This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
World Acceptance Corporation (NASDAQ: WRLD) today reported financial results for its second fiscal quarter and six months ended September 30, 2012.
Net income for the second quarter decreased 1.7% to $22.9 million compared to $23.3 million for the same quarter of the prior year. Net income per diluted share increased 13.2% to $1.72 in the second quarter of fiscal 2013 compared to $1.52 in the prior year quarter. Total revenues increased to $139.4 million in the second quarter of fiscal 2013, a 5.5% increase over the $132.1 million reported in the second quarter last year.
Sandy McLean, CEO, stated, “The Company’s growth in earnings per share has benefitted from our ongoing share repurchase program during the current fiscal year. Over the past six months, the Company has repurchased approximately 1.1 million shares of World Acceptance’s stock. We continue to use our excellent cash flow and strong financial position to fund our growth while repurchasing shares.”
As previously announced, the Company increased its debt facility by $113 million dollars with the intention of utilizing $100 million to repurchase shares. In the first six months, the Company has spent $75.1 million to repurchase approximately 1.1 million shares. Combined with the 2.2 million shares repurchased during fiscal 2012, the Company has reduced its weighted average diluted shares outstanding by 12.9% when comparing the two six month periods.
Loan demand improved during the second quarter, with gross loan balances increasing to $1.1 billion at the end of the period, up $123.0 million and 12.7% from a year ago.
Interest and fee income increased 4.8%, from $116.2 million to $121.8 million in the second quarter of fiscal 2013 due to continued growth in loan volume and expansion of offices. Interest and fee yields decreased during the quarter as a result of both a shift in collections to October, as well as the ongoing decline in overall yields resulting from the slight change in mix to larger balance loans. Insurance and other income rose by 10.5% to $17.6 million in the second quarter of fiscal 2013 compared with $15.9 million in the second quarter of fiscal 2012.