NASDAQ$WRLD

World Acceptance Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

World Acceptance Corporation's Q4 2020 earnings were impacted by COVID-19 and an additional accrual for estimated losses related to the investigation into its former Mexican business.

World Acceptance Corporation reported a 3.9% increase in total revenues for the fourth quarter of fiscal 2020, reaching $163.0 million. However, net income decreased by 37.6% to $23.7 million, primarily due to an additional accrual of $13.7 million for estimated losses related to the investigation into the company's former Mexican business and the impact of COVID-19.

  • Total revenues increased by 3.9% to $163.0 million compared to the same quarter of the prior year.
  • Net income decreased by 37.6% to $23.7 million, impacted by an additional accrual for estimated losses related to the Mexico investigation.
  • Net income per diluted share decreased 23.4% to $3.24.
  • COVID-19 pandemic negatively impacted fourth quarter loan volumes and trends.

Headline financials

Total Revenue

$163M

Previous: $157M+3.9%
EPS (adj)

$3.24

Previous: $4.22-23.2%
Branches Open (Period End)

1.2K

No prior period
Capital Expenditures

$3.24M

Previous: $2.83M+14.5%
Free Cash Flow

$83.6M

Previous: $77.7M+7.6%
Net Income

$23.7M

Previous: $37.9M-37.6%
Operating Income

$26.5M

No prior period
Gross Profit

$131M

Previous: $128M+1.8%
Cash & Equivalents

$11.6M

Previous: $9.34M+24.5%
Total Assets

$1.03B

Previous: $855M+20.5%
Stock-Based Comp

$6.02M

Previous: $7.73M-22.1%

Revenue & EPS history

World Acceptance · Revenue · Quarterly

$163M

Q4 2020+3.9%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

World Acceptance · $163M total across 2 segments · Q4 2020

  • Interest and Fee Income
    $129M
  • Insurance and Other Income, Net
    $33.9M

Forward guidance

The press release contains various forward-looking statements that represent the Company’s current expectations or beliefs concerning future events, which are subject to risks and uncertainties.

Headwinds

  • The ongoing impact of the COVID-19 pandemic
  • Recently enacted, proposed or future legislation and the manner in which it is implemented
  • The nature and scope of regulatory authority, particularly discretionary authority, that may be exercised by regulators, including, but not limited to, the SEC, DOJ, U.S. Consumer Financial Protection Bureau, and individual state regulators having jurisdiction over the Company
  • The unpredictable nature of regulatory proceedings and litigation
  • Developments in, and the outcome of, our ongoing investigation into certain transactions and payments in Mexico, including any legal proceedings or government enforcement actions which could arise out of the matters under review, and any remedial actions we may take in connection therewith

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-1.6%

Avg return

Earnings day

-3.1%

Avg return

5 days after

+2.0%

Avg return

30 days after

47%

30 / 64 earnings

Positive

+29.7%

Q4 2017

Best reaction

-25.1%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+0.7%-7.9%+7.8%
Q3 2026-17.5%-15.0%-2.2%
Q2 2026-3.9%-10.5%+9.3%
Q1 2026-0.9%-5.6%-4.1%
Q4 2025+3.4%-3.1%+13.8%
Q3 2025+16.3%+9.1%+3.2%
Q2 2025+1.6%+1.6%+2.7%
Q1 2025-16.1%-16.4%-19.9%
Q4 2024+0.3%-2.3%-7.4%
Q3 2024+16.5%+15.3%+5.0%
Q2 2024-13.7%-17.6%-6.4%
Q1 2024+10.4%+8.7%-1.8%
Q4 2023+14.1%+10.8%+22.3%
Q3 2023+27.3%+18.2%+15.9%
Q2 2023-25.1%-23.4%-30.6%
Q1 2023-5.6%-4.6%+0.8%
Q4 2022-14.8%-26.9%-32.7%
Q3 2022-5.3%-16.5%-10.6%
Q2 2022-24.0%-11.0%+3.9%
Q1 2022+9.1%+13.1%+13.8%
Q4 2021+1.0%+7.2%+14.6%
Q3 2021-7.4%+37.7%+0.7%
Q2 2021-9.9%-14.7%-1.5%
Q1 2021+4.5%+6.1%+32.7%
Q4 2020+6.5%-10.1%+35.3%
Q3 2020-2.0%-9.9%-11.5%
Q2 2020-20.8%-24.8%-28.2%
Q1 2020-24.1%-21.3%-17.9%
Q4 2019+7.3%+3.3%+4.2%
Q3 2019-8.4%-5.4%+11.1%
Q2 2019+7.1%+5.4%+7.3%
Q1 2019-9.8%-10.7%+6.1%
Q4 2018+4.0%+1.9%+6.6%
Q3 2018+15.1%+20.9%+13.8%
Q2 2018-12.0%-11.7%-4.5%
Q1 2018-1.9%+2.6%-1.3%
Q4 2017+29.7%+24.4%+30.6%
Q3 2017-19.6%-18.8%-10.9%
Q2 2017-3.1%+0.6%+24.3%
Q1 2017-21.0%-22.7%-15.4%
Q4 2016-4.3%
Q3 2016-23.3%
Q2 2016+2.4%
Q4 2015+13.6%
Q3 2015-4.4%
Q2 2015-1.8%
Q1 2015+5.1%
Q4 2012+0.5%
Q4 2014-9.8%
Q3 2014+9.6%
Q2 2014-5.0%
Q1 2014-2.5%
Q4 2013-0.6%
Q3 2013+1.0%
Q2 2013-3.0%
Q1 2013+2.8%
Q4 2010-1.2%
Q3 2011+2.6%
Q3 2012+2.6%
Q2 2011-1.1%
Q2 2012-1.1%
Q4 2011+2.7%
Q1 2011+2.7%
Q1 2012+2.7%

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