WORLD ACCEPTANCE CORP Q2 FY2025 earnings call

• Over the last few years, the company has been rightsizing and derisking the portfolio, leading to improved yields and performance.
• Customer base increased 350 basis points in Q2 2025 compared to the prior year, with an improvement of 50 basis points sequentially.
• Non-refinance volume rebounded in Q2, with strong gains in August and September, surpassing recent prior years except fiscal year 2022.
• New customer approval rates reached over 50% in Q2 2025 while maintaining low first payment default rates.
• Gross yield improved by 113 basis points year-over-year.
• Originations had higher gross yields, and new customer vintages are becoming profitable earlier than historical pre-pandemic vintages.
• The company completed an acquisition of around $20 million in performing loans, and loan growth improved in October with organic growth and the acquisition.

In the second quarter of 2025, the customer base saw a 350-basis-point increase compared to the year-ago period, with an improvement of 50 basis points sequentially. Average balance decreased almost 6% year-over-year. Non-refinance volume rebounded in the second quarter, especially in August and September, surpassing recent prior years except fiscal year 2022. New customer approval rates reached over 50% while maintaining low first payment default rates. Gross yield improved by 113 basis points year-over-year. Originations had higher gross yields, and new customer vintages from the second quarter of 2023 to present are breaking even and becoming profitable earlier than historical pre-pandemic vintages. The company completed an acquisition of around $20 million in performing loans, and loan growth improved in October with organic growth and the acquisition.

• Management continues to expect to achieve $16.35 EPS this year.

Forward-looking statements made during the call are subject to risks and uncertainties, as detailed in the earnings press release and the Risk Factors section of the corporation's most recent Form 10-K and subsequent SEC filings.

Q: Is $3.99 counted for earnings for 2Q, which obviously will include the big $18.5 million reversal?

A: Johnny Calmes states it's the GAAP number.

Q: Can you remind me when you guys typically renew your revolving credit facility and how much you have available under it?

A: Johnny Calmes says the next renewal is in the spring of next year, and there's about $300 million left on the revolver as of today, with two years remaining before renewal