World Acceptance Corporation Reports Fiscal 2025 Second Quarter Results
World Acceptance (NASDAQ: WRLD) reported Q2 fiscal 2025 results with net income of $22.1 million and diluted earnings per share of $3.99, up from $16.1 million and $2.71 in the prior year. Total revenues decreased 4.0% to $131.4 million. Gross loans outstanding were $1.30 billion, down 6.1% year-over-year but up 1.7% sequentially. The company saw improved loan growth with new, former and refinance loan customer volume increasing 20.8%, 11.5% and 2.9% respectively. Credit quality improved with 90+ days delinquency dropping to 3.4% from 3.7% year-over-year.
World Acceptance (NASDAQ: WRLD) ha riportato i risultati del secondo trimestre fiscale 2025 con un utile netto di 22,1 milioni di dollari e un utile per azione diluito di 3,99 dollari, in aumento rispetto ai 16,1 milioni di dollari e 2,71 dollari dell'anno precedente. I ricavi totali sono diminuiti del 4,0% a 131,4 milioni di dollari. I prestiti lordi in essere ammontavano a 1,30 miliardi di dollari, in calo del 6,1% rispetto all'anno precedente, ma in crescita dell'1,7% sequenzialmente. L'azienda ha registrato una crescita dei prestiti migliorata, con i volumi di nuovi clienti, ex clienti e rifinanziamenti in aumento rispettivamente del 20,8%, 11,5% e 2,9%. La qualità del credito è migliorata con la percentuale di delinquenti oltre 90 giorni scesa al 3,4% rispetto al 3,7% dell'anno precedente.
World Acceptance (NASDAQ: WRLD) informó los resultados del segundo trimestre del año fiscal 2025 con un ingreso neto de 22,1 millones de dólares y ganancias por acción diluidas de 3,99 dólares, un aumento con respecto a los 16,1 millones de dólares y 2,71 dólares del año anterior. Los ingresos totales disminuyeron un 4,0% a 131,4 millones de dólares. Los préstamos brutos pendientes fueron de 1,30 mil millones de dólares, cayendo un 6,1% en comparación con el año pasado, pero aumentando un 1,7% en comparación con el trimestre anterior. La empresa experimentó un crecimiento mejorado en los préstamos, con el volumen de clientes nuevos, antiguos y de refinanciamiento aumentando un 20,8%, 11,5% y 2,9%, respectivamente. La calidad crediticia mejoró con la morosidad de más de 90 días cayendo al 3,4% desde el 3,7% del año anterior.
월드 수용 (NASDAQ: WRLD)는 2025 회계 연도 2분기 결과를 보고하며 순이익이 2210만 달러에, 희석된 주당순이익이 3.99 달러로, 전년의 1610만 달러와 2.71 달러에서 증가했습니다. 총 수익은 4.0% 감소한 1억 3140만 달러였습니다. 총 대출 잔액은 13억 달러로, 전년 대비 6.1% 감소했지만, 전 분기 대비 1.7% 증가했습니다. 회사는 신규, 이전 및 재융자 대출 고객의 거래량이 각각 20.8%, 11.5% 및 2.9% 증가하면서 대출 성장력이 개선되었습니다. 신용 품질도 개선되어 90일 이상 연체율이 전년 3.7%에서 3.4%로 감소했습니다.
World Acceptance (NASDAQ: WRLD) a publié les résultats du deuxième trimestre de l'exercice fiscal 2025, avec un revenu net de 22,1 millions de dollars et un bénéfice par action dilué de 3,99 dollars, en hausse par rapport à 16,1 millions de dollars et 2,71 dollars l'année précédente. Les revenus totaux ont diminué de 4,0% pour atteindre 131,4 millions de dollars. Les prêts bruts en cours se chiffraient à 1,30 milliard de dollars, en baisse de 6,1% par rapport à l'année précédente, mais en augmentation de 1,7% d'un trimestre à l'autre. L'entreprise a constaté une amélioration de la croissance des prêts, avec un volume de clients pour de nouveaux prêts, d'anciens clients et de prêts refinancés en hausse de 20,8%, 11,5% et 2,9% respectivement. La qualité du crédit s'est améliorée avec un taux de défaut de plus de 90 jours tombé à 3,4% contre 3,7% l'année précédente.
