South Carolina
|
570425114
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
108
Frederick Street
Greenville, South
Carolina
|
29607
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
(864)
298-9800
|
||
(Registrant's
telephone number, including area
code)
|
Title of Each
Class
|
Name of Each Exchange on Which Registered
|
|
Common
Stock, no par value
|
The
NASDAQ Stock Market LLC
|
|
(NASDAQ
Global Select Market)
|
Large
accelerated filer o
|
Accelerated
filer x
|
|
Non-accelerated
filer o
|
Smaller reporting company o | |
(Do not check if smaller reporting company) |
Item
No.
|
Page
|
|
PART
I
|
||
1.
|
Business
|
1
|
1A.
|
Risk
Factors
|
9
|
1B.
|
Unresolved
Staff Comments
|
14
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2.
|
Properties
|
14
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3.
|
Legal
Proceedings
|
14
|
4.
|
Submission
of Matters to a Vote of Security Holders
|
14
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PART
II
|
||
5.
|
Market
for Registrant's Common Equity, Related Stockholder Matters and
Issuer
Purchases of
Equity Securities
|
14
|
6.
|
Selected
Financial Data
|
15
|
7.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operations
|
16
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7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
26
|
8.
|
Financial
Statements and Supplementary Data
|
27
|
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
55
|
9A.
|
Controls
and Procedures
|
55
|
|
||
9B.
|
Other
Information
|
55
|
|
||
PART
III
|
|
|
|
||
10.
|
Directors,
Executive Officers and Corporate Governance
|
56
|
|
||
11.
|
Executive
Compensation
|
56
|
|
||
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
56
|
|
||
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
56
|
|
||
14.
|
Principal
Accountant Fees and Services
|
57
|
|
||
PART
IV
|
|
|
|
||
15.
|
Exhibits
and Financial Statement Schedules
|
57
|
At
March 31,
|
|||||||||||||||||||||||||||||||
State
|
1999
|
|
2000
|
|
2001
|
|
2002
|
|
2003
|
|
2004
|
|
2005
|
|
2006
|
|
2007
|
|
2008
|
||||||||||||
South
Carolina
|
63
|
63
|
62
|
62
|
65
|
65
|
65
|
68
|
89
|
92
|
|||||||||||||||||||||
Georgia
|
49
|
48
|
48
|
52
|
52
|
74
|
76
|
74
|
96
|
97
|
|||||||||||||||||||||
Texas
|
131
|
135
|
135
|
136
|
142
|
150
|
164
|
168
|
183
|
204
|
|||||||||||||||||||||
Oklahoma
|
40
|
43
|
43
|
46
|
45
|
47
|
51
|
58
|
62
|
70
|
|||||||||||||||||||||
Louisiana
|
20
|
21
|
20
|
20
|
20
|
20
|
20
|
24
|
28
|
34
|
|||||||||||||||||||||
Tennessee
|
30
|
35
|
38
|
40
|
45
|
51
|
55
|
61
|
72
|
80
|
|||||||||||||||||||||
Illinois
|
20
|
30
|
30
|
29
|
28
|
30
|
33
|
37
|
40
|
58
|
|||||||||||||||||||||
Missouri
|
16
|
18
|
22
|
22
|
22
|
26
|
36
|
38
|
44
|
49
|
|||||||||||||||||||||
New
Mexico
|
10
|
13
|
12
|
12
|
16
|
19
|
20
|
22
|
27
|
32
|
|||||||||||||||||||||
Kentucky
(1)
|
-
|
4
|
10
|
22
|
30
|
30
|
36
|
41
|
45
|
52
|
|||||||||||||||||||||
Alabama
(2)
|
-
|
-
|
-
|
-
|
5
|
14
|
21
|
26
|
31
|
35
|
|||||||||||||||||||||
Colorado
(3)
|
-
|
-
|
-
|
-
|
-
|
-
|
2
|
-
|
-
|
-
|
|||||||||||||||||||||
Mexico
(4)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3
|
15
|
35
|
|||||||||||||||||||||
Total
|
379
|
410
|
420
|
441
|
470
|
526
|
579
|
620
|
732
|
838
|
(1) |
The
Company commenced operations in Kentucky in March
2000.
|
(2) |
The
Company commenced operations in Alabama in January
2003.
|
(3)
|
The
Company commenced operations in Colorado in August 2004 and ceased
operations in April 2005.
|
(4)
|
The
Company commenced operations in Mexico in September
2005.
|
At
March 31,
|
|||||||||||||||||||||||||||||||
State
|
1999
|
|
2000
|
|
2001
|
|
2002
|
|
2003
|
|
2004
|
|
2005
|
|
2006
|
|
2007
|
|
2008
|
||||||||||||
South
Carolina
|
22
|
%
|
21
|
%
|
21
|
%
|
19
|
%
|
15
|
%
|
14
|
%
|
12
|
%
|
11
|
%
|
13
|
%
|
12
|
%
|
|||||||||||
Georgia
|
16
|
15
|
12
|
12
|
12
|
13
|
13
|
13
|
14
|
15
|
|||||||||||||||||||||
Texas
|
31
|
28
|
25
|
24
|
23
|
21
|
20
|
24
|
23
|
22
|
|||||||||||||||||||||
Oklahoma
|
7
|
6
|
6
|
5
|
5
|
5
|
5
|
6
|
5
|
5
|
|||||||||||||||||||||
Louisiana
|
4
|
3
|
3
|
3
|
3
|
3
|
3
|
3
|
3
|
3
|
|||||||||||||||||||||
Tennessee
|
12
|
13
|
11
|
12
|
14
|
15
|
18
|
15
|
15
|
14
|
|||||||||||||||||||||
Illinois
|
3
|
4
|
5
|
5
|
5
|
5
|
5
|
5
|
6
|
6
|
|||||||||||||||||||||
Missouri
|
2
|
3
|
4
|
5
|
5
|
6
|
6
|
6
|
5
|
6
|
|||||||||||||||||||||
New
Mexico
|
3
|
3
|
3
|
3
|
3
|
3
|
3
|
3
|
3
|
3
|
|||||||||||||||||||||
Kentucky
(1)
|
-
|
4
|
10
|
12
|
13
|
12
|
12
|
11
|
9
|
9
|
|||||||||||||||||||||
Alabama
(2)
|
-
|
-
|
-
|
-
|
2
|
3
|
3
|
3
|
3
|
3
|
|||||||||||||||||||||
Colorado
(3)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||
Mexico
(4)
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
2
|
|||||||||||||||||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
(1)
|
The
Company commenced operations in Kentucky in March
2000.
|
(2) |
The
Company commenced operations in Alabama in January
2003.
|
(3) |
The
Company commenced operations in Colorado in August 2004 and ceased
operations in April 2005.
|
(4) |
The
Company commenced operations in Mexico in September
2005.
|
Total Number
|
|
Average Gross Loan
|
|
||||
|
|
of Loans
|
|
Balance
|
|||
South
Carolina
|
80,297
|
$
|
903
|
||||
Georgia
|
76,846
|
1,147
|
|||||
Texas
|
192,539
|
687
|
|||||
Oklahoma
|
44,005
|
737
|
|||||
Louisiana
|
21,767
|
785
|
|||||
Tennessee
|
80,060
|
1,049
|
|||||
Illinois
|
36,828
|
911
|
|||||
Missouri
|
33,857
|
1,041
|
|||||
New
Mexico
|
23,029
|
792
|
|||||
Kentucky
|
40,441
|
1,272
|
|||||
Alabama
|
23,640
|
862
|
|||||
Mexico
|
30,326
|
467
|
|||||
Total
|
683,635
|
$
|
877
|
Period
of Service as Executive Officer and
|
||||
Pre-executive
Officer Experience (if an
|
||||
Name
and Age
|
Position
|
Executive
Officer for Less Than Five Years)
|
||
A.
