WRLD 8-K

World Acceptance Corp (WRLD)

8-K 2021-07-21 For: 2021-07-21

Added on April 08, 2026

South Carolina	000-19599	57-0425114
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

104 S. Main Street, Greenville, South Carolina	29601
(Address of principal executive offices)	(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, No Par Value	WRLD	The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.	☐

(d)	Exhibits.

	Exhibit Number	Description of Exhibit
	99.1	Press release issued July 21, 2021
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

World Acceptance Corporation Reports Fiscal 2022 First Quarter Results

		WORLD ACCEPTANCE CORPORATION
		(Registrant)

Date: July 21, 2021
	By:	/s/ John Calmes, Jr.
		John Calmes, Jr.
		Chief Financial and Strategy Officer

Gross Loan Balance By Customer Tenure at Origination
As of	Less Than 2 Years	More Than 2 Years	Total
06/30/2016	$269,135,588	$716,879,243	$986,014,831
06/30/2017	$273,887,376	$707,810,306	$981,697,682
06/30/2018	$319,827,964	$742,845,987	$1,062,673,951
06/30/2019	$429,461,205	$793,297,330	$1,222,758,535
06/30/2020	$355,437,073	$712,516,701	$1,067,953,774
06/30/2021	$382,753,073	$840,444,842	$1,223,197,915

Year-Over-Year Growth (Decline) in Gross Loan Balance by Customer Tenure at Origination
12 Month Period Ended	Less Than 2 Years	More Than 2 Years	Total
6/30/2016	$(37,708,655)	$(30,609,452)	$(68,318,107)
6/30/2017	$4,751,788	$(9,068,937)	$(4,317,149)
6/30/2018	$45,940,588	$35,035,681	$80,976,269
6/30/2019	$109,633,241	$50,451,343	$160,084,584
6/30/2020	$(74,024,133)	$(80,780,629)	$(154,804,762)
6/30/2021	$27,316,000	$127,928,141	$155,244,141

Portfolio Mix by Customer Tenure at Origination
As of	Less Than 2 Years	More Than 2 Years
6/30/2016	27.3%	72.7%
6/30/2017	27.9%	72.1%
6/30/2018	30.1%	69.9%
6/30/2019	35.1%	64.9%
6/30/2020	33.3%	66.7%
6/30/2021	31.3%	68.7%

Actual Gross Charge-off Rate During Following 12 Months; Indexed to 6/30/2017 Vintage
12 Months Beginning	Less Than 2 Years	More Than 2 Years	Total
6/30/2016	1.87	0.97	1.21
6/30/2017	1.57	0.78	1.00
6/30/2018	1.67	0.78	1.04
6/30/2019	1.79	0.79	1.14
6/30/2020	1.26	0.57	0.80

WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share amounts)

	Three months ended June 30,
	2021		2020
Revenues:
Interest and fee income	$	109,175	$	109,860
Insurance income, net and other income	20,484		14,006
Total revenues	129,659		123,866

Expenses:
Provision for credit losses	30,266		25,661
General and administrative expenses:
Personnel	46,232		44,622
Occupancy and equipment	13,607		13,182
Advertising	3,760		2,612
Amortization of intangible assets	1,215		1,382
Other	8,537		9,809
Total general and administrative expenses	73,351		71,607

Interest expense	5,501		5,562
Total expenses	109,118		102,830

Income before income taxes	20,541		21,036

Income taxes	4,770		5,527

Net income	$	15,771	$	15,509

Net income per common share, diluted	$	2.44	$	2.24

Weighted average diluted shares outstanding	6,456		6,928

WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (unaudited and in thousands)

	June 30, 2021			March 31, 2021			June 30, 2020
ASSETS
Cash and cash equivalents	$	8,387		$	15,746		$	9,960
Gross loans receivable	1,223,139			1,104,746			1,067,877
Less:
Unearned interest, insurance and fees	(322,754		)	(279,365		)	(273,593		)
Allowance for credit losses	(97,853		)	(91,722		)	(112,687		)
Loans receivable, net	802,532			733,659			681,597
Right-of-use asset	89,797			90,056			96,579
Property and equipment, net	24,457			26,340			25,369
Deferred income taxes, net	28,782			24,993			28,132
Other assets, net	38,867			31,423			25,594
Goodwill	7,371			7,371			7,371
Intangible assets, net	22,340			23,538			24,052
Assets held for sale	1,144			1,144			3,991
Total assets	$	1,023,677		$	954,270		$	902,645

LIABILITIES & SHAREHOLDERS' EQUITY
Liabilities:
Senior notes payable	$	467,700		$	405,008		$	352,206
Income taxes payable	12,407			11,576			7,548
Lease liability	89,872			91,718			97,616
Accounts payable and accrued expenses	48,227			41,040			54,032
Total liabilities	618,206			549,342			511,402

Shareholders' equity	405,471			404,928			391,243
Total liabilities and shareholders' equity	$	1,023,677		$	954,270		$	902,645

WORLD ACCEPTANCE CORPORATION AND SUBSIDIARIES SELECTED CONSOLIDATED STATISTICS (unaudited and in thousands, except percentages and branches)

	Three months ended June 30,
	2021			2020

Gross loans receivable	$	1,223,139		$	1,067,877
Average gross loans receivable ⁽¹⁾	1,144,425			1,113,530
Net loans receivable ⁽²⁾	900,385			794,284
Average net loans receivable ⁽³⁾	849,175			831,388

Expenses as a percentage of total revenue:
Provision for credit losses	23.3		%	20.7		%
General and administrative	56.6		%	57.8		%
Interest expense	4.2		%	4.5		%
Operating income as a % of total revenue ⁽⁴⁾	20.1		%	21.5		%

Loan volume ⁽⁵⁾	754,209			463,484

Net charge-offs as percent of average net loans receivable on an annualized basis	11.4		%	18.3		%

Return on average assets (trailing 12 months)	9.1		%	3.4		%

Return on average equity (trailing 12 months)	23.0		%	8.2		%

Branches opened or acquired (merged or closed), net	—			(3)

Branches open (at period end)	1,205			1,240