108385--5/30/2008--WORLD_ACCEPTANCE

related topics

{condition, economic, financial}

{operation, natural, condition}

{loss, insurance, financial}

{debt, indebtedness, cash}

{operation, international, foreign}

{personnel, key, retain}

{loan, real, estate}

{cost, operation, labor}

{regulation, change, law}

{system, service, information}

{provision, law, control}

{control, financial, internal}

{stock, price, share}

{acquisition, growth, future}

We face liquidity risk resulting from market conditions or other events. We are subject to interest rate risk resulting from general economic conditions and policies of various governmental and regulatory agencies. Our use of derivatives exposes us to credit and market risk. We are exposed to credit risk in our lending activities. Controls and procedures may fail or be circumvented. The locations where we have offices may cease to be attractive as demographic patterns change. If we lose the services of any of our key management personnel, our business could suffer. Regular turnover among our managers and employees at our offices makes it more difficult for us to operate our offices and increases our costs of operations, which could have an adverse effect on our business, results of operations and financial condition. The concentration of our revenues in certain states could adversely affect us. Our ability to manage our growth may deteriorate, and our ability to execute our growth strategy may be adversely affected. Interruption of, or a breach in security relating to, our information systems could adversely affect us. Our centralized headquarters functions are susceptible to disruption by catastrophic events, which could have a material adverse effect on our business, results of operations and financial condition. Legislative or regulatory actions or changes with adverse results in litigation or regulatory proceedings or, failure to comply with existing laws and regulations could force us to cease, suspend or modify our operations in a state, potentially resulting in a material adverse effect on our business, results of operations and financial condition. We depend to a substantial extent on borrowings under our revolving credit agreement to fund our liquidity needs. Our revolving credit agreement contains restrictions and limitations that could significantly affect our ability to operate our business. If our estimates of loan losses are not adequate to absorb losses, our provision for loan losses would increase. This would result in a decline in our future revenues and earnings, which also could have a material adverse effect on our stock price. Our business is seasonal in nature, which causes our revenues, collection rates and earnings to fluctuate. These fluctuations could have a material adverse effect on our results of operations and stock price. Absence of dividends could reduce our attractiveness to investors. Various provisions and laws could delay or prevent a change of control that stockholders may favor. Our continued expansion into Mexico may increase the risks inherent in conducting international operations.

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108385--5/30/2008--WORLD_ACCEPTANCE_CORP