Core Viewpoint - The article emphasizes the importance of value investing and highlights World Acceptance (WRLD) as a strong candidate for value investors due to its favorable financial metrics and Zacks Rank [1][2][7]. Company Analysis - World Acceptance (WRLD) currently holds a Zacks Rank of 2 (Buy) and has a Value grade of A, indicating strong potential for value investors [4]. - The stock has a Forward P/E ratio of 9.14, which is lower than the industry average of 9.73. Over the past year, WRLD's Forward P/E has fluctuated between a high of 12.19 and a low of 7.32, with a median of 9.10 [4]. - The P/S ratio for WRLD is 1.31, compared to the industry's average P/S of 1.36, suggesting that the stock is reasonably valued based on sales [5]. - WRLD has a P/CF ratio of 6.21, which is significantly lower than the industry's average P/CF of 7.88. The P/CF has ranged from a high of 9.59 to a low of 5.43 over the past 12 months, with a median of 6.69 [6]. - These financial metrics indicate that WRLD is likely undervalued at the moment, supported by a strong earnings outlook [7].

Financial Position - As of September 30, 2024, total assets amounted to $1,049,161,822, a decrease from $1,056,351,043 as of March 31, 2024[9] - Total liabilities decreased slightly to $631,698,068 from $631,923,827, showing stable financial leverage[9] - Shareholders' equity decreased to $417,463,754 from $424,427,216, reflecting a reduction in retained earnings[9] - The company reported cash and cash equivalents of $9,745,763, down from $11,839,460, indicating a decrease in liquidity[9] - The company has 5,769,530 shares issued and outstanding as of September 30, 2024, down from 5,938,665 shares[9] - Total shareholders' equity as of September 30, 2024, was $417.46 million, a slight decrease from $410.02 million in the previous year[13] - The company's debt outstanding was $504.9 million, resulting in a debt-to-equity ratio of 1.2:1.0[187] Loan Performance - Gross loans receivable increased to $1,295,869,592 from $1,277,149,256, reflecting a growth in lending activities[9] - The net loans receivable stood at $842,706,592, a slight decrease from $847,440,309, indicating a potential slowdown in loan growth[9] - The current payment performance for loans shows that $1,175,890,064 is current, while $46,351,601 is 30-60 days past due, and $42,463,227 is 91 or more days past due[41] - The total gross loans receivable categorized by current payment performance as of September 30, 2024, includes $1,215,919,837 current loans and $39,542,498 that are 91 or more days past due[44] - The total amount of loans that are 30-60 days past due is $46,351,601, indicating a potential risk in repayment[41] - The company monitors payment performance daily to assess borrowers' repayment capabilities[38] Credit Losses - The allowance for credit losses rose to $114,455,495, up from $102,962,811, indicating a higher provision for potential loan defaults[9] - Provision for credit losses increased to $46.67 million in Q3 2024, up 15.4% from $40.46 million in Q3 2023[11] - Provision for credit losses increased to $92,087,528, up from $87,065,078, indicating a rise of 5.8%[19] - The Company's allowance for credit losses as a percentage of net loans was 12.0% at September 30, 2024 compared to 12.8% at September 30, 2023[144] - The company identified Customer Tenure as the strongest predictor of default risk in its credit loss calculations[55] Revenue and Income - Total revenues for Q3 2024 were $131.41 million, a decrease of 4.3% from $136.88 million in Q3 2023[11] - Net income for Q3 2024 was $22.13 million, representing a 37.5% increase compared to $16.08 million in Q3 2023[11] - Basic net income per share rose to $4.05 in Q3 2024, up from $2.78 in Q3 2023, marking a 45.9% increase[11] - Net income for the six months ended September 30, 2024, was $32,075,585, an increase of 25.8% compared to $25,621,167 for the same period in 2023[19] - Revenues for the three months ended September 30, 2024 decreased by $5.5 million, or 4.0%, to $131.4 million from $136.9 million for the same period of the prior year[139] Expenses - Total expenses decreased to $103.48 million in Q3 2024, down 10.8% from $115.95 million in Q3 2023[11] - General and administrative expenses were $46.36 million in Q3 2024, a decrease of 26.4% compared to $62.95 million in Q3 2023[11] - Personnel expense totaled $21.8 million for the three months ended September 30, 2024, a $16.7 million, or 43.4%, decrease over the same period in the prior year[146] - G&A expenses for the three months ended September 30, 2024 decreased by $16.6 million, or 26.4%, from the corresponding period of the previous year[145] Stock and Shareholder Information - The company has authorized a share repurchase program of up to $20.0 million, with $10.0 