World Acceptance Corp Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>World Acceptance Corp filed its Q3 FY2024 10-Q on February 7, 2024, detailing financial performance for the period ending December 31, 2023.</b>

AI Summary

WORLD ACCEPTANCE CORP (WRLD) filed a Quarterly Report (10-Q) with the SEC on February 7, 2024. World Acceptance Corp filed its 10-Q for the period ending December 31, 2023. The filing covers the third quarter of fiscal year 2024. The company's fiscal year ends on March 31st. The filing was made on February 7, 2024. The company's SIC code is 6141 (Personal Credit Institutions).

Why It Matters

For investors and stakeholders tracking WORLD ACCEPTANCE CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial performance and operational updates for World Acceptance Corp. Understanding the details within this report is crucial for assessing the company's current financial health, profitability, and any potential risks or opportunities in the personal credit sector.

Risk Assessment

Risk Level: medium — WORLD ACCEPTANCE CORP shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant negative news, but the nature of personal credit institutions carries inherent financial and market risks.

Analyst Insight

Monitor future filings for trends in loan performance, interest income, and operating expenses to assess the company's ongoing financial stability.

Key Numbers

• 2023-12-31 — Period of Report (Conformed period of report)
• 2024-02-07 — Filing Date (Filed as of date)
• 2024-02-01 — Filing Date (Filing date for February 2024)
• 2023-04-01 — Fiscal Year Start (Start date of the fiscal year)
• 2024-03-31 — Fiscal Year End (Fiscal year end date)

Key Players & Entities

• WORLD ACCEPTANCE CORP (company) — Filer name
• SC (location) — State of incorporation and business address state
• 6141 (industry_code) — Standard Industrial Classification code
• 570425114 (tax_id) — IRS number
• 0000108385 (cik) — Central Index Key
• 000-19599 (sec_file_number) — SEC file number

Forward-Looking Statements

• WORLD ACCEPTANCE CORP will likely maintain a stable equity structure in the next quarter. (WORLD ACCEPTANCE CORP) — medium confidence, target: 2024-03-31

FAQ

Risk Factors

• Risk Factors [medium — financial]: The filing indicates that the company is subject to various risks inherent in the financial services industry, particularly in personal lending.

Industry Context

World Acceptance Corp operates in the personal credit institutions sector, providing small loans to individuals, often those with limited access to traditional credit.

Regulatory Implications

As a financial institution, the company is subject to federal and state regulations governing lending practices, consumer protection, and financial reporting.

What Investors Should Do

1. Review the full 10-Q document for detailed financial statements and management's discussion and analysis.
2. Analyze trends in loan origination, delinquency rates, and net charge-offs.
3. Compare key financial metrics to previous periods and industry benchmarks.

Key Dates

• 2024-02-07: 10-Q Filing — Submission of the quarterly report for the period ending December 31, 2023.

Year-Over-Year Comparison

This filing represents the most recent quarterly update for World Acceptance Corp, providing current financial data as of December 31, 2023.

Key Financial Figures

• $300 million — RS U.S. Internal Revenue Service Notes $300 million in aggregate principal amount of 7.0% u

Filing Documents

• wrld-20231231.htm (10-Q) — 1634KB
• exhibit3101q3fy24.htm (EX-31.01) — 11KB
• exhibit3102q3fy24.htm (EX-31.02) — 11KB
• exhibit3201q3fy24.htm (EX-32.01) — 5KB
• exhibit3202q3fy24.htm (EX-32.02) — 5KB
• 0000108385-24-000004.txt (&nbsp;) — 9022KB
• wrld-20231231.xsd (EX-101.SCH) — 40KB
• wrld-20231231_cal.xml (EX-101.CAL) — 67KB
• wrld-20231231_def.xml (EX-101.DEF) — 230KB
• wrld-20231231_lab.xml (EX-101.LAB) — 669KB
• wrld-20231231_pre.xml (EX-101.PRE) — 436KB
• wrld-20231231_htm.xml (XML) — 1930KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1. Consolidated Financial Statements (unaudited): 5 Consolidated Balance Sheets as of December 31, 2023 and March 31, 2023 5 Consolidated Statements of Operations for the three and nine months ended December 31, 2023 and December 31, 2022 6 Consolidated Statements of Shareholders' Equity for the three and nine months ended December 31, 2023 and December 31, 2022 7 Consolidated Statements of Cash Flows for the nine months ended December 31, 2023 and December 31, 2022 9

Notes to Consolidated Financial Statements 12

Notes to Consolidated Financial Statements 12 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 34 3. Quantitative and Qualitative Disclosures about Market Risk 44 4. Controls and Procedures 44

