World Acceptance Corporation reported its financial results for the three and nine months ended December 31, 2024, revealing a mixed performance compared to the previous fiscal period. Total revenues for the third quarter increased slightly by 0.6% to $138.6 million, up from $137.7 million in the same quarter of the prior year. However, for the nine-month period, revenues decreased by 3.5% to $399.6 million from $413.9 million. The company’s net income for the third quarter fell by 19.7% to $13.4 million, compared to $16.7 million in the prior year, while net income for the nine months rose to $45.5 million from $42.3 million.
The company experienced a 1.4% decrease in gross loans outstanding, which totaled $1.38 billion as of December 31, 2024, down from $1.40 billion a year earlier. Despite this decline, the company reported a sequential increase of 6.6% in gross loans from the previous quarter. The customer base grew by 3.7% year-over-year, with unique borrowers increasing by 6.2% in the latest quarter. The provision for credit losses rose by 8.5% to $44.1 million for the third quarter, reflecting the impact of loan growth and a higher proportion of riskier customers.
Operationally, World Acceptance Corporation opened or acquired a net of 10 branches during the quarter, bringing the total to 1,035 branches. The company’s general and administrative expenses increased by 2.0% to $67.2 million for the third quarter, with personnel expenses rising by 3.0%. The company’s debt-to-equity ratio improved to 1.3:1 as of December 31, 2024, down from 1.4:1 a year prior, indicating a stronger balance sheet.
Looking ahead, the company remains focused on monitoring performance indicators and adjusting underwriting practices as necessary. The management expressed confidence in the company’s ability to navigate regulatory changes and market conditions, emphasizing that cash flow from operations and available credit will support future growth initiatives. The company has also authorized a share repurchase program, with $9.0 million remaining under the current plan, reflecting its commitment to returning value to shareholders while maintaining adequate capital for growth.
About WORLD ACCEPTANCE CORP
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