World Acceptance (WRLD) - 2025 Q2 - Quarterly Results

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]