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World Acceptance (WRLD) - 2025 Q4 - Earnings Call Transcript
2025-04-29 15:02
Financial Data and Key Metrics Changes - The company ended the fiscal year with an outstanding letter of $1,220,000,000, representing a 4% decrease year over year, while the customer base increased by 3.5%, marking the first year of customer growth since fiscal year 2022 [3] - The average balance per customer decreased by 7.3% year over year, following a 7.1% decrease in the previous year [4] - The fourth quarter EPS benefited from a $2,800,000 after-tax accrual release of share-based compensation expense, equating to approximately $0.38 per share [7] Business Line Data and Key Metrics Changes - Non-refinance loan volume increased by 12.6% year over year, following a 10% increase in the previous year, while maintaining high credit quality and low first payment default rates [8] - Refinance loan volume improved slightly by 3% year over year, with a temporary dip in March that rebounded in April [10] - The portfolio composition shifted towards small loans, with large loans decreasing from nearly 60% two years ago to 48% at the end of fiscal year 2025 [11] Market Data and Key Metrics Changes - The company experienced a 25% increase in tax return revenue, amounting to nearly $7,000,000 in the fourth quarter [7] - The approval rates for new customers increased by around 50% compared to the same quarters of fiscal year 2024, while maintaining low first payment default rates [12] Company Strategy and Development Direction - The company is focusing on returning to its roots by emphasizing small loans, which historically made up a larger portion of its portfolio [17] - A new credit card product is being piloted internally, with plans for wider rollout later in the fiscal year, aimed at better aligning yield with risk and expanding market reach [12][13] Management's Comments on Operating Environment and Future Outlook - Management has not observed significant changes in consumer behavior or demand since mid-February, despite external economic factors [16] - The company remains optimistic about the impact of improved training and loan servicing management on delinquency rates [6] Other Important Information - The allowance for losses decreased sequentially due to portfolio runoff [23] - Share repurchase expectations indicate a potential increase in activity, contingent on negotiations with banks and bond limitations [24] Q&A Session Summary Question: Any shift in consumer behavior since tariff noise began? - Management noted no significant increase or decrease in demand or changes in payments [16] Question: Is the shift to smaller loans due to underwriting or consumer demand? - The shift is primarily a strategic return to focusing on small loans rather than a change in consumer demand [17][18] Question: What is driving the strong revenue growth in tax preparation? - The growth is attributed to market research, increased pricing, and sustained demand during the tax season [19]
World Acceptance (WRLD) - 2025 Q4 - Annual Results
2025-04-29 11:35
Financial Performance - Total revenues for the fourth quarter of fiscal 2025 increased to $165.3 million, a 3.8% increase from $159.3 million for the same quarter of the prior year[9] - Net income for the fourth quarter of fiscal 2025 increased to $44.3 million compared to $35.1 million for the same quarter of the prior year, resulting in diluted net income per share of $8.13[8] - Net income for the year ended March 31, 2025, increased by $12.4 million to $89.7 million, resulting in a net income of $16.30 per diluted share compared to $13.19 per diluted share in the prior year[23] - Total revenues for fiscal 2025 decreased by 1.5% to $564.8 million, down from $573.2 million in the previous fiscal year due to a decrease in loans outstanding[23] Loan and Credit Metrics - Gross loans outstanding were $1.23 billion as of March 31, 2025, a 4.0% decrease from $1.28 billion as of March 31, 2024[3] - New customer loan volume increased by 1.3%, while former and refinance customer loan volumes decreased by 2.5% and 14.2%, respectively, compared to the same quarter of fiscal year 2024[4] - The provision for credit losses increased by $3.7 million to $33.0 million from $29.3 million when comparing the fourth quarter of fiscal 2025 to the fourth quarter of fiscal 2024[10] - Provision for credit losses for the year ended March 31, 2025, was $169.2 million, compared to $157.0 million in the prior year[30] - Annualized net charge-offs as a percent of average net loans decreased from 17.7% in fiscal 2024 to 17.5% in fiscal 2025[23] Expenses and Cost Management - General and administrative expenses decreased by $5.7 million, or 7.9%, to $65.9 million in the fourth quarter of fiscal 2025 compared to $71.6 million in the same quarter of the prior fiscal year[16] - Interest expense decreased by $0.6 million, or 4.8%, due to a 5.2% decrease in average debt outstanding for the quarter[20] Asset and Equity Position - Total assets as of March 31, 2025, were $1,007.6 million, a decrease from $1,056.4 million as of March 31, 2024[33] - The debt to equity ratio decreased to 1.0:1 at March 31, 2025, compared to 1.2:1 at March 31, 2024[20] Shareholder Actions - The Company repurchased 225,985 shares at an aggregate purchase price of approximately $32.0 million during Q4 of fiscal 2025, in addition to repurchases of 174,632 shares for approximately $22.2 million in the first three quarters[22] - The Company had approximately 5.2 million common shares outstanding as of March 31, 2025, excluding 159,683 unvested restricted shares[22] Customer and Branch Growth - The customer base increased by 3.5% during the twelve-month period ended March 31, 2025[6] - The Company opened or acquired a net of 11 branches during the three months ended March 31, 2025, bringing the total branches open at period end to 1,024[35] Income from Operations - Other income increased by $6.1 million, or 20.4%, to $35.9 million in the fourth quarter of fiscal 2025 compared to $29.8 million in the fourth quarter of fiscal 2024[9] - Interest and fee income for the year ended March 31, 2025, was $465.1 million, slightly down from $468.5 million in the previous year[30] Return Metrics - Return on average assets for the trailing 12 months was 8.5%, up from 7.0% in the prior year[35]
Should Value Investors Buy World Acceptance (WRLD) Stock?
