World Acceptance Corp (WRLD) 2025 Q1 法說會逐字稿

Good morning, and welcome to World Acceptance Corporation's first-quarter 2025 earnings conference call.

早安，歡迎參加 World Acceptance Corporation 2025 年第一季財報電話會議。

This call is being recorded. and at this time, all participants have been placed in a listen-only mode.

此通話正在錄音。此時，所有參與者都已處於只聽模式。

Before we begin, the Corporation has requested that I make the following announcement.

在我們開始之前，公司要求我發布以下公告。

The comments made during this conference call may contain certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the corporation's expectations and beliefs concerning future events.

本次電話會議期間發表的評論可能包含 1934 年《證券交易法》第 21E 條含義內的某些前瞻性陳述，這些陳述代表了公司對未來事件的期望和信念。

Such forward-looking statements are about matters that are inherently subject to risks and uncertainties.

此類前瞻性陳述涉及本質上受風險和不確定性影響的事項。

Statements other than those of historical fact, as well as those identified by the words anticipate, estimate, intend, plan, expect, believe, may, will, and should or any variation of the foregoing and similar expressions are forward-looking statements.

除歷史事實以外的陳述，以及透過預期、估計、打算、計劃、期望、相信、可能、將和應該等詞語識別的陳述或上述和類似表達的任何變體均為前瞻性陳述。

Additional information regarding forward-looking statements and any factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements are included in the paragraph discussing forward-looking statements in today's earnings press release and the Risk Factors section of the corporation's most recent Form 10-K for the fiscal year ended March 31, 2024, and subsequent reports filed with or furnished to the SEC from time to time.

有關前瞻性陳述以及可能導致實際結果或業績與此類前瞻性陳述中明示或暗示的預期不同的任何因素的其他信息，均包含在今天的收益新聞稿中討論前瞻性陳述和風險因素的段落中本公司截至2024 年3 月31 日的財年最新10-K 表格的部分，以及不時向SEC 提交或提供的後續報告。

The corporation does not undertake any obligation to update any forward looking statements it makes.

該公司不承擔更新其所做的任何前瞻性陳述的任何義務。

At this time, it is my pleasure to turn the floor over to your host, Chad Prashad, President and Chief Executive Officer.

此時此刻，我很高興將發言權交給東道主總裁兼執行長 Chad Prashad。

Please go ahead.

請繼續。

Good morning, and thank you for joining our fiscal 2025 first-quarter earnings call.

早安，感謝您參加我們的 2025 財年第一季財報電話會議。

Before we open up to questions, there are a few areas I'd like to highlight.

在我們提出問題之前，我想強調幾個面向。

We've talked a good bit about rightsizing and de-risking the portfolio over the last year or two, as well as returning to moderate growth this year.

在過去的一兩年裡，我們已經討論了很多關於調整投資組合規模和降低風險的問題，以及今年恢復適度成長的問題。

In the first quarter of 2025, we experienced moderate growth in our customer base of around 50 basis points.

2025 年第一季度，我們的客戶群溫和成長約 50 個基點。

Their average balance declined slightly and gross yields improved across all customer types.

所有客戶類型的平均餘額略有下降，總收益率有所提高。

Year over year, our average balance has decreased almost 7% from June 30, 2023.

自 2023 年 6 月 30 日起，我們的平均餘額比去年同期下降了近 7%。

Currently, our average loan balance has decreased over 11% from the peak average loan size, which was towards the end of fiscal-year 2023.

目前，我們的平均貸款餘額較 2023 財年末的平均貸款規模高峰下降了 11% 以上。

Along with that decrease in average loan size, we've significantly improved our gross yields, delinquency, and G&A expenses.

隨著平均貸款規模的下降，我們的總收益率、拖欠率和一般管理費用也得到了顯著改善。

As the underlying portfolio improves, our loss reserves have also declined year over year in step with maturing of the portfolio.

隨著基礎投資組合的改善，我們的損失準備也隨著投資組合的成熟而逐年下降。

We are focused on modest, single-digit, high-credit quality growth this year through specific strategies for each of our customer types.

今年我們的重點是透過針對每種客戶類型的具體策略來實現適度、個位數、高信用品質的成長。

For new customers, we've adjusted our acquisition channels and are already increasing our approval rates while minimizing losses.

對於新客戶，我們調整了獲取管道，在提高認​​可率的同時，將損失降到最低。

In the first quarter, while new customer loan volume was down about 8% in dollars within the quarter year over year, our new customer average loan balance also decreased, and the number of new customers in the quarter declined by only 3.5% year over year.