million remaining as of September 30, 2024[190] - The weighted average common shares outstanding for the three months ended September 30, 2024 was 5,469,276, down from 5,780,061 in the same period of 2023[77] - The company granted 2,598 stock options during fiscal 2024 at a weighted-average fair value of $69.00 per share[91] Debt and Financing - Senior notes payable increased to $265,629,893 from $223,419,132, suggesting increased borrowing[9] - The company repurchased and extinguished $33.7 million of its senior notes during the six months ended September 30, 2024, at a reacquisition price of $32.5 million[116] - The unused amount available under the revolving credit facility was $313.6 million as of September 30, 2024, with borrowings maturing on June 7, 2026[113] Future Outlook and Strategy - Future outlook suggests a projected revenue growth of 12% for fiscal 2025, driven by new product launches and market expansion[34] - The company plans to pursue strategic acquisitions to enhance its market position, targeting firms with complementary services[34] - The Company believes attractive opportunities for branch acquisitions will continue to arise as local economic conditions change[173] Tax and Compliance - The company's effective income tax rate decreased to 20.8% for the three months ended September 30, 2024, down from 23.1% in the prior year quarter[127] - The company had $1.1 million of total gross unrecognized tax benefits as of September 30, 2024, with approximately $0.4 million expected to be resolved in the next twelve months[124] - The company was in compliance with its debt covenants as of September 30, 2024, and does not believe these covenants will materially limit its business expansion strategy[120]

Company Performance - World Acceptance (WRLD) reported quarterly earnings of $3.99 per share, exceeding the Zacks Consensus Estimate of $1.99 per share, and up from $2.71 per share a year ago, representing an earnings surprise of 100.50% [1] - The company posted revenues of $131.41 million for the quarter ended September 2024, which missed the Zacks Consensus Estimate by 5.81% and decreased from $136.88 million year-over-year [1] - Over the last four quarters, World Acceptance has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [1] Stock Performance - World Acceptance shares have declined approximately 11.1% since the beginning of the year, contrasting with the S&P 500's gain of 21.8% [2] - The current Zacks Rank for World Acceptance is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.11 on revenues of $144.23 million, and for the current fiscal year, it is $13.34 on revenues of $580.36 million [4] - The estimate revisions trend for World Acceptance is mixed, and future changes in estimates will be closely monitored following the recent earnings report [4] Industry Context - The Financial - Consumer Loans industry, to which World Acceptance belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stock performance [5] - Another company in the same industry, OneMain Holdings (OMF), is expected to report quarterly earnings of $1.23 per share, reflecting a year-over-year decline of 21.7% [5]

Financial Performance - Net income for Q2 FY 2025 was $22.1 million, up from $16.1 million in the same quarter of the prior year, with diluted net income per share increasing to $3.99 from $2.71[6] - Net income for the six months ended September 30, 2024, increased by $6.5 million to $32.1 million compared to $25.6 million for the same period of the prior year, resulting in a net income of $5.77 per diluted share[22] - Total revenues decreased to $131.4 million, a 4.0% decline from $136.9 million in Q2 FY 2024, with interest and fee income declining by 2.6% to $113.9 million[7] - Total revenues for the first six months of fiscal 2025 decreased by 5.5% to $260.9 million, compared to $276.2 million during the corresponding period of the previous year due to a decrease in loans outstanding[22] - Total expenses for the second quarter of fiscal 2025 were $103.5 million, down from $115.9 million in the prior year, reflecting a decrease in general and administrative expenses[29] Loan and Credit Metrics - Gross loans outstanding were $1.30 billion as of September 30, 2024, a 6.1% decrease from $1.38 billion a year earlier, but increased sequentially by 1.7% from $1.28 billion as of June 30, 2024[2] - Gross loans receivable as of September 30, 2024, were $1,295.9 million, compared to $1,277.1 million as of March 31, 2024[30] - Gross loans receivable for the three months ended September 30, 2024, were $1,295,870, a decrease from $1,379,514 for the same period in 2023, representing a decline of approximately 6.1%[31] - Loan volume for the three months ended September 30, 2024, was $702,238, an increase from $668,215 in the same period