ZACKS· 2025-02-21 15:45
Core Insights - The Zacks Rank system emphasizes earnings estimates and revisions to identify winning stocks [1] - Value investing remains a popular strategy, focusing on fundamental analysis to find undervalued stocks [2] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly in the Value category [3] Company Analysis: World Acceptance (WRLD) - World Acceptance (WRLD) currently holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A [4] - WRLD has a Forward P/E ratio of 10.04, which is lower than the industry average of 10.21; its Forward P/E has fluctuated between 12.19 and 7.32 over the past 52 weeks [4] - The stock's P/CF ratio is 7.56, which is attractive compared to the industry's average P/CF of 8.35; WRLD's P/CF has ranged from 9.59 to 5.43 in the past year [5] - These metrics indicate that WRLD is likely undervalued, supported by a strong earnings outlook [6]
World Acceptance (WRLD) Now Trades Above Golden Cross: Time to Buy?
ZACKS· 2025-02-07 15:56
Group 1 - World Acceptance Corporation (WRLD) has reached a significant support level and is considered a good pick for investors from a technical perspective due to a "golden cross" formation [1] - The golden cross is characterized by a stock's short-term moving average breaking above its long-term moving average, indicating a potential bullish breakout [1][2] - Over the past four weeks, WRLD has gained 26.2%, and it currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting a strong bullish outlook [3] Group 2 - The positive earnings outlook for WRLD is supported by two upward revisions in earnings estimates over the past 60 days, with no downward revisions, indicating a favorable trend [3] - Investors are encouraged to monitor WRLD for potential further gains due to its key technical level and positive earnings estimate revisions [4]
World Acceptance (WRLD) - 2025 Q3 - Quarterly Report
2025-02-06 21:27
Financial Performance - Total revenues for the three months ended December 31, 2024, were $138.63 million, a slight increase from $137.75 million in the same period of 2023[16] - Net income for the three months ended December 31, 2024, was $13.39 million, compared to $16.66 million in the same period of 2023, reflecting a decrease of approximately 19%[16] - Basic earnings per share for the three months ended December 31, 2024, were $2.46, down from $2.89 in the same period of 2023[16] - Net income for the nine months ended December 31, 2024, was $45,463,881, an increase from $42,285,985 for the same period in 2023, representing a growth of approximately 5%[24] - Cash flow from operating activities for the nine months ended December 31, 2024, was $163,206,341, compared to $181,969,945 in 2023, indicating a decrease of about 10.3%[24] Credit Losses and Loans - The provision for credit losses increased to $44.10 million for the three months ended December 31, 2024, up from $40.63 million in the same period of 2023, indicating a rise of about 6%[16] - The allowance for credit losses was $116.11 million as of December 31, 2024, up from $102.96 million as of March 31, 2024, reflecting an increase of about 13%[14] - The provision for credit losses increased to $136,191,023 for the nine months ended December 31, 2024, up from $127,697,072 in 2023, reflecting a rise of approximately 6.3%[24] - The company reported gross charge-offs of $106,191,790 for the nine months ended December 31, 2024, with the majority coming from loans originated in 2024[54] - The company experienced net charge-offs of $123,042,888 for the nine months ended December 31, 2024, compared to $132,167,737 for the same period in 2023[59] Assets and Liabilities - Total assets as of December 31, 2024, were $1.11 billion, compared to $1.06 billion as of March 31, 2024, marking an increase of approximately 5%[14] - Total liabilities increased to $682.33 million as of December 31, 2024, from $631.92 million as of March 31, 2024, representing an increase of approximately 8%[14] - The company’s total shareholders' equity increased to $428,169,949 as of December 31, 2024, from $407,019,166 