第一季度，雖然新客戶貸款量以美元計年減約 8%，但我們的新客戶平均貸款餘額也有所下降，本季新客戶數量年減 3.5% 。

We also improved our first pay default rates, which are an early indication of success for those customers.

我們還提高了首次付款違約率，這是這些客戶成功的早期跡象。

This is part of a low-cost growth strategy in terms of both the upfront cost of acquisition as well as the total cost of acquisition for a 10-year performing customer.

就獲取 10 年業績客戶的前期成本以及獲取總成本而言，這是低成本成長策略的一部分。

As we've regrouped to a higher-credit quality and performing portfolio, we've grown a large paid off customer population that continues to return as a former customer and make up a larger percent of our non-refinance loans.

隨著我們重組為更高信用品質和績效的投資組合，我們已經發展了一大批還清客戶，這些客戶繼續作為前客戶回歸，並在我們的非再融資貸款中佔更大比例。

As we increase their weighting in the portfolio, our net yields and income naturally improve.

隨著我們增加它們在投資組合中的權重，我們的淨收益率和收入自然會提高。

Within the quarter, both returning and refinance customers had a similar trend in improvement in performance and yield as well as lower average balances.

在本季內，回頭客和再融資客戶在業績和收益率方面都有類似的改善趨勢，且平均餘額較低。

While the former customer loan volume in dollars declined 7.6% this quarter versus first quarter last year, the number of former customers actually increased by 6.3% year over year.

雖然本季以美元計的前客戶貸款量比去年第一季下降了 7.6%，但前客戶數量實際上比去年同期增長了 6.3%。

For returning former customers, the average balance of those originations decreased 13%, and the average yield was significantly higher, and they have the lowest first pay default rates of our non-refinance originations.

對於回訪的前客戶，這些來源的平均餘額下降了 13%，平均收益率明顯更高，而且他們的首付違約率是我們的非再融資來源中最低的。

Similarly, refinance loan volume in dollars decreased 5% within the quarter year over year, while the number of refinances actually increased 6% in the quarter, and the average balance of those originations decreased 10%.

同樣，本季美元再融資貸款量年減 5%，而本季再融資數量實際上增加了 6%，而這些貸款的平均餘額下降了 10%。

With these shifts in the portfolio makeup and the weighting continuing into the second quarter, we expect to see yields and delinquency trends continue to convert into the same revenue and income trends that we're already seeing this year.

隨著投資組合組成和權重的這些變化持續到第二季​​度，我們預計收益率和拖欠趨勢將繼續轉化為我們今年已經看到的相同收入和收入趨勢。

To date, in the second quarter, we've seen growth in our former customer base.

迄今為止，在第二季度，我們的前客戶群有所成長。

Currently, we're the highest number of former customers in July that we've had going back at least 10 years, all at lower average balances, higher yields, and great credit quality, leading us to expect continued low delinquency.

目前，我們 7 月的前客戶數量是至少 10 年來最高的，平均餘額較低，收益率較高，信用品質良好，因此我們預期拖欠率將持續較低。

To date in July, new customers has improved over the prior two years as well, but our focus remains on a low total cost of acquisition of performing customers, and we'll continue to invest wisely for high-credit quality growth as we work towards moderate-single-digit ledger growth this year.

截至7 月份，新客戶數量也較前兩年有所改善，但我們的重點仍然是降低獲得有表現的客戶的總成本，並且我們將繼續明智地投資，以實現高信用質量的增長，同時努力實現今年分類帳溫和個位數成長。

In addition to portfolio performance, our prudent management has also resulted in 9.9% reduction in G&A expenses this quarter compared to the first quarter last year.

除了投資組合表現外，我們的審慎管理還導致本季的一般管理費用比去年第一季減少了 9.9%。

It is especially important during a prolonged period of increasing expenses nationwide.

在全國範圍內支出長期增加的情況下，這一點尤其重要。

With economic stability increasing and improved portfolio performance, management continues to accrue for the long-term incentive plan with vesting tiers of $16.35 and $20.45 earnings per share.

隨著經濟穩定性的增強和投資組合績效的改善，管理層繼續為長期激勵計劃累積 16.35 美元的歸屬等級和每股 20.45 美元的收益。

Even with the much improved credit quality yield and operating conditions I've discussed, we'll continue to build confidence throughout the second quarter on achieving these targets, especially the $20.45 for the full fiscal year target.

