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][4] - 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][12] 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 third and fourth quarters of fiscal year 2024 [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 [11][17] - A new credit card product is being piloted internally, with plans for wider testing and eventual customer offering later in the fiscal year [12][13] - The strategy aims to align yield with risk, manage both installment and revolving credit, and expand market reach [13] Management's Comments on Operating Environment and Future Outlook - Management has not observed significant changes in consumer demand or payment behavior despite external economic factors [16] - There is optimism regarding the impact of improved training and loan servicing management on delinquency rates [6] - The company expects natural reductions in annualized charge-off rates with normal portfolio growth [4] Other Important Information - The company has repurchased over $115,000,000 of bonds, with plans for more repurchases depending on negotiations with banks [24][25] Q&A Session Summary Question: Any shift in consumer behavior since mid to late February? - Management indicated no significant increase or decrease in demand or change in payments [16] Question: Is the shift to smaller loans due to underwriting or consumer demand? - The shift is primarily a return to the company's historical focus 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 minimal reduction in demand during tax season [19]

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]

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]

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]

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]

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]

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].

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]

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]

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]