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World Acceptance Corporation Reports Fiscal 2023 Third Quarter Results
GREENVILLE, S.C.--(BUSINESS WIRE)-- World Acceptance Corporation (the “Company”) (NASDAQ: WRLD) today reported financial results for its third quarter of
About this update from World Acceptance Corporation
[{"type":"text","content":" GREENVILLE, S.C.--(BUSINESS WIRE)--\nWorld Acceptance Corporation (the “Company”) (NASDAQ: WRLD) today reported financial results for its third quarter of fiscal 2023 and nine months ended December 31, 2022.\n\nThird quarter highlights\n\nDuring its third fiscal quarter, World Acceptance Corporation slowed its growth in both loan balances and customer base by reducing new borrower marketing spend and tightening its overall underwriting requirements. Management believes that continuing to conservatively manage investment in the Company’s highest credit-risk customers, including lower credit-grade new customers, is prudent given current economic uncertainties.\n\nHighlights from the third quarter include:\n\n\nNet income of $5.8 million\n\n\nDiluted net income per share of $0.98\n\n\nSignificant decrease in 0-89 days past due accounts from 23.5% at September 30, 2022 to 20.5% at December 31, 2022\n\n\nGross loans outstanding of $1.55 billion, a 3.2% decrease from same quarter prior year\n\n\nTotal revenues of $146.5 million, a 1.4% decrease from the same quarter prior year\n\n\nCash flow from operating activities of $203.3 million over the last nine months, a 21.5% increase from the same nine-month period\n\n\nPortfolio results\n\nGross loans outstanding were $1.55 billion as of December 31, 2022, a 3.2% decrease from the $1.61 billion of gross loans outstanding as of December 31, 2021. During the most recent quarter, gross loans outstanding sequentially decreased 2.8%, or $44.4 million, from $1.60 billion as of September 30, 2022, compared to an increase of 15.1%, or $211.3 million, in the comparable quarter of the prior year. During the quarter, World Acceptance saw a decrease in borrowing from new, former, and refinance customers compared to the same quarter of the prior year as the Company continued with the tightened underwriting implemented in prior quarters. The Company 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 most recent quarter. World Acceptance will continue to monitor performance indicators of the Company’s underwriting and intend to adjust underwriting accordingly.\n\nThe followi...