World Acceptance (NASDAQ: WRLD) hat die Ergebnisse des zweiten Quartals des Geschäftsjahres 2025 bekannt gegeben, mit einem Nettoeinkommen von 22,1 Millionen Dollar und verwässerten Gewinn pro Aktie von 3,99 Dollar, ein Anstieg gegenüber 16,1 Millionen Dollar und 2,71 Dollar im Vorjahr. Die Gesamterlöse sanken um 4,0% auf 131,4 Millionen Dollar. Die ausstehenden Bruttokredite betrugen 1,30 Milliarden Dollar, was einem Rückgang von 6,1% im Vergleich zum Vorjahr entspricht, aber einem Anstieg von 1,7% im Vergleich zum vorherigen Quartal. Das Unternehmen verzeichnete ein verbessertes Kreditwachstum, wobei das Volumen neuer, ehemaliger und refinanzierter Kredite um 20,8%, 11,5% und 2,9% jeweils zunahm. Die Kreditqualität verbesserte sich, da die 90+ Tage überfälligen Kredite von 3,7% im Vorjahr auf 3,4% sanken.
- Net income increased to $22.1 million from $16.1 million YoY
- Diluted EPS grew to $3.99 from $2.71 YoY
- Sequential loan growth of 1.7% ($21.1 million)
- Improved credit quality with 90+ days delinquency dropping to 3.4% from 3.7%
- Strong customer volume growth: new +20.8%, former +11.5%, refinance +2.9%
- Total revenues declined 4.0% to $131.4 million YoY
- Gross loans outstanding decreased 6.1% YoY to $1.30 billion
- Net charge-offs increased to 17.6% from 16.1% YoY
- Insurance income decreased 20.5% to $12.3 million YoY
Insights
World Acceptance 's Q2 FY2025 results show mixed performance with some notable improvements. Net income increased to
Key positives include improved loan growth metrics, with new and former customer volume up
However, challenges persist with a
The company's strategic positioning shows a deliberate shift toward risk management and portfolio quality over growth. Share repurchases of
The market should particularly note the improved borrower metrics and reduced delinquency rates, suggesting better credit quality despite economic pressures. The company's focus on established customers (80% of portfolio) versus new borrowers (20%) indicates a more conservative lending approach that could provide stability in an uncertain economic environment.
Second fiscal quarter highlights
During its second fiscal quarter, World Acceptance Corporation achieved improved loan growth while continuing to focus on credit quality. 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 second quarter include:
-
Net income of
$22.1 million -
Diluted net income per share of
$3.99 -
Recency delinquency on accounts 90+ days past due improved to
3.4% at September 30, 2024, from3.7% at September 30, 2023 -
Total revenues of
$131.4 million
Portfolio results
Gross loans outstanding were
During the most recent quarter, we saw improvement in borrowing from new, former and existing customers compared to the same quarter of fiscal year 2024. Specifically, new, former and refinance loan customer volume during the quarter increased
The following table includes the volume of gross loan origination balances by customer type for the following comparative quarterly periods:
|
Q2 FY 2025 |
Q2 FY 2024 |
Q2 FY 2023 |
New Customers |
|
|
|
Former Customers |
|
|
|
Refinance Customers |
|
|
|
As of September 30, 2024, the Company had 1,045 open branches. For branches open at least twelve months, same store gross loans decreased
Three-month financial results
Net income for the second quarter of fiscal 2025 increased to
Total revenues for the second 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 increased
CECL Allowance and Provision (Dollars in millions) |
|
Q2 FY 2025 |
|
Q2 FY 2024 |
|
Difference |
|
Reconciliation |
Beginning Allowance - June 30 |
|
|
|
|
|
|
|
|
Change due to Growth |
|
|
|
|
|
|
|
|
Change due to Expected Loss Rate on Performing Loans |
|
|
|
|
|
|
|
|
Change due to 90 day past due |
|
|
|
|
|
|
|
|
Ending Allowance - September 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 was negatively impacted by growth and an increase in expected loss rates during the quarter. Specifically, expected loss rates were negatively impacted by an increase in our 0-5 month customers, our riskiest customers, during the current quarter.