last year, reflecting a growth of approximately 5.5%[31] - Average gross loans receivable decreased to $1,284,326 for the three months ended September 30, 2024, from $1,394,395 in the same period of 2023, a decline of approximately 7.9%[31] - Average net loans receivable for the three months ended September 30, 2024, was $949,302, down from $1,017,773 in the same period last year, representing a decrease of about 6.7%[31] Credit Losses and Delinquency - The provision for credit losses increased by $6.2 million to $46.7 million compared to $40.5 million in Q2 FY 2024[8] - Annualized net charge-offs as a percent of average net loans increased from 16.5% during the first six months of fiscal 2024 to 17.0% for the first six months of fiscal 2025[22] - Net charge-offs as a percentage of average net loans receivable on an annualized basis rose to 17.6% in Q2 2025 from 16.1% in Q2 2024[31] - The recency delinquency rate on accounts 90+ days past due improved to 3.4% at September 30, 2024, from 3.7% a year earlier[11] - Provision for credit losses as a percentage of total revenue increased to 35.5% in Q2 2025 from 29.6% in Q2 2024[31] Expenses and Cost Management - General and administrative expenses decreased by $16.6 million, or 26.4%, to $46.4 million, representing 35.3% of revenues compared to 46.0% in the prior year[16] - Personnel expenses decreased by $16.7 million, or 43.4%, with a headcount reduction of 6.7% compared to the previous year[17] - Interest expense decreased by $2.1 million, or 16.6%, due to a 14.5% decrease in average debt outstanding, which fell from $580.4 million to $496.0 million[20] Shareholder Returns and Equity - The Company repurchased 85,843 shares of its common stock for approximately $10.0 million during the second quarter of fiscal 2025, in addition to repurchases of 79,324 shares for approximately $11.1 million during the first quarter[21] - The Company had $10.0 million in aggregate remaining repurchase capacity under its current share repurchase program as of September 30, 2024[21] - The debt to equity ratio improved to 1.2:1 at September 30, 2024, down from 1.4:1 a year earlier[20] - The Company reported a return on average assets of 7.8% and a return on average equity of 20.1% on a trailing twelve-month basis[21] - Return on average assets for the trailing 12 months increased to 7.8% in Q2 2025, up from 5.0% in Q2 2024[31] - Return on average equity for the trailing 12 months improved to 20.1% in Q2 2025, compared to 15.2% in Q2 2024[31] Branch Operations - The company opened or acquired a net of (2) branches during the three months ended September 30, 2024, consistent with the (2) branches in the same period last year[31]

World Acceptance Corporation (NASDAQ:WRLD) Q1 2025 Earnings Conference Call July 26, 2024 10:00 AM ET Company Participants Chad Prashad - President and CEO Johnny Calmes - Chief Financial and Strategy Officer Conference Call Participants John Rowan - Janney Guy Riegel - Ingalls & Snyder Operator Good morning, and welcome to World Acceptance Corporation's First Quarter 2025 Earnings Conference Call. This call is being recorded. At this time, all participants have been placed in a listen-only mode. Before we ...

Core Viewpoint - World Acceptance (WRLD) reported quarterly earnings of $1.79 per share, exceeding the Zacks Consensus Estimate of $1.69 per share, and showing an increase from $1.62 per share a year ago [2]. Financial Performance - The company posted revenues of $129.53 million for the quarter ended June 2024, which was 8.14% below the Zacks Consensus Estimate, and a decrease from $139.32 million in the same quarter last year [3]. - Over the last four quarters, World Acceptance has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [1][3]. Stock Performance - World Acceptance shares have increased approximately 11.9% since the beginning of the year, compared to the S&P 500's gain of 13.2% [4]. - The current consensus EPS estimate for the upcoming quarter is $1.77 on revenues of $139 million, and for the current fiscal year, it is $13.69 on revenues of $580 million [6]. Industry Context - The Financial - Consumer Loans industry, to which World Acceptance belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [13]. - Another company in the same industry, OneMain Holdings (OMF), is expected to report revenues of $924.14 million, reflecting a 5.9% increase from the previous year [8]. Earnings Outlook - The estimate revisions trend for World Acceptance is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it is expected to perform in line with the market in the near future [12]. - The upcoming earnings report is anticipated to provide insights into the company's future earnings expectations and management's commentary will be crucial for stock price movements [10][11].

