World Acceptance (WRLD)

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World Acceptance (WRLD) - 2024 Q3 - Earnings Call Transcript
2024-01-19 18:46
Financial Data and Key Metrics Changes - New customer loan volume increased approximately 22% sequentially from the prior quarter and about 56% compared to last year's third quarter [4] - First pay defaults remain at or below historical norms, indicating improved credit quality performance [5] - Overall new customer application volume has returned to within 1% of pre-COVID levels, with a 30% increase compared to last year's third quarter [6] Business Line Data and Key Metrics Changes - Approval and booking rates have significantly improved from lows in August, with a 22% increase in booked new customer lines sequentially [5] - Return of former customers increased around 6% sequentially and 17% compared to last year's third quarter [6] - Yields for new customers and the overall portfolio continue to improve due to better gross yields and reduced delinquency [7] Market Data and Key Metrics Changes - The company has seen a seasonal adjustment in expected loss rates, with December being the lowest risk quarter historically [10] - The impact of tax refund season on customer behavior remains uncertain, as it is still early in the tax filing process [15] Company Strategy and Development Direction - The company has been tightening credit since April 2021, focusing on improving underwriting and marketing strategies without sacrificing credit quality for growth [20] - Management is cautious about macroeconomic conditions and is not considering loosening credit standards for growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the improved credit quality and operating conditions, with expectations of economic stability increasing [7] - The company aims to transition from a conservative growth approach to a more aggressive growth strategy while maintaining prudent credit standards [20] Other Important Information - The company continues to accrue for long-term incentive plans with earnings per share targets of $16.35 and $20.45 by the end of fiscal year 2025 [12] Q&A Session Summary Question: What change in assumptions drove the $10 million provision release? - The reduction is primarily due to seasonal factors, as December is historically the lowest risk quarter [10] Question: How does lifetime loss accounting factor into seasonal trends? - Seasonal factors still influence expected losses at a point in time, affecting reserve levels [11] Question: What are the expectations for tax refund season this year? - It is too early to determine the impact of tax refunds on the customer base [15] Question: What does the future look like for loan metrics in fiscal 2025? - The company expects continued improvement in credit quality and portfolio yields, treating current metrics as the norm going forward [18] Question: What macro trends are being monitored before significant portfolio growth? - The company remains conservative and is focused on maintaining credit quality while cautiously considering growth opportunities [20]
World Acceptance (WRLD) - 2024 Q2 - Quarterly Report
2023-11-03 20:07
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________ Form 10-Q __________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the transition period from ______________ to ______________ Commission File Number: 000-19599 WORLD ACCEPTANCE ...
World Acceptance (WRLD) - 2024 Q2 - Earnings Call Transcript
2023-10-20 16:04
World Acceptance Corporation (NASDAQ:WRLD) Q2 2024 Earnings Conference Call October 20, 2023 10:00 AM ET Company Participants Chad Prashad - President and Chief Executive Officer John Calmes - Executive Vice President, Chief Financial and Strategy Officer Conference Call Participants Vincent Caintic - Stephens Inc. John Rowan - Janney Montgomery Scott LLC Operator Good morning, and welcome to World Acceptance Corporation's Second Quarter 2024 Earnings Conference Call. This call is being recorded. At this ti ...
World Acceptance (WRLD) - 2024 Q1 - Quarterly Report
2023-08-03 20:16
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________ Form 10-Q __________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the transition period from ______________ to ______________ Commission File Number: 000-19599 WORLD ACCEPTANCE CORPO ...
World Acceptance (WRLD) - 2024 Q1 - Earnings Call Transcript
2023-07-21 16:24
World Acceptance Corporation (NASDAQ:WRLD) Q1 2024 Results Conference Call July 21, 2023 10:00 AM ET Company Participants Chad Prashad - President & Chief Executive Officer Johnny Calmes - Chief Financial & Strategy Officer Conference Call Participants John Rowan - Janney Vincent Caintic - Stephens Operator Good morning, and welcome to the World Acceptance Corporation's First Quarter 2024 Earnings Conference Call. This call is being recorded. At this time, all participants have been placed on listen-only mo ...
World Acceptance (WRLD) - 2023 Q4 - Annual Report
2023-06-01 20:36
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________ Form 10-K __________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _____________ Commission file number: 000-19599 WORLD ACCEPTANCE CORPORATION (Exact nam ...