Net charge-offs for the quarter increased
Accounts 61 days or more past due decreased to
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 and a half 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 |
09/30/2019 |
|
|
|
09/30/2020 |
|
|
|
09/30/2021 |
|
|
|
09/30/2022 |
|
|
|
09/30/2023 |
|
|
|
09/30/2024 |
|
|
|
|
|||
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 |
09/30/2019 |
|
|
|
09/30/2020 |
|
|
|
09/30/2021 |
|
|
|
09/30/2022 |
|
|
|
09/30/2023 |
|
|
|
09/30/2024 |
|
|
|
Portfolio Mix by Customer Tenure at Origination |
||
As of |
Less Than 2 Years |
More Than 2 Years |
09/30/2019 |
|
|
09/30/2020 |
|
|
09/30/2021 |
|
|
09/30/2022 |
|
|
09/30/2023 |
|
|
09/30/2024 |
|
|
General and administrative (“G&A”) expenses decreased
Personnel expense decreased
Occupancy and equipment expense decreased
Advertising expense increased
Interest expense for the quarter ended September 30, 2024, decreased by
Other key return ratios for the second quarter of fiscal 2025 included a
The Company repurchased 85,843 shares of its common stock on the open market at an aggregate purchase price of approximately
Six-Month Results
Net income for the six-months ended September 30, 2024, increased
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
Second 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=Lh4m14ro. 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 |
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|
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CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||
(unaudited and in thousands, except per share amounts) |
|||||||||||
|
Three months ended September 30, |
|
Six months ended September 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Revenues: |
|
|
|
|
|
|
|
||||
Interest and fee income |
$ |
113,905 |
|
$ |
116,953 |
|
$ |
225,066 |
|
$ |
233,572 |
Insurance and other income, net |
|
17,504 |
|
|
19,922 |
|
|
35,870 |
|
|
42,627 |
Total revenues |
|
131,409 |
|
|
136,875 |
|
|
260,936 |
|
|
276,199 |
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
||||
Provision for credit losses |
|
46,669 |
|
|
40,463 |
|
|
92,088 |
|
|
87,065 |
General and administrative expenses: |
|
|
|
|
|
|
|
||||
Personnel |
|
21,754 |
|
|
38,437 |
|
|
58,730 |
|
|
80,229 |
Occupancy and equipment |
|
12,337 |
|
|
12,429 |
|
|
24,500 |
|
|
25,048 |
Advertising |
|
2,821 |
|
|
2,242 |
|
|
4,478 |
|
|
4,991 |
Amortization of intangible assets |
|
959 |
|
|
1,063 |
|
|
1,965 |
|
|
2,132 |
Other |
|
8,484 |
|
|
8,776 |
|
|
18,093 |
|
|
18,672 |
Total general and administrative expenses |
|
46,355 |
|
|
62,947 |
|
|
107,766 |
|
|
131,072 |
|
|
|
|
|
|
|
|
||||
Interest expense |
|
10,457 |
|
|
12,543 |
|
|
20,226 |
|
|
24,785 |
Total expenses |
|
103,481 |
|
|
115,953 |
|
|
220,080 |
|
|
242,922 |
|
|
|
|
|
|
|
|
||||
Income before income taxes |
|
27,928 |
|
|
20,922 |
|
|
40,856 |
|
|
33,277 |
|
|
|
|
|
|
|
|
||||
Income tax expense |
|
5,800 |
|
|
4,839 |
|
|
8,780 |
|
|
7,655 |
|
|
|
|
|
|
|
|
||||
Net income |
$ |
22,128 |
|
$ |
16,083 |
|
$ |
32,076 |
|
$ |
25,622 |
|
|
|
|
|
|
|
|
||||
Net income per common share, diluted |
$ |
3.99 |
|
$ |
2.71 |
|
$ |
5.77 |
|
$ |
4.33 |
|
|
|
|
|
|
|
|
||||
Weighted average diluted shares outstanding |
|
5,549 |
|
|
5,939 |
|
|
5,558 |
|
|
5,915 |
WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES |
|||||||||||
|
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CONSOLIDATED BALANCE SHEETS |
|||||||||||
(unaudited and in thousands) |
|||||||||||
|
September 30, 2024 |
|
March 31, 2024 |
|
September 30, 2023 |
||||||
ASSETS |
|
|
|
|
|
||||||
Cash and cash equivalents |
$ |
9,746 |
|
|
$ |
11,839 |
|
|
$ |
18,786 |
|
Gross loans receivable |
|
1,295,870 |
|
|
|
1,277,149 |
|
|
|
1,379,514 |
|
Less: |
|
|
|
|
|
||||||
Unearned interest, insurance and fees |
|
(338,708 |
) |
|
|
(326,746 |
) |
|
|
(370,312 |
) |
Allowance for credit losses |
|
(114,455 |
) |
|
|
(102,963 |
) |
|
|
(128,892 |
) |
Loans receivable, net |
|
842,707 |
|
|
|
847,440 |
|
|
|
880,310 |
|
Income taxes receivable |
|
4,769 |
|
|
|
3,091 |
|
|
|
— |
|
Operating lease right-of-use assets, net |
|
80,604 |
|
|
|
79,501 |
|
|
|
80,397 |
|
Property and equipment, net |
