World Acceptance (NASDAQ:WRLD) Corporation (NASDAQ: WRLD), a personal credit institution, announced the results of its Annual Meeting of Shareholders held on Wednesday. The company, which operated under the name World Finance Corp until a name change in 1970, reported that a quorum was achieved with 5,190,736 shares represented out of the 5,851,948 shares outstanding.
During the meeting, shareholders elected seven directors to the company's Board for a one-year term expiring in 2025. Votes for the directors ranged from 4,252,698 to 4,682,270, with Ken R. Bramlett, Jr., R. Chad Prashad, Scott J. Vassalluzzo, Charles D. Way, Darrell E. Whitaker, Elizabeth R. Neuhoff, and Benjamin E. Robinson III securing their positions.
Additionally, the executive compensation for the named executive officers was approved with 4,646,686 votes in favor, 17,618 against, and 24,711 abstaining. The compensation details had been disclosed previously in the company's Proxy Statement.
Furthermore, the appointment of RSM US LLP as the company's independent registered public accounting firm for the fiscal year ending March 31, 2025, was ratified with 5,163,583 votes for, 26,983 against, and 170 abstentions.
In other recent news, World Acceptance reported a moderate increase in its customer base during the first quarter of 2025, with a notable rise in returning customers. The company's customer base grew by 50 basis points in this period, despite a decrease in the average loan balance by over 11% from its peak in the fiscal year 2023.
The company has also reduced General & Administrative expenses by 9.9% year-over-year and is in the process of creating a warehouse facility for loan securitization, expected in Q3.
World Acceptance Corporation is targeting modest, single-digit growth with high credit quality for the current fiscal year. They are confident in achieving earnings per share targets with long-term incentive plans in place. The company expects yields and delinquency trends to improve in the second quarter.
InvestingPro Insights
As World Acceptance Corporation (NASDAQ:WRLD) continues to engage with its shareholders and set the course for the upcoming year, insights from InvestingPro offer a valuable perspective on the company's financial health and market performance. The company's aggressive share buyback strategy is an important highlight, indicating management's confidence in the company's value. This is supported by a strong shareholder yield, as noted by one of the InvestingPro Tips. Moreover, InvestingPro data underscores the company's robust financial standing, with a P/E Ratio of 8.17 and a PEG Ratio of just 0.08 as of the last twelve months leading up to Q1 2025, suggesting that the company is potentially undervalued given its earnings growth prospects.
Despite recent market performance where the stock has fared poorly over the last month with a -20.53% return, World Acceptance Corporation's fundamentals appear solid. The company's liquid assets exceed its short-term obligations, providing financial stability and flexibility. Additionally, analysts predict profitability for the current fiscal year, a sentiment that is reinforced by the company's profitable performance over the last twelve months. For those interested in further analysis, there are additional InvestingPro Tips available for World Acceptance Corporation at https://www.investing.com/pro/WRLD.
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