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World Acceptance (WRLD) - 2022 Q1 - Earnings Call Transcript
2021-07-21 16:27
World Acceptance Corporation (NASDAQ:WRLD) Q2 2022 Earnings Conference Call July 21, 2021 10:00 AM ET Company Participants Chad Prashad - President & Chief Executive Officer Johnny Calmes - Chief Financial & Strategy Officer Conference Call Participants Kyle Joseph - Jefferies John Rowan - Janney Operator Good morning, and welcome to the World Acceptance Corporation Sponsored First Quarter Press Release Conference Call. This call is being recorded. At this all participants have been placed on listen-only mo ...
World Acceptance (WRLD) - 2021 Q4 - Annual Report
2021-06-02 21:22
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, 2021 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) - 2021 Q4 - Earnings Call Transcript
2021-05-09 13:46
World Acceptance Corp (NASDAQ:WRLD) Q4 2021 Earnings Conference Call May 6, 2021 10:00 AM ET Company Participants Chad Prashad - President, CEO & Director John Calmes - EVP, CFO, Chief Strategy Officer & Treasurer Conference Call Participants Kyle Joseph - Jefferies & Company John Rowan - Janney Montgomery Operator Good morning, and welcome to the World Acceptance Corporation Sponsored Fourth Quarter Press Release Conference Call. [Operator Instructions] This call is being recorded. At this all participants ...
World Acceptance (WRLD) - 2021 Q3 - Quarterly Report
2021-02-05 21:46
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, 2020 South Carolina 57-0425114 For the transition period from ______________ to ______________ Commission File Number: 000-19599 WORLD ACCEPTANCE CORPORATION (Exact name of registrant as specified in its charter.) O ...
World Acceptance (WRLD) - 2021 Q3 - Earnings Call Transcript
2021-01-22 19:03
Financial Data and Key Metrics Changes - The third quarter of 2020 was the busiest in the company's history, indicating a significant operational achievement despite challenges faced during the year [5] - The company built up a quantitative reserve tied to higher unemployment rates but adjusted this reserve due to additional federal unemployment and stimulus, indicating a cautious approach to future losses [8] Business Line Data and Key Metrics Changes - Demand for loans saw a significant rebound in the third quarter, with the highest demand for former customers recorded in the company's history, although new customer demand was still down approximately 20% to 25% year-over-year [9][11] - The company pivoted to serve only customers eligible for loans below 36% in Illinois, impacting about 70% of its previous customer base in that state [10] Market Data and Key Metrics Changes - The company reported a net loan amount of around $60 million in Illinois at the end of December, down from $91 million in March, reflecting the impact of new legislation [16] - The new Illinois legislation is expected to limit the company's ability to extend credit to a significant portion of the population, affecting approximately 2.5 million to 2.7 million people [24] Company Strategy and Development Direction - The company is focusing on compliance with new regulations and intends to pivot its business model to accommodate the changes, particularly in Illinois [22][23] - There is an opportunity to expand into new customer segments with higher credit scores, which the company has not traditionally targeted [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to adapt to regulatory changes while maintaining a commitment to serving subprime customers [22][24] - The company does not anticipate needing to loosen credit criteria despite the stimulus, as demand has returned rapidly from existing and former customers [30][31] Other Important Information - The company has around $18 million available for stock buybacks, with $10 million already spent in January, indicating a proactive approach to capital management [18] Q&A Session Summary Question: Impact of stimulus on loan demand - Management noted a significant drop in demand initially with the first round of stimulus but observed a rebound in the third quarter, indicating a complex relationship between stimulus and demand [9] Question: Exposure to new Illinois legislation - Management confirmed that existing loans above 36% remain collectible, but new customer origination will be limited to those eligible for loans below 36% [13][16] Question: Repurchase strategy and cadence - Management indicated that repurchase levels would depend on bank cooperation and existing capacity, with a focus on maintaining a sustainable buyback strategy [18][20] Question: Regulatory changes under the new administration - Management emphasized a commitment to compliance and the ability to pivot operations as needed, while also addressing the potential loss of access to credit for many customers [22][24] Question: Credit performance and future growth avenues - Management stated that credit quality has improved and that they do not plan to loosen credit criteria, focusing instead on meeting customer needs through other products [30][31]