Exhibit 99.1 NEWS RELEASE For Immediate Release Contact:John L. Calmes, Jr. Executive VP, Chief Financial & Strategy Officer, and Treasurer (864) 298-9800 GREENVILLE, S.C. (July 26, 2024) - World Acceptance Corporation (NASDAQ: WRLD) today reported financial results for its first quarter of fiscal 2025. WORLD ACCEPTANCE CORPORATION REPORTS FISCAL 2025 FIRST QUARTER RESULTS First fiscal quarter highlights During its first fiscal quarter, World Acceptance Corporation continued to focus on credit quality and a ...

Branch Operations - As of March 31, 2024, the company had 1,048 branches across 16 states, having opened 3 new branches and merged 28 branches during fiscal 2024[17] - The company may merge branches on a case-by-case basis based on profitability and operational efficiency[17] - The company plans to continue expanding operations in existing markets and potentially enter new states based on demographic profiles and regulatory environments[17] - The company’s ability to expand is contingent upon obtaining necessary regulatory approvals and identifying suitable locations for new branches[19] - As of March 31, 2024, the company had 1,048 branches across 16 states, with over 100 branches located in Texas and Georgia[17] - In fiscal 2024, the company opened 3 new branches and merged 28 branches into existing ones due to insufficient returns or for efficiency reasons[17] Financial Performance - Interest and fee income from installment loans accounted for 81.7% of total revenues in fiscal 2024, with an average annual percentage rate of 47.5% for the loan portfolio[20] - The company prepared approximately 83,000 tax returns in fiscal 2024, generating net revenue of approximately $29.5 million from tax preparation services[27] - The captive insurance subsidiary reinsured approximately 12.6% of the credit insurance sold, contributing approximately $2.9 million to total revenue in fiscal 2024[24] - The Company reported a total of 670,160 loans with an average gross loan balance of $1,906, resulting in a total gross loan balance of $1,277,149,000 as of March 31, 2024[29] - Loan originations for fiscal 2024 included 67.3% refinancings of existing loans, compared to 71.4% in fiscal 2023 and 63.9% in fiscal 2022[33] - Approximately 18.8% of the Company's loans in fiscal 2024 were generated through new loans to previous customers, up from 16.9% in fiscal 2023[35] - The Company experienced significant seasonal fluctuations, with the highest loan demand typically occurring from October to December[30] - Advertising expenses as a percentage of revenue were approximately 1.7% in fiscal 2024, compared to 1.0% in fiscal 2023 and 3.1% in fiscal 2022[40] Loan Portfolio - The company offers small loans with amounts ranging from $250 to $2,450 and large loans from $2,500 to $32,400, with terms generally from 6 to 14 months[21] - As of March 31, 2024, 46.5% of gross loans receivable had annual percentage rates of 0 to 36%, while 53.5% had rates greater than 36%[21] - The Company operates in states where it can garnish wages for loan repayment, but generally does not resort to litigation for collections[36] - The Company has a proprietary credit score system to evaluate potential customers, focusing on attributes like payment history and outstanding debt[31] - The total number of loans and average gross loan balance varied by state, with Texas having the highest number of loans at 162,542 and an average balance of $1,586[29] Regulatory Environment - The company is subject to extensive regulation, which includes state laws that impose constraints on lending activities and require annual license renewals for branches[54][57] - Regulatory changes, including potential federal legislation, could significantly impact the company's ability to operate profitably, particularly if a national interest rate cap is imposed[66] - The company actively participates in trade associations and lobbying efforts to address changes in consumer credit regulations that could affect its operations[61] - The company faces challenges related to compliance with both state and federal regulations, which could lead to penalties or operational restrictions if not adhered to[62][64] Employee Relations and Diversity - As of March 31, 2024, the company employed 2,872 full and part-time employees, with approximately 2,600 branch-based team members across 16 states[48] - The gender demographics of the team members show 85.38% female and 14.59% male, while the racial demographics include 55.27% White, 20.71% Hispanic or Latino, and 16.08% Black or African American[50] - The company offers a comprehensive suite of benefits, including healthcare, a 401(k) plan with employer matching, and various paid time off programs[51] - The company maintains strong employee relations, with a focus on promoting from within for field leadership positions[47] - The company has a commitment to workplace diversity and inclusion, recognizing the value of different perspectives[49] - The company has a diverse executive team with extensive experience in various financial and operational roles, enhancing its strategic capabilities[52][53] - The company is focused on training and development to increase internal talent pools, which is key to its future success[50] Technology and Operations - The Company has invested in technology for workforce management to enhance operational agility and meet changing business needs[47] - The company maintains an online platform for stakeholders to access financial reports and other relevant information[67]

World Acceptance Corporation (NASDAQ:WRLD) Q4 2024 Earnings Conference Call May 2, 2024 10:00 AM ET Company Participants Chad Prashad - President and CEO Johnny Calmes - Chief Financial and Strategy Officer Conference Call Participants John Rowan - Janney Operator Good morning, and welcome to the World Acceptance Corporation Fourth Quarter 2024 Earnings Conference Call. This call is being recorded. At this time, all participants have been placed in a listen-only mode. Before we begin, the corporation has re ...

