New Credit Agreement
World Acceptance Corporation completed a new credit agreement, increasing commitments to $640 million, allowing for stock repurchases of up to 100% of net income (an increase from 50% in the prior agreement) and a $100 million upfront repurchase allowance.
Strong Loan Growth
The company reported a 10% increase in refinance volume and a 12.6% increase in new originations compared to last year's first quarter, the highest volume of new originations since fiscal year 2020.
Customer Base Expansion
The customer base increased by 4% compared to the first quarter of last year, marking the first positive growth in three years and returning to the largest customer base since the first quarter of 2023.
Improved Credit Performance
Stable first pay default rates and improving delinquency, with gross yields increasing over 230 basis points year-over-year.
EPS Growth and Share Repurchase Plans
The company plans to redeem remaining bonds by the end of August, allowing for more accelerated stock repurchases with a capacity of over $200 million for share repurchases over the next 12 months.