World Acceptance (WRLD) - 2025 Q3 - Quarterly Report

Financial Performance - Total revenues for the three months ended December 31, 2024, were $138.63 million, a slight increase from $137.75 million in the same period of 2023[16] - Net income for the three months ended December 31, 2024, was $13.39 million, compared to $16.66 million in the same period of 2023, reflecting a decrease of approximately 19%[16] - Basic earnings per share for the three months ended December 31, 2024, were $2.46, down from $2.89 in the same period of 2023[16] - Net income for the nine months ended December 31, 2024, was $45,463,881, an increase from $42,285,985 for the same period in 2023, representing a growth of approximately 5%[24] - Cash flow from operating activities for the nine months ended December 31, 2024, was $163,206,341, compared to $181,969,945 in 2023, indicating a decrease of about 10.3%[24] Credit Losses and Loans - The provision for credit losses increased to $44.10 million for the three months ended December 31, 2024, up from $40.63 million in the same period of 2023, indicating a rise of about 6%[16] - The allowance for credit losses was $116.11 million as of December 31, 2024, up from $102.96 million as of March 31, 2024, reflecting an increase of about 13%[14] - The provision for credit losses increased to $136,191,023 for the nine months ended December 31, 2024, up from $127,697,072 in 2023, reflecting a rise of approximately 6.3%[24] - The company reported gross charge-offs of $106,191,790 for the nine months ended December 31, 2024, with the majority coming from loans originated in 2024[54] - The company experienced net charge-offs of $123,042,888 for the nine months ended December 31, 2024, compared to $132,167,737 for the same period in 2023[59] Assets and Liabilities - Total assets as of December 31, 2024, were $1.11 billion, compared to $1.06 billion as of March 31, 2024, marking an increase of approximately 5%[14] - Total liabilities increased to $682.33 million as of December 31, 2024, from $631.92 million as of March 31, 2024, representing an increase of approximately 8%[14] - The company’s total shareholders' equity increased to $428,169,949 as of December 31, 2024, from $407,019,166 at the end of December 2023, representing an increase of approximately 5.2%[24] Loan Performance - Current payment performance indicates that $1,251,086,702 of loans are current, while $45,948,847 are 91 or more days past due[48] - The total past due loans reached $130,183,274, representing 9.4% of the total gross loans as of December 31, 2024[59] - The percentage of loans receivable that were 60+ days past due was 10.3%, indicating a notable level of delinquency[62] - The total net loans as of December 31, 2024, were $904,527,453, with a total past due amount of $115,490,301[62] Expenses - The company reported a decrease in general and administrative expenses to $67.22 million for the three months ended December 31, 2024, compared to $65.91 million in the same period of 2023[16] - G&A expenses for the three months ended December 31, 2024 increased by $1.3 million, or 2.0%, from the corresponding period of the previous year[148] - Personnel expenses totaled $99.8 million, a decrease of $20.3 million, or 16.9%, compared to the previous year, with headcount down by 3.1%[164] Stock and Share Repurchase - The company repurchased common stock amounting to $22,194,690 during the nine months ended December 31, 2024, compared to $17,291,997 in the same period of 2023, representing an increase of approximately 28%[24] - The Company authorized a share repurchase program of up to $20.0 million, with $9.0 million remaining as of December 31, 2024[193] Debt and Financing - The outstanding balance under the Company's credit facility as of December 31, 2024 was $335.9 million, with an effective interest rate of 9.7% annualized[112] - The Company issued $300 million in 7.0% senior unsecured notes due November 2026, with interest payable semi-annually starting May 1, 2022[114] - The Company was in compliance with its debt covenants as of December 31, 2024, and does not anticipate these covenants will materially limit its business strategy[120] Tax and Compliance - The Company's effective income tax rate increased to 16.4% for the three months ended December 31, 2024, compared to 14.6% for the prior year quarter[128] - As of December 31, 2024, the Company had $1.1 million of total gross unrecognized tax benefits, with $0.4 million expected to be resolved in the next twelve months[125] Future Outlook - The Company believes inflation will not materially adversely affect its financial condition, as increased loan demand may offset rising operating costs[195] - The Company does not foresee any trends or uncertainties that could materially affect its liquidity in the foreseeable future[192]