[Fourth Quarter Highlights](index=1&type=section&id=Fourth%20Quarter%20Highlights) The company's fourth quarter saw a focus on credit quality, a slowdown in customer base decline, and improved net income and diluted EPS despite slightly lower revenues [Operational Overview](index=1&type=section&id=Operational%20Overview) World Acceptance Corporation maintained a focus on credit quality and conservative lending, with gross loans outstanding decreasing but the customer base decline slowing significantly - Gross loans outstanding were **$1.28 billion** as of March 31, 2024, an **8.1% decrease** from **$1.39 billion** as of March 31, 2023, with a sequential decrease of **8.8% ($123.5 million)** from December 31, 2023[3](index=3&type=chunk) - The customer base decreased by **1.5%** during the twelve-month period ended March 31, 2024, a significant improvement compared to a **15.9% decrease** in the comparable prior-year period[4](index=4&type=chunk) Volume of Gross Loan Origination Balances (excluding tax advance loans) by Customer Type | Customer Type | Q4 FY 2024 (USD) | Q4 FY 2023 (USD) | | :--- | :--- | :--- | | New Customers | $26,511,522 | $25,669,834 | | Former Customers | $58,583,919 | $62,965,426 | | Refinance Customers | $432,270,234 | $449,571,142 | - The Company operated **1,048 open branches** as of March 31, 2024, with same-store gross loans decreasing **6.7%** for branches open at least twelve months[5](index=5&type=chunk) [Key Financial Metrics (Q4 FY2024)](index=1&type=section&id=Key%20Financial%20Metrics%20(Q4%20FY2024)) The fourth fiscal quarter saw a notable increase in net income and diluted EPS, despite a slight decline in total revenues, with improved credit quality evidenced by reduced delinquency rates - Net income for the fourth fiscal quarter was **$35.1 million**[6](index=6&type=chunk) - Diluted net income per share was **$6.09**[6](index=6&type=chunk) - Recency delinquency on accounts 90+ days past due improved to **3.1%** at March 31, 2024, from **3.5%** at March 31, 2023[6](index=6&type=chunk) - Total revenues were **$159.3 million**, including a **34 basis point yield increase** compared to the same quarter in the prior year[6](index=6&type=chunk) [Detailed Fourth Quarter Financial Results (Three Months Ended March 31, 2024)](index=3&type=section&id=Detailed%20Fourth%20Quarter%20Financial%20Results%20(Three%20Months%20Ended%20March%2031,%202024)) This section provides an in-depth analysis of the company's Q4 FY2024 financial performance, covering income, credit quality, loan portfolio, operating expenses, and capital management [Income and Revenue Analysis](index=3&type=section&id=Income%20and%20Revenue%20Analysis) Net income and diluted EPS significantly increased in Q4 FY2024 compared to the prior year, despite a slight decrease in total revenues, driven by a decline in interest and insurance income partially offset by strong growth in other income Q4 Financial Performance (Three Months Ended March 31) | Metric | Q4 FY 2024 (USD) | Q4 FY 2023 (USD) | Change | | :--- | :--- | :--- | :--- | | Net income | $35.1 million | $24.6 million | +42.7% | | Diluted net income per share | $6.09 | $4.20 | +45.0% | | Total revenues | $159.3 million | $160.8 million | -1.0% | Revenue Breakdown (Q4 FY2024 vs. Q4 FY2023) | Revenue Type | Q4 FY 2024 (USD) | Q4 FY 2023 (USD) | Change | | :--- | :--- | :--- | :--- | | Interest and fee income | $116.3 million | $121.5 million | -4.3% | | Insurance income | $13.2 million | $16.0 million | -17.8% | | Other income | $29.8 million | $23.3 million | +27.7% | - Revenues from the tax return preparation business increased by **$6.2 million**, or **30.5%**, due to a **13.6% increase** in the number of tax returns prepared and an increase in the average preparation fee per return[9](index=9&type=chunk) [Credit Quality and Provision for Credit Losses](index=3&type=section&id=Credit%20Quality%20and%20Provision%20for%20Credit%20Losses) The company experienced significant improvements