at the end of December 2023, representing an increase of approximately 5.2%[24] Loan Performance - Current payment performance indicates that $1,251,086,702 of loans are current, while $45,948,847 are 91 or more days past due[48] - The total past due loans reached $130,183,274, representing 9.4% of the total gross loans as of December 31, 2024[59] - The percentage of loans receivable that were 60+ days past due was 10.3%, indicating a notable level of delinquency[62] - The total net loans as of December 31, 2024, were $904,527,453, with a total past due amount of $115,490,301[62] Expenses - The company reported a decrease in general and administrative expenses to $67.22 million for the three months ended December 31, 2024, compared to $65.91 million in the same period of 2023[16] - G&A expenses for the three months ended December 31, 2024 increased by $1.3 million, or 2.0%, from the corresponding period of the previous year[148] - Personnel expenses totaled $99.8 million, a decrease of $20.3 million, or 16.9%, compared to the previous year, with headcount down by 3.1%[164] Stock and Share Repurchase - The company repurchased common stock amounting to $22,194,690 during the nine months ended December 31, 2024, compared to $17,291,997 in the same period of 2023, representing an increase of approximately 28%[24] - The Company authorized a share repurchase program of up to $20.0 million, with $9.0 million remaining as of December 31, 2024[193] Debt and Financing - The outstanding balance under the Company's credit facility as of December 31, 2024 was $335.9 million, with an effective interest rate of 9.7% annualized[112] - The Company issued $300 million in 7.0% senior unsecured notes due November 2026, with interest payable semi-annually starting May 1, 2022[114] - The Company was in compliance with its debt covenants as of December 31, 2024, and does not anticipate these covenants will materially limit its business strategy[120] Tax and Compliance - The Company's effective income tax rate increased to 16.4% for the three months ended December 31, 2024, compared to 14.6% for the prior year quarter[128] - As of December 31, 2024, the Company had $1.1 million of total gross unrecognized tax benefits, with $0.4 million expected to be resolved in the next twelve months[125] Future Outlook - The Company believes inflation will not materially adversely affect its financial condition, as increased loan demand may offset rising operating costs[195] - The Company does not foresee any trends or uncertainties that could materially affect its liquidity in the foreseeable future[192]
Are Investors Undervaluing World Acceptance (WRLD) Right Now?
ZACKS· 2025-02-05 15:45
Core Viewpoint - The article emphasizes the importance of value investing and highlights World Acceptance (WRLD) as a strong value stock based on its financial metrics and Zacks Rank [1][2][6]. Group 1: Value Investing - Value investing is a preferred strategy for identifying strong stocks across various market conditions, utilizing established valuation metrics [2]. - The Zacks Rank and Style Scores system can help investors find stocks with specific traits, particularly those with high value grades [3]. Group 2: Company Analysis - World Acceptance (WRLD) - World Acceptance (WRLD) has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [4]. - WRLD's current P/E ratio is 9.62, lower than the industry average of 10.03, suggesting it may be undervalued [4]. - The Forward P/E ratio for WRLD has fluctuated between 7.32 and 12.19 over the past 12 months, with a median of 9.10 [4]. - WRLD's P/CF ratio stands at 7.12, which is attractive compared to the industry's average P/CF of 8.05, indicating solid cash flow prospects [5]. - The P/CF ratio for WRLD has ranged from 5.43 to 9.48 in the past year, with a median of 6.63 [5]. - Overall, the financial metrics suggest that World Acceptance is likely undervalued and has a strong earnings outlook, making it a standout in the value stock category [6].
World Acceptance Corporation (WRLD) Hit a 52 Week High, Can the Run Continue?
