Slide 1: World Acceptance Corporation, December 2009
NASDAQ: WRLD December 2009 .
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation constitute “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than those of historical fact, as well as those identified by the use of words such as “anticipate,”
Slide 3: Agenda: Company overview
• Company overview Credit & portfolio review Growth strategy Financial review 3
Slide 4: Leading small loan consumer finance company
•Leading small loan consumer finance company •Founded in 1962 in Greenville, Greenville South Carolina •Serves individuals with limited access to banks and other traditional credit sources •975 consumer loan offices in eleven states and Mexico as of December 31, 2009 •$1.94 billion gross loan volume
Slide 5: * Restated in accordance with FSP APB14-1 “Accounting for convertible debt instruments that may
* Restated in accordance with FSP APB14-1 “Accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement)” 5
Slide 6: Rural America branch profile
Rural America – Typically downtown or small strip center 1,500 1 500 SS.F. F – approximately $1,300 $1 300 per month lease 3.3 employees 850 accounts as of December 31 31, 2009 $891,000 gross loans receivable as of December 31,, 2009 Average loan made during fiscal 2009 - $1,028 Averag
Slide 7: Medium to large cities branch profile
Medium M di to large l cities– ii Typically T i ll in i smallll strip i centers 1,725 S.F. – approximately $1,700 per month lease 7.6 7 6 employees 1,120 accounts as of December 31, 2009 $429,000 gross loans receivable as of December 31, 2009 Average loan made during fiscal 2009 - $601
Slide 8: Offices by state and Mexico
65 61 61 82 95 39 95 44 101 229 38 Mexico - 65 December 31, 2009: 975 offices 8
Slide 9: Loan portfolio by state
Kentucky, 8.9% Alabama, 4.2% Ww Mexico, 2.6% i f New Mexico, 2.6% Georgia, 14.1% Missouri, 5.9% Illinois, 6.4% _ Texas, 20.5% Tennesses, 13.6% Louisiana, 2.6% Oklahoma, 6.1% Mexico, 3.3% South Carolina, 11.8% As of December 31, 2009
Slide 10: Field employees
4 Sr. Vice ■ 74.5% Female Presidents ■ Average branch level salary of (15.6 years) $24,790 ■ Significant bonus opportunity 15 Vice Presidents of Operations in addition to salary (15.9 years) ■ Average Tenure 3.1 years 97 Supervisors (11.1 years) 2,995 Branch Employees (3.1 years) (Average Tenure) (1
Slide 11: Agenda: Credit & portfolio review
Company overview • Credit & portfolio review Growth strategy Financial review 11
Slide 12: Lending and collections approach
pp Decentralized loan approval and collections Individual loan approval authority based on experience and position Local presence with strong emphasis on “relationship” relationship lending Consistent underwriting policies with objective credit evaluation l ti criteria it i Annual audits b
Slide 13: Loan delinquency
Loan delinquency — 61 Days + Delinquencies as % of period — end gross loans QTD 4.8% 4.3% 3.3 3.0 _ Recency m Contractual 4.3% 4.2% 4.2% $, 4.1% 4.0% | 3.6% 5 4 3.8% Vi om 7 27 mo ie i 2.6 24 2.2 ° 24 2.2 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Dec. Dec. 2008 rr
Slide 14: Credit loss experience, fiscal year
Credit loss experience — Fiscal Year Charge-off as % average loans receivable 25% - 18.7% | 14.8% 14.7% 14.7% 14.6% 14.8% 14.5% . . . . . . 0% qT T T tT tT tT T ul 2002 2003 2004 2005 2006 2007 2008 2009 As of March 31
Slide 15: Credit loss experience, first nine months
Credit loss experience — First nine months Charge-off as % average loans receivable (annualized) 25% - 17.1% 15.8% 16.0% 18.0% 14.7% 15.0% . . . . . . 2003 2004 2005 2006 2007 2008 2009 As of December 31
Slide 16: Agenda: Growth strategy
Company overview Credit & portfolio review • Growth strategy Financial review 16
Slide 17: Growth strategy
Open 55 new offices in the US during fiscal 2011 Open 15 new offices in Mexico during fiscal 2011 Increase marketingg for tax p preparation p business Evaluate acquisitions as opportunities arise Evaluate new states with favorable regulations g and demographics for de novo openings Ident
