World Acceptance Corporation Reports Fiscal 2025 First Quarter Results
World Acceptance (NASDAQ: WRLD) reported its fiscal 2025 first-quarter results. The company achieved net income of $9.9 million and a diluted net income of $1.79 per share. Total revenues decreased by 7.0% to $129.5 million compared to the same quarter last year. Gross loans outstanding reduced by 8.8% year-over-year to $1.275 billion.
Interest and fee income declined by 4.7% to $111.2 million, while insurance income dropped by 19.4% to $12.9 million. General and administrative expenses fell by 9.9% to $61.4 million. The company's debt-to-equity ratio improved to 1.2:1, and the outstanding debt decreased to $492.7 million. The customer base reduced by 2.6% year-over-year. The company repurchased 79,324 shares of its common stock for $11.1 million during the quarter.
World Acceptance (NASDAQ: WRLD) ha riportato i risultati finanziari del primo trimestre dell'anno fiscale 2025. L'azienda ha ottenuto un reddito netto di 9,9 milioni di dollari e un reddito netto diluito di 1,79 dollari per azione. I ricavi totali sono diminuiti del 7,0%, scendendo a 129,5 milioni di dollari rispetto allo stesso trimestre dell'anno precedente. I prestiti lordi in essere sono stati ridotti dell'8,8% rispetto all'anno scorso, raggiungendo 1,275 miliardi di dollari.
Le entrate da interessi e commissioni sono calate del 4,7% a 111,2 milioni di dollari, mentre le entrate assicurative sono scese del 19,4% a 12,9 milioni di dollari. Le spese generali e amministrative sono diminuite del 9,9% a 61,4 milioni di dollari. Il rapporto debito/capitale dell'azienda è migliorato a 1,2:1, e il debito in essere è sceso a 492,7 milioni di dollari. La base clienti è diminuita del 2,6% rispetto all'anno precedente. Durante il trimestre, l'azienda ha riacquistato 79.324 azioni del suo capitale comune per un importo di 11,1 milioni di dollari.
World Acceptance (NASDAQ: WRLD) informó sus resultados del primer trimestre del año fiscal 2025. La compañía alcanzó un ingreso neto de 9,9 millones de dólares y un ingreso neto por acción diluido de 1,79 dólares. Los ingresos totales disminuyeron un 7.0% a 129,5 millones de dólares en comparación con el mismo trimestre del año pasado. Los préstamos brutos pendientes se redujeron en un 8.8% interanual a 1.275 millones de dólares.
Los ingresos por intereses y comisiones cayeron un 4.7% a 111.2 millones de dólares, mientras que los ingresos por seguros cayeron un 19.4% a 12.9 millones de dólares. Los gastos generales y administrativos disminuyeron un 9.9% a 61.4 millones de dólares. La relación deuda-capital de la compañía mejoró a 1.2:1, y la deuda pendiente se redujo a 492.7 millones de dólares. La base de clientes disminuyó un 2.6% interanual. Durante el trimestre, la compañía recompró 79,324 acciones de su capital común por un total de 11.1 millones de dólares.
월드 수용 (NASDAQ: WRLD)은 2025 회계연도 첫 분기 결과를 발표했습니다. 이 회사는 990만 달러의 순이익과 주당 1.79달러의 희석된 순이익을 달성했습니다. 총 수익은 지난해 같은 분기 대비 7.0% 감소한 1억 2,950만 달러를 기록했습니다. 총 대출 잔액은 전년 대비 8.8% 감소하여 12억 7,500만 달러에 이르렀습니다.
이자 및 수수료 수익은 4.7% 감소하여 1억 1,120만 달러가 되었으며, 보험 수익은 19.4% 감소하여 1,290만 달러에 불과했습니다. 일반 관리 비용은 9.9% 감소하여 6,140만 달러에 이르렀습니다. 회사의 부채 비율은 1.2:1로 개선되었고, 남은 부채는 4억 9,270만 달러로 감소했습니다. 고객 기반은 전년 대비 2.6% 줄어들었습니다. 회사는 분기 동안 79,324주의 자사주를 1,110만 달러에 재매입했습니다.