Alexander McLean, III (56)
|
Chief
Executive Officer;
Chairman
and Director
|
Chief
Executive Officer since March 2006; Executive
Vice
President from August 1996 until March 2006;
Senior
Vice President from July 1992 until August
1996;
CFO from June 1989 until March 2006; Director
since
June 1989; and Chairman since August 2007
|
||
Kelly
M. Malson (37)
|
Vice
President and Chief
Financial
Officer
|
Vice
President and CFO since March 2006; Vice
President
of Internal Audit from September 2005 to March 2006; Financial
Compliance
Manager,
Itron
Inc., from July 2004 to August 2005; Senior
Manager,
KPMG LLP from April 2002 until July
2004
|
Mark
C. Roland (51)
|
President
and Chief Operating
Officer and
Director
|
President
since March 2006; Chief Operating
Officer
since April 2005; Executive Vice
President
from April 2002 to March 2006; Senior Vice
President
from January 1996 to April 2002
|
||
Jeff
Tinney (45)
|
Senior
Vice President,
Western
Division
|
Senior
Vice President, Western Division, since
June
2007; Vice President, Operations – Texas and New
Mexico
from June 2001 to June 2007; Vice President,
Operations
– Texas and Louisiana from April 1998 to
June
2001; Vice President, Operations – Louisiana from January 1997 to April
1998
|
||
Daniel
Clinton Dyer (35)
|
Senior
Vice President,
Central
Division
|
Senior
Vice President, Central Division since
June
2005; Vice President, Operations –
Tennessee
and Missouri from April 2002 to June
2005;
Supervisor of Nashville District from September
2001
to March 2002; Manager in Nashville from January
1997
to August 2001
|
||
James
Daniel Walters (40)
|
Senior
Vice President,
Southern
Division
|
Senior
Vice President, Southern Division since
April
2005; Vice President, Operations – South
Carolina
and Alabama from August 1998 to
March
2005.
|
||
Francisco
J. Sauza (53)
|
Senior
Vice President
|
Vice
President of Operations since April 2005; President of Border Consulting
Group from July 2004 to March 2005; Senior Manager of KPMG and
BearingPoint Consulting from January 2000 to June 2004; Partner
of Atlanta
Consulting Group from February 1998 to January
2000.
|
· |
the
prevailing laws and regulatory environment of each state
in which we
operate or seek to operate, which are subject to change at
any time;
|
· |
our
ability to obtain and maintain any regulatory approvals,
government
permits or licenses that may be required;
|
· |
the
degree of competition in new markets and its effect on our
ability to
attract new customers;
|
· |
our
ability to compete for expansion opportunities in suitable
locations;
|
· |
our
ability to recruit, train and retain qualified personnel;
|
· |
our
ability to adapt our infrastructure and systems to accommodate
our growth;
and
|
· |
our
ability to obtain adequate financing for our expansion
plans.
|
· |
Declaring
or paying dividends or making distributions on or acquiring common
or
preferred stock or warrants or
options;
|
· |
Redeeming
or purchasing or prepaying principal or interest on subordinated
debt
|
· |
Incurring
additional indebtedness; and
|
· |
Entering
into a merger, consolidation or sale of substantial assets or
subsidiaries.
|
(c) Total Number
|
(d) Approximate Dollar
|
||||||||||||
(a) Total
|
|
(b) Average
|
|
of Shares Purchased
|
|
Value of Shares
|
|
||||||
|
|
Number of
|
|
Price Paid
|
|
as Part of Publicly
|
|
That May Yet be
|
|
||||
|
|
Shares
|
|
per
|
|
Announced Plans
|
|
Purchased Under the
|
|
||||
|
|
Purchased
|
|
Share
|
|
or Programs
|
|
Plans or Programs
|
|||||
January
1 through January 31, 2008
|
-
|
-
|
-
|
11,547,976
|
|||||||||
February
1 through February 29, 2008
|
190,000
|
30.82
|
190,000
|
15,693,026
|
(1)
|
||||||||
March
1 through March 31, 2008
|
495,000
|
29.75
|
495,000
|
964,709
|
|||||||||
Total
for the Quarter
|
685,000
|
$
|
30.05
|
685,000
|
Fiscal
2008
|
|||||||
Quarter
|
|
High
|
|
Low
|
|||
First
|
$
|
45.74
|
$
|
39.27
|
|||
Second
|
43.16
|
27.76
|
|||||
Third
|
35.59
|
26.40
|
|||||
Fourth
|
35.50
|
19.89
|
Fiscal
2007
|
|||||||
Quarter
|
|
High
|
|
Low
|
|||
First
|
$
|
36.90
|
$
|
25.12
|
|||
Second
|
47.30
|
33.90
|
|||||
Third
|
50.81
|
43.60
|
|||||
Fourth
|
49.10
|
37.00
|
Years
Ended March 31,
|
||||||||||||||||
2008
|
|
2007
|
|
2006
|
|
2005
|
|
2004
|
|
|||||||
Statement
of Operations Data:
|
||||||||||||||||
Interest
and fee income
|
$
|
292,457
|
$
|
247,007
|
$
|
204,450
|
$
|
177,582
|
$
|
151,499
|
||||||
Insurance
commissions and other income
|
53,590
|
45,311
|
38,822
|
33,176
|
27,653
|
|||||||||||
Total
revenues
|
346,047
|
292,318
|
243,272
|
210,758
|
179,152
|
|||||||||||
Provision
for loan losses
|
67,542
|
51,925
|
46,026
|
40,037
|
33,481
|
|||||||||||
General
and administrative expenses
|
179,219
|
153,627
|
128,514
|
112,223
|
96,313
|
|||||||||||
Interest
expense
|
11,569
|
9,596
|
7,137
|
4,640
|
3,943
|
|||||||||||
Total
expenses
|
258,330
|
215,148
|
181,677
|
156,900
|
133,737
|
|||||||||||
Income
before income taxes
|
87,717
|
77,170
|
61,595
|
53,858
|
45,415
|
|||||||||||
Income
taxes
|
34,721
|
29,274
|
23,080
|
19,868
|
16,650
|
|||||||||||
Net
income
|
$
|
52,996
|
$
|
47,896
|
$
|
38,515
|
$
|
33,990
|
$
|
28,765
|
||||||
Net
income per common share (diluted)
|
$
|
3.05
|
$
|
2.60
|
$
|
2.02
|
$
|
1.74
|
$
|
1.49
|
||||||
Diluted
weighted average shares
|
17,375
|
18,394
|
19,098
|
19,558
|
19,347
|
|||||||||||
Balance
Sheet Data (end of period):
|
||||||||||||||||
Loans
receivable, net of unearned and deferred fees
|
$
|
445,091
|
$
|
378,038
|
$
|
312,746
|
$
|
267,024
|
$
|
236,528
|
||||||
Allowance
for loan losses
|
(33,526
|
)
|
(27,840
|
)
|
(22,717
|
)
|
(20,673
|
)
|
(17,261
|
)
|
||||||
Loans
receivable, net
|
411,565
|
350,198
|
290,029
|
246,351
|
219,267
|
|||||||||||
Total
assets
|
486,110
|
411,116
|
332,784
|
293,507
|
261,969
|
|||||||||||
Total
debt
|
214,900
|
171,200
|
100,600
|
83,900
|
95,032
|
|||||||||||
Shareholders'
equity
|
234,305
|
215,493
|
210,430
|
189,711
|
156,580
|
|||||||||||
Other
Operating Data:
|
||||||||||||||||
As
a percentage of average loans receivable:
|
||||||||||||||||
Provision
for loan losses
|
15.8
|
%
|
14.5
|
%
|
15.4
|
%
|
15.3
|
%
|
15.1
|
%
|
||||||
Net
charge-offs
|
14.5
|
%
|
13.3
|
%
|
14.8
|
%
|
14.6
|
%
|
14.7
|
%
|
||||||
Number
of offices open at year-end
|
838
|
732
|
620
|
579
|
526
|
Years
Ended March 31,
|
||||||||||
2008
|
2007
|
2006
|
||||||||
|
(Dollars
in thousands)
|
|||||||||
Average
gross loans receivable
(1)
|
$
|
576,050
|
480,120
|
396,582
|
||||||
Average
net loans receivable
(2)
|
426,524
|
358,047
|
298,267
|
|||||||
Expenses
as a percentage of total revenue:
|
||||||||||
Provision
for loan losses
|
19.5
|
%
|
17.8
|
%
|
18.9
|
%
|
||||
General
and administrative
|
51.8
|
%
|
52.6
|
%
|
52.8
|
%
|
||||
Total
interest expense
|
3.3
|
%
|
3.3
|
%
|
2.9
|
%
|
||||
Operating
margin (3)
|
28.7
|
%
|
29.7
|
%
|
28.3
|
%
|
||||
Return
on average assets
|
11.3
|
%
|
12.5
|
%
|
11.9
|
%
|
||||
Offices
opened and acquired, net
|
106
|
112
|
41
|
|||||||
Total
offices (at period end)
|
838
|
732
|
620
|
(1)
|
Average
gross loans receivable have been determined by averaging month-end
gross
loans receivable over the indicated
period.