ZACKS· 2025-01-29 15:16
Core Viewpoint - World Acceptance (WRLD) has experienced significant stock performance, with a 33.8% increase over the past month and reaching a new 52-week high of $161.63 [1] Financial Performance - The company has consistently exceeded earnings expectations, reporting an EPS of $2.45 against a consensus estimate of $1.23 in its last earnings report [2] - For the current fiscal year, World Acceptance is projected to achieve earnings of $12.88 per share on revenues of $557.22 million, reflecting a -2.35% change in EPS and a -2.79% change in revenues [3] - The next fiscal year forecasts earnings of $13.68 per share on revenues of $561.56 million, indicating a year-over-year growth of 6.21% in EPS and 0.78% in revenues [3] Valuation Metrics - The stock trades at 11.7X current fiscal year EPS estimates, which is above the peer industry average of 10.8X, while on a trailing cash flow basis, it trades at 8.8X compared to the peer group's average of 11.5X [7] - World Acceptance has a Value Score of A, with Growth and Momentum Scores of C, resulting in a combined VGM Score of B [6] Zacks Rank - The stock holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8] - World Acceptance meets the criteria for selection based on Zacks Rank and Style Scores, suggesting potential for further gains [9]
World Acceptance (WRLD) Q3 Earnings and Revenues Top Estimates
ZACKS· 2025-01-28 14:41
分组1 - World Acceptance (WRLD) reported quarterly earnings of $2.45 per share, exceeding the Zacks Consensus Estimate of $1.23 per share, but down from $2.84 per share a year ago, resulting in an earnings surprise of 99.19% [1] - The company achieved revenues of $138.63 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.44% and showing a slight increase from $137.75 million year-over-year [2] - World Acceptance has outperformed the S&P 500, gaining about 15% since the beginning of the year compared to the S&P 500's gain of 2.2% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $6.16 on revenues of $159.61 million, and for the current fiscal year, it is $12.88 on revenues of $557.22 million [7] - The Zacks Industry Rank indicates that the Financial - Consumer Loans sector is currently in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8]
World Acceptance (WRLD) - 2025 Q3 - Quarterly Results
2025-01-28 12:36
Financial Performance - Total revenues for the third quarter of fiscal 2025 increased to $138.6 million, a 0.6% increase from $137.7 million for the same quarter of the prior year[7] - Net income for the third quarter of fiscal 2025 decreased to $13.4 million compared to $16.7 million for the same quarter of the prior year, with diluted net income per share decreasing to $2.45 from $2.84[6] - Net income for the nine months ended December 31, 2024, increased by $3.2 million to $45.5 million, resulting in a net income of $8.23 per diluted share, compared to $7.17 per diluted share in the prior-year period[21] - Total revenues for the first nine months of fiscal 2025 decreased by 3.5% to $399.6 million, down from $413.9 million during the same period of the previous year due to a decrease in loans outstanding[21] Loan and Credit Metrics - Gross loans outstanding were $1.38 billion as of December 31, 2024, a 1.4% decrease from $1.40 billion as of December 31, 2023, but increased sequentially by 6.6% from $1.30 billion as of September 30, 2024[3] - The provision for credit losses increased by $3.5 million to $44.1 million compared to $40.6 million in the third quarter of fiscal 2024[8] - Annualized net charge-offs as a percent of average net loans decreased from 17.4% during the first nine months of fiscal 2024 to 17.1% for the first nine months of fiscal 2025[21] - Net charge-offs for the quarter decreased by $6.0 million to $42.4 million, with net charge-offs as a percentage of average net loan receivables decreasing to 17.2% from 19.1%[11] - Provision for credit losses increased to $136.19 million for the nine months ended December 31, 2024, compared to $127.70 million in the previous year[30] Income and Expenses - Interest and fee income increased by 3.1% to $122.4 million in the third quarter of fiscal 2025 from $118.7 million in the same quarter of fiscal 2024[7] - Total expenses for the nine months ended December 31, 2024, were $342.70 million, down from $361.15 million in the prior year[30] Customer and Branch Metrics - The customer base increased by 3.7% during the twelve-month period ended December 31, 2024, compared to a decrease of 2.4% for the comparable period ended December 31, 2023[4] - The company opened or acquired a net of 10 branches during the nine months ended December 31, 2024, bringing the total branches open at period end to 1,035[35] Ratios and Returns - The debt to equity ratio decreased to 1.3:1 at December 31, 2024, compared to 1.4:1 at December 31, 2023[18] - Return on average assets for the trailing 12 months was 7.5%, up from 6.0% in the previous year[35] - Return on average equity for the trailing 12 months was 19.2%, compared to 17.3% in the prior year[35] Stock Activity - The company repurchased 9,465 shares of its common stock at an aggregate purchase price of approximately $1.0 million during the third quarter of fiscal 2025[20] Delinquency Metrics - Recency delinquency on accounts 90+ days past due improved to 3.4% at December 31, 2024, from 3.7% at December 31, 2023[5] - Interest and fee income for the three months ended December 31, 2024, was $122.39 million, compared to $118.67 million for the same period in 2023[30]
Is World Acceptance (WRLD) Stock Undervalued Right Now?
ZACKS· 2025-01-20 15:45
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tri ...