in credit quality during Q4 FY2024, with a substantial decrease in the provision for credit losses and net charge-offs, alongside lower delinquency rates - The provision for credit losses decreased **$16.1 million** to **$29.3 million** in Q4 FY2024 from **$45.4 million** in Q4 FY2023[10](index=10&type=chunk) - Net charge-offs for the quarter decreased **$17.0 million**, from **$64.4 million** in Q4 FY2023 to **$47.4 million** in Q4 FY2024[12](index=12&type=chunk) - Net charge-offs as a percentage of average net loan receivables on an annualized basis decreased to **18.8%** in Q4 FY2024 from **23.9%** in Q4 FY2023[12](index=12&type=chunk) - Accounts 61 days or more past due decreased to **5.0%** on a recency basis at March 31, 2024, compared to **5.5%** at March 31, 2023, while allowance for credit losses as a percent of net loans receivable was **10.8%** at March 31, 2024, compared to **12.4%** at March 31, 2023[13](index=13&type=chunk) [Loan Portfolio Composition and Management](index=4&type=section&id=Loan%20Portfolio%20Composition%20and%20Management) The company has strategically tightened lending to new customers over the past two years, resulting in a shift in the loan portfolio mix towards customers with more than two years of tenure Gross Loan Balance By Customer Tenure at Origination (As of March 31) | As of | Less Than 2 Years (USD) | More Than 2 Years (USD) | Total (USD) | | :--- | :--- | :--- | :--- | | 03/31/2024 | $270,069,839 | $1,007,164,462 | $1,277,234,301 | | 03/31/2023 | $348,513,335 | $1,041,619,563 | $1,390,132,898 | Portfolio Mix by Customer Tenure at Origination (As of March 31) | As of | Less Than 2 Years (%) | More Than 2 Years (%) | | :--- | :--- | :--- | | 03/31/2024 | 21.1% | 78.9% | | 03/31/2023 | 25.1% | 74.9% | Year-Over-Year Growth (Decline) in Gross Loan Balance by Customer Tenure at Origination (12 Month Period Ended March 31, 2024) | 12 Month Period Ended | Less Than 2 Years (USD) | More Than 2 Years (USD) | Total (USD) | | :--- | :--- | :--- | :--- | | 03/31/2024 | $(78,443,496) | $(34,455,101) | $(112,898,597) | [Operating Expenses Analysis](index=4&type=section&id=Operating%20Expenses%20Analysis) General and administrative (G&A) expenses decreased in Q4 FY2024, primarily due to lower personnel and advertising costs, leading to a slight improvement in G&A expenses as a percentage of revenues - General and administrative (G&A) expenses decreased **$1.6 million**, or **2.1%**, to **$71.6 million** in Q4 FY2024 compared to **$73.2 million** in the same quarter of the prior fiscal year[16](index=16&type=chunk) - As a percentage of revenues, G&A expenses decreased from **45.5%** during Q4 FY2023 to **45.0%** during Q4 FY2024[16](index=16&type=chunk) - Personnel expense decreased **$2.2 million**, or **4.7%**, during Q4 FY2024, with headcount decreasing **6.6%** compared to March 31, 2023[17](index=17&type=chunk) - Advertising expense decreased **$0.3 million**, or **21.5%**, in Q4 FY2024 due to decreased spending on customer acquisition programs[18](index=18&type=chunk) [Debt and Capital Management](index=4&type=section&id=Debt%20and%20Capital%20Management) Interest expense decreased in Q4 FY2024, driven by a significant reduction in average debt outstanding, which also contributed to an improved debt-to-equity ratio - Interest expense for Q4 FY2024 decreased by **$0.4 million**, or **3.5%**, from the corresponding quarter of the previous year[19](index=19&type=chunk) - Average debt outstanding decreased **17.2%** from **$674.5 million** to **$558.3 million** when comparing Q4 FY2024 and Q4 FY2023, despite a **5.7% increase** in the effective interest rate[20](index=20&type=chunk) - The Company's debt to equity ratio decreased to **1.2:1** at March 31, 2024, compared to **1.6:1** at March 31, 2023[20](index=20&type=chunk) - The Company repurchased and canceled **$7.6 million** of its previously issued bonds for a purchase price of **$7.1 million** during the quarter[20](index=20&type=chunk) [Shareholder