlighted by twelve consecutive quarters of flat or decreased charge-offs as a percentage of net loans when compared to the corresponding quarters of the prior years.”
Net income for the fourth quarter of fiscal 2012 rose 9.9% to $37.6 million compared with $34.2 million for the same quarter of the prior year.
“Our strong growth in earnings per share also benefited from our share repurchase program over the past year,” added Mr. McLean. “We continue to use our strong balance sheet and excellent cash flow to fund our growth in loans while repurchasing shares.” During the fourth quarter of fiscal 2012, the Company repurchased 1,013,800 shares at an aggregate cost of $65.8 million. During the fiscal year ended March 31, 2012, the Company repurchased 2,181,045 shares at an aggregate cost of $139.8 million.
Total revenues increased to $148.9 million in the fourth quarter of fiscal 2012, an 8.8% increase over the $136.9 million reported in the fourth quarter ended March 31, 2011. Interest and fee income increased 9.1%, fueled by a 10.6% increase in net average loans. Insurance commissions and other income increased by 7.1% to $23.1 million in the fourth quarter of fiscal 2012 from $21.6 million in the prior year quarter. The majority of the increase was related to a 13.3% increase in insurance commissions earned. Tax preparation revenue rose to $7.4 million during the fourth quarter of fiscal 2012 compared to $7.2 million during the fourth quarter of fiscal 2011.
Gross loans outstanding increased to $972.7 million at March 31, 2012, an 11.2% increase from $875.0 million at March 31, 2011. The growth in loans was consistent with the Company’s 10.5% increase in loan volume from $540.4 million in the fourth quarter 2011 to $597.4 million in the fourth quarter 2012. The growth in loans also benefited from a 6.6% increase in offices open at year-end 2012 compared with the prior fiscal year.
Fourth quarter provision for loan losses declined to $16.7 million in fiscal 2012 compared with $17.0 million in the fourth quarter of fiscal 2011. Charge-offs as a percent of average net loans decreased 40 basis points on an annualized basis to 12.7% during the fourth quarter of fiscal 2012 from 13.1% during the prior year quarter.
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WRLD Reports Record Fourth Quarter and Fiscal 2012 Results
Page 2
April 26, 2012
The Company’s general and administrative expenses rose 9.2% to $68.5 million in the fourth quarter of fiscal 2012 compared with $62.7 million in the fourth quarter of the prior fiscal year primarily due to the increase in new offices during fiscal 2012. During the quarter the Company open or acquired 17 new offices compared to 13 in the prior year fourth quarter. Total general and administrative expenses as a percent of total revenues increased slightly from 45.8% during the fourth quarter last year to 46.0% during the current year quarter.
Full Year Results
For the year ended March 31, 2012, net income rose 10.4% to $100.7 million compared with $91.2 million in the prior fiscal year. The Company’s net income for fiscal 2011 benefited from an income tax settlement with the State of South Carolina for tax years March 31, 1997, through March 31, 2006, which resulted in the Company recognizing a tax benefit of approximately $900,000 (or $0.06 per diluted share).
Total revenues for fiscal 2012 rose to $540.2 million, a 9.9% increase over the $491.4 million in fiscal 2011. Net charge-offs as a percent of average net loans declined to 14.0% in fiscal 2012 compared with 14.3% during the prior year. Total general and administrative expenses as a percent of revenue were 48.3% in both fiscal 2012 and 2011.
Key return ratios for the fiscal year included a 13.9% return on average assets and a 23.6% return on average equity.
During fiscal 2012, the Company opened 69 offices, acquired two offices and merged one office for a total of 1,137 offices at March 31, 2012.
About World Acceptance Corporation
World Acceptance Corporation is one of the largest small-loan consumer finance companies, operating 1,137 offices in 12 states and Mexico. It is also the parent company of ParaData Financial Systems, a provider of computer software solutions for the consumer finance industry.
Fourth 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 1-888-254-2798, passcode 9259548. A simulcast of the conference call is also available on the Internet at http://www.videonewswire.com/event.asp?id=86374. 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.