|
(2)
|
Average
loans receivable have been determined by averaging month-end gross
loans
receivable less unearned interest and deferred fees over the indicated
period.
|
(3)
|
Operating
margin is computed as total revenues less provision for loan losses
and
general and administrative expenses as a percentage of total revenues.
|
At
March 31,
|
||||||||||
2008
|
2007
|
2006
|
||||||||
(Dollars
in thousands)
|
||||||||||
Recency
basis:
|
||||||||||
61-90
days past due
|
$
|
10,414
|
7,732
|
5,886
|
||||||
91
days or more past due
|
5,003
|
3,495
|
2,672
|
|||||||
Total
|
$
|
15,417
|
11,227
|
8,558
|
||||||
Percentage
of period-end gross loans receivable
|
2.6
|
%
|
2.2
|
%
|
2.1
|
%
|
||||
Contractual
basis:
|
||||||||||
61-90
days past due
|
$
|
12,838
|
9,684
|
7,664
|
||||||
91
days or more past due
|
11,123
|
8,209
|
6,654
|
|||||||
Total
|
$
|
23,961
|
17,893
|
14,318
|
||||||
Percentage
of period-end gross loans receivable
|
4.0
|
%
|
3.5
|
%
|
3.4
|
%
|
Loan Volume
|
Percent of
|
Percent of Total
|
||||||||
by Category
|
Total Charge-offs
|
Loans Made by Category
|
||||||||
Renewals
|
73.3
|
%
|
71.6
|
%
|
4.7
|
%
|
||||
Former
borrowers
|
9.7
|
%
|
5.9
|
%
|
3.2
|
%
|
||||
New
borrowers
|
17.0
|
%
|
22.5
|
%
|
9.6
|
%
|
||||
100.0
|
%
|
100.0
|
%
|
March
31,
|
||||||||||
2008
|
2007
|
2006
|
||||||||
Balance
at the beginning of the year
|
$
|
27,840,239
|
22,717,192
|
20,672,740
|
||||||
Provision
for loan losses
|
67,541,805
|
51,925,080
|
46,025,912
|
|||||||
Loan
losses
|
(68,985,269
|
)
|
(53,979,375
|
)
|
(49,267,992
|
)
|
||||
Recoveries
|
6,989,297
|
6,227,742
|
4,849,244
|
|||||||
Allowance
on acquired loans
|
140,075
|
949,600
|
437,288
|
|||||||
Balance
at the end of the year
|
$
|
33,526,147
|
27,840,239
|
22,717,192
|
||||||
Allowance
as a percentage of loans receivable, net of unearned and
deferred fees
|
7.5
|
%
|
7.4
|
%
|
7.3
|
%
|
||||
Net
charge-offs as a percentage of average loans receivable (1)
|
14.5
|
%
|
13.3
|
%
|
14.8
|
%
|
(1)
|
Average
loans receivable have been determined by averaging month-end gross
loans
receivable less unearned interest and deferred fees over the indicated
period.
|
At
or for the Three Months Ended
|
|||||||||||||||||||||||||
2008
|
2007
|
||||||||||||||||||||||||
First,
|
Second,
|
Third,
|
Fourth,
|
First,
|
Second,
|
Third,
|
Fourth,
|
||||||||||||||||||
|
(Dollars
in thousands)
|
||||||||||||||||||||||||
Total
revenues
|
$
|
76,389
|
80,198
|
88,043
|
101,417
|
63,837
|
67,208
|
74,103
|
87,170
|
||||||||||||||||
Provision
for loan losses
|
14,217
|
18,416
|
23,224
|
11,685
|
11,167
|
13,813
|
18,365
|
8,580
|
|||||||||||||||||
General
and administrative expenses
|
42,191
|
41,930
|
47,470
|
47,628
|
34,847
|
35,289
|
41,460
|
42,031
|
|||||||||||||||||
Net
income
|
10,850
|
10,466
|
7,288
|
24,392
|
9,987
|
9,861
|
7,011
|
21,037
|
|||||||||||||||||
Gross
loans receivable
|
$
|
544,964
|
571,319
|
663,217
|
599,509
|
447,840
|
470,275
|
560,741
|
505,788
|
||||||||||||||||
Number
of offices open
|
782
|
817
|
831
|
838
|
641
|
678
|
730
|
732
|
Fiscal
Year Ended March 31,
|
||||||||||||||||||||||
2009
|
2010
|
2011
|
2012
|
2013
|
Thereafter
|
Total
|
||||||||||||||||
Convertible
Senior Subordinated
Notes
Payable
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
110,000
|
$
|
-
|
$
|
-
|
$
|
110,000
|
||||||||
Maturities
of
Notes
Payable
|
200
|
104,700
|
-
|
-
|
-
|
-
|
104,900
|
|||||||||||||||
Interest
Payments on Convertible
|
||||||||||||||||||||||
Senior
Subordinated Notes Payable
|
3,300
|
3,300
|
3,300
|
3,300
|
-
|
-
|
13,200
|
|||||||||||||||
Interest
Payments on
Notes
Payable
|
5,525
|
2,744
|
-
|
-
|
-
|
-
|
8,269
|
|||||||||||||||
Minimum
Lease Payments
|
11,305
|
7,464
|
3,473
|
978
|
272
|
-
|
23,492
|
|||||||||||||||
Total
|
$
|
20,330
|
$
|
118,208
|
$
|
6,773
|
$
|
114,278
|
$
|
272
|
$
|
-
|
$
|
259,861
|
March
31,
|
|||||||
2008
|
2007
|
||||||
Assets
|
|||||||
Cash
and cash equivalents
|
$
|
7,589,575
|
5,779,032
|
||||
Gross
loans receivable
|
599,508,969
|
505,788,440
|
|||||
Less:
|
|||||||
Unearned
interest and deferred fees
|
(154,418,105
|
)
|
(127,750,015
|
)
|
|||
Allowance
for loan losses
|
(33,526,147
|
)
|
(27,840,239
|
)
|
|||
Loans
receivable, net
|
411,564,717
|
350,198,186
|
|||||
Property
and equipment, net
|
18,654,010
|
14,310,458
|
|||||
Deferred
income taxes
|
22,134,066
|
14,507,000
|
|||||
Other
assets, net
|
10,818,057
|
10,221,562
|
|||||
Goodwill
|
5,352,675
|
5,039,630
|
|||||
Intangible
assets, net
|
9,997,327
|
11,060,139
|
|||||
$
|
486,110,427
|
411,116,007
|
|||||
Liabilities
and Shareholders' Equity
|
|||||||
Liabilities:
|
|||||||
Senior
notes payable
|
104,500,000
|
60,600,000
|
|||||
Convertible
senior subordinated notes payable
|
110,000,000
|
110,000,000
|
|||||
Other
notes payable
|
400,000
|
600,000
|
|||||
Income
taxes payable
|
18,039,242
|
8,015,514
|
|||||
Accounts
payable and accrued expenses
|
18,865,913
|
16,407,846
|
|||||
Total
liabilities
|
251,805,155
|
195,623,360
|
|||||
Shareholders'
equity:
|
|||||||
Preferred
stock, no par value
|
|||||||
Authorized
5,000,000 shares, no shares issued or outstanding
|
-
|
-
|
|||||
Common
stock, no par value
|
|||||||
Authorized
95,000,000 shares; issued and outstanding 16,278,684 and 17,492,521
shares
at March 31, 2008 and 2007, respectively
|
-
|
-
|
|||||
Additional
paid-in capital
|
1,323,001
|
5,770,665
|
|||||
Retained
earnings
|
232,812,768
|
209,769,808
|
|||||
Accumulated
other comprehensive income (loss), net of tax
|
169,503
|
(47,826
|
)
|
||||
Total
shareholders' equity
|
234,305,272
|
215,492,647
|
|||||
Commitments
and contingencies
|
|||||||
$
|
486,110,427
|
411,116,007
|
Years
Ended March 31,
|
||||||||||
2008
|
2007
|
2006
|
||||||||
Revenues:
|
||||||||||
