World Acceptance Corporation (WAC) reported a record increase in diluted earnings per share for the first quarter ending June 30.
In the first quarter, the small-loan consumer finance company repurchased about 413,000 shares. Combined with the 2.6 million shares repurchased during fiscal 2013, the company has reduced its weighted average diluted shares outstanding by 11.2 percent compared with the same period in the previous year.
In February the board agreed to allow the repurchase of an additional $25 million in shares on top of a $75 million buy-back approved last November.
In addition to income and revenue increases (see chart), interest and fee income increased 11.0 percent to $128.0 million from $115.3 million during the quarter due to continued growth in loan volume and expansion of offices.
The company has been expanding into Mexico, which accounted for 7 percent of revenues during the fiscal year 2013. Changes in the regulatory climate in the United States could lead to “increasing reliance on Mexico” as the company’s “only viable expansion or growth strategy,” the company said in the amended year-end report filed July 19.
Gross loans outstanding increased 9.6 percent to $1.1 billion, but insurance and other income dipped 1.4 percent to $17.3 million compared with the first quarter of the previous fiscal year.
The provision for loan losses – funds set aside to cover potential losses – increased 21.5 percent to $28.7 million.