World Acceptance Corporation Reports Fiscal 2025 Second Quarter Results

In This Article:

GREENVILLE, S.C., October 25, 2024--(BUSINESS WIRE)--World Acceptance Corporation (NASDAQ: WRLD) today reported financial results for its second quarter of fiscal 2025.

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, from 3.7% at September 30, 2023

  • Total revenues of $131.4 million, including a 113 basis point yield increase compared to the same quarter in the prior year

Portfolio results

Gross loans outstanding were $1.30 billion as of September 30, 2024, a 6.1% decrease from the $1.38 billion of gross loans outstanding as of September 30, 2023. During the most recent quarter, gross loans outstanding increased sequentially 1.7%, or $21.1 million, from $1.28 billion as of June 30, 2024, compared to a decrease of 1.3%, or $18.5 million, in the comparable quarter of the prior year.

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 20.8%, 11.5% and 2.9%, respectively, compared to the same quarter of fiscal year 2024. Our customer base decreased by 0.1% during the twelve-month period ended September 30, 2024, compared to a decrease of 9.4% for the comparable period ended September 30, 2023. During the quarter ended September 30, 2024, the number of unique borrowers in the portfolio increased by 3.6% compared to an increase of 1.0% during the quarter ended September 30, 2023. We continued to improve the gross yield to expected loss ratio for all new, former and refinance customer originations and will continue to monitor performance indicators and intend to adjust underwriting accordingly.

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

$44,479,349

$36,822,744

$36,638,094

Former Customers

$100,630,514

$90,227,607

$98,701,899

Refinance Customers

$557,020,707

$541,181,690

$621,138,738

As of September 30, 2024, the Company had 1,045 open branches. For branches open at least twelve months, same store gross loans decreased 5.6% in the twelve-month period ended September 30, 2024, compared to a decrease of 10.9% for the twelve-month period ended September 30, 2023. For branches open throughout both periods, the customer base over the twelve-month period ended September 30, 2024, increased 0.3% compared to a decrease of 6.7% for the twelve-month period ended September 30, 2023.

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