World Acceptance (NASDAQ: WRLD) a publié ses résultats pour le premier trimestre de l'exercice 2025. La société a réalisé un revenu net de 9,9 millions de dollars et un revenu net dilué de 1,79 dollar par action. Les revenus totaux ont diminué de 7,0 % pour atteindre 129,5 millions de dollars par rapport au même trimestre de l'année dernière. Les prêts bruts en cours ont été réduits de 8,8 % d'une année sur l'autre pour atteindre 1,275 milliard de dollars.
Les revenus d'intérêts et de frais ont chuté de 4,7 % pour atteindre 111,2 millions de dollars, tandis que les revenus d'assurance ont baissé de 19,4 % à 12,9 millions de dollars. Les frais généraux et administratifs ont diminué de 9,9 % pour s'établir à 61,4 millions de dollars. Le ratio dette/capitaux propres de l'entreprise s'est amélioré pour atteindre 1,2:1, tandis que la dette en cours a diminué à 492,7 millions de dollars. La base de clients a diminué de 2,6 % d'une année sur l'autre. Au cours du trimestre, l'entreprise a racheté 79 324 actions de ses actions ordinaires pour un montant de 11,1 millions de dollars.
World Acceptance (NASDAQ: WRLD) berichtete über die Ergebnisse des ersten Quartals des Geschäftsjahres 2025. Das Unternehmen erzielte einen Nettoertrag von 9,9 Millionen US-Dollar und einen verwässerten Nettoertrag von 1,79 US-Dollar pro Aktie. Die Gesamterträge sanken im Vergleich zum Vorjahresquartal um 7,0% auf 129,5 Millionen US-Dollar. Die ausstehenden Bruttokredite verringerten sich im Jahresvergleich um 8,8% auf 1,275 Milliarden US-Dollar.
Zinsen und Gebühreneinnahmen fielen um 4,7% auf 111,2 Millionen US-Dollar, während die Versicherungseinnahmen um 19,4% auf 12,9 Millionen US-Dollar zurückgingen. Die allgemeinen und administrativen Aufwendungen fielen um 9,9% auf 61,4 Millionen US-Dollar. Das Unternehmen verbesserte sein Verhältnis von Schulden zu Eigenkapital auf 1,2:1, und die ausstehenden Schulden sanken auf 492,7 Millionen US-Dollar. Die Kundenbasis verringerte sich im Jahresvergleich um 2,6%. Während des Quartals kaufte das Unternehmen 79.324 Aktien seines Stammkapitals für insgesamt 11,1 Millionen US-Dollar zurück.
- Net income increased to $9.9 million.
- Diluted net income per share rose to $1.79.
- G&A expenses reduced by 9.9% to $61.4 million.
- Debt-to-equity ratio improved to 1.2:1.
- Net charge-offs decreased by $4.1 million.
- Interest expense decreased by $2.5 million.
- Total revenues decreased by 7.0% to $129.5 million.
- Gross loans outstanding reduced by 8.8% year-over-year.
- Interest and fee income declined by 4.7%.
- Insurance income dropped by 19.4%.
- Customer base reduced by 2.6% year-over-year.
Insights
World Acceptance's Q1 FY2025 results reveal a mixed financial picture. The company reported net income of
The company's focus on credit quality and conservative lending approach has led to some positive outcomes. Notably, the
However, there are some concerning trends. Gross loans outstanding decreased by
On the positive side, World Acceptance has improved its financial position, reducing its debt-to-equity ratio to 1.2:1 from 1.5:1 year-over-year. The company also repurchased
Overall, while World Acceptance is showing some resilience in a challenging environment, the declining loan portfolio and customer base suggest potential headwinds for future growth.
World Acceptance's Q1 FY2025 results demonstrate a cautious approach to credit risk management. The improvement in
The company's allowance for credit losses as a percentage of net loans receivable decreased to
The shift in portfolio mix towards customers with longer tenure (more than 2 years) now representing
The decrease in net charge-offs to
Overall, while World Acceptance appears to be managing credit risk more effectively, the high charge-off rates and persistent delinquencies indicate that credit risk remains a significant challenge for the company.
First fiscal quarter highlights
During its first fiscal quarter, World Acceptance Corporation continued to focus on credit quality and a conservative approach to its lending operations. Management believes that continuing to carefully invest in our best customers and closely monitoring performance has strengthened the Company's financial position and positioned us well for the remainder of the fiscal year.