Interest
and fee income
|
$
|
292,457,259
|
247,007,668
|
204,450,428
|
||||||
Insurance
commissions and other income
|
53,589,595
|
45,310,752
|
38,821,587
|
|||||||
Total
revenues
|
346,046,854
|
292,318,420
|
243,272,015
|
|||||||
Expenses:
|
||||||||||
Provision
for loan losses
|
67,541,805
|
51,925,080
|
46,025,912
|
|||||||
General
and administrative expenses:
|
||||||||||
Personnel
|
119,483,185
|
102,824,945
|
84,817,025
|
|||||||
Occupancy
and equipment
|
21,554,655
|
17,397,672
|
14,166,977
|
|||||||
Data
processing
|
2,112,399
|
2,159,712
|
2,108,740
|
|||||||
Advertising
|
12,647,576
|
10,277,796
|
8,592,492
|
|||||||
Amortization
of intangible assets
|
2,505,465
|
2,885,202
|
2,860,555
|
|||||||
Other
|
20,915,465
|
18,081,517
|
15,968,496
|
|||||||
179,218,745
|
153,626,844
|
128,514,285
|
||||||||
Interest
expense
|
11,569,110
|
9,596,116
|
7,136,853
|
|||||||
Total
expenses
|
258,329,660
|
215,148,040
|
181,677,050
|
|||||||
Income
before income taxes
|
87,717,194
|
77,170,380
|
61,594,965
|
|||||||
Income
taxes
|
34,721,036
|
29,274,000
|
23,080,000
|
|||||||
Net
income
|
$
|
52,996,158
|
47,896,380
|
38,514,965
|
||||||
Net
income per common share:
|
||||||||||
Basic
|
$
|
3.11
|
2.66
|
2.08
|
||||||
Diluted
|
$
|
3.05
|
2.60
|
2.02
|
||||||
Weighted
average shares outstanding:
|
||||||||||
Basic
|
17,044,122
|
18,018,370
|
18,493,389
|
|||||||
Diluted
|
17,374,746
|
18,393,728
|
19,098,087
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income (Loss), Net
|
|
Total
Shareholders’
Equity
|
|
Total
Comprehensive
Income
|
|
|||||||
Balances
at March 31, 2005
|
$
|
11,964,056
|
177,747,137
|
-
|
189,711,193
|
|||||||||||
Proceeds
from exercise of stock options (190,397 shares), including tax benefits
of
$1,205,288
|
3,045,527
|
-
|
-
|
3,045,527
|
||||||||||||
Common
stock repurchases
(800,400 shares) |
(13,800,225
|
)
|
(6,991,249
|
)
|
-
|
(20,791,474
|
)
|
|||||||||
Other
comprehensive loss
|
-
|
-
|
(50,092
|
)
|
(50,092
|
)
|
(50,092
|
)
|
||||||||
Net
income
|
-
|
38,514,965
|
-
|
38,514,965
|
38,514,965
|
|||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
-
|
38,464,873
|
|||||||||||
Balances
at March 31, 2006
|
$
|
1,209,358
|
209,270,853
|
(50,092
|
)
|
210,430,119
|
||||||||||
Proceeds
from exercise of stock options (331,870 shares), including tax benefits
of
$2,937,122
|
6,423,279
|
-
|
-
|
6,423,279
|
||||||||||||
Common
stock repurchases
(1,209,395 shares) |
(6,698,538
|
)
|
(47,397,425
|
)
|
-
|
(54,095,963
|
)
|
|||||||||
Issuance
of restricted common stock under stock option plan (33,442
shares)
|
449,331
|
-
|
-
|
449,331
|
||||||||||||
Stock
option expense
|
3,481,617
|
-
|
-
|
3,481,617
|
||||||||||||
Tax
benefit from Convertible note
|
9,359,000
|
-
|
-
|
9,359,000
|
||||||||||||
Proceeds
from sale of warrants associated with convertible notes
|
16,155,823
|
-
|
-
|
16,155,823
|
||||||||||||
Purchase
of call option associated with convertible notes
|
(24,609,205
|
)
|
-
|
-
|
(24,609,205
|
)
|
||||||||||
Other
comprehensive income
|
-
|
-
|
2,266
|
2,266
|
2,266
|
|||||||||||
Net
income
|
-
|
47,896,380
|
-
|
47,896,380
|
47,896,380
|
|||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
-
|
47,898,646
|
|||||||||||
Balances
at March 31, 2007
|
$
|
5,770,665
|
209,769,808
|
(47,826
|
)
|
215,492,647
|
||||||||||
Proceeds
from exercise of stock options (116,282 shares), including tax benefits
of
$1,110,598
|
2,724,938
|
-
|
-
|
2,724,938
|
||||||||||||
Common
stock repurchases
(1,375,100 shares) |
(12,458,946
|
)
|
(29,403,198
|
)
|
|
|
(41,862,144
|
)
|
||||||||
Issuance
of restricted common stock under stock option plan (44,981
shares)
|
1,348,419
|
-
|
-
|
1,348,419
|
||||||||||||
Stock
option expense
|
3,937,925
|
-
|
-
|
3,937,925
|
||||||||||||
Cumulative
effect of FIN 48
|
-
|
(550,000
|
)
|
-
|
(550,000
|
)
|
||||||||||
Other
comprehensive income
|
-
|
-
|
217,329
|
217,329
|
217,329
|
|||||||||||
Net
income
|
-
|
52,996,158
|
-
|
52,996,158
|
52,996,158
|
|||||||||||
Total
comprehensive income
|
-
|
-
|
-
|
-
|
53,213,487
|
|||||||||||
$
|
1,323,001
|
232,812,768
|
169,503
|
234,305,272
|
Years Ended March 31,
|
||||||||||
|
2008
|
2007
|
2006
|
|||||||
Cash
flows from operating activities:
|
||||||||||
Net
income
|
$
|
52,996,158
|
47,896,380
|
38,514,965
|
||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||
Amortization
of intangible assets
|
2,505,465
|
2,885,202
|
2,860,555
|
|||||||
Amortization
of loan costs and discounts
|
763,262
|
379,634
|
25,000
|
|||||||
Provision
for loan losses
|
67,541,805
|
51,925,080
|
46,025,912
|
|||||||
Depreciation
|
3,760,461
|
3,057,658
|
2,371,857
|
|||||||
Deferred
tax expense (benefit)
|
(3,127,924
|
)
|
(1,250,000
|
)
|
6,792,000
|
|||||
Compensation
related to stock option and restricted stock plans
|
5,286,344
|
3,930,948
|
-
|
|||||||
Tax
benefit from exercise of stock options
|
-
|
-
|
1,205,288
|
|||||||
Gain/loss
on interest rate swap
|
1,762,662
|
400,000
|
(492,000
|
)
|
||||||
Change
in accounts:
|
||||||||||
Other
assets, net
|
(1,134,756
|
)
|
(262,450
|
)
|
(251,024
|
)
|
||||
Income
taxes payable
|
4,973,728
|
1,237,238
|
5,154,207
|
|||||||
Accounts
payable and accrued expenses
|
695,405
|
(111,497
|
)
|
(4,204,452
|
)
|
|||||
Net
cash provided by operating activities
|
136,022,610
|
110,088,193
|
98,002,308
|
|||||||
Cash
flows from investing activities:
|
||||||||||
Increase
in loans receivable, net
|
(125,822,271
|
)
|
(95,963,365
|
)
|
(82,962,171
|
)
|
||||
Net
assets acquired from office acquisitions, primarily loans
|
(3,220,879
|
)
|
(16,269,811
|
)
|
(6,800,032
|
)
|
||||
Increase
in intangible assets from acquisitions
|
(1,755,698
|
)
|
(2,123,853
|
)
|
(2,363,168
|
)
|
||||
Purchases
of property and equipment, net
|