World Acceptance (WRLD) - 2021 Q2 - Quarterly Report
2020-11-06 21:04
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, 2020 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) - 2021 Q2 - Earnings Call Transcript
2020-10-22 20:41
Financial Data and Key Metrics Changes - The overall loan book is down approximately 20% year-over-year, but there was a sequential uptick in volumes observed during the quarter [10][11] - The 90-day past due delinquency decreased by $11.8 million during the quarter, contributing to a decrease in the allowance from 4% to 2.8% [23][24] - The 60-day past due contractual delinquency was reported at 6.2% in September, down from 7.9% in June and 8% in September of the previous year [21] Business Line Data and Key Metrics Changes - Former customer returns increased by about 2% sequentially, with September ending approximately 19% higher than the previous year [8] - New customer applications were down around 47% year-over-year, but there was a gradual increase in application volume throughout Q1 and Q2 [10] - The small loan portfolio (loans under $2,500) decreased from 66% at September last year to a little over 60% at September of this year [38] Market Data and Key Metrics Changes - The company is experiencing a shift in its portfolio towards more tenured and lower-risk customers, which has positively impacted credit performance [15][16] - The overall market for portfolio acquisitions remains active, with the company seeing increased interest in acquisitions during the quarter [40][41] Company Strategy and Development Direction - The company emphasizes portfolio acquisitions as part of its long-term growth strategy and is focused on prudent marketing investments to manage customer acquisition costs [12][41] - The management is cautious about returning to previous levels of new customer volume until acquisition costs normalize [12] Management's Comments on Operating Environment and Future Outlook - Management noted that future performance is contingent on potential stimulus measures and overall unemployment rates [11] - The company has increased provisions for unforeseen risks, indicating a conservative approach to future losses [17] Other Important Information - The company has $26 million available for share repurchases under its debt agreement, which can increase to 50% of consolidated income [30] - The diluted share count was impacted by the higher share price, which increased the number of dilutive shares [27] Q&A Session Summary Question: Loan growth and demand outlook - Management observed an uptick in demand, with former customer returns increasing and new customer applications gradually returning to normal levels [8][10] Question: Delinquencies and charge-offs - The portfolio has shifted towards lower-risk customers, and management expects charge-offs to reflect the current macroeconomic backdrop if no further stimulus is provided [13][16] Question: 10-Q amendment and past due loans - The amendment was due to a shift in internal reporting methods, with no impact on provisioning numbers [20] Question: Share repurchase timing and impact - Share repurchases were weighted towards the end of the quarter, and the diluted share count will fluctuate based on share price [27][28] Question: Future charge-off rates - Management indicated that if the portfolio mix remains the same, a charge-off rate of 14.5% is a reasonable estimate for modeling [32] Question: Market competition and pricing power - The decrease in yield is attributed to a shift in customer mix, with fewer new customers being brought in [38] Question: Portfolio acquisition opportunities - There is still a market for portfolio acquisitions, with increased interest observed in the current quarter [40][41]
World Acceptance (WRLD) - 2021 Q1 - Quarterly Report
2020-08-07 20:30
