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World Acceptance Corporation (WRLD-2.44%) has submitted its Form 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a decrease in gross loans receivable to $1.38 billion from $1.40 billion in the previous year. The company attributes this to a decrease in borrowing from new, former, and existing customers.
Net income for the quarter was $13.4 million, down from $16.7 million in the previous year. The decrease in net income is attributed to a reduction in operating income and increased provisions for credit losses.
Total revenues for the quarter increased slightly to $138.6 million from $137.7 million in the prior year. Interest and fee income rose by 3.1% due to higher interest yields.
The provision for credit losses increased by 8.5% to $44.1 million, driven by loan growth and changes in expected loss rates.
General and administrative expenses rose by 2.0% to $67.2 million, with personnel expenses increasing due to higher bonuses.
Interest expense decreased by 3.4% due to a reduction in average debt outstanding and a decrease in the effective interest rate.
The company's effective income tax rate increased to 16.4% from 14.6% in the prior year, primarily due to adjustments in provision to return items.
For the nine months ended December 31, 2024, net income increased to $45.5 million from $42.3 million, despite a decrease in revenues by 3.5%.
The company repurchased and extinguished $49.3 million of its senior notes during the nine-month period, resulting in a gain on extinguishment.
World Acceptance Corporation continues to monitor its debt-to-equity ratio and believes its current financing strategies will support its business objectives.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the World Acceptance Corporation quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.