(7,976,013
|
)
|
(6,189,997
|
)
|
(3,546,815
|
)
|
||||
Net
cash used in investing activities
|
(138,774,861
|
)
|
(120,547,026
|
)
|
(95,672,186
|
)
|
||||
Cash
flows from financing activities:
|
||||||||||
Net
change in bank overdraft
|
-
|
1,544,231
|
908,324
|
|||||||
Proceeds
(repayment) of senior revolving notes payable, net
|
43,900,000
|
(39,200,000
|
)
|
16,900,000
|
||||||
Proceeds
from convertible senior subordinated notes
|
-
|
110,000,000
|
-
|
|||||||
Repayment
of other notes payable
|
(200,000
|
)
|
(200,000
|
)
|
(200,000
|
)
|
||||
Proceeds
from exercise of stock options
|
1,614,340
|
3,486,157
|
1,840,239
|
|||||||
Repurchase
of common stock
|
(41,862,144
|
)
|
(54,095,963
|
)
|
(20,791,474
|
)
|
||||
Tax
benefit from exercise of stock options
|
1,110,598
|
2,937,122
|
-
|
|||||||
Proceeds
from sale of warrants associated with convertible notes
|
-
|
16,155,823
|
-
|
|||||||
Loan
cost associated with note convertible
|
-
|
(3,814,188
|
)
|
-
|
||||||
Purchase
of call options associated with convertible notes
|
-
|
(24,609,205
|
)
|
-
|
||||||
Net
cash provided by (used in) financing activities
|
4,562,794
|
12,203,977
|
(1,342,911
|
)
|
||||||
Increase
in cash and cash equivalents
|
1,810,543
|
1,745,144
|
987,211
|
|||||||
Cash
and cash equivalents at beginning of year
|
5,779,032
|
4,033,888
|
3,046,677
|
|||||||
Cash
and cash equivalents at end of year
|
$
|
7,589,575
|
5,779,032
|
4,033,888
|
(1) |
Summary
of Significant Accounting
Policies
|
For
the years ended March 31, 2008, 2007, and 2006, the Company paid
interest
of $10,788,530, $9,686,128 and $6,958,983,
respectively.
|
Supplemental
non-cash financing activities for the years ended March 31, 2008,
2007,
and 2006, consist of:
|
2008
|
2007
|
2006
|
||||||||
Tax
benefit from convertible note
|
$
|
-
|
9,359,000
|
-
|
(Dollars
in thousands except per share amounts)
|
2006
|
|||
Net
income
|
||||
As
reported
|
$
|
38,515
|
||
Deduct:
|
||||
Total
stock-based employee compensation expense determined under fair
value
based method for all awards, net of related tax effect
|
1,253
|
|||
Pro
forma net income
|
$
|
37,262
|
||
Basic
earnings per share
|
||||
As
reported
|
$
|
2.08
|
||
Pro
forma
|
$
|
2.01
|
||
Diluted
earnings per share
|
||||
As
reported
|
$
|
2.02
|
||
Pro
forma
|
$
|
1.95
|
(2)
|
Accumulated
Other Comprehensive
Loss
|
2008
|
2007
|
2006
|
||||||||
Balance
at beginning of year
|
$
|
(47,826
|
)
|
$
|
(50,092
|
)
|
-
|
|||
Unrealized
gain (loss) from foreign exchange translation adjustment
|
217,329
|
2,266
|
(50,092
|
)
|
||||||
Total
accumulated other comprehensive loss
|
$
|
169,503
|
$
|
(47,826
|
)
|
(50,092
|
)
|
(3) |
Allowance
for Loan Losses
|
March
31,
|
||||||||||
2008
|
2007
|
2006
|
||||||||
Balance
at the beginning of the year
|
$
|
27,840,239
|
22,717,192
|
20,672,740
|
||||||
Provision
for loan losses
|
67,541,805
|
51,925,080
|
46,025,912
|
|||||||
Loan
losses
|
(68,985,269
|
)
|
(53,979,375
|
)
|
(49,267,992
|
)
|
||||
Recoveries
|
6,989,297
|
6,227,742
|
4,849,244
|
|||||||
Allowance
on acquired loans
|
140,075
|
949,600
|
437,288
|
|||||||
Balance
at the end of the year
|
$
|
33,526,147
|
27,840,239
|
22,717,192
|
(4) |
Property
and Equipment
|
March
31,
|
|||||||
2008
|
2007
|
||||||
Land
|
$
|
250,443
|
250,443
|
||||
Buildings
and leasehold improvements
|
9,584,129
|
6,633,095
|
|||||
Furniture
and equipment
|
27,971,656
|
24,105,006
|
|||||
37,806,228
|
30,988,544
|
||||||
Less
accumulated depreciation and amortization
|
(19,152,218
|
)
|
(16,678,086
|
)
|
|||
Total
|
$
|
18,654,010
|
14,310,458
|
(5) |
Intangible
Assets
|
March
31,
|
|||||||
2008
|
2007
|
||||||
Cost
of acquiring existing customers
|
$
|
9,547,348
|
10,417,848
|
||||
Value
assigned to non-compete agreements
|
449,979
|
642,291
|
|||||
Total
|
$
|
9,997,327
|
11,060,139
|
(6) |
Goodwill
|
March
31,
|
|||||||
2008
|
2007
|
||||||
Balance
at beginning of year
|
$
|
5,039,630
|
4,715,110
|
||||
Goodwill
acquired during the year
|
313,045
|
359,658
|
|||||
Goodwill
impaired during the year
|
-
|
(35,138
|
)
|
||||
Balance
at March 31, 2008
|
$
|
5,352,675
|
5,039,630
|
(7) |
Notes
Payable
|
• |
During
any fiscal quarter commencing after December 31, 2006, if the
last
reported sale price of the common stock for at least 20 trading
days
during a period of 30 consecutive trading days ending on the
last trading
day of the preceding fiscal quarter is greater than or equal
to 120% of
the applicable conversion price on such last trading
day;
|
• |
During
the five business day period after any ten consecutive trading
day period
in which the trading price per note for each day of such ten
consecutive
trading day period was less than 98% of the product of the last
reported
sale price of the Company’s common stock and the applicable conversion
rate on each such day; or
|
• |
The
occurrence of specified corporate
transactions.
|
(8) |
Derivative
Financial Instruments
|
(9) |
Non-file
Insurance
|
2008
|
2007
|
2006
|
||||||||
Insurance
premiums written
|
$
|
5,885,108
|
5,356,161
|
5,229,598
|
||||||
Recoveries
on claims paid
|
$
|
553,035
|
503,986
|
403,445
|
||||||
Claims
paid
|
$
|
5,987,181
|
5,451,094
|
4,948,136
|
(10) |
Leases
|
2009
|
11,305,444
|
|||
2010
|
7,463,670
|
|||
2011
|
3,473,112
|
|||
2012
|
977,791
|
|||
2013
|
271,969
|
|||
Thereafter
|
-
|
|||
Total
future minimum lease payments
|
$
|
23,491,956
|
(11) |
Income
Taxes
|
Current
|
Deferred
|
Total
|
||||||||
Year
ended March 31, 2008:
|
||||||||||
U.S.
Federal
|
$
|
33,113,415
|
(2,280,364
|
)
|
30,833,051
|
|||||
State
and local
|
4,149,913
|
(847,560
|
)
|
3,302,353
|
||||||
Foreign
|
585,632
|
-
|
585,632
|
|||||||
$
|
37,848,960
|
(3,127,924
|
)
|
34,721,036
|
||||||
Year
ended March 31, 2007:
|
||||||||||
U.S.