World Acceptance (WRLD) - 2023 Q4 - Earnings Call Transcript
2023-05-05 21:29
World Acceptance Corporation (NASDAQ:WRLD) Q4 2023 Earnings Conference Call May 4, 2023 10:00 AM ET Company Participants Chad Prashad - President & Chief Executive Officer Johnny Calmes - Chief Financial & Strategy Officer Conference Call Participants Vincent Caintic - Stephens John Rowan - Janney Operator Good morning, and welcome to World Acceptance Corporation's Fourth Quarter 2023 Earnings Conference Call. This call is being recorded. And at this time, all participants have been placed on listen-only mo ...
World Acceptance (WRLD) - 2023 Q3 - Quarterly Report
2023-02-03 21:10
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________ Form 10-Q __________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the transition period from ______________ to ______________ Commission File Number: 000-19599 WORLD ACCEPTANCE C ...
World Acceptance (WRLD) - 2023 Q3 - Earnings Call Transcript
2023-01-27 20:18
Financial Data and Key Metrics Changes - The company reported a positive trend in delinquency rates, with early-stage delinquency declining month over month, although later-stage delinquency is expected to result in elevated charge-offs in the next quarter [7] - The book-to-look ratio increased slightly to around 25%, up from a low of 20% in the previous quarter, compared to approximately 35% in the same quarter of fiscal years 2021 and 2022 [8] - New customer originations in the third quarter showed a 30%-plus reduction in first-pay default rates compared to the same quarter of fiscal year 2022, indicating strong credit performance [9] Business Line Data and Key Metrics Changes - New customer originations accounted for 55% of comparable December volumes in fiscal years 2019 and 2020, up from 31% in the third quarter of 2022 [12] - Gross yields for new customer originations in the third quarter were over 25% higher year-over-year, while first-pay default rates showed a significant reduction [10] Market Data and Key Metrics Changes - The company has successfully reduced exposure to high-risk customers, leading to improved credit performance during fiscal year 2023 [7] - The risk in the portfolio is expected to be lower as there has been less investment in new customers, contributing to a decrease in the allowance ratio from 13.5% to 12.9% [18] Company Strategy and Development Direction - The company plans to increase investments in marketing and new customer acquisition during the fourth quarter and into the next fiscal year, leveraging improved credit performance [12] - The management expressed confidence in the ability to grow while maintaining low delinquency and high gross yields, indicating a strategic focus on quality over quantity in customer acquisition [11][32] Management's Comments on Operating Environment and Future Outlook - Management noted that while elevated charge-offs are expected in Q4 relative to historical levels, they anticipate a positive trend in delinquency and charge-offs moving forward [28] - The company is optimistic about generating significant cash flow in the upcoming operating environment, particularly in fiscal 2024 [36] Other Important Information - The company amended its credit facility during the quarter and has ample room on all covenants, with no waivers as of the quarter end [24] Q&A Session Summary Question: Is the $7 million incentive change a reversal? - Yes, it is in personnel expense, with part being a reversal related to officers who left the company and a shift from bonus to base pay [14] Question: What is the expected run rate for personnel expenses going forward? - The reversal will not be present next quarter, and the expected personnel expense is around $45 million [16] Question: Why did the allowance ratio decrease? - The decrease is attributed to seasonal factors and a shift in lower tenured customers, which carry a higher expected loss rate [18] Question: What is the outlook for loan portfolio growth next quarter? - The company expects typical runoff during tax season and does not anticipate significant growth in new customer investments in Q4 [22] Question: What is the status of covenants and refinancing plans? - The company has ample room on all covenants and plans to extend the credit facility in the coming summer [24] Question: How will improvements in first-pay defaults impact delinquencies and losses? - The company expects charge-offs to decrease in the coming months, with positive trends indicating a better delinquency picture by March [26][28] Question: What is the strategy for acquiring new customers going forward? - The company plans to increase marketing investments while ensuring that new customer applications are likely to be approved, focusing on quality [32]
World Acceptance (WRLD) - 2023 Q2 - Quarterly Report
2022-11-04 20:31
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________ Form 10-Q __________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the transition period from ______________ to ______________ Commission File Number: 000-19599 WORLD ACCEPTANCE ...