World Acceptance Corp Q1 2025 10-Q Filing

TL;DR

**WRLD Q1 2025 10-Q: Financials released, check senior notes & common stock.**

AI Summary

World Acceptance Corp filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and position, including information on senior notes and common stock. The company's fiscal year ends on March 31st, and this report covers the first quarter of their fiscal year 2025.

Why It Matters

This filing provides investors with an update on World Acceptance Corp's financial health and operational performance for the first quarter of their fiscal year, impacting investment decisions.

Risk Assessment

Risk Level: medium — As a personal credit institution, World Acceptance Corp operates in a sector sensitive to economic downturns and interest rate changes, which can impact its financial performance.

Key Numbers

• 2024-06-30 — Reporting Period End (End of the fiscal quarter for which the report is filed.)
• 2024-08-08 — Filing Date (Date the 10-Q was officially submitted to the SEC.)
• 2023-06-30 — Prior Year Comparable Period End (End of the comparable fiscal quarter in the previous year.)

Key Players & Entities

• WORLD ACCEPTANCE CORP (company) — Filer
• 20240630 (date) — Reporting Period End Date
• 20240808 (date) — Filing Date
• SC (location) — State of Incorporation
• GREENVILLE (location) — Business Address City
• us-gaap:SeniorNotesMember (financial_metric) — Senior Notes
• us-gaap:CommonStockMember (financial_metric) — Common Stock

FAQ

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-20240630.htm (10-Q) — 1383KB
• exhibit3101q1fy25.htm (EX-31.01) — 11KB
• exhibit3102q1fy25.htm (EX-31.02) — 11KB
• exhibit3201q1fy25.htm (EX-32.01) — 5KB
• exhibit3202q1fy25.htm (EX-32.02) — 5KB
• 0000108385-24-000038.txt ( ) — 8107KB
• wrld-20240630.xsd (EX-101.SCH) — 37KB
• wrld-20240630_cal.xml (EX-101.CAL) — 63KB
• wrld-20240630_def.xml (EX-101.DEF) — 215KB
• wrld-20240630_lab.xml (EX-101.LAB) — 595KB
• wrld-20240630_pre.xml (EX-101.PRE) — 422KB
• wrld-20240630_htm.xml (XML) — 1668KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION 1. Consolidated Financial Statements (unaudited): 5 Consolidated Balance Sheets as of June 30, 2024 and March 31, 2024 5 Consolidated Statements of Operations for the three months ended June 30, 2024 and June 30, 2023 6 Consolidated Statements of Shareholders' Equity for the three months ended June 30, 2024 and June 30, 2023 7 Consolidated Statements of Cash Flows for the three months ended June 30, 2024 and June 30, 2023 8

Notes to Consolidated Financial Statements 9

Notes to Consolidated Financial Statements 9 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 31 3. Quantitative and Qualitative Disclosures about Market Risk 39 4. Controls and Procedures 39

- OTHER INFORMATION

PART II - OTHER INFORMATION 1. Legal Proceedings 40 1A. Risk Factors 40 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 3. Defaults Upon Senior Securities 40 4. Mine Safety Disclosures 40 5. Other Information 40 6. Exhibits 40 EXHIBIT INDEX 41 SIGNATURES 42 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 2025" are to the Company's fiscal year ending March 31, 2025; all references in this report to "fiscal 2024" are to the Company's fiscal year ended March 31, 2024; 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 months since a customer was first serviced by the Company EPS Earnings per share 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 a

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2024 March 31, 2024 ASSETS Cash and cash equivalents $ 11,119,138 $ 11,839,460 Gross loans receivable 1,274,819,257 1,277,149,256 Less: Unearned interest, insurance and fees ( 330,334,164 ) ( 326,746,136 ) Allowance for credit losses ( 109,643,363 ) ( 102,962,811 ) Loans receivable, net 834,841,730 847,440,309 Income taxes receivable 3,950,606 3,091,229 Operating lease rightofuse assets, net 80,865,970 79,501,238 Property and equipment, net 22,199,110 22,897,197 Deferred income taxes, net 32,425,138 30,942,844 Other assets, net 45,599,564 42,198,242 Goodwill 7,370,791 7,370,791 Intangible assets, net 10,063,983 11,069,733 Total assets $ 1,048,436,030 $ 1,056,351,043 LIABILITIES & SHAREHOLDERS' EQUITY Liabilities: Senior notes payable $ 241,727,745 $ 223,419,132 Senior unsecured notes payable, net 251,013,681 272,609,632 Operating lease liability 83,136,404 81,920,865 Accounts payable and accrued expenses 49,947,032 53,974,198 Total liabilities 625,824,862 631,923,827 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 5,847,398 and 5,938,665 shares at June 30, 2024 and March 31, 2024, respectively — — Additional paid-in capital 285,924,247 286,432,952 Retained earnings 136,686,921 137,994,264 Total shareholders' equity 422,611,168 424,427,216 Total liabilities and shareholders' equity $ 1,048,436,030 $ 1,056,351,043 See accompanying notes to consolidated financial statements. 5 Table of Contents WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended June 30, 2024 2023 Revenues: Interest and fee income $ 111,161,086 $ 116,618,914 Insurance and other inco

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1 – BASIS OF PRESENTATION The consolidated financial statements of the Company at June 30, 2024 and 2023 and for the three 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 June 30, 2024, and the results of operations and cash flows for the periods ended June 30, 2024 and 2023, 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, 2024, included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2024, 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 fiscal year ended March 31, 2024. 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 that offers short

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