Thu, May 22, 8:11 PM (52 days ago)
**Summary of World Acceptance Corporation (WRLD) 2025 Annual Report** **Financial Performance:** - **Revenue:** $564.8 million, a decrease of 1.5% from 2024. - **Net Income:** $89.7 million, a 16.0% increase from 2024. - **Operating Income:** Increased by $7.1 million. - **Interest and Fee Income:** Decreased by $3.4 million (0.7%). - **Insurance Revenue:** Decreased by $4.9 million (4.7%). - **Other Income:** Increased by $4.8 million (10.6%). **Net Income:** - Increased by 16.0% to $89.7 million. - Driven by a $17.9 million decrease in personnel incentive expense. **Operating Expenses:** - **General and Administrative Expenses:** Decreased by $27.7 million (10.3%). - **Personnel Expense:** Decreased by $23.4 million (14.2%). - **Occupancy and Equipment Expense:** Decreased by $0.6 million (1.3%). - **Advertising Expense:** Increased by $0.3 million (2.9%). - **Amortization of Intangible Assets:** Decreased by $0.4 million (9.7%). - **Other Expense:** Decreased by $3.5 million (8.8%). **Interest Expense:** - Decreased by $5.5 million (11.5%). **Income Tax Expense:** - Increased by $0.2 million. - Effective tax rate decreased to 19.9% from 22.2%. **Financial Condition:** - **Cash and Cash Equivalents:** $9.73 million. - **Gross Loans Receivable:** $1.23 billion. - **Net Loans Receivable:** $916.3 million. - **Allowance for Credit Losses:** $103.3 million. - **Debt-to-Equity Ratio:** 1.0:1.0. **Market Position:** - Operates 1,024 branches in 16 states. - Branches opened or acquired: 24 (net). - Branches open at period end: 1,024. **Strategic Overview:** - Focus on improving gross loans receivable growth through acquisitions and analytics. - Expansion into new markets and acquisitions of new branches. - Continued focus on tax preparation services and other ancillary products. **Future Outlook:** - Plans to enter new markets through branch openings and acquisitions. - Continued focus on tax preparation services and other ancillary products. - Expects to maintain a debt level that supports business objectives without undue stress on financial statements. **Risk Factors:** - **Credit Risk:** Dependence on borrowers' ability to repay loans. - **Interest Rate Risk:** Sensitivity to changes in interest rates. - **Regulatory Risk:** Subject to extensive regulation and supervision. - **Economic Risk:** Vulnerability to economic downturns and inflation. - **Cybersecurity Risk:** Potential for data breaches and cyber-attacks. - **Competitive Risk:** Intense market competition and potential for new entrants. **Financial Condition:** - **Liquidity:** Adequate cash flow from operations and borrowings under revolving credit facility. - **Capital Resources:** Plans to fund loan growth, acquisitions, and branch expansions. - **Debt Obligations:** Committed to maintaining a debt level that supports business objectives. **Market Position Changes:** - **Branch Expansion:** 24 branches opened or acquired (net). - **Market Share:** Continued focus on tax preparation services and other ancillary products. - **Competitive Landscape:** Intense competition and potential for new entrants. **Note:** Amounts are in thousands.