Returns and Performance Ratios](index=6&type=section&id=Shareholder%20Returns%20and%20Performance%20Ratios) The company demonstrated strong financial performance with improved return on average assets and equity on a trailing twelve-month basis, alongside continued share repurchase activities - Key return ratios for Q4 FY2024 included a **7.0% return on average assets** and a **19.1% return on average equity** (both on a trailing twelve-month basis)[21](index=21&type=chunk) - The Company repurchased **146,436 shares** of its common stock for approximately **$19.0 million** during Q4 FY2024[22](index=22&type=chunk) - For the full fiscal year 2024, a total of **295,201 shares** were repurchased for approximately **$36.2 million**[22](index=22&type=chunk) [Full Fiscal Year 2024 Results (Twelve Months Ended March 31, 2024)](index=6&type=section&id=Full%20Fiscal%20Year%202024%20Results%20(Twelve%20Months%20Ended%20March%2031,%202024)) For the full fiscal year 2024, World Acceptance Corporation reported a substantial increase in net income and diluted EPS, despite a decrease in total revenues, and achieved a significant improvement in annualized net charge-offs Full Fiscal Year Performance (Twelve Months Ended March 31) | Metric | FY 2024 (USD) | FY 2023 (USD) | Change | | :--- | :--- | :--- | :--- | | Net income | $77.3 million | $21.2 million | +264.6% | | Diluted net income per share | $13.19 | $3.60 | +266.4% | | Total revenues | $573.2 million | $616.5 million | -7.0% | - Annualized net charge-offs as a percent of average net loans decreased from **23.7%** during fiscal 2023 to **17.7%** for fiscal 2024[23](index=23&type=chunk) [Company Information](index=6&type=section&id=Company%20Information) This section provides an overview of World Acceptance Corporation's business model and details regarding its upcoming financial results conference call [About World Acceptance Corporation](index=6&type=section&id=About%20World%20Acceptance%20Corporation) World Acceptance Corporation, operating as World Finance, is a people-focused finance company established in 1962, providing personal installment loans and tax preparation services through over 1,000 branches - Founded in 1962, World Acceptance Corporation (NASDAQ: WRLD) provides personal installment loan solutions and personal tax preparation and filing services[24](index=24&type=chunk) - The Company operates more than **1,000 community-based World Finance branches** across **16 states**, headquartered in Greenville, South Carolina[24](index=24&type=chunk) - It primarily serves a segment of the population that does not have ready access to credit, focusing on understanding customers' financial pictures and ensuring their ability to make payments[24](index=24&type=chunk) [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) World Acceptance Corporation's senior management will host a conference call to discuss the financial results, with a live simulcast and replay available online - A quarterly conference call will be held at **10:00 a.m. Eastern Time on May 2, 2024**[25](index=25&type=chunk) - A simulcast of the conference call will be available on the Internet at https://event.choruscall.com/mediaframe/webcast.html?webcastid=jzCjKJe2 and will be available for replay for approximately **30 days**[25](index=25&type=chunk) [Legal Disclosures](index=7&type=section&id=Legal%20Disclosures) This section outlines important legal disclaimers regarding forward-looking statements, emphasizing inherent risks and the company's non-obligation to update such information [Cautionary Note Regarding Forward-Looking Information](index=7&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Information) This section advises that the press release contains forward-looking statements subject to inherent risks and uncertainties, which could cause actual results to differ materially from those projected - The press release may contain 'forward-looking statements' subject to risks and uncertainties, including