Federal
|
$
|
26,532,000
|
(1,256,000
|
)
|
25,276,000
|
|||||
State
and local
|
3,947,000
|
39,000
|
3,986,000
|
|||||||
Foreign
|
45,000
|
(33,000
|
)
|
12,000
|
||||||
$
|
30,524,000
|
(1,250,000
|
)
|
29,274,000
|
||||||
Year
ended March 31, 2006:
|
||||||||||
U.S.
Federal
|
$
|
14,475,000
|
6,059,000
|
20,534,000
|
||||||
State
and local
|
1,813,000
|
733,000
|
2,546,000
|
|||||||
$
|
16,288,000
|
6,792,000
|
23,080,000
|
2008
|
2007
|
2006
|
||||||||
Expected
income tax
|
$
|
30,701,018
|
27,010,000
|
21,558,000
|
||||||
Increase
(reduction) in income taxes resulting
from: |
||||||||||
State
tax, net of federal benefit
|
2,146,587
|
2,591,000
|
1,655,000
|
|||||||
Change
in valuation allowance
|
(335,361
|
)
|
207,000
|
19,000
|
||||||
Insurance
income exclusion
|
(117,834
|
)
|
(167,000
|
)
|
(75,000
|
)
|
||||
Proceeds
from life insurance
|
-
|
-
|
(145,000
|
)
|
||||||
Uncertain
tax positions
|
1,408,734
|
-
|
-
|
|||||||
Other,
net
|
917,892
|
(367,000
|
)
|
68,000
|
||||||
$
|
34,721,036
|
29,274,000
|
23,080,000
|
2008
|
2007
|
||||||
Deferred
tax assets:
|
|||||||
Allowance
for doubtful accounts
|
$
|
12,533,595
|
10,587,000
|
||||
Unearned
insurance commissions
|
7,794,408
|
6,549,000
|
|||||
Accounts
payable and accrued expenses primarily related to employee
benefits
|
4,223,506
|
2,565,000
|
|||||
Accrued
interest receivable
|
2,450,352
|
2,277,000
|
|||||
Convertible
notes
|
7,367,233
|
9,359,000
|
|||||
Unrealized
losses
|
625,164
|
-
|
|||||
Other
|
172,944
|
857,000
|
|||||
Gross
deferred tax assets
|
35,167,202
|
32,194,000
|
|||||
Less
valuation allowance
|
(406,639
|
)
|
(742,000
|
)
|
|||
Net
deferred tax assets
|
34,760,563
|
31,452,000
|
|||||
Deferred
tax liabilities:
|
|||||||
Fair
value adjustment for loans
|
(6,906,863
|
)
|
(11,255,000
|
)
|
|||
Property
and equipment
|
(1,926,228
|
)
|
(1,031,000
|
)
|
|||
Intangible
assets
|
(1,940,150
|
)
|
(2,942,000
|
)
|
|||
Unrealized
gains
|
-
|
(35,000
|
)
|
||||
Deferred
net loan origination fees
|
(1,267,454
|
)
|
(1,068,000
|
)
|
|||
Prepaid
expenses
|
(585,802
|
)
|
(614,000
|
)
|
|||
Gross
deferred liabilities
|
(12,626,497
|
)
|
(16,945,000
|
)
|
|||
Net
deferred tax assets
|
$
|
22,134,066
|
14,507,000
|
Unrecognized
tax benefits balance at April 1, 2007
|
5,174,703
|
|||
Gross
increases for tax positions of prior years
|
1,942,169
|
|||
Gross
decreases for tax positions of prior years
|
-
|
|||
Gross
increases for tax positions of current year
|
981,151
|
|||
Gross
decreases for tax positions of current year
|
-
|
|||
Settlements
|
(61,333
|
)
|
||
Lapse
of statute of limitations
|
(511,770
|
)
|
||
Unrecognized
tax benefits balance at March 31, 2008
|
7,524,920
|
(12) |
Earnings
Per Share
|
For
the year ended March 31, 2008
|
||||||||||
Income
|
Shares
|
Per
Share
|
||||||||
(Numerator)
|
(Denominator)
|
Amount
|
||||||||
Basic
EPS
|
||||||||||
Income
available to common shareholders
|
$
|
52,996,158
|
17,044,122
|
$
|
3.11
|
|||||
Effect
of Dilutive Securities
|
||||||||||
Options
and restricted stock
|
-
|
330,624
|
||||||||
Diluted
EPS
|
||||||||||
Income
available to common shareholders
|
||||||||||
plus
assumed exercises of stock options
|
$
|
52,996,158
|
17,374,746
|
$
|
3.05
|
For
the year ended March 31, 2007
|
||||||||||
Income
|
Shares
|
Per
Share
|
||||||||
(Numerator)
|
(Denominator)
|
Amount
|
||||||||
Basic
EPS
|
||||||||||
Income
available to common shareholders
|
$
|
47,896,380
|
18,018,370
|
$
|
2.66
|
|||||
Effect
of Dilutive Securities
|
||||||||||
Options
and restricted stock
|
-
|
375,358
|
||||||||
Diluted
EPS
|
||||||||||
Income
available to common shareholders
|
||||||||||
plus
assumed exercises of stock options
|
$
|
47,896,380
|
18,393,728
|
$
|
2.60
|
For
the year ended March 31, 2006
|
||||||||||
Income
|
Shares
|
Per
Share
|
||||||||
(Numerator)
|
(Denominator)
|
Amount
|
||||||||
Basic
EPS
|
||||||||||
Income
available to common shareholders
|
$
|
38,514,965
|
18,493,389
|
$
|
2.08
|
|||||
Effect
of Dilutive Securities
|
||||||||||
Options
|
-
|
604,698
|
||||||||
Diluted
EPS
|
||||||||||
Income
available to common shareholders
|
||||||||||
plus
assumed exercises of stock options
|
$
|
38,514,965
|
19,098,087
|
$
|
2.02
|
(13) |
Benefit
Plans
|
2008
|
2007
|
2006
|
||||||||
Dividend
yield
|
0
|
%
|
0
|
%
|
0
|
%
|
||||
Expected
volatility
|
43.0
|
%
|
43.4
|
%
|
48.2
|
%
|
||||
Average
risk-free interest rate
|
4.00
|
%
|
4.69
|
%
|
4.70
|
%
|
||||
Expected
life
|
6.9
years
|
7.5
years
|
7.5
years
|
|||||||
Vesting
period
|
5
years
|
5
years
|
1
to 5 years
|
2008
|
|||||||||||||
Weighted
|
Weighted
|
||||||||||||
Average
|
Average
|
Aggregate
|
|||||||||||
Exercise
|
Remaining
|
Intrinsic
|
|||||||||||
Shares
|
Price
|
Contractual Term
|
Value
|
||||||||||
Options
outstanding, beginning of year
|
1,139,949
|
23.41
|
|||||||||||
Granted
|
286,250
|
28.55
|
|||||||||||
Exercised
|
(116,282
|
)
|
13.88
|
||||||||||
Forfeited
|
(35,700
|
)
|
$
|
27.19
|
|||||||||
Options
outstanding, end of year
|
1,274,217
|
$
|
25.33
|
6.98
|
$
|
11,929,017
|
|||||||
Options
exercisable, end of year
|
556,667
|
$
|
17.07
|
5.00
|
$
|
8,939,454
|
2008
|
2007
|
2006
|
|||||
$ 2,503,399
|
$
|
8,078,143
|
$
|
3,348,020
|
Weighted
|
||||||||||||||||
Average
|
Weighted
|
Weighted
|
||||||||||||||
Remaining
|
Average
|
Average
|
||||||||||||||
Range of
|
Options
|
Contractual
|
Exercise
|
Options
|
Exercise
|
|||||||||||
Exercise Price
|
Outstanding
|
Life
|
Price
|
Exercisable
|
Price
|
|||||||||||
$
4.90 - $5.99
|
134,517
|
1.33
|
$
|
5.28
|
134,517
|
$
|
5.28
|
|||||||||
$
6.00 - $ 7.99
|
18,500
|
3.00
|
$
|
6.75
|
18,500
|
$
|
6.75
|
|||||||||
$
8.00 - $ 9.99
|
94,300
|
3.97
|
$
|
8.46
|
87,800
|
$
|
8.43
|
|||||||||
$11.00
- $11.99
|
31,500
|
5.13
|
$
|
11.44
|
31,500
|
$
|
11.44
|
|||||||||
$15.00
- $16.99
|
95,900
|
5.70
|
$
|
16.27
|
70,100
|
$
|
16.16
|
|||||||||
$23.00
- $23.99
|
97,900
|
6.58
|
$
|
23.53
|
44,900
|
$
|
23.53
|
|||||||||
$25.00
- $25.99
|
193,700
|
7.87
|
$
|
25.07
|
86,300
|
$
|
25.09
|
|||||||||
$28.00
- $28.99
|
390,850
|
9.05
|
$
|
28.22
|
40,800
|
$
|
28.29
|
|||||||||
$43.00
- $43.99
|
7,000
|
9.15
|
$
|
43.00
|
-
|
$
|
43.00
|
|||||||||
$46.00
- $49.00
|
210,050
|
8.62
|
$
|
48.73
|
42,250
|
$
|
48.74
|
|||||||||
$
4.90 - $49.00
|
1,274,217
|
6.98
|
$
|
25.33
|
556,667