Highlights from the first quarter include:
-
Net income of
$9.9 million -
Diluted net income per share of
$1.79 -
Recency delinquency on accounts 90+ days past due improved to
3.4% at June 30, 2024, from3.5% at June 30, 2023 -
Total revenues of
$129.5 million
Portfolio results
Gross loans outstanding were
During the most recent quarter, we did not see a significant change in borrowing from new and former customers compared to the same quarter of fiscal year 2024. Our customer base decreased by
The following table includes the volume of gross loan origination balances, excluding tax advance loans, by customer type for the following comparative quarterly periods:
|
Q1 FY 2025 |
Q1 FY 2024 |
Q1 FY 2023 |
New Customers |
|
|
|
Former Customers |
|
|
|
Refinance Customers |
|
|
|
As of June 30, 2024, the Company had 1,047 open branches. For branches open at least twelve months, same store gross loans decreased
Three-month financial results
Net income for the first quarter of fiscal 2025 increased to
Total revenues for the first quarter of fiscal 2025 decreased to
The Company accrues for expected losses with a current expected credit loss ("CECL") methodology, which requires us to create a provision for credit losses on the day we originate the loan. The provision for credit losses decreased
CECL Allowance and Provision (Dollars in millions) |
|
Q1 FY 2025 |
|
Q1 FY 2024 |
|
Difference |
|
Reconciliation |
Beginning Allowance - March 31 |
|
|
|
|
|
|
|
|
Change due to Growth |
|
|
|
|
|
|
|
|
Change due to Expected Loss Rate on Performing Loans |
|
|
|
|
|
|
|
|
Change due to 90 day past due |
|
|
|
|
|
|
|
|
Ending Allowance - June 30 |
|
|
|
|
|
|
|
|
Net Charge-offs |
|
|
|
|
|
|
|
|
Provision |
|
|
|
|
|
|
|
|
Note: The change in allowance for the quarter plus net charge-offs for the quarter equals the provision for the quarter (see above reconciliation). |
||||||||
The provision benefited from lower charge-offs during the quarter. This was partially offset by a seasonally driven increase of expected loss rates.
Net charge-offs for the quarter decreased
Accounts 61 days or more past due remained flat at
The table below is updated to use the customer tenure-based methodology that aligns with our CECL methodology. After experiencing rapid portfolio growth during fiscal years 2019 and 2020, primarily in new customers, our gross loan balance experienced pandemic related declines in fiscal 2021 before rebounding during fiscal 2022. Over the last two years we have tightened our lending to new customers substantially. The tables below illustrate the changes in the portfolio weighting.
Gross Loan Balance By Customer Tenure at Origination |
|||
As of |
Less Than 2 Years |
More Than 2 Years |
Total |
06/30/2019 |
|
|
|
06/30/2020 |
|
|
|
06/30/2021 |
|
|
|
06/30/2022 |
|
|
|
06/30/2023 |
|
|
|
06/30/2024 |
|
|
|
Year-Over-Year Growth (Decline) in Gross Loan Balance by Customer Tenure at Origination |
|||
12 Month Period Ended |
Less Than 2 Years |
More Than 2 Years |
Total |
06/30/2019 |
|
|
|
06/30/2020 |
|
|
|
06/30/2021 |
|
|
|
06/30/2022 |
|
|
|
06/30/2023 |
|
|
|
06/30/2024 |
|
|
|
Portfolio Mix by Customer Tenure at Origination |
||
As of |
Less Than 2 Years |
More Than 2 Years |
06/30/2019 |
|
|
06/30/2020 |
|
|
06/30/2021 |
|
|
06/30/2022 |
|
|
06/30/2023 |
|
|
06/30/2024 |
|
|
General and administrative (“G&A”) expenses decreased
Personnel expense decreased
Occupancy and equipment expense decreased
Advertising expense decreased
Interest expense for the quarter ended June 30, 2024, decreased by
Other key return ratios for the first quarter of fiscal 2025 included a
The Company repurchased 79,324 shares of its common stock on the open market at an aggregate purchase price of approximately
About World Acceptance Corporation (World Finance)
Founded in 1962, World Acceptance Corporation (NASDAQ: WRLD), is a people-focused finance company that provides personal installment loan solutions and personal tax preparation and filing services to over one million customers each year. Headquartered in
First 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 simulcast of the conference call will be available on the Internet at https://event.choruscall.com/mediaframe/webcast.html?webcastid=JEZwWpCc. The call will be available for replay on the Internet for approximately 30 days.