即使我已經討論過信貸品質收益率和營運狀況大幅改善，我們仍將在整個第二季度繼續建立實現這些目標的信心，特別是整個財年目標的 20.45 美元。

Finally, we have an absolutely amazing team here at World, and I'm very grateful for their commitment to their customers as well as to each other.

最後，我們在 World 擁有一支絕對出色的團隊，我非常感謝他們對客戶以及彼此之間的承諾。

They are helping our customers every day to establish credit, rebuild credit, and meet their immediate financial needs.

他們每天都在幫助我們的客戶建立信用、重建信用並滿足他們當前的財務需求。

At this time, Johnny Calmes, our Chief Financial and Strategy Officer, and I would like to open up any questions that you may have.

現在，我們的財務和策略長約翰尼·卡爾姆斯 (Johnny Calmes) 和我想回答你們可能有的任何問題。

(Operator Instructions) John Rowan, Janney.

（操作員說明）John Rowan，Janney。

Good morning, guys.

早安，夥計們。

Morning.

早晨。

Chad, did I hear you correctly saying that you're going to grow ledger by mid-single digits or low-single digits for '20 -- well, fiscal 2025?

查德，我沒聽錯吧，你說的 20 世紀（好吧，2025 財年）的帳簿將實現中個位數或低個位數的成長？

Yeah, that's right.

是的，沒錯。

Okay.

好的。

So I mean, just -- so you're talking about -- I mean, you're talking about of period-end fiscal 2024.

所以我的意思是，你正在談論 2024 財年期末。

So the $1.3 billion gross or $847 million net, just mid-single-digit growth off of that number by the end of the year?

那麼到今年年底，13 億美元的總收入或 8.47 億美元的淨收入僅比這個數字實現中個位數成長嗎？

Yes, that's right.

是的，沒錯。

Okay.

好的。

Is there a reason why it looks like you guys increased the allowance ratio a little bit sequentially?

是不是有什麼原因讓你們看起來會依序提高津貼比例呢？

Is there -- are you changing any expected loss rates?

您是否正在改變任何預期損失率？

I think a lot of it was just the expected loss rates increased faster this year than it did relative to last year.

我認為很大程度上是因為今年的預期損失率比去年增長得更快。

But there's still -- they're lower at June 30 this year than they were at June 30 fiscal '24.

但今年 6 月 30 日的價格仍低於 2024 財年 6 月 30 日的價格。

So we haven't increased them.

所以我們沒有增加它們。

But it really more has to do with what happened last year.

但這確實與去年發生的事情有關。

The expected loss rates were decreasing faster in Q1 of '24 than they were this year, if that makes sense.

如果這有意義的話，24 年第一季的預期損失率下降速度比今年更快。

Okay.

好的。

And just to be clear, you're still accruing for $20.45 of earnings for this year in the incentive comp and there were something in the press release about lower incentive compensation.

需要明確的是，今年您仍可在激勵補償中獲得 20.45 美元的收入，並且新聞稿中提到了較低的激勵補償。

Right.

正確的。

So a lot of it has to do with -- there's two things going on there.

所以很多事情都與──那裡發生了兩件事有關。

We had some officers -- field officers leave during the quarter, which led to some -- or retired during the quarter, which led to some releases.

我們有一些官員——現場官員在本季度離開，這導致了一些官員——或者在本季度退休，這導致了一些人被釋放。

And -- but it's also with the greater vesting nature of the long-term plan, there's just less expense to accrue.

而且，由於長期計劃具有更大的歸屬性質，因此產生的費用也更少。

So relative to last year, we're no longer accruing for the third tranche.

因此，相對於去年，我們不再為第三部分累積。

So that's not in there.

所以那不在那裡。

And there's basically six TAM-based tranches in that plan.

該計劃中基本上有六個基於 TAM 的部分。

We're only still accruing for one of those tranches because the others have been fully expensed.

我們僅仍在其中一部分進行應計，因為其他部分已全部支出。

So that's what was driving that share based comp number coming down.

這就是推動基於股份的補償數字下降的原因。

And John, yes, we are still accruing towards $20.45. But the main factors into achieving that for this fiscal year are really some things around growth, yields, and delinquency.

約翰，是的，我們仍在累積 20.45 美元。但本財年實現這一目標的主要因素實際上是成長、收益率和拖欠率等方面的因素。

So as we continue throughout this current quarter, the second quarter, we'll build some confidence around how likely we continue to think that is.

因此，當我們在當前季度、第二季度繼續進行時，我們將對我們繼續認為這種情況的可能性建立一些信心。

Yes.

