World Acceptance (US:WRLD)2024-11-07 21:12Financial 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]