World Acceptance Corporation Reports Fiscal 2024 First 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 first quarter of fiscal 2024 and three months ended June 30, 2023.\n\n\nFirst quarter highlights\n\n\nDuring its first fiscal quarter, World Acceptance Corporation continued to focus on credit quality and a conservative approach to its lending operations. Management believes that continuing to carefully invest in our best customers and closely monitoring performance will put the Company in a strong position throughout the fiscal year, particularly given the potentially challenging economic environment.\n\n\nHighlights from the first quarter include:\n\n\n\nNet income of $9.5 million\n\n\n\nDiluted net income per share of $1.62\n\n\n\nRecency delinquency on accounts 90+ days past due improved from 4.1% at June 30, 2022, to 3.5% at June 30, 2023\n\n\n\nGross loans outstanding of $1.40 billion, a 0.6% increase from March 31, 2023\n\n\n\nTotal revenues of $139.3 million, including a 130 basis point yield increase compared to the same quarter in the prior year\n\n\n\nCash flow from operating activities of $59.7 million for the three months ended June 30, 2023, a 2.7% increase from the same period in the prior year\n\n\n\nPortfolio results\n\n\nGross loans outstanding were $1.40 billion as of June 30, 2023, a 14.9% decrease from the $1.64 billion of gross loans outstanding as of June 30, 2022. During the most recent quarter, gross loans outstanding increased sequentially 0.6%, or $8.0 million, from $1.39 billion as of March 31, 2023, compared to an increase of 7.8%, or $119.0 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 standards 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 of fiscal 2023 and into the first quarter of fiscal 2024. We will continue to monitor performance indicators and intend to adjust underwriting accordingly.\n\n\nThe followi...

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