World Acceptance (US:WRLD)2025-07-24 15:00Financial Data and Key Metrics Changes - The company completed a new credit agreement increasing commitments to $640 million, allowing for stock repurchases of up to 100% of net income, an increase from 50% in the prior agreement [3] - The net income since January 1, 2025, is approximately $45 million [3] - The company has been repurchasing high yield notes issued in 2021, with around $170 million outstanding to be redeemed by August [4] - The first quarter is historically the lowest for earnings, contributing an average of only 5.6% to total annual net income over the past three years [5] Business Line Data and Key Metrics Changes - Refinance volume increased by 10% this quarter compared to the first quarter last year [5] - New originations increased by 12.6% year over year, marking the highest volume since fiscal year 2020 [6] - The dollar amount lent in new originations rose by 12.8% year over year [6] - The customer base increased by 4% this quarter, marking the first positive growth in three years [6] Market Data and Key Metrics Changes - The company began the year with a ledger down approximately 4% year over year, but grew around $40 million this quarter, ending down about 80 basis points [7] - Gross yields increased by over 230 basis points year over year [8] Company Strategy and Development Direction - The company aims to align yield with risk through the new Royal Finance Smile credit card, focusing on serving customers with minimal access to affordable credit [9] - The strategy includes maintaining a balance between new and returning customers, with no plans for dramatic growth in the portfolio [16] Management's Comments on Operating Environment and Future Outlook - Management noted that there has not been an increase in risk from newer customers, indicating tight underwriting practices [18] - The company is not looking for double-digit growth in the portfolio and aims to maintain a stable mix of new and returning customers [17] Other Important Information - The company is in the process of redeeming remaining bonds issued in 2021, which will allow for accelerated stock repurchases [4] - The company has a strong focus on improving customer retention and managing credit risk [16] Q&A Session Summary Question: What is driving the improvement in delinquencies this quarter? - Management indicated that the proportion of new customers in the portfolio has decreased, reducing overall risk [13] Question: What is the current strategy regarding smaller loans and higher yields? - Management expressed satisfaction with the current mix and does not expect dramatic increases in investments into new customers [14][16] Question: Have there been any changes in consumer behavior since the last update? - Management reported no significant increase in risk from newer customers, maintaining tight underwriting standards [18]