- OTHER INFORMATION

PART II - OTHER INFORMATION 1. Legal Proceedings 45 1A. Risk Factors 45 2. Unregistered Sales of Equity Securities and Use of Proceeds 45 3. Defaults Upon Senior Securities 45 4. Mine Safety Disclosures 45 5. Other Information 45 6. Exhibits 46 EXHIBIT INDEX 47 SIGNATURES 48 Introductory Note: As used herein, the "Company," "we," "our," "us," or similar formulations include World Acceptance Corporation and each of its subsidiaries, unless otherwise expressly noted or the context otherwise requires that it include only World Acceptance Corporation. All references in this report to "fiscal 2024" are to the Company's fiscal year ending March 31, 2024; all references in this report to "fiscal 2023" are to the Company's fiscal year ended March 31, 2023; and all references to "fiscal 2019" are to the Company's fiscal year ended March 31, 2019. 3 Table of Contents GLOSSARY OF DEFINED TERMS The following terms may be used throughout this Report, including consolidated financial statements and related notes. Term Definition 2008 Plan World Acceptance Corporation 2008 Stock Option Plan 2011 Plan World Acceptance Corporation 2011 Stock Option Plan 2017 Plan World Acceptance Corporation 2017 Stock Incentive Plan ASC Accounting Standards Codification ASU Accounting Standards Update CECL Current Expected Credit Loss CEO Chief Executive Officer CFO Chief Financial Officer CFPB U.S. Consumer Financial Protection Bureau Compensation Committee Compensation and Stock Option Committee Customer Tenure The number of years since a customer was first serviced by the Company ERISA Employee Retirement Income Security Act Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FICO The Fair Isaac Corporation G&A General and administrative GAAP U.S. generally accepted accounting principles HTC Historic Tax Credit IRS U.S. Internal Revenue Service Notes $300 million in aggregate principal amount o

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) December 31, 2023 March 31, 2023 ASSETS Cash and cash equivalents $ 12,775,524 $ 16,508,935 Gross loans receivable 1,400,621,989 1,390,015,568 Less: Unearned interest, insurance and fees ( 372,310,672 ) ( 376,674,349 ) Allowance for credit losses ( 121,082,068 ) ( 125,552,733 ) Loans receivable, net 907,229,249 887,788,486 Income taxes receivable 1,716,789 — Operating lease rightofuse assets, net 80,049,367 81,289,240 Property and equipment, net 23,195,803 23,926,080 Deferred income taxes, net 37,047,569 41,722,361 Other assets, net 38,046,804 43,422,669 Goodwill 7,370,791 7,370,791 Intangible assets, net 12,106,773 15,289,579 Total assets $ 1,119,538,669 $ 1,117,318,141 LIABILITIES & SHAREHOLDERS' EQUITY Liabilities: Senior notes payable $ 305,089,480 $ 307,910,824 Senior unsecured notes payable, net 279,915,756 287,352,892 Income taxes payable — 2,532,766 Operating lease liability 82,471,106 83,735,002 Accounts payable and accrued expenses 45,043,161 50,559,920 Total liabilities 712,519,503 732,091,404 Commitments and contingencies Shareholders' equity: Preferred stock, no par value Authorized 5,000,000 , no shares issued or outstanding — — Common stock, no par value Authorized 95,000,000 shares; issued and outstanding 6,073,299 and 6,231,082 shares at December 31, 2023 and March 31, 2023, respectively — — Additional paid-in capital 284,870,280 288,071,839 Retained earnings 122,148,886 97,154,898 Total shareholders' equity 407,019,166 385,226,737 Total liabilities and shareholders' equity $ 1,119,538,669 $ 1,117,318,141 See accompanying notes to consolidated financial statements. 5 Table of Contents WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Revenues:

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 – BASIS OF PRESENTATION The consolidated financial statements of the Company at December 31, 2023 and 2022 and for the three and nine months then ended were prepared in accordance with the instructions for Form 10-Q and are unaudited; however, in the opinion of management, all adjustments (consisting only of items of a normal, recurring nature) necessary for a fair presentation of the financial position at December 31, 2023, and the results of operations and cash flows for the periods ended December 31, 2023 and 2022, have been included. The results for the interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amount of revenue and expenses during the reporting period. Actual results could differ from those estimates. The consolidated financial statements do not include all disclosures required by GAAP and should be read in conjunction with the Company's audited consolidated financial statements and related notes for the fiscal year ended March 31, 2023, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2023, as filed with the SEC. The Company applies the accounting policies contained in Note 1 to the Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended March 31, 2023. The Company believes that the disclosures are adequate to make the information presented not misleading. NOTE 2 – SUMMARY OF SIGNIFICANT POLICIES Nature of Operations The Company is a small-loan consumer finance company headquartered in Greenville, South Carolina tha

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