|
$
|
17.07
|
Compounded
|
||
Vesting
|
Annual
|
|
Percentage
|
EPS
Growth
|
|
100%
|
15%
or higher
|
|
67%
|
12%
- 14.99%
|
|
33%
|
10%
- 11.99%
|
|
0%
|
Below
10%
|
Number of
Shares
|
Weighted Average Fair
Value at Grant Date
|
||||||
Outstanding
at March 31, 2007
|
29,442
|
43.87
|
|||||
Granted
during the period
|
51,950
|
32.36
|
|||||
Vested
during the period, net
|
(23,323
|
)
|
40.83
|
||||
Cancelled
during the period
|
(6,969
|
)
|
29.92
|
||||
Outstanding
at March 31, 2008
|
51,100
|
$
|
35.46
|
2008
|
2007
|
||||||
Share-based
compensation related to equity classified units:
|
|||||||
Share-based
compensation related to stock options
|
$
|
3,937,925
|
3,399,763
|
||||
Share-based
compensation related to restricted stock units
|
1,556,902
|
1,088,387
|
|||||
Total
share-based compensation related to equity classified
awards
|
|||||||
$
|
5,494,827
|
4,488,150
|
(14) |
Acquisitions
|
2008
|
2007
|
2006
|
||||||||
($
in thousands)
|
||||||||||
Number
of offices purchased
|
25
|
86
|
25
|
|||||||
Merged
into existing offices
|
12
|
50
|
22
|
|||||||
Purchase
Price
|
$
|
4,977
|
18,394
|
9,163
|
||||||
Tangible
assets:
|
||||||||||
Net
loans
|
3,086
|
16,131
|
6,742
|
|||||||
Furniture,
fixtures & equipment
|
128
|
139
|
58
|
|||||||
Other
|
7
|
-
|
-
|
|||||||
3,221
|
16,270
|
6,800
|
||||||||
Excess
of purchase prices over carrying value of net tangible
assets
|
$
|
1,756
|
2,124
|
2,363
|
||||||
Customer
lists
|
1,327
|
1,696
|
2,063
|
|||||||
Non-compete
agreements
|
116
|
68
|
97
|
|||||||
Goodwill
|
313
|
360
|
203
|
|||||||
Total
intangible assets
|
$
|
1,756
|
2,124
|
2,363
|
(15)
|
Quarterly
Information
(Unaudited)
|
The
following sets forth selected quarterly operating
data:
|
2008
|
2007
|
||||||||||||||||||||||||
First
|
|
Second
|
|
Third
|
|
Fourth
|
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
|||||||||||
(Dollars in thousands, except earnings per share data)
|
|||||||||||||||||||||||||
Total
revenues
|
$
|
76,389
|
80,198
|
88,043
|
101,417
|
63,837
|
67,208
|
74,103
|
87,170
|
||||||||||||||||
Provision
for loan losses
|
14,217
|
18,416
|
23,224
|
11,685
|
11,167
|
13,813
|
18,365
|
8,580
|
|||||||||||||||||
General
and administrative expenses
|
42,191
|
41,930
|
47,470
|
47,628
|
34,847
|
35,289
|
41,460
|
42,031
|
|||||||||||||||||
Interest
expense
|
2,336
|
2,932
|
3,338
|
2,963
|
1,901
|
2,270
|
2,823
|
2,602
|
|||||||||||||||||
Income
tax expense
|
6,795
|
6,454
|
6,723
|
14,749
|
5,935
|
5,975
|
4,444
|
12,920
|
|||||||||||||||||
Net
income
|
$
|
10,850
|
10,466
|
7,288
|
24,392
|
9,987
|
9,861
|
7,011
|
21,037
|
||||||||||||||||
Earnings
per share:
|
|||||||||||||||||||||||||
Basic
|
$
|
.62
|
.61
|
.43
|
1.46
|
.54
|
.53
|
.40
|
1.20
|
||||||||||||||||
Diluted
|
$
|
.61
|
.60
|
.43
|
1.44
|
.53
|
.52
|
.39
|
1.17
|
(16) |
Litigation
|
(1)
|
pertain
to the maintenance of records that, in reasonable detail, accurately
and
fairly reflect our transactions and dispositions of the
assets;
|
(2)
|
provide
reasonable assurance that transactions are recorded as necessary
to permit
preparation of financial statements in accordance with generally
accepted
accounting principles, and that our receipts and expenditures are
being
made only in accordance with authorizations of our management and
board of
directors: and
|
(3)
|
provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of our assets that
could
have a material effect on our financial
statements.
|
/s/
A. A. McLean III
|
/s/
Kelly M. Malson
|
|
A.
A. McLean III
|
Kelly
M. Malson
|
|
Chairman
and Chief Executive Officer
|
Vice
President and Chief Financial
Officer
|
(1) |
The
following consolidated financial statements of the Company and Report
of
Independent Registered Public Accounting Firm are filed
herewith.
|
Consolidated
Balance Sheets at March 31, 2008 and
2007
|
Consolidated
Statements of Operations for the years ended March 31, 2008, 2007
and
2006
|
Consolidated
Statements of Shareholders' Equity and Comprehensive Income for the
years
ended March 31, 2008, 2007 and 2006
|
Consolidated
Statements of Cash Flows for the years ended March 31, 2008, 2007
and
2006
|
Notes
to Consolidated Financial
Statements
|
(2) |
Financial
Statement Schedules
|
All
schedules for which provision is made in the applicable accounting
regulations of the Securities and Exchange Commission are not required
under the related instructions, are inapplicable, or the required
information is included elsewhere in the consolidated financial
statements.
|
(3) |
Exhibits
|
The
following exhibits are filed as part of this report or, where so
indicated, have been previously filed and are incorporated herein
by
reference.
|
Filed Herewith (*),
|
||||||
Previously filed (+), or
|
||||||
or Incorporated by
|
Company
|
|||||
Exhibit
|
Reference Previous
|
Registration
|
||||
Number
|
Description
|
Exhibit Number
|
No. or Report
|
|||
3.1
|
Second
Amended and Restated Articles of Incorporation of the
|
|||||
Company,
as amended
|
3.1
|
333-107426
|
||||
3.2
|
Fourth
Amended and Restated Bylaws of the Company
|
99.1
|
8-03-07
8-K
|
|||
4.1
|
Specimen
Share Certificate
|
4.1
|
33-42879
|
|||
4.2
|
Articles
3, 4 and 5 of the Form of Company's Second Amended
|
|||||
and
Restated Articles of Incorporation (as amended)
|
3.1
|
333-107426
|
||||
4.3
|
Article
II, Section 9 of the Company’s Fourth Amended
|
|||||
And
Restated Bylaws
|
99.1
|
8-03-07
8-K
|
||||
4.4
|
Amended
and Restated Credit Agreement dated July 20, 2005
|
4.4
|
6-30-05
10-Q
|
|||
4.5
|
First
Amendment to Amended and Restated Revolving Credit
|
|||||
Agreement,
dated as of August 4, 2006
|
4.4
|
6-30-06
10-Q
|
||||
4.6
|
Second
Amendment to Amended and Restated Revolving Credit
|
|||||
Agreement
dated as of October 2, 2006
|
10.1
|
10-04-06
8-K
|
||||
4.7
|
Third
Amendment to Amended and Restated Revolving Credit
|
|||||
Agreement
dated as of August 31, 2007
|
10.1
|
9-07-07
8-K
|
||||
4.7
|
Subsidiary
Security Agreement dated as of June 30, 1997, as
|
|||||
amended
through July 20, 2005
|
4.5
|
9-30-05
10-Q
|
||||
4.8
|
Company
Security Agreement dated as of June 20, 1997, as
|
|||||
amended
through July 20, 2005
|
4.6
|
9-30-05
10-Q
|
||||
4.9
|
Fourth
Amendment to Subsidiary Amended and Restated
|
|||||
Security
Agreement, Pledge and Indenture of Trust
|
||||||
(i.e.
