World Acceptance Corporation Reports Fiscal 2023 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 2023 and twelve months ended March 31, 2023.\n\n\nFourth quarter highlights\n\n\nDuring its fourth fiscal quarter, World Acceptance Corporation continued to focus on credit quality and to utilize the conservative approach to its lending operations implemented in the previous quarter. Management believes that continuing to carefully invest in our best customers and closely monitoring performance will put the Company in a strong position going into the new fiscal year, particularly given the potentially challenging economic environment.\n\n\nHighlights from the fourth quarter include:\n\n\n\nNet income of $25.6 million\n\n\n\nDiluted net income per share of $4.37\n\n\n\nSignificant decrease in accounts 90+ days past due from 4.9% at December 31, 2022 to 3.5% at March 31, 2023\n\n\n\nGross loans outstanding of $1.39 billion, an 8.7% decrease from same quarter prior year\n\n\n\nTotal revenues of $160.8 million, a 4.6% decrease from the same quarter prior year\n\n\n\nCash flow from operating activities of $285.1 million over the last twelve months, a 4.7% increase over prior year\n\n\n\nPortfolio results\n\n\nGross loans outstanding were $1.39 billion as of March 31, 2023, an 8.7% decrease from the $1.52 billion of gross loans outstanding as of March 31, 2022. During the most recent quarter, gross loans outstanding decreased sequentially 10.6%, or $164.0 million, from $1.55 billion as of December 31, 2022 compared to a decrease of 5.2%, or $83.3 million, in the comparable quarter of the prior year. During the most recent quarter, we saw a decrease in borrowing from new, former, and refinance customers compared to the same quarter of the prior year due to the tighter underwriting implemented in prior quarters. We also took steps to improve the gross yield to expected loss ratio for all new, former, and refinance customer originations. However, as early performance indicators on new borrowers improved substantially, the Company began to increase new borrower originations toward the end of the third quarter fiscal 2023. We will continue to monitor performance indicators and intend to adjust our underwriting accordingly.\n\n\nThe following table includes the volume of gross loan origination b...

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