Slide 18: CAGR from fiscal 1999 to December 2009
*CAGR from Fiscal Year 1999 – December 2009 18
Slide 19: CAGR from fiscal 1999 to 2009
*CAGR from Fiscal Year 1999 - 2009 19
Slide 20: Loan origination volume
Loan origination volume (in millions) 2200 - 2000 - 1800 - 1600 - 1400 - 1200 - 1000 - 800 - 600 - 1989 2000 2001 2002 2003 2004 #2005 2006 2007 2008 As of Fiscal Year Ended
Slide 21: New and acquired offices by fiscal year
Number Retained Number Fiscal year offices offices Accounts Gross loans Fiscal 2002 36 15 15 771 15,771 $ 14 14,890,000 890 000 Fiscal 2003 42 21 19,931 $ 22,558,000 Fiscal 2004 68 39 28,888 $ 24,499,000 Fiscal 2005 60 30 26,969 $ 27,434,000 Fiscal 2006 25 3 11,096 $ 9,084,000 Fiscal 2007 86 36 41,9
Slide 22: Larger loan product
Introduced in Georgia in 1996, expanded in 1997 Provides additional service for new and existing g customers Extends lendingg life cycle y with customer base Represents 24.4% of loan portfolio as of December 31, 2009 Loans typically from $1,500 to $3,500 Lower losses and risks 22
Slide 23: Tax preparation and refund anticipation loans
Piloted 39 offices in 1999, expanded to all in 2000 Provides additional service for existing customers RAL’s are provided through a third party bank Excellent fit for World’s World s customer demographics Excellent fit for World’s employees due to seasonality Excellent revenue potential
Slide 24: Why Mexico?
Whyy Mexico? Favorable regulatory climate Tremendous potential market Very V littl competition little titi Status at December 31, 2009 Sixty-five offices opened since September 2005 Approximately 72,500 accounts Approximately $27.9 $ million in gross ledger balance 13.6% net charge-off
Slide 25: Agenda: Financial review
Company overview Credit & portfolio review Growth strategy • Financial review 25
Slide 26: Growth and return metrics
9 months Fiscal Year 2002 2003 2004 2005 2006 2007 (1) 2008 (1) 2009 (1) December 2008 vs. December D b 2009 Revenue 13.3% 14.0% 15.1% 17.6% 15.4% 20.2% 18.4% 13.8% 13.4% Increase Net Income 24.0% 18.2% 25.8% 18.2% 13.3% 19.9% 8.8% 12.4% 45.9% Increase Avg. Net Loan 10.4% 12.0% 13.4% 18.1% 14.2% 20.
Slide 27: CAGR from fiscal year 1999 – 2009 Restated in accordance with FSP APB14-1 “Accounting
(1) CAGR from fiscal year 1999 – 2009 (2) Restated in accordance with FSP APB14-1 “Accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement)” 27
Slide 28: CAGR from fiscal year 1999 – 2009 Restated in accordance with FSP APB14-1 “Accounting
(1) CAGR from fiscal year 1999 – 2009 (2) Restated in accordance with FSP APB14-1 “Accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement)” 28
Slide 29: (1) Excludes $5.4 million legal settlement (2) Restated in accordance with FSP APB14-1 “Accounting
(1) Excludes $5.4 million legal settlement (2) Restated in accordance with FSP APB14-1 “Accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement)” 29
Slide 30: (1) Excludes $5.4 million legal settlement (2) Restated in accordance with FSP APB14-1 “Accounting
(1) Excludes $5.4 million legal settlement (2) Restated in accordance with FSP APB14-1 “Accounting for convertible debt instruments that may be settled 30 in cash upon conversion (including partial cash settlement)”
Slide 31: Face value of the convertible notes
*Face value of the convertible notes 31
Slide 32: Share repurchases
• Fiscal 1996 176,000 shares $10.00 • Fiscal 1997 1,810,000 shares $ 7.88 • Fiscal 2000 144,000 shares $ 5.03 • Fiscal 2001 275,000 shares $ 5.21 • Fiscal 2002 251 891 shares 251,891 $ 8 8.65 65 • Fiscal 2003 1,623,549 shares $ 7.39 • Fiscal 2005 486,000 shares $18.00 • Fiscal 2006 800,400 shares $2
Slide 33: Debt to total capital ratio
D/T Ratio 51.4 46.0 60.1 57.6 56.7 53.4 52.6 44.9 46.9 37.7 30.7 32.5 42.8 46.7 41.3 43.8 Note: Total debt represents face value of the convertible notes plus outstanding revolver balance 33