World Acceptance Corp. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2014; Reports Impairment Charges for the Third Quarter Ended December 31, 2014
January 29, 2015 at 11:30 am
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World Acceptance Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended December 31, 2014. For the quarter, the company reported total revenues of $153,647,000 compared to $160,493,000 a year ago. Income before income taxes was $28,734,000 compared to $36,533,000 a year ago. Net income was $10,245,000 or $2.01 diluted per share compared to $22,954,000 or $2.10 diluted per share a year ago. Return on average assets was 11.2% compared to 12.1% a year ago. Return on average equity was 33.2% compared to 30.0% a year ago. The third quarter's growth rate in loans reflected lower loan demand from U.S. operations and continued the trend seen during the first half of the year. The results for the third fiscal quarter were negatively affected by a change in the exchange rate with the Mexican peso and an increase in delinquencies in the Guerrero region of Mexico where offer payroll deduct product.
For the nine months, the company reported total revenues of $456,514,000 compared to $455,722,000 a year ago. Income before income taxes was $99,199,000 compared to $107,689,000 a year ago. Net income was $62,139,000 or $6.64 diluted per share compared to $67,631,000 or $5.98 diluted per share a year ago. Return on average assets was 11.1% compared to 12.1% a year ago. Return on average equity was 33.2% compared to 30.0% a year ago.
The net charge-off rate for the third quarter of fiscal 2015 decreased slightly as a percent of net loans on an annualized basis from 15.7% for the three-months ended December 31, 2013 to 15.5% for the three-months ended December 31, 2014.
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. Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended December 31, 2014; Reports Impairment Charges for the Third Quarter Ended December 31, 2014