Subsidiary Security Agreement)
|
4.7
|
6-30-05
10-Q
|
||||
4.10
|
Fourth
Amendment to Amended and Restated Security
|
|||||
Agreement,
Pledge and Indenture of Trust, (i.e. Company
|
||||||
Security
Agreement)
|
4.10
|
9-30-04
10-Q
|
||||
4.11
|
Fifth
Amendment to Amended and Restated Security Agreement,
|
|||||
Pledge
and Indenture of Trust (i.e. Company Security Agreement)
|
4.9
|
6-30-05
10-Q
|
||||
4.12
|
Form
of 3.00% Convertible Senior Subordinated Note due 2011
|
4.1
|
10-12-06
8-K
|
|||
4.13
|
Indenture,
dated October 10, 2006 between the Company
|
|||||
and
U.S. Bank National Association, as Trustee
|
4.2
|
10-12-06
8-K
|
||||
10.1+
|
Employment
Agreement of A. Alexander McLean, III, effective
|
|||||
May
21, 2007
|
10.3
|
2007
10-K
|
||||
10.2+
|
Employment
Agreement of Mark C. Roland, effective as of
|
|||||
|
May
21, 2007
|
|
10.4
|
|
2007
10-K
|
Filed Herewith (*),
|
||||||
Previously filed (+), or
|
||||||
or Incorporated by
|
Company
|
|||||
Exhibit
|
Reference Previous
|
Registration
|
||||
Number
|
Description
|
Exhibit Number
|
No. or Report
|
|||
10.3+
|
Employment
Agreement of Kelly M. Malson, effective as of
|
|||||
August
27, 2007
|
99.1
|
8-29-07
8-K
|
||||
10.4+
|
Securityholders'
Agreement, dated as of September 19, 1991,
|
|||||
between
the Company and certain of its securityholders
|
10.5
|
33-42879
|
||||
10.5+
|
Supplemental
Income Plan
|
10.7
|
2000
10-K
|
|||
10.6+
|
Second
Amendment to the Company’s Supplemental
|
|||||
Income
Plan
|
10.15
|
12-31-07
10-Q
|
||||
10.7+
|
Board
of Directors Deferred Compensation Plan
|
10.6
|
2000
10-K
|
|||
10.8
|
Second
Amendment to the Company’s Board of Directors
|
|||||
Deferred
Compensation Plan (2000)
|
10.13
|
12-31-07
10-Q
|
||||
10.9+
|
1992
Stock Option Plan of the Company
|
4
|
33-52166
|
|||
10.10+
|
1994
Stock Option Plan of the Company, as amended
|
10.6
|
1995
10-K
|
|||
10.11+
|
First
Amendment to the Company’s 1992 and 1994
|
|||||
Stock
Option Plans
|
10.10
|
12-31-07
10-Q
|
||||
10.12+
|
2002
Stock Option Plan of the Company
|
Appendix
A
|
Definitive
Proxy
|
|||
Statement
on
|
||||||
Schedule
14A
|
||||||
for
the 2002
|
||||||
Annual
Meeting
|
||||||
10.13+
|
First
Amendment to the Company’s 2002 Stock
|
|||||
Option
Plan
|
10.11
|
12-31-07
10-Q
|
||||
10.14+
|
2005
Stock Option Plan of the Company
|
Appendix
B
|
Definitive
Proxy
|
|||
Statement
on
|
||||||
Schedule
14A
|
||||||
for
the 2005
|
||||||
Annual
Meeting
|
||||||
10.15+
|
First
Amendment to the Company’s 2005 Stock Option Plan
|
10.12
|
12-31-07
10-Q
|
|||
10.16+
|
The
Company’s Executive Incentive Plan
|
10.6
|
1994
10-K
|
|||
10.17+
|
The
Company’s Retirement Savings Plan
|
4.1
|
333-14399
|
|||
10.18+
|
Executive
Deferral Plan
|
10.12
|
2001
10-K
|
|||
10.19+
|
Second
Amendment to the Company’s Executive Deferral Plan
|
10.14
|
12-31-07
10-Q
|
|||
10.20+
|
First
Amended and Restated Board of Directors 2005 Deferred
|
|||||
Compensation
Plan
|
10.16
|
12-31-07
10-Q
|
||||
10.21+
|
|
First
Amended and Restated 2005 Executive Deferral Plan
|
|
10.17
|
|
12-31-07
10-Q
|
Filed Herewith (*),
|
||||||
Previously filed (+), or
|
||||||
or Incorporated by
|
Company
|
|||||
Exhibit
|
Reference Previous
|
Registration
|
||||
Number
|
Description
|
Exhibit Number
|
No. or Report
|
|||
10.22+
|
Second
Amended and Restated World Acceptance Corporation
|
|||||
2005
Supplemental Income Plan
|
10.18
|
12-31-07
10-Q
|
||||
14
|
Code
of Ethics
|
14
|
2004
10-K
|
|||
21
|
Schedule
of the Company’s Subsidiaries
|
*
|
||||
23
|
Consent
of KPMG LLP
|
*
|
||||
31.1
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Executive
Officer
|
*
|
||||
31.2
|
Rule
13a-14(a)/15d-14(a) Certification of Chief Financial
Officer
|
*
|
||||
32.1
|
Section
1350 Certification of Chief Executive Officer
|
*
|
||||
32.2
|
|
Section
1350 Certification of Chief Financial Officer
|
|
*
|
|
WORLD
ACCEPTANCE CORPORATION
|
||
By:
|
/s/
A. Alexander McLean III
|
|
A.
Alexander McLean, III
|
||
Chairman
and Chief Executive Officer
|
||
Date:
May 30, 2008
|
||
By:
|
/s/
Kelly M. Malson
|
|
Kelly
M. Malson
|
||
Vice
President and Chief Financial Officer
|
||
Date:
May 30, 2008
|
Signature
|
||
/s/
A. Alexander McLean III
|
/s/
Ken R. Bramlett Jr.
|
|
A.
Alexander McLean, III, Chairman of the Board and
|
Ken
R. Bramlett Jr., Director
|
|
Chief
Executive Officer (Principal Executive Officer)
|
||
Date;
May 30, 2008
|
Date:
May 30, 2008
|
|
/s/
Kelly M. Malson
|
/s/
James R. Gilreath
|
|
Kelly
M. Malson, Vice President and Chief Financial
|
James
R. Gilreath, Director
|
|
Officer
(Principal Financial and Accounting Officer)
|
||
Date:
May 30, 2008
|
Date:
May 30, 2008
|
|
/s/
William S. Hummers
|
/s/
Charles D. Way
|
|
William
S. Hummers, III, Director
|
Charles
D. Way, Director
|
|
Date:
May 30, 2008
|
Date:
May 30, 2008
|
|
/s/
Mark C. Roland
|
/s/
Darrell Whitaker
|
|
Mark
C. Roland, President and COO; Director
|
Darrell
Whitaker, Director
|
|
Date:
May 30, 2008
|
Date:
May 30, 2008
|