World Acceptance Corporation Reports Fiscal 2022 Fourth Quarter Results

About this update from World Acceptance Corporation

[{"type":"text","content":" GREENVILLE, S.C.--(BUSINESS WIRE)--\nWorld Acceptance Corporation (NASDAQ: WRLD) today reported financial results for its fourth quarter of fiscal 2022 and twelve months ended March 31, 2022.\n\nFourth quarter highlights\n\nDuring its fourth quarter, the World Acceptance Corporation experienced exceptional growth in both loan balances and customer base relative to prior fourth quarters. While this growth initially depresses current earnings due to the day one provisioning for anticipated credit losses under the current accounting standards, it positions the company well for the future as these customers continue to generate revenue over the long term.\n\nSome highlights from the fourth quarter include:\n\n\nRecord fourth quarter loan originations and customer retention\n\n\nUnique customer base grew 10.1% year-over-year\n\n\nGross loans outstanding of $1.52 billion, a 37.8% increase from same quarter prior year\n\n\nTotal revenues of $166.3 million, a 13.7% increase from the same quarter prior year\n\n\nNet income of $18.4 million, a $26.5 million decrease from $44.9 million in same quarter prior year\n\n\nNet income per diluted share of $2.97, a $3.99 decrease from $6.96 per share in same quarter prior year\n\n\nCash flow from operating activities of $281.5 million over the last twelve months, a 29.9% increase from FY2021\n\n\nPortfolio results\n\nGross loans outstanding increased to $1.52 billion as of March 31, 2022, a 37.8% increase from the $1.10 billion of gross loans outstanding as of March 31, 2021. Typically, the company experiences a 10% to 13% decrease in gross loans between during its fiscal fourth quarter due to income tax refunds. During the most recent quarter, gross loans outstanding decreased 5.2% or $83.3 million compared to a decrease of 12.6% or $159.8 million in the same quarter of the prior year. This lower payoff rate in the most recent quarter resulted from the continued shift to larger loans and significant increases in borrowing from new, current, and former customers that exceeded comparable pre-pandemic volumes. The borrowing increase was driven by an increase in applications under tightened underwriting standards initiated during the third quarter of the current fiscal year.\n\nThe following table includes the volume of gross loan origination balances, excluding tax advance loans, by customer type f...

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