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WRLD Reports Record Fourth Quarter and Fiscal 2012 Results
Page 3
April 26, 2012
World Acceptance Corporation
Consolidated Statements of Operations
(unaudited and in thousands, except per share amounts)
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Three Months Ended
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Year Ended
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March 31,
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March 31,
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2012
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2011
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2012
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2011
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Interest & fees
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$ | 125,787 | $ | 115,344 | $ | 466,481 | $ | 424,594 | ||||||||
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Insurance & other
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23,134 | 21,598 | 73,681 | 66,851 | ||||||||||||
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Total revenues
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148,921 | 136,942 | 540,162 | 491,445 | ||||||||||||
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Expenses:
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Provision for loan losses
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16,700 | 16,973 | 105,705 | 95,908 | ||||||||||||
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General and administrative expenses
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Personnel
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47,928 | 43,140 | 175,403 | 159,161 | ||||||||||||
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Occupancy & equipment
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8,583 | 8,199 | 33,865 | 31,115 | ||||||||||||
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Advertising
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2,892 | 2,714 | 14,228 | 13,056 | ||||||||||||
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Intangible amortization
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416 | 452 | 1,698 | 1,949 | ||||||||||||
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Other
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8,655 | 8,228 | 35,491 | 32,234 | ||||||||||||
| 68,474 | 62,733 | 260,685 | 237,515 | |||||||||||||
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Interest expense
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3,230 | 3,520 | 13,899 | 14,773 | ||||||||||||
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Total expenses
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88,404 | 83,226 | 380,289 | 348,196 | ||||||||||||
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Income before taxes
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60,517 | 53,716 | 159,873 | 143,249 | ||||||||||||
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Income taxes
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22,891 | 19,480 | 59,179 | 52,000 | ||||||||||||
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Net income
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$ | 37,626 | $ | 34,236 | $ | 100,694 | $ | 91,249 | ||||||||
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Diluted earnings per share
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$ | 2.54 | $ | 2.11 | $ | 6.59 | $ | 5.63 | ||||||||
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Diluted weighted average shares outstanding
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14,803 | 16,259 | 15,289 | 16,210 | ||||||||||||
Consolidated Balance Sheets
(unaudited and in thousands)
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March 31,
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March 31,
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2012
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2011
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ASSETS
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Cash
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$ | 10,768 | $ | 8,031 | ||||
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Gross loans receivable
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972,723 | 875,046 | ||||||
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Less: Unearned interest & fees
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(257,638 | ) | (228,974 | ) | ||||
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Allowance for loan losses
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(54,507 | ) | (48,355 | ) | ||||
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Loans receivable, net
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660,578 | 597,717 | ||||||
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Property and equipment, net
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23,486 | 23,366 | ||||||
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Deferred tax benefit
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18,474 | 14,480 | ||||||
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Goodwill
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5,691 | 5,634 | ||||||
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Intangibles
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5,479 | 6,365 | ||||||
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Other assets
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10,527 | 10,804 | ||||||
| $ | 735,003 | $ | 666,397 | |||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Liabilities:
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Notes payable
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$ | 279,250 | $ | 187,430 | ||||
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Income tax payable
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11,528 | 13,098 | ||||||
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Accounts payable and accrued expenses
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25,350 | 23,294 | ||||||
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Total liabilities
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316,128 | 223,822 | ||||||
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Shareholders' equity
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418,875 | 442,575 | ||||||
| $ | 735,003 | $ | 666,397 | |||||
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WRLD Reports Record Fourth Quarter and 2012 Results
Page 4
April 26, 2012
Selected Consolidated Statistics
(dollars in thousands)
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Three Months Ended
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Year ended
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March 31,
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March 31,
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2012
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2011
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2012
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2011
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Expenses as a percent of total revenues:
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Provision for loan losses
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11.2 | % | 12.4 | % | 19.6 | % | 19.5 | % | ||||||||
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General and administrative expenses
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46.0 | % | 45.8 | % | 48.3 | % | 48.3 | % | ||||||||
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Interest expense
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2.2 | % | 2.6 | % | 2.6 | % | 3.0 | % | ||||||||
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Average gross loans receivable
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$ | 1,011,104 | $ | 910,704 | $ | 965,044 | $ | 860,538 | ||||||||
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Average net loans receivable
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$ | 742,437 | $ | 671,585 | $ | 707,244 | $ | 633,748 | ||||||||
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Loan volume
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$ | 597,401 | $ | 540,448 | $ | 2,819,590 | $ | 2,571,908 | ||||||||
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Net charge-offs as percent of average loans
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12.7 | % | 13.1 | % | 14.0 | % | 14.3 | % | ||||||||
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Return on average assets (rolling 12 month period)
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13.9 | % | 13.9 | % | 13.9 | % | 13.9 | % | ||||||||
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Return on average equity (rolling 12 month period)
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23.6 | % | 22.8 | % | 23.6 | % | 22.8 | % | ||||||||
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Offices opened (closed) during the period, net
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17 | 13 | 70 | 77 | ||||||||||||
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Offices open at end of period
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1,137 | 1,067 | 1,137 | 1,067 | ||||||||||||
END