legislative changes, regulatory authority, litigation, employee misconduct, management turnover, economic factors, interest rates, inflation, cybersecurity threats, and dependence on debt[28](index=28&type=chunk) - The Company's actual results and financial condition may differ materially from those indicated in the forward-looking statements, and readers should not rely on them[28](index=28&type=chunk) - World Acceptance Corporation does not undertake any obligation to update any forward-looking statements[29](index=29&type=chunk) [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) This section provides the unaudited consolidated financial statements, including statements of operations, balance sheets, and selected key statistics for the reported periods [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) This section presents the unaudited consolidated statements of operations for the three and twelve months ended March 31, 2024, and 2023, detailing revenues, expenses, and net income Consolidated Statements of Operations (unaudited, in thousands, except per share amounts) | Metric | Three months ended March 31, 2024 (USD) | Three months ended March 31, 2023 (USD) | Twelve months ended March 31, 2024 (USD) | Twelve months ended March 31, 2023 (USD) | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $159,265 | $160,837 | $573,214 | $616,546 | | Provision for credit losses | $29,276 | $45,412 | $156,973 | $259,463 | | Total general and administrative expenses | $71,619 | $73,178 | $268,600 | $279,475 | | Interest expense | $11,757 | $12,185 | $48,232 | $50,463 | | Total expenses | $112,652 | $130,775 | $473,805 | $589,401 | | Income before income taxes | $46,613 | $30,062 | $99,409 | $27,145 | | Net income | $35,058 | $24,632 | $77,346 | $21,231 | | Net income per common share, diluted | $6.09 | $4.20 | $13.19 | $3.60 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) This section provides the unaudited consolidated balance sheets as of March 31, 2024, 2023, and 2022, detailing the company's assets, liabilities, and shareholders' equity Consolidated Balance Sheets (unaudited, in thousands) | Metric | March 31, 2024 (USD) | March 31, 2023 (USD) | March 31, 2022 (USD) | | :--- | :--- | :--- | :--- | | Total assets | $1,056,351 | $1,117,319 | $1,218,296 | | Gross loans receivable | $1,277,149 | $1,390,016 | $1,522,789 | | Allowance for credit losses | $(102,963) | $(125,553) | $(134,243) | | Loans receivable, net | $847,440 | $887,788 | $985,515 | | Total liabilities | $631,924 | $732,092 | $845,272 | | Senior notes payable | $223,419 | $307,911 | $396,973 | | Senior unsecured notes payable, net | $272,610 | $287,353 | $295,394 | | Shareholders' equity | $424,427 | $385,227 | $373,024 | [Selected Consolidated Statistics](index=10&type=section&id=Selected%20Consolidated%20Statistics) This section provides selected unaudited consolidated statistics for the three and twelve months ended March 31, 2024, and 2023, including loan metrics, expense ratios, and key performance indicators Selected Consolidated Statistics (unaudited, in thousands, except percentages and branches) | Metric | Q4 FY24 (USD) | Q4 FY23 (USD) | FY24 (USD) | FY23 (USD) | | :--- | :--- | :--- | :--- | :--- | | Gross loans receivable | $1,277,149 | $1,390,016 | $1,277,149 | $1,390,016 | | Average gross loans receivable | $1,357,845 | $1,481,111 | $1,378,329 | $1,555,655 | | Net charge-offs as percent of average net loans receivable on an annualized basis | 18.8% | 23.9% | 17.7% | 23.7% | | Return on average assets (trailing 12 months) | 7.0% | 1.7% | 7.0% | 1.7% | | Return on average equity (trailing 12 months) | 19.1% | 5.8% | 19.1% | 5.8% | | Branches open (at period end) | 1,048 | 1,073 | 1,048 | 1,073 | | Provision for credit losses as % of total revenue | 18.4% | 28.2% | 27.4% | 42.1% | | General and administrative as % of total revenue | 45.0% | 45.5% | 46.9% | 45.3% | | Operating income as a % of total revenue | 36.7% | 26.3% | 25.8% | 12.6% |