|
21,445 |
|
|
|
22,897 |
|
|
|
23,696 |
|
Deferred income taxes, net |
|
32,231 |
|
|
|
30,943 |
|
|
|
41,858 |
|
Other assets, net |
|
41,183 |
|
|
|
42,199 |
|
|
|
40,124 |
|
Goodwill |
|
7,371 |
|
|
|
7,371 |
|
|
|
7,371 |
|
Intangible assets, net |
|
9,107 |
|
|
|
11,070 |
|
|
|
13,158 |
|
Total assets |
$ |
1,049,163 |
|
|
$ |
1,056,351 |
|
|
$ |
1,105,700 |
|
|
|
|
|
|
|
||||||
LIABILITIES & SHAREHOLDERS' EQUITY |
|
|
|
|
|
||||||
Liabilities: |
|
|
|
|
|
||||||
Senior notes payable |
$ |
265,630 |
|
|
$ |
223,419 |
|
|
$ |
276,556 |
|
Senior unsecured notes payable, net |
|
239,311 |
|
|
|
272,610 |
|
|
|
284,379 |
|
Income taxes payable |
|
— |
|
|
|
— |
|
|
|
1,947 |
|
Operating lease liability |
|
82,860 |
|
|
|
81,921 |
|
|
|
82,948 |
|
Accounts payable and accrued expenses |
|
43,898 |
|
|
|
53,974 |
|
|
|
49,847 |
|
Total liabilities |
|
631,699 |
|
|
|
631,924 |
|
|
|
695,677 |
|
|
|
|
|
|
|
||||||
Shareholders' equity |
|
417,464 |
|
|
|
424,427 |
|
|
|
410,023 |
|
Total liabilities and shareholders' equity |
$ |
1,049,163 |
|
|
$ |
1,056,351 |
|
|
$ |
1,105,700 |
|
WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES |
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|
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SELECTED CONSOLIDATED STATISTICS |
|||||||||||||||
(unaudited and in thousands, except percentages and branches) |
|||||||||||||||
|
|
Three months ended September 30, |
Six months ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
2024 |
|
2023 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Gross loans receivable |
|
$ |
1,295,870 |
|
|
$ |
1,379,514 |
|
$ |
1,295,870 |
|
|
$ |
1,379,514 |
|
Average gross loans receivable (1) |
|
|
1,284,326 |
|
|
|
1,394,395 |
|
|
1,277,911 |
|
|
|
1,390,609 |
|
Net loans receivable (2) |
|
|
957,162 |
|
|
|
1,009,202 |
|
|
957,162 |
|
|
|
1,009,202 |
|
Average net loans receivable (3) |
|
|
949,302 |
|
|
|
1,017,773 |
|
|
946,188 |
|
|
|
1,015,017 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses as a percentage of total revenue: |
|
|
|
|
|
|
|
||||||||
Provision for credit losses |
|
|
35.5 |
% |
|
|
29.6 |
% |
|
35.3 |
% |
|
|
31.5 |
% |
General and administrative |
|
|
35.3 |
% |
|
|
46.0 |
% |
|
41.3 |
% |
|
|
47.5 |
% |
Interest expense |
|
|
8.0 |
% |
|
|
9.2 |
% |
|
7.8 |
% |
|
|
9.0 |
% |
Operating income as a % of total revenue (4) |
|
|
29.2 |
% |
|
|
24.4 |
% |
|
23.4 |
% |
|
|
21.0 |
% |
|
|
|
|
|
|
|
|
||||||||
Loan volume (5) |
|
|
702,238 |
|
|
|
668,215 |
|
|
1,384,435 |
|
|
|
1,389,449 |
|
|
|
|
|
|
|
|
|
||||||||
Net charge-offs as percent of average net loans receivable on an annualized basis |
|
|
17.6 |
% |
|
|
16.1 |
% |
|
17.0 |
% |
|
|
16.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Return on average assets (trailing 12 months) |
|
|
7.8 |
% |
|
|
5.0 |
% |
|
7.8 |
% |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
||||||||
Return on average equity (trailing 12 months) |
|
|
20.1 |
% |
|
|
15.2 |
% |
|
20.1 |
% |
|
|
15.2 |
% |
|
|
|
|
|
|
|
|
||||||||
Branches opened or acquired (merged or closed), net |
|
|
(2 |
) |
|
|
(2 |
) |
|
(3 |
) |
|
|
(20 |
) |
|
|
|
|
|
|
|
|
||||||||
Branches open (at period end) |
|
|
1,045 |
|
|
|
1,053 |
|
|
1,045 |
|
|
|
1,053 |
|
_______________________________________________________ |
|||||||||||||||
(1) Average gross loans receivable is determined by averaging month-end gross loans receivable over the indicated period, excluding tax advances. |
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(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. |
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(4) Operating income is computed as total revenues less provision for credit losses and general and administrative expenses. |
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(5) Loan volume includes all loan balances originated by the Company. It does not include loans purchased through acquisitions. |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241025905980/en/
John L. Calmes, Jr.
Executive VP, Chief Financial & Strategy Officer, and Treasurer
(864) 298-9800
Source: World Acceptance Corporation
FAQ
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