是的。

So I mean, I was going to get into that next.

所以我的意思是，我接下來要討論這個問題。

I mean, we've spoken in the past about -- I remember the $25.30 tranche, which obviously stopped accruing for.

我的意思是，我們過去談過——我記得 25.30 美元的部分，顯然已經停止了累積。

I mean, we had kind of penciled in a -- the only way to get to that number is a high-single-digit type loss rate.

我的意思是，我們已經確定了——達到這個數字的唯一方法是高個位數的損失率。

I think at the $20 something number or $20.45 number, you're talking about a low-double-digit type loss, right, if I remember correctly from prior conference calls.

我認為在 20 美元或 20.45 美元的數字上，你談論的是低兩位數類型的損失，對吧，如果我在之前的電話會議中沒記錯的話。

Your charge-off rate came down a little bit year over year, but it's still 16.4%.

你們的沖銷率比去年同期略有下降，但仍為 16.4%。

Like we're still really far away from a low-double-digit loss content.

就好像我們距離低兩位數的內容損失還很遠。

How are you getting there?

你怎麼樣？

I mean, to be frank, you have to actually overcompensate given for the remaining three quarters of the year, given that you were at 16.4% for the quarter.

我的意思是，坦白說，考慮到該季度的成長率為 16.4%，你實際上必須對今年剩餘的三個季度進行過度補償。

How are you getting to that type of number?

你是如何得到這種類型的數字的？

Yeah.

是的。

So there's a few things there.

所以有一些事情。

So over the last 12 months, the yields have continued to increase, and that takes some of the pressure off of the net charge-off rate, right?

因此，在過去 12 個月中，收益率持續上升，這減輕了淨沖銷率的部分壓力，對吧？

But to be fair, yeah, we still need to see improvement in that net charge-off rate, and we see a lot of the things happen operationally that can lead to that.

但公平地說，是的，我們仍然需要看到淨沖銷率的改善，而且我們看到操作上發生的許多事情都可能導致這種情況。

So yeah, it's a combination of yields continuing to increase, continued improvement in that net charge-off rate, and some modest growth.

所以，是的，這是收益率持續成長、淨沖銷率持續改善以及適度成長的結合。

And as Chad said, we'll build some confidence in whether that's achievable by September.

正如查德所說，我們將在 9 月之前對這一目標能否實現建立一些信心。

We'll have a pretty clear picture by September.

到九月我們就會得到一個非常清晰的畫面。

Okay.

好的。

I mean wouldn't modest growth actually hurt your chances to get to that?

我的意思是，適度的成長實際上不會損害你實現這一目標的機會嗎？

I mean, modest growth would help next year.

我的意思是，明年的適度成長將會有所幫助。

But given how much you have to reserve for your CECL provision, I would think that the modest growth actually is a hinderance to earnings growth?

但考慮到你必須為CECL準備金預留多少，我認為適度的成長實際上會阻礙獲利成長？

Fair enough.

很公平。

It depends when that growth happens, right?

這取決於成長發生的時間，對吧？

So yeah, you're right.

所以是的，你是對的。

So modest growth that all happens in Q4 doesn't help us a whole lot.

第四季發生的如此溫和的成長對我們沒有多大幫助。

But if we can get it in the next quarter or so, there's enough revenue that comes with it throughout the fiscal year that it benefits us.

但如果我們能夠在下個季度左右獲得它，那麼整個財政年度都會帶來足夠的收入，這對我們來說是有利的。

And, John, also

而且，約翰，還有

--

--

I'm sorry, go ahead.

抱歉，請繼續。

That's also why we have focused more on former customers.

這也是我們更關注前客戶的原因。

One, just a lower cost of acquisition, but two, also their performance leads us to accrue less for them.

一是收購成本較低，二是他們的表現也導致我們為他們帶來的收益減少。

And then overall profitability is higher for those -- for that group of customers.

然後，對於那些客戶群來說，整體獲利能力會更高。

And then for new customers, we're still focused on new customers, but we are looking at lower total cost of acquisition.

然後對於新客戶，我們仍然專注於新客戶，但我們正在尋求降低總獲取成本。

And when I say that, I'm talking about not just the marketing spend, but operational spend as well as provision loss on that group.

當我這麼說時，我談論的不僅僅是行銷支出，還有營運支出以及該群體的撥備損失。

So with all that in mind, yes, we're very aware that any growth we have hurts in the short term.