During the conference call, the Company may discuss and answer questions concerning business and financial developments and trends that have occurred after quarter-end. The Company’s responses to questions, as well as other matters discussed during the conference call, may contain or constitute information that has not been disclosed previously.
Cautionary Note Regarding Forward-looking Information
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, that represent the Company’s current expectations or beliefs concerning future events. Statements other than those of historical fact, as well as those identified by words such as “anticipate,” “estimate,” intend,” “plan,” “expect,” “project,” “believe,” “may,” “will,” “should,” “would,” “could,” “probable” and any variation of the foregoing and similar expressions are forward-looking statements. Such forward-looking statements are inherently subject to risks and uncertainties. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important 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; changes in the
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 for the fiscal year ended March 31, 2024, as filed with the 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.
WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES |
|||||
|
|||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
(unaudited and in thousands, except per share amounts) |
|||||
|
Three months ended June 30, |
||||
|
2024 |
|
2023 |
||
Revenues: |
|
|
|
||
Interest and fee income |
$ |
111,161 |
|
$ |
116,619 |
Insurance and other income, net |
|
18,366 |
|
|
22,705 |
Total revenues |
|
129,527 |
|
|
139,324 |
|
|
|
|
||
Expenses: |
|
|
|
||
Provision for credit losses |
|
45,419 |
|
|
46,602 |
General and administrative expenses: |
|
|
|
||
Personnel |
|
36,976 |
|
|
41,792 |
Occupancy and equipment |
|
12,164 |
|
|
12,620 |
Advertising |
|
1,656 |
|
|
2,750 |
Amortization of intangible assets |
|
1,006 |
|
|
1,069 |
Other |
|
9,610 |
|
|
9,894 |
Total general and administrative expenses |
|
61,412 |
|
|
68,125 |
|
|
|
|
||
Interest expense |
|
9,769 |
|
|
12,242 |
Total expenses |
|
116,600 |
|
|
126,969 |
|
|
|
|
||
Income before income taxes |
|
12,927 |
|
|
12,355 |
|
|
|
|
||
Income tax expense |
|
2,980 |
|
|
2,816 |
|
|
|
|
||
Net income |
$ |
9,947 |
|
$ |
9,539 |
|
|
|
|
||
Net income per common share, diluted |
$ |
1.79 |
|
$ |
1.62 |
|
|
|
|
||
Weighted average diluted shares outstanding |
|
5,568 |
|
|
5,891 |
WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES |
|||||||||||
|
|||||||||||
CONSOLIDATED BALANCE SHEETS |
|||||||||||
(unaudited and in thousands) |
|||||||||||
June 30, 2024 |
|
March 31, 2024 |
|
June 30, 2023 |
|||||||
ASSETS |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
11,119 |
|
|
$ |
11,839 |
|
|
$ |
15,989 |
|
Gross loans receivable |
|
1,274,819 |
|
|
|
1,277,149 |
|
|
|
1,397,966 |
|
Less: |
|
|
|
|
|
||||||
Unearned interest, insurance and fees |
|
(330,334 |
) |
|
|
(326,746 |
) |
|
|
(379,967 |
) |
Allowance for credit losses |
|
(109,643 |
) |
|
|
(102,963 |
) |
|
|
(129,343 |
) |
Loans receivable, net |
|
834,842 |
|
|
|
847,440 |
|
|
|
888,656 |
|
Income taxes receivable |
|
3,951 |
|
|
|
3,091 |
|
|
|
— |
|
Operating lease right-of-use assets, net |
|
80,866 |
|
|
|
79,501 |
|
|
|
79,462 |
|
Property and equipment, net |
|
22,199 |
|
|
|
22,897 |
|
|
|
23,856 |
|
Deferred income taxes, net |
|
32,425 |
|
|
|
30,943 |
|
|
|
43,272 |
|
Other assets, net |
|
45,599 |
|
|
|
42,199 |
|
|
|
41,148 |
|
Goodwill |
|
7,371 |
|
|
|
7,371 |
|
|
|
