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Mar 31, 2020
World Acceptance Q4 2020 Earnings Report
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.
Key Takeaways
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.
World Acceptance
World Acceptance
World Acceptance Revenue by Segment
Revenue by Segment
Interest and Fee Income Revenue
CapyFin.comInsurance and Other Income, Net Revenue
CapyFin.com 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.
Challenges Ahead
- 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
Revenue & Expenses
Visualization of income flow from segment revenue to net income