World Acceptance Corp. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2016; Announces Net Charge-Offs for the Third Quarter Ended December 31, 2016
January 26, 2017 at 12:30 pm
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World Acceptance Corp. announced unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2016. For the quarter, the company's net income decreased 34.6% to $9.6 million compared to $14.8 million for the same quarter of the prior year. Net income per diluted share decreased 35.3% to $1.10 compared to $1.70 in the prior year quarter. Total revenues decreased to $130.8 million, a 6.4% decrease from the $139.7 million reported for the third quarter last year. Income before taxes was $14,320,000 against $25,527,000 a year ago.
For the nine months, the company's net income decreased 27.5% to $41.7 million compared with $57.6 million for the nine months ended December 31, 2015. Fully diluted net income per share decreased 28.3% to $4.75 compared with $6.63 for the first nine months of fiscal 2016. Total revenues declined 6.3% to $387.2 million compared with a revised $413.3 million during the corresponding period of the previous year. Income before taxes was $65,273,000 against $91,632,000 a year ago. Return on average assets (trailing 12 months) was 8.4% against 11.9% a year ago. Return on average equity (trailing 12 months) 17.6% against 31.7% a year ago.
The company announced that the provision for the quarter increased $4.5 million when comparing the third quarter of fiscal to 2017 to the third quarter of fiscal 2016. This is primarily due to an increase in net charge-offs and a larger increase in loans outstanding quarter over quarter. Net charge-offs as a percentage of average net loans on an annualized basis increased from 14.6% to 16.9% when comparing the two quarters. The prior year net charge-off rate benefited from the monthly sale of accounts previously charged-off totaling approximately $0.5 million. Consolidated net charge-offs excluding the impact of the charge-off sale were up $2.3 million when comparing the two fiscal quarters.
World Acceptance Corporation is a people-focused finance company that provides personal instalment loan solutions and personal tax preparation and filing services. The Company generally serves individuals with limited access to other sources of consumer credit such as banks, credit unions, other consumer finance businesses and credit card lenders. The Company, as an agent for an unaffiliated insurance company, markets and sells credit life, credit accident and health, credit property and auto, unemployment, and accidental death and dismemberment insurance in connection with its loans in selected states where the sale of such insurance is permitted by law. It offers automobile club memberships to its borrowers in Alabama, Georgia, Idaho, Indiana, Kentucky, Louisiana, Mississippi, Missouri, Oklahoma, Tennessee, Texas, South Carolina, Utah and Wisconsin, as an agent for an unaffiliated automobile club. The Company operates more than 1,000 community-based branches across 16 states.
World Acceptance Corp. Announces Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2016; Announces Net Charge-Offs for the Third Quarter Ended December 31, 2016