因此，考慮到所有這些，是的，我們非常清楚我們的任何成長都會在短期內受到損害。

So, one, we recognize we still have to do it as a company because that feeds the future success for the portfolio; but two, making sure we do it incredibly prudently from a cost perspective and credit quality perspective.

因此，第一，我們認識到作為一家公司，我們仍然必須這樣做，因為這有助於投資組合未來的成功；但第二，確保我們從成本角度和信用品質角度極其謹慎地行事。

Okay.

好的。

And then last question for me.

然後是我的最後一個問題。

Just what's the right tax rate to you, it's a little bit lower than my model for the quarter.

對您來說合適的稅率是多少，它比我本季的模型低一點。

I just want to make sure I have it going forward?

我只是想確保我能繼續下去？

Yes, it kind of changes quarter to quarter, but it's still that 20%, 21% for the year.

是的，每季都有變化，但全年仍是 20%、21%。

You say 20%, 21%?

你說20%、21%？

Yeah, for the year.

是的，今年。

All right.

好的。

Thank you very much.

非常感謝。

(Operator Instructions) Guy Riegel, Ingalls & Snyder.

（操作員說明）Guy Riegel、Ingalls 和 Snyder。

Hey, guys.

嘿，夥計們。

Good morning.

早安.

Can you speak to -- hello?

你能和——你好嗎？

Yes.

是的。

Good morning.

早安.

I was just curious, can you speak to the regulatory environment in the states you operate in as well as on the Federal level?

我只是很好奇，您能談談您所在州以及聯邦層級的監管環境嗎？

Yeah.

是的。

So at the state level, there's two states over the last couple of years that we have moved to be sub-36%, both Illinois and New Mexico.

因此，在州一級，過去幾年中有兩個州的比例已降至 36% 以下，即伊利諾伊州和新墨西哥州。

For the other states that we operate in, we haven't seen any significant changes from a regulatory or legislative perspective.

對於我們開展業務的其他州，從監管或立法角度來看，我們沒有看到任何重大變化。

Of course, every state we operate in, we are regulated by those states and supervised by those states and continue to be so.

當然，在我們開展業務的每個州，我們都受到這些州的監管和監督，並將繼續如此。

At the federal level, as you know, back in February, the CBP published an order establishing their authority to supervise World.

如您所知，在聯邦層面，早在二月份，CBP 就發布了一項命令，建立了其監督 World 的權力。

We continue to cooperate with them and their supervision process.

我們將繼續與他們及其監督流程合作。

This is both our first supervision by them as well as one of their first supervisions of an installment lender.

這是我們第一次接受他們的監管，也是他們第一次對分期貸款機構進行監管。

So we expect that they're going to focus on the areas that outlined in that order and that this will be a learning process, and it will likely be very difficult for us to judge any of their timelines.

因此，我們預計他們將重點關注按順序列出的領域，這將是一個學習過程，我們可能很難判斷他們的任何時間表。

However, the order does give us the ability to petition to -- in their supervisory period over two years.

然而，該命令確實使我們能夠在兩年多的監管期內向他們提出請願。

But this time, aside from the supervision order itself in the CBP, we don't have any other updates to report on.

但這一次，除了 CBP 的監管令本身之外，我們沒有任何其他更新可以報告。

Okay.

好的。

So to date, it hasn't -- they haven't impacted your business?

那麼到目前為止，它們還沒有影響到您的業務嗎？

No, not to date.

不，到目前為止還沒有。

Okay.

好的。

And then, I thought maybe a while ago, you maybe mentioned the possibility of securitizing some of your loans.

然後，我想也許不久前，您可能提到了將部分貸款證券化的可能性。

What's the status of that?

那是什麼狀態？

Yeah.

是的。

So we're actually in process as we speak of creating a warehouse facility, and that's sort of the first step in the securitization process, right?

因此，當我們談到創建倉庫設施時，我們實際上正在進行中，這是證券化過程的第一步，對吧？

So we hope to have the warehouse facility rolled out in the -- probably fiscal third quarter.

因此，我們希望能夠在第三財季推出倉庫設施。

Great.

偉大的。

Okay.

好的。

Thank you so much.

太感謝了。

Thanks, Guy.

謝謝，蓋伊。

This concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to Chad Prashad for any closing remarks.

我想將會議轉回給查德·普拉沙德（Chad Prashad）發表閉幕詞。

Thank you for taking the time to join us today.

感謝您今天抽空加入我們。

And this concludes the first-quarter earnings call for World Acceptance.

World Acceptance 第一季財報電話會議到此結束。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。