[PART I - FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Consolidated Financial Statements (unaudited)](index=6&type=section&id=Item%201.%20Consolidated%20Financial%20Statements%20(unaudited)%3A) Unaudited consolidated financial statements for Q2 2020 detail financial position, operations, and cash flows, noting CECL adoption and net income increase [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202020%20and%20March%2031%2C%202020) Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2020 | March 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $9,960 | $11,619 | | Loans receivable, net | $681,597 | $804,403 | | Total assets | $902,645 | $1,030,086 | | **Liabilities & Shareholders' Equity** | | | | Senior notes payable | $352,206 | $451,100 | | Total liabilities | $511,402 | $618,123 | | Total shareholders' equity | $391,243 | $411,963 | | Total liabilities and shareholders' equity | $902,645 | $1,030,086 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20three%20months%20ended%20June%2030%2C%202020%20and%20June%2030%2C%202019) Consolidated Statement of Operations Highlights (in thousands) | Account | Three months ended June 30, 2020 | Three months ended June 30, 2019 | | :--- | :--- | :--- | | Total revenues | $123,867 | $138,442 | | Provision for credit losses | $25,661 | $41,291 | | Total general and administrative expenses | $71,608 | $81,776 | | Income before income taxes | $21,036 | $10,971 | | Net income | $15,510 | $8,608 | | Diluted EPS | $2.24 | $0.97 | [Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity%20for%20the%20three%20months%20ended%20June%2030%2C%202020%20and%20June%2030%2C%202019) - Total shareholders' equity decreased from **$412.0 million** at March 31, 2020, to **$391.2 million** at June 30, 2020. The decrease was primarily driven by a **$21.2 million** cumulative effect of adopting ASC 326 (CECL) and **$19.5 million** in common stock repurchases, partially offset by **$15.5 million** in net income[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20three%20months%20ended%20June%2030%2C%202020%20and%20June%2030%2C%202019) Consolidated Statement of Cash Flows Highlights (in thousands) | Activity | Three months ended June 30, 2020 | Three months ended June 30, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $51,839 | $58,165 | | Net cash provided by (used in) investing activities | $65,173 | $(111,822) | | Net cash provided by (used in) financing activities | $(118,671) | $54,081 | | Net change in cash and cash equivalents | $(1,659) | $424 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) - On April 1, 2020, the Company adopted the new CECL standard (ASU 2016-13), resulting in a one-time **$28.6 million** increase in the allowance for credit losses, a **$21.2 million** reduction in retained earnings (net-of-tax), and a **$7.4 million** increase in deferred income taxes[30](index=30&type=chunk) - The allowance for credit losses is determined by pooling loans based on customer tenure, which was identified as the strongest predictor of default risk. The fiscal 2021 provision includes a **$4.6 million** increase for forecasted losses due to the economic impact of COVID-19 on new loans[47](index=47&type=chunk)[51](index=51&type=chunk) - On August 6, 2020, the Company reached a resolution with the SEC and DOJ regarding its former Mexico subsidiary, agreeing to pay a total of **$21.7 million** in disgorgement, interest, and penalties. The DOJ declined prosecution[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) - On July 24, 2020, the Company amended its revolving credit agreement, reducing the minimum net worth covenant to **$325.0 million** and allowing for up to **$50.0 million** in share repurchases through March 31, 2021, among other changes[120](index=120&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analysis of Q2 2020 financial condition and operations highlights revenue decline, net income growth, and COVID-19 effects Q1 FY2021 vs Q1 FY2020 Performance | Metric | Q1 FY2021 (ended June 30, 2020) | Q1 FY2020 (ended June 30, 2019) | Change | | :--- | :--- | :--- | :--- | | Gross loans receivable | $1.07B | $1.22B | -12.7% | | Total Revenues | $123.9M | $138.4M | -10.5% | | Net Income | $15.5M | $8.6M | +80.2% | | Provision for credit losses | $25.7M | $41.3M | -37.9% | | G&A Expenses | $71.6M | $81.8M | -12.4% | - The decrease in revenue was primarily due to a decline in average net loans outstanding. Revenue from branches open throughout both periods decreased by **17.8%**[135](index=135&type=chunk)[136](index=136&type=chunk) - The provision for credit losses decreased due to lower loan volumes and improved delinquency, despite a **$4.6 million** increase to the allowance for forecasted losses related to the economic impact of COVID-19[138](index=138&type=chunk) - G&A expenses decreased by **$10.2 million**, driven by a **$7.8 million** reduction in personnel costs (lower incentive pay and benefits) and a **$3.5 million** (**57.2%**) decrease in advertising spend in anticipation of lower demand due to COVID-19[142](index=142&type=chunk)[143](index=143&type=chunk)[145](index=145&type=chunk) - The company's liquidity is supported by cash from operations (**$51.8 million** for the quarter) and a **$685.0 million** revolving credit facility, which had **$212.8 million** of unused availability at quarter-end[158](index=158&type=chunk)[166](index=166&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations on its variable-rate revolving credit facility debt - The company's main interest rate risk stems from its revolving credit facility. As of June 30, 2020, the outstanding balance was **$352.2 million**[186](index=186&type=chunk) - A hypothetical **1.0%** change in the interest rate would result in an approximate **$3.5 million** change in annual interest expense, based on the outstanding debt at quarter-end[186](index=186&type=chunk) [Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal financial reporting controls were effective with no material changes during Q2 2020 - The CEO and CFO concluded that the company's disclosure controls and procedures are effective in ensuring timely and accurate reporting as required by the SEC[188](index=188&type=chunk) - No material changes to the internal control over financial reporting were identified during the quarter ended June 30, 2020[187](index=187&type=chunk) [PART II - OTHER INFORMATION](index=47&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 12 for details on legal proceedings, primarily the resolution of the Mexico investigation - For details regarding legal proceedings, the report refers to Note 12 of the unaudited Consolidated Financial Statements[191](index=191&type=chunk) [Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) Key risk factors include COVID-19 uncertainties and CECL adoption, impacting credit losses and loan repayments - The adoption of the CECL methodology on April 1, 2020, introduces risk, as the ability to accurately forecast future credit losses may be impaired by the significant uncertainty surrounding the COVID-19 pandemic[193](index=193&type=chunk) - The COVID-19 pandemic poses a significant risk, with higher unemployment expected to increase delinquencies and credit losses. A second outbreak could lead to further economic disruption[194](index=194&type=chunk)[195](index=195&type=chunk) - The expiration of enhanced unemployment benefits under the CARES Act could negatively impact customers' ability to repay loans, potentially leading to a material increase in delinquencies and adverse effects on financial results[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details common stock repurchase activity for Q2 2020, including a new $30.0 million authorization and shares repurchased Share Repurchases for the Quarter Ended June 30, 2020 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2020 | 254,886 | $55.74 | | May 2020 | 12,398 | $74.99 | | June 2020 | 59,014 | $72.94 | | **Total** | **326,298** | **$59.58** | - On June 16, 2020, the Board of Directors authorized a new repurchase program for up to **$30.0 million** of common stock. As of June 30, 2020, the full **$30.0 million** was available under this authorization[199](index=199&type=chunk)[200](index=200&type=chunk) [Defaults Upon Senior Securities](index=48&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults on its senior securities during the period - None [Mine Safety Disclosures](index=48&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable [Other Information](index=48&type=section&id=Item%205.%20Other%20Information) The company reported no other information required for disclosure in this section - None [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the quarterly report, including credit facility amendments and regulatory documents - The exhibits filed with the report are listed in the accompanying exhibit index[203](index=203&type=chunk)
World Acceptance (WRLD) - 2021 Q1 - Earnings Call Transcript
2020-08-02 23:04
World Acceptance Corporation (NASDAQ:WRLD) Q1 2021 Results Conference Call July 30, 2020 10:00 AM ET Company Participants Chad Prashad - President and CEO John Calmes - Chief Financial and Strategy Officer Conference Call Participants John Rowan - Janney Kyle Joseph - Jefferies Vincent Caintic - Stephens Operator Good morning, and welcome to the World Acceptance Corporation sponsored First Quarter Press Release Conference call. This call is being recorded. [Operator Instructions] Before we begin, the corpo ...
World Acceptance (WRLD) - 2020 Q4 - Annual Report
2020-05-29 20:08
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, 2020 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 ...