7,371 |
|
Intangible assets, net |
|
10,064 |
|
|
|
11,070 |
|
|
|
14,220 |
|
Total assets |
$ |
1,048,436 |
|
|
$ |
1,056,351 |
|
|
$ |
1,113,974 |
|
|
|
|
|
|
|
||||||
LIABILITIES & SHAREHOLDERS' EQUITY |
|
|
|
|
|
||||||
Liabilities: |
|
|
|
|
|
||||||
Senior notes payable |
$ |
241,728 |
|
|
$ |
223,419 |
|
|
$ |
299,776 |
|
Senior unsecured notes payable, net |
|
251,014 |
|
|
|
272,610 |
|
|
|
285,620 |
|
Income taxes payable |
|
— |
|
|
|
— |
|
|
|
3,812 |
|
Operating lease liability |
|
83,136 |
|
|
|
81,921 |
|
|
|
81,989 |
|
Accounts payable and accrued expenses |
|
49,947 |
|
|
|
53,974 |
|
|
|
45,889 |
|
Total liabilities |
|
625,825 |
|
|
|
631,924 |
|
|
|
717,086 |
|
|
|
|
|
|
|
||||||
Shareholders' equity |
|
422,611 |
|
|
|
424,427 |
|
|
|
396,888 |
|
Total liabilities and shareholders' equity |
$ |
1,048,436 |
|
|
$ |
1,056,351 |
|
|
$ |
1,113,974 |
|
WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES |
||||||||
|
||||||||
SELECTED CONSOLIDATED STATISTICS |
||||||||
(unaudited and in thousands, except percentages and branches) |
||||||||
|
|
Three months ended June 30, |
||||||
|
|
2024 |
|
2023 |
||||
|
|
|
|
|
||||
Gross loans receivable |
|
$ |
1,274,819 |
|
|
$ |
1,397,966 |
|
Average gross loans receivable (1) |
|
|
1,270,677 |
|
|
|
1,388,662 |
|
Net loans receivable (2) |
|
|
944,485 |
|
|
|
1,017,999 |
|
Average net loans receivable (3) |
|
|
942,603 |
|
|
|
1,013,007 |
|
|
|
|
|
|
||||
Expenses as a percentage of total revenue: |
|
|
|
|
||||
Provision for credit losses |
|
|
35.1 |
% |
|
|
33.4 |
% |
General and administrative |
|
|
47.4 |
% |
|
|
48.9 |
% |
Interest expense |
|
|
7.5 |
% |
|
|
8.8 |
% |
Operating income as a % of total revenue (4) |
|
|
17.5 |
% |
|
|
17.7 |
% |
|
|
|
|
|
||||
Loan volume (5) |
|
|
682,197 |
|
|
|
721,234 |
|
|
|
|
|
|
||||
Net charge-offs as percent of average net loans receivable on an annualized basis |
|
|
16.4 |
% |
|
|
16.9 |
% |
|
|
|
|
|
||||
Return on average assets (trailing 12 months) |
|
|
7.1 |
% |
|
|
3.3 |
% |
|
|
|
|
|
||||
Return on average equity (trailing 12 months) |
|
|
18.9 |
% |
|
|
10.7 |
% |
|
|
|
|
|
||||
Branches opened or acquired (merged or closed), net |
|
|
(1 |
) |
|
|
(18 |
) |
|
|
|
|
|
||||
Branches open (at period end) |
|
|
1,047 |
|
|
|
1,055 |
|
_______________________________________________________
(1) Average gross loans receivable is determined by averaging month-end gross loans receivable over the indicated period, excluding tax advances.
(2) Net loans receivable is defined as gross loans receivable less unearned interest and deferred fees.
(3) Average net loans receivable is determined by averaging month-end gross loans receivable less unearned interest and deferred fees over the indicated period, excluding tax advances.
(4) Operating income is computed as total revenues less provision for credit losses and general and administrative expenses.
(5) Loan volume includes all loan balances originated by the Company. It does not include loans purchased through acquisitions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240726269263/en/
John L. Calmes, Jr.
Executive VP, Chief Financial & Strategy Officer, and Treasurer
(864) 298-9800
Source: World Acceptance Corporation
FAQ
What were WRLD's net income and diluted net income per share for Q1 Fiscal 2025?
How did WRLD's total revenues perform in Q1 Fiscal 2025?
What was the status of WRLD's gross loans outstanding as of June 30, 2024?
How much did WRLD's interest and fee income decline in Q1 Fiscal 2025?
What changes occurred in WRLD's debt-to-equity ratio?
