World Acceptance Corp (WRLD, Financial) released its earnings report for the second quarter of fiscal 2024 on October 20, 2023. The company reported a net income of $16.1 million, a significant improvement from a net loss of $0.6 million for the same quarter of the prior year. The diluted net income per share stood at $2.71.
Financial Highlights
World Acceptance Corp (WRLD, Financial) reported total revenues of $136.9 million for the quarter, including a 240 basis point yield increase compared to the same quarter in the prior year. The company's gross loans outstanding were $1.38 billion as of September 30, 2023, a 13.7% decrease from the $1.60 billion of gross loans outstanding as of September 30, 2022.
The company's customer base decreased by 9.4% during the twelve-month period ended September 30, 2023. However, the number of unique borrowers in the portfolio increased by 1.0% during the quarter ended September 30, 2023.
Income Statement Analysis
Net income for the second quarter of fiscal 2024 increased to $16.1 million from a net loss of $0.6 million for the same quarter of the prior year. Total revenues for the second quarter of fiscal 2024 decreased to $136.9 million, a 9.5% decrease from $151.3 million for the same quarter of the prior year.
Interest and fee income declined 10.4%, from $130.46 million in the second quarter of fiscal 2023 to $116.95 million in the second quarter of fiscal 2024. Insurance income decreased by 7.8% to $15.5 million in the second quarter of fiscal 2024 compared to $16.8 million in the second quarter of fiscal 2023.
Balance Sheet and Cash Flow Statement Analysis
As of September 30, 2023, the Company had 1,053 open branches. For branches open at least twelve months, same store gross loans decreased 10.9% in the twelve-month period ended September 30, 2023, compared to an increase of 21.2% for the twelve-month period ended September 30, 2022.
Net charge-offs for the quarter decreased $27.5 million, from $68.4 million in the second quarter of fiscal 2023 to $40.9 million in the second quarter of fiscal 2024. Net charge-offs as a percentage of average net loan receivables on an annualized basis decreased to 16.1% in the second quarter of fiscal 2024 from 23.0% in the second quarter of fiscal 2023.
World Acceptance Corp (WRLD, Financial) remains committed to its conservative approach to lending operations, focusing on credit quality, and investing in its best customers. The company's management believes that this strategy will put the company in a strong position throughout the fiscal year.
