Consumer finance company World Acceptance Corp. reported a 34.6% drop in net income during its third quarter that ended Dec. 31, 2016.
In its filing with the Securities and Exchange Commission, the company said its third quarter net income dropped $4.8 million from the same period a year ago. Its total revenues declined 6.4% year-over-year to $130.8 million in the most recent quarter.
In a conference call, Janet Lewis Matricciani said the revenue losses weren’t unexpected.
“Our loans outstanding are lower than in the past due to the shrinkage in accounts the company has experienced over the last 10 years,” Matricciani said.
As of Dec. 31, 2016, gross loans dropped to $1.17 billion, or 4.4% from the same quarter the previous year. The company’s loan portfolio was 61.9% small loans and 38.1% large loans and gross loans from Mexico grew 25.6% in Mexican pesos, according to the company’s filing.
The company’s general and administrative expenses dropped $400,000 to $71.2 million for the quarter and interest expense during the quarter fell $1.9 million, or 26.2% from the previous year.
Total revenues for the first nine months of its fiscal year fell 6.3% to 387.2 million and net income dropped 27.5% to $41.7 million compared to the same timeframe a year ago.
“We are pleased with our operational improvements, bringing in more new and former borrowers than a year earlier, increasing the credit quality of those new customers, making cautious loans to new customers, improving the growth in our ledger, and significantly increasing our strength in digital channels,” Matricciani said. “We have a strong focus on reducing delinquencies and charge-offs, as well as continuing to improve our marketing and underwriting strategies.”