World Acceptance (WRLD) - 2025 Q1 - Quarterly Results

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].