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]

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]

Financial Data and Key Metrics Changes - In Q1 2025, the company experienced moderate growth in its customer base of around 50 basis points, but the average loan balance declined slightly, with a year-over-year decrease of almost 7% from June 30, 2023 [3][46] - The average loan balance has decreased over 11% from the peak average loan size at the end of fiscal year 2023 [3] - Gross yields improved across all customer types, and the company reported a 9.9% reduction in G&A expenses compared to the first quarter last year [46][48] Business Line Data and Key Metrics Changes - For returning former customers, the average balance of originations decreased by 13%, while the average yield significantly increased, leading to the lowest first pay default rates among non-refinance originations [46][47] - New customer loan volume was down about 8% in dollars year-over-year, but the decline in the number of new customers was only 3.5% [17] - Refinanced loan volume in dollars decreased by 5% year-over-year, while the number of refinances increased by 6% [18] Market Data and Key Metrics Changes - The company noted an increase in the number of former customers, reaching the highest number in July in at least 10 years, with lower average balances and higher yields [66] - The expected loss rates have decreased compared to the previous year, contributing to improved credit quality [41][73] Company Strategy and Development Direction - The company is focused on achieving modest, single-digit growth with high credit quality through specific strategies for each customer type [46] - Management emphasized a low total cost of acquisition for performing customers and plans to continue investing wisely [5][12] - The company is also in the process of creating a warehouse facility as a first step in the securitization process, expected to roll out in the fiscal third quarter [63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the long-term incentive plan targets of $16.35 and $20.45 earnings per share, contingent on growth, yields, and delinquency rates [19][10] - The company expects yields and delinquency trends to convert into revenue and income trends, with a focus on improving portfolio performance [37][46] Other Important Information - The company is cooperating with federal supervision as part of a new regulatory framework, which is a learning process for both the company and the supervising body [14][61] - The company has adjusted its acquisition channels to increase approval rates while minimizing losses [17] Q&A Session Summary Question: Clarification on earnings accrual for the year - Management confirmed they are still accruing for $20.45 of earnings for the year, with growth, yields, and delinquency being key factors [10] Question: Expected loss rates and their impact - Management acknowledged that expected loss rates increased faster this year compared to last year, but they remain lower than the previous year [41] Question: Regulatory environment impact - Management indicated that there have been no significant changes in the regulatory environment that have impacted business operations [81] Question: Status of securitization of loans - Management confirmed they are in the process of creating a warehouse facility as the first step in the securitization process [63]

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].

Financial Performance - Net income for the first quarter of fiscal 2025 was $9.9 million, an increase from $9.5 million in the same quarter of the prior year[8]. - Total revenues decreased to $129.5 million, a 7.0% decline from $139.3 million in the same quarter of the prior year[9]. - Total revenues for Q1 of fiscal 2025 were $129.5 million, a decrease from $139.3 million in Q1 of fiscal 2024, representing a decline of approximately 7.9%[33]. - Net income for Q1 of fiscal 2025 was $9.9 million, compared to $9.5 million in Q1 of fiscal 2024, reflecting an increase of approximately 4.3%[33]. Loan and Credit Metrics - Gross loans outstanding were $1.275 billion, an 8.8% decrease from $1.398 billion as of June 30, 2023[4]. - Gross loans receivable as of June 30, 2024, were $1.27 billion, a slight decrease from $1.28 billion as of March 31, 2024[35]. - Net loans receivable fell to $944,485 from $1,017,999, representing a decrease of about 7.2% compared to the previous year[37]. - Loan volume decreased to $682,197 from $721,234, a decline of approximately 5.4% year-over-year[37]. - Average net loans receivable decreased to $942,603 from $1,013,007, a decline of about 7% year-over-year[37]. Credit Losses and Expenses - The provision for credit losses decreased by $1.2 million to $45.4 million from $46.6 million in the first quarter of fiscal 2024[10]. - Net charge-offs decreased by $4.1 million to $38.7 million, with net charge-offs as a percentage of average net loan receivables decreasing to 16.4%[12]. - Provision for credit losses as a percentage of total revenue increased to 35.1% from 33.4%[37]. - Interest expense decreased by $2.5 million, or 20.2%, due to a 17.5% decrease in average debt outstanding[19]. - Interest expense decreased to 7.5% from 8.8%, indicating improved cost management[37]. - General and administrative expenses decreased by $6.7 million, or 9.9%, to $61.4 million compared to $68.1 million in the same quarter of the prior year[16]. - Advertising expenses decreased by $1.1 million, or 39.8%, in Q1 of fiscal 2025 compared to Q1 of fiscal 2024 due to reduced spending on customer acquisition programs[25]. Customer and Branch Metrics - The customer base decreased by 2.6% during the twelve-month period ended June 30, 2024, compared to a decrease of 14.8% for the comparable period ended June 30, 2023[5]. - The company opened or acquired a net of 1 branch, compared to a net closure of 18 branches in the previous year[37]. - The company operates more than 1,000 branches across 16 states, serving over one million customers annually[21]. Financial Ratios - The debt to equity ratio decreased to 1.2:1 at June 30, 2024, compared to 1.5:1 at June 30, 2023[19]. - The company reported a return on average assets of 7.1% and a return on average equity of 18.9% for the trailing twelve months[27]. - Return on average assets improved to 7.1% from 3.3% over the trailing 12 months[37]. - Return on average equity increased to 18.9% from 10.7% over the trailing 12 months[37]. Future Outlook - The company anticipates potential impacts from regulatory changes and economic conditions on future performance[23].

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]

Financial Data and Key Metrics Changes - The company experienced an 8.1% decrease in portfolio size during the fiscal year, while the customer base saw a minor decline of 1.5% [7] - Delinquency rates improved significantly, with the 60-day or longer delinquency rate decreasing from 5.5% to 5%, and the 90-plus delinquency rate improving from 3.5% to 3.1% [9] - The annualized net charge-off rate improved by more than 500 basis points, representing over a 20% relative improvement compared to the previous fiscal year [10] Business Line Data and Key Metrics Changes - New loan volumes increased by 7% in the fourth quarter compared to the same period last year, with former customer loan volume rising by 14% [11] - Approval rates for new customers remained relatively flat compared to the same quarter last year, but performance through first payment defaults showed significant improvement [12] Market Data and Key Metrics Changes - The company noted that the economic environment has shown signs of stability, which is expected to positively impact the customer base [14] Company Strategy and Development Direction - The company is focused on returning to modest growth while continuing to reduce delinquency and net charge-offs [15] - Management emphasized the importance of maintaining credit quality and improving overall portfolio performance [12][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of inflation and financial insecurity on customers, which led to tightened underwriting practices [5][6] - There is an expectation of continued economic stability, which is crucial for achieving the earnings per share targets set for the long-term incentive plan [14] Other Important Information - The company maintains a conservative debt-to-equity ratio of 1.2 to 1, reflecting prudent debt management [10] Q&A Session Summary Question: Did you give some type of guidance for the upcoming quarter and the year? - Management reiterated the earnings goals of $16.35 and $20.45 per share, emphasizing the need for modest growth and continued focus on reducing delinquency and net charge-off rates [18] Question: Is the lower charge-off provision a function of portfolio liquidation and CECL, or were there changes to macro assumptions for lifetime loss? - The Chief Financial Officer confirmed that the decrease in the portfolio and improvements in underlying loss rates contributed to the lower provision during the quarter [19] Question: Any unusual items in G&A? - The Chief Financial Officer stated that there were no unusual items in general and administrative expenses for the quarter [20]