NASDAQ:WRLD World Acceptance Q4 2024 Earnings Report $134.68 +5.13 (+3.96%) As of 03:07 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings HistoryForecast World Acceptance EPS ResultsActual EPS$6.09Consensus EPS $4.35Beat/MissBeat by +$1.74One Year Ago EPSN/AWorld Acceptance Revenue ResultsActual Revenue$159.27 millionExpected Revenue$149.00 millionBeat/MissBeat by +$10.27 millionYoY Revenue GrowthN/AWorld Acceptance Announcement DetailsQuarterQ4 2024Date5/2/2024TimeN/AConference Call DateThursday, May 2, 2024Conference Call Time10:00AM ETUpcoming EarningsWorld Acceptance's Q4 2025 earnings is scheduled for Tuesday, April 29, 2025, with a conference call scheduled at 10:00 AM ET. Check back for transcripts, audio, and key financial metrics as they become available.Q4 2025 Earnings ReportConference Call ResourcesConference Call AudioConference Call TranscriptPress Release (8-K)Annual Report (10-K)Earnings HistoryCompany ProfilePowered by World Acceptance Q4 2024 Earnings Call TranscriptProvided by QuartrMay 2, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good morning, and welcome to the World Acceptance Corporation's 4th Quarter 20 24 Earnings Conference Call. This call is being recorded. At this time, all participants have been placed in a listen only mode. Before we begin, the corporation has requested that I make the following announcement. The comments made during this conference call may contain certain forward looking statements within the meaning of Section 21E of Securities Exchange Act of 1934 that represent the corporation's expectations and beliefs concerning future events. Operator00:00:34Such forward looking statements are about matters that are inherently subject to risks and uncertainties. Statements other than those of historical fact, as well as those identified by the words anticipate, estimate, intend, plan, expect, believe, may, will and should or any variation of the foregoing and similar expressions are forward looking statements. Additional information regarding forward looking statements and any factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward looking statements are included in the paragraph discussing forward looking statements in today's earnings press release and in the Risk Factors sections of the corporation's most recent Form 10 ks for the fiscal year ended March 31, 2023, and subsequent reports filed with or furnished to the SEC from time to time. The corporation does not undertake any obligation to update any forward looking statements it makes. At this time, it is my pleasure to turn the floor over to your host, Chad Prashad, President and Chief Executive Officer. Speaker 100:01:44Good morning, and thank you for joining our fiscal 2024 year end earnings call. Before we open up to questions, there are a few areas I'd like to highlight. Nearly 2 years ago, in the spring of 2022, we began to see the effects of the stimulus hangover impacting our customer base, mainly through inflation and increased financial insecurity about their future. At that time, we began what has been nearly a 2 year period of tightened underwriting, reduced outstandings with our highest credit risk customers and a focus on building a stronger portfolio base that included stopping and reversing the reduction in gross yields. Earlier this fiscal year, we signaled that we would continue with tighter credit and would not anticipate our normal portfolio growth pace for the year. Speaker 100:02:28During this portfolio rightsizing process, we decreased our portfolio size by 8.1% this fiscal year. However, our customer base was largely unchanged with a 1.5% decrease in the number of customers at year end compared to 2023. For branches that were open in both fiscal years, the reduction in customer base was negligible at 0.2%. This is an important distinction as we've used this time to right size and de risk the portfolio through improving the overall credit quality of our customer base and reducing our realized and expected losses, while at the same time improving the yield and decreasing our average customer outstandings. The results show significant reductions in delinquency, with our recency 60 day or longer rate improving significantly by 9% from 5.5% to 5% when comparing the end of 2024 to the end of 2023 and our 90 plus delinquency improving by 11% from 3.5% to 3.1%, again comparing date of 2024 to 2023. Speaker 100:03:34Also, our annualized net charge off rate improved by more than 500 basis points, more than 20% on a relative basis when comparing the end of fiscal 20 very expense in the Q4 when compared to fiscal 2023 and a very conservative 1.2:one debt to equity ratio at the end of the year. New loan volumes increased 7% this quarter compared to the Q4 last year as demand from our former new customers continues to remain high. Former customer loan volume in particular was 14% higher in the 4th quarter this year compared to last year and improved 11% year over year for the entire fiscal year. During the quarter, new customer approval rates were relatively flat when compared to the same quarter last year. With our continued focus on credit quality and our early indications performance through 1st payment defaults are significantly lower than the prior 2 fiscal years and in line with or better than pre pandemic 1st pay defaults comparisons. Speaker 100:04:45For new customers in the portfolio as a whole, our yields continue to improve. This is a result of improved gross yields as well as reduced delinquencies. While we are pleased with our current progress in delinquency improvement and trending of the underlying portfolio, we still believe there is room for improvement in the current and upcoming quarters. With the expectations of economic stability continuing to increase and the decreasing likelihood of a major unemployment impacting our customer base, management continues to accrue for long term incentive plan with vesting tiers of $16.35 20 point $4.5 earnings per share due to the overall much improved credit quality and operating conditions. We anticipate returning to modest growth this year with a continued focus on reducing delinquency and net charge offs. Speaker 100:05:34We'll continue to monitor both of these, especially in the 1st several quarters of fiscal year 2025, as those assumptions are fairly vital to us achieving $20.45 for the full fiscal year. Finally, I'd like to thank our wonderful team members here at World who have helped so many customers from our communities throughout the entire fiscal year of 2024, helping to establish and rebuild credit, well as meeting immediate financial needs. We have an absolutely amazing team. I'm very grateful for their commitment to their customers as well as to each other. At this time, Johnny Calmes, our Chief Financial and Strategy Officer, and I would like to open up to any questions you have. Operator00:06:39The first question comes from John Rowan with Janney. Please go ahead. Speaker 200:06:43Good morning, guys. Chad, my phone broke up for a second there. Did you give some kind of guidance for the upcoming quarter and the year? Or were you just kind of restating what the vesting goals are? Speaker 100:06:57Yes, really just restating what our vesting goals are at $16.35 per share and $2.45 per share. And also reinforcing that, we realized that there's 2 major events. 1 is modest growth and the other is continuing reduce our delinquency and net charge off rates that we'll have to continue to focus on, especially in the first one to two quarters this year to remain confident that those tiers, especially at $20.45 are achievable. Okay. Speaker 200:07:29Obviously, you charged off quite a bit less or you provisioned quite a bit less in your charge off for the quarter. Is that just a function of portfolio liquidation and CECL or are there changes to macro assumptions for lifetime loss? Speaker 300:07:43David, it's primarily just the biggest thing is the decrease in the portfolio that happens in the Q4. But yes, but also like there's improvement in the underlying loss rates that drive the CECL model, right? And obviously lower delinquency also factors in there as well. So all those things together led to a lower provision during the quarter. Speaker 200:08:12Okay. So there were changes to the lifetime loss assumptions And then just one last question. Any unusual items in G Speaker 100:08:22and A? Speaker 200:08:23Yes. Okay. And then just one last question. Any unusual items in G and A? Speaker 300:08:32No. Nothing unusual this quarter. Speaker 200:08:35Okay. All right. That's it for me. Thank you. Operator00:08:50Seeing no further questions, I would like to turn the conference back over to Chad Prashad for any closing remarks. Speaker 100:08:59Thank you for taking the time to join us today. And John, thank you for your question. This concludes the Q4 earnings call for World Acceptance Corporation. Thank you. Operator00:09:08The conference has now concluded. Thank you for attending today's presentation.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallWorld Acceptance Q4 202400:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsPress Release(8-K)Annual report(10-K) World Acceptance Earnings HeadlinesWorld Acceptance (WRLD) Expected to Announce Earnings on TuesdayApril 24 at 4:02 AM | americanbankingnews.comWorld Acceptance Corporation Announces Fourth Quarter 2025 Conference Call on the InternetApril 22 at 11:18 PM | finance.yahoo.comTrump Makes Major Crypto AnnouncementTrump Ends the “War on Crypto” I expect it to pump the market, which is why I'm recommending ONE coin to all investors right now.April 24, 2025 | Crypto 101 Media (Ad)World Acceptance (NASDAQ:WRLD) Downgraded by StockNews.com to BuyApril 15, 2025 | americanbankingnews.comWith EPS Growth And More, World Acceptance (NASDAQ:WRLD) Makes An Interesting CaseMarch 3, 2025 | finance.yahoo.comPrescott General Partners LLC Reduces Stake in World Acceptance CorpFebruary 22, 2025 | gurufocus.comSee More World Acceptance Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like World Acceptance? Sign up for Earnings360's daily newsletter to receive timely earnings updates on World Acceptance and other key companies, straight to your email. Email Address About World AcceptanceWorld Acceptance (NASDAQ:WRLD) engages in consumer finance business in the United States. The company provides short-term small installment loans, medium-term larger installment loans, related credit insurance, and ancillary products and services to individuals. It offers income tax return preparation and filing services; and automobile club memberships. It serves individuals with limited access to other sources of consumer credit, such as banks, credit unions, other consumer finance businesses, and credit card lenders. World Acceptance Corporation was founded in 1962 and is headquartered in Greenville, South Carolina.View World Acceptance ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Seismic Shift at Intel: Massive Layoffs Precede Crucial EarningsRocket Lab Lands New Contract, Builds Momentum Ahead of EarningsAmazon's Earnings Could Fuel a Rapid Breakout Tesla Earnings Miss, But Musk Refocuses and Bulls ReactQualcomm’s Range Narrows Ahead of Earnings as Bulls Step InWhy It May Be Time to Buy CrowdStrike Stock Heading Into EarningsCan IBM’s Q1 Earnings Spark a Breakout for the Stock? Upcoming Earnings AbbVie (4/25/2025)AON (4/25/2025)Colgate-Palmolive (4/25/2025)HCA Healthcare (4/25/2025)NatWest Group (4/25/2025)Cadence Design Systems (4/28/2025)Welltower (4/28/2025)Waste Management (4/28/2025)AstraZeneca (4/29/2025)Booking (4/29/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 4 speakers on the call. Operator00:00:00Good morning, and welcome to the World Acceptance Corporation's 4th Quarter 20 24 Earnings Conference Call. This call is being recorded. At this time, all participants have been placed in a listen only mode. Before we begin, the corporation has requested that I make the following announcement. The comments made during this conference call may contain certain forward looking statements within the meaning of Section 21E of Securities Exchange Act of 1934 that represent the corporation's expectations and beliefs concerning future events. Operator00:00:34Such forward looking statements are about matters that are inherently subject to risks and uncertainties. Statements other than those of historical fact, as well as those identified by the words anticipate, estimate, intend, plan, expect, believe, may, will and should or any variation of the foregoing and similar expressions are forward looking statements. Additional information regarding forward looking statements and any factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward looking statements are included in the paragraph discussing forward looking statements in today's earnings press release and in the Risk Factors sections of the corporation's most recent Form 10 ks for the fiscal year ended March 31, 2023, and subsequent reports filed with or furnished to the SEC from time to time. The corporation does not undertake any obligation to update any forward looking statements it makes. At this time, it is my pleasure to turn the floor over to your host, Chad Prashad, President and Chief Executive Officer. Speaker 100:01:44Good morning, and thank you for joining our fiscal 2024 year end earnings call. Before we open up to questions, there are a few areas I'd like to highlight. Nearly 2 years ago, in the spring of 2022, we began to see the effects of the stimulus hangover impacting our customer base, mainly through inflation and increased financial insecurity about their future. At that time, we began what has been nearly a 2 year period of tightened underwriting, reduced outstandings with our highest credit risk customers and a focus on building a stronger portfolio base that included stopping and reversing the reduction in gross yields. Earlier this fiscal year, we signaled that we would continue with tighter credit and would not anticipate our normal portfolio growth pace for the year. Speaker 100:02:28During this portfolio rightsizing process, we decreased our portfolio size by 8.1% this fiscal year. However, our customer base was largely unchanged with a 1.5% decrease in the number of customers at year end compared to 2023. For branches that were open in both fiscal years, the reduction in customer base was negligible at 0.2%. This is an important distinction as we've used this time to right size and de risk the portfolio through improving the overall credit quality of our customer base and reducing our realized and expected losses, while at the same time improving the yield and decreasing our average customer outstandings. The results show significant reductions in delinquency, with our recency 60 day or longer rate improving significantly by 9% from 5.5% to 5% when comparing the end of 2024 to the end of 2023 and our 90 plus delinquency improving by 11% from 3.5% to 3.1%, again comparing date of 2024 to 2023. Speaker 100:03:34Also, our annualized net charge off rate improved by more than 500 basis points, more than 20% on a relative basis when comparing the end of fiscal 20 very expense in the Q4 when compared to fiscal 2023 and a very conservative 1.2:one debt to equity ratio at the end of the year. New loan volumes increased 7% this quarter compared to the Q4 last year as demand from our former new customers continues to remain high. Former customer loan volume in particular was 14% higher in the 4th quarter this year compared to last year and improved 11% year over year for the entire fiscal year. During the quarter, new customer approval rates were relatively flat when compared to the same quarter last year. With our continued focus on credit quality and our early indications performance through 1st payment defaults are significantly lower than the prior 2 fiscal years and in line with or better than pre pandemic 1st pay defaults comparisons. Speaker 100:04:45For new customers in the portfolio as a whole, our yields continue to improve. This is a result of improved gross yields as well as reduced delinquencies. While we are pleased with our current progress in delinquency improvement and trending of the underlying portfolio, we still believe there is room for improvement in the current and upcoming quarters. With the expectations of economic stability continuing to increase and the decreasing likelihood of a major unemployment impacting our customer base, management continues to accrue for long term incentive plan with vesting tiers of $16.35 20 point $4.5 earnings per share due to the overall much improved credit quality and operating conditions. We anticipate returning to modest growth this year with a continued focus on reducing delinquency and net charge offs. Speaker 100:05:34We'll continue to monitor both of these, especially in the 1st several quarters of fiscal year 2025, as those assumptions are fairly vital to us achieving $20.45 for the full fiscal year. Finally, I'd like to thank our wonderful team members here at World who have helped so many customers from our communities throughout the entire fiscal year of 2024, helping to establish and rebuild credit, well as meeting immediate financial needs. We have an absolutely amazing team. I'm very grateful for their commitment to their customers as well as to each other. At this time, Johnny Calmes, our Chief Financial and Strategy Officer, and I would like to open up to any questions you have. Operator00:06:39The first question comes from John Rowan with Janney. Please go ahead. Speaker 200:06:43Good morning, guys. Chad, my phone broke up for a second there. Did you give some kind of guidance for the upcoming quarter and the year? Or were you just kind of restating what the vesting goals are? Speaker 100:06:57Yes, really just restating what our vesting goals are at $16.35 per share and $2.45 per share. And also reinforcing that, we realized that there's 2 major events. 1 is modest growth and the other is continuing reduce our delinquency and net charge off rates that we'll have to continue to focus on, especially in the first one to two quarters this year to remain confident that those tiers, especially at $20.45 are achievable. Okay. Speaker 200:07:29Obviously, you charged off quite a bit less or you provisioned quite a bit less in your charge off for the quarter. Is that just a function of portfolio liquidation and CECL or are there changes to macro assumptions for lifetime loss? Speaker 300:07:43David, it's primarily just the biggest thing is the decrease in the portfolio that happens in the Q4. But yes, but also like there's improvement in the underlying loss rates that drive the CECL model, right? And obviously lower delinquency also factors in there as well. So all those things together led to a lower provision during the quarter. Speaker 200:08:12Okay. So there were changes to the lifetime loss assumptions And then just one last question. Any unusual items in G Speaker 100:08:22and A? Speaker 200:08:23Yes. Okay. And then just one last question. Any unusual items in G and A? Speaker 300:08:32No. Nothing unusual this quarter. Speaker 200:08:35Okay. All right. That's it for me. Thank you. Operator00:08:50Seeing no further questions, I would like to turn the conference back over to Chad Prashad for any closing remarks. Speaker 100:08:59Thank you for taking the time to join us today. And John, thank you for your question. This concludes the Q4 earnings call for World Acceptance Corporation. Thank you. Operator00:09:08The conference has now concluded